[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2023 Edition]
[From the U.S. Government Publishing Office]
[[Page i]]
Title 7
Agriculture
________________________
Parts 400 to 699
Revised as of January 1, 2023
Containing a codification of documents of general
applicability and future effect
As of January 1, 2023
Published by the Office of the Federal Register
National Archives and Records Administration as a
Special Edition of the Federal Register
[[Page ii]]
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[[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 427
Chapter VI--Natural Resources Conservation Service,
Department of Agriculture 455
Finding Aids:
Table of CFR Titles and Chapters........................ 631
Alphabetical List of Agencies Appearing in the CFR...... 651
List of CFR Sections Affected........................... 661
[[Page iv]]
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Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 7 CFR 400.51 refers
to title 7, part 400,
section 51.
----------------------------
[[Page v]]
EXPLANATION
The Code of Federal Regulations is a codification of the general and
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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
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[[Page vi]]
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[[Page vii]]
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Oliver A. Potts,
Director,
Office of the Federal Register
January 1, 2023
[[Page ix]]
THIS TITLE
Title 7--Agriculture is composed of fifteen volumes. The parts in
these volumes are arranged in the following order: Parts 1-26, 27-52,
53-209, 210-299, 300-399, 400-699, 700-899, 900-999, 1000-1199, 1200-
1599, 1600-1759, 1760-1939, 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, 2023.
The Food and Nutrition 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.
For this volume, Robert J. Sheehan, III was Chief Editor. The Code
of Federal Regulations publication program is under the direction of
John Hyrum Martinez, assisted by Stephen J. Frattini.
[[Page 1]]
TITLE 7--AGRICULTURE
(This book contains parts 400 to 699)
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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
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Part Page
400 General administrative regulations.......... 7
401
[Reserved]
402 Catastrophic risk protection endorsement.... 75
403-406
[Reserved]
407 Area risk protection insurance regulations.. 78
408-411
[Reserved]
412 Public information--Freedom of information.. 113
413-456
[Reserved]
457 Common crop insurance regulations........... 114
458-459
[Reserved]
460 Additional disaster payments................ 421
461-499
[Reserved]
[[Page 7]]
PART 400_GENERAL ADMINISTRATIVE REGULATIONS--Table of Contents
Subparts A-F [Reserved]
Subpart G_Actual Production History
Sec.
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 [Reserved]
Subpart H_Information Collection Requirements Under the Paperwork
Reduction Act; OMB Control Numbers
400.65-400.66 [Reserved]
Subpart I [Reserved]
Subpart J_Appeal Procedure
400.90 Definitions.
400.91 Applicability.
400.92 Appeals.
400.93 Administrative review.
400.94 Mediation.
400.95 Time limitations for filing and responding to requests for
administrative review.
400.96 Judicial review.
400.97 Reservations of authority.
400.98 Reconsideration process.
Subpart K [Reserved]
Subpart L_Reinsurance Agreement_Standards for Approval; Regulations for
the 2019 and Subsequent Reinsurance Years
400.161 Definitions.
400.162 Qualification ratios.
400.163 Applicability.
400.164 Eligibility for a Reinsurance Agreement.
400.165-400.168 [Reserved]
400.169 Disputes.
400.170-400.177 [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 [Reserved]
Subpart N [Reserved]
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 Discontinuance 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 Agent and loss adjuster responsibilities.
400.406 Insurance provider responsibilities.
400.407 Restricted access.
400.408 Safeguards and storage.
400.409 Unauthorized disclosure.
400.410 Penalties.
400.411 Obtaining personal records.
400.412 Record retention.
400.413 [Reserved]
Subpart R_Administrative Remedies for Non-Compliance
400.451 General.
400.452 Definitions.
400.453 Exhaustion of administrative remedies.
400.454 Disqualification and civil fines.
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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.
400.459-400.500 [Reserved]
Subpart S [Reserved]
Subpart T_Federal Crop Insurance Reform, Insurance Implementation
400.650 Purpose.
400.651 Definitions.
400.652 Insurance availability.
400.653 Determining crops of economic significance.
400.654 Application and acreage report.
400.655 Eligibility for other program benefits.
400.656-400.657 [Reserved]
Subpart U_Ineligibility for Programs Under the Federal Crop Insurance
Act
400.675 Purpose.
400.676 [Reserved]
400.677 Definitions.
400.678 Applicability.
400.679 Criteria for ineligibility.
400.680 Controlled substance.
400.681 Written payment agreement.
400.682 Determination and notification.
400.683 Period of ineligibility.
400.684 Effect of ineligibility.
400.685 Criteria for regaining eligibility.
400.686 Administration and maintenance.
Subpart V_Submission of Policies, Provisions of Policies, Rates of
Premium, and Non-Reinsured Supplemental Policies
400.700 Basis, purpose, and applicability.
400.701 Definitions.
400.702 Confidentiality and duration of confidentiality.
400.703 Timing and format.
400.704 Covered by this subpart.
400.705 Contents for new and changed 508(h) submissions, concept
proposals, and index-based weather plans of insurance.
400.706 Review.
400.707 Presentation to the Board for approval or disapproval.
400.708 Post approval.
400.709 Roles and responsibilities.
400.710 Preemption and premium taxation.
400.711 Right of review, modification, and the withdrawal of approval.
400.712 Research and development reimbursement, maintenance
reimbursement, advance payments for concept proposals, and
user fees.
400.713 Non-reinsured supplemental (NRS) policy.
Subpart W [Reserved]
Subpart X_Interpretations of Statutory Provisions, Policy Provisions,
and Procedures
400.765 Definitions.
400.766 Basis and applicability.
400.767 Requestor obligations.
400.768 FCIC obligations.
Authority: 7 U.S.C. 1506(1), 1506(o).
Subparts A-F [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 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.
[59 FR 47787, Sept. 19, 1994, as amended at 69 FR 9520, Mar. 1, 2004]
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
[[Page 9]]
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).
(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
[[Page 10]]
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 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
[[Page 11]]
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).
(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
[[Page 12]]
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 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 [Reserved]
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. Sec. 400.65-400.66 [Reserved]
Subpart I [Reserved]
Subpart J_Appeal Procedure
Authority: 7 U.S.C. 1506(l), 1506(p)
Source: 67 FR 13251, Mar. 22, 2002, unless otherwise noted.
Sec. 400.90 Definitions.
Act. The Federal Crop Insurance Act (7 U.S.C. 1501-1524).
Administrative review. A review within the Department of Agriculture
of an adverse decision.
Adverse decision. A decision by an employee or Director of the
Agency that is adverse to the participant. The term includes the denial
of program benefits, written agreements, eligibility, etc. that results
in the participant receiving less funds than the participant believes
should have been paid or not receiving a benefit to which the
participant believes he or she was entitled.
Agency. RMA or FCIC, including the RO, FAOB or any other division
within the Agency with decision making authority.
[[Page 13]]
Appellant. Any participant who requests an administrative review or
mediation, or both, of an adverse decision of the Agency in accordance
with this subpart. Unless otherwise specified in this subpart, the term
``appellant'' includes an authorized representative.
Authorized representative. Any person, whether or not an attorney,
who has obtained a Privacy Act waiver and is authorized in writing by a
participant to act for the participant in the administrative review,
mediation, or appeal process.
Certified State. A State with a mediation program, approved by the
Secretary, that meets the requirements of 7 CFR part 1946, subpart A, or
a successor regulation.
FAOB. Financial and Accounting Operations Branch.
FCIC. The Federal Crop Insurance Corporation, a wholly owned
Government corporation within USDA.
FSA. The Farm Service Agency, an agency within USDA, or its
successor agency.
Good farming practices. For agricultural commodities insured under
the terms contained in 7 CFR part 457 and all other crop insurance
policies authorized under the Act, except as provided herein, means the
good farming practices as defined at 7 CFR 457.8. For agricultural
commodities insured under the terms contained in 7 CFR part 407, means
the good farming practices as defined at 7 CFR 407.9.
Insured. An individual or entity that has applied for crop insurance
or who holds a crop insurance policy that was in effect for the previous
crop year and continues to be in effect for the current crop year.
Mediation. A process in which a trained, impartial, neutral third
party (the mediator), meets with the disputing parties, facilitates
discussions, and works with the parties to mutually resolve their
disputes, narrow areas of disagreement, and improve communication.
NAD. The USDA National Appeals Division. See 7 CFR part 11.
Non-certified State. A State that is not approved by the Secretary
of Agriculture to participate in the USDA Mediation Program under 7 CFR
part 1946, subpart A, or its successor regulation.
Participant. An individual or entity that has applied for crop
insurance or who holds a valid crop insurance policy that was in effect
for the previous crop year and continues to be in effect for the current
crop year. The term does not include individuals or entities whose
claims arise under the programs excluded in the definition of
participant published at 7 CFR 11.1.
Reinsured company. A private insurance company, including its
agents, that has been approved and reinsured by FCIC to provide
insurance to participants.
Reviewing authority. A person assigned the responsibility by the
Agency of making a decision on a request for administrative review by
the participant in accordance with this subpart.
RMA. The Risk Management Agency, an agency within USDA, or its
successor agency.
RO. The Regional Office established by the agency for the purpose of
providing program and underwriting services for private insurance
companies reinsured by FCIC under the Act and for FCIC insurance
contracts delivered through FSA offices.
Secretary. The Secretary of Agriculture.
USDA. United States Department of Agriculture.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003;
74 FR 8704, Feb. 26, 2009]
Sec. 400.91 Applicability.
(a) This subpart applies to:
(1) Adverse decisions made by personnel of the Agency with respect
to:
(i) Contracts of insurance insured by FCIC; and
(ii) Contracts of insurance of private insurance companies and
reinsured by FCIC under the provisions of the Act.
(2) Determinations of good farming practices made by personnel of
the Agency or the reinsured company (see Sec. 400.98).
(b) This subpart is not applicable to any decision:
(1) Made by the Agency with respect to any matter arising under the
terms of the Standard Reinsurance Agreement with the reinsured company;
or
(2) Made by any private insurance company with respect to any
contract
[[Page 14]]
of insurance issued to any producer by the private insurance company and
reinsured by FCIC under the provisions of the Act, except for
determinations of good farming practices specified in Sec.
400.91(a)(2).
(c) With respect to matters identified in Sec. 400.91(a)(1),
participants may request an administrative review, mediation, or both,
or appeal of adverse decisions by the Agency made with respect to:
(1) Denial of participation in the crop insurance program;
(2) Compliance with terms and conditions of insurance;
(3) Issuance of payments or other program benefits to a participant
in the crop insurance program; and
(4) Issuance of payments or other benefits to an individual or
entity who is not a participant in the crop insurance program.
(d) Only a participant may seek an administrative review and
mediation under this subpart, as applicable.
(e) Notwithstanding any other provision, this subpart does not apply
to any decision made by the Agency that is generally applicable to all
similarly situated program participants. Such decisions are also not
appealable to NAD. If the Agency determines that a decision is not
appealable because it is a matter of general applicability, the
participant must obtain a review by the Director of NAD in accordance
with 7 CFR 11.6(a) of the Agency's determination that the decision is
not appealable before the participant may file suit against the Agency.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003;
74 FR 8704, Feb. 26, 2009]
Sec. 400.92 Appeals.
(a) Except for determinations of good farming practices, nothing in
this subpart prohibits a participant from filing an appeal of an adverse
decision directly with NAD in accordance with part 11 of this title
without first requesting administrative review or mediation under this
subpart.
(b) If the participant has timely requested administrative review or
mediation, the participant may not participate in a NAD hearing until
such administrative review or mediation is concluded. The time for
appeal to NAD is suspended from the date of receipt of a request for
administrative review or mediation until the conclusion of the
administrative review or mediation. The participant will have only the
remaining time to appeal to NAD after the conclusion of the
administrative review or mediation.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003]
Sec. 400.93 Administrative review.
(a) With respect to adverse decisions, an appellant may seek one
administrative review or seek mediation under Sec. 400.94.
(b) If the appellant seeks an administrative review, the appellant
must file a written request for administrative review with the reviewing
authority in accordance with Sec. 400.95. The written request must
state the basis upon which the appellant relies to show that:
(1) The decision was not proper and not made in accordance with
applicable program regulations and procedures; or
(2) All material facts were not properly considered in such
decision.
(c) The reviewing authority will issue a written decision that will
not be subject to further administrative review by the Agency.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003;
74 FR 8704, Feb. 26, 2009]
Sec. 400.94 Mediation.
For adverse decisions only:
(a) Appellants have the right to seek mediation or other forms of
alternative dispute resolution in addition to an administrative review
under Sec. 400.93.
(b) All requests for mediation under this subpart must be made after
issuance of the adverse decision by the Agency and before the appellant
has a NAD hearing on the adverse decision.
(c) An appellant who chooses mediation must request mediation not
later than 30 calendar days from receipt of the written notice of the
adverse decision. A request for mediation will be considered to have
been ``filed'' when personally delivered in writing to the appropriate
decision maker or when
[[Page 15]]
the properly addressed request, postage paid, is postmarked.
(d) An appellant will have any balance of the days remaining in the
30-day period to appeal to NAD if mediation is concluded without
resolution. If a new adverse decision that raises new matters or relies
on different grounds is issued as a result of mediation, the participant
will have a new 30-day period for appeals to NAD.
(e) An appellant is responsible for contacting the Certified State
Mediation Program in States where such mediation program exists. The
State mediation program will make all arrangements for the mediation
process. A list of Certified State Mediation Programs is available at
http://www.act.fcic.usda.gov.
(f) An appellant is responsible for making all necessary contacts to
arrange for mediation in non-certified States or in certified States
that are not currently offering mediation on the subject in dispute. An
appellant needing mediation in States without a certified mediation
program may request mediation by contacting the RSO, which will provide
the participant with a list of acceptable mediators.
(g) An appellant may only mediate an adverse decision once.
(h) If the dispute is not completely resolved in mediation, the
adverse decision that was the subject of the mediation remains in effect
and becomes the adverse decision that is appealable to NAD.
(i) If the adverse decision is modified as a result of the mediation
process, the modified decision becomes the new adverse decision for
appeal to NAD.
[67 FR 13251, Mar. 22, 2002, as amended at 74 FR 8704, Feb. 26, 2009]
Sec. 400.95 Time limitations for filing and responding to requests for
administrative review.
(a) A request for administrative review must be filed within 30 days
of receipt of written notice of the adverse decision. A request for an
administrative review will be considered to have been ``filed'' when
personally delivered in writing to the appropriate decision maker or
when the properly addressed request, postage paid, is postmarked.
(b) Notwithstanding paragraph (a) of this section, an untimely
request for administrative review may be accepted and acted upon if the
participant can demonstrate a physical inability to timely file the
request for administrative review.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003]
Sec. 400.96 Judicial review.
Except as provided in Sec. 400.98, with respect to adverse
determinations:
(a) A participant must exhaust administrative remedies before
seeking judicial review of an adverse decision. This requires the
participant to appeal an Agency adverse decision to NAD in accordance
with 7 CFR part 11 prior to seeking judicial review of the adverse
decision.
(b) If the adverse decision involves a matter determined by the
Agency to be not appealable, the appellant must request a determination
of non-appealability from the Director of NAD, and appeal the adverse
decision to NAD if the Director determines that it is appealable, prior
to seeking judicial review.
(c) A participant with a contract of insurance reinsured by the
Agency may bring suit against the Agency if the suit involves an adverse
action in a United States district court after exhaustion of
administrative remedies as provided in this section. Nothing in this
section can be construed to create privity of contract between the
Agency and a participant.
[67 FR 13251, Mar. 22, 2002, as amended at 68 FR 37720, June 25, 2003]
Sec. 400.97 Reservations of authority.
(a) Representatives of the Agency may correct all errors in entering
data on program contracts and other program documents, and the results
of computations or calculations made pursuant to the contract.
(b) Nothing contained in this subpart precludes the Secretary, the
Manager of FCIC, or the Administrator of RMA, or a designee, from
determining at any time any question arising under the programs within
their respective authority or from reversing or modifying any adverse
decision.
[[Page 16]]
Sec. 400.98 Reconsideration process.
(a) This reconsideration process only applies to determinations of
good farming practices under Sec. 400.91(a)(2).
(b) There is no appeal to NAD of determinations or reconsideration
decisions regarding good farming practices.
(c) Only reconsideration is available for determinations of good
farming practices. Mediation is not available for determinations of good
farming practices.
(d) If the insured seeks reconsideration, the insured must file a
written request for reconsideration to the following: USDA/RMA/Deputy
Administrator for Insurance Services/Stop 0805, 1400 Independence Avenue
SW., Washington, DC 20250-0801.
(1) A request for reconsideration must be filed within 30 days of
receipt of written notice of the determination regarding good farming
practices. A request for reconsideration will be considered to have been
``filed'' when personally delivered in writing to FCIC or when the
properly addressed request, postage paid, is postmarked.
(2) Notwithstanding paragraph (d)(1) of this section, an untimely
request for reconsideration may be accepted and acted upon if the
insured can demonstrate a physical inability to timely file the request
for reconsideration.
(3) The written request must state the basis upon which the insured
relies to show that:
(i) The decision was not proper and not made in accordance with
applicable program regulations and procedures; or
(ii) All material facts were not properly considered in such
decision.
(e) With respect to determinations of good farming practices, the
insured is not required to exhaust the administrative remedies in 7 CFR
part 11 before bringing suit against FCIC in a United States district
court. However, regardless of whether the Agency or the reinsured
company makes the determination, the insured must seek reconsideration
under Sec. 400.98 before bringing suit against FCIC in a United States
District Court. The insured cannot file suit against the reinsured
company for determinations of good farming practices.
(f) Any reconsideration decision by the Agency regarding good
farming practices shall not be reversed or modified as a result of
judicial review unless the reconsideration decision is found to be
arbitrary or capricious.
[68 FR 37720, June 25, 2003]
Subpart K [Reserved]
Subpart L_Reinsurance Agreement_Standards for Approval; Regulations for
the 2019 and Subsequent Reinsurance Years.
Authority: 7 U.S.C. 1506(l), 1506(o)
Source: 83 FR 51302, Oct. 11, 2018, unless otherwise noted.
Sec. 400.161 Definitions.
In addition to the terms defined in the Standard Reinsurance
Agreement, Livestock Price Reinsurance Agreement and any other
Reinsurance Agreement, the following terms as used in this rule are
defined to mean:
Annual statutory financial statement means the annual financial
statement of a Company prepared in accordance with Statutory Accounting
Principles and submitted to the state insurance department if required
by any state in which the Company is licensed.
Company means the insurance company that currently has or is
applying to FCIC for a Reinsurance Agreement.
FCIC means the Federal Crop Insurance Corporation as authorized in
section 503 of the Federal Crop Insurance Act (7 U.S.C. 1503).
MPUL means the maximum possible underwriting loss that a Company can
sustain on policies it intends to reinsure after adjusting for the
effect of any Reinsurance Agreement and any private reinsurance, as
evaluated by FCIC.
Plan of Operations means the documentation and information submitted
by a Company to apply for or maintain a Reinsurance Agreement as
required by FCIC.
Quarterly Statutory Financial Statement means the quarterly
financial statement of a Company prepared in accordance with Statutory
Accounting Principles and submitted to the state insurance department if
required by
[[Page 17]]
any state in which the Company is licensed.
Reinsurance Agreement means the Standard Reinsurance Agreement,
Livestock Price Reinsurance Agreement or any other Reinsurance Agreement
between the Company and FCIC.
Sec. 400.162 Qualification ratios.
(a) The eighteen qualification ratios include:
(1) Thirteen National Association of Insurance Commissioner's (NAIC)
Insurance Regulatory Information System (IRIS) ratios found in
paragraphs (b)(1) through (12) and (17) of this section and referenced
in ``Using the NAIC Insurance Regulatory Information System''
distributed by NAIC, 1100 Walnut St., Suite 1500, Kansas City, MO 64106-
2197;
(2) Three ratios used by A.M. Best Company found in paragraphs
(b)(13), (15), and (16) of this section and referenced in Best's Key
Rating Guide, A.M. Best, Ambest Road, Oldwick, N.J. 08858-0700;
(3) One ratio found in paragraph (b)(14) of this section 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; and
(4) One ratio found in paragraph (b)(18) of this section, which is
reported on the annual statutory financial statement.
(b) The Company shall provide an explanation for any ratio falling
outside of the following requirements in paragraphs (b)(1) through (18):
------------------------------------------------------------------------
Ratio
Ratio requirement
------------------------------------------------------------------------
(1) Gross Premium Written to Policyholders Surplus...... <900%
(2) Net Premium Written to Policyholders Surplus........ <300%
(3) Change in Net Premiums Writings..................... -33% to 33%
(4) Surplus Aid to Policyholders Surplus................ <15%
(5) Two-Year Overall Operating Ratio.................... <100%
(6) Change in Policyholders Surplus..................... -10% to 50%
(7) Investment Yield.................................... 3.0% to 6.5%
(8) Liabilities to Liquid Assets........................ <100%
(9) Gross Agents Balances to Policyholders Surplus...... <40%
(10) One Year Reserve Development to Policyholders <20%
Surplus................................................
(11) Two Year Reserve Development to Policyholders <20%
Surplus................................................
(12) Estimated Current Reserve Deficiency to <25%
Policyholders Surplus..................................
(13) Combined Ratio after Policyholder Dividend......... <115%
(14) Two Year Change in Surplus......................... -
10%
(15) Quick Liquidity.................................... 20%
(16) Return on Surplus.................................. -5%
(17) Net Change in Adjusted Policyholder Surplus........ -10% to 25%
(18) Risk Based Capital Ratio...........................
200%
------------------------------------------------------------------------
Sec. 400.163 Applicability.
The standards contained herein shall be applicable to a Company
applying for and those maintaining a Reinsurance Agreement.
Sec. 400.164 Eligibility for a Reinsurance Agreement.
FCIC will offer a Reinsurance Agreement to an eligible Company as
determined by FCIC. To be eligible and qualify initially or thereafter
for a Reinsurance Agreement with FCIC, a Company 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
insurance company that is licensed or admitted, in each state where the
Company will write policies under a Reinsurance Agreement;
(c) Have surplus, as reported in its most recent Annual or Quarterly
Statutory Financial Statement, that is at least equal to twice the MPUL
amount for the Company's estimated retained premium submitted in its
plan of operation.
(d) The Company shall have the financial and operational resources,
including but not limited to, organization, experience, internal
controls, technical skills, positive assessment of
[[Page 18]]
the ratio results appearing in Section 400.162 as well as meet
methodologies, data submission requirements and assessment contained in
Appendix II (Plan of Operations) of the Reinsurance Agreement to meet
the requirements, including addressing reasonable risks, associated with
a Reinsurance Agreement, as determined by FCIC.
(e) The Company shall provide data and demonstrate a satisfactory
performance record to obtain a Reinsurance Agreement and continue to
hold a Reinsurance Agreement for the reinsurance year as determined by
FCIC.
Sec. Sec. 400.165-400.168 [Reserved]
Sec. 400.169 Disputes.
(a) If the Company believes that the FCIC has taken an action that
is not in accordance with the provisions of a Reinsurance Agreement
except compliance issues, it may request the Deputy Administrator of
Insurance Services to make a final administrative determination
addressing the disputed action. The Deputy Administrator of Insurance
Services will render the final administrative determination of the FCIC
with respect to the applicable actions. All requests for a final
administrative determination must be in writing and submitted within 45
days after receipt after the disputed action.
(b) With respect to compliance matters, the Compliance Field Office
renders an initial finding, permits the Company to respond, and then
issues a final finding. If the Company believes that the Compliance
Field Office's final finding is not in accordance with the applicable
laws, regulations, custom or practice of the insurance industry, or FCIC
approved policy and procedure, it may request the Deputy Administrator
of Compliance to make a final administrative determination addressing
the disputed final finding. The Deputy Administrator of Compliance will
render the final administrative determination of the FCIC with respect
to the final finding. All requests for a final administrative
determination must be in writing and submitted within 45 days after
receipt of the final finding.
(c) A Company may also request reconsideration by the Deputy
Administrator of Insurance Services of a decision of the FCIC rendered
under any FCIC bulletin or directive which bulletin or directive does
not interpret, explain, or restrict the terms of the Reinsurance
Agreement. The Company, if it disputes the FCIC's determination, must
request a reconsideration of that determination in writing, within 45
days of the receipt of the determination. The determination of the
Deputy Administrator of Insurance Services 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 FCIC under
paragraph (a) or (b) of this section may be appealed to the Board of
Contract Appeals in accordance with 48 CFR part 6102 and with the
provisions 7 CFR part 24.
Sec. Sec. 400.170-400.177 [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
[[Page 19]]
the purpose of selling and servicing 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 20]]
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 21]]
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 [Reserved]
Subpart N [Reserved]
Subpart O_Non-Standard Underwriting Classification System Regulations
for the 1991 and Succeeding Crop Years
Authority: 7 U.S.C. 1506(l), 1506(p).
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.), to
prescribe the procedures for nonstandard determinations and the
assignment of assigned yields 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 and on those policies where the insurance
coverage or indemnities are based on determinations applicable to the
individual insured. These regulations will not be applicable to any
policy where the amount of coverage or indemnities are based on the
experience of the area.
[62 FR 22876, Apr. 28, 1997]
Sec. 400.302 Definitions.
Act means Federal Crop Insurance Act as amended (7 U.S.C. 1501 et
seq.).
Actively engaged in farming means a person who, in return for a
share of profits and losses, makes a contribution to the production of
an insurable crop in the form of capital, equipment, land, personal
labor, or personal management.
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.
Assigned yield means units of crop production per acre
administratively assigned by the Corporation for the purpose of
determining insurance coverage.
Corporation means the Federal Crop Insurance Corporation.
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.
Cumulative loss ratio means the ratio of total indemnities to total
earned premiums during the base period expressed as a decimal.
Earned premium means premium earned (both the amount subsidized and
the amount paid by the producer, but excluding any amount of the subsidy
attributed to the operating and
[[Page 22]]
administrative expenses of the insurance provider) for a crop under a
policy insured or reinsured by the Corporation.
Earned premium rate--means premium earned divided by liability and
expressed as a percentage.
Entity--means a person as defined in this subpart other than an
individual.
Indemnified loss means a loss applicable for the policy for any year
during the NCS base period for which the total indemnity exceeds the
total earned premium. If the person has insurance for the crop in more
than one county for any crop year, indemnities and premiums will be
accumulated for all counties for each crop year to determine an
indemnified loss.
Insurance experience means earned premiums, indemnities paid (but
not including replant payments), and other data for the crop (after
applicable adjustments), resulting from all of the insured's crop
insurance policies insured or reinsured by the Corporation for one or
more crop years and will include all information from all counties in
which the person was insured.
Loss ratio--means the ratio of indemnity to earned premium expressed
as a decimal.
NCS means nonstandard classification system.
NCS base period means the 10 consecutive crop years (as defined in
the crop policy) ending 2 crop years prior to the crop year in which the
NCS classification becomes effective for all crops, except those
specified on the Special Provisions. For these excepted crops, the NCS
base period means the 10 consecutive crop years ending 3 crop years
prior to the crop year in which the NCS classification becomes
effective. For example: An NCS classification effective for the 1996
crop year against a producer of citrus production in Arizona,
California, and Texas, or sugarcane would have a NCS base period that
includes the 1984 through 1993 crop years. An NCS classification
effective for the 1996 crop year against a producer of all other crops
would have a NCS base period that includes the 1985 through 1994 crop
years.
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.
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.
[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]
Sec. 400.303 Initial selection criteria.
(a) Nonstandard classification procedures in this subpart initially
apply when all of the following insurance experience criteria (including
any applicable adjustment in Sec. 400.303(d)) for the crop have been
met:
(1) Three (3) or more indemnified losses during the NCS base period;
(2) Cumulative indemnities in the NCS base period that exceed
cumulative premiums during the same period by at least $500;
(3) The result of dividing the number of indemnified losses during
the NCS base period by the number of years premium is earned for that
period equals .30 or greater; and
(4) Either of the following apply:
(i) The natural logarithm of the cumulative earned premium rate
multiplied by the square root of the cumulative loss ratio equals 2.00
or greater; or
(ii) Five (5) or more indemnified losses have occurred during the
NCS base period and the cumulative loss ratio equals or exceeds 1.50.
(b) The minimum standards provided in paragraphs (a) (2), (3), and
(4) of this section may be increased in a specific county if that
county's overall insurance experience for the crop is substantially
different from the insurance experience for which the criteria was
determined. The increased standard will apply until the conditions
requiring the increase no longer apply. Any change in the standards will
be contained in the Special Provisions for the crop.
(c) Selection criteria may be applied on the basis of insurance
experience of a person, insured acreage, or the combination of both.
[[Page 23]]
(1) Insurance experience of a person will include:
(i) Insurance experience of the person;
(ii) Insurance experience of other insured entities 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.
(d) Insurance experience for the crop will be adjusted, by county
and crop year, to discount the effect of indemnities caused by
widespread adverse growing conditions. Adjustments are determined as
follows:
(1) Determine the average yield for the county using the annual
county crop yields for the previous 20 crop years, unless such data is
not available;
(2) Determine the normal variability in the average yield for the
county, expressed as the standard deviation;
(3) Subtract the result of Sec. 400.303(d)(2) from Sec.
400.303(d)(1);
(4) Divide the annual crop yield for the county for each crop year
in the NCS base period by the result of Sec. 400.303(d)(3), the result
of which may not exceed 1.0;
(5) Subtract the result of Sec. 400.303(d)(4) for each crop year
from 1.0;
(6) Multiply the result of Sec. 400.303(d)(5) by the liability for
the crop year; and
(7) Subtract the result of Sec. 400.303(d)(6) from any indemnity
for that crop year.
(e) FCIC may substitute the crop yields of a comparable crop in
determining Sec. 400.303(d) (1) and (2), or may adjust the average
yield or the measurement of normal variability for the county crop, or
any combination thereof, to account for trends or unusual variations in
production of the county crop or if the availability of yield and loss
data for the county crop is limited. Information about how these
determinations are made is available by submitting a request to the FCIC
Regional Service Office for the producer's area. Alternate methods of
determining the effects of adverse growing conditions on insurance
experience may be implemented by FCIC if allowed in the Special
Provisions.
[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]
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 24]]
(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 are 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 section 400.309,
or as the result of appeals under 7 CFR part 11.
(c) A nonstandard classification may be assigned to identified
insurable acreage; a person; or to a combination of person and
identified acreage for a crop or crop practice, type, variety, or crop
option or amendment 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.
[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]
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
[[Page 25]]
reached. Court proceedings conferring majority on an individual under 18
years of age will not change such individual's status as a minor.
Sec. 400.307 Discontinuance of participation.
If the person has discontinued participation in the crop insurance
program, the person will still be included on the NCS list in the county
until the person has discontinued participation as a policyholder or a
person with a substantial beneficial interest in a policyholder for at
least 10 consecutive crop years. 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. A nonstandard classification will no longer be applicable to the
person or the person on identified acreage if the Corporation determines
the person is deceased.
[62 FR 22877, Apr. 28, 1997]
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 that 30 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) Any person not satisfied by a determination of the Corporation
upon reconsideration may further appeal under the provisions of 7 CFR
part 11.
[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]
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
[[Page 26]]
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 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 precludes such damages being imposed
against the company if a determination is obtained from FCIC that the
company, its employee, agent or loss adjuster failed to comply with the
terms of the policy or procedures issued by FCIC and such failure
resulted in the insured receiving a payment in an amount that is less
than the amount to which the insured was entitled); 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.
[55 FR 23069, June 6, 1990, as amended at 69 FR 48730, Aug. 10, 2004]
Subpart Q_General Administrative Regulations; Collection and Storage of
Social Security Account Numbers and Employer Identification Numbers
Authority: 7 U.S.C. 1506(l), 1506(p).
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 Act to prescribe procedures for the collection, use, and
confidentiality of Social Security Numbers (SSN) and Employer
Identification Numbers (EIN) and related records.
(b) These regulations are applicable to:
(1) All holders of crop insurance policies issued by FCIC under the
Act and sold and serviced by local FSA offices.
(2) All holders of crop insurance policies sold by insurance
providers and all insurance providers, their contractors and
subcontractors, including past and present officers and employees of
such companies, their contractors and subcontractors.
(3) Any agent, general agent, or company, or any past or present
officer, employee, contractor or subcontractor of such agent, general
agent, or company under contract to FCIC or an insurance provider for
loss adjustment or any other purpose related to the crop insurance
programs insured or reinsured by FCIC; and
(4) All past and present officers, employees, elected officials,
contractors, and subcontractors of FCIC and FSA.
[57 FR 46297, Oct. 8, 1992, as amended at 62 FR 28608, May 27, 1997]
[[Page 27]]
Sec. 400.402 Definitions.
Act. The Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et
seq.).
Applicant. A person who has submitted an application for crop
insurance coverage under the Act.
Authorized person. Any current or past officer, employee, elected
official, general agent, contractor, or loss adjuster of FCIC, the
insurance provider, or any other government agency whose duties require
access to administer the Act.
Disposition of records. The act of removing and disposing of records
containing a participant's SSN or EIN by FCIC, or the insurance
provider.
FCIC. The Federal Crop Insurance Corporation of the United States
Department of Agriculture or any successor agency.
FSA. The Farm Service Agency of the United States Department of
Agriculture, or a successor agency.
Insurance provider. A private insurance company approved by FCIC, or
a local FSA office providing crop insurance coverage to producers
participating in any program administered under the Act.
Past officers and employees. Any officer or employee of FCIC or the
insurance provider who leaves the employ of FCIC or the insurance
provider subsequent to the effective date of this rule.
Person. An individual, partnership, association, corporation,
estate, trust, or other legal entity, and whenever applicable, a state,
political subdivision, or an agency of a state.
Policyholder. An applicant whose application for insurance under the
crop insurance program has been accepted by FCIC or the insurance
provider.
Retrieval of records. Retrieval of a person's records by that
person's SSN or EIN, or name.
Safeguards. Methods of security to be employed by FCIC or the
insurance provider to protect a participant's SSN or EIN from unlawful
disclosure and access.
Storage. The secured storing of records kept by FCIC or the
insurance provider on computer disks or drives, computer printouts,
magnetic tape, index cards, microfiche, microfilm, etc.
Substantial beneficial interest. Any person having an interest of at
least 10 percent in the applicant or policyholder.
System of records. Records established and maintained by FCIC or the
insurance provider containing SSN or EIN data, name, address, city and
State, applicable policy numbers, and other information related to
multiple peril crop insurance policies as required by FCIC, from which
information is retrieved by a personal identifier including, but not
limited to the SSN, EIN, or name.
[62 FR 28608, May 27, 1997]
Sec. 400.403 Required system of records.
Insurance providers are required to implement a system of records
for obtaining, using, and storing documents containing SSN or EIN data
before they accept or receive any applications for insurance. This data
should include: name; address; city and state; SSN or EIN; and policy
numbers which have been used by FCIC or the insurance provider.
[62 FR 28608, May 27, 1997]
Sec. 400.404 Policyholder responsibilities.
(a) The policyholder or applicant for crop insurance must provide a
correct SSN or EIN to FCIC or the insurance provider to be eligible for
insurance. The SSN or EIN will be used by FCIC and the insurance
provider in:
(1) Determining the correct parties to the agreement or contract;
(2) Collecting premiums or other amounts due FCIC or the insurance
provider;
(3) Determining the amount of indemnities;
(4) Establishing actuarial data on an individual policyholder basis;
and
(5) Determining eligibility for crop insurance program participation
or other United States Department of Agriculture 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, FCIC or the reinsured company shall reject
the application.
(c) The policyholder or applicant is required to provide to FCIC or
the insurance provider, the name and SSN or EIN of any individual or
other entity:
[[Page 28]]
(1) holding or acquiring a substantial beneficial interest in such
policyholder or applicant; or
(2) having any interest in the policyholder or applicant and
receiving separate benefits under another United States Department of
Agriculture program as a direct result of such interest.
(d) If a policyholder or applicant is using an EIN for a policy in
an individual person's name, the SSN of the policyholder or applicant
must also be provided.
[62 FR 28608, May 27, 1997]
Sec. 400.405 Agent and loss adjuster responsibilities.
(a) The agent or loss adjuster shall provide his or her correct SSN
to FCIC or the insurance provider, whichever is applicable, to be
eligible to participate in the crop insurance program. The SSN will be
used by FCIC and the insurance provider in establishing a database for
the purposes of:
(1) Identifying agents and loss adjusters on an individual basis;
(2) Evaluating agents and loss adjusters to determine level of
performance;
(3) Determining eligibility for program participation; and
(4) Collection of any amount which may be owed by the agent and loss
adjuster to the United States.
(b) If the loss adjuster contracting with FCIC to participate in the
crop insurance program does not provide his or her correct SSN on forms
or contracts where such SSN is required, the loss adjuster's contract
will be cancelled effective on the date of refusal and the loss adjuster
will be subject to suspension and debarment in accordance with the
suspension and debarment regulations of the United States Department of
Agriculture.
(c) If the agent or loss adjuster contracting with an insurance
provider, who is also a private insurance company, to participate in the
crop insurance program does not provide his or her correct SSN on forms
or contracts where such SSN is required, the premium subsidy payable for
administrative and operating expenses under the Standard Reinsurance
Agreement, or any other reinsurance agreement, will not be paid on those
policies lacking the correct SSN.
[62 FR 28609, May 27, 1997]
Sec. 400.406 Insurance provider responsibilities.
The insurance provider is required to collect and record the SSN or
EIN on each application or on any other form required by FCIC.
[62 FR 28609, May 27, 1997]
Sec. 400.407 Restricted access.
The Manager, other officer, or employee of FCIC or an authorized
person may have access to the SSNs and EINs obtained pursuant to this
subpart, only for the purpose of establishing and maintaining a system
of records necessary for the effective administration of the Act.
[62 FR 28609, May 27, 1997]
Sec. 400.408 Safeguards and storage.
Records must be maintained in secured storage with proper safeguards
sufficient to enforce the restricted access provisions of this subpart.
[62 FR 28609, May 27, 1997]
Sec. 400.409 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.
[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]
Sec. 400.410 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 U.S.C. 7613, 5 U.S.C. 552a, and 42 U.S.C. 408.
[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]
[[Page 29]]
Sec. 400.411 Obtaining personal records.
Policyholders, agents, and loss adjusters in the crop insurance
program will be able to review and correct their records as provided by
the Privacy Act. Records may be requested by:
(a) Mailing a signed written request to the headquarters office of
FCIC; the FCIC Regional Service Office, or the insurance provider; or
(b) Making a personal visit to the above mentioned establishments
and showing valid identification.
[57 FR 46297, Oct. 8, 1992. Redesignated and amended at 62 FR 28608,
28609, May 27, 1997]
Sec. 400.412 Record retention.
(a) FCIC or the insurance provider will retain all records of
policyholders for a period of not less than 3 years from the date of
final action on a policy for the crop year, unless further maintenance
of specific records is requested by FCIC. Final actions on insurance
policies include conclusion of insurance events, such as the latest of
termination of the policy, completion of loss adjustment, or
satisfaction of claim.
(b) The statute of limitations for FCIC contract claims may permit
litigation to be instituted after the period of record retention.
Destruction of records prior to the expiration of the statute of
limitations will not provide a defense to any action by FCIC against any
private insurance company.
[62 FR 28609, May 27, 1997]
Sec. 400.413 [Reserved]
Subpart R_Administrative Remedies for Non-Compliance
Authority: 7 U.S.C. 1506(l), 1506(o), and 7 U.S.C. 1515(h)
Source: 58 FR 53110, Oct. 14, 1993, unless otherwise noted.
Sec. 400.451 General.
(a) FCIC has implemented a system of administrative remedies in its
efforts to ensure program compliance and prevent fraud, waste, and abuse
within the Federal crop insurance program. Such remedies include civil
fines and disqualifications under the authority of section 515(h) of the
Act (7 U.S.C. 1515(h)); government-wide suspension and debarment under
the authority of 48 CFR part 9, 48 CFR part 409, and 2 CFR parts 180 and
417; and civil fines and assessments under the authority of the Program
Fraud Civil Remedies Act (31 U.S.C. 3801-3812).
(b) The provisions of this subpart apply to all participants in the
Federal crop insurance program, including but not limited to producers,
agents, loss adjusters, approved insurance providers and their employees
or contractors, as well as any other persons who may provide information
to a program participant and meet the elements for imposition of one or
more administrative remedies contained in this subpart.
(c) Any remedial action taken pursuant to this subpart is in
addition to any other actions specifically provided in applicable crop
insurance policies, contracts, reinsurance agreements, or other
applicable statutes and regulations.
(d) This rule is applicable to any violation occurring on and after
January 20, 2009.
(e) The purpose of the remedial actions authorized in this subpart
are for the protection of the public interest from potential harm from
persons who have abused the Federal crop insurance program, maintaining
program integrity, and fostering public confidence in the program.
[73 FR 76887, Dec. 18, 2008, as amended at 83 FR 25361, June 1, 2018]
Sec. 400.452 Definitions.
For purposes of this subpart:
Act. Has the same meaning as the term in section 1 of the Common
Crop Insurance Policy Basic Provisions (7 CFR 457.8).
Affiliate. Persons are affiliates of each other if, directly or
indirectly, either one controls or has the power to control the other,
or, a third person controls or has the power to control both. Indicia of
control include, but are not limited to: interlocking management or
ownership, identity of interests among family members, shared facilities
and equipment, common use of employees, or a business entity organized
following the disqualification,
[[Page 30]]
suspension or debarment of a person which has the same or similar
management, ownership, or principal employees as the disqualified,
suspended, debarred, ineligible, or voluntarily excluded person.
Agency. The person authorized by an approved insurance provider, or
its designee, to sell and service a crop insurance policy under the
Federal crop insurance program.
Agent. Has the same meaning as the term in 7 CFR 400.701.
Agricultural commodity. Has the same meaning as the term in section
1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8).
Approved insurance provider. Has the same meaning as the term in 7
CFR 400.701.
Benefit. Any advantage, preference, privilege, or favorable
consideration a person receives from another person in exchange for
certain acts or considerations. A benefit may be monetary or non-
monetary.
FCIC. Has the same meaning as the term in 7 CFR 400.701.
Key employee. Any person with primary management or supervisory
responsibilities or who has the ability to direct activities or make
decisions regarding the crop insurance program.
Knows or has reason to know. When a person, with respect to a claim
or statement:
(1)(i) Has actual knowledge that the claim or statement is false,
fictitious, or fraudulent;
(ii) Acts in deliberate ignorance of the truth or falsity of the
claim or statement; or
(iii) Acts in reckless disregard of the truth or falsity of the
claim or statement; and
(2) No proof of specific intent is required.
Managing general agent. Has the same meaning as the term in 7 CFR
400.701.
Material. A violation that causes or has the potential to cause a
monetary loss to the crop insurance program or it adversely affects
program integrity, including but not limited to potential harm to the
program's reputation or allowing persons to be eligible for benefits
they would not otherwise be entitled.
Participant. Any person who obtains any benefit that is derived in
whole or in part from funds paid by FCIC to the approved insurance
provider or premium paid by the producer. Participants include but are
not limited to producers, agents, loss adjusters, agencies, managing
general agencies, approved insurance providers, and any person
associated with the approved insurance provider through employment,
contract, or agreement.
Person. An individual, partnership, association, corporation,
estate, trust or other legal entity, any affiliate or principal thereof,
and whenever applicable, a State or political subdivision or agency of a
State. ``Person'' does not include the United States Government or any
of its agencies.
Policy. Has the same meaning as the term in section 1 of the Common
Crop Insurance Policy Basic Provisions (7 CFR 457.8).
Preponderance of the evidence. Proof by information that, when
compared with the opposing evidence, leads to the conclusion that the
fact at issue is probably more true than not.
Principal. A person who is an officer, director, owner, partner, key
employee, or other person within an entity with primary management or
supervisory responsibilities over the entity's federal crop insurance
activities; or a person who has a critical influence on or substantive
control over the federal crop insurance activities of the entity.
Producer. A person engaged in producing an agricultural commodity
for a share of the insured crop, or the proceeds thereof.
Provides. Means to make available, supply or furnish with. The term
includes any transmission of the information from one person to another
person. For example, a producer writes information on forms and gives it
to the agent and the agent transmits that information to the insurance
provider. In both instances, the information is ``provided'' for the
purpose of this rule.
Reinsurance agreement. Has the same meaning as the term in 7 CFR
400.161, except that such agreement is only between FCIC and the
approved insurance provider.
[[Page 31]]
Requirement of FCIC. Includes, but is not limited to, formal
communications, such as a regulation, procedure, policy provision,
reinsurance agreement, memorandum, bulletin, handbook, manual, finding,
directive, or letter, signed or issued by a person authorized by FCIC to
provide such communication on behalf of FCIC, that requires a particular
participant or group of participants to take a specific action or to
cease and desist from a taking a specific action (e-mails will not be
considered formal communications although they may be used to transmit a
formal communication). Formal communications that contain a remedy in
such communication in the event of a violation of its terms and
conditions will not be considered a requirement of FCIC unless such
violation arises to the level where remedial action is appropriate. (For
example, multiple violations of the same provision in separate policies
or procedures or multiple violations of different provisions in the same
policy or procedure.)
Violation. Each act or omission by a person that satisfies all
required elements for the imposition of a disqualification or a civil
fine contained in Sec. 400.454.
Willful and intentional. To provide false or inaccurate information
with the knowledge that the information is false or inaccurate at the
time the information is provided; the failure to correct the false or
inaccurate information when its nature becomes known to the person who
made it; or to commit an act or omission with the knowledge that the act
or omission is not in compliance with a ``requirement of FCIC'' at the
time the act or omission occurred. No showing of malicious intent is
necessary.
[73 FR 76887, Dec. 18, 2008]
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 Disqualification and civil fines.
(a) Before any disqualification or civil fine is imposed, FCIC will
provide the affected participants and other persons with notice and an
opportunity for a hearing on the record in accordance with 7 CFR part 1,
subpart H.
(1) Proceedings will be initiated when the Manager of FCIC files a
complaint with the Hearing Clerk, United States Department of
Agriculture.
(2) Disqualifications become effective:
(i) On the date specified in the order issued by the Administrative
Law Judge or Judicial Officer, as applicable, or if no date is specified
in the order, the date that the order was issued.
(ii) With respect to a settlement agreement with FCIC, the date
contained in the settlement agreement or, if no date is specified, the
date that such agreement is executed by FCIC.
(3) Disqualification and civil fines may only be imposed if a
preponderance of the evidence shows that the participant or other person
has met the standards contained in Sec. 400.454(b). FCIC has the burden
of proving that the standards in Sec. 400.454(b) have been met.
(4) Disqualification and civil fines may be imposed regardless of
whether FCIC or the approved insurance provider has suffered any
monetary losses. However, if there is no monetary loss, disqualification
will only be imposed if the violation is material in accordance with
Sec. 400.454(c).
(b) Disqualification and civil fines may be imposed on any
participant or person who willfully and intentionally:
(1) Provides any false or inaccurate information to FCIC or to any
approved insurance provider with respect to a policy or plan of
insurance authorized under the Act either through action or omission to
act when there is knowledge that false or inaccurate information is or
will be provided; or
(2) Fails to comply with a requirement of FCIC.
(c) When imposing any disqualification or civil fine:
(1) The gravity of the violation must be considered when
determining:
(i) Whether to disqualify a participant or other person;
[[Page 32]]
(ii) The amount of time that a participant or other person should be
disqualified;
(iii) Whether to impose a civil fine; and
(iv) The amount of a civil fine that should be imposed.
(2) The gravity of the violation includes consideration of whether
the violation was material and if it was material:
(i) The number or frequency of incidents or duration of the
violation;
(ii) Whether there is a pattern or prior history of violation;
(iii) Whether and to what extent the person planned, initiated, or
carried out the violation;
(iv) Whether the person has accepted responsibility for the
violation and recognizes the seriousness of the misconduct that led to
the cause for disqualification or civil fine;
(v) Whether the person has paid all civil and administrative
liabilities for the violation;
(vi) Whether the person has cooperated fully with FCIC (In
determining the extent of cooperation, FCIC may consider when the
cooperation began and whether the person disclosed all pertinent
information known to that person at the time);
(vii) Whether the violation was pervasive within the organization;
(viii) The kind of positions held by the persons involved in the
violation;
(ix) Whether the organization took prompt, appropriate corrective
action or remedial measures, such as establishing ethics training and
implementing programs to prevent recurrence;
(x) Whether the principals of the organization tolerated the
offense;
(xi) Whether the person brought the violation to the attention of
FCIC in a timely manner;
(xii) Whether the organization had effective standards of conduct
and internal control systems in place at the time the violation
occurred;
(xiii) Whether the organization has taken appropriate disciplinary
action against the persons responsible for the violation;
(xiv) Whether the organization had adequate time to eliminate the
violation that led to the cause for disqualification or civil fine;
(xv) Other factors that are appropriate to the circumstances of a
particular case.
(3) The maximum term of disqualification and civil fines will be
imposed against:
(i) Participants and other persons, except insurance providers who:
(A) Commit multiple violations in the same crop year or over several
crop years; or
(B) Commit a single violation but such violation results in an
overpayment of more than $100,000;
(ii) Approved insurance providers who:
(A) Commit a single violation resulting in an overpayment in excess
of $100,000; and
(B) Commit multiple acts of violations resulting in an overpayment
in excess of $500,000; and
(iii) Any participant or person who commits such other action or
omission of so serious a nature that imposition of the maximum is
appropriate.
(d) With respect to the imputing of conduct:
(1) The conduct of any officer, director, shareholder, partner,
employee, or other individual associated with an organization, in
violation of Sec. 400.454(b) may be imputed to that organization when
such conduct occurred in connection with the individual's performance of
duties for or on behalf of that organization, or with the organization's
knowledge, approval or acquiescence. The organization's acceptance of
the benefits derived from the violation is evidence of knowledge,
approval or acquiescence.
(2) The conduct of any organization in violation of Sec. 400.454(b)
may be imputed to an individual, or from one individual to another
individual, if the individual to whom the improper conduct is imputed
either participated in, knows, or had reason to know of such conduct.
(3) The conduct of one organization in violation of Sec. 400.454(b)
may be imputed to another organization when such conduct occurred in
connection with a partnership, joint venture, joint application,
association or similar arrangement, or when the organization
[[Page 33]]
to whom the improper conduct is imputed has the power to direct, manage,
control or influence the activities of the organization responsible for
the improper conduct. Acceptance of the benefits derived from the
conduct is evidence of knowledge, approval or acquiescence.
(4) If such conduct is imputed, the person to whom the conduct is
imputed to may be subject to the same disqualification and civil fines
as the person from whom the conduct is imputed. The factors contained in
Sec. 400.454(c)(2) will be taken into consideration with respect to the
person to whom the conduct is being imputed.
(e) With respect to disqualifications:
(1) If a person is disqualified and that person is a:
(i) Producer, the producer will be precluded from receiving any
monetary or non-monetary benefit provided under all of the following
authorities, or their successors:
(A) The Act;
(B) The Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7333 et seq.) or any successor statute;
(C) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) or any
successor statute;
(D) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
seq.) or any successor statute;
(E) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.)
or any successor statute;
(F) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.) or any successor statute;
(G) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921,
et seq.) or any successor statute; and
(H) Any federal law that provides assistance to the producer of an
agricultural commodity affected by a crop loss or decline in the prices
of agricultural commodities.
(ii) Participant or other person, other than a producer, such
participant or person will be precluded from participating in any way in
the Federal crop insurance program and receiving any monetary or non-
monetary benefit under the Act.
(2) With respect to the term of disqualification:
(i) The minimum term will be not less than one year from the
effective date determined in Sec. 400.454(a)(2);
(ii) The maximum term will be not more than five years from the
effective date determined in Sec. 400.454(a)(2); and
(iii) Disqualification is to be imposed only in one-year increments,
up to the maximum five years.
(3) Once a disqualification becomes final, the name, address, and
other identifying information of the participant or other person shall
be entered into the Ineligible Tracking System (ITS) maintained by FCIC
in accordance with 7 CFR part 400, subpart U, and this information along
with a list of the programs that the person is disqualified from shall
be promptly reported to the General Services Administration for listing
in the System for Award Management (SAM) in accordance with 2 CFR part
417.
(i) It is a participant's responsibility to periodically review the
ITS and EPLS to determine those participants and other persons who have
been disqualified.
(ii) No participant may conduct business with a disqualified
participant or other person if such business directly relates to the
Federal crop insurance program, or if, through the business
relationship, the disqualified participant or other person will derive
any monetary or non-monetary benefit from a program administered under
the Act.
(iii) If a participant or other person does business with a
disqualified participant or other person, such participant may be
subject to disqualification under this section.
(iv) Continuing to make payments to a disqualified person to fulfill
pre-existing contractual or statutory obligations after the business
relationship is terminated will not be considered as doing business with
a disqualified person unless such payment is used as a means to
circumvent the disqualification process.
(f) With respect to civil fines:
(1) A civil fine may be imposed for each violation.
(2) The amount of such civil fine shall not exceed the maximum
amount specified in 7 CFR 3.91 (b)(7).
(3) Civil fines are debts owed to FCIC.
[[Page 34]]
(i) A civil fine that is either imposed under with this subpart, or
agreed to through an executed settlement agreement with FCIC, must be
paid by the specified due date. If the due date is not specified in the
order issued by the Administrative Law Judge or Judicial Officer, as
applicable, or the settlement agreement, it shall be 30 days after the
date the order was issued or the settlement agreement signed by FCIC.
(ii) Any civil fine imposed under this section is in addition to any
debt that may be owed to FCIC or to any approved insurance provider,
such an overpaid indemnity, underpaid premium, or other amounts owed.
(iii) FCIC, in its sole discretion, may reduce or otherwise settle
any civil fine imposed under this section whenever it considers it
appropriate or in the best interest of the USDA.
(4) The ineligibility procedures established in 7 CFR part 400,
subpart U are not applicable to ineligibility determinations made under
this section for nonpayment of civil fines.
(5) If a civil fine has been imposed and the person has not made
timely payment for the total amount due, the person is ineligible to
participate in the Federal crop insurance program until the amount due
is paid in full.
(g) With respect to any person that has been disqualified or is
otherwise ineligible due to non-payment of civil fines in accordance
with Sec. 400.454(f):
(1) With respect to producers:
(i) All existing insurance policies will automatically terminate as
of the next termination date that occurs during the period of
disqualification and while the civil fine remains unpaid;
(ii) No new policies can be purchased, and no current policies can
be renewed, between the date that the producer is disqualified and the
date that the disqualification ends; and
(iii) New application for insurance cannot be made for any
agricultural commodity until the next sales closing date after the
period of disqualification has ended and the civil fine is paid in full.
(2) With respect to all other persons:
(i) Such person may not be involved in any function related to the
Federal crop insurance program during the disqualification or
ineligibility period (including the sale, service, adjustment, data
transmission or storage, reinsurance, etc. of any crop insurance policy)
or receive any monetary or non-monetary benefit from a program
administered under the Act.
(ii) If the person is an agent or insurance agency, the producers
may cancel their policies sold and serviced by the disqualified agent
and rewrite the policy with another agent. If the producer does not
cancel and rewrite the policy with another agent, the approved insurance
provider must assign the policies to a different agent or agency to
service during the period of disqualification or ineligibility. Policies
that have been assigned to another agent or agency by the insurance
provider will revert back to the disqualified agent or agency after the
period of disqualification has ended provided all civil fines are paid
in full and the producer does not cancel and rewrite the policy with a
different agent or agency;
(iii) If the person is an approved insurance provider, the approved
insurance provider shall not sell, or authorize to be sold, any new
policies or may not renew, or authorize the renewal of, existing
policies, as determined by FCIC, during the period of disqualification
or ineligibility. Nothing in this provision affects the approved
insurance provider's responsibilities with respect to the service of
existing policies.
(h) Imposition of disqualification or a civil fine under this
section is in addition to any other administrative or legal remedies
available under this section or other applicable law including, but not
limited to, debarment and suspension.
[73 FR 76888, Dec. 18, 2008, as amended at 84 FR 52997, Oct. 4, 2019; 86
FR 67835, Nov. 30, 2021]
Sec. 400.455 Governmentwide debarment and suspension (procurement).
(a) For all transactions undertaken pursuant to the Federal
Acquisition Regulations, FCIC will proceed under 48 CFR part 9, subpart
9.4 or 48 CFR part 409 when taking action to suspend or debar persons
involved in such transactions, except that the authority
[[Page 35]]
to suspend or debar under these provisions will be reserved to the
Manager of FCIC, or the Manager's designee.
(b) Any person suspended or debarred under the provisions of 48 CFR
part 9, subpart 9.4 or 48 CFR part 409 will not be eligible to contract
with FCIC or the Risk Management Agency and will not be eligible to
participate in or receive any benefit from any program under the Act
during the period of ineligibility. This includes, but is not limited
to, being employed by or contracting with any approved insurance
provider that sells, services, or adjusts policies offered under the
authority of the Act. FCIC may waive this provision if it is satisfied
that the person who employs the suspended or debarred person has taken
sufficient action to ensure that the suspended or debarred person will
not be involved, in any way, with FCIC or receive any benefit from any
program under the Act.
[73 FR 76890, Dec. 18, 2008]
Sec. 400.456 Governmentwide debarment and suspension (nonprocurement).
(a) FCIC will proceed under 2 CFR parts 180 and 417 when taking
action to suspend or debar persons involved in non-procurement
transactions.
(b) Any person suspended or debarred under the provisions of 2 CFR
parts 180 and 417, will not be eligible to contract with FCIC or the
Risk Management Agency and will not be eligible to participate in or
receive any benefit from any program under the Act during the period of
ineligibility. This includes, but is not limited to, being employed by
or contracting with any approved insurance provider, or its contractors,
that sell, service, or adjust policies either insured or reinsured by
FCIC. FCIC may waive this provision if it is satisfied that the approved
insurance provider or contractors have taken sufficient action to ensure
that the suspended or debarred person will not be involved in any way
with the Federal crop insurance program or receive any benefit from any
program under the Act.
(c) The Manager, FCIC, shall be the debarring and suspending
official for all debarment or suspension proceedings undertaken by FCIC
under the provisions of 2 CFR parts 180 and 417.
[73 FR 76890, Dec. 18, 2008, as amended at 83 FR 25361, June 1, 2018]
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 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.
(d) Civil penalties and assessments imposed pursuant to this section
are in addition to any other remedies that may be prescribed by law or
imposed under this subpart.
[58 FR 53110, Oct. 14, 1993, as amended at 73 FR 76891, Dec. 18, 2008]
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
[[Page 36]]
to your interest in the policyholder, to evade:
(1) Suspension, debarment, or disqualification from participation in
the program; or
(2) Ineligibility for a delinquent debt owed to FCIC or the
insurance company.
[60 FR 37324, July 20, 1995, as amended at 73 FR 76891, Dec. 18, 2008]
Sec. Sec. 400.459-400.500 [Reserved]
Subpart S [Reserved]
Subpart T_Federal Crop Insurance Reform, Insurance Implementation
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, 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.
[61 FR 42975, Aug. 20, 1996, as amended at 68 FR 37721, June 25, 2003]
Sec. 400.651 Definitions.
Act. The Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et
seq.).
Additional coverage. A level of coverage greater than catastrophic
risk protection.
Administrative fee. An amount the producer must pay for
catastrophic, and additional coverage each crop year on a per crop and
county basis as specified in the Basic Provisions or the Catastrophic
Risk Protection Endorsement.
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 actual production history (APH) yield,
calculated and approved by the verifier, used to determine the
production guarantee by summing the yearly actual, assigned, adjusted or
unadjusted transitional yields and dividing the sum by the number of
yields contained in the database, which will always contain at least
four yields. The database may contain up to 10 consecutive crop years of
actual or assigned yields. The approved yield may have yield adjustments
elected under applicable policy provisions, or other limitations
according to FCIC approved procedures applied when calculating the
approved yield.
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.
[[Page 37]]
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.
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. 400.655,
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.
[61 FR 42975, Aug. 20, 1996, as amended at 63 FR 40634, July 30, 1998;
64 FR 40742, July 28, 1999; 68 FR 37721, June 25, 2003]
Sec. 400.652 Insurance availability.
(a) If sufficient actuarial data are available, FCIC will offer
catastrophic risk protection, 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. 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 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
[[Page 38]]
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.
[61 FR 42975, Aug. 20, 1996, as amended at 68 FR 37721, June 25, 2003]
Sec. 400.653 Determining crops of economic significance.
To be eligible for certain other program benefits under Sec.
400.655 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 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. 400.655. Failure
to execute such a waiver will require the producer to refund any
benefits already received under a program specified in Sec. 400.655.
(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.
[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999]
Sec. 400.654 Application and acreage report.
(a) To participate in catastrophic risk protection, 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. 400.655, 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
[[Page 39]]
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.
400.655. 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
additional coverage after the sales closing date for the substitute
crop.
(d) For all coverages, including catastrophic risk protection, 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 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.
[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999;
68 FR 37721, June 25, 2003]
Sec. 400.655 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.
[61 FR 42975, Aug. 20, 1996. Redesignated at 63 FR 40634, July 30, 1998]
Sec. Sec. 400.656-400.657 [Reserved]
Subpart U_Ineligibility for Programs Under the Federal Crop Insurance
Act
Source: 79 FR 2079, Jan. 13, 2014, unless otherwise noted.
Sec. 400.675 Purpose.
This subpart prescribes conditions under which a person may be
determined to be ineligible to participate in any program administered
under the authority of the Federal Crop Insurance Act. This subpart also
establishes the criteria for regaining eligibility.
Sec. 400.676 [Reserved]
Sec. 400.677 Definitions.
As used in this subpart:
Act means the Federal Crop Insurance Act (7 U.S.C. 1501-1524).
Applicant means a person who has submitted an application for crop
insurance coverage under the Act.
Authorized person means any current or past officer, employee,
elected official, managing general agent, agent, or contractor of an
insurance provider, FCIC, or any other government agency whose duties
require access to the ITS to administer the Act.
Controlled substance has the same meaning provided in 7 CFR
3021.610.
[[Page 40]]
Conviction means a judgment or any other determination of guilt of a
criminal offense by any court of competent jurisdiction, whether entered
upon a verdict or plea, including a plea of no contest.
Date of delinquency means: The termination date specified in the
applicable policy for administrative fees and premiums owed for
insurance issued under the authority of the Act, and any interest and
penalties on those amounts, if applicable; and the due date specified in
the notice to the person of the amount due for any other amounts due the
insurance provider or FCIC for insurance issued under the authority of
the Act. Other amounts due include, but are not limited to, indemnities,
prevented planting payments, or replant payments found not to have been
earned or that were overpaid, premium billed with a due date after the
termination date for the crop year in which premium is earned, and any
interest, administrative fees, and penalties on such amounts, if
applicable. Payments postmarked or received before the date of
delinquency by the insurance provider or its agent for debts owed to the
insurance provider, or by FCIC for debts owed to FCIC, are not
delinquent.
Debt means an amount of money that has been determined to be owed by
any person to FCIC or an insurance provider, excluding money owed to an
insurance provider's agent, under any program administered under the
Act. The debt may have arisen from nonpayment of interest, penalties,
premium, or administrative fee; overpayment of indemnity, prevented
planting or replant payment; cost of collection; or other causes. A debt
does not include debts discharged in bankruptcy.
Debtor means a person who owes a debt and that debt is delinquent.
Delinquent debt means a debt that is not satisfied on or before the
date of delinquency. To avoid delinquency or ineligibility due to a
delinquent debt, a debtor may enter into a written payment agreement
acceptable to the insurance provider or FCIC to pay any such debt as
long as all payments are made by the due dates specified in such written
payment agreement. A delinquent debt does not include debts discharged
in bankruptcy or any debt to an insurance provider's agent.
Employer Identification Number (EIN) means a Tax Identification
Number issued by the Internal Revenue Service used to identify a
business entity, and may also be referred to as a Federal Tax
Identification Number.
Excluded Parties List System (EPLS) means a list maintained by the
General Services Administration that provides a source of current
information about persons who are excluded or disqualified from covered
transactions, including the date the person was determined ineligible
and the date the period of ineligibility ends.
Federal Crop Insurance Corporation (FCIC) means a wholly owned
government corporation within the USDA.
Ineligible person means a person who is denied participation in any
program administered under the authority of the Act.
Ineligible Tracking System (ITS) means an electronic system to
identify persons who are ineligible to participate in any program
pursuant to this subpart.
Insurance Provider means a legal entity which has entered into a
Standard Reinsurance Agreement, Livestock Price Reinsurance Agreement,
or other reinsurance agreement, as applicable, with FCIC for the
applicable reinsurance year.
Livestock Price Reinsurance Agreement means a cooperative financial
assistance agreement between FCIC and an insurance provider to deliver
eligible livestock price insurance contracts under the authority of the
Act and establishes the terms and conditions under which FCIC will
provide subsidy and reinsurance on eligible livestock price insurance
policies sold.
Meaningful opportunity to contest means the opportunity for the
insured to resolve disagreements with a decision by the insurance
provider through requesting a review of the decision by the insurance
provider, mediation, arbitration, or judicial review, as applicable.
Person means an individual, partnership, association, corporation,
estate, trust, or other legal entity, and wherever applicable, a State
or political
[[Page 41]]
subdivision or agency of a State. ``Person'' does not include the United
States Government or any agency thereof.
Qualified alien has the same meaning provided in the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1641).
Reinstatement means that the policy will retain the same plan of
insurance, coverage levels, price percentages, endorsements and options
the person had prior to termination, provided the person continues to
meet all eligibility requirements, comply with the terms of the policy,
and there is no evidence of misrepresentation or fraud.
Social Security Number (SSN) means an individual's Social Security
Number as issued under the authority of the Social Security Act.
Standard Reinsurance Agreement (SRA) means a cooperative financial
assistance agreement between FCIC and an insurance provider to deliver
eligible crop insurance contracts under the authority of the Act and
establishes the terms and conditions under which FCIC will provide
subsidy and reinsurance on eligible crop insurance policies sold.
Substantial beneficial interest has the same meaning as contained in
the applicable policy.
USDA means the United States Department of Agriculture.
United States non-citizen national has the same meaning provided in
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (8 U.S.C. Sec. 1408).
Written payment agreement means a written document between a debtor
and the insurance provider, or FCIC, that is signed and dated by all
applicable parties to satisfy financial obligations of the debtor with
scheduled installment payments under conditions that modify the terms of
the original debt in accordance with Sec. 400.681.
[79 FR 2079, Jan. 13, 2014, as amended at 81 FR 42472, June 30, 2016]
Sec. 400.678 Applicability.
This subpart applies to any program administered under the authority
of the Act, including but not limited to:
(a) The catastrophic risk protection plan of insurance;
(b) The additional coverage plans of insurance as authorized under
section 508(c) of the Act;
(c) Private insurance products authorized under section 508(h) or
523(d) of the Act and reinsured by FCIC; and
(d) Persons entering contracts or cooperative agreements under
sections 506(l), 522(c), 522(d), or 524(a) of the Act.
Sec. 400.679 Criteria for ineligibility.
Except as otherwise provided, a person is ineligible to participate
in any program administered under the authority of the Act if the person
meets one or more of the following criteria:
(a) Has a delinquent debt:
(1) The existence and delinquency of the debt must be verifiable.
(2) The person has to be provided a meaningful opportunity to
contest the debt.
(3) If the person contests the debt, such action does not delay or
preclude:
(i) Effect of the determination of ineligibility;
(ii) Determination or notification of ineligibility in accordance
with Sec. 400.682;
(iii) Termination of the applicable crop insurance policies; or
(iv) Ineligible persons being reported in accordance with Sec.
400.682 or the ineligible persons being recorded in the ITS.
(4) If the person is determined not to owe the debt, eligibility is
reinstated retroactive to the date of the determination of
ineligibility, any applicable policies will be reinstated, and any
applicable indemnity, prevented planting or replant payment earned may
be paid provided the person has continued to comply with the terms of
the policy;
(b) Is an individual and has been convicted of a controlled
substance violation according to Sec. 400.680;
(c) Has been disqualified under section 515(h) of the Act.;
(d) Is an individual and is not a United States citizen, United
States non-citizen national, or a qualified alien. Such individuals may
not be recorded in the ITS; however, such individuals are ineligible
under the provisions of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, 8 U.S.C. 1611;
(e) Has been suspended or debarred for committing a crime specified
in 2
[[Page 42]]
CFR part 180 or 2 CFR part 417, or 7 U.S.C. 2209j (Ineligibility
determinations will not be stayed pending review. However, reversal of
the determination of ineligibility will reinstate eligibility
retroactive to the date of the determination of ineligibility, and any
applicable policies will be reinstated);
(f) Has been debarred for knowingly doing business with a person
debarred or suspended under 2 CFR part 180 or 2 CFR part 417 or 7 U.S.C.
2209j; or
(g) Has requested the Administrator, Risk Management Agency, for
consideration to reinstate their eligibility in accordance with the
applicable policy provisions and such request has been denied.
[79 FR 2079, Jan. 13, 2014, as amended at 79 FR 37161, July 1, 2014; 81
FR 42472, June 30, 2016]
Sec. 400.680 Controlled substance.
(a) This section implements section 1764 of the Food Security Act of
1985 (Pub. L. 99-198) and Chapter 13 of Title 21 requiring the denial of
Federal Benefits, including crop insurance, to individuals convicted of
controlled substance violations in accordance with paragraphs (b) and
(c) of this section.
(b) Notwithstanding any other provision of law, an individual will
be ineligible to participate in any program authorized under the Act, as
provided in Sec. 400.683, if the individual is convicted under Federal
or State law of planting, cultivating, growing, producing, harvesting,
or storing a controlled substance in any crop year.
(c) Notwithstanding any other provision of law, an individual may,
as determined by the court, be ineligible to participate in any program
authorized under the Act, as provided in Sec. 400.683, if the person is
convicted under Federal or State law of possession of or trafficking in
a controlled substance.
Sec. 400.681 Written payment agreement.
(a) Written payment agreements shall:
(1) Require scheduled installment payments that will allow for full
repayment of the debt within the time frame allotted in paragraph (a)(2)
of this section;
(2) Not exceed two years in duration; and
(3) Not be modified, replaced, or consolidated after it has been
executed in accordance with paragraph (b) of this section.
(b) To avoid being determined to be ineligible through the execution
of a written payment agreement:
(1) For a debt arising from any unpaid premium, administrative fees,
or catastrophic risk protection fees:
(i) Only one written payment agreement is permitted per termination
date. A written payment agreement may cover multiple crops provided they
all have the same termination date; and
(ii) The written payment agreement must be signed by both parties,
the debtor and the insurance provider or FCIC, as applicable, on or
before the termination date specified in the applicable policy to
prevent an ineligible determination for a delinquent debt.
(2) For all other debts, the written payment agreement must be
signed by both parties, the debtor and the insurance provider or FCIC,
as applicable, on or before the due date specified in the notice to the
person of the amount due to prevent an ineligible determination for a
delinquent debt.
Sec. 400.682 Determination and notification.
(a) The insurance provider must send a written notice of the debt to
the person, including the time frame in which the debt must be paid, and
provide the person with a meaningful opportunity to contest the amount
or existence of the debt. Once a debtor has filed bankruptcy and the
insurance provider is formally informed of such through the court or the
debtor, no request for payment of the debt can be made, unless approved
in writing by the Office of General Counsel. The debtor may be notified
of the amount of debt and ineligibility for crop insurance.
(1) The insurance provider shall evaluate the person's response, if
any, and determine if the debt is owed and delinquent.
(2) Upon request by FCIC, the insurance provider shall submit all
documentation related to the debt to FCIC.
[[Page 43]]
(b) If an insurance provider or any other person has evidence that a
person meets criteria set forth in Sec. 400.679(a), (b), (c), (e) or
(f), they must immediately notify FCIC.
(c) After the insurance provider determines a person has met one or
more of the criteria in Sec. 400.679 and notifies FCIC, FCIC will issue
and mail a Notice of Ineligibility to the person's last known address
and to the insurance provider. Notices sent to such address will be
conclusively presumed to have been received by that person.
(d) The Notice of Ineligibility will state the criteria upon which
the determination of ineligibility has been based, a brief statement of
the facts to support the determination, the time period of
ineligibility, and the right to appeal the determination to be placed on
the ITS in accordance with paragraph (e) of this section.
(e) Within 30 days of receiving the Notice of Ineligibility, the
ineligible person may appeal FCIC's determination to be placed on ITS to
the National Appeals Division in accordance with 7 CFR part 11. The
existence and amount of the debt is determined by the insurance
provider, not FCIC; therefore, those determinations are not appealable
to the National Appeals Division.
(f) If the person appeals FCIC's determination to be placed on ITS
to the National Appeals Division, the insurance provider will be
notified and provided with an opportunity to participate in the
proceeding, if permitted by 7 CFR part 11.
(g) No later than 60 days after the termination date, a missed
payment date of a previously executed written payment agreement, or in
the case of an overpaid indemnity or any amount that became due after
the termination date, the due date specified in a notice to the person
of an amount due, as applicable, such ineligible person may request
consideration for reinstatement from the Administrator, Risk Management
Agency, in accordance with section 2 of the Common Crop Insurance Policy
Basic Provisions (7 CFR 457.8).
[79 FR 2079, Jan. 13, 2014, as amended at 79 FR 37161, July 1, 2014; 81
FR 42472, June 30, 2016]
Sec. 400.683 Period of ineligibility.
(a) The beginning of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, beginning on
the date stated in the applicable policy;
(2) For ineligibility as a result of a conviction under Federal or
State law of:
(i) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance, the beginning of the crop year in which
the individual is convicted; or
(ii) Possession of or trafficking in a controlled substance, the
beginning of the crop year in which the individual is convicted, unless
determined otherwise by the court.
(3) For ineligibility as a result of a disqualification, debarment,
or suspension under 515(h) of the Act, 2 CFR part 180, 2 CFR part 417,
the date the person was disqualified, debarred, or suspended by
debarring official, Administrative Law Judge, or such other person
authorized to take such action; and
(4) For debarment under 7 U.S.C. 2209j, the beginning of the crop
year in which the person is convicted.
(b) The duration of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, until the
debt has been paid in full discharged in bankruptcy, or the person has
executed a written payment agreement.
(2) For ineligibility as a result of a conviction under Federal or
State law of:
(i) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance, four crop years succeeding the crop year
in which the person was convicted; and
(ii) Possession of a controlled substance or trafficking in a
controlled substance, in addition to the time of ineligibility imposed
in paragraph (b)(2)(i) of this section, until the period of time imposed
by a court has expired.
(3) For ineligibility as a result of a disqualification, debarment,
or suspension under section 515(h) of the Act, or 2 CFR part 180 and 2
CFR part 417 until the period of time of disqualification, debarment, or
suspension, as applicable, has expired.
[[Page 44]]
(4) For ineligibility as a result of not being a United States
citizen, United States non-citizen national, or a qualified alien, until
the date such individual becomes a United States citizen, United States
non-citizen national, or a qualified alien.
(5) For ineligibility as a result of a conviction falling under 7
U.S.C. 2209j, permanent unless otherwise determined by the Secretary of
Agriculture for a period of not less than 10 years.
Sec. 400.684 Effect of ineligibility.
(a) The effect of ineligibility depends on the basis for the
determination.
(1) Persons who are ineligible as a result of a delinquent debt are
ineligible for crop insurance authorized under the Act for a certain
time period in accordance with Sec. 400.683. Filing for bankruptcy does
not make the person eligible for crop insurance or preclude the
ineligible person from being placed on the ITS in accordance with Sec.
400.684(b)(1).
(2) Persons who are ineligible as a result of a suspension or
debarment are precluded from:
(i) Participating in all programs authorized under the Act,
including but not limited to:
(A) Obtaining crop insurance;
(B) Acting as an agent, loss adjuster, insurance provider, or
affiliate, as defined in the Standard Reinsurance Agreement or Livestock
Price Reinsurance Agreement, or successor agreements;
(C) Entering into any contracts with FCIC under sections 506(l) and
section 522(c) of the Act; and
(D) Entering into any cooperative agreements or partnerships under
sections 506(l), 522(d) and 524(a) of the Act; and
(ii) Participating in any other covered transaction as specified in
2 CFR part 180 and 2 CFR part 417.
(3) Persons who are ineligible because of disqualification under
section 515(h) of the Act are precluded from participating in all
programs authorized under the Act indicated in paragraph (a)(2)(i) of
this section, and those listed in section 515(h)(3)(B) and (C) of the
Act.
(4) Individuals who are ineligible because of a conviction of a
violation of the controlled substance provisions or are not a United
States citizen, United States non-citizen national, or a qualified alien
are precluded from participating in any program authorized under the Act
indicated in paragraph (a)(2)(i) of this section.
(5) Persons who are ineligible as a result of a conviction falling
under 7 U.S.C. 2209j, are precluded from participating in any program
offered by USDA.
(b) Once a person has been determined to be ineligible:
(1) The ineligible person will be placed on the ITS and may be
reported to other government agencies, unless the ineligible person is
an individual and the sole reason for ineligibility is because the
individual is not a United States citizen, United States non-citizen
national, or qualified alien.
(2) If the ineligible person is an individual:
(i) All crop insurance policies in which the ineligible person is
the sole insured will terminate if the person is ineligible for any
reason other than a controlled substance violation, or be void if the
person is ineligible due to conviction of a controlled substance
violation according to Sec. 400.680, and the person will remain
ineligible for crop insurance for the applicable period specified in
Sec. 400.683; and
(ii) The ineligible person must be reported on all policies in which
the ineligible person has a substantial beneficial interest in the
applicant or insured, and the insured share under such policy will be
reduced commensurate with the ineligible person's substantial beneficial
interest in the applicant or insured for as long as the ineligible
person remains ineligible in accordance with Sec. 400.683.
(3) If the ineligible person is a general partnership, limited
partnership, limited liability partnership, limited liability company,
or joint venture and is ineligible as a result of:
(i) A delinquent debt:
(A) All partners or members of the ineligible general partnership,
limited partnership, limited liability partnership, limited liability
company, or joint venture will be ineligible;
[[Page 45]]
(B) The ineligible general partnership, limited partnership, limited
liability partnership, limited liability company, or joint venture and
all partners and members of the ineligible general partnership, limited
partnership, limited liability partnership, limited liability company,
or joint venture will remain ineligible for crop insurance for the
applicable period specified in Sec. 400.683;
(C) All crop insurance policies in which the ineligible general
partnership, limited partnership, limited liability partnership, limited
liability company, or joint venture is the sole insured will terminate;
(D) All crop insurance policies in which the ineligible partner or
member is the sole insured will terminate; and
(E) The ineligible general partnership, limited partnership, limited
liability partnership, limited liability company, or joint venture and
all ineligible partners or members must be reported on any other policy
in which they have a substantial beneficial interest in the applicant or
insured, and the insured share under such policies will be reduced
commensurate with the ineligible general partnership, limited
partnership, limited liability partnership, limited liability company,
or joint venture or the ineligible partners' or members' substantial
beneficial interest in the applicant or insured for as long as they
remain ineligible in accordance with Sec. 400.683; or
(ii) Meeting the criteria specified in Sec. 400.679(c), (e) or (f):
(A) All crop insurance policies in which the ineligible general
partnership, limited partnership, limited liability partnership, limited
liability company, or joint venture is the sole insured will terminate,
and the ineligible general partnership, limited partnership, limited
liability partnership, limited liability company, or joint venture will
remain ineligible for crop insurance for the applicable period specified
in Sec. 400.683; and
(B) The ineligible general partnership, limited partnership, limited
liability partnership, limited liability company, or joint venture must
be reported on any other policy in which it has a substantial beneficial
interest in the applicant or insured, and the insured share under such
policies will be reduced commensurate with the ineligible general
partnership's, limited partnership's, limited liability partnership's,
limited liability company's, or joint venture's substantial beneficial
interest in the applicant or insured for as long as it remains
ineligible in accordance with Sec. 400.683.
(4) If the ineligible person is an association, estate, trust,
corporation, or other similar entity, and is ineligible as a result of:
(i) A delinquent debt:
(A) Any partners, members, shareholders, administrators, executors,
trustees, or grantors may be individually ineligible if the delinquent
debt occurred as a result of their actions or inactions, as determined
by the insurance provider or FCIC;
(B) All policies in which the ineligible association, estate, trust,
corporation, or other similar entity is the sole insured will terminate,
and it will remain ineligible for crop insurance for the applicable
period specified in Sec. 400.683.
(C) The ineligible association, estate, trust, corporation, or other
similar entity must be reported on any other policy in which it has a
substantial beneficial interest in the applicant or insured, and the
insured share under such policies will be reduced commensurate with the
ineligible entity's substantial beneficial interest in the applicant or
insured for as long as the person remains ineligible in accordance with
Sec. 400.683;
(D) All policies in which a partner, member, shareholder,
administrator, executor, trustee, or grantor determined ineligible
according to Sec. 400.684(b)(4)(i)(A) is the sole insured will
terminate, and the person will remain ineligible for crop insurance for
the applicable period specified in Sec. 400.683; and
(E) The ineligible partner, member, shareholder, administrator,
executor, trustee, or grantor must be reported on any other policy in
which they have a substantial beneficial interest in the applicant or
insured, and the insured share under such policies will be reduced
commensurate with the ineligible person's substantial beneficial
interest in the applicant or insured for as
[[Page 46]]
long as the person remains ineligible in accordance with Sec. 400.683;
or
(ii) Meeting the criteria specified in Sec. 400.679(c), (e) or (f):
(A) All crop insurance policies in which the ineligible association,
estate, trust, corporation, or other similar entity is the sole insured
will terminate, and the ineligible association, estate, trust,
corporation, or other similar entity will remain ineligible for crop
insurance for the applicable period specified in Sec. 400.683; and
(B) The ineligible association, estate, trust, corporation, or other
similar entity must be reported on any other policy in which it has a
substantial beneficial interest in the applicant or insured, and the
insured share under such policies will be reduced commensurate with the
ineligible association, estate, trust, corporation, or other similar
entity's substantial beneficial interest in the applicant or insured for
as long as it remains ineligible in accordance with Sec. 400.683.
(5) If an applicant or insured is a corporation, partnership, joint
venture, trust, corporation, limited liability company, limited
liability partnership, limited partnership, or other similar entity that
was created to conceal the interest of an ineligible person or to evade
the ineligibility determination of a person with a substantial
beneficial interest in the applicant or insured, the policy will be
void.
(6) All crop insurance policies in which the ineligible person is
insured as landlord/tenant will terminate on the next termination date.
The other person(s) on such policy may submit a new application for crop
insurance coverage on or before the applicable sales closing date to
obtain insurance coverage for the crop, if they are otherwise eligible
for such coverage.
(c) The spouse and minor child of an individual insured is
considered to be the same as the individual for purposes of this subpart
and subject to the same ineligibility, except when:
(1) The individual is ineligible due to a conviction of a controlled
substance violation in accordance with Sec. 400.680;
(2) The individual is ineligible as a result of a felony conviction
for knowingly defrauding the United States in connection with any
program administered by USDA;
(3) The individual is ineligible because they are not a United
States citizen, United States non-citizen national, or a qualified
alien;
(4) The individual is ineligible as a result of a disqualification,
debarment, or suspension;
(5) The spouse can prove they are legally separated or otherwise
legally separate under the applicable State dissolution of marriage
laws; or
(6) The minor child has a separate legal interest in such person or
is engaged in a separate farming operation from the individual.
(d) Notwithstanding Sec. 400.684(f), when a policy is voided in
accordance with this subpart:
(1) No indemnities or payments will be paid for the voided policy;
(2) Any indemnities or payments already made for the voided policy
will be declared overpayments and must be repaid in full; and
(3) No premiums will be due and any premium paid will be refunded
except when the policy is void due to a conviction of a controlled
substance violation according to Sec. 400.680, in which case the
insured will still be required to pay 20 percent of the premium the
insured would otherwise be required to pay to offset costs in the
servicing of the policy.
(e) When the insured share of a policy is reduced in accordance with
this subpart:
(1) Any indemnities or payments commensurate with the share reduced
already made will be declared overpayments and must be repaid in full;
and
(2) Any premiums paid by the insured commensurate with the share
reduced will be refunded.
(f) Any insurance written by an insurance provider to any person who
is ineligible under the provisions of this subpart is not eligible for
reinsurance by FCIC. All premium subsidies, expenses, or other payments
made by FCIC for insurance written for any person who is ineligible
under the provisions of this subpart must be immediately refunded to
FCIC. However, with regard to policies that would be void due to a
conviction of a controlled substance violation according to
[[Page 47]]
Sec. 400.680, if the insurance provider follows the procedures of FCIC
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 insurance provider had knowledge of the facts
which would indicate ineligibility on the part of the insured and failed
to act on that knowledge.
Sec. 400.685 Criteria for regaining eligibility.
After the period of ineligibility as specified in Sec. 400.683 has
ended, the ineligible person is eligible to participate in programs
authorized under the Act, provided the person meets all eligibility
requirements.
(a) After a person regains eligibility for crop insurance when their
policy was terminated or voided, the person must submit a new
application for crop insurance coverage on or before the applicable
sales closing date to obtain insurance coverage for the crop. If the
date of regaining eligibility occurs after the applicable sales closing
date for the crop, the person may not participate until the following
year unless that crop policy allows for applications to be accepted
after the sales closing date.
(b) If a person who was determined ineligible according to this
subpart is subsequently determined to be an eligible person for crop
insurance through reinstatement, mediation, arbitration, appeal, or
judicial review, such person's policies will be reinstated effective at
the beginning of the crop year for which the producer was determined
ineligible, and such person will be entitled to all applicable benefits
under such policies, provided the person meets all eligibility
requirements and complies with the terms of the policy.
[79 FR 2079, Jan. 13, 2014, as amended at 79 FR 37161, July 1, 2014]
Sec. 400.686 Administration and maintenance.
(a) Ineligible producer data will be maintained in a system of
records established and maintained by the Risk Management Agency in
accordance with the Privacy Act (5 U.S.C. 552a).
(1) The ITS contains identifying information of the ineligible
person, including but not limited to, name, address, telephone number,
SSN or EIN, reason for ineligibility, and time period of ineligibility.
(2) Information in the ITS may be used by an authorized person. The
information may be furnished to other users as may be appropriate or
required by law or regulation, including but not limited to, FCIC
contracted agencies, other government agencies, credit reporting
agencies, and collection agencies, and in response to judicial orders in
the course of litigation. The individual information may be made
available in the form of various reports and notices.
(3) Supporting documentation regarding the determination of
ineligibility and reinstatement or regaining of eligibility will be
maintained by FCIC, or its contractors, insurance providers, Federal
agencies, and State agencies. This documentation will be maintained and
retained consistent with the electronic information contained within the
ITS.
(b) Information may be entered into the ITS by FCIC employees or
contractors, or insurance providers.
(c) All persons applying for crop insurance policies or with an
existing policy, issued or reinsured by FCIC, will be subject to
validation of their eligibility status against the ITS. Applications,
transfers, or benefits approved and accepted are considered approved or
accepted subject to review of eligibility status in accordance with this
subpart.
(d) Insurance providers, partners, cooperators, and contractors must
check to ensure that the persons with whom they are doing business are
eligible to participate in the programs authorized under the Act.
Insurance providers, partners, cooperators, and contractors must check
the ITS but the ITS may not include all persons ineligible to receive
government benefits, such as persons debarred, disqualified or suspended
from receiving government benefits by an agency other than FCIC.
Insurance providers, partners, cooperators, and contractors must check
other sources that contain ineligible persons, including but not limited
to EPLS, or successor list, provide data on persons
[[Page 48]]
ineligible to participate in programs authorized under the Act.
Subpart V_Submission of Policies, Provisions of Policies, Rates of
Premium, and Non-Reinsured Supplemental Policies
Source: 81 FR 53673, Aug. 12, 2016, unless otherwise noted.
Sec. 400.700 Basis, purpose, and applicability.
This subpart establishes guidelines, the approval process, and
responsibilities of FCIC and the applicant for policies, provisions of
policies, and rates of premium submitted to the Board as authorized
under section 508(h) of the Act. It also provides procedures for
reimbursement of research and development costs and maintenance costs
for concept proposals and approved 508(h) submissions. Guidelines for
submitting concept proposals and the standards for approval and advance
payments are provided in this subpart. This subpart also provides
guidelines and reference to procedures for submitting index-based
weather plans of insurance as authorized under section 523(i) of the
Act. The procedures for submitting non-reinsured supplemental policies
in accordance with the Standard Reinsurance Agreement (SRA) are also
contained within.
Sec. 400.701 Definitions.
508(h) submission. A policy, plan of insurance, provision of a
policy or plan of insurance, or rates of premium provided by an
applicant to FCIC in accordance with the requirements of Sec.
400.705.508(h) submissions as referenced in this subpart do not include
concept proposals, index-based weather plans of insurance, or non-
reinsured supplemental policies.
Act. Subtitle A of the Federal Crop Insurance Act, as amended (7
U.S.C. 1501-1524).
Actuarial documents. The information for the crop or insurance year
that is available for public inspection in an agent's office and
published on RMA's Web site, and that shows available insurance
policies, coverage levels, information needed to determine amounts of
insurance and guarantees, prices, premium rates, premium adjustment
percentages, practices, particular types or varieties of the insurable
crop or agricultural commodity, insurable acreage, and other related
information regarding insurance in the county or state.
Actuarially appropriate. A term used to describe premium rates when
such rates are expected to cover anticipated losses and establish a
reasonable reserve based on valid reasoning, an examination of available
risk data, or knowledge or experience of the expected value of future
costs associated with the risk to be covered. This will be expressed by
a combination of data including, but not limited to liability, premium,
indemnity, and loss ratios based on actual data or simulations
reflecting the risks covered by the policy.
Administrative and operating (A&O) subsidy. The subsidy for the
administrative and operating expenses authorized by the Act and paid by
FCIC on behalf of the producer to the approved insurance provider. Loss
adjustment expense reimbursement paid by FCIC for catastrophic risk
protection (CAT) eligible crop insurance contracts is not considered as
A&O subsidy.
Advance payment. A portion, up to 50 percent, of the estimated
research and development costs, that may be approved by the Board under
section 522(b) of the Act for an approved concept proposal. Upon request
of the submitter the Board may at its sole discretion provide up to an
additional 25 percent advance payment of the estimated research and
development costs after the applicant begins research and development
activities if:
(1) The concept proposal will provide coverage for a region or crop
that is underserved, including specialty crops; and
(2) The submitter is making satisfactory progress towards developing
a viable and marketable 508(h) submission.
Agent. An individual licensed by the State in which an eligible crop
insurance contract is sold and serviced for the reinsurance year, and
who is employed by, or under contract with, the
[[Page 49]]
approved insurance provider, or its designee, to sell and service such
eligible crop insurance contracts.
Applicant. Any person or entity that submits to the Board for
approval a 508(h) submission under section 508(h) of the Act, a concept
proposal under section 522 of the Act, or an index-based weather plan of
insurance under section 523(i) of the Act, who must include the AIP that
has committed to be involved in the development and submission process
and to market, sell and service the policy or plan of insurance.
Approved insurance provider (AIP). A legal entity, including the
Company, which has entered into a reinsurance agreement with FCIC for
the applicable reinsurance year.
Approved procedures. The applicable handbooks, manuals, memoranda,
bulletins or other directives issued by RMA or the Board.
Board. The Board of Directors of FCIC.
Commodity. Has the same meaning as section 518 of the Act.
Complete. A 508(h) submission, concept proposal, or index-based
weather plan of insurance determined by RMA and the Board to contain all
required documentation in accordance with Sec. 400.705 and is of
sufficient quality.
Complexity. Consideration of factors such as originality of policy
materials, underwriting methods, actuarial rating methodology, and the
pricing methodology used in design, construction and all other steps
required for the full development of a policy or plan of insurance.
Concept proposal. A written proposal for a prospective 508(h)
submission, submitted under section 522(b) of the Act for advance
payment of research and development costs, and containing all the
information required in this regulation and the Procedures Handbook
17030--Approved Procedures for Submission of Concept Proposals Seeking
Advance Payment of Research and Development Costs, which can be found on
the RMA Web site at www.rma.usda.gov, such that the Board is able to
determine that, if approved, will be developed into a viable and
marketable policy consistent with Board approved procedures, these
regulations, and section 508(h) of the Act.
Delivery system. The components or parties that make the policy or
plan of insurance available to the public for sale.
Development. The process of composing documentation and procedures,
pricing and rating methodologies, administrative and operating
procedures, systems and software, supporting materials, and
documentation necessary to create and implement a 508(h) submission.
Endorsement. A document that amends or revises an insurance policy
reinsured under the Act in a manner that changes existing, or provides
additional, coverage provided by such policy.
Expert reviewer. Independent persons contracted by the Board who
meet the criteria for underwriters or actuaries that are selected by the
Board to review a concept proposal, 508(h) submission, or index-based
weather plan of insurance and provide advice to the Board regarding the
results of their review.
FCIC. The Federal Crop Insurance Corporation, a wholly owned
government corporation within USDA, whose programs are administered by
RMA.
Index-based weather plan of insurance. A risk management product in
which indemnities are based on a defined weather parameter exceeding or
failing to meet a given threshold during a specified time period. The
weather index is a proxy to measure expected loss of production when the
defined weather parameter does not meet the threshold.
Limited resource producer. Has the same meaning as the term defined
by USDA at: www.lrftool.sc.egov.usda.gov/LRP_Definition.aspx or a
successor Web site.
Livestock commodity. Has the same meaning as the term in section
523(i) of the Act.
Maintenance. For the purposes of this subpart only, the process of
continual support, revision or improvement, as needed, for an approved
508(h) submission, including the periodic review of premium rates and
prices, updating or
[[Page 50]]
modifying the rating or pricing methodologies, updating or modifying
policy terms and conditions, adding a new commodity under similar policy
terms and conditions with similar rating and pricing methodology, or
expanding a plan or policy to additional states and counties, and any
other actions necessary to provide adequate, reasonable and meaningful
protection for producers, ensure actuarial soundness, or to respond to
statutory or regulatory changes. A concept proposal that is similar to a
previously approved 508(h) submission will be considered maintenance for
the similar approved 508(h) submission if submitted by the same person.
Maintenance costs. Specific expenses associated with the maintenance
of an approved 508(h) submission as authorized by Sec. 400.712.
Maintenance period. A period of time that begins on the date the
Board approves the 508(h) submission and ends on the date that is not
more than four reinsurance years after such approval.
Manager. The Manager of FCIC.
Marketable. A determination by the Board, based on a detailed,
written marketability assessment provided in accordance with Sec.
400.705(e), that demonstrates a sufficient number of producers will
purchase the product to justify the resources and expenses required to
offer the product for sale and maintain the product for subsequent
years.
Multiple peril crop insurance (MPCI). Policies reinsured by FCIC
that provide protection against multiple causes of loss that adversely
affect production or revenue, such as to natural disasters, such as
hail, drought, and floods.
National Agricultural Statistics Service (NASS). An agency within
USDA, or its successor agency that collects and analyzes data collected
from producers and other sources.
Non-reinsured supplemental policy (NRS). A policy, endorsement, or
other risk management tool not reinsured by FCIC under the Act, that
offers additional coverage, other than for loss related to hail.
Non-significant changes. Minor changes to the policy or plan of
insurance, such as technical corrections, that do not affect the rating
or pricing methodologies, the amount of subsidy owed, the amount or type
of coverage, FCIC's reinsurance risk, or any other condition that does
not affect liability or the amount of loss to be paid under the policy.
Revisions to approved plans required by statutory or regulatory changes
are included in this category. Changes to the policy that involve
concepts that have been previously sent for expert review are also
included in this category.
Plan of insurance. A class of policies, such as yield, revenue, or
area based that offers a specific type of coverage to one or more
agricultural commodities.
Policy. Has the same meaning as the term in section 1 of the Basic
Provisions (7 CFR 457.8).
Rate of premium. The dollar amount per insured unit, or percentage
rate per dollar of liability, that is needed to pay anticipated losses
and provide a reasonable reserve.
Reinsurance year. The term beginning July 1 and ending on June 30 of
the following year and, for reference purposes, identified by reference
to the year containing June.
Related material. The actuarial documents for the insured commodity
and any underwriting or loss adjustment manuals, handbooks, forms,
instructions or other information needed to administer the policy.
Research. For the purposes of development, the gathering of
information related to: Producer needs and interests for risk
management; the marketability of the policy or plan of insurance;
appropriate policy terms, premium rates, price elections, administrative
and operating procedures, supporting materials, documentation, and the
systems and software necessary to implement a policy or plan of
insurance. The gathering of information to determine whether it is
feasible to expand a policy or plan of insurance to a new area or to
cover a new commodity under the same policy terms and conditions, price,
and premium rates is not considered research.
Research and development costs. Specific expenses incurred and
directly related to the research and development activities of a 508(h)
submission as authorized in Sec. 400.712.
[[Page 51]]
Risk Management Agency (RMA). An agency within USDA that is
authorized to administer the crop insurance program on behalf of FCIC.
Risk subsidy. The portion of the premium paid by FCIC on behalf of
the insured.
Sales closing date. A date contained in the Special Provisions by
which an application must be filed and the last date by which the
insured may change the crop insurance coverage for a crop year.
Secretary. The Secretary of the United States Department of
Agriculture.
Significant change. Any change to the policy or plan of insurance
that may affect the rating and pricing methodologies, the amount of
subsidy owed, the amount of coverage, the interests of producers, FCIC's
reinsurance risk, or any condition that may affect liability or the
amount of loss to be paid under the policy.
Special Provisions. Has the same meaning as the term in section 1 of
the Basic Provisions (7 CFR 457.8).
Specialty crops. Fruits and vegetables, tree nuts, dried fruits, and
horticulture and nursery crops (including floriculture).
Socially disadvantaged producer. Has the same meaning as section
2501(E) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279(e)).
Standard Reinsurance Agreement (SRA). The reinsurance agreement
between FCIC and the approved insurance provider, under which the
approved insurance provider is authorized to sell and service eligible
crop insurance contracts. For the purposes of this subpart, all
references to the SRA will also include any other reinsurance agreements
entered into with FCIC, including the Livestock Price Reinsurance
Agreement.
Submitter. Same meaning as applicant.
Sufficient quality. A determination made by RMA and the Board that
the material presented is clearly written in plain language in
accordance with the Plain Writing Act of 2010 (5 U.S.C. 301),
unambiguous, and is supported by detailed analysis and data so that
expert reviewers, RMA and the Board can understand, comprehend and make
calculations, draw substantiated conclusions or results to determine
whether the 508(h) submission, concept proposal, or index-based weather
plan of insurance meets the standards required for approval.
Targeted producer. Producers who are considered small, socially
disadvantaged, beginning and limited resource or other specific aspects
designated by FCIC for review.
USDA. The United States Department of Agriculture.
User fees. Fees, approved by the Board, that can be charged to
approved insurance provider for use of a policy or plan of insurance
once the period for maintenance has expired that only covers the
expected maintenance costs to be incurred by the submitter.
Viable. A determination by the Board that the concept proposal,
index-based weather plan of insurance, or 508(h) submission is or can be
developed into a policy or plan of insurance that can be implemented by
the delivery system with actuarially appropriate rates in accordance
with Board procedures.
Sec. 400.702 Confidentiality and duration of confidentiality.
(a) Pursuant to section 508(h)(4)(A) of the Act, prior to approval
by the Board, any 508(h) submission submitted to the Board under section
508(h) of the Act, concept proposal submitted under section 522 of the
Act, or index-based weather plan of insurance submitted under section
523(i) of the Act, including any information generated from the 508(h)
submission, concept proposal, or index-based weather plan of insurance,
will be considered confidential commercial or financial information for
purposes of 5 U.S.C. 552(b)(4) and will not be released by FCIC to the
public, unless the applicant authorizes such release in writing.
(b) Once the Board approves a 508(h) submission or an index-based
weather plan of insurance, information provided with the 508(h)
submission (including information from the concept proposal) or the
index-based weather plan of insurance, or generated in the approval
process, may be released to the public, as applicable, including any
mathematical modeling and data, unless it
[[Page 52]]
remains confidential business information under 5 U.S.C. 552(b)(4).
While the expert reviews are releasable once the 508(h) submission or an
index-based weather plan of insurance has been approved, the names of
the expert reviewers may be redacted to prevent any undue pressure on
the expert reviewers.
(c) Any 508(h) submission, concept proposal, or index-based weather
plan of insurance disapproved by the Board will remain confidential
commercial or financial information in accordance with 5 U.S.C.
552(b)(4) (no information related to such 508(h) submission, concept
proposal, or index-based weather plan of insurance will be released by
FCIC unless authorized in writing by the applicant).
(d) All 508(h) submissions, concept proposals, and index-based
weather plans of insurance, will be kept confidential until approved by
the Board and will be given an identification number for tracking
purposes, unless the applicant advises otherwise.
Sec. 400.703 Timing and format.
(a) A 508(h) submission, concept proposal, or index-based weather
plan of insurance may only be provided to FCIC during the first five
business days in January, April, July, and October.
(b) A 508(h) submission, concept proposal, or index-based weather
plan of insurance must be provided as an electronic file to FCIC in
Microsoft Office compatible format, sent to either the address in
paragraph (d)(1) or (d)(2) of this section by the due date in paragraph
(a) of this section. The electronic file must contain a document with a
detailed index that, in sequential order, references the location of the
required information that may either be contained within the document or
in a separate file. The detailed index must clearly identify each
required section and include the page number if the information is
contained in the document or file name if the information is contained
in a separate file; and
(c) Any 508(h) submission, concept proposal, or index-based weather
plan of insurance not provided within the first 5 business days of a
month stated in paragraph (a) of this section will be considered to have
been provided in the next month stated in paragraph (a). For example, if
an applicant provides a 508(h) submission on January 10, it will be
considered to have been received on April 1.
(d) Any 508(h) submission, concept proposal, or index-based weather
plan of insurance must be provided to one of the following addresses,
but not both:
(1) By email to the Deputy Administrator for Product Management (or
successor) at [email protected]; or
(2) By mail on a removable storage device such as a compact disk or
Universal Serial Bus (USB) drive, sent to the Deputy Administrator for
Product Management (or any successor position), USDA/Risk Management
Agency, 2312 East Bannister Road, Kansas City, MO 64131-3011.
(e) In addition to the requirements in paragraph (a) of this
section, a 508(h) submission must be received not later than 240 days
prior to the earliest proposed sales closing date to be considered for
sale in the requested crop year.
(f) To be offered for sale in a crop year, there must be at least
sixty days between the date the policy is ready to be made available for
sale and the earliest sales closing date, unless this requirement is
expressly waived by the Board.
(g) Notwithstanding, paragraph (f) of this section, the Board, or
RMA if authorized by the Board, shall determine when sales can begin for
a 508(h) submission approved by the Board after consideration of the
analysis provided by the applicant AIP of the impact of the proposed
implementation date on the delivery system.
Sec. 400.704 Covered by this subpart.
(a) An applicant may submit to the Board, in accordance with Sec.
400.705, a 508(h) submission that is:
(1) A policy or plan of insurance not currently reinsured by FCIC;
(2) One or more proposed revisions to a policy or plan of insurance
authorized under the Act; or
(3) Rates of premium for any policy or plan of insurance authorized
under the Act.
(b) An applicant must submit to the Board, any significant change to
a previously approved 508(h) submission, including requests for
expansion, prior to
[[Page 53]]
making the change in accordance with Sec. 400.705.
(c) An applicant may submit a concept proposal to the Board prior to
developing a full 508(h) submission, in accordance with this subpart and
the Procedures Handbook 17030--Approved Procedures for Submission of
Concept Proposals Seeking Advance Payment of Research and Development
Costs, which can be found on the RMA Web site at www.rma.usda.gov.
(d) An applicant who is an approved insurance provider may submit an
index-based weather plan of insurance for consideration as a pilot
program in accordance with this subpart and the Procedures Handbook
17050--Approved Procedures for Submission of Index-based Weather Plans
of Insurance, which can be found on the RMA Web site at
www.rma.usda.gov.
(e) An applicant must submit a non-reinsured supplemental policy or
endorsement to RMA in accordance with Sec. 400.713.
Sec. 400.705 Contents for new and changed 508(h) submissions, concept
proposals, and index-based weather plans of insurance.
(a) A complete 508(h) submission must contain the following
material, as applicable, submitted in accordance with Sec. 400.703(b).
A complete 508(h) submission must be a viable and marketable insurance
product that protects the interests of producers, is actuarially
appropriate and ensures program integrity. The material must contain
adequate information as required in this section, that is presented
clearly to ensure the Board and RMA can determine whether RMA and the
delivery system have the resources to implement, administer, and deliver
the 508(h) submission effectively and efficiently. Calculations,
procedures and methodologies must be consistent throughout the
submission and appropriate for the commodity and the risks covered.
(b) The first section will contain general information numbered as
follows (1, 2, 3, etc.), including, as applicable:
(1) The applicant's name(s), address or primary business location,
phone number, and email address;
(2) The type of 508(h) submission (see Sec. 400.704) and a notation
of whether or not the 508(h) submission was approved by the Board as a
concept proposal;
(3) A statement of whether the applicant is requesting:
(i) Reinsurance;
(ii) Risk subsidy;
(iii) A&O subsidy;
(iv) Reimbursement for research and development costs, as applicable
and, if the 508(h) submission was previously submitted as a concept
proposal, the amount of the advance payment for expected research and
development costs; or
(v) Reimbursement for expected maintenance costs, if applicable;
(4) The proposed agricultural commodities to be covered, including
types, varieties, and practices covered by the 508(h) submission;
(5) The crop or insurance year and reinsurance year in which the
508(h) submission is proposed to be available for purchase by producers;
(6) The proposed sales closing date, if applicable, or the sales
window or the earliest date the applicant expects to release the product
to the public;
(7) The proposed states and counties where the plan of insurance is
proposed to be offered;
(8) Any known or anticipated future expansion plans;
(9) Identification, including names, addresses, telephone numbers,
and email addresses, of the person(s) responsible for:
(i) Addressing questions regarding the policy, underwriting rules,
loss adjustment procedures, rate and price methodologies, data
processing and record-keeping requirements, and any other questions that
may arise in implementing or administering the program if it is
approved; and
(ii) Annual reviews to ensure compliance with all requirements of
the Act, this subpart, and any agreements executed between the applicant
and FCIC;
(10) A statement of whether the 508(h) submission will be filed with
the applicable office responsible for regulating insurance in each state
proposed for insurance coverage, and if not, reasons why the 508(h)
submission will not be filed for review; and
[[Page 54]]
(11) A statement of whether the submitter wants the 508(h)
submission to remain confidential.
(c) The second section must contain the benefits of the plan,
including, as applicable, a summary that includes:
(1) How the 508(h) submission offers coverage or other benefits not
currently available from existing public or private programs;
(2) How the 508(h) submission meets public policy goals and
objectives consistent with the Act and other laws, as well as policy
goals supported by USDA and the Federal Government; and
(3) A detailed description of the coverage provided by the 508(h)
submission and its applicability to all producers, including targeted
producers.
(d) Except as provided in this section, the third section must
contain the policy, that is clearly written in plain language in
accordance with the Plain Writing Act of 2010 (5 U.S.C. 301) such that
producers will be able to understand the coverage being offered. The
policy language permits actuaries to form a clear understanding of the
payment contingencies for which they will set rates. The policy language
does not encourage an excessive number of disputes or legal actions
because of misinterpretations.
(1) If the 508(h) submission involves a new insurance policy or plan
of insurance:
(i) All applicable policy provisions; and
(ii) A list of any additional coverage that may be elected by the
insured in conjunction with the 508(h) submission such as applicable
endorsements (include a description of the coverage and how such
coverage may be obtained).
(2) If the 508(h) submission involves a change to a previously
approved policy, plan of insurance, or rates of premium, the proposed
revisions, rationale for each change, data and analysis supporting each
change, the impact of each change, and the impact of all changes in
aggregate.
(e) The fourth section must contain the following:
(1) Potential impacts the 508(h) submission may have on producers
both where the new plan will and will not be available (include both
positive and negative impacts) and if applicable, the reasons why the
508(h) submission is not being proposed for other areas producing the
commodity;
(2) The amount of commodity (acres, head, board feet, etc.), the
amount of production, and the value of each agricultural commodity
proposed to be covered in each proposed county and state;
(3) A reasonable estimate of the expected number of potential
buyers, liability and premium for each proposed county and state, total
expected liability and premium by crop year based on the detailed
assessment of producer interest, including a description of the number
of producers involved in the development of the product, their level of
participation, their type of participation, how many producers have
provided data to assist the submitter in the development of the product,
and a comparison with other similar products, including differences
between the 508(h) submission and the similar products that may make
participation different;
(4) If available, any insurance experience for each year and in each
proposed county and state in which the policy has been previously
offered for sale including an evaluation of the policy's performance
and, if data are available, a comparison with other similar insurance
policies reinsured under the Act;
(5) Market research studies; ``market research'' is the systematic
gathering and interpretation of information about individuals or
organizations using statistical and analytical methods and techniques of
the applied social sciences to gain insight or support decision making,
and that must include:
(i) Focus group results (both positive and negative reactions) where
a discussion is facilitated amongst a group of stakeholders in order to
gain insight into their perceptions, opinions, beliefs, and attitudes
towards a product, which must include the number of focus group sessions
held, where they were held, when they were held, the number of attendees
at each session, the attendees affiliation (producer, agent or other),
and specific feedback from the attendees regarding levels of coverage
the product should include to
[[Page 55]]
cover anticipated risks or perils encountered, the range of costs the
producer is willing to pay, what coverages the producers are
specifically looking for and an assessment of whether that coverage can
be provided at the price the producers are willing to pay, what
shortfall or gap in risk protection the product may address, tolerance
of risk, perceptions of other similar products, policy features
producers may desire, and quality issues;
(ii) Other evidence the proposed 508(h) submission will be
positively received by producers, agents, lending institutions, and
other interested parties, including correspondence from producers,
agents, grower organizations, or other stakeholders expressing the need
for a certain risk management strategy, desired coverage for perils
faced, and willingness to provide critical information for developing a
product;
(iii) An assessment of factors that could negatively or adversely
affect the market and responses from a reasonable representative cross-
section of producers or significant market segment to be affected by the
policy or plan of insurance; and
(iv) For 508(h) submissions proposing products for specialty crops a
consultation report must be provided that includes a summary and
analysis of discussions with groups representing producers of those
agricultural commodities in all major producing areas for commodities to
be served or potentially impacted, either directly or indirectly, and
the expected impact of the proposed 508(h) submission on the general
marketing and production of the crop from both a regional and national
perspective including evidence that the 508(h) submission will not
create adverse market distortions; and
(6) A marketability assessment from the applicant AIP who is part of
the applicant and from at least one other AIP. If a marketability
assessment is not provided by a separate AIP who is not part of the
applicant, the applicant must provide information regarding the names of
the persons and AIPs contacted and the basis for their refusal to
provide the marketability assessment. The marketability assessment will
include:
(i) An assessment of whether producers will buy the proposed 508(h)
submission;
(ii) An assessment of whether AIPs and their agents will want to
sell and service the proposed 508(h) submission;
(iii) An assessment of the risks associated with the proposed 508(h)
submission and its likely effect under the SRA;
(iv) Estimated computer system impacts and costs;
(v) Estimated administrative and training requirement and costs;
(vi) An analysis of the complexity of the product; and
(vii) What, if any, efficiency will be gained or potential effects
on the workload of AIPs or others participating in the program.
(f) The fifth section must contain the information related to the
underwriting and loss adjustment of the 508(h) submission, prepared in
accordance with the RMA-14050 Risk Management Agency External Standards
Handbook located at http://www.rma.usda.gov/handbooks/14000/index.html,
including as applicable:
(1) An underwriting guide that includes:
(i) A table of contents and introduction;
(ii) A section containing abbreviations, acronyms, and definitions;
(iii) Relevant dates, including as applicable, sales closing,
cancellation, termination, earliest planting, final planting, acreage
reporting, premium billing, and end of insurance;
(iv) A section containing insurance contract information
(insurability requirements; producer elections, Crop Provisions not
applicable to Catastrophic Risk Protection, specific unit division
guidelines, etc.);
(v) Detailed rules for determining insurance eligibility, including
all producer reporting requirements;
(vi) All form standards needed for inspections and producer
certifications, plus detailed instructions for their use and completion;
(vii) Step-by-step examples of the data and calculations needed to
establish the insurance guarantee (liability) and premium per acre or
other unit of measure, including worksheets that provide the
calculations in sufficient
[[Page 56]]
detail and in the same order as presented in the policy to allow
verification that the premiums charged for the coverage are consistent
with policy provisions;
(viii) A section containing any special coverage information (i.e.,
replanting, tree replacement or rehabilitation, prevented planting,
etc.), as applicable; and
(ix) A section containing all applicable reference material (i.e.,
minimum sample requirements, row width factors, etc.).
(2) Any statements to be included in the actuarial documents
including any intended Special Provisions statements that may change any
underlying policy terms or conditions; and
(3) The loss adjustment standards handbook for the policy or plan of
insurance that includes:
(i) A table of contents and introduction;
(ii) A section containing abbreviations, acronyms, and definitions;
(iii) A section containing insurance contract information
(insurability requirements; Crop Provisions not applicable to
catastrophic risk protection; specific unit division guidelines, if
applicable; notice of damage or loss provisions; quality adjustment
provisions; etc.);
(iv) A detailed description of the causes of loss covered by the
policy or plan of insurance and any causes of loss excluded;
(v) A section that thoroughly explains appraisal methods, if
applicable;
(vi) Illustrative samples of all the applicable forms needed for
insuring and adjusting losses in regards to the 508(h) submission in a
format compatible with the Document and Supplemental Standards Handbook
(FCIC 24040) located at http://www.rma.usda.gov/handbooks/24000/
index.html, plus detailed instructions for their use and completion;
(vii) Instructions, step-by-step examples of calculations used to
determine indemnity payments for all probable situations where a partial
or total loss may occur, and loss adjustment procedures that are
necessary to establish the amounts of coverage and loss;
(viii) A section containing any special coverage information (i.e.,
replanting, tree replacement or rehabilitation, prevented planting,
etc.), as applicable; and
(ix) A section containing all applicable reference material (i.e.,
minimum sample requirements, row width factors, etc.).
(g) The sixth section must contain information related to prices and
rates of premium, including, as applicable:
(1) A detailed description of the premium rating methodology
proposed to be used and the basis for selection of the rating
methodology;
(2) A list of all assumptions made in the premium rating and
commodity pricing methodologies, and the basis for these assumptions;
(3) A detailed description of the pricing and rating methodologies,
including:
(i) Supporting documentation needed for the rate methodology;
(ii) All mathematical formulas and equations;
(iii) Data and data sources used in determining rates and prices and
a detailed assessment of the data (including availability, access, long
term reliability, and the percentage of the total commercial production
that the available data represents) and how it supports the proposed
rates and prices;
(iv) A detailed explanation of how the rates account for each of the
risks covered by the policy; and
(v) A detailed explanation of how the prices are applicable to the
policy;
(4) An example of both a rate calculation and a price calculation;
(5) A discussion of the applicant's objective evaluation of the
accuracy of the data, the short and long term availability of the data,
and how the data will be obtained (if the data source is confidential or
proprietary explain the cost of obtaining the data); and
(6) An analysis of the results of simulations or modeling showing
the performance of proposed rates and commodity prices, as applicable,
based on one or more of the following (Such simulations must use all
years of experience available to the applicant and must reflect both
partial losses and total losses):
(i) A recalculation of total premium and losses compared to a
similar or
[[Page 57]]
comparable insurance plan offered under the authority of the Act with
modifications, as needed, to represent the components of the 508(h)
submission;
(ii) A simulation that shows liability, premium, indemnity, and loss
ratios for the proposed insurance product based on the probability
distributions used to develop the rates and commodity prices, as
applicable, including sensitivity tests that demonstrate price or yield
extremes, and the impact of inappropriate assumptions; or
(iii) Any other comparable simulation that provides results
indicating both aggregate and individual performance of the 508(h)
submission including expected liability, premium, indemnity, and loss
ratios for the proposed insurance product, under various scenarios
depicting good and poor actuarial experience.
(h) The seventh section must contain the following:
(1) A statement certifying that the submitter and any approved
insurance provider or its affiliates will not solicit or market the
508(h) submission until after all policy materials are released to the
public by RMA, unless otherwise specified by the Board;
(2) An explanation of any provision of the policy not authorized
under the Act and identification of the portion of the rate of premium
due to these provisions; and
(3) Agent and loss adjuster training plans, except for 508(h)
submissions proposing only changes to rates of premium to an existing
policy.
(i) The eighth section must contain a statement from the submitter
that, if the 508(h) submission is approved, the submitter will work with
RMA and its computer programmers as needed to assure an effective and
efficient implementation process. This section must also contain a
description of any expected implementation or administration issues. The
applicant must consult with RMA prior to providing the 508(h) submission
to determine whether or not the 508(h) submission can be effectively and
efficiently implemented and administered through the current information
technology systems and that all reporting requirements, terminology, and
dates conform to USDA standards and initiatives.
(1) If FCIC approves the 508(h) submission and determines that its
information technology systems have the capacity to implement and
administer the 508(h) submission, the applicant must provide a document
detailing acceptable computer processing requirements consistent with
those used by RMA as shown on the RMA Web site in the Appendix III/M-13
Handbook. This information details the acceptable computer processing
requirements in a manner consistent with that used by RMA to facilitate
the acceptance of producer applications and related data.
(2) Any computer systems, requirements, code and software must be
consistent with that used by RMA and comply with the standards
established in Appendix III/M-13 Handbook, or any successor document, of
the SRA or other reinsurance agreement as specified by FCIC.
(3) These requirements are available from the USDA/Risk Management
Agency, 2312 East Bannister Road, Kansas City, MO 64131-3011, or on
RMA's Web site at http://www.rma.usda.gov/data/m13, or a successor Web
site.
(j) The ninth section submitted on separate pages and in accordance
with Sec. 400.712 and any applicable Board procedures must specify:
(1) The following amounts, which may be limited to the amount
originally estimated in the submission, unless the applicant can justify
the additional costs:
(i) For new products, the amount received for an advance payment,
and a detailed estimate of the total amount of reimbursement for
research and development costs; or
(ii) For products that are within the maintenance period, an
estimate for maintenance costs for the year that the 508(h) submission
will be effective; and
(2) A detailed estimate of maintenance costs for future years of the
maintenance period and the basis that such maintenance costs will be
incurred, including, but not limited to:
(i) Any anticipated expansion;
(ii) Anticipated changes or updates to policy materials;
[[Page 58]]
(iii) The generation of premium rates;
(iv) The determination of prices; and
(v) Any other costs that the applicant anticipates will be requested
for reimbursement of maintenance costs or expenses;
(k) The tenth section must contain executed (signed) certification
statements in accordance with the following:
(1) ``{Applicant's Name{time} hereby claim that the basis and
amounts set forth in this section and Sec. 400.712 are correct and due
and owing to {Applicant's Name{time} by FCIC under the Federal Crop
Insurance Act''; and
(2) ``{Applicant Name{time} understands that, in addition to
criminal fines and imprisonment, the 508(h) submission of false or
fraudulent statements or claims may result in civil and administrative
sanctions.''
(l) The contents required for concept proposals are found in the
Procedures Handbook 17030--Approved Procedures for Submission of Concept
Proposals Seeking Advance Payment of Research and Development Costs. In
addition, the proposal must provide a detailed description of why the
concept provides insurance:
(1) In a significantly improved form;
(2) To a crop or region not traditionally served by the Federal crop
insurance program; or
(3) In a form that addresses a recognized flaw or problem in the
program;
(m) The contents required for index-based weather plans of insurance
are found in the Procedures Handbook 17050--Approved Procedures for
Submission of Index-based Weather Plans of Insurance. In accordance with
the Board approved procedures, the approved insurance provider that
submits the index-based weather plan of insurance must provide evidence
they have:
(1) Adequate experience in underwriting and administering policies
or plans of insurance that are comparable to the proposed policy of plan
of insurance;
(2) Sufficient assets or reinsurance to satisfy the underwriting
obligations of the approved insurance provider, and a sufficient
insurance credit rating from an appropriate credit rating bureau; and
(3) Applicable authority and approval from each State in which the
approved insurance provider intends to sell the insurance product.
Sec. 400.706 Review.
(a) Prior to providing a 508(h) submission, concept proposal, or
index-based weather plan of insurance to the Board, RMA will:
(1) Review the 508(h) submission, concept proposal, or index-based
weather plan of insurance to determine if all required documentation is
included in accordance with Sec. 400.705;
(2) Review the 508(h) submission, concept proposal, or index-based
weather plan of insurance to determine whether it is of sufficient
quality to conduct a meaningful review such that the Board will be able
to make an informed decision regarding approval or disapproval;
(3) In accordance with section 508(h)(1)(B) of the Act, at its sole
discretion, determine if the policy or plan of insurance:
(i) Will likely result in a viable and marketable policy;
(ii) Will provide crop insurance coverage in a significantly
improved form; and
(iii) Adequately protect the interests of producers.
(4) RMA may reject and return any 508(h) submission, concept
proposal, or index based weather plan of insurance that:
(i) Is not complete;
(ii) Is unlikely to result in a viable and marketable policy;
(iii) Will not provide crop insurance coverage in a significantly
improved form; and
(iv) Will not adequately protect the interests of producers.
(5) Except as provided in paragraph (a)(4) of this section, forward
the 508(h) submission, concept proposal, or index-based weather plan of
insurance, and the results of RMA's initial review, to the Board for its
determination of completeness and quality.
(b) Upon the Board's receipt of a 508(h) submission, the Board will:
(1) Determine if the 508(h) submission is complete (the date the
Board votes to contract with expert reviewers is the date the 508(h)
submission is
[[Page 59]]
deemed to be complete for the start of the 120 day time-period for
approval);
(2) Unless the 508(h) submission makes non-significant changes to a
policy or plan of insurance, or involves policy provisions that have
already undergone expert review, forward the complete 508(h) submission
to at least five expert reviewers to review the 508(h) submission:
(i) Of the five expert reviewers, no more than one will be employed
by the Federal Government, and none may be employed by any approved
insurance provider or their representative; and
(ii) The expert reviewers will each provide their individual
assessment of whether the 508(h) submission:
(A) Protects the interests of agricultural producers and taxpayers;
(B) Is actuarially appropriate;
(C) Follows recognized insurance principles;
(D) Meets the requirements of the Act;
(E) Does not contain excessive risks (risks may be considered
excessive if they encourage adverse selection, moral hazard, or if
premium rates cannot be adequately or appropriately determined);
(F) Follows sound, reasonable, and appropriate underwriting
principles;
(G) Will provide a new kind of coverage that is likely to be viable
and marketable;
(H) Will provide crop insurance coverage in a manner that addresses
a clear and identifiable flaw or problem in an existing policy;
(I) Will provide a new or improved coverage for a commodity that
previously had no available crop insurance, or has demonstrated a low
level of participation or coverage level under existing coverage;
(J) May have a significant adverse impact on the crop insurance
delivery system;
(K) The marketability assessment reasonably demonstrates the product
would be viable and marketable (if the applicant cannot obtain a
marketability assessment by another AIP, the Board shall presume that
the submission is unmarketable);
(L) If applicable, contains a consultation report that provides
evidence the 508(h) submission will not create adverse market
distortions; and
(M) Meets any other criteria the Board may deem necessary;
(3) Return to the applicant any 508(h) submission the Board
determines is not complete, along with an explanation of the reason for
the determination and:
(i) With respect to 508(h) submissions developed from approved
concept proposals, the provisions in Sec. 400.712(c)(1) shall apply;
and
(ii) Except for 508(h) submissions developed from concept proposals,
if the 508(h) submission is resubmitted at a later date, it will be
considered a new 508(h) submission solely for the purpose of determining
the amount of time that the Board must take action; and
(4) For complete 508(h) submissions:
(i) Request review by RMA to provide its assessment of whether the
508(h) submission:
(A) Meets the criteria listed in subsections (b)(2)(ii)(A) through
(M);
(B) Is consistent with USDA's public policy goals;
(C) Does not increase or shift risk to any other FCIC reinsured
policy;
(D) Can be implemented, administered, and delivered effectively and
efficiently using RMA's information technology and delivery systems; and
(E) Contains requested amounts of government reinsurance, risk
subsidy, and administrative and operating subsidies that are reasonable
and appropriate for the type of coverage provided by the policy; and
(ii) Seek review from the Office of the General Counsel (OGC) to
determine if the 508(h) submission conforms to the requirements of the
Act and all applicable Federal statutes and regulations.
(c) Upon the Board's receipt of a concept proposal, the Board will:
(1) Determine whether the concept proposal is complete (the date the
Board votes to contract with expert reviewers is the date the concept
proposal is deemed to be a complete concept proposal for the start of
the 120 day time-period for approval);
(2) If complete, forward the concept proposal to at least two expert
reviewers with underwriting or actuarial experience to review the
concept in accordance with section 522(b)(2) of the
[[Page 60]]
Act, this subpart, and Procedures Handbook 17030--Approved Procedures
for Submission of Concept Proposals Seeking Advance Payment of Research
and Development Costs;
(3) Return to the applicant any concept proposal the Board
determines is not complete, along with an explanation of the reason for
the determination (If the concept proposal is resubmitted at a later
date, it will be considered a new concept proposal solely for the
purposes of determining the amount of time that the Board must take
action);
(4) Determine whether the concept proposal, if developed into a
policy or plan of insurance would, in good faith, would meet the
requirement of being likely to result in a viable and marketable policy
consistent with section 508(h) (if the applicant cannot obtain a
marketability assessment by another AIP, the Board shall presume that
the submission is unmarketable);
(5) At its sole discretion, determine whether the concept proposal,
if developed into a policy or plan of insurance would meet the
requirement of providing coverage:
(i) In a significantly improved form;
(ii) To a crop or region not traditionally served by the Federal
crop insurance program; or
(iii) In a form that addresses a recognized flaw or problem in the
program;
(6) Determine whether the proposed budget and timetable are
reasonable;
(7) Determine whether the concept proposal meets all other
requirements imposed by the Board or as otherwise specified in
Procedures Handbook 17030--Approved Procedures for Submission of Concept
Proposals Seeking Advance Payment of Research and Development Costs; and
(8) Provide a date by which the 508(h) submission must be provided
in consultation with the applicant.
(d) Upon the Board's receipt of an index-based weather plan of
insurance, the Board will:
(1) Determine whether the index-based weather plan of insurance is
complete (the date the Board votes to contract with expert reviewers is
the date the index-based weather plan of insurance is deemed to be
complete for the start of the 120-day time-period for approval);
(2) If determined to be complete, contract with five expert
reviewers and review the index-based weather plan of insurance in
accordance with section 523(i) of the Act, this subpart, and Procedures
Handbook 17050--Approved Procedures for Submission of Index-based
Weather Plans of Insurance;
(3) Return to the applicant any index-based weather plan of
insurance the Board determines is not complete, along with an
explanation of the reason for the determination (if the index-based
weather plan of insurance is resubmitted at a later date, it will be
considered a new index-based weather plan of insurance solely for the
purposes of determining the amount of time that the Board must take
action); and
(4) Give the highest priority for approval of index-based weather
plans of insurance that provide a new kind of coverage for specialty
crops and livestock commodities that previously had no available crop
insurance, or have demonstrated a low level of participation under
existing coverage.
(e) All comments and evaluations will be provided to the Board by a
date determined by the Board to allow the Board adequate time for
review.
(f) The Board will consider all comments, evaluations, and
recommendations in its review process. Prior to making a decision, the
Board may request additional information from RMA, OGC, the expert
reviewers, or the applicant.
(g) In considering whether to approve policies or plans of insurance
and when such policies or plans of insurance will be offered for sale,
the Board will:
(1) First, consider policies or plans of insurance that address
underserved commodities, including commodities for which there is no
insurance;
(2) Second, consider existing policies or plans of insurance for
which there is inadequate coverage or there exists low levels of
participation; and
(3) Last, consider all policies or plans of insurance submitted to
the Board that do not meet the criteria described in paragraph (g)(1) or
(2) of this section.
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(h) At any time an applicant may request a time delay after the
508(h) submission, concept proposal, or index-based weather plan of
insurance has been placed on the Board meeting agenda. The Board is not
required to agree to such an extension.
(1) With respect to 508(h) submissions from concept proposals
approved by the Board for advanced payment, the applicant must provide
good cause why consideration should be delayed.
(2) Any requested time delay is not limited in the length of time
unless a date is set by the Board by which all revisions to the 508(h)
submission, concept proposal or index-based weather plan of insurance
must be made. However, delays may make implementation of the 508(h)
submission for the targeted crop year impractical or impossible as
determined by the Board.
(3) The time period during which the Board will make a decision to
approve or disapprove the 508(h) submission, concept proposal or index-
based weather plan of insurance shall be extended commensurately with
any time delay requested by the applicant.
(i) The applicant may withdraw a 508(h) submission, concept
proposal, index-based weather plan of insurance, or a portion of a
508(h) submission or concept proposal, at any time by presenting a
request to the Board. A withdrawn 508(h) submission, concept proposal or
index-based weather plan of insurance that is resubmitted will be deemed
a new 508(h) submission, concept proposal, or index-based weather plan
of insurance solely for the purposes of determining the amount of time
that the Board must take action.
(j) The Board will render a decision on a 508(h) submission or
index-based weather plan of insurance, with or without revision or give
notice of intent to disapprove within 90 days after the date the 508(h)
submission or index-based weather plan of insurance is considered
complete by the Board, unless the Board agrees to a time delay in
accordance with paragraph (h) of this section.
(k) The Board may provide a notice of intent to disapprove a 508(h)
submission if it determines:
(1) The interests of producers and taxpayers are not protected,
including but not limited to:
(i) The 508(h) submission does not provide adequate coverage or
treats producers disparately;
(ii) The applicant has not presented sufficient documentation that
the 508(h) submission will provide a new kind of coverage that is likely
to be viable and marketable (if the applicant cannot obtain a
marketability assessment by another AIP, the Board shall presume that
the submission is unmarketable);
(iii) Coverage would be similar to another policy or plan of
insurance that has not demonstrated a low level of participation or does
not contain a clear and identifiable flaw, and the producer would not
significantly benefit from the 508(h) submission;
(iv) The 508(h) submission may create adverse market distortions or
adversely impact other crops or agricultural commodities if marketed;
(v) The 508(h) submission will have a significant adverse impact on
the private delivery system;
(vi) The 508(h) submission cannot be implemented, administered, and
delivered effectively and efficiently using RMA's information technology
and delivery systems;
(vii) The 508(h) submission contains flaws that may encourage
adverse selection or moral hazard; or
(viii) The 508(h) submission contains vulnerabilities that allow
indemnities to exceed the value of the crop;
(2) The premium rates are not actuarially appropriate;
(3) The 508(h) submission does not conform to sound insurance and
underwriting principles;
(4) The risks associated with the 508(h) submission are excessive or
it increases or shifts risk to another reinsured policy;
(5) The 508(h) submission does not meet the requirements of the Act;
or
(6) The 90-day deadline under subsection (j) will expire before the
Board has time to make an informed decision to approve or disapprove the
508(h) submission.
(l) The Board may disapprove a concept proposal if it determines:
[[Page 62]]
(1) The concept, in good faith, will not likely result in a viable
and marketable policy consistent with section 508(h);
(2) At the sole discretion of the Board, the concept, if developed
into a policy and approved by the Board, would not provide crop
insurance coverage:
(i) In a significantly improved form;
(ii) To a crop or region not traditionally served by the Federal
crop insurance program; or
(iii) In a form that addresses a recognized flaw or problem in the
program;
(3) The proposed budget and timetable are not reasonable, as
determined by the Board; or
(4) The concept proposal fails to meet one or more requirements
established by the Board.
(m) The Board shall provide a notice of intent to disapprove an
index-based weather plan of insurance if it determines there is not:
(1) Adequate experience in underwriting and administering policies
or plans of insurance that are comparable to the proposed policy or plan
of insurance;
(2) Sufficient assets or reinsurance to satisfy the underwriting
obligations of the approved insurance provider, and possess a sufficient
insurance credit rating from an appropriate credit rating bureau, in
accordance with Board procedures; and
(3) Applicable authority and approval from each State in which the
approved insurance provider intends to sell the insurance product.
(n) Unless otherwise provided for in this section:
(1) If the Board intends to disapprove a 508(h) submission or index-
based weather plan of insurance, the Board will provide the applicant
with a written explanation outlining the basis for the intent to
disapprove; and
(2) Any approval or disapproval of a 508(h) submission, concept
proposal, or index-based weather plan of insurance must be made by the
Board in writing not later than 120 days after the Board has determined
it to be complete.
(o) If a notice of intent to disapprove all or part of a 508(h)
submission or index-based weather plan of insurance has been provided by
the Board, the applicant must provide written notice to the Board not
later than 30 days after the Board provides such notice if the 508(h)
submission or index-based weather plan of insurance will be modified. If
the applicant does not respond within the 30-day period, the Board will
send the applicant a letter stating the 508(h) submission or index-based
weather plan of insurance is disapproved.
(p) If the applicant elects to modify the 508(h) submission or
index-based weather plan of insurance:
(1) The applicant must advise the Board of a date by which the
modified 508(h) submission or index-based weather plan of insurance will
be presented to the Board; and
(2) The remainder of the time left between the Board's notice of
intent to disapprove and the expiration of the 120-day deadline is
paused until the modified 508(h) submission or index-based weather plan
of insurance is received by the Board.
(3) The Board will disapprove a modified 508(h) submission or index-
based weather plan of insurance if the:
(i) Causes for disapproval stated by the Board in its notification
of intent to disapprove the 508(h) submission or index-based weather
plan of insurance are not satisfactorily addressed;
(ii) Board determines there is insufficient time for the Board to
finish its review before the expiration of the 120-day deadline for
disapproval of a 508(h) submission or index-based weather plan of
insurance, unless the applicant grants the Board an extension of time to
adequately consider the modified 508(h) submission or index-based
weather plan of insurance (If an extension of time is agreed upon, the
time period during which the Board must act on the modified 508(h)
submission or index-based weather plan of insurance will paused during
the extension); or
(iii) Applicant does not present a modification of the 508(h)
submission or index-based weather plan of insurance to the Board on the
date the applicant specified and the applicant does not request an
additional time delay.
(q) If the Board fails to render a decision on a new 508(h)
submission or index-based weather plan of insurance within the time
periods specified in paragraph (j) or (n) of this section,
[[Page 63]]
such 508(h) submission or index-based weather plan of insurance will be
deemed approved by the Board for the initial reinsurance year designated
for the 508(h) submission or index-based weather plan of insurance. The
Board must approve the 508(h) submission or index-based weather plan of
insurance for it to be available for any subsequent reinsurance year.
Sec. 400.707 Presentation to the Board for approval or disapproval.
(a) The Board will inform the applicant of the date, time, and place
of the Board meeting.
(b) The applicant will be given the opportunity and is encouraged to
present the 508(h) submission, concept proposal, or index-based weather
plan of insurance to the Board in person. The applicant must confirm in
writing, email or fax whether the applicant will present in person to
the Board.
(c) If the applicant elects not to present the 508(h) submission,
concept proposal, or index-based weather plan of insurance to the Board,
the Board will make its decision based on the information provided in
accordance with Sec. 400.705 and Sec. 400.706.
Sec. 400.708 Post approval.
(a) After a 508(h) submission is approved by the Board, and prior to
it being made available for sale to producers:
(1) The following must be executed, as applicable:
(i) If required by FCIC, an agreement between the applicant and FCIC
that specifies:
(A) In addition to the requirements in Sec. 400.709,
responsibilities of each with respect to the implementation, delivery
and maintenance of the 508(h) submission; and
(B) The required timeframes for submitting any information and
documentation needed to administer the approved 508(h) submission;
(ii) A reinsurance agreement if the approved submission does not
meet, or is not expected to perform in a financial manner consistent
with the terms and conditions of the Standard Reinsurance Agreement or
any other existing reinsurance agreement offered by FCIC in effect for
the crop year, and that considers the interests of all participating
AIPs; and
(iii) A training package to facilitate implementation of the
approved 508(h) submission;
(2) The Board may limit the availability of coverage, for any policy
or plan of insurance developed under the authority of the Act and this
regulation, on any farm or in any county or area;
(3) A 508(h) submission approved by the Board under this subpart
will be made available to all approved insurance providers under the
same reinsurance, subsidy, and terms and conditions as received by the
applicant;
(4) Any solicitation, sales, marketing, or advertising of the
approved 508(h) submission by the applicant before FCIC has made the
policy materials available to all interested parties through its
official issuance system will result in the denial of reinsurance, risk
subsidy, and A&O subsidy for those policies affected; and
(5) The property rights to the 508(h) submission will automatically
transfer to FCIC if the applicant elects not to maintain the 508(h)
submission under Sec. 400.712(a)(3) or fails to notify FCIC of its
decision to elect or not elect maintenance of the program under Sec.
400.712(l).
(b) Requirements and procedures for approved index-based weather
plans of insurance are contained in Procedures Handbook 17050--Approved
Procedures for Submission of Index-based Weather Plans of Insurance. In
accordance with the Board approved procedures, index-based weather plans
of insurance are not eligible for federal reinsurance, but may be
approved for risk subsidy and A&O subsidy.
Sec. 400.709 Roles and responsibilities.
(a) With respect to the applicant:
(1) The applicant is responsible for:
(i) Preparing and ensuring that all policy documents, rates of
premium, prices, and supporting materials, including actuarial
documents, are submitted by the deadline specified by FCIC, in the form
approved by the Board, and are in compliance with section 508 of the
Rehabilitation Act;
(ii) Annually updating and providing maintenance changes no later
than 180
[[Page 64]]
days prior to the earliest contract change date for the commodity in all
counties or states in which the policy or plan of insurance is sold;
(iii) Timely addressing questions, problems or clarifications in
regard to a policy or plan of insurance (all such resolutions for
approved 508(h) submissions will be communicated to all approved
insurance providers through FCIC's official issuance system); and
(iv) If requested by the Board, providing an annual review of the
policy's performance, in writing to the Board, 180 days prior to the
contract change date for the plan of insurance (The first annual report
will be submitted one full year after implementation of an approved
policy or plan of insurance, as agreed to by the submitter and RMA);
(2) Only the applicant may make changes to the policy, plan of
insurance, or rates of premium approved by the Board:
(i) Any changes to approved 508(h) submissions, both non-significant
and significant, must be submitted to FCIC in the form of a 508(h)
submission for review in accordance with this subpart no later than 180
days prior to the earliest contract change date for the commodity in all
counties or states in which the policy or plan of insurance is sold; and
(ii) Significant changes will be considered a new 508(h) submission;
(3) Except as provided in paragraph (a)(4) of this section, the
applicant is solely liable for any mistakes, errors, or flaws in the
submitted policy, plan of insurance, their related materials, or the
rates of premium that have been approved by the Board unless, or until,
the policy or plan of insurance is transferred to FCIC in accordance
with Sec. 400.712(l) (the applicant remains liable for any mistakes,
errors, or flaws that occurred prior to transfer of the policy or plan
of insurance to FCIC);
(4) If the mistake, error, or flaw in the policy, plan of insurance,
their related materials, or the rates of premium is discovered more than
45 days prior to the cancellation or termination date for the policy or
plan of insurance, the applicant may request in writing that FCIC
withdraw the approved policy, plan of insurance, or rates of premium:
(i) Such request must state the discovered mistake, error, or flaw
in the policy, plan of insurance, or rates of premium, and the expected
impact on the program; and
(ii) For all timely received requests for withdrawal, no liability
will attach to such policies, plans of insurance, or rates of premium
that have been withdrawn and no producer, approved insurance provider,
or any other person will have a right of action against the applicant;
(5) Notwithstanding the policy provisions regarding cancellation,
any policy, plan of insurance, or rates of premium that have been
withdrawn by the applicant, in accordance with paragraph (a)(4) of this
section is deemed canceled and applications are deemed not accepted as
of the date that FCIC publishes the notice of withdrawal on its Web site
at www.rma.usda.gov.
(i) Approved insurance providers will be notified in writing by FCIC
that the policy, plan of insurance, or premium rates have been
withdrawn; and
(ii) Producers will have the option of selecting any other policy or
plan of insurance authorized under the Act that is available in the area
by the sales closing date for such policy or plan of insurance; and
(6) Failure of the applicant to perform all of the applicant's
responsibilities may result in the withdrawal of approval for the policy
or plan of insurance.
(b) With respect to FCIC:
(1) FCIC is responsible for:
(i) Conducting a review in accordance with Sec. 400.706 and
providing its recommendations to the Board;
(ii) With respect to 508(h) submissions:
(A) Ensuring that all approved insurance providers receive the
approved policy or plan of insurance, and related material, for sale to
producers in a timely manner (All such information shall be communicated
to all approved insurance providers through FCIC's official issuance
system);
(B) As applicable, ensuring that approved insurance providers
receive reinsurance under the same terms and conditions as the applicant
(Approved insurance providers should contact FCIC to obtain and execute
a copy of
[[Page 65]]
the reinsurance agreement) if required; and
(C) Reviewing the activities of approved insurance providers,
agents, loss adjusters, and producers to ensure that they are in
accordance with the terms of the policy or plan of insurance, the
reinsurance agreement, and all applicable procedures;
(2) FCIC will not be liable for any mistakes, errors, or flaws in
the policy, plan of insurance, their related materials, or the rates of
premium and no cause of action may be taken against FCIC as a result of
such mistake, error, or flaw in a 508(h) submission or index-based
weather plan of insurance submitted under this subpart;
(3) If at any time prior to the cancellation date, FCIC discovers
there is a mistake, error, or flaw in the policy, plan of insurance,
their related materials, or the rates of premium, or any other reason
for withdrawal of approval contained in Sec. 400.706(k) exists, FCIC
will withdraw reinsurance for such policy or plan of insurance to all
AIPs for the subsequent crop year (If reinsurance is denied, a written
notice will be provided on RMA's Web site at www.rma.usda.gov);
(4) If maintenance of the policy or plan of insurance is transferred
to FCIC in accordance with Sec. 400.712(l), FCIC will assume liability
for the policy or plan of insurance for any mistake, error, or flaw that
occur after the date the policy is transferred.
(c) If approval by the Board is withdrawn or reinsurance is denied
for any 508(h) submission, RMA will provide such notice on its Web site
and the approved insurance provider must cancel the policy or plan of
insurance in accordance with its terms.
Sec. 400.710 Preemption and premium taxation.
A policy or plan of insurance that is approved by the Board for FCIC
reinsurance is preempted from state and local taxation. This preemption
does not apply to index-based weather plans of insurance approved for
premium subsidy or A&O subsidy under this part.
Sec. 400.711 Right of review, modification, and the withdrawal of approval.
(a) At any time after approval, the Board may review any policy,
plan of insurance, related material, or rates of premium approved under
this subpart, including index-based weather plans of insurance and
request additional information to determine whether the policy, plan of
insurance, related material, or rates of premium comply with the
requirements of this subpart.
(b) The Board will notify the applicant of any problem or issue that
may arise and allow the applicant an opportunity to make any needed
change. If the contract change date has passed, the applicant will be
liable for such problems or issues for the crop year in accordance with
Sec. 400.709 until the policy may be changed.
(c) The Board may withdraw approval for the applicable policy, plan
of insurance or rate of premium, including index-based weather plans of
insurance, as applicable, if:
(1) The applicant fails to perform the responsibilities stated under
Sec. 400.709(a);
(2) The applicant does not timely and satisfactorily provide
materials or resolve any issue to the Board's satisfaction so that
necessary changes can be made prior to the earliest contract change
date;
(3) The Board determines the applicable policy, plan of insurance or
rate of premium, including index-based weather plans of insurance is not
in conformance with the Act, these regulations or the applicable
procedures;
(4) The policy, plan of insurance, or rates of premium are not
sufficiently marketable according to the applicant's estimate or fails
to perform sufficiently as determined by the Board; or
(5) The interest of producers or tax payers is not protected or the
continuation of the program raises questions or issues of program
integrity.
[[Page 66]]
Sec. 400.712 Research and development reimbursement, maintenance
reimbursement, advance payments for concept proposals, and user fees.
(a) For 508(h) submissions approved by the Board for reinsurance
under section 508(h) of the Act:
(1) The 508(h) submission may be eligible for a one-time payment of
research and development costs and reimbursement of maintenance costs
for up to four reinsurance years, as determined by the Board;
(2) Reimbursement of research and development costs or maintenance
costs will be considered as payment in full by FCIC for the 508(h)
submission, and no additional amounts will be owed to the applicant if
the 508(h) submission is transferred to FCIC in accordance with
paragraph (l) of this section; and
(3) If the applicant elects at any time not to continue to maintain
the 508(h) submission, it will automatically become the property of FCIC
and the applicant will no longer have any property rights to the 508(h)
submission and will not receive any user fees for the plan of insurance;
(b) The Board approved procedures and time-frames must be followed,
or research and development costs and maintenance costs may not be
reimbursed.
(1) After a 508(h) submission has been approved by the Board for
reinsurance, to be considered for reimbursement of:
(i) Research and development costs, the applicant must submit the
total amount requested and all supporting documentation to FCIC by
electronic method or by hard copy and such information must be received
by FCIC on or before August 1 immediately following the date the 508(h)
submission was released to approved insurance providers through FCIC's
issuance system; or
(ii) Maintenance costs, the applicant must submit the total amount
requested and all supporting documentation to FCIC by electronic method
or by hard copy and such information must be received by FCIC on or
before August 1 of each year of the maintenance period.
(2) Given the limitation on funds, regardless of when the request is
received, no payment will be made prior to September 15 of the
applicable fiscal year.
(c) Applicants submitting a concept proposal may request an advance
payment of up to 50 percent of the projected total research and
development costs, and after the applicant has begun research and
development activities, the Board may, at its sole discretion, provide
up to an additional 25 percent advance payment of the estimated research
and development costs, if the requirements in the definition of advance
payment are met and the additional advance payment is requested in
accordance with Procedures Handbook 17030--Approved Procedures for
Submission of Concept Proposals Seeking Advance Payment of Research and
Development Costs.
(1) If a concept proposal is approved by the Board for advance
payment, the applicant is responsible for independently developing a
508(h) submission that is complete as specified in this subpart by the
deadline set by the Board.
(i) If an applicant fails to fulfill the obligation to provide a
508(h) submission that is complete by the deadline set by the Board, the
Board shall provide a notice of non-compliance to the applicant and
allow not less than 30 days for the applicant to respond;
(ii) If the applicant fails to respond, to the satisfaction of the
Board, with just cause as to why a 508(h) submission that is complete
was not provided by the deadline set by the Board, the applicant shall
return the amount of the advance payment plus interest at the rate of
1.25 percent simple interest per calendar month;
(iii) If the applicant responds, to the satisfaction of the Board,
with just cause as to why a 508(h) submission that is complete was not
provided by the deadline set by the Board, the applicant will be given a
new deadline by which to provide a 508(h) submission that is complete;
and
(iv) If the applicant fails to provide a 508(h) submission that is
complete by the deadline, no additional extensions will be approved by
the Board and the applicant shall return the amount of the advance
payment plus interest at the rate of 1.25 percent simple interest per
calendar month.
[[Page 67]]
(2) If an applicant receives an advance payment for a portion of the
expected research and development costs for a concept proposal that is
developed into a 508(h) submission and determined by the Board to be
complete, but the 508(h) submission is not approved by the Board
following expert review, the Board will not:
(i) Seek a refund of any advance payments for research and
development costs; and
(ii) Make any further research and development cost reimbursements
associated with the 508(h) submission.
(d) Under section 522 of the Act, there are limited funds available
on an annual fiscal year basis to pay for reimbursements of research and
development costs (including advance payments for concept proposals) and
maintenance costs. Consistent with paragraphs (e) through (j) of this
section if all applicants' requests for reimbursement of research and
development costs (including advance payments for concept proposals) and
maintenance costs in any fiscal year:
(1) Do not exceed the maximum amount authorized by law, the
applicants may receive the full amount of reimbursement determined
reasonable by the Board; or
(2) Exceed the amount authorized by law, each applicant's
reimbursement determined reasonable by the Board will be determined by
dividing the total amount of each individual applicant's reimbursable
costs authorized in paragraphs (e) through (j) of this section by the
total amount of the aggregate of all applicants' reimbursable costs
authorized in paragraphs (e) through (j) for the year and multiplying
the result by the amount of reimbursement authorized under the Act.
(e) The amount of reimbursement for research and development costs
and maintenance costs requested by the applicant may be reduced as
necessary when the requested amount is not commensurate with the
complexity or the size of the area proposed to be covered.
(f) Research and development costs and maintenance costs must be
supported by itemized statements and supporting documentation (copies of
contracts, billing statements, time sheets, travel vouchers, accounting
ledgers, etc.).
(1) Actual costs submitted will be examined for reasonableness and
may be adjusted at the sole discretion of the Board.
(2) Allowable research and development costs and maintenance costs
(directly related to research and development or maintenance of the
508(h) submission only) may include the following:
(i) Wages and benefits, exclusive of bonuses, overtime pay, or shift
differentials;
(A) One line per employee or contractor, include job title, total
hours, and total dollars;
(B) The rates charged must be commensurate with the tasks performed
(For example, a person performing the task of data entry should not be
paid at the rate for performing data analysis);
(C) The wage rate and benefits shall not exceed two times the hourly
wage rate plus benefits provided by the Bureau of Labor Statistics; and
(D) The applicant must report any familial or business relationship
that exists between the applicant and the contractor or employee
(Reimbursement may be limited or denied if the contractor or employee is
associated to the applicant and they may be considered as one and the
same. This includes a separate entity being created by the applicant to
conduct research and development. Reimbursement may be limited or denied
if the contractor is paid a salary or other compensation);
(ii) Travel and transportation (One line per event, include the job
title, destination, purpose of travel, lodging cost, mileage, air or
other identified transportation costs, food and miscellaneous expenses,
other costs, and the total cost);
(iii) Software and computer programming developed specifically to
determine appropriate rates, prices, or coverage amounts (Identify the
item, include the purpose, and provide receipts or contract or straight-
time hourly wage, hours, and total cost. Software developed to send or
receive data between the producer, agent, approved insurance provider or
RMA or such other
[[Page 68]]
similar software may not be included as an allowable cost);
(iv) Miscellaneous expenses such as postage, telephone, express
mail, and printing (Identify the item, cost per unit, number of items,
and total dollars); and
(v) Training costs expended to facilitate implementation of a new
approved 508(h) submission (Include instructor(s) hourly rate, hours,
and cost of materials and travel) conducted at a national level,
directed to all approved insurance providers interested in selling the
508(h) submission, and approved prior to the training by RMA).
(3) The following expenses are specifically not eligible for
research and development and maintenance cost reimbursement:
(i) Copyright fees, patent fees, or any other charges, costs or
expenses related to the use of intellectual property;
(ii) Training costs, excluding training costs to facilitate
implementation of the approved 508(h) submission in accordance with
subsection (f)(2)(v);
(iii) State filing fees and expenses;
(iv) Normal ongoing administrative expenses or indirect overhead
costs (for example, costs associated with the management or general
functions of an organization, such as costs for internet service,
telephone, utilities, and office supplies);
(v) Paid or incurred losses;
(vi) Loss adjustment expenses;
(vii) Sales commission;
(viii) Marketing costs;
(ix) Lobbying costs;
(x) Product or applicant liability resulting from the research,
development, preparation or marketing of the policy;
(xi) Copyright infringement claims resulting from the research,
development, preparation or marketing of the policy;
(xii) Costs of making program changes as a result of any mistakes,
errors or flaws in the policy or plan of insurance;
(xiii) Costs associated with building rents or space allocation;
(xiv) Costs in paragraphs (i) and (j) of this section determined by
the Board to be ineligible for reimbursement; and
(xv) Local, State, or Federal taxes.
(g) Requests for reimbursement of maintenance costs must be
supported by itemized statements and supporting documentary evidence for
each reinsurance year in the maintenance period.
(1) Actual costs submitted will be examined for reasonableness and
may be adjusted at the sole discretion of the Board.
(2) Maintenance costs for the following activities may be
reimbursed:
(i) Expansion of the original 508(h) submission into additional
crops, counties or states;
(ii) Non-significant changes to the policy and any related material;
(iii) Non-significant or significant changes to the policy as
necessary to protect program integrity or as required by Congress; and
(iv) Any other activity that qualifies as maintenance.
(h) Projected costs for research and development for concept
proposals shall be based on a detailed estimate of the costs allowed in
paragraph (f) of this section. Since costs are one measurement of the
viability to develop an efficient policy, the Board may limit
reimbursements for research and development to the estimated costs
contained in the concept proposal, unless the submitter can justify a
higher reimbursement in accordance with Board procedures.
(i) If a 508(h) submission is determined to be incomplete and is
subsequently resubmitted and approved, the costs to perfect the 508(h)
submission may not be considered reimbursable costs depending on the
level of insufficiency or incompleteness of the 508(h) submission, as
determined at the sole discretion of the Board.
(j) Reimbursement of costs associated with addressing issues raised
by the Board, expert reviewers and RMA will be evaluated based on the
substance of the issue and the amount of time reasonably necessary to
address the specific issue. Delays and additional costs caused by the
inability or refusal to adequately address issues may not be considered
reimbursable, as determined at the sole discretion of the Board.
(k) If the Board withdraws its approval for reinsurance at any time
during the period that reimbursement for
[[Page 69]]
maintenance is being made or user fees are being collected, no
maintenance reimbursement shall be made nor any user fee be owed after
the date of such withdrawal.
(l) Not later than 180 days prior to the end of the last reinsurance
year in which a maintenance reimbursement will be paid for the approved
508(h) submission, the applicant must notify FCIC in writing regarding
its decision on future ownership and maintenance of the policy or plan
of insurance.
(1) The applicant must notify FCIC in writing whether it intends to:
(i) Continue to maintain the policy or plan of insurance and charge
approved insurance providers a user fee to cover maintenance expenses
for all policies earning premium; or
(ii) Transfer responsibility for maintenance to FCIC.
(2) If the applicant fails to notify FCIC in writing by the
deadline, the policy or plan of insurance will automatically transfer to
FCIC beginning with the next reinsurance year.
(3) If the applicant elects to:
(i) Continue to maintain the policy or plan of insurance, the
applicant must submit a request for approval of the user fee by the
Board at the time of the election; or
(ii) Transfer the policy or plan of insurance to FCIC, FCIC may at
its sole discretion, continue to maintain the policy or plan of
insurance or elect to withdraw the availability of the policy or plan of
insurance.
(4) Requests for approval of the user fee must be accompanied by
written documentation to support the amount requested will only cover
direct costs to maintain the plan of insurance. Costs that are not
eligible for research and development and maintenance reimbursements
under this section are not eligible to be considered for determining the
user fee.
(5) The Board will approve the amount of user fee, including the
maximum amount of total maintenance that may be collected per year, that
is payable to the applicant by approved insurance providers unless the
Board determines that the user fee charged:
(i) Is unreasonable in relation to the maintenance costs associated
with the policy or plan of insurance; or
(ii) Unnecessarily inhibits the use of the policy or plan of
insurance by approved insurance providers.
(6) If the total user fee exceeds the maximum amount determined by
the Board, the maximum amount determined by the Board will be divided by
the number of policies earning premium to determine the amount to be
paid by each approved insurance provider.
(7) Reasonableness of the initial request to charge a user fee will
be determined by the Board based on a comparison of the amount of
reimbursement for maintenance previously received, the number of
policies, the number of approved insurance providers, and the expected
total amount of user fees to be received in any reinsurance year.
(8) A user fee unnecessarily inhibits the use of a policy or plan of
insurance if it is so high that approved insurance providers will not
sell the policy, or the user fee represents an unreasonable portion of
the A&O subsidy paid to the AIP such that it prevents the AIP from
meeting its other obligations under the SRA.
(9) The user fee charged to each approved insurance provider will be
considered payment in full for the use of such policy, plan of insurance
or rate of premium for the reinsurance year in which payment is made.
(10) It is the sole responsibility of the applicant to collect such
fees from an approved insurance provider and any indebtedness for such
fees must be resolved by the applicant and approved insurance provider.
(i) Applicants may request that FCIC provide the number of policies
sold by each approved insurance provider.
(ii) Such information will be provided not later than 90 days after
such request is made or not later than 90 days after the requisite
information has been provided to FCIC by the approved insurance
provider, whichever is later.
(11) Every two years after approval of a user fee, or if the
applicant has made a significant change to the approved 508(h)
submission, applicants must submit documentation to the Board for review
in determining if the user fee should be revised.
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(12) The Board may review the amount of the user fee at any time at
its sole discretion.
(m) The Board may consider information from the Equal Access to
Justice Act, 5 U.S.C. 504, the Bureau of Labor Statistic's Occupational
Employment Statistics Survey, the Bureau of Labor Statistic's Employment
Cost Index, and any other information determined applicable by the
Board, in making a determination whether to approve a 508(h) submission
for reimbursement of research and development costs, maintenance costs,
or user fees.
(n) For purposes of this section, rights to, or obligations of,
research and development cost reimbursement, maintenance cost
reimbursement, or user fees cannot be transferred from any individual or
entity unless specifically approved in writing by the Board.
(o) Applicants requesting reimbursement for research and development
costs, maintenance costs, or user fees, may present their request in
person to the Board prior to consideration for approval.
(p) Index-based weather plans of insurance are not eligible for
reimbursement from FCIC for maintenance costs or research and
development costs. Submitters of approved index-based weather plans of
insurance may collect user fees from other approved insurance providers
in accordance with Procedures Handbook 17050--Approved Procedures for
Submission of Index-based Weather Plans of Insurance.
Sec. 400.713 Non-reinsured supplemental (NRS) policy.
(a) Unless otherwise specified by FCIC, any NRS policy that covers
the same agricultural commodity as any policy reinsured by FCIC under
the Act must be provided to RMA to ensure it does not shift any loss or
risk that does not exist under the FCIC reinsured policy. Failure to
provide such NRS policy or endorsement to RMA prior to its issuance
shall result in the denial of reinsurance, A&O subsidy, and risk subsidy
on all underlying FCIC reinsured policies unless the underlying FCIC
policy was sold by another AIP. If the underlying FCIC reinsured policy
is sold by another AIP, the AIP that sold the NRS may be required to pay
FCIC an amount equal to the reinsurance, A&O subsidy, and risk subsidy
on the underlying FCIC policy.
(b) An electronic copy in Microsoft Office compatible format, of the
new or revised NRS policy and related materials must be submitted at
least 150 days prior to the first sales closing date applicable to the
NRS policy. At a minimum, examples that demonstrate how liability and
indemnities are calculated under differing scenarios must be included.
Electronic copies of the NRS must be sent to the Deputy Administrator
for Product Management (or successor) at
[email protected].
(c) RMA will review the NRS policy. If any of the conditions found
in paragraphs (c)(1) through (5) of this section are found to occur,
FCIC will notify the AIP that submitted the NRS policy that if they sell
the NRS policy, it will result in denial of reinsurance, A&O subsidy,
and risk subsidy on all underlying FCIC reinsured policies, unless the
underlying FCIC policy was sold by another AIP. If the underlying FCIC
reinsured policy is sold by another AIP, the AIP that sold the NRS may
be required to pay FCIC an amount equal to the reinsurance, A&O subsidy,
and risk subsidy on the underlying FCIC policy.
(1) If the NRS policy materially increases or shifts risk to the
underlying policy or plan of insurance reinsured by FCIC.
(i) An NRS policy will be considered to materially increase or shift
risk to the underlying policy or plan of insurance reinsured by FCIC if
RMA determines it:
(A) Creates a moral hazard, such as a financial incentive for the
policyholder to behave in a way that increases the number or size of
losses;
(B) Results in the underlying FCIC policy either triggering a loss
sooner, or paying a larger indemnity than would otherwise be allowed by
the terms and conditions of the underlying reinsured policy; or
(C) Allows for combined indemnities between the underlying FCIC
reinsured policy and the NRS that are in excess of the value a producer
would reasonably expect to receive for the insured
[[Page 71]]
commodity if a normal crop was produced and sold at a reasonable market
price.
(ii) The NRS must include language that clearly states no indemnity
will be paid in excess of the initial value of the insured commodity.
(2) The NRS reduces or limits the rights of the insured with respect
to the underlying policy or plan of insurance reinsured by FCIC. An NRS
policy will be considered to reduce or limit the rights of the insured
with respect to the underlying policy or plan of insurance if RMA
determines it affects, alters, preempts, or undermines the terms or
conditions of the underlying policy or procedures issued by FCIC.
(3) The NRS disrupts the marketplace. An NRS policy will be
considered to disrupt the marketplace if RMA determines it encourages
planting more acres of the insured commodity in excess of normal market
demand, adversely affects the sales or administration of reinsured
policies, undermines producers' confidence in the Federal crop insurance
program, or harms public perception of the Federal crop insurance
program.
(4) The NRS is an impermissible rebate. An NRS may be considered to
be an impermissible rebate if RMA determines that the premium rates
charged are insufficient to cover the expected losses and a reasonable
reserve or it offers other benefits that are generally provided at a
cost.
(5) The NRS policy is conditioned upon or provides incentive for the
purchase of the underlying policy or plan of insurance reinsured by FCIC
with a specific agent or approved insurance provider.
(d) RMA will respond not less than 75 days before the first sales
closing date or provide notice why RMA is unable to respond within the
time frame allotted.
(e) NRS policies reviewed by RMA will need to be submitted once
every five years unless a change is made to the NRS or the underlying
policy. Once any changes are made to either policy, or the five year
period has concluded, the NRS must be resubmitted for review.
Subpart W [Reserved]
Subpart X_Interpretations of Statutory Provisions, Policy Provisions,
and Procedures
Source: 83 FR 66581, Dec. 27, 2018, unless otherwise noted.
Sec. 400.765 Definitions.
The definitions in this section apply to this subpart.
Act. The Federal Crop Insurance Act, 7 U.S.C. 1501-1524.
Approved insurance provider. A private insurance company that has
been approved by FCIC to sell and service Federal crop insurance
policies under a reinsurance agreement with FCIC.
FCIC. The Federal Crop Insurance Corporation, a wholly owned
government corporation within the United States Department of
Agriculture.
FCIC interpretation. An interpretation of a policy provision not
codified in the Code of Federal Regulations or any procedure used in the
administration of the Federal crop insurance program.
Final agency determination. Matters of general applicability
regarding FCIC's interpretation of provisions of the Act or any
regulation codified in the Code of Federal Regulations, including
certain policy provisions, which are applicable to all participants in
the Federal crop insurance program and the appeals process.
NAD. The USDA National Appeals Division. See 7 CFR part 11.
Participant. Any applicant for Federal crop insurance, an insured,
or approved insurance provider or their agent, loss adjuster, employee
or contractor.
Procedure. All FCIC issued handbooks, manuals, memoranda, and
bulletins for any crop insurance policy reinsured by FCIC.
Proceeding. The process that starts with the filing of a complaint,
notice of appeal, or other such document that commences the appeals
process, and ends with the adjudicatory body issuing its decision, and
includes all necessary activities, such as discovery, that occur within
that time frame.
RMA. The Risk Management Agency, an agency of the United States
Department of Agriculture.
You. The requestor of a final agency determination or FCIC
interpretation.
[[Page 72]]
Sec. 400.766 Basis and applicability.
(a) The regulations contained in this part prescribe the rules and
criteria for obtaining a final agency determination or a FCIC
interpretation.
(1) FCIC will provide a final agency determination or a FCIC
interpretation, as applicable, for statutory, regulatory, or other
policy provisions or procedures that were in effect during the four most
recent crop years from the crop year in which your request was
submitted. For example, for a request received in the 2014 crop year,
FCIC will consider requests for the 2014, 2013, 2012, and 2011 crop
years.
(2) If FCIC determines a request is outside the scope of crop years
authorized in paragraph (a)(1) of this section, you will be notified
within 30 days of the date of receipt by FCIC.
(3) If the statutory, regulatory or other policy provisions or
procedures have changed for the time period you seek an interpretation
you must submit a separate request for each policy provision or
procedure by year. For example, if you seek an interpretation of section
6(b) of the Small Grains Crop Provisions for the 2012 through 2015 crop
years but the policy provisions were revised starting with the 2014 crop
year, you must submit two requests, one for the 2012 and 2013 crop years
and another for the 2014 and 2015 crop years.
(b) With respect to a final agency determination or a FCIC
interpretation:
(1) If there is a dispute between participants that involves a final
agency determination or a FCIC interpretation:
(i) The parties are required to seek an interpretation of the
disputed provision from FCIC in accordance with this subpart (This may
require that the parties seek a stay of the proceedings until an
interpretation is provided, if such proceedings have been initiated);
and
(ii) The final agency determination or FCIC interpretation may take
the form of a written interpretation or, at the sole discretion of FCIC,
may take the form of testimony from an employee of RMA expressly
authorized in writing to provide interpretations of policy or procedure
on behalf of FCIC.
(2) All written final agency determinations issued by FCIC are
binding on all participants in the Federal crop insurance program for
the crop years the policy provisions are in effect. All written FCIC
interpretations and testimony from an employee of RMA are binding on the
parties to the dispute, including the arbitrator, mediator, judge, or
NAD.
(3) Failure to request a final agency determination or FCIC
interpretation when required by this subpart or failure of NAD,
arbitrator, mediator, or judge to adhere to the final agency
determination or FCIC interpretation provided under this subpart will
result in the nullification of any award or agreement in arbitration or
mediation in accordance with the provisions in the ``Mediation,
Arbitration, Appeal, Reconsideration, and Administrative and Judicial
Review'' section or similar section in all crop insurance policies.
(4) If either party believes an award or decision was rendered by
NAD, arbitrator, mediator, or judge based on a disputed provision in
which there was a failure to request a final agency determination or
FCIC interpretation or NAD, arbitrator, mediator, or judge's decision
was not in accordance with the final agency determination or FCIC
interpretation rendered with respect to the disputed provision, the
party may request FCIC review the matter to determine if a final agency
determination or FCIC interpretation should have been sought in
accordance with Sec. 400.767.
(i) Requests should be submitted through one of the methods
contained in Sec. 400.767(a)(1);
(ii) If FCIC determines that a final agency determination or FCIC
interpretation should have been sought and it was not, or the decision
was not in accordance with the final agency determination or FCIC
interpretation rendered with respect to the disputed provision:
(A) The award is automatically nullified; and
(B) Either party may appeal FCIC's determination that a final agency
determination or FCIC interpretation should have been sought and it was
[[Page 73]]
not, or the decision was not in accordance with the final agency
determination or FCIC interpretation rendered with respect to the
disputed provision to NAD in accordance with 7 CFR part 11.
(5) All written final agency determinations that are published on
RMA's website are considered matters of general applicability and are
not appealable to NAD. Before obtaining judicial review of any final
agency determination, you must obtain an Administrative Final
Determination from the Director of NAD on the issue of whether the final
agency determination is a matter of general applicability.
(6) With respect to an administrative review of a FCIC
interpretation:
(i) If either party to the proceeding does not agree with the
written FCIC interpretation, a request for administrative review may be
filed in accordance with 7 CFR part 400, subpart J. If you seek an
administrative review from FCIC, such request must be submitted in
accordance with Sec. 400.767(a).
(ii) FCIC will not accept requests for administrative review from
NAD, a mediator, or arbitrator.
(iii) The RMA Office of the Deputy Administrator for Product
Management will make a determination on the request for administrative
review not later than 30 days after receipt of the request.
(iv) Regardless of whether you have sought administrative review,
you may appeal a FCIC interpretation under this subsection to NAD in
accordance with 7 CFR part 11.
Sec. 400.767 Requestor obligations.
(a) All requests for a final agency determination or FCIC
interpretation submitted under this subpart must:
(1) Be submitted to the Deputy Administrator using the guidelines
provided on RMA's website at www.rma.usda.gov through one of the
following methods:
(i) In writing by certified mail or overnight delivery, to the
Deputy Administrator, Risk Management Agency, United States Department
of Agriculture, Beacon Facility, Stop 0801, Room 421, P.O. Box 419205,
Kansas City, MO 64141-6205;
(ii) By facsimile at (816) 926-3049; or
(iii) By electronic mail at [email protected];
(2) State whether you are seeking a final agency determination or
FCIC interpretation;
(3) Identify and quote the specific provision in the Act,
regulations, procedure, or policy provision for which you are requesting
a final agency determination or a FCIC interpretation;
(4) Contain no more than one request for an interpretation (You must
make separate requests for each provision if more than one provision is
at issue. For example, if there is a dispute with the interpretation of
Paragraph 3 of the Loss Adjustment Manual, then one request for an
interpretation is required. If there is a dispute with the
interpretation of Paragraph 3 of the Loss Adjustment Manual and
Paragraph 2 of the Macadamia Nut Loss Adjustment Standards Handbook,
then two separate requests for an interpretation are required);
(5) State the crop, crop year(s), and plan of insurance applicable
to the request;
(6) State the name, address, and telephone number of a contact
person for the request;
(7) Contain your detailed interpretation of the specific provision
of the Act, regulations, procedure, or policy provision for which the
request for interpretation is being requested; and
(8) Not contain any specific facts, alleged conduct, or hypothetical
situations or the request will be returned to the requestor without
consideration.
(b) You must advise FCIC if the request for a final agency
determination or FCIC interpretation will be used in a judicial review,
mediation, or arbitration.
(1) You must identify the type of proceeding (e.g., mediation,
arbitration, or litigation), if applicable, in which the interpretation
will be used, and the date the proceeding is scheduled to begin, or the
earliest possible date the proceeding would likely begin if a specific
date has not been established;
(2) The name, address, telephone number, and if applicable, fax
number, or email address of a contact person for both parties to the
dispute;
(3) Unless the parties elect to use the expedited review process
available
[[Page 74]]
under the AAA rules or the appeal is before NAD, requests must be
submitted not later than 90 days before the date the mediation,
arbitration, or litigation proceeding in which the interpretation will
be used is scheduled to begin.
(i) If the rules of the court, mediation, or arbitration require the
interpretation prior to the date the proceeding begins, add 90 days to
the number of days required prior to the proceeding. For example, if a
court requires the interpretation 20 days prior to the date the
proceeding begins, you must submit the request 110 days before the
proceeding is scheduled to begin.
(ii) Failure to timely submit a request for a final agency
determination or FCIC interpretation may result in:
(A) FCIC issuing a determination that no interpretation could be
made because the request was not timely submitted; and
(B) Nullification of any agreement or award in accordance with Sec.
400.766 if no final agency determination or FCIC interpretation can be
provided.
(iii) Notwithstanding paragraph (b) of this section, if during the
mediation, arbitration, or litigation proceeding, an issue arises that
requires a final agency determination or FCIC interpretation the
mediator, arbitrator, judge, or magistrate must promptly request a final
agency determination or FCIC interpretation in accordance with Sec.
400.767(a).
(4) FCIC at its sole discretion may authorize personnel to provide
an oral or written final agency determination or FCIC interpretation, as
appropriate; and
(5) Any decision or settlement resulting from such mediation,
arbitration, or litigation proceeding before FCIC provides its final
agency determination or FCIC interpretation can be nullified in
accordance with Sec. 400.766.
(c) If multiple parties are involved and have opposing
interpretations, a joint request for a final agency determination or
FCIC interpretation including both requestor interpretations in one
request is encouraged. If multiple insured persons are parties to the
dispute, and the request for a final agency determination or FCIC
interpretation applies to all parties, one request may be submitted for
all insured persons instead of separate requests for each person. In
this case, the information required in this section must be provided for
each person.
Sec. 400.768 FCIC obligations.
(a) FCIC will not provide a final agency determination or FCIC
interpretation for any request regarding, or that contains, specific
factual information to situations or cases, such as acts or failures to
act of any participant under the terms of a policy, procedure, or any
reinsurance agreement.
(1) FCIC will not consider specific factual information to
situations or cases in any final agency determination or FCIC
interpretation.
(2) FCIC will not consider any examples or hypotheticals provided in
your interpretation because those are fact-specific and could be
construed as a finding of fact by FCIC. If an example or hypothetical is
required to illustrate an interpretation, FCIC will provide the example
in the interpretation.
(b) If, in the sole judgment of FCIC, the request is unclear,
ambiguous, or incomplete, FCIC will not provide a final agency
determination or FCIC interpretation, but will notify you within 30 days
of the date of receipt by FCIC that the request is unclear, ambiguous,
or incomplete.
(c) If FCIC notifies you that a request is unclear, ambiguous or
incomplete under paragraph (b) of this section, the 90-day time period
for FCIC to provide a response is stopped on the date FCIC notifies you.
On the date FCIC receives a clear, complete, and unambiguous request,
FCIC has the balance of the days remaining in the 90-day time period to
provide a response to you. For example, FCIC receives a request for a
final agency determination on January 10. On February 10, FCIC notifies
you the request is unclear. On March 10, FCIC receives a clarified
request that meets all requirements for FCIC to provide a final agency
determination. FCIC has sixty days from March 10, the balance of the 90-
day time period, to provide a response.
(d) FCIC reserves the right to modify the request if FCIC determines
that a
[[Page 75]]
request for a final agency determination is really a request for a FCIC
interpretation or vice versa.
(e) FCIC will provide you a written final agency determination or a
FCIC interpretation within 90 days of the date of receipt for a request
that meets all requirements in Sec. 400.767.
(f) If FCIC does not provide a response within 90 days of receipt of
a request, you may assume your interpretation is correct for the
applicable crop year. However, your interpretation shall not be
considered generally applicable and shall not be binding on any other
program participants. Additionally, in the case of a joint request for a
final agency determination or a FCIC interpretation, if FCIC does not
provide a response within 90 days, neither party may assume their
interpretations are correct.
(g) FCIC will publish all final agency determinations as specially
numbered documents on the RMA website because they are generally
applicable to all program participants.
(h) FCIC will not publish any FCIC interpretation because it is only
applicable to the parties in the dispute. You are responsible for
providing copies of the FCIC interpretation to all other parties.
(i) When issuing a final agency determination or a FCIC
interpretation, FCIC will not evaluate the insured, insurance provider,
agent, or loss adjuster as it relates to their performance of following
FCIC policy provisions or procedures. Interpretations will not include
any analysis of whether the insured, insurance provider, agent, or loss
adjuster was in compliance with the policy provision or procedure in
question.
PART 401 [RESERVED]
PART 402_CATASTROPHIC RISK PROTECTION ENDORSEMENT--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(o).
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 U.S.C. chapter 35) under OMB
control number 0563-0053.
[61 FR 42985, Aug. 20, 1996, as amended at 69 FR 48730, Aug. 10, 2004]
Sec. 402.4 Catastrophic Risk Protection Endorsement Provisions.
Department of Agriculture
Federal Crop Insurance Corporation
Catastrophic Risk Protection Endorsement
(This is a continuous endorsement)
[[Page 76]]
If a conflict exists among the policy, the order of priority is: (1)
This Endorsement; (2) Special Provisions; (3) actuarial documents; (4)
the Commodity Exchange Price Provisions, if applicable; and (5) any of
the policies specified in section 2, with (1) controlling (2), etc.
Terms and Conditions
1. Definitions
Insurance provider. A private insurance company that has been
approved by FCIC to provide insurance coverage to producers
participating in programs authorized by the Federal Crop Insurance Act.
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 Common Crop Insurance Policy Basic Provisions (7 CFR 457.8)
and applicable Crop Provisions (catastrophic risk protection coverage is
not available under individual revenue plans of insurance such as
Revenue Protection and Revenue Protection with Harvest Price Exclusion);
(2) The Area Risk Protection Insurance Basic Provisions (7 CFR
407.9) and applicable Crop Provisions (catastrophic risk protection
coverage is not available under area revenue plans of insurance such as
Area Revenue Protection or Area Revenue Protection with the Harvest
Price Exclusion); or
(3) Other crop policies only if catastrophic risk protection
coverage is provided in the applicable crop 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.
3. Unit Division
(a) This section is not applicable if you are insured under the Area
Risk Protection Insurance Basic Provisions (7 CFR 407.9) and applicable
Crop Provisions.
(b) This section is in lieu of the unit provisions specified in the
applicable crop policy. 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 section 3(b) is not
allowed under this Endorsement.
4. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) Unless otherwise specified in the Special Provisions,
catastrophic risk protection coverage will offer protection equal to:
(1) Fifty percent (50%) of your approved yield indemnified at fifty-
five percent (55%) of the price election or projected price, as
applicable, if you are insured under the Common Crop Insurance Policy
Basic Provisions (7 CFR 457.8) and applicable Crop Provisions;
(2) Sixty-five percent (65%) of the expected county yield
indemnified at forty-five percent (45%) of the maximum protection per
acre if you are insured under the Area Risk Protection Insurance Basic
Provisions (7 CFR 407.9) and applicable Crop Provisions; or
(3) A comparable coverage as established by FCIC for other crop
policies only if catastrophic risk protection coverage is provided in
the applicable crop policy.
(b) 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
fifty-five percent (55%) of the price election.
(c) 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
Special Provisions.
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
[[Page 77]]
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 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) Except as provided in sections 6(f) and (h) and 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 coverage, you must
pay an administrative fee and premium as specified in section 6(f) to us
within 30 days after you have been billed, unless otherwise authorized
in the Federal Crop Insurance Act (You will be billed by the date stated
in the actuarial documents);
(1) The administrative fee owed is $655 for each crop in the county
unless otherwise specified in the Special Provisions.
(2) Payment of an administrative fee will not be required if you
file a bona fide zero acreage report on or before the acreage reporting
date for the crop (if you falsely file a zero acreage report you may be
subject to criminal and administrative sanctions).
(c) The administrative fee provisions of section 6(b) do not apply
if you are a ``beginning farmer or ``rancher,'' ``veteran farmer or
rancher,'' or ``limited resource farmer'' as defined in the applicable
crop policy. The administrative fee will be waived if you request it and
you meet the requirements contained in the annual premium provisions of
the applicable crop policy.
(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 section 6(b) for each
type or variety you elect to separately insure.
(e) If the administrative fee and premium as specified in section
6(f) is not paid when due, you, and all persons with an insurable
interest in the crop under the same contract, may be ineligible for
certain other USDA program benefits.
(f) You will be responsible for payment of the premium established
for the coverage provided under this endorsement if:
(1) USDA determines you have committed a violation of the highly
erodible land conservation or wetland conservation provisions of 7 CFR
part 12 as amended by the Agricultural Act of 2014; or
(2) You have not filed form AD-1026 with FSA for the reinsurance
year by the premium billing date.
(i) Notwithstanding section 6(f)(2), you may be eligible for premium
subsidy without having a timely filed form AD-1026:
(A) For the initial reinsurance year if you certify by the premium
billing date for your policy that you meet the qualifications as
outlined in FCIC approved procedures for producers who are new to
farming, new to crop insurance, a new entity, or have not previously
been required to file form AD-1026; or
(B) If FSA approves relief for failure to timely file due to
circumstances beyond your control or failure to timely provide adequate
information to complete form AD-1026 in accordance with the provisions
contained in 7 CFR part 12.
(ii) To be eligible for premium subsidy paid on your behalf by FCIC,
it is your responsibility to assure you meet all the requirements for:
(A) Compliance with the conservation provisions specified in section
6(f)(1) of this section; and
(B) Filing form AD-1026 to be properly identified as in compliance
with the conservation provisions specified in section 6(f)(1) of this
section.
(g) If the Act expressly authorizes an option or endorsement to be
available in addition to the coverage available under this Endorsement
(for example, the Supplemental Coverage Option) or any other additional
coverage offered under the Federal Crop Insurance Act (for example, the
Stacked Income Protection Plan), you will owe a separate annual premium
and administrative fee for such option or endorsement if the option or
endorsement has been made available in the actuarial documents and you
elect to purchase such coverage.
(h) Failure to pay the premium specified in section 6(f) will result
in the termination of the policy and all other policies in accordance
with the termination provisions specified in the applicable Basic
Provisions.
7. Insured Crop
The crop insured is specified in the applicable crop policy;
however, for policies other
[[Page 78]]
than those insured under the Area Risk Protection Insurance Basic
Provisions, notwithstanding any other policy provision requiring the
same insurance coverage on all insurable acreage of the crop in the
county, if you purchase additional coverage for a crop, you may
separately insure acreage designated as ``high-risk'' land by FCIC under
catastrophic risk protection coverage, provided that you execute a High-
Risk Land Exclusion Option and obtain a catastrophic risk protection
coverage policy with the same insurance provider on or before the
applicable sales closing date. You will be required to pay a separate
administrative fee for both the additional coverage policy and the
catastrophic risk protection coverage policy.
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
If two or more insured crop types, varieties, or classes are insured
within the same unit, and multiple price elections, projected prices, or
amounts of insurance 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, projected prices, or amounts of insurance and then totaled to
determine the total liability or dollar amount of production to be
counted for the unit.
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 for the crop year during which
any such act or omission 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 for the Supplemental Coverage Option and any other
option or endorsement or other additional coverage expressly authorized
in the Federal Crop Insurance Act and allowed in the actuarial documents
(for example, the Stacked Income Protection Plan). 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.
[61 FR 42985, Aug. 20, 1996, as amended at 63 FR 40631, July 30, 1998;
64 FR 40740, July 28, 1999; 65 FR 40484, June 30, 2000; 69 FR 48730,
Aug. 10, 2004; 73 FR 36408, June 27, 2008; 73 FR 70864, Nov. 24, 2008;
78 FR 52835, Aug. 27, 2013; 79 FR 37161, July 1, 2014; 81 FR 42473, June
30, 2016; 82 FR 55730, Nov. 24, 2017; 84 FR 30861, June 28, 2019]
PARTS 403 406 [RESERVED]
PART 407_AREA RISK PROTECTION INSURANCE REGULATIONS--Table of Contents
Sec.
407.1 Applicability.
407.2 Availability of Federal crop insurance.
407.3 Premium rates, amounts of protection, and coverage levels.
407.4 OMB control numbers.
407.5 Creditors.
407.6 [Reserved]
407.7 The contract.
407.8 The application and policy.
407.9 Area risk protection insurance policy.
407.10 Area risk protection insurance for barley.
407.11 Area risk protection insurance for corn.
407.12 Area risk protection insurance for cotton.
407.13 Area risk protection insurance for forage.
407.14 Area risk protection insurance for peanuts.
407.15 Area risk protection insurance for grain sorghum.
407.16 Area risk protection insurance for soybean.
407.17 Area risk protection insurance for wheat.
Authority: 7 U.S.C. 1506(l) and 1506(o).
Source: 78 FR 38507, June 26, 2013, unless otherwise noted.
Sec. 407.1 Applicability.
The provisions of this part are applicable only to those crops for
which a Crop Provision is contained in this part and the crop years
specified.
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Sec. 407.2 Availability of Federal crop insurance.
(a) Insurance shall be offered under the provisions of this part on
the insured crop in counties within the limits prescribed by and in
accordance with the provisions of the Federal Crop Insurance Act (7
U.S.C. 1501-1524) (Act). The crops and counties shall be designated by
the Manager of the Federal Crop Insurance Corporation (FCIC) from those
approved by the Board of Directors of FCIC.
(b) The insurance is offered through insurance providers reinsured
by the FCIC that 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 FCIC. FCIC may offer the
contract for coverage contained in this part and part 402 of this
chapter directly to the insured through the Department of Agriculture if
the Secretary determines that the availability of local agents is not
adequate. Those contracts are specifically identified as being offered
by FCIC.
(c) No person may have in force more than one insurance policy
issued or reinsured by FCIC on the same crop for the same crop year, in
the same county, unless specifically approved in writing by FCIC.
(d) Except as specified in paragraph (c) of this section, if a
person has more than one contract authorized under the Act that provides
coverage for the same loss 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 FCIC that the multiple
contracts of insurance were without the fault of the person.
(1) If the multiple contracts of insurance are shown to be without
the fault of the person and:
(i) One contract is an additional coverage policy and the other
contract is a Catastrophic Risk Protection policy, the additional
coverage policy will apply if both policies are with the same insurance
provider, or if not, both insurance providers agree, and the
Catastrophic Risk Protection policy will be canceled (If the insurance
providers do not agree, the policy with the earliest date of application
will be in force and the other contract will be canceled); or
(ii) Both contracts are additional coverage policies or both are
Catastrophic Risk Protection policies, the contract with the earliest
signature date on the application will be valid and the other contract
on that crop in the county for that crop year will be canceled, unless
both policies are with the same insurance provider and the insurance
provider agrees otherwise or both policies are with different insurance
providers and both insurance providers agree otherwise.
(2) No liability for indemnity or premium will attach to the
contracts canceled as specified in paragraphs (d)(1)(i) and (ii) of this
section.
(e) The person must repay all amounts received in violation of this
section with interest at the rate contained in the contract (see Sec.
407.9, section 22).
(f) A person whose contract with FCIC or with an insurance provider
reinsured by FCIC under the Act has been terminated because of violation
of the terms of the contract is not eligible to obtain crop insurance
under the Act with FCIC or with an insurance provider reinsured by FCIC
unless the person can show that the termination was improper and should
not result in subsequent ineligibility.
(g) All applicants for insurance under the Act must advise the
insurance provider, in writing at the time of application, of any
previous applications for insurance or contracts of insurance under the
Act within the last 5 years and the present status of any such
applications or insurance.
Sec. 407.3 Premium rates, amounts of protection, and coverage levels.
(a) The Manager of FCIC shall establish premium rates, amounts of
protection, and coverage levels for the insured crop that will be
included in the actuarial documents on file in the agent's office.
Premium rates, amounts of protection, and coverage levels may be changed
from year to year in accordance with the terms of the policy.
(b) At the time the application for insurance is made, the person
must elect
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an amount of protection and a coverage level from among those contained
in the actuarial documents for the crop year.
Sec. 407.4 OMB control numbers.
The information collection activity associated with this rule has
been submitted to OMB for their review and approval.
Sec. 407.5 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. 407.6 [Reserved]
Sec. 407.7 The contract.
(a) The insurance contract shall become effective upon the
acceptance by FCIC or the insurance provider of a complete, duly
executed application for insurance on a form prescribed or approved by
FCIC.
(b) The contract shall consist of the accepted application, Area
Risk Protection Insurance Basic Provisions, Crop Provisions, Special
Provisions, Actuarial Documents, and any amendments, endorsements, or
options thereto.
(c) Changes made in the contract shall not affect its continuity
from year to year.
(d) No indemnity shall be paid unless the person complies with all
terms and conditions of the contract.
(e) The forms required under this part and by the contract are
available at the office of the insurance provider, or such other
location as specified by FCIC, if applicable.
Sec. 407.8 The application and policy.
(a) Application for insurance, developed in accordance with
standards established by FCIC, must be made by any person who wishes to
participate in the program in order to cover such person's share in the
insured crop as landlord, owner-operator, tenant, or other crop
ownership interest.
(1) No other person's interest in the crop may be insured under the
application.
(2) To obtain coverage, the application must be submitted to the
insurance provider on or before the applicable sales closing date on
file in the insurance provider's local office.
(b) FCIC or the insurance provider may reject, no longer accept
applications, or cancel existing insurance contracts upon the FCIC's
determination that the insurance risk is excessive. Such determination
must be made not later than 15 days before the cancellation date for the
crop and may be made on an area, county, state, or crop basis.
Sec. 407.9 Area risk protection insurance policy.
[FCIC policies]
Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance Policy
[Reinsured policies]
(Appropriate title for insurance provider)
(This is a continuous policy. Refer to Section 2.)
[FCIC policies]
Area Risk Protection Insurance (ARPI) provides protection against
widespread loss of revenue or widespread loss of yield in a county.
Individual farm revenues and yields are not considered under ARPI and it
is possible that your individual farm may experience reduced revenue or
reduced yield and you do not receive an indemnity under ARPI.
This is an insurance policy issued by FCIC, under the provisions of
the Federal Crop Insurance Act (7 U.S.C. 1501-1524) (Act). All
provisions of the policy and rights and responsibilities of the parties
are specifically subject to the Act. The provisions of the policy may
not be waived or modified in any way by us, your insurance agent, or any
employee of USDA. FCIC procedures (handbooks, underwriting rules,
manuals, memoranda, and bulletins), and published on the Risk Management
Agency's (RMA) website at www.rma.usda.gov or a successor website, will
be used in the administration of this policy, including the adjustment
of any loss or claim submitted under this policy. Throughout this
policy, ``you'' and ``your'' refer to the insured shown on the accepted
application and ``we,'' ``us,'' and ``our'' refer to FCIC. Unless the
context indicates otherwise, the use of the plural form of a word
includes the singular and the singular form of the word includes the
plural.
AGREEMENT TO INSURE: In return for the commitment to pay a premium,
and subject to all of the provisions of this policy, we
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agree with you to provide the insurance as stated in this policy. If
there is a conflict between the Act, the regulations in 7 CFR chapter
IV, and FCIC procedures, the order of precedence is: (1) The Act; (2)
the regulations; and (3) FCIC procedures. If there is a conflict between
the policy provisions in 7 CFR part 407 and the administrative
regulations in 7 CFR part 400, the policy provisions published at 7 CFR
part 407 apply. The order of precedence for the policy is: (1) The
Catastrophic Risk Protection Endorsement, as applicable; (2) Special
Provisions; (3) actuarial documents; (4) the applicable Commodity
Exchange Price Provisions; (5) the Crop Provisions; and (6) these Basic
Provisions.
[Reinsured policies]
Area Risk Protection Insurance (ARPI) provides protection against
widespread loss of revenue or widespread loss of yield in a county.
Individual farm revenues and yields are not considered under ARPI and it
is possible that your individual farm may experience reduced revenue or
reduced yield and not receive an indemnity under ARPI.
This insurance policy is reinsured by FCIC under the provisions of
Subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501-1524) (Act).
All provisions of the policy and rights and responsibilities of the
parties are specifically subject to the Act. The provisions of the
policy may not be waived or varied in any way by us, our insurance agent
or any other contractor or employee of ours, or any employee of USDA. We
will use FCIC procedures (handbooks, underwriting rules, manuals,
memoranda, and bulletins), published on the Risk Management Agency
(RMA's) website at www.rma.usda.gov or a successor website, in the
administration of this policy, including the adjustment of any loss or
claim submitted under this policy. In the event that we cannot pay your
loss because we are insolvent or are otherwise unable to perform our
duties under our reinsurance agreement with FCIC, FCIC will become your
insurer, make all decisions in accordance with the provisions of this
policy, including any loss payments, and be responsible for any amounts
owed. No state guarantee fund will be liable for your loss.
Throughout this policy, ``you'' and ``your'' refer to the insured
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer
to the insurance provider providing insurance. Unless the context
indicates otherwise, the use of the plural form of a word includes the
singular and the singular form of the word includes the plural.
AGREEMENT TO INSURE: In return for the commitment to pay a 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 there is a
conflict between the Act, the regulations in 7 CFR chapter IV, and FCIC
procedures, the order of precedence is: (1) The Act; (2) the
regulations; and (3) FCIC procedures. If there is a conflict between the
policy provisions in 7 CFR part 407 and the administrative regulations
in 7 CFR part 400, the policy provisions in 7 CFR part 407 apply. The
order of precedence among the policy is: (1) The Catastrophic Risk
Protection Endorsement, as applicable; (2) Special Provisions; (3)
actuarial documents; (4) Commodity Exchange Price Provisions; (5) the
Crop Provisions; and (6) these Basic Provisions.
Terms and Conditions
Basic Provisions
1. Definitions
Abandon. Failure to continue to care for the crop, or providing care
so insignificant as to provide no benefit to the crop.
Acreage report. A report required by section 8 of these Basic
Provisions that 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.
Acreage reporting date. The date contained in the Special Provisions
by which you are required to submit your acreage report.
Act. Subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501-
1524).
Actuarial documents. The part of the policy that contains
information for the crop year which is available for public inspection
in your agent's office and published on RMA's website and which shows
available plans of insurance, coverage levels, information needed to
determine amounts of insurance, prices, premium rates, premium
adjustment percentages, type (commodity types, classes, subclasses,
intended uses), practice (irrigated practices, cropping practices,
organic practices, intervals), insurable acreage, and other related
information regarding crop insurance in the county.
Additional coverage. A level of coverage greater than catastrophic
risk protection.
Administrative fee. An amount you must pay for catastrophic risk
protection, and additional coverage for each crop year as specified in
section 7 of these provisions, the Catastrophic Risk Protection
Endorsement, or the Special Provisions, as applicable.
Agricultural experts. Persons who are employed by the Cooperative
Extension System or the agricultural departments of universities, or
other persons approved by FCIC, whose research or occupation is related
to the specific crop or practice for which such expertise is sought.
Persons who have a personal or financial interest in you or the crop
will not qualify as an agricultural expert. For example, contracting
with a person for consulting would be considered to have a financial
interest and a person who is a neighbor would be considered to have a
personal interest.
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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 crop for which
insurance coverage is requested.
Area. The general geographical region in which the insured acreage
is located, designated generally as a county but may be a smaller or
larger geographical area as specified in the actuarial documents.
Area Revenue Protection. A plan of insurance that provides
protection against loss of revenue due to a county level production
loss, a price decline, or a combination of both. This plan also includes
upside harvest price protection, which increases your policy protection
at the end of the insurance period if the harvest price is greater than
the projected price and if there is a production loss.
Area Revenue Protection with the Harvest Price Exclusion. A plan of
insurance that provides protection against loss of revenue due to a
county level production loss, price decline, or a combination of both.
This plan does not provide upside harvest price protection.
Area Risk Protection Insurance (ARPI). Insurance coverage based on
an area, not an individual, yield or revenue amount. There are three
plans of insurance available under ARPI: Area Revenue Protection, Area
Revenue Protection with the Harvest Price Exclusion, and Area Yield
Protection.
Area Yield Protection. A plan of insurance that provides protection
against loss of yield due to a county level production loss. This plan
does not provide protection against loss of revenue or upside harvest
price protection.
Assignment of indemnity. A transfer of policy rights, made on our
form, and effective when approved by us in writing, whereby you assign
your right to an indemnity payment for the crop year only to creditors
or other persons to whom you have a financial debt or other pecuniary
obligation.
Beginning farmer or rancher. An individual who has not actively
operated and managed a farm or ranch in any state, with an insurable
interest in a crop or livestock as an owner-operator, landlord, tenant,
or sharecropper for more than five crop years, as determined in
accordance with FCIC procedures. Any crop year's insurable interest may,
at your election, be excluded if earned while under the age of 18, while
in full-time military service of the United States, or while in post-
secondary education, in accordance with FCIC procedures. A person other
than an individual may be eligible for beginning farmer or rancher
benefits if there is at least one individual substantial beneficial
interest holder and all individual substantial beneficial interest
holders qualify as a beginning farmer or rancher.
Buffer zone. Acreage designated in your organic plan that separates
agricultural commodities grown under organic farming practices from
those grown under non-organic farming practices. A buffer zone must be
sufficient in size or other features, as stated in the National Organic
Program published in 7 CFR part 205, to prevent or minimize the
possibility of unintended contact by prohibited substances or organisms
applied to adjacent land acres with an area that is part of the
certified organic farming operation.
Cancellation date. The calendar date specified in the Crop
Provisions on which coverage for the crop will automatically renew
unless canceled in writing by either you or us or terminated in
accordance with the policy terms.
Catastrophic risk protection (CAT). Coverage equivalent to 65
percent of yield coverage and 45 percent of price coverage, unless
otherwise specified in the Special Provisions, and is the minimum level
of coverage offered by FCIC, as specified in the actuarial documents for
the crop, type, and practice. CAT is not available with Area Revenue
Protection or Area Revenue Protection with the Harvest Price Exclusion.
Catastrophic Risk Protection Endorsement. The part of the crop
insurance policy that contains provisions of insurance that are specific
to CAT.
Certified organic acreage. Acreage in the certified organic farming
operation that has been certified by a certifying agent as conforming to
organic standards in accordance with the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.) and 7 CFR part 205.
Certifying agent. A private or governmental entity accredited by the
USDA Secretary of Agriculture for the purpose of certifying a
production, processing or handling operation as organic.
Class. A specific subgroup of commodity type.
Code of Federal Regulations (CFR). The codification of general rules
published in the Federal Register by the Executive departments and
agencies of the Federal Government. Rules published in the Federal
Register by FCIC are contained in 7 CFR chapter IV. The full text of the
CFR is available in electronic format at https://www.ecfr.gov/.
Commodity. An agricultural good or product that has economic value.
Commodity Exchange Price Provisions (CEPP). A part of the policy
that is used for crops for which ARPI is available, unless otherwise
specified. This document includes the information necessary to derive
the projected and harvest price for the insured crop, as applicable.
Commodity type. A specific subgroup of a commodity having a
characteristic or set of characteristics distinguishable from other
subgroups of the same commodity.
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Consent. Approval in writing by us allowing you to take a specific
action.
Contract. (See ``Policy'')
Contract change date. The calendar date, as specified in the Crop
Provisions, by which changes to the policy, if any, will be made
available in accordance with section 3 of these Basic Provisions.
Conventional farming practice. A system or process that is necessary
to produce a commodity, excluding organic farming practices.
Cooperative Extension System. A nationwide network consisting of a
state office located at each state's land-grant university, and local or
regional offices. These offices are staffed by one or more agricultural
experts who work in cooperation with the National Institute of Food and
Agriculture, and who provide information to agricultural producers and
others.
County. Any county, parish, political subdivision of a state, or
other area specified on the actuarial documents shown on your accepted
application, including acreage in a field that extends into an adjoining
county if the county boundary is not readily discernible.
Cover crop. A crop generally recognized by agricultural experts as
agronomically sound for the area for erosion control or other purposes
related to conservation or soil improvement, unless otherwise specified
in the Special Provisions. A cover crop may be considered a second crop
(see the definition of ``second crop'').
Credible data. Data of sufficient quality and quantity to be
representative of the county.
Crop. The insurable commodity as defined in the Crop Provisions.
Cropping practice. A method of using a combination of inputs such as
fertilizer, herbicide, and pesticide, and operations such as planting,
cultivation, etc. to produce the insured crop. The insurable cropping
practices are specified in the actuarial documents.
Crop Provisions. The part of the policy that contains the specific
provisions of insurance for each insured crop.
Crop year. The period within which the insured crop is normally
grown and designated by the calendar year in which the crop is normally
harvested.
Days. Calendar days.
Delinquent debt. Has the same meaning as the term defined in 7 CFR
part 400, subpart U.
Dollar amount of insurance per acre. The guarantee calculated by
multiplying the expected county yield by the projected price and by the
protection factor. Your dollar amount of insurance per acre is shown on
your Summary of Protection. Following release of the harvest price, your
dollar amount of insurance may increase if Area Revenue Protection was
purchased and the harvest price is greater than the projected price.
Double crop. Producing two or more crops for harvest on the same
acreage in the same crop year.
Expected county revenue. The expected county yield multiplied by the
projected price.
Expected county yield. The yield, established in accordance with
section 15, contained in the actuarial documents on which your coverage
for the crop year is based.
Farm management record. A contemporaneous record provided by you
that documents your actual production recorded at the time of harvest,
storing of the crop, or use of the crop for feed, and can be used to
substantiate your actual production reported on the production report.
FCIC. The Federal Crop Insurance Corporation, a wholly owned
corporation within USDA.
Final county revenue. The revenue determined by multiplying the
final county yield by the harvest price with the result used to
determine whether an indemnity will be due for Area Revenue Protection
and Area Revenue Protection with the Harvest Price Exclusion, and
released by FCIC at a time specified in the Crop Provisions.
Final county yield. The yield, established in accordance with
section 15, for each insured crop, type, and practice, used to determine
whether an indemnity will be due for Area Yield Protection, and released
by FCIC at a time specified in the Crop Provisions.
Final planting date. The date contained in the actuarial documents
for the insured crop by which the crop must be planted in order to be
insured.
Final policy protection. For Area Revenue Protection only, the
amount calculated in accordance with section 12(e).
First insured crop. With respect to a single crop year and any
specific crop acreage, the first instance that a commodity is planted
for harvest or prevented from being planted and is insured under the
authority of the Act. For example, if winter wheat that is not insured
is planted on acreage that is later planted to soybeans that are
insured, the first insured crop would be soybeans. If the winter wheat
was insured, it would be the first insured crop.
FSA. The Farm Service Agency, an agency of the USDA, or a successor
agency.
FSA farm number. The number assigned to the farm by the local FSA
office.
Generally recognized. When agricultural experts or organic
agricultural experts, as applicable, are aware of the production method
or practice and there is no genuine dispute regarding whether the
production method or practice allows the crop to make normal progress
toward maturity.
Good farming practices. The production methods utilized to produce
the insured crop, type, and practice and allow it to make normal
progress toward maturity, which are
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those generally recognized by agricultural experts or organic
agricultural experts, depending on the practice, for the area. We may,
or you may request us to, contact FCIC to determine if production
methods will be considered ``good farming practices.''
Harvest price. A price determined in accordance with the CEPP and
used to determine the final county revenue.
Household. A domestic establishment including the members of a
family (parents, brothers, sisters, children, spouse, grandchildren,
aunts, uncles, nieces, nephews, first cousins, or grandparents, related
by blood, adoption or marriage, are considered to be family members) and
others who live under the same roof.
Insurable interest. Your percentage of the insured crop that is at
financial risk.
Insurable loss. Damage for which coverage is provided under the
terms of your policy, and for which you accept an indemnity payment.
Insurance provider. A private insurance company that has been
approved by FCIC to provide insurance coverage to producers
participating in programs authorized by the Act.
Insured. The named person as shown on the application accepted by
us. This term does not extend to any other person having an insurable
interest in the crop (e.g., a partnership, landlord, or any other
person) unless specifically indicated on the accepted application.
Insured crop. The crop in the county for which coverage is available
under your policy as shown on the application accepted by us.
Intended use. The expected end use or disposition of the commodity
at the time the commodity is reported.
Interval. A period of time designated in the actuarial documents.
Irrigated practice. A method of producing a crop by which water,
from an adequate water source, is artificially applied in sufficient
amounts by appropriate and adequate irrigation equipment and facilities
and at the proper times necessary to produce at least the (1) yield
expected for the area; (2) yield used to establish the production
guarantee or amount of insurance/coverage on the irrigated acreage
planted to the commodity; or (3) producer's established approved yield,
as applicable. Acreage adjacent to water, such as but not limited to a
pond, lake, river, stream, creek or brook, shall not be considered
irrigated based solely on the proximity to the water. The insurable
irrigation practices are specified in the actuarial documents.
Liability. (See ``Policy protection.'')
Limited resource farmer. Has the same meaning as the term defined by
USDA at http://lrftool.sc.egov.usda.gov/LRP_Definition.aspx.
Loss limit factor. Unless otherwise specified in the Special
Provisions a factor of .18 is used to calculate the payment factor. This
factor represents the percentage of the expected county yield or
expected county revenue at which no additional indemnity amount is
payable. For example, if the expected county yield is 100 bushels and
the final county yield is 18 bushels, then no additional indemnity is
due even if the yield falls below 18 bushels. The total indemnity will
never be more than 100 percent of the final policy protection.
NAP. Noninsured Crop Disaster Assistance Program published in 7 CFR
part 1437, administered by FSA.
Native sod. Acreage that has no record of being tilled (determined
in accordance with information collected and maintained by an agency of
the USDA or other verifiable records that you provide and are acceptable
to us) for the production of an annual crop on or before February 7,
2014, and on which the plant cover is composed principally of native
grasses, grass-like plants, forbs, or shrubs suitable for grazing and
browsing.
Offset. The act of deducting one amount from another amount.
Organic agricultural experts. Persons who are employed by the
following organizations: Appropriate Technology Transfer for Rural
Areas, Sustainable Agriculture Research and Education or the Cooperative
Extension System, the agricultural departments of universities, or other
persons approved by FCIC, whose research or occupation is related to the
specific organic crop or practice for which such expertise is sought.
Organic crop. A commodity that is organically produced consistent
with section 2103 of the Organic Foods Act of 1990 (7 U.S.C. 6502).
Organic farming practice. A system of plant production practices
used on organic acreage and transitional acreage to produce an organic
crop that is approved by a certifying agent in accordance with 7 CFR
part 205.
Organic plan. A written plan, in accordance with the National
Organic Program published in 7 CFR part 205, that describes the organic
farming practices that you and a certifying agent agree upon annually or
at such other times as prescribed by the certifying agent.
Organic practice. The insurable organic farming practices specified
in the actuarial documents.
Organic standards. Standards in accordance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.) and 7 CFR part 205.
Payment factor. A factor no greater than 1.0 used to determine the
amount of indemnity to be paid in accordance with section 12(g).
Perennial crop. A plant, bush, tree or vine crop that has a life
span of more than one year.
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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. ``Person'' does not
include the United States Government or any agency thereof.
Planted acreage. Except as otherwise specified in the Special
Provisions, land in which seed, plants, or trees have been placed,
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 in accordance with good farming practices
for the area.
Policy. The agreement between you and us to insure a commodity and
consisting of the accepted application, these Basic Provisions, the Crop
Provisions, the Special Provisions, the CEPP, other applicable
endorsements or options, the actuarial documents for the insured
commodity, the CAT Endorsement, if applicable, and the applicable
regulations published in 7 CFR chapter IV. Insurance for each commodity
in each county will constitute a separate policy.
Policy protection. The liability amount calculated in accordance
with section 6(f) unless otherwise specified in the Special Provisions.
Practice. Production methodologies used to produce the insured crop
consisting of unique combinations of irrigated practice, cropping
practice, organic practice, and interval as shown on the actuarial
documents as insurable.
Premium billing date. The earliest date upon which you will be
billed for insurance coverage based on your acreage report. The premium
billing date is contained in the actuarial documents.
Production record. A written record that documents your actual
production reported on the production report. The record must be an
acceptable verifiable record or an acceptable farm management record as
authorized by FCIC procedures.
Production report. A written report provided by you showing your
annual production in accordance with section 8. The report contains
yield information for the current year, including planted acreage and
production. This report must be supported by acceptable production
records.
Production reporting date. The date contained in the actuarial
documents by which you are required to submit your production report.
Prohibited substance. Any biological, chemical, or other agent that
is prohibited from use or is not included in the organic standards for
use on any certified organic, transitional or buffer zone acreage. Lists
of such substances are contained at 7 CFR part 205.
Projected price. A price for each crop, type, and practice as shown
in the actuarial documents, as applicable, determined in accordance with
the CEPP, Special Provisions or the Crop Provisions, as applicable.
Protection factor (PF). The percentage you choose that is used to
calculate the dollar amount of insurance per acre and policy protection.
Replanted crop. The same commodity replanted on the same acreage as
the first insured crop for harvest in the same crop year. ARPI does not
have a replant provision, therefore, it is only used for first and
second crop determinations.
RMA. Risk Management Agency, an agency within USDA.
RMA's website. A website hosted by RMA and located at
www.rma.usda.gov or a successor website.
Sales closing date. The date contained in the actuarial documents by
which an application must be filed and the last date by which you may
change your crop insurance coverage for a crop year.
Second crop. With respect to a single crop year, the next occurrence
of planting any agricultural commodity for harvest following a first
insured crop on the same acreage. The second crop may be the same or a
different agricultural commodity as the first insured crop, except the
term does not include a replanted crop. If following a first insured
crop, a cover crop that is planted on the same acreage and harvested for
grain or seed, is considered a second crop. A crop that is covered by
NAP or receives other USDA benefits associated with forage crops is
considered a second crop. A crop meeting the conditions in this
definition is considered a second crop regardless of whether it is
insured.
Share. Your insurable interest in the insured crop as an owner,
operator, or tenant.
Special Provisions. The part of the policy that contains specific
provisions of insurance for each insured crop that may vary by
geographic area, and is available for public inspection in your agent's
office and published on RMA's website.
State. The state shown on your accepted application.
Subclass. A specific subgroup of class.
Subsidy. The portion of the total premium that FCIC will pay in
accordance with the Act.
Subsidy factor. The percentage of the total premium paid by FCIC as
a subsidy.
Substantial beneficial interest. An interest held by any person of
at least 10 percent in you (e.g., there are two partnerships that each
have a 50 percent interest in you and each partnership is made up of two
individuals, each with a 50 percent share in the partnership. In this
case, each individual would be considered to have a 25 percent interest
in you, and both the partnerships and
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the individuals would have a substantial beneficial interest in you. The
spouses of the individuals would not be considered to have a substantial
beneficial interest unless the spouse was one of the individuals that
made up the partnership. However, if each partnership is made up of six
individuals with equal interests, then each would only have an 8.33
percent interest in you and although the partnership would still have a
substantial beneficial interest in you, the individuals would not for
the purposes of reporting in section 2). The spouse of any individual
applicant or individual insured will be presumed to have a substantial
beneficial interest in the applicant or insured unless the spouses can
prove they are legally separated or otherwise legally separate under the
applicable state dissolution of marriage laws. Any child of an
individual applicant or individual insured will not be considered to
have a substantial beneficial interest in the applicant or insured
unless the child has a separate legal interest in such person.
Summary of protection. Our statement to you specifying the insured
crop, dollar amount of insurance per acre, policy protection, premium
and other information obtained from your accepted application, acreage
report, and the actuarial documents.
Sustainable farming practice. A system or process for producing a
commodity, excluding organic farming practices, that is necessary to
produce the crop and is generally recognized by agricultural experts for
the area to conserve or enhance natural resources and the environment.
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).
Termination date. The calendar date contained in the Crop Provisions
upon which your insurance ceases to be in effect because of nonpayment
of any amount due us under the policy.
Tilled. The termination of existing plants by plowing, disking,
burning, application of chemicals, or by other means to prepare acreage
for the production of a crop.
Total premium. The amount of premium before subsidy, calculated in
accordance with section 7(d)(1).
Transitional acreage. Acreage in transition to organic where organic
farming practices are being followed, but the acreage does not yet
qualify as certified organic acreage.
Trigger revenue. The revenue amount calculated in accordance with
section 12(b).
Trigger yield. The yield amount calculated in accordance with
section 12(c).
Type. Categories of the insured crop consisting of unique
combinations of commodity type, class, subclass, and intended use as
shown on the actuarial documents as insurable.
Upside harvest price protection. Coverage provided automatically
under the Area Revenue Protection plan of insurance. This coverage
increases your final policy protection when the harvest price is greater
than the projected price. This coverage is not available under either
the Area Revenue Protection with the Harvest Price Exclusion or the Area
Yield Protection plans of insurance.
USDA. United States Department of Agriculture.
Verifiable record. A contemporaneous record from a disinterested
third party that substantiates your actual production reported on the
production report. The record must be a document or evidence from a
disinterested third party that is accurate and can be validated or
verified by us.
Veteran farmer or rancher.
(1) An individual who has served active duty in the United States
Army, Navy, Marine Corps, Air Force, or Coast Guard, including the
reserve components; was discharged or released under conditions other
than dishonorable; and:
(i) Has not operated a farm or ranch;
(ii) Has operated a farm or ranch for not more than 5 years; or
(iii) First obtained status as a veteran during the most recent 5-
year period.
(2) A person, other than an individual, may be eligible for veteran
farmer or rancher benefits if all substantial beneficial interest
holders qualify individually as a veteran farmer or rancher in
accordance with paragraph (1) of this definition; except in cases in
which there is only a married couple, then a veteran and non-veteran
spouse are considered a veteran farmer or rancher.
Void. When the policy is considered not to have existed for a crop
year.
Volatility factor. A measure of variation of price over time found
in the actuarial documents.
Volunteer crop. A crop that was planted in a previous crop year on
the applicable acreage or drifted from other acreage, successfully self-
seeded, and is growing this crop year on the applicable acreage without
being intentionally sown or managed.
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 until
canceled by you in accordance with the terms of the policy or terminated
by operation of the terms of the policy or by us. In accordance with
section 3, FCIC may change the coverage provided from year to year.
(b) The following information must be included on your application
for insurance or your application will not be accepted and no coverage
will be provided:
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(1) Your election of Area Revenue Protection, Area Revenue
Protection with the Harvest Price Exclusion, or Area Yield Protection;
(2) The crop with all type and practice combinations insured as
shown on the actuarial documents;
(3) Your elected coverage level;
(4) Your elected protection factor;
(5) Identification numbers for you as follows:
(i) You must include your social security number (SSN) if you are an
individual (if you are an individual applicant operating as a business,
you must provide an employer identification number (EIN) and you must
also provide your SSN); or
(ii) You must include your EIN if you are a person other than an
individual;
(6) Identification numbers for all persons who have a substantial
beneficial interest in you:
(i) The SSN for individuals; or
(ii) The EIN for persons other than individuals and the SSNs for all
individuals that comprise the person with the EIN if such individuals
also have a substantial beneficial interest in you; and
(7) All other information required on the application to insure the
crop.
(c) With respect to SSNs or EINs required on your application:
(1) Your application will not be accepted and no insurance will be
provided for the year of application if the application does not contain
your SSN or EIN. If your application contains an incorrect SSN or EIN
for you, your application will be considered not to have been accepted,
no insurance will be provided for the year of application and for any
subsequent crop years, as applicable, and such policies will be void if:
(i) Such number is not corrected by you; or
(ii) You correct the SSN or EIN but:
(A) You cannot prove that any error was inadvertent (Simply stating
the error was inadvertent is not sufficient to prove the error was
inadvertent); or
(B) It is determined that the incorrect number would have allowed
you to obtain disproportionate benefits under the crop insurance
program, you are determined to be ineligible for insurance or you could
avoid an obligation or requirement under any State or Federal law;
(2) With respect to persons with a substantial beneficial interest
in you:
(i) The insurance coverage for all crops included on your
application will be reduced proportionately by the percentage interest
in you of persons with a substantial beneficial interest in you
(presumed to be 50 percent for spouses of individuals) if the SSNs or
EINs of such persons are included on your application, the SSNs or EINs
are correct, and the persons with a substantial beneficial interest in
you are ineligible for insurance;
(ii) Your policies for all crops included on your application, and
for all applicable crop years, will be void if the SSN or EIN of any
person with a substantial beneficial interest in you is incorrect or is
not included on your application and:
(A) Such number is not corrected or provided by you, as applicable;
(B) You cannot prove that any error or omission was inadvertent
(Simply stating the error or omission was inadvertent is not sufficient
to prove the error or omission was inadvertent); or
(C) Even after the correct SSN or EIN is provided by you, it is
determined that the incorrect or omitted SSN or EIN would have allowed
you to obtain disproportionate benefits under the crop insurance
program, the person with a substantial beneficial interest in you is
determined to be ineligible for insurance, or you or the person with a
substantial beneficial interest in you could avoid an obligation or
requirement under any State or Federal law; or
(iii) Except as provided in sections 2(c)(2)(ii)(B) and (C), your
policies will not be voided if you subsequently provide the correct SSN
or EIN for persons with a substantial beneficial interest in you and the
persons are eligible for insurance;
(d) When any of your policies are void under section 2(c):
(1) You must repay any indemnity that may have been paid for all
applicable crops and crop years;
(2) Even though the policies are void, you will still be required to
pay an amount equal to 20 percent of the premium that you would
otherwise be required to pay; and
(3) If you previously paid premium or administrative fees, any
amount in excess of the amount required in section 2(d)(2) will be
returned to you.
(e) Notwithstanding any of the provisions in this section, you may
be subject to civil, criminal or administrative sanctions if you certify
to an incorrect SSN or EIN or any other information under this policy.
(f) If any of the information regarding persons with a substantial
beneficial interest in you, changes:
(1) After the sales closing date for the previous crop year, you
must revise your application by the sales closing date for the current
crop year to reflect the correct information; or
(2) Less than 30 days before the sales closing date for the current
crop year, you must revise your application by the sales closing date
for the next crop year;
(3) And you fail to provide the required revisions, the provisions
in section 2(c)(2) will apply; and
(g) If you are, or a person with a substantial beneficial interest
in you is, not eligible
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to obtain an SSN or EIN, whichever is required, you must request an
assigned number for the purposes of this policy from us:
(1) A number will be provided only if you can demonstrate you are,
or a person with a substantial beneficial interest in you is, eligible
to receive Federal benefits;
(2) If a number cannot be provided for you in accordance with
section (2)(g)(1), your application will not be accepted; or
(3) If a number cannot be provided for any person with a substantial
beneficial interest in you in accordance with section 2(g)(1), the
amount of coverage for all crops on the application will be reduced
proportionately by the percentage interest of such person in you.
(h) After acceptance of the application, you may not cancel this
policy for the initial crop year unless you choose to insure the entire
crop under another Federally reinsured plan of insurance with the same
insurance provider on or before the sales closing date. After the first
year, the policy will continue in force for each succeeding crop year
unless canceled, voided or terminated as provided in this section.
(i) 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.
(j) Any amount owed to us for any policy authorized under the Act
will be offset from any indemnity due you for this or any other crop
insured with us under the authority of the Act.
(1) Even if your claim has not yet been paid, you must still pay the
premium and administrative fee on or before the termination date for you
to remain eligible for insurance.
(2) If we offset any amount due us from an indemnity owed to you,
the date of payment for the purpose of determining whether you have a
delinquent debt will be the date FCIC publishes the final county yield
for the applicable crop year.
(3) For this agricultural commodity policy, your premium and
administrative fees will be offset from any indemnity payment due to you
even if it is prior to the premium billing date.
(4) For any other agricultural commodity policy insured with us and
it is:
(i) Prior to the premium billing date, and you agree, your premium
and administrative fees will be offset from any indemnity payment due to
you; or
(ii) On or after the premium billing date, your premium and
administrative fees will be offset from any indemnity payment due to
you.
(k) A delinquent debt for any policy will make you ineligible to
obtain crop insurance authorized under the Act for any subsequent crop
year and result in termination of all policies in accordance with
section 2(k)(2).
(1) With respect to ineligibility:
(i) Ineligibility for crop insurance will be effective on:
(A) The date that a policy was terminated in accordance with section
2(k)(2) for the crop for which you failed to pay premium, an
administrative fee, or any related interest owed, as applicable;
(B) The payment due date contained in any notification of
indebtedness for overpaid indemnity and any other amounts due, including
but not limited to, premium billed with a due date after the termination
date for the crop year in which premium is earned, if you fail to pay
the amount owed, including any related interest owed, as applicable, by
such due date; or
(C) The termination date for the crop year prior to the crop year in
which a scheduled payment is due under a written payment agreement if
you fail to pay the amount owed by any payment date in any agreement to
pay the debt.
(ii) If you are ineligible and a policy has been terminated in
accordance with section 2(k)(2), you will not receive any indemnity, and
such ineligibility and termination of the policy may affect your
eligibility for benefits under other USDA programs. Any indemnity that
may be owed for the policy before it has been terminated will remain
owed to you, but may be offset in accordance with section 2(j), unless
your policy was terminated in accordance with sections 2(k)(2)(i)(A),
(B), or (D).
(2) With respect to termination:
(i) Termination will be effective on:
(A) For a policy with unpaid administrative fees or premiums, the
termination date immediately subsequent to the premium billing date for
the crop year (For policies for which the sales closing date is prior to
the termination date, such policies will terminate for the current crop
year even if insurance attached prior to the termination date. Such
termination will be considered effective as of the sales closing date
and no insurance will be considered to have attached for the crop year
and no indemnity will be owed);
(B) For a policy with other amounts due, including but not limited
to, premium billed with a due date after the termination date for the
crop year in which premium is earned, the termination date immediately
following the date you have a delinquent debt (For policies for which
the sales closing date is prior to the termination date, such policies
will terminate for the current crop year even if insurance attached
prior to the termination date. Such termination will be considered
effective as of the sales closing date and no insurance will be
considered to have attached for the crop year and no indemnity will be
owed);
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(C) For all other policies that are issued by us under the authority
of the Act, the termination date that coincides with the termination
date for the policy with the delinquent debt, or if there is no
coincidental termination date, the termination date immediately
following the date you become ineligible; or
(D) For execution of a written payment agreement and failure to make
any scheduled payment, the termination date for the crop year prior to
the crop year in which you failed to make the scheduled payment (for
this purpose only, the crop year will start the day after the
termination date and end on the next termination date, e.g., if the
termination date is November 30 and you fail to make a payment on
November 15, 2019, your policy will terminate on November 30, 2018, for
the 2019 crop year).
(ii) For all policies terminated under section 2(k)(2)(i)(A), (B),
or (D), any indemnities paid subsequent to the termination date must be
repaid.
(iii) Once the policy is terminated, it cannot be reinstated for the
current crop year unless:
(A) The termination was in error;
(B) The Administrator of the Risk Management Agency, at his or her
sole discretion, determines that the following conditions are met:
(1) In accordance with 7 CFR part 400, subpart U, and FCIC
procedures, you provide documentation that your inadvertent failure to
pay your debt is due to an unforeseen or unavoidable event or other
extenuating circumstances that created the inadvertent failure for you
to make timely payment;
(2) You remit full payment of the delinquent debt owed to us or FCIC
with your request submitted in accordance with section
2(k)(2)(iii)(B)(3); and
(3) You submit a written request for reinstatement of your policy to
us no later than 60 days after the termination date or the missed
payment date of a previously executed written payment agreement, or in
the case of overpaid indemnity or any amount that became due after the
termination date, the due date specified in the notice to you of the
amount due, if applicable.
(i) If authorization for reinstatement, as defined in 7 CFR part
400, subpart U, is granted, your policies will be reinstated effective
at the beginning of the crop year for which you were determined
ineligible, and you will be entitled to all applicable benefits under
such policies, provided you meet all eligibility requirements and comply
with the terms of the policy; and
(ii) There is no evidence of fraud or misrepresentation; or
(C) We determine that, in accordance with 7 CFR part 400, subpart U,
and FCIC procedures, the following are met:
(1) You can demonstrate:
(i) You made timely payment for the amount of premium owed but you
inadvertently omitted some small amount, such as the most recent month's
interest or a small administrative fee;
(ii) The amount of the payment was clearly transposed from the
amount that was otherwise due (For example, you owed $892 but you paid
$829);
(iii) You timely made the full payment of the amount owed but the
delivery of that payment was delayed, and was postmarked no more than
seven calendar days after the termination date or the missed payment
date of a previously executed written payment agreement, or in the case
of overpaid indemnity or any amount that became due after the
termination date, the due date specified in a notice to you of an amount
due, as applicable; or
(iv) For previously executed written payment agreements, you made
the full payment of the scheduled payment amount owed within 15 calendar
days after the missed payment date.
(2) You remit full payment of the delinquent debt owed to us; and
(3) You submit a written request for reinstatement of your policy to
us in accordance with 7 CFR part 400, subpart U, and applicable
procedures no later than 30 days after the termination date or the
missed payment date of a previously executed written payment agreement,
or in the case of overpaid indemnity or any amount that became due after
the termination date, the due date specified in the notice to you of the
amount due, if applicable; and
(4) If authorization for reinstatement, as defined in 7 CFR part
400, subpart U, is granted, your policies will be reinstated effective
at the beginning of the crop year for which you were determined
ineligible, and you will be entitled to all applicable benefits under
such policies, provided you meet all eligibility requirements and comply
with the terms of the policy; and
(5) There is no evidence of fraud or misrepresentation.
(iv) A determination made under:
(A) Section 2(k)(2)(iii)(B) may only be appealed to the National
Appeals Division in accordance with 7 CFR part 11; and
(B) Section 2(k)(2)(iii)(C) may only be appealed in accordance with
section 23.
(3) To regain eligibility, you must:
(i) Repay the delinquent debt in full;
(ii) Execute a written payment agreement in accordance with 7 CFR
part 400, subpart U, and make payments in accordance with the agreement;
or
(iii) Have your debts discharged in bankruptcy.
(4) If you are determined to be ineligible under section 2(k),
persons with a substantial beneficial interest in you may also be
ineligible until you become eligible again.
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(l) In cases where there has been a death, disappearance, judicially
declared incompetence, or dissolution of any insured person:
(1) If any married insured dies, disappears, or is judicially
declared incompetent, the insured on the policy will automatically
convert to the name of the spouse if:
(i) The spouse was included on the policy as having a substantial
beneficial interest in the insured; and
(ii) The spouse has a share of the crop.
(2) The provisions in section 2(l)(3) will only be applicable if:
(i) Any partner, member, shareholder, etc., of an insured entity
dies, disappears, or is judicially declared incompetent, and such event
automatically dissolves the entity; or
(ii) An individual whose estate is left to a beneficiary other than
a spouse or left to the spouse and the criteria in section 2(l)(1) are
not met, dies, disappears, or is judicially declared incompetent.
(3) If the death, disappearance, or judicially declared incompetence
occurred:
(i) More than 30 days before the cancellation date, the policy is
automatically canceled as of the cancellation date and a new application
must be submitted; or
(ii) Thirty days or less before the cancellation date, or on after
the cancellation date, the policy will continue in effect through the
crop year immediately following the cancellation date and be
automatically canceled as of the cancellation date immediately following
the end of the insurance period for the crop year, unless canceled by
the cancellation date prior to the start of the insurance period:
(A) A new application for insurance must be submitted on or before
the sales closing date for coverage for the subsequent crop year; and
(B) Any indemnity will be paid to the person or persons determined
to be beneficially entitled to the payment provided such person or
persons comply with all policy provisions and timely pays the premium.
(4) If any insured entity is dissolved for reasons other than death,
disappearance, or judicially declared incompetence:
(i) Before the cancellation date, the policy is automatically
canceled as of the cancellation date and a new application must be
submitted; or
(ii) On or after the cancellation date, the policy will continue in
effect through the crop year immediately following the cancellation date
and be automatically canceled as of the cancellation date immediately
following the end of the insurance period for the crop year, unless
canceled by the cancellation date prior to the start of the insurance
period.
(A) A new application for insurance must be submitted on or before
the sales closing date for coverage for the subsequent crop year; and
(B) Any indemnity will be paid to the person or persons determined
to be beneficially entitled to the payment provided such person or
persons comply with all policy provisions and timely pays the premium.
(5) If section 2(k)(2) or (4) applies, a remaining member of the
insured person or the beneficiary is required to report to us the death,
disappearance, judicial incompetence, or other event that causes
dissolution of the entity not later than the next cancellation date,
except if section 2(k)(3)(ii) applies, notice must be provided by the
cancellation date for the next crop year.
(m) We may cancel your policy if no premium is earned for 3
consecutive years.
(n) The cancellation and termination dates are contained in the Crop
Provisions.
(o) 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
such other legally sufficient document authorizing such person to sign.
You are still responsible for the accuracy of all information provided
on your behalf and may be subject to the consequences in section 8(g),
and any other consequences, including administrative, criminal or civil
sanctions, if any information has been misreported.
(p) If voidance, cancellation or termination of insurance coverage
occurs for any reason, including but not limited to indebtedness,
suspension, debarment, disqualification, cancellation by you or us or
your policy is voided due to a conviction of the controlled substance
provisions of the Food Security Act of 1985 or Title 21, a new
application must be filed for the crop.
(1) Insurance coverage will not be provided if you are ineligible
under the contract or under any Federal statute or regulation.
(2) Since applications for crop insurance cannot be accepted after
the sales closing date, if you make any payment, or you otherwise become
eligible, after the sales closing date, you cannot apply for insurance
until the next crop year. For example, for the 2018 crop year, if crop
A, with a termination date of October 31, 2018, and crop B, with a
termination date of March 15, 2019, are insured and you do not pay the
premium for crop A by the termination date, you are ineligible for crop
insurance as of October 31, 2018, and crop A's policy is terminated as
of that date. Crop B's policy does not terminate until March 15, 2019,
and an indemnity for the 2018 crop year may still be owed. You will not
be eligible to apply for crop insurance for any crop until after the
amounts owed are paid in full or you have your debts discharged in
bankruptcy.
3. Contract Changes
(a) We may change the terms and conditions of this policy from year
to year.
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(b) Any changes in policy provisions, the CEPP, amounts of
insurance, expected county yields, premium rates, and program dates can
be viewed on RMA's website not later than the contract change date
contained in the Crop Provisions. We may only revise this information
after the contract change date to correct obvious errors (e.g., the
expected county revenue for a county was announced at $2,500 per acre
instead of $250 per acre).
(c) After the contract change date, all changes specified in section
3(b) will also be available upon request from your crop insurance agent.
(d) Not later than 30 days prior to the cancellation date for the
insured crop you will be notified, in accordance with section 20, a copy
of the changes to the Basic Provisions, Crop Provisions, CEPP, if
applicable, and Special Provisions.
(e) Acceptance of all the changes will be conclusively presumed in
the absence of notice from you to change or cancel your insurance
coverage.
4. Insured Crop
(a) The insured crop will be that shown on your accepted application
and as specified in the Crop Provisions or Special 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) That is not grown on planted acreage;
(2) That is a type not generally recognized for the area;
(3) For which the information necessary for insurance (projected
price, expected county yield, premium rate, etc.) is not included in the
actuarial documents;
(4) That is a volunteer crop;
(5) Planted following the same crop on the same acreage and the
first planting of the crop has been harvested in the same crop year
unless specifically permitted by the Crop Provisions or the Special
Provisions (For example, the second planting of grain sorghum would not
be insurable if grain sorghum had already been planted and harvested on
the same acreage during the crop year);
(6) That is planted for experimental purposes; or
(7) That is used solely for wildlife protection or management. If
the lease states that specific acreage must remain unharvested, only
that acreage is uninsurable. If the lease specifies that a percentage of
the crop must be left unharvested, your share will be reduced by such
percentage.
(c) Although certain policy documents may state that a specific
crop, type, or practice is not insurable, it does not mean all other
crops, types, or practices are insurable. To be insurable, the use of
such crop, type, or practice must be a good faming practice, have been
widely used in the county, and meet all the conditions in the Basic
Provisions, the Crop Provisions, Special Provisions, and the actuarial
documents.
5. Insurable Acreage
(a) Except as provided in section 5(c), the insurable acreage is all
of the acreage of the insured crop for which a premium rate is provided
by the actuarial documents, in which you have a share, and which is
planted in the county listed on your accepted application. The dollar
amount of insurance per acre, amount of premium, and indemnity will be
calculated separately for each crop, type, and practice shown on the
actuarial documents.
(1) The acreage must have been planted and harvested (grazing is not
considered harvested for the purposes of this section) or insured
(excluding pasture, rangeland, and forage, vegetation and rainfall
insurance or any other specific policy listed in the Special Provisions)
in at least one of the three previous crop years unless:
(i) Such acreage was not planted:
(A) In at least two of the three previous crop years to comply with
any other USDA program;
(B) Due to the crop rotation, the acreage would not have been
planted in the previous three years (e.g., a crop rotation of corn,
soybeans, and alfalfa; and the alfalfa remained for four years before
the acreage was planted to corn again); or
(C) Because a perennial crop was on the acreage in at least two of
the previous three crop years;
(ii) Such acreage constitutes five percent or less of the insured
planted acreage of the crop, type and practice as shown on the actuarial
documents in the county;
(iii) Such acreage was not planted or harvested because it was
pasture or rangeland and the crop to be insured is also pasture or
rangeland; or
(iv) The Crop Provisions or Special Provisions specifically allow
insurance for such acreage.
(b) Only the acreage planted to the insured crop on or before the
final planting date, as shown in the actuarial documents, and reported
by the acreage reporting date and physically located in the county shown
on your accepted application will be insured.
(c) We will not insure any acreage (and any uninsured acreage and
production from uninsured acreage will not be included for the purposes
of establishing the final county yield):
(1) Where the crop was destroyed or put to another use during the
crop year for the purpose of conforming with, or obtaining a payment
under, any other program administered by the USDA;
(2) Where we determine you have failed to follow good farming
practices for the insured crop;
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(3) Where the conditions under which the crop is planted are not
generally recognized for the area (for example, where agricultural
experts determine that planting a non-irrigated corn crop after a failed
small grain crop on the same acreage in the same crop year is not
appropriate for the area);
(4) Of a second crop, if you elect not to insure such acreage when
an indemnity for a first insured crop may be subject to reduction in
accordance with the provisions of section 13 and you intend to collect
an indemnity payment that is equal to 100 percent of the insurable loss
for the first insured crop acreage. This election must be made for all
first insured crop acreage that may be subject to an indemnity reduction
if the first insured crop is insured under this policy, or on a first
insured crop unit basis if the first insured crop is not insured under
this policy (e.g., if the first insured crop under this policy consists
of 40 acres, or the first insured crop unit insured under another policy
contains 40 planted acres, then no second crop can be insured on any of
the 40 acres). In this case:
(i) If the first insured crop is insured under ARPI, you must
provide written notice to us of your election not to insure acreage of a
second crop by the acreage reporting date for the second crop if it is
insured under ARPI, or before planting the second crop if it is insured
under any other policy;
(ii) If the first insured crop is not insured under ARPI, at the
time the first insured crop acreage is released by us or another
insurance provider who insures the first insured crop (if no acreage in
the first insured crop unit is released, this election must be made by
the earlier of acreage reporting date for the second crop or when you
sign the claim for the first insured crop);
(iii) If you fail to provide a notice as specified in section
5(c)(5)(i) or 5(c)(5)(ii), the second crop acreage will be insured in
accordance with applicable policy provisions and you must repay any
overpaid indemnity for the first insured crop;
(iv) In the event a second crop is planted and insured with a
different insurance provider, or planted and insured by a different
person, you must provide written notice to each insurance provider that
a second crop was planted on acreage on which you had a first insured
crop; and
(v) You must report the crop acreage that will not be insured on the
applicable acreage report; and
(5) Of a crop planted following a second crop or following an
insured crop that is prevented from being planted after a first insured
crop, unless it is a practice that is generally recognized by
agricultural experts or organic agricultural experts for the area to
plant three or more crops for harvest on the same acreage in the same
crop year, and additional coverage insurance provided under the
authority of the Act is offered for the third or subsequent crop in the
same crop year. Insurance will only be provided for a third or
subsequent crop as follows:
(i) You must provide records acceptable to us that show:
(A) You have produced and harvested the insured crop following two
other crops harvested on the same acreage in the same crop year in at
least two of the last four years in which you produced the insured crop;
or
(B) The applicable acreage has had three or more crops produced and
harvested on it in the same crop year in at least two of the last four
years in which the insured crop was grown on the acreage; and
(ii) The amount of insurable acreage will not exceed 100 percent of
the greatest number of acres for which you provide the records required
in section 5(c)(5)(i).
(d) Except as provided in section 5(e), and in accordance with
section 5(f), in the states of Iowa, Minnesota, Montana, Nebraska, North
Dakota, or South Dakota, native sod acreage may be insured if the
requirements of section 5(a) have been met but will:
(1) Notwithstanding the provisions in section 6, receive a liability
that is based on 65 percent of the protection factor; and
(2) For additional coverage policies, receive a premium subsidy that
is 50 percentage points less than would otherwise be provided on acreage
not qualifying as native sod. If the premium subsidy applicable to these
acres is less than 50 percent before the reduction, you will receive no
premium subsidy.
(e) Section 5(d) is not applicable to cumulative native sod acreage
that is five acres or less in the county.
(f) Section 5(d) is applicable during the first 4 crop years of
planting on native sod acreage that has been tilled beginning on
February 8, 2014, and ending on December 20, 2018. Section 5(d) is
applicable during 4 cumulative crop years of insurance within the first
10 crop years after initial tillage on native sod acreage tilled after
December 20, 2018.
6. Coverage, Coverage Levels, Protection Factor, and Policy Protection
(a) For all acreage of the insured crop in the county, you must
select the same plan of insurance (e.g., all Area Revenue Protection,
all Area Revenue Protection with the Harvest Price Exclusion, or all
Area Yield Protection), if such plans are available on the actuarial
documents.
(b) You must choose a protection factor:
(1) Unless otherwise specified in the Special Provisions from a
range of 80 percent to 120 percent;
(2) As a whole percentage from amounts specified; and
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(3) For each crop, type, and practice (you may choose a different
protection factor for each crop, type, and practice).
(c) You may select any coverage level shown on the actuarial
documents for each crop, type, and practice.
(1) For Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion:
(i) CAT level of coverage is not available; and
(ii) With respect to additional level of coverage, you may select
any coverage level specified in the actuarial documents for each crop,
type, and practice. For example: You may choose a 75 percent coverage
level for one crop, type, and practice (such as corn irrigated practice)
and a 90 percent coverage level for another crop, type, and practice
(corn non-irrigated practice).
(2) For Area Yield Protection:
(i) CAT level of coverage is available, and you may select the CAT
level of coverage for any crop, type, and practice;
(ii) With respect to additional level of coverage, you may select
any coverage level specified in the actuarial documents for each crop,
type, and practice. For example: You may choose a 75 percent coverage
level for one crop, type, and practice (corn irrigated practice) and a
90 percent coverage level for another crop, type, and practice (corn
non-irrigated practice); and
(iii) You may have CAT level of coverage on one type and practice
shown on the actuarial documents for the crop, and additional coverage
on another type and practice for the same crop. You may also have
different additional levels of coverage by type and practice.
(d) You may change the plan of insurance, protection factor, or
coverage level, for the following crop year by giving written notice to
us not later than the sales closing date for the insured crop.
(e) Since this is a continuous policy, if you do not select a new
plan of insurance, protection factor, and coverage level on or before
the sales closing date, we will assign the same plan of insurance,
protection factor, and coverage level as the previous year.
(f) Policy protection for ARPI plans of insurance is calculated as
follows:
(1) Multiply the dollar amount of insurance per acre for each crop,
type, and practice by the number of acres insured for such crop, type
and practice; and
(2) Multiply the result of paragraph (1) by your share.
(g) If the projected price cannot be calculated for the current crop
year under the provisions contained in the CEPP and you previously chose
Area Revenue Protection or Area Revenue Protection with the Harvest
Price Exclusion:
(1) Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion will not be provided and you will automatically
be covered under the Area Yield Protection plan of insurance for the
current crop year unless you cancel your coverage by the cancellation
date or change your plan of insurance by the sales closing date;
(2) Notice of availability of the projected price will be provided
on RMA's website by the date specified in the applicable projected price
definition contained in the CEPP;
(3) The projected price will be determined by FCIC and will be
released by the date specified in the applicable projected price
definition contained in the CEPP; and
(4) Your coverage will automatically revert back to Area Revenue
Protection or Area Revenue Protection with the Harvest Price Exclusion,
whichever is applicable, for the next crop year that revenue protection
is available unless you cancel your coverage by the cancellation date or
change your plan of insurance by the sales closing date.
7. Annual Premium and Administrative Fees
(a) The administrative fee:
(1) For CAT level of coverage will be an amount specified in the CAT
Endorsement or the Special Provisions, as applicable;
(2) For additional levels of coverage is $30, or an amount specified
in the Special Provisions, as applicable;
(3) Is payable to us on the premium billing date for the crop;
(4) Must be paid no later than the time premium is due or the amount
will be considered a delinquent debt;
(5) If you select coverage in accordance with section 6(c)(2)(iii):
(i) Will be charged for both CAT and additional level of coverage if
a producer elects both for the crop in the county; but
(ii) Will not be more than one additional and one CAT administrative
fee no matter how many different coverage levels you choose for
different type and practice combinations you insure for the crop in the
county;
(6) Will be waived if you request it and:
(i) You qualify as a beginning farmer or rancher, or veteran farmer
or rancher;
(ii) You qualify as a limited resource farmer; or
(iii) You were insured prior to the 2005 crop year or for the 2005
crop year and your administrative fee was waived for one or more of
those crop years because you qualified as a limited resource farmer
under a policy definition previously in effect, and you remain qualified
as a limited resource farmer under the definition that was in effect at
the time the administrative fee was waived;
(7) Will not be required if you file a bona fide zero acreage report
on or before the acreage reporting date for the crop. If you falsely
file a zero acreage report you may be
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subject to criminal, civil and administrative sanctions; and
(8) If not paid when due, may make you ineligible for crop insurance
and certain other USDA benefits.
(b) The premium is based on the policy protection calculated in
section 6(f).
(c) The information needed to determine the premium rate and any
premium adjustment percentages that may apply are contained in the
actuarial documents.
(d) To calculate the premium and subsidy amounts for ARPI plans of
insurance:
(1) Multiply your policy protection from section 6(f) by the
applicable premium rate and any premium adjustment percentages that may
apply;
(2) Multiply the result of paragraph (1) by the applicable subsidy
factor (This is the amount of premium FCIC will pay);
(3) Subtract the result of paragraph (2) from the result of
paragraph (1) to calculate the amount of premium you will pay.
(e) The amount of premium calculated in accordance with section
7(d)(3) is earned and payable at the time coverage begins. You will be
billed for such premium and applicable administrative fees not earlier
than the premium billing date specified in the actuarial documents.
(f) If the amount of premium calculated in accordance with section
7(d)(3) and administrative fees you are required to pay for any acreage
exceeds the amount of policy protection for the acreage, coverage for
those acres will not be provided (No premium or administrative fee will
be due and no indemnity will be paid for such acreage).
(g) Premium or administrative fees owed by you will be offset from
an indemnity due you in accordance with section 2(j).
(h) If you qualify as a beginning farmer or rancher, or veteran
farmer or rancher, your premium subsidy will be 10 percentage points
greater than the premium subsidy that you would otherwise receive,
unless otherwise specified in the Special Provisions.
(i) You will be ineligible for any premium subsidy paid on your
behalf by FCIC for any policy issued by us if:
(1) USDA determines you have committed a violation of the highly
erodible land conservation or wetland conservation provisions of 7 CFR
part 12 as amended by the Agricultural Act of 2014; or
(2) You have not filed form AD-1026 with FSA for the reinsurance
year by the premium billing date.
(i) Notwithstanding section 7(i)(2), you may be eligible for premium
subsidy without having a timely filed form AD-1026:
(A) For the initial reinsurance year if you certify by the premium
billing date for your policy that you meet the qualifications as
outlined in FCIC procedures for producers who are new to farming, new to
crop insurance, a new entity, or have not previously been required to
file form AD-1026; or
(B) If FSA approves relief for failure to timely file due to
circumstances beyond your control or failure to timely provide adequate
information to complete form AD-1026 in accordance with the provisions
contained in 7 CFR part 12.
(ii) To be eligible for premium subsidy paid on your behalf by FCIC,
it is your responsibility to assure you meet all the requirements for:
(A) Compliance with the conservation provisions specified in section
7(i)(1) of this section; and
(B) Filing form AD-1026 to be properly identified as in compliance
with the conservation provisions specified in section 7(i)(1) of this
section.
8. Report of Acreage and Production
(a) An annual acreage report must be submitted to us on our form for
each insured crop (separate lines for each type and practice) in the
county on or before the acreage reporting date contained in the
actuarial documents.
(b) If you do not have a share in an insured crop in the county for
the crop year, you must submit an acreage report, on or before the
acreage reporting date, so indicating.
(c) Your acreage report must include the following information, if
applicable:
(1) The amount of acreage of the crop in the county (insurable and
not insurable) in which you have a share, the last date any acreage of
the insured crop was planted, and the number of acres planted by such
date (Acreage initially planted after the final planting date must be
reported as uninsurable);
(2) Your share at the time coverage begins;
(3) The practice;
(4) The type; and
(5) The land identifier for the crop acreage (e.g., legal
description, FSA farm number or common land unit number if provided to
you by FSA, etc.) as required on our form.
(d) We will not insure any acreage of the insured crop planted after
the final planting date.
(e) Regarding the ability to revise an acreage report you have
submitted to us:
(1) You cannot revise any information pertaining to the planted
acreage after the acreage reporting date without our consent;
(2) Consent may only be provided:
(i) If the information on the acreage report is clearly transposed;
(ii) If you provide adequate evidence that we have or someone from
USDA has committed an error regarding the information on your acreage
report;
(iii) If allowed in the Crop Provisions; or
(iv) As otherwise provided in the Special Provisions; and
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(3) The provisions in section 8(e)(1) and (2) also pertain to land
acquired after the acreage reporting date, and we may choose to insure
or not insure the acreage, provided the crop meets the requirements in
section 5 and section 8. This requirement does not apply to any acreage
acquired through a transfer of coverage in accordance with section 17.
(f) Except as provided in section 8(h), your premium and indemnity,
if any, will be based on your insured acreage and share on your acreage
report or section 8(e), if applicable.
(g) We may elect to determine all premiums and indemnities based on
the information you submit on the acreage report or upon the factual
circumstances we determine to have existed, subject to the provisions
contained in section 8.
(h) You must provide all required reports and you are responsible
for the accuracy of all information contained in those reports. You
should verify the information on all such reports prior to submitting
them to us.
(1) Except as provided in section 8(h)(2), if you submit information
on any report that is different than what is determined to be correct
and the information reported on the acreage report results in:
(i) A lower liability than the actual, correct liability determined,
the policy protection will be reduced to an amount consistent with the
information reported on the acreage report; or
(ii) A higher liability than the actual, correct liability
determined, the information contained in the acreage report will be
revised to be consistent with the correct information.
(2) If your share is misreported and the share is:
(i) Under-reported at the time of the acreage report, any claim will
be determined using the share you reported; or
(ii) Over-reported at the time of the acreage report, any claim will
be determined using the share we determine to be correct.
(i) If we discover you have incorrectly reported any information on
the acreage report for any crop year, you may be required to provide
documentation in subsequent crop years substantiating your report of
acreage for those crop years, including, but not limited to, an acreage
measurement service at your own expense. If the correction of any
misreported information would affect an indemnity that was paid in a
prior crop year, such claim will be adjusted and you will be required to
repay any overpaid amounts.
(j) You may request an acreage measurement from FSA or a business
that provides such measurement service prior to the acreage reporting
date, submit documentation of such request and an acreage report with
estimated acreage by the acreage reporting date, and if the acreage
measurement shows the estimated acreage was incorrect, we will revise
your acreage report to reflect the correct acreage:
(1) If an acreage measurement is only requested for a portion of the
insured crop, type, and practice, you must separately designate the
acreage for which an acreage measurement has been requested;
(2) If an acreage measurement is not provided to us by the time the
final county revenue or final county yield, as applicable, is
calculated, we may:
(i) Elect to measure the acreage, and finalize your claim in
accordance with applicable policy provisions;
(ii) Defer finalization of the claim until the measurement is
completed with the understanding that if you fail to provide the
measurement prior to the termination date, your claim will not be paid;
or
(iii) Finalize the claim in accordance with applicable policy
provisions after you provide the acreage measurement to us; and
(3) Premium will still be due in accordance with sections 2(k) and 7
(If the acreage is not measured as specified in section 8(j) and the
acreage measurement is not provided to us at least 15 days prior to the
premium billing date, your premium will be based on the estimated
acreage and will be revised, if necessary, when the acreage measurement
is provided);
(4) If the acreage measurement is not provided by the termination
date, you will be precluded from providing any estimated acreage for all
subsequent crop years;
(5) If there is an irreconcilable difference between:
(i) The acreage measured by FSA or a measuring service and our on-
farm measurement, our on-farm measurement will be used; or
(ii) The acreage measured by a measuring service, other than our on-
farm measurement, and FSA, the FSA measurement will be used; and
(6) If the acreage report has been revised in accordance with
sections 8(g) and 8(j), the information on the initial acreage report
will not be considered misreported for the purposes of section 8(h).
(k) If you do not submit an acreage report by the acreage reporting
date, or if you fail to report all acreage, we may elect to determine
the insurable acreage, by crop, type, practice, and share, or to deny
liability on such acreage. If we deny liability for the unreported
acreage, no premium will be due on such acreage and no indemnity will be
paid.
(l) An annual production report must be submitted, unless otherwise
specified in the Special Provisions, to us on our form for each insured
crop (separate lines for each type and practice) in the county by the
production reporting date specified in the actuarial documents.
(m) Unless otherwise authorized by FCIC, if you do not submit a
production report to
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us by the production reporting date specified in the actuarial
documents, your protection factor for your policy in the following crop
year will be limited to the lowest protection factor available.
(n) You must certify to the accuracy of the information on your
production report and if you fail to accurately report your production,
you will be subject to the provisions in 8(m), unless the information is
corrected:
(1) On or before the production reporting date; or
(2) Because the incorrect information was the result of our error or
the error of someone from USDA.
(o) If you do not have acceptable production records to support the
information you certified on your production report, you will be subject
to the provisions in 8(m).
(p) At any time we discover you have misreported any material
information on your production report, you will be subject to the
provisions in 8(m).
(q) If you do not submit a production report or you misreported your
production report and you switch to another plan of insurance in the
following crop year, you will be subject to having a yield assigned in
accordance with FCIC procedures.
(r) Errors in reporting acreage, share, and other information
required in this section, may be corrected by us at the time we become
aware of such errors. However, the provisions regarding incorrect
information in this section will apply.
9. Share Insured
(a) Insurance will attach:
(1) Only if the person completing the application has a share in the
insured crop; and
(2) Only to that person's share, except that insurance may attach to
another person's share of the insured crop if the other person has a
share of the crop and:
(i) The application clearly states the insurance is requested for a
person other than an individual (e.g., a partnership or a joint
venture); or
(ii) The application clearly states you as a landlord will insure
your tenant's share, or you as a tenant will insure your landlord's
share. If you as a landlord will insure your tenant's share, or you as a
tenant will insure your landlord's share, you must provide evidence of
the other party's approval (lease, power of attorney, etc.) and such
evidence will be retained by us:
(A) You also must clearly set forth the percentage shares of each
person on the acreage report; and
(B) For each landlord or tenant, you must report the landlord's or
tenant's SSN, EIN, or other identification number we assigned for the
purposes of this policy, as applicable.
(b) With respect to your share:
(1) We will consider included in your share under your policy, any
acreage or interest reported by or for:
(i) Your spouse, unless such spouse can prove he/she has a separate
farming operation, which includes, but is not limited to, separate land
(transfers of acreage from one spouse to another is not considered
separate land), separate capital, separate inputs, separate accounting,
and separate maintenance of proceeds; or
(ii) Your child who resides in your household or any other member of
your household, unless such child or other member of the household can
demonstrate such person has a separate share in the crop (Children who
do not reside in your household are not included in your share); and
(2) If it is determined that the spouse, child or other member of
the household has a separate policy but does not have a separate farming
operation or share of the crop, as applicable:
(i) The policy for the spouse or child or other member of the
household will be void and the policy remaining in effect will be
determined in accordance with section 18(c)(1) and (2);
(ii) The acreage or share reported under the policy that is voided
will be included under the remaining policy; and
(iii) No premium will be due and no indemnity will be paid for the
voided policy.
(c) Acreage rented for a percentage of the crop, or 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.
(d) Acreage rented for cash, or a lease containing provisions for
either a minimum payment or a crop share (such as a 50/50 share or
$100.00 per acre, whichever is greater) will be considered a cash lease.
10. Insurance Period
Unless specified otherwise in the Crop Provisions, coverage begins
at the later of:
(a) The date we accept your application (For the purposes of this
paragraph, the date of acceptance is the date that you submit a properly
executed application in accordance with section 2); or
(b) The date the insured crop is planted.
11. Causes of Loss
(a) ARPI provides protection against loss of revenue or against loss
of yield in a county resulting from natural causes of loss that cause
the final county yield or the final county revenue to be less than the
trigger yield or the trigger revenue.
(b) Failure to follow good farming practices, or planting or
producing a crop using
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a practice that has not been widely recognized as used to establish the
expected county yield, is not an insurable cause of loss under ARPI.
12. Triggers, Final Policy Protection, Payment Factor, and Indemnity
Calculations
(a) Individual farm revenues and yields are not considered when
calculating losses under ARPI. It is possible that your individual farm
may experience reduced revenue or reduced yield and you do not receive
an indemnity under ARPI.
(b) To calculate the trigger revenue:
(1) For Area Revenue Protection, multiply the expected county yield
by the greater of the projected or harvest price and by the coverage
level.
(2) For Area Revenue Protection with the Harvest Price Exclusion,
multiply the expected county yield by the projected price and by the
coverage level.
(c) To calculate the Trigger Yield for Area Yield Protection,
multiply the expected county yield by the coverage level.
(d) If the harvest price cannot be calculated for the current crop
year under the provisions contained in the CEPP:
(1) Revenue protection will continue to be available; and
(2) The harvest price will be determined and announced by FCIC.
(e) The final policy protection for:
(1) Area Revenue Protection is calculated by:
(i) Multiplying the expected county yield by the greater of the
harvest price or the projected price;
(ii) Multiplying the result of subparagraph (i) by your protection
factor; and
(iii) Multiplying the result of subparagraph (ii) by your acres and
by your share.
(2) Area Revenue Protection with the Harvest Price Exclusion and
Area Yield Protection are equal to the policy protection and are
calculated by:
(i) Multiplying the expected county yield by the projected price;
(ii) Multiplying the result of subparagraph (i) by your protection
factor; and
(iii) Multiplying the result of subparagraph (ii) by your acres and
by your share.
(f) An indemnity is due for:
(1) Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion if the final county revenue is less than the
trigger revenue.
(2) Area Yield Protection if the final county yield is less than the
trigger yield.
(g) The payment factor is calculated for:
(1) Area Revenue Protection by:
(i) Subtracting the final county revenue from the trigger revenue to
determine the amount of loss;
(ii) Multiplying the expected county yield by the greater of the
projected or harvest price and by the loss limit factor;
(iii) Subtracting the result of subparagraph (ii) from the trigger
revenue; and
(iv) Dividing the result of subparagraph (i) by the result of
subparagraph (iii) to obtain the payment factor.
(2) Area Revenue Protection with the Harvest Price Exclusion by:
(i) Subtracting the final county revenue from the trigger revenue to
determine the amount of loss;
(ii) Multiplying the expected county yield by the projected price
and by the loss limit factor;
(iii) Subtracting the result of subparagraph (ii) from the trigger
revenue; and
(iv) Dividing the result of subparagraph (i) by the result of
subparagraph (iii) to obtain the payment factor.
(3) Area Yield Protection by:
(i) Subtracting the final county yield from the trigger yield to
determine the amount of loss;
(ii) Multiplying the expected county yield by the loss limit factor;
(iii) Subtracting the result of subparagraph (ii) from the trigger
yield; and
(iv) Dividing the result of subparagraph (i) by the result of
subparagraph (iii) to obtain the payment factor.
(h) Indemnities for all three ARPI plans of insurance are calculated
by multiplying the final policy protection by the payment factor.
(i) Indemnities for all three ARPI plans of insurance are calculated
following release of the final county yield and harvest price as
specified in the Crop Provisions.
13. Indemnity and Premium Limitations
(a) With respect to acreage where you are due an indemnity for your
first insured crop in the crop year, except in the case of double
cropping described in section 13(c):
(1) You may elect to not plant or to plant and not insure a second
crop on the same acreage for harvest in the same crop year and collect
an indemnity payment that is equal to 100 percent of the insurable loss
for the first insured crop; or
(2) You may elect to plant and insure a second crop on the same
acreage for harvest in the same crop year (you will pay the full premium
and if there is an insurable loss to the second crop, receive the full
amount of indemnity that may be due for the second crop, regardless of
whether there is a subsequent crop planted on the same acreage) and:
(i) Collect an indemnity payment that is 35 percent of the insurable
loss for the first insured crop;
(ii) Be responsible for a premium that is 35 percent of the premium
that you would otherwise owe for the first insured crop; and
(iii) If the second crop does not suffer an insurable loss:
(A) Collect an indemnity payment for the other 65 percent of
insurable loss that was
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not previously paid under section 13(a)(2)(i); and
(B) Be responsible for the remainder of the premium for the first
insured crop that you did not pay under section 13(a)(2)(ii).
(b) In lieu of the priority contained in the Agreement to Insure
section, which states that the Crop Provisions have priority over the
Basic Provisions, the reduction in the amount of indemnity and premium
specified in section 13(a) of these Basic Provisions, as applicable,
will apply to any premium owed or indemnity paid in accordance with the
Crop Provisions, and any applicable endorsement. This will apply:
(1) Even if another person plants the second crop on any acreage
where the first insured crop was planted; or
(2) If you fail to provide any records we require to determine
whether an insurable loss occurred for the second crop.
(c) You may receive a full indemnity for a first insured crop when a
second crop is planted on the same acreage in the same crop year,
regardless of whether or not the second crop is insured or sustains an
insurable loss, if each of the following conditions are met:
(1) It is a practice that is generally recognized by agricultural
experts or organic agricultural experts for the area to plant two or
more crops for harvest in the same crop year;
(2) The second or more crops are customarily planted after the first
insured crop for harvest on the same acreage in the same crop year in
the area;
(3) Additional coverage insurance offered under the authority of the
Act is available in the county on the two or more crops that are double
cropped; and
(4) You provide records acceptable to us of acreage and production
that show you have double cropped acreage in at least two of the last
four crop years in which the first insured crop was planted, or that
show the applicable acreage was double cropped in at least two of the
last four crop years in which the first insured crop was grown on it;
(5) If you do not have records of acreage and production specific to
the double cropped acreage, as required in section 13(h)(4), but instead
have records that combine production from acreage you double cropped
with records of production from acreage you did not double crop, we will
allocate the first and second crop production to the specific acreage in
proportion to the liability for the acreage that was and was not double
cropped; and
(6) With respect to double cropped acreage for which one of the
crops you have double cropped is insured under a plan of insurance not
covered under these Basic Provisions, each insured crop must follow its
own Basic Provisions, Crop Provisions, and Special Provisions to
determine if the double cropping requirements have been met. If the
double cropping requirements in the applicable Basic Provisions, Crop
Provisions, or Special Provisions have not been met for each insured
crop, section 13(a) of these Basic Provisions apply.
(d) If you provided acceptable records in accordance with section
13(c), your double cropping history is limited to the highest number of
acres double cropped within the applicable four-year period as
determined in section 13(c)(4).
(1) If the records you provided are from acreage you double cropped
in at least two of the last four crop years, you may apply your history
of double cropping to any acreage of the insured crop in the county (for
example you have 100 cropland acres in the county and have double
cropped wheat and soybeans on all 100 acres in the county and you
acquire an additional 100 acres in the county, you can apply your
history of 100 double cropped acres to any of the 200 acres in the
county); or
(2) If the records you provided are from acreage that another
producer double cropped in at least two of the last four crop years, you
may only use the history of double cropping for the same physical acres
from which double cropping records were provided (e.g., if a neighbor
has double cropped 100 acres of wheat and soybeans in the county and you
acquire your neighbor's 100 double cropped acres and an additional 100
acres in the county, you can only apply your neighbor's history of
double cropped acreage to the same 100 acres that your neighbor double
cropped).
(3) If you acquired additional land for the current crop year and
the following calculation results in a greater number of double cropping
acres than determined in section 13(c), you may apply the percentage of
acres that you have previously double cropped to the total cropland
acres that you are farming this year (if greater):
(i) Determine the number of acres of the first insured crop that
were double cropped in each of the years for which double cropping
records are provided (for example, records are provided showing: 100
acres of wheat planted in 2019 and 50 of those acres were double cropped
with soybeans; and 100 acres of wheat planted in 2020 and 70 of those
acres were double cropped with soybeans);
(ii) Divide each result of section 13(d)(3)(i) by the number of
acres of the first insured crop that were planted in each respective
year (in the example in section 13(d)(3)(i), 50 divided by 100 equals 50
percent of the first insured crop acres that were double cropped in 2019
and 70 divided by 100 equals 70 percent of the first insured crop acres
that were double cropped in 2020);
(iii) Add the results of section 13(d)(3)(ii) and divide by the
number of years the first
[[Page 99]]
insured crop was double cropped (in the example in section 13(d)(3)(i),
50 plus 70 equals 120 divided by 2 equals 60 percent); and
(iv) Multiply the result of section 13(d)(3)(iii) by the number of
insured acres of the first insured crop (in the example in section
13(d)(3)(i), 60 percent multiplied by the number of wheat acres insured
in 2021);
(e) If any Federal or State agency requires destruction of any
insured crop or crop production, as applicable, because it contains
levels of a substance, or has a condition, that is injurious to human or
animal health in excess of the maximum amounts allowed by the Food and
Drug Administration, other public health organizations of the United
States or an agency of the applicable State, you must destroy the
insured crop or crop production, as applicable, and certify that such
insured crop or crop production has been destroyed prior to receiving an
indemnity payment. Failure to destroy the insured crop or crop
production, as applicable, will result in you having to repay any
indemnity paid and you may be subject to administrative sanctions in
accordance with section 515(h) of the Act and 7 CFR part 400, subpart R,
and any applicable civil or criminal sanctions.
14. Organic Farming Practices
(a) Insurance will be provided for a crop grown using an organic
farming practice for only those acres of the crop that meet the
requirements for an organic crop on the acreage reporting date.
(b) If an organic type or practice is shown on the actuarial
documents, the projected price, dollar amount of insurance, policy
protection, premium rate, etc., for such organic crop, type and practice
will be used unless otherwise specified in the actuarial documents. If
an organic type or practice is not shown on the actuarial documents, the
projected price, dollar amount of insurance, policy protection, premium
rate, etc., for the non-organic crop, type and practice will be used.
(c) If insurance is provided for an organic farming practice as
specified in section 14(a) and (b), only the following acreage will be
insured under such practice:
(1) Certified organic acreage;
(2) Transitional acreage being converted to certified organic
acreage in accordance with an organic plan; and
(3) Buffer zone acreage.
(d) On the date you report your acreage, you must have:
(1) For certified organic acreage, a written certification in effect
from a certifying agent indicating the name of the entity certified,
effective date of certification, certificate number, types of
commodities certified, and name and address of the certifying agent (A
certificate issued to a tenant may be used to qualify a landlord or
other similar arrangement);
(2) For transitional acreage, a certificate as described in section
14(d)(1), or written documentation from a certifying agent indicating an
organic plan is in effect for the acreage; and
(3) Records from the certifying agent showing the specific location
of each field of certified organic, transitional, buffer zone, and
acreage not maintained under organic management.
15. Yields
(a) The data source used for the county yields will be based on the
best available data and will be specified in the actuarial documents.
(b) Except as otherwise provided in this section, the data source
used to establish the expected county yield will be the data source used
to establish the final county yield.
(c) If the data source used to establish the expected county yield
is not able to provide credible data to establish the final county yield
because the data is no longer available, credible, or reflect changes
that may have occurred after the yield was established;
(1) FCIC will determine the final county yield based on the most
accurate data available from subsection (g), as determined by FCIC; or
(2) To the extent that practices used during the crop year change
from those upon which the expected county yield is based, the final
county yield may be adjusted to reflect the yield that would have
resulted but for the change in practice. For example, if the county is
traditionally 90 percent irrigated and 10 percent non-irrigated, but
this year the county is now 50 percent irrigated and 50 percent non-
irrigated, the final county yield will be adjusted to an amount as if
the county had 90 percent irrigated acreage.
(d) If the final county yield is established from a data source
other than that used to establish the expected county yield, FCIC will
provide notice of the data source and the reason for the change at the
time the final county yield is published.
(e) The final county yield determined by FCIC is considered final
for the purposes of establishing whether an indemnity is due and will
not be revised for any reason.
(f) Yields used under this insurance program for a crop may be based
on crop insurance data, other USDA data, or other data sources, if
elected by FCIC.
16. Assignment of Indemnity
(a) You may assign your right to an indemnity for the crop year only
to creditors or other persons to whom you have a financial debt or other
pecuniary obligation. You may be required to provide proof of the debt
or
[[Page 100]]
other pecuniary obligation before we will accept the assignment of
indemnity.
(b) All assignments must be on our form and must be provided to us.
Each assignment form may contain more than one creditor or other person
to whom you have a financial debt or other pecuniary obligation.
(c) Unless you have provided us with a properly executed assignment
of indemnity, we will not make any payment to a lienholder or other
person to whom you have a financial debt or other pecuniary obligation
even if you may have a lien or other assignment recorded elsewhere.
Under no circumstances will we be liable:
(1) To any lienholder or other person to whom you have a financial
debt or other pecuniary obligation where you have failed to include such
lienholder or person on a properly executed assignment of indemnity
provided to us; or
(2) To pay to all lienholders or other persons to whom you have a
financial debt or other pecuniary obligation any amount greater than the
total amount of indemnity owed under the policy.
(d) If we have received the properly executed assignment of
indemnity form:
(1) Only one payment will be issued jointly in the names of all
assignees and you; and
(2) Any assignee will have the right to submit all notices and forms
as required by the policy.
17. 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, if the transferee is eligible for crop
insurance.
(a) We will not be liable for any more than the liability determined
in accordance with your policy that existed before the transfer
occurred.
(b) The transfer of coverage rights must be on our form and will not
be effective until approved by us in writing.
(c) Both you and the transferee are jointly and severally liable for
the payment of the premium and administrative fees.
(d) The transferee has all rights and responsibilities under this
policy consistent with the transferee's interest.
18. Other Insurance
(a) Nothing in this section prevents you from obtaining other
insurance not authorized under the Act. However, unless specifically
required by policy provisions, you must not obtain any other crop
insurance authorized under the Act on your share of the insured crop.
(b) If you cannot demonstrate that you did not intend to have more
than one policy in effect, you may be subject to the consequences
authorized under this policy, the Act, or any other applicable statute.
(c) If you can demonstrate that you did not intend to have more than
one policy in effect (For example, an application to transfer your
policy or written notification to an insurance provider that states you
want to purchase, or transfer, insurance and you want any other policies
for the crop canceled would demonstrate you did not intend to have
duplicate policies) and:
(1) One is an additional coverage policy and the other is a CAT
policy:
(i) The additional coverage policy will apply if both policies are
with the same insurance provider or, if not, both insurance providers
agree; or
(ii) The policy with the earliest date of application will be in
force if both insurance providers do not agree; or
(2) Both are additional coverage policies or both are CAT policies,
the policy with the earliest date of application will be in force and
the other policy will be void, unless both policies are with:
(i) The same insurance provider and the insurance provider agrees
otherwise; or
(ii) Different insurance providers and both insurance providers
agree otherwise.
19. Crops as Payment
You must not abandon any crop to us. We will not accept any crop as
compensation for payments due us.
20. Notices
(a) 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.
(1) Notices required to be given immediately may be by telephone or
in person and confirmed in writing.
(2) The time the notice is provided will be determined by the time
of our receipt of the written notice.
(3) If the date by which you are required to submit a report or
notice falls on Saturday, Sunday, or a 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.
(b) All policy provisions, notices, and communications required to
be sent by us to you will be:
(1) Provided by electronic means, unless:
(i) We do not have the ability to transmit such information to you
by electronic means; or
(ii) You elect to receive a paper copy of such information;
(2) Sent to the location specified in your records with your crop
insurance agent; and
[[Page 101]]
(3) Conclusively presumed to have been received by you.
21. Access to Insured Crop and Records, and Record Retention
(a) We, and any employee of USDA authorized to investigate or review
any matter relating to crop insurance (authorized employee of USDA),
have the right to examine the insured crop and all records related to
the insured crop and this policy, and any mediation, arbitration or
litigation involving the insured crop as often as reasonably required
during the record retention period.
(b) You must retain, and provide upon our request, or the request of
any authorized employee of USDA, complete records pertaining to the
planting, acres, share, replanting, inputs, production, harvesting and
disposition of the insured crop for a period of three years after the
end of the crop year or three years after the date of final payment of
indemnity, whichever is later. This requirement also applies to all such
records for acreage that is not insured.
(c) We, or any authorized employee of USDA, may extend the record
retention period beyond three years by notifying you of such extension
in writing.
(d) By signing the application for insurance authorized under the
Act or by continuing insurance for which you have previously applied,
you authorize us or USDA, or any person acting for us or USDA authorized
to investigate or review any matter relating to crop insurance, to
obtain records relating to the planting, acres, share, replanting,
inputs, production, harvesting, and disposition of the insured crop from
any person who may have custody of such records, including but not
limited to, FSA offices, banks, warehouses, gins, cooperatives,
marketing associations, and accountants. You must assist in obtaining
all records we or any authorized employee of USDA request from third
parties.
(e) Failure to provide access to the insured crop or the farm,
authorize access to the records maintained by third parties, or assist
in obtaining all such records will result in a determination that no
indemnity is due for the crop year in which such failure occurred.
[FCIC Policies]
22. Amounts Due Us
(a) Any amount illegally or erroneously paid to you or that is owed
to us but is delinquent may be recovered by us through offset by
deducting it from any loan or payment due you under any Act of Congress
or program administered by any United States Government Agency, or by
other collection action.
(b) Interest will accrue at the rate of 1.25 percent simple interest
per calendar month, or any part thereof, on any unpaid premium amount or
administrative fee due us. With respect to any premiums or
administrative fees owed, interest will start to accrue on the first day
of the month following the issuance of the notice by us, provided that a
minimum of 30 days have passed from the premium billing date specified
in the actuarial documents, provided a minimum of 30 days have passed
from the premium billing date.
(c) For the purpose of any other amounts due us, such as repayment
of indemnities found not to have been earned:
(1) Interest will start on the date that notice is issued to you for
the collection of the unearned amount;
(2) Amounts found due under this paragraph will not be charged
interest if payment is made within 30 days of issuance of the notice by
us;
(3) The amount will be considered delinquent if not paid within 30
days of the date the notice is issued by us;
(4) Penalties and interest will be charged in accordance with 31
U.S.C. 3717 and 4 CFR part 102; and
(5) The penalty for accounts more than 90 days delinquent is an
additional 6 percent per annum.
(d) 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 additional
6 percent 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.
(e) If we determine that it is necessary to contract with a
collection agency, refer the debt to government collection centers, the
Department of Treasury Offset Program, or to employ an attorney to
assist in collection, you agree to pay all the expenses of collection.
(f) All amounts paid will be applied first to expenses of collection
if any, second to the reduction of any penalties which may have been
assessed, then to reduction of accrued interest, and finally to
reduction of the principal balance.
[Reinsured policies]
22. Amounts Due Us
(a) Interest will accrue at the rate of 1.25 percent simple interest
per calendar month on any unpaid amount owed to us or on any unpaid
administrative fees owed to FCIC.
(1) For the purpose of premium amounts owed to us or administrative
fees owed to FCIC, interest will start to accrue on the first day of the
month following the issuance of the notice by us, provided that a
minimum of 30 days have passed from the premium billing date specified
in the actuarial
[[Page 102]]
documents, provided a minimum of 30 days have passed from the premium
billing date.
(2) We will collect any unpaid amounts owed to us and any interest
owed thereon and, prior to the termination date, we will collect any
administrative fees and interest owed thereon to FCIC. After the
termination date, FCIC will collect any unpaid administrative fees and
any interest owed thereon for any CAT policy and we will collect any
unpaid administrative fees and any interest owed thereon for additional
coverage policies.
(b) For the purpose of any other amounts due us, such as repayment
of indemnities found not to have been earned, interest will start to
accrue on the date that notice is issued to you for the collection of
the unearned amount.
(1) Amounts found due under this paragraph will not be charged
interest if payment is made within 30 days of issuance of the notice by
us.
(2) The amount will be considered delinquent if not paid within 30
days of the date the notice is issued by us.
(c) All amounts paid will be applied first to expenses of collection
(see subsection (d) of this section), if any, second to the reduction of
accrued interest, and then to the 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.
(e) The portion of the amounts owed by you for a policy authorized
under the Act that are owed to FCIC may be collected in part through
administrative offset from payments you receive from United States
government agencies in accordance with 31 U.S.C. chapter 37. Such
amounts include all administrative fees, and the share of the overpaid
indemnities and premiums retained by FCIC plus any interest owed
thereon.
[FCIC Policies]
23. Appeal, Reconsideration, and Administrative and Judicial Review
(a) All determinations required by the policy will be made by us.
All expected county yields and final county yields are calculated by us
in accordance with section 15. However, calculations of expected county
yields and final county yields are matters of general applicability.
(1) Any matter of general applicability is not subject to appeal
under 7 CFR part 400, subpart J or 7 CFR part 11.
(2) Your only remedy is judicial review but if you want to seek
judicial review of any determination by us that is a matter of general
applicability, you must request a determination of non-appealability
from the Director of the National Appeals Division in accordance with 7
CFR 11.6 before seeking judicial review.
(3) The timeframe to request a determination of non-appealability
from the Director of the National Appeals Division is not later than 30
days after the date the yields are published on the RMA website.
(b) If you disagree with our determinations:
(1) Except for determinations specified in section 23(b)(2), obtain
an administrative review in accordance with 7 CFR part 400, subpart J or
appeal in accordance with 7 CFR part 11; or
(2) For determinations regarding whether you have used good farming
practices, request reconsideration in accordance with the
reconsideration process established for this purpose and published at 7
CFR part 400, subpart J.
(c) If you fail to exhaust your administrative remedies under 7 CFR
part 11 or the reconsideration process for determinations of good
farming practices described in section 23(b)(2), as applicable, you will
not be able to resolve the dispute through judicial review.
(d) If reconsideration for good farming practices under 7 CFR part
400, subpart J or appeal under 7 CFR part 11 has been initiated within
the time frames specified in those sections and judicial review is
sought, any suit against us must be:
(1) Filed not later than one year after the date of the decision
rendered in the reconsideration process for good farming practices or
administrative review process under 7 CFR part 11; and
(2) Brought in the United States district court for the district in
which the insured farm involved in the decision is located.
(e) You may only recover contractual damages from us. Under no
circumstances can you recover any attorney fees or other expenses, or
any punitive, compensatory or any other damages from us in
administrative review, appeal or litigation.
[Reinsured policies]
23. Mediation, Arbitration, Appeal, Reconsideration, and Administrative
and Judicial Review
(a) All expected county yields and final county yields are
calculated by FCIC in accordance with section 15. However, calculations
of expected county yields and final county yields are matters of general
applicability.
(1) Any matter of general applicability is not subject to appeal
under 7 CFR part 400, subpart J or 7 CFR part 11.
(2) Your only remedy is judicial review but if you want to seek
judicial review of any FCIC determination that is a matter of general
applicability, you must request a determination of non-appealability
from the Director of the National Appeals Division in
[[Page 103]]
accordance with 7 CFR 11.6 before seeking judicial review.
(3) The timeframe to request a determination of non-appealability
from the Director of the National Appeals Division is not later than 30
days after the date the yields are published on RMA's website.
(b) With respect to good farming practices:
(1) We will make preliminary decisions regarding what constitutes a
good farming practice.
(i) If you disagree with our decision of what constitutes a good
farming practice you may request through us that FCIC review our
decision. Requests for FCIC review must be made within 30 days of the
postmark date on the written notice of the determination regarding good
farming practices.
(ii) You may not sue us for our decisions regarding whether good
farming practices were used by you. You must request a determination
from FCIC of what constitutes a good farming practice before filing any
suit against FCIC.
(2) If you do not agree with any determination made by FCIC
regarding what constitutes a good farming practice:
(i) You may request reconsideration by FCIC of this determination in
accordance with the reconsideration process established for this purpose
and published at 7 CFR part 400, subpart J; or
(ii) You may file suit against FCIC as follows:
(A) You are not required to request reconsideration from FCIC before
filing suit;
(B) Any suit must be brought against FCIC in the United States
district court for the district in which the insured acreage is located;
and
(C) Suit must be filed against FCIC not later than one year after
the date:
(1) Of the determination made by FCIC regarding what constitutes a
good farming practice; or
(2) Reconsideration is completed, if reconsideration was requested
under section 23(b)(2)(i).
(c) If you elect to bring suit against FCIC after seeking a
Director's Review in accordance with section 23(a), such suit must be
filed against FCIC in the United States district court for the district
in which the insured acreage is located not later than one year after
the date of the decision rendered by the Director. Under no
circumstances can you recover any punitive, compensatory or any other
damages from FCIC.
(d) With respect to any other determination under this policy:
(1) If you do not agree with any determination not covered by
sections 23(a) and (c), the disagreement may be resolved through
mediation. To resolve any dispute through mediation, you and we must
both:
(i) Agree to mediate the dispute;
(ii) Agree on a mediator; and
(iii) Be present or have a designated representative who has
authority to settle the case present, at the mediation.
(2) If the disagreement cannot be resolved through mediation, or you
and we do not agree to mediation, you must timely seek resolution
through arbitration in accordance with the rules of the American
Arbitration Association (AAA), unless otherwise stated in this
subsection or rules are established by FCIC for this purpose. Any
mediator or arbitrator with a familial, financial or other business
relationship to you or us, or our agent or loss adjuster, is
disqualified from hearing the dispute.
(3) If the dispute in any way involves a policy or procedure
interpretation, regarding whether a specific policy provision or
procedure is applicable to the situation, how it is applicable, or the
meaning of any policy provision or procedure, either you or we must
obtain an interpretation from FCIC in accordance with 7 CFR part 400,
subpart X or such other procedures as established by FCIC.
(i) Any interpretation by FCIC will be binding in any mediation or
arbitration.
(ii) Failure to obtain any required interpretation from FCIC will
result in the nullification of any agreement or award.
(iii) An interpretation by FCIC of a policy provision is considered
a determination that is a matter of general applicability. However,
before such interpretation may be challenged in the courts, you must
request a determination of non-appealability from the Director of the
National Appeals Division not later than 30 days after the date the
interpretation was published on RMA's website.
(4) Unless the dispute is resolved through mediation, the arbitrator
must provide to you and us a written statement describing the issues in
dispute, the factual findings, the determinations and the amount and
basis for any award and breakdown by claim for any award.
(i) The statement must also include any amounts awarded for
interest.
(ii) Failure of the arbitrator to provide such written statement
will result in the nullification of all determinations of the
arbitrator.
(iii) All agreements reached through settlement, including those
resulting from mediation, must be in writing and contain at a minimum a
statement of the issues in dispute and the amount of the settlement.
(5) Regardless of whether mediation is elected:
(i) You must initiate arbitration proceedings within 1 year of the
date we denied your claim or rendered the determination with which you
disagree, whichever is later;
[[Page 104]]
(ii) If you fail to initiate arbitration in accordance with section
23(d)(5)(i) and complete the process, you will not be able to resolve
the dispute through judicial review;
(iii) If arbitration has been initiated in accordance with section
23(d)(5)(i) and completed, and judicial review is sought, suit must be
filed not later than one year after the date the arbitration decision
was rendered; and
(iv) In any suit, if the dispute in any way involves a policy or
procedure interpretation, regarding whether a specific policy provision
or procedure is applicable to the situation, how it is applicable, or
the meaning of any policy provision or procedure, an interpretation must
be obtained from FCIC in accordance with 7 CFR part 400, subpart X or
such other procedures as established by FCIC. Such interpretation will
be binding on all parties.
(6) Any decision rendered in arbitration is binding on you and us
unless judicial review is sought in accordance with section
23(d)(5)(iii). Notwithstanding any provision in the rules of the AAA,
you and we have the right to judicial review of any decision rendered in
arbitration.
(e) In any mediation, arbitration, appeal, administrative review,
reconsideration or judicial process, the terms of this policy, the Act,
and the regulations published at 7 CFR chapter IV, including the
provisions of 7 CFR part 400, subpart P, are binding. Conflicts between
this policy and any state or local laws will be resolved in accordance
with section 27. If there are conflicts between any rules of the AAA and
the provisions of your policy, the provisions of your policy will
control.
(f) Except as provided in section 23(g), no award or settlement in
mediation, arbitration, appeal, administrative review or reconsideration
process or judicial review can exceed the amount of liability
established or which should have been established under the policy,
except for interest awarded in accordance with section 24.
(g) In a judicial review only, you may recover attorney fees or
other expenses, or any punitive, compensatory or any other damages from
us only if you obtain a determination from FCIC that we, our agent or
loss adjuster failed to comply with the terms of this policy or
procedures issued by FCIC and such failure resulted in you receiving a
payment in an amount that is less than the amount to which you were
entitled. Requests for such a determination should be addressed to the
following: USDA/RMA/Deputy Administrator for Compliance/Stop 0806, 1400
Independence Avenue, SW., Washington, DC 20250-0806.
24. Interest Limitations
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 final county
yield or final county revenue release date as specified in the
applicable Crop Provision.
(a) 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.
(b) 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.
25. 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.
26. Conformity to Food Security Act
Although your violation of a number of federal statutes, including
the Act, may cause cancellation, termination, or voidance of your
insurance contract, you should be specifically aware that your policy
will be canceled if you are determined to be ineligible to receive
benefits under the Act due to violation of the controlled substance
provisions (title XVII) of the Food Security Act of 1985 (Pub. L. 99-
198) and the regulations promulgated under the Act by USDA.
(a) Your insurance policy will be canceled if you are determined, by
the appropriate Agency, to be in violation of these provisions.
(b) We will recover any and all monies paid to you or received by
you during your period of ineligibility, and your premium will be
refunded, less an amount for expenses and handling equal to 20 percent
of the premium paid or to be paid by you.
27. Applicability of State and Local Statutes
If the provisions of this policy conflict with statutes of the State
or locality in which this policy is issued, the policy provisions will
prevail. State and local laws and regulations in conflict with federal
statutes, this policy, and the applicable regulations do not apply to
this policy.
28. Concealment, Misrepresentation, or Fraud
(a) If you have falsely or fraudulently concealed the fact that you
are ineligible to receive benefits under the Act or if you or anyone
assisting you has intentionally concealed or misrepresented any material
fact relating to this policy:
(1) This policy will be voided; and
[[Page 105]]
(2) You may be subject to remedial sanctions in accordance with 7
CFR part 400, subpart R.
(b) Even though the policy is void, you will still be required to
pay 20 percent of the premium that you would otherwise be required to
pay to offset costs incurred by us in the service of this policy. If
previously paid, the balance of the premium will be returned.
(c) Voidance of this policy will result in you having to reimburse
all indemnities paid for the crop year in which the voidance was
effective.
(d) Voidance will be effective on the first day of the insurance
period for the crop year in which the act occurred and will not affect
the policy for subsequent crop years unless a violation of this section
also occurred in such crop years.
(e) If you willfully and intentionally provide false or inaccurate
information to us or FCIC, or you fail to comply with a requirement of
FCIC, in accordance with 7 CFR part 400, subpart R, FCIC may impose on
you:
(1) A civil fine for each violation in an amount not to exceed the
greater of:
(i) The amount of the pecuniary gain obtained as a result of the
false or inaccurate information provided or the noncompliance with a
requirement of this title; or
(ii) $10,000; and
(2) A disqualification for a period of up to 5 years from receiving
any monetary or nonmonetary benefit provided under each of the
following:
(i) Any crop insurance policy offered under the Act;
(ii) The Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7333 et seq.);
(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.);
(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
seq.);
(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.);
(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.);
(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921
et seq.); and
(viii) Any federal law that provides assistance to a producer of a
commodity affected by a crop loss or a decline in the prices of
commodities.
29. Multiple Benefits
(a) If you are eligible to receive an indemnity under an additional
coverage plan of insurance and are also eligible to receive benefits for
the same loss under any other USDA program, you may receive benefits
under both programs, unless specifically limited by the crop insurance
contract or by law.
(b) Any amount received for the same loss from any USDA program, in
addition to the crop insurance payment, will not exceed the difference
between the crop insurance payment and the amount of the loss, unless
otherwise provided by law. The amount of loss is the difference between
the total value of the insured crop before the loss and the total value
of the insured crop after the loss.
(c) FSA or another USDA agency, as applicable, will determine and
pay the additional amount due you for any applicable USDA program, after
first considering the amount of any crop insurance indemnity.
30. Examples
The following are examples of the calculation of the premium, amount
of insurance and indemnity for each of the three plans of insurance
under ARPI. Your information will likely be different and you should
consult the actuarial documents in your county and the policy
information. The following facts are for illustration purposes only and
apply to each of the examples.
Producer A farms 100 acres in county X and has a 100 percent share,
or 1.000, in those acres. From the actuarial documents in county X,
Producer A elects the 75 percent coverage level and a protection factor
of 110 percent or 1.10. The actuarial documents in county X also show
that the expected county yield is 141.4 bushels per acre, the projected
price is $4.00, and the expected county revenue is $565.60. The subsidy
factor for the 75 percent coverage level is .55 for revenue coverage and
.59 for yield coverage. The loss limit factor is 18 percent or .18. At
the end of the insurance period, for county X, FCIC releases a harvest
price of $4.57 and a final county yield for county X of 75.0 bushels.
The premium rate is based on the published volatility factor and for
this example is .0166 for Area Revenue Protection, .0146 for Area
Revenue Protection with Harvest Price Exclusion, and .0116 for Area
Yield Protection.
Area Revenue Protection example:
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times protection
factor equals dollar amount of insurance
141.4 bushels x $4.00 x 1.1 = $622.16 dollar amount of insurance per
acre
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times share
equals policy protection
$622.16 x 100.0 x 1.000 = $62,216 policy protection
Step 3: Calculate the Total Premium
Formula: Policy protection times premium rate equals total premium
$62,216 x .0166 = $1,033 total premium
[[Page 106]]
Step 4: Calculate the Subsidy amount
Formula: Total premium times subsidy factor equals subsidy
$1,033 x .55 = $568 subsidy
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy equals producer premium
$1,033 - $568 = $465 producer premium
Step 6: Calculate the Final Policy Protection
Formula: Expected county yield times (greater of projected price or
harvest price) times protection factor times acres times share equals
Final Policy Protection
141.4 bushels x $4.57 x 1.10 x 100.0 x 1.000 = $71,082 final policy
protection
Step 7: Calculate the Final County Revenue
Formula: Final county yield times harvest price equals final county
revenue
75.0 bushels x $4.57 = $342.75 final county revenue
Step 8: Calculate the Trigger Revenue
Formula: Expected county yield times (greater of projected price or
harvest price) times coverage level equals trigger revenue
141.4 bushels x $4.57 x .75 = $484.65 trigger revenue
Step 9: Calculate the Payment Factor
Formula: (Trigger revenue minus final county revenue) divided by
(trigger revenue minus (expected county yield times the greater of
projected or harvest price times loss limit factor)) equals payment
factor
($484.65 - $342.75) / ($484.65-(141.4 x $4.57 x .18)) = .385 payment
factor
Step 10: Calculate the Indemnity
Formula: Final policy protection times payment factor equals indemnity
$71,082 x .385 = $27,367 indemnity
Area Revenue Protection with Harvest Price Exclusion example:
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times protection
factor equals dollar amount of insurance
141.4 bushels x $4.00 x 1.10 = $622.16 dollar amount of insurance per
acre
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times share
equals policy protection
$622.16 x 100.0 x 1.000 = $62,216 policy protection
Step 3: Calculate the Total Premium
Formula: Policy protection times rate equals total premium
$62,216 x .0146 rate = $908 total premium
Step 4: Calculate the Subsidy Amount
Formula: Total premium times subsidy factor equals subsidy
$908 x .55 = $499 subsidy
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy equals producer premium
$908 - $499 = $409 producer premium
Step 6: Calculate the Final Policy Protection
Use the policy protection amount calculated at the beginning of the
insurance period in Step 2
$62,216 policy protection
Step 7: Calculate the Final County Revenue
Formula: Final county yield times harvest price equals final county
revenue
75.0 bushels x $4.57 = $342.75 final county revenue
Step 8: Calculate the Trigger Revenue
Formula: Expected county yield times projected price times coverage
level equals trigger revenue
141.4 bushels x $4.00 x .75 = $424.20 trigger revenue
Step 9: Calculate the Payment Factor
Formula: (Trigger revenue minus final county revenue) divided by
(trigger revenue minus (expected county yield times projected price
times loss limit factor)) equals payment factor
($424.20 - $342.75) / ($424.20 - (141.4 x $4.00 x .18)) = .253
Step 10: Calculate the Indemnity
Formula: Final policy protection times payment factor equals indemnity
$62,216 x .253 = $15741 indemnity
Area Yield Protection example:
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times protection
factor equals dollar amount of insurance
141.4 bushels x $4.00 x 1.10 = $622.16 dollar amount of insurance per
acre
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times share =
policy protection
$622.16 x 100.0 x 1.000 = $62,216 policy protection
[[Page 107]]
Step 3: Calculate the Total Premium
Formula: policy protection times premium rate equals total premium
$62,216 x .0116 rate = $722 total premium
Step 4: Calculate the Subsidy amount
Formula: Total premium times subsidy factor equals subsidy
$722 x .59 subsidy factor = $426 subsidy
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy equals producer premium
$722 - $426 = $296 producer premium
Step 6: Calculate the Final Policy Protection
Use the policy protection amount calculated at the beginning of the
insurance period in Step 2
$62,216 policy protection
Step 7: Calculate the Trigger Yield
Formula: Expected county yield times coverage level equals trigger yield
141.4 bushels times .75 = 106.1 bushels
Step 8: Calculate the Payment Factor
Formula: (Trigger yield minus final county yield) divided by (trigger
yield minus (expected county yield times loss limit factor)) equals
payment factor
(106.1 bushels - 75.0 bushels) / (106.1 bushels - (141.4 bushels x .18))
= .386
Step 9: Calculate the Indemnity
Formula: Final policy protection times payment factor equals indemnity
$62,216 times .386 = $24,015 Indemnity
31. Correction of Errors.
(a) In addition to any other corrections allowed in your policy
subject to section 31(b), we may correct:
(1) Within 60 days after the sales closing date, any incorrect
information on your application or provided by the sales closing date,
including identification numbers for you and any person with a
substantial beneficial interest in you, to ensure that the eligibility
information is correct and consistent with information reported by you
to any USDA agency;
(2) Within 30 days after the acreage reporting date, information
reported to reconcile errors in the information with correct information
that has been determined by any USDA agency;
(3) Within 30 days of any subsequent correction of data by FSA,
erroneous information corrected as a result of verification of
information; and
(4) At any time, any incorrect information if the incorrect
information was caused by electronic transmission errors by us or errors
made by any agency within USDA in transmitting the information provided
by you for purposes of other USDA programs.
(b) Corrections may be made but will not take effect for the current
crop year if the correction would allow you to:
(1) Avoid ineligibility requirements for insurance or obtain a
disproportionate benefit under the crop insurance program or any related
program administered by the Secretary;
(2) Obtain, enhance, or increase an insurance guarantee or indemnity
if a cause of loss exists or has occurred before any correction has been
made, or avoid premium owed if no loss is likely to occur; or
(3) Avoid an obligation or requirement under any Federal or State
law.
[78 FR 38507, June 26, 2013, as amended at 79 FR 2083, Jan. 13, 2014; 79
FR 37162, July 1, 2014; 80 FR 73639, Nov. 25, 2015; 81 FR 42473, June
30, 2016; 82 FR 55730, Nov. 24, 2017; 82 FR 58707, Dec. 14, 2017; 84 FR
30861, June 28, 2019; 85 FR 38754, June 29, 2020; 85 FR 76425, Nov. 30,
2020; 86 FR 34610, June 30, 2021; 86 FR 42681, Aug. 5, 2021; 86 FR
67836, Nov. 30, 2021; 87 FR 38890, June 30, 2022]
Sec. 407.10 Area risk protection insurance for barley.
The barley crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Barley Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the barley for grain.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, land on which seed is
initially spread onto the soil surface by any method and which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth will also be considered planted.
2. Insured Crop
The insured crop will be all barley:
(a) Grown on insurable acreage in the county listed on the accepted
application;
(b) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(c) Planted with the intent to be harvested;
(d) Not planted into an established grass or legume;
(e) Not interplanted with another crop; and
[[Page 108]]
(f) Not planted as a nurse crop, unless seeded at the normal rate
and intended for harvest as grain.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and final county yields will be determined prior to
April 1 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 1
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Kit Carson, Lincoln, Elbert, El Paso, Pueblo, Las September 30............. June 30.
Animas Counties, Colorado and all Colorado
Counties south and east thereof; all New Mexico
counties except Taos County; Kansas; Missouri;
Illinois; Indiana; Ohio; Pennsylvania; New York;
Massachusetts; and all states south and east
thereof.
Arizona; California; and Clark and Nye Counties, October 31............... June 30.
Nevada.
All Colorado counties except Kit Carson, Lincoln, March 15................. November 30.
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, and (except) Kansas,
Missouri, Illinois, Indiana, Ohio, Pennsylvania,
New York, and Massachusetts and all States south
and east thereof.
----------------------------------------------------------------------------------------------------------------
Sec. 407.11 Area risk protection insurance for corn.
The corn crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Corn Crop Insurance Provisions
1. Definitions
Harvest. Combining or picking corn for grain or cutting for hay,
silage, fodder, or earlage.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, corn seed that is broadcast
and subsequently mechanically incorporated will not be considered
planted.
2. Insured Crop
(a) The insured crop will be all field corn that is:
(1) Yellow dent or white corn, including mixed yellow and white,
waxy or high-lysine corn, high-oil corn blends containing mixtures of at
least 90 percent high yielding yellow dent female plants with high-oil
male pollinator plants, or commercial varieties of high-protein hybrids.
(2) Grown on insurable acreage in the county listed on the accepted
application;
(3) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(4) Planted with the intent to be harvested; and
(5) Not planted into an established grass or legume or interplanted
with another crop.
(b) Corn other than that specified in section 2(a)(1) including but
not limited to high-amylose, high-oil or high-protein (except as
authorized in section 2(a)(1)), flint, flour, hybrid seed corn, Indian,
or blue corn, or a variety genetically adapted to provide forage for
wildlife or any other open pollinated corn may be insurable under this
policy if specified in the Special Provisions:
(1) The insurability requirements in 2(a) apply to this other corn
and additional requirements for insurability may be stated for this
other corn in the Special Provisions; and
(2) This other corn will be insured using the yields, rates, and
prices for field corn unless otherwise specified in the actuarial
documents.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and final county yields will be determined prior to
April 16 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 16
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
[[Page 109]]
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, January 31............... November 30.
Karnes, Goliad, Victoria, and Jackson Counties,
Texas, and all Texas counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves, Loving, February 15.............. November 30.
Winkler, Ector, Upton, Reagan, 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, Crockett, Sutton, Kimble, Gillespie,
Blanco, Comal, Guadalupe, Gonzales, De Witt,
Lavaca, Colorado, Wharton, and Matagorda Counties,
Texas.
Alabama; Arizona; Arkansas; California; Florida; February 28.............. November 30.
Georgia; Louisiana; Mississippi; Nevada; North
Carolina; South Carolina.
All other Texas counties and all other states...... March 15................. November 30.
----------------------------------------------------------------------------------------------------------------
Sec. 407.12 Area risk protection insurance for cotton.
The cotton crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Cotton Crop Insurance Provisions
1. Definitions
Harvest. Removal of the seed cotton from the stalk.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, cotton seed broadcast and
subsequently mechanically incorporated will not be considered planted.
2. Insured Crop
(a) The insured crop will be all upland cotton:
(1) Grown on insurable acreage in the county listed on the accepted
application;
(2) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(3) Planted with the intent to be harvested.
(b) That is not (unless allowed by the Special Provisions):
(1) Colored cotton lint;
(2) Planted into an established grass or legume;
(3) Interplanted with another spring planted crop;
(4) Grown on acreage in 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 50 percent of the small grain plants reach the
heading stage.
(c) Cotton other than upland cotton may be insurable under this
policy if specified in the Special Provisions:
(1) The insurability requirements in 2(a) apply to other cotton and
additional requirements for insurability may be stated for other cotton
in the Special Provisions; and
(2) Other cotton will be insured using the yields, rates, and prices
for cotton unless otherwise specified in the actuarial documents.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and final county yields will be determined prior to July
16 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to August 15
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, January 31............... November 30.
Karnes, Goliad, Victoria, and Jackson Counties,
Texas, and all Texas counties lying south thereof.
[[Page 110]]
Alabama; Arizona; Arkansas; California; Florida; February 28.............. November 30.
Georgia; Louisiana; Mississippi; Nevada; North
Carolina; South Carolina; El Paso, Hudspeth,
Culberson, Reeves, Loving, Winkler, Ector, Upton,
Reagan, 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, Crockett,
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................. November 30.
----------------------------------------------------------------------------------------------------------------
Sec. 407.13 Area risk protection insurance for forage.
The forage crop insurance provisions for Area Risk Protection
Insurance for the 2017 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Forage Crop Insurance Provisions
1. Definitions
Forage. Planted perennial alfalfa, perennial red clover, perennial
grasses, or a mixture thereof, or other species as shown in the
actuarial documents.
Harvest. Removal of the forage from the field. Harvest does not
include grazing.
2. Insured Crop
The insured crop will be the forage types shown on the actuarial
documents:
(a) Grown on insurable acreage in the county listed on the accepted
application;
(b) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(c) Intended for harvest; and
(d) Not grown with another crop.
3. Insurable Acreage
In addition to section 5 of the Area Risk Protection Insurance Basic
Provisions, acreage seeded to forage after July 1 of the previous crop
year will not be insurable.
4. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county yields will be determined prior to May 1 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 31
following the crop year and following the determination of the final
county yield.
5. Program Dates
September 30 is the cancellation and termination date for all
states, unless the date is specified differently in the Special
Provisions. The contract change date is June 30 for all states, unless
the date is specified differently in the Special Provisions.
6. Report of Acreage
In addition to section 8(e)(2) of the Area Risk Protection Insurance
Basic Provisions, regarding the ability to revise an acreage report you
have submitted to us, we may provide you consent to revise your acreage
report to indicate acreage damaged by winterkill that was not harvested
(no cutting taken) as uninsurable acreage. You must submit a revised
acreage report on or before the date specified in the Special
Provisions.
[78 FR 38507, June 26, 2013, as amended at 80 FR 73639, Nov. 25, 2015]
Sec. 407.14 Area risk protection insurance for peanuts
The peanut crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Peanut Crop Insurance Provisions
1. Definitions
Harvest. The completion of digging and threshing and removal of
peanuts from the field.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, peanuts must initially be
planted in a row pattern which permits mechanical cultivation, or that
allows the peanuts to be cared for in a manner recognized by
agricultural experts as a good farming practice. Acreage planted in any
[[Page 111]]
other manner will not be insurable unless otherwise provided by the
Special Provisions.
2. Insured Crop
(a) The insured crop will be all peanuts:
(1) Grown on insurable acreage in the county listed on the accepted
application;
(2) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(3) Planted with the intent to be harvested as peanuts; and
(4) Not planted into an established grass or legume or interplanted
with another crop.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and or final county yields will be determined prior to
June 16 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to July 16 and
following the determination of the final county revenue or the final
county yield, as applicable.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak, McMullen, January 15............... November 30.
La Salle, and Dimmit Counties, Texas and all Texas
Counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves, Loving, February 28.............. November 30.
Winkler, Ector, Upton, Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch, San Saba, Mills,
Hamilton, Bosque, Johnson, Tarrant, Wise, and
Cooke Counties, Texas, and all Texas counties
south and east thereof; and all other states
except New Mexico, Oklahoma, and Virginia.
New Mexico; Oklahoma; Virginia; and all other Texas March 15................. November 30.
Counties.
----------------------------------------------------------------------------------------------------------------
Sec. 407.15 Area risk protection insurance for grain sorghum.
The grain sorghum crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Grain Sorghum Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the sorghum for grain or cutting for
hay, silage, or fodder.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, sorghum seed broadcast and
subsequently mechanically incorporated will not be considered planted.
2. Insured Crop
(a) The insured crop will be all sorghum excluding hybrid sorghum
seed:
(1) Grown on insurable acreage in the county listed on the accepted
application;
(2) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(3) Planted with the intent to be harvested; and
(4) Not planted into an established grass or legume or interplanted
with another crop.
(b) Other sorghum including hybrid sorghum seed may be insurable
under this policy if specified in the Special Provisions:
(1) The insurability requirements in 2(a) apply to these other
sorghum and additional requirements for insurability may be stated for
these crops in the Special Provisions; and
(2) This other sorghum will be insured using the yields, rates, and
prices for sorghum unless otherwise specified in the actuarial
documents.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and final county yields will be determined prior to
April 16 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 16
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
[[Page 112]]
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, January 31............... November 30.
Karnes, Goliad, Victoria, and Jackson Counties,
Texas, and all Texas counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves, Loving, February 15.............. November 30.
Winkler, Ector, Upton, Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch, San Saba, Mills,
Hamilton, Bosque, Johnson, Tarrant, Wise, and
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.
Alabama; Arizona; Arkansas; California; Florida; February 28.............. November 30.
Georgia; Louisiana; Mississippi; Nevada; North
Carolina; and South Carolina.
All other Texas counties and all other states...... March 15................. November 30.
----------------------------------------------------------------------------------------------------------------
Sec. 407.16 Area risk protection insurance for soybean.
The soybean crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Soybean Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the soybeans.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, land on which seed is
initially spread onto the soil surface by any method and which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth, will also be considered planted, unless
specified otherwise in the Special Provisions.
2. Insured Crop
The insured crop will be all soybeans:
(a) Grown on insurable acreage in the county listed on the accepted
application;
(b) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(c) Planted with the intent to be harvested; and
(d) Not planted into an established grass or legume or interplanted
with another crop.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions final
county revenues and final county yields will be determined prior to
April 16 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 16
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak, McMullen, January 31............... November 30.
La Salle, and Dimmit Counties, Texas and all Texas
counties lying south thereof.
Alabama; Arizona; Arkansas; California; Florida; February 28.............. November 30.
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, and 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 states...... March 15................. November 30.
----------------------------------------------------------------------------------------------------------------
Sec. 407.17 Area risk protection insurance for wheat.
The wheat crop insurance provisions for Area Risk Protection
Insurance for the 2014 and succeeding crop years are as follows:
[[Page 113]]
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Wheat Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the wheat for grain.
Planted acreage. In addition to the definition contained in the Area
Risk Protection Insurance Basic Provisions, land on which seed is
initially spread onto the soil surface by any method and which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth will also be considered planted.
2. Insured Crop
The insured crop will be all wheat:
(a) Grown on insurable acreage in the county listed on the accepted
application;
(b) Properly planted by the final planting date and reported on or
before the acreage reporting date;
(c) Planted with the intent to be harvested;
(d) Not planted into an established grass or legume;
(e) Not interplanted with another crop; and
(f) Not planted as a nurse crop, unless seeded at the normal rate
and intended for harvest as grain.
3. Payment Dates
(a) Unless otherwise specified in the Special Provisions the final
county revenues and final county yields will be determined prior to
April 1 following the crop year.
(b) If an indemnity is due, unless otherwise specified in the
Special Provisions we will issue any payment to you prior to May 1
following the crop year and following the determination of the final
county revenue or the final county yield, as applicable.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
All Colorado counties except Alamosa, Conejos, September 30............. June 30.
Costilla, Rio Grande, and Saguache; all Montana
counties except Daniels and Sheridan Counties; all
South Dakota counties except Corson, Walworth,
Edmonds, Faulk, Spink, Beadle, Kingsbury, Miner,
McCook, Turner, and Yankton Counties and all South
Dakota counties east thereof; all Wyoming counties
except Big Horn, Fremont, Hot Springs, Park, and
Washakie Counties; and all other states except
Alaska, Arizona, California, Maine, Minnesota,
Nevada, New Hampshire, North Dakota, Utah, and
Vermont.
Arizona; California; Nevada; and Utah.............. October 31............... June 30
Alaska; Alamosa, Conejos, Costilla, Rio Grande, and March 15................. November 30.
Saguache Counties, Colorado; Maine; Minnesota;
Daniels and Sheridan Counties, Montana; New
Hampshire; North Dakota; Corson, Walworth,
Edmunds, Faulk, Spink, Beadle, Kingsbury, Miner,
McCook, Turner, and Yankton Counties, South
Dakota, and all South Dakota counties east
thereof; Vermont; and Big Horn, Fremont, Hot
Springs, Park, and Washakie Counties, Wyoming.
----------------------------------------------------------------------------------------------------------------
PARTS 408 411 [RESERVED]
PART 412_PUBLIC INFORMATION_FREEDOM OF INFORMATION--Table of Contents
Sec.
412.1 General statement.
412.2 Public inspection and copying.
412.3 Index.
412.4 Requests for records.
412.5 Appeals.
412.6 Timing of responses to requests.
Authority: 5 U.S.C. 552 and 7 U.S.C. 1506.
Source: 62 FR 67694, Dec. 30, 1997, unless otherwise noted.
Sec. 412.1 General statement.
This part is issued in accordance with the regulations of the
Secretary of Agriculture published at 7 CFR 1.1-1.23, and appendix A,
implementing the Freedom of Information Act (5 U.S.C. 552). The
Secretary's regulations, as implemented by this part, and the Risk
Management Agency (RMA) govern availability of records of the Federal
Crop Insurance Corporation (FCIC) as administration of the crop
insurance program for FCIC.
Sec. 412.2 Public inspection and copying.
(a) Members of the public may request access to the information
specified in Sec. 412.2(d) for inspection and copying.
(b) To obtain access to specified information, the public should
submit a written request, in accordance with 7
[[Page 114]]
CFR 1.6, to the Appeals, Litigation and Legal Liaison Staff, Risk
Management Agency, United States Department of Agriculture, 1400
Independence Avenue, SW, STOP 0807, room 6618-S, Washington, DC 20250-
0807, from 9:00 a.m.-4:00 pm., EDT Monday through Friday, except
holidays.
(c) When the information requested is not located at the office of
the Appeals, Litigation and Legal Liaison Staff, the Appeals, Litigation
and Legal Liaison Staff will direct the request to the appropriate
office where the information can be obtained. The requester will be
informed that the request has been forwarded to the appropriate office.
(d) FCIC will make available for inspection and copying, unless
otherwise exempt from publication under sections 552(a)(2)(C) and
552(b):
(1) Final opinions, including concurring and dissenting opinions and
orders made in the adjudication of cases; and
(2) Those statements of policy and interpretations that have been
adopted by FCIC and RMA and are not published in the Federal Register;
and
(3) Administrative staff manuals and instructions to staff that
affect a member of the public.
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. RMA and FCIC will maintain a current index
providing identifying information for the public as to any material
issued, adopted, or promulgated by the Agency since July 4, 1967, and
required by section 552(a)(2). Pursuant to the Freedom of Information
Act provisions, RMA and FCIC have 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 at the address stated in
Sec. 412.2(b).
Sec. 412.4 Requests for records.
The Director of the Appeals, Litigation and Legal Liaison staff, RMA
located at the above stated address, is the person authorized to receive
Freedom of Information Act and to determine whether to grant or deny
such requests in accordance with 7 CFR 1.8.
Sec. 412.5 Appeals.
Any person whose request under Sec. 412.4 is denied shall have the
right to appeal such denial. This appeal shall be submitted in
accordance with 7 CFR 1.13 and addressed to the Manager, Federal Crop
Insurance Corporation, United States Department of Agriculture, 1400
Independence Avenue, SW., STOP 0807, room 6618-S, Washington, DC 20250-
0807.
Sec. 412.6 Timing of responses to requests.
(a) In general, FCIC will respond to requests according to their
order of receipt.
(b) Existing responsive documents or information may be maintained
in RMA's field offices. Therefore, extra time may be necessary to search
and collect the documents.
PARTS 413 456 [RESERVED]
PART 457_COMMON CROP INSURANCE REGULATIONS--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.
457.6 [Reserved]
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 provisions.
457.102 Wheat or barley winter coverage endorsement.
457.103 [Reserved]
457.104 Cotton crop insurance provisions.
457.105 Extra long staple cotton crop insurance provisions.
457.106 Texas citrus tree 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.
[[Page 115]]
457.111 Pear crop insurance provisions.
457.112 Hybrid sorghum seed crop insurance provisions.
457.113 Coarse grains crop insurance provisions.
457.114-457.115 [Reserved]
457.115 Nursery frost, freeze, and cold damage exclusion option.
457.116 Sugarcane crop insurance provisions.
457.117 Forage production crop insurance provisions.
457.118 [Reserved]
457.119 Texas citrus fruit crop insurance provisions.
457.120 [Reserved]
457.121 Arizona-California citrus crop insurance provisions.
457.122 Walnut crop insurance provisions.
457.123 Almond crop insurance provisions.
457.124 Raisin crop insurance provisions.
457.125 Safflower crop insurance provisions.
457.126 Popcorn crop insurance provisions.
457.127 [Reserved]
457.128 Guaranteed production plan of fresh market tomato crop insurance
provisions.
457.129 Fresh market sweet corn crop insurance provisions.
457.130 Madacamia tree crop insurance provisions.
457.131 Macadamia nut crop insurance provisions.
457.132 Cranberry crop insurance provisions.
457.133 Prune crop insurance provisions.
457.134 Peanut crop insurance provisions.
457.135 Onion crop insurance provisions.
457.136 Tobacco crop insurance provisions.
457.137 Green pea crop insurance provisions.
457.138 Grape crop insurance provisions.
457.139 Fresh market tomato (dollar plan) crop insurance provisions.
457.140 Dry pea crop insurance provisions.
457.141 Rice crop insurance provisions.
457.142 Northern potato crop insurance provisions.
457.143 Northern potato crop insurance--quality endorsement.
457.144 Northern potato crop insurance--processing quality endorsement.
457.145 Northern potato crop insurance--certified seed endorsement.
457.146 Northern potato crop insurance--storage coverage endorsement.
457.147 Central and Southern potato crop insurance provisions.
457.148 Fresh market pepper crop insurance provisions.
457.149 Table grape crop insurance provisions.
457.150 Dry bean crop insurance provisions.
457.151 Forage seeding crop insurance provisions.
457.152 Hybrid seed corn crop insurance provisions.
457.153 Peach crop insurance provisions.
457.154 Processing sweet corn crop insurance provisions.
457.155 Processing bean crop insurance provisions.
457.156-457.157 [Reserved]
457.158 Apple crop insurance provisions.
457.159 Stonefruit crop insurance provisions.
457.160 Processing tomato crop insurance provisions.
457.161 Canola and rapeseed crop insurance provisions.
457.162 Nursery crop insurance provisions.
457.163 Nursery peak inventory endorsement.
457.164 Nursery rehabilitation endorsement.
457.165 Millet crop insurance provisions.
457.166 Blueberry crop insurance provisions.
457.167 Pecan revenue crop insurance provisions.
457.168 Mustard crop insurance provisions.
457.169 Mint crop insurance provisions.
457.170 Cultivated wild rice crop insurance provisions.
457.171 Cabbage crop insurance provisions.
457.172 Coverage Enhancement Option.
457.173 Florida Avocado crop insurance provisions.
457.174 Forage Seed crop insurance provisions.
457.175 California avocado crop insurance provisions.
457.176 Cultivated clam crop insurance provisions.
Authority: 7 U.S.C. 1506(l), 1506(o).
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 companies reinsured by the
Federal Crop Insurance Corporation (FCIC) that offer contracts
containing the
[[Page 116]]
same terms and conditions as the contract set out in this part. These
contracts are clearly identified as being reinsured by FCIC. FCIC may
offer the contract for the catastrophic level of coverage contained in
this part and part 402 directly to the insured through local offices of
the Department of Agriculture only if the Secretary determines that the
availability of local agents is not adequate. Those contracts are
specifically identified as being offered by FCIC.
(c) Except as specified in the Crop Provisions, the Catastrophic
Risk Protection Endorsement (part 402 of this chapter) and part 400,
subpart T of this chapter, no person may have in force more than one
contract on the same crop for the same crop year in the same county.
(d) Except as specified in paragraph (c) of this section, if a
person has more than one contract authorized under the Act that provides
coverage for the same loss 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
multiple contracts of insurance were without the fault of the person.
(1) If the multiple contracts of insurance are shown to be without
the fault of the person and:
(i) One contract is an additional coverage policy and the other
contract is a Catastrophic Risk Protection policy, the additional
coverage policy will apply if both policies are with the same insurance
provider, or if not, both insurance providers agree, and the
Catastrophic Risk Protection policy will be canceled (If the insurance
providers do not agree, the policy with the earliest date of application
will be in force and the other contract will be canceled); or
(ii) Both contracts are additional coverage policies or both are
Catastrophic Risk Protection policies, the contract with the earliest
signature date on the application will be valid and the other contract
on that crop in the county for that crop year will be canceled, unless
both policies are with the same insurance provider and the insurance
provider agrees otherwise or both policies are with different insurance
providers and both insurance providers agree otherwise.
(2) No liability for any indemnity, prevented planting payment,
replanting payment or premium will attach to the contracts canceled as
specified in paragraphs (d)(1)(i) and (ii) of this section.
(e) 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 24).
(f) 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.
(g) 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; 62
FR 65154, Dec. 10, 1997; 63 FR 66712, Dec. 3, 1998; 69 FR 48738, Aug.
10, 2004]
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
[[Page 117]]
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 number 0563-0053.
[62 FR 65154, Dec. 10, 1997]
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 [Reserved]
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 Corporation. 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, except as provided in the policy. The forms
referred to in the contract are available at the offices of the crop
insurance agent.
[56 FR 1351, Jan. 14, 1991, as amended at 69 FR 48739, Aug. 10, 2004]
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) FCIC or the reinsured company may reject or discontinue the
acceptance of applications in any county or of any individual
application upon FCIC's determination that the insurance risk is
excessive.
Department of Agriculture
Federal Crop Insurance Corporation
[or policy issuing company name]
Common Crop Insurance Policy
(This is a continuous policy. Refer to section 2.)
FCIC Policies
This is an insurance policy issued by the Federal Crop Insurance
Corporation (FCIC). The provisions of the policy may not be waived or
modified in any way by us, your insurance agent or any employee of USDA
unless the policy specifically authorizes a waiver or modification by
written agreement. FCIC procedures (handbooks, manuals, memoranda, and
bulletins), published on RMA's website at www.rma.usda.gov or a
successor website will be used in the administration of this policy,
including the adjustment of any loss or claim submitted under this
policy.
Throughout this policy, ``you'' and ``your'' refer to the named
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.
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 there is a conflict
between the Act, the regulations in 7 CFR chapter IV, and FCIC
procedures, the order of precedence is: (1) The Act; (2) the
regulations; and (3) FCIC procedures. If there is a conflict between the
policy provisions in 7 CFR part 457 and the administrative regulations
in 7 CFR part 400, the policy provisions in 7 CFR part 457 control. If a
conflict exists among the policy provisions, the order of precedence is:
(1) The Catastrophic Risk Protection Endorsement, as applicable; (2) the
Special Provisions; (3) the Commodity Exchange Price
[[Page 118]]
Provisions, as applicable; (4) the Crop Provisions; and (5) these Basic
Provisions.
Reinsured Policies
This insurance policy is reinsured by the Federal Crop Insurance
Corporation (FCIC) under the provisions of the Federal Crop Insurance
Act (Act) (7 U.S.C. 1501-1524). All provisions of the policy and rights
and responsibilities of the parties are specifically subject to the Act.
The provisions of the policy may not be waived or varied in any way by
us, our insurance agent or any other contractor or employee of ours, or
any employee of USDA unless the policy specifically authorizes a waiver
or modification by written agreement. We will use FCIC procedures
(handbooks, manuals, memoranda and bulletins), published on RMA's
website at www.rma.usda.gov or a successor website, in the
administration of this policy, including the adjustment of any loss or
claim submitted under this policy. In the event that we cannot pay your
loss because we are insolvent or are otherwise unable to perform our
duties under our reinsurance agreement with FCIC, your claim will be
settled in accordance with the provisions of this policy and FCIC will
be responsible for any amounts owed. No state guarantee fund will be
liable for your loss.
Throughout this policy, ``you'' and ``your'' refer to the named
insured shown on the accepted application and ``we,'' ``us,'' and
``our'' refer to the insurance company providing 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 there is a conflict
between the Act, the regulations in 7 CFR chapter IV, and FCIC
procedures, the order of precedence is: (1) The Act; (2) the
regulations; and (3) FCIC procedures. If there is a conflict between the
policy provisions in 7 CFR part 457 and the administrative regulations
in 7 CFR part 400, the policy provisions in 7 CFR part 457 apply. If a
conflict exists among the policy, the order of precedence is: (1) The
Catastrophic Risk Protection Endorsement, as applicable; (2) the Special
Provisions; (3) the actuarial documents; (4) the Commodity Exchange
Price Provisions, as applicable; (5) the Crop Provisions; and (6) these
Basic Provisions.
Terms and Conditions
Basic Provisions
1. Definitions
Abandon. Failure to continue to care for the crop, providing care so
insignificant as to provide no benefit to the crop, or failure to
harvest in a timely manner, unless an insured cause of loss prevents you
from properly caring for or harvesting the crop or causes damage to it
to the extent that most producers of the crop on acreage with similar
characteristics in the area would not normally further care for or
harvest it.
Acreage report. A report required by section 6 of these Basic
Provisions that 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.
Acreage reporting date. The date contained in the Special Provisions
or as provided in section 6 by which you are required to submit your
acreage report.
Act. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
Actual Production History (APH). A process used to determine
production guarantees in accordance with 7 CFR part 400, subpart G.
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.
Actuarial documents. The information for the crop year which is
available for public inspection in your agent's office and published on
RMA's website and which shows available crop insurance policies,
coverage levels, information needed to determine amounts of insurance,
prices, premium rates, premium adjustment percentages, practices,
particular types or varieties of the insurable crop, insurable acreage,
and other related information regarding crop insurance in the county.
Additional coverage. A level of coverage greater than catastrophic
risk protection.
Administrative fee. An amount you must pay for catastrophic risk
protection, and additional coverage for each crop year as specified in
section 7 and the Catastrophic Risk Protection Endorsement.
Agricultural commodity. Any crop or other commodity produced,
regardless of whether or not it is insurable.
Agricultural experts. Persons who are employed by the Cooperative
Extension System or the agricultural departments of universities, or
other persons approved by FCIC, whose research or occupation is related
to the specific crop or practice for which such expertise is sought.
Annual crop. An agricultural commodity that normally must be planted
each year.
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 crop for which
insurance coverage is requested. If
[[Page 119]]
cancellation or termination of insurance coverage occurs for any reason,
including but not limited to indebtedness, suspension, debarment,
disqualification, cancellation by you or us or violation of the
controlled substance provisions of the Food Security Act of 1985, a new
application must be filed for the crop. Insurance coverage will not be
provided if you are ineligible under the contract or under any Federal
statute or regulation.
Approved yield. The actual production history (APH) yield,
calculated and approved by the verifier, used to determine the
production guarantee by summing the yearly actual, assigned, adjusted or
unadjusted transitional yields and dividing the sum by the number of
yields contained in the database, which will always contain at least
four yields. The database may contain up to 10 consecutive crop years of
actual or assigned yields. The approved yield may have yield options
elected under section 36, revisions according to section 3, or other
limitations according to FCIC procedures applied when calculating the
approved yield.
Area. Land surrounding the insured acreage with geographic
characteristics, topography, soil types and climatic conditions similar
to the insured acreage.
Assignment of indemnity. A transfer of policy rights, made on our
form, and effective when approved by us in writing, whereby you assign
your right to an indemnity payment for the crop year only to creditors
or other persons to whom you have a financial debt or other pecuniary
obligation.
Average yield. The yield calculated by totaling the yearly actual
yields, assigned yields in accordance with sections 3(f)(1) (failure to
provide production report), 3(h)(1) (excessive yields), and 3(i) (second
crop planted without double cropping history on prevented planting
acreage), and adjusted or unadjusted transitional yields, and dividing
the total by the number of yields contained in the database.
Basic unit. All insurable acreage of the insured crop in the county
on the date coverage begins for the crop year excluding acreage reported
and insured as an enterprise unit in which the remaining insurable
acreage is reported and insured as a basic or optional unit:
(1) In which you have 100 percent crop share; or
(2) That 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.)
Land that would otherwise be one unit may, in certain instances, be
divided according to guidelines contained in section 34 of these Basic
Provisions and in the applicable Crop Provisions.
Beginning farmer or rancher. An individual who has not actively
operated and managed a farm or ranch in any state, with an insurable
interest in a crop or livestock as an owner-operator, landlord, tenant,
or sharecropper for more than five crop years, as determined in
accordance with FCIC procedures. Any crop year's insurable interest may,
at your election, be excluded if earned while under the age of 18, while
in full-time military service of the United States, or while in post-
secondary education, in accordance with FCIC procedures. A person other
than an individual may be eligible for beginning farmer or rancher
benefits if there is at least one individual substantial beneficial
interest holder and all individual substantial beneficial interest
holders qualify as a beginning farmer or rancher.
Buffer zone. Acreage designated in your organic plan that separates
agricultural commodities grown under organic farming practices from
those grown under non-organic farming practices. A buffer zone must be
sufficient in size or other features, as stated in the National Organic
Program published in 7 CFR part 205, to prevent or minimize the
possibility of unintended contact by prohibited substances or organisms
applied to adjacent land acres with an area that is part of the
certified organic farming operation.
Cancellation date. The calendar date specified in the Crop
Provisions on which coverage for the crop will automatically renew
unless canceled in writing by either you or us or terminated in
accordance with the policy terms.
Catastrophic risk protection. The minimum level of coverage offered
by FCIC. Catastrophic risk protection is not available with revenue
protection.
Catastrophic Risk Protection Endorsement. The part of the crop
insurance policy that contains provisions of insurance that are specific
to catastrophic risk protection.
Certified organic acreage. Acreage in the certified organic farming
operation that has been certified by a certifying agent as conforming to
organic standards in accordance with the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.) and 7 CFR part 205.
Certifying agent. A private or governmental entity accredited by the
USDA Secretary of Agriculture for the purpose of certifying a
production, processing or handling operation as organic.
Claim for indemnity. A claim made on our form that contains the
information necessary to pay the indemnity, as specified in the
applicable FCIC procedures, and complies with the requirements in
section 14.
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Code of Federal Regulations (CFR). The codification of general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. Rules published in
the Federal Register by FCIC are contained in 7 CFR chapter IV. The full
text of the CFR is available in electronic format at https://
www.ecfr.gov/ or a successor website.
Commodity Exchange Price Provisions (CEPP). A part of the policy
that is used for all crops for which revenue protection is available,
regardless of whether you elect revenue protection or yield protection
for such crops. This document includes the information necessary to
derive the projected price and the harvest price for the insured crop,
as applicable.
Consent. Approval in writing by us allowing you to take a specific
action.
Contract. (See ``policy'').
Contract change date. The calendar date by which changes to the
policy, if any, will be made available in accordance with section 4 of
these Basic Provisions.
Conventional farming practice. A system or process that is necessary
to produce an agricultural commodity, excluding organic farming
practices.
Cooperative Extension System. A nationwide network consisting of a
State office located at each State's land-grant university, and local or
regional offices. These offices are staffed by one or more agricultural
experts, who work in cooperation with the National Institute of Food and
Agriculture, and who provide information to agricultural producers and
others.
County. Any county, parish, or other political subdivision of a
state shown on your accepted application, including acreage in a field
that extends into an adjoining county if the county boundary is not
readily discernible.
Coverage. The insurance provided by this policy, against insured
loss of production or value, by unit as shown on your summary of
coverage.
Coverage begins, date. The calendar date insurance begins on the
insured crop, as contained in the Crop Provisions, or the date planting
begins on the unit (see section 11 of these Basic Provisions for
specific provisions relating to prevented planting).
Cover crop. A crop generally recognized by agricultural experts as
agronomically sound for the area for erosion control or other purposes
related to conservation or soil improvement, unless otherwise specified
in the Special Provisions. A cover crop may be considered a second crop
(see the definition of ``second crop'').
Crop Provisions. The part of the policy that contains the specific
provisions of insurance for each insured crop.
Crop year. The period within which the insured crop is normally
grown, regardless of whether or not it is actually grown, and designated
by the calendar year in which the insured crop is normally harvested,
unless otherwise specified in the Crop Provisions.
Damage. Injury, deterioration, or loss of production of the insured
crop due to insured or uninsured causes.
Days. Calendar days.
Deductible. The amount determined by subtracting the coverage level
percentage you choose from 100 percent. For example, if you elected a 65
percent coverage level, your deductible would be 35 percent (100% - 65%
= 35%).
Delinquent debt. Has the same meaning as the term defined in 7 CFR
part 400, subpart U.
Direct marketing. The sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper, buyer, or broker. Production
records are controlled exclusively by the policyholder. Examples of
direct marketing include selling through an on-farm or roadside stand, a
farmer's market, or permitting the general public to enter the acreage
for the purpose of harvesting or picking all or a portion of the crop.
Only the portion of the crop sold directly to consumers will be
considered direct marketed.
Disinterested third party. A person that does not have any familial
relationship (parents, brothers, sisters, children, spouse,
grandchildren, aunts, uncles, nieces, nephews, first cousins, or
grandparents, related by blood, adoption or marriage, are considered to
have a familial relationship) with you or who will not benefit
financially from the sale of the insured crop. Persons who are
authorized to conduct quality analysis in accordance with the Crop
Provisions are considered disinterested third parties unless there is a
familial relationship.
Double crop. Producing two or more crops for harvest on the same
acreage in the same crop year.
Earliest planting date. The initial planting date contained in the
Special Provisions, which is the earliest date you may plant an insured
agricultural commodity and qualify for a replanting payment if such
payments are authorized by the Crop Provisions.
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).
Enterprise unit. All insurable acreage of the same insured crop or
all insurable irrigated or non-irrigated acreage of the same insured
crop in the county in which you have a share on the date coverage begins
for the crop year, provided the requirements of section 34 are met.
Farm management record. A contemporaneous record provided by you
that documents your actual production recorded at
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the time of harvest, storing of the crop, or use of the crop for feed,
and can be used to substantiate your actual production reported on the
production report.
Field. All acreage of tillable land within a natural or artificial
boundary (e.g., roads, waterways, fences, etc.). Different planting
patterns or planting different crops do not create separate fields.
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 or amount of
insurance per acre.
First insured crop. With respect to a single crop year and any
specific crop acreage, the first instance that an agricultural commodity
is planted for harvest or prevented from being planted and is insured
under the authority of the Act. For example, if winter wheat that is not
insured is planted on acreage that is later planted to soybeans that are
insured, the first insured crop would be soybeans. If the winter wheat
was insured, it would be the first insured crop.
FSA. The Farm Service Agency, an agency of the USDA, or a successor
agency.
FSA farm number. The number assigned to the farm by the local FSA
office.
Generally recognized. When agricultural experts or organic
agricultural experts, as applicable, are aware of the production method
or practice and there is no genuine dispute regarding whether the
production method or practice allows the crop to make normal progress
toward maturity and produce at least the yield used to determine the
production guarantee or amount of insurance.
Good farming practices. The production methods utilized to produce
the insured crop and allow it to make normal progress toward maturity
and produce at least the yield used to determine the production
guarantee or amount of insurance, including any adjustments for late
planted acreage, which are those generally recognized by agricultural
experts or organic agricultural experts, depending on the practice, for
the area. We may, or you may request us to, contact FCIC to determine if
production methods will be considered ``good farming practices.''
Harvest price. A price determined in accordance with the Commodity
Exchange Price Provisions and used to value production to count for
revenue protection.
Harvest price exclusion. Revenue protection with the use of the
harvest price excluded when determining your revenue protection
guarantee. This election is continuous unless canceled by the
cancellation date.
Household. A domestic establishment including the members of a
family (parents, brothers, sisters, children, spouse, grandchildren,
aunts, uncles, nieces, nephews, first cousins, or grandparents, related
by blood, adoption or marriage, are considered to be family members) and
others who live under the same roof.
Insurable interest. Your percentage of the insured crop that is at
financial risk.
Insurable loss. Damage for which coverage is provided under the
terms of your policy, and for which you accept an indemnity payment.
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.
Insured crop. The crop in the county for which coverage is available
under your policy as shown on the application accepted by us.
Intended acreage report. A report of the acreage you intend to
plant, by crop, for the current crop year and used solely for the
purpose of establishing eligible prevented planting acreage, as required
in section 17.
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 or amount of insurance on the irrigated
acreage planted to the insured crop.
Late planted. Acreage initially planted to the insured crop after
the final planting date.
Late planting period. The period that begins the day after the final
planting date for the insured crop and ends 25 days after the final
planting date, unless otherwise specified in the Crop Provisions or
Special Provisions.
Liability. Your total amount of insurance, value of your production
guarantee, or revenue protection guarantee for the unit determined in
accordance with the Settlement of Claim provisions of the applicable
Crop Provisions.
Limited resource farmer. Has the same meaning as the term defined by
USDA at http://lrftool.sc.egov.usda.gov/LRP_Definition.aspx or successor
website.
NAP. Noninsured Crop Disaster Assistance Program published in 7 CFR
part 1437, administered by FSA.
Native sod. Acreage that has no record of being tilled (determined
in accordance with information collected and maintained by an agency of
the USDA or other verifiable records that you provide and are acceptable
to us) for the production of an annual crop on or before February 7,
2014, and on which the plant cover is composed principally of
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native grasses, grass-like plants, forbs, or shrubs suitable for grazing
and browsing.
Negligence. The failure to use such care as a reasonably prudent and
careful person would use under similar circumstances.
Non-contiguous. Acreage of an insured crop that is separated from
other acreage of the same insured crop by land that is neither owned by
you nor rented by you for cash or a crop share. However, acreage
separated by only a public or private right-of-way, waterway, or an
irrigation canal will be considered as contiguous.
Offset. The act of deducting one amount from another amount.
Organic agricultural experts. Persons who are employed by the
following organizations: Appropriate Technology Transfer for Rural
Areas, Sustainable Agriculture Research and Education or the Cooperative
Extension System, the agricultural departments of universities, or other
persons approved by FCIC, whose research or occupation is related to the
specific organic crop or practice for which such expertise is sought.
Organic crop. An agricultural commodity that is organically produced
consistent with section 2103 of the Organic Foods Production Act of 1990
(7 U.S.C. 6502).
Organic farming practice. A system of plant production practices
used on organic acreage and transitional acreage to produce an organic
crop that is approved by a certifying agent in accordance with 7 CFR
part 205.
Organic plan. A written plan, in accordance with the National
Organic Program published in 7 CFR part 205, that describes the organic
farming practices that you and a certifying agent agree upon annually or
at such other times as prescribed by the certifying agent.
Organic standards. Standards in accordance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.) and 7 CFR part 205.
Perennial crop. A plant, bush, tree or vine crop that has a life
span of more than one year.
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. ``Person'' does not
include the United States Government or any agency thereof.
Planted acreage. Land in which seed, plants, or trees have been
placed, 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.
Policy. The agreement between you and us to insure an agricultural
commodity and consisting of the accepted application, these Basic
Provisions, the Crop Provisions, the Special Provisions, the Commodity
Exchange Price Provisions, if applicable, other applicable endorsements
or options, the actuarial documents for the insured agricultural
commodity, the Catastrophic Risk Protection Endorsement, if applicable,
and the applicable regulations published in 7 CFR chapter IV. Insurance
for each agricultural commodity in each county will constitute a
separate policy.
Practical to replant. Our determination, after loss or damage to the
insured crop, that you are able to replant to the same crop in such
areas and under such circumstances as it is customary to replant and
that replanting the insured crop will allow the crop to attain maturity
prior to the calendar date for the end of the insurance period. We may
consider circumstances as to whether: (1) It is physically possible to
replant the acreage; (2) seed germination, emergence, and formation of a
healthy plant is likely; (3) field, soil, and growing conditions allow
for proper planting and growth of the replanted crop to reach maturity;
or (4) other conditions exist, as provided by the Crop Provisions or
Special Provisions. Unless we determine it is not practical to replant,
based on the circumstances listed above, it will be considered practical
to replant through: (1) The final planting date if no late planting
period is applicable; (2) the end of the late planting period if the
late planting period is less than 10 days; or (3) the 10th day after the
final planting date if the crop has a late planting period of 10 days or
more. We will consider it practical to replant regardless of the
availability of seed or plants, or the input costs necessary to produce
the insured crop such as seed or plants, irrigation water, etc.
Premium billing date. The earliest date upon which you will be
billed for insurance coverage based on your acreage report. The premium
billing date is contained in the Special Provisions.
Prevented planting. Failure to plant the insured crop by the final
planting date designated in the Special Provisions for the insured crop
in the county, or within any applicable late planting period, due to an
insured cause of loss that is general to the surrounding area and that
prevents other producers from planting acreage with similar
characteristics. Failure to plant because of uninsured causes such as
lack of proper equipment or labor to plant the acreage, or use of a
particular production method, is not considered prevented planting.
Price election. The amount contained in the actuarial documents that
is the value per pound, bushel, ton, carton, or other applicable unit of
measure for the purposes of determining premium and indemnity under the
policy. A price election is not applicable for crops for which revenue
protection is available.
Production guarantee (per acre). The number of pounds, bushels,
tons, cartons, or other applicable units of measure determined by
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multiplying the approved yield per acre by the coverage level percentage
you elect.
Production record. A written record that documents your actual
production reported on the production report. The record must be an
acceptable verifiable record or an acceptable farm management record as
authorized by FCIC procedures.
Production report. A written report provided by you showing your
annual production that will be used by us to determine your yield for
insurance purposes in accordance with section 3. The report contains
yield information for the previous year(s), including planted acreage
and production. This report must be supported by acceptable production
records.
Prohibited substance. Any biological, chemical, or other agent that
is prohibited from use or is not included in the organic standards for
use on any certified organic, transitional or buffer zone acreage. Lists
of such substances are contained at 7 CFR part 205.
Projected price. The price for each crop determined in accordance
with the Commodity Exchange Price Provisions. The applicable projected
price is used for each crop for which revenue protection is available,
regardless of whether you elect to obtain revenue protection or yield
protection for such crop.
Replanted crop. (1) The same agricultural commodity replanted on the
same acreage as the insured crop for harvest in the same crop year if:
(i) The replanting is specifically made optional by the policy and
you elect to replant the crop and insure it under the policy covering
the first insured crop; or
(ii) Replanting is required by the policy.
(2) Unless otherwise specified in the Special Provisions, the crop
will be considered an insured replanted crop and no replanting payment
will be paid if we have determined it is not practical to replant the
insured crop and you choose to plant the acreage to the same insured
crop within or prior to the late planting period or after the final
planting date if no late planting period is applicable. If we determine
it is not practical to replant and you plant the acreage to the same
insured crop, any indemnity will be based on the greater of:
(i) Our appraised production on the initially planted crop;
(ii) Our subsequent appraisal of the replanted crop if the replanted
crop is not harvested; or
(iii) The harvested production from the replanted crop.
Replanting. Performing the cultural practices necessary to prepare
the land to replace the seed or plants of the damaged or destroyed
insured crop and then replacing the seed or plants of the same crop in
the same insured acreage. The same crop does not necessarily mean the
same type or variety of the crop unless different types or varieties
constitute separate crops or it is otherwise specified in the policy.
Representative sample. Portions of the insured crop that must remain
in the field for examination and review by our loss adjuster when making
a crop appraisal, as specified in the Crop Provisions. In certain
instances we may allow you to harvest the crop and require only that
samples of the crop residue be left in the field.
Revenue protection. A plan of insurance that provides protection
against loss of revenue due to a production loss, price decline or
increase, or a combination of both. If the harvest price exclusion is
elected, the insurance coverage provides protection only against loss of
revenue due to a production loss, price decline, or a combination of
both.
Revenue protection guarantee (per acre). For revenue protection
only, the amount determined by multiplying the production guarantee (per
acre) by the greater of your projected price or your harvest price. If
the harvest price exclusion is elected, the production guarantee (per
acre) is only multiplied by your projected price.
RMA's website. A website hosted by RMA and located at
www.rma.usda.gov or a successor website.
Sales closing date. A date contained in the Special Provisions by
which an application must be filed. The last date by which you may
change your crop insurance coverage for a crop year.
Second crop. With respect to a single crop year, the next occurrence
of planting any agricultural commodity for harvest following a first
insured crop on the same acreage. The second crop may be the same or a
different agricultural commodity as the first insured crop, except the
term does not include a replanted crop. If following a first insured
crop, a cover crop that is planted on the same acreage and harvested for
grain or seed is considered a second crop. A crop that is covered by NAP
or receives other USDA benefits associated with forage crops is
considered a second crop. A crop meeting the conditions stated in this
definition is considered a second crop regardless of whether it is
insured.
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.
Share. Your insurable interest in the insured crop as an owner,
operator, or tenant 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 the time of loss or the beginning of
harvest.
Special Provisions. The part of the policy that contains specific
provisions of insurance
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for each insured crop that may vary by geographic area.
State. The state shown on your accepted application.
Substantial beneficial interest. An interest held by any person of
at least 10 percent in you (e.g., there are two partnerships that each
have a 50 percent interest in you and each partnership is made up of two
individuals, each with a 50 percent share in the partnership. In this
case, each individual would be considered to have a 25 percent interest
in you, and both the partnerships and the individuals would have a
substantial beneficial interest in you. The spouses of the individuals
would not be considered to have a substantial beneficial interest unless
the spouse was one of the individuals that made up the partnership.
However, if each partnership is made up of six individuals with equal
interests, then each would only have an 8.33 percent interest in you and
although the partnership would still have a substantial beneficial
interest in you, the individuals would not for the purposes of reporting
in section 2). The spouse of any individual applicant or individual
insured will be presumed to have a substantial beneficial interest in
the applicant or insured unless the spouses can prove they are legally
separated or otherwise legally separate under the applicable State
dissolution of marriage laws. Any child of an individual applicant or
individual insured will not be considered to have a substantial
beneficial interest in the applicant or insured unless the child has a
separate legal interest in such person.
Summary of coverage. Our statement to you, based upon your acreage
report, specifying the insured crop and the guarantee or amount of
insurance coverage provided by unit.
Sustainable farming practice. A system or process for producing an
agricultural commodity, excluding organic farming practices, that is
necessary to produce the crop and is generally recognized by
agricultural experts for the area to conserve or enhance natural
resources and the environment.
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).
Termination date. The calendar date contained in the Crop Provisions
upon which your insurance ceases to be in effect because of nonpayment
of any amount due us under the policy, including premium.
Tilled. The termination of existing plants by plowing, disking,
burning, application of chemicals, or by other means to prepare acreage
for the production of a crop.
Timely planted. Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the county.
Transitional acreage. Acreage in transition to organic where organic
farming practices are being followed, but the acreage does not yet
qualify as certified organic acreage.
USDA. United States Department of Agriculture.
Verifiable record. A contemporaneous record from a disinterested
third party that substantiates your actual production reported on the
production report. The record must be a document or evidence from a
disinterested third party that is accurate and can be validated or
verified by us.
Veteran farmer or rancher. (1) An individual who has served active
duty in the United States Army, Navy, Marine Corps, Air Force, or Coast
Guard, including the reserve components; was discharged or released
under conditions other than dishonorable; and:
(i) Has not operated a farm or ranch;
(ii) Has operated a farm or ranch for not more than 5 years; or
(iii) First obtained status as a veteran during the most recent 5-
year period.
(2) A person, other than an individual, may be eligible for veteran
farmer or rancher benefits if all substantial beneficial interest
holders qualify individually as a veteran farmer or rancher in
accordance with paragraph (1) of this definition; except in cases in
which there is only a married couple, then a veteran and non-veteran
spouse are considered a veteran farmer or rancher.
Void. When the policy is considered not to have existed for a crop
year.
Volunteer crop. A crop that was planted in a previous crop year on
the applicable acreage or drifted from other acreage, successfully self-
seeded, and is growing this crop year on the applicable acreage without
being intentionally sown or managed.
Whole-farm unit. All insurable acreage of all the insured crops
planted in the county in which you have a share on the date coverage
begins for each crop for the crop year and for which the whole-farm unit
structure is available in accordance with section 34.
Written agreement. A document that alters designated terms of a
policy as authorized under these Basic Provisions, the Crop Provisions,
or the Special Provisions for the insured crop (see section 18).
Yield protection. A plan of insurance that only provides protection
against a production loss and is available only for crops for which
revenue protection is available.
Yield protection guarantee (per acre). When yield protection is
selected for a crop that has revenue protection available, the amount
determined by multiplying the production guarantee by your projected
price.
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
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until canceled by you in accordance with the terms of the policy or
terminated by operation of the terms of the policy or by us. In
accordance with section 4, FCIC may change the coverage provided from
year to year.
(b) With respect to your application for insurance:
(1) You must include your social security number (SSN) if you are an
individual (if you are an individual applicant operating as a business,
you may provide an employer identification number (EIN) but you must
also provide your SSN); or
(2) You must include your EIN if you are a person other than an
individual;
(3) In addition to the requirements of section 2(b)(1) or (2), you
must include the following for all persons who have a substantial
beneficial interest in you:
(i) The SSN for individuals; or
(ii) The EIN for persons other than individuals and the SSNs for all
individuals that comprise the person with the EIN if such individuals
also have a substantial beneficial interest in you;
(4) You must include:
(i) Your election of revenue protection, yield protection, or other
available plan of insurance; coverage level; percentage of price
election or percentage of projected price, as applicable; crop, type,
variety, or class; and any other material information required on the
application to insure the crop; and
(ii) All the information required in section 2(b)(4)(i) or your
application will not be accepted and no coverage will be provided;
(5) Your application will not be accepted and no insurance will be
provided for the year of application if the application does not contain
your SSN or EIN. If your application contains an incorrect SSN or EIN
for you, your application will be considered not to have been accepted,
no insurance will be provided for the year of application and for any
subsequent crop years, as applicable, and such policies will be void if:
(i) Such number is not corrected by you; or
(ii) You correct the SSN or EIN but:
(A) You cannot prove that any error was inadvertent (Simply stating
the error was inadvertent is not sufficient to prove the error was
inadvertent); or
(B) It is determined that the incorrect number would have allowed
you to obtain disproportionate benefits under the crop insurance
program, you are determined to be ineligible for insurance or you could
avoid an obligation or requirement under any State or Federal law;
(6) With respect to persons with a substantial beneficial interest
in you:
(i) The insurance coverage for all crops included on your
application will be reduced proportionately by the percentage interest
in you of persons with a substantial beneficial interest in you
(presumed to be 50 percent for spouses of individuals) if the SSNs or
EINs of such persons are included on your application, the SSNs or EINs
are correct, and the persons with a substantial beneficial interest in
you are ineligible for insurance;
(ii) Your policies for all crops included on your application, and
for all applicable crop years, will be void if the SSN or EIN of any
person with a substantial beneficial interest in you is incorrect or is
not included on your application and:
(A) Such number is not corrected or provided by you, as applicable;
(B) You cannot prove that any error or omission was inadvertent
(Simply stating the error or omission was inadvertent is not sufficient
to prove the error or omission was inadvertent); or
(C) Even after the correct SSN or EIN is provided by you, it is
determined that the incorrect or omitted SSN or EIN would have allowed
you to obtain disproportionate benefits under the crop insurance
program, the person with a substantial beneficial interest in you is
determined to be ineligible for insurance, or you or the person with a
substantial beneficial interest in you could avoid an obligation or
requirement under any State or Federal law; or
(iii) Except as provided in sections 2(b)(6)(ii)(B) and (C), your
policies will not be voided if you subsequently provide the correct SSN
or EIN for persons with a substantial beneficial interest in you and the
persons are eligible for insurance;
(7) When any of your policies are void under sections 2(b)(5) or
(6):
(i) You must repay any indemnity, prevented planting payment or
replanting payment that may have been paid for all applicable crops and
crop years;
(ii) Even though the policies are void, you will still be required
to pay an amount equal to 20 percent of the premium that you would
otherwise be required to pay; and
(iii) If you previously paid premium or administrative fees, any
amount in excess of the amount required in section 2(b)(7)(ii) will be
returned to you;
(8) Notwithstanding any of the provisions in this section, if you
certify to an incorrect SSN or EIN, or receive an indemnity, prevented
planting payment or replanting payment and the SSN or EIN was not
correct, you may be subject to civil, criminal or administrative
sanctions;
(9) If any of the information regarding persons with a substantial
beneficial interest in you changes after the sales closing date for the
previous crop year, you must revise your application by the sales
closing date for the current crop year to reflect the correct
information. However, if such information changed less than 30 days
before the sales closing date for the current crop year, you must revise
your application by the sales closing date for the next crop year. If
you
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fail to provide the required revisions, the provisions in section
2(b)(6) will apply; and
(10) If you are, or a person with a substantial beneficial interest
in you is, not eligible to obtain a SSN or EIN, whichever is required,
you must request an assigned number for the purposes of this policy from
us:
(i) A number will be provided only if you can demonstrate you are,
or a person with a substantial beneficial interest in you is, eligible
to receive Federal benefits;
(ii) If a number cannot be provided for you in accordance with
section 2(b)(10)(i), your application will not be accepted; or
(iii) If a number cannot be provided for any person with a
substantial beneficial interest in you in accordance with section
2(b)(10)(i), the amount of coverage for all crops on the application
will be reduced proportionately by the percentage interest of such
person in you.
(c) After acceptance of the application, you may not cancel this
policy for the initial crop year. Thereafter, the policy will continue
in force for each succeeding crop year unless canceled or terminated as
provided below.
(d) 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.
(e) Any amount owed to us for any policy authorized under the Act
will be offset from any indemnity or prevented planting payment due you
for this or any other crop insured with us under the authority of the
Act.
(1) Even if your claim has not yet been paid, you must still pay the
premium and administrative fee on or before the termination date for you
to remain eligible for insurance.
(2) If we offset any amount due us from an indemnity or prevented
planting payment owed to you, the date of payment for the purpose of
determining whether you have a delinquent debt will be the date that you
submit the claim for indemnity in accordance with section 14(e) (Your
Duties).
(3) For this agricultural commodity policy, your premium and
administrative fees will be offset from any indemnity or prevented
planting payment due to you even if it is prior to the premium billing
date.
(4) For any other agricultural commodity policy insured with us and
it is:
(i) Prior to the premium billing date, and you agree, your premium
and administrative fees will be offset from any indemnity or prevented
planting payment due to you; or
(ii) On or after the premium billing date, your premium and
administrative fees will be offset from any indemnity or prevented
planting payment due to you.
(f) A delinquent debt for any policy will make you ineligible to
obtain crop insurance authorized under the Act for any subsequent crop
year and result in termination of all policies in accordance with
section 2(f)(2).
(1) With respect to ineligibility:
(i) Ineligibility for crop insurance will be effective on:
(A) The date that a policy was terminated in accordance with section
2(f)(2) for the crop for which you failed to pay premium, an
administrative fee, or any related interest owed, as applicable;
(B) The payment due date contained in any notification of
indebtedness for any overpaid indemnity, prevented planting payment or
replanting payment, if you fail to pay the amount owed, including any
related interest owed, as applicable, by such due date; or
(C) The termination date for the crop year prior to the crop year in
which a scheduled payment is due under a written payment agreement if
you fail to pay the amount owed by any payment date in any agreement to
pay the debt.
(ii) If you are ineligible and a policy has been terminated in
accordance with section 2(f)(2), you will not receive any indemnity,
prevented planting payment or replanting payment, if applicable, and
such ineligibility and termination of the policy may affect your
eligibility for benefits under other USDA programs. Any indemnity,
prevented planting payment or replanting payment that may be owed for
the policy before it has been terminated will remain owed to you, but
may be offset in accordance with section 2(e), unless your policy was
terminated in accordance with sections 2(f)(2)(i)(A), (B) or (D).
(2) With respect to termination:
(i) Termination will be effective on:
(A) For a policy with unpaid administrative fees or premiums, the
termination date immediately subsequent to the billing date for the crop
year (For policies for which the sales closing date is prior to the
termination date, such policies will terminate for the current crop year
even if insurance attached prior to the termination date. Such
termination will be considered effective as of the sales closing date
and no insurance will be considered to have attached for the crop year
and no indemnity, prevented planting or replanting payment will be
owed);
(B) For a policy with other amounts due, the termination date
immediately following the date you have a delinquent debt (For policies
for which the sales closing date is prior to the termination date, such
policies will terminate for the current crop year even if insurance
attached prior to the termination date. Such termination will be
considered effective as of the sales closing date and no insurance will
be considered to have attached for the crop year and no indemnity,
prevented planting or replanting payment will be owed);
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(C) For all other policies that are issued by us under the authority
of the Act, the termination date that coincides with the termination
date for the policy with the delinquent debt or, if there is no
coincidental termination date, the termination date immediately
following the date you become ineligible; or
(D) For execution of a written payment agreement and failure to make
any scheduled payment, the termination date for the crop year prior to
the crop year in which you failed to make the scheduled payment (for
this purpose only, the crop year will start the day after the
termination date and end on the next termination date, e.g., if the
termination date is November 30 and you fail to make a payment on
November 15, 2019, your policy will terminate on November 30, 2018, for
the 2019 crop year).
(ii) For all policies terminated under sections 2(f)(2)(i)(A), (B),
or (D), any indemnities, prevented planting payments or replanting
payments paid subsequent to the termination date must be repaid.
(iii) Once the policy is terminated, it cannot be reinstated for the
current crop year unless:
(A) The termination was in error;
(B) The Administrator of the Risk Management Agency, at his or her
sole discretion, determines that the following are met:
(1) In accordance with 7 CFR part 400, subpart U, and FCIC
procedures, you provide documentation that your inadvertent failure to
pay your debt is due to an unforeseen or unavoidable event or other
extenuating circumstances that created the inadvertent failure for you
to make timely payment;
(2) You remit full payment of the delinquent debt owed to us or FCIC
with your request submitted in accordance with section
2(f)(2)(iii)(B)(3); and
(3) You submit a written request for reinstatement of your policy to
us no later than 60 days after the termination date or the missed
payment date of a previously executed written payment agreement, or in
the case of overpaid indemnity or any amount that became due after the
termination date, the due date specified in the notice to you of the
amount due, if applicable.
(i) If authorization for reinstatement, as defined in 7 CFR part
400, subpart U, is granted, your policies will be reinstated effective
at the beginning of the crop year for which you were determined
ineligible, and you will be entitled to all applicable benefits under
such policies, provided you meet all eligibility requirements and comply
with the terms of the policy; and
(ii) There is no evidence of fraud or misrepresentation; or
(C) We determine that, in accordance with 7 CFR part 400, subpart U,
and FCIC procedures, the following are met:
(1) You can demonstrate:
(i) You made timely payment for the amount of premium owed but you
inadvertently omitted some small amount, such as the most recent month's
interest or a small administrative fee;
(ii) The amount of the payment was clearly transposed from the
amount that was otherwise due (For example, you owed $892 but you paid
$829);
(iii) You timely made the full payment of the amount owed but the
delivery of that payment was delayed, and was postmarked no more than
seven calendar days after the termination date or the missed payment
date of a previously executed written payment agreement, or in the case
of overpaid indemnity or any amount that became due after the
termination date, the due date specified in a notice to you of an amount
due, as applicable; or
(iv) For previously executed written payment agreements, you made
the full payment of the scheduled payment amount owed within 15 calendar
days after the missed payment date.
(2) You remit full payment of the delinquent debt owed to us; and
(3) You submit a written request for reinstatement of your policy to
us in accordance with 7 CFR part 400, subpart U, and applicable
procedures no later than 30 days after the termination date or the
missed payment date of a previously executed written payment agreement,
or in the case of overpaid indemnity or any amount that became due after
the termination date, the due date specified in the notice to you of the
amount due, if applicable; and
(4) If authorization for reinstatement, as defined in 7 CFR part
400, subpart U, is granted, your policies will be reinstated effective
at the beginning of the crop year for which you were determined
ineligible, and you will be entitled to all applicable benefits under
such policies, provided you meet all eligibility requirements and comply
with the terms of the policy; and
(5) There is no evidence of fraud or misrepresentation.
(iv) A determination made under:
(A) Section 2(f)(2)(iii)(B) may only be appealed to the National
Appeals Division in accordance with 7 CFR part 11; and
(B) Section 2(f)(2)(iii)(C) may only be appealed in accordance with
section 20.
(3) To regain eligibility, you must:
(i) Repay the delinquent debt in full;
(ii) Execute a written payment agreement, in accordance with 7 CFR
part 400, subpart U, and make payments in accordance with the agreement;
or
(iii) Have your debts discharged in bankruptcy.
(4) After you become eligible for crop insurance, if you want to
obtain coverage for your crops, you must submit a new application on or
before the sales closing date for
[[Page 128]]
the crop (Since applications for crop insurance cannot be accepted after
the sales closing date, if you make any payment after the sales closing
date, you cannot apply for insurance until the next crop year).
(5) For example, for the 2019 crop year, if crop A, with a
termination date of October 31, 2018, and crop B, with a termination
date of March 15, 2019, are insured and you do not pay the premium for
crop A by the termination date, you are ineligible for crop insurance as
of October 31, 2018, and crop A's policy is terminated as of that date.
Crop B's policy does not terminate until March 15, 2019, and an
indemnity for the 2018 crop year may still be owed. If you enter into a
written payment agreement on September 25, 2019, the earliest date by
which you can obtain crop insurance for crop A is to apply for crop
insurance by the October 31, 2019, sales closing date and for crop B is
to apply for crop insurance by the March 15, 2020, sales closing date.
If you fail to make a payment that was scheduled to be made on April 1,
2020, your policy will terminate as of October 31, 2019, for crop A, and
March 15, 2020, for crop B, and no indemnity, prevented planting payment
or replanting payment will be due for that crop year for either crop.
You will not be eligible to apply for crop insurance for any crop until
after the amounts owed are paid in full or you have your debts
discharged in bankruptcy.
(6) If you are determined to be ineligible under section 2(f),
persons with a substantial beneficial interest in you may also be
ineligible until you become eligible again.
(g) In cases where there has been a death, disappearance, judicially
declared incompetence, or dissolution of any insured person:
(1) If any married individual insured dies, disappears, or is
judicially declared incompetent, the named insured on the policy will
automatically convert to the name of the spouse if:
(i) The spouse was included on the policy as having a substantial
beneficial interest in the named insured; and
(ii) The spouse has a share of the crop.
(2) The provisions in section 2(g)(3) will be applicable if:
(i) Any partner, member, shareholder, etc., of an insured entity
dies, disappears, or is judicially declared incompetent, and such event
automatically dissolves the entity; or
(ii) An individual, whose estate is left to a beneficiary other than
a spouse or left to the spouse and the criteria in section 2(g)(1) are
not met, dies, disappears, or is judicially declared incompetent.
(3) If section 2(g)(2) applies and the death, disappearance, or
judicially declared incompetence occurred:
(i) More than 30 days before the cancellation date, the policy is
automatically canceled as of the cancellation date and a new application
must be submitted; or
(ii) Thirty days or less before the cancellation date, or after the
cancellation date, the policy will continue in effect through the crop
year immediately following the cancellation date and be automatically
canceled as of the cancellation date immediately following the end of
the insurance period for the crop year, unless canceled by the
cancellation date prior to the start of the insurance period:
(A) A new application for insurance must be submitted prior to the
sales closing date for coverage for the subsequent crop year; and
(B) Any indemnity, replanting payment or prevented planting payment
will be paid to the person or persons determined to be beneficially
entitled to the payment and such person or persons must comply with all
policy provisions and pay the premium.
(4) If any insured entity is dissolved for reasons other than death,
disappearance, or judicially declared incompetence:
(i) Before the cancellation date, the policy is automatically
canceled as of the cancellation date and a new application must be
submitted; or
(ii) On or after the cancellation date, the policy will continue in
effect through the crop year immediately following the cancellation date
and be automatically canceled as of the cancellation date immediately
following the end of the insurance period for the crop year, unless
canceled by the cancellation date prior to the start of the insurance
period:
(A) A new application for insurance must be submitted prior to the
sales closing date for coverage for the subsequent crop year; and
(B) Any indemnity, replanting payment or prevented planting payment
will be paid to the person or persons determined to be beneficially
entitled to the payment and such person or persons must comply with all
policy provisions and pay the premium.
(5) If section 2(g)(2) or (4) applies, a remaining member of the
insured person or the beneficiary is required to report to us the death,
disappearance, judicial incompetence, or other event that causes
dissolution not later than the next cancellation date, except if section
2(g)(3)(ii) applies, notice must be provided by the cancellation date
for the next crop year. If notice is not provided timely, the provisions
of section 2(g)(2) or (4) will apply retroactive to the date such notice
should have been provided and any payments made after the date the
policy should have been canceled must be returned.
(h) We may cancel your policy if no premium is earned for 3
consecutive years.
(i) The cancellation and termination dates are contained in the Crop
Provisions.
(j) Any person may sign any document relative to crop insurance
coverage on behalf of any other person covered by such a policy,
[[Page 129]]
provided that the person has a properly executed power of attorney or
such other legally sufficient document authorizing such person to sign.
You are still responsible for the accuracy of all information provided
on your behalf and may be subject to the consequences in section 6(g),
and any other applicable consequences, if any information has been
misreported.
3. Insurance Guarantees, Coverage Levels, and Prices
(a) Unless adjusted or limited in accordance with your policy, 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 for each crop year.
(b) With respect to the insurance choices:
(1) For all acreage of the insured crop in the county, unless one of
the conditions in section 3(b)(2) exists, you must select the same:
(i) Plan of insurance (e.g., yield protection, revenue protection,
actual production history, amount of insurance, etc.);
(ii) Level of coverage (all catastrophic risk protection or the same
level of additional coverage); and
(iii) Percentage of the available price election, or projected price
for yield protection. For revenue protection, the percentage of price is
specified in section 3(c)(2). If different prices are provided by type
or variety, insurance will be based on the price provided for each type
or variety and the same price percentage will apply to all types or
varieties.
(2) You do not have to select the same plan of insurance, level of
coverage or percentage of available price election or projected price
if:
(i) The applicable Crop Provisions allow you the option to
separately insure individual crop types or varieties. In this case, each
individual type or variety insured by you will be subject to separate
administrative fees. For example, if two grape varieties in California
are insured under the Catastrophic Risk Protection Endorsement and two
varieties are insured under an additional coverage policy, a separate
administrative fee will be charged for each of the four varieties; or
(ii) You have additional coverage for the crop in the county and the
acreage has been designated as ``high-risk'' by FCIC. In such case, you
will be able to exclude coverage for the high-risk land under the
additional coverage policy and insure such acreage under a separate
Catastrophic Risk Protection Endorsement, provided the Catastrophic Risk
Protection Endorsement is obtained from the same insurance provider from
which the additional coverage was obtained. If you have revenue
protection and exclude high-risk land, the catastrophic risk protection
coverage will be yield protection only for the excluded high-risk land.
(iii) You have additional coverage for the crop in the county, and
the actuarial documents provide for separate coverage by irrigated and
non-irrigated practices for the crop.
(A) You may select one coverage level for all irrigated acreage and
one coverage level for all non-irrigated acreage. For example: You may
choose a 65 percent coverage level for all irrigated acreage (corn
irrigated practice) and an 80 percent coverage level for all non-
irrigated acreage (corn non-irrigated practice).
(B) If the Crop Provisions allow the option to separately insure
individual crop types or varieties, and the actuarial documents provide
for separate coverage, you may select coverage levels by irrigated and
non-irrigated practice for each separate type or variety.
(c) With respect to revenue protection, if available for the crop:
(1) You may change to another plan of insurance and change your
coverage level or elect the harvest price exclusion by giving written
notice to us not later than the sales closing date for the insured crop;
(2) Your projected price and harvest price will be 100 percent of
the projected price and harvest price issued by FCIC;
(3) If the harvest price exclusion is:
(i) Not elected, your projected price is used to initially determine
the revenue protection guarantee (per acre), and if the harvest price is
greater than the projected price, the revenue protection guarantee (per
acre) will be recomputed using your harvest price; or
(ii) Elected, your projected price is used to compute your revenue
protection guarantee (per acre);
(4) Your projected price is used to calculate your premium, any
replanting payment, and any prevented planting payment; and
(5) If the projected price or harvest price cannot be calculated for
the current crop year under the provisions contained in the Commodity
Exchange Price Provisions:
(i) For the projected price:
(A) Revenue protection will not be provided and you will
automatically be covered under the yield protection plan of insurance
for the current crop year unless you cancel your coverage by the
cancellation date or change your plan of insurance by the sales closing
date;
(B) Notice will be provided on RMA's website by the date specified
in the applicable projected price definition contained in the Commodity
Exchange Price Provisions;
(C) The projected price will be determined by FCIC and will be
released by the date specified in the applicable projected price
definition contained in the Commodity Exchange Price Provisions; and
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(D) Your coverage will automatically revert to revenue protection
for the next crop year that revenue protection is available unless you
cancel your coverage by the cancellation date or change your coverage by
the sales closing date; or
(ii) For the harvest price:
(A) Revenue protection will continue to be available; and
(B) The harvest price will be determined and announced by FCIC.
(d) With respect to yield protection, if available for the crop:
(1) You may change to another plan of insurance and change your
percentage of price and your coverage level by giving written notice to
us not later than the sales closing date for the insured crop;
(2) The percentage of the projected price selected by you multiplied
by the projected price issued by FCIC is your projected price that is
used to compute the value of your production guarantee (per acre) and
the value of the production to count; and
(3) Since the projected price may change each year, if you do not
select a new percentage of the projected price on or before the sales
closing date, we will assign a percentage which bears the same
relationship to the percentage that was in effect for the preceding year
(e.g., if you selected 100 percent of the projected price for the
previous crop year and you do not select a new percentage for the
current crop year, we will assign 100 percent for the current crop
year).
(e) With respect to all plans of insurance other than revenue
protection and yield protection (e.g., APH, dollar amount plans of
insurance, etc.):
(1) In addition to the price election or amount of insurance
available on the contract change date, we may provide an additional
price election or amount of insurance no later than 15 days prior to the
sales closing date.
(i) You must select the additional price election or amount of
insurance on or before the sales closing date for the insured crop.
(ii) These additional price elections or amounts of insurance will
not be less than those available on the contract change date.
(iii) If you elect the additional price election or amount of
insurance, any claim settlement and amount of premium will be based on
your additional price election or amount of insurance.
(2) You may change to another plan of insurance or change your
coverage level, amount of insurance or percentage of the price election,
as applicable, for the following crop year by giving written notice to
us not later than the sales closing date for the insured crop.
(3) Your amount of insurance will be the amount of insurance issued
by FCIC multiplied by the coverage level percentage you elected. Your
price election will be the price election issued by FCIC multiplied by
the percentage of price you elected.
(4) Since the amount of insurance or price election may change each
year, if you do not select a new amount of insurance or percentage of
the price election on or before the sales closing date, we will assign
an amount of insurance or percentage of the price election which bears
the same relationship to the amount of insurance or percentage of the
price election that was in effect for the preceding year (e.g., if you
selected 100 percent of the price election for the previous crop year
and you do not select a new percentage of the price election for the
current crop year, we will assign 100 percent of the price election for
the current crop year).
(f) You must report all production of the crop (insured and
uninsured) to us for the previous crop year by the earlier of the
acreage reporting date or 45 days after the cancellation date, unless
otherwise stated in the Special Provisions or as specified in section
18:
(1) If you do not provide the required production report, we will
assign a yield. The yield assigned by us will not be more than 75
percent 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 approved yield for the purpose of determining your
coverage for the current crop year.
(2) If you have filed a claim for any crop year, the documents
signed by you which state the amount of production used to complete the
claim for indemnity will be the production report for that year unless
otherwise specified by FCIC.
(3) Production and acreage for the prior crop year must be reported
for each proposed optional unit by the production reporting date, unless
otherwise specified in the Special Provisions. If you do not provide the
information stated above, the optional units will be combined into the
basic unit.
(4) Appraisals obtained from only a portion of the acreage in a
field that remains unharvested after the remainder of the crop within
the field has been destroyed or put to another use will not be used to
establish your actual yield unless representative samples are required
to be left by you in accordance with the Crop Provisions.
(g) It is your responsibility to accurately report all information
that is used to determine your approved yield.
(1) You must certify to the accuracy of this information on your
production report.
(2) If you fail to accurately report any information or if you do
not provide any required records, you will be subject to the provisions
regarding misreporting contained in section 6(g), unless the information
is corrected:
(i) On or before the production reporting date;
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(ii) Because the incorrect information was determined to be
inadvertently reported by you (Simply stating the error was inadvertent
is not sufficient to prove the error was inadvertent); or
(iii) Because the incorrect information was the result of our error
or the error of someone from USDA.
(3) If you do not have acceptable production records to support the
information you certified on your production report you will receive an
assigned yield in accordance with section 3(f)(1) and 7 CFR part 400,
subpart G, for the applicable units, determined by us, for crop years
that do not have such production records in accordance with FCIC
procedures. If the conditions of section 34(b)(3) are not met, you will
receive an assigned yield for the applicable basic unit.
(4) At any time we discover you have misreported any material
information used to determine your approved yield or your approved yield
is not correct, the following actions will be taken, as applicable:
(i) We will correct your approved yield, in accordance with FCIC
procedure, by assigning a yield or by using the yield we determine to be
correct, for the crop year such information is not correct, and all
subsequent crop years;
(ii) We will correct the unit structure, if necessary;
(iii) Any overpaid or underpaid indemnity or premium must be repaid;
and
(iv) You will be subject to the provisions regarding misreporting
contained in section 6(g)(1), unless the incorrect information was the
result of our error or the error of someone from USDA.
(h) In addition to any consequences in section 3(g), at any time the
circumstances described below are discovered, your approved yield will
be adjusted:
(1) By including an assigned yield determined in accordance with
section 3(f)(1) and 7 CFR part 400, subpart G, if the actual yield
reported in the database is excessive for any crop year, as determined
by FCIC under its procedures, and you do not provide verifiable records
to support the yield in the database (If there are verifiable records
for the yield in your database, the yield is significantly different
from the other yields in the county or your other yields for the crop
and you cannot prove there is a valid agronomic basis to support the
differences in the yields, the yield will be the average of the yields
for the crop or the applicable county transitional yield if you have no
other yields for the crop);
(2) By reducing it to an amount consistent with the average of the
approved yields for other databases for your farming operation with the
same crop, type, and practice or the county transitional yield, as
applicable, if:
(i) The approved APH yield is greater than 115 percent of the
average of the approved yields of all applicable databases for your
farming operation that have actual yields in them or it is greater than
115 percent of the county transitional yield if no applicable databases
exist for comparison;
(ii) The current year's insurable acreage (including applicable
prevented planting acreage) is greater than 400 percent of the average
number of acres in the database or the acres contained in two or more
individual years in the database are each less than 10 percent of the
current year's insurable acreage in the unit (including applicable
prevented planting acreage); and
(iii) We determine there is no valid agronomic basis to support the
approved yield; or
(3) To an amount consistent with the production method actually
carried out for the crop year if you use a different production method
than was previously used and the production method actually carried out
is likely to result in a yield lower than the average of your previous
actual yields.
(i) The yield will be adjusted to the lower of the:
(A) Approved APH yield for the APH database;
(B) Average of approved APH yields based on your other APH databases
where the production method was carried out; or
(C) Applicable county transitional yield for the production method
if other such APH databases do not exist.
(ii) You must notify us of changes in your production method by the
acreage reporting date. If you fail to notify us, in addition to the
reduction of your approved yield described herein, you will be
considered to have misreported information and you will be subject to
the consequences in section 6(g). For example, for a non-irrigated APH
database, your yield is based upon acreage of the crop that is watered
once prior to planting, and the crop is not watered prior to planting
for the current crop year. Your approved APH yield will be reduced to an
amount consistent with the actual production history of your other non-
irrigated APH database where the crop has not been watered prior to
planting or limited to the non-irrigated transitional yield for the APH
database if other such APH databases do not exist.
(i) Unless you meet the double cropping requirements contained in
section 17(f)(4), if you elect to plant a second crop on acreage where
the first insured crop was prevented from being planted, you will
receive a yield equal to 60 percent of the approved yield for the first
insured crop to calculate your average yield for subsequent crop years
(Not applicable to crops if the APH is not the basis for the insurance
guarantee). If the unit contains both prevented planting and planted
acreage of the same crop, the yield for such acreage will be determined
by:
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(1) Multiplying the number of insured prevented planting acres by 60
percent of the approved yield for the first insured crop;
(2) Adding the totals from section 3(i)(1) to the amount of
appraised or harvested production for all of the insured planted
acreage; and
(3) Dividing the total in section 3(i)(2) by the total number of
acres in the unit.
(j) Hail and fire coverage may be excluded from the covered causes
of loss for an insured crop only if you select additional coverage of
not less than 65 percent of the approved yield indemnified at the 100
percent price election, or an equivalent coverage as established by
FCIC, and you have purchased the same or a higher dollar amount of
coverage for hail and fire from us or any other source. If you elected a
whole-farm unit, you may exclude hail and fire coverage only if allowed
by the Special Provisions.
(k) The applicable premium rate, or formula to calculate the premium
rate, and transitional yield will be those contained in the actuarial
documents except, in the case of high-risk land, a written agreement may
be requested to change such transitional yield or premium rate.
(l) Notwithstanding any other provision, if you qualify as a
beginning farmer or rancher, or veteran farmer or rancher, and were
previously involved in a farming or ranching operation, including
involvement in the decision-making or physical involvement in the
production of the crop or livestock on the farm, for any acreage
obtained by you, you may receive a yield that is the higher of:
(1) The actual production history of the previous producer of the
crop or livestock on the new acreage; or
(2) Your actual production history.
4. Contract Changes
(a) We may change the terms of your coverage under this policy from
year to year.
(b) Any changes in policy provisions, amounts of insurance, premium
rates, program dates, price elections or the Commodity Exchange Price
Provisions, if applicable, can be viewed on RMA's website not later than
the contract change date contained in the Crop Provisions (except as
allowed herein or as specified in section 3). We may only revise this
information after the contract change date to correct clear errors
(e.g., the price for oats was announced at $25.00 per bushel instead of
$2.50 per bushel or the final planting date should be May 10 but the
final planting date in the Special Provisions states August 10).
(c) After the contract change date, all changes specified in section
4(b) will also be available upon request from your crop insurance agent.
(d) Not later than 30 days prior to the cancellation date for the
insured crop you will be notified, in accordance with section 33, a copy
of the changes to the Basic Provisions, Crop Provisions, Commodity
Exchange Price Provisions, if applicable, and Special Provisions.
(e) Acceptance of the changes will be conclusively presumed in the
absence of notice from you to change or cancel your insurance coverage.
5. [Reserved]
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
contained in the Special Provisions, except as follows:
(1) If you insure multiple crops with us that have final planting
dates on or after August 15 but before December 31, you must submit an
acreage report for all such crops on or before the latest applicable
acreage reporting date for such crops; and
(2) If you insure multiple crops with us that have final planting
dates on or after December 31 but before August 15, you must submit an
acreage report for all such crops on or before the latest applicable
acreage reporting date for such crops.
(3) Notwithstanding the provisions in sections 6(a) (1) and (2):
(i) If the Special Provisions designate separate planting periods
for a crop, you must submit an acreage report for each planting period
on or before the acreage reporting date contained in the Special
Provisions for the planting period;
(ii) 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:
(A) The acreage reporting date contained in the Special Provisions;
(B) The date determined in accordance with sections (a)(1) or (2);
or
(C) Five days after the end of the late planting period for the
insured crop, if applicable; and
(iii) If you plant the insured crop on or within five days prior to
the final planting date and the final planting date is five or fewer
days prior to the acreage reporting date, you must submit an acreage
report no later than five days after the acreage reporting date (for
example, if the final planting date contained in the Special Provisions
is July 10, the acreage reporting date contained in the Special
Provisions is July 15 and you plant the insured crop on July 9, you have
until July 20 to submit an acreage report for the insured crop).
(b) If you do not have a share in an insured crop in the county for
the crop year, you must submit an acreage report, on or before the
acreage reporting date, so indicating.
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(c) Your acreage report must include the following information, if
applicable:
(1) The amount of acreage of the crop in the county (insurable and
not insurable) in which you have a share and the date the insured crop
was planted on the unit as follows:
(i) The last date any timely planted acreage was planted and the
number of acres planted by such date; and
(ii) The date of planting and the number of acres planted per day
for acreage planted during the late planting period (If you fail to
report the number of acres planted on a daily basis, all acreage planted
in the late planting period will be presumed to have been planted on the
last day planting took place in the late planting period for the
purposes of section 16);
(2) Your share at the time coverage begins;
(3) The practice;
(4) The type;
(5) The land identifier for the crop acreage (e.g., legal
description, FSA farm number or common land unit number if provided to
you by FSA, etc.) as required on our form; and
(6) Acknowledgement of your duty to notify us if you intend to
direct market your crop or if acceptable verifiable records are required
and will not be available. This acknowledgement must also include a
signed marketing certification if required in section 38.
(d) Regarding the ability to revise an acreage report you have
submitted to us:
(1) For planted acreage, you cannot revise any information
pertaining to the planted acreage after the acreage reporting date
without our consent (Consent may only be provided when no cause of loss
has occurred; our appraisal has determined that the insured crop will
produce at least 90 percent of the yield used to determine your
guarantee or the amount of insurance for the unit (including reported
and unreported acreage), except when there are unreported units (see
section 6(f)); the information on the acreage report is clearly
transposed; you provide adequate evidence that we or someone from USDA
have committed an error regarding the information on your acreage
report; or if expressly permitted by the policy);
(2) For prevented planting acreage:
(i) On or before the acreage reporting date, you can change any
information on any initially submitted acreage report, except as
provided in section 6(d)(2)(iii) (e.g., you can correct the reported
share, add acreage of the insured crop that was prevented from being
planted, etc.);
(ii) After the acreage reporting date, you cannot revise any
information on the acreage report (e.g., if you have failed to report
prevented planting acreage on or before the acreage reporting date, you
cannot revise it after the acreage reporting date to include prevented
planting acreage) but we will revise information that is clearly
transposed or if you provide adequate evidence that we or someone from
USDA have committed an error regarding the information on your acreage
report; and
(iii) You cannot revise your initially submitted acreage report at
any time to change the insured crop, or type, that was reported as
prevented from being planted;
(3) You may request an acreage measurement from FSA or a business
that provides such measurement service prior to the acreage reporting
date, submit documentation of such request and an acreage report with
estimated acreage by the acreage reporting date, and if the acreage
measurement shows the estimated acreage was incorrect, we will revise
your acreage report to reflect the correct acreage:
(i) If an acreage measurement is only requested for a portion of the
acreage within a unit, you must separately designate the acreage for
which an acreage measurement has been requested;
(ii) If an acreage measurement is not provided to us by the time we
receive a notice of loss, we may:
(A) Defer finalization of the claim until the measurement is
completed, and:
(1) Make all necessary loss determinations, except the acreage
measurement; and
(2) Finalize the claim in accordance with applicable policy
provisions after you provide the acreage measurement to us (If you fail
to provide the measurement, your claim will not be paid); or
(B) Elect to measure the acreage, and:
(1) Finalize your claim in accordance with applicable policy
provisions; and
(2) Estimated acreage under this section will not be accepted from
you for any subsequent acreage report; and
(iii) Premium will still be due in accordance with sections 2(e) and
7. If the acreage is not measured as specified in section 6(d)(3)(ii)
and the acreage measurement is not provided to us at least 15 days prior
to the premium billing date, your premium will be based on the estimated
acreage and will be revised, if necessary, when the acreage measurement
is provided. If the acreage measurement is not provided by the
termination date, you will be precluded from providing any estimated
acreage for all subsequent crop years.
(4) If there is an irreconcilable difference between:
(i) The acreage measured by FSA or a measuring service and our on-
farm measurement, our on-farm measurement will be used; or
(ii) The acreage measured by a measuring service, other than our on-
farm measurement, and FSA, the FSA measurement will be used; and
(5) If the acreage report has been revised in accordance with
section 6(d)(1), (2), or (3), the
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information on the initial acreage report will not be considered
misreported for the purposes of section 6(g).
(e) We may elect to determine all premiums and indemnities based on
the information you submit on the acreage report or upon the factual
circumstances we determine to have existed, subject to the provisions
contained in section 6(g).
(f) 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 to deny
liability on such units. If we deny liability for the unreported units,
your share of any production from the unreported units will be
allocated, for loss purposes only, as production to count to the
reported units in proportion to the liability on each reported unit.
However, such production will not be allocated to prevented planting
acreage or otherwise affect any prevented planting payment.
(g) You must provide all required reports and you are responsible
for the accuracy of all information contained in those reports. You
should verify the information on all such reports prior to submitting
them to us.
(1) Except as provided in section 6(g)(2), if you submit information
on any report that is different than what is determined to be correct
and such information results in:
(i) A lower liability than the actual liability determined, the
production guarantee or amount of insurance on the unit will be reduced
to an amount consistent with the reported information (In the event the
insurable acreage is under-reported for any unit, all production or
value from insurable acreage in that unit will be considered production
or value to count in determining the indemnity); or
(ii) A higher liability than the actual liability determined, the
information contained in the acreage report will be revised to be
consistent with the correct information.
(2) If your share is misreported and the share is:
(i) Under-reported, any claim will be determined using the share you
reported; or
(ii) Over-reported, any claim will be determined using the share we
determine to be correct.
(h) If we discover you have incorrectly reported any information on
the acreage report for any crop year, you may be required to provide
documentation in subsequent crop years substantiating your report of
acreage for those crop years, including, but not limited to, an acreage
measurement service at your own expense. If the correction of any
misreported information would affect an indemnity, prevented planting
payment or replanting payment that was paid in a prior crop year, such
claim will be adjusted and you will be required to repay any overpaid
amounts.
(i) Errors in reporting units may be corrected by us at the time of
adjusting a loss to reduce our liability and to conform to applicable
unit division guidelines.
7. Annual Premium and Administrative Fees
(a) The annual premium is earned and payable at the time coverage
begins. You will be billed for the premium and administrative fee not
earlier than the premium billing date specified in the Special
Provisions.
(b) Premium or administrative fees owed by you will be offset from
an indemnity or prevented planting payment due you in accordance with
section 2(e).
(c) The annual premium amount is determined, as applicable, by
either:
(1) Multiplying the production guarantee per acre times your price
election or your projected price, as applicable, times the premium rate,
times the insured acreage, times your share at the time coverage begins,
and times any premium adjustment percentages that may apply; or
(2) Multiplying your amount of insurance per acre times the premium
rate, times the insured acreage, times your share at the time coverage
begins, and times any premium adjustment percentages that may apply.
(d) The information needed to determine the premium rate and any
premium adjustment percentages that may apply are contained in the
actuarial documents or an approved written agreement.
(e) In addition to the premium charged:
(1) You, unless otherwise authorized in 7 CFR part 400, must pay an
administrative fee each crop year of $30 per crop per county for all
levels of coverage in excess of catastrophic risk protection.
(2) The administrative fee must be paid no later than the time that
premium is due.
(3) Payment of an administrative fee will not be required if you
file a bona fide zero acreage report on or before the acreage reporting
date for the crop. If you falsely file a zero acreage report you may be
subject to criminal and administrative sanctions.
(4) The administrative fee will be waived if you request it and:
(i) You qualify as a beginning farmer or rancher, or veteran farmer
or rancher;
(ii) You qualify as a limited resource farmer; or
(iii) You were insured prior to the 2005 crop year or for the 2005
crop year and your administrative fee was waived for one or more of
those crop years because you qualified as a limited resource farmer
under a policy definition previously in effect, and you remain qualified
as a limited resource farmer under the definition that was in effect at
the time the administrative fee was waived.
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(5) Failure to pay the administrative fees when due may make you
ineligible for certain other USDA benefits.
(f) If the amount of premium (gross premium less premium subsidy
paid on your behalf by FCIC) and administrative fee you are required to
pay for any acreage exceeds the liability for the acreage, coverage for
those acres will not be provided (no premium or administrative fee will
be due and no indemnity will be paid for such acreage).
(g) If you qualify as a beginning farmer or rancher, or veteran
farmer or rancher, your premium subsidy will be 10 percentage points
greater than the premium subsidy that you would otherwise receive,
unless otherwise specified in the Special Provisions.
(h) You will be ineligible for any premium subsidy paid on your
behalf by FCIC for any policy issued by us if:
(1) USDA determines you have committed a violation of the highly
erodible land conservation or wetland conservation provisions of 7 CFR
part 12 as amended by the Agricultural Act of 2014; or
(2) You have not filed form AD-1026 with FSA for the reinsurance
year by the premium billing date.
(i) Notwithstanding section 7(h)(2), you may be eligible for premium
subsidy without having a timely filed form AD-1026:
(A) For the initial reinsurance year if you certify by the premium
billing date for your policy that you meet the qualifications as
outlined in FCIC procedures for producers who are new to farming, new to
crop insurance, a new entity, or have not previously been required to
file form AD-1026; or
(B) If FSA approves relief for failure to timely file due to
circumstances beyond your control or failure to timely provide adequate
information to complete form AD-1026 in accordance with the provisions
contained in 7 CFR part 12.
(ii) To be eligible for premium subsidy paid on your behalf by FCIC,
it is your responsibility to assure you meet all the requirements for:
(A) Compliance with the conservation provisions specified in section
7(h)(1) of this section; and
(B) Filing form AD-1026 to be properly identified as in compliance
with the conservation provisions specified in section 7(h)(1) of this
section.
8. Insured Crop
(a) The insured crop will be that shown on your accepted application
and as specified in the Crop Provisions or Special 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) That is not grown on planted acreage (except for the purposes of
prevented planting coverage), or that is a type, class or variety or
where the conditions under which the crop is planted are not generally
recognized for the area (For example, where agricultural experts
determine that planting a non-irrigated corn crop after a failed small
grain crop on the same acreage in the same crop year is not appropriate
for the area);
(2) For which the information necessary for insurance (price
election, amount of insurance, projected price and harvest price, as
applicable, premium rate, etc.) is not included in the actuarial
documents, unless such information is provided by a written agreement in
accordance with section 18;
(3) That is a volunteer crop;
(4) Planted following the same crop on the same acreage and the
first planting of the crop has been harvested in the same crop year
unless specifically permitted by the Crop Provisions or the Special
Provisions (For example, the second planting of grain sorghum would not
be insurable if grain sorghum had already been planted and harvested on
the same acreage during the crop year);
(5) That is planted for the development or production of hybrid seed
or for experimental purposes, unless permitted by the Crop Provisions or
by written agreement to insure such crop; or
(6) That is used solely for wildlife protection or management. If
the lease states that specific acreage must remain unharvested, only
that acreage is uninsurable. If the lease specifies that a percentage of
the crop must be left unharvested, your share will be reduced by such
percentage.
(c) Although certain policy documents may state that a crop type,
class, variety or practice is not insurable, it does not mean all other
crop types, classes, varieties or practices are insurable. To be
insurable the crop type, class, variety or practice must meet all the
conditions in this section.
9. Insurable Acreage
(a) All acreage planted to the insured crop in the county in which
you have a share:
(1) Except as provided in section 9(a)(2), is insurable if the
acreage has been planted and harvested or insured (including insured
acreage that was prevented from being planted) in any one of the three
previous crop years. Acreage that has not been planted and harvested
(grazing is not considered harvested for the purposes of section
9(a)(1)) or insured in at least one of the three previous crop years may
still be insurable if:
(i) Such acreage was not planted:
(A) In at least two of the three previous crop years to comply with
any other USDA program;
(B) Due to the crop rotation, the acreage would not have been
planted in the previous three years (e.g., a crop rotation of corn,
soybeans, and alfalfa; and the alfalfa remained for four years before
the acreage was planted to corn again); or
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(C) Because a perennial tree, vine, or bush crop was on the acreage
in at least two of the previous three crop years;
(ii) Such acreage constitutes five percent or less of the insured
planted acreage in the unit;
(iii) Such acreage was not planted or harvested because it was
pasture or rangeland, the crop to be insured is also pasture or
rangeland, and the Crop Provisions, Special Provisions, or a written
agreement specifically allow insurance for such acreage; or
(iv) The Crop Provisions, Special Provisions, or a written agreement
specifically allow insurance for such acreage; or
(2) Is not insurable if:
(i) The only crop that has been planted and harvested on the acreage
in the three previous crop years is a cover, hay (except wheat harvested
for hay) or forage crop (except insurable silage). However, such acreage
may be insurable only if:
(A) The crop to be insured is a hay or forage crop and the Crop
Provisions, Special Provisions, or a written agreement specifically
allow insurance for such acreage; or
(B) The hay or forage crop was part of a crop rotation;
(ii) The acreage has been strip-mined. However, such acreage may be
insurable only if:
(A) An agricultural commodity, other than a cover, hay (except wheat
harvested for hay), or forage crop (except insurable silage) has been
harvested from the acreage for at least five crop years after the strip-
mined land was reclaimed; or
(B) A written agreement specifically allows insurance for such
acreage;
(iii) The actuarial documents do not provide the information
necessary to determine the premium rate, unless insurance is allowed by
a written agreement;
(iv) The insured crop is damaged and it is practical to replant the
insured crop, but the insured crop is not replanted;
(v) The acreage is interplanted, unless insurance is allowed by the
Crop Provisions;
(vi) The acreage is otherwise restricted by the Crop Provisions or
Special Provisions;
(vii) The acreage is planted in any manner other than as specified
in the policy provisions for the crop unless a written agreement
specifically allows insurance for such planting;
(viii) The acreage is of a second crop, if you elect not to insure
such acreage when an indemnity for a first insured crop may be subject
to reduction in accordance with the provisions of section 15 and you
intend to collect an indemnity payment that is equal to 100 percent of
the insurable loss for the first insured crop acreage. This election
must be made on a first insured crop unit basis (e.g., if the first
insured crop unit contains 40 planted acres that may be subject to an
indemnity reduction, then no second crop can be insured on any of the 40
acres). In this case:
(A) If the first insured crop is insured under this policy, you must
provide written notice to us of your election not to insure acreage of a
second crop at the time the first insured crop acreage is released by us
(if no acreage in the first insured crop unit is released, this election
must be made by the earlier of the acreage reporting date for the second
crop or when you sign the claim for indemnity for the first insured
crop) or, if the first insured crop is insured under Area Risk
Protection Insurance (7 CFR part 407), this election must be made before
the second crop insured under this policy is planted, and if you fail to
provide such notice, the second crop acreage will be insured in
accordance with the applicable policy provisions and you must repay any
overpaid indemnity for the first insured crop;
(B) In the event a second crop is planted and insured with a
different insurance provider, or planted and insured by a different
person, you must provide written notice to each insurance provider that
a second crop was planted on acreage on which you had a first insured
crop; and
(C) You must report the crop acreage that will not be insured on the
applicable acreage report; or
(ix) The acreage is of a crop planted following a second crop or
following an insured crop that is prevented from being planted after a
first insured crop, unless it is a practice that is generally recognized
by agricultural experts or organic agricultural experts for the area to
plant three or more crops for harvest on the same acreage in the same
crop year, and additional coverage insurance provided under the
authority of the Act is offered for the third or subsequent crop in the
same crop year. Insurance will only be provided for a third or
subsequent crop as follows:
(A) You must provide records acceptable to us that show:
(1) You have produced and harvested the insured crop following two
other crops harvested on the same acreage in the same crop year in at
least two of the last four years in which you produced the insured crop;
or
(2) The applicable acreage has had three or more crops produced and
harvested on it in the same crop year in at least two of the last four
years in which the insured crop was grown on the acreage; and
(B) The amount of insurable acreage will not exceed 100 percent of
the greatest number of acres for which you provide the records required
in section 9(a)(2)(ix)(A).
(b) If insurance is provided for an irrigated practice, you must
report as irrigated only that acreage for which you have adequate
facilities and adequate water, or the reasonable expectation of
receiving adequate water at the time coverage begins, to carry out a
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good irrigation practice. If you knew or had reason to know that your
water may be reduced before coverage begins, no reasonable expectation
exists.
(c) Notwithstanding the provisions in section 8(b)(2), if acreage is
irrigated and a premium rate is not provided for an irrigated practice,
you may either report and insure the irrigated acreage as ``non-
irrigated,'' or report the irrigated acreage as not insured (If you
elect to insure such acreage under a non-irrigated practice, your
irrigated yield will only be used to determine your approved yield if
you continue to use a good irrigation practice. If you do not use a good
irrigation practice, you will receive a yield determined in accordance
with section 3(h)(3)).
(d) We may restrict the amount of acreage that 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.
(e) Except as provided in section 9(f), and in accordance with
section 9(g), in the states of Iowa, Minnesota, Montana, Nebraska, North
Dakota, or South Dakota, native sod acreage may be insured if the
requirements of section 9(a) have been met but will:
(1) Notwithstanding the provisions in section 3 regarding your
production guarantee, receive a production guarantee (per acre) that is
based on 65 percent of the transitional yield for the county; and
(2) For additional coverage policies, receive a premium subsidy that
is 50 percentage points less than would otherwise be provided on acreage
not qualifying as native sod. If the premium subsidy applicable to these
acres is less than 50 percent before the reduction, you will receive no
premium subsidy.
(f) Section 9(e) is not applicable to cumulative native sod acreage
that is five acres or less in the county.
(g) Section 9(e) is applicable during the first 4 crop years of
planting on native sod acreage that has been tilled beginning on
February 8, 2014, and ending on December 20, 2018. Section 9(e) is
applicable during 4 cumulative crop years of insurance within the first
10 crop years after initial tillage on native sod acreage tilled after
December 20, 2018.
10. Share Insured
(a) Insurance will attach:
(1) Only if the person completing the application has a share in the
insured crop; and
(2) Only to that person's share, except that insurance may attach to
another person's share of the insured crop if the other person has a
share of the crop and:
(i) The application clearly states the insurance is requested for a
person other than an individual (e.g., a partnership or a joint
venture); or
(ii) The application clearly states you as a landlord will insure
your tenant's share, or you as a tenant will insure your landlord's
share. If you as a landlord will insure your tenant's share, or you as a
tenant will insure your landlord's share, you must provide evidence of
the other party's approval (lease, power of attorney, etc.) and such
evidence will be retained by us:
(A) You also must clearly set forth the percentage shares of each
person on the acreage report; and
(B) For each landlord or tenant, you must report the landlord's or
tenant's social security number, employer identification number, or
other identification number we assigned for the purposes of this policy,
as applicable.
(b) With respect to your share:
(1) We will consider to be included in your share under your policy,
any acreage or interest reported by or for:
(i) Your spouse, unless such spouse can prove he/she has a separate
farming operation, which includes, but is not limited to, separate land
(transfers of acreage from one spouse to another is not considered
separate land), separate capital, separate inputs, separate accounting,
and separate maintenance of proceeds; or
(ii) Your child who resides in your household or any other member of
your household, unless such child or other member of the household can
demonstrate such person has a separate share in the crop (Children who
do not reside in your household are not included in your share); and
(2) If it is determined that the spouse, child or other member of
the household has a separate policy but does not have a separate farming
operation or share of the crop, as applicable:
(i) The policy for one spouse or child or other member of the
household will be void and the policy remaining in effect will be
determined in accordance with section 22(a)(1) and (2);
(ii) The acreage or share reported under the policy that is voided
will be included under the remaining policy; and
(iii) No premium will be due and no indemnity will be paid for the
voided policy.
(c) Acreage rented for a percentage of the crop, or 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.
(d) Acreage rented for cash, or a lease containing provisions for
either a minimum payment or a crop share (such as a 50/50 share or
$100.00 per acre, whichever is greater) will be considered a cash lease.
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11. Insurance Period
(a) Except for prevented planting coverage (see section 17),
coverage begins on each unit or part of a unit at the later of:
(1) The date we accept your application (For the purposes of this
paragraph, the date of acceptance is the date that you submit a properly
executed application in accordance with section 2);
(2) The date the insured crop is planted; or
(3) The calendar date contained in the Crop Provisions for the
beginning of the insurance period.
(b) Coverage ends on each unit or part of a unit at the earliest of:
(1) Total destruction of the insured crop;
(2) Harvest of the insured crop;
(3) Final adjustment of a loss on a unit;
(4) The calendar date contained in the Crop Provisions or Special
Provisions for the end of the insurance period;
(5) Abandonment of the insured crop; or
(6) As otherwise specified in the Crop Provisions.
(c) Except as provided in the Crop Provisions or applicable
endorsement, in addition to the requirements of section 11(b), coverage
ends on any acreage within a unit once any event specified in section
11(b) occurs on that acreage. Coverage only remains in effect on acreage
that has not been affected by an event specified in section 11(b).
12. Causes of Loss
Insurance is provided only to protect against unavoidable, naturally
occurring events. A list of the covered naturally occurring events is
contained in the applicable Crop Provisions. All other causes of loss,
including but not limited to the following, are not covered:
(a) Any act by any person that affects the yield, quality or price
of the insured crop (e.g., chemical drift, fire, terrorism, etc.);
(b) Failure to follow recognized good farming practices for the
insured crop;
(c) Water that is contained by or within structures that are
designed to contain a specific amount of water, such as dams, locks or
reservoir projects, etc., on any acreage when such water stays within
the designed limits (For example, a dam is designed to contain water to
an elevation of 1,200 feet but you plant a crop on acreage at an
elevation of 1,100 feet. A storm causes the water behind the dam to rise
to an elevation of 1,200 feet. Under such circumstances, the resulting
damage would not be caused by an insurable cause of loss. However, if
you planted on acreage that was above 1,200 feet elevation, any damage
caused by water that exceeded that elevation would be caused by an
insurable cause of loss);
(d) Failure or breakdown of the irrigation equipment or facilities,
or the inability to prepare the land for irrigation using your
established irrigation method (e.g., furrow irrigation), unless the
failure, breakdown or inability is due to a cause of loss specified in
the Crop Provisions.
(1) You must make all reasonable efforts to restore the equipment or
facilities to proper working order within a reasonable amount of time
unless we determine it is not practical to do so.
(2) Cost will not be considered when determining whether it is
practical to restore the equipment or facilities;
(e) Failure to carry out a good irrigation practice for the insured
crop, if applicable; or
(f) Any cause of loss that results in damage that is not evident or
would not have been evident during the insurance period, including, but
not limited to, damage that only becomes evident after the end of the
insurance period unless expressly authorized in the Crop Provisions.
Even though we may not inspect the damaged crop until after the end of
the insurance period, damage due to insured causes that would have been
evident during the insurance period will be covered.
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 planted acreage for the unit (as determined on the final
planting date or within the late planting period if a late planting
period is applicable). If the crops to be replanted are in a whole-farm
unit, the 20 acres or 20 percent requirement is to be applied separately
to each crop to be replanted in the whole-farm unit.
(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 earliest planting 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:
(1) The lesser of your actual cost for replanting or the amount
specified in the Crop Provisions or Special Provisions; or
(2) If the Crop Provisions or Special Provisions specify that your
actual cost will not be used to determine your replanting payment, the
amount determined in accordance with the Crop Provisions or Special
Provisions.
(d) No replanting payment will be paid if we determine it is not
practical to replant.
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14. Duties in the Event of Damage, Loss, Abandonment, Destruction, or
Alternative Use of Crop or Acreage
Your Duties--
(a) In the case of damage or loss of production or revenue to any
insured crop, you must protect the crop from further damage by providing
sufficient care.
(b) You must provide a notice of loss in accordance with this
section. Notice provisions:
(1) For a planted crop, when there is damage or loss of production,
you must give us notice, by unit, within 72 hours of your initial
discovery of damage or loss of production (but not later than 15 days
after the end of the insurance period, even if you have not harvested
the crop).
(2) For crops for which revenue protection is elected, if there is
no damage or loss of production, you must give us notice not later than
45 days after the latest date the harvest price is released for any crop
in the unit where there is a revenue loss.
(3) In the event you are prevented from planting an insured crop
that has prevented planting coverage, you must notify us within 72 hours
after:
(i) The final planting date, if you do not intend to plant the
insured crop during the late planting period or if a late planting
period is not applicable; or
(ii) You determine you will not be able to plant the insured crop
within any applicable late planting period.
(4) All notices required in this section that must be received by us
within 72 hours may be made by telephone or in person to your crop
insurance agent but must be confirmed in writing within 15 days.
(5) If you fail to submit a notice of loss in accordance with these
notice provisions, any loss or prevented planting claim will be
considered solely due to an uninsured cause of loss for the acreage for
which such failure occurred, unless we determine that we have the
ability to accurately adjust the loss. If we determine that we do not
have the ability to accurately adjust the loss:
(i) For any prevented planting claim, no prevented planting coverage
will be provided and no premium will be owed or prevented planting
payment will be paid; or
(ii) For any claim for indemnity, no indemnity will be paid but you
will still be required to pay all premiums owed.
(6) You must give us notice in accordance with section 36(a)(3) to
replace post-quality actual yields for previous crop years.
(c) Representative samples:
(1) If representative samples are required by the Crop Provisions,
you must leave representative samples of the unharvested crop intact:
(i) If you report damage less than 15 days before the time you will
begin harvest or during harvest of the damaged unit; or
(ii) At any time when required by us.
(2) The samples must be left intact until we inspect them or until
15 days after completion of harvest on the remainder of the unit,
whichever is earlier.
(3) Unless otherwise specified in the Crop Provisions or Special
Provisions, the samples of the crop in each field in the unit must be 10
feet wide and extend the entire length of the rows, if the crop is
planted in rows, or if the crop is not planted in rows, the longest
dimension of the field.
(4) The period to retain representative samples may be extended if
it is necessary to accurately determine the loss. You will be notified
in writing of any such extension.
(d) Consent:
(1) You must obtain consent from us before, and notify us after you:
(i) Destroy any of the insured crop that is not harvested;
(ii) Put the insured crop to an alternative use;
(iii) Put the acreage to another use; or
(iv) Abandon any portion of the insured crop.
(2) We will not give consent for any of the actions in section
14(d)(1)(i) through (iv) if it is practical to replant the crop or until
we have made an appraisal of the potential production of the crop.
(3) Failure to obtain our consent will result in the assignment of
an amount of production or value to count in accordance with the
Settlement of Claim provisions of the applicable Crop Provisions.
(e) Claims:
(1) Except as otherwise provided in your policy, you must submit a
claim declaring the amount of your loss by the dates shown in section
14(e)(3), unless you:
(i) Request an extension in writing by such date and we agree to
such request (Extensions will only be granted if the amount of the loss
cannot be determined within such time period because the information
needed to determine the amount of the loss is not available); or
(ii) Have harvested farm-stored production and elect, in writing, to
delay measurement of your farm-stored production and settlement of any
potential associated claim for indemnity as allowed by the Special
Provisions (Extensions will be granted for this purpose up to 180 days
after the end of the insurance period).
(A) For policies that require APH, if such extension continues
beyond the date you are required to submit your production report, you
will be assigned the previous year's approved yield as a temporary yield
in accordance with applicable procedures.
(B) Any extension does not extend any date specified in the policy
by which premiums,
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administrative fees, or other debts owed must be paid.
(C) Damage that occurs after the end of the insurance period (for
example, while the harvested crop production is in storage) is not
covered; and
(2) Failure to timely submit a claim or provide the required
information necessary to determine the amount of the claim will result
in no indemnity, prevented planting payment or replanting payment:
(i) Even though no indemnity or replanting payment is due, you will
still be required to pay the premium due under the policy for the unit;
or
(ii) Failure to timely submit a prevented planting claim will result
in no prevented planting coverage and no premium will be due.
(3) You must submit a claim not later than:
(i) For policies other than revenue protection, 60 days after the
date the insurance period ends for all acreage in the unit (When there
is acreage in the unit where the insurance period ended on different
dates, it is the last date the insurance period ends on the unit. For
example, if a unit has corn acreage that was put to another use on July
15 and corn acreage where harvest was completed on September 30, the
claim must be submitted not later than 60 days after September 30); or
(ii) For revenue protection, the later of:
(A) 60 days after the last date the harvest price is released for
any crop in the unit; or
(B) The date determined in accordance with section 14(e)(3)(i).
(4) To receive any indemnity (or receive the rest of an indemnity in
the case of acreage that is planted to a second crop), prevented
planting payment or replanting payment, you must, if applicable:
(i) Provide:
(A) A complete harvesting, production, and marketing record of each
insured crop by unit including separate records showing the same
information for production from any acreage not insured.
(B) Records as indicated below if you insure any acreage that may be
subject to an indemnity reduction as specified in section 15(e)(2):
(1) Separate records of production from such acreage for all insured
crops planted on the acreage (e.g., if you have an insurable loss on 10
acres of wheat and subsequently plant cotton on the same 10 acres, you
must provide records of the wheat and cotton production on the 10 acres
separate from any other wheat and cotton production that may be planted
in the same unit). If you fail to provide separate records for such
acreage, we will allocate the production of each crop to the acreage in
proportion to our liability for the acreage; or
(2) If there is no loss on the unit that includes acreage of the
second crop, no separate records need to be submitted for the second
crop and you can receive the rest of the indemnity for the first insured
crop.
(C) Any other information we may require to settle the claim.
(ii) Cooperate with us in the investigation or settlement of the
claim, and, as often as we reasonably require:
(A) Show us the damaged crop;
(B) Allow us to remove samples of the insured crop; and
(C) Provide us with records and documents we request and permit us
to make copies.
(iii) Establish:
(A) The total production or value received for the insured crop on
the unit;
(B) That any loss occurred during the insurance period;
(C) That the loss was caused by one or more of the insured causes
specified in the Crop Provisions; and
(D) That you have complied with all provisions of this policy.
(iv) Upon our request, or that of any USDA employee authorized to
conduct investigations of the crop insurance program, submit to an
examination under oath.
(5) Failure to comply with any requirement contained in section
14(e)(4) will result in denial of the claim and any premium will still
be owed, unless the claim denied is for prevented planting.
Our Duties--
(f) If you have complied with all the policy provisions, we will pay
your loss within 30 days after the later of:
(1) We reach agreement with you;
(2) Completion of arbitration, reconsideration of determinations
regarding good farming practices or any other appeal that results in an
award in your favor, unless we exercise our right to appeal such
decision;
(3) Completion of any investigation by USDA, if applicable, of your
current or any past claim for indemnity if no evidence of wrongdoing has
been found (If any evidence of wrongdoing has been discovered, the
amount of any indemnity, prevented planting or replant overpayment as a
result of such wrongdoing may be offset from any indemnity or prevented
planting payment owed to you); or
(4) The entry of a final judgment by a court of competent
jurisdiction.
(g) 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.
(h) 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.
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(i) We recognize and apply the loss adjustment procedures
established or approved by the Federal Crop Insurance Corporation.
(j) For revenue protection, we may make preliminary indemnity
payments for crop production losses prior to the release of the harvest
price if you have not elected the harvest price exclusion.
(1) First, we may pay an initial indemnity based upon your projected
price, in accordance with the applicable Crop Provisions provided that
your production to count and share have been established; and
(2) Second, after the harvest price is released, and if it is not
equal to the projected price, we will recalculate the indemnity payment
and pay any additional indemnity that may be due.
15. Production Included in Determining an Indemnity and Payment
Reductions
(a) The total production to be counted for a unit will include all
production determined in accordance with the policy.
(b) Appraised production will be used to calculate your claim if you
are not going to harvest your acreage. Such appraisals may be conducted
after the end of the insurance period. If you harvest the crop after the
crop has been appraised:
(1) You must provide us with the amount of harvested production (If
you fail to provide acceptable verifiable records or acceptable farm
management records of harvested production, no indemnity will be paid
and you will be required to return any previously paid indemnity for the
unit that was based on an appraised amount of production); and
(2) If the harvested production exceeds the appraised production,
claims will be adjusted using the harvested production, and you will be
required to repay any overpaid indemnity; or
(3) If the harvested production is less than the appraised
production, and:
(i) You harvest after the end of the insurance period, your
appraised production will be used to adjust the loss unless you can
prove that no additional causes of loss or deterioration of the crop
occurred after the end of the insurance period; or
(ii) You harvest before the end of the insurance period, your
harvested production will be used to adjust the loss, unless:
(A) The applicable crop provisions require an appraisal prior to
harvest and you are unable to prove that additional insured causes of
loss occurred after the appraisal or deterioration of the crop can be
attributed to insurable causes after the appraisal was completed; then
your appraised production will be used to adjust the loss; or
(B) You intend to direct market your crop or your production records
will not be from a disinterested third party and we determine an
appraisal prior to harvest was necessary and you are unable to prove
that additional insured causes of loss occurred after the appraisal or
deterioration of the crop can be attributed to insurable causes after
the appraisal was completed; then your appraised production will be used
to adjust the loss.
(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
as described in our form used to exclude hail and fire.
(d) The amount of an indemnity that may be determined under the
applicable provisions of your policy may be reduced by an amount,
determined in accordance with the Crop Provisions or Special Provisions,
to reflect out-of-pocket expenses that were not incurred by you as a
result of not planting, caring for, or harvesting the crop. Indemnities
paid for acreage prevented from being planted will be based on a reduced
guarantee as provided for in the policy and will not be further reduced
to reflect expenses not incurred.
(e) With respect to acreage where you have suffered an insurable
loss to planted acreage of your first insured crop in the crop year,
except in the case of double cropping described in section 15(h):
(1) You may elect to not plant or to plant and not insure a second
crop on the same acreage for harvest in the same crop year and collect
an indemnity payment that is equal to 100 percent of the insurable loss
for the first insured crop; or
(2) You may elect to plant and insure a second crop on the same
acreage for harvest in the same crop year (you will pay the full premium
and, if there is an insurable loss to the second crop, receive the full
amount of indemnity that may be due for the second crop, regardless of
whether there is a subsequent crop planted on the same acreage) and:
(i) Collect an indemnity payment that is 35 percent of the insurable
loss for the first insured crop;
(ii) Be responsible for premium that is 35 percent of the premium
that you would otherwise owe for the first insured crop; and
(iii) If the second crop does not suffer an insurable loss:
(A) Collect an indemnity payment for the other 65 percent of
insurable loss that was not previously paid under section 15(e)(2)(i);
and
(B) Be responsible for the remainder of the premium for the first
insured crop that you did not pay under section 15(e)(2)(ii).
(f) With respect to acreage where you were prevented from planting
the first insured crop in the crop year, except in the case of double
cropping described in section 15(h):
(1) If a second crop is not planted on the same acreage for harvest
in the same crop year, you may collect a prevented planting payment that
is equal to 100 percent of the prevented planting payment for the
acreage for the first insured crop; or
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(2) If a second crop is planted on the same acreage for harvest in
the same crop year (you will pay the full premium and, if there is an
insurable loss to the second crop, receive the full amount of indemnity
that may be due for the second crop, regardless of whether there is a
subsequent crop planted on the same acreage) and:
(i) Provided the second crop is not planted on or before the final
planting date or during the late planting period (as applicable) for the
first insured crop, you may collect a prevented planting payment that is
35 percent of the prevented planting payment for the first insured crop;
and
(ii) Be responsible for premium that is 35 percent of the premium
that you would otherwise owe for the first insured crop.
(g) The reduction in the amount of indemnity or prevented planting
payment and premium specified in sections 15(e) and 15(f), as
applicable, will apply:
(1) Notwithstanding the priority contained in the Agreement to
Insure section, which states that the Crop Provisions have priority over
the Basic Provisions when a conflict exists, to any premium owed or
indemnity or prevented planting payment made in accordance with the Crop
Provisions, and any applicable endorsement.
(2) Even if another person plants the second crop on any acreage
where the first insured crop was planted or was prevented from being
planted, as applicable.
(3) To a prevented planting payment if a cover crop that is planted
after the late planting period (or after the final planting date if a
late planting period is not applicable) is harvested for grain or seed
by you or another person, at any time.
(h) You may receive a full indemnity, or a full prevented planting
payment for a first insured crop when a second crop is planted on the
same acreage in the same crop year, if each of the following conditions
are met, regardless of whether or not the second crop is insured or
sustains an insurable loss:
(1) Planting two or more crops for harvest in the same crop year in
the area is generally recognized by agricultural experts or organic
agricultural experts;
(2) The second or more crops are customarily planted after the first
insured crop for harvest on the same acreage in the same crop year in
the area;
(3) Additional coverage insurance offered under the authority of the
Act is available in the county on the two or more crops that are double
cropped;
(4) In the case of prevented planting, the second crop is not
planted on or prior to the final planting date or, if applicable, prior
to the end of the late planting period for the first insured crop;
(5) You provide records, acceptable to us, of acreage and production
specific to the double cropped acreage proving that:
(i) You have double cropped acreage in at least 2 of the last 4 crop
years in which the first insured crop was grown; or
(ii) The applicable acreage was double cropped (by one or more other
producers, and the producer(s) will allow you to use their records) for
at least two of the last four crop years in which the first insured crop
was grown on it; and
(6) If you do not have records of acreage and production specific to
the double cropped acreage, as required in section 15(h)(5), but instead
have records that combine production from acreage you double cropped
with records of production from acreage you did not double crop, we will
allocate the first and second crop production to the specific acreage in
proportion to the liability for the acreage that was and was not double
cropped.
(7) With respect to double cropped acreage for which one of the
crops you have double cropped is insured under a plan of insurance not
covered under these Basic Provisions, each insured crop must follow its
own Basic Provisions, Crop Provisions, and Special Provisions to
determine if the double cropping requirements have been met. If the
double cropping requirements in the applicable Basic Provisions, Crop
Provisions, or Special Provisions have not been met for each insured
crop, section 15(e) of these Basic Provisions applies.
(i) If you provided acceptable records in accordance with section
15(h), your double cropping history is limited to the highest number of
acres double cropped within the applicable 4-year period as determined
in section 15(h)(5):
(1) If the records you provided are from acreage you double cropped
in at least two of the last four crop years, you may apply your history
of double cropping to any acreage of the insured crop in the county (for
example, you have 100 cropland acres in the county and have double
cropped wheat and soybeans on all 100 acres in the county and you
acquire an additional 100 acres in the county, you can apply your
history of 100 double cropped acres to any of the 200 acres in the
county); or
(2) If the records you provided are from acreage that one or more
other producers double cropped in at least two of the last four crop
years, you may only use the history of double cropping for the same
physical acres from which double cropping records were provided (e.g.,
if a neighbor has double cropped 100 acres of wheat and soybeans in the
county and you acquire your neighbor's 100 double cropped acres and an
additional 100 acres in the county, you can only apply your neighbor's
history of double cropped acreage to the same 100 acres that your
neighbor double cropped).
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(3) If you acquired additional land for the current crop year and
the following calculation results in a greater number of double cropping
acres than determined in the introductory paragraph of section 15(i),
you may apply the percentage of acres that you have previously double
cropped to the total cropland acres that you are farming this year (if
greater):
(i) Determine the number of acres of the first insured crop that
were double cropped in each of the years for which double cropping
records are provided (for example, records are provided showing: 100
acres of wheat planted in 2019 and 50 of those acres were double cropped
with soybeans; and 100 acres of wheat planted in 2020 and 70 of those
acres were double cropped with soybeans);
(ii) Divide each result of section 15(i)(3)(i) by the number of
acres of the first insured crop that were planted in each respective
year (in the example in section 15(i)(3)(i), 50 divided by 100 equals 50
percent of the first insured crop acres that were double cropped in 2019
and 70 divided by 100 equals 70 percent of the first insured crop acres
that were double cropped in 2020);
(iii) Add the results of section 15(i)(3)(ii) and divide by the
number of years the first insured crop was double cropped (in the
example in section 15(i)(3)(i), 50 plus 70 equals 120 divided by 2
equals 60 percent); and
(iv) Multiply the result of section 15(i)(3)(iii) by the number of
insured acres of the first insured crop (in the example in section
15(i)(3)(i), 60 percent multiplied by the number of wheat acres insured
in 2021);
(j) If any Federal or State agency requires destruction of any
insured crop or crop production, as applicable, because it contains
levels of a substance, or has a condition, that is injurious to human or
animal health in excess of the maximum amounts allowed by the Food and
Drug Administration, other public health organizations of the United
States or an agency of the applicable State, you must destroy the
insured crop or crop production, as applicable, and certify that such
insured crop or crop production has been destroyed prior to receiving an
indemnity payment. Failure to destroy the insured crop or crop
production, as applicable, will result in you having to repay any
indemnity paid and you may be subject to administrative sanctions in
accordance with section 515(h) of the Act and 7 CFR part 400, subpart R,
and any applicable civil or criminal sanctions.
16. Late Planting
Unless limited by the Crop Provisions, insurance will be provided
for acreage planted to the insured crop after the final planting date in
accordance with the following:
(a) The production guarantee or amount of insurance for each acre
planted to the insured crop during the late planting period will be
reduced by 1 percent per day for each day planted after the final
planting date.
(b) Acreage planted after the late planting period (or after the
final planting date for crops that do not have a late planting period)
may be insured as follows:
(1) The production guarantee or amount of insurance for each acre
planted as specified in this subsection will be determined by
multiplying the production guarantee or amount of insurance that is
provided for acreage of the insured crop that is timely planted by the
prevented planting coverage level percentage you elected, or that is
contained in the Crop Provisions if you did not elect a prevented
planting coverage level percentage;
(2) Planting on such acreage must have been prevented by the final
planting date (or during the late planting period, if applicable) by an
insurable cause occurring within the insurance period for prevented
planting coverage; and
(3) All production from insured acreage as specified in this section
will be included as production to count for the unit.
(c) The premium amount for insurable acreage specified in this
section 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 such acreage exceeds the liability, coverage for those
acres will not be provided (no premium will be due and no indemnity will
be paid).
(d) Any acreage on which an insured cause of loss is a material
factor in preventing completion of planting, as specified in the
definition of ``planted acreage'' (e.g., seed is broadcast on the soil
surface but cannot be incorporated) will be considered as acreage
planted after the final planting date and the production guarantee will
be calculated in accordance with section 16(b)(1).
17. Prevented Planting
(a) Unless limited by the policy provisions, a prevented planting
payment may be made to you for eligible acreage if:
(1) You are prevented from planting the insured crop on insurable
acreage by an insured cause of loss that occurs:
(i) On or after 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 or after the sales closing
date for the previous crop year for the insured crop in the county,
provided insurance has been in force continuously since that date.
Cancellation for the purpose of transferring the policy to a different
insurance provider for the subsequent crop year will not be considered a
break in continuity for the purpose of the preceding sentence;
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(2) You include on your acreage report any insurable acreage of the
insured crop that was prevented from being planted; and
(3) You did not plant the insured crop during or after the late
planting period. Acreage planted to the insured crop during or after the
late planting period is covered under the late planting provisions.
(b) The actuarial documents may contain additional levels of
prevented planting coverage that you may purchase for the insured crop:
(1) Such purchase must be made on or before the sales closing date.
(2) If you do not purchase one of those additional levels by the
sales closing date, you will receive the prevented planting coverage
specified in the Crop Provisions.
(3) If you have a Catastrophic Risk Protection Endorsement for any
crop, the additional levels of prevented planting coverage will not be
available for that crop.
(4) You cannot increase your elected or assigned prevented planting
coverage level for any crop year if a cause of loss that could prevent
planting (even though it is not known whether such cause will actually
prevent planting) has occurred during the prevented planting insurance
period specified in section 17(a)(1)(i) or (ii) and prior to your
request to change your prevented planting coverage level.
(c) The premium amount for acreage that is prevented from being
planted will be the same as that for timely planted acreage except as
specified in section 15(f). If the amount of premium you are required to
pay (gross premium less the subsidy) for acreage that is prevented from
being planted 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).
(d) Prevented planting coverage will be provided against:
(1) Drought, failure of the irrigation water supply, failure or
breakdown of irrigation equipment or facilities, or the inability to
prepare the land for irrigation using your established irrigation
method, due to an insured cause of loss only if, on the final planting
date (or within the late planting period if you elect to try to plant
the crop), you provide documentation acceptable to us to establish:
(i) For non-irrigated acreage, the area that is prevented from being
planted has insufficient soil moisture for germination of seed or
progress toward crop maturity due to a prolonged period of dry weather.
The documentation for prolonged period of dry weather must be verifiable
using information collected by sources whose business it is to record
and study the weather, including, but not limited to, local weather
reporting stations of the National Weather Service; or
(ii) For irrigated acreage:
(A) Due to an insured cause of loss, there is not a reasonable
expectation of having adequate water to carry out an irrigated practice
or you are unable to prepare the land for irrigation using your
established irrigation method:
(1) If you knew or had reason to know on the final planting date or
during the late planting period that your water will be reduced, no
reasonable expectation exists; and
(2) Available water resources will be verified using information
from State Departments of Water Resources, U.S. Bureau of Reclamation,
Natural Resources Conservation Service or other sources whose business
includes collection of water data or regulation of water resources; or
(B) The irrigation equipment or facilities have failed or broken
down if such failure or breakdown is due to an insured cause of loss
specified in section 12(d).
(2) Causes other than drought, failure of the irrigation water
supply, failure or breakdown of the irrigation equipment or facilities,
or your inability to prepare the land for irrigation using your
established irrigation method, provided the cause of loss is specified
in the Crop Provisions. However, if it is possible for you to plant on
or prior to the final planting date when other producers in the area are
planting and you fail to plant, no prevented planting payment will be
made.
(e) The maximum number of acres that may be eligible for a prevented
planting payment for any crop will be determined as follows:
(1) The total number of acres eligible for prevented planting
coverage for all crops cannot exceed the number of acres of cropland in
your farming operation for the crop year, unless you are eligible for
prevented planting coverage on double cropped acreage in accordance with
section 17(f)(4). The eligible acres for each insured crop will be
determined as follows:
(i) If you have planted any crop in the county for which prevented
planting insurance was available (you will be considered to have planted
if your APH database contains actual planted acres) or have received a
prevented planting insurance guarantee in any one or more of the four
most recent crop years, and the insured crop is not required to be
contracted with a processor to be insured, unless you qualify for the
exception in section 17(e)(1)(ii)(E):
(A) The number of eligible acres will be the maximum number of acres
certified for APH purposes, or insured acres reported, for the crop in
any one of the four most recent crop years (not including reported
prevented planting acreage that was planted to a second crop unless you
meet the double cropping requirements in section 17(f)(4)).
(B) If you acquire additional land for the current crop year, the
number of eligible acres determined in section 17(e)(1)(i)(A) for
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a crop may be increased by multiplying it by the ratio of the total
cropland acres that you are farming this year (if greater) to the total
cropland acres that you farmed in the previous year, provided that:
(1) You submit proof to us that you acquired additional acreage for
the current crop year by any of the methods specified in section
17(f)(12);
(2) The additional acreage was acquired in time to plant it for the
current crop year using good farming practices; and
(3) No cause of loss has occurred at the time you acquire the
acreage that may prevent planting (except acreage you leased the
previous year and continue to lease in the current crop year).
(C) If you add adequate irrigation facilities to your existing non-
irrigated acreage or if you acquire additional land for the current crop
year that has adequate irrigation facilities, the number of eligible
acres determined in section 17(e)(1)(i)(A) for irrigated acreage of a
crop may be increased by multiplying it by the ratio of the total
irrigated acres that you are farming this year (if greater) to the total
irrigated acres that you farmed in the previous year, provided the
conditions in sections 17(e)(1)(i)(B)(1), (2) and (3) are met. If there
were no irrigated acres in the previous year, the eligible irrigated
acres for a crop will be limited to the lesser of the number of eligible
non-irrigated acres of the crop or the number of acres on which adequate
irrigation facilities were added.
(ii) If you have not planted any crop in the county for which
prevented planting insurance was available (you will be considered to
have planted if your APH database contains actual planted acres) or have
not received a prevented planting insurance guarantee in all of the four
most recent crop years, and the insured crop is not required to be
contracted with a processor to be insured:
(A) The number of eligible acres will be:
(1) The number of acres specified on your intended acreage report,
which must be submitted to us by the sales closing date for all crops
you insure for the crop year and that is accepted by us; or
(2) The number of acres specified on your intended acreage report,
which must be submitted to us within 10 days of the time you acquire the
acreage and that is accepted by us, if, on the sales closing date, you
do not have any acreage in a county and you subsequently acquire acreage
through a method described in section 17(f)(12) in time to plant it
using good farming practices.
(B) The total number of acres listed on the intended acreage report
may not exceed the number of acres of cropland in your farming operation
at the time you submit the intended acreage report.
(C) If you acquire additional acreage after we accept your intended
acreage report, the number of acres determined in section
17(e)(1)(ii)(A) may be increased in accordance with section
17(e)(1)(i)(B) and (C).
(D) Prevented planting coverage will not be provided for any acreage
included on the intended acreage report or any increased amount of
acreage determined in accordance with section 17(e)(1)(ii)(C) if a cause
of loss that may prevent planting occurred before the acreage was
acquired, as determined by us.
(E) If you were eligible to file an intended acreage report the
first crop year, you may file an intended acreage report for the second
crop year. If you choose to file an intended acreage report for the
second crop year, the number of eligible acres will be the number of
acres specified on your intended acreage report and not the number of
eligible acres determined in accordance with section 17(e)(1)(i).
(F) You cannot file an intended acreage report more than 2
consecutive crop years.
(iii) For any crop that must be contracted with a processor to be
insured:
(A) The number of eligible acres will be:
(1) The number of acres of the crop specified in the processor
contract, if the contract specifies a number of acres contracted for the
crop year;
(2) The result of dividing the quantity of production stated in the
processor contract by your approved yield, if the processor contract
specifies a quantity of production that will be accepted (for the
purposes of establishing the number of prevented planting acres, any
reductions applied to the transitional yield for failure to certify
acreage and production for four prior years will not be used); or
(3) Notwithstanding sections 17(e)(1)(iii)(A)(1) and (2), if a
minimum number of acres or amount of production is specified in the
processor contract, this amount will be used to determine the eligible
acres.
(B) If a processor cancels or does not provide contracts, or reduces
the contracted acreage or production from what would have otherwise been
allowed, solely because the acreage was prevented from being planted due
to an insured cause of loss, we will determine the number of eligible
acres based on the number of acres or amount of production you had
contracted in the county in the previous crop year. If the applicable
Crop Provisions require that the price election be based on a contract
price, and a contract is not in force for the current year, the price
election will be based on the contract price in place for the previous
crop year. If you did not have a processor contract in place for the
previous crop year, you will not have any eligible prevented planting
acreage for the applicable processor crop. The total eligible prevented
planting acres in all counties cannot exceed the total number of acres
or amount of production contracted in all counties in the previous crop
year.
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(C) In the event that your contracted acreage or production for the
current crop year is reduced, for a reason not solely due to the acreage
being prevented from being planted, or you have no contracted acreage
for the current crop year, and the reduction or lack of contract results
in no remaining eligible acres to use on your total cropland acres in
the county:
(1) You must first exhaust all other eligible acres;
(2) The number of eligible acres for the contracted crop will be
determined based on the number of acres or amount of production you
contracted in the county in the previous crop year, less the current
year's contracted acreage or production, if applicable;
(3) The prevented planting payment and premium will be calculated in
accordance with section 17(h)(2);
(4) If you did not have a processor contract in place for the
previous crop year, no eligible contracted acreage exists for this
purpose.
(2) Any eligible acreage determined in accordance with section
17(e)(1) will be reduced by subtracting the number of acres of the crop
(insured and uninsured) that are timely and late planted, including
acreage specified in section 16(b), unless your first insured crop
failed and you plant an uninsured second crop on the same acres within
the same crop year, the acres for the uninsured second crop will not be
subtracted from the eligible prevented planting acreage.
(f) Regardless of the number of eligible acres determined in section
17(e), prevented planting coverage will not be provided for any acreage:
(1) That does not constitute at least 20 acres or 20 percent of the
insurable crop acreage in the unit, whichever is less (If the crop is in
a whole-farm unit, the 20 acre or 20 percent requirement will be applied
separately to each crop in the whole-farm unit). Any prevented planting
acreage within a field that contains planted acreage will be considered
acreage of the same crop, type, and practice that is planted in the
field unless:
(i) The acreage that was prevented from being planted constitutes at
least 20 acres or 20 percent of the total insurable acreage in the field
and you produced both crops, crop types, or followed both practices in
the same field in the same crop year within any one of the four most
recent crop years;
(ii) You were prevented from planting a first insured crop and you
planted a second crop in the field (There can only be one first insured
crop in a field unless the requirements in section 17(f)(1)(i) or (iii)
are met);
(iii) The insured crop planted in the field would not have been
planted on the remaining prevented planting acreage (e.g., where due to
Crop Provisions, Special Provisions, or processor contract
specifications rotation requirements would not be met, or you already
planted the total number of acres specified in the processor contract);
or
(iv) The acreage that was prevented from being planted constitutes
at least 20 acres or 20 percent of the total insurable acreage in the
field and you provide proof that you intended to plant another crop,
crop type, or follow both practices on the acreage (including, but not
limited to inputs purchased, applied or available to apply, or that
acreage was part of a crop rotation).
(2) For which the actuarial documents do not provide the information
needed to determine the premium rate, unless a written agreement
designates such premium rate;
(3) Used for conservation purposes, intended to be left unplanted
under any program administered by the USDA or other government agency,
or required to be left unharvested under the terms of the lease or any
other agreement (The number of acres eligible for prevented planting
will be limited to the number of acres specified in the lease for which
you are required to pay either cash or share rent);
(4) On which the insured crop is prevented from being planted, if
you or any other person receives a prevented planting payment for any
crop for the same acreage in the same crop year, excluding share
arrangements, unless:
(i) It is a practice that is generally recognized by agricultural
experts or organic agricultural experts in the area to plant the insured
crop for harvest following harvest of the first insured crop, and
additional coverage insurance offered under the authority of the Act is
available in the county for both crops in the same crop year;
(ii) For the insured crop that is prevented from being planted, you
provide records acceptable to us of acreage and production that show
(your double cropping history is limited to the highest number of acres
double cropped within the applicable four-year period unless your double
cropping history is determined in accordance with section 15(i)(3)):
(A) You have double cropped acreage in at least 2 of the last 4 crop
years in which the insured crop that is prevented from being planted in
the current crop year was grown (you may apply your history of double
cropping to any acreage of the insured crop in the county (for example,
you have 100 cropland acres in the county and have double cropped wheat
and soybeans on all 100 acres and you acquire an additional 100 acres in
the county, you can apply your history of 100 double cropped acres to
any of the 200 acres in the county)); or
(B) The applicable acreage you are prevented from planting in the
current crop year was double cropped for at least 2 of the last 4 crop
years in which the insured crop that is prevented from being planted was
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grown. You may only use the history of double cropping for the same
physical acres from which double cropping records were provided from one
or more other producers (for example, if a neighbor has double cropped
100 acres of wheat and soybeans in the county and you acquire your
neighbor's 100 double cropped acres and an additional 100 acres in the
county, you can only apply your neighbor's history of double cropped
acreage to the same 100 acres that your neighbor double cropped); and
(iii) The amount of acreage you are double cropping in the current
crop year does not exceed the number of acres for which you provided the
records required in section 17(f)(4)(ii);
(5) On which the insured crop is prevented from being planted, if:
(i) Any crop is planted within or prior to the late planting period
or on or prior to the final planting date if no late planting period is
applicable, unless:
(A) You meet the double cropping requirements in section 17(f)(4);
(B) The crop planted was a cover crop; or
(C) No benefit, including any benefit under any USDA program, was
derived from the crop;
(ii) Any volunteer crop is harvested for grain or seed at any time;
(iii) The act of haying, grazing, or cutting for silage, haylage, or
baleage a cover crop or volunteer crop contributed to the acreage being
prevented from being planted;
(iv) A cover crop is planted within or prior to the late planting
period or on or prior to the final planting date if no late planting
period is applicable and is harvested for grain or seed at any time.
(6) For which planting history or conservation plans indicate the
acreage would have remained fallow for crop rotation purposes or on
which any pasture or forage crop is in place on the acreage during the
time planting of the insured crop generally occurs in the area. Cover
plants that are seeded, transplanted, or that volunteer:
(i) More than 12 months prior to the final planting date for the
insured crop that was prevented from being planted will be considered
pasture or a forage crop that is in place (e.g., the cover crop is
planted 15 months prior to the final planting date and remains in place
during the time the insured crop would normally be planted); or
(ii) Less than 12 months prior to the final planting date for the
insured crop that was prevented from being planted will not be
considered pasture or a forage crop that is in place;
(7) That exceeds the number of acres eligible for a prevented
planting payment;
(8) That exceeds the number of eligible acres physically available
for planting.
(i) In order for acreage to be considered physically available for
planting, the acreage must:
(A) Be free of trees, rocky outcroppings, or other factors that
prevent proper and timely preparation of the seedbed for planting and
harvest of the crop in the crop year;
(B) Not be enrolled in a USDA program that removes the acreage from
crop production;
(C) Not be planted to a perennial crop (i.e., trees or vines either
planted on the acreage, or not removed from the acreage in a proper or
timely manner, thus preventing the timely planting of a crop for the
crop year);
(D) Not have pasture, rangeland or forage in place (see section
17(f)(6));
(E) Unless otherwise allowed in the Special Provisions, in at least
1 of the 4 most recent crop years immediately preceding the current crop
year, have been planted to a crop (planted includes annual regrowth of a
perennial forage or mint crop):
(1) Using recognized good farming practices;
(2) Insured under the authority of the Act or NAP; and
(3) That was harvested, or if not harvested, was adjusted for claim
purposes under the authority of the Act or NAP due to an insured cause
of loss (other than a cause of loss related to flood, excess moisture,
drought, or other cause of loss specified in the Special Provisions).
(ii) If you do not meet the requirements of section 17(f)(8)(i)(E)
because a crop specific plan of insurance offered under the authority of
the Act or NAP was not available for the crops planted on the acreage in
the 4 most recent crop years, the acreage may be considered physically
available for planting if you can prove the acreage was planted and
harvested using good farming practices in at least 2 consecutive years
out of the 4 most recent crop years immediately preceding the current
crop year.
(iii) Once any acreage does not satisfy the requirements in section
17(f)(8)(i)(E) or 17(f)(8)(ii), such acreage will be considered
physically unavailable for planting until the acreage has been planted
to a crop in accordance with 17(f)(8)(i)(E) for 2 consecutive crop
years, or until such acreage meets the requirements of 17(f)(8)(ii).
(9) For which you cannot provide proof that you had the inputs
(including, but not limited to, sufficient equipment and labor)
available to plant and produce a crop with the expectation of producing
at least the yield used to determine your production guarantee or amount
of insurance. Evidence that you previously had planted the crop on the
unit will be considered adequate proof unless:
(i) There has been a change in the availability of inputs since the
crop was last
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planted that could affect your ability to plant and produce the insured
crop;
(ii) We determine you have insufficient inputs to plant the total
number of insured crop acres (e.g., you will not receive a prevented
planting payment if you have sufficient inputs to plant only 80 acres
but you have already planted 80 acres and are claiming prevented
planting on an additional 100 acres); or
(iii) Your planting practices or rotational requirements show the
acreage would have remained fallow or been planted to another crop;
(10) Based on an irrigated practice production guarantee or amount
of insurance unless adequate irrigation facilities were in place to
carry out an irrigated practice on the acreage prior to the insured
cause of loss that prevented you from planting. Acreage with an
irrigated practice production guarantee will be limited to the number of
acres allowed for that practice under sections 17(e) and (f);
(11) Based on a crop type that you did not plant, or did not receive
a prevented planting insurance guarantee for, in at least one of the
four most recent crop years:
(i) Types for which separate projected prices or price elections, as
applicable, amounts of insurance, or production guarantees are available
must be included in your APH database in at least one of the four most
recent crop years (Crops for which the insurance guarantee is not based
on APH must be reported on your acreage report in at least one of the
four most recent crop years) except as allowed in section 17(e)(1)(ii)
or (iii); and
(ii) We will limit prevented planting payments based on a specific
crop type to the number of acres allowed for that crop type as specified
in sections 17(e) and (f); or
(12) If a cause of loss has occurred that may prevent planting at
the time:
(i) You lease the acreage (except acreage you leased the previous
crop year and continue to lease in the current crop year);
(ii) You buy the acreage;
(iii) The acreage is released from a USDA program which prohibits
harvest of a crop;
(iv) You request a written agreement to insure the acreage; or
(v) You acquire the acreage through means other than lease or
purchase (such as inherited or gifted acreage).
(g) If you purchased an additional coverage policy for a crop, and
you executed a High-Risk Land Exclusion Option that separately insures
acreage which has been designated as ``high-risk'' land by FCIC under a
Catastrophic Risk Protection Endorsement for that crop, the maximum
number of acres eligible for a prevented planting payment will be
limited for each policy as specified in sections 17(e) and (f).
(h) If you are prevented from planting a crop for which you do not
have an adequate base of eligible prevented planting acreage, as
determined in accordance with section 17(e)(1), we will use acreage from
another crop insured for the current crop year for which you have
remaining eligible prevented planting acreage.
(1) The crop first used for this purpose will be the insured crop
that would have a prevented planting payment most similar to the payment
for the crop that was prevented from being planted.
(i) If there are still insufficient eligible prevented planting
acres, the next crop used will be the insured crop that would have the
next closest prevented planting payment.
(ii) In the event payment amounts based on other crops are an equal
amount above and below the payment amount for the crop that was
prevented from being planted, eligible acres for the crop with the
higher payment amount will be used first.
(2) The prevented planting payment and premium will be based on:
(i) The crop that was prevented from being planted if the insured
crop with remaining eligible acreage would have resulted in a higher
prevented planting payment than would have been paid for the crop that
was prevented from being planted; or
(ii) The crop from which eligible acres are being used if the
insured crop with remaining eligible acreage will result in a lower
prevented planting payment than would have been paid for the crop that
was prevented from being planted.
(3) For example, assume you were prevented from planting 200 acres
of corn and you have 100 acres eligible for a corn prevented planting
guarantee that would result in a payment of $40 per acre. You also had
50 acres of potato eligibility that would result in a $100 per acre
payment and 90 acres of grain sorghum eligibility that would result in a
$30 per acre payment. Your prevented planting coverage will be based on
100 acres of corn ($40 per acre), 90 acres of grain sorghum ($30 per
acre), and an additional 10 acres of corn (using potato eligible acres
and paid as corn at $40 per acre). Your prevented planting payment would
be $7,100 ($4,000 + $2,700 + $400).
(4) Prevented planting coverage will be allowed as specified in
section 17(h) only if the crop that was prevented from being planted
meets all policy provisions, except for having an adequate base of
eligible prevented planting acreage. Payment may be made based on crops
other than those that were prevented from being planted even though
other policy provisions, including but not limited to, processor
contract and rotation requirements, have not been met for the crop whose
eligible acres are being used. When you have exhausted eligible acres to
provide prevented planting coverage for all insured
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cropland acres in your farming operation, you may use remaining eligible
acres as established in section 17(e)(1)(iii)(C).
(5) An additional administrative fee will not be due as a result of
using eligible prevented planting acreage as specified in section 17(h).
(i) The prevented planting payment for any eligible acreage within a
unit will be determined by:
(1) Multiplying the prevented planting coverage level percentage you
elected, or that is contained in the Crop Provisions if you did not
elect a prevented planting coverage level percentage, by:
(i) Your amount of insurance per acre; or
(ii) The amount determined by multiplying the production guarantee
(per acre) for timely planted acreage of the insured crop (or type, if
applicable) by your price election or your projected price, whichever is
applicable;
(2) Multiplying the result of section 17(i)(1) by the number of
eligible prevented planting acres in the unit; and
(3) Multiplying the result of section 17(i)(2) by your share.
18. Written Agreements
Terms of this policy which are specifically designated for the use
of written agreements may be altered by written agreement in accordance
with the following:
(a) You must apply in writing for each written agreement (including
renewal of a written agreement) no later than the sales closing date,
except as provided in section 18(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 FCIC, the written agreement will include all
variable terms of the contract, including, but not limited to, the crop;
practice, type or variety; guarantee; premium rate; and projected price,
harvest price, price election or amount of insurance, as applicable, or
the information needed to determine such variable terms. If the written
agreement is for a county:
(1) That has a price election or amount of insurance stated in the
actuarial documents, for the crop, practice, type or variety, the
written agreement will contain the price election or amount of insurance
stated in the actuarial documents, for the crop, practice, type or
variety;
(2) That does not have price elections or amounts of insurance
stated in the actuarial documents, for the crop, practice, type or
variety, the written agreement will contain a price election or amount
of insurance that does not exceed the price election or amount of
insurance contained in the actuarial documents, for the county that is
used to establish the other terms of the written agreement, unless
otherwise authorized by the Crop Provisions;
(3) For which revenue protection is not available for the crop, but
revenue protection is available in the State for the crop, the written
agreement will contain the information used to establish the projected
price and harvest price, as applicable, for that State; or
(4) In a State for which revenue protection is not available for the
crop, but revenue protection is available for the crop in another State,
the written agreement is available for yield protection only, and will
contain the information needed to determine the projected price for the
crop from another State as determined by FCIC;
(d) Each written agreement will only be valid for the number of crop
years specified in the written agreement, and a multi-year written
agreement:
(1) Will only apply for any particular crop year designated in the
written agreement if all terms and conditions in the written agreement
are still applicable for the crop year and the conditions under which
the written agreement has been provided have not changed prior to the
beginning of the insurance period (If conditions change during or prior
to the crop year, the written agreement will not be effective for that
crop year but may still be effective for a subsequent crop year if
conditions under which the written agreement has been provided exist for
such year);
(2) May be canceled in writing by:
(i) FCIC not less than 30 days before the cancellation date if it
discovers that any term or condition of the written agreement, including
the premium rate, is not appropriate for the crop; or
(ii) You or us on or before the cancellation date;
(3) That is not renewed in writing after it expires, is not
applicable for a crop year, or is canceled, then insurance coverage will
be in accordance with the terms and conditions stated in this policy,
without regard to the written agreement; and
(4) Will be automatically canceled if you transfer your policy to
another insurance provider (No notice will be provided to you and for
any subsequent crop year, for a written agreement to be effective, you
must timely request renewal of the written agreement in accordance with
this section);
(e) A request for a written agreement may be submitted:
(1) After the sales closing date, but on or before the acreage
reporting date, if you demonstrate your physical inability to submit the
request on or before the sales closing date (e.g., you have been
hospitalized or a blizzard has made it impossible to submit the written
agreement request in person or by mail); or
[[Page 150]]
(2) For the first year the written agreement is requested:
(i) On or before the acreage reporting date to:
(A) Insure unrated land, or an unrated practice, type or variety of
a crop; although, if required by FCIC, such written agreements may be
approved only after appraisal of the acreage by us and:
(1) The crop's potential is equal to or exceeds 90 percent of the
yield used to determine your production guarantee or amount of
insurance; and
(2) You sign the written agreement no later than the date the first
field is appraised or by the expiration date for you to accept the
offer, whichever comes first; or
(B) Establish optional units in accordance with FCIC procedures that
otherwise would not be allowed or change the premium rate or
transitional yield for designated high-risk land;
(ii) On or before the cancellation date to insure a crop in a county
that does not have actuarial documents for the crop (If the Crop
Provisions do not provide a cancellation date for the county, the
cancellation date for other insurable crops in the same State that have
similar final planting and harvesting dates will be applicable); or
(iii) On or before the date specified in the Crop Provisions or
Special Provisions;
(f) A request for a written agreement must contain:
(1) For all written agreement requests:
(i) A completed ``Request for Actuarial Change'' form;
(ii) A completed APH (only for crop policies that require APH) based
on verifiable records of actual yields for the crop and county for which
the written agreement is being requested (the actual yields do not
necessarily have to be from the same physical acreage for which you are
requesting a written agreement), and verifiable records of actual yields
if required by FCIC;
(iii) Evidence from agricultural experts or organic agricultural
experts, as applicable, that the crop can be produced in the area if the
request is to provide insurance for the crop, practices, types, or
varieties that are not insurable, unless we are notified in writing by
FCIC that such evidence is not required by FCIC;
(iv) The legal description of the land (in areas where legal
descriptions are available) and the FSA farm number including tract and
field numbers, if available. The submission must also include an FSA
aerial photograph, or field boundaries derived by a Geographic
Information System or Global Positioning System, or other legible maps
delineating field boundaries where you intend to plant the crop for
which insurance is requested; and
(v) For any perennial crop, an inspection report completed by us;
(2) For written agreement requests for counties without actuarial
documents for the crop, the requirements in section 18(f)(1) (except
section 18(f)(1)(ii)) and:
(i) For a crop you (or anyone with a substantial beneficial interest
in you) have previously planted (or produced a crop if the crop is a
perennial crop) in the county or area for at least three years:
(A) A completed APH (only for crop policies that require APH) based
on verifiable production records of actual yields for the crop; and
(B) Verifiable production records for at least the three most recent
crop years in which the crop was planted (or produced a crop if the crop
is a perennial crop):
(1) The verifiable production records do not necessarily have to be
from the same physical acreage for which you are requesting a written
agreement;
(2) Verifiable production records do not have to be submitted for
any year you (or anyone with a substantial beneficial interest in you)
have insured the crop in the county or area and have certified the
yields on the applicable production reports or the yields are based on
your insurance claim (although you are not required to submit production
records, you still must maintain production records in accordance with
section 21); and
(3) FCIC will not consider any crop year in which the crop was
planted (or produced a crop if the crop is a perennial crop) outside of
the most recent ten crop years as a year of previously planting the crop
(or having produced a crop if the crop is a perennial crop), unless
verifiable production records are provided, or the crop was insured for
that crop year;
(ii) For a crop you (or anyone with a substantial beneficial
interest in you) have not previously planted (or produced a crop if the
crop is a perennial crop) in the county or area for at least three
years:
(A) A completed APH (only for crop policies that require APH) based
on verifiable production records of actual yields for the similar crop;
(B) Verifiable production records for at least the three most recent
crop years in which the similar crop was planted (or produced a crop if
the crop is a perennial crop) in the county or area:
(1) The verifiable production records for the similar crop do not
necessarily have to be from the same physical acreage for which you are
requesting a written agreement;
(2) Verifiable production records do not have to be submitted for
any crop year you (or anyone with a substantial beneficial interest in
you) have insured the similar crop in the county or area and have
certified the yields on the applicable production reports or the yields
are based on your insurance
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claim (although you are not required to submit production records, you
still must maintain production records in accordance with section 21);
and
(3) FCIC will not consider any crop year in which the similar crop
was planted (or produced a crop if the crop is a perennial crop) outside
of the most recent ten crop years as a year of previously planting the
similar crop (or having produced a crop if the crop is a perennial
crop), unless verifiable production records are provided, or the similar
crop was insured, for that crop year;
(C) If you (or anyone with a substantial beneficial interest in you)
have at least one year of production records, but less than three years
of production records, for the crop in the county or area but have
production records for a similar crop in the county or area such that
the combination of both sets of records results in at least three years
of production records, you must provide the information required in
sections 18(f)(2)(i)(A) and (B) for the years you (or anyone with a
substantial beneficial interest in you) planted the crop (or produced a
crop if the crop is a perennial crop) in the county or area and the
information required in sections 18(f)(2)(ii)(A) and (B) regarding the
similar crop for the remaining years; and
(D) A similar crop to the crop for which a written agreement is
being requested must:
(1) Be included in the same category of crops, e.g., row crops
(including, but not limited to, small grains, coarse grains, and oil
seed crops), vegetable crops grown in rows, tree crops, vine crops, bush
crops, etc., as defined by FCIC;
(2) Have substantially the same growing season (i.e., normally
planted around the same dates and harvested around the same dates);
(3) Require comparable agronomic conditions (e.g., comparable needs
for water, soil, etc.); and
(4) Be subject to substantially the same risks (frequency and
severity of loss would be expected to be comparable from the same cause
of loss);
(iii) The dates you and other growers in the area normally plant and
harvest the crop, if applicable;
(iv) The name, location of, and approximate distance to the place
the crop will be sold or used by you; and
(v) For any irrigated practice, the water source, method of
irrigation, and the amount of water needed for an irrigated practice for
the crop; and
(3) Such other information as specified in the Special Provisions or
required by FCIC;
(g) A request for a written agreement will not be accepted if:
(1) The request is submitted to us after the applicable deadline
contained in sections 18(a) or (e);
(2) All the information required in section 18(f) is not submitted
to us with the request for a written agreement (The request for a
written agreement may be accepted if any missing information is
available from other acceptable sources); or
(3) The request is not authorized by the policy;
(h) A request for a written agreement will be denied if:
(1) FCIC determines the risk is excessive;
(2) Your APH history demonstrates you have not produced at least 50
percent of the transitional yield for the crop, type, and practice
obtained from the county, or a county with similar agronomic conditions
and risk exposure, when previously grown;
(3) There is not adequate information available to establish an
actuarially sound premium rate and insurance coverage for the crop and
acreage;
(4) The crop, or a similar crop, was not previously grown in the
county or area, or there is no evidence of a market for the crop
(applicable only for counties without actuarial documents); or
(5) Agricultural experts or organic agricultural experts determine
the crop, practice, or type is not adapted to the county;
(i) A written agreement will be denied unless:
(1) FCIC approves the written agreement;
(2) The original written agreement is signed by you and delivered to
us, or postmarked, not later than the expiration date for you to accept
the offer;
(3) We accept the written agreement offer; and
(4) The crop meets the minimum appraisal amount specified in section
18(e)(2)(i)(A)(1), if applicable;
(j) Multi-year written agreements may be canceled and requests for
renewal may be rejected if the severity or frequency of your loss
experience under the written agreement is significantly worse than
expected based on the information provided by you or used to establish
your premium rate and the loss experience of other crops with similar
risks in the area;
(k) With respect to your and our ability to reject an offer for a
written agreement:
(1) When a single Request for Actuarial Change form is submitted,
regardless of how many requests for changes are contained on the form,
you and we can only accept or reject the written agreement in its
entirety (you cannot reject specific terms of the written agreement and
accept others);
(2) When multiple Request for Actuarial Change forms are submitted,
regardless of when the forms are submitted, for the same condition or
for the same crop (i.e., to insure corn on ten legal descriptions where
there are no actuarial documents in the county or the request is to
change the premium rates from the high-risk rates) all these forms may
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be treated as one request and you and we will only have the option of
accepting or rejecting the written agreement in its entirety (you cannot
reject specific terms of the written agreement and accept others);
(3) When multiple Request for Actuarial Change forms are submitted,
regardless of when the forms are submitted, for the different conditions
or for different crops, separate agreements may be issued and you and we
will have the option to accept or reject each written agreement; and
(4) If we reject an offer for a written agreement approved by FCIC,
you may seek arbitration or mediation of our decision to reject the
offer in accordance with section 20;
(l) Any information that is submitted by you after the applicable
deadlines in sections 18(a) and (e) will not be considered, unless such
information is specifically requested in accordance with section
18(f)(3);
(m) If the written agreement or the policy is canceled for any
reason, or the period for which an existing written agreement is in
effect ends, a request for renewal of the written agreement must contain
all the information required by this section and be submitted in
accordance with section 18(a), unless otherwise specified by FCIC;
(n) If a request for a written agreement is not approved by FCIC, a
request for a written agreement for any subsequent crop year that fails
to address the stated basis for the denial will not be accepted (If the
request for a written agreement contains the same information that was
previously rejected or denied, you will not have any right to arbitrate,
mediate or appeal the non-acceptance of your request); and
(o) If you disagree with any determination made by FCIC under
section 18, you may obtain administrative review in accordance with 7
CFR part 400, subpart J or appeal in accordance with 7 CFR part 11,
unless you have failed to comply with the provisions contained in
section 18(g) or section 18(i)(2) or (4).
19. 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]
20. Appeal, Reconsideration, Administrative and Judicial Review
(a) All determinations required by the policy will be made by us.
(b) If you disagree with our determinations:
(1) Except for determinations specified in section 18(g), section
18(i)(2) or section 20(b)(2) or (3), you may obtain an administrative
review in accordance with 7 CFR part 400, subpart J (administrative
review) or appeal in accordance with 7 CFR part 11 (appeal);
(2) Regarding whether you have used good farming practices
(excluding determinations of the amount of assigned production for
uninsured causes for your failure to use good farming practices), you
may request reconsideration in accordance with the reconsideration
process established for this purpose and published at 7 CFR part 400,
subpart J (reconsideration). To appeal or request administrative review
of determinations of the amount of assigned production, you must use the
appeal or administration review process; or
(3) Any determination made by us that is a matter of general
applicability is not subject to administrative review under 7 CFR part
400, subpart J or appeal under 7 CFR part 11. If you want to seek
judicial review of any determination that is a matter of general
applicability, you must request a determination of non-appealability
from the Director of the National Appeals Division in accordance with 7
CFR part 11.6 prior to seeking judicial review.
(c) If you fail to exhaust your right to appeal, you will not be
able to resolve the dispute through judicial review.
(d) You are not required to exhaust your right to reconsideration
prior to seeking judicial review. If you do not request reconsideration
and you elect to file suit, such suit must be brought in accordance with
section 20(e)(2) and must be filed not later than one year after the
date the determination regarding whether you used good farming practices
was made.
(e) If reconsideration or appeal has been initiated within the time
frames specified in those sections and judicial review is sought, any
suit against us must be:
(1) Filed not later than one year after the date of the decision
rendered in the reconsideration or appeal; and
(2) Brought in the United States district court for the district in
which the insured farm involved in the decision is located.
(f) You may only recover contractual damages from us. Under no
circumstances can you recover any attorney fees or other expenses, or
any punitive, compensatory or any other damages from us in
administrative review, appeal, reconsideration or litigation.
[For Reinsured Policies]
20. Mediation, Arbitration, Appeal, Reconsideration, and Administrative
and Judicial Review
(a) If you do not agree with any determination made by us except
those specified in section 20(d) or (e), the disagreement may be
resolved through mediation in accordance with section 20(g). If the
disagreement cannot be resolved through mediation, or you and we do not
agree to mediation, you must
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timely seek resolution through arbitration in accordance with the rules
of the American Arbitration Association (AAA), except as provided in
sections 20(c) and (f), and unless rules are established by FCIC for
this purpose. Any mediator or arbitrator with a familial, financial or
other business relationship to you or us, or our agent or loss adjuster,
is disqualified from hearing the dispute.
(1) All disputes involving determinations made by us, except those
specified in section 20(d) or (e), are subject to mediation or
arbitration. However, if the dispute in any way involves a policy or
procedure interpretation, regarding whether a specific policy provision
or procedure is applicable to the situation, how it is applicable, or
the meaning of any policy provision or procedure, either you or we must
obtain an interpretation from FCIC in accordance with 7 CFR part 400,
subpart X or such other procedures as established by FCIC.
(i) Any interpretation by FCIC will be binding in any mediation or
arbitration.
(ii) Failure to obtain any required interpretation from FCIC will
result in the nullification of any agreement or award.
(iii) An interpretation by FCIC of a policy provision is considered
a determination that is a matter of general applicability.
(iv) An interpretation by FCIC of a procedure may be appealed to the
National Appeals Division in accordance with 7 CFR part 11.
(2) Unless the dispute is resolved through mediation, the arbitrator
must provide to you and us a written statement describing the issues in
dispute, the factual findings, the determinations and the amount and
basis for any award and breakdown by claim for any award. The statement
must also include any amounts awarded for interest. Failure of the
arbitrator to provide such written statement will result in the
nullification of all determinations of the arbitrator. All agreements
reached through settlement, including those resulting from mediation,
must be in writing and contain at a minimum a statement of the issues in
dispute and the amount of the settlement.
(b) Regardless of whether mediation is elected:
(1) You must initiate arbitration proceedings within 1 year of the
date we denied your claim or rendered the determination with which you
disagree, whichever is later;
(2) If you fail to initiate arbitration in accordance with section
20(b)(1) and complete the process, you will not be able to resolve the
dispute through judicial review;
(3) If arbitration has been initiated in accordance with section
20(b)(1) and completed, and judicial review is sought, suit must be
filed not later than one year after the date the arbitration decision
was rendered; and
(4) In any suit, if the dispute in any way involves a policy or
procedure interpretation, regarding whether a specific policy provision
or procedure is applicable to the situation, how it is applicable, or
the meaning of any policy provision or procedure, an interpretation must
be obtained from FCIC in accordance with 7 CFR part 400, subpart X or
such other procedures as established by FCIC. Such interpretation will
be binding.
(c) Any decision rendered in arbitration is binding on you and us
unless judicial review is sought in accordance with section 20(b)(3).
Notwithstanding any provision in the rules of the AAA, you and we have
the right to judicial review of any decision rendered in arbitration.
(d) With respect to good farming practices:
(1) We will make decisions regarding what constitutes a good farming
practice and determinations of assigned production for uninsured causes
for your failure to use good farming practices.
(i) If you disagree with our determination of the amount of assigned
production, you must use the arbitration or mediation process contained
in this section.
(ii) If you disagree with our decision of what constitutes a good
farming practice you may request through us that FCIC review our
decision. Requests for FCIC review must be made within 30 days of the
postmark date on the written notice of the determination regarding good
farming practices.
(iii) You may not sue us for our decisions regarding whether good
farming practices were used by you. You must request a determination
from FCIC of what constitutes a good farming practice before filing any
suit against FCIC.
(2) FCIC will make determinations regarding what constitutes a good
farming practice. If you do not agree with any determination made by
FCIC:
(i) You may request reconsideration by FCIC of this determination in
accordance with the reconsideration process established for this purpose
and published at 7 CFR part 400, subpart J; or
(ii) You may file suit against FCIC.
(A) You are not required to request reconsideration from FCIC before
filing suit.
(B) Any suit must be brought against FCIC in the United States
district court for the district in which the insured acreage is located.
(C) Suit must be filed against FCIC not later than one year after
the date:
(1) Of the determination; or
(2) Reconsideration is completed, if reconsideration was requested
under section 20(d)(2)(i).
(e) Except as provided in sections 18(n) or (o), or 20(d) or (k), if
you disagree with any other determination made by FCIC or any claim
where FCIC is directly involved in the claims process or directs us in
the resolution
[[Page 154]]
of the claim, you may obtain an administrative review in accordance with
7 CFR part 400, subpart J (administrative review) or appeal in
accordance with 7 CFR part 11 (appeal).
(1) If you elect to bring suit after completion of any appeal, such
suit must be filed against FCIC not later than one year after the date
of the decision rendered in such appeal.
(2) Such suit must be brought in the United States district court
for the district in which the insured acreage is located.
(3) Under no circumstances can you recover any attorney fees or
other expenses, or any punitive, compensatory or any other damages from
FCIC.
(f) In any mediation, arbitration, appeal, administrative review,
reconsideration or judicial process, the terms of this policy, the Act,
and the regulations published at 7 CFR chapter IV, including the
provisions of 7 CFR part 400, subpart P, are binding. Conflicts between
this policy and any state or local laws will be resolved in accordance
with section 31. If there are conflicts between any rules of the AAA and
the provisions of your policy, the provisions of your policy will
control.
(g) To resolve any dispute through mediation, you and we must both:
(1) Agree to mediate the dispute;
(2) Agree on a mediator; and
(3) Be present, or have a designated representative who has
authority to settle the case present, at the mediation.
(h) Except as provided in section 20(i), no award or settlement in
mediation, arbitration, appeal, administrative review or reconsideration
process or judicial review can exceed the amount of liability
established or which should have been established under the policy,
except for interest awarded in accordance with section 26.
(i) In a judicial review only, you may recover attorneys fees or
other expenses, or any punitive, compensatory or any other damages from
us only if you obtain a determination from FCIC that we, our agent or
loss adjuster failed to comply with the terms of this policy or
procedures issued by FCIC and such failure resulted in you receiving a
payment in an amount that is less than the amount to which you were
entitled. Requests for such a determination should be addressed to the
following: USDA/RMA/Deputy Administrator of Compliance/Stop 0806, 1400
Independence Avenue, SW., Washington, DC 20250-0806.
(j) If FCIC elects to participate in the adjustment of your claim,
or modifies, revises or corrects your claim, prior to payment, you may
not bring an arbitration, mediation or litigation action against us. You
must request administrative review or appeal in accordance with section
20(e).
(k) Any determination made by FCIC that is a matter of general
applicability is not subject to administrative review under 7 CFR part
400, subpart J or appeal under 7 CFR part 11. If you want to seek
judicial review of any FCIC determination that is a matter of general
applicability, you must request a determination of non-appealability
from the Director of the National Appeals Division in accordance with 7
CFR 11.6 before seeking judicial review.
21. Access to Insured Crop and Records, and Record Retention
(a) We, and any employee of USDA authorized to investigate or review
any matter relating to crop insurance, have the right to examine the
insured crop and all records related to the insured crop and any
mediation, arbitration or litigation involving the insured crop as often
as reasonably required during the record retention period.
(b) You must retain, and provide upon our request, or the request of
any employee of USDA authorized to investigate or review any matter
relating to crop insurance:
(1) Complete records of the planting, replanting, inputs,
production, harvesting, and disposition of the insured crop on each unit
for three years after the end of the crop year (This requirement also
applies to all such records for acreage that is not insured);
(2) All records used to establish the amount of production you
certified on your production reports used to compute your approved yield
for three years after the calendar date for the end of the insurance
period for the crop year for which you initially certified such records,
unless such records have already been provided to us (e.g., if you are a
new insured and you certify 2015 through 2018 crop year production
records in 2019 to determine your approved yield for the 2019 crop year,
you must retain all records from the 2015 through 2018 crop years
through the 2022 crop year. If you subsequently certify records of the
2019 crop year in 2020 to determine your approved yield for the 2020
crop year, you must retain the 2019 crop year records through the 2023
crop year and so forth for each subsequent year of production records
certified); and
(3) While you are not required to maintain records beyond the record
retention period specified in section 21(b)(2), at any time, if we or
FCIC have evidence that you, or anyone assisting you, knowingly
misreported any information related to any yield you have certified, we
or FCIC will replace all yields in your APH database determined to be
incorrect with the lesser of an assigned yield determined in accordance
with section 3 or the yield determined to be correct:
(i) If an overpayment has been made to you, you will be required to
repay the overpaid amount; and
(ii) Replacement of yields in accordance with section 21(b)(3) does
not exempt you
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from other sanctions applicable under the terms of the policy or any
applicable law.
(c) We, or any employee of USDA authorized to investigate or review
any matter relating to crop insurance, may extend the record retention
period beyond three years by notifying you of such extension in writing.
(d) By signing the application for insurance authorized under the
Act or by continuing insurance for which you have previously applied,
you authorize us or USDA, or any person acting for us or USDA authorized
to investigate or review any matter relating to crop insurance, to
obtain records relating to the planting, replanting, inputs, production,
harvesting, and disposition of the insured crop from any person who may
have custody of such records, including but not limited to, FSA offices,
banks, warehouses, gins, cooperatives, marketing associations, and
accountants. You must assist in obtaining all records we or any employee
of USDA authorized to investigate or review any matter relating to crop
insurance request from third parties.
(e) Failure to provide access to the insured crop or the farm,
authorize access to the records maintained by third parties or assist in
obtaining such records will result in a determination that no indemnity
is due for the crop year in which such failure occurred.
(f) Failure to maintain or provide records will result in:
(1) The imposition of an assigned yield in accordance with section
3(f)(1) and 7 CFR part 400, subpart G for those crop years for which you
do not have the required production records to support a certified
yield;
(2) A determination that no indemnity is due if you fail to provide
records necessary to determine your loss;
(3) Combination of the optional units into the applicable basic
unit;
(4) Assignment of production to the units by us if you fail to
maintain separate records:
(i) For your basic units; or
(ii) For any uninsurable acreage; and
(5) The imposition of consequences specified in section 6(g), as
applicable.
(g) If the imposition of an assigned yield under section 21(f)(1)
would affect an indemnity, prevented planting payment or replanting
payment that was paid in a prior crop year, such claim will be adjusted
and you will be required to repay any overpaid amounts.
22. Other Insurance
(a) Other Like Insurance--Nothing in this section prevents you from
obtaining other insurance not authorized under the Act. However, unless
specifically required by policy provisions, you must not obtain any
other crop insurance authorized under the Act on your share of the
insured crop. If you cannot demonstrate that you did not intend to have
more than one policy in effect, you may be subject to the consequences
authorized under this policy, the Act, or any other applicable statute.
If you can demonstrate that you did not intend to have more than one
policy in effect (For example, an application to transfer your policy or
written notification to an insurance provider that states you want to
purchase, or transfer, insurance and you want any other policies for the
crop canceled would demonstrate you did not intend to have duplicate
policies), and:
(1) One is an additional coverage policy and the other is a
Catastrophic Risk Protection policy:
(i) The additional coverage policy will apply if both policies are
with the same insurance provider or, if not, both insurance providers
agree; or
(ii) The policy with the earliest date of application will be in
force if both insurance providers do not agree; or
(2) Both are additional coverage policies or both are Catastrophic
Risk Protection policies, the policy with the earliest date of
application will be in force and the other policy will be void, unless
both policies are with:
(i) The same insurance provider and the insurance provider agrees
otherwise; or
(ii) Different insurance providers and both insurance providers
agree otherwise.
(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 caused by a
naturally occurring event only for the smaller of:
(1) The amount of indemnity determined pursuant to this policy
without regard to such 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.
(c) For the purpose of section 22(b), the amount of loss from fire
will be the difference between the total value of the insured crop
before the fire and the total value of the insured crop after the fire.
This amount will be determined in accordance with the provisions in
section 35.
23. Conformity to Food Security Act
Although your violation of a number of federal statutes, including
the Act, may cause cancellation, termination, or voidance of your
insurance contract, you should be specifically aware that your policy
will be canceled if you are determined to be ineligible to receive
benefits under the Act due to violation of the controlled substance
provisions (title XVII) of the Food Security Act of
[[Page 156]]
1985 (Pub. L. 99-198) and the regulations promulgated under the Act by
USDA. Your insurance policy will be canceled if you are determined, by
the appropriate Agency, to be in violation of these provisions. We will
recover any and all monies paid to you or received by you during your
period of ineligibility, and your premium will be refunded, less an
amount for expenses and handling equal to 20 percent of the premium paid
or to be paid by you.
For FCIC policies
24. Amounts Due Us
(a) Any amount illegally or erroneously paid to you or that is owed
to us but is delinquent may be recovered by us through offset by
deducting it from any loan or payment due you under any Act of Congress
or program administered by any United States Government Agency, or by
other collection action.
(b) Interest will accrue at the rate of 1.25 percent simple interest
per calendar month on any unpaid premium amount or administrative fee
due us. With respect to any premiums or administrative fees owed,
interest will start to accrue on the first day of the month following
the issuance of the notice by us, provided that a minimum of 30 days
have passed from the premium billing date specified in the Special
Provisions.
(c) For the purpose of any other amounts due us, such as repayment
of indemnities found not to have been earned:
(1) Interest will start on the date that notice is issued to you for
the collection of the unearned amount;
(2) Amounts found due under this paragraph will not be charged
interest if payment is made within 30 days of issuance of the notice by
us;
(3) The amount will be considered delinquent if not paid within 30
days of the date the notice is issued by us;
(4) Penalties and interest will be charged in accordance with 31
U.S.C. 3717 and 4 CFR part 102; and
(5) The penalty for accounts more than 90 days delinquent is an
additional 6 percent per annum.
(d) 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 additional
6 percent 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.
If we determine that it is necessary to contract with a collection
agency, refer the debt to government collection centers, the Department
of Treasury Offset Program, or to employ an attorney to assist in
collection, you agree to pay all the expenses of collection.
(f) All amounts paid will be applied first to expenses of collection
if any, second to the reduction of any penalties which may have been
assessed, then to reduction of accrued interest, and finally to
reduction of the principal balance.
For reinsured policies
24. Amounts Due Us
(a) Interest will accrue at the rate of 1.25 percent simple interest
per calendar month on any unpaid amount owed to us or on any unpaid
administrative fees owed to FCIC. For the purpose of premium amounts
owed to us or administrative fees owed to FCIC, interest will start to
accrue on the first day of the month following the issuance of the
notice by us, provided that a minimum of 30 days have passed from the
premium billing date specified in the Special Provisions. We will
collect any unpaid amounts owed to us and any interest owed thereon and,
prior to the termination date, we will collect any administrative fees
and interest owed thereon to FCIC. After the termination date, FCIC will
collect any unpaid administrative fees and any interest owed thereon for
any catastrophic risk protection policy and we will collect any unpaid
administrative fees and any interest owed thereon for additional
coverage policies.
(b) For the purpose of any other amounts due us, such as repayment
of indemnities found not to have been earned, interest will start to
accrue on the date that notice is issued to you for the collection of
the unearned amount. Amounts found due under this paragraph will not be
charged interest if payment is made within 30 days of issuance of the
notice by us. The amount will be considered delinquent if not paid
within 30 days of the date the notice is issued by us.
(c) All amounts paid will be applied first to expenses of collection
(see subsection (d) of this section) if any, second to the reduction of
accrued interest, and then to the 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.
(e) The portion of the amounts owed by you for a policy authorized
under the Act that are owed to FCIC may be collected in part through
administrative offset from payments you receive from United States
government agencies in accordance with 31 U.S.C. chapter 37. Such
amounts include all administrative fees, and the share of the overpaid
indemnities and premiums retained by FCIC plus any interest owed
thereon.
[[Page 157]]
25. Correction of Errors.
(a) In addition to any other corrections allowed in your policy
subject to section 25(b), we may correct:
(1) Within 60 days after the sales closing date, any incorrect
information on your application or provided by the sales closing date,
including identification numbers for you and any person with a
substantial beneficial interest in you, to ensure that the eligibility
information is correct and consistent with information reported by you
to any USDA agency;
(2) Within 30 days after the acreage reporting date, information
reported to reconcile errors in the information with correct information
that has been determined by any USDA agency;
(3) Within 30 days of any subsequent correction of data by FSA,
erroneous information corrected as a result of verification of
information; and
(4) At any time, any incorrect information if the incorrect
information was caused by electronic transmission errors by us or errors
made by any agency within USDA in transmitting the information provided
by you for purposes of other USDA programs.
(b) Corrections may be made but will not take effect for the current
crop year if the correction would allow you to:
(1) Avoid ineligibility requirements for insurance or obtain a
disproportionate benefit under the crop insurance program or any related
program administered by the Secretary;
(2) Obtain, enhance, or increase an insurance guarantee or indemnity
if a cause of loss exists or has occurred before any correction has been
made, or avoid premium owed if no loss is likely to occur; or
(3) Avoid an obligation or requirement under any Federal or State
law.
26. Interest Limitations
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.
27. Concealment, Misrepresentation or Fraud
(a) If you have falsely or fraudulently concealed the fact that you
are ineligible to receive benefits under the Act or if you or anyone
assisting you has intentionally concealed or misrepresented any material
fact relating to this policy:
(1) This policy will be voided; and
(2) You may be subject to remedial sanctions in accordance with 7
CFR part 400, subpart R.
(b) Even though the policy is void, you will still be required to
pay 20 percent of the premium that you would otherwise be required to
pay to offset costs incurred by us in the service of this policy. If
previously paid, the balance of the premium will be returned.
(c) Voidance of this policy will result in you having to reimburse
all indemnities paid for the crop year in which the voidance was
effective.
(d) Voidance will be effective on the first day of the insurance
period for the crop year in which the act occurred and will not affect
the policy for subsequent crop years unless a violation of this section
also occurred in such crop years.
(e) If you willfully and intentionally provide false or inaccurate
information to us or FCIC or you fail to comply with a requirement of
FCIC, in accordance with 7 CFR part 400, subpart R, FCIC may impose on
you:
(1) A civil fine for each violation in an amount not to exceed the
greater of:
(i) The amount of the pecuniary gain obtained as a result of the
false or inaccurate information provided or the noncompliance with a
requirement of FCIC; or
(ii) $10,000; and
(2) A disqualification for a period of up to 5 years from receiving
any monetary or non-monetary benefit provided under each of the
following:
(i) Any crop insurance policy offered under the Act;
(ii) The Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7333 et seq.);
(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.);
(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
seq.);
(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.);
(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.);
(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921
et seq.); and
(viii) Any federal law that provides assistance to a producer of an
agricultural commodity affected by a crop loss or a decline in the
prices of agricultural commodities.
28. Transfer of Coverage and Right to Indemnity
If you transfer any part of your share during the crop year, you may
transfer your
[[Page 158]]
coverage rights, if the transferee is eligible for crop insurance. We
will not be liable for any more than the liability determined in
accordance with your policy that existed before the transfer occurred.
The transfer of coverage rights must be on our form and will not be
effective until approved by us in writing. Both you and the transferee
are jointly and severally liable for the payment of the premium and
administrative fees. The transferee has all rights and responsibilities
under this policy consistent with the transferee's interest.
29. Assignment of Indemnity
(a) You may assign your right to an indemnity for the crop year only
to creditors or other persons to whom you have a financial debt or other
pecuniary obligation. You may be required to provide proof of the debt
or other pecuniary obligation before we will accept the assignment of
indemnity.
(b) All assignments must be on our form and must be provided to us.
Each assignment form may contain more than one creditor or other person
to whom you have a financial debt or other pecuniary obligation.
(c) Unless you have provided us with a properly executed assignment
of indemnity, we will not make any payment to a lienholder or other
person to whom you have a financial debt or other pecuniary obligation
even if you may have a lien or other assignment recorded elsewhere.
Under no circumstances will we be liable:
(1) To any lienholder or other person to whom you have a financial
debt or other pecuniary obligation where you have failed to include such
lienholder or person on a properly executed assignment of indemnity
provided to us; or
(2) To pay to all lienholders or other persons to whom you have a
financial debt or other pecuniary obligation any amount greater than the
total amount of indemnity owed under the policy.
(d) If we have received the properly executed assignment of
indemnity form:
(1) Only one payment will be issued jointly in the names of all
assignees and you; and
(2) Any assignee will have the right to submit all loss notices and
forms as required by the policy.
(e) If you have suffered a loss from an insurable cause and fail to
file a claim for indemnity within the period specified in section 14(e),
the assignee may submit the claim for indemnity not later than 30 days
after the period for filing a claim has expired. We will honor the terms
of the assignment only if we can accurately determine the amount of the
claim. However, no action will lie against us for failure to do so.
30. [Reserved]
31. Applicability of State and Local Statutes
If the provisions of this policy conflict with statutes of the State
or locality in which this policy is issued, the policy provisions will
prevail. State and local laws and regulations in conflict with federal
statutes, this policy, and the applicable regulations do not apply to
this policy.
32. 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.
33. Notices
(a) 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 a 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.
(b) All policy provisions, notices, and communications that we send
to you will be:
(1) Provided by electronic means, unless:
(i) We do not have the ability to transmit such information to you
by electronic means; or
(ii) You elect to receive a paper copy of such information;
(2) Sent to the location specified in your records with your crop
insurance agent; and
(3) Conclusively presumed to have been received by you.
34. Units
(a) You may elect an enterprise unit or whole-farm unit in
accordance with the following:
(1) For crops for which revenue protection is available, you may
elect:
(i) An enterprise unit if you elected revenue protection or yield
protection; or
(ii) A whole-farm unit if you elected:
(A) Revenue protection and revenue protection is provided unless
limited by the Special Provisions; or
(B) Yield protection only if whole-farm units are allowed by the
Special Provisions;
(2) For crops for which revenue protection is not available,
enterprise units or whole-farm units are available only if allowed by
the Special Provisions;
[[Page 159]]
(3) You must make such election on or before the earliest sales
closing date for the insured crops in the unit and report such unit
structure on your acreage report:
(i) For counties in which the actuarial documents specify a fall or
winter sales closing date and a spring sales closing date, you may
change your unit election on or before the spring sales closing date
(earliest spring sales closing date for crops in the unit if electing a
whole-farm unit) if you do not have any insured fall planted acreage of
the insured crop;
(ii) Your unit selection will remain in effect from year to year
unless you notify us in writing by the earliest sales closing date for
the crop year for which you wish to change this election; and
(iii) These units may not be further divided except as specified
herein;
(4) For an enterprise unit:
(i) To qualify, an enterprise unit must contain all of the insurable
acreage of the same insured crop in:
(A) Two or more sections, if sections are the basis for optional
units where the insured acreage is located;
(B) Two or more section equivalents determined in accordance with
FCIC procedures, if section equivalents are the basis for optional units
where the insured acreage is located or are applicable to the insured
acreage;
(C) Two or more FSA farm numbers, if FSA farm numbers are the basis
for optional units where the insured acreage is located;
(D) Any combination of two or more sections, section equivalents, or
FSA farm numbers, if more than one of these are the basis for optional
units where the acreage is located or are applicable to the insured
acreage (e.g., if a portion of your acreage is located where sections
are the basis for optional units and another portion of your acreage is
located where FSA farm numbers are the basis for optional units, you may
qualify for an enterprise unit based on a combination of these two
parcels);
(E) One section, section equivalent, or FSA farm number that
contains at least 660 planted acres of the insured crop. You may qualify
under this paragraph based only on the type of parcel that is utilized
to establish optional units where your insured acreage is located (e.g.,
if having two or more sections is the basis for optional units where the
insured acreage is located, you may qualify for an enterprise unit if
you have at least 660 planted acres of the insured crop in one section);
or
(F) Two or more units established by written agreement; and
(ii) At least two of the sections, section equivalents, FSA farm
numbers, or units established by written agreement in section
34(a)(4)(i)(A), (B), (C), (D), or (F) must each have planted acreage
that constitutes at least the lesser of 20 acres or 20 percent of the
insured crop acreage in the enterprise unit. If there is planted acreage
in more than two sections, section equivalents, FSA farm numbers or
units established by written agreement in section 34(a)(4)(i)(A), (B),
(C), (D), or (F), these can be aggregated to form at least two parcels
to meet this requirement. For example, if sections are the basis for
optional units where the insured acreage is located and you have 80
planted acres in section one, 10 planted acres in section two, and 10
planted acres in section three, you may aggregate sections two and three
to meet this requirement.
(iii) The crop must be insured under revenue protection or yield
protection, unless otherwise specified in the Special Provisions;
(iv) If you want to change your unit structure from enterprise units
to basic or optional units in any subsequent crop year, you must
maintain separate records of acreage and production:
(A) For each basic unit, to be eligible to use records to establish
the production guarantee for the basic unit; or
(B) For optional units, to qualify for optional units and to be
eligible to use such records to establish the production guarantee for
the optional units;
(v) If you do not comply with the production reporting provisions in
section 3(f) for the enterprise unit, your yield for the enterprise unit
will be determined in accordance with section 3(f)(1);
(vi) You must separately designate on the acreage report each
section or other basis in section 34(a)(4)(i) you used to qualify for an
enterprise unit; and
(vii) If we discover you do not qualify for an enterprise unit and
such discovery is made:
(A) On or before the acreage reporting date, your unit division will
be based on the basic or optional units, whichever you report on your
acreage report and qualify for; or
(B) At any time after the acreage reporting date, we will assign the
basic unit structure; and
(viii) If allowed by the actuarial documents, you may elect separate
enterprise units for irrigated or non-irrigated practices.
(A) You may elect one enterprise unit for all irrigated practices or
one enterprise unit for all non-irrigated practices or enterprise units
for both.
(B) You must separately meet the requirements in section 34(a)(4)
for each enterprise unit.
(C) If you elected separate enterprise units for both irrigated and
non-irrigated practices and we discover you do not qualify for an
enterprise unit for the irrigated or non-irrigated practice and such
discovery is made:
(1) On or before the acreage reporting date, you may elect to
insure:
[[Page 160]]
(i) One enterprise unit for all irrigated or non-irrigated practices
provided you meet the requirements in section 34(a)(4), and basic or
optional units for the other practice, whichever you report on your
acreage report and qualify for;
(ii) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(iii) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and qualify for; or
(2) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure.
(D) If you elected an enterprise unit on one practice (irrigated or
non-irrigated) and a different unit structure on the other practice and
we discover you do not qualify for an enterprise unit for the irrigated
or non-irrigated practice and such discovery is made:
(1) On or before the acreage reporting date, your unit division will
be based on basic or optional units, whichever you report on your
acreage report and qualify for; or
(2) At any time after the acreage reporting date, we will assign the
basic unit structure.
(ix) You may elect enterprise units as allowed by the Crop
Provisions if provided in the actuarial documents.
(5) For a whole-farm unit:
(i) To qualify:
(A) All crops in the whole-farm unit must be insured:
(1) Under revenue protection (if you elected the harvest price
exclusion for any crop, you must elect it for all crops in the whole-
farm unit), unless the Special Provisions allow whole-farm units for
another plan of insurance and you insure all crops in the whole-farm
unit under such plan (e.g., if you plant corn and soybeans for which you
have elected revenue protection and you plant canola for which you have
elected yield protection, the corn, soybeans and canola would be
assigned the unit structure in accordance with section 34(a)(5)(v));
(2) With us (e.g., if you insure your corn and canola with us and
your soybeans with a different insurance provider, the corn, soybeans
and canola would be assigned the unit structure in accordance with
section 34(a)(5)(v)); and
(3) At the same coverage level (e.g., if you elect to insure your
corn and canola at the 65 percent coverage level and your soybeans at
the 75 percent coverage level, the corn, soybeans and canola would be
assigned the unit structure in accordance with section 34(a)(5)(v))
unless you can elect separate coverage levels for all irrigated and all
non-irrigated crops in accordance with section 3(b)(2)(iii) (e.g., if
you elect to insure your irrigated corn at the 65 percent coverage level
you must insure your irrigated canola at the 65 percent coverage level.
If you elect to insure your non-irrigated corn at the 70 percent
coverage level you must insure your non-irrigated canola at the 70
percent coverage level. If you elect to insure your irrigated corn at
the 65 percent coverage level and your irrigated canola at the 70
percent coverage level your unit structure will be assigned in
accordance with section 34(a)(5)(v));
(B) A whole-farm unit must contain all of the insurable acreage of
at least two crops; and
(C) At least two of the insured crops must each have planted acreage
that constitutes 10 percent or more of the total planted acreage
liability of all insured crops in the whole-farm unit (For crops for
which revenue protection is available, liability will be based on the
applicable projected price only for the purpose of section
34(a)(5)(i)(C));
(ii) You will be required to pay separate administrative fees for
each crop included in the whole-farm unit;
(iii) You must separately designate on the acreage report each basic
unit for each crop in the whole-farm unit;
(iv) If you want to change your unit structure from a whole-farm
unit to basic or optional units in any subsequent crop year, you must
maintain separate records of acreage and production:
(A) For each basic unit, to be eligible to use such records to
establish the production guarantee for the basic units; or
(B) For optional units, to qualify for optional units and to be
eligible to use such records to establish the production guarantee for
the optional units; and
(v) If we discover you do not qualify for a whole-farm unit for at
least one insured crop because, even though you elected revenue
protection for all your crops:
(A) You do not meet all of the other requirements in section
34(a)(5)(i), and such discovery is made:
(1) On or before the acreage reporting date, your unit division for
all crops for which you elected a whole-farm unit will be based on basic
or optional units, whichever you report on your acreage report and
qualify for; or
(2) At any time after the acreage reporting date, we will assign the
basic unit structure for all crops for which you elected a whole-farm
unit; or
(B) It was not possible to establish a projected price for at least
one of your crops, your unit division will be based on the unit
structure you report on your acreage report and qualify for only for the
crop for which a projected price could not be established, unless the
remaining crops in the unit would no longer qualify for a whole-farm
unit, in such case your unit division for the remaining crops will be
based on the unit structure you
[[Page 161]]
report on your acreage report and qualify for.
(b) Unless limited by the Crop Provisions or Special Provisions, a
basic unit as defined in section 1 of the Basic Provisions may be
divided into optional units if, for each optional unit, you meet the
following:
(1) 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;
(2) All optional units you select for the crop year are identified
on the acreage report for that crop year (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. No further unit division
may be made after the acreage reporting date for any reason);
(3) You have records, that are acceptable to us, for at least the
previous crop year for all optional units that you will report in the
current crop year (You may be required to produce the records for all
optional units for the previous crop year); and
(4) You have records of marketed 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 optional
unit is kept separate until loss adjustment is completed by us.
(c) Each optional unit must meet one or more of the following,
unless otherwise specified in the Crop Provisions or allowed by written
agreement:
(1) Optional units may be established if each optional unit is
located in a separate section where the boundaries are readily
discernible:
(i) In the absence of sections, we may consider parcels of land
legally identified by other methods of measure, such as Spanish grants,
provided the boundaries are readily discernible, if such parcels can be
considered as the equivalent of sections for unit purposes in accordance
with FCIC procedures; or
(ii) In the absence of sections as described in section 34(c)(1) or
other methods of measure used to establish section equivalents as
described in section 34(c)(1)(i), optional units may be established if
each optional unit is located in a separate FSA farm number in
accordance with FCIC procedures;
(2) In addition to, or instead of, establishing optional units by
section, section equivalent or FSA farm number, optional units may be
based on irrigated and non-irrigated acreage. 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, except the corners of
a field in which a center-pivot irrigation system is used may be
considered as irrigated acreage 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. In this case, production from both practices
will be used to determine your approved yield; and
(3) In addition to, or instead of, establishing optional units by
section, section equivalent or FSA farm number, or irrigated and non-
irrigated acreage, separate optional units may be established for
acreage of the insured crop grown and insured under an organic farming
practice. Certified organic, transitional and buffer zone acreages do
not individually qualify as separate units. (See section 37 for
additional provisions regarding acreage insured under an organic farming
practice).
(d) Optional units are not available for crops insured under a
Catastrophic Risk Protection Endorsement.
(e) If you do not comply fully with the provisions in this section,
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 by us 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.
35. Multiple Benefits
(a) If you are eligible to receive an indemnity and are also
eligible to receive benefits for the same loss under any other USDA
program, you may receive benefits under both programs, unless
specifically limited by the crop insurance contract or by law.
(b) Any amount received for the same loss from any USDA program, in
addition to the crop insurance payment, will not exceed the difference
between the crop insurance payment and the actual amount of the loss,
unless otherwise provided by law. The amount of the actual loss is the
difference between the total value of the insured crop before the loss
and the total value of the insured crop after the loss.
(1) For crops for which revenue protection is not available:
(i) If you have an approved yield, the total value of the crop
before the loss is your approved yield times the highest price election
for the crop; and
(ii) If you have an approved yield, the total value of the crop
after the loss is your production to count times the highest price
election for the crop; or
(iii) If you have an amount of insurance, the total value of the
crop before the loss is
[[Page 162]]
the highest amount of insurance available for the crop; and
(iv) If you have an amount of insurance, the total value of the crop
after the loss is your production to count times the price contained in
the Crop Provisions for valuing production to count.
(2) For crops for which revenue protection is available and:
(i) You elect yield protection:
(A) The total value of the crop before the loss is your approved
yield times the applicable projected price (at the 100 percent price
level) for the crop; and
(B) The total value of the crop after the loss is your production to
count times the applicable projected price (at the 100 percent price
level) for the crop; or
(ii) You elect revenue protection:
(A) The total value of the crop before the loss is your approved
yield times the higher of the applicable projected price or harvest
price for the crop (If you have elected the harvest price exclusion, the
applicable projected price for the crop will be used); and
(B) The total value of the crop after the loss is your production to
count times the harvest price for the crop.
(c) FSA or another USDA agency, as applicable, will determine and
pay the additional amount due you for any applicable USDA program, after
first considering the amount of any crop insurance indemnity.
36. Yield Options
If provided in the actuarial documents, you may elect the following
measures to increase your approved yield:
(a) Adjustments to actual yields within a database:
(1) You may exclude and replace one or more actual yields, on an
individual actual yield basis, that due to an insurable cause of loss,
are less than 60 percent of the applicable transitional yield.
(i) Each election made in section 36(a)(1) must be made on or before
the production reporting date for the insured crop and each such
election will remain in effect for succeeding crop years unless canceled
by the production reporting date for the succeeding crop year. If you
cancel an election, the actual yield will be used in the database. For
example, if you elected to substitute yields in your database for the
2020 and 2021 crop year, for any subsequent crop year, you can elect to
cancel the substitution for either or both crop years.
(ii) Each excluded actual yield will be replaced with a yield equal
to 60 percent of the applicable transitional yield for the crop year in
which the yield is being replaced, unless you qualify as a beginning
farmer or rancher, or veteran farmer or rancher, in which case the
excluded actual yield will be replaced with a yield equal to 80 percent
of the applicable transitional yield for the crop year in which the
yield is being replaced. (For example, if you elect to exclude a 2020
crop year actual yield, the transitional yield in effect for the 2020
crop year in the county will be used. If you also elect to exclude a
2021 crop year actual yield, the transitional yield in effect for the
2021 crop year in the county will be used). The replacement yields will
be used in the same manner as actual yields for the purpose of
calculating the approved yield.
(iii) Once you have elected to exclude an actual yield from the
database, the replacement yield will remain in effect until such time as
that crop year is no longer included in the database unless this
election is canceled in accordance with section 36(a)(1)(i).
(iv) Although your approved yield will be used to determine your
amount of premium owed, the premium rate will be increased to cover the
additional risk associated with the substitution of higher yields.
(2) You may exclude any actual yield for any crop year when FCIC
determines for a county, or its contiguous counties, the per planted
acre yield was at least 50 percent below the simple average of the per
planted acre yield for the crop in the county for the previous 10
consecutive crop years.
(3) You may replace actual yields determined using your post-quality
production amounts with actual yields determined using your pre-quality
production amounts for previous crop years on an individual actual yield
basis.
(i) Each election made in section 36(a)(3) must be made on or before
the sales closing date for the insured crop and will remain in effect,
unless canceled by the sales closing date for the succeeding crop year.
(ii) In order to replace post-quality actual yields for previous
crop years, you must have filed a notice of loss due to an insured cause
of loss for the crop year to be eligible.
(iii) Once the pre-quality actual yield replaces the post-quality
actual yield, the pre-quality actual yield will remain in effect until
such time as that crop year is no longer included in the database,
unless this election is canceled in accordance with section 36(a)(3)(i).
(iv) Although your approved yield will be used to determine your
amount of premium owed, the premium rate will be increased to cover the
additional risk associated with the replacement of higher pre-quality
reduction based actual yields.
(b) You may make adjustments to your approved yield by limiting a
reduction to the approved APH yield to a maximum decline of 10 percent
of the previous crop year's approved APH yield when such reduction is
due to a decline in production resulting from a natural disaster or
other insurable loss, as provided in FCIC procedures.
[[Page 163]]
37. Organic Farming Practices.
(a) In accordance with section 8(b)(2), insurance will not be
provided for any crop grown using an organic farming practice, unless
the information needed to determine a premium rate for an organic
farming practice is specified on the actuarial table, or insurance is
allowed by a written agreement.
(b) If insurance is provided for an organic farming practice as
specified in section 37(a), only the following acreage will be insured
under such practice:
(1) Certified organic acreage;
(2) Transitional acreage being converted to certified organic
acreage in accordance with an organic plan; and
(3) Buffer zone acreage.
(c) You must provide the following organic records, as applicable:
(1) By the acreage reporting date, except as allowed by section
37(c)(2), you must have:
(i) For certified organic acreage, a written certification in effect
from a certifying agent indicating the name of the entity certified,
effective date of certification, certificate number, types of
commodities certified, and name and address of the certifying agent (A
certificate issued to a tenant may be used to qualify a landlord or
other similar arrangement).
(ii) For transitional acreage, a certificate as described in section
37(c)(1)(i), or written documentation from a certifying agent indicating
an organic plan is in effect for the acreage.
(iii) For certified organic and transitional acreage, records from
the certifying agent showing the specific location of each field of
certified organic, transitional, buffer zone, and acreage not maintained
under organic management.
(2) If you do not meet the requirements in section 37(c)(1)(i) or
(ii), you must provide documentation that you have requested, in
writing, your written certification or organic plan by the acreage
reporting date.
(i) Your certificate or plan must be in effect prior to the earlier
of the end of the insurance period or when coverage ends as provided in
section 11(b).
(ii) Your acreage will remain insured under the practice you
reported on the acreage reporting date unless you have a loss. If you
have a loss and do not have a certificate or plan in place at the time
the claim is finalized in accordance with the applicable policy
provisions, then your acreage will be insured under the practice for
which it qualifies.
(d) If you claim a loss on any acreage insured under an organic
farming practice, you must provide us with copies of the records
required in section 37(c).
(e) If any acreage qualifies as certified organic or transitional
acreage on the date you report such acreage, and such certification is
subsequently revoked or suspended by the certifying agent, or the
certifying agent does not consider the acreage as transitional acreage
for the remainder of the crop year, that acreage will remain insured
under the reported practice for which it qualified at the time the
acreage was reported. Any loss due to failure to comply with organic
standards will be considered an uninsured cause of loss.
(f) Contamination by application or drift of prohibited substances
onto land on which crops are grown using organic farming practices will
not be an insured peril on any certified organic, transitional or buffer
zone acreage.
(g) In addition to the provisions contained in section 17(f),
prevented planting coverage will not be provided for any acreage based
on an organic farming practice in excess of the number of acres that
will be grown under an organic farming practice and shown as such in the
records required in section 37(c).
(h) In lieu of the provisions contained in section 17(f)(1) that
specify prevented planting acreage within a field that contains planted
acreage will be considered to be acreage of the same practice that is
planted in the field, prevented planting acreage will be considered as
organic practice acreage if it is identified as certified organic,
transitional, or buffer zone acreage in the organic plan.
38. Direct Marketing and Verifiable Records
(a) You must notify us and complete the marketing certification if
you intend to direct market any portion of the crop, or if acceptable
verifiable records are required and will not be available. It is your
responsibility to assure you meet all the notification and completion
requirements to be properly identified as in compliance with the
provisions specified in this section.
(b) Notice and certification provisions:
(1) Provide us notice and complete a marketing certification by the
acreage reporting date when any portion of the crop will be direct
marketed, or if acceptable verifiable records are required and will not
be available. If your marketing plans change after the acreage reporting
date, then you must provide notice no later than 15 days prior to
harvest of the crop. The notice may be made by telephone or in person.
If a marketing certification is required, it must be completed in
writing within 15 days of the initial notice.
(2) If you fail to notify us timely and complete the marketing
certification in accordance with these provisions and if you do not have
acceptable verifiable production records to support the information you
certified on your production report, you will receive an assigned yield
in accordance with section 3(g).
[[Page 164]]
(3) We may determine that the marketing certification is not
required for your crop based on FCIC procedures.
(4) Appraisals prior to harvest may be conducted for production
reporting purposes to be used in conjunction with your acceptable
production records.
(i) If we determine an appraisal is necessary, we must notify you.
(ii) If you request an appraisal, you must notify us at least 15
days prior to harvest.
(5) Appraisals conducted for production reporting purposes may not
be applicable for establishing total production to count under section
15 when the appraisal was conducted prior to our receipt of a notice of
loss.
[56 FR 1351, Jan. 14, 1991]
Editorial Note: For Federal Register citations affecting Sec.
457.8, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and at www.govinfo.gov.
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. Sec. 457.10-457.100 [Reserved]
Sec. 457.101 Small grains crop insurance provisions.
The Small Grains Crop Insurance Provisions for the 2023 and
succeeding crop years for crops with a contract change date on or after
November 30, 2022, and for the 2024 and succeeding crop years with a
contract change date prior to November 30, 2022, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Small Grains Crop Provisions
1. Definitions
Adequate stand. A population of live plants per unit of acreage
which will produce at least the yield used to establish your production
guarantee.
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.
Initially planted. The first occurrence of planting the insured crop
on insurable acreage for the crop year.
Khorasan. The common name for a variety of wheat (Triticum
turanicum) that is marketed under trademarks such as Kamut. Khorasan is
considered spring wheat for the purposes of this policy.
Latest final planting date. (1) The final planting date for the
spring type in all counties for which the Special Provisions designate a
spring type only;
(2) The final planting date for the winter type in all counties for
which the Special Provisions designate a winter type only; or
(3) The final planting date for the spring type in all counties for
which the Special Provisions designate both spring and winter types.
Local market price. The cash grain price per bushel for the
applicable quality level indicated below and 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 applicable quality level indicated below. Factors not associated
with the specified quality levels, including but not limited to protein,
oil or moisture content, or milling quality will not be considered.
(1) U.S. No. 2 for Wheat (subclass hard amber durum for durum wheat
and subclass northern spring for hard red spring wheat), except
Khorasan; barley (including hull-less barley); oats (including hull-less
oats); rye; and flax.
(2) The quality factor levels required for durum wheat to grade U.S.
No. 2 for Khorasan.
(3) No. 2 grade buckwheat determined in accordance with the
applicable state grading standards.
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.
Planted acreage. In addition to the definition contained in the
Basic Provisions, 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
planted in rows to be considered planted, unless otherwise provided by
the Special Provisions, actuarial documents, or by written agreement.
Prevented planting. As defined in the Basic Provisions, except that
the references to ``final planting date'' contained in the definition in
the Basic Provisions are replaced with the ``latest final planting
date.''
Small grains. Wheat, including only common wheat (Triticum
aestivum), club wheat (T. compactum), durum wheat (T. durum) and
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Khorasan (T. turanicum); barley (Hordeum vulgare), including hull-less
barley and excluding black barley; oats (Avena sativa, and A.
byzantina), and hull-less oats (A. Nuda); rye (Secale cereale); flax
(Linum usitatissimum); and buckwheat (Fagopyrum esculentum) or as
otherwise specified in the actuarial documents.
Swathed. Severance of the stem and grain head from the ground
without removal of the seed from the head and placing into a windrow.
2. Unit Division
(a) In addition to enterprise units provided in section 34(a) of the
Basic Provisions, for wheat only, you may elect separate enterprise
units by type, as provided in this section, if allowed by the actuarial
documents. If you elect enterprise units by type, you may not elect
enterprise or optional units by irrigation practices.
(1) You may elect separate enterprise units by type unless otherwise
specified in the Special Provisions. For example, if you have winter and
spring types, you may elect one enterprise unit for the spring type or
one enterprise unit for the winter type, or separate enterprise units
for both types. Any acreage which is not reported and insured as an
enterprise unit will be insured as basic or optional units, if
requirements are met. For example, if you only have winter and spring
types, you may have an enterprise unit for the winter type acreage and
basic or optional units for the spring type acreage.
(2) You must separately meet the requirements in section 34(a)(4) of
the Basic Provisions for each enterprise unit.
(3) If you elected separate enterprise units for multiple types and
we discover enterprise unit qualifications are not separately met for
all types in which you elected an enterprise unit and such discovery is
made:
(i) On or before the acreage reporting date, you may elect to
insure:
(A) All types in which you elected an enterprise unit for meeting
the requirements in section 34(a)(4) as separate enterprise units, and
basic or optional units for any acreage that is not reported and insured
as an enterprise unit, whichever you report on your acreage report and
for which you qualify;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure for all acreage of
the crop in the county.
(4) If you elected an enterprise unit for only one type and we
discover you do not qualify for an enterprise unit for that type and
such discovery is made:
(i) On or before the acreage reporting date, your unit division for
all acreage of the crop in the county will be based on basic or optional
units, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure for all acreage of the crop in the county.
(b) In addition to, or instead of, establishing optional units as
provided in section 34(c) of the Basic Provisions, for wheat only,
separate optional units may be established for each wheat type
(designated in actuarial documents and including any type insured by
written agreement) if each optional unit contains only initially-planted
acreage of the type.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) Revenue protection is not available for your flax or buckwheat.
Therefore, if you elect to insure such crops by the sales closing date,
they will only be protected against a loss in yield.
(b) Revenue protection is available for barley, oats, rye, and
wheat. Therefore, if you elect to insure your barley, oats, rye, or
wheat:
(1) You must elect to insure your barley, oats, rye, or wheat with
either revenue protection or yield protection by the sales closing date;
and
(2) In counties with both winter and spring sales closing dates for
the insured crop (excluding counties that have a spring sales closing
date and a winter sales closing date only applicable to the Winter
Coverage Endorsement):
(i) If you do not have any insurable winter-planted acreage of the
insured crop, you may change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, until the spring sales closing date; or
(ii) If you have any insurable winter-planted acreage of the insured
crop, you may not change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, after the winter sales closing date.
Winter-planted acreage of the insured crop must be reported and insured
if it meets the requirements in section 6.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date
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for counties with a March 15 cancellation date and June 30 preceding the
cancellation date for all other counties.
5. Cancellation and Termination Dates
The cancellation and termination dates are as follows, unless
otherwise specified in the actuarial documents:
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Crop, state and county Cancellation date Termination date
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Wheat:
All Colorado counties except September 30........................ September 30.
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; all Iowa counties except
Plymouth, Cherokee, Buena Vista,
Pocahontas, Humboldt, Wright,
Franklin, Butler, Black Hawk,
Buchanan, Delaware, Dubuque and all
Iowa counties north thereof; all
Nebraska counties except Box Butte,
Dawes, and Sheridan; all Wisconsin
counties except Buffalo,
Trempealeau, Jackson, Wood,
Portage, Waupaca, Outagamie, Brown,
Kewaunee and all Wisconsin counties
north thereof; 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.
Del Norte, Humboldt, Lassen, Modoc, September 30........................ November 30.
Plumas, Shasta, Siskiyou and
Trinity Counties, California;
Archuleta, Custer, 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; Box Butte,
Dawes, and Sheridan Counties,
Nebraska; New York; Oregon; Rhode
Island; all South Dakota counties
except Corson, Walworth, Edmunds,
Faulk, Spink, Beadle, Kingsbury,
Miner, McCook, Minnehaha and all
South Dakota counties north and
east thereof; Washington; Buffalo,
Trempealeau, Jackson, Wood,
Portage, Waupaca, Outagamie, Brown
and Kewaunee Counties, Wisconsin,
and all Wisconsin counties north
thereof; and all Wyoming counties
except Big Horn, Fremont, Hot
Springs, Park, and Washakie.
Arizona; all California counties October 31.......................... November 30.
except Del Norte, Humboldt, Lassen,
Modoc, Plumas, Shasta, Siskiyou and
Trinity; Nevada; and Utah.
Alaska; Alamosa, Conejos, Costilla, March 15............................ March 15.
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, Kingsbury, Miner, McCook,
and Minnehaha Counties, South
Dakota, and all South Dakota
counties north and east thereof;
Vermont; and Big Horn, Fremont, Hot
Springs, Park, and Washakie
Counties, Wyoming.
Barley:
All New Mexico counties except Taos; September 30........................ September 30.
Texas, Oklahoma, Missouri,
Illinois, Indiana, Ohio,
Pennsylvania, New Jersey and all
states south and east thereof.
Kit Carson, Lincoln, Elbert, El September 30........................ November 30.
Paso, Pueblo and Las Animas
Counties, Colorado, and all
Colorado counties south and east
thereof; Connecticut; Kansas;
Massachusetts; New York; and Rhode
Island.
Arizona; all California counties October 31.......................... November 30.
except Del Norte, Humboldt, Lassen,
Modoc, Plumas, Shasta, Siskiyou and
Trinity; Clark, Humboldt, Nye and
Pershing Counties, Nevada; and Box
Elder, Millard and Utah Counties,
Utah.
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Del Norte, Humboldt, Lassen, Modoc, March 15............................ March 15.
Plumas, Shasta, Siskiyou and
Trinity Counties, California; All
Colorado counties except Kit
Carson, Lincoln, Elbert, El Paso,
Pueblo and Las Animas, and all
Colorado counties south and east
thereof; all Nevada counties except
Clark, Humboldt, Nye and Pershing;
Taos County, New Mexico; all Utah
counties except Box Elder, Millard
and Utah; and all other states
except Arizona, and (except) Texas,
Oklahoma, Missouri, Illinois,
Indiana, Ohio, Pennsylvania, New
Jersey and all states south and
east thereof.
Oats:
Alabama; Arkansas; Florida; Georgia; September 30........................ September 30.
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 counties October 31.......................... October 31.
except Del Norte, Humboldt, Lassen,
Modoc, Plumas, Shasta, Siskiyou and
Trinity.
Del Norte, Humbolt, Lassen, Modoc, March 15............................ March 15.
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, and all Virginia
counties east thereof; and all
other states 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.......................... March 15............................ March 15.
Buckwheat:
All states.......................... March 15............................ March 15.
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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 documents:
(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 a written agreement
allows insurance for such mixture. The production from such mixture will
be considered as the predominate grain on a weight basis); and
(3) That is not, unless insurance is allowed by a written agreement:
(i) Interplanted with another crop except as allowed in section
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.
(b) Buckwheat will be insured only if it is produced under a
contract with a business enterprise equipped with facilities appropriate
to handle and store buckwheat production. The contract must be executed
by you and the business enterprise, in effect for the crop year, and a
copy provided to us no later than the acreage reporting date. To be
considered a contract, the executed document must contain:
(1) A requirement that you plant, grow and deliver buckwheat to the
business enterprise;
(2) The amount of production that will be accepted or a statement
that all production from a specified number of acres will be accepted;
(3) The price to be paid for the contracted production or a method
to determine such price; and
(4) Other such terms that establish the obligations of each party to
the contract.
(c) 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 section 6 of the Basic Provisions); or
(2) May report all planted acreage as insurable when you report your
acreage for the crop year. Premium will be due on all the acreage except
as set forth herein. If the Special Provisions allow a reduced premium
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amount for acreage intentionally destroyed prior to harvest, you may
qualify for such reduction only if you notify us in writing on or before
the date designated in the Special Provisions of the intended
destruction, and do not claim an indemnity on the acreage. No premium
reduction will be allowed if the required notice is not given or if you
claim an indemnity for the acreage. Upon receiving timely notice,
insurance coverage on the acreage you do not intend to harvest will
cease and we will revise your acreage report to indicate the applicable
reduction in premium. If you do not destroy the crop as intended, you
will be subject to the under-reporting provisions contained in section 6
of the Basic Provisions.
(d) In counties for which the actuarial documents provide premium
rates for the Wheat or Barley Winter Coverage Endorsement (7 CFR
457.102), coverage is available for wheat or barley damaged between the
time coverage begins and the spring final planting date. Coverage under
the endorsement is effective only if you qualify under the terms of the
endorsement and you execute the endorsement by the sales closing date.
7. Insurance Period
In accordance with section 11 of the Basic Provisions, and subject
to any provisions provided by the Wheat or Barley Winter Coverage
Endorsement (if elected by you):
(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 rye, flax, and buckwheat, 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 section 12 of these Crop Provisions and section 16 of the
Basic Provisions.
(ii) Any acreage of the insured crop damaged before the final
planting date, to the extent that producers in the surrounding area
would not normally further care for the crop, must be replanted unless
we agree that it is not practical to replant.
(2) For barley, oat, 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 section 12 of these Crop Provisions and section 16
of the Basic Provisions.
(ii) Whenever the Special Provisions designate only a winter type,
any acreage of winter barley, oats, or wheat damaged before such final
planting date, to the extent that producers 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 winter and
spring types:
(A) Any winter barley, oat, or wheat acreage that is damaged before
the spring final planting date, to the extent that producers in the area
would normally not further care for the crop, must be replanted to a
winter type of the insured crop to maintain insurance based on the
winter type unless we agree that replanting is not practical. If it is
not practical to replant to the winter type of barley, oats, or wheat,
but is practical to replant to a spring type, you must replant to a
spring type to keep your insurance based on the winter type in force.
(B) Any winter barley, oat, or wheat acreage that is replanted to a
spring type of the same crop when it was practical to replant the winter
type will be insured as the spring type and the production guarantee,
premium, projected price, and harvest price applicable to the spring
type will be used. In this case, the acreage will be considered to be
initially planted to the spring type.
(C) Notwithstanding sections 7(a)(2)(iii)(A) and (B), if you have
elected coverage under a barley or wheat Winter Coverage Endorsement (if
available in the county), insurance will be in accordance with the
endorsement.
(D) Any winter barley, oat, or wheat acreage planted after the end
of the late planting period will not be insured unless you request such
coverage on or before the spring sales closing date, and we inspect and
determine that the acreage has an adequate stand in the spring to
produce the yield used to determine your production guarantee. However,
if we fail to inspect the acreage by the spring final planting date,
insurance will attach as specified in section 7(a)(2)(iii)(D)(3).
(1) Your request for coverage must include the location and number
of acres of winter barley, oats, or wheat.
(2) The winter barley, oats, or wheat will be insured as a spring
type for the purpose of the production guarantee, premium, projected
price, and harvest price, if applicable.
(3) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand by the spring final planting date.
(iv) Whenever the Special Provisions designate a spring type, any
spring barley, oat, or wheat acreage damaged before such final planting
date, to the extent that producers 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 type,
any winter barley, oat, or wheat acreage will not be insured unless you
request such coverage on or before the spring sales closing date, and we
inspect and give written confirmation that the acreage has an adequate
stand in the spring to
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produce the yield used to determine your production guarantee. However,
if we fail to inspect the acreage by the spring final planting date,
insurance will attach as specified in section 7(a)(2)(v)(C).
(A) Your request for coverage must include the location and number
of acres of winter barley, oats, or wheat.
(B) The winter barley, oats, or wheat will be insured as a spring
type for the purpose of the production guarantee, premium, projected
price, and harvest price, if applicable.
(C) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand by the spring final planting date.
(D) Any such winter barley, oats, or wheat acreage that is damaged
after it is accepted for insurance but before the spring final planting
date, to the extent that producers 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 it is not practical to replant.
(E) If winter-planted acreage is not to be insured it must be
recorded on the acreage report as uninsured winter-planted acreage.
(b) The calendar date for the end of the insurance period is the
following applicable date:
(1) September 25 in Alaska;
(2) July 31 in Alabama, Arizona, Arkansas, Connecticut, Delaware,
Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New
Jersey, North Carolina, South Carolina and Tennessee; or
(3) October 31 in all other states.
8. Causes of Loss
In addition to the provisions under section 12 of the Basic
Provisions, 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;
(h) Failure of the irrigation water supply due to a cause of loss
specified in sections 8(a) through (g) that also occurs during the
insurance period; or
(i) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
9. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these crop provisions;
(2) You must comply with all requirements regarding replanting
payments contained in section 13 of the Basic Provisions (except as
allowed in section 9(a)(1)) and in any Winter Coverage Endorsement for
which you are eligible and which you have elected;
(3) The insured crop 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;
(4) The acreage must have been initially planted to a spring type of
the insured crop in those counties with only a spring type;
(5) Damage must occur after the winter final planting date in those
counties where both a winter and spring final planting date are
designated (If the Special Provisions provide more than one winter final
planting date, the winter final planting date applicable to policies
with the Wheat or Barley Winter Coverage Endorsement will be used for
this purpose, regardless of whether or not the endorsement is actually
in effect.); and
(6) The replanted crop must be seeded at a rate sufficient to
achieve a total (undamaged and new seeding) plant population that is
considered appropriate by agricultural experts for the insured crop,
type and practice.
(b) No replanting payment will be made for acreage initially planted
to a winter type of the insured crop (including rye) in any county for
which the Special Provisions contain only a winter type.
(c) Unless otherwise specified in the Special Provisions, the amount
of the replanting payment per acre will be:
(1) The lesser of 20 percent of the production guarantee or the
number of bushels for the applicable crop specified below:
(i) Two bushels for flax or buckwheat;
(ii) Four bushels for wheat; or
(iii) Five bushels for barley or oats;
(2) Multiplied by:
(i) Your price election for flax or buckwheat; or
(ii) Your projected price for barley, oats, or wheat; and
(3) Multiplied by your share.
(d) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
(e) Replanting payments will be calculated using your price election
or your projected
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price, as applicable, and your production guarantee for the type that is
replanted and insured. For example, if damaged spring wheat is replanted
to durum wheat, your projected price applicable to durum wheat will be
used to calculate any replanting payment that may be due. A revised
acreage report will be required to reflect the replanted type.
Notwithstanding the previous two sentences, the following will have a
replanting payment based on your production guarantee and your price
election or your projected price, as applicable, for the type initially
planted:
(1) Any damaged winter type that is replanted to a spring type, but
that retains insurance based on the winter type; and
(2) Any acreage replanted at a reduced seeding rate into a partially
damaged stand of the insured crop.
10. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
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.
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the number of insured acres of each insured crop or
type, as applicable by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection for barley, oats, rye, or wheat;
(ii) Production guarantee (per acre) and your price election for
flax or buckwheat; or
(iii) Revenue protection guarantee (per acre) if you elected revenue
protection for barley, oats, rye, or wheat;
(2) Totaling the results of section 11(b)(1)(i), (ii), or (iii),
whichever is applicable;
(3) Multiplying the production to count of each insured crop or
type, as applicable, by your respective:
(i) Projected price for barley, oats, rye, or wheat if you elected
yield protection;
(ii) Price election for flax or buckwheat; or
(iii) Harvest price if you elected revenue protection;
(4) Totaling the results of section 11(b)(3)(i), (ii), or (iii),
whichever is applicable;
(5) Subtracting the result of section 11(b)(4) from the result of
section 11(b)(2); and
(6) Multiplying the result of section 11(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of wheat in the unit with a
production guarantee (per acre) of 45 bushels, your projected price is
$7.10, your harvest price is $10.90, and your production to count is
2,000 bushels.
If you elected yield protection:
(1) 50 acres x (45-bushel production guarantee x $7.10 projected
price) = $15,975.00 value of the production guarantee;
(2) Not applicable;
(3) 2,000-bushel production to count x $7.10 projected price =
$14,200.00 value of the production to count;
(4) Not applicable;
(5) $15,975.00-$14,200.00 = $1,775.00; and
(6) $1,775.00 x 1.000 share = $1,775.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (45-bushel production guarantee x $10.90 harvest
price) = $24,525.00 revenue protection guarantee;
(2) Not applicable;
(3) 2,000-bushel production to count x $10.90 harvest price =
$21,800.00 value of the production to count;
(4) Not applicable;
(5) $24,525.00-$21,800.00 = $2,725.00; and
(6) $2,725.00 x 1.000 share = $2,725.00 indemnity.
(c) The total production to count (in bushels) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) For flax or buckwheat, and barley, oats, rye, or wheat under
yield protection, not less than the production guarantee (per acre), and
for barley, oats, rye, or wheat under revenue protection, not less than
the amount of production that when multiplied by the harvest price
equals the revenue protection guarantee (per acre) 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
paragraph (d) of this section);
(iv) 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 when you put the acreage to
[[Page 171]]
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 wheat, barley, oat, rye, and buckwheat production may be
adjusted for excess moisture and quality deficiencies. Flax production
may be adjusted for quality deficiencies only. If a moisture adjustment
is applicable, it will be made prior to any adjustment for quality.
(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;
(iv) 16.0 percent for rye and buckwheat; or
(v) As otherwise provided in the Special Provisions.
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 including the definition of terms used in
section 11(d), result in:
(A) Wheat, except Khorasan, not meeting the grade requirements for
U.S. No. 4 (grades U.S. No. 5 or worse) because of test weight; total
damaged kernels (heat-damaged kernels will not be considered to be
damaged); shrunken or broken kernels; defects (foreign material and heat
damage will not be considered to be defects); a musty, sour, or
commercially objectionable foreign odor (except smut odor); or grading
garlicky, light smutty, smutty, and ergoty;
(B) Barley, except hull-less 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 (heat-damaged kernels will be
considered to be sound barley); damaged kernels (heat-damaged kernels
will not be considered to be damaged); thin barley; black barley; a
musty, sour, or commercially objectionable foreign odor (except smut or
garlic odor); or grading blighted, smutty, garlicky, or ergoty;
(C) Oats, except hull-less oats, not meeting the grade requirements
for U.S. No. 4 (grade U.S. sample grade) because of test weight;
percentage of sound oats (heat-damaged kernels will be considered to be
sound oats); a musty, sour, or commercially objectionable foreign odor
(except smut or garlic odor); or grading smutty, thin, 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
(heat-damaged kernels will not be considered to be damaged); thin rye; a
musty, sour, or commercially objectionable foreign odor (except smut or
garlic odor); or grading light smutty, smutty, light garlicky, garlicky,
or ergoty;
(E) Flaxseed not meeting the grade requirements for U.S. No. 2
(grades U.S. sample grade) due to test weight; damaged kernels (heat-
damaged kernels will not be considered to be damaged); or a musty, sour,
or commercially objectionable foreign odor (except smut or garlic odor);
(ii) Deficiencies in the quality of buckwheat, determined in
accordance with applicable state grading standards, result in it not
meeting No. 3 grade requirements due to test weight; a musty, sour or
commercially objectionable foreign odor (except smut or garlic odor); or
grading garlicky, smutty, and ergoty if such grades are provided for by
the applicable state grading standards;
(iii) Quality factors for Khorasan fall below the levels contained
in the Official United States Standards for Grain that cause durum wheat
to grade less than U.S. No. 4. For example, if durum wheat grades less
than U.S. No. 4 when its test weight falls below 54.0 pounds per bushel,
Khorasan would be eligible for quality adjustment if its test weight
falls below 54.0 pounds per bushel. The same quality factors considered
for quality adjustment of durum wheat will be applicable and
determination of deficiencies will be made in accordance with the
Federal Grain Inspection Service directive that establishes procedures
for quality factor analysis of Khorasan seed. Quality adjustment
discount factors for U.S. grades specified in the Special Provisions
will also apply to Khorasan at the same levels applicable to durum
wheat;
(iv) Quality factors for hull-less barley fall below the levels
contained in the Official United States Standards for Grain that cause
barley to grade less than U.S. No. 4. For example, if barley grades less
than U.S. No. 4 when its test weight falls below 40.0 pounds per bushel,
hull-less barley would be eligible for quality adjustment if its test
[[Page 172]]
weight falls below 40.0 pounds per bushel. The same quality factors
considered for quality adjustment of barley will be applicable and
determination of deficiencies will be made in accordance with the
Federal Grain Inspection Service directive that establishes procedures
for quality factor analysis of hull-less barley. Quality adjustment
discount factors for U.S. grades specified in the Special Provisions
will also apply to hull-less barley at the same levels applicable to
barley;
(v) Quality factors for hull-less oats fall below the levels
contained in the Official United States Standards for Grain that cause
oats to grade less than U.S. No. 4. For example, if oats grade less than
U.S. No. 4 when its test weight falls below 27.0 pounds per bushel,
hull-less oats would be eligible for quality adjustment if the test
weight falls below 27.0 pounds per bushel. The same quality factors
considered for quality adjustment of oats will be applicable and
determination of deficiencies will be made in accordance with the
Federal Grain Inspection Service directive that establishes procedures
for quality factor analysis of hull-less oats. Quality adjustment
discount factors for U.S. grades specified in the Special Provisions
will also apply to hull-less oats at the same levels applicable to oats;
or
(vi) 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) 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;
(iii) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjustor), the samples are analyzed
by:
(A) A grain grader licensed under the United States Grain Standards
Act or the United States Warehouse Act;
(B) A grain grader licensed under State law and employed by a
warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation; or
(C) A grain grader not licensed under State law, but who is employed
by a warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(iv) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Small grain production that is eligible for quality adjustment,
as specified in sections 11(d)(2) and (3), will be reduced by the
quality adjustment factor calculated in accordance with the Special
Provisions.
(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
A late planting period is applicable to small grains, except to any
barley or wheat acreage covered under the terms of the Wheat or Barley
Winter Coverage Endorsement. Barley or wheat covered under the terms of
the Winter Coverage Endorsement must be planted on or prior to the
applicable final planting date specified in the Special Provisions. In
counties having one winter final planting date for acreage covered under
the Wheat or Barley Winter Coverage Endorsement and another winter final
planting date for acreage not covered under the endorsement, the winter
late planting period will begin after the final planting date for
acreage not covered under the endorsement.
13. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional coverage and pay an additional premium,
you may increase your prevented planting coverage if such additional
coverage is specified in the actuarial documents. In counties for which
the Special Provisions designate a spring type, your prevented planting
production guarantee will be based on your approved yield for spring-
planted acreage of the insured crop.
[59 FR 9391, Feb. 28, 1994, as amended at 60 FR 62723, Dec. 7, 1995; 62
FR 65164, Dec. 10, 1997; 67 FR 43526, June 28, 2002; 68 FR 34268, June
9, 2003; 75 FR 15875, Mar. 30, 2010; 81 FR 84398, Nov. 23, 2016; 86 FR
33849, June 25, 2021; 86 FR 38537, July 22, 2021; 87 FR 72362, Nov. 25,
2022]
Editorial Note: At 86 FR 33489, June 25, 2021, Sec. 457.101, in
section 7 of the clause, paragraphs (c)(2)(v) introductory text, and
(c)(2)(v)(A), (B), (D), and (E) were revised. However, due to an
inaccurate amendatory instruction, the amendments could not be
incorporated.
[[Page 173]]
Sec. 457.102 Wheat or barley winter coverage endorsement.
United States Department of Agriculture
Federal Crop Insurance Corporation
Wheat or Barley Winter Coverage Endorsement
(This is a continuous endorsement)
1. In return for payment of the additional premium designated in the
actuarial documents, this endorsement is attached to and made part of
the Small Grains Crop Provisions subject to the terms and conditions
described herein.
2. This endorsement is available only in counties for which the
Special Provisions for the insured crop designate both a fall final
planting date and a spring final planting date, and for which the
actuarial documents provide a premium rate for this coverage.
3. You must have a Small Grains Crop Insurance Policy in force and
elect to insure barley or wheat under that policy.
4. You must select this coverage, by crop, on your application for
insurance. Failure to do so means you have rejected this coverage for
both wheat and barley and this endorsement is void.
5. In addition to the requirements of section 34(b) of the Basic
Provisions and section 2 of the Small Grains Crop Provisions, optional
units may be established for barley if each optional unit contains only
initially planted winter barley or only initially planted spring barley.
6. If you elect this endorsement for winter barley, the contract
change, cancellation, and termination dates applicable to wheat in the
county will be applicable to all your spring and winter barley.
7. 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.
8. The provisions of section 14 of the Basic Provisions are amended
to require that all notices of damage be provided to us by the spring
final planting date designated in the Special Provisions.
9. All eligible acreage of each crop covered under this endorsement
must be insured.
10. The amount of any indemnity paid under the terms of this
endorsement will be subject to any reduction specified in the Basic
Provisions for multiple crop benefits in the same crop year.
11. Whenever any winter wheat or barley is damaged during the
insurance period and at least 20 acres or 20 percent of the insured
planted 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 Basic Provisions, the Small Grains
Crop Insurance Provisions and this endorsement.
(b) Replant the acreage to an appropriate variety of the insured
crop, if it is practical, and receive a replanting payment in accordance
with the terms of section 9 (Replanting Payments) of the Small Grains
Crop Insurance Provisions. By doing so, coverage will continue under the
terms of the Basic Provisions, the Small Grains Crop Insurance
Provisions and this endorsement, and the production guarantee for winter
wheat or barley will remain in effect.
(c) Destroy the remaining crop on such acreage. By doing so, you
agree to accept an appraised amount of production determined in
accordance with section 11(c)(1) of the Small Grains Crop Insurance
Provisions to count against the unit production guarantee. 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 section 11 (Settlement of Claim) of the Small Grains Crop Insurance
Provisions. You may use such acreage for any purpose, including planting
and separately insuring any other crop if such insurance is available.
If you elect to plant and elect to insure a spring type of the same crop
(you must elect whether or not you want insurance on the spring type of
the same crop at the time we release the winter type acreage), you must
pay additional premium for the insurance. Such acreage will be insured
in accordance with the policy provisions that are applicable to acreage
that is initially planted to a spring type of the insured crop, and you
must:
(1) Plant the spring type in a manner which results in a clear and
discernable break in the planting pattern at the boundary between it and
any remaining acreage of the winter type; and
(2) Store or market the production in a manner which permits us to
verify the amount of spring type production separately from any winter
type production. In the event you are unable to provide records of
production that are acceptable to us, the spring type acreage will be
considered to be a part of the original winter type unit.
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:
[[Page 174]]
(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 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, as amended at 68 FR 34272, June 9, 2003]]
Sec. 457.103 [Reserved]
Sec. 457.104 Cotton crop insurance provisions.
The Cotton Crop Insurance Provisions for the 2017 and succeeding
crop years are as follows:
[[Page 175]]
United States Department of Agriculture
Federal Crop Insurance Corporation
Cotton Crop Provisions
1. Definitions
Cotton. Varieties identified as American Upland Cotton.
Growth area. A geographic area designated by the Secretary of
Agriculture for the purpose of reporting cotton prices.
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.
Mature cotton. Cotton that can be harvested either manually or
mechanically.
Planted acreage. In addition to the definition contained in the
Basic Provisions, cotton must be planted in rows, unless otherwise
provided by the Special Provisions, actuarial documents, or by written
agreement. 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 other spring planted crop.
Production guarantee (per acre). In lieu of the definition contained
in the Basic Provisions, 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.
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 Farm
Service Agency (FSA) or a successor agency.
2. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you must elect to insure your cotton with either revenue
protection or yield protection by the sales closing date.
3. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and
State and county termination dates
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, January 31.
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, Reagan, 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,
Matagorda Counties, Texas..
All other Texas counties and all other States. March 15.
------------------------------------------------------------------------
5. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the cotton lint, in the county for which premium
rates are provided by the actuarial documents:
(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; or
(3) Interplanted with another spring planted crop.
6. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(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 a majority of the producers in the
area would not normally further care for the crop, must be replanted
unless we agree that it is not practical to replant.
7. Insurance Period
(a) In lieu of section 11(b)(2) of the Basic Provisions, insurance
will end upon the removal of the cotton from the field.
(b) In accordance with the provisions under section 11 of the Basic
Provisions, 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;
[[Page 176]]
(2) January 31 in Arizona, California, New Mexico, Oklahoma, and all
other Texas counties; and
(3) December 31 in all other states.
8. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, 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;
(h) Failure of the irrigation water supply due to a cause of loss
specified in sections 8(a) through (g) that also occurs during the
insurance period; or
(i) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
9. Duties in the Event of Damage or Loss
(a) In addition to your duties under section 14 of the Basic
Provisions, in the event of damage or loss, at our option or if required
by FCIC in the Special Provisions, you may be required to leave the
cotton stalks intact for our inspection. If applicable, 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.
(b) Representative samples are required in accordance with section
14 of the Basic Provisions.
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 number of insured acres by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection; or
(ii) Revenue protection guarantee (per acre) if you elected revenue
protection;
(2) Totaling the results of section 10(b)(1)(i) or 10(b)(1)(ii),
whichever is applicable;
(3) Multiplying the production to count by your:
(i) Projected price if you elected yield protection; or
(ii) Harvest price if you elected revenue protection;
(4) Totaling the results of section 10(b)(3)(i) or 10(b)(3)(ii),
whichever is applicable;
(5) Subtracting the result of section 10(b)(4) from the result of
section 10(b)(2); and
(6) Multiplying the result of section 10(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of cotton in the unit with a
production guarantee (per acre) of 525 pounds, your projected price is
$.65, your harvest price is $.70, and your production to count is 25,000
pounds.
If you elected yield protection:
(1) 50 acres x (525 pound production guarantee x $.65 projected
price) = $17,062.50 value of the production guarantee
(3) 25,000 pound production to count x $.65 projected price =
$16,250.00 value of production to count
(5) $17,062.50-$16,250.00 = $812.50
(6) $812.50 x 1.000 share = $813.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (525 pound production guarantee x $.70 harvest price)
= $18,375.00 revenue protection guarantee
(3) 25,000 pound production to count x $.70 harvest price =
$17,500.00 value of the production to count
(5) $18,375.00-$17,500.00 = $875.00
(6) $875.00 x 1.000 share = $875.00 indemnity.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) For yield protection, not less than the production guarantee and
for revenue protection, not less than the amount of production that when
multiplied by the harvest price equals the revenue protection guarantee
(per acre) 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) If applicable, on which the cotton stalks are destroyed, in
violation of section 9.
(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 10(d)); and
[[Page 177]]
(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 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 85 percent
of price quotation ``B.''
(1) Price B is defined as the Upland Cotton National Average Loan
Rate determined by FSA, or as specified in the Special Provisions.
(2) Price A is defined as the loan value per pound for the bale
determined in accordance with the FSA Schedule of Premiums and Discounts
for the applicable crop year, or as specified in the Special Provisions.
(3) If eligible for adjustment, the amount of production to count
will be determined by multiplying the number of pounds of such
production by the factor derived from dividing price quotation ``A'' by
85 percent of price quotation ``B.''
(e) Colored cotton lint will not be eligible for quality adjustment.
11. Prevented Planting
(a) In addition to the provisions contained in section 17 of the
Basic Provisions, your prevented planting production guarantee will be
based on your approved yield without adjustment for skip-row planting
patterns.
(b) Your prevented planting coverage will be a percentage specified
in the actuarial documents of your production guarantee for timely
planted acreage. If you have additional coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[59 FR 49154, Sept. 27, 1994, as amended at 60 FR 62725, Dec. 7, 1995;
62 FR 7134, Feb. 18, 1997; 62 FR 63633, Dec. 2, 1997; 62 FR 65164, Dec.
10, 1997; 63 FR 55497, Oct. 16, 1998; 63 FR 66717, Dec. 3, 1998; 75 FR
15878, 15879, Mar. 30, 2010; 75 FR 59057, Sept. 27, 2010; 80 FR 81161,
Dec. 29, 2015; 81 FR 84398, Nov. 23, 2016]
Sec. 457.105 Extra long staple cotton crop insurance provisions.
The Extra Long Staple Cotton Crop Insurance Provisions for the 2017
and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
ELS Cotton Crop Provisions
1. Definitions
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.
ELS cotton. Extra Long Staple cotton (also called Pima cotton,
American-Egyptian cotton, and American Pima cotton).
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.
Mature ELS cotton. ELS cotton that can be harvested either manually
or mechanically.
Planted acreage. In addition to the definition contained in the
Basic Provisions, cotton must be planted in rows, unless otherwise
provided by the Special Provisions, actuarial documents, or by written
agreement. 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 other spring planted crop.
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.
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.
Skip-row. A planting pattern that:
[[Page 178]]
(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 Farm
Service Agency (FSA) or a successor agency.
2. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8) you may select only one price election for all the cotton
in the county insured under this policy.
3. Contract Changes
The contract change date is November 30 preceding the cancellation
date (see the provisions of section 4 of the Basic Provisions).
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and termination
States dates
------------------------------------------------------------------------
New Mexico................................ March 15.
All other States.......................... Feb. 28.
------------------------------------------------------------------------
5. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the cotton lint in the county for which
premium rates are provided by the actuarial documents:
(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.
6. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions
(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 a majority of producers in the area
would not normally further care for the crop, must be replanted unless
we agree that it is not practical to replant.
7. Insurance Period
(a) In lieu of section 11(b)(b)(2) of the Basic Provisions,
insurance will end upon the removal of the cotton from the field.
(b) In accordance with the provisions of section 11 of the Basic
Provisions (Sec. 457.8), the calendar date for the end of the insurance
period is January 31 immediately following planting.
8. Causes of Loss
In accordance with the provisions of section 12 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) Failure of irrigation water supply, if applicable, due to an
unavoidable cause of loss occurring within the insurance period.
9. Duties in the Event of Damage or Loss.
(a) In addition to your duties under section 14 of the Basic
Provisions, 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) At our option or if required by FCIC in the Special Provisions,
you may be required to leave the cotton stalks intact for our
inspection. If applicable, 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.
(b) Representative samples are required in accordance with section
14 of the Basic Provisions.
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:
(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:
[[Page 179]]
(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 to count (in pounds) 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) If applicable, on which the cotton stalks are destroyed, in
violation of section 9.
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested production may be
adjusted for quality deficiencies in accordance with subsection:
(A) 10(d) and (e) if it is mature ELS cotton; or
(B) 10(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 Price A is less than 85 percent of Price B.
(1) Price B is defined as the Extra Long Staple Cotton National
Average Loan Rate determined by FSA, or as specified in the Special
Provisions.
(2) Price A is defined as the loan value per pound for the bale
determined in accordance with the FSA Schedule of Premiums and Discounts
for the applicable crop year, or as specified in the Special Provisions.
(3) If eligible for quality 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 A by 85
percent of Price B.
(e) For ELS cotton to be eligible for quality adjustment as shown in
subsection 10(d), ginning must have been completed at a gin using roller
equipment.
(f) Mature 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 for AUP cotton by the
price per pound for ELS cotton. The prices used for AUP and ELS cotton
will be calculated using the Upland Cotton National Average Loan Rate
determined by FSA and the Extra Long Staple Cotton National Average Loan
Rate determined by FSA, or as specified in the Special Provisions.
11. Late Planting.
(a) A late planting period is applicable to ELS cotton, if allowed
by the Special Provisions.
(b) If the Special Provisions do not provide for a late planting
period, any ELS cotton that is planted after the final planting date
will not be insured unless you were prevented from planting it by the
final planting date. Such acreage will be insurable, and the production
guarantee and premium for the acreage will be determined in accordance
with section 16 of the Basic Provisions.
12. Prevented Planting
(a) In addition to the provisions contained in section 17 of the
Basic Provisions, your prevented planting production guarantee will be
based on your approved yield without adjustment for skip-row planting
patterns.
(b) Your prevented planting coverage will be a percentage specified
in the actuarial documents of your production guarantee for timely
planted acreage. If you have additional levels of coverage and pay an
additional premium, you may increase your prevented planting coverage if
such additional
[[Page 180]]
coverage is specified in the actuarial documents.
[59 FR 49169, Sept. 27, 1994, as amended at 60 FR 62726, Dec. 7, 1995;
62 FR 6704, Feb. 13, 1997; 62 FR 63633, Dec. 2, 1997; 62 FR 65165, Dec.
10, 1997; 63 FR 55497, Oct. 16, 1998; 63 FR 66717, Dec. 3, 1998; 76 FR
32068, June 3, 2011; 78 FR 70487, Nov. 26, 2013; 80 FR 81161, Dec. 29,
2015; 81 FR 84398, Nov. 23, 2016]
Sec. 457.106 Texas citrus tree crop insurance provisions.
The Texas Citrus Tree Crop Insurance Provisions for the 2011 and
succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured policies
(Appropriate title for insurance provider)
Both FCIC and Reinsured Policies
Texas Citrus Tree Crop Provisions
1. Definitions
Bud union. The location on the tree trunk where a bud from one tree
variety is grafted onto root stock of another variety.
Crop--Specific groups of citrus fruit trees as listed in the Special
Provisions.
Crop year. For the 1998 crop year only, a period of time that begins
on June 1, 1997, and ends on November 20, 1998. For all other crop
years, a period of time that begins on November 21 of the calendar year
prior to the year the trees normally bloom, and ends on November 20 of
the following calendar year. The crop year is designated by the year in
which the insurance period ends.
Dehorning. Cutting all scaffold limbs to a length not longer than
\1/4\ the height of the tree before such cutting.
Destroyed--Trees damaged to the extent that removal is necessary.
Excess precipitation. An amount of precipitation sufficient to
directly damage the tree.
Excess wind. A natural movement of air that 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.
Freeze. The formation of ice in the cells of the trees caused by low
air temperatures.
Good farming practices. The cultural practices generally in use in
the county for the trees to have normal growth and vigor and recognized
by the National Institute of Food and Agriculture as compatible with
agronomic and weather conditions in the county.
Interplanted. Acreage on which two or more crops are planted in any
form of alternating or mixed pattern.
Irrigated practice. A method by which the normal growth and vigor of
the insured trees is maintained by artificially applying adequate
quantities of water during the growing season using the appropriate
irrigation systems at the proper times.
Root stock. A root or a piece of a root of one tree variety onto
which a bud from another tree variety is grafted.
Scaffold limbs. Major limbs attached directly to the trunk.
Set out. Transplanting the tree into the grove.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will be divided into additional basic units by each citrus crop
designated in the Special Provisions.
(b) Sections 34(b) (1), (3), and (4) of the Basic Provisions are not
applicable.
(c) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
(d) Instead 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
(a) In lieu of the requirement of section 3 (Insurance Guarantees,
Coverage Levels, and Prices for Determining Indemnities) of the Basic
Provisions (Sec. 457.8), that prohibits you from selecting more than
one coverage level for each insured crop, you may select a different
coverage level for each crop designated in the Special Provisions that
you elect to insure.
(b) In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of
the Basic Provisions (Sec. 457.8):
(1) If you insure trees within a crop which are either of a
different variety or are planted at a different population density, the
per acre amount of insurance for each variety or population density for
the crop must bear the same relationship to the maximum amount of
insurance available for each variety and population density of the crop
as specified in the Actuarial documents. For example, if you elect 100
percent of the maximum amount of insurance for a variety within a
population density for the crop, you must select 100 percent of the
maximum amount of insurance for that variety for all population
densities for the crop. The amount of insurance for each variety and
population density must be multiplied by any applicable factor contained
in section 3(b)(2).
(2) The amount of insurance per acre will be the product obtained by
multiplying the
[[Page 181]]
reference maximum dollar amount of insurance that is shown in the
actuarial documents for the applicable population density by the
percentage for the level of coverage you select and by:
(i) Thirty-three percent (0.33) for the year of set out, the year
following dehorning, or the year following grafting of a set out tree.
(Insurance will be limited to this amount until trees that are set out
are one year of age or older on the first day of the crop year);
(ii) Sixty percent (0.60) for the first growing season after being
set out, the second year following dehorning, or the second year
following grafting of a set out tree;
(iii) Eighty percent (0.80) for the second growing season after
being set out, the third year following dehorning, or the third year
following grafting of a set out tree; or
(iv) Ninety percent (0.90) for the third growing season after being
set out, the fourth year following dehorning, or the fourth year
following grafting of a set out tree.
(3) The amount of insurance per acre for each population density, or
factor as appropriate, will be multiplied by the applicable number of
insured acres. These results will then be added together to determine
the amount of insurance for the unit.
(4) 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. For example, if the amount of insurance you selected
is $2,000 and the remaining stand is 85 percent of the original stand,
the amount of insurance on which the premium and any indemnity will be
based is $1,700 ($2,000 multiplied by 0.85).
(5) If any insurable acreage of trees is set out after the first day
of the crop year, and you elect to insure such acreage during that crop
year, you must report the acreage, practice, crop, number of trees, date
set out is completed, and your share to us within 72 hours after set out
is completed for the unit.
(6) 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.
(7) You must report, by the sales closing date contained in the
Special Provisions, by type if applicable:
(i) Any damage, removal of trees, change in practices, or any other
circumstance that may reduce the amount of insurance, and the number of
affected acres;
(ii) The number of trees on insurable and uninsurable acreage;
(iii) The date of original set out and the planting pattern;
(iv) 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; and
(v) For the first year of insurance for acreage interplanted with
another perennial crop, and anytime the planting pattern of such acreage
is changed:
(A) The age of the interplanted crop, and type if applicable;
(B) The planting pattern; and
(C) Any other information that we request in order to establish your
amount of insurance.
We will reduce the amount of insurance as necessary, based on our
estimate of the effect of interplanting a perennial crop; removal of
trees; damage; change in practices and any other circumstance on the
potential of the insured crop. If you fail to notify us of any
circumstance that may reduce the potential for the insured crop, we will
reduce your amount of insurance 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. Annual Premium
In addition to the provisions of section 7 of the Basic Provisions
(Sec. 457.8), for the 1998 crop year, the premium amount otherwise
payable for the 1998 crop year will be increased by 46 percent as a
result of the additional six months of coverage for that crop year.
7. Insured Crop
(a) In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all of each citrus
tree crop designated in the Special Provisions in the county for which a
premium rate is provided by the actuarial documents and that you elect
to insure:
(1) In which you have an ownership share;
(2) That is adapted to the area;
(3) That is set out for the purpose of growing fruit to be harvested
for the commercial production of fresh fruit or for juice;
(4) That is irrigated; and
(5) That have the potential to produce at least 70 percent of the
county average yield for the crop and age, unless a written agreement is
approved to insure the trees with lesser potential.
[[Page 182]]
(b) In addition to section 8 (Insured Crop) of the Basic Provisions
(Sec. 457.8), we do not insure any citrus trees:
(1) During the crop year the application for insurance is filed,
unless we inspect the acreage and consider it acceptable; or
(2) That have been grafted onto existing root stock or nursery stock
within the one-year period prior to the date insurance attaches.
(c) We may exclude from insurance or limit the amount of insurance
on any acreage that was not insured the previous year.
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 trees 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.
9. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of the
Basic Provisions (Sec. 457.8):
(a) The insurance period is as follows:
(1) For the 1998 crop year only, coverage will begin on June 1,
1997, and will end on November 20, 1998.
(2) For all subsequent crop years, coverage begins on November 21 of
the calendar year prior to the year the insured crop normally blooms,
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 the requirements for insurability
contained in your policy. You must provide any information that we
require for the crop or to determine the condition of the grove.
(3) The calendar date for the end of the insurance period for each
crop year is November 20.
(b) 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.
(c) If you relinquish your insurable share on any insurable acreage
of citrus trees on or before the acreage reporting date for the crop
year, insurance will not be considered to have attached to and no
premium or indemnity will be due for such acreage for that crop year
unless:
(1) A transfer of coverage and right to an indemnity, or a similar
form approved by us, is completed by all affected parties;
(2) We are notified by you or the transferee in writing of such
transfer on or before the acreage reporting date; and
(3) The transferee is eligible for crop insurance.
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) Excess precipitation;
(b) Excess wind;
(c) Fire, unless weeds and other forms of undergrowth have not been
controlled or pruning debris has not been removed from the grove;
(d) Freeze;
(e) Hail;
(f) Tornado; or
(g) Failure of the irrigation water supply if caused by an insured
peril or drought that occurs during the insurance period.
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), in case of
damage or probable loss, if you intend to claim an indemnity on any
unit, you must allow us to inspect all insured acreage before pruning,
dehorning, or removal of any damaged trees.
12. Settlement of Claim
(a) In the event of damage covered by this policy, we will settle
your claim on a unit basis by:
(1) Determining the actual percent of damage for the unit in
accordance with sections 12 (b), (c), and (d);
(2) Subtracting your deductible from the percent of damage for the
unit (this result must be greater than zero to receive an indemnity);
(3) Dividing the result of section 12(a)(2) by your coverage level
percentage;
(4) Multiplying the result of section 12(a)(3) by the amount of
insurance per acre determined in accordance with section 3(b)(2);
(5) Multiplying the result of section 12(a)(4) by the number of
insured acres; and
(6) Multiplying the result of section 12(a)(5) by your share.
(b) The percent of damage for any tree will be determined as
follows:
(1) For damage occurring during the year of set out (trees that have
not been set out for at least one year at the time insurance attaches):
(i) One-hundred percent (100%) whenever there is no live wood above
the bud union;
[[Page 183]]
(ii) Ninety percent (90%) whenever there is less than 12 inches of
live wood above the bud union; or
(iii) The tree will be considered undamaged whenever there is more
than 12 inches of live wood above the bud union; or
(2) For damage occurring in any year following the year of set out:
(i) The percentage of damage will be determined by dividing the
number of scaffold limbs 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. Whenever this percentage
exceeds 80 percent, the tree will be considered as 100 percent damaged.
(ii) The percent of damage for the unit will be determined by
computing the average of the determinations made for the individual
trees. If this percent of damage exceeds 80 percent, the unit will be
considered 100 percent damaged.
(c) The percent of damage on the unit will be reduced by the
percentage of damage due to uninsured causes.
13. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 4117, Jan. 29, 1997, as amended at 62 FR 65166, Dec. 10, 1997; 63
FR 55779, Oct. 19, 1998; 75 FR 15879, Mar. 30, 2010; 76 FR 4804, Jan.
27, 2011]
Sec. 457.107 Florida citrus fruit crop insurance provisions.
The Florida Citrus Fruit Crop Insurance Provisions for the 2014 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: Florida Citrus Fruit Crop Insurance
Provisions
1. Definitions
Age class. Trees in the unit are grouped by age, with each insurable
age group of a particular citrus fruit commodity, commodity type, and
intended use receiving a Reference Maximum Dollar Amount shown in the
actuarial documents that is used to calculate the amount of insurance
for the unit.
Amount of insurance (per acre). The dollar amount determined by
multiplying the Reference Maximum Dollar Amount shown on the actuarial
documents for each applicable combination of commodity type, intended
use, and age class of trees, within a citrus fruit commodity, times the
coverage level percent that you elect, times your share.
Box. A standard field box as prescribed in the State of Florida
Citrus Fruit Laws or contained in standards issued by FCIC.
Buckhorn. To prune any limb at a diameter of at least three inches
for citrus.
Citrus fruit commodity. Citrus fruit as follows:
(1) Oranges;
(2) Grapefruit;
(3) Tangelos;
(4) Mandarins/Tangerines;
(5) Tangors;
(6) Lemons;
(7) Limes; and
(8) Any other citrus fruit commodity designated in the actuarial
documents.
Citrus fruit group. A designation in the Special Provisions used to
identify combinations of commodity types and intended uses within a
citrus fruit commodity that may be grouped together for the purposes of
electing coverage levels and identifying the insured crop.
Commodity type. A specific subgroup of a commodity having a
characteristic or set of characteristics distinguishable from other
subgroups of the same commodity.
Excess wind. A natural movement of air that has sustained speeds
exceeding 58 miles per hour (50 knots) recorded at the U.S. National
Weather Service (NWS) reporting station (reported as MAX SUST (KT)), the
Florida Automated Weather Network (FAWN) reporting station (reported as
10m Wind (mph)), or any other weather reporting station identified in
the Special Provisions operating nearest to the insured acreage at the
time of damage.
Freeze. The formation of ice in the cells of the fruit caused by low
air temperatures.
Harvest. The severance of mature citrus fruit from the tree by
pulling, picking, shaking, or any other means, or collecting the
marketable citrus fruit from the ground.
Hurricane. A windstorm classified by the U.S. Weather Service as a
hurricane.
Intended use. The producer's expected end use or disposition of the
commodity at the time the commodity is reported. Insurable intended uses
will be specified in the Special Provisions.
Interstock. The area of the tree that is grafted to a rootstock. For
example, the rootstock may be Sour Orange, and the interstock
grapefruit, and the grafted scion Valencia orange.
Potential production. The amount, converted to boxes, of citrus
fruit that would have been produced had damage not occurred.
(a) Including citrus fruit that:
(1) Was harvested before damage occurred;
(2) Remained on the tree after damage occurred;
(3) Except as provided in (b), was missing, damaged, or destroyed
from either an insured or uninsured cause;
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(4) Was marketed or could be marketed as fresh citrus fruit;
(5) Was harvested prior to inspection by us; or
(6) Was harvested within 7 days after a freeze;
(b) Not including citrus fruit that:
(1) Was missing, damaged, or destroyed before insurance attached for
any crop year;
(2) Was damaged or destroyed 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.
Scion. A detached living portion of a plant joined to a stock in
grafting.
Top worked. A buckhorned citrus tree with a new scion grafted onto
the interstock.
Unmarketable. Citrus fruit that cannot be processed into products
for human consumption.
2. Unit Division
(a) Basic units will be established in accordance with section 1 of
the Basic Provisions.
(b) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
(c) In addition to 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 of the Basic
Provisions:
(a) You may select only one coverage level for each citrus fruit
group that you elect to insure. If different amounts of insurance are
available for commodity types within a citrus fruit group, you must
select the same coverage level for each commodity type. For example, if
you choose the 75 percent coverage level for one commodity type, you
must also choose the 75 percent coverage level for all other commodity
types within that citrus fruit group.
(b) The production reporting requirements contained in section 3 of
the Basic Provisions are not applicable.
(c) You must report, by the acreage reporting date designated in the
actuarial documents:
(1) Any event or action that could reduce the yield per acre of the
insured citrus fruit commodity (including but not limited to removal of
trees, any damage, disease, change in cultural practices, or any other
circumstance that may reduce the productive capacity of the trees) and
the number of affected acres;
(2) The number of trees on insurable and uninsurable acreage,
including interplanted trees;
(3) The age of the trees and the planting pattern; and
(4) Any other information we request in order to establish your
amount of insurance.
(d) We will reduce insurable acreage or the amount of insurance or
both, as necessary:
(1) Based on our estimate of the effect of the interplanted trees on
the insured commodity type;
(2) Following a decrease in plant stand;
(3) If cultural practices are performed that may reduce the
productive capacity of the trees;
(4) If disease or damage occurs to the trees that may reduce the
productive capacity of the trees; or
(5) Any other circumstance that may reduce the productive capacity
of the trees or that may reduce the yield per acre from previous levels.
(e) If you fail to notify us of any circumstance that may reduce the
acreage, the productive capacity of the trees, or the yield per acre
from previous levels, we will reduce the acreage or amount of insurance
or both as necessary any time we become aware of the circumstance.
(f) For carryover policies:
(1) Any changes to your coverage must be requested on or before the
sales closing date;
(2) Requested changes will take effect on May 1, the first day of
the crop year, unless we reject the requested increase based on our
inspection, or because a loss occurs on or before April 30 (Rejection
can occur at any time we discover loss has occurred on or before April
30); and
(3) If the increase is rejected, coverage will remain at the same
level as the previous crop year.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is January 31 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are April 30.
6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the
insured crop will be all acreage of each citrus fruit group 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 documents.
(b) In addition to the citrus fruit not insurable in section 8 of
the Basic Provisions, we do not insure any citrus fruit:
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(1) That cannot be expected to mature each crop year within the
normal maturity period for the commodity type;
(2) Produced by citrus 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 (In
order for the year of set out to be considered as a growing season,
citrus trees must be set out on or before April 15 of the calendar
year);
(3) Of ``Meyer Lemons,'' ``Sour Oranges,'' or ``Clementines'';
(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 the sales closing date or the time you submit
the application for insurance);
(5) That is produced on citrus trees that have been topworked until
the third crop year after topworking. The Special Provisions will
specify the appropriate rate class for trees insurable following
topworking, but that have not reached full production; or
(6) Of any commodity type not specified as insurable in the Special
Provisions.
(c) Prior to the date insurance attaches, and upon our approval, you
may elect to insure or exclude from insurance any insurable citrus
acreage that has a potential production of less than 100 boxes per acre.
If you elect to:
(1) Insure such acreage, we will consider the potential production
to be 100 boxes per acre when determining the amount of loss; or
(2) Exclude such acreage, we will disregard the acreage for all
purposes related to this policy.
(d) In addition to the provisions in section 6 of the Basic
Provisions, if you fail to notify us of your election to insure or
exclude citrus 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.
(e) Potential production will be determined during loss adjustment.
(f) For citrus fruit for which fresh fruit coverage is available as
designated in the actuarial documents:
(1) Management records must be available upon request to verify good
fresh citrus fruit production practices were followed from the beginning
of bloom stage until harvest; and
(2) Unless otherwise provided in the Special Provisions:
(i) Acceptable fresh fruit sales records must be provided upon
request from at least one of the previous three crop years; or
(ii) For fresh fruit acreage new to the operation or for acreage in
the initial year of fresh fruit production, a current year fresh fruit
marketing contract must be provided to us upon request.
7. Insurable Acreage
(a) In lieu of the provisions in section 9 of the Basic Provisions
that prohibit insurance attaching to interplanted acreage:
(1) Citrus fruit from trees interplanted with another commodity type
or another agricultural commodity is insurable unless we inspect the
acreage and determine it does not meet the requirements contained in
your policy.
(2) If the citrus fruit is from trees interplanted with another
commodity type or another agricultural commodity, acreage will be
prorated according to the percentage of the acres occupied by each of
the interplanted commodity types or agricultural commodities. For
example, if grapefruit have been interplanted with oranges on 100 acres
and the grapefruit trees are on 50 percent of the acreage, grapefruit
will be considered planted on 50 acres and oranges will be considered
planted on 50 acres.
(3) The combination of the citrus fruit acreage and the interplanted
acreage cannot exceed the physical amount of acreage.
(b) In addition to section 9 of the Basic Provisions, any acreage of
citrus fruit that has been abandoned is not insurable.
8. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) Coverage begins on May 1 of each crop year, unless:
(i) For new or carryover policies, as applicable, we inspect the
acreage and determine it does not meet the requirements for insurability
contained in your policy (You must provide any information we require,
so we may determine the condition of the acreage to be insured); or
(ii) For carryover policies, you report additional citrus acreage,
or a greater share, such that the amount of insurance will increase by
more than 10 percent and we notify you all or a part of your citrus
acreage is not insurable.
(2) The calendar date for the end of the insurance period for each
crop year, unless specified otherwise in the Special Provisions, is:
(i) February 7 for navel oranges, Orlando tangelos and tangerines;
(ii) February 28 for early-season oranges and all other tangelos;
(iii) March 31 for mid-season oranges and temples;
(iv) April 30 for lemons and limes;
(v) May 15 for murcotts; and
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(vi) June 30 for grapefruit and late-season oranges.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(1) Acreage acquired after the acreage reporting date for the crop
year is not insurable unless a transfer of coverage and right to
indemnity is executed in accordance with section 28 of the Basic
Provisions.
(2) If you relinquish your insurable share on any insurable acreage
of citrus fruit on or before the acreage reporting date of the crop
year, insurance will not attach, no premium will be due, and no
indemnity payable, for such acreage for that crop year.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss to citrus fruit 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;
(5) Tornado;
(6) Excess wind; or
(7) Diseases, but only if specified in the Special Provisions.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) 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) If any citrus fruit within a unit is damaged by an insurable
cause of loss, 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 each applicable combination of commodity type, intended use,
and age class of trees in the unit and multiplying that result by your
share;
(2) Calculating the average percent of damage to the fruit within
each respective combination of commodity type, intended use, and age
class of trees, rounded to the nearest tenth of a percent (0.1%) (To
determine the percent of damage, the amount of citrus fruit damaged from
an insured cause must be converted to boxes and divided by the potential
production);
(3) Subtracting the deductible from the result of section 10(b)(2);
(4) If the result of section 10(b)(3) is positive, dividing this
result by the coverage level percentage (If the result of section
10(b)(3) is negative, no indemnity will be due);
(5) Multiplying the result of section 10(b)(4) by the amount of
insurance for the unit for the respective combination of commodity type,
intended use, and age class of trees, to determine the value of all
damage; and
(6) Totaling all such results of section 10(b)(5) for all applicable
combinations of commodity types, intended uses, and age classes of trees
in the unit and subtracting any indemnities paid for the current crop
year to determine the amount payable for the unit. For example, assume a
55-acre unit sustains late season damage. No previous damage has
occurred on the unit during the crop year and no fruit has been
harvested. The producer elected the 75 percent coverage level and has a
100 percent share. The amount of insurance is $1,180 per acre, based on
the 75 percent coverage level, for the commodity type, intended use, and
age class of trees. The amount of potential production is 24,530 boxes
and the amount of damaged production is 17,171 boxes. The loss would be
calculated as follows:
1. 55 acres x $1,180 = $64,900 amount of insurance for the unit;
2. 17,171 / 24,530 = 70 percent average percent of damage;
3. 70 percent damage -25 percent deductible (100 percent -75
percent) = 45 percent;
4. 45 percent / 75 percent = 60 percent adjusted damage; and
5. 60 percent x $64,900 = $38,940 indemnity.
(c) Any individual citrus fruit will be considered 100 percent
damaged, if due to an insurable cause of loss it is:
(1) On the ground and unmarketable; or
(2) Unmarketable because it is immature, unwholesome, decomposed,
adulterated, or otherwise unfit for human consumption.
(d) Any citrus fruit that can be processed into products for human
consumption will be considered marketable. The percent of damage for the
marketable citrus fruit (excluding citrus fruit sold as fresh or damaged
due to uninsured causes) will be determined by:
(1) Subtracting the juice content of the marketable citrus fruit
(excluding citrus
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fruit sold as fresh or damaged due to uninsured causes) from:
(i) 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
(ii) The default juice content provided in the Special Provisions,
if at least three years of acceptable juice records are not furnished or
the citrus fruit is insured as fresh;
(2) Subtracting the juice content of the marketable citrus fruit
(excluding citrus fruit sold as fresh or damaged due to uninsured
causes) from the official weight per box for the applicable commodity
type provided in the Special Provisions;
(3) Dividing the result of section 10(d)(1) by the result of
10(d)(2);
(4) Dividing the official weight per box for the applicable
commodity type provided in the Special Provisions by:
(i) 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
(ii) The default juice content provided in the Special Provisions,
if at least three years of acceptable juice records are not furnished or
the citrus fruit is insured as fresh; and
(5) Multiplying the result of section 10(d)(3) by the result of
10(d)(4); and
(6) For citrus fruit insured as fresh that has a Fresh Fruit Factor
listed in the Special Provisions, making an additional adjustment to the
percent of damage by:
(i) Subtracting the result of section 10(d)(5) from 1;
(ii) Multiplying the result of section 10(d)(6)(i) by the applicable
Fresh Fruit Factor located in the Special Provisions; and
(iii) Adding the result of section 10(d)(6)(ii) to the result of
section 10(d)(5).
(e) Notwithstanding section 10(d), for citrus fruit insured as
fresh, unless otherwise provided in the Special Provisions, any
individual citrus fruit not meeting the applicable United States
Standards for packing as fresh fruit due to an insured cause of loss
will be considered 100 percent damaged, except that the percent of
damage for any production sold for an alternative use will be adjusted
in accordance with section 10(d).
11. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[73 FR 7196, Feb. 7, 2008; 73 FR 10973, Feb. 29, 2008, as amended at 77
FR 75519, Dec. 21, 2012; 78 FR 4305, Jan. 22, 2013; 78 FR 22411, Apr.
16, 2013]
Sec. 457.108 Sunflower seed crop insurance provisions.
The Sunflower Seed Crop Insurance Provisions for the 2022 and
succeeding crop years are as follows:
Department of Agriculture
Federal Crop Insurance Corporation
Sunflower Seed Crop Provisions
1. Definitions
Harvest. Combining or threshing the sunflowers for seed.
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.
Planted acreage. In addition to the definition contained in the
Basic Provisions, sunflower seed must initially be planted in rows far
enough apart to permit mechanical cultivation, unless otherwise provided
by the Special Provisions, actuarial documents, or by written agreement.
2. Unit Division
(a) In addition to the requirements of section 34(a) of the Basic
Provisions, you may elect separate enterprise units for confectionery or
oil types if these types are allowed by the actuarial documents. If you
elect enterprise units for these types, you may not elect enterprise or
optional units by irrigation practices.
(1) You may elect one enterprise unit for the confectionery type or
one enterprise unit for the oil type, or separate enterprise units for
both types, unless otherwise specified in the Special Provisions. For
example: You may choose one enterprise unit for the confectionery type
acreage and basic or optional units for the oil type acreage.
(2) You must separately meet the requirements in section 34(a)(4)
for each enterprise unit.
(3) If you elected separate enterprise units for both types and we
discover you do not qualify for an enterprise unit for one or the other
type and such discovery is made:
(i) On or before the acreage reporting date, you may elect to
insure:
(A) One enterprise unit for the confectionery type or oil type
provided you meet
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the requirements in section 34(a)(4), and basic or optional units for
the other type, whichever you report on your acreage report and qualify
for;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and qualify for; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure.
(4) If you elected an enterprise unit for one type and a different
unit structure on the other type and we discover you do not qualify for
an enterprise unit for the type and such discovery is made:
(i) On or before the acreage reporting date, your unit division will
be based on basic or optional units, whichever you report on your
acreage report and qualify for; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure.
(b) In addition to, or instead of, establishing optional units as
provided in section 34(c) in the Basic Provisions, a separate optional
unit may be established for each sunflower type (designated in the
actuarial documents and including any type insured by written
agreement).
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you must elect to insure your sunflowers with either revenue
protection or yield protection by the sales closing date.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and termination
State and county dates
------------------------------------------------------------------------
Hidalgo, Jim Wells, Nueces, and Starr January 31.
Counties, Texas.
All other Texas counties and all other March 15.
States.
------------------------------------------------------------------------
6. Insured Crop
In accordance with section 8 of the Basic Provisions, 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 documents:
(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 of the Basic Provisions:
(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 a majority of producers in the area
would not normally further care for the crop, must be replanted unless
we agree that it is not practical to replant.
8. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, 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 of the Basic
Provisions, 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;
(h) Failure of the irrigation water supply due to a cause of loss
specified in sections 9(a) through (g) that also occurs during the
insurance period; or
(i) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
10. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a
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replant payment to the actual cost of replanting, the amount of any
replanting payment will be determined in accordance with these Crop
Provisions;
(2) Except as specified in section 10(a)(1), you must comply with
all requirements regarding replanting payments contained in section 13
of the Basic Provisions; and
(3) The insured crop 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.
(b) Unless otherwise specified in the Special Provisions, the amount
of the replanting payment per acre will be the lesser of 20 percent of
the production guarantee or 175 pounds, multiplied by your projected
price, multiplied by your share.
(c) When the crop 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.
(d) If the acreage is replanted to an insured crop type that is
different than the insured crop type originally planted on the acreage:
(1) The production guarantee, premium, and projected price and
harvest price, as applicable, will be adjusted based on the replanted
type;
(2) Replanting payments will be calculated using your projected
price and production guarantee for the crop type that is replanted and
insured; and
(3) A revised acreage report will be required to reflect the
replanted type, as applicable.
11. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
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 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 number of insured acres by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection; or
(ii) Revenue protection guarantee (per acre) if you elected revenue
protection;
(2) Totaling the results of section 12(b)(1)(i) or 12(b)(1)(ii),
whichever is applicable;
(3) Multiplying the production to count by your:
(i) Projected price if you elected yield protection; or
(ii) Harvest price if you elected revenue protection;
(4) Totaling the results of section 12(b)(3)(i) or 12(b)(3)(ii),
whichever is applicable;
(5) Subtracting the result of section 12(b)(4) from the result of
section 12(b)(2); and
(6) Multiplying the result of section 12(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of sunflowers in the unit
with a production guarantee (per acre) of 1,250 pounds, your projected
price is $.23, your harvest price is $.24, and your production to count
is 54,000 pounds.
If you elected yield protection:
(1) 50 acres x (1,250 pound production guarantee x $.23 projected
price) = $14,375.00 value of the production guarantee;
(3) 54,000 pound production to count x $.23 projected price =
$12,420.00 value of production to count;
(5) $14,375.00-$12,420.00 = $1,955.00;
(6) $1,955.00 x 1.000 share = $1,955.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (1,250 pound production guarantee x $.24 harvest
price) = $15,000.00 revenue protection guarantee;
(3) 54,000 pound production to count x $.24 harvest price =
$12,960.00 value of the production to count;
(5) $15,000.00-$12,960.00 = $2,040.00;
(6) $2,040.00 x 1.000 share = $2,040.00 indemnity.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) For yield protection, not less than the production guarantee,
and for revenue protection, not less than the amount of production that
when multiplied by the harvest price equals the revenue protection
guarantee (per acre) 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
section 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
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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;
(iii) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjustor), the samples are analyzed
by:
(A) A grain grader licensed under the United States Grain Standards
Act or the United States Warehouse Act;
(B) A grain grader licensed under State law and employed by a
warehouse operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grain grader not licensed under State law, but who is employed
by a warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(iv) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Sunflower seed production that is eligible for quality
adjustment, as specified in sections 12(d)(2) and (3), will be reduced
in accordance with quality adjustment factor provisions contained in the
Special Provisions.
(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. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional coverage and pay an additional premium,
you may increase your prevented planting coverage if such additional
coverage is specified in the actuarial documents.
[59 FR 67136, Dec. 29, 1994, as amended at 60 FR 62727, Dec. 7, 1995; 62
FR 63633, Dec. 2, 1997; 62 FR 65166, Dec. 10, 1997; 67 FR 55690, Aug.
30, 2002; 75 FR 15879, 15880, Mar. 30, 2010; 81 FR 84398, Nov. 23, 2016;
85 FR 76427, Nov. 30, 2020; 85 FR 79779, Dec. 11, 2020; 86 FR 11091,
Feb. 24, 2021; 86 FR 67837, Nov. 30, 2021]
Sec. 457.109 Sugar Beet Crop Insurance Provisions.
The Sugar Beet Crop Insurance Provisions for effective for the 2023
and succeeding crop years in states with a November 30 contract change
date and for the 2024 and succeeding crop years in all other states, are
as follows:
FCIC Policies
[[Page 191]]
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
1. Definitions
Crop year. 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.
Harvest. Topping and lifting of sugar beets in the field.
Percentage of raw sugar. Quantity of sugar determined from
analytical tests of samples performed by the processor or other
laboratories approved by us.
Planted acreage. In addition to the definition contained in the
Basic Provisions, sugar beets must initially be planted in rows, unless
otherwise provided by the Special Provisions, actuarial documents, or by
written agreement.
Pound. Sixteen (16) ounces avoirdupois.
Practical to replant. In addition to the definition in section 1 of
the Basic Provisions, it will not be considered practical to replant if
production from the replanted acreage cannot be delivered under the
terms of the production agreement, 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.
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 agreement. A written contract between you and the
processor, executed on or before the acreage reporting date, which is in
effect for the crop year, containing at a minimum:
(1) Your commitment to plant, grow, and deliver the sugar beet
production to the processor; and
(2) The processor's commitment to purchase the production stated in
the contract.
Production guarantee (per acre):
(1) First stage production guarantee--The final stage production
guarantee multiplied by 60 percent.
(2) Final stage production guarantee--The number of pounds of raw
sugar 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.
Ton. Two thousand (2,000) pounds avoirdupois.
2. Unit Division
In addition to the requirements of section 34 of the Basic
Provisions, basic units may be divided into optional units only if you
have a production agreement that requires the processor to accept all
production from a number of acres specified in the production agreement.
Acreage insured to fulfill a production agreement which provides that
the processor will accept a designated amount of production or a
combination of acreage and production will not be eligible for optional
units.
3. Insurance Guarantees, Coverage Levels, and Prices
(a) In addition to the requirements of section 3 of the Basic
Provisions, 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) The earlier of thinning or 90 days after planting in California;
and
(ii) July 1 in all other States.
(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 pounds of raw
sugar.
(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 of the Basic
Provisions, the contract change date is April 30 preceding the
cancellation date for California and November 30 preceding the
cancellation date for all other states.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are August 31 for California and
March 15 for all other states.
[[Page 192]]
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must provide a copy of all production agreements to us
on or before the acreage reporting date.
7. Annual Premium
In lieu of the premium computation method contained in section 7 of
the Basic Provisions, 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 documents.
8. Insured Crop
(a) In accordance with section 8 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 documents:
(1) In which you have a share;
(2) That are planted for harvest as sugar beets;
(3) That are grown under a production agreement and are not excluded
from the production agreement 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
adopted and executed a corporate resolution that contains essentially
the same terms as a production agreement. Such corporate resolution will
be considered a production agreement 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.
9. Insurable Acreage
In addition to the provisions of section 9 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, 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.
10. Insurance Period
In accordance with section 11 of the Basic Provisions, the dates for
the end of insurance period are contained in the Special Provisions.
11. Causes of Loss
In accordance with the provisions of section 12 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.
12. Replanting Payments
(a) In accordance with section 13 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 dollar amount of the replant payment is specified in the
Special Provisions.
(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.
[[Page 193]]
13. Duties in the Event of Damage or Loss
In accordance with the requirements of section 14 of the Basic
Provisions, 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.
14. 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 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;
(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 paragraphs (c)(1)(i) and (ii) of this
section will be counted; and
(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 production agreement or corporate resolution will be converted to
pounds of raw sugar by multiplying the tons of such production by 2,000
and by the average percentage of raw sugar to determine the production
to count. The average percentage of raw sugar will be determined from
tests performed by the processor or other laboratories approved by us at
the time of delivery or sample acquisition (appraisal).
(1) 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 your previous tests performed by the processor or other
laboratories approved by us during the crop year if it is determined
that such results are representative of the total production.
(2) 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 production agreement or corporate resolution due to an
insured peril will be converted to pounds of raw sugar by multiplying
the tons of such damaged production by 2,000 and by the average percent
of raw sugar contained in such production. The average percentage of raw
sugar will be determined from tests performed by the processor or other
laboratories approved by us at the time of crop delivery or sample
acquisition (appraisal).
(1) 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
[[Page 194]]
the results of your previous tests performed by the processor or other
laboratories approved by us during the crop year if it is determined
that such results are representative of the total production.
(2) If not representative, the average percent of raw sugar will
equal the raw sugar content percent shown in the Special Provisions.
(f) Production lost due to harvest prior to full maturity. If the
percentage of insured acreage in the unit harvested prior to full
maturity exceeds the threshold specified in the Special Provisions,
production to count from such acreage will be determined by increasing
the amount of harvested production by 1 percent per day for each day the
sugar beets were harvested prior to the date the sugar beets would have
reached full maturity.
(1) The date the sugar beets would have reached full maturity will
be considered to be 45 days prior to the calendar date for the end of
the insurance period, unless otherwise specified in the Special
Provisions.
(2) The adjustment will not be made if the sugar beets are damaged
by an insurable cause of loss and leaving the crop in the field would
reduce production.
(3) The adjustment cannot result in a yield greater than the higher
of your approved actual production history yield or the actual yield of
the production harvested after full maturity from the unit.
(4) The adjustment will only be made if early harvest is required in
the production agreement, or the processor requests early harvest prior
to full maturity.
(5) If the production agreement does not require early harvest and
the processor has not requested early harvest, and the processor:
(i) Accepts the early harvested production, the early harvested
production will be counted but no early harvest adjustment will apply.
(ii) Does not accept the early harvested production, the production
to count will be the production guarantee for the acreage harvested
early.
(g) If harvested production is damaged due to an insurable cause of
loss and is rejected by the processor but is sold to a salvage buyer at
a reduced price: Compute the pounds of raw sugar of the sold production
by dividing the gross dollar amount paid by the salvage buyer by the
established price.
(h) If production is damaged due to an insurable cause of loss to
the extent that the processor will not accept the production, such as
the production did not meet the standards contained in the production
agreement; and there are no salvage markets for the production, then
there would be no value for production and there would be no production
to count provided the production is destroyed in a manner acceptable to
us.
15. [Reserved]
16. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
17. Stage Removal Option
(a) Applicability:
(1) You must have an additional coverage policy to elect this
option.
(2) You must elect this option in writing on or before the sales
closing date for the first year it is in effect.
(3) This election is continuous, in accordance with section 2 of the
Basic Provisions, unless canceled by the cancellation date. Your
election of the Catastrophic Risk Protection Endorsement for your sugar
beets in any crop year will be deemed to be cancellation of this option
by you.
(4) All insurable acreage of sugar beets in the county will be
included under this option unless any acreage is specifically excluded
by the Special Provisions.
(b) Insurance Guarantees:
(1) The production guarantee (per acre) will be the final stage
guarantee.
(2) The terms and conditions contained in sections 3(b) and 3(d) do
not apply under this option.
(c) Premium Adjustment Factor: The premium adjustment factor in the
actuarial documents for the stage removal option will apply to the
premium computation method in section 7.
(d) Settlement of Claim:
(1) The ``respective production guarantee'' referenced in section
14(b) will be the final stage guarantee.
(2) The terms and conditions of section 14(c)(1)(iv) do not apply
under this option.
[61 FR 58775, Nov. 19, 1996, as amended at 62 FR 63633, Dec. 2, 1997; 62
FR 65167, Dec. 10, 1997; 81 FR 84399, Nov. 23, 2016; 83 FR 45538, Sept.
10, 2018; 84 FR 65638, Nov. 29, 2019; 87 FR 72862, Nov. 28, 2022]
[[Page 195]]
Sec. 457.110 Fig crop insurance provisions.
The Fig Crop Insurance Provisions for the 2001 and succeeding crop
years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Fig Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Harvest. The picking of the figs from the trees or ground by hand or
machine for the purpose of removal from the orchard.
Interplanted. Acreage on which two or more crops are planted in any
form of alternating or mixed pattern.
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.
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.
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
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will be divided into additional basic units by each fig type designated
in the Special Provisions.
(b) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements under section 3 of the Basic
Provisions, you may select only one price election for each fig type
designated in the Special Provisions and insured in the county under
this policy.
(b) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that could or would reduce the yield of the insured crop
has occurred prior to the time you request the increase.
(c) You must report, by the production reporting date designated in
section 3 of the Basic Provisions, by type if applicable:
(1) Any damage, removal of trees, 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;
(4) For the first year of insurance for acreage interplanted with
another perennial crop, and anytime the planting pattern of such acreage
is changed, the age of the crop that is interplanted with the figs, and
type if applicable, and the planting pattern; and
(5) 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 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
The contract change date is October 31 preceding the cancellation
date (see the provisions under section 4 (Contract Changes) of the Basic
Provisions (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 documents:
(a) In which you have a share;
(b) That are grown for harvest as dried figs;
(c) That are irrigated;
[[Page 196]]
(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. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions, that
prohibit insurance attaching to a crop planted with another crop, figs
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.
9. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) Coverage begins on March 1, except that for the year of
application, if your application is received after February 19 but prior
to March 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.
(2) The calendar date for the end of the insurance period for each
crop year is October 31 or the date harvest of the figs (by type) should
have started on any acreage that will not be harvested (Exceptions, if
any, for specific counties or varieties or varietal group are contained
in the Special Provisions).
(b) Notwithstanding paragraph (a)(1) of this section, for each
subsequent crop year that the policy remains continuously in force,
coverage begins on the day immediately following the end of the
insurance period for the prior crop year. Policy cancellation that
results solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage.
(c) If your fig policy is canceled or terminated for any crop year,
in accordance with the terms of the policy, after insurance attached for
that crop year but on or before the cancellation and termination dates
whichever is later, insurance will not be considered to have attached
for that crop year and no premium, administrative fee, or indemnity will
be due for such crop year.
10. Causes of Loss
(a) In addition to the provisions under section 12 (Causes of Loss)
of the Basic Provisions (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 Basic Provisions (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.
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
(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.
(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
[[Page 197]]
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.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[59 FR 9615, Mar. 1, 1994, as amended at 62 FR 65167, Dec. 10, 1997; 65
FR 47836, Aug. 4, 2000]
Sec. 457.111 Pear crop insurance provisions.
The Pear Crop Insurance Provisions for the 2023 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
1. Definitions
Harvest. The picking of mature pears from the trees or the
collecting of marketable pears from the ground.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Marketable. Pear production that grades U.S. Number 2 processing or
better, unless otherwise provided in the Special Provisions, or that is
sold (even if failing to meet any U.S. or applicable state grading
standard).
Ton. Two thousand (2,000) pounds avoirdupois.
2. Unit Division
(a) Optional units may either be established in accordance with
section 34(c) of the Basic Provisions or by non-contiguous land, but not
both.
(b) In addition to establishing optional units in accordance with
section 2(a), optional units may be established by type if allowed by
the Special Provisions. The requirements of section 34 of the Basic
Provisions that require the crop to be planted in a manner that results
in a clear and discernable break in the planting pattern at the
boundaries of each optional unit are not applicable for optional units
by type.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select different coverage levels and percent of price
elections for each type in the county as specified in the Special
Provisions, unless you elect Catastrophic Risk Protection (CAT) on any
type.
(1) For example, if you choose 75 percent coverage level and 100
percent of the maximum price election for one type, you may choose 65
percent coverage level and 75 percent of the maximum price election for
another type. However, if you elect the CAT level of coverage for any
pear type, the CAT level of coverage will be applicable to all insured
pear acreage for all types in the county.
[[Page 198]]
(2) Notwithstanding section 3(b)(2) of the Basic Provisions, pear
types will not be considered as separate crops and will not be subject
to separate administrative fees.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions (Sec. 457.8), by type:
(1) Any damage, removal of trees, 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 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.
(c) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
situation listed in sections 3(b)(1) through (b)(4). If the situation
occurred:
(1) Before the beginning of the insurance period, the yield used to
establish your production guarantee will be reduced for the current crop
year regardless of whether the situation was due to an insured or
uninsured cause of loss (If you fail to notify us of any circumstance
that may reduce your yields from previous levels, we will reduce the
yield used to establish your production guarantee at any time we become
aware of the circumstance);
(2) After the beginning of the insurance period and you notify us by
the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year only if
the potential reduction in the yield used to establish your production
guarantee is due to an uninsured cause of loss; or
(3) After the beginning of the insurance period and you fail to
notify us by the production reporting date, production lost due to
uninsured causes equal to the amount of the reduction in yield used to
establish your production guarantee will be applied in determining any
indemnity (see section 11(c)(1)(ii)). We will reduce the yield used to
establish your production guarantee for the subsequent crop year to
reflect any reduction in the productive capacity of the trees.
(d) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that could or would reduce the yield of the insured crop
has occurred prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 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 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 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 documents:
(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 otherwise allowed by the Special Provisions;
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 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 of the Basic
Provisions:
(1) For the year of application, coverage begins:
(i) In California, on February 1, except that 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, except that if your
application is received after November 11 but prior to November 21,
insurance will attach on the 10th day after your
[[Page 199]]
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) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for the prior crop year. Policy
cancellation that results solely from transferring an existing policy to
a different insurance provider for a subsequent crop year will not be
considered a break in continuous coverage.
(3) The calendar date for the end of the insurance period for each
crop year is:
(i) September 15 for all types of summer or fall pears;
(ii) October 15 for all types of winter pears; or
(iii) As otherwise provided for specific types in the Special
Provisions.
(4) If your pear policy is canceled or terminated for any crop year,
in accordance with the terms of the policy, after insurance attached for
that crop year but on or before the cancellation and termination dates
whichever is later, insurance will not be considered to have attached
for that crop year and no premium, administrative fee, or indemnity will
be due for such crop year.
(b) In addition to the provisions of section 11 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;
(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 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;
(5) Failure of the irrigation water supply, if caused by an insured
peril that occurs during the insurance period;
(6) Insects, but not damage due to insufficient or improper
application of pest control measures; or
(7) Plant disease, but not damage due to insufficient or improper
application of disease control measures.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions (Sec. 457.8), we will not insure against damage or
loss of production due to:
(1) Failure of the fruit to color properly; or
(2) 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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples in accordance with our
procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions (Sec. 457.8), the following will apply:
(1) You must notify us within 3 days of the date harvest should have
started if the crop will not be harvested.
(2) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. 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 harvested for
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.
(3) 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
[[Page 200]]
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 type if applicable, by
its respective production guarantee;
(2) Multiplying the results of section 11(b)(1) by your price
election for each type, if applicable;
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, by your price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the 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.
Basic Coverage Example:
You have a 100 percent share of a 20-acre pear orchard located in a
state other than California. You elect 100 percent of the $500/ton price
election. You have a production guarantee of 15 tons/acre; you are only
able to produce 10 tons of pears per acre. Your indemnity will be
calculated as follows:
(1) 20 acres x 15 tons/acre = 300-ton production guarantee;
(2) $500/ton (100 percent of the price election) x 300-ton
production guarantee;
(3) = $150,000 value of production guarantee;
(4) 20 acres x 10 tons = 200-ton production to count;
(5) $500/ton (100 percent of the price election) x 200-ton
production to count = $100,000 value of production to count;
(6) $150,000 value of production guarantee--$100,000 value of
production to count = $50,000 loss; and
(7) $50,000 x 100 percent share = $50,000 indemnity payment.
[End of Example]
(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, 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 165 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 type, subtracting this result
from 1.000, and multiplying this difference (if positive) by the number
of tons of such pears.
(d) Any pear production not graded or appraised prior to the earlier
of the time pears are placed in storage or the date the pears are
delivered to a packer, processor, or other handler will not be
considered damaged pear production and will be considered production to
count.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[[Page 201]]
13. Fresh Pear Quality Adjustment Endorsement
In the event of a conflict between the Pear Crop Insurance
Provisions and this option, this option will control. If you select this
option, you cannot receive less than the indemnity due under section 11.
(a) This endorsement applies to any crop year, provided:
(1) The insured pears are located in a State designated for such
coverage on the actuarial documents and for which there is designated a
premium rate for this endorsement;
(2) All the pear trees in the unit are managed for the production of
fresh market pears (Units that are not managed for the production of
fresh market pears do not qualify for this endorsement);
(3) You have not elected to insure your pears under the CAT
Endorsement;
(4) 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 agree to pay the
additional premium designated in the actuarial documents for this
optional coverage); and
(5) You or we do 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 of this endorsement by you.
(b) If the fresh pear production is damaged by an insured cause of
loss, and if eleven percent (11%) or more of the harvested and appraised
production does not grade at least U.S. Number 1 in accordance with the
United States Standards for Grades of Summer and Fall Pears or the
United States Standards for Grades of Winter Pears, as applicable, the
amount of production to count will be reduced as follows:
(1) 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
(2) By one hundred percent (100%) when more than sixty percent (60%)
of the pears fail the grade standard.
(3) If you sell more of your fresh pear production as U.S. Number 1
or better than the quantity of pears determined to grade U.S. Number 1
or better in the appraisal, the quantity of such sold production
exceeding the amount determined to grade U.S. Number 1 or better in the
appraisal will be included as production to count under this option.
(c) Marketable production that grades less than U.S. Number 1 due to
uninsurable causes not covered by this endorsement will not be reduced.
(d) Any adjustments that reduce your production to count under this
option will not be applicable when determining production to count for
Actual Production History purposes.
Fresh Pear Quality Adjustment Example:
You have a 100 percent share of a 20-acre pear orchard. You have a
production guarantee of 15 tons/acre. You elect 100 percent of the $500/
ton price election. You are only able to produce 10 tons/acre and only
7.5 tons/acre grade U.S. Number 1 or better (7.5 x 20 = 150 tons). Your
indemnity would be calculated as follows:
(1) 20 acres x 15 tons per acre = 300 tons production guarantee;
(2) 300 tons production guarantee x $500/ton = $150,000 value of
production guarantee;
(3) The value of fresh pear production to count is determined as
follows:
(i) 200 tons harvested production minus 150 tons that graded U.S.
Number 1 or better = 50 tons failing to make grade;
(ii) 50 tons failing grade/200 tons of production = 25 percent of
production failing to grade U.S. Number 1;
(iii) 25 percent minus 10 percent = 15 percent in excess of 10
percent allowance failing to make grade;
(iv) 15 percent x 2 = 30 percent total quality adjustment for pears
failing to grade U.S. Number 1;
(v) 200 tons production x 30 percent quality adjustment = 60 tons of
pears failing to make grade;
(vi) 200 tons production minus 60 tons failing to make grade = 140
tons of quality adjusted fresh pear production to count;
(vii) 140 tons of quality adjusted fresh pear production to count x
$500/ton price election = $70,000 value of fresh pear production to
count;
(4) $150,000 value of production guarantee minus $70,000 value of
fresh pear production to count = $80,000 value of loss;
(5) $80,000 value of loss x 100 percent share = $80,000 indemnity
payment.
[61 FR 57580, Nov. 7, 1996; 62 FR 2007, Jan. 15, 1997, as amended at 62
FR 65167, Dec. 10, 1997; 65 FR 47837, Aug. 4, 2000; 75 FR 15880, 15881,
Mar. 30, 2010; 79 FR 43602, July 28, 2014; 87 FR 38891, June 30, 2022;
87 FR 52853, Aug. 30, 2022]
Sec. 457.112 Hybrid sorghum seed crop insurance provisions.
The Hybrid Sorghum Seed Crop Insurance Provisions for the 2017 and
succeeding crop years are as follows:
FCIC policies:
[[Page 202]]
United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured Policies
(Appropriate title for insurance provider)
Both FCIC and Reinsured Policies
Hybrid Sorghum Seed Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows:
(1) The Catastrophic Risk Protection Endorsement, if applicable; (2)
the Special Provisions; (3) these Crop Provisions; and (4) the Basic
Provisions, (Sec. 457.8) with (1) controlling (2), etc.
1. Definitions
Adjusted yield. An amount determined by multiplying the county yield
by the coverage level factor.
Amount of insurance per acre. A dollar amount determined by
multiplying the adjusted yield by the price election you select and
subtracting any minimum guaranteed payment, not to exceed the total
compensation specified in the hybrid sorghum seed processor contract. If
your hybrid sorghum seed processor contract contains a minimum
guaranteed payment that is stated in bushels, we will convert that value
to dollars by multiplying it by the price election you selected.
Approved yield. In lieu of the definition contained in the Basic
Provisions, an amount FCIC determines to be representative of the yield
that the female parent plants are expected to produce when grown under a
specific production practice. FCIC will establish the approved yield
based upon records provided by the seed company and other information it
deems appropriate.
Bushel. Fifty-six pounds avoirdupois of the insured crop.
Certified seed test. A warm germination test performed on clean seed
according to specifications of the ``Rules for Testing Seeds'' of the
Association of Official Seed Analysts.
Commercial hybrid sorghum seed. The offspring produced by crossing a
male and female parent plant, each having a different genetic character.
This offspring is the product intended for use by an agricultural
producer to produce a commercial field sorghum crop for grain or forage.
County yield. An amount contained in the actuarial documents that is
established by FCIC to represent the yield that a producer of hybrid
sorghum seed would be expected to produce if the acreage had been
planted to commercial field sorghum.
Coverage level factor. A factor contained in the Special Provisions
to adjust the county yield for commercial field sorghum to reflect the
higher value of hybrid sorghum seed.
Dollar value per bushel. An amount that determines the value of any
seed production to count. It is determined by dividing the amount of
insurance per acre by the result of multiplying the approved yield by
the coverage level percentage, expressed as a decimal.
Female parent plants. Sorghum plants that are grown for the purpose
of producing commercial hybrid sorghum seed and are male sterile.
Field run. Commercial hybrid sorghum seed production before it has
been processed or screened.
Good farming practices. In addition to the definition contained in
the Basic Provisions, good farming practices include those practices
required by the hybrid sorghum seed processor contract.
Harvest. Combining, threshing or picking of the female parent plants
to obtain commercial hybrid sorghum seed.
Hybrid sorghum seed processor contract. An agreement executed in
writing between the hybrid sorghum seed crop producer and a seed company
containing, at a minimum:
(a) The producer's promise to plant and grow male and female parent
plants, and to deliver all commercial hybrid sorghum seed produced from
such plants to the seed company;
(b) The seed company's promise to purchase the commercial hybrid
sorghum seed produced by the producer; and
(c) Either a fixed price per unit of measure (bushels,
hundredweight, etc.) of the commercial hybrid sorghum seed or a formula
to determine the value of such seed. Any formula for establishing the
value must be based on data provided by a public third party that
establishes or provides pricing information to the general public, based
on prices paid in the open market (e.g., commodity futures exchanges),
to be acceptable for the purpose of this policy.
Inadequate germination. Germination of less than 80 percent of the
commercial hybrid sorghum seed as determined by using a certified seed
test.
Insurable interest. Your share of the financial loss that occurs in
the event seed production is damaged by a cause of loss specified in
section 10.
Local market price. The cash price offered by buyers for any
production from the female parent plants that is not considered
commercial hybrid sorghum seed under the terms of this policy.
Male parent plants. Sorghum plants grown for the purpose of
pollinating female parent plants.
Minimum guaranteed payment. A minimum amount (usually stated in
dollars or bushels) specified in your hybrid sorghum seed processor
contract that will be paid or credited to you by the seed company
regardless of the quantity of seed produced.
[[Page 203]]
Non-seed production. Production that does not qualify as seed
production because of inadequate germination.
Planted acreage. In addition to the definition contained in the
Basic Provisions, the insured crop must be planted in rows wide enough
to permit mechanical cultivation, unless provided by the Special
Provisions or by written agreement.
Planting pattern. The arrangement of the rows of the male and female
parent plants in a field. An example of a planting pattern is four
consecutive rows of female parent plants followed by two consecutive
rows of male parent plants.
Practical to replant. In addition to the definition contained in the
Basic Provisions, practical to replant applies to either the female or
male parent plant. It will not be considered practical to replant unless
production from the replanted acreage can be delivered under the terms
of the hybrid sorghum seed processor contract, or the seed company
agrees that it will accept the production from the replanted acreage.
Prevented planting. In addition to the definition contained in the
Basic Provisions, prevented planting applies to the female and male
parent plants. The male parent plants must be planted in accordance with
the requirements of the hybrid sorghum seed processor contract to be
considered planted.
Sample. For the purpose of the certified seed test, at least 3
pounds of randomly selected field run sorghum seed for each type or
variety of commercial hybrid sorghum seed grown on the unit.
Seed company. A business enterprise that possesses all licenses for
marketing commercial hybrid sorghum seed required by the state in which
it is domiciled or operates, and which possesses facilities with enough
storage and drying capacity to accept and process the insured crop
within a reasonable amount of time after harvest. If the seed company is
the insured, it must also be a corporation.
Seed production. All seed produced by female parent plants with a
germination rate of at least 80 percent as determined by a certified
seed test.
Type. Grain sorghum, forage sorghum, or sorghum sudan parent plants.
Variety. The name, number or code assigned to a specific genetic
cross by the seed company or the Special Provisions for the insured crop
in the county.
2. Unit Division
(a) For any processor contract that stipulates the amount of
production to be delivered:
(1) In lieu of the definition of ``basic unit'' contained in the
Basic Provisions, a basic unit will consist of all acreage planted to
the insured crop in the county that will be used to fulfill a hybrid
sorghum seed processor contract;
(2) There will be no more than one basic unit for all production
contracted with each processor contract;
(3) In accordance with section 12, all production from any basic
unit in excess of the amount under contract will be included as
production to count if such production is applied to any other basic
unit for which the contracted amount has not been fulfilled; and
(4) Optional units will not be established.
(b) For any processor contract that stipulates a number of acres to
be planted, the provisions in the Basic Provisions that allow optional
units by irrigated and non-irrigated practices are not applicable.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all the hybrid
sorghum seed in the county insured under this policy unless the Special
Provisions provide different price elections by type or variety, in
which case you may elect one price election for each hybrid sorghum seed
type or variety designated in the Special Provisions. The price election
you choose for each type or variety must have the same percentage
relationship to the maximum price offered by us for each type or
variety. For example, if you choose 100 percent of the maximum price
election for one specific type or variety, you must also choose 100
percent of the maximum price election for all other types or varieties.
(b) The production reporting requirements contained in section 3 of
the Basic Provisions are not applicable to this contract.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must:
(a) Report by type and variety, the location and insurable acreage
of the insured crop;
(b) Report any acreage that is uninsured, including that portion of
the total acreage occupied by male parent plants; and
(c) Certify that you have a hybrid sorghum seed processor contract
and report the amount, if any, of any minimum guaranteed payment.
[[Page 204]]
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the female parent plants in the county for which a
premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are grown under a hybrid sorghum seed processor contract
executed before the acreage reporting date;
(3) That are planted for harvest as commercial hybrid sorghum seed
in accordance with the requirements of the hybrid sorghum seed processor
contract and the production management practices of the seed company;
and
(4) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Planted with a mixture of female and male parent seed in the
same row;
(ii) Planted for any purpose other than for commercial hybrid
sorghum seed;
(iii) Interplanted with another crop; or
(iv) Planted into an established grass or legume.
(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 that
provides for delivery of the crop under substantially the same terms as
a hybrid sorghum seed processor contract will be treated as a contract
under which you have an insurable interest in the crop.
(c) A commercial hybrid sorghum seed producer who is also a
commercial hybrid sorghum seed company may be able to insure the hybrid
sorghum seed crop if the following requirements are met:
(1) The seed company has an insurable interest in the hybrid sorghum
seed crop;
(2) Prior to the sales closing date, the Board of Directors of the
seed company has executed and adopted a corporate resolution containing
the same terms as an acceptable hybrid sorghum seed processor contract.
This corporate resolution will be considered a contract under the terms
of this policy;
(3) Sales records for at least the previous years' seed production
must be provided to confirm that the seed company has produced and sold
seed. If such records are not available, the crop may be insured under
the Coarse Grains Crop Provisions with a written agreement; and
(4) Our inspection reveals that the storage and drying facilities
satisfy the definition of a seed company.
(d) Any of the insured crop that is under contract with different
seed companies may be insured under separate policies with different
insurance providers provided all acreage of the insured crop in the
county is insured. If you elect to insure the insured crop with
different insurance providers, you agree to pay separate administrative
fees for each insurance policy.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions,
we will not insure any acreage of the insured crop:
(a) Planted and occupied exclusively by male parent plants;
(b) Not in compliance with the rotation requirements contained in
the Special Provisions or, if applicable, required by the hybrid sorghum
seed processor contract; or
(c) If either the female or male parent plants are damaged before
the final planting date and we determine that insured crop is practical
to replant but it is not replanted.
9. Insurance Period
(a) In addition to the provisions of section 11 of the Basic
Provisions, insurance attaches upon completion of planting of:
(1) The female parent plant seed on or before the final planting
date designated in the Special Provisions, except as allowed in section
16 of the Basic Provisions; and
(2) The male parent plant seed.
(b) In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is the
November 30 immediately following planting.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(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; or
(8) Failure of the irrigation water supply, if due to a cause of
loss contained in section 10(a) (1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, we will not insure against any loss of production due
to:
(1) The use of unadapted, incompatible, or genetically deficient
male or female parent plant seed;
(2) Frost or freeze after the date set by the Special Provisions;
(3) Failure to follow the requirements stated in the hybrid sorghum
seed processor contract and production management practices of the seed
company;
(4) Inadequate germination, even if resulting from an insured cause
of loss, unless you
[[Page 205]]
have provided adequate notice as required by section 11(b)(1); or
(5) Failure to plant the male parent plant seed at a time or in a
manner sufficient to assure adequate pollination of the female parent
plants, unless you are prevented from planting the male parent plant
seed by an insured cause of loss.
11. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples of at least one
complete planting pattern of the male and female parent plant rows that
extend the entire length of each field in the unit. If you are going to
destroy any acreage of the insured crop that will not be harvested, the
samples must not be destroyed until after our inspection.
(b) In addition to the requirements of section 14 of the Basic
Provisions:
(1) You must give us notice of probable loss at least 15 days before
the beginning of harvest if you anticipate inadequate germination on any
unit; and
(2) You must provide a completed copy of your hybrid sorghum seed
processor contract unless we have determined it has already been
provided by the seed company, and the seed company certifies that such
contract is used for all its producers without any waivers or
amendments.
12. 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) You will not receive an indemnity payment on a unit if the seed
company refuses to provide us with records we require to determine the
dollar value per bushel of production for each variety.
(c) 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 amount of
insurance per acre, by type and variety if applicable;
(2) Totaling the results of section 12(c)(1) if there are more than
one type or variety;
(3) Multiplying the total seed production to count (see section
12(d)) for each type and variety of commercial hybrid sorghum seed by
the applicable dollar value per bushel for that type or variety;
(4) Multiplying the total non-seed production to count (see section
12(e)) for each type and variety by the applicable local market price
determined on the earlier of the date the non-seed production is sold or
the date of final inspection;
(5) Totaling the results of sections 12(c)(3) and 12(c)(4) by type
and variety;
(6) Subtracting the result of section 12(c)(5) from the result of
section 12(c)(1) if there is only one type or variety, or subtracting
the result of 12(c)(5) from the result of section 12(c)(2) if there are
more than one type or variety; and
(7) Multiplying the result of section 12(c)(6) by your share.
For example:
You have a 100 percent share in 50 acres insured for the development
of type ``A'' hybrid sorghum seed in the unit, with an amount of
insurance per acre guarantee of $361 (county yield of 170 bushels times
a coverage level factor of .867 for the 65 percent coverage level, times
a price election of $2.45 per bushel, minus the minimum guaranteed
payment of zero). Your seed production was 1,400 bushels and the dollar
value per bushel was $3.47. Your non-seed production was 100 bushels
with a local market value of $2.00 per bushel. Your indemnity would be
calculated as follows:
(1) 50 acres x $361 = $18,050 amount of insurance guarantee;
(3) 1,400 bushels x $3.47 = $4,858 value of seed production;
(4) 100 bushels of non-seed x $2.00 = $200 of non-seed production;
(5) $4,858 + $200 = $5,058;
(6) $18,050 - $5,058 = $12,992; and
(7) $12,992 x 100 percent share = $12,992 indemnity payment.
You also have a 100 percent share in 50 acres insured for the
development of type ``B'' hybrid sorghum seed in the unit, with an
amount of insurance per acre guarantee of $340 (county yield of 160
bushels times a coverage level factor of .867 for the 65 percent
coverage level, times a price election of $2.45 per bushel, minus the
minimum guaranteed payment of zero). You harvested 1,200 bushels and the
dollar value per bushel for the harvested amount was $4.63. You also
harvested 200 bushels of non-seed with a market value of $2.00 per
bushel. Your indemnity would be calculated as follows:
(1) 50 acres x $361 = $18,050 amount of insurance guarantee for type
``A'' and 50 acres x $340 = $17,000 amount of insurance guarantee for
type ``B'';
(2) $18,050 + $17,000 = $35,050 amount of insurance guarantee;
(3) 1,400 bushels x $3.47 = $4,858 value of seed production for type
``A'' and 1,200 bushels x $4.63 = $5,556 value of seed production for
type ``B'';
(4) 100 bushels of non-seed x $2.00 = $200 of non-seed production
for type ``A'' and 200 bushels of non-seed x $2.00 = $400 of non-seed
production for type ``B''
[[Page 206]]
(5) $4,858 + $200 + $5,556 + $400 = $11,014 value of production to
count;
(6) $35,050 - $11,014 = $24,036; and
(7) $24,036 x 100 percent share = $24,036 indemnity payment.
(d) Production to be counted as seed production will include:
(1) All appraised production as follows:
(i) Not less than the amount of insurance per acre 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;
(ii) Production lost due to uninsured causes;
(iii) Mature unharvested production with a germination rate of at
least 80 percent of the commercial hybrid sorghum seed as determined by
a certified seed test. Any such production may be adjusted in accordance
with section 12(f);
(iv) Immature appraised production;
(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 when 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 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) Harvested production that you deliver as commercial hybrid
sorghum seed to the seed company stated in your hybrid sorghum seed
processor contract, regardless of quality, unless the production has
inadequate germination.
(e) Production to be counted as non-seed production will include all
harvested or mature appraised production that does not qualify as seed
production to count as specified in section 12(d). Any such production
may be adjusted in accordance with section 12(f).
(f) For the purpose of determining the quantity of mature
production:
(1) Commercial hybrid sorghum seed production will be:
(i) Increased 0.12 percent for each 0.1 percentage point of moisture
below 13.0 percent; or
(ii) Decreased 0.12 percent for each 0.1 percentage point of
moisture in excess of 13.0 percent.
(2) When records of commercial hybrid sorghum seed production
provided by the seed company have been adjusted to a basis of 13.0
percent moisture and 56 pound avoirdupois bushels, section 12(f)(1)
above will not apply to harvested production. In such cases, records of
the seed company will be used to determine the amount of production to
count, provided that the moisture and weight of such production are
calculated on the same basis as that used to determine the approved
yield.
13. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your amount of insurance for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 65318, Dec. 12, 1997, as amended at 81 FR 84399, Nov. 23, 2016]
Sec. 457.113 Coarse grains crop insurance provisions.
The Coarse Grains Crop Insurance Provisions for the 2022 and
succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Coarse Grains Crop Provisions
1. Definitions
Coarse grains. Corn, grain sorghum, and soybeans.
Following another crop (FAC). A cropping practice, as specified in
the Special Provisions, in which a crop is planted following another
crop.
Grain sorghum. The crop defined as sorghum under the United States
Grain Standards Act.
Harvest. Combining, threshing, or picking the insured crop for
grain, or cutting for hay, silage, earlage, snaplage, or fodder.
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,
[[Page 207]]
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.
Not following another crop (NFAC). A cropping practice, as specified
in the Special Provisions, in which a crop is planted not following
another crop.
Planted acreage. In addition to the definition contained in the
Basic Provisions, coarse grains must initially be planted in rows,
unless otherwise provided by the Special Provisions, actuarial
documents, or by written agreement.
Production guarantee (per acre). In lieu of the definition contained
in the Basic Provisions, 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.
Silage. A product that results from severing the plant from the land
and chopping it for the purpose of livestock feed.
Ton. Two thousand (2000) pounds avoirdupois.
2. Unit Division.
(a) In addition to the requirements of section 34(a) of the Basic
Provisions, you may elect separate enterprise units for FAC or NFAC
cropping practices if these cropping practices are allowed by the
actuarial documents. If you elect enterprise units for these cropping
practices, you may not elect enterprise or optional units by irrigation
practices.
(1) You may elect one enterprise unit for all FAC cropping practices
or one enterprise unit for all NFAC cropping practices, or separate
enterprise units for both practices, unless otherwise specified in the
Special Provisions. For example: You may choose an enterprise unit for
all FAC acreage (soybeans irrigated practice and non-irrigated practice)
and an enterprise unit for all NFAC acreage (soybeans irrigated practice
and non-irrigated practice).
(2) You are only eligible if both FAC and NFAC cropping practices
are allowed by the actuarial documents for each irrigation practice you
use. If FAC and NFAC cropping practices are only allowed for the non-
irrigated practice, separate enterprise units for FAC and NFAC cropping
practices are not available if you use the irrigated practice; but if
you use only non-irrigated FAC and NFAC cropping practices, separate
enterprise units for non-irrigated FAC and NFAC cropping practices are
available.
(3) You must separately meet the requirements in section 34(a)(4)
for each enterprise unit.
(4) If you elected separate enterprise units for both cropping
practices and we discover you do not qualify for an enterprise unit for
one or the other cropping practice and such discovery is made:
(i) On or before the acreage reporting date, you may elect to
insure:
(A) One enterprise unit for all FAC or NFAC cropping practices
provided you meet the requirements in section 34(a)(4), and basic or
optional units for the other cropping practice, whichever you report on
your acreage report and qualify for;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and qualify for; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure.
(5) If you elected an enterprise unit on one cropping practice for
FAC or NFAC and a different unit structure on the other cropping
practice and we discover you do not qualify for an enterprise unit for
the FAC or NFAC cropping practice and such discovery is made:
(i) On or before the acreage reporting date, your unit division will
be based on basic or optional units, whichever you report on your
acreage report and qualify for; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure.
(b) Instead of establishing optional units as provided in section
34(c) of the Basic Provisions, if allowed by the actuarial documents,
you may have separate optional units for the FAC cropping practice and
the NFAC cropping practice. These optional units will be by section,
section equivalent, or FSA FN and by the FAC cropping practice and the
NFAC cropping practice. These optional units cannot be further divided
by irrigated and non-irrigated acreage or by acreage insured under an
organic farming practice.
(c) If FAC or NFAC cropping practices are only available by written
agreement, separate enterprise units or optional units for FAC or NFAC
cropping practices are not available.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you must elect to insure your corn, grain sorghum, or
soybeans with either revenue protection or yield protection by the sales
closing date.
[[Page 208]]
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, 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 31.
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, January 31.
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 of the Basic Provisions, the crop
insured will be each coarse grain crop you elect to insure for which
premium rates are provided by the actuarial documents:
(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 section
6(b)(1); or
(ii) Planted into an established grass or legume.
(b) For corn only, in addition to the provisions of section 6(a),
the corn crop insured will be all corn that is:
(1) Planted for harvest either as grain or as silage (see section
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 20
percent of the plants;
(2) Yellow dent or white corn, including mixed yellow and white,
waxy or high-lysine corn, high-oil corn blends containing mixtures of at
least 90 percent high yielding yellow dent female plants with high-oil
male pollinator plants, or commercial varieties of high-protein hybrids,
and excluding:
(i) High-amylose, high-oil, or high-protein (except as authorized in
section 6(b)(2)), flint, flour, Indian, blue corn, a variety genetically
adapted to provide forage for wildlife, or any other open pollinated
corn, unless the Special Provisions or 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 documents for the county provide
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 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 section
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 section
6(a), the soybean crop insured will be all of the soybeans in the county
that are planted for harvest as soybeans.
[[Page 209]]
7. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions,
any acreage of the insured crop damaged before the final planting date,
to the extent that a majority of producers in the area would not
normally further care for the crop, must be replanted unless we agree
that it is not practical to replant.
8. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, unless otherwise specified in the actuarial documents, 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:
(1) Connecticut, Delaware, Idaho, Maine, October 20.
Maryland, Massachusetts, New Hampshire, New
Jersey, New York, North Carolina, Oregon,
Pennsylvania, Rhode Island, Vermont,
Virginia, Washington, and West Virginia.
(2) All other 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 of the Basic
Provisions, 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;
(h) Failure of the irrigation water supply due to a cause of loss
specified in sections 9(a) through (g) that also occurs during the
insurance period; or
(i) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
10. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these Crop Provisions;
(2) Except as specified in section 10(a)(1), you must comply with
all requirements regarding replanting payments contained in section 13
of the Basic Provisions; and
(3) The insured crop 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.
(b) Unless otherwise specified in the Special Provisions, the amount
of the replanting payment per acre will be the lesser of 20 percent of
the production guarantee or the number of bushels (tons for corn insured
as silage) for the applicable crop specified below, multiplied by your
projected price, multiplied by your share:
(1) 8 bushels for corn grain;
(2) 1 ton for corn silage;
(3) 7 bushels for grain sorghum; and
(4) 3 bushels for soybeans.
(c) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
(d) If the acreage is replanted to an insured crop type that is
different than the insured crop type originally planted on the acreage:
(1) The production guarantee, premium, and projected price and
harvest price, as applicable, will be adjusted based on the replanted
type;
(2) Replanting payments will be calculated using your projected
price and production guarantee for the crop type that is replanted and
insured; and
[[Page 210]]
(3) A revised acreage report will be required to reflect the
replanted type, as applicable.
11. Duties in the Event of Damage or Loss
(a) Representative samples are required in accordance with section
14 of the Basic Provisions.
(b) For any corn unit that has separate dates for the end of the
insurance period (grain and silage), in lieu of the requirement
contained in section 14 of the Basic Provisions to provide notice within
72 hours of your initial discovery of damage (but not later than 15 days
after the end of the insurance period), you must provide notice within
72 hours of your initial discovery of damage (but not later than 15 days
after the latest end of the insurance period applicable to the unit).
(c) If you will harvest any acreage in a manner other than as you
reported on your acreage report (e.g., you reported planting it to
harvest as grain but will harvest the acreage for hay, silage, earlage,
snaplage, or fodder, or you reported planting it to harvest as silage
but will harvest the acreage for grain, hay, earlage, snaplage, or
fodder), you must notify us before harvest begins so the acreage can be
appraised as the type reported on your acreage report to determine
production to count that is used for claim purposes. Failure to timely
provide notice will result in production to count determined in
accordance with section 12(c)(1)(i)(E).
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 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 number of insured acres of each insured crop or
type, as applicable, by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection; or
(ii) Revenue protection guarantee (per acre) if you elected revenue
protection;
(2) Totaling the results of section 12(b)(1)(i) or 12(b)(1)(ii),
whichever is applicable;
(3) Multiplying the production to count of each insured crop or
type, as applicable, by your respective:
(i) Projected price if you elected yield protection; or
(ii) Harvest price if you elected revenue protection;
(4) Totaling the results of section 12(b)(3)(i) or 12(b)(3)(ii),
whichever is applicable;
(5) Subtracting the result of section 12(b)(4) from the result of
section 12(b)(2); and
(6) Multiplying the result of section 12(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of corn in the unit with a
production guarantee (per acre) of 115 bushels, your projected price is
$4.58, your harvest price is $4.53, and your production to count is
5,000 bushels.
If you elected yield protection:
(1) 50 acres x (115 bushel production guarantee x $4.58 projected
price) = $26,335.00 value of the production guarantee
(3) 5,000 bushel production to count x $4.58 projected price =
$22,900.00 value of the production to count
(5) $26,335.00-$22,900.00 = $3,435.00
(6) $3,435.00 x 1.000 share = $3,435.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (115 bushel production guarantee x $4.58 projected
price) = $26,335.00 revenue protection guarantee
(3) 5,000 bushel production to count x $4.53 harvest price =
$22,650.00 value of the production to count
(5) $26,335.00-$22,650.00 = $3,685.00
(6) $3,685.00 x 1.000 share = $3,685.00 indemnity.
(c) The total production to count (in bushels for corn insured as
grain or in tons for corn insured as silage) from all insurable acreage
on the unit will include:
(1) All appraised production as follows:
(i) For yield protection, not less than the production guarantee, or
for revenue protection, not less than the amount of production that when
multiplied by the harvest price equals the revenue protection guarantee
(per acre) 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) For which you fail to give us notice before harvest begins if
you report planting the corn to harvest as grain but harvest it as
silage or you report planting the corn to harvest as silage but harvest
it as grain.
(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
section 12(d)); and
(iv) Potential production on insured acreage you will 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 when you put the acreage to another use or
[[Page 211]]
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 coarse grain production (excluding corn insured 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 as silage will be adjusted for
excess moisture and quality only as specified in section 12(e).
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of:
(i) 15 percent for corn (If moisture exceeds 30 percent, production
will be reduced 0.2 percent for each 0.1 percentage point above 30
percent);
(ii) 14 percent for grain sorghum; and
(iii) 13 percent 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;
(iii) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjuster), the samples are analyzed
by:
(A) A grain grader licensed under the United States Grain Standards
Act or the United States Warehouse Act;
(B) A grain grader licensed under State law and employed by a
warehouse operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grain grader not licensed under State law, but who is employed
by a warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(iv) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Coarse grain production that is eligible for quality adjustment,
as specified in sections 12(d)(2) and (3), will be reduced by the
quality adjustment factor calculated in accordance with the Special
Provisions.
(e) For corn insured 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 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 the calendar
date for the end of the insurance period as specified in section 8(b),
we will increase the silage production to count to a 65 percent moisture
equivalent to reflect the normal moisture content of silage harvested
during the normal silage harvesting period.
[[Page 212]]
(f) Any production harvested from plants growing in the insured crop
may be counted as production of the insured crop on a weight basis.
13. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional coverage and pay an additional premium,
you may increase your prevented planting coverage if such additional
coverage is specified in the actuarial documents.
[59 FR 49161, Sept. 27, 1994; 59 FR 60063, Nov. 22, 1994, as amended at
60 FR 62728, 62729, Dec. 7, 1995; 62 FR 63633, Dec. 2, 1997; 62 FR
65168, Dec. 10, 1997; 67 FR 55690, Aug. 30, 2002; 75 FR 15881, 15882,
15883, Mar. 30, 2010; 81 FR 84399, Nov. 23, 2016; 84 FR 65261, Nov. 27,
2019; 85 FR 38760, June 29, 2020; 86 FR 67838, Nov. 30, 2021]
Sec. Sec. 457.114-457.115 [Reserved]
Sec. 457.116 Sugarcane crop insurance provisions.
The Sugarcane Crop Insurance Provisions for the 2011 and succeeding
crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Sugarcane Crop Provisions
1. Definitions
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.
Harvest. Cutting and removing the mature sugarcane from the field.
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 price per pound for raw sugar offered by
buyers in the area in which you normally market the sugarcane.
Plant cane. The insured crop which grows from seed planted for the
crop year.
Stubble cane. The insured crop which grows from the stubble of
sugarcane that was harvested the previous crop year.
Sugarcane. The grass, Saccharum officinarum, that is grown to
produce sugar.
2. 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(f) 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.
3. Contract Changes
In accordance with section 4 of the Basic Provisions (Sec. 457.8),
the contract change date is June 30 preceding the cancellation date.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are September 30.
5. Insured Crop
(a) In accordance with section 8 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 documents:
(1) In which you have a share;
(2) That is grown for processing for sugar or for seed; and
(3) That is not interplanted with another crop, unless allowed by a
written agreement.
(b) In addition to the crop listed as not insured in section 8(b) of
the Basic Provisions (Sec. 457.8), we will not insure any sugarcane:
(1) That was damaged the previous crop year to the extent the
sugarcane is unable to produce the yield used to establish the
production guarantee for the unit for the current crop year; or
(2) That exceeds the age limitations (by variety, if applicable)
contained in the Special Provisions , unless we agree in writing to
insure such acreage. An agreement in writing will not be provided
unless, after an appraisal, we determine that the crop is able to
produce at least the yield used to establish the production guarantee
for the unit for the current crop year.
6. Insurable Acreage
Section 9(a)(2)(iv) of the Basic Provisions (Sec. 457.8), is not
applicable to the Sugarcane Crop Insurance Provisions.
7. Insurance Period
(a) In addition to the provisions of section 11 of the Basic
Provisions (Sec. 457.8), insurance attaches:
[[Page 213]]
(1) On the later of the day we accept your application or at the
time of planting for plant cane;
(2) On the first day following harvest of the previous crop for
stubble cane except as contained in sections 7(a)(3) and (4);
(3) On the later of April 15 or 30 days following harvest of the
previous crop for stubble cane damaged during the previous crop year in
all states (except Louisiana); and
(4) On the later of April 30 or 30 days following harvest of the
previous crop for stubble cane damaged during the previous crop year in
Louisiana.
(b) In accordance with the provisions of section 11 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.
8. 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.
9. Duties in the Event of Damage or Loss or Cutting the Sugarcane for
Seed
(a) In addition to your duties under section 14 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. Failure to give
us timely notice will cause the acreage cut for seed to be considered as
put to another use without consent. The production to count for such
acreage will not be less than the production guarantee.
(3) You must request an appraisal if any time during the crop year
sugarcane acreage cut for seed will not produce at least the production
guarantee so we can determine the production to count. If you do not
request an appraisal, the production to count for such acreage will be
the production guarantee.
(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.
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:
(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.
Example 1: Assume you have a 100 percent share in a unit of 100
acres of sugarcane, an approved yield of 6,000 pounds of raw sugar per
acre, a coverage election of 65 percent, and a price election of $0.12 a
pound. The production guarantee would be 3,900 pounds of raw sugar per
acre (6,000 x 65%). Further assume that you are only able to harvest
200,000 pounds of raw sugar because the unit was damaged by an insurable
cause of loss. Your indemnity would be calculated as follows:
(1) 100 acres x 3,900 pound production guarantee = 390,000 pound
production guarantee;
(2) 390,000 pound production guarantee-200,000 pounds harvested
production = 190,000 pound production loss;
(3) 190,000 pound production loss x $0.12 price election = $22,800
loss; and
(4) $22,800 loss x 100 percent share = $22,800 indemnity payment.
Example 2: Assume the same set of facts. Also, assume that you cut
20 acres of this unit for seed without giving notice that you were
cutting this acreage for seed and that you are only able to harvest
200,000 pounds from the remaining 80 acres. Your indemnity would be
calculated as follows:
[[Page 214]]
(1) 100 acres x 3,900 pound production guarantee = 390,000 pound
production guarantee;
(2) 390,000 pound production guarantee-278,000 (200,000 pounds
harvested production + 78,000 pounds production for putting acreage to
another use without consent, (20 acres x 3,900 pound production
guarantee per acre)) = 112,000 pound production loss;
(3) 112,000 pound production loss x $0.12 price election = $13,440
loss; and
(4) $13,440 loss x 100 percent share = $13,440 indemnity payment.
(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) Potential production on insured acreage harvested for seed (see
section 9(a)(3));
(v) 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.
11. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[60 FR 25602, May 12, 1995, as amended at 62 FR 65169, Dec. 10, 1997; 67
FR 46095, July 12, 2002; 67 FR 52841, Aug. 14, 2002; 75 FR 15883, Mar.
30, 20100]
Sec. 457.117 Forage production crop insurance provisions.
The Forage Production Crop Insurance Provisions for the 2023 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
Forage Production Crop Insurance Provisions
1. Definitions
Adequate stand. The number shown in the Special Provisions,
representing:
(a) For forage containing 60 percent or more alfalfa, the minimum
required number of live alfalfa stems per square foot that are two
inches or greater in height; or
(b) For forage containing less than 60 percent alfalfa, the normal
planting density.
Air-dry forage. Forage that has dried in windrows by natural means
to less than 13 percent moisture before being put into stacks or bales.
Crop year. The period from the date insurance attaches until harvest
is normally completed, which is designated by the calendar year in which
the majority of the forage is normally harvested.
Cutting. The severance of the forage plant from its roots.
Fall planted. A forage crop seeded after June 30, except when
specified in the Special Provisions.
[[Page 215]]
Forage. Planted perennial alfalfa, perennial red clover, perennial
grasses, or a mixture thereof, or other species as shown in the
Actuarial Documents.
Harvest. Removal of forage from the windrow or field. Grazing will
not be considered harvested.
Normal planting density. The minimum number of live plants per
square foot as shown in the Special Provisions.
Spring planted. A forage crop seeded before July 1, except when
specified in the Special Provisions.
Ton. Two thousand (2,000) pounds avoirdupois.
Windrow. Forage that is cut and placed in a row.
Year of establishment. The period between seeding and when the
forage crop has developed an adequate stand. The year of establishment
is determined by the date of seeding. The year of establishment for
spring planted forage is designated by the calendar year in which
seeding occurred. The year of establishment for fall planted forage is
designated by the calendar year after the year in which the crop was
planted. Insurance under this policy does not attach until after the
year of establishment. Insurance during the year of establishment may be
available under the forage seeding policy.
2. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may only select one price election for all the forage in the
county insured under this policy unless the actuarial documents provide
different price elections by type, in which case you may select one
price election for each forage type designated in the actuarial
documents. The price elections you choose for each type must have the
same percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for a specific type, you must also choose 100 percent of the
maximum price election for all other types.
(b) You must report the total production harvested from insurable
acreage for all cuttings for each unit by the production reporting date.
(c) Separate guarantees will be determined by forage type, as
applicable.
3. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is June 30 preceding the cancellation date.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation/ termination
State date
------------------------------------------------------------------------
Arizona and California.................... October 31.
All other states.......................... September 30.
------------------------------------------------------------------------
5. Report of Acreage
In lieu of the provisions of section 6(a) of the Basic Provisions, a
report of all insured acreage of forage production must be submitted on
or before each forage production acreage reporting date specified in the
Special Provisions.
6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the forage in the county for which a premium rate is
provided by the actuarial documents:
(1) In which you have a share;
(2) That is not grown with the intent to be grazed, or grazed at any
time during the insurance period; and
(3) That follows a year of establishment that results in an adequate
stand as shown in the Special Provisions.
(b) In addition to the crops listed as not insured in section 8 of
the Basic Provisions, we will not insure any forage that:
(1) Does not have an adequate stand at the beginning of the
insurance period;
(2) Is grown with a non-forage crop; or
(3) Exceeds the age limitations for forage stands contained in the
Special Provisions.
7. Insurance Period
In lieu of the provisions of section 11 of the Basic Provisions:
(a) Insurance attaches on acreage with an adequate stand on the
applicable date shown in the actuarial documents; and
(b) Forage production insurance ends at the earliest of:
(1) Total destruction of the forage crop;
(2) Removal from the windrow or the field for each cutting;
(3) Final adjustment of a loss;
(4) The date grazing commences on the forage crop;
(5) Abandonment of the forage crop; or
(6) The end of the insurance period date shown in the actuarial
documents.
8. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
[[Page 216]]
(4) Plant disease, but not damage due to insufficient or improper
application of disease control measures;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) 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 specifically excluded in
section 12 of the Basic Provisions, we will not insure against damage of
loss of production that occurs after harvest.
9. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(a) You must notify us within 3 days of the date cutting should have
started if the insured crop will not be harvested;
(b) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. Failure to give timely notice that production will be
harvested for 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 so
that we may inspect the damaged production. You must not destroy 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 will be included as
production to count; and
(d) You must notify us at least 5 days before grazing of insured
forage begins so we can conduct an appraisal to determine production to
count. Failure to give timely notice that the acreage will be grazed
will result in an appraised amount of production to count of not less
than the production guarantee per acre.
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) Multiplying the insured acreage for each type, by its respective
production guarantee;
(2) Multiplying each result in section 10(b)(1) by the respective
price election you selected;
(3) Totaling the results of each crop type in section 10(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, (see section 10(c)) by the respective price election you
selected;
(5) Totaling the results of each crop type in section 10(b)(4);
(6) Subtracting the result in section 10(b)(5) from the result in
section 10(b)(3); and
(7) Multiplying the result in section 10(b)(6) by your share.
Example 1
Assume you have a 100 percent share in 100 acres of type A forage in
the unit, with a guarantee of 3.0 tons per acre and a price election of
$100 per ton. Due to adverse weather you were only able to harvest 50.0
tons. Your indemnity would be calculated as follows:
1. 100 acres type A x 3 tons = 300-ton guarantee;
2 & 3. 300 tons x $100 price election = $30,000 total value
guarantee;
4 & 5. 50 tons production to count x $100 price election = $5,000
total value of production to count;
6. $30,000 value guarantee - $5,000 = $25,000 loss; and
7. $25,000 x 100 percent share = $25,000 indemnity payment.
Example 2
Assume you also have a 100 percent share in 100 acres of type B
forage in the same unit, with a guarantee of 1.0 ton per acre and a
price election of $90 per ton. Due to adverse weather you were only able
to harvest 5.0 tons. Your total indemnity for forage production for both
types A and B in the same unit would be calculated as follows:
1. 100 acres x 3 tons = 300-ton guarantee for type A and 100 acres x
1 ton = 100-ton guarantee for type B;
2. 300-ton guarantee x $100 price election = $30,000 total value of
the guarantee for type A and 100-ton guarantee x $90 price election =
$9,000 total value of the guarantee for type B;
3. $30,000 + $9,000 = $39,000 total value of the guarantee;
4. 50 tons x $100 price election = $5,000 total value of production
to count for type A; and 5 tons x $90 price election = $450 total value
of production to count for type B;
[[Page 217]]
5. $5,000 + $450 = $5,450 total value of production to count for
types A and B;
6. $39,000 - $5,450 = $33,550 loss; and
7. $33,550 loss x 100 percent share = $33,550 indemnity payment.
(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) Put to another use without our consent;
(C) 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;
(iv) 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 when you put the acreage to another use or abandon the
crop. If agreement on the appraised amount of production is not reached
and:
(A) 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 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) 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) When forage is harvested as other than air-dry forage, the
production to count will be adjusted to the equivalent of air-dry
forage.
(e) Any harvested production from plants growing in the forage will
be counted as forage on a weight basis.
(f) In addition to the provisions of section 15 of the Basic
Provisions, we may determine the amount of production of any unharvested
forage on the basis of our field appraisals conducted after the normal
time for each cutting for the area.
11. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 14285, Mar. 26, 1997, as amended at 62 FR 65169, Dec. 10, 1997;
65 FR 3783, Jan. 25, 2000; 65 FR 11457, Mar. 3, 2000; 85 FR 23899, Apr.
30, 2020; 87 FR 38891, June 30, 2022]
Sec. 457.118 [Reserved]
Sec. 457.119 Texas citrus fruit crop insurance provisions.
The Texas citrus fruit crop insurance provisions for the 2024 and
succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Texas Citrus Fruit Crop Provisions
1. Definitions
Citrus fruit commodity. Includes the following:
(a) Oranges;
(b) Grapefruit; and
(c) Any other citrus fruit designated as a ``citrus fruit
commodity'' in the actuarial documents.
Citrus fruit group. A designation in the Special Provisions used to
identify combinations of citrus fruit commodity types and intended uses
within a citrus fruit commodity that may be grouped together for the
purposes of electing coverage levels and identifying the insured crop.
Commodity type. A specific subcategory of a citrus fruit commodity
having a characteristic or set of characteristics distinguishable from
other subcategories of the same citrus fruit commodity.
Crop year. The period beginning with the date insurance attaches to
the insured 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.
Excess rain. An amount of precipitation that damages the insured
crop.
Excess wind. A natural movement of air that has sustained speeds
exceeding 58 miles per hour (50 knots) recorded at the weather reporting
station (U.S. National Weather Service reporting station or any other
weather reporting station identified in the Special Provisions)
operating nearest to the insured acreage 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.
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.
[[Page 218]]
Hedged. A process of trimming the sides of the citrus trees for
better or more fruitful growth of the citrus fruit.
Intended use. The insured's expected end use or disposition of the
commodity at the time the commodity is reported. Insurable intended uses
will be specified in the Special Provisions.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more agricultural
commodities are planted in any form of alternating or mixed pattern and
at least one of these agricultural commodities constitutes an insured
crop under these Crop Provisions.
Production guarantee (per acre). In lieu of the definition contained
in section 1 of the Basic Provisions, the production guarantee will be
determined by stage as follows:
(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(e) of these Crop Provisions 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.
2. Unit Division
(a) Basic units will be established for each insured crop (citrus
fruit group) in accordance with section 1 of the Basic Provisions.
(b) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
(c) Optional units may be established by either of the following,
but not both:
(1) In accordance with section 34(c) of the Basic Provisions, except
as provided in section 2(b) of these Crop Provisions; or
(2) If each optional unit is located on non-contiguous land.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election and coverage level for
each insured crop (citrus fruit group designated in the Special
Provisions) that you elect to insure.
(1) The price election you choose for each insured crop (citrus
fruit group) need not bear the same percentage relationship to the
maximum price offered by us for each insured crop (citrus fruit group).
For example, if you choose one hundred percent (100%) of the maximum
price election for one insured crop (citrus fruit group) (e.g., the
citrus fruit group for early and midseason oranges), you may choose
seventy-five percent (75%) of the maximum price election for another
insured crop (citrus fruit group) (e.g., the citrus fruit group for late
oranges).
(2) If separate price elections are available by commodity type or
intended use within an insured crop (citrus fruit group), the price
elections you choose within the insured crop (citrus fruit group) must
have the same percentage relationship to the maximum price offered by us
for each other commodity type or intended use within the insured crop
(citrus fruit group). For example, if separate price elections are
available for commodity type ruby red grapefruit with an intended use of
fresh, and commodity type ruby red grapefruit with an intended use of
juice, and you choose one hundred percent (100%) of the price election
for commodity type ruby red grapefruit with an intended use of fresh,
you must also choose one hundred percent (100%) of the price election
for commodity type ruby red grapefruit with an intended use of juice.
(b) The production guarantee per acre is progressive by stage and
increases from the first stage production guarantee to the second stage
production guarantee. The stages are as follows:
(1) The first stage extends from the date insurance attaches through
April 30 of the calendar year of normal bloom.
(2) The second stage extends from May 1 of the calendar year of
normal bloom until the end of the insurance period.
(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 commodity type and intended use:
(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 agricultural commodity and any time the planting pattern of such
acreage is changed:
(i) The age of the interplanted agricultural commodity and commodity
type, if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to establish
your approved yield.
[[Page 219]]
(e) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
circumstance that may reduce your yields from previous levels. Examples
of these circumstances that may reduce yield may include, but are not
limited to: Interplanted agricultural commodities; removal, topping,
hedging, or pruning of trees; damage; and change in practices. If the
circumstance occurred:
(1) Before the beginning of the insurance period and you notify us
by the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year
regardless of whether the circumstance was due to an insured or
uninsured cause of loss;
(2) After the beginning of the insurance period and you notify us by
the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year only if
the potential reduction in the yield used to establish your production
guarantee is due to an uninsured cause of loss; or
(3) Before or after the beginning of the insurance period and you
fail to notify us by the production reporting date, an amount equal to
the reduction in the yield will be added to the production to count
calculated in section 12(c) of these Crop Provisions due to uninsured
causes. We will reduce the yield used to establish your production
guarantee for the subsequent crop year to reflect any reduction in the
productive capacity of the trees or in the yield potential of the
insured acreage.
(f) 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.
(g) In lieu of the provisions in section 3 of the Basic Provisions
that require reporting your production for the previous crop year, for
each crop year you must report your production from two crop years ago
(e.g., on the 2018 crop year production report, you will provide your
2016 crop year production).
4. Contract Changes
In accordance with section 4 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 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 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
(a) In accordance with section 8 of the Basic Provisions, the
insured crop will be each citrus fruit group you elect to insure and for
which a premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That is grown on trees adapted to the area;
(3) That is irrigated;
(4) That has produced an average yield of at least three tons per
acre the crop year from two years prior reported in accordance with
section 3(g), or we have appraised the yield potential of at least three
tons per acre;
(5) That is grown in a grove that, if inspected, is considered
acceptable by us; and
(6) That is not sold by direct marketing, unless allowed by the
Special Provisions or by written agreement.
(b) For each insured crop (citrus fruit group), administrative fees
will be assessed in accordance with section 6 of the Catastrophic Risk
Protection Endorsement and section 7 of the Basic Provisions.
8. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to an insured crop interplanted with
another agricultural commodity, interplanted acreage is uninsurable,
except a citrus fruit group interplanted with another perennial
agricultural commodity 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 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 that
begins when the application is received by us and determine that it does
not meet insurability requirements. You must provide any information
that we require for the insured crop (citrus fruit group) 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.
[[Page 220]]
(b) In addition to the provisions of section 11 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.
10. Causes of Loss
(a) In accordance with the provisions of section 12 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;
(8) Failure of the irrigation water supply if caused by an insured
peril or drought that occurs during the insurance period; or
(9) Insects and plant disease, unless excluded or otherwise
restricted through the Special Provisions, provided the loss of
production is not due to damage resulting from insufficient or improper
application of control measures as recommended by agricultural experts.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to the inability to market the citrus for any reason
other than actual physical damage from an insurable cause of loss
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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples. In lieu of the
requirements of section 14(c)(3) of the Basic Provisions, we will
determine which trees must remain unharvested so that we may inspect
them in accordance with FCIC procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions (Sec. 457.8), the following will apply:
(1) 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 harvested for 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 harvested for
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.
(2) If you intend to claim an indemnity on any unit, you must notify
us at least 15 days prior to the beginning of harvest, or within 24
hours if damage is discovered during harvest, so we may have an
opportunity to inspect the unit. 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 combination of
commodity type and intended use by its respective production guarantee;
(2) Multiplying the results of section 12(b)(1) by the respective
price election for each combination of commodity type and intended use;
[[Page 221]]
(3) Totaling the results of section 12(b)(2);
(4) Multiplying the total production to count of each combination of
commodity type and intended use (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 insured 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 insured crop, in
which case we will use the harvested production. If you do not continue
to care for the insured 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 insured with an intended use of juice 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) Any citrus fruit insured with an intended use of fresh that is
not marketable as fresh fruit due to insurable causes will be adjusted
by multiplying the number of tons of such citrus fruit by the applicable
Fresh Fruit Factor contained in the actuarial documents.
(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. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[61 FR 41300, Aug. 8, 1996; 61 FR 57583, Nov. 7, 1996, as amended at 62
FR 65169, Dec. 10, 1997; 81 FR 38065, June 13, 2016; 81 FR 52590, June
10, 2016; 87 FR 38892, June 30, 2022]
Sec. 457.120 [Reserved]
Sec. 457.121 Arizona-California citrus crop insurance provisions.
The Arizona-California citrus crop insurance provisions for the 2024
and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Arizona-California Citrus Crop Provisions
1. Definitions
Carton. The standard container for marketing the fresh packed citrus
fruit commodity, as shown below, unless otherwise provided in the
Special Provisions. 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, unless otherwise provided in the Special Provisions.
------------------------------------------------------------------------
Citrus fruit
Container size commodity Pounds
------------------------------------------------------------------------
Container 58.................... Oranges............ 38
Container 58.................... Lemons............. 40
Container 59.................... Grapefruit......... 32
Container 63.................... Mandarins/ 25
Tangerines.
[[Page 222]]
Container 63.................... Tangelos........... 25
------------------------------------------------------------------------
Citrus fruit commodity. Citrus fruit as follows:
(1) Oranges;
(2) Lemons;
(3) Grapefruit;
(4) Mandarins/Tangerines;
(5) Tangelos; and
(6) Any other citrus fruit commodity designated in the actuarial
documents.
Citrus fruit group. A designation in the Special Provisions used to
identify commodity types within a citrus fruit commodity that may be
grouped together for the purposes of electing coverage levels and
identifying the insured crop.
Commodity type. A specific subgroup of a citrus fruit commodity
having a characteristic or set of characteristics distinguishable from
other subgroups of the same citrus fruit commodity.
Crop year. The period beginning with the date insurance attaches to
the insured crop and extending through normal harvest time. It is
designated by the calendar year following the year in which the bloom is
normally set.
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.
Graft. To unite a bud or scion with a rootstock or interstock in
accordance with recommended practices to form a living union.
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. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more agricultural
commodities are planted in any form of alternating or mixed pattern.
Interstock. The area of the tree that is grafted to the rootstock.
Rootstock. The root and stem portion of a tree to which a scion can
be grafted.
Scaffold limb. A major limb attached directly to the trunk.
Scion. A detached living portion of a plant joined to a rootstock or
interstock in grafting.
Set out. Transplanting a tree into the grove.
Topwork. Grafting a scion onto a pruned scaffold limb.
2. Unit Division
(a) Basic units will be established in accordance with section 1 of
the Basic Provisions.
(b) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm number and by irrigated and
non-irrigated practices are not applicable. Unless otherwise allowed by
written agreement, optional units may only be established if each
optional unit meets one or more of the following:
(1) The optional unit is located on non-contiguous land; and
(2) In addition to or instead of establishing optional units by non-
contiguous land, optional units may be established by commodity type if
allowed by the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election and coverage level
for each citrus fruit group you elect to insure. The price election you
choose for each citrus fruit group need not bear the same percentage
relationship to the maximum price offered by us for each citrus fruit
group. For example, if you choose one hundred percent (100%) of the
maximum price election for the citrus fruit group for Valencia oranges,
you may choose seventy-five percent (75%) of the maximum price election
for the citrus fruit group for Navel oranges. However, if separate price
elections are available by commodity type within each citrus fruit
group, the price elections you choose for each commodity type must have
the same percentage relationship to the maximum price offered by us for
each commodity type within the citrus fruit group.
(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 2024 crop year production report, you will provide your 2022 crop
year production.
(c) In addition, you must report, by the production reporting date
designated in section 3 of the Basic Provisions (Sec. 457.8), by
commodity 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;
[[Page 223]]
(3) The age of the trees and the planting pattern; and
(4) For the first year of insurance for acreage interplanted with
another perennial agricultural commodity and any time the planting
pattern of such acreage is changed:
(i) The age of the interplanted agricultural commodity and commodity
type, if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to establish
your approved yield.
(d) We will reduce the yield used to establish your production
guarantee as necessary, based on our estimate of the effect of any
situation listed in section 3(c) that may occur. If you fail to notify
us of any situation in section 3(c), we will reduce your production
guarantee as necessary, at any time we become aware of the circumstance.
If the situation in 3(c) occurred:
(1) Before the beginning of the insurance period, the yield used to
establish your production guarantee will be reduced for the current crop
year regardless of whether the situation was due to an insured or
uninsured cause of loss;
(2) After the beginning of the insurance period and you notify us by
the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year only if
the potential reduction in the yield used to establish your production
guarantee is due to an uninsured cause of loss; or
(3) After the beginning of the insurance period and you fail to
notify us by the production reporting date, an amount equal to the
reduction in the yield will be added to the production to count
calculated in section 11(c) due to uninsured causes. We may reduce the
yield used to establish your production guarantee for the subsequent
crop year to reflect any reduction in the productive capacity of the
trees.
4. Contract Changes
In accordance with section 4 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 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are November 20.
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the insured
crop will be all the acreage in the county of each citrus fruit group
you elect to insure and for which a premium rate is provided by the
actuarial documents:
(a) In which you have a share;
(b) That is grown on rootstock and trees 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, unless otherwise allowed by the Special Provisions, is
grown on trees that have reached at least:
(1) The sixth leaf year; or
(2) The fifth leaf year after topwork or grafting, if topwork or
grafting occurs after set out.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to interplanted acreage, citrus
interplanted with another perennial agricultural commodity 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 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 insured 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:
(A) Navel oranges; and
(B) Lemons in the Southern California counties of Imperial, Orange,
Riverside, San Bernardino, San Diego, and Ventura;
(ii) November 20 for Valencia oranges; and
(iii) July 31 for lemons in all other counties and for all other
citrus fruit commodities.
(b) In addition to the provisions of section 11 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:
[[Page 224]]
(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 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;
(6) Failure of irrigation water supply, if caused by an insured
peril that occurs during the insurance period;
(7) Insects, but not damage due to insufficient or improper
application of pest control measures; or
(8) Plant disease, but not damage due to insufficient or improper
application of disease control measures.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to the inability to market the citrus for any reason
other than actual physical damage from an insurable cause of loss
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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples. In lieu of section
14(c)(3) of the Basic Provisions, we will determine which trees must
remain unharvested as your representative sample so that we may inspect
them in accordance with procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions (Sec. 457.8), the following will apply:
(1) 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 harvested for 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 harvested for
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.
(2) If you intend to claim an indemnity on any unit, you must notify
us at least 15 days prior to the beginning of harvest or immediately if
damage is discovered during harvest so that we may have an opportunity
to inspect unharvested trees. You must not sell or dispose of the
damaged insured 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 commodity type by its
respective production guarantee;
(2) Multiplying the results of section 11(b)(1) by the respective
price election for each commodity type;
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to be counted of each commodity
type (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;
[[Page 225]]
(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 insured 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 insured
crop, in which case we will use the harvested production. If you do not
continue to care for the insured 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 you elect the frost protection option and we determine that
frost protection equipment, as specified in the Special Provisions, 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. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[61 FR 44147, Aug. 28, 1996, as amended at 62 FR 65170, Dec. 10, 1997;
78 FR 46253, July 31, 2013; 87 FR 38892, June 30, 2022]
Sec. 457.122 Walnut crop insurance provisions.
The Walnut Crop Insurance Provisions for the 2023 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:
Walnut Crop Provisions
1. Definitions
Harvest. Removal of mature walnuts from the orchard.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Net delivered weight. Delivered weight (pounds) of dry, hulled,
whole in-shell walnuts, excluding foreign material.
Pound. A unit of weight equal to 16 ounces avoirdupois.
Production guarantee (per acre). In addition to the definition
contained in section 1 of the Basic Provisions, the number of pounds is
dry, hulled, whole in-shell walnuts.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm number and by irrigated and
non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election for all the walnuts in
the county insured under this policy unless the actuarial documents
provide different price elections by variety or varietal group, in which
case you may select one price election for each walnut variety or
varietal group designated in the Special Provisions. The price elections
you choose for each variety or varietal group must have the same
percentage relationship to the maximum price offered by us for each
variety or varietal group. For example, if you choose 100 percent of the
maximum price election for a specific variety or varietal group, you
must also choose 100 percent of the maximum price election for all other
varieties or varietal groups.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions (Sec. 457.8), by variety or varietal
group if applicable:
(1) Any damage, removal of trees, change in practices, or any other
circumstance that may reduce the expected yield below the
[[Page 226]]
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;
(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, the age of the crop that is interplanted with the
walnuts, and type if applicable, and the planting pattern; and
(5) Any other information that we request in order to establish your
approved yield.
(c) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
circumstance that may reduce your yields from previous levels. Examples
of these circumstances that may reduce yield may include but are not
limited to: interplanted perennial crop; removal of trees; damage; and
change in practices. If the circumstance occurred:
(1) Before the beginning of the insurance period and you notify us
by the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year
regardless of whether the circumstance was due to an insured or
uninsured cause of loss;
(2) After the beginning of the insurance period and you notify us by
the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year only if
the potential reduction in the yield used to establish your production
guarantee is due to an uninsured cause of loss; or
(3) Before or after the beginning of the insurance period and you
fail to notify us by the production reporting date, an amount equal to
the reduction in the yield will be added to the production to count
calculated in section 11(c) of these Crop Provisions due to uninsured
causes. We will reduce the yield used to establish your production
guarantee for the subsequent crop year to reflect any reduction in the
productive capacity of the trees or in the yield potential of the
insured acreage.
(d) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that could or would reduce the yield of the insured crop
has occurred prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change dates are October 31 for California and August 31 preceding the
cancellation date for all other states.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31 for California and
November 20 for all other states.
6. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the commercially grown English Walnuts
(excluding black walnuts) in the county for which a premium rate is
provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown on tree varieties that:
(1) Were commercially available when the trees were set out;
(2) Are adapted to the area; and
(3) Are grown on a root stock that is adapted to the area;
(c) That are grown in an orchard that, if inspected, are considered
acceptable by us; and
(d) On acreage where at least 90 percent of the trees have reached
at least the seventh leaf year, unless otherwise provided in the Special
Provisions.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions
(Sec. 457.8) that prohibit insurance attaching to a crop planted with
another crop, walnuts 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 section 11 of the Basic Provisions:
(1) Coverage begins on February 1 in California and November 21 in
all other states of each crop year except for the year of application,
if your application is received after January 22 but prior to February 1
in California or after November 11 but prior to November 21 in all
states, 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 November 15, unless otherwise specified in the Special
Provisions.
(3) Notwithstanding paragraph (a)(1) of this section, for each
subsequent crop year that the policy remains continuously in force,
coverage begins on the day immediately following the end of the
insurance period for the prior crop year. Policy cancellation that
[[Page 227]]
results solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage.
(4) If your walnut policy is canceled or terminated for any crop
year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates, whichever is later, insurance will not be considered
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
(b) In addition to section 11 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. Acreage
acquired after the acreage reporting date will not be insured.
(2) If you relinquish your insurable share on any insurable acreage
of walnuts on or before the acreage reporting date for the crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due 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 section 12 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 undergrowth have not been controlled or
pruning debris has not been removed from the orchard;
(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; or
(8) 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 of the
Basic Provisions (Sec. 457.8), we will not insure against any damage or
loss of production due to the inability to market the walnuts for any
reason other than actual physical damage to the walnuts 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
(a) In addition to the requirements of section 14 of the Basic
Provisions, if you intend to claim an indemnity on any unit:
(1) You must notify us prior to the beginning of harvest so that we
may inspect the damaged production;
(2) You must give notice when knowledge is obtained of any mold
damage or 15 days prior to harvest so that we may inspect the mold
damaged production; and
(3) You must not sell or dispose of the damaged crop until we have
given you written consent to do so.
(b) 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 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) Multiplying the insured acreage by the respective production
guarantee;
(2) Multiplying each result in section 11(b)(1) by the respective
price election for each variety or varietal group;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted of each variety
or varietal group, if applicable, (see section 11(c)) by the respective
price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the result in section 11(b)(5) from the result in
section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of walnuts in the unit,
with a guarantee of 2,500 pounds per acre and a price election of $0.90
per pound. You are only able to harvest 200,000 pounds. Your indemnity
would be calculated as follows:
(1) 100 acres x 2,500 pounds = 250,000 pound insurance guarantee;
(2 & 3) 250,000 pounds x $0.90 price election = $225,000 total value
of insurance guarantee;
[[Page 228]]
(4 & 5) 200,000 pounds production to count x $0.90 price election =
$180,000 total value of production to count;
(6) $225,000 total value guarantee--$180,000 total value of
production to count = $45,000 loss; and
(7) $45,000 x 100 percent share = $45,000 indemnity payment.
(c) The total production to count (whole in-shell pounds) 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 damaged solely by uninsured causes; or
(C) For which you fail to provide acceptable production records;
(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, 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) All harvested production from the insurable acreage.
(d) Mature walnut production damaged due to an insurable cause of
loss which occurs within the insurance period may be adjusted for
quality based on an inspection by the Dried Fruit Association or during
our loss adjustment process. Walnut production that has mold damage
greater than 8 percent, based on the net delivered weight, will be
reduced by the quality adjustment factors contained in the Special
Provisions. If walnut production exceeds 30 percent mold damage and will
not be sold, the production to count will be zero.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 20091, Apr. 25, 1997, as amended at 62 FR 65170, Dec. 10, 1997;
65 FR 47837, Aug. 4, 2000; 72 FR 10909, Mar. 12, 2007; 87 FR 64368, Oct.
25, 2022; 87 FR 76919, Dec. 16, 2022]
Sec. 457.123 Almond crop insurance provisions.
The Almond Crop Insurance Provisions for the 2008 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
Almond Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Harvest. The removal of mature almonds from the orchard.
Interplanted. Acreage on which two or more crops are planted in any
form of alternating or mixed pattern.
Meat pounds. The total pounds of almond meats (whole, chipped and
broken, and in-shell meats). In-shell almonds will be converted to meat
pounds in accordance with FCIC approved procedures.
Production guarantee (per acre). The quantity of almonds (total meat
pounds per acre) determined by multiplying the approved actual
production history (APH) yield per acre by the coverage level percentage
you elect.
Set out. Transplanting the tree into the orchard.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election for all the almonds in
the county insured under this policy unless the Special Provisions
provide different price elections by type, in which case you may select
one price election for each almond type designated in the Special
Provisions. The price elections you choose for each type must have the
same
[[Page 229]]
percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for one type, you must also choose 100 percent of the maximum
price election for all other types.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions (Sec. 457.8), by type if applicable:
(1) Any damage, removal of trees, 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 patterns;
(4) For the first year of insurance for acreage interplanted with
another perennial crop, and anytime the planting pattern of such acreage
is changed, the age of the crop that is interplanted with the almonds,
and type if applicable, and the planting pattern; and
(5) 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 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.
(c) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that would or could reduce the yield of the insured crop
has occurred prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 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 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are December 31.
6. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the almonds in the county for which a
premium rate is provided by the actuarial documents:
(a) In which you have a share unless allowed otherwise by section
8(b);
(b) That are grown for harvest as almonds;
(c) That are irrigated;
(d) That are grown in an orchard that, if inspected, is considered
acceptable to us; and
(e) On acreage where at least 90 percent of the trees have reached
at least the sixth growing season after being set out, unless otherwise
provided in the Special Provisions.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions
(Sec. 457.8), that prohibit insurance attaching to a crop planted with
another crop, almonds 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 of the Basic
Provisions (Sec. 457.8):
(1) Coverage begins on January 1 of each crop year, except that for
the year of application, if your application is received after December
21, but prior to January 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.
(2) The calendar date for the end of the insurance period for each
crop year is November 30.
(3) Notwithstanding paragraph (a)(1) of this section, for each
subsequent crop year that the policy remains continuously in force,
coverage begins on the day immediately following the end of the
insurance period for the prior crop year. Policy cancellation that
results solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage.
(4) If your almond policy is canceled or terminated for any crop
year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates whichever is later, insurance will not be considered
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such 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
[[Page 230]]
acreage on the calendar date for the beginning of the insurance period.
Acreage acquired after the acreage reporting date will not be insured.
(2) If you relinquish your insurable share on any insurable acreage
of almonds on or before the acreage reporting date for the crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due 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 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 undergrowth have not been controlled or
pruning debris has not been removed from the orchard;
(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) Earthquake;
(6) Volcanic eruption;
(7) Failure of the irrigation water supply, if caused by an insured
peril that occurs during the insurance period; or
(8) Wildlife, unless control measures have not been taken.
(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 the inability to market the
almonds for any reason other than actual physical damage to the almonds
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 of the Basic
Provisions (Sec. 457.8), if you intend to claim an indemnity on any
unit, you must notify us prior to the beginning of harvest 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, 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:
(l) 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) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying each result in section 11(b)(1) by the respective
price election for the type;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, (see subsection 11(c)) by the respective price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the result in section 11(b)(5) from the result in
section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of almonds in the unit,
with a guarantee of 1,200 pounds per acre and a price election of $1.70
per pound. You are only able to harvest 100,000 pounds. Your indemnity
would be calculated as follows:
(1) 100 acres x 1,200 pounds = 120,000 pound insurance guarantee;
(2 & 3) 120,000 pounds x $1.70 price election = $204,000 total value
of insurance guarantee;
(4 & 5) 100,000 pounds production to count x $1.70 price election =
$170,000 total value of production to count;
(6) $204,000 total of value guarantee--$170,000 total value of
production to count = $34,000 loss; and
(7) $34,000 x 100 percent share = $34,000 indemnity payment.
(c) The total production to count, specified in meat pounds, 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 damaged solely by uninsured causes; or
(C) For which you fail to provide acceptable production records;
(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
[[Page 231]]
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 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 meat pounds, including meat pounds damaged due to
uninsured causes of loss.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 25108, May 8, 1997, as amended at 62 FR 65170, Dec. 10, 1997; 65
FR 47838, Aug. 4, 2000; 72 FR 10909, Mar. 12, 2007]
Sec. 457.124 Raisin crop insurance provisions.
The raisin 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
Raisin Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Crop year. In lieu of the definition of ``Crop year'' contained in
section 1 of the Basic Provisions (Sec. 457.8), the calendar year in
which the raisins are placed on trays for drying.
Delivered ton. A ton of raisins delivered to a packer, processor,
buyer or a reconditioner, before any adjustment for U. S. Grade B and
better maturity standards, and after adjustments for moisture over 16
percent and substandard raisins over 5 percent.
RAC. The Raisin Administrative Committee, which operates under an
order of the United States Department of Agriculture (USDA).
Raisins. The sun-dried fruit of varieties of grapes designated
insurable by the actuarial documents. These grapes will be considered
raisins for the purpose of this policy when laid on trays in the
vineyard to dry.
Reference maximum dollar amount. The value per ton established by
FCIC and shown in the actuarial documents.
Substandard. Raisins that fail to meet the requirements of U.S.
Grade C, or layer (cluster) raisins with seeds that fail to meet the
requirements of U.S. Grade B.
Table grapes. Grapes grown for commercial sale as fresh fruit on
acreage where appropriate cultural practices were followed.
Ton. Two thousand (2,000) pounds avoirdupois.
Tonnage report. A report used to annually report, by unit, all the
tons of raisins produced in the county in which you have a share.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will be divided into additional basic units by grape variety.
(b) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
3. Amounts of Insurance and Production Reporting
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 percentage for all the
raisins in the county insured under this policy.
(b) The amount of insurance for the unit will be determined by
multiplying the insured tonnage by the reference maximum dollar amount,
by the coverage level percentage you elect, and by your share.
(c) Insured tonnage is determined as follows:
(1) For units not damaged by rain--The delivered tons; or
(2) For units damaged by rain--By adding the delivered tons to any
verified loss of production due to rain damage. When production from a
portion of the acreage within a unit is removed from the vineyard and
production from the remaining acreage is lost in the vineyard, the
amount of production lost in the vineyard will be determined based on
the number of tons of raisins produced on
[[Page 232]]
the acreage from which production was removed. When no production has
been removed from the vineyard, the amount of production lost in the
vineyard will be determined based on an appraisal.
(3) Insured tonnage will be adjusted as follows:
(i) The insured tonnage will be reduced 0.12 percent for each 0.10
percent of moisture in excess of 16.0 percent. For example, 10.0 tons of
raisins containing 18.0 percent moisture will be reduced to 9.760 tons
of raisins;
(ii) Insured tonnage used for dry edible fruit will be reduced by
0.10 percent for each 0.10 percent of substandard raisins in excess of
5.0 percent; and
(iii) When raisins contain moisture in excess of 24.3 percent at the
time of delivery and are released for a use other than dry edible fruit
(e.g. distillery material), they will be considered to contain 24.3
percent moisture.
(4) If any raisins are delivered, the moisture content will be
determined at the time of delivery.
(d) Section 3(c) of the Basic Provisions is not applicable to this
crop.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is April 30 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 July 31.
6. Acreage Report and Tonnage Report
In lieu of the provisions contained in section 6 of the Basic
Provisions (Sec. 457.8):
(a) You must report by unit, and on our form, the acreage on which
you intend to produce raisins for the crop year. This acreage report
must be submitted to us on or before the sales closing date, and contain
the following information:
(1) All acreage of the crop (insurable and not insurable) in which
you will have a share;
(2) Your anticipated share at the time coverage will begin;
(3) The variety; and
(4) The location of each vineyard.
(b) Acreage of the crop acquired after the acreage was reported, may
be included on the acreage report if we agree to accept the additional
acreage. Such additional acreage will not be added to the acreage report
after you first place raisins from the additional acreage on trays for
drying. Failure to report any acreage in which you have a share will
result in denial of liability. If you elect not to produce raisins on
any part of the acreage included on your acreage report, you must notify
us in writing on or before September 21, and provide any records we may
require to verify that raisins were not produced on that acreage.
(c) If you fail to file an acreage report in a timely manner, or if
the information reported is incorrect, we may deny liability on any
unit.
(d) In addition to the acreage report, you must annually submit a
tonnage report, on our form, which includes by unit the number of
delivered tons of raisins, and, if damage has occurred, the amount of
any tonnage we determined was lost due to rain damage in the vineyard
for each unit designated in the acreage report.
(e) The tonnage report must be submitted to us as soon as the
information is available, but not later than March 1 of the year
following the crop year. Indemnities may be determined on the basis of
information you submitted on this report. If you do not submit this
report by the reporting date, we may, at our option, either determine
the insured tonnage and share by unit or we may deny liability on any
unit. This report may be revised only upon our approval. Errors in
reporting units may be corrected by us at any time we discover the
error.
7. 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 determined by multiplying the amount of insurance for
the unit at the time insurance attaches by the premium rate and then
multiplying that result by any applicable premium adjustment factors
that may apply.
8. Insured Crop
(a) In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the raisins in
the county of grape varieties for which a premium rate is provided by
the actuarial documents and in which you have a share.
(b) In addition to the raisins not insurable under section 8
(Insured Crop) of the Basic Provisions (Sec. 457.8), 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 counties;
(2) From table grape strippings; or
(3) From vines that received manual, mechanical, or chemical
treatment to produce table grape sizing.
9. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of the
Basic Provisions (Sec. 457.8), insurance attaches on each unit at
[[Page 233]]
the time the raisins are placed on trays for drying and ends the earlier
of:
(a) October 20;
(b) The date the raisins are removed from the trays;
(c) The date the raisins are removed from the vineyard;
(d) Total destruction of all raisins on a unit;
(e) Final adjustment of a loss on a unit; or
(f) Abandonment of the raisins.
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 unavoidable loss of production resulting from rain that occurs
during the insurance period and while the raisins are on trays or in
rolls in the vineyard for drying.
(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 inability to market the
raisins 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 a person to accept production.
11. Reconditioning Requirements and Payment
(a) We may require you to recondition a representative sample of not
more than 10 tons of damaged raisins to determine if they meet standards
established by the RAC once reconditioned. If such standards are met, we
may require you to recondition all the damaged production. If we
determine that it is possible to recondition any damaged production and,
if you do not do so, we will value the damaged production at the
reference maximum dollar amount, except if your damaged production
undergoes a USDA inspection and is stored by your packer with other
producer's production to be reconditioned at a later date. If we agree,
in writing, that it is not practical to recondition the damaged
production, we will determine the number of tons meeting RAC standards
that could be obtained if the production were reconditioned.
(b) If the representative sample of raisins that we require you to
recondition does not meet RAC standards for marketable raisins after
reconditioning, the reconditioning payment will be the actual cost you
incur to recondition the sample, not to exceed an amount that is
reasonable and customary for such reconditioning, regardless of the
coverage level selected.
(c) A reconditioning payment, based on the actual (unadjusted)
weight of the raisins, will be made if:
(1) Insured raisin production:
(i) Is damaged by rain within the insurance period;
(ii) Is reconditioned by washing with water and then drying;
(iii) Is insured at a coverage level greater than that applicable to
the catastrophic risk protection plan of insurance; and either
(2) The damaged production undergoes an inspection by USDA and is
found to contain mold, embedded sand, or other rain-caused contamination
determined by micro-analysis in excess of standards established by the
RAC, or is found to contain moisture in excess of 18 percent; or
(3) We give you consent to recondition the damaged production.
(d) Your request for consent to any wash-and-dry reconditioning must
identify the acreage on which the production to be reconditioned was
damaged in order to be eligible for a reconditioning payment.
(e) The reconditioning payment for raisins that meet RAC standards
for marketable raisins after reconditioning will be the lesser of your
actual cost for reconditioning or the amount determined by:
(1) Multiplying the greater of $125.00 or the reconditioning dollar
amount per ton contained in the Special Provisions by your coverage
level;
(2) Multiplying the result of section 11(e)(1) by the actual number
of tons of raisins (unadjusted weight) that are wash-and-dry
reconditioned; and
(3) Multiplying the result of section 11(e)(2) by your share.
(f) Only one reconditioning payment will be made for any lot of
raisins damaged during the crop year. Multiple reconditioning payments
for the same production will not be made.
12. Duties in the Event of Damage or Loss
(a) 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:
(1) If you intend to claim an indemnity on any unit, you must give
us notice within 72 hours of the time the rain fell on the raisins. We
may reject any claim for indemnity if such notice is later. You must
provide us the following information when you give us this notice:
(i) The grape variety;
(ii) The location of the vineyard and number of acres; and
(iii) The number of vines from which the raisins were harvested.
(2) We will not pay any indemnity unless you:
(i) Authorize us in writing to obtain all relevant records from any
raisin packer, raisin reconditioner, the RAC, or any other person who
may have such records. If you fail to meet the requirements of this
subsection, all
[[Page 234]]
insured production will be considered undamaged and valued at the
reference maximum dollar value.
(ii) Upon our request, provide us with records of previous years'
production and acreage. This information may be used to establish the
amount of insured tonnage when insurable damage results in discarded
production.
(b) In lieu of the provisions in section 14 (Duties in the Event of
Damage or Loss) of the Basic Provisions (Sec. 457.8) that require you
to submit a claim for indemnity not later than 60 days after the end of
the insurance period, any claim for indemnity must be submitted to us
not later than March 31 following the date for the end of the insurance
period.
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 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 acreage from which
raisins were removed 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 tonnage of raisins by the reference
maximum dollar amount and your coverage level percentage;
(2) Subtracting from the total in section 13(b)(1) the total value
of all insured damaged and undamaged raisins; and
(3) Multiplying the result of section 13(b)(2) by your share.
(c) For the purpose of determining the amount of indemnity, your
share will not exceed the lesser of your share at the time insurance
attaches or at the time of loss.
(d) Undamaged raisins or raisins damaged solely by uninsured causes
will be valued at the reference maximum dollar amount.
(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 that are damaged by rain, but that are reconditioned and
meet RAC standards for raisins, will be valued at the reference maximum
dollar amount.
(g) The value to count for any raisins produced on the unit that are
damaged by rain and not removed from the vineyard will be the larger of
the appraised salvage value or $35.00 per ton, except that any raisins
that are damaged and discarded from trays or are lost from trays
scattered in the vineyard as part of normal handling will not be
considered to have any value. You must box and deliver any raisins that
can be removed from the vineyard.
(h) At our sole option, 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 and egress to the extent necessary to take
possession, care for, and remove such raisins.
(i) Raisins destroyed, put to another use without our consent, or
abandoned will be valued at the reference maximum dollar amount.
14. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 12070, Mar. 14, 1997, as amended at 62 FR 65170, Dec. 10, 1997]
Sec. 457.125 Safflower crop insurance provisions.
The Safflower Crop Insurance Provisions for the 2017 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:
Safflower Crop Insurance Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Harvest. Collecting the safflower seed by combining or threshing.
Local market price. The cash price per pound for undamaged safflower
(test weight of 35 pounds per bushel or higher and seed damage less than
25 percent) offered by buyers.
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.
Planted acreage. In addition to the definition contained in the
Basic Provisions, safflowers must initially be planted in rows, unless
otherwise provided by the Special Provisions, actuarial documents, or by
written agreement.
Pound. Sixteen ounces avoirdupois.
Value per pound. The cash price per pound for damaged safflower
(test weight below 35
[[Page 235]]
pounds per bushel, seed damage in excess of 25 percent, or both).
2. 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 safflower in the county insured under this policy unless the Special
Provisions provide different price elections by type, in which case you
may select one price election for each safflower type designated in the
Special Provisions. The price elections you choose for each type must
have the same percentage relationship to the maximum price offered by us
for each type. For example, if you choose 100 percent of the maximum
price election for one type, you must also choose 100 percent of the
maximum price election for all other types.
3. 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 for California, and December 31
preceding the cancellation date for all other states.
4. 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
State dates
------------------------------------------------------------------------
California............................. December 31.
All other states....................... March 15.
------------------------------------------------------------------------
5. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic Provisions
(Sec. 457.8), the crop insured will be all safflower in the county for
which a premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That is planted for harvest as safflower seed;
(c) That is not (unless allowed by the Special Provisions or by
written agreement):
(1) Interplanted with another crop; or
(2) Planted into an established grass or legume.
6. Insurable Acreage
In addition to the provisions of section 9 (Insurable Acreage) of
the Basic Provisions (Sec. 457.8), we will not insure:
(a) Safflower planted on land on which safflower, sunflower seed,
any variety of dry beans, soybeans, mustard, rapeseed, or lentils were
grown the preceding crop year, unless other rotation requirements are
specified in the Special Provisions or we agree in writing to insure
such acreage; or
(b) Any acreage of safflower damaged before the final planting date,
to the extent that the majority of producers in the area would normally
not further care for the crop, unless the crop is replanted or we agree
that it is not practical to replant.
7. 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 October 31 immediately following planting.
8. 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 during 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, unless proper measures to control wildlife have not
been taken;
(f) Earthquake;
(g) Volcanic eruption; or
(h) Failure of the irrigation water supply, if caused by an insured
cause of loss that occurs during the insurance period.
9. Replanting Payment
(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 of the 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 20 percent of the production guarantee or 160 pounds,
multiplied by your price election, multiplied by your insured share.
(c) When safflower is replanted using a practice that is uninsurable
as an original planting, the liability on 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 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
[[Page 236]]
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.
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 the 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 its respective production
guarantee;
(2) Multiplying each result in section 11(b)(1) by the respective
price election;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted of each type if
applicable, (see section 11(c)) by the respective price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the results from the total in section 11(b)(5) from
the results in section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
(c) The total production to count (in pounds) 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 the 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;
(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
section 11(d)); and
(iv) 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 when 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 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 safflower 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 8 percent. We may obtain
samples of the production to determine the moisture content.
(2) Production will be eligible for quality adjustment if such
production:
(i) Has a test weight below 35 pounds per bushel;
(ii) Has seed damage in excess of 25 percent; or
(iii) Contains substances or conditions 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 that occurred within the insurance period;
(ii) The deficiencies, substances, or conditions result in a value
per pound that is less than the local market price;
(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;
(iv) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjuster), the samples are analyzed
by:
(A) A grader licensed under the United States Agricultural Marketing
Act or the United States Warehouse Act;
(B) A grader licensed under State law and employed by a warehouse
operator who has a storage agreement with the Commodity Credit
Corporation; or
[[Page 237]]
(C) A grader not licensed under State law, but who is employed by a
warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(v) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Safflower production that is eligible for quality adjustment, as
specified in sections 11(d) (2) and (3), will be reduced as follows:
(i) In accordance with the quality adjustment factors contained in
the Special Provisions; or
(ii) If quality adjustment factors are not contained in the Special
Provisions:
(A) By determining the value per pound and the local market price on
the earlier of the date such quality adjusted production is sold or the
date of final inspection for the unit. Discounts used to establish the
value per pound will be limited to those which are usual, customary, and
reasonable. The value per pound will not be reduced for:
(1) Moisture content;
(2) Damage due to uninsured causes; or
(3) Drying, handling, processing, or any other costs associated with
normal harvesting, handling, and marketing of safflower. We may obtain
values per pound from any buyer of our choice. If we obtain values per
pound from one or more buyers located outside your local market area, we
will reduce such values per pound by the additional costs required to
deliver the production to those buyers.
(B) Divide the value per pound by the local market price to
determine the quality adjustment factor; and
(C) Multiply the adjustment factor by the number of pounds of the
damaged production remaining after any reduction due to excessive
moisture to determine the net production to count.
(e) Any production harvested from other plants growing in the
insured crop may be counted as production of the insured crop on a
weight basis.
12. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 42649, Aug. 8, 1997, as amended at 62 FR 65171, Dec. 10, 1997; 67
FR 55690, Aug. 30, 2002; 81 FR 84399, Nov. 23, 2016]
Sec. 457.126 Popcorn crop insurance provisions.
The Popcorn Crop Insurance Provisions for the 2017 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:
Popcorn Crop Insurance Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Base contract price. The price stipulated on the contract executed
between you and the processor before any adjustments for quality.
Harvest. Removing the grain or ear from the stalk either by hand or
by machine.
Merchantable popcorn. Popcorn that meets the provisions of the
processor contract.
Planted acreage. In addition to the definition contained in the
Basic Provisions, popcorn must initially be planted in rows far enough
apart to permit mechanical cultivation, unless otherwise provided by the
Special Provisions, actuarial documents, or by written agreement.
Pound. Sixteen (16) ounces avoirdupois.
Practical to replant. In addition to the definition contained in the
Basic Provisions, it will not be considered practical to replant unless
production from the replanted acreage can be delivered under the terms
of the popcorn processor contract, or the processor agrees in writing
that it will accept the production from the replanted acreage.
Processor. Any business enterprise regularly engaged in processing
popcorn that possesses all licenses, permits or approved inspections for
processing popcorn 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 popcorn within a
reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, containing at a minimum:
(a) The producer's commitment to plant and grow popcorn, and to
deliver the popcorn production to the processor;
[[Page 238]]
(b) The processor's commitment to purchase all the production stated
in the processor contract;
(c) A date, if specified on the processor's contract, by which the
crop must be harvested to be accepted; and
(d) A base contract price.
Multiple contracts with the same processor, each of which stipulates a
specific amount of production to be delivered under the terms of the
processor contact, will be considered as a single processor contract.
2. Unit Division
(a) For processor contracts that stipulate the amount of production
to be delivered:
(1) In lieu of the definition contained in the Basic Provisions, a
basic unit will consist of all the acreage planted to the insured crop
in the county that will be used to fulfill contracts with each
processor;
(i) There will be no more than one basic unit for all production
contracted with each processor contract;
(ii) In accordance with section 13 of these Crop Provisions, all
production from any basic unit in excess of the amount under contract
will be included as production to count if such production is applied to
any other basic unit for which the contracted amount has not been
fulfilled; and
(2) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable.
(b) For any processor contract that stipulates only the number of
acres to be planted, the provisions contained in section 34 of the Basic
Provisions will apply.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all the popcorn
in the county insured under this policy unless the Special Provisions
provide different price elections by type, in which case you may select
one price election for each popcorn type designated in the Special
Provisions. The price elections you choose for each type must have the
same percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for one type, you must also choose 100 percent of the maximum
price election for all other types.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and termination
State and county dates
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, January 15.
Wilson, Karnes, Goliad, Victoria, and
Jackson counties Texas, and all Texas
counties lying south thereof.
All other Texas counties and all other March 15.
states.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
you must provide a copy of all processor contracts to us on or before
the acreage reporting date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the popcorn in the county for which a premium rate
is provided by the actuarial documents:
(1) In which you have a share;
(2) That is planted for harvest as popcorn;
(3) That is grown under, and in accordance with the requirements of,
a processor contract executed on or before the acreage reporting date
and is not excluded from the processor contract at any time during the
crop year; and
(4) That is not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acreage on which
the popcorn is grown, you have a risk of loss, and the processor
contract provides for delivery of popcorn under specified conditions and
at a stipulated base contract price.
(c) A popcorn producer who is also a processor may be able to
establish an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions;
(2) The Board of Directors or officers of the processor must, prior
to the sales closing date, execute and adopt a resolution that contains
the same terms as an acceptable processor contract. Such resolution will
be considered a processor contract under this policy; and
(3) Our inspection reveals that the processing facilities comply
with the definition of a processor contained in these Crop Provisions.
[[Page 239]]
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions,
any acreage of the insured crop damaged before the final planting date,
to the extent that the majority of producers in the area would normally
not further care for the crop, must be replanted unless we agree that it
is not practical to replant.
9. Insurance Period
In lieu of the provisions contained in section 11 of the Basic
Provisions, regarding the end of the insurance period, insurance ceases
on each unit or part of a unit at the earliest of:
(a) The date the popcorn:
(1) Was destroyed;
(2) Should have been harvested but was not harvested;
(3) Was abandoned; or
(4) Was harvested;
(b) When the processor contract stipulates a specific amount of
production to be delivered, the date the production accepted by the
processor equals the contracted amount of production;
(c) Final adjustment of a loss; or
(d) December 10 immediately following planting.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(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; or
(8) Failure of the irrigation water supply, if caused by a cause of
loss specified in sections 10(a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, we do not insure against any loss of production due
to:
(1) Damage resulting from frost or freeze after the date designated
in the Special Provisions; or
(2) Failure to follow the requirements contained in the processor
contract.
11. Replanting Payment
(a) In accordance with section 13 of the Basic Provisions, 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 of the 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 20 percent of the production guarantee or 150 pounds,
multiplied by your price election, multiplied by your insured share.
(c) When popcorn is replanted using a practice that is uninsurable
as an original planting, our liability for 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 of the Basic
Provisions, 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 destroyed until the earlier of our
inspection or 15 days after harvest of the balance of the unit is
completed.
13. 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 type, if applicable, by
its respective production guarantee;
(2) Multiplying the result of section 13(b)(1) by the respective
price election for each type, if applicable;
(3) Totaling the results of section 13(b)(2) if there is more than
one type;
(4) Multiplying the total production to count (see section 13(c)),
of each type if applicable, by its respective price election;
(5) Totaling the results of section 13(b)(4) if there is more than
one type;
(6) Subtracting the result of section 13(b)(4) from the result in
section 13(b)(2) if there is only one type or subtracting the result of
section 13(b)(5) from the result of section 13(b)(3) if there is more
than one type; and
(7) Multiplying the result of section 13(b)(6) by your share.
[[Page 240]]
For example:
You have a 100 percent share in 100 acres of Type A popcorn in the unit,
with a guarantee of 2,500 pounds per acre and a price election of $.12
per pound. You are only able to harvest 150,000 pounds. Your indemnity
would be calculated as follows:
1.................... 100 acres x 2,500 pounds = 250,000 pound
guarantee;
2.................... 250,00 pounds x $.12 price election = $30,000
value of guarantee;
4.................... 150,000 pounds production to count x $.12 price
election = $18,000 value of production to count;
6.................... $30,000-$18,000 = $12,000 loss; and
7.................... $12,000 x 100 percent share = $12,000 indemnity
payment.
You also have a 100 percent share in 150 acres of type B popcorn in the
same unit, with a guarantee of 2,250 pounds per acre and a price
election of $.10 per pound. You are only able to harvest 70,000 pounds.
Your total indemnity for both popcorn types A and B would be calculated
as follows:
1.................... 100 acres x 2,500 pounds = 250,000 guarantee for
type A and 150 acres x 2,250 pounds = 337,500
pound guarantee for type B;
2.................... 250,000 pound guarantee x $.12 price election =
$30,000 value of guarantee for type A and
337,500 pound guarantee x $.10 price election =
$33,750 value guarantee for type B;
3.................... $30,000 + $33,750 = $63,750 total value
guarantee;
4.................... 150,000 pounds x $.12 price election = $18,000
value of production to count for type A and
70,000 pounds x $.10 price election = $7,000
value of production to count for type B;
5.................... $18,000 + $7,000 = $25,000 total value of
production to count;
6.................... $63,750-$25,000 = $38,750 loss; and
7.................... $38,750 x 100 percent = $38,750 indemnity
payment.
(c) The total production to count (in pounds) 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 production records;
(ii) Unharvested production (mature unharvested production may be
adjusted for quality deficiencies and excess moisture in accordance with
section 13(d));
(iii) 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 when 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 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;
(2) All harvested production from the insurable acreage in the unit;
(3) All harvested and appraised production lost or damaged by
uninsured causes; and
(4) For processor contracts that stipulate the amount of production
to be delivered, all harvested popcorn production from any other
insurable unit that has been used to fulfill your processor contract
applicable to this unit.
(5) Any production from yellow or white dent corn will be counted as
popcorn on a weight basis and any production harvested from plants
growing in the insured crop may be counted as popcorn production on a
weight basis.
(6) Any ear production for which we cannot determine a shelling
factor will be considered to have an 80 percent shelling factor.
(d) Mature popcorn 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 for moisture in excess of 15 percent. We may obtain
samples of the production to determine the moisture content.
(2) Popcorn production will be eligible for quality adjustment if,
due to an insurable
[[Page 241]]
cause of loss that occurs within the insurance period, it is not
merchantable popcorn and is rejected by the processor. The production
will be adjusted by:
(i) Dividing the value per pound of the damaged popcorn by the base
contract price per pound for undamaged popcorn; and
(ii) Multiplying the result by the number of pounds of such popcorn.
14. Late Planting
Late planting provisions in the Basic Provisions are applicable for
popcorn if you provide written approval from the processor by the
acreage reporting date that it will accept the production from the late
planted acres when it is expected to be ready for harvest.
15. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[63 FR 33838, June 22, 1998, as amended at 81 FR 84399, Nov. 23, 2016]
Sec. 457.127 [Reserved]
Sec. 457.128 Guaranteed production plan of fresh market tomato crop
insurance provisions.
The Guaranteed Production Plan of Fresh Market Tomato Crop Insurance
Provisions for the 2023 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:
Guaranteed Production Plan of Fresh Market Tomato Crop Provisions
1. Definitions
Acre. Forty-three thousand five hundred sixty (43,560) square feet
of land when row widths do not exceed six feet, or if row widths exceed
six feet, the land area on which at least 7,260 linear feet of rows are
planted.
Carton. A container that contains 25 pounds of fresh tomatoes unless
otherwise provided in the Special Provisions.
First fruit set. The date when 30 percent of the plants on the unit
have produced fruit that has reached a minimum size of one inch in
diameter.
Harvest. Picking of marketable tomatoes.
Mature green tomato. A tomato that:
(a) Has a heightened gloss due to a waxy skin that cannot be torn by
scraping;
(b) Has a well-formed jelly-like substance in the locules;
(c) Has seeds that are sufficiently hard so they are pushed aside
and not cut by a sharp knife in slicing; and
(d) Shows no red color.
Planting. Transplanting the tomato plants into the field.
Planting period. The time period designated in the Special
Provisions during which the tomatoes must be planted to be insured as
either spring-or fall-planted tomatoes.
Plant stand. The number of live plants per acre before any damage
occurs.
Potential production. The number of cartons per acre of mature green
or ripe tomatoes that the tomato plants would have produced by the end
of the insurance period:
(a) With a classification size of 6 x 7 (2-8/32 inch minimum
diameter) or larger for all types except cherry, roma, or plum; or
(b) Meeting the criteria specified in the Special Provisions for
cherry, roma, or plum types.
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 windows that replanting the insured crop will allow the
crop to attain maturity prior to the calendar date for the end of the
insurance period. In counties that do not have both spring and fall
planting periods, it will not be considered practical to replant after
the final planting date unless replanting is generally occurring in the
area. In counties that have spring and fall planting periods, it will
not be considered practical to replant after the final planting date for
the planting period in which the crop was initially planted.
Ripe tomato. A tomato that meets the definition of a mature green
tomato, except the tomato shows some red color and can still be packed
for fresh market under the agreement or contract with the packer.
Row width. The distance in feet from the center of one row of plants
to the center of an adjacent row.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will be divided into additional basic units by planting period, if
[[Page 242]]
separate planting periods are provided for in the Special Provisions.
(b) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election for all the tomatoes in
the county insured under this policy unless the actuarial documents
provide different price elections by type, in which case you may select
one price election for each tomato type designated in the actuarial
documents. The price election you choose for each type must have the
same percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for one type, you must also choose 100 percent of the maximum
price election for all other types.
(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 as follows:
(1) For California:
------------------------------------------------------------------------
Percent of
stage 3
(final
Stage stage) Length of time
production
guarantee
------------------------------------------------------------------------
1......................... 50 From planting until first fruit
set.
2......................... 70 From first fruit set until
harvested.
3......................... 100 Harvested acreage.
------------------------------------------------------------------------
(2) For all other states, except California:
------------------------------------------------------------------------
Percent of
stage 4
(final
Stage stage) Length of time
production
guarantee
------------------------------------------------------------------------
1....... 50 From planting until qualifying
for stage 2.
2......................... 75 From the earlier of stakes
driven, one tie and pruning, or
30 days after planting until
qualifying for stage 3.
3......................... 90 From the earlier of the end of
stage 2 or 60 days after
planting until qualifying for
stage 4.
4......................... 100 From the earlier of 75 days
after planting or the beginning
of harvest.
------------------------------------------------------------------------
(c) Any acreage of tomatoes damaged to the extent that producers in
the area generally would not further care for the tomatoes will be
deemed to have been destroyed even though you continue to care for the
tomatoes. The production guarantee for such acreage will be the
guarantee for the stage in which such damage occurs.
(d) Any production guarantees for cherry, roma, or plum type
tomatoes will be specified in the Special Provisions.
4. Contract Changes
In accordance with section 4 of the Basic Provisions (Sec. 457.8),
the contract change date is September 30 preceding the cancellation date
for counties with a January 31 cancellation date and December 31
preceding the cancellation date for all other counties.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are:
Cancellation and Termination
------------------------------------------------------------------------
State Dates
------------------------------------------------------------------------
California, Florida, Georgia, and South January 31.
Carolina.
All other states....................... March 15.
------------------------------------------------------------------------
6. Report of Acreage
(a) In addition to the provisions of section 6 of the Basic
Provisions (Sec. 457.8), you must report the row width.
(b) If spring and fall planting periods are allowed in the Special
Provisions you must report all the information required by section 6 of
the Basic Provisions (Sec. 457.8) and these Crop Provisions by the
acreage reporting date for each planting period.
7. Annual Premium
In lieu of provisions contained in the Basic Provisions (Sec.
457.8), for determining premium amounts, the annual premium is
determined by multiplying the final stage production guarantee by the
price election, by the premium rate, by the insured acreage, by your
share at the time coverage begins, and by any applicable premium
adjustment factor contained in the Special Provisions.
8. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the tomatoes in the county for which a
premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That are transplanted tomatoes that have been planted for
harvest as fresh market tomatoes;
(c) That are planted within the spring or fall planting periods, as
applicable, specified in the Special Provisions;
(d) That, on or before the acreage reporting date, are subject to
any agreement in writing (packing contract) executed between you and a
packer, whereby the packer agrees to
[[Page 243]]
accept and pack the production specified in the agreement, unless you
control a packing facility or an exception exists in the Special
Provisions; and
(e) That are not (unless allowed by the Special Provisions):
(1) Grown for direct marketing;
(2) Interplanted with another crop;
(3) Planted into an established grass or legume; or
(4) Cherry, roma, or plum type tomatoes.
9. Insurable Acreage
(a) In addition to the provisions of section 9 of the Basic
Provisions (Sec. 457.8):
(1) Any acreage of the insured crop damaged before the final
planting date, to the extent that the majority of growers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant. Unavailability of plants
will not be considered a valid reason for failure to replant.
(2) We do not insure any acreage of tomatoes:
(i) Grown by any person if the person had not previously:
(A) Grown fresh market tomatoes for commercial sales; or
(B) Participated in the management of a fresh market tomato farming
operation, in at least one of the three previous years.
(ii) That does not meet the rotation requirements contained in the
Special Provisions;
(iii) On which tomatoes, peppers, eggplants, or tobacco have been
grown within the previous two years unless the soil was fumigated or
nematicide was applied before planting the tomatoes, except that this
limitation does not apply to a first planting in Pennsylvania or if
otherwise specified in the Special Provisions; or
(b) In lieu of the provisions of section 9 of the Basic Provisions
(Sec. 457.8), that prohibit insurance from attaching if a crop has not
been planted and harvested in at least one of the three previous
calendar years, we will insure newly cleared land or former pasture land
planted to fresh market tomatoes.
10. Insurance Period
In lieu of the provisions of section 11 of the Basic Provisions
(Sec. 457.8):
(a) Coverage begins on each unit or part of a unit on the later of
the date you submit your application or when the tomatoes are planted.
(b) Coverage will end on any insured acreage at the earliest of:
(1) Total destruction of the tomatoes;
(2) Discontinuance of harvest;
(3) The date harvest should have started on any acreage that was not
harvested;
(4) 120 days after the date of transplanting or replanting;
(5) Completion of harvest;
(6) Final adjustment of a loss; or
(7) October 15 of the crop year in Delaware, Maryland, New Jersey,
North Carolina, and Virginia; October 31 of the crop year in California;
November 10 of the crop year in Florida, Georgia, and South Carolina;
and September 20 of the crop year in all other states.
11. Causes of Loss
(a) In accordance with the provisions of section 12 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;
(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; or
(8) 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 of the
Basic Provisions (Sec. 457.8), we will not insure against damage or
loss of production that occurs or becomes evident after the tomatoes
have been harvested.
12. Replanting Payment
(a) In accordance with section 13 of the Basic Provisions (Sec.
457.8), a replanting payment is allowed if the crop is damaged by an
insurable cause of loss and the acreage to be replanted has sustained a
loss in excess of 50 percent of the plant stand.
(b) The maximum amount of the replanting payment per acre will be:
(1) Seventy (70) cartons multiplied by your price election,
multiplied by your insured share for all insured tomatoes except cherry,
roma or plum types; and
(2) As specified in the Special Provisions for cherry, roma, or plum
types.
(c) In lieu of the provisions contained in section 13 of the Basic
Provisions (Sec. 457.8) that permit only one replanting payment each
crop year, when both spring and fall planting periods are contained in
the Special Provisions, you may be eligible for one replanting payment
for acreage planted during each planting period within the crop year.
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:
[[Page 244]]
(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) Multiplying the insured acreage for each type, if applicable, by
its respective production guarantee for the stage in which the damage
occurred;
(2) Multiplying the results of section 13(b)(1) by the respective
price election for each type, if applicable;
(3) Totaling the results of section 13(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, (see section 13(c)) by the respective price election;
(5) Totaling the results of section 13(b)(4);
(6) Subtracting this result of section 13(b)(5) from the results in
section 13(b)(3); and
(7) Multiplying the result of section 13(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 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 production records that are
acceptable to us;
(ii) Potential production lost due to uninsured causes;
(iii) Unharvested production of mature green and ripe tomatoes
remaining after harvest has ended:
(A) With a classification size of 6 x 7 (2\8/32\ inch minimum
diameter) or larger and that would grade eighty-five percent (85%) or
better U.S. No. 1 for types other than cherry, roma, or plum; or
(B) That grade in accordance with the requirements specified in the
Special Provisions for cherry, roma or plum types.
(iv) Potential production on unharvested acreage and potential
production on acreage when final harvest has not been completed;
(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 when 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:
(i) That is marketed, regardless of grade; and
(ii) That is unmarketed and:
(A) That grades eighty-five percent (85%) or better U.S. No. 1 with
a classification size of 6 x 7 (2-8/32 inch minimum diameter) or larger
for all types except cherry, roma, or plum; or
(B) That grade in accordance with the requirements specified in the
Special Provisions for cherry, roma, or plum types.
(d) Only that amount of appraised production that exceeds the
difference between the final stage guarantee and the stage guarantee
applicable to the acreage will be production to count.
14. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 23631, May 1, 1997; 62 FR 33539, June 20, 1997, as amended at 62
FR 65171, Dec. 10, 1997; 63 FR 36157, July 2, 1998; 63 FR 50753, Sept.
23, 1998; 87 FR 38892, June 30, 2022; 87 FR 52853, Aug. 30, 2022]
Sec. 457.129 Fresh market sweet corn crop insurance provisions.
The fresh market sweet corn crop insurance provisions for the 2023
and succeeding crop years in counties with a contract change date of
November 30, and for the 2024 and succeeding crop years in counties with
a contract change date of April 30, are as follows:
FCIC Policies
Department of Agriculture
Federal Crop Insurance Corporation
Reinsured Policies
(Appropriate title for insurance provider)
Both FCIC and Reinsured Policies
[[Page 245]]
Fresh Market Sweet Corn Crop Provisions
1. Definitions
Allowable cost. The dollar amount per container for harvesting,
packing, and handling as shown in the actuarial documents.
Amount of insurance (per acre). The dollar amount of coverage per
acre obtained by multiplying the reference maximum dollar amount shown
on the actuarial documents by the coverage level percentage you elect.
Average net value per container. The dollar amount obtained by
totaling the net values of all containers of sweet corn sold and
dividing the result by the total number of containers of all sweet corn
sold.
Container. The unit of measurement for the insured crop as specified
in the Special Provisions.
Crop year. In lieu of the definition of ``crop year'' contained in
section 1 of the Basic Provisions, for counties with fall, winter, and
spring planting periods or counties with fall and spring planting
periods, the period of time that begins on the first day of the earliest
planting period for fall planted sweet corn and continues through the
last day of the insurance period for spring planted sweet corn. For
counties with only spring planting periods, the period of time that
begins on the earliest planting period for spring planted sweet corn and
continues through the last day of the insurance period for spring
planted sweet corn. The crop year is designated by the calendar year in
which spring planted sweet corn is harvested.
Harvest. Separation of ears of sweet corn from the plant by hand or
machine.
Marketable sweet corn. Sweet corn that is sold for any purpose or
grades U.S. No. 1 or better in accordance with the requirements of the
United States Standards for Grades of Sweet Corn.
Minimum value. The dollar amount per container shown in the
actuarial documents we will use to value marketable production to count.
Net value. The dollar value of packed and sold sweet corn obtained
by subtracting the allowable cost and any additional charges specified
in the Special Provisions from the gross value per container of sweet
corn sold. This result may not be less than zero.
Plant stand. The number of live plants per acre prior to the
occurrence of an insurable cause of loss.
Planted acreage. In addition to the definition contained in section
1 of the Basic Provisions, for each planting period, sweet corn seed
must be planted in rows far enough apart to permit mechanical
cultivation, unless otherwise provided by the Special Provisions,
actuarial documents, or by written agreement.
Planting period. The period of time designated in the actuarial
documents in which sweet corn must be planted to be considered fall,
winter, or spring-planted sweet corn.
Potential production. The number of containers of sweet corn that
the sweet corn plants will or would have produced per acre by the end of
the insurance period, assuming normal growing conditions and practices.
Practical to replant. In lieu of the definition in section 1 of the
Basic Provisions, our determination, after loss or damage to the insured
crop, based on factors, including but not limited to moisture
availability, condition of the field, marketing windows, 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 (inability to obtain seed will not be considered when
determining if it is practical to replant).
Sweet corn. A type of corn with kernels containing a high percentage
of sugar that is adapted for human consumption as a vegetable.
2. Unit Division
A basic unit, as defined in section 1 of the Basic Provisions, will
also be established for each planting period.
3. Amounts of Insurance and Production Stages
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one coverage level (and the
corresponding amount of insurance designated in the actuarial documents
for the applicable planting period and practice) for all the sweet corn
in the county insured under this policy.
(b) The amount of insurance you choose for each planting period and
practice must have the same percentage relationship to the maximum price
offered by us for each planting period and practice. For example, if you
choose 100 percent of the maximum amount of insurance for a specific
planting period and practice, you must also choose 100 percent of the
maximum amount of insurance for all other planting periods and
practices.
(c) The production reporting requirements contained in section 3 of
the Basic Provisions do not apply to sweet corn.
(d) If specified in the Special Provisions, we will limit your
amount of insurance per acre if you have not produced the minimum amount
of production of sweet corn contained in the Special Provisions in at
least one of the three most recent crop years.
(e) The amounts of insurance are progressive by stages as follows:
[[Page 246]]
------------------------------------------------------------------------
Percent of
the amount
of
Stage insurance Length of time
per acre
that you
selected
------------------------------------------------------------------------
1................... 65 From planting through the beginning
of tasseling (which is when the
tassel becomes visible above the
whorl).
Final............... 100 From tasseling until the acreage is
harvested.
------------------------------------------------------------------------
(f) The indemnity payable for any acreage of sweet corn will be
based on the stage the plants had achieved when damage occurred. Any
acreage of sweet corn damaged in the first stage to the extent that the
majority of producers in the area would not normally further care for it
will have an amount of insurance based on the first stage for the
purposes of establishing an indemnity even if you continue to care for
the damaged sweet corn.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date shown below is the date preceding the cancellation date:
------------------------------------------------------------------------
State and county Date
------------------------------------------------------------------------
All Florida counties; and all Georgia April 30.
counties for which the Special
Provisions designate a fall planting
period.
Toombs County, Georgia; and all other November 30.
states.
------------------------------------------------------------------------
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and termination
State and county dates
------------------------------------------------------------------------
Florida; and all Georgia counties for July 31.
which the Special Provisions designate
a fall planting period.
Alabama; and Toombs County, Georgia.... February 15.
All other states....................... March 15.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must report on or before the acreage reporting date
contained in the Special Provisions for each planting period, all the
acreage of sweet corn in the county insured under this policy in which
you have a share.
7. Annual Premium
In lieu of the premium amount determinations contained in section 7
of the Basic Provisions, the annual premium amount for each cultural
practice (e.g., fall-planted irrigated) is determined by multiplying the
final stage amount of insurance per acre by the premium rate for the
cultural practice as established in the Actuarial Table, by the insured
acreage, by your share at the time coverage begins, and by any
applicable premium adjustment factors contained in the actuarial
documents.
8. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the sweet corn in the county for which a premium
rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That is:
(1) Planted to be harvested and sold as fresh market sweet corn;
(2) Planted within the planting periods designated in the actuarial
documents;
(3) Grown under an irrigated practice, unless otherwise provided in
the Special Provisions; and
(4) Grown by a person who in at least one of the three previous crop
years:
(i) Grew sweet corn for commercial sale; or
(ii) Participated in managing a sweet corn farming operation;
(c) That is not:
(1) Interplanted with another crop;
(2) Planted into an established grass or legume; or
(3) Grown for direct marketing, unless otherwise provided in the
Special Provisions or by written agreement.
9. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions
any acreage of sweet corn damaged during the planting period in which
initial planting took place:
(a) Must be replanted if:
(1) Less than 75 percent of the plant stand remains;
(2) It is practical to replant; and
(3) The final day of the planting period has not passed at the time
the crop was damaged.
(b) Whenever sweet corn is initially planted during the fall or
winter planting periods and the final planting date for the planting
period has passed, but it is considered practical to replant, you may
elect:
[[Page 247]]
(1) To replant such acreage and collect any replant payment due as
specified in section 12. The initial planting period coverage will
continue for such replanted acreage; or
(2) Not to replant such acreage and receive an indemnity based on
the stage of growth the plants had attained at the time of damage.
However, such an election will result in the acreage being uninsurable
in the subsequent planting period.
10. Insurance Period
In lieu of the provisions of section 11 of the Basic Provisions,
coverage begins on each unit or part of a unit the later of the date we
accept your application, or when the sweet corn is planted in each
planting period. Coverage ends at the earliest of:
(a) Total destruction of the sweet corn on the unit;
(b) Abandonment of the sweet corn on the unit;
(c) The date harvest should have started on the unit on any acreage
which will not be harvested;
(d) Final adjustment of a loss on the unit;
(e) Final harvest; or
(f) 100 days after the date of planting or replanting, unless
otherwise provided in the Special Provisions.
11. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Wildlife;
(4) Volcanic eruption;
(5) Earthquake;
(6) Insects, but not damage due to insufficient or improper
application of pest control measures;
(7) Plant disease, but not damage due to insufficient or improper
application of disease control measures; or
(8) Failure of the irrigation water supply, if caused by an insured
cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss due to:
(1) Failure to harvest in a timely manner unless harvest is
prevented by one of the insurable causes of loss specified in section
11(a); or
(2) Failure to market the sweet corn unless such failure is due to
actual physical damage caused by an insured cause of loss as specified
in section 11(a). 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.
12. Replanting Payments
(a) In accordance with section 13 of the Basic Provisions, a
replanting payment is allowed if, due to an insured cause of loss, more
than 25 percent of the plant stand will not produce sweet corn and it is
practical to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of your actual cost of replanting or the result obtained by
multiplying the per acre replanting payment amount contained in the
Special Provisions by your insured share.
(c) In lieu of the provisions contained in section 13 of the Basic
Provisions, limiting a replanting payment to one each crop year, only
one replanting payment will be made for acreage planted during each
planting period within the crop year.
13. Duties in the Event of Damage or Loss
In addition to the requirements contained in section 14 of the Basic
Provisions, if you intend to claim an indemnity on any unit:
(a) You also must give us notice not later than 72 hours after the
earliest of:
(1) The time you discontinue harvest of any acreage on the unit;
(2) The date harvest normally would start if any acreage on the unit
will not be harvested; or
(3) The calendar date for the end of the insurance period.
(b) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. We will conduct an appraisal that will be used to determine
the value of your production to count for production that is sold by
direct marketing. If damage occurs after this appraisal, we will conduct
an additional appraisal if you notify us that additional damage has
occurred. These appraisals, and/or any acceptable production records
provided by you, will be used to determine the value of your production
to count.
(c) Failure to give timely notice that production will be harvested
for direct marketing will result in an appraised amount of production to
count of not less than the dollar amount of insurance (per acre) for the
applicable stage if such failure results in our inability to accurately
determine the value of production.
14. 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.
[[Page 248]]
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insured acreage in each stage by the amount of
insurance per acre for the final stage;
(2) Multiplying each result in section 14(b)(1) by the percentage
for the applicable stage (see section 3(e));
(3) Totaling the results of section 14(b)(2);
(4) Subtracting either of the following values from the result of
section 14(b)(3):
(i) For other than catastrophic risk protection coverage, the total
value of production to be counted (see section 14(c)); or
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to be counted (see section
14(c)) by fifty-five percent; and
(5) Multiplying the result of section 14(b)(4) by your share.
For example:
You have a 100 percent share in 65.3 acres of fresh market sweet
corn in the unit (15.0 acres in stage 1 and 50.3 acres in the final
stage), with a dollar amount of insurance of $1,000 per acre. The 15.0
acre field was damaged by flood and appraisals of the crop determined
there was no potential production to be counted. From the 50.3 acre
field, you are only able to harvest 5,627 containers of sweet corn. The
net value of all sweet corn production sold ($3.50 per container) is
greater than the Minimum Value per container ($3.30). The 5,627
containers sold x $3.50 average net value per container = $19,694.50
value of your production to count. Your indemnity would be calculated as
follows:
(1) 15.0 acres x $1,000 amount of insurance = $15,000 and 50.3 acres
x $1,000 amount of insurance = $50,300;
(2) $15,000 x .65 (percent for stage 1) = $9,750 and $50,300 x 1.00
(percent for final stage) = $50,300;
(3) $9,750 + $50,300 = $60,050 amount of insurance for the unit;
(4) $60,050-$19,694.50 value of production to count = $40,355.50
loss;
(5) $40,355.50 x 100 percent share = $40,355.50 indemnity payment.
(c) The total value of production to count from all insurable
acreage on the unit will include:
(1) Not less than the amount of insurance per acre for the stage for
any acreage:
(i) That is abandoned;
(ii) Put to another use without our consent;
(iii) That is damaged solely by uninsured causes;
(iv) For which you fail to provide acceptable production records; or
(v) From which insurable production is sold by direct marketing and
you fail to meet the requirements contained in section 13(b) of these
Crop Provisions;
(2) The value of the following appraised sweet corn production will
not be less than the dollar amount obtained by multiplying the number of
containers of appraised sweet corn by the minimum value for the planting
period:
(i) Unharvested marketable sweet corn production (unharvested
production that is damaged or defective due to insurable causes and is
not marketable will not be counted as production to count unless such
production is later harvested and sold for any purpose);
(ii) Production lost due to uninsured causes; and
(iii) 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 when you put the acreage to another use or 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 (If we require you to continue to care for the crop
and you do not do so, the original appraisal will be used); or
(B) You may elect to continue to care for the crop, in which case
the amount of production to count for the acreage will be the harvested
production, or our reappraisal if the crop is not harvested.
(3) The value of all harvested production of sweet corn from the
insurable acreage, except production that is sold by direct marketing as
specified in section (c)(4) below:
(i) For sold production, will be the greater of:
(A) The dollar amount obtained by multiplying the total number of
containers of sweet corn sold by the minimum value; or
(B) The dollar amount obtained by multiplying the average net value
per container from all sweet corn sold by the total number of all
containers of sweet corn sold.
(ii) For marketable sweet corn production that is not sold, will be
the dollar amount obtained by multiplying the number of containers of
such sweet corn by the minimum value for the planting period. Harvested
production that is damaged or defective due to insurable causes and is
not marketable will not be counted as production to count unless such
production is sold.
(4) If all the requirements of insurability are met, the value of
insurable production that is sold by direct marketing will be the
greater of:
(i) The actual value received by you for direct marketed production;
or
(ii) The dollar amount obtained by multiplying the total number of
containers of appraised sweet corn sold by direct marketing by the
minimum value.
[[Page 249]]
15. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
16. Minimum Value Option
(a) The provisions of this option are continuous and will be
attached to and made a part of your insurance policy, if:
(1) You elect the Minimum Value Option on your application, or on a
form approved by us, on or before the sales closing date for the initial
crop year in which you wish to insure sweet corn under this option, and
pay the additional premium indicated in the actuarial documents for this
optional coverage; and
(2) You have not elected coverage under the Catastrophic Risk
Protection Endorsement.
(b) In lieu of the provisions contained in section 14(c)(3) of these
Crop Provisions, the total value of harvested production that is not
sold by direct marketing will be determined as follows:
(1) The dollar amount obtained by multiplying the average net value
per container from all sweet corn sold (this result may not be less than
the minimum value option amount if such amount is provided in the
actuarial documents) by the total number of all containers of sweet corn
sold;
(2) For marketable sweet corn production that is not sold, the value
of such production will be the dollar amount obtained by multiplying the
total number of containers of such sweet corn by the minimum value for
the planting period. Harvested production that is damaged or defective
due to insurable causes and is not marketable will not be included as
production to count.
(c) If all the requirements of insurability are met, the value of
insurable production that is sold by direct marketing will be the
greater of:
(1) The actual value received by you for direct marketed production;
or
(2) The dollar amount obtained by multiplying the total number of
containers of sweet corn sold by direct marketing by the minimum value.
(d) 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 preceding the crop year for which the cancellation of
this option is to be effective.
[62 FR 14783, Mar. 28, 1997; 62 FR 26205, May 13, 1997, as amended at 62
FR 65171, Dec. 10, 1997; 72 FR 54523, Sept. 26, 2007; 72 FR 62767, Nov.
7, 2007; 87 FR 38893, June 30, 2022]
Sec. 457.130 Macadamia tree crop insurance provisions.
The macadamia tree crop insurance provisions for the 2016 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:
Macadamia Tree Crop Provisions
1. Definitions
Age. The number of complete 12-month periods that have elapsed since
the month the trees were set out or were grafted, whichever is later.
Age determination will be made for each unit, or portion thereof, as of
January 1 of each crop year.
Crop year. A period beginning with the date insurance attaches to
the macadamia tree crop extending through December 31 of the same
calendar year. The crop year is designated by the calendar year in which
insurance attaches.
Damaged. Injury to the main trunk, scaffold limb(s), and any other
subordinate limbs that reduces the productivity of the macadamia tree
due to an insured cause of loss that occurs during the insurance period.
Destroyed. Trees damaged to the extent that we determine
replacement, including grafts, is required.
Good farming practices. The cultural practices generally in use in
the county for the crop to have normal growth and vigor, and are those
recognized by the National Institute of Food and Agriculture as
compatible with agronomic and weather conditions in the area.
Graft. The uniting of a macadamia shoot to an established macadamia
tree rootstock for future production of macadamia nuts.
Interplanted. Acreage on which two or more crops are planted in any
form of alternating or mixed pattern.
Irrigated practice. A method by which the normal growth and vigor of
the insured trees is maintained by artificially applying adequate
quantities of water during the growing season by appropriate systems and
at the proper times.
Rootstock. The root and stem portion of a macadamia tree to which a
macadamia shoot can be grafted.
Scaffold limb. A major limb attached directly to the trunk.
[[Page 250]]
2. Unit Division
(a) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous land
or grown and insured under an organic farming practice, unless otherwise
allowed by written agreement.
(b) You must have provided records, which can be independently
verified, of acreage and age of trees for each unit for at least the
last crop year.
3. Insurance Guarantees, Coverage Levels, and Dollar Amounts for
Determining Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions (Sec. 457.8):
(1) You may select only one dollar amount of insurance for all the
macadamia trees in the county in each age group contained in the
actuarial table that are insured under this policy. The dollar amount of
insurance you choose for each age group must have the same percentage
relationship to the maximum dollar amount offered by us for each age
group. For example, if you choose 100 percent of the maximum dollar
amount of insurance for one age group, you must also choose 100 percent
of the maximum dollar amount of insurance for all other age groups.
(2) If the stand is less than 90 percent, based on the original
planting pattern, the dollar amount of insurance will be reduced 1
percent for each percent below 90 percent. For example, if the dollar
amount of insurance you selected is $2,000 and the stand is 85 percent
of the original stand, the dollar amount of insurance on which any
indemnity will be based is $1,900 ($2,000 multiplied by 0.95).
(3) You must report, by the sales closing date contained in the
Special Provisions, by type if applicable:
(i) Any damage, removal of trees, change in practices, or any other
circumstance that may reduce the dollar amount of insurance and the
number of affected acres;
(ii) The number of trees on insurable and uninsurable acreage;
(iii) The month and year on which the trees were set out or grafted
and the planting pattern;
(iv) For the first year of insurance following replacement, the
month and year of replacement if more than 10 percent of the trees on
any unit have been replaced in the previous five crop years; and
(v) For the first year of insurance for acreage interplanted with
another perennial crop, and any time the planting pattern of such
acreage is changed:
(A) The age of the interplanted crop, and type if applicable;
(B) The planting pattern; and
(C) Any other information that we request in order to establish your
dollar amount of insurance.
We will reduce the dollar amount of insurance as necessary, based on
our estimate of the effect of interplanted perennial crop, removal of
trees, damage, change in practices, and any other circumstance that
adversely affects the insured crop. If you fail to notify us of any
circumstance that may reduce your dollar amount of insurance from
previous levels, we will reduce your dollar amount of insurance as
necessary at any time we become aware of the circumstance.
(b) The production reporting requirements contained in section 3 of
the Basic Provisions (Sec. 457.8), do not apply to macadamia trees.
4. Contract Changes
In accordance with section 4 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 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are December 31.
6. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all macadamia trees in the county for which a
premium rate is provided by the actuarial table:
(a) In which you have a share;
(b) That are grown for the production of macadamia nuts;
(c) For which the rootstock is adapted to the area;
(d) That are at least one year of age when the insurance period
begins; and
(e) That, if the orchard is inspected, is considered acceptable by
us.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions
(Sec. 457.8) that prohibit, that prohibit insurance attaching to a crop
planted with another crop, macadamia trees 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 of the Basic
Provisions (Sec. 457.8):
(1) Coverage begins on January 1 of each crop year, except that for
the year of application, if your application is received after December
22 but prior to January 1, insurance will attach on the 10th day after
your properly completed application is received in
[[Page 251]]
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 December 31.
(b) In addition to the provisions of section 11 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 macadamia trees on or before the acreage reporting date for the crop
year, insurance will not be considered to have attached to, and no
premium or indemnity will be due 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 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 orchard;
(3) Earthquake;
(4) Volcanic eruption;
(5) Wildlife, unless proper measures to control wildlife have not
been taken; or
(6) Failure of irrigation water supply, if caused by an insured
cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions (Sec. 457.8), we will not insure against damage due to
disease or insect infestation, unless adverse weather:
(1) Prevents the proper application of control measures or causes
properly applied control measures to be ineffective; or
(2) Causes disease or insect infestation for which no effective
control mechanism is available.
10. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions, in case of damage or probable loss, if you intend to claim
an indemnity on any unit, you must allow us to inspect all insured
acreage before pruning any damaged trees, removing any damaged trees, or
removing any destroyed trees.
11. Settlement of Claim
(a) We will determine your loss on a unit basis.
(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 dollar amount of
insurance per acre for each age group;
(2) Totaling the results in section 11(b)(1);
(3) Determine the applicable percent of loss, which is calculated as
follows:
(i) Subtract the coverage level percent you elected from 100
percent;
(ii) Determine the actual percent of loss, which is determined as
follows:
(A) For destroyed trees, divide the number of trees destroyed by the
total number of trees and multiply by 100 to calculate the percent of
loss;
(B) For damaged trees:
(1) Divide the number of trees damaged by the total number of trees
(both damaged and undamaged) to calculate the amount of damage;
(2) Divide the number of damaged scaffold limbs by the total number
of scaffold limbs on each damaged tree to calculate the amount of damage
for each damaged tree;
(3) Total the results in (b)(3)(ii)(B)(2);
(4) Divide the result of (b)(3)(ii)(B)(3) by the number of damaged
trees;
(5) Multiply the result of (b)(3)(ii)(B)(1) by the result of
(b)(3)(ii)(B)(4), then multiply that result by 100 to calculate the
percent of loss; and
(C) Add the results of sections 11(b)(3)(ii)(A) and (B).
(iii) Subtract the result obtained in section 11(b)(3)(i) from
section 11(b)(3)(ii);
(iv) Divide the result in section 11(b)(3)(iii) by the coverage
level you elected (For example, if you elected the 75 percent coverage
level and your actual percent of loss was 70 percent, the percent of
loss specified in section 11(b)(3) would be calculated as follows: 100%-
75% = 25%; 70%-25% = 45%; 45% / 75% = 60%.);
(4) Multiply the result of section 11(b)(3) by the total dollar
amount of insurance obtained in section 11(b)(2); and
(5) Multiply the result in section 11(b)(4) by your share.
For example:
You select 65 percent coverage level and 100 percent of the price
election on 10 acres of 9-year-old macadamia trees in the unit.
[[Page 252]]
Your share is 100 percent. The amount of insurance per acre is $5,850.
There are 90 trees per unit. Thirty-five trees are destroyed. Your
indemnity would be calculated as follows:
(1) 10 acres x $5,850 = $58,500;
(3)(i) 100 percent - 65 percent = 35 percent deductible;
(ii) 35 destroyed trees / 90 total unit trees = 38.9 percent loss;
(iii) 38.9 percent loss - 35 percent deductible = 3.9 percent;
(iv) 3.9 percent / 65 percent coverage level = 6.0 percent loss;
(4) $58,500 total amount of insurance x 6.0 percent loss = $3,510
loss; and
(5) $3,510 loss x 100 percent share = $3,510 indemnity payment.
(c) The total amount of loss will include both damaged trees and
destroyed trees as follows:
(1) Any orchard with damage, destruction, or combined damage and
destruction, that results in a total percent of loss greater than 80
percent due to an insured cause of loss will be considered to be 100
percent damaged and/or destroyed; and
(2) Any percent of damage by uninsured causes will not be included
in the percent of loss.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 35668, July 2, 1997, as amended at 62 FR 65172, Dec. 10, 1997; 75
FR 15887, Mar. 30, 2010; 76 FR 4804, Jan. 27, 2011; 80 FR 20412, Apr.
16, 2015; 80 FR 48004, Aug. 11, 2015]
Sec. 457.131 Macadamia nut crop insurance provisions.
The macadamia nut crop insurance provisions for the 2024 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:
Macadamia Nut Crop Provisions
1. Definitions
Age. The number of complete 12-month periods that have elapsed since
the month the trees were set out or were grafted, whichever is later. An
age determination will be made for each unit, or portion thereof, as of
January 1 of each crop year.
Crop year. A period beginning with the date insurance attaches to
the macadamia nut crop and extending through the normal harvest time.
The crop year is designated by the calendar year in which the insurance
period ends.
Floaters. Inedible, husked ``field run'' nuts identified by water
flotation or laboratory testing.
Graft. The uniting of a macadamia shoot to an established macadamia
tree rootstock for future production of macadamia nuts.
Harvest. Picking of mature macadamia nuts from the ground.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Peewees. Mature and immature wet in-shell nuts that are smaller than
16 mm (5/8 inch) in diameter.
Pound. A unit of weight equal to 16 ounces avoirdupois.
Production guarantee (per acre). The number of wet, in-shell pounds
determined by multiplying the approved APH yield per acre by the
coverage level percentage you elect.
Rootstock. The root and stem portion of a macadamia tree to which a
macadamia shoot can be grafted.
Wet in-shell. The weight of the macadamia nuts as they are removed
from the orchard with the nut meats in the shells after removal of the
husk and excluding floaters and peewees but prior to being dried.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm number and by irrigated and
non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous land
or grown and insured under an organic farming practice, unless otherwise
allowed by written agreement.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election for all the macadamia
nuts in the county insured under this policy unless the actuarial
documents provide different price elections by type, in which case you
may select one price election for each macadamia nut type designated in
the actuarial documents. The price elections you choose for each type
must have the same percentage relationship to the maximum price offered
by us for each type. For example, if you choose 100 percent of the
maximum price election for one type, you must also choose 100 percent of
the maximum price election for all other types.
[[Page 253]]
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions (Sec. 457.8), by type if applicable:
(1) Any damage, removal of trees, 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 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 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.
(c) 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 orchard 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.
(d) Instead of reporting your macadamia nut production for the
previous crop year, as required by section 3 of the Basic Provisions,
there is a one-year lag period. Each crop year you must report your
production from two crop years ago, e.g., on the 2024 crop year
production report, you will provide your 2022 crop year production.
4. Contract Changes
In accordance with section 4 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 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are December 31.
6. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all macadamia nuts in the county for which a
premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown on tree varieties that:
(1) Were commercially available when the trees were set out;
(2) Are adapted to the area; and
(3) Are grown on a rootstock that is adapted to the area.
(c) That are grown in an orchard that, if inspected, is considered
acceptable by us;
(d) That are grown on trees that have reached at least the fifth
leaf year, including the fifth leaf year after grafting if grafting
occurs after set out, unless otherwise allowed by the Special
Provisions; and
(e) That are produced from blooms that normally occur during the
calendar year in which insurance attaches and that are normally
harvested prior to the end of the insurance period.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions
(Sec. 457.8) that prohibit insurance attaching to a crop planted with
another crop, macadamia nuts 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 of the Basic
Provisions (Sec. 457.8):
(1) Coverage begins on January 1 of each crop year, except that for
the year of application, if your application is received after December
22 but prior to January 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.
(2) The calendar date for the end of the insurance period for each
crop year is the second June 30th after insurance attaches, or as
specified in the Special Provisions.
(b) In addition to the provisions of section 11 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.
[[Page 254]]
(2) If you relinquish your insurable share on any insurable acreage
of macadamia nuts on or before the acreage reporting date for the crop
year, insurance will not be considered to have attached to, and no
premium or indemnity will be due 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 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 orchard;
(3) Earthquake;
(4) Volcanic eruption;
(5) Wildlife, unless proper measures to control wildlife have not
been taken; 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 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) Inability to market the macadamia nuts 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 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) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. 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 harvested for
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 or immediately if
damage is discovered during harvest, so that we may inspect the damaged
production. You must not destroy 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, we may consider all such production to be undamaged
and include it 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 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) Multiplying the insured acreage for each type, if applicable, by
its respective production guarantee;
(2) Multiplying each result in section 11(b)(1) by the respective
price election for each type, if applicable;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable (see section 11(c)), by the respective price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the results in section 11(b)(5) from the results in
section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
For example:
You select the 65 percent coverage level and 100 percent of the
price election on 10 acres of macadamia nuts in the unit. Your share is
100 percent. Your production guarantee (per acre) is 4,000 pounds. The
price election is $0.78. You are able to harvest 25,000 pounds. Your
indemnity would be calculated as follows:
(1) 10 acres x 4,000 pounds = 40,000 pounds guarantee;
[[Page 255]]
(2) 40,000 pounds x $0.78 price election = $31,200 total value of
guarantee;
(4) 25,000 pounds production to count x $0.78 price election =
$19,500 value of production to count;
(6) $31,200 total value of guarantee - $19,500 value of production
to count = $11,700 loss; and
(7) $11,700 loss x 100 percent share = $11,700 indemnity payment.
(c) The total production to count (wet in-shell pounds) 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 acceptable production records;
(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, 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) All harvested production from the insurable acreage.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 35664, July 2, 1997, as amended at 62 FR 65172, Dec. 10, 1997; 75
FR 15887, Mar. 30, 2010; 75 FR 59057, Sept. 27, 2010; 80 FR 20412, Apr.
16, 2015; 87 FR 38893, June 30, 2022; 87 FR 52853, Aug. 30, 2022]
Sec. 457.132 Cranberry crop insurance provisions.
The cranberry crop insurance provisions for the 2023 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
Cranberry Crop Provisions
1. Definitions
Barrel. 100 pounds of cranberries.
Harvest. Removal of the cranberries from the bog.
Market price. The cash price per barrel of cranberries offered by
buyers in the area in which you normally market the cranberries.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm number and by irrigated and
non-irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select only one price election for all the cranberries
in the county insured under this policy.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions (Sec. 457.8):
(1) Any damage, removal of vines, 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 age of the vines; and
(3) Any other information that we request in order to establish your
approved yield.
We will adjust the yield used to establish your production guarantee
as necessary, based on our estimate of the effect of the removal of
vines, damage, change in practices, and any other circumstance that may
affect the yield potential of the insured crop. If you fail to notify us
of any circumstance that may affect your yields from previous levels, we
will adjust your production guarantee as necessary at any time we become
aware of the circumstance.
4. Contract Changes
In accordance with section 4 of the Basic Provisions (Sec. 457.8),
the contract change date is August 31 preceding the cancellation date.
[[Page 256]]
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are November 20.
6. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the cranberries in the county for which a
premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown for harvest as cranberries;
(c) That are grown in a bog that, if inspected, is considered
acceptable by us; and
(d) That are grown on vines that have reached at least the fourth
leaf year unless otherwise provided by the Special Provisions.
7. Insurance Period
(a) In accordance with the provisions of section 11 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 bog.
(2) The calendar date for the end of the insurance period for each
crop year is November 20.
(b) In addition to the provisions of section 11 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 cranberries on or before the acreage reporting date for the crop
year, insurance will not be considered to have attached to, and no
premium or indemnity will be due 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.
8. Causes of Loss
(a) In accordance with the provisions of section 12 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 bog;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption;
(6) Failure of irrigation water supply, if caused by an insured
peril that occurs during the insurance period; or
(7) 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 failure or breakdown and repair or
replacement was not possible before damage occurred.
(b) In addition to the causes of loss excluded in section 12 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; or
(2) Inability to market the cranberries for any reason other than
actual physical damage from an insurable cause of loss 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.
9. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions (Sec. 457.8):
(a) If you discover damage, or if you intend to claim an indemnity
on any insured unit, you must give us notice of probable loss:
(1) At least 15 days before the beginning of any harvesting, or
(2) Immediately if probable loss is discovered after harvesting has
begun.
(b) You must not sell or dispose of any damaged production until the
earlier of 15 days from the date of notice of loss or when we give you
written consent to do so.
(c) 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.
[[Page 257]]
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 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 by its respective production
guarantee;
(2) Multiplying the result of section 10(b)(1) by the price
election;
(3) Multiplying the total production to be counted, (see section
10(c)) by the price election;
(4) Subtracting the total in section 10(b)(3) from the total in
section 10(b)(2); and
(5) Multiplying the result in section 10(b)(4) by your share.
(c) The total production to count (in barrels) 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) Damaged solely by uninsured causes;
(C) For which you fail to provide acceptable production records; or
(D) Destroyed or put to another use without our consent;
(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, the insurance period for that
acreage will end. If you do not agree with our appraisal, we will use
the appraised amount of production or defer the claim 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 to 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.
(3) Harvested production which, due to insurable causes, is
determined not to meet the United States Standards for Fresh Cranberries
if available, or would not meet those standards if properly handled, or
does not meet the quality requirements of the receiving handler if the
United States Standards for Fresh Cranberries, if not available, and
such harvested production has a value less than 75 percent of the market
price for cranberries meeting the minimum requirements will be adjusted
by:
(i) Dividing the value per barrel of such cranberries by the market
price per barrel for cranberries meeting the minimum requirements; and
(ii) Multiplying the result by the number of barrels of such
cranberries.
11. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 5905, Feb. 10, 1997, as amended at 62 FR 65172, Dec. 10, 1997; 87
FR 38894, June 30, 2022]
Sec. 457.133 Prune crop insurance provisions.
The Prune Crop Insurance Provisions for the 2023 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:
Prune Crop Provisions
1. Definitions
Harvest. Picking of mature prunes from the trees or ground either by
hand or machine.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Natural condition prunes. The condition of prunes in which they are
normally delivered from a dehydrator or dry yard.
Prunes. Any type or variety of plums that is grown in the area for
the production of prunes and that meets the requirements defined in the
applicable Federal Marketing Agreement Dried Prune Order.
Standard prunes. Any natural condition prunes:
(a) That grade ``C,'' ``U.S. Standard,'' or better in accordance
with the United States Standards for Grades of Dried Prunes; or
(b) That meet or exceed the grade standards in effect for the crop
year if a Federal Marketing Agreement Dried Prune Order has been
established for the area in which the insured crop is grown.
Ton. Two thousand (2,000) pounds avoirdupois.
[[Page 258]]
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable. Instead of
establishing optional units by section, section equivalent, or FSA farm
number optional units may be established if each optional unit is
located on non-contiguous land.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election for all the prunes in the
county insured under this policy unless the actuarial documents provide
different price elections by type, in which case you may select one
price election for each type designated in the actuarial documents. The
price elections you choose for each type must have the same percentage
relationship to the maximum price offered by us for each type. For
example, if you choose 100 percent of the maximum price election for one
type, you must also choose 100 percent of the maximum price election for
all other types.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions, by type if applicable:
(1) Any damage, removal of trees, change in practices, or any other
circumstance that may reduce the expected yields 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 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.
(c) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any such
situation listed in section 3(b) that may occur. If you fail to notify
us of any situation in section 3(b), we will reduce the yield used to
establish your production guarantee at any time we become aware of the
circumstance. If the situation in section 3(b) occurred:
(1) Before the beginning of the insurance period, the yield used to
establish your production guarantee will be reduced for the current crop
year regardless of whether the situation was due to an insured or
uninsured cause of loss;
(2) After the beginning of the insurance period and you notify us by
the production reporting date, the yield used to establish your
production guarantee will be reduced for the current crop year only if
the potential reduction in the yield used to establish your production
guarantee is due to an uninsured cause of loss; or
(3) After the beginning of the insurance period and you fail to
notify us by the production reporting date, an amount equal to the
reduction in the yield will be added to the production to count
calculated in section 11(c) due to uninsured causes when determining any
indemnity. We may reduce the yield used to establish your production
guarantee for the subsequent crop year to reflect any reduction in the
productive capacity of the trees.
(d) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that could or would reduce the yield of the insured crop
has occurred prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is October 31 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31.
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the prunes in the county for which a premium rate is
provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown for the production of natural condition prunes;
(c) That are grown on trees that:
(1) Are listed as insurable types in the Special Provisions;
(2) Are grown on rootstock that is adapted to the area;
(3) Are irrigated (except where otherwise provided in the Special
Provisions);
(4) Are grown in an orchard that, if inspected, is considered
acceptable by us; and
(5) Have reached at least the seventh leaf year.
7. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to a crop planted with another crop, prunes
interplanted with another perennial crop are insurable unless we inspect
the acreage and determine that it does not meet the insurability
requirements contained in your policy.
[[Page 259]]
8. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) For the year of application, coverage begins on March 1. For
each subsequent crop year the policy remains continuously in force,
coverage begins on the day immediately following the end of the
insurance period for the prior crop year. Policy cancellation that
results solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage.
(2) The calendar date for the end of the insurance period for each
crop year is:
(i) October 1 for California; or
(ii) October 15 for Oregon.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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 prunes on or before the acreage reporting date for the crop year and
if the acreage was insured by you the previous crop year, insurance will
not be considered to have attached to, and no premium or indemnity will
be due 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.
(c) If your prune policy is canceled or terminated for any crop
year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates, whichever is later, insurance will not be considered
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, 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 undergrowth have not been controlled or
pruning debris has not been removed from the orchard;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption;
(6) Failure of the irrigation water supply, if due to a cause
specified in section 9(a)(1) through (5) that occurs during the
insurance period;
(7) Insects, but not damage due to insufficient or improper
application of pest control measures; or
(8) Plant disease, but not damage due to insufficient or improper
application of disease control measures.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to inability to market the prunes 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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples in accordance with our
procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(1) You must notify us within 3 days of the date harvest should have
started if the crop will not be harvested.
(2) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. We will conduct an appraisal that will be used to determine
your production to count for production that is sold by direct marketing
or is sold as fresh fruit production. 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 harvested for direct marketing or sold as fresh fruit 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.
(3) If you intend to claim an indemnity on any unit, you must notify
us at least 15 days prior to the beginning of harvest, or immediately if
damage is discovered during harvest, so that we may inspect the damaged
production.
(4) You must not destroy 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.
[[Page 260]]
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 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 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 type, if applicable, by
its respective production guarantee;
(2) Multiplying the result of 11(b)(1) by the respective price
election for each type, if applicable;
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to count (see section 11(c)),
of each type, if applicable, by its respective price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the 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.
Example 1:
You select 75 percent coverage level, 100 percent of the price
election, and have a 100 percent share in 50.0 acres of type A prunes in
the unit. The approved yield is 2.5 tons per acre and your price
election is $1,000 per ton. You harvest 10.0 tons. Your indemnity would
be calculated as follows:
(1) 50.0 acres x 2.5 tons x 0.75 = 93.75-ton production guarantee;
(2) 93.75-ton guarantee x $1,000 price election = $93,750 value of
production guarantee;
(4) 10.0 tons x $1,000 price election = $10,000 value of production
to count;
(6) $93,750 - $10,000 = $83,750 loss; and
(7) $83,750 x 1.000 share = $83,750 indemnity payment.
Example 2:
In addition to the information in the first example, you have an
additional 50.0 acres of type B prunes with 100 percent share in the
same unit. The approved yield is 2.0 tons per acre and the price
election is $900 per ton. You harvest 5.0 tons. Your total indemnity for
both types A and B would be calculated as follows:
(1) 50.0 acres x 2.5 tons x 0.75 = 93.75-ton production guarantee
for type A and 50.0 acres x 2.0 x 0.75 tons = 75.0-ton production
guarantee for type B;
(2) 93.75-ton guarantee x $1,000 price election = $93,750 value of
production guarantee for type A and 75.0-ton guarantee x $900 price
election = $67,500 value production guarantee for type B;
(3) $93,750 + $67,500 = $ 161,250 total value of production
guarantee;
(4) 10.0 tons x $1,000 price election = $10,000 value of production
to count for type A and 5.0 tons x $900 price election = $4,500 value of
production to count for type B;
(5) $10,000 + $4,500 = $14,500 total value of production to count;
(6) $161,250 - $14,500 = $146,750 loss; and
(7) $146,750 loss x 1.000 share = $146,750 indemnity payment.
(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 or sold as fresh fruit 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 acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production that meets the definition of standard
prunes; 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 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 that:
(i) Meets the definition of standard prunes;
(ii) Is intended for use as fresh fruit;
(iii) Is sold as standard prunes; or
(iv) Is damaged due to uninsured causes.
(d) Any prune production harvested for fresh fruit will be converted
to a dried prune weight basis by dividing the total amount (in tons) of
fresh fruit production by 3.0.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 58630, Oct. 30, 1997, as amended at 62 FR 65172, Dec. 10, 1997;
65 FR 47839, Aug. 4, 2000; 77 FR 59048, Sept. 26, 2012; 87 FR 38894,
June 30, 2022]
[[Page 261]]
Sec. 457.134 Peanut crop insurance provisions.
The Peanut Crop Insurance Provisions for the 2017 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.
Peanut Crop Insurance Provisions.
1. Definitions
Base contract price. The price for farmers' stock peanuts stipulated
in the sheller contract, without regard to discounts or incentives that
may apply, not to exceed the price election times the price factor
specified in the Special Provisions.
Farmers' stock peanuts. Picked or threshed peanuts produced in the
United States, which are not shelled, crushed, cleaned, or otherwise
changed (except for removal of foreign material, loose shelled kernels
and excess moisture) from the condition in which peanuts are customarily
marketed by producers.
Green peanuts. Peanuts that are harvested and marketed prior to
maturity without drying or removal of moisture either by natural or
artificial means.
Handler. A person who is a sheller, a buying point, a marketing
association, or has a contract with a sheller or a marketing association
to accept all of the peanuts marketed through the marketing association
for the crop year. The handler acquires peanuts for resale, domestic
consumption, processing, exportation, or crushing through a business
involved in buying and selling peanuts or peanut products.
Harvest. The completion of digging and threshing and removal of
peanuts from the field.
Marketing association. A cooperative approved by the Secretary of
the United States Department of Agriculture to administer payment
programs for peanuts.
Planted acreage. In addition to the requirement in the definition in
the Basic Provisions, peanuts must initially be planted in a row pattern
which permits mechanical cultivation, or that allows the peanuts to be
cared for in a manner recognized by agricultural experts as a good
farming practice. Acreage planted in any other manner will not be
insurable unless otherwise provided by the Special Provisions or by
written agreement.
Price election. In addition to the definition in the Basic
Provisions, the price election for peanuts insured in accordance with a
sheller contract will be the base contract price specified in the
sheller contract.
Price factor. The factor specified in the Special Provisions that
places limits on the base contract price.
Sheller. Any business enterprise regularly engaged in processing
peanuts for human consumption; that possesses all licenses and permits
for processing peanuts 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 contracted peanuts within a
reasonable amount of time after harvest.
Sheller contract. A written agreement between the producer and a
sheller, or the producer and a handler, containing at a minimum:
(a) The producer's commitment to plant and grow peanuts, and to
deliver the peanut production to the sheller or handler;
(b) The sheller's or handler's commitment to purchase all the
production stated in the sheller contract (an option to purchase is not
a commitment); and
(c) A base contract price.
If the agreement fails to contain any of these terms, it will not be
considered a sheller contract.
2. Unit Division
In accordance with the Basic Provisions, basic and optional units
are applicable, unless limited by the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) The price election percentage you choose for peanuts which are
not insured in accordance with a sheller contract (may also include
peanuts in excess of the amount required to fulfill your sheller
contract) and for peanuts insured in accordance with a sheller contract
must have the same percentage relationship to the maximum price election
offered by us for peanuts not insured in accordance with a sheller
contract. For example, if you choose 100 percent of the maximum price
election for peanuts not insured in accordance with a sheller contract,
you must also choose 100 percent of the applicable price election for
peanuts insured in accordance with a sheller contract.
(b) You may not insure more pounds of peanuts than your production
guarantee (per acre) multiplied by the number of acres that will be
planted to peanuts. For the purposes of determining the guarantee,
premiums, indemnities, replant payments, and prevented planting
payments:
(1) Where all production of peanuts is grown under one or more
sheller contracts, you may elect a price election to cover all insurable
peanuts that is the base contract
[[Page 262]]
price contained in such sheller contracts or the price contained in the
Special Provisions.
(2) Where some peanuts are grown under one or more sheller contracts
but some peanuts are not grown under a sheller contract, you may elect:
(i) The price election contained in the Special Provisions to cover
all insurable peanuts; or
(ii) The price election using the base contract price for peanuts
grown under a sheller contract and the price contained in the Special
Provisions for peanuts not grown under a sheller contract.
(3) Where none of the peanuts are grown under a sheller contract,
the price election will be the price contained in the Special
Provisions.
(c) Any peanuts excluded from the sheller contract at any time
during the crop year will be insured at the price election specified in
the Special Provisions.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State and county Dates
------------------------------------------------------------------------
Jackson, Victoria, Golliad, Bee, Live January 15.
Oak, McMullen, La Salle, and Dimmit
Counties, Texas and all Texas Counties
lying south, thereof.
El Paso, Hudspeth, Culberson, Reeves, February 28.
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
south and east thereof; and all other
states, except New Mexico, Oklahoma,
and Virginia.
New Mexico; Oklahoma; Virginia; and all March 15.
other Texas counties.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must provide a copy of all sheller contracts to us on or
before the acreage reporting date if you wish to insure your peanuts in
accordance with your sheller contract.
7. [Reserved]
8. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the peanuts in the county for which a premium rate
is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for the purpose of marketing as farmers' stock
peanuts;
(3) That are a type of peanut designated in the Special Provisions
as being insurable;
(4) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Planted for the purpose of harvesting as green peanuts;
(ii) Interplanted with another crop; or
(iii) Planted into an established grass or legume; and
(5) Whether or not the peanuts are grown in accordance with a
sheller contract (if not grown in accordance with the sheller contract,
the peanuts will be valued at the price election issued by FCIC for the
purposes of determining the production guarantee, premium, and
indemnity).
(b) You will be considered to have a share in the insured crop if,
under the sheller contract, you retain control of the acreage on which
the peanuts are grown, you are at risk of a production loss, and the
sheller contract provides for delivery of the peanuts to the sheller or
handler and for a stipulated base contract price.
(c) A peanut producer who is also a sheller or handler may establish
an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the sheller or handler must execute and adopt a resolution
that contains the same terms as a sheller contract. Such resolution will
be considered a sheller contract under this policy; and
(3) Our inspection reveals that the processing facilities comply
with the definition of a sheller contained in these Crop Provisions.
9. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) Any acreage of the insured crop damaged before the final
planting date, to the extent that the majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that replanting is not practical.
(b) We will not insure any acreage:
(1) On which peanuts are grown using no-till or minimum tillage
farming methods unless allowed by the Special Provisions or written
agreement; or
(2) Which does not meet the rotation requirements, if any, contained
in the Special Provisions.
[[Page 263]]
10. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is the
date immediately following planting as follows:
(a) November 30 in all states except New Mexico, Oklahoma, and
Texas; and
(b) December 31 in New Mexico, Oklahoma, and Texas.
11. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during 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 due to a cause of
loss contained in section 11(a) through (g) that occurs during the
insurance period.
12. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these Crop Provisions;
(2) Except as specified in section 12(a)(1), you must comply with
all requirements regarding replanting payments contained in section 13
of the Basic Provisions; and
(3) The insured crop 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 and it is practical
to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of:
(1) 20.0 percent of the production guarantee, multiplied by your
price election, multiplied by your share; or
(2) $80.00 multiplied by your insured share.
(c) If there are different base contract prices or you also have
insurable peanuts not grown under a contract:
(1) If the sheller contracts are for different types of peanuts or
one type of peanut is grown under a sheller contract and another is not,
replanting payments will be valued using the price election elected by
you for the planted acreage, as applicable (For an example, you have two
sheller contracts and the base contract price is $0.23 per pound for
Runner type peanuts, then $0.23 per pound will be used for the value of
any replanted Runner type peanut acreage. If the base contract price is
$0.21 per pound for Spanish type peanuts, then $0.21 per pound will be
used for the value of any replanted Spanish type peanut acreage.
(2) If the sheller contracts are for the same type of peanuts but
they have different base contract prices:
(i) If the peanuts under each sheller contract are insured in
separate optional units, each respective price election from each
sheller contract will apply to each respective unit; or
(ii) If all or some of peanuts under both sheller contracts are
insured in the same unit, then the replanted acreage will be prorated to
each contract based on the number of acres needed to fulfill each
contract (For example, if there are 20 acres in the unit and 10 were
replanted, the production guarantee per acre for the unit is 2,000
pounds per acre, and the contract for $0.23 was for 25,000 pounds and
the contract for $0.21 was for 15,000 pounds, then the acreage under the
$0.23 contract constitutes 62.5 percent of the acreage in the unit
(25,000/40,000) and the other sheller contract 37.5 percent of the
acreage (15,000/40,000). Of the 10 acres replanted, 6.25 acres (10 x
.625) would be paid at the $0.23 price election and 3.75 acres (10 x
.375) would be paid at the $0.21 price election).
(3) If the peanuts are not grown under a contract, the replanting
payments will be valued using the price election as specified in the
Special Provisions. If the unit has peanuts grown under a sheller
contract and peanuts not grown under a sheller contract, the replanted
acreage must be prorated between the contract and non-contract acreage
by determining the acreage grown under a contract and the remaining
acreage in the unit (For example, if there are 20 acres in the unit and
10 were replanted, the production guarantee per acre for the unit is
2,000 pounds per acre, there is a sheller contract for $0.23 for 25,000
pounds, the remaining peanuts are not grown under a sheller contract,
and the price election in the Special Provisions is for $0.20. The
peanuts under the sheller contract constitute 62.5 percent (25,000/
40,000) of the acreage in the unit and remaining peanuts constitute 37.5
percent (40,000-25,000/40,000) of the acreage. Of the 10 acres
replanted, 6.25 acres (10 x .625) would be paid with the liability based
on the $0.23 price election and 3.75 acres (10 x .375) would be paid
with the liability based on the $0.20 price election).
(d) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
[[Page 264]]
(e) Replanting payments will be calculated using your price election
and production guarantee for the crop type that is replanted and
insured. A revised acreage report will be required to reflect the
replanted type, if applicable.
13. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
14. 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 for the harvested acreage for the
unit.
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the number of insured acres by the respective
production guarantee (per acre) for peanuts insured under a sheller
contract or not insured under a sheller contract, as applicable;
(2) Multiplying each result of section 14(b)(1) by the applicable
price election for peanuts insured at the base contract price or the
price election specified in the Special Provisions, as applicable;
(3) Totaling the results of section 14(b)(2);
(4) Multiplying the production to count by the respective price
election (If you have one or more sheller contracts, we will value your
production to count by using your highest price election first and will
continue in decreasing order to your lowest price election based on the
amount of peanuts insured at each price election);
(5) Totaling the results of section 14(b)(4);
(6) Subtracting the result of section 14(b)(5) from the result of
section 14(b)(3); and
(7) Multiplying the result in section 14(b)(6) by your share.
Example 1 (without a sheller contract):
You have 100 percent share in 25 acres of Valencia peanuts in the
unit, with a production guarantee (per acre) of 2,000 pounds, the price
election specified in the Special Provisions is $0.17 per pound, and
your production to count is 43,000 pounds.
(1) 25 acres x 2,000 pounds = 50,000 pound guarantee;
(2) 50,000 pound guarantee x $0.17 price election specified in the
Special Provisions = $8,500.00 guarantee;
(3) 43,000 pounds of production to count x $0.17 price election
specified in the Special Provisions = $7,310.00;
(4) $8,500.00 guarantee-$7,310.00 = $1,190.00; and
(5) $1,190.00 x 1.000 = $1,190.00; Indemnity = $1,190.00.
Example 2 (with a sheller contract):
You have 100 percent share in 25 acres of Valencia peanuts in the
unit, with a production guarantee (per acre) of 2,000 pounds. You have
two sheller contracts, the first is for 25,000 pounds, price election
(contract) is $0.23 per pound, and the second is for 10,000 pounds,
price election (contract) is $0.21 per pound. The price election (non-
contract) specified in the Special Provisions is $0.17 per pound, and
your production to count is 43,000 pounds.
(1) 25 acres x 2,000 pounds = 50,000 pound guarantee;
(2) 25,000 pounds contracted x $0.23 price election (contract) =
$5,750.00;
10,000 pounds contracted x $0.21 price election (contract) =
$2,100.00;
50,000 pound guarantee-25,000 pounds contracted-10,000 pounds
contracted = 15,000 pounds not contracted;
15,000 pounds not contracted x $0.17 price election (non-contract)
specified in the Special Provisions = $2,550.00;
(3) $5,750.00 + $2,100.00 + $2,550.00 = $10,400.00 guarantee;
(4) 43,000 pounds of production to count:
25,000 pounds contracted x $0.23 price election (contract) =
$5,750.00;
10,000 pounds contracted x $0.21 price election (contract) =
$2,100.00;
43,000 pounds of production to count-25,000 pounds contracted (at
$0.23 per pound)-10,000 pounds contracted (at $0.21 per pound) = 8,000
pounds;
8,000 pounds x $0.17 price election (non-contract) specified in the
Special Provisions = $1,360.00;
(5) $5,750.00 + $2,100.00 + $1,360.00 = $9,210.00;
(6) $10,400.00 guarantee-$9,210.00 = $1,190.00; and
(7) $1,190.00 x 1.000 = $1,190.00;
Indemnity = $1,190.00.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include all appraised and harvested production.
(d) All appraised production will include:
(1) Not less than the production guarantee for acreage:
(i) That is abandoned;
(ii) Put to another use without our consent;
(iii) Damaged solely by uninsured causes; or
(iv) For which you fail to provide production records that are
acceptable to us.
(2) Production lost due to uninsured causes;
(3) Unharvested production (mature unharvested production may be
adjusted for quality deficiencies and excess moisture in accordance with
section 14(e));
[[Page 265]]
(4) 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 the acreage
will end when you put the acreage to another use or abandon the crop. If
agreement on the appraised amount of production is not reached:
(i) 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 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
(ii) 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
(5) All harvested production from the insurable acreage.
(e) Mature peanuts may be adjusted for quality when production has
been damaged by an insured cause of loss.
(1) To enable us to determine the number of pounds, price per pound,
and the quality of production for any peanuts that qualify for quality
adjustment, we must be given the opportunity to have such peanuts
inspected and graded before you dispose of them.
(2) 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 number of pounds, price per pound, and quality of such
peanuts.
(3) Such production to count will be reduced if the price per pound
received for damaged peanuts is less than 85 percent of the price
election by:
(i) Dividing the price per pound for the damaged peanuts, as
determined by us in accordance with section 14(e)(1), received for the
insured type of peanuts by the applicable price election; and
(ii) Multiplying this result by the number of pounds of such
production.
15. Prevented Planting
(a) Your prevented planting coverage will be a percentage specified
in the actuarial documents of your production guarantee for timely
planted acreage. If you have additional levels of coverage and pay an
additional premium, you may increase your prevented planting coverage if
such additional coverage is specified in the actuarial documents.
(b) In addition to the provisions of section 17(i) of the Basic
Provisions, if there are different base contract prices or you also have
insurable peanuts not grown under a contract:
(1) If the sheller contracts are for different types of peanuts or
one type of peanut is grown under a sheller contract and another is not,
the liability will be determined using the price election elected by you
for planted acreage, as applicable (For an example, you have two sheller
contracts and the base contract price is $0.23 per pound for Runner type
peanuts, then $0.23 per pound will be used for the value of any
prevented planting Runner type peanut acreage. If the base contract
price is $0.21 per pound for Spanish type peanuts, then $0.21 per pound
will be used for the value of any prevented planting Spanish type peanut
acreage.
(2) If the sheller contracts are for the same type of peanuts but
they have different base contract prices:
(i) If the peanuts grown under each sheller contract are insured in
separate optional units, the liability will be determined using each
respective price election for the prevented planting acreage in each
respective unit; or
(ii) If all or some of the peanuts grown under the sheller contracts
are insured in the same unit, then the liability for each contract must
be determined separately using the respective price election and the
number of eligible prevented planting acres to which the liability
applies and will be determined by prorating prevented planting acreage
to each contract based on the number of acres needed to fulfill each
contract (For example, if there are 20 acres in the unit and 10 were
prevented from planting, the production guarantee per acre for the unit
is 2,000 pounds per acre, and the contract for $0.23 was for 25,000
pounds and the contract for $0.21 was for 15,000 pounds, then the
acreage under the $0.23 contract constitutes 62.5 percent (25,000/
40,000) of the acreage in the unit and the other contract 37.5 percent
(15,000/40,000) of the acreage. Of the 10 acres prevented from planting,
6.25 acres (10 x .625) would be paid with the liability based on the
$0.23 price election and 3.75 acres (10 x .375) would be paid with the
liability based on the $0.21 price election).
(3) If the peanuts are not grown under a contract, the liability for
such peanuts will be based on the price election as specified in the
Special Provisions. If the unit has peanuts grown under a sheller
contract and peanuts not grown under a sheller contract, the eligible
prevented planting acreage must be determined by determining the acreage
[[Page 266]]
grown under a contract and the remaining acreage in the unit (For
example, if there are 20 acres in the unit and 10 were prevented from
planting, the production guarantee per acre for the unit is 2,000 pounds
per acre, there is a sheller contract for $0.23 for 25,000 pounds, the
remaining peanuts are not grown under a sheller contract, and the price
election in the Special Provisions is for $0.20. The peanuts under the
sheller contract constitute 62.5 percent (25,000/40,000) of the acreage
in the unit and remaining peanuts constitute 37.5 percent (40,000-
25,000/40,000) of the acreage. Of the 10 acres prevented from planting,
6.25 acres (10 x .625) would be paid with the liability based on the
$0.23 price election and 3.75 acres (10 x .375) would be paid with the
liability based on the $0.20 price election).
[71 FR 55997, Sept. 26, 2006, as amended at 81 FR 84399, Nov. 23, 2016]
Sec. 457.135 Onion crop insurance provisions.
The Onion Crop Insurance Provisions for the 2023 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:
Onion Crop Provisions
1. Definitions
Damaged onion production. Storage type onions that do not grade U.S.
No. 1 or do not satisfy any other standards that may be contained in the
Special Provisions; or non-storage type onions which do not satisfy
standards contained in any applicable marketing order or other standards
that may be contained in the Special Provisions.
Direct seeded. Onions planted by placing onion seed by machine or by
hand at the correct depth, into a seedbed that has been properly
prepared for the planting method and production practice.
Harvest. Removal of the onions from the field after topping and
lifting or digging.
Hundredweight. 100 pounds avoirdupois.
Lifting or digging. A pre-harvest process in which the onion roots
are severed from the soil and the onion bulbs laid on the surface of the
soil for drying in the field.
Non-storage onions. Onions of a Bermuda, Granex, or Grano variety,
or hybrids developed from these varieties, that are harvested as a bulb
and dried only a short time, and consequently have a higher moisture
content. They are thinner skinned, contain a higher sugar content, and
are milder in flavor than storage onions. Due to a higher moisture and
sugar content, they are subject to deterioration both on the surface and
internally if not used shortly after harvest.
Onion production. Onions of recoverable size and condition, with
excess dirt and foliage material removed and that are not considered
damaged onion production.
Planted acreage. In addition to the definition contained in the
Basic Provisions, onions, including sets, must be direct seeded in rows
or transplanted in rows.
Processor. Any business enterprise regularly engaged in buying and
processing onions, that possesses all licenses and permits for
processing onions 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 contracted onions within a
reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, containing at a minimum:
(a) The producer's commitment to plant and grow onions of the types
designated in the Special Provisions and to deliver the onion production
to the processor;
(b) The processor's commitment to purchase all the production from a
specified number of acres or the specified quantity of onion production
stated in the processor contract; and
(c) The price that will be paid for the production.
Production guarantee (per acre). In lieu of the definition contained
in section 1 of the Basic Provisions, the production guarantee will be
determined by stage as follows:
(a) First stage production guarantee--Forty-five percent (45%) of
the final stage production guarantee for direct seeded and transplanted
storage and non-storage onions, unless otherwise specified in the
Special Provisions.
(b) Second stage production guarantee--Seventy percent (70%) of the
final stage production guarantee for direct seeded storage onions and 60
percent (60%) of the final stage production guarantee for transplanted
storage onions and all non-storage onions, unless otherwise specified in
the Special Provisions.
(c) Final stage production guarantee--The quantity of onions (in
hundredweight) determined by multiplying the approved yield per acre by
the coverage level percentage you elect.
Sets. Onion bulbs that are planted by hand or by machine.
Storage onions. Onions, other than a Bermuda, Granex, or Grano
variety, or hybrids developed from these varieties, that are harvested
as a bulb and dried to a lower moisture content, are firmer, have more
outer
[[Page 267]]
layers of paper-like skin, and are darker in color than non-storage
onions. They are more pungent, have a lower sugar content, and can be
stored for several months under proper conditions prior to use without
deterioration.
Topping. A pre-harvest process to initiate curing, in which onion
foliage is removed or broken.
Transplanted. Onions planted by placing of the onion plant or sets,
by machine or by hand at the correct depth, into a seedbed that has been
properly prepared for the planting method and production practice.
2. Unit Division
In addition to the requirements of section 34 of the Basic
Provisions, optional units may be established by type, if separate types
are designated in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
(a) In addition to the requirements of section 3 of the Basic
Provisions (Sec. 457.8), you may select only one price election for all
the onions in the county insured under this policy unless the actuarial
documents provide different price elections by type, in which case you
may select one price election for each onion type designated in the
actuarial documents. The price elections you choose for each type must
have the same percentage relationship to the maximum price offered by us
for each type. For example, if you choose 100 percent of the maximum
price election for one type, you must also choose 100 percent of the
maximum price election for all other types.
(b) Your production guarantee progresses, in stages, to the final
stage production guarantee. Stages will be determined on an acre basis.
At least 75 percent (75%) of the plants on such acreage must be at the
same stage to qualify for the first and second stages. The stages are as
follows:
(1) First stage extends:
(i) For direct seeded storage and non-storage onions, from planting
until the emergence of the fourth leaf; and
(ii) For transplanted storage and non-storage onions, from
transplanting of onion plants or sets through the 30th day after
transplanting.
(2) Second stage extends:
(i) For direct seeded storage and non-storage onions, from the
emergence of the fourth leaf until eligible for the final stage; and
(ii) For transplanted storage and non-storage onions, from the 31st
day after transplanting of onion plants or sets until eligible for the
final stage.
(3) Final stage extends from the completion of topping and lifting
or digging on the acreage until the end of the insurance period.
(c) Any acreage of onions damaged in the first or second stage, to
the extent that the majority of producers in the area would not normally
further care for the onions, will have a production guarantee for
indemnity purposes, based on the stage in which the damage occurred,
even if you continue to care for the damaged onions.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is:
(a) June 30 preceding the cancellation date for counties with an
August 31, September 30, or November 30 cancellation date;
(b) November 30 preceding the cancellation date for counties with a
February 1 cancellation date; or
(c) As designated in the Special Provisions.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are as follows, unless otherwise
designated in the Special Provisions:
------------------------------------------------------------------------
State & county Cancellation date Termination date
------------------------------------------------------------------------
Arizona; Georgia; Uvalde August 31........... August 31.
County, Texas, and all
Texas Counties lying south
thereof.
Umatilla County, Oregon; and August 31........... September 30.
Walla Walla County,
Washington.
All California Counties, September 30........ September 30.
except Lassen, Modoc, and
Shasta.
All other states and February 1.......... February 1.
counties.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
if the Special Provisions require a processor contract to insure your
onions, you must provide a copy of all your processor contracts to us on
or before the acreage reporting date.
7. Annual Premium
In lieu of the provisions of section 7(c) 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
documents.
[[Page 268]]
8. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the storage and non-storage onions (excluding green
(bunch) or seed onions, chives, garlic, leeks, shallots, and scallions)
in the county for which a premium rate is provided by the actuarial
documents:
(a) In which you have a share;
(b) That are planted for harvest as either storage onions or non-
storage onions;
(c) That are not (unless allowed by the Special Provisions or by
written agreement):
(1) Interplanted with another crop, unless the onions are
interplanted with a windbreak crop and the windbreak crop is destroyed
within 70 days after completion of seeding or transplanting; or
(2) Planted into an established grass or legume.
9. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions
(Sec. 457.8), we will not insure any acreage of the insured crop that:
(a) Was planted the previous year to storage or non-storage onions,
green (bunch) onions, seed onions, chives, garlic, leeks, shallots, or
scallions unless different rotation requirements are designated in the
Special Provisions or a written agreement insures such acreage; or
(b) Is damaged before the final planting date to the extent that the
majority of producers in the area would normally not further care for
the crop and is not replanted, unless we agree that it is not practical
to replant.
10. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions (Sec. 457.8), the acreage must be planted on or before the
final planting date designated in the Special Provisions except as
allowed in section 16 of the Basic Provisions.
(b) In accordance with the provisions of section 11 of the Basic
Provisions, unless otherwise designated in the Special Provisions, the
insurance period ends at the earliest of:
(1) The calendar date for the end of the insurance period as
follows:
(i) May 20 for 1015 Super Sweets, and any other non-storage onions
in Cameron, Hidalgo, Starr, and Willacy Counties, Texas;
(ii) June 1 for Vidalia, and any other non-storage onions planted in
the state of Georgia;
(iii) June 30 for all storage and non-storage onions in Arizona;
(iv) July 15 for 1015 Super Sweets, and any other non-storage onions
for all Texas counties except Cameron, Hidalgo, Starr, and Willacy;
(v) July 31 for fall planted non-storage onions in Oregon and
Washington;
(vi) August 31 for all non-storage onions not otherwise specified;
and
(vii) October 15 for all storage onions not otherwise specified; or
(2) In addition to the requirements of section 11(b) of the Basic
Provisions, fourteen days after lifting or digging.
11. Causes of Loss
(a) In accordance with the provisions of section 12 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;
(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, unless control measures have not been taken;
(6) Earthquake;
(7) Volcanic eruption; or
(8) 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 not insured against as listed
in section 12 of the Basic Provisions (Sec. 457.8), we will not insure
against any loss of production due to damage that occurs or becomes
evident after the end of the insurance period, including, but not
limited to, loss of production that occurs after onions have been placed
in storage.
12. Replanting Payment
(a) In accordance with section 13 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 of the final stage production guarantee for
the acreage and we determine that it is practical to replant.
(b) The maximum amount of the replanting payment per acre will be
your actual cost for replanting, but will not exceed the lesser of:
(1) 7 percent of the final stage production guarantee multiplied by
your price election for the type originally planted and by your insured
share; or
(2) 18 hundredweight multiplied by your price election for the type
originally planted and by your insured share.
(c) When onions are 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. The premium amount will not be
reduced.
[[Page 269]]
13. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 of the Basic
Provisions, any representative samples of the crop that may be required
must be at least 10 feet wide and extend the entire length of each field
in the unit. The samples must not be topped, lifted, dug, harvested or
destroyed until the earlier of our inspection or 15 days after harvest
of the balance of the unit is completed.
(b) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. 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 harvested for
direct marketing will result in an appraised amount of production to
count that is not less than the production guarantee per acre if such
failure results in our inability to make the required appraisal.
14. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event you
are unable to provide production records:
(1) For any optional units, we will combine all optional units for
which acceptable 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) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying each result of section 14(b)(1) by the respective
price election;
(3) Totaling the results in section 14(b)(2);
(4) Multiplying the total production to be counted (see section
14(c)) by the respective price elections you chose;
(5) Totaling the results of section 14(b)(4);
(6) Subtracting the result in section 14(b)(5) from the result in
14(b)(3); and
(7) Multiplying the result in section 14(b)(6) by your share.
For Example:
You have a 100 percent share in 100 acres of a unit of transplanted
storage onions with a production guarantee of 200 hundredweight per
acre, and you select 100 percent of the price election of $20.00 per
hundredweight. Your crop suffers a covered cause of loss on 25 acres
during the second stage which has a second stage production guarantee of
60 percent of the final stage production guarantee which equals 120
hundredweight per acre. The appraised production on the 25 acres was
2,500 hundredweight of onion production. Your harvested onion production
on the remaining 75 acres is 16,000 hundredweight of harvested
production to count. Your indemnity will be calculated as follows:
(1) 25 acres x 120 hundredweight (200 x .60) second stage production
guarantee = 3,000 hundredweight, and 75 acres x 200 hundredweight final
stage production guarantee = 15,000 hundredweight;
(2) 3,000 hundredweight second stage production guarantee x $20.00
price election = $60,000 value of second stage production guarantee, and
15,000 hundredweight final stage production guarantee x $20.00 price
election = $300,000 value of final stage production guarantee;
(3) $60,000 value of second stage production guarantee + $300,000
value of final stage production guarantee = $360,000 total value of
production guarantee;
(4) 500 hundredweight second stage production to count (from step 4
of the section 14(c)(1)(iv) example) x $20.00 price election = $10,000
value of second stage production to count, and 16,000 hundredweight
final stage production to count x $20.00 price election = $320,000 value
of final stage production to count;
(5) $10,000 value of second stage production to count + $320,000
value of final stage production to count = $330,000 total value of
production to count;
(6) $360,000 total value of production guarantee - $330,000 total
value of production to count = $30,000 value of loss; and
(7) $30,000 x 100 percent share = $30,000 indemnity payment.
(c) The total production (in hundredweight) 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) That is direct marketed to consumers if you fail to meet the
requirements contained in section 13;
(C) Put to another use without our consent;
(D) That is damaged solely by uninsured causes; or
(E) For which you fail to provide production records that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested onion production (mature unharvested production
may be adjusted based on the percent of damaged onion production in
accordance with section 14(d));
(iv) For acreage that does not qualify for the final stage
production guarantee, and is not subject to section 14 (c)(1)(i) and
(ii), the appraised production is reduced by the difference between the
first or second stage (as applicable) and the final stage production
guarantee; and
[[Page 270]]
For Example:
You have 100 acres of a unit of transplanted storage onions with a
production guarantee of 200 hundredweight per acre. Your crop suffers a
covered cause of loss on 25 acres during the second stage which has a
second stage production guarantee of 60 percent of the final stage
production guarantee. The appraised production on the 25 acres was 2,500
hundredweight of onion production. Your second stage production to count
on the 25 acres will be calculated as follows:
(1) 25 acres x 200 hundredweight final stage production guarantee =
5,000 hundredweight final stage production guarantee,
(2) 5,000 hundredweight final stage production guarantee x 60
percent second stage production guarantee = 3,000 hundredweight second
stage production guarantee,
(3) 5,000 hundredweight final stage production guarantee -3,000
hundredweight second stage production guarantee = 2,000 hundredweight
difference between second stage and final stage production guarantee,
and
(4) 2,500 hundredweight appraised -2,000 hundredweight difference =
500 hundredweight second stage production to count (for step 4 of the
section 14(b) example).
(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.
(vi) 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 onion production or
appraisals from the samples at the time harvest should have occurred. If
you do not leave the required samples intact, or 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 onion
production, or our reappraisal if additional damage occurs and the crop
is not harvested.
(2) All harvested onion production from the insurable acreage.
(d) If the damage to harvested or unharvested onion production
exceeds the percentage shown in the Special Provisions for the type, no
production will be counted for that unit or portion of a unit unless
such damaged onion production from that acreage is sold. If sold, the
hundredweight of production to be counted will be adjusted by dividing
the price received for the damaged onion production by the price
election and multiplying the resulting factor times the hundredweight
sold.
(e) The extent of any damaged onion production must be determined
not later than the time onions are placed in storage if the production
is stored prior to sale, or the date the onions are delivered to a
packer, processor, or other handler if production is not stored.
15. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your final stage production guarantee for
timely planted acreage. Additional prevented planting coverage levels
are not available for onions.
[62 FR 28613, May 27, 1997, as amended at 62 FR 65173, Dec. 10, 1997; 64
FR 33385, June 23, 1999; 75 FR 15887, Mar. 30, 2010; 77 FR 13965, Mar.
8, 2012; 81 FR 84399, Nov. 23, 2016; 87 FR 38895, June 30, 2022; 87 FR
52853, Aug. 30, 2022]
Sec. 457.136 Tobacco crop insurance provisions.
The Tobacco Crop Insurance Provisions for the 2017 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:
Tobacco Crop Insurance Provisions
1. Definitions.
Average value. For appraised production, the value of such
production divided by the appraised pounds for the tobacco types. For
harvested production, the value of such production divided by the
harvested pounds for the tobacco type.
Basic unit. In lieu of the definition in the Basic Provisions, a
basic unit is all insurable acreage of an insurable type of tobacco in
the county in which you have a share on the date of planting for the
crop year and that is indentified by a single FSA farm serial number at
the time insurance first attaches under these provisions for the crop
year.
Harvest. Cutting or priming and removing all insured tobacco from
the unit.
Hydroponic plants. Seedlings grown in liquid nutrient solutions.
Late planting period. In lieu of the definition in section 1 of the
Basic Provisions, the period that begins the day after the final
planting date for the insured crop and ends
[[Page 271]]
15 days after the final planting date, unless otherwise specified in the
Special Provisions.
Planted acreage. In addition to the definition contained in the
Basic provisions, land in which tobacco seedlings, including hydroponic
plants, have been transplanted by hand or machine from the tobacco bed
to the field.
Pound. Sixteen ounces avoirdupois.
Priming. A method of harvesting tobacco by which one or more leaves
are removed from the stalk as they mature.
Tobacco bed. An area protected from adverse weather in which tobacco
seeds are sown and seedlings are grown until transplanted into the
tobacco field by hand or machine.
Tobacco types. Insurable tobacco as shown on the Special Provisions
of Insurance.
2. Unit Division.
A basic unit will be determined in accordance with the definition of
basic unit contained in section 1 of these Crop Provisions. Optional and
enterprise units may be allowed by the Special Provisions of Insurance.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities.
In addition to the requirements of section 3 of the Basic
Provisions, you must select only one price election percentage and
coverage level for each tobacco type designated in the Special
Provisions of Insurance that you elect to insure.
4. Contract Changes.
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage.
In addition to the requirements of section 6 of the Basic
Provisions, you must provide a copy of any written lease agreement, if
applicable, between you and any landlord or tenant. The written lease
agreement must:
(1) Identify all other persons sharing in the crop; and
(2) Be submitted to us on or before the acreage reporting date.
7. Insured Crop.
(a) In accordance with section 8 of the Basic Provisions, the
insured crop will be each tobacco type you elect to insure and for which
a premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That meets all rotation requirements on the Special Provisions
of Insurance.
(b) You will be considered to have a share in the insured crop if
you retain control of the acreage on which the tobacco is grown and you
are at risk of loss.
8. Insurable Acreage.
In addition to the provisions of section 9 of the Basic Provisions,
we will not insure any acreage that is:
(a) Planted in any manner other than as provided in the definition
of ``planted acreage'' in section 1 of these Crop Provisions, unless
otherwise provided by the Special Provisions of Insurance or by written
agreement; or
(b) Damaged before the final planting date to the extent that the
majority of producers in the area would normally not further care for
the tobacco crop, unless such crop is replanted or we agree that
replanting is not practical.
9. Insurance Period.
In lieu of the provisions of section 11 of the Basic Provisions,
coverage ends at the earlier of:
(a) Total destruction of the tobacco on the unit;
(b) Removal of the tobacco from the unit where grown, except for
curing, grading, and packing;
(c) Abandonment of the crop on the unit;
(d) Final adjustment of the loss on the unit; or
(e) The calendar date for the end of the insurance period, which is
the date immediately following planting and designated by tobacco types
and states (or as otherwise stated on the Special Provisions of
Insurance) as follows:
(i) Flue cured--November 30 in North Carolina and Virginia;
(ii) Flue cured--October 31 in Alabama, Florida, Georgia, and South
Carolina;
(iii) Burley--February 28 in all states;
(iv) Dark air cured--March 15 in Kentucky, Tennessee, and Virginia;
(v) Fire cured--April 15 in Kentucky, Tennessee, and Virginia;
(vi) Cigar Binder, Cigar Filler, and Cigar Wrapper--April 30 in
Connecticut, Massachusetts, Pennsylvania, and Wisconsin; and
(vii) Maryland type--May 15 in Maryland and Pennsylvania.
10. Causes of Loss.
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(a) Adverse weather conditions;
(b) Fire;
(c) Insects, but not damage due to insufficient or improper
application of pest control measures;
[[Page 272]]
(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 due to a cause of loss
specified in sections 10(a) through (g) that also occurs during the
insurance period.
11. Duties In The Event of Damage or Loss.
(a) In accordance with section 14 of the Basic Provisions, you must
maintain representative samples of each unharvested tobacco crop (type)
for our inspection. The representative samples must be at least 5 feet
wide (at least two rows), and extend the entire length of each field in
the unit. The samples must not be harvested or destroyed until after our
inspection.
(b) If you have filed a notice of damage, you must leave all tobacco
stalks and stubble in the unit intact for our inspection. The stalks and
stubble must not be destroyed until we give you written consent to do so
or until 30 days after the end of the insurance period, whichever is
earlier.
12. 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 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) Multiplying the number of insured acres by your applicable
production guarantee (per acre);
(2) Multiplying the result of section 12(b)(1) by your price
election;
(3) Multiplying the total production to count determined in section
12(c) by your price election;
(4) Subtracting the result of section 12(b)(3) from the result of
section 12(b)(2); and
(5) Multiplying the result of section 12(b)(4) by your share.
For example:
You have 100 percent share in a unit to produce 3,000 pounds of
Burley tobacco, a production guarantee of 1,950 pounds (APH yield of
3,000 pounds x .65 coverage level), you plant 1.0 acre, your price
election is $1.50 per pound, and your production to count is 500 pounds.
Your indemnity would be calculated as follows:
(1) 1.0 acre x 1,950 pounds production guarantee = 1,950 pounds;
(2) 1,950 pounds x $1.50 price election = $2,925.00 value of the
production guarantee;
(3) 500 pounds production to count x $1.50 price election = $750.00
value of the production to count;
(4) $2,925.00 value of the production guarantee--$750.00 value of
the production to count = $2,175.00; and
(5) $2,175.00 x 1.000 share = $2,175.00 indemnity.
(c) The total production to count (in pounds) 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;
(D) For which you fail to provide records of production, that are
acceptable to us; or
(E) For any type of tobacco when the stalks and stubble have been
destroyed without our consent under section 11(b);
(ii) Production lost due to uninsured causes.
(iii) Potential production on insured acreage 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 when 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 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.
(d) Once we agree the current year's tobacco has no average value
due to an insured cause of loss, you must destroy it, and it will not be
considered production to count. If you refuse to destroy such tobacco,
we will include it as production to count and value it at the applicable
price election.
[[Page 273]]
(e) In lieu of section 15(b) of the Basic Provisions, if we have
conducted an appraisal of your insured crop and we determine that the
harvested production you report is inconsistent with the appraised
production and you cannot prove that an insurable cause of loss occurred
between the appraisal and the end of the insurance period that can
account for the reduction in production, your claim will be settled
based on the appraised production on insured acreage, even if you have
harvested the acreage. If we settle your claim based on your appraised
production, section 12(f) regarding quality adjustment is not
applicable.
(f) Mature tobacco may be adjusted for quality deficiencies when
production has been damaged by insurable causes.
(1) You must contact us before any tobacco is disposed of so we can
inspect the tobacco to determine the extent of the damage.
(2) Our inspection will be used to determine whether the average
value is reasonable. Based on amount of damage determined during the
inspection, if the average value is:
(i) Reasonable, such average value will be used to determine the
quality adjustment in section 12(f)(5);
(ii) Unreasonable, we may adjust the average value used to calculate
the quality adjustment in section 12(f)(5).
(3) If you dispose of any production without giving us the
opportunity to have the tobacco inspected, you will not receive a
quality adjustment for such tobacco, regardless of the average value of
the production.
(4) Production to count will only be reduced if the average value
for damaged tobacco is less than 75 percent of your tobacco price
election. You must provide us with records that are acceptable to us
which clearly shows the number of pounds, price per pound, and the
quality of such tobacco.
(5) Any reduction in the production to count will be determined by:
(i) Dividing the average value per pound as determined by us in
accordance with section 12(f)(2) of these Crop Provisions by your
applicable price election; and
(ii) Multiplying this result by the number of pounds of damaged
production.
13. Late Planting
In lieu of late planting provisions in the Basic Provisions
regarding acreage initially planted after the final planting date,
insurance will be provided for acreage planted to the insured crop after
the final planting date as follows:
(a) The production guarantee (per acre) for acreage planted during
the late planting period will be reduced by:
(1) One percent per day for the 1st through the 10th day; and
(2) Two percent per day for the 11th through the 15th day;
(b) The premium amount for insurable acreage planted to the insured
crop after the final planting date 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 acreage planted after the final planting
date 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).
14. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. Additional prevented planting coverage levels are not available
for tobacco.
[74 FR 13059, Mar. 26, 2009, as amended at 81 FR 84399, Nov. 23, 2016]
Sec. 457.137 Green pea crop insurance provisions.
The Green Pea Crop Insurance Provisions for the 2017 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
Green Pea Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Base contract price. The price stipulated in the processor contract
for the tenderometer reading, grade factor, or sieve size that is
designated in the Special Provisions, if applicable, without regard to
discounts or incentives that may apply.
Bypassed acreage. Land on which production is ready for harvest but
the processor elects not to accept such production so it is not
harvested.
Combining (vining). Separating pods from the vines and, in the case
of shell peas, separating the peas from the pod for delivery to the
processor.
Dry peas. Green peas that have matured to the dry form for use as
food, feed, or seed.
Good farming practices. The cultural practices generally in use in
the county for the
[[Page 274]]
crop to make normal progress toward maturity and produce at least the
yield used to determine the production guarantee and are those required
by the green pea processor contract with the processing company, and
recognized by the National Institute of Food and Agriculture as
compatible with agronomic and weather conditions in the county.
Green peas. Shell type and pod type peas that are grown under a
processor contract to be canned or frozen and sold for human
consumption.
Harvest. Combining (vining) of the peas.
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.
Peas. Green or dry peas.
Planted acreage. In addition to the definition contained in the
Basic Provisions, peas must initially be placed 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.
Pod type. Green peas genetically developed to be eaten without
shelling (e.g., snap peas, snow peas, and Chinese peas).
Practical to replant. In lieu of the definition of ``practical to
replant'' contained in section 1 of the Basic Provisions, 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 unless
the replanted acreage can produce at least 75 percent of the approved
yield, and the processor agrees in writing that it will accept the
production from the replanted acreage.
Price election. In lieu of the definition of ``Price election''
contained in section 1 of the Basic Provisions, price election is
defined as the price per pound stated in the processor contract
(contracted price) for the tenderometer reading, grade factor, or sieve
size contained in the Special Provisions.
Processor. Any business enterprise regularly engaged in canning or
freezing green peas for human consumption, that possesses all licenses
and permits for processing green peas 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 contracted
green peas within a reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, containing at a minimum:
(a) The producer's commitment to plant and grow green peas, and to
deliver the green pea production to the processor;
(b) The processor's commitment to purchase all the production stated
in the processor contract; and
(c) A base contract price.
Multiple contracts with the same processor that specify amounts of
production will be considered as a single processor contract unless the
contracts are for different types of green peas.
Production guarantee (per acre). The number of pounds determined by
multiplying the approved actual production history yield per acre by the
coverage level percentage you elect. For shell type peas, the weight
will be determined after shelling.
Shell type. Green peas genetically developed to be shelled prior to
eating, canning or freezing.
2. Unit Division
(a) For any processor contract that stipulates the amount of
production to be delivered:
(1) In lieu of the definition contained in the Basic Provisions, a
basic unit will consist of all acreage planted to the insured crop in
the county that will be used to fulfill contracts with each processor;
(i) There will be no more than one basic unit for all production
contracted with each processor contract;
(ii) In accordance with section 12, all production from any basic
unit in excess of the amount under contract will be included as
production to count if such production is applied to any other basic
unit for which the contracted amount has not been fulfilled; and
(2) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units may only
be established based on shell type and pod type green peas if the shell
type acreage does not continue into the pod type acreage in the same
rows or planting pattern.
(b) For any processor contract that stipulates the number of acres
to be planted, in addition to or instead of, establishing optional units
by section, section equivalent or FSA farm serial number, or irrigated
and non-irrigated acreage, optional units may be established based on
shell type and pod type green peas if the shell type acreage does not
continue into the pod type acreage in the same rows or planting pattern.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
[[Page 275]]
(a) You may select only one price election for all the green peas in
the county insured under this policy unless the Special Provisions
provide different price elections by type. The percentage of the maximum
price election you choose for one type will be applicable to all other
types insured under this policy.
(b) The appraised production from bypassed acreage that could have
been accepted by the processor will be included when determining your
approved yield.
(c) Acreage that is bypassed because it was damaged by an insurable
cause of loss will be considered to have a zero yield when determining
your approved yield.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
Cancellation and Termination
------------------------------------------------------------------------
State Dates
------------------------------------------------------------------------
Delaware and Maryland...................... Feb. 15.
All other states........................... Mar. 15.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
you must provide a copy of all processor contracts to us on or before
the acreage reporting date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the shell type and pod type green peas in the county
for which a premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are grown under, and in accordance with, the requirements
of a processor contract executed on or before the acreage reporting date
and are not excluded from the processor contract at any time during the
crop year; and
(3) 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 as a nurse crop.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acreage on which
the green peas are grown, you are at risk of loss, and the processor
contract provides for delivery of green peas under specified conditions
and at a stipulated base contract price.
(c) A commercial green pea producer who is also a processor may
establish an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor must execute and adopt a resolution that
contains the same terms as an acceptable processor contract. Such
resolution will be considered a processor contract under this policy;
and
(3) Our inspection reveals that the processing facilities comply
with the definition of a processor contained in these Crop Provisions.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) Any acreage of the insured crop that is damaged before the final
planting date, to the extent that the majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant; and
(b) We will not insure any acreage that does not meet the rotation
requirements, if applicable, contained in the Special Provisions.
9. Insurance Period
In lieu of the provisions contained in section 11 of the Basic
Provisions, regarding the end of the insurance period, insurance ceases
at the earlier of:
(a) The date the green peas:
(1) Were destroyed;
(2) Should have been harvested but were not harvested;
(3) Were abandoned; or
(4) Were harvested;
(b) The date you harvest sufficient production to fulfill your
processor contract if the processor contract stipulates a specific
amount of production to be delivered;
(c) Final adjustment of a loss; or
(d) September 15 of the calendar year in which the insured green
peas would normally be harvested; or
(e) September 30 of the calendar year in which the insured peas
would normally be harvested if you provide notice to us that the insured
crop will be harvested as dry peas (see section 11(d)).
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions:
(a) Insurance is provided only against the following causes of loss
that occur during the insurance period:
(1) Adverse weather conditions, including:
[[Page 276]]
(i) Excessive moisture that prevents harvesting equipment from
entering the field or that prevents the timely operation of harvesting
equipment; and
(ii) Abnormally hot or cold temperatures that cause an unexpected
number of acres over a large producing area to be ready for harvest at
the same time, affecting the timely harvest of a large number of such
acres or the processing of such production is beyond the capacity of the
processor, either of which causes the acreage to be bypassed.
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease but only on acreage not planted to peas the
previous crop year. (In certain instances, contained in the Special
Provisions or in a written agreement, acreage planted to peas the
previous year may be covered. Damage due to insufficient or improper
application of disease control measures is not covered);
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if due to a cause of
loss contained in section 10(a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, we will not insure any loss of production due to:
(1) Bypassed acreage because of:
(i) The breakdown or non-operation of equipment or facilities; or
(ii) The availability of a crop insurance payment. We may deny any
indemnity immediately in such circumstance or, if an indemnity has been
paid, require you to repay it to us with interest at any time acreage
was bypassed due to the availability of a crop insurance payment or;
(2) Your failure to follow the requirements contained in the
processor contract.
11. Duties in the Event of Damage or Loss
In addition to the notices required by section 14 of the Basic
Provisions, you must give us notice:
(a) Not later than 48 hours after:
(1) Total destruction of the green peas on the unit; or
(2) Discontinuance of harvest on a unit on which unharvested
production remains.
(b) Within 3 days after the date harvest should have started on any
acreage that will not be harvested unless we have previously released
the acreage. You must also provide acceptable documentation of the
reason the acreage was bypassed. Failure to provide such documentation
will result in our determination that the acreage was bypassed due to an
uninsured cause of loss. If the crop will not be harvested and you wish
to destroy the crop, 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 each unit. The
samples must not be destroyed until the earlier of our inspection or 15
days after notice is given to us;
(c) At least 15 days prior to the beginning of harvest if you intend
to claim an indemnity on any unit, or immediately if damage is
discovered during the 15 day period or during harvest, so that we may
inspect any damaged production. If you fail to notify us and such
failure results in our inability to inspect the damaged production, we
will consider all such production to be undamaged and include it as
production to count. You are not required to delay harvest; and
(d) Prior to the time the green peas would normally be harvested if
you intend to harvest the green peas as dry peas.
12. 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) Multiplying the insured acreage by its respective production
guarantee, by type if applicable;
(2) Multiplying each result of section 12(b)(1) by the respective
price election, by type if applicable;
(3) Totaling the results of section 12(b)(2) if there are more than
one type;
(4) Multiplying the total production to count (see section 12(c)),
for each type if applicable, by its respective price election;
(5) Totaling the results of section 12(b)(4) if there are more than
one type;
(6) Subtracting the results of section 12(b)(4) from the results of
section 12(b)(2) if there is only one type or subtracting the results of
section 12(b)(5) from the result of section 12(b)(3) if there are more
than one type; and
(7) Multiplying the result of section 12(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of shell type green peas
in the unit, with a guarantee of 4,000 pounds per acre and a price
election of $0.09 per pound. You are only able to harvest 200,000
pounds. Your indemnity would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000 pounds guarantee;
(2) 400,000 pounds x $0.09 price election = $36,000.00 value of
guarantee;
[[Page 277]]
(4) 200,000 pounds x $0.09 price election = $18,000.00 value of
production to count;
(6) $36,000.00 - $18,000.00 = $18,000.00 loss; and
(7) $18,000.00 x 100 percent = $18,000.00 indemnity payment.
You also have a 100 percent share in 100 acres of pod type green
peas in the same unit, with a guarantee of 5,000 pounds per acre and a
price election of $0.13 per pound. You are only able to harvest 450,000
pounds. Your total indemnity for both shell type and pod type green peas
would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000 pounds guarantee for the
shell type, and 100 acres x 5,000 pounds = 500,000 pounds guarantee for
the pod type;
(2) 400,000 pounds guarantee x $0.09 price election = $36,000.00
value of guarantee for the shell type, and 500,000 pounds guarantee x
$0.13 price election = $65,000.00 value of guarantee for the pod type;
(3) $36,000.00 + $65,000.00 = $101,000.00 total value of guarantee;
(4) 200,000 pounds x $0.09 price election = $18,000.00 value of
production to count for the shell type, and
450,000 pounds x $0.13 = $58,500.00 value of production to count for
the pod type;
(5) $18,000.00 + $58,500.00 = $76,500.00 total value of production
to count;
(6) $101,000.00 - $76,500.00 = $24,500.00 loss; and
(7) $24,500.00 loss x 100 percent = $24,500.00 indemnity payment.
(c) The total production to count, specified in pounds, 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) That is put to another use without our consent;
(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) Production on acreage that is bypassed unless the acreage was
bypassed due to an insured cause of loss which resulted in production
which would not be acceptable under the terms of the processor contract.
(iv) 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 when 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 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.
(2) All harvested green pea production from the insurable acreage.
The amount of such production will be determined by dividing the dollar
amount paid, payable, or which should have been paid under the terms of
the processor contract for the quality and quantity of the peas
delivered to the processor by the base contract price per pound;
(3) All harvested green pea production from any of your other
insurable units that have been used to fulfill your processor contract
for this unit; and
(4) All dry pea production from the insurable acreage if you gave
notice in accordance with section 11(d) for any acreage you intended to
harvest as dry peas. The harvested or appraised dry pea production will
be multiplied by 1.667 for shell types and 3.000 for pod types to
determine the green pea production equivalent. No adjustment for quality
deficiencies will be allowed for dry pea production.
13. Late Planting
A late planting period is not applicable to green peas unless
allowed by the Special Provisions and you provide written approval from
the processor by the acreage reporting date that it will accept the
production from the late planted acres when it is expected to be ready
for harvest.
14. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 61903, Nov. 20, 1997, as amended at 62 FR 65173, Dec. 10, 1997;
76 FR 4804, Jan. 27, 2011; 81 FR 84399, Nov. 23, 2016]
[[Page 278]]
Sec. 457.138 Grape crop insurance provisions.
The grape crop insurance provisions for the 2010 and succeeding crop
years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured Policies
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Grape Crop Provisions
1. Definitions
Graft. To unite a shoot or bud (scion) with a rootstock or an
existing vine in accordance with recommended practices to form a living
union.
Harvest. Removing the mature grapes from the vines either by hand or
machine.
Interplanted. Acreage on which two or more crops are planted in any
form of alternating or mixed pattern.
Set out. Physically planting the grape plants in the vineyard.
Ton. Two thousand (2,000) pounds avoirdupois.
Type. A category of grapes (one or more varieties) identified as a
type in the Special Provisions.
Variety. A kind of grape that is distinguished from any other by
unique characteristics such as, but not limited to, size, color, skin
thickness, acidity, flavors and aromas. In Arizona and California each
variety is identified as a separate type in the Special Provisions
except for type 095 (other varieties). Type 095 is used to designate
varieties not listed as a separate type.
2. Unit Division
(a) In Arizona and California only:
(1) A basic unit as defined in section 1 of the Basic Provisions
will be divided into additional basic units by each variety that you
insure; and
(2) Provisions in the Basic Provisions that provide for optional
units by section, section equivalent, or FSA farm serial number and by
irrigated and non-irrigated practices are not applicable. Unless
otherwise allowed by written agreement, optional units may only be
established if each optional unit is located on non-contiguous land or
grown and insured under an organic farming practice.
(b) In all states except Arizona and California, in addition to, or
instead of, establishing optional units by section, section equivalent,
or FSA farm serial number and by irrigated and non-irrigated acreage and
for acreage grown and insured under an organic farming practice as
provided in the unit division provisions contained in the Basic
Provisions, a separate optional unit may be established if each optional
unit:
(1) Is located on non-contiguous land; or
(2) Consists of a separate type when separate types are specified in
the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) In Arizona and California, you may select only one coverage
level and price election for each grape variety you elect to insure in
the county.
(b) In all states except Arizona and California, you may select only
one coverage level and price election for each grape type in the county
as specified in the Special Provisions. The coverage level you choose
for each grape type is not required to have the same percentage
relationship. The price election you choose for each type is not
required to have the same percentage relationship to the maximum price
election offered by us for each type. For example, if you choose 75
percent coverage level and 100 percent of the maximum price election for
one type, you may choose 65 percent coverage level and 75 percent of the
maximum price election for another type. If you elect the Catastrophic
Risk Protection (CAT) level of insurance for any grape type, the CAT
level of coverage will be applicable to all insured grape acreage in the
county.
(c) In all states except Arizona and California, if you acquire a
share in any grape acreage after you submit your application, such
acreage is insurable under the terms of the policy and you did not
include the grape type on your application, we will assign the
following:
(1) A coverage level equal to the lowest coverage level you selected
for any other grape type: and
(2) A price election percentage equal to the type with the lowest
coverage level you selected, if you elected additional coverage; or 55
percent of the maximum price election, if you elected CAT.
(d) In addition to the definition of ``price election'' contained in
section 1 of the Basic Provisions, a price election based on the price
contained in your grape contract is allowed if provided by the Special
Provisions. In the event any contract requires the use of a cultural
practice that will reduce the amount of production from any insured
acreage, your approved yield will be adjusted in accordance with section
3(f) and (g) to reflect the reduced production potential.
(e) In Arizona and California only, if the Special Provisions do not
provide a price election for a specific variety you wish to insure, you
may apply for a written agreement
[[Page 279]]
to establish a price election. Your application for the written
agreement must include:
(1) The number of tons sold for at least the two most recent crop
years; and
(2) The price received for all production of the grape variety in
the years for which production records are provided.
(f) You must report by the production reporting date designated in
section 3 of the Basic Provisions, by type or variety, if applicable:
(1) Any damage, removal of bearing vines, 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 vines on insurable and uninsurable
acreage;
(3) The age of the vines 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 the grape type or variety,
if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to establish
your approved yield.
(g) We will reduce the yield used to establish your production
guarantee, based on our estimate of the effect on yield potential of any
of the items listed in section 3(f)(1) through (4). If you fail to
notify us of any circumstance that may reduce your yields from previous
levels, we will reduce your production guarantee at any time we become
aware of the circumstance.
(h) Your request to increase the coverage level or price election
percentage will not be accepted if a cause of loss that could or would
reduce the yield of the insured crop is evident when your request is
made.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is October 31 preceding the cancellation date for Arizona
and California and August 31 preceding the cancellation date for all
other states.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31 in Arizona and
California, and November 20 for all other states.
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must report your acreage:
(a) In Arizona and California, by each grape variety you insure; or
(b) In all other states, by each grape type.
7. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be any insurable variety that you elect to insure in
Arizona and California, or in all other states all insurable types, in
the county for which a premium rate is provided by the actuarial
documents:
(a) In which you have a share;
(b) That are grown for wine, juice, raisins, or canning (if such
grapes are put to another use (i.e. table grapes), the production to
count will be in accordance with section 12(c)(2(ii));
(c) That are grown in a vineyard that, if inspected, is considered
acceptable by us;
(d) That, after being set out or grafted, have reached the number of
growing seasons designated by the Special Provisions; and
(e) That have produced an average of at least two tons of grapes per
acre (or as otherwise provided in the Special Provisions) in at least
one of the three crop years immediately preceding the insured crop year,
unless we inspect and allow insurance on acreage that has not produced
this amount.
8. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to a crop planted with another crop, grapes
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.
9. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) For the year of application, coverage begins on February 1 in
Arizona and California, and November 21 in all other states.
Notwithstanding the previous sentence, if your application is received
by us after January 12 but prior to February 1 in Arizona or California,
or after November 1 but prior to November 21 in all other states,
insurance will attach on the 20th day after your properly completed
application is received in our local office, unless we inspect the
acreage during the 20-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 vineyard.
(2) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for the prior crop year. Policy
cancellation that results solely from transferring to a different
insurance provider for a subsequent crop year will not be considered a
break in continuous coverage.
[[Page 280]]
(3) If in accordance with the terms of the policy, your grape policy
is cancelled or terminated for any crop year after insurance attached
for that crop year, but on or before the cancellation and termination
dates, whichever is later, insurance will not be considered to have
attached for that crop year and no premium, administrative fee, or
indemnity will be due for such crop year.
(4) The calendar date for the end of the insurance period for each
crop year is as follows, unless otherwise specified in the Special
Provisions:
(i) October 10 in Mississippi and Texas;
(ii) November 10 in Arizona, California, Idaho, Oregon and
Washington; and
(iii) November 20 in all other states.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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. Acreage
acquired after the acreage reporting date will not be insured.
(2) If you relinquish your insurable share on any insurable acreage
of grapes on or before the acreage reporting date for the crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due 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.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, 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 vineyard;
(3) Insects, except as excluded in 10(b)(1), 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; or
(8) 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) Phylloxera, regardless of cause; or
(2) Inability to market the grapes 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 of the Basic
Provisions, 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) If the crop has been damaged during the growing season and you
previously gave notice in accordance with section 14 of the Basic
Provisions (Sec. 457.8), you must also provide notice at least 15 days
prior to the beginning of harvest if you intend to claim an indemnity as
a result of the damage previously reported. You must not destroy the
damaged crop that is marketed in normal commercial channels, 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 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) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying each result in section 12(b)(1) by the respective
price election you selected for each type or variety;
(3) Totaling the results in section 12(b)(2);
(4) Multiplying the total production to count of each type or
variety, if applicable, (see section 12 (c) through (e)) by the
respective price election you selected;
(5) Totaling the results in section 12(b)(4);
(6) Subtracting the result in section 12(b)(5) from the result in
section 12(b)(3); and
[[Page 281]]
(7) Multiplying the result in 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 or destroyed by you without our consent;
(B) That is damaged solely by uninsured causes; or
(C) For which you fail to provide production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested production may be
adjusted for quality deficiencies in accordance with subsection 12 (e));
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 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:
(i) Grape production that is harvested and dried for raisins will be
converted to a fresh weight basis by multiplying the number of tons of
raisin production by 4.5.
(ii) Grapes grown for wine, juice, raisins or canning and put to
another use, will be counted as production to count on a tonnage basis.
No quality adjustment other than that specifically provided for in your
policy is available.
(d) If any grapes are harvested before 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.
(e) Mature marketable grape production may be adjusted for quality
deficiencies as follows:
(1) Production will be eligible for quality adjustment if, due to
insurable causes, it has a value of less than 75 percent of the average
market price of undamaged grapes of the same or similar variety. The
value per ton of the qualifying damaged production and the average
market price of undamaged grapes will be determined on the earlier of
the date the damaged production is sold or the date of final inspection
for the unit. The average market price of undamaged production will be
calculated by averaging the prices being paid by usual marketing outlets
for the area during the week in which the damaged grapes were valued.
(2) Grape production that is eligible for quality adjustment, as
specified in subsection 12(e)(1) will be reduced by:
(i) Dividing the value per ton of the damaged grapes by the value
per ton for undamaged grapes (the value of undamaged grapes will be the
lesser of the average market price or the maximum price election for
such grapes); and
(ii) Multiplying this result (not to exceed 1.000) by the number of
tons of the eligible damaged grapes.
13. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 33741, June 23, 1997, as amended at 62 FR 65173, Dec. 10, 1997;
63 FR 31338, June 9, 1998; 64 FR 24932, May 10, 1999; 74 FR 32055, July
7, 2009]
Sec. 457.139 Fresh market tomato (dollar plan) crop insurance provisions.
The fresh market tomato (dollar plan) crop insurance provisions for
the 2024 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
Fresh market tomato (dollar plan) crop provisions
1. Definitions
Acre. 43,560 square feet of planted acreage when row widths do not
exceed six feet. If row widths exceed six feet, the land area on which
at least 7,260 linear feet of rows are planted.
Allowable cost. The dollar amount per carton for harvesting,
packing, and handling as stated in the actuarial documents.
Amount of insurance per acre. The dollar amount of insurance per
acre obtained by multiplying the reference maximum dollar amount shown
in the actuarial documents by the coverage level percentage you elect.
Carton. Twenty-five (25) pounds of the insured crop.
[[Page 282]]
Crop year. In lieu of the definition contained in the Basic
Provisions (Sec. 457.8), crop year is a period of time that begins on
the first day of the earliest planting period for fall planted tomatoes
and continues through the last day of the insurance period for spring
planted tomatoes. The crop year is designated by the calendar year in
which spring planted tomatoes are harvested.
Direct marketing. In addition to the definition contained in section
1 of the Basic Provisions, the sale of the insured crop directly to
consumers without the intervention of an intermediary including a
registered handler.
Excess rain. An amount of precipitation sufficient to directly
damage the crop.
Freeze. The formation of ice in the cells of the plant or its fruit,
caused by low air temperatures.
Fresh market tomatoes. Field grown mature green or ripe fresh market
tomatoes that meet the Agricultural Marketing Service United States
Standards for Grades of Fresh Tomatoes; and the applicable Federal
Marketing Order and Florida Tomato Committee Regulations, or their
successors.
Harvest. The picking of fresh market tomatoes from the plants,
excluding tomatoes salvaged by penhookers.
Mature green tomato. A tomato that:
(1) Has a glossy 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 as to be pushed aside
and not cut by a sharp knife in slicing; and
(4) Shows no red color.
Minimum value. The dollar amount per carton shown in the actuarial
documents we will use to value appraised and unsold harvested production
to count.
Penhookers. Individuals who purchase the right to salvage tomatoes
remaining in the field after commercial harvests are completed.
Plant stand. The number of live plants per acre prior to the
occurrence of an insured cause of loss.
Planting period. The period of time designated in the actuarial
documents in which the tomatoes must be planted to be considered fall,
winter or spring-planted tomatoes.
Potential production. The number of cartons of field grown mature
green or ripe fresh market tomatoes that the tomato plants will or would
have produced per acre assuming normal growing conditions and practices
by the end of the insurance period.
Price received. The gross dollar amount per carton received by the
producer before deductions of allowable costs.
Registered handler. A person or entity officially certified by the
Florida Tomato Committee, or successor entity, to inspect and enforce
all the handling regulations for fresh market tomatoes, and report the
required packout data to the Florida Tomato Committee.
Ripe tomato. A tomato that has a definite break in color from green
to tannish-yellow, pink or red.
Row width. The widest distance from the center of one row of plants
to the center of an adjacent row of plants.
Tropical depression. A system identified by the U.S. Weather Service
as a tropical depression, and for the period of time so designated,
including tropical storms, gales, and hurricanes.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will also be divided into additional basic units by planting period.
(b) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Amounts of Insurance and Production Stages
(a) In addition to the requirements of section 3 of the Basic
Provisions you may select only one coverage level (and the corresponding
amount of insurance designated in the actuarial documents for the
applicable planting period and practice) for all the tomatoes in the
county insured under this policy.
(b) The amount of insurance you choose for each planting period and
practice must have the same percentage relationship to the maximum price
offered by us for each planting period and practice. For example, if you
choose 100 percent of the maximum amount of insurance for a specific
planting period and practice, you must also choose 100 percent of the
maximum amount of insurance for all other planting periods and
practices.
(c) The production reporting requirements contained in section 3 of
the Basic Provisions do not apply to fresh market dollar plan tomatoes.
(d) The amounts of insurance per acre are progressive by stages as
follows:
----------------------------------------------------------------------------------------------------------------
Percent of the
amount of
Stage insurance per Length of time if transplanted
acre that you
selected
----------------------------------------------------------------------------------------------------------------
1................................................... 50 From planting through the 29th day
after planting.
2................................................... 75 From the 30th day after planting until
the beginning of stage 3.
[[Page 283]]
3................................................... 90 From the 60th day after planting until
the beginning of the final stage.
Final............................................... 100 Begins the earlier of 75 days after
planting, or the beginning of harvest.
----------------------------------------------------------------------------------------------------------------
(e) Any acreage of fresh market tomatoes damaged in the first,
second, or third stage to the extent that the majority of producers in
the area would not normally further care for the crop, the indemnity
payable for such acreage will be based on the stage the plants had
achieved when the insured damage occurred, even if the producer
continues to care for the damaged tomatoes.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is April 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are July 31.
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must report on or before the acreage reporting date
contained in the Special Provisions for each planting period:
(a) All the acreage of tomatoes in the county insured under this
policy in which you have a share;
(b) The dates the acreage was planted within each planting period;
and
(c) The row width.
7. Annual Premium
In lieu of the premium amount determinations contained in section 7
of the Basic Provisions, the annual premium amount for each cultural
practice (e.g., fall transplanted irrigated) is determined by
multiplying the final stage amount of insurance per acre by the premium
rate for the cultural practice as established in the actuarial
documents, by the insured acreage, by your share at the time coverage
begins, and by any applicable premium adjustment factors contained in
the actuarial documents.
8. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the field grown mature green or ripe fresh market
tomato types in the county as specified in the Special Provisions for
which a premium rate is provided in the actuarial documents:
(a) In which you have a share;
(b) That are:
(1) Planted to be harvested and sold as fresh market tomatoes;
(2) Planted within the planting periods designated in the actuarial
documents;
(3) Grown under an irrigated practice;
(4) Grown on acreage covered by plastic mulch except where the
Special Provisions allows otherwise;
(5) Grown by a person who in at least one of the three previous crop
years:
(i) Grew tomatoes for commercial sale; or
(ii) Participated in managing a fresh market tomato farming
operation;
(c) That are not:
(1) Interplanted with another crop;
(2) Planted into an established grass or legume;
(3) Grown for direct marketing; or
(4) Direct seeded fresh market tomatoes, unless insured by written
agreement.
9. Insurable Acreage
(a) In lieu of section 9 of the Basic Provisions, that prohibit
insurance attaching if a crop has not been planted in at least one of
the three previous crop years, we will insure newly cleared land and
former pasture land planted to fresh market tomatoes.
(b) In addition to section 9 of the Basic Provisions:
(1) You must replant any acreage of tomatoes damaged during the
planting period in which initial planting took place whenever less than
50 percent of the plant stand remains and
(i) It is practical to replant;
(ii) If, at the time the crop was damaged, the final day of the
planting period has not passed; and
(iii) The damage occurs within 30 days of transplanting.
(2) Whenever tomatoes initially are planted during the fall or
winter planting periods and the conditions specified in sections 9(b)(1)
(ii) and (iii) are not met, you may elect:
(i) To replant such acreage and collect any replant payment due as
specified in section 12. The initial planting period coverage will
continue for such replanted acreage.
(ii) Not to replant such acreage and receive an indemnity based on
the stage of growth the plants had attained at the time of damage.
However, such an election will result in
[[Page 284]]
the acreage being uninsurable in the subsequent planting period.
(3) We will not insure any acreage on which tomatoes (except for
replanted tomatoes in accordance with sections 9(b)(1) and (2)),
peppers, eggplants, strawberries or tobacco have been grown and the soil
was not fumigated or otherwise properly treated before planting the
insured tomatoes.
10. Insurance Period
In lieu of section 11 of the Basic Provisions, coverage begins on
each unit or part of a unit the later of the date we accept your
application, or when the tomatoes are planted in each planting period.
Coverage ends on each unit at the earliest of:
(a) Total destruction of the tomatoes on the unit;
(b) Abandonment of the tomatoes on the unit;
(c) The date harvest should have started on the unit on any acreage
which will not be harvested;
(d) Final adjustment of a loss on the unit;
(e) Final harvest on the unit; or
(f) The calendar date for the end of the insurance period that is
125 days after the date of transplanting or replanting with transplants.
11. Causes of Loss
(a) In accordance with section 12 of the Basic Provisions, insurance
is provided only against the following causes of loss that occur during
the insurance period:
(1) Excess rain;
(2) Fire;
(3) Freeze;
(4) Hail;
(5) Tornado;
(6) Tropical depression; or
(7) Failure of the irrigation water supply, if caused by an insured
cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against any damage or loss of
production due to:
(1) Disease or insect infestation, unless no effective control
measure exists for such disease or insect infestation; or
(2) Failure to harvest in a timely manner or failure to sell the
tomatoes, unless such failure is due to actual physical damage caused by
an insured cause of loss that occurs during the insurance period. For
example, we will not pay an indemnity if you are unable to sell the
insured crop due to quarantine, boycott, or refusal of any person to
accept production.
12. Replanting Payments
(a) In accordance with section 13 of the Basic Provisions, a
replanting payment is allowed if, due to an insured cause of loss, more
than 50 percent of the plant stand will not produce tomatoes and it is
practical to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of your actual cost of replanting or the result obtained by
multiplying the per acre replanting payment amount contained in the
Special Provisions by your insured share.
(c) In lieu of the provisions contained in section 13 of the Basic
Provisions, that limit a replanting payment to one each crop year, only
one replanting payment will be made for acreage planted during each
planting period within the crop year.
13. Duties in the Event of Damage or Loss
In addition to the requirements contained in section 14 of the Basic
Provisions, if you intend to claim an indemnity on any unit you must
also give us notice not later than 72 hours after the earliest of:
(a) The time you discontinue harvest of any acreage on the unit;
(b) The date harvest normally would start if any acreage on the unit
will not be harvested; or
(c) The calendar date for the end of the insurance period.
14. 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 in each stage by the amount of
insurance per acre for the final stage;
(2) Multiplying each result in section 14(b)(1) by the percentage
for the applicable stage (see section 3(d));
(3) Total the results of section 14(b)(2);
(4) Subtracting either of the following values from the result of
section 14(b)(3):
(i) For other than catastrophic risk protection coverage, the total
value of production to be counted (see section 14(c)); or
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to count determined in
accordance with section 14(c) by the percentage contained in the Special
Provisions.
(5) Multiplying the result of section 14(b)(4) by your share.
[[Page 285]]
------------------------------------------------------------------------
------------------------------------------------------------------------
For Example: You have a 100 percent share in 10.0 acres of fresh market
tomatoes. You select a 70% coverage level of the reference maximum
dollar amount of $7,500 per acre. The average price received is $10.00
per carton of tomatoes. Allowable costs are $4.25 per carton. Minimum
value is $5.00 per carton. Your total sold production is 5,000 cartons
(5,000 / 10.0 = 500 cartons per acre) and you have an additional 1,000
cartons of unsold harvested production (1,000 / 10.0 = 100 cartons per
acre). Your loss occurred in the final stage of production. Your total
indemnity is calculated as follows:
------------------------------------------------------------------------
$7,500 x 70% = dollar $5,250
amount of insurance
per acre.
14(c)(3)................. 500 cartons x $5.75 = 2,875
value of sold
production ($10
selling price minus
$4.25 allowable cost).
14(c)(4)................. 100 cartons of unsold + 500
harvested production x
$5 minimum value per
carton.
Total value of 3,375
production to count.
14(b)(5)................. Indemnity per acre = 1,875
($5,250 - $3,375) x
100% share.
$1,875 x 10.0 acres = 18,750
$18,750 total
indemnity payment.
------------------------------------------------------------------------
(c) The total value of production to count from all insurable
acreage on the unit will include:
(1) Not less than the amount of insurance per acre for the stage for
any acreage:
(i) That is abandoned;
(ii) Put to another use without our consent;
(iii) That is damaged solely by uninsured causes; or
(iv) For which you fail to provide acceptable production records;
(2) The value of the following appraised production will not be less
than the dollar amount obtained by multiplying the number of cartons of
appraised tomatoes by the minimum value per carton shown in the Special
Provisions for the planting period:
(i) Potential production on any fresh market tomato acreage that has
not been harvested the required number of times as specified in the
Special Provisions;
(ii) Unharvested mature green tomatoes (unharvested production that
is damaged or defective due to insurable causes and is not marketable
will not be counted as production to count);
(iii) Production lost due to uninsured causes; and
(iv) 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 when you put the acreage to another use or 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. (If we require you to continue to care for the crop
and you do not do so, the original appraisal will be used); or
(B) You may elect to continue to care for the crop, in which case
the amount of production to count for the acreage will be the harvested
production, or our reappraisal if the crop is not harvested.
(3) The total value of all sold harvested production from the
insurable acreage will be the dollar amount obtained by subtracting the
allowable cost contained in the actuarial documents from the price
received for each carton of fresh market tomatoes in the load (this
result may not be less than the minimum value shown in the actuarial
documents for any carton of tomatoes), and multiplying this result by
the number of cartons of fresh market tomatoes harvested.
(4) The total value of all unsold harvested production will be the
dollar amount obtained by multiplying the number of cartons of such
tomatoes on the unit by the minimum value shown in the actuarial
documentsfor the planting period. Harvested production that is damaged
or defective due to an insured cause of loss and is not sold will not be
counted as production to count.
(5) Any penhooker salvage value paid to you will be added to the
total dollar value of production to count.
15. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
16. Minimum Value Option
(a) The provisions of this option are continuous and will be
attached to and made a part of your insurance policy, if:
(1) You elect the Minimum Value Option on your application, or on a
form approved by us, on or before the sales closing date for the initial
crop year in which you wish to insure fresh market tomatoes (dollar
plan) under this option, and pay the additional premium indicated in the
actuarial documents for this optional coverage; and
(2) You have not elected coverage under the Catastrophic Risk
Protection Endorsement.
(b) In lieu of the provisions contained in sections 14(c)(3) and
14(c)(4) of these Crop
[[Page 286]]
Provisions, the total value of harvested production will be determined
as follows:
(1) For sold harvested production, the dollar amount obtained by
subtracting the allowable cost contained in the actuarial documents from
the price received for each carton of fresh market tomatoes in the load
(this result may not be less than the minimum value option price
contained in the actuarial documents for any carton of tomatoes sold),
and multiplying this result by the number of cartons of fresh market
tomatoes sold; and
(2) For unsold harvested production, the dollar amount obtained by
multiplying the number of cartons of such fresh market tomatoes on the
unit by the minimum value shown in the actuarial documents for the
planting period. Harvested production that is damaged or defective due
to an insured cause of loss and is not sold will not be counted as
production to count.
(c) 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 preceding the crop year for which the cancellation of
this option is to be effective.
------------------------------------------------------------------------
------------------------------------------------------------------------
Example with Minimum Value Option: You have a 100 percent share in 10.0
acres of fresh market tomatoes. You select a 70% coverage level of the
reference maximum dollar amount of $7,500 per acre. The average price
received is $6.00 per carton of tomatoes. Allowable costs are $4.25 per
carton. Minimum value is $5.00 per carton. The Minimum Value Option
price is $2.00 per carton. Your total sold production is 5,000 cartons
(5,000 / 10.0 = 500 cartons per acre) and you have an additional 1,000
cartons of unsold harvested production (1,000 / 10.0 = 100 cartons per
acre). Your loss occurred in the final stage of production. Your total
indemnity is calculated as follows:
------------------------------------------------------------------------
$7,500 x 70% = dollar $5,250
amount of insurance
per acre.
16(b)(1)................. 500 cartons x $2 = 1,000
value of sold
production ($6 price
received minus $4.25
allowable costs =
$1.75. The $2.00
minimum value option
price is greater than
$1.75).
16(b)(2)................. 100 cartons of unsold 500
harvested production x
$5 minimum value per
carton.
Total value of 1,500
production to count.
16(b).................... Indemnity per acre = 3,750
$5,250 - $1,500 =
$3,750 x 100% share.
$3,750 x 10.0 acres = 37,500
$37,500 total
indemnity payment.
------------------------------------------------------------------------
[62 FR 14777, Mar. 28, 1997; 62 FR 63634, Dec. 2, 1997, as amended at 62
FR 65174, Dec. 10, 1997; 77 FR 22469, Apr. 16, 2012; 87 FR 38896, June
30, 2022; 87 FR 52853, Aug. 30, 2022; 87 FR 72363, Nov. 6, 2022]
Sec. 457.140 Dry pea crop insurance provisions.
The Dry Pea Crop Insurance Provisions for the 2022 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:
Dry Pea Crop Provisions
1. Definitions
Adequate stand. A population of live plants per acre that will
produce at least the yield used to establish your production guarantee.
Base contract price. The price per pound stipulated in the
processor/seed company contract without regard to discounts or
incentives that may apply, and that will be paid to the producer for at
least 50 percent of the total production under contract with the
processor/seed company.
Combining. A mechanical process that separates dry peas from the
pods and other vegetative matter and places dry peas into a temporary
storage receptacle.
Conditioning. A process that improves the quality of production by
screening or any other operation commonly used in the dry pea industry
to remove dry peas that are deficient in quality.
Contract seed types. Peas (Pisum sativum L.) or other categories of
dry peas identified in the Special Provisions grown under the terms of a
processor/seed company contract for the purpose of producing seed to be
used in planting a future year's crop.
Dry peas. Peas (Pisum sativum L.), Austrian Peas (Pisum sativum spp
arvense), Fava or Faba beans (Vicia faba L.), Lentils (Lens culinaris
Medik.), Chickpeas (Cicer arietinum L.), and other types as listed in
the Special Provisions or insured by written agreement.
[[Page 287]]
Harvest. Combining of dry peas. Dry peas that are swathed prior to
combining are not considered harvested.
Latest final planting date. (a) The final planting date for spring-
planted acreage in all counties for which the Special Provisions
designate a spring-planted type only;
(b) The final planting date for fall-planted acreage in all counties
for which the Special Provisions designate a fall-planted type only; or
(c) The final planting date for spring-planted acreage in all
counties for which the Special Provisions designate both spring-planted
and fall-planted types.
Local market price. The cash price per pound for the U.S. No. 1
grade of dry peas as determined by us. This price will be considered the
prevailing dollar amount buyers are willing to pay for dry peas
containing the maximum limits of quality deficiencies allowable for the
U.S. No. 1 grade. Moisture content and factors not associated with
grading under the United States Standards for Whole Dry Peas, Beans
(Chickpeas, Fava or Faba beans), and Lentils will not be considered,
unless otherwise specified in the Special Provisions.
Nurse crop (companion crop). A crop planted into the same acreage as
another crop to improve the growing conditions for the crop with which
it is grown, and that is intended to be harvested separately.
Planted acreage. In addition to the definition contained in the
Basic Provisions, dry peas 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 addition to the definition contained in the
Basic Provisions, it will be considered practical to replant:
(a) Contract seed types only if the processor/seed company will
accept the production under the terms of the processor/seed company
contract.
(b) Fall-planted types 25 days or less after the final planting date
for the corresponding spring-planted type of dry peas.
Prevented planting. As defined in the Basic Provisions, except that
the references to ``final planting date'' contained in the definition in
the Basic Provisions are replaced with the ``latest final planting
date.''
Price election. In addition to the definition contained in the Basic
Provisions, the price election for contract seed types will be the
percentage you elect (not to exceed 100 percent) of the base contract
price and used for the purposes of determining premium and indemnity for
contract seed types under this policy.
Processor/seed company. Any business enterprise regularly engaged in
the processing of contract seed types, that possesses all licenses and
permits for marketing contract seed types required by the state in which
it operates, and that owns, or has contracted, sufficient drying,
screening, and bagging or packaging equipment to accept and process the
contract seed types within a reasonable amount of time after harvest.
Processor/seed company contract. A written agreement between the
producer and the processor/seed company, executed by the acreage
reporting date, containing at a minimum:
(a) The producer's promise to plant and grow one or more specific
varieties of contract seed types, and deliver the production from those
varieties to the processor/seed company;
(b) The processor/seed company's promise to purchase all the
production stated in the contract; and
(c) A fixed price, or a method to determine such price based on
published information compiled by a third party, that will be paid to
the producer for at least 50 percent of the production stated in the
contract.
Swathed. Severance of the stem and pods from the ground without
removal of the seeds from the pods and placing them into windrows.
Type. A category of dry peas identified as a type in the Special
Provisions or insured by written agreement.
Windrow. Dry peas where the plants are cut and placed in a row.
2. Unit Division.
(a) In addition to enterprise units provided in section 34(a) of the
Basic Provisions, you may elect separate enterprise units by type, as
provided in this section, if allowed by the actuarial documents. If you
elect enterprise units by type, you may not elect enterprise or optional
units by irrigation practices.
(1) You may elect separate enterprise units by type unless otherwise
specified in the Special Provisions. For example, if you have Spring
Austrian Peas and Spring Desi Chickpea types, you may elect one
enterprise unit for the Spring Austrian Peas type or one enterprise unit
for the Spring Desi Chickpeas type, or separate enterprise units for
both types. Any acreage which is not reported and insured as an
enterprise unit will be insured as a basic unit or optional unit if
requirements are met. For example, if you only have Spring Austrian Peas
and Spring Desi Chickpea types, you may have an enterprise unit for the
Spring Austrian Peas type acreage and basic or optional units for the
Spring Desi Chickpeas type acreage.
(2) You must separately meet the requirements in section 34(a)(4) of
the Basic Provisions for each enterprise unit.
(3) If you elected separate enterprise units for multiple types and
we discover enterprise unit qualifications are not separately met for
all types in which you elected enterprise unit and such discovery is
made:
[[Page 288]]
(i) On or before the acreage reporting date, you may elect to
insure:
(A) All types in which you elected an enterprise unit for meeting
the requirements in section 34(a)(4) as separate enterprise units, and
basic or optional units for any acreage that is not reported and insured
as enterprise unit, whichever you report on your acreage report and for
which you qualify;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure for all acreage of
crop in the county.
(4) If you elected an enterprise unit for only one type and we
discover you do not qualify for an enterprise unit for that type and
such discovery is made:
(i) On or before the acreage reporting date, your unit division for
all acreage of the crop in the county will be based on basic or optional
units, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure for all acreage of the crop in the county.
(b) In addition to, or instead of, establishing optional units as
provided in section 34(c) in the Basic Provisions, separate optional
units may be established for each dry pea type (designated in actuarial
documents and including any type insured by written agreement).
(c) Enterprise and optional units by type may be further divided by
acreage of contract seed types and dry pea types not grown under a
processor/seed company contract even if they share a common variety
provided each dry pea type is grown on separate acreage and the
production is kept separate.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In accordance with the requirements of section 3(b) of the Basic
Provisions, you may select only one coverage level for each type.
However, if you elect the Catastrophic Risk Protection (CAT) level of
insurance for any dry pea type, the CAT level of coverage will be
applicable to all insured dry pea acreage in the county.
(b) In addition to the requirements of section 3 of the Basic
Provisions:
(1) If the actuarial documents do not designate separate price
elections by type, you may select only one price election for all dry
peas in the county insured under this policy.
(2) If the actuarial documents designate separate price elections by
type, you may select one price election for each dry pea type even if
the prices for each type are the same. The price elections you choose
for each type are not required to have the same percentage relationship
to the maximum price offered by us for each type. For example, if you
choose 100 percent of the maximum price election for one type, you may
choose 75 percent of the maximum price election for another type.
(c) In addition to the requirements of section 3 of the Basic
Provisions, in counties with both a fall and spring sales closing date
for the insured crop:
(1) If you do not have any insurable fall-planted dry pea acreage
covered under the Winter Coverage Option, you may change your coverage
level or percentage of price election until the spring sales closing
date; or
(2) If you have any insurable fall-planted dry pea acreage covered
under the Winter Coverage Option, you may not change your coverage level
or percentage of price election after the fall sales closing date.
(d) If a dry pea type is added after the sales closing date, we will
assign:
(1) A coverage level equal to the lowest coverage level you selected
for any other dry pea types; and
(2) A price election percentage equal to:
(i) 100 percent of the price election if you elected additional
coverage; and
(ii) 55 percent of the price election if you elected catastrophic
level of coverage.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is June 30 preceding the cancellation date for counties with
an October 31 cancellation date, or November 30 preceding the
cancellation date for counties with a March 15 cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are as follows:
------------------------------------------------------------------------
Cancellation Termination
State and county date date
------------------------------------------------------------------------
All counties in California and Arizona 10/31 10/31
Counties: La Paz, Maricopa, Mohave,
Pima, Pinal, and Yuma..................
All other Arizona counties and all other 3/15 3/15
states.................................
------------------------------------------------------------------------
[[Page 289]]
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
you must submit a copy of the processor/seed company contract to us on
or before the acreage reporting date if you are insuring contract seed
types.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the dry pea types in the county for which a premium
rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvesting once maturity is reached as:
(i) Dry peas; or
(ii) Contract seed types, if the processor/seed company contract is
executed on or before the acreage reporting date;
(3) That are not planted to plow down, graze, harvest as hay, or
otherwise not planted for harvest as a mature dry pea crop; 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 as a nurse crop.
(b) You will be considered to have a share in the insured crop if,
under the processor/seed company contract, you retain control of the
acreage on which the dry peas are grown, you are at risk of loss (i.e.,
if there is a reduction in quantity or quality of your dry pea
production, you will receive less income under the contract), and the
processor/seed company contract is in effect for the entire insurance
period.
(c) In counties for which the actuarial documents provide premium
rates for the Winter Coverage Option (see section 15), coverage is
available for dry peas between the time coverage begins and the spring
final planting date. Coverage under the option is effective only if you
qualify under the terms of the option and you elect the option by its
sales closing date.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) We will not insure any acreage that does not meet the rotation
requirements, if applicable, contained in the Special Provisions; or
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that producers in the surrounding area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant.
(c) When the Special Provisions designate both fall and spring-
planted types, and the Winter Coverage Option is not in force for the
acreage:
(1) Any fall-planted dry pea acreage that is damaged before the
spring final planting date, to the extent that producers in the area
would normally not further care for the crop, must be replanted to a
fall-planted type of dry peas to obtain insurance based on the fall-
planted type unless we agree that replanting is not practical. If it is
not practical to replant to a fall-planted type of dry peas but it is
practical to replant to a spring-planted type, you must replant to a
spring-planted type to obtain insurance coverage based on the fall-
planted type.
(2) Any fall-planted dry pea acreage that is replanted to a spring-
planted type when it was practical to replant the fall-planted type will
be insured as the spring-planted type and the production guarantee,
premium and price election applicable to the spring-planted type will be
used. In this case, the acreage will be considered initially planted to
the spring-planted type.
(d) When the Special Provisions designate both fall-planted and
spring-planted types, and the Winter Coverage Option is in force for the
acreage, insurance will be in accordance with the Winter Coverage Option
(see section 15).
(e) Whenever the Special Provisions designate only a spring-planted
type, any acreage of a fall-planted dry pea crop is not insured unless
you request such coverage on or before the spring sales closing date,
and we inspect and determine that the acreage has an adequate stand in
the spring to produce the yield used to determine your production
guarantee.
(1) The fall-planted dry pea crop will be insured as a spring-
planted type for the purpose of the production guarantee, premium and
price election.
(2) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand prior to the spring final planting
date.
(3) Any acreage of such fall-planted dry peas that is damaged after
it is accepted for insurance but before the spring final planting date,
to the extent that producers in the area would normally not further care
for the crop, must be replanted to a spring-planted type of dry pea
unless we agree it is not practical to replant. No replanting payment
will be made.
(4) If fall-planted acreage is not to be insured it must be recorded
on the acreage report as uninsured fall-planted acreage.
9. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, and subject to the provisions provided by the Winter
Coverage Option (see section 15) if you elect such option, the insurance
period is as follows:
[[Page 290]]
(a) If the Special Provisions designate both fall-planted and
spring-planted types, and the Winter Coverage Option is not in force for
the acreage, you must report fall-planted acreage to your crop insurance
agent on or before the spring sales closing date. Fall-planted types are
only insurable if there is an adequate stand in the spring. Insurance
will attach to such acreage on the date we determine an adequate stand
exists or on the spring final planting date if we do not make that
determination prior to the spring final planting date, unless otherwise
specified in the Special Provisions. Fall-planted acreage must be
reported and insured if it meets the requirements of section 8.
(b) The calendar date for the end of the insurance period for all
insurable types of dry peas in the county is September 30 of the crop
year in which the crop is normally harvested unless otherwise specified
in the Special Provisions.
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during 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 due to a cause of
loss contained in section 10(a) through (g) that occurs during the
insurance period.
11. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these Crop Provisions;
(2) You must comply with all requirements regarding replanting
payments contained in section 13 of the Basic Provisions (except as
allowed in section 11(a)(1)) and in the Winter Coverage Option (see
section 15), if applicable;
(3) The insured crop 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;
(4) The acreage must have been initially planted to a spring type of
the insured crop in those counties with only a spring type designated in
the Special Provisions;
(5) When the Winter Coverage Option is in effect for the acreage,
damage must occur after the fall final planting date in those counties
where both fall and spring types are designated in the Special
Provisions;
(6) Replanting payments are not available for damaged fall-planted
types if you have not elected to cover such acreage under the Winter
Coverage Option; and
(7) The replanted crop must be seeded at a rate sufficient to
achieve a total (undamaged and new seeding) plant population that will
produce at least the yield used to determine your production guarantee.
(b) The maximum amount of the replanting payment per acre will be
the lesser of 20.0 percent of the production guarantee or 200 pounds,
multiplied by your price election, multiplied by your share, unless
otherwise stated in the Special Provisions.
(c) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
(d) Replanting payments will be calculated using the price election
and production guarantee for the dry pea type that is replanted and
insured. For example, if damaged smooth green and yellow pea acreage is
replanted to lentils, the price election and production guarantee
applicable to lentils will be used to calculate any replanting payment
that may be due. A revised acreage report will be required to reflect
the replanted type. Notwithstanding the previous two sentences, the
following will have a replanting payment based on the guarantee and
price election for the crop type initially planted:
(1) Any damaged fall-planted type of dry peas replanted to a spring-
planted type that retains insurance based on the production guarantee
and price election for the fall-planted type; and
(2) Any acreage replanted at a reduced seeding rate into a partially
damaged stand of the insured crop.
12. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
13. 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 units, we will combine all optional units for which
acceptable records of production were not provided; or
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(2) 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 to your dry pea crop covered by
this policy, we will settle your claim by:
(1) Multiplying the insured acreage of each dry pea type, if
applicable, excluding contract seed types, by its respective production
guarantee;
(2) Multiplying each result of section 13(b)(1) by the respective
price election;
(3) Totaling the results of section 13(b)(2) if there is more than
one type;
(4) Multiplying the insured acreage of each contract seed type
variety by its respective production guarantee;
(5) Multiplying each result of section 13(b)(4) by the applicable
base contract price;
(6) Multiplying each result of section 13(b)(5) by your selected
price election percentage;
(7) Totaling the results of section 13(b)(6) if there is more than
one type;
(8) Totaling the results of section 13(b)(3) and section 13(b)(7);
(9) Multiplying the total production to be counted of each dry pea
type, excluding contract seed types, if applicable (see section 13(d)),
by the respective price elections;
(10) Totaling the value of all contract seed type production (see
section 13(c));
(11) Totaling the results of section 13(b)(9) and section 13(b)(10);
(12) Subtracting the result of section 13(b)(11) from the result in
section 13(b)(8); and
(13) Multiplying the result of section 13(b)(12) by your share.
Example 1:
In this example, you have not elected optional units by type. You
have a 100 percent share in 100 acres of spring-planted smooth green dry
edible peas in the unit, with a production guarantee of 4,000 pounds per
acre and a price election of $0.09 per pound. Your selected price
election percentage is 100 percent. You are only able to harvest 200,000
pounds. Your indemnity would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000-pound guarantee;
(2) 400,000-pound guarantee x $0.09 price election = $36,000 value
of guarantee;
(9) 200,000-pound production to count x $0.09 price election =
$18,000 value of production to count;
(12) $36,000 value of guarantee - $18,000 value of production to
count = $18,000 loss; and
(13) $18,000 x 100 percent share = $18,000 indemnity payment.
Example 2:
Assume the same facts in example 1. Also assume you have a 100
percent share in 100 acres of contract seed types in the same unit, with
a production guarantee of 5,000 pounds per acre and a base contract
price of $0.40 per pound. Your selected price election percentage is 100
percent. You are only able to harvest 450,000 pounds. Your total
indemnity for both spring-planted smooth green dry edible peas and
contract seed types would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000-pound guarantee for the
spring-planted smooth green dry edible pea type;
(2) 400,000-pound guarantee x $0.09 price election = $36,000 value
of guarantee for the spring-planted smooth green dry edible pea type;
(3) $36,000 (only one spring-planted smooth green dry edible pea
type; no other types in this example to total);
(4) 100 acres x 5,000 pounds = 500,000-pound guarantee for the
contract seed type;
(5) 500,000-pound guarantee x $0.40 base contract price = $200,000
gross value of guarantee for the contract seed type;
(6) $200,000 x 1.00 price election percentage = $200,000 value of
guarantee for the contract seed type;
(7) $200,000 (only one contract seed type; no other types in this
example to total);
(8) $36,000 + $200,000 = $236,000 total value of guarantee;
(9) 200,000-pound production to count x $0.09 price election =
$18,000 value of production to count for the spring-planted smooth green
dry edible pea type;
(10) 450,000-pound production to count x $0.40 = $180,000 value of
production to count for the contract seed type;
(11) $18,000 + $180,000 = $198,000 total value of production to
count;
(12) $236,000 - $198,000 = $38,000 loss; and
(13) $38,000 loss x 100 percent share = $38,000 indemnity payment.
(c) The value of contract seed type production to count for each
variety in the unit will be determined as follows:
(1) For mature production meeting the objective, measurable minimum
quality requirements (e.g., size, germination percentage) contained in
the processor/seed company contract, and for mature production that does
not meet such requirements due to uninsured causes:
(i) Multiplying the local market price or base contract price per
pound, whichever is greater, by the price election percentage you
selected; and
(ii) Multiplying the result by the number of pounds of such
production.
(2) For mature production not meeting the objective, measurable
minimum quality requirements (e.g., size, germination percentage)
contained in the processor/seed company contract, due to insurable
causes, and immature production that is appraised:
(i) Multiplying the highest local market price available for such
dry peas by the price election percentage you selected; and
[[Page 292]]
(ii) Multiplying the result by the number of pounds of such
production.
(d) The total dry pea production to count (in pounds) 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 put to another use without our consent;
(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 (mature unharvested production of dry
peas may be adjusted for quality deficiencies and excess moisture in
accordance with section 13(c) or (e), or as specified in the Special
Provisions if applicable); and
(iv) 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 when 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 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 the crop is not harvested; and
(2) All harvested production from the insurable acreage.
(e) Mature dry pea production to count may be adjusted for excess
moisture and quality deficiencies. Any adjustment for moisture will be
made prior to any adjustment for quality. Adjustment for excess moisture
and quality deficiencies will not be applicable to contract seed types.
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of 14 percent. We may obtain
samples of the production to determine the moisture content.
(2) Production will be eligible for quality adjustment in accordance
with the following, unless otherwise specified in the Special
Provisions:
(i) Deficiencies in quality, in accordance with the United States
Standards for Whole Dry Peas, Beans (Chickpeas, Fava or Faba beans), and
Lentils, result in production grading U.S. No. 2 or worse because of
defects, color, skinned production (lentils only), odor, material
weathering, or distinctly low quality; 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 which occurs within the insurance period;
(ii) The deficiencies, substances, or conditions result in a net
price for the damaged production that is less than the local market
price;
(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;
(iv) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjuster), the samples are analyzed
by:
(A) A grader licensed under the United States Agricultural Marketing
Act or the United States Warehouse Act;
(B) A grader licensed under State law and employed by a warehouse
operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grader not licensed under State law, but who is employed by a
warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(v) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Dry Pea production that is eligible for quality adjustment, as
specified in sections 13(e)(2) and (3), will be reduced as follows:
(i) The highest local market price for the qualifying damaged
production will be determined on the earlier of the date such damaged
production is sold or the date of final inspection for the unit. The
highest local market price for the qualifying damaged production will be
determined in the local area to the extent feasible. We may obtain
prices from any buyer of our choice. If we obtain
[[Page 293]]
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 dry peas to those buyers. Discounts used to establish the net value
of the damaged production will be limited to those that are usual,
customary, and reasonable.
The value will not be reduced for:
(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 dry peas; except, if
the value of the damaged production can be increased by conditioning, we
may reduce the value of the production after it has been conditioned by
the cost of conditioning but not lower than the value of the production
before conditioning;
(ii) The value per pound of the damaged or conditioned production
will be divided by the local market price to determine the quality
adjustment factor; and
(iii) The number of pounds remaining after any reduction due to
excess 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 to be
included in section 13(d);
(f) Any production harvested from plants growing in the insured crop
may be counted as production of the insured crop on a weight basis.
14. Prevented Planting
(a) In counties for which the Special Provisions designate both
fall-planted and spring-planted types, your prevented planting
production guarantee will be based on your approved yield for spring-
planted acreage of the insured crop.
(b) Your prevented planting coverage will be a percentage specified
in the actuarial documents of your production guarantee for timely
planted acreage. If you have additional levels of coverage and pay an
additional premium, you may increase your prevented planting coverage if
such additional coverage is specified in the actuarial documents.
15. Winter Coverage Option
(a) In the event of a conflict between this section and sections 1
through 14 of these Crop Provisions, this section will control.
(b) You must have purchased additional coverage under the Dry Pea
Crop Provisions in order to select this option.
(c) In return for payment of the additional premium designated in
the actuarial documents, this option is available in counties for which
the actuarial documents provide premium rates for the Winter Coverage
Option.
(d) This option is available only in counties for which the Special
Provisions designate both fall-planted and spring-planted types.
(e) You must select this option on your application for insurance,
or on a form approved by us, on or before the sales closing date for the
initial year in which you wish to insure dry peas under this option.
(1) Failure to do so means you have rejected this coverage for the
dry pea crop planted in the fall and this option is void.
(2) This option will continue in effect until canceled or coverage
under the Dry Pea Crop Provisions is canceled or terminated.
(3) This option may be canceled by you or us for any succeeding crop
year by giving written notice to the other party on or before the
cancellation date contained in section 15(g) preceding the crop year for
which the cancellation of this option is to be effective.
(4) You may change your coverage level or percentage of price
election for dry pea types until the spring sales closing date if you
have selected this option, but do not have any insured fall-planted
acreage or your fall-planted acreage is not eligible for this option.
(f) Coverage under this option 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.
(g) If you elect this option for dry peas initially planted in the
fall, the following dates will be applicable to all your fall-planted
and spring-planted dry peas in the county:
(1) Contract change date is June 30 preceding the cancellation date;
(2) Cancellation date is September 30; and
(3) Termination date is November 30. For a policy with amounts due,
when the sales closing date is prior to the previous crop year
termination date, such policies will terminate for the current crop year
even if insurance attached prior to the termination date. Such
termination will be considered effective as of the sales closing date
and no insurance will be considered to have attached for the crop year
and no indemnity, prevented planting or replant payment will be owed.
(h) All notices of damage must be provided to us not later than 15
days after the spring final planting date designated in the Special
Provisions.
(i) All insurable acreage of each fall-planted dry pea type covered
under this option must be insured.
(j) The amount of any indemnity paid under the terms of this option
will be subject to any reduction specified in the Basic Provisions for
multiple crop benefits in the same crop year.
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(k) Whenever any acreage of dry peas planted in the fall is damaged
during the insurance period and at least 20 acres or 20 percent of the
insured planted 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:
(1) Continue to care for the damaged dry peas. By doing so, coverage
will continue under the terms of the Basic Provisions, these Crop
Provisions and this option;
(2) Replant the acreage to an appropriate type of insured dry peas,
if it is practical, and receive a replanting payment in accordance with
the terms of section 11. By doing so, coverage will continue under the
terms of the Basic Provisions, these Crop Provisions and this option,
and the production guarantee for the dry pea type planted in the fall
will remain in effect; or
(3) Destroy the remaining crop on such acreage:
(i) By destroying the remaining crop, you agree to accept an
appraised amount of production determined in accordance with section
13(d)(1) of these Crop Provisions to count against the unit production
guarantee. 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 section 13.
(ii) You may use such acreage for any purpose, including planting
and separately insuring any other crop if such insurance is available.
(iii) If you elect to plant and elect to insure spring-planted dry
pea acreage of the same dry pea type (you must elect whether or not you
want insurance on the spring-planted acreage of the same dry pea type at
the time we release the fall-planted acreage), you must pay additional
premium for insurance. Such acreage will be insured in accordance with
the policy provisions that are applicable to acreage that is initially
planted in the spring to the same dry pea type, and you must:
(A) Plant the spring-planted acreage in a manner which results in a
clear and discernable break in the planting pattern at the boundary
between it and any remaining acreage of the fall-planted dry pea
acreage; and
(B) Store or market the production in a manner which permits us to
verify the amount of spring-planted production separately from any fall-
planted production. In the event you are unable to provide records of
production that are acceptable to us, the spring-planted acreage will be
considered to be a part of the original fall-planted unit.
[62 FR 65744, Dec. 16, 1997, as amended at 63 FR 36157, July 2, 1998; 67
FR 55691, Aug. 30, 2002; 73 FR 51582, Sept. 4, 2008; 75 FR 15888, Mar.
30, 2010; 81 FR 84400, Nov. 23, 2016; 85 FR 38279, June 26, 2020; 85 FR
76428, Nov. 30, 2020; 86 FR 11091, Feb. 24, 2021; 86 FR 33083, June 24,
2021]
Sec. 457.141 Rice crop insurance provisions.
The Rice Crop Insurance Provisions for the 2020 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
Rice Crop Provisions
1. Definitions
Flood irrigation. An irrigated practice commonly used for rice
production whereby the planted acreage is intentionally covered with
water that is maintained at a uniform and shallow depth throughout the
growing season.
Harvest. Combining or threshing the rice for grain. A crop that is
swathed prior to combining is not considered harvested.
Local market price. The cash price per pound for the U.S. No. 3
grade of rough rice offered by buyers in the area in which you normally
market the rice. Factors not associated with grading under the United
States Standards for Rice including, but not limited to, protein and oil
content or milling quality will not be considered.
Planted acreage. In addition to the definition in section 1 of the
Basic Provisions, land on which there is uniform placement of an
adequate amount of rice seed into a prepared seedbed by one of the
following methods (Acreage seeded in any other manner will not be
insurable unless otherwise provided by the Special Provisions or by
written agreement):
(a) Drill seeding--Using a grain drill to incorporate the seed to a
proper soil depth;
(b) Broadcast seeding--Distributing seed evenly onto the surface of
an un-flooded seedbed followed by either timely mechanical incorporation
of the seed to a proper soil depth in the seedbed or flushing the
seedbed with water; or
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(c) Broadcast seeding into a controlled flood--Distributing the rice
seed onto a prepared seedbed that has been intentionally covered to a
proper depth by water. The water must be free of movement and be
completely contained on the acreage by properly constructed levees and
gates.
Saline water. Water that contains a concentration of salt sufficient
to cause damage to the insured crop.
Second crop rice. The regrowth of a stand of rice following harvest
of the initially insured rice crop that can be harvested in the same
crop year.
Swathed. Severance of the stem and grain head from the ground
without removal of the rice kernels from the plant and placing in a
windrow.
Total milling yield. Rice production consisting of heads, second
heads, screenings, and brewer's rice as defined by the official United
States Standards for Rice.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you must elect to insure your rice with either revenue
protection or yield protection by the sales closing date.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and
State and county termination date
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak, January 31.
McMullen, La Salle, and Dimmit Counties,
Texas; and all Texas Counties south
thereof;
Florida.................................... February 15.
Illinois and Missouri...................... March 15.
All other states........................... February 28.
------------------------------------------------------------------------
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the rice in the county for which a premium rate is
provided by the actuarial documents or by written agreement:
(a) In which you have a share;
(b) That is planted for harvest as grain;
(c) That is flood irrigated unless otherwise specified in the
Special Provisions; and
(d) That is not wild rice.
7. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) We will not insure any acreage planted to rice:
(1) The preceding crop year unless allowed by the Special
Provisions; or
(2) That 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 producers in the area would normally
not further care for the crop, must be replanted unless we agree that it
is not practical to replant.
8. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is
October 31 immediately following planting.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions (except drought);
(2) Fire;
(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 if caused by an insured
cause of loss specified in sections 9(a)(1) through (7), drought, or the
intrusion of saline water; or
(9) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
[[Page 296]]
(b) In addition to the causes of loss not insured against in section
12 of the Basic Provisions, we will not insure against any loss of
production due to the application of saline water, except as specified
in section 9(a)(8) of these crop provisions.
10. Replanting Payment
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these Crop Provisions;
(2) Except as specified in section 10(a)(1), you must comply with
all requirements regarding replanting payments contained in section 13
of the Basic Provisions;
(3) The insured crop 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; and
(4) The replanted crop must be seeded at a rate that is normal for
initially planted rice (if new seed is planted at a reduced seeding rate
into a partially damaged stand of rice, the acreage will not be eligible
for a replanting payment).
(b) Unless otherwise specified in the Special Provisions, the amount
of the replanting payment per acre will be the lesser of 20 percent of
the production guarantee or 400 pounds, multiplied by your projected
price, multiplied by your share.
(c) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
11. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
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 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 number of insured acres by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection; or
(ii) Revenue protection guarantee (per acre) if you elected revenue
protection;
(2) Totaling the results of section 12(b)(1)(i) or 12(b)(1)(ii),
whichever is applicable;
(3) Multiplying the production to count by your:
(i) Projected price if you elected yield protection; or
(ii) Harvest price if you elected revenue protection;
(4) Totaling the results of section 12(b)(3)(i) or 12(b)(3)(ii),
whichever is applicable;
(5) Subtracting the result of section 12(b)(4) from the result of
section 12(b)(2); and
(6) Multiplying the result of section 12(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of rice in the unit with a
production guarantee (per acre) of 3,750 pounds, your projected price is
$.0750, your harvest price is $.0700, and your production to count is
150,000 pounds.
If you elected yield protection:
(1) 50 acres x (3,750 pound production guarantee x $.0750 projected
price) = $14,062.50 value of the production guarantee
(3) 150,000 pound production to count x $.0750 projected price =
$11,250.00 value of the production to count
(5) $14,062.50 - $11,250.00 = $2,812.50
(6) $2,812.50 x 1.000 share = $2,813.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (3,750 pound production guarantee x $.0750 projected
price) = $14,062.50 revenue protection guarantee
(3) 150,000 pound production to count x $.0700 harvest price =
$10,500.00 value of the production to count
(5) $14,062.50 - $10,500.00 = $3,562.50
(6) $3,562.50 x 1.000 share = $3,563.00 indemnity.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) For yield protection, not less than the production guarantee and
for revenue protection, not less than the amount of production that when
multiplied by the harvest price equals the revenue protection guarantee
(per acre) 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;
(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
section 12(d));
[[Page 297]]
(iv) 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 when 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, including
any production from a second rice crop harvested in the same crop year.
(d) Mature rough rice 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 12 percent. 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 Rice, result in rice not meeting the grade
requirements for U.S. No. 3 (grades U.S. No. 4 or worse) because of red
rice, chalky kernels or damaged kernels;
(ii) The rice has a total milling yield of less than 68 pounds per
hundredweight;
(iii) The whole kernel weight is less than 55 pounds per
hundredweight of milled rice for medium and short grain varieties;
(iv) The whole kernel weight is less than 48 pounds per
hundredweight of milled rice for long grain varieties; or
(v) 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 specified in section
12(d)(2) resulted from a cause of loss against which insurance is
provided under these crop provisions and which occurs within the
insurance period;
(ii) The deficiencies, substances, or conditions specified in
section 12(d)(2) result in a net price for the damaged production that
is less than the local market price;
(iii) All determinations of these deficiencies, substances, or
conditions specified in section 12(d)(2) are made using samples of the
production obtained by us or by a disinterested third party approved by
us;
(iv) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjuster), the samples are analyzed
by:
(A) A grader licensed under the United States Agricultural Marketing
Act or the United States Warehouse Act;
(B) A grader licensed under State law and employed by a warehouse
operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grader not licensed under State law, but who is employed by a
warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(v) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Rice production that is eligible for quality adjustment, as
specified in sections 12(d) (2) and (3), will be reduced as follows:
(i) In accordance with quality adjustment factors contained in the
Special Provisions; or
(ii) If quality adjustment factors are not contained in the Special
Provisions, as follows:
(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 that are usual, customary, and reasonable. The price will not be
reduced for:
(1) Moisture content;
(2) Damage due to uninsured causes; or
(3) Drying, handling, processing, or any other costs associated with
normal harvesting, handling, and marketing of the rice; 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,
[[Page 298]]
(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 rice 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. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 28310, May 23, 1997, as amended at 62 FR 65174, Dec. 10, 1997; 65
FR 56774, Sept. 20, 2000; 67 FR 55691, Aug. 30, 2002; 75 FR 15888,
15889, Mar. 30, 2010; 81 FR 84400, Nov. 23, 2016; 84 FR 64413, Nov. 22,
2019]
Sec. 457.142 Northern potato crop insurance provisions.
The Northern Potato Crop Insurance Provisions for the 2017 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:
Northern Potato Crop Provisions
These provisions will be applicable in: Alaska; Humboldt, Modoc, and
Siskiyou Counties, California; Colorado; Connecticut; Idaho; Indiana;
Iowa; Kansas; Maine; Massachusetts; Michigan; Minnesota; Montana;
Nebraska; Nevada; San Juan County, New Mexico; New York; North Dakota;
Ohio; Oregon; Pennsylvania; Rhode Island; South Dakota; Utah;
Washington; Wisconsin; and Wyoming; and any other states or counties if
allowed by the Special Provisions.
1. Definitions
Buyer. A business entity in the business of buying or processing
potatoes, that possesses all the licenses and permits required by the
state in which it operates, and has the facilities to accept the
potatoes purchased.
Certified seed. Potatoes that were entered into the potato certified
seed program and that meet all requirements for production to be used to
produce a seed crop for the next crop year or a potato crop for harvest
for commercial uses in the next crop year.
Discard. Disposal of production by you, or a person acting for you,
without receiving any value for it.
Disposed. Any disposition of the crop including but not limited to
sale or discard.
Grade inspection. An inspection in which samples of production are
obtained by us, or a party approved by us, prior to the sale, storage,
or disposal of any lot of potatoes, or any portion of a lot and the
potatoes are evaluated and quality (grade) determinations are made by
us, a laboratory approved by us, or a potato grader licensed or
certified by the applicable State or the United States Department of
Agriculture, in accordance with the United States Standards for Grades
of Potatoes. The United States standards used to determine the quality
(grade) deficiencies will be: For potatoes produced for chipping, the
United States Standards for Grades of Potatoes for Chipping; for
potatoes produced for processing, the United States Standards for Grades
of Potatoes for Processing; for potatoes produced for seed, the United
States Standards for Grades of Seed Potatoes; and for all other
potatoes, the United States Standards for Grades of Potatoes. The
quantity and number of samples required will be determined in accordance
with procedure issued by FCIC.
Harvest. Lifting potatoes from within the soil to the soil surface.
Hundredweight. One hundred (100) pounds avoirdupois.
Local market. The area in which the insured potatoes are normally
sold.
Lot. A quantity of production that can be separated from other
quantities of production by grade characteristics, load, location or
other distinctive features.
Potato certified seed program. The state program administered by a
public agency responsible for the seed certification process within the
state in which the seed is produced.
Tuber rot. Any soft, mushy, or leaky condition of potato tissue
(soft rot or wet breakdown as defined in the United States Standards for
Grades of Potatoes), including, but not limited to, breakdown caused by
Southern Bacterial Wilt, Ring Rot, or Late Blight.
[[Page 299]]
2. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all the potatoes
in the county insured under this policy unless the Special Provisions
provide different price elections by type. If the Special Provisions
provide for different price elections by type, you may select one price
election for each potato type designated in the Special Provisions. The
price elections you choose for each type must have the same percentage
relationship to the maximum price election offered by us for each type.
For example, if you choose 100 percent of the maximum price election for
one type, you must also choose 100 percent of the maximum price election
for all other types.
(b) If the production from any acreage of the insured crop is not
harvested, the price used to determine your indemnity will be 90 percent
of your price election. This requirement is not applicable to the
certified seed endorsement price election.
(c) The price election for unharvested acreage will apply to any
acreage of potatoes damaged to the extent that similarly situated
producers in the area would not normally care for the potatoes even if
you choose to continue to care for or harvest them. Potatoes that are
lifted to the soil surface and not removed from the field will also
receive the price election for unharvested acreage.
3. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
5. Annual Premium
In lieu of the premium computation method contained in section 7 of
the Basic Provisions, the annual premium amount (y) is computed by
multiplying (a) the production guarantee by (b) the price election for
harvested acreage, by (c) the premium rate, by (d) the insured acreage,
by (e) your share at the time of planting, and by (f) any applicable
premium adjustment factors contained in the actuarial documents (a x b x
c x d x e x f = y).
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the potatoes in the county for which a premium rate
is provided by the actuarial documents:
(a) In which you have a share;
(b) Planted with certified seed (unless otherwise permitted by the
Special Provisions);
(c) Planted for harvest as certified seed stock, or for human
consumption, (unless specified otherwise in the Special Provisions);
(d) That are not (unless allowed by the Special Provision or by
written agreement):
(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 of the Basic Provisions,
we will not insure any acreage that:
(a) Does not meet the rotation requirements contained in the Special
Provisions for the crop; or
(b) Is damaged before the final planting date to the extent that
similarly situated producers in the area would normally not further care
for the crop, unless it is replanted or we agree that it is not
practical to replant.
8. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is the
date immediately following planting as follows (exceptions, if any, for
specific counties, varieties or types are contained in the Special
Provisions):
(a) October 1, in Alaska;
(b) October 10 in Nebraska and Wyoming;
(c) October 15 in Colorado; Indiana; Iowa; Michigan; Minnesota;
Montana; Nevada; North Dakota; South Dakota; Utah; and Wisconsin;
(d) October 20 in Maine;
(e) October 25 in Kansas; and
(f) October 31 in Humboldt, Modoc, and Siskiyou Counties,
California; Connecticut; Idaho; Massachusetts; San Juan County, New
Mexico; New York; Ohio; Oregon; Pennsylvania; Rhode Island; and
Washington.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur within the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but only if sufficient and proper pest control measures
are used;
(4) Plant disease, but only if sufficient and proper disease control
measures are used;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
[[Page 300]]
(8) Failure of the irrigation water supply, if caused by an insured
peril that occurs during the insurance period (see section 9(a)(1)
through (7)).
(b) In addition to the causes of loss not insured against as
contained in section 12 of the Basic Provisions, we will not insure
against any loss of production due to:
(1) Damage that occurs or becomes evident after the end of the
insurance period, including, but not limited to, damage that occurs or
becomes evident in storage; or
(2) Causes, such as freeze after certain dates, as limited by the
Special Provisions.
10. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples at least 10 feet wide
and extending the entire length of each field in the unit if you are
going to destroy any acreage of the insured crop that will not be
harvested.
(b) We must be given the opportunity to perform a grade inspection
on the production from any unit for which you have given notice of
damage.
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 units, we will combine all optional units for
which acceptable production records were not provided; and
(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) Multiplying the insured acreage by its respective production
guarantee (If there is unharvested acreage in the unit, the harvested
and unharvested acreage will be determined separately);
(2) Multiplying each result in section 11(b)(1) by the respective
price election (The price election may be limited as specified in
section 3.);
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable (see section 11(d)), by the respective price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the results of section 11(b)(5) from the result in
section 11(b)(3); and
(7) Multiplying the result of section 11(b)(6) by your share.
For example:
You have a 100 percent share in 100 harvested acres of potatoes in
the unit, with a guarantee of 150 hundredweight per acre and a price
election of $4.00 per hundredweight. You are only able to harvest 10,000
hundredweight. Your indemnity would be calculated as follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee;
(2) 15,000 hundredweight x $4.00 price election = $60,000.00 value
of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count;
(6) $60,000.00 - $40,000.00 = $20,000.00 loss; and
(7) $20,000.00 x 100 percent = $20,000.00 indemnity payment.
You also have a 100 percent share in 100 unharvested acres of
potatoes in the same unit, with a guarantee of 150 hundredweight per
acre and a price election of $3.60 per hundredweight. (The price
election for unharvested acreage is 90.0 percent of your elected price
election ($4.00 x 0.90 = $3.60.)) This unharvested acreage was appraised
at 35 hundredweight per acre for a total of 3500 hundredweight as
production to count. Your total indemnity for the harvested and
unharvested acreage would be calculated as follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee
for the harvested acreage, and
100 acres x 150 hundredweight = 15,000 hundredweight guarantee for
the unharvested acreage;
(2) 15,000 hundredweight guarantee x $4.00 price election =
$60,000.00 value of guarantee for the harvested acreage, and
15,000 hundredweight guarantee x $3.60 price election = $54,000.00
value of guarantee for the unharvested acreage;
(3) $60,000.00 + $54,000.00 = $114,000.00 total value of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count for the harvested acreage, and 3500 hundredweight
x $3.60 = $12,600.00 value of production to count for the unharvested
acreage;
(5) $40,000.00 + $12,600.00 = $52,600.00 total value of production
to count;
(6) $114,000.00 - $52,600.00 = $61,400.00 loss; and
(7) $61,400.00 loss x 100 percent = $61,400.00 indemnity payment.
(c) The extent of any quality loss must be determined based on
samples obtained no later than the time the potatoes are placed in
storage, if the production is stored prior to sale, or the date they are
delivered to a buyer, wholesaler, packer, broker, or other handler if
production is not stored.
(d) The total production to count (in hundredweight) 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 put to another use without our consent;
[[Page 301]]
(C) That is damaged solely by uninsured causes;
(D) From which any production is disposed of without a grade
inspection; or
(E) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Production lost due to harvest prior to full maturity.
Production to count from such acreage will be determined by increasing
the amount of harvested production by 2 percent per day for each day the
potatoes were harvested prior to the date the potatoes would have
reached full maturity. The date the potatoes would have reached full
maturity will be considered to be 45 days prior to the calendar date for
the end of the insurance period, unless otherwise specified in the
Special Provisions. This adjustment will not be made if the potatoes are
damaged by an insurable cause of loss, and leaving the crop in the field
would either reduce production or decrease quality;
(iv) Unharvested production, including unharvested production on
insured acreage you intend to put to another use or abandon, or acreage
damaged by insurable causes and for which you cease to provide further
care, if you and we agree on the appraised amount of production. Upon
such agreement, the insurance period for that acreage will end when you
put the acreage to another use or cease providing care for the crop.
This unharvested production may be adjusted in accordance with sections
11(e), (f), and (g); and the value of all unharvested production will be
calculated using the reduced price election determined in section 2(b).
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 price used to determine the
amount of any indemnity will be limited as specified in section 2 even
if the representative samples are harvested. 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 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 (the amount
of production prior to the sorting or discarding of any production).
(e) Potato production is eligible for quality adjustment if:
(1) The potatoes have freeze damage or tuber rot that is evident at,
or prior to, the end of the insurance period; and
(2) A grade inspection is completed no later than 21 days after the
end of the insurance period (if the Northern Potato Storage Coverage
Endorsement is applicable, samples must be obtained within 60 days after
the end of the insurance period and quality (grade) determinations must
be completed with 21 days of sampling); and
(3) Prior to any grade inspection, you must notify us of the
intended use of the potatoes so the appropriate United States standards
will be applied (We may request previous sales records to verify your
claimed intended use or base the intended use on the type of potato
grown if such potatoes are not usually grown for the intended use you
reported).
(f) Potato production to count that is eligible for quality
adjustment, as specified in section 11(e), with 5 percent damage or less
(by weight) will be adjusted 0.1 percent for each 0.1 percent of damage
through 5.0 percent.
(g) Potato production to count that is eligible for quality
adjustment, as specified in section 11(e), with 5.1 percent damage or
more (by weight) will be determined as follows:
(1) If a price is agreed upon between you and a buyer within 21 days
(60 days if the Northern Potato Storage Coverage endorsement is
applicable), after the end of the insurance period, or the production is
delivered to a buyer within 21 days (60 days if the Northern Potato
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production will be determined by:
(i) Dividing the price per hundredweight received or that will be
received by the highest price election designated in the Special
Provisions or addendum thereto for the insured potato type (if the
production is sold for a price lower than the value appropriate to and
representative of the local market, we will determine the value of the
production based on the price you could have received in the local
market); and
(ii) Multiplying the result (not to exceed 1.0) by the number of
hundredweight of sold or to be sold production (We may verify this after
the production has actually been sold); or
(2) If a price is not agreed upon between you and a buyer and the
production is not delivered within 21 days (60 days if the Northern
Storage Coverage Endorsement is applicable) after the end of the
insurance period, and that remain in storage 22 or more days (61 or more
days if the Northern Potato
[[Page 302]]
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production will be the greater of:
(i) The amount determined by:
(A) Dividing the price per hundredweight that is received, or will
be received after the end of the applicable insurance period, by the
highest price election designated in the Special Provisions or addendum
thereto for the insured potato type (if the production is sold for a
price lower than the value appropriate to and representative of the
local market, we will determine the value of the production based on the
price you could have received in the local market); and
(B) Multiplying the result of section 11(g)(2)(i)(A) (not to exceed
1.0) by the number of hundredweight of sold or to be sold production (We
may verify this after the production has actually been sold); or
(ii) The amount of production determined by:
(A) Reducing any harvested or appraised production:
(1) By 0.1 percent for each 0.1 percent damage through 5.0 percent;
(2) By 0.5 percent for each 0.1 percent of damage from 5.1 percent
through 6.0 percent;
(3) By 1.0 percent for each 0.1 percent of damage from 6.1 through
13.5 percent; or
(B) Including 15 percent of the production when damage is in excess
of 13.5 percent.
(iii) For any production discarded:
(A) Within 21 days (60 days if the Northern Potato Storage Coverage
Endorsement is applicable), after the end of the insurance period, the
amount of production to count will be:
(1) Zero if we determine the production could not have been sold; or
(2) Determined in accordance with section 11(g)(2)(ii) if we
determine the production could have been sold; or
(B) Later than 21 days (60 days if the Northern Potato Storage
Coverage Endorsement is applicable), after the end of the insurance
period, the amount of production to count will be adjusted in accordance
with section 11(g)(2)(ii).
12. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional coverage and pay an additional premium,
you may increase your prevented planting coverage if such additional
coverage is specified in the actuarial documents.
[62 FR 65331, Dec. 12, 1997, as amended at 72 FR 61282, Oct. 30, 2007;
81 FR 84400, Nov. 23, 2016]
Sec. 457.143 Northern potato crop insurance--quality endorsement.
The Northern Potato Crop Insurance Quality Endorsement Provisions
for the 2022 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:
Northern Potato Crop Insurance Quality Endorsement
1. Definitions
Percentage factor. The historical average percentage of potatoes
grading U.S. No. 2 or better, by type, determined from your records. If
at least 4 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 4 years of records are available, the percentage
factor will be determined based on a combination of your records and the
percentage factor contained in the Special Provisions so that such a
combination would be the functional equivalent of 4 years of records.
2. The additional premium amount for this coverage will be
determined by multiplying the number of your insured planted acres of
potatoes by the premium rate for this Endorsement contained in the
actuarial documents. In return for payment of the additional premium
designated in the actuarial documents, this Endorsement is attached to
and made part of your Northern Potato Crop Insurance Provisions subject
to the terms and conditions described herein. In the event of a conflict
between the Northern Potato Crop Insurance Provisions and this
Endorsement, this Endorsement will control.
3. You must elect this endorsement on or before the sales closing
date for the initial crop year in which you wish to insure your potatoes
under this endorsement. This endorsement will continue in effect until
canceled. It may be canceled by either you or us for any succeeding crop
year by giving written notice to the other party on or before the
cancellation date.
4. All acreage of potatoes insured under the Northern Potato Crop
Insurance Provisions will be insured under this endorsement except:
(a) Any acreage specifically excluded by the actuarial documents;
and
(b) Any acreage grown for seed.
[[Page 303]]
5. We will adjust the production to count determined in accordance
with section 15 of the Basic Provisions and section 11 of the Northern
Potato Crop Insurance Provisions for potatoes that do not meet U.S. No.
2 grade requirements from unharvested acreage or harvested acreage that
is stored or is marketed after a grade inspection due to:
(a) Internal defects as long as the number of potatoes with such
defects are in excess of the tolerances allowed for the U.S. No. 2 grade
potatoes on a lot basis and are not separable from undamaged production
using methods used by the packers or processors to whom you normally
deliver your potato production as follows:
(1) If a price is agreed upon between you and a buyer within 21 days
(60 days if the Northern Potato Crop Insurance--Storage Coverage
Endorsement is applicable) after the end of the insurance period, or the
production is delivered to a buyer within 21 days (60 days if the
Northern Potato Crop Insurance--Storage Coverage Endorsement is
applicable) after the end of the insurance period, the amount of
production will be determined by (adjustment under section 5(a)(1) or
5(a)(2)(i) will not be performed if it already has been performed under
the terms of section 11(g) of the Northern Potato Crop Insurance
Provisions):
(i) Dividing the price received or that will be received per
hundredweight by the highest price election designated in the actuarial
documents for the insured potato type (if the production is sold for a
price lower than the value appropriate to and representative of the
local market, we will determine the value of the production based on the
price you could have received in the local market); and
(ii) Multiplying the result (not to exceed 1.0) by the number of
hundredweight of sold or to be sold production (We may verify this after
the production has actually been sold); or
(2) If a price is not agreed upon between you and a buyer and the
production is not delivered within 21 days (60 days if the Northern
Potato Crop Insurance--Storage Coverage Endorsement is applicable) after
the end of the insurance period, and the potatoes remain in storage 22
or more days (61 or more days if the Northern Potato Crop Insurance--
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production will be the greater of:
(i) The amount of production determined by:
(A) Dividing the price per hundredweight that is received, or will
be received after the end of the applicable insurance period, by the
highest price election designated in the actuarial documents for the
insured potato type (if the production is sold for a price lower than
the value appropriate to and representative of the local market, we will
determine the value of the production based on the price you could have
received in the local market); and
(B) Multiplying the result of section 5(a)(2)(i)(A) (not to exceed
1.0) by the number of hundredweight of sold or to be sold production (We
may verify this after the production has actually been sold); or
(ii) The amount of production determined as follows:
(A) The combined weight of sampled potatoes grading U.S. No. 2 or
better (the amount of potatoes grading U.S. No. 2 will be based on a
grade inspection completed no later than 21 days after the end of the
insurance period (if the Northern Potato Crop Insurance--Storage
Coverage Endorsement is applicable), samples must be obtained within 60
days after the end of the insurance period and a grade inspection
completed within 21 days of sampling) and are damaged by freeze or tuber
rot will be divided by the total sample weight;
(B) The percentage determined in section 5(a)(2)(ii)(A) will be
divided by the applicable percentage factor; and
(C) The result of section 5(a)(2)(ii)(B) will be multiplied by the
amount of production to count determined in accordance with section 15
of the Basic Provisions and section 11 of the Northern Potato Crop
Insurance Provisions.
(b) Factors other than those specified in section 5(a), in
accordance with section 5(a)(2)(ii).
6. For any production that qualifies for adjustment in accordance
with section 5(a) and that is discarded:
(a) Within 21 days (60 days if the Northern Potato Crop Insurance--
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production to count will be:
(1) Zero if we determine the production could not have been sold; or
(2) Determined in accordance with section 5(a)(2)(ii) if we
determine the production could have been sold; or
(b) Later than 21 days (60 days if the Northern Potato Crop
Insurance--Storage Coverage Endorsement is applicable), after the end of
the insurance period, the amount of production to count will be adjusted
in accordance with section 5(a)(2)(ii).
7. Potatoes harvested or appraised prior to full maturity that do
not grade U.S. No. 2 due solely to size will be considered to have met
U.S. No. 2 standards unless the potatoes are damaged by an insurable
cause of loss and leaving the crop in the field would either reduce
production or decrease quality.
8. Production to count for potatoes destroyed, stored, or marketed
without a grade inspection will be 100 percent of the gross weight of
such potatoes.
[[Page 304]]
9. All determinations must be based upon a grade inspection.
10. The actuarial documents may provide ``U.S. No. 1 grade'' in
place of ``U.S. No. 2 grade'' as used in this endorsement.
(a) If both U.S. No.1 and U.S. No. 2 grades are available in the
Special Provisions, you may elect U.S. No. 1 or 2 grade by potato type
or group, if separate types or groups are specified in the Special
Provisions.
(b) If both fresh and processing types are specified in the Special
Provisions, you cannot elect the fresh type for any potatoes grown for
processing or chipping.
[62 FR 65335, Dec. 12, 1997, as amended at 72 FR 61283, Oct. 30, 2007;
86 FR 22842, Apr. 30, 2021]
Sec. 457.144 Northern potato crop insurance--processing quality endorsement.
The Northern Potato Crop Insurance Processing Quality Endorsement
Provisions for the 2022 and succeeding crop years are as follows:
1. Definitions
Broker. Any business enterprise regularly engaged in the buying and
selling of processing potatoes, that possesses all licenses and permits
as required by the state in which it operates, and when required, has
the necessary facilities or the contractual access to such facilities,
with enough equipment to accept and transfer processing potatoes to the
broker within a reasonable amount of time after harvest or the typical
storage period.
Percentage factor. The term as defined in the Northern Potato Crop
Insurance--Quality Endorsement.
Processor. Any business enterprise regularly engaged in processing
potatoes for human consumption, that possesses all licenses and permits
for processing potatoes 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 processing potatoes grown
under a processing contract within a reasonable amount of time after
harvest or the typical storage period.
Processor contract. A written agreement between the producer and
processor, or between a producer and a broker, containing at a minimum:
(a) The producer's commitment to plant and grow processing potatoes,
and to deliver the potato production to the processor or broker;
(b) The processor's or broker's commitment to purchase all the
production stated in the processing contract; and
(c) A price or pricing mechanism to determine the value of delivered
production.
2. To be eligible for coverage under this endorsement, you must have
a:
(a) Northern Potato Crop Insurance--Quality Endorsement in place and
elect this endorsement on or before the sales closing date for the
initial crop year in which you wish to insure your potatoes under this
endorsement:
(1) Cancellation of your Northern Potato Crop Insurance--Quality
Endorsement will automatically result in cancellation of this
endorsement;
(2) This endorsement may be canceled by either you or us for any
succeeding crop year by giving written notice to the other party on or
before the cancellation date; and
(b) Processor contract executed with a processor or broker for the
potato types insured under this endorsement that is applicable for the
crop year:
(1) A copy of the processor contract must be submitted to us on or
before the acreage reporting date for potatoes; and
(2) Failure to timely provide the processor contract will result in
no coverage under this endorsement and coverage will be provided only
under the terms of the Northern Potato Crop Insurance Provisions and
Northern Potato Crop Insurance--Quality Endorsement.
3. The additional premium amount for this coverage will be
determined by multiplying the number of your insured planted acres of
potatoes by the premium rate for this Endorsement contained in the
actuarial documents. In return for payment of the additional premium
designated in the actuarial documents, this Endorsement is attached to
and made part of your Northern Potato Crop Insurance Provisions and
Northern Potato Crop Insurance--Quality Endorsement subject to the terms
and conditions described herein. In the event of a conflict between the
Northern Potato Crop Insurance Provisions or Northern Potato Crop
Insurance--Quality Endorsement and this Endorsement, this Endorsement
will control.
4. All terms of the Northern Potato Crop Insurance--Quality
Endorsement not modified by this endorsement will be applicable to
acreage covered under this endorsement.
5. If you elect this endorsement, all insurable acreage of
production under contract with the processor or broker must be insured
under this endorsement; however:
(a) When the processor contract requires the processor or broker to
purchase a stated amount of production, rather than all of the
production from a stated number of acres, the insurable acres will be
determined by dividing the stated amount of production by the approved
yield for the acreage; and
(b) The number of acres insured under this endorsement will not
exceed the actual number of acres planted to the potato types needed to
fulfill the contract.
[[Page 305]]
6. Potato lots may be adjusted in accordance with section 8 if such
potatoes:
(a) Fail to meet the standards in section 7(a), (b), (c), or (d), or
a standard contained in the processor contract, for the same quality
factors specified in section 7(a), (b), (c), or (d), if such standard is
less stringent;
(b) Have a value less than the maximum price election; and
(c) Fail to meet the applicable standards and are not separable from
undamaged production using methods used by processors to whom you
normally deliver your potato production.
7. To qualify for a quality reduction under this endorsement, the
potatoes must:
(a) Fail to meet the applicable U.S. No. 2 grade requirements due to
internal defects as long as the number of potatoes with such defects are
in excess of the tolerance allowed for U.S. No. 2 grade potatoes;
(b) Have a specific gravity lower than 1.074;
(c) Have a fry color of No. 3 or darker due to either sugar
exceeding 10 percent or sugar ends exceeding 19 percent; or
(d) Have an Agtron rating lower than 58.
8. In lieu of the provisions contained in section 5 of the Northern
Potato Crop Insurance--Quality Endorsement, production to count
determined in accordance with section 15 of the Basic Provisions and
section 11 of the Northern Potato Crop Insurance Provisions, from
unharvested acreage or harvested acreage that is stored or is marketed
after a grade inspection determined in section 10, will be adjusted in
accordance with sections 8(a) or 8(b), whichever is applicable,
(adjustment under section 8(a) or 8(b)(1) will not be performed if it
already has been performed under the terms of section 11(g) of the
Northern Potato Crop Insurance Provisions):
(a) If a price is agreed upon between you and a buyer within 21 days
(60 days if the Northern Potato Crop Insurance--Storage Coverage
Endorsementis applicable) after the end of the insurance period, or the
production is delivered to a buyer within 21 days (60 days if the
Northern Potato Crop Insurance--Storage Coverage Endorsement is
applicable), after the end of the insurance period, the amount of
production will be determined by:
(1) Dividing the price per hundredweight received or that will be
received by the highest price election designated in the actuarial
documents for the insured potato type (If the production is sold for a
price lower than the value appropriate to and representative of the
local market, we will determine the value of the production based on the
price you could have received in the local market); and
(2) Multiplying the result of section 8(a)(1) (not to exceed 1.0) by
the number of hundredweight of sold or to be sold production (We may
verify this after the production has actually been sold); or
(b) If a price is not agreed upon between you and a buyer and the
production is not delivered within 21 days (60 days if the Northern
Potato Crop Insurance--Storage Coverage Endorsementis applicable), after
the end of the insurance period, and the production remains in storage
22 or more days (61 or more days if the Northern Potato Crop Insurance--
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production will be the greater of:
(1) The amount of production determined by:
(i) Dividing the price per hundredweight that is received, or that
will later be received after the end of the applicable insurance period,
by the highest price election designated in the actuarial documents for
the insured potato type (if the production is sold for a price lower
than the value appropriate to and representative of the local market, we
will determine the value of the production based on the price you could
have received in the local market); and
(ii) Multiplying the result of section 8(b)(1)(i) (not to exceed
1.0) by the number of hundredweight of sold or to be sold production (We
may verify this after the production has actually been sold); or
(2) The amount of production determined as follows:
(i) The combined weight of sampled potatoes that grade U.S. No. 2 or
better (the amount of potatoes grading U.S. No. 2 or better will be
based on a grade inspection completed no later than 21 days after the
end of the insurance period, if the Northern Potato Crop Insurance--
Storage Coverage Endorsement is applicable; samples must be obtained
within 60 days after the end of the insurance period and grade
inspection completed within 21 days of sampling) and are damaged by
freeze or tuber rot will be divided by the total sample weight;
(A) The percentage determined in section 8(b)(2)(i) will be divided
by the applicable percentage factor; and
(B) The result of section 8(b)(2)(i)(A) will be multiplied by the
amount of production to count determined in accordance with section 15
of the Basic Provisions and section 11 of the Northern Potato Crop
Insurance Provisions.
(c) The production to count for potatoes that have a value less than
the maximum price election due to factors other than those specified in
section 7 will be adjusted in accordance with section 8(b)(2).
9. For any production that qualifies for adjustment in accordance
with section 7 and that is discarded:
(a) Within 21 days (60 days if the Northern Potato Crop Insurance--
Storage Coverage Endorsement is applicable), after the end of the
insurance period, the amount of production to count will be:
[[Page 306]]
(1) Zero if we determine the production could not have been sold; or
(2) Determined in accordance with section 8(b)(2) if we determine
the production could have been sold; or
(b) Later than 21 days (60 days if the Northern Potato Crop
Insurance--Storage Coverage Endorsement is applicable), after the end of
the insurance period, the amount of production to count will be adjusted
in accordance with section 8(b)(2).
10. All quality determinations must be based upon a grade inspection
using the United States Standards for Grades of Potatoes for Processing
or the United States Standards for Grades of Potatoes for Chipping.
11. The actuarial documents may provide ``U.S. No. 1 grade'' in
place of ``U.S. No. 2 grade'' as used in this endorsement. If both U.S.
No. 1 and 2 grades are available in the actuarial documents, you may
elect U.S. No. 1 or 2 grade by potato type or group, if separate types
or groups are specified in the Special Provisions.
[72 FR 61284, Oct. 30, 2007, as amended at 86 FR 22842, Apr. 30, 2021]
Sec. 457.145 Northern potato crop insurance--certified seed endorsement.
The Northern Potato Crop Insurance Certified Seed Endorsement
Provisions for the 2022 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:
Potato Crop Insurance Certified Seed Endorsement
1. The additional premium amount for this coverage will be
determined by multiplying the number of your insured planted acres of
certified seed potatoes by the premium rate for this Endorsement
contained in the actuarial documents. In return for payment of the
additional premium designated in the actuarial documents, this
Endorsement is attached to and made part of your Northern Potato Crop
Insurance Provisions subject to the terms and conditions described
herein. In accordance with section 8, since your insurance period is not
extended in this Endorsement, any additional premium paid for coverage
under the Northern Potato Crop Insurance--Storage Coverage Endorsement
will not apply to the additional coverage provided under the terms of
this Endorsement. In the event of a conflict between the Northern Potato
Crop Insurance Provisions and this Endorsement, this Endorsement will
control.
2. You must elect this endorsement on or before the sales closing
date for the initial crop year you wish to insure your potatoes under
this endorsement. This endorsement will continue in effect until
canceled. It may be canceled by either you or us for any succeeding crop
year by giving written notice to the other party on or before the
cancellation date.
3. All potatoes grown on insurable acreage and that are entered into
the potato seed certification program administered by the state in which
the seed is grown must be insured unless limited by section 4 below.
4. Your certified seed production guarantee per-acre will be the
per-acre production guarantee used to cover the same acreage under the
terms of the Northern Potato Crop Insurance Provisions. However, unless
a written agreement provides otherwise, if the total amount of insurable
certified seed acreage you have for the current crop year is greater
than 125 percent of your average number of acres entered into and
passing certification in the potato certified seed program in the three
previous calendar years, your certified seed production guarantee for
each unit will be reduced as follows:
(a) Multiply the average number of your acres entered into and
passing certification in the potato certified seed program the 3
previous calendar years by 1.25 and divide this result by the number of
acres grown by you for certified seed in the current crop year; and
(b) Multiply the result of section 4(a) (not to exceed 1.0) by the
production guarantee for certified seed for the current crop year.
5. You must provide acceptable records of your certified seed potato
acreage and production for the previous three years. These records must
clearly indicate the number of your acres entered into the potato seed
certification program administered by the state in which the seed is
grown.
6. All potatoes insured for certified seed production must be
produced and managed in accordance with the regulations, standards,
practices, and procedures required for certification under the potato
certified seed program. Any production that does not qualify as
certified seed because of varietal mixing or your failure to meet any
requirements under the potato certified seed program will be considered
as lost due to uninsured causes.
7. If, due to insurable causes occurring within the insurance
period, the amount of certified seed you produce is less than your
certified seed production guarantee, we will settle your claim by:
(a) Multiplying the insured acreage by its respective certified seed
production guarantee;
[[Page 307]]
(b) Multiplying each result in section 7(a) by the dollar amount per
hundredweight contained in the actuarial documents for production
covered under this endorsement;
(c) Totaling the results of section 7(b);
(d) Multiplying the number of hundredweight of production that
qualify as certified seed and any amount of production lost due to
uninsured causes, or that does not qualify as certified seed due to
uninsured causes, by the dollar amount per hundredweight contained in
the actuarial documents for production covered under this endorsement;
(e) Subtracting the result of section 7(d) from the result of
section 7(c); and
(f) Multiplying the result of section 7(e) by your share.
8. You must notify us of any loss under this endorsement not later
than 14 days after you receive notice from the state certification
agency that any acreage or production has failed certification. Nothing
herein extends the insurance period beyond the time period specified in
section 8 of the Northern Potato Crop Insurance Provisions and section
11 of the Basic Provisions. In lieu of the provisions in section 14(c)
of the Basic Provisions specifying that any claim for indemnity must be
filed not later than 60 days after the end of the insurance period, your
claim for indemnity must be filed by the later of:
(a) Sixty (60) days after the end of the insurance period; or
(b) Thirty (30) days after you receive notice from the state
certifying agency that production has failed certification.
9. Acreage covered under the terms of this endorsement will have the
same unit structure as provided under the Basic Provisions and the
Northern Potato Crop Insurance Provisions. For example, if you have two
optional units (00101 and 00102) under your Northern Potato Crop
Insurance Provisions and you elect this endorsement, you will also have
two optional units (00201 and 00202) for certified seed coverage,
provided that certified seed is grown in both units 00101 and 00102. Or,
if you have two basic units (00100 and 00200) under your Northern Potato
Crop Insurance Provisions and you elect this endorsement, you will also
have two basic units (00300 and 00400) for certified seed coverage,
provided that certified seed is grown in both units 00100 and 00200. In
the event certified seed acreage is not grown in the same optional or
basic units as acreage covered under the Basic Provisions and the
Northern Potato Crop Insurance Provisions, certified seed units will be
established in accordance with the unit division provisions contained in
the Basic Provisions and the Northern Potato Crop Insurance Provisions.
For example, if a basic unit is divided into two optional units for
potato acreage covered under the Basic Provisions and the Northern
Potato Crop Insurance Provisions, but certified seed is grown in only
one of those optional units, the certified seed acreage will be insured
as one basic unit.
10. Failure to meet any requirements for seed to be used to produce
a subsequent seed crop will not be covered. All the production that
meets requirements for certified seed used to produce a commercial crop
will be included in production to count.
[62 FR 65337, Dec. 12, 1997, as amended at 64 FR 71271, Dec. 21, 1999;
72 FR 61286, Oct. 30, 2007; 86 FR 22842, Apr. 30, 2021]
Sec. 457.146 Northern potato crop insurance--storage coverage
endorsement.
The Northern Potato Crop Insurance Storage Coverage Endorsement
Provisions for the 2022 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:
Northern Potato Crop Insurance Storage Coverage Endorsement
1. The additional premium amount for this coverage will be
determined by multiplying the number of your insured planted acres of
potatoes by the premium rate for this Endorsement contained in the
actuarial documents. In return for payment of the required additional
premium as contained in the actuarial documents, this Endorsement is
attached to and made part of your Northern Potato Crop Insurance
Provisions subject to the terms and conditions described herein. In the
event of a conflict between the Northern Potato Crop Insurance
Provisions and this Endorsement, this Endorsement will control.
2. You must elect this endorsement on or before the sales closing
date for the initial crop year in which you wish to insure your potatoes
under this endorsement. This endorsement will continue in effect until
canceled. It may be canceled by either you or us for any succeeding crop
year by giving written notice to the other party on or before the
cancellation date.
3. Potato production grown under a contract that requires the
production to be delivered to a buyer within three days of harvest will
not be insured under this endorsement. When such contract requires
delivery of a stated amount of production, rather than all of the
production from a stated
[[Page 308]]
amount of acres, the number of acres not insured under this endorsement
will be determined by dividing the stated amount of production by the
approved yield for the acreage. All other potato production insured
under the Northern Potato Crop Insurance Provisions must be insured
under this endorsement unless the Special Provisions allow you to
exclude certain potato varieties, types, or groups from this
endorsement, and you elect to exercise this option. If you elect this
endorsement, such exclusions must be shown annually on your acreage
report and will be applicable to all acreage of the excluded varieties,
types, or groups for the crop year.
4. When production from separate insurance units, basic or optional,
is commingled in storage, the production to count for each unit will be
allocated pro rata based on the production placed in storage from each
unit. Such allocation will be allowed only if verifiable records of
production placed in storage are available by unit. If you do not have
verifiable records, all units without verifiable records will be
combined in accordance with section 11 of the Northern Potato Crop
Insurance Provisions. For example, if 500 hundredweight from one unit
are commingled with 1,500 hundredweight from another unit and the
production to count from the stored production is 1,000 hundredweight,
250 hundredweight of production to count will be allocated to the unit
contributing 500 hundredweight and 750 hundredweight to the unit
contributing 1500 hundredweight to the stored production. This provision
does not eliminate or change any other requirement contained in this
policy to provide or maintain separate records of acreage or production
by unit.
5. In lieu of section 9(b)(1) of the Northern Potato Crop Insurance
Provisions, the extended coverage provided by this endorsement will be
applicable but only if:
(a) Insured potatoes are damaged within the insurance period by an
insured cause other than freeze that later results in:
(1) Tuber rot as defined in the Northern Potato Crop Insurance
Provisions, to the extent that 5.1 percent (by weight) or more of the
insured production is affected;
(2) Internal defects to the extent that such defects are in excess
of the amount allowed for the U.S. grade standard you elected for
purposes of coverage under the Northern Potato Crop Insurance--Quality
Endorsement. Such defects must not be separable from undamaged
production using methods used by the packers or processors to which you
normally deliver your potato production. This coverage is applicable
only to production covered under the Northern Potato Crop Insurance--
Quality Endorsement; or
(3) The potatoes damaged by an insurance cause of loss fail to meet
any of the following standards or a less stringent standard for the same
quality factors specified below, contained in the processor contract, if
applicable, (this coverage is applicable only to production covered
under the Northern Potato Crop Insurance--Processing Quality
Endorsement):
(i) A specific gravity lower than 1.074;
(ii) A fry color of No. 3 or darker due to either sugar exceeding 10
percent or sugar ends exceeding 19 percent; or
(iii) An Agtron rating lower than 58.
(b) You notify us within 72 hours of your initial discovery of any
damage that has or that may later result in the quality deficiencies
specified in section 5(a);
(c) The percentage of production with any of the quality
deficiencies specified in section 5(a) is determined based on samples
obtained no later than 60 days after the end of the insurance period and
the potatoes are evaluated and quality (grade) determinations are made
by us, a laboratory approved by us, a potato grader licensed or
certified by the applicable State or the United States Department of
Agriculture, or us, in accordance with the United States Standards for
Grades of Potatoes:
(1) Samples of damaged production must be obtained by us or a party
approved by us prior to the sale or disposal of any lot of potatoes; and
(2) If production is not sold or disposed of within 60 days after
the end of the insurance period, samples must be obtained within 60 days
after the end of the insurance period and a quality (grade)
determination must be completed within 21 days of sampling.
[62 FR 65337, Dec. 12, 1997, as amended at 72 FR 61286, Oct. 30, 2007;
86 FR 22843, Apr. 30, 2021]
Sec. 457.147 Central and Southern potato crop insurance provisions.
The Central and Southern Potato Crop Insurance Provisions for the
2017 and succeeding crop years in counties with a contract change date
of November 30, and for the 2018 and succeeding crop years in counties
with a contract change date of June 30 and September 30, 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:
Central and Southern Potato Crop Provisions
These provisions will be applicable in Alabama; Arizona; all
California counties except
[[Page 309]]
Humboldt, Modoc, and Siskiyou; Delaware; Florida; Georgia; Maryland;
Missouri; New Jersey; all New Mexico counties except San Juan; North
Carolina; Oklahoma; Texas; and Virginia; and other states or counties if
allowed by the Special Provisions.
1. Definitions
Certified seed. Potatoes that were entered into the potato certified
seed program and that meet all requirements for production to be used to
produce a seed crop for the next crop year or a potato crop for harvest
for commercial uses in the next crop year.
Discard. Disposal of production by you, or a person acting for you,
without receiving any value for it.
Disposed. Any disposition of the crop including but not limited to
sale or discard.
Grade inspection. An inspection in which samples of production are
obtained by us, or a party approved by us, prior to the sale, storage,
or disposal of any lot of potatoes, or any portion of a lot and the
potatoes are evaluated and quality (grade) determinations are made by
us, a laboratory approved by us, or a potato grader licensed or
certified by the applicable State or the United States Department of
Agriculture, in accordance with the United States Standards for Grades
of Potatoes. The United States standards used to determine the quality
(grade) deficiencies will be: For potatoes produced for chipping, the
United States Standards for Grades of Potatoes for Chipping; for
potatoes produced for processing, the United States Standards for Grades
of Potatoes for Processing; for potatoes produced for seed, the United
States Standards for Grades of Seed Potatoes; and for all other
potatoes, the United States Standards for Grades of Potatoes. The
quantity and number of samples required will be determined in accordance
with procedure issued by FCIC.
Harvest. Lifting potatoes from within the soil to the soil surface.
Hundredweight. One hundred (100) pounds avoirdupois.
Lot. A quantity of production that can be separated from other
quantities of production by grade characteristics, load, location or
other distinctive features.
Planting period. The period of time between the calendar dates
designated in the Special Provisions for the planting of spring-planted,
summer-planted, fall-planted, or winter-planted potatoes.
Potato certified seed program. The state program administered by a
public agency responsible for the seed certification process within the
state in which the seed is produced.
Practical to replant. In lieu of the definition of ``Practical to
replant'' contained in section one of the Basic Provisions, 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, marketing windows, 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, or the end of the planting period
in which initial planting took place in counties for which the Special
Provisions designates separate planting periods, unless replanting is
generally occurring in the area.
2. Unit Division
A basic unit, as defined in section 1 of the Basic Provisions, will
be divided into additional basic units by planting period.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 2 of the Basic
Provisions, you may select only one price election for all the potatoes
in the county insured under this policy unless the Special Provisions
provide different price elections by type. If the Special Provisions
provide for different price elections by type, you may select one price
election for each potato type designated in the Special Provisions. The
price elections you choose for each type must have the same percentage
relationship to the maximum price election offered by us for each type.
For example, if you choose 100 percent of the maximum price election for
one type, you must also choose 100 percent of the maximum price election
for all other types.
(b) If the production from any acreage of the insured crop is not
harvested, the price used to determine your indemnity will be 90 percent
of your price election.
(c) The price election for unharvested acreage will apply to any
acreage of potatoes damaged to the extent that similarly situated
producers in the area would not normally care for the potatoes even if
you choose to continue to care for or harvest them. Potatoes that are
lifted to the soil surface and not removed from the field will also
receive the price election for unharvested acreage.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is:
(a) June 30 preceding the cancellation date for counties with a
September 30 cancellation date;
(b) September 30 preceding the cancellation date for counties with a
November 30, December 31, or January 31 cancellation date; and
(c) November 30 preceding the cancellation date for counties with a
February 28 or March 15 cancellation date.
[[Page 310]]
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State and county Dates
------------------------------------------------------------------------
Pinellas, Hillsborough, Polk, September 30.
Osceola, and Brevard Counties,
Florida, and all Florida counties
lying south thereof.
Arizona; all California counties; and November 30.
all Texas counties except Bailey,
Castro, Dallam, Deaf Smith, Floyd,
Gaines, Hale, Hartley, Haskell,
Knox, Lamb, Parmer, Swisher, and
Yoakum.
Alabama; Georgia; Missouri; and All December 31.
Florida Counties except Pinellas,
Hillsborough, Polk, Osceola, and
Brevard Counties, Florida, and all
Florida counties to the south
thereof.
Delaware; Maryland; New Jersey; North January 31.
Carolina; and Virginia.
Oklahoma; and Haskell and Knox February 28.
Counties, Texas.
Bailey, Castro, Dallam, Deaf Smith, March 15.
Floyd, Gaines, Hale, Hartley, Lamb,
Parmer, Swisher, and Yoakum
counties, Texas; and all New Mexico
counties except San Juan County.
------------------------------------------------------------------------
6. Annual Premium
In lieu of the premium computation method contained in section 7 of
the Basic Provisions, the annual premium amount (y) is computed by
multiplying (a) the production guarantee by (b) the price election for
harvested acreage, by (c) the premium rate, by (d) the insured acreage,
by (e) your share at the time of planting, and by (f) any applicable
premium adjustment factors contained in the actuarial documents (a x b x
c x d x e x f = y).
7. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the potatoes in the county for which a premium rate
is provided by the actuarial documents:
(a) In which you have a share;
(b) Planted with certified seed (unless otherwise permitted by the
Special Provisions);
(c) Planted for harvest as certified seed stock, or for human
consumption, (unless specified otherwise in the Special Provisions);
(d) That are not (unless allowed by the Special Provisions or by
written agreement):
(1) Interplanted with another crop; or
(2) Planted into an established grass or legume.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions,
we will not insure any acreage that:
(a) Does not meet the rotation requirements contained in the Special
Provisions for the crop; or
(b) Is damaged before the final planting date or before the end of
the applicable planting period in counties for which the Special
Provisions designate separate planting periods, to the extent that
similarly situated producers in the area would normally not further care
for the crop, unless it is replanted or we agree that it is not
practical to replant.
9. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is the
date immediately following planting as follows (exceptions, if any, for
specific counties, varieties or types are contained in the Special
Provisions):
(a) July 15 in Missouri; and all Texas counties except Bailey,
Castro, Dallam, Deaf Smith, Floyd, Gaines, Hale, Haskell, Hartley, Knox,
Lamb, Parmer, Swisher, and Yoakum.
(b) July 25 in Arizona.
(c) August 15 in North Carolina; Oklahoma; and Haskell and Knox
Counties, Texas.
(d) August 31 in Virginia.
(e) In Alabama; California; Florida; and Georgia; the dates
established by the Special Provisions for each planting period; and
(f) October 15 in Bailey, Castro, Dallam, Deaf Smith, Floyd, Gaines,
Hale, Hartley, Lamb, Parmer, Swisher, and Yoakum Counties, Texas;
Delaware; Maryland; New Jersey; and all counties in New Mexico except
San Juan.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss which occur within the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but only if sufficient and proper pest control measures
are used;
(4) Plant disease, but only if sufficient and proper disease control
measures are used;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if caused by an insured
peril that occurs during the insurance period (see section 10(a) (1)
through (7)).
[[Page 311]]
(b) In addition to the causes of loss not insured against as
contained in section 12 of the Basic Provisions, we will not insure
against any loss of production due to:
(1) Damage that occurs or becomes evident after the end of the
insurance period, including, but not limited to, damage that occurs or
becomes evident in storage; or
(2) Causes, such as freeze after certain dates, as limited by the
Special Provisions.
11. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples at least 10 feet wide
and extending the entire length of each field in the unit if you are
going to destroy any acreage of the insured crop that will not be
harvested.
(b) We must be given the opportunity to perform a grade inspection
on the production from any unit for which you have given notice of
damage.
12. 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 acceptable production records were not provided; and
(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) Multiplying the insured acreage by its respective production
guarantee (if there is unharvested acreage in the unit, the harvested
and unharvested acreage will be determined separately);
(2) Multiplying each result in section 12(b)(1) by the respective
price election (the price election may be limited as specified in
section 3.);
(3) Totaling the results of section 12(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, (see section 12(d)) by the respective price election;
(5) Totaling the results of section 12(b)(4);
(6) Subtracting the results of section 12(b)(5) from the result in
section 12(b)(3); and
(7) Multiplying the result of section 12(b)(6) by your share.
For example: You have a 100 percent share in 100 harvested acres of
potatoes in the unit, with a guarantee of 150 hundredweight per acre and
a price election of $4.00 per hundredweight. You are only able to
harvest 10,000 hundredweight. Your indemnity would be calculated as
follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee;
(2) 15,000 hundredweight x $4.00 price election = $60,000.00 value
of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count;
(5) $60,000.00 - $40,000.00 = $20,000.00 loss; and
(6) $20,000.00 x 100 percent = $20,000.00 indemnity payment.
You also have a 100 percent share in 100 unharvested acres of
potatoes in the same unit, with a guarantee of 150 hundredweight per
acre and a price election of $3.60 per hundredweight. (The price
election for unharvested acreage is 90.0 percent of your elected price
election ($4.00 x 0.90 = $3.60.)) This unharvested acreage was appraised
at 35 hundredweight per acre for a total of 3500 hundredweight as
production to count. Your total indemnity for the harvested and
unharvested acreage would be calculated as follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee
for the harvested acreage, and
100 acres x 150 hundredweight = 15,000 hundredweight guarantee for
the unharvested acreage;
(2) 15,000 hundredweight guarantee x $4.00 price election =
$60,000.00 value of guarantee for the harvested acreage, and
15,000 hundredweight guarantee x $3.60 price election = $54,000.00
value of guarantee for the unharvested acreage;
(3) $60,000.00 + $54,000.00 = $114,000.00 total value of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count for the harvested acreage, and 3500 hundredweight
x $3.60 = $12,600.00 value of production to count for the unharvested
acreage;
(5) $40,000.00 + $12,600.00 = $52,600.00 total value of production
to count;
(6) $114,000.00 - $52,600.00 = $61,400.00 loss; and
(7) $61,400.00 loss x 100 percent = $61,400.00 indemnity payment.
(c) The extent of any quality loss must be determined based on
samples obtained no later than the time potatoes are placed in storage,
if the production is stored prior to sale, or the date they are
delivered to a buyer, wholesaler, packer, broker, or other handler if
production is not stored.
(d) The total production to count (in hundredweight) 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 put to another use without our consent;
(C) That is damaged solely by uninsured causes;
(D) From which any production is disposed of without a grade
inspection; or
[[Page 312]]
(E) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Production lost due to harvest prior to full maturity.
Production to count from such acreage will be determined by increasing
the amount of harvested production by 2 percent per day for each day the
potatoes were harvested prior to the date the potatoes would have
reached full maturity. The date the potatoes would have reached full
maturity will be considered to be 45 days prior to the calendar date for
the end of the insurance period, unless otherwise specified in the
Special Provisions. This adjustment will not be made if the potatoes are
damaged by an insurable cause of loss, and leaving the crop in the field
would either reduce production or decrease quality.
(iv) Unharvested production, including unharvested production on
insured acreage you intend to put to another use or abandon, or acreage
damaged by insurable causes and for which you cease to provide further
care, if you and we agree on the appraised amount of production. Upon
such agreement, the insurance period for that acreage will end when you
put the acreage to another use or cease providing care for the crop.
This unharvested production may be adjusted in accordance with sections
12(e), and the value of all unharvested production will be calculated
using the reduced price election determined in section 3(b). 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 price used to determine the
amount of any indemnity will be limited as specified in section 3 even
if the representative samples are harvested. 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 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 determined
in accordance with section 12(e).
(e) Only marketable lots of mature potatoes will be production to
count for loss adjustment purposes, except for production specified in
12(e)(1):
(1) Production not meeting the standards for grading U.S. No. 2 due
to external defects will be determined on an individual basis for all
harvested and unharvested potatoes if we determine it is or would be
practical to separate the damaged production;
(2) All determinations must be based upon a grade inspection; and
(3) Prior to any grade inspection, you must notify us of the
intended use of the potatoes so the appropriate United States Standard
will be applied (We may request previous sales records to verify your
claimed intended use or base the intended use on the type of potato
grown if such potatoes are not usually grown for the intended use you
reported).
(4) Marketable lots of potatoes will include any lot of potatoes
that is:
(i) Stored;
(ii) Sold as seed;
(iii) Sold for human consumption; or
(iv) Harvested and not sold or that is appraised if such lots meet
the standards for grading U.S. No. 2 grade or better on a sample basis.
(5) Marketable lots will also include any potatoes that we
determine:
(i) Could have been sold for seed or human consumption in the
general marketing area;
(ii) Were not sold as a result of uninsured causes including, but
not limited to, failure to meet chipper or processor standards for fry
color or specific gravity; or
(iii) Were disposed of without our prior written consent and such
disposition prevented our determination of marketability.
(6) Unless included in section 12(e)(4) or (5), a potato lot will
not be considered marketable if, due to insurable causes of damage, it:
(i) Is partially damaged, and is salvageable only for starch,
alcohol, or livestock feed;
(ii) Does not meet the standards for grading U.S. No. 2 grade or
better due to internal defects; or
(iii) Does not meet the standards for grading U.S. No. 2 grade or
better due to external defects, and it is not practical to separate the
damaged production.
13. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional coverage and pay an additional premium,
you may increase your prevented planting coverage if such additional
coverage is specified in the actuarial documents.
[62 FR 65333, Dec. 12, 1997, as amended at 72 FR 61287, Oct. 30, 2007;
81 FR 84400, Nov. 23, 2016]
[[Page 313]]
Sec. 457.148 Fresh market pepper crop insurance provisions.
The fresh market pepper crop insurance provisions for the 2024 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
Fresh Market Pepper Crop Provisions
1. Definitions
Acre. 43,560 square feet of land when row widths do not exceed six
feet, or if row widths exceed six feet, the land area on which at least
7,260 linear feet of rows are planted.
Bell pepper. An annual pepper (of the capsicum annum species,
grossum group), widely cultivated for its large, crisp, edible fruit.
Box. One and one-ninth (1\1/9\) bushels of the insured crop.
Crop year. In lieu of the definition of ``crop year'' contained in
section 1 (Definitions) of the Basic Provisions (Sec. 457.8), crop year
is a period of time that begins on the first day of the earliest
planting period for fall planted peppers and continues through the last
day of the insurance period for spring planted peppers. The crop year is
designated by the calendar year in which spring planted peppers are
harvested.
Excess rain. An amount of precipitation sufficient to directly
damage the crop.
Freeze. The formation of ice in the cells of the plant or its fruit,
caused by low air temperatures.
Harvest. The picking of peppers on the unit.
Mature bell pepper. A pepper that has reached the stage of
development that will withstand normal handling and shipping.
Plant stand. The number of live plants per acre prior to the
occurrence of an insurable cause of loss.
Planted acreage. In addition to the definition contained in ;section
1 of the Basic Provisions, for each planting period, pepper seed or
transplants must initially be planted in rows, unless otherwise provided
by the Special Provisions, actuarial documents, or by written agreement.
Planting period. The period of time designated in the actuarial
documents in which the peppers must be planted to be considered fall,
winter or spring-planted peppers.
Potential production. The number of boxes of mature bell peppers
that the pepper plants will or would have produced per acre by the end
of the insurance period, assuming normal growing conditions and
practices.
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, marketing windows, 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 (inability to obtain plants or seed will not be
considered when determining if it is practical to replant).
Row width. The widest distance from the center of one row of plants
to the center of an adjacent row of plants.
Tropical depression. A system identified by the U.S. Weather Service
as a tropical depression, and for the period of time so designated,
including tropical storms, gales, and hurricanes.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will also be divided into additional basic units by planting period.
(b) Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Amounts of Insurance and Production Stages
(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 coverage
level (and the corresponding amount of insurance designated in the
actuarial documents for the applicable planting period and practice) for
all the peppers in the county insured under this policy.
(b) The amount of insurance you choose for each planting period and
practice must have the same percentage relationship to the maximum price
offered by us for each planting period and practice. For example, if you
choose 100 percent of the maximum amount of insurance for a specific
planting period and practice, you must also choose 100 percent of the
maximum amount of insurance for all other planting periods and
practices.
(c) The production reporting requirements contained in section 3
(Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities) of the Basic Provisions (Sec. 457.8) do not apply to fresh
market peppers.
(d) The amounts of insurance per acre are progressive by stages as
follows:
[[Page 314]]
------------------------------------------------------------------------
Percent of
the amount
of
Stage insurance Length of time if Length of time if
per acre direct-seeded transplanted
that you
selected
------------------------------------------------------------------------
1................ 65 From planting From planting
through the 74th through the 44th
day after planting. day after
planting.
2................ 85 From the 75th day From the 45th day
after planting after planting
until the until the
beginning of stage beginning of stage
3. 3.
3................ 100 Begins the earlier Begins the earlier
of 110 days after of 80 days after
planting, or the planting, or the
beginning of beginning of
harvest. harvest.
------------------------------------------------------------------------
(e) Any acreage of peppers damaged in the first or second stage to
the extent that the majority of producers in the area would not normally
further care for it, will be deemed to have been destroyed. The
indemnity payable for such acreage will be based on the stage the plants
had achieved when the damage occurred.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is April 30 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 July 31.
6. Report of Acreage
In addition to the requirements of section 6 (Report of Acreage) of
the Basic Provisions (Sec. 457.8), you must report on or before the
acreage reporting date contained in the Special Provisions for each
planting period:
(a) All the acreage of peppers in the county insured under this
policy in which you have a share;
(b) The dates the acreage was planted within each planting period;
and
(c) The row width.
7. Annual Premium
In lieu of the premium amount determinations contained in section 7
(Annual Premium and Administrative Fees) of the Basic Provisions (Sec.
457.8), the annual premium amount for each cultural practice (for
example, fall direct-seeded irrigated) is determined by multiplying the
third stage amount of insurance per acre by the premium rate for the
cultural practice as established in the actuarial documents, by the
insured acreage, by your share at the time coverage begins, and by any
applicable premium adjustment factors contained in the actuarial
documents.
8. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic Provisions
(Sec. 457.8), the crop insured will be all the bell peppers in the
county for which a premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That are:
(1) Planted to be harvested and sold as mature fresh market bell
peppers;
(2) Planted within the planting periods designated in the actuarial
documents;
(3) Grown under an irrigated practice;
(4) Grown on acreage covered by plastic mulch except where the
Special Provisions allow otherwise;
(5) Grown by a person who in at least one of the three previous crop
years:
(i) Grew bell peppers for commercial sale; or
(ii) Participated in managing a bell pepper farming operation;
(c) That are not:
(1) Interplanted with another crop;
(2) Planted into an established grass or legume;
(3) Pimento peppers; or
(4) Grown for direct marketing.
9. Insurable Acreage
(a) In lieu of the provisions of section 9 (Insurable Acreage) of
the Basic Provisions (Sec. 457.8), that prohibit insurance attaching if
a crop has not been planted in at least one of the three previous crop
years, we will insure newly cleared land or former pasture land planted
to fresh market peppers.
(b) In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8):
(1) You must replant any acreage of peppers damaged during the
planting period in which initial planting took place whenever less than
50 percent of the plant stand remains: and
(i) It is practical to replant;
(ii) If, at the time the crop was damaged, the final day of the
planting period has not passed; and
(iii) The damage occurs within 30 days of transplanting or 60 days
of direct-seeding.
[[Page 315]]
(2) Whenever peppers initially are planted during the fall or winter
planting periods and the conditions specified in sections 9(b)(1) (ii)
and (iii) are not satisfied, you may elect:
(i) To replant such acreage and collect any replant payment due as
specified in section 12. The initial planting period coverage will
continue for such replanted acreage.
(ii) Not to replant such acreage and receive an indemnity based on
the stage of growth the plants had attained at the time of damage.
However, such an election will result in the acreage being uninsurable
in the subsequent planting period.
(3) We will not insure any acreage on which peppers (except for
replanted peppers in accordance with sections 9(b)(1) and (2)),
tomatoes, eggplants, or tobacco have been grown and the soil was not
fumigated or otherwise properly treated before planting peppers.
10. 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 the date we accept your application, or when the
peppers are planted in each planting period. Coverage ends at the
earliest of:
(a) Total destruction of the peppers on the unit;
(b) Abandonment of the peppers on the unit;
(c) The date harvest should have started on the unit on any acreage
which will not be harvested;
(d) Final adjustment of a loss on the unit;
(e) Final harvest; or
(f) The calendar date for the end of the insurance period as
follows:
(1) 165 days after the date of direct-seeding or replanting with
seed; and
(2) 150 days after the date of transplanting or replanting with
transplants.
11. 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) Excess rain;
(2) Fire;
(3) Freeze;
(4) Hail;
(5) Tornado;
(6) Tropical depression; or
(7) Failure of the irrigation water supply, if caused by an insured
cause of loss 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 any loss of production due to:
(1) Disease or insect infestation, unless no effective control
measure exists for such disease or insect infestation; or
(2) Failure to market the peppers, unless such failure is due to
actual physical damage caused by an insured cause of loss that occurs
during the insurance period.
12. Replanting Payments
(a) In accordance with section 13 (Replanting Payment) of the Basic
Provisions (Sec. 457.8), a replanting payment is allowed if, due to an
insured cause of loss, more than 50 percent of the plant stand will not
produce peppers and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of your actual cost of replanting or the result obtained by
multiplying the per acre replanting payment amount contained in the
Special Provisions by your insured share.
(c) In lieu of the provisions contained in section 13 (Replanting
Payment) of the Basic Provisions (Sec. 457.8), that limit a replanting
payment to one each crop year, only one replanting payment will be made
for acreage planted during each planting period within the crop year.
13. Duties in the Event of Damage or Loss
In addition to the requirements contained in section 14 (Duties in
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), if
you intend to claim an indemnity on any unit you also must give us
notice not later than 72 hours after the earliest of:
(a) The time you discontinue harvest of any acreage on the unit;
(b) The date harvest normally would start if any acreage on the unit
will not be harvested; or
(c) The calendar date for the end of the insurance period.
14. 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 in each stage by the amount of
insurance per acre for the final stage;
(2) Multiplying each result in section 14(b)(1) by the percentage
for the applicable stage (see section 3(d));
(3) Total the results of section 14(b)(2);
(4) Subtracting either of the following values from the result of
section 14(b)(3):
[[Page 316]]
(i) For other than catastrophic risk protection coverage, the total
value of production to be counted (see section 14(c)); or
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to be counted (see section
14(c)) by:
(A) Sixty percent for the 1998 crop year; or
(B) Fifty-five percent for 1999 and subsequent crop years; and
(5) Multiplying the result of section 14(b)(4) by your share.
(c) The total value of production to count from all insurable
acreage on the unit will include:
(1) Not less than the amount of insurance per acre for the stage for
any acreage:
(i) That is abandoned;
(ii) Put to another use without our consent;
(iii) That is damaged solely by uninsured causes; or
(iv) For which you fail to provide acceptable production records;
(2) The value of the following appraised production will not be less
than the dollar amount obtained by multiplying the number of boxes of
appraised peppers by the minimum value per box shown in the actuarial
documents for the planting period:
(i) Potential production on any acreage that has not been harvested
the third time;
(ii) Unharvested mature bell peppers (unharvested production that is
damaged or defective due to insurable causes and is not marketable will
not be counted as production to count);
(iii) Production lost due to uninsured causes; and
(iv) 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 when you put the acreage to another use or 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 (If we require you to continue to care for the crop
and you do not do so, the original appraisal will be used); or
(B) You may elect to continue to care for the crop, in which case
the amount of production to count for the acreage will be the harvested
production, or our reappraisal if the crop is not harvested.
(3) The total value of all harvested production from the insurable
acreage will be the dollar amount obtained by subtracting the allowable
cost contained in the actuarial documents from the price received for
each box of peppers (this result may not be less than the minimum value
shown in the actuarial documents for any box of peppers), and
multiplying this result by the number of boxes of peppers harvested.
Harvested production that is damaged or defective due to insurable
causes and is not marketable, will not be counted as production to
count.
15. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
16. Minimum Value Option
(a) The provisions of this option are continuous and will be
attached to and made a part of your insurance policy, if:
(1) You elect either Option I or Option II of the Minimum Value
Option on your application, or on a form approved by us, on or before
the sales closing date for the initial crop year in which you wish to
insure fresh market peppers under this option, and pay the additional
premium indicated in the actuarial documents for this optional coverage;
and
(2) You have not elected coverage under the Catastrophic Risk
Protection Endorsement.
(b) In lieu of the provisions contained in section 14(c)(3), the
total value of harvested production will be determined as follows:
(1) If you selected Option I of the Minimum Value Option, the total
value of harvested production will be as follows:
(i) For sold production, the dollar amount obtained by subtracting
the allowable cost contained in the actuarial documents from the price
received for each box of peppers (this result may not be less than the
minimum value option price contained in the actuarial documents for any
box of peppers), and multiplying this result by the number of boxes of
peppers sold; and
(ii) For marketable production that is not sold, the dollar amount
obtained by multiplying the number of boxes of such peppers on the unit
by the minimum value shown in the actuarial documents for the planting
period (harvested production that is damaged or defective due to
insurable causes and is not marketable will not be counted as
production).
(2) If you selected Option II of the Minimum Value Option, the total
value of harvested production will be as provided in section 16(b)(1),
except that the dollar amount specified in section 16(b)(1)(i) may not
be less than zero.
(c) 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 preceding the crop year for which the cancellation of
this option is to be effective.
[62 FR 14789, Mar. 28, 1997, as amended at 62 FR 65174, Dec. 10, 1997;
87 FR 38896, June 30, 2022]
[[Page 317]]
Sec. 457.149 Table grape crop insurance provisions.
The Table Grape Crop Insurance Provisions for the 2023 and
succeeding crop years are as follows:
For:
Department of Agriculture
Federal Crop Insurance Corporation
For Reinsured Policies
(Insurance provider's name or other appropriate heading)
For both FCIC and reinsured policies:
Table Grape Crop Provisions
1. Definitions
Graft. To unite a shoot or bud (scion) with a rootstock or an
existing vine in accordance with recommended practices to form a living
union.
Harvest. Removing the mature grapes from the vines either by hand or
machine.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Lug.
(1) Twenty (20) pounds of table grapes in the Coachella Valley,
California district, and all other States.
(2) Twenty-one (21) pounds in all other California districts.
(3) Or as otherwise specified in the Special Provisions.
Set out. Physically planting the grape plants in the vineyard.
Table grapes. Grapes that are grown for commercial sale for human
consumption as fresh fruit on acreage where the cultural practices to
produce fresh marketable grapes are carried out.
Type. A category of grapes (one or more varieties) identified as a
type in the Special Provisions.
USDA grade standard. (1) United States standard used to determine
the minimum quality grade will be:
(i) The United States Standards for Grades of Table Grapes (European
or Vinifera Type);
(ii) The United States Standards for Grades of American (Eastern
Type Bunch Grapes); and
(iii) The United States Standards for Grades of Muscadine (Vitis
rotundifolia) Grapes.
(2) The quantity and number of samples required will be determined
in accordance with procedure issued by FCIC or as provided on the
Special Provisions of Insurance.
Variety. A kind of grape that is distinguished from any other by
unique characteristics such as, but not limited to, size, color, skin
thickness, acidity, flavors and aromas. In Arizona and California each
variety is identified as a separate type in the Special Provisions
except for type 095 (other varieties). Type 095 is used to designate
varieties not listed as a separate type.
2. Unit Division
(a) In Arizona and California only:
(1) A basic unit as defined in section 1 of the Basic Provisions
will be divided into additional basic units by each table grape variety
that you insure; and
(2) Provisions in the Basic Provisions that provide for optional
units by section, section equivalent, or FSA farm number and by
irrigated and non-irrigated practices are not applicable. Unless
otherwise allowed by written agreement, optional units may only be
established if each optional unit is located on non-contiguous land or
grown and insured under an organic farming practice.
(b) In all states except Arizona and California, in addition to, or
instead of, establishing optional units by section, section equivalent,
or FSA farm number and by irrigated and non-irrigated acreage and for
acreage grown and insured under an organic farming practice as provided
in the unit division provisions contained in the Basic Provisions, a
separate optional unit may be established if each optional unit:
(1) Is located on non-contiguous land; or
(2) Consists of a separate type when separate types are specified in
the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) In Arizona and California, you may select only one coverage
level and price election for each table grape variety you elect to
insure in the county.
(b) In all states except Arizona and California, you may select only
one coverage level and price election for each table grape type in the
county as specified in the Special Provisions. The coverage level you
choose for each table grape type is not required to have the same
percentage relationship. The price election you choose for each type is
not required to have the same percentage relationship to the maximum
price election offered by us for each type. For example, if you choose
75 percent coverage level and 100 percent of the maximum price election
for one type, you may choose 65 percent coverage level and 75 percent of
the maximum price election for another type. If you elect the
Catastrophic Risk Protection (CAT) level of insurance for any grape
type, the CAT level of coverage will be applicable to all insured grape
acreage in the county.
[[Page 318]]
(c) In all states except Arizona and California, if you acquire a
share in any grape acreage after you submit your application, such
acreage is insurable under the terms of the policy and you did not
include the grape type on your application, we will assign the
following:
(1) A coverage level equal to the lowest coverage level you selected
for any other grape type: and
(2) A price election percentage equal to the type with the lowest
coverage level you selected, if you elected additional coverage; or 55
percent of the maximum price election, if you elected CAT.
(d) You must report by the production reporting date designated in
section 3 of the Basic Provisions, by type or variety if applicable:
(1) Any damage, removal of bearing vines, 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 vines on insurable and uninsurable
acreage;
(3) The age of the vines 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 the table grape type or
variety, if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to establish
your approved yield.
(e) We will reduce the yield used to establish your production
guarantee, based on our estimate of the effect on yield potential of any
of the items listed in section 3(d)(1) through (4). If you fail to
notify us of any circumstance that may reduce your yields from previous
levels, we will reduce your production guarantee at any time we become
aware of the circumstance.
(f) Your request to increase the coverage level or price election
percentage will not be accepted if a cause of loss that could or would
reduce the yield of the insured crop is evident when your request is
made.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is October 31 preceding the cancellation date for Arizona
and California and August 31 preceding the cancellation date for all
other states.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31 in Arizona and
California, and November 20 for all other states.
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must report your acreage:
(a) In Arizona and California, by each table grape variety you
insure; or
(b) In all other states, by each table grape type.
7. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be any insurable variety of table grapes that you elect to
insure in Arizona and California, or in all other states all insurable
types, in the county for which a premium rate is provided by the
actuarial documents:
(a) In which you have a share;
(b) That are grown for harvest as table grapes;
(c) That are adapted to the area;
(d) That are grown in a vineyard that, if inspected, is considered
acceptable by us;
(e) That, after being set out or grafted, have reached the number of
leaf years designated by the Special Provisions; and
(f) That have produced an average of at least 150 lugs of table
grapes per acre in at least one of the three crop years immediately
preceding the insured crop year, unless otherwise allowed by the Special
Provisions.
8. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to a crop planted with another crop, table
grapes 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.
9. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions
(1) For the year of application, coverage begins on February 1 in
Arizona and California, and November 21 in all other states.
Notwithstanding the previous sentence, if your application is received
by us after January 12 but prior to February 1 in Arizona or California,
or after November 1 but prior to November 21 in all other states,
insurance will attach on the 20th day after your properly completed
application is received in our local office, unless we inspect the
acreage during the 20-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 vineyard.
(2) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for
[[Page 319]]
the prior crop year. Policy cancellation that results solely from
transferring to a different insurance provider for a subsequent crop
year will not be considered a break in continuous coverage.
(3) If in accordance with the terms of the policy, your table grape
policy is cancelled or terminated for any crop year after insurance
attached for that crop year, but on or before the cancellation and
termination dates, whichever is later, insurance will not be considered
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
(4) The calendar date for the end of insurance period for each crop
year is the date specified in the Special Provisions.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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. Acreage
acquired after the acreage reporting date will not be insured.
(2) If you relinquish your insurable share on any insurable acreage
of table grapes 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 or 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.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, 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 vineyard;
(3) Insects, except as excluded in 10(b)(1), 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; or
(8) 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 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) Phylloxera, regardless of cause; or
(2) Inability to market the table grapes for any reason other than
the 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 of the Basic
Provisions, the following will apply:
(a) You must notify us within 3 days after the date harvest should
have started if the crop will not be harvested.
(b) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. 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 harvested for
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 the crop has been damaged during the growing season and you
previously gave notice in accordance with section 14 of the Basic
Provisions, you must also provide notice at least 15 days prior to the
beginning of harvest if you intend to claim an indemnity as a result of
the damage previously reported. You must not destroy the damaged crop
until the earlier of 15 days from the date you gave notice of loss, or
our 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 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.
[[Page 320]]
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying each result in section 12(b)(1) by the respective
price election you selected for each type or variety;
(3) Totaling the results in section 12(b)(2);
(4) Multiplying the total production to count of each type or
variety, if applicable, (see section 12(c)) by the respective price
election you selected;
(5) Totaling the results in section 12(b)(4);
(6) Subtracting the result of section 12(b)(5) from the result in
section 12(b)(3); and
(7) Multiplying the result of section 12(b)(6) by your share.
(c) The total production to count (in lugs) 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 in section 11(b);
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production that meets, or would meet if properly
handled, the state quality standards, if specified in the Special
Provisions, or the appropriate USDA grade standard (if no state standard
is specified); 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 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 insurable acreage regardless of
condition or disposition. The quantity of production to count for table
grape production damaged by insurable causes within the insurance period
that is marketed for any use other than table grapes will be determined
by multiplying the greater of (1) the value of the table grapes per ton
or (2) $50, by 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.
13. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 47747, Sept. 11, 1997, as amended at 62 FR 65175, Dec. 10, 1997;
65 FR 47839, Aug. 4, 2000; 74 FR 32057, July 7, 2009; 74 FR 35113, July
20, 2009; 76 FR 4804, Jan. 27, 2011; 87 FR 38896, June 30, 2022; 87 FR
52854, Aug. 30, 2022]
Sec. 457.150 Dry bean crop insurance provisions.
The Dry Bean Crop Insurance Provisions for the 2022 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
Dry Bean Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Actual value. The dollar value received, or that could be received,
for contract seed beans under a seed bean processor contract if the
contract seed bean production is properly handled in accordance with the
requirements of such contract.
Base price. The price per pound (excluding any discounts or
incentives that may apply) that is stated in the seed bean processor
contract and that will be paid to the producer for at least 50 percent
of the total production under contract with the seed company.
Beans. Dry beans and contract seed beans.
Combining. A harvesting process that uses a machine to separate the
beans from the pods and other vegetative matter and place the beans into
a temporary storage receptacle.
Contract seed beans. Dry beans grown under the terms of a seed bean
processor contract for the purpose of producing seed to be used for
producing dry beans or vegetable beans in a future crop year.
Dry beans. The crop defined by The United States Standards for Beans
excluding contract seed beans.
Harvest. Combining the beans. Beans which are swathed or knifed
prior to combining are not considered harvested.
Local market price. The cash price per hundredweight for the U.S.
No. 2 grade of dry
[[Page 321]]
beans of the insured type offered by buyers in the area in which you
normally market the dry beans. Moisture content and factors not
associated with grading under the United States Standards for Beans will
not be considered in establishing this price.
Net price. The dollar value of dry bean production received, or that
could have been received, after reductions in value due to insurable
causes of loss.
Pick. The percentage, on a weight basis, of defects including
splits, damaged (including discolored) beans, contrasting types, and
foreign material that remains in the dry beans after dockage has been
removed by the proper use of screens or sieves.
Planted acreage. In addition to the definition contained in the
Basic Provisions, beans must initially be planted in rows far enough
apart to permit mechanical cultivation, unless otherwise provided by the
Special Provisions, actuarial documents, 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 after
the end of the late planting period unless replanting is generally
occurring in the area. For contract seed beans, it will not be
considered practical to replant unless production from the replanted
acreage can be delivered under the terms of the seed bean processor
contract or the seed company agrees to accept such production.
Seed bean processor contract. A written agreement between the
contract seed bean producer and the seed company, containing at a
minimum:
(a) The contract seed bean producer's promise to plant and grow one
or more specific varieties of contract seed beans, and deliver the
production from those varieties to the seed company;
(b) The seed company's promise to purchase all the production stated
in the contract; and
(c) A base price, or a method to determine such price based on
published independent information, that will be paid to the contract
seed bean producer for the production stated in the contract.
Seed company. Any business enterprise regularly engaged in the
processing of seed beans, that possesses all licenses and permits for
marketing seed beans required by the State in which it operates, and
that possesses or has contracted for facilities, with enough drying,
screening and bagging or packaging equipment to accept and process the
seed beans within a reasonable amount of time after harvest.
Swathing or knifing. Severance of the bean plant from the ground,
including the pods and beans, and placing them into windrows.
Type. A category of beans identified as a type in the Special
Provisions or insured by written agreement.
2. Unit Division.
(a) In addition to the definition of basic unit in section 1 of the
Basic Provisions, all acreage of contract seed beans qualifies as a
separate basic unit. For production based seed bean processor contracts,
the basic unit will consist of all the acreage needed to produce the
amount of production under contract, based on the actual production
history of the acreage. For acreage based seed bean processor contracts,
the basic unit will consist of all acreage specified in the contract.
(b) In addition to enterprise units provided in section 34(a) of the
Basic Provisions, you may elect separate enterprise units by type, as
provided in this section, if allowed by the actuarial documents. If you
elect enterprise units by type, you may not elect enterprise or optional
units by irrigation practices.
(1) You may elect separate enterprise units by type unless otherwise
specified in the Special Provisions. For example, if you have Great
Northern and Pinto types, you may elect one enterprise unit for the
Great Northern type or one enterprise unit for the Pinto type, or
separate enterprise units for both types. Any acreage which is not
reported and insured as an enterprise unit will be insured as a basic
unit or optional unit if requirements are met. For example, if you only
have Great Northern and Pinto types, you may have an enterprise unit for
the Great Northern type acreage and basic or optional units for the
Pinto type acreage.
(2) You must separately meet the requirements in section 34(a)(4) of
the Basic Provisions for each enterprise unit by type.
(3) If you elected separate enterprise units for multiple types and
we discover enterprise unit qualifications are not separately met for
all types in which you elected enterprise units and such discovery is
made:
(i) On or before the acreage reporting date, you may elect to
insure:
(A) All types in which you elected an enterprise unit for meeting
the requirements in section 34(a)(4) as separate enterprise units, and
basic or optional units for any acreage that is not reported and insured
as an enterprise unit, whichever you report on your acreage report and
for which you qualify;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
[[Page 322]]
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in the
county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure for all acreage of
the crop in the county.
(4) If you elected an enterprise unit for only one type and we
discover you do not qualify for an enterprise unit for that type and
such discovery is made:
(i) On or before the acreage reporting date, your unit division for
all acreage of the crop in the county will be based on basic or optional
units, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure for all acreage of the crop in the county.
(c) In addition to, or instead of, establishing optional units as
provided in section 34(c) in the Basic Provisions, a separate optional
unit may be established for each bean type (designated in actuarial
documents and including any type insured by written agreement).
(d) Contract seed beans may qualify for a separate enterprise or
optional unit only if the seed bean processor contract specifies the
number of acres under contract and contract seed beans are listed as a
separate type in the actuarial documents. Contract seed beans produced
under a seed bean processor contract that specifies only an amount of
production are not eligible for a separate enterprise or optional unit.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3(b) of the Basic
Provisions (Sec. 457.8), you may select only one price election for all
the dry beans in the county insured under this policy unless the Special
Provisions provide different price elections by type, in which case you
may select one price election for each dry bean type designated in the
Special Provisions. The price elections you choose for each type are not
required to have the same percentage relationship to the maximum price
offered by us for each type. For example, if you choose 100 percent of
the maximum price election for one type, you may also choose 75 percent
of the maximum price election for another type.
(b) For contract seed beans only, the dollar amount of insurance is
obtained by multiplying the production guarantee per acre for each
variety in the unit by the insured acreage of that variety, times the
applicable base price, and times the price election percentage you
selected. The total of these results will be the amount of insurance for
contract seed beans in the unit.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are:
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates
----------------------------------------------------------------------------------------------------------------
California............................................ February 28.
All other States...................................... March 15.
----------------------------------------------------------------------------------------------------------------
6. Report of Acreage
For contract seed beans only, in addition to the requirements of
section 6 of the Basic Provisions (Sec. 457.8), you must submit a copy
of the seed bean processor contract on or before the acreage reporting
date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions (Sec.
457.8), the crop insured will be all the beans in the county for which a
premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvest as:
(i) Dry beans; or
(ii) If applicable, contract seed beans, if the seed bean processor
contract is executed on or before the acreage reporting date; and
(3) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume.
(b) For contract seed beans only:
(1) An instrument in the form of a ``lease'' under which you retain
control of the acreage on which the insured crop is grown and that
provides for delivery of the crop under substantially the same terms as
a seed bean processor contract may be treated as a contract under which
you have an insurable interest in the crop; and
[[Page 323]]
(2) We will not insure any acreage of contract seed beans produced
by a seed company.
(c) In addition to the types of dry beans designated in the Special
Provisions, we will insure other types if:
(1) The type you intend to plant has been demonstrated to be adapted
to the area. Evidence of adaptability must include:
(i) Results of test plots for 2 years and recommendations by a
university or seed company; or
(ii) Two years of production reports that indicate your experience
producing the type in your production area;
(2) You submit on or before the sales closing date your production
reports and prices received, or the test plot results, and evidence of
market potential, including the price buyers are willing to pay for the
type; and
(3) Both parties (you and us) enter into a written agreement
allowing insurance on the type in accordance with section 18 of the
Basic Provisions.
(d) Any acreage of beans that is destroyed and replanted to a
different insurable type of beans will be considered insured acreage in
accordance with section 11.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions
(Sec. 457.8):
(a) We will not insure any acreage that does not meet the rotation
requirements contained in the Special Provisions; or
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that the majority of growers in the area
would normally not further care for the crop, must be replanted unless
we agree that replanting is not practical. We will not require you to
replant if it is not practical to replant to the same type of beans as
originally planted.
9. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions (Sec. 457.8), the calendar date for the end of the insurance
period is the date immediately following planting as follows:
(a) October 15 in Oklahoma, New Mexico, and Texas;
(b) November 15 in California; and
(c) October 31 in all other States.
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions (Sec. 457.8), insurance is provided only against the
following causes of loss that occur during 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 of the Basic Provisions (Sec.
457.8), a replanting payment is allowed if the bean crop is 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 and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of 10 percent of the production guarantee for the type to be
replanted or 120 pounds multiplied by your price election for the type
to be replanted and by your insured share.
(c) When beans are 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. The premium amount will not be
reduced.
(d) The guarantee and premium for acreage replanted to a different
insurable type will be based on the replanted type and will be
calculated in accordance with sections 3 and 7 of the Basic Provisions
(Sec. 457.8) and section 3 of these Crop Provisions.
12. Duties in the Event of Damage or Loss
In accordance with the requirements of section 14 of the Basic
Provisions (Sec. 457.8), 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.
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 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 unit.
(b) In the event of loss or damage to your bean crop covered by this
policy, we will settle your claim by:
[[Page 324]]
(1) Multiplying the insured acreage of each dry bean type by its
respective production guarantee;
(2) Multiplying each result in section 13(b)(1) by the respective
price election for each insured type;
(3) Totaling the results in section 13(b)(2);
(4) Multiplying the insured acreage of each contract seed bean type
by its respective production guarantee;
(5) Multiplying each result in section 13(b)(4) by the applicable
base price;
(6) Multiplying each result in section 13(b)(5) by your selected
price election percentage;
(7) Totaling the results in section 13(b)(6);
(8) Totaling the results in section 13(b)(3) and section 13(b)(6);
(9) Multiplying the total production to be counted of each dry bean
type if applicable, (see section 13(d)) by the respective price
election;
(10) Totaling the value of all contract seed bean production (see
section 13(c));
(11) Totaling the results in section 13(b)(9) and section 13(b)(10);
(12) Subtracting the total in section 13(b)(11) from the total in
section 13(b)(8); and
(13) Multiplying the result by your share.
(c) The value of contract seed bean production to count for each
type in the unit will be determined as follows:
(1) For production meeting the minimum quality requirements
contained in the seed bean processor contract and for production that
does not meet such requirements due to uninsured causes:
(i) Multiplying the actual value or base price per pound, whichever
is greater, by the price election percentage you selected; and
(ii) Multiplying the result by the number of pounds of such
production.
(2) For production not meeting the minimum quality requirements
contained in the seed bean processor contract due to insurable causes:
(i) Multiplying the actual value by the price election percentage
you selected; and
(ii) Multiplying the result by the number of pounds of such
production.
(d) The total bean production to count (in pounds) 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 put to another use without our consent;
(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 (mature unharvested production of dry
beans may be adjusted for quality deficiencies and excess moisture in
accordance with section 13(e)); and
(iv) 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 when 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 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.
(e) Mature dry bean production to count may be adjusted for excess
moisture and quality deficiencies. If moisture adjustment is applicable,
it will be made prior to any adjustment for quality. Adjustment for
excess moisture and quality deficiencies will not be applicable to
contract seed beans.
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of 18 percent. We may obtain
samples of the production to determine the moisture content.
(2) Production will be eligible for quality adjustment if:
(i) A pick is designated in the Special Provisions and the pick of
the damaged production exceeds this designation; or
(ii) A pick is not designated in the Special Provisions and
deficiencies in quality, in accordance with the United States Standards
for Beans, result in dry beans not meeting the grade requirements for
U.S. No. 2 (grades U.S. No. 3 or worse) because the beans are damaged or
badly damaged; or
(iii) 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.
[[Page 325]]
(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 which occurs within the insurance period;
(ii) The deficiencies, substances, or conditions result in a net
price for the damaged production that is less than the local market
price;
(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;
(iv) With regard to deficiencies in quality (except test weight,
which may be determined by our loss adjuster), the samples are analyzed
by:
(A) A grader licensed under the United States Agricultural Marketing
Act or the United States Warehouse Act;
(B) A grader licensed under State law and employed by a warehouse
operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grader not licensed under State law, but who is employed by a
warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(v) With regard to substances or conditions injurious to human or
animal health, the samples are analyzed by a laboratory approved by us.
(4) Dry bean production that is eligible for quality adjustment, as
specified in sections 13(e) (2) and (3), will be reduced:
(i) If a conversion factor is designated by the Special Provisions,
by multiplying the number of pounds of eligible production by the
conversion factor designated in the Special Provisions for the
applicable grade or pick; or
(ii) If a conversion factor is not designated by the Special
Provisions as follows:
(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. If a local market price is not available for the insured crop
year, the current years' maximum price election available for the
applicable type will be used. The price for the qualifying damaged
production will be the market price for the local area to the extent
feasible. 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 dry beans to those buyers. Discounts used to establish the
net price of the damaged production will be limited to those that are
usual, customary, and reasonable. The price of the damaged production
will not be reduced for:
(1) Moisture content;
(2) Damage due to uninsured causes; or
(3) Drying, handling, processing, including trading tare for grade
to obtain a higher grade and price, or any other costs associated with
normal harvesting, handling, and marketing of the dry beans; 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;
(B) The value per pound 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.
(f) Any production harvested from plants growing in the insured crop
may be counted as production of the insured crop on a weight basis.
14. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 6105, Feb. 11, 1997, as amended at 62 FR 63633, Dec. 2, 1997; 62
FR 65175, Dec. 10, 1997; 67 FR 55690, Aug. 30, 2002; 81 FR 84400, Nov.
23, 2016; 86 FR 33084, June 24, 2021; 86 FR 45855, Aug. 17, 2021; 86 FR
67839, Nov. 30, 2021]
Sec. 457.151 Forage seeding crop insurance provisions.
The Forage Seeding Crop Insurance Provisions for 2022 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:
[[Page 326]]
Forage Seeding Crop Provisions
1. Definitions
Adequate stand. The number shown in the Special Provisions,
representing:
(a) For forage containing 60 percent or more alfalfa, the minimum
required number of live alfalfa stems per square foot that are two
inches or greater in height; or
(b) For forage containing less than 60 percent alfalfa, the normal
planting density.
Amount of insurance. The dollar amount of insurance per acre
obtained by multiplying the reference maximum dollar amount shown in the
actuarial documents by the coverage level percentage you elect.
Companion crop. A crop seeded into the same acreage as another crop,
that is intended to be harvested separately, and that is planted to
improve growing conditions for the crop with which it is grown.
Crop year. The period within which the planting is or normally would
become established and shall be designated by the calendar year in which
the planting is made for spring planted acreage and the next succeeding
calendar year for fall planted acreage.
Fall planted. A forage crop seeded after June 30, except when
specified in the Special Provisions.
Forage. Planted perennial alfalfa, perennial red clover, perennial
grasses, or a mixture thereof, or other species, as shown in the
actuarial documents.
Good farming practices. In lieu of the definition in the Basic
Provisions, the cultural practices generally in use in the county for
the crop to make normal progress toward maturity and produce an adequate
stand, and which are those generally recognized by agricultural experts
or organic agricultural experts as compatible with agronomic and weather
conditions for the area.
Harvest. Severance of the forage plant from its roots. Acreage that
is grazed will not be considered harvested.
Normal planting density. The minimum number of live plants per
square foot as shown in the Special Provisions.
Planted acreage. In addition to the definition in the Basic
Provisions, 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, unless otherwise provided by the Special Provisions, actuarial
documents, or written agreement.
Replanting. In addition to the definition in the Basic Provisions,
placing new seed into an existing damaged stand, using a reduced seeding
rate from the original seeding rate, will not be considered replanting.
Sales closing date. In lieu of the definition contained in the Basic
Provisions, a date contained in the Special Provisions by which an
application must be filed and by which you may change your crop
insurance coverage for a crop year. If the Special Provisions provide a
sales closing date for both fall planted and spring planted practices
for the insured crop and you plant any insurable fall planted acreage,
you may not change your crop insurance coverage after the sales closing
date for the fall planted practice.
Spring planted. A forage crop seeded before July 1, except when
specified in the Special Provisions.
2. Unit Division
A basic unit, as defined in section 1 of the Basic Provisions, will
also be divided into additional basic units by spring planted and fall
planted acreage.
3. Amounts of Insurance.
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may only select one coverage level and the corresponding
amount of insurance designated in the actuarial documents for the
applicable type and practice for all the forage seeding in the county
that is insured under this policy. The amount of insurance you choose
for each type and practice must have the same percentage relationship to
the maximum amount of insurance offered by us for each type and
practice. For example, if you choose 100 percent of the maximum amount
of insurance for a specific type and practice, you must also choose 100
percent of the maximum amount of insurance for all other types and
practices.
(b) In counties with both fall and spring sales closing dates for
the insured crop:
(1) If you do not have any insurable fall planted acreage, you may
purchase or revise your coverage for your spring planted acreage until
the spring sales closing date;
(2) In accordance with section 3(a), if you insured your fall
planted acreage, you must insure your spring planted acreage with the
same coverage as the fall planted acreage; and
(3) If you did not insure your fall planted acreage, you are not
eligible to purchase insurance for the spring planted acreage.
(c) The production reporting requirements contained in section 3 of
the Basic Provisions, do not apply to forage seeding.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date for counties
with a March 15 cancellation date and April 30 preceding the
cancellation date for all other counties.
[[Page 327]]
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State Cancellation Termination
------------------------------------------------------------------------
Maine........................... March 15.......... March 15.
All other states................ July 31........... September 30.
------------------------------------------------------------------------
6. Report of Acreage.
In lieu of the provisions of section 6(a) of the Basic Provisions, a
report of all insured acreage of forage seeding must be submitted on or
before each forage seeding acreage reporting date specified in the
Special Provisions.
7. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the forage in the county for which a premium rate is
provided by the actuarial documents:
(a) In which you have a share;
(b) That is planted during the current crop year, or replanted
during the calendar year following planting, to establish an adequate
stand of forage;
(c) That is not grown with the intent to be grazed, or not grazed at
any time during the insurance period; and
(d) That is not interplanted with another crop, except companion
crops, unless allowed by the Special Provisions or by written agreement.
8. Insurable Acreage.
In addition to the provisions of section 9 of the Basic Provisions,
unless otherwise specified in the Special Provisions, any acreage of the
insured crop damaged before the spring final planting date, to the
extent that such acreage has less than 75 percent of a normal planting
density, must be replanted unless we agree that it is not practical to
replant.
9. Insurance Period
In lieu of the provisions of section 11 of the Basic Provisions
regarding when insurance ends, forage seeding insurance will end at the
earliest of:
(a) Total destruction of the insured crop on the unit;
(b) The initial harvest of the unit, if a late harvest date is not
listed in the Special Provisions;
(c) The first harvest after the late harvest date, if a late harvest
date is specified in the Special Provisions (You may harvest the crop as
often as practical in accordance with good farming practices on or
before the late harvest date);
(d) Final adjustment of a loss on a unit;
(e) Abandonment of the insured crop;
(f) The date grazing commences on the insured crop; or
(g) The end of insurance period date shown in the actuarial
documents.
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes that
result in loss of, or failure to establish, an adequate stand that
occurs during 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 Payment
In lieu of the provisions contained in section 13 of the Basic
Provisions:
(a) Unless otherwise specified in the Special Provisions, a
replanting payment is allowed if:
(1) It is practical to replant;
(2) We give written consent to replant;
(3) In California, acreage planted to the insured crop is damaged by
an insurable cause of loss occurring before the spring final planting
date in the actuarial documents to the extent that less than 75 percent
of the normal planting density remains, and the crop can reach maturity
before the end of the insurance period;
(4) In all other states:
(i) The insured spring or fall planted acreage is damaged by an
insurable cause of loss to the extent that less than 75 percent of the
normal planting density remains;
(ii) If fall planted, the acreage is replanted the following spring
by the spring final planting date; and
(iii) If spring planted, the original planting took place after the
earliest planting date shown in the Special Provisions, and the acreage
is replanted by the spring final planting date shown in the Special
Provisions.
(b) The amount of the replanting payment will be equal to 50 percent
of the amount of indemnity determined in accordance with section 13(a)
unless otherwise specified in the Special Provisions.
(c) No replanting payment will be made on acreage for which one
replanting payment has been allowed.
(d) If the information reported by you on the acreage report results
in a lower premium than the actual premium determined
[[Page 328]]
to be due based on the acreage, share, practice, or type determined
actually to have existed, the replanting payment will be reduced
proportionately.
12. Duties in the Event of Damage or Loss.
(a) In accordance with the requirements of section 14 of the Basic
Provisions, the representative samples of the 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 tilling of the balance of the unit is
completed.
(b) In addition to the requirements of section 14 of the Basic
Provisions, you must give us written notice if, during the period before
destroying the crop on any damaged fall planted acreage, you decide to
replant the acreage by the spring final planting date.
13. Settlement of Claim.
In the event of loss or damage covered by this policy, we will
settle your claim on any unit by:
(a) For each type and practice:
(1) Determining the value of all insured acreage by multiplying the
number of insured acres by the dollar amount of insurance;
(2) Determining the value of the acreage with no insurable losses,
by multiplying the dollar amount of insurance by the insured acreage
that:
(i) Has at least 75 percent of an adequate stand;
(ii) Was abandoned or put to another use without our prior written
consent;
(iii) Was damaged solely by an uninsured cause; or
(iv) Was harvested and not reseeded.
(3) Determining the value of the acreage with partial insurable
losses, by multiplying the dollar amount of insurance by the number of
insured acres that have a stand less than 75 percent but more than 55
percent of an adequate stand, by 50 percent (0.5);
(4) Adding the results in section 13(a)(2) and section 13(a)(3);
(5) Subtracting the results in section 13(a)(4) from the results in
section 13(a)(1); and
(6) Multiplying the result in section 13(a)(3) by your share; and
(b) Totaling the results in section 13(a).
Example: Assume you have a 100 percent share in 30 acres of type A
forage in the unit, with an amount of insurance of $100 per acre. At the
time of loss, the following findings are established: 10 acres had a
remaining stand of 75 percent of an adequate stand or greater. 20 acres
had a remaining stand less than 75 percent but more than 55 percent of
an adequate stand.
You also have a 100 percent share in 20 acres of type B forage in
the unit, with an amount of insurance of $90 per acre. 10 acres had a
remaining stand of 75 percent of an adequate stand or greater. 10 acres
had a remaining stand less than 55 percent of an adequate stand.
Your indemnity would be calculated as follows:
1. 30 acres x $100 = $3,000 amount of insurance for type A; 20 acres
x $90 = $1,800 amount of insurance for type B;
2. 10 acres with 75% of an adequate stand or greater x $100 = $1,000
for type A; 10 acres with 75% of an adequate stand or greater x $90 =
$900 for type B;
3. 20 acres with less than 75% but greater than 55% of an adequate
stand x $100 x 50 percent = $1,000 for type A; 0 acres with less than
75% but greater than 55% of an adequate stand x $90 x 50 percent = $0
for type B;
4. $1,000 + $1,000 = $2,000 reduction for type A; $900 + $0 = $900
reduction for type B;
5. $3,000 - $2,000 = $1,000 for type A; $1,800 - $900 = $900 for
type B
6. $1,000 x 100 percent share = $1,000 for type A; $900 x 100
percent share = $900 for type B;
7. $1,000 + $900 = $1,900 total indemnity
14. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 13291, Mar. 20, 1997, as amended at 62 FR 65175, Dec. 10, 1997;
65 FR 3784, Jan. 25, 2000; 65 FR 11457, Mar. 3, 2000; 66 FR 42730, Aug.
15, 2001; 66 FR 53076, Oct. 19, 2001; 67 FR 65030, Oct. 23, 2002; 76 FR
4804, Jan. 27, 2011; 85 FR 23900, Apr. 30, 2020; 86 FR 22583, Apr. 29,
2021]
Sec. 457.152 Hybrid seed corn crop insurance provisions.
The Hybrid Seed Corn Crop Insurance Provisions for the 2017 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
Hybrid Seed Corn Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions, (Sec. 457.8) with (1)
controlling (2), etc.
[[Page 329]]
1. Definitions
Adjusted yield. An amount determined by multiplying the county yield
by the coverage level factor.
Amount of insurance per acre. A dollar amount determined by
multiplying the adjusted yield by the price election you select and
subtracting any minimum guaranteed payment, not to exceed the total
compensation specified in the hybrid seed corn processor contract. If
your hybrid seed corn processor contract contains a minimum guaranteed
payment that is stated in bushels, we will convert that value to dollars
by multiplying it by the price election you selected.
Approved yield. In lieu of the definition contained in the Basic
Provisions, an amount FCIC determines to be representative of the yield
that the female parent plants are expected to produce when grown under a
specific production practice. FCIC will establish the approved yield
based upon records provided by the seed company and other information it
deems appropriate.
Bushel. Fifty-six pounds avoirdupois of shelled corn, 70 pound
avoirdupois of ear corn, or the number of pounds determined under the
seed company's normal conversion chart when that chart is used to
determine the approved yield and the claim for indemnity.
Certified seed test. A warm germination test performed on clean seed
according to specifications of the ``Rules for Testing Seeds'' of the
Association of Official Seed Analysts.
Commercial hybrid seed corn. The offspring produced by crossing a
male and female parent plant, each having a different genetic character.
This offspring is the product intended for use by an agricultural
producer to produce a commercial field corn crop for grain.
County yield. An amount contained in the actuarial documents that is
established by FCIC to represent the yield that a producer of hybrid
seed corn would be expected to produce if the acreage had been planted
to commercial field corn.
Coverage level factor. A factor contained in the Special Provisions
to adjust the county yield for commercial field corn to reflect the
higher value of hybrid seed corn.
Dollar value per bushel. An amount that determines the value of any
seed production to count. It is determined by dividing the amount of
insurance per acre by the result of multiplying the approved yield by
the coverage level percentage, expressed as a decimal.
Female parent plants. Corn plants that are grown for the purpose of
producing commercial hybrid seed corn and have had the stamens removed
or are otherwise male sterile.
Field run. Commercial hybrid seed corn production before it has been
dried, screened, or processed.
Good farming practices. In addition to the definition contained in
the Basic Provisions, good farming practices include those practices
required by the hybrid seed corn processor contract.
Harvest. Combining, threshing or picking ears from the female parent
plants to obtain commercial hybrid seed corn.
Hybrid seed corn processor contract. An agreement executed between
the hybrid seed corn crop producer and a seed company containing, at a
minimum:
(a) The producer's promise to plant and grow male and female parent
plants, and to deliver all commercial hybrid seed corn produced from
such plants to the seed company;
(b) The seed company's promise to purchase the commercial hybrid
seed corn produced by the producer; and
(c) Either a fixed price per unit of measure (bushels,
hundredweight, etc.) of the commercial hybrid seed corn or a formula to
determine the value of such seed. Any formula for establishing the value
must be based on data provided by a public third party that establishes
or provides pricing information to the general public, based on prices
paid in the open market (e.g., commodity futures exchanges), to be
acceptable for the purpose of this policy.
Inadequate germination. Germination of less than 80 percent of the
commercial hybrid seed corn as determined by using a certified seed
test.
Insurable interest. Your share of the financial loss that occurs in
the event seed production is damaged by a cause of loss specified in
section 10.
Local market price. The cash price offered by buyers for any
production from the female parent plants that is not considered
commercial hybrid seed corn under the terms of this policy.
Male parent plants. Corn plants grown for the purpose of pollinating
female parent plants.
Minimum guaranteed payment. A minimum amount (usually stated in
dollars or bushels) specified in your hybrid seed corn processor
contract that will be paid or credited to you by the seed company
regardless of the quantity of seed produced.
Non-seed production. Production that does not qualify as seed
production because of inadequate germination.
Planted acreage. In addition to the definition contained in the
Basic Provisions, the insured crop must be planted in rows wide enough
to permit mechanical cultivation, unless otherwise provided by the
Special Provisions or by written agreement.
Planting pattern. The arrangement of the rows of the male and female
parent plants in a field. An example of a planting pattern is
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four consecutive rows of female parent plants followed by two
consecutive rows of male parent plants.
Practical to replant. In addition to the definition contained in the
Basic Provisions, practical to replant applies to either the female or
male parent plant. It will not be considered practical to replant unless
production from the replanted acreage can be delivered under the terms
of the hybrid seed corn processor contract, or the seed company agrees
that it will accept the production from the replanted acreage.
Prevented planting. In addition to the definition contained in the
Basic Provisions, prevented planting applies to the female and male
parent plants. The male parent plants must be planted in accordance with
the requirements of the hybrid seed corn processor contract to be
considered planted.
Sample. For the purpose of the certified seed test, at least 3
pounds of randomly selected field run shelled corn for each variety of
commercial hybrid seed corn grown on the unit.
Seed company. A business enterprise that possesses all licenses for
marketing commercial hybrid seed corn required by the state in which it
is domiciled or operates, and which possesses facilities with enough
storage and drying capacity to accept and process the insured crop
within a reasonable amount of time after harvest. If the seed company is
the insured, it must also be a corporation.
Seed production. All seed produced by female parent plants with a
germination rate of at least 80 percent as determined by a certified
seed test.
Shelled corn. Kernels that have been removed from the cob.
Variety. The name, number or code assigned to a specific genetic
cross by the seed company or the Special Provisions for the insured crop
in the county.
2. Unit Division
For any processor contract that stipulates the amount of production
to be delivered:
(a) In lieu of the definition of ``basic unit'' contained in the
Basic Provisions, a basic unit will consist of all acreage planted to
the insured crop in the county that will be used to fulfill a hybrid
seed corn processor contract;
(b) There will be no more than one basic unit for all production
contracted with each processor contract;
(c) In accordance with section 12, all production from any basic
unit in excess of the amount under contract will be included as
production to count if such production is applied to any other basic
unit for which the contracted amount has not been fulfilled; and
(d) Optional units will not be established.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all the hybrid
seed corn in the county insured under this policy unless the Special
Provisions provide different price elections by variety, in which case
you may select one price election for each hybrid seed corn variety
designated in the Special Provisions. The price election you choose for
each variety must have the same percentage relationship to the maximum
price offered by us for each variety. For example, if you choose 100
percent of the maximum price election for one specific variety, you must
also choose 100 percent of the maximum price election for all other
varieties.
(b) The production reporting requirements contained in section 3 of
the Basic Provisions are not applicable to this contract.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage
In addition to the requirements of section 6 of the Basic
Provisions, you must:
(a) Report by type and variety, the location and insurable acreage
of the insured crop;
(b) Report any acreage that is uninsured, including that portion of
the total acreage occupied by male parent plants; and
(c) Certify that you have a hybrid seed corn processor contract and
report the amount, if any, of any minimum guaranteed payment.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the female parent plants in the county for which a
premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are grown under a hybrid seed corn processor contract
executed before the acreage reporting date;
(3) That are planted for harvest as commercial hybrid seed corn in
accordance with the requirements of the hybrid seed corn processor
contract and the production management practices of the seed company;
and
(4) That are not (unless allowed by the Special Provisions or by
written agreement):
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(i) Planted with a mixture of female and male parent seed in the
same row;
(ii) Planted for any purpose other than for commercial hybrid seed
corn;
(iii) Interplanted with another crop; or
(iv) Planted into an established grass or legume.
(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 that
provides for delivery of the crop under substantially the same terms as
a hybrid seed corn processor contract will be treated as a contract
under which you have an insurable interest in the crop.
(c) A commercial hybrid seed corn producer who is also a seed
company may be able to insure the hybrid seed corn crop if the following
requirements are met:
(1) The seed company has an insurable interest in the hybrid seed
corn crop;
(2) Prior to the sales closing date, the Board of Directors of the
seed company has executed and adopted a corporate resolution that
contains the same terms as a hybrid seed corn processor contract. This
corporate resolution will be considered a contract under this policy;
(3) Sales records for at least the previous years' seed production
must be provided to confirm that the seed company has produced and sold
seed. If such records are not available, the crop may be insured under
the Coarse Grains Crop Provisions with a written agreement; and
(4) Our inspection reveals that the storage and drying facilities
satisfy the definition of a seed company.
(d) Any of the insured crop that is under contract with different
seed companies may be insured under separate policies with different
insurance providers provided all acreage of the insured crop in the
county is insured. If you elect to insure the insured crop with
different insurance providers, you agree to pay separate administrative
fees for each insurance policy.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions,
we will not insure any acreage of the insured crop:
(a) Planted and occupied exclusively by male parent plants;
(b) Not in compliance with the rotation requirements contained in
the Special Provisions or, if applicable, required by the hybrid seed
corn processor contract; or
(c) If either the female or male parent plants are damaged before
the final planting date and we determine that the insured crop is
practical to replant but it is not replanted.
9. Insurance Period
(a) In addition to the provisions of section 11 of the Basic
Provisions, insurance attaches upon completion of planting of:
(1) The female parent plant seed on or before the final planting
date designated in the Special Provisions, except as allowed in section
16 of the Basic Provisions; and
(2) The male parent plant seed.
(b) In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is the
October 31 immediately following planting.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur within the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(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; or
(8) Failure of the irrigation water supply, if due to a cause of
loss contained in section 10(a) (1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, we will not insure against any loss of production due
to:
(1) The use of unadapted, incompatible, or genetically deficient
male or female parent plant seed;
(2) Frost or freeze after the date established by the Special
Provisions;
(3) Failure to follow the requirements stated in the hybrid seed
corn processor contract and production management practices of the seed
company;
(4) Inadequate germination, even if resulting from an insured cause
of loss, unless you have provided adequate notice as required by section
11(b)(1); or
(5) Failure to plant the male parent plant seed at a time or in a
manner sufficient to assure adequate pollination of the female parent
plants, unless you are prevented from planting the male parent plant
seed by an insured cause of loss.
11. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples of at least one
complete planting pattern of the female and
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male parent plant rows that extend the entire length of each field in
the unit. If you are going to destroy any acreage of the insured crop
that will not be harvested, the samples must not be destroyed until
after our inspection.
(b) In addition to the requirements of section 14 of the Basic
Provisions:
(1) You must give us notice of probable loss at least 15 days before
the beginning of harvest if you anticipate inadequate germination on any
unit; and
(2) You must provide a completed copy of your hybrid seed corn
processor contract unless we have determined it has already been
provided by the seed company, and the seed company certifies that such
contract is used for all its growers without any waivers or amendments.
12. 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) You will not receive an indemnity payment on a unit if the seed
company refuses to provide us with records we require to determine the
dollar value per bushel of production for each variety.
(c) 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 amount of
insurance per acre, by type and variety if applicable;
(2) Totaling the results of section 12(c)(1) if there are more than
one type or variety;
(3) Multiplying the total seed production to count (see section
12(d)) for each type and variety of commercial hybrid seed corn by the
applicable dollar value per bushel for that type or variety;
(4) Multiplying the total non-seed production to count (see section
12(e)) for each type and variety by the applicable local market price
determined on the earlier of the date the non-seed production is sold or
the date of final inspection;
(5) Totaling the results of sections 12(c)(3) and 12(c)(4) by type
and variety;
(6) Subtracting the result of section 12(c)(5) from the result of
section 12(c)(1) if there is only one type or variety, or subtracting
the result of 12(c)(5) from the result of section 12(c)(2) if there are
more than one type or variety; and
(7) Multiplying the result of section 12(c)(6) by your share. For
example:
You have a 100 percent share in 50 acres insured for the development
of variety ``A'' hybrid seed corn in the unit, with an amount of
insurance per acre guarantee of $340 (county yield of 160 bushels times
a coverage level factor of .867 for the 65 percent coverage level, times
a price election of $2.45 per bushel, minus the minimum guaranteed
payment of zero). Your seed production was 1,400 bushels and the dollar
value per bushel was $9.80. Your non-seed production was 100 bushels
with a local market value of $2.00 per bushel. Your indemnity would be
calculated as follows:
(1) 50 acres x $340 = $17,000 amount of insurance guarantee;
(3) 1,400 bushels x $9.80 = $13,720 value of seed production;
(4) 100 bushel of non-seed x $2.00 = $200 of non-seed production;
(5) $13,720 + $200 = $13,920;
(6) $17,000 - $13,920 = $3,080; and
(7) $3,080 x 100 percent share = $3,080 indemnity payment.
You also have a 100 percent share in 50 acres insured for the
development of variety ``B'' hybrid seed corn in the unit, with an
amount of insurance per acre guarantee of $297 (county yield of 140
bushels times a coverage level factor of .867 for the 65 percent
coverage level, times a price election of $2.45 per bushel, minus the
minimum guaranteed payment of zero). You harvested 1,200 bushels and the
dollar value per bushel for the harvested amount was $8.56. You also
harvested 200 bushels of non-seed with a market value of $2.00 per
bushel. Your indemnity would be calculated as follows:
(1) 50 acres x $340 = $17,000 amount of insurance guarantee for type
``A'' and 50 acres x $297 = $14,850 amount of insurance guarantee for
type ``B'';
(2) $17,000 + $14,850 = $31,850 amount of insurance guarantee;
(3) 1,400 bushels x $9.80 = $13,720 value of seed production for
type ``A'' and 1,200 bushels x $8.56 = $10,272 value of seed production
for type ``B'';
(4) 100 bushels of non-seed x $2.00 = $200 of non-seed production
for type ``A'' and 200 bushels of non-seed x $2.00 = $400 of non-seed
production for type ``B'';
(5) $13,720 + $200 + $10,272 + $400 = $24,592 value of production to
count;
(6) $31,850 - $24,592 = $7,258; and
(7) $7,258 x 100 percent share = $7,258 indemnity payment.
(d) Production to be counted as seed production will include:
(1) All appraised production as follows:
(i) Not less than the amount of insurance per acre 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;
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(ii) Production lost due to uninsured causes;
(iii) Mature unharvested production with a germination rate of at
least 80 percent of the commercial hybrid seed corn as determined by a
certified seed test. Any such production may be adjusted in accordance
with section 12(f);
(iv) Immature appraised production;
(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 when 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 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) Harvested production that you deliver as commercial hybrid seed
corn to the seed company stated in your hybrid seed corn processor
contract, regardless of quality, unless the production has inadequate
germination.
(e) Production to be counted as non-seed production will include all
harvested or mature appraised production that does not qualify as seed
production to count as specified in section 12(d). Any such production
may be adjusted in accordance with section 12(f).
(f) For the purpose of determining the quantity of mature
production:
(1) Shelled commercial hybrid seed corn will be:
(i) Increased 0.12 percent for each 0.1 percentage point of moisture
below 15 percent; or
(ii) Decreased 0.12 percent for each 0.1 percentage point of
moisture in excess of 15 percent.
(2) The weight of ear corn required to equal one bushel of shelled
seed corn will be increased 1.5 pounds for each full percentage point of
moisture in excess of 14 percent, and any portion of a percentage point
will be disregarded. The moisture content of ear corn will be determined
from a shelled sample of the ear corn.
(3) When records of commercial hybrid seed corn production provided
by the seed company have been adjusted to a shelled corn basis of 15.0
percent moisture and 56 pound avoirdupois bushels, sections 12(f)(1) and
(2) above will not apply to harvested production. In such cases, records
of the seed company will be used to determine the amount of production
to count, provided that the moisture and weight of such production are
calculated on the same basis as that used to determine the approved
yield.
13. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your amount of insurance for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 65350, Dec. 12, 1997; 62 FR 67117, Dec. 23, 1997, as amended at
81 FR 84400, Nov. 23, 2016]
Sec. 457.153 Peach crop insurance provisions.
The Peach Crop Insurance Provisions for the 2023 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:
Peach Crop Provisions
1. Definitions
Bearing tree. A tree in at least the 4th growing season after set
out.
Bushel. Fifty pounds of ungraded peaches.
Fresh peach production. Peach production from insurable acreage
that:
(1) Is sold, or could be sold, for human consumption without
undergoing any change in the basic form, such as peeling, juicing,
crushing, etc.
(2) Grades at least U.S. Extra No. 1 or better, and consisting of a
2\1/4\ inch minimum diameter, unless otherwise specified in the Special
Provisions.
(3) Is from acreage that is designated as fresh peaches on the
acreage report;
[[Page 334]]
(4) Follows the recommended cultural practices generally in use for
fresh peach acreage in the area in a manner generally recognized by
agricultural experts;
(5) Is from acreage that you certify, and if requested by us,
provide verifiable records to support, that at least 50 percent of the
total production from acreage reported as fresh peach acreage was sold
as fresh peaches in one or more of the four most recent crop years; and
(6) Is sold or could have been sold for a price that is not less
than the applicable fresh peach price election for the applicable crop
year in the actuarial documents. If the fresh peach production is sold
or could have been sold for a price less than the applicable fresh peach
price election for the applicable crop year in the actuarial documents,
you must provide verifiable records to show that the price received was
at least the amount paid by buyers for fresh peaches in the area in
which you sell your peaches.
Harvest. The picking or removal of mature peaches from the trees
either by hand or machine.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Loss in quality. When the crop is damaged to the extent that the
producer does not receive the average price for U.S. Extra No. 1 peach.
Marketable. Peach production acceptable for processing or other
human consumption even if failing to meet any U.S. or applicable state
grading standard.
Packing shed. A facility at which peaches are graded, packed and
cooled in preparation for shipment to a wholesale market.
Post production cost. The costs, as specified in the Special
Provisions, associated with activities that occur during harvesting,
packing, transportation, and marketing, as determined by FCIC using
regional peach price data of peach production budgets from regional
respective universities extension, other USDA agencies, and other third
party resources.
Processing peach production. Peach production from insurable acreage
that is:
(i) Sold, or could be sold, for the purpose of undergoing a change
to its basic structure such as peeling, juicing, crushing, etc.; or
(ii) From acreage designated as processing peaches on the acreage
report.
Set out. Transplanting the tree into the orchard.
2. Unit Division
In addition to the requirements contained in section 34 of the Basic
Provisions, optional units may be established if each optional unit is:
(a) Located on non-contiguous land; or
(b) By fresh and processing.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic Provisions
(Sec. 457.8):
(a) You may select a separate coverage level for all fresh peach
acreage and for all processing peach acreage. For example, if you choose
the 55 percent coverage level for all fresh peach acreage, you may
choose the 75 percent coverage level for all processing peach acreage.
(1) Notwithstanding paragraph (a) of this section, if you elect the
Catastrophic Risk Protection (CAT) level of coverage for fresh peach
acreage or processing peach acreage, the CAT level of coverage will be
applicable to all insured peach acreage in the county of both fresh and
processing peaches.
(2) If you only have fresh peach acreage designated on your acreage
report and processing peach acreage is added after the sales closing
date, we will assign a coverage level equal to the coverage level you
selected for your fresh peach acreage.
(3) If you only have processing peach acreage designated on your
acreage report and fresh peach acreage is added after the sales closing
date, we will assign a coverage level equal to the coverage level you
selected for your processing peach acreage.
(b) You may select only one price election for all the peaches in
the county insured under this policy unless the actuarial documents
provide different price elections by fresh and processing peaches. If
the actuarial documents provide different price elections, you may
select a separate price election for all your fresh peaches and for all
your processing peaches. If the actuarial documents do not provide
different price elections, the price elections you choose for fresh
peaches and processing peaches must have the same percentage
relationship to the maximum price offered by us for fresh and processing
peaches. For example, if you choose 100 percent of the maximum price
election for fresh peaches, you must choose 100 percent of the maximum
price election for processing peaches.
(c) You must report, not later than the production reporting date
designated in section 3 of the Basic Provisions, separately by fresh and
processing peach acreage, as applicable:
(1) Any event or action that could impact the yield potential of the
insured crop including, interplanting of a perennial crop, removal of
trees, any tree damage, change in practices, or any other circumstance
that may reduce the expected yield upon which the insurance guarantee is
based, and the number of affected acres;
(2) The number of bearing and non-bearing trees on insurable and
uninsurable acreage;
[[Page 335]]
(3) The age of the trees, variety, and the planting pattern; and
(4) For the first year of insurance, acreage interplanted with
another perennial crop, and anytime the planting pattern of such acreage
is changed:
(i) The age of the crop that is interplanted with the peaches;
(ii) The variety;
(iii) The planting pattern; and
(iv) Any other reasonable and pertinent information that we request
in order to establish your approved yield.
(d) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
situation listed in sections 3(c)(1) through (4). If the situation
occurred:
(1) Before the beginning of the insurance period, we will reduce the
yield used to establish your production guarantee for the current crop
year as necessary. If you fail to notify us of any circumstance that may
reduce your yields from previous levels, we will reduce your production
guarantee at any time we become aware of the circumstance;
(2) Or may occur after the beginning of the insurance period and you
notify us by the production reporting date, the yield used to establish
your production guarantee is due to an uninsured cause of loss;
(3) Or may occur after the beginning of the insurance period and you
fail to notify us by the production reporting date, production lost due
to uninsured causes equal to the amount of the reduction in yield used
to establish your production guarantee will be applied in determining
any indemnity (see section 12(c)(1)(ii)). We will reduce the yield used
to establish your production guarantee for the subsequent crop year.
(e) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election if a
cause of loss that could or would reduce the yield of the insured crop
has occurred prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 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 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are November 20.
6. Report of Acreage
In addition to the requirements contained in section 6 of the Basic
Provisions, you must report and designate all acreage of peaches as
fresh or processing peaches by the acreage reporting date. Any acreage
not meeting all the requirements to qualify for fresh peach production
must be designated on the acreage report as processing peach production.
7. Insured Crop
In accordance with section 8 of the Basic Provisions (Sec. 457.8),
the crop insured will be all the peaches in the county for which a
premium rate is provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown on tree varieties that:
(1) Were commercially available when the trees were set out;
(2) Are a variety having a chilling hour requirement that is
appropriate for the area;
(3) Are grown on a root stock that is adapted to the area.
(c) That the crop insured will be any varieties of peaches that are
grown for the production of Fresh or Processing Peaches.
(d) That are grown in an orchard that, if inspected, is considered
acceptable by us; and
(e) That are grown on trees that have reached at least the fourth
leaf year, unless otherwise allowed by the Special Provisions.
8. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions
(Sec. 457.8), that prohibit insurance attaching to a crop planted with
another crop, peaches 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.
9. Insurance Period
(a) In accordance with the provisions of section 11 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 to determine the
condition of the orchard.
(2) The calendar date for the end of the insurance period for each
crop year is September 30.
(b) In addition to the provisions of section 11 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
[[Page 336]]
acreage on the calendar date for the beginning of the insurance period.
(2) If you relinquish your insurable interest on any acreage of
peaches on or before the acreage reporting date for the crop year and if
the acreage was insured by you the previous crop year, insurance will
not be considered to have attached, and no premium or indemnity will be
due 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.
(c) Notwithstanding section 9(a)(1) of this section, for each
subsequent crop year that the policy remains continuously in force,
coverage begins on the day immediately following the end of the
insurance period for the prior crop year. Policy cancellation that
results solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage.
(d) If your peach policy is canceled or terminated for any crop
year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates, whichever is later, insurance will not be considered
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
10. Causes of Loss
(a) In accordance with the provisions of section 12 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) Insects, but not damage due to insufficient or improper
application of pest control measures;
(5) Plant disease, but not damage due to insufficient or improper
application of disease control measures;
(6) Volcanic eruption;
(7) Wildlife, unless control measures have not been taken;
(8) An insufficient number of chilling hours to effectively break
dormancy; or
(9) 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 of the
Basic Provisions (Sec. 457.8), we will not insure against damage or
loss of production due to:
(1) Split pits, regardless of cause; or
(2) Inability to market the peaches 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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples in accordance with our
procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions (Sec. 457.8), and unless the insurance period has ended
prior to each of the following events, the following will apply:
(1) You must notify us within three days of the date that harvest of
the damaged variety should have started if the crop will not be
harvested.
(2) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested, unless you have records verifying that the direct market
peaches were ``weighed and graded'' through a packing shed. Failure to
give timely notice that production will be harvested for direct
marketing will result in an appraised amount of production to count not
less than the production guarantee per acre if such failure results in
our inability to make the required appraisal.
(3) If you previously gave notice in accordance with section 14 of
the Basic Provisions (Sec. 457.8), and if you intend to claim an
indemnity on any unit, you must notify us at least 15 days prior to the
beginning of harvest of the damaged variety, 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.
(4) 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.
12. 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.
[[Page 337]]
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insured acreage for fresh and processing
peaches, as applicable, by the respective production guarantee;
(2) Multiplying each result in section 12(b)(1) by the respective
price election;
(3) Totaling the results in section 12(b)(2);
(4) Multiplying the total production of fresh and processing peaches
to be counted, as applicable (see subsection 12(c)) by the respective
price election;
(5) Totaling the results in section 12(b)(4);
(6) Subtracting the total in section 12(b)(5) from the total in
section 12(b)(3); and
(7) Multiplying the result in section 12(b)(6) by your share.
Example: You have a 100 percent share in one basic unit with 10
acres of fresh peaches and 5 acres of processing peaches designated on
your acreage report, with a 300 bushel per acre production guarantee for
both fresh and processing peaches, and you select 100 percent of the
price election of $15.50 per bushel for fresh peaches and $6.50 per
bushel for processing peaches. You harvest 2,500 bushels of fresh
peaches and 500 bushels of processing peaches. Your indemnity will be
calculated as follows:
(A) 10 acres x 300 bushels = 3,000-bushel production guarantee of
fresh peaches;
5 acres x 300 bushels = 1,500-bushel production guarantee of
processing peaches;
(B) 3,000-bushel production guarantee x $15.50 price election =
$46,500 value of the production guarantee for fresh peaches; 1,500-
bushel production guarantee x $6.50 price election = $9,750 value of the
production guarantee for processing peaches;
(C) $46,500 value of the production guarantee for fresh peaches +
$9,750 value of the production guarantee for processing peaches =
$56,250 total value of the production guarantee;
(D) 2,500 bushels of fresh peach production to count x $15.50 price
election = $38,750 value of the fresh peach production to count; 500
bushels of processing peach production to count x $6.50 price election =
$3,250 value of the processing peach production to count;
(E) $38,750 value of the fresh peach production to count + $3,250
value of the processing peach production to count = $42,000 total value
of the production to count;
(F) $56,250 total value of the production guarantee--$42,000 total
value of the production to count = $14,250 value of loss; and
(G) $14,250 value of loss x 100 percent share = $14,250 indemnity
payment.
[End of Example]
(c) The total production to count (in bushels) 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) From which production is sold by direct marketing if you fail to
meet the requirements contained in section 11.
(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 peach production that would be marketable if
harvested;
(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 which
case we will use the harvested production. If you do not continue to
adequately care for the crop, our appraisal made prior to deferring the
claim will be used to determine the production to count; and
(v) Any appraised production on insured acreage will be considered
production to count unless such production is exceeded by the actual
harvested production.
(2) All harvested marketable peach production from the insurable
acreage.
(3) Mature marketable peach production may be reduced as a result of
a loss in quality due to an insured cause of loss. The amount of
production to count for such peaches will be determined as follows:
(i) For fresh peaches by:
(A) Dividing the value of the damaged peaches minus the post
production cost specified in the Special Provisions, by the fresh peach
price election; and
(B) Multiplying the result of section 12(c)(3)(i)(A) (not to exceed
1.00) by the number of bushels of the damaged fresh peaches.
(ii) For processing peaches by:
(A) Dividing the value of the damaged peaches minus the post
production cost specified in the Special Provisions, by the processing
peach price election; and
(B) Multiplying the result of section 12(c)(3)(ii)(A) (not to exceed
1.00) by the number of bushels of the damaged processing peaches.
(4) Peaches that cannot be marketed due to insurable causes will not
be considered production to count.
[[Page 338]]
13. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 39923, July 25, 1997, as amended at 62 FR 65176, Dec. 10, 1997;
65 FR 47839, Aug. 4, 2000; 77 FR 52592, Aug. 31, 2012; 87 FR 38897, June
30, 2022]
Sec. 457.154 Processing sweet corn crop insurance provisions.
The Processing Sweet Corn Crop Insurance Provisions for the 2023 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:
Processing Sweet Corn Crop Provisions
1. Definitions
Base contract price. The price stipulated on the processor contract
without regard to discounts or incentives that may apply.
Bypassed acreage. Land on which production is ready for harvest but
the processor elects not to accept such production so it is not
harvested.
Good farming practices. In addition to the definition contained in
the Basic Provisions, cultural practices required by the processor
contract.
Harvest. The removal of the ears from the stalks for the purpose of
delivery to the processor.
Planted acreage. In addition to the definition contained in the
Basic Provisions, sweet corn must initially be placed in rows far enough
apart to permit mechanical cultivation. 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 addition to the definition in the Basic
Provisions, it will not be considered practical to replant unless the
replanted acreage can produce at least 75 percent of the approved yield,
and the processor agrees in writing that it will accept the production
from the replanted acreage.
Price election. In lieu of the definition of price election in the
Basic Provisions, the price election will be the base contract price
stated in your processor contract.
Processor. Any business enterprise regularly engaged in canning or
freezing processing sweet corn for human consumption, that possesses all
licenses and permits for processing sweet corn 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
contracted processing sweet corn within a reasonable amount of time
after harvest.
Processor contract. (1) A written contract between the producer and
a processor, containing at a minimum:
(i) The producer's commitment to plant and grow sweet corn, and to
deliver the sweet corn production to the processor;
(ii) The processor's commitment to purchase all the production
stated in the processor contract; and
(iii) A base contract price.
(2) Multiple contracts with the same processor that specify amounts
of production will be considered as a single processor contract, unless
the contracts are for different types. Your base contract price will be
the weighted average of all applicable base contract prices.
Ton. Two thousand (2,000) pounds avoirdupois.
Unhusked ear weight. Weight of the seed-bearing spike of sweet corn
including the membranous or green outer envelope.
Usable tons. The quantity of sweet corn for which the producer is
compensated or should have been compensated by the processor.
2. Unit Division
(a) For processor contracts that stipulate the amount of production
to be delivered:
(1) In lieu of the definition contained in the Basic Provisions, a
basic unit will consist of all acreage planted to the insured crop in
the county that will be used to fulfill contracts with each processor;
(i) There will be no more than one basic unit for all production
contracted with each processor contract;
(ii) In accordance with section 12, all production from any basic
unit in excess of the amount under contract will be included as
production to count if such production is applied to any other basic
unit for which the contracted amount has not been fulfilled; and
(2) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm number and by irrigated and
non-irrigated practices are not applicable.
(b) For any processor contract that stipulates the number of acres
to be planted, the provisions contained in section 34 of the Basic
Provisions will apply.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to section 3 of the Basic Provisions:
(a) You may select only one price election percentage for all the
processing sweet corn
[[Page 339]]
in the county insured under this policy. The percentage of the maximum
price election you choose for one type will be applicable to all other
types insured under this policy.
(b) The insurance guarantee per acre is expressed as tons of
unhusked ear weight. Any other measured production will be converted to
an unhusked ear weight equivalent.
(c) The appraised production from bypassed acreage that could have
been accepted by the processor will be included when determining your
approved yield.
(d) Acreage that is bypassed because it was damaged by an insurable
cause of loss will be considered to have a zero yield when determining
your approved yield.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage
In addition to section 6 of the Basic Provisions, you must provide a
copy of all processor contracts to us on or before the acreage reporting
date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the processing sweet corn in the county for which a
premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That is grown under, and in accordance with, the requirements of
a processor contract executed on or before the acreage reporting date
and not excluded from the processor contract at any time during the crop
year; and
(3) That is not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acreage on which
the sweet corn is grown, you are at risk of loss, and the processor
contract provides for delivery of sweet corn under specified conditions
and at a stipulated base contract price.
(c) A commercial sweet corn producer who is also a processor may
establish an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor must execute and adopt a resolution that
contains the same terms as an acceptable processor contract. Such
resolution will be considered a processor contract under this policy;
and
(3) Our inspection reveals that the processing facilities comply
with the definition of a processor contained in these Crop Provisions.
8. Insurable Acreage
In addition to section 9 of the Basic Provisions:
(a) Any acreage of the insured crop that is damaged before the final
planting date, to the extent that the majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant; and
(b) We will not insure any acreage that does not meet the rotation
requirements, if applicable, contained in the Special Provisions.
9. Insurance Period
In lieu of section 11 of the Basic Provisions, regarding the end of
the insurance period, insurance ceases at the earlier of:
(a) The date the sweet corn:
(1) Was destroyed;
(2) Should have been harvested but was not harvested;
(3) Was abandoned; or
(4) Was harvested;
(b) The date you harvest sufficient production to fulfill your
processor contract if the processor contract stipulates a specific
amount of production to be delivered;
(c) Final adjustment of a loss; or
(d) The end of insurance date specified in the Special Provisions or
otherwise allowed by written agreement.
10. Causes of Loss
In accordance with section 12 of the Basic Provisions:
(a) Insurance is provided only against the following causes of loss
that occur during the insurance period:
(1) Adverse weather conditions, including:
(i) Excessive moisture that prevents harvesting equipment from
entering the field or that prevents the timely operation of harvesting
equipment; and
(ii) Abnormally hot or cold temperatures that cause an unexpected
number of acres over a large producing area to be ready for harvest at
the same time, affecting the timely harvest of a large number of such
acres or the processing of such production is beyond the capacity of the
processor, either of which causes the acreage to be bypassed.
(2) Fire;
[[Page 340]]
(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 or as otherwise limited by the
Special Provisions;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if due to a cause of
loss listed in section 10(a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure any loss of production due to:
(1) Bypassed acreage because of:
(i) The breakdown or non-operation of equipment or facilities; or
(ii) The availability of a crop insurance payment. We may deny any
indemnity immediately in such circumstance or, if an indemnity has been
paid, require you to repay it to us with interest at any time acreage
was bypassed due to the availability of a crop insurance payment; or
(2) Your failure to follow the requirements contained in the
processor contract.
11. Duties in the Event of Damage or Loss
In addition to section 14 of the Basic Provisions, you must give us
notice:
(a) Not later than 48 hours after:
(1) Total destruction of the sweet corn on the unit; or
(2) Discontinuance of harvest on a unit on which unharvested
production remains.
(b) Within 3 days after the date harvest should have started on any
acreage that will not be harvested unless we have previously released
the acreage. You must also provide acceptable documentation of the
reason the acreage was bypassed. Failure to provide such documentation
will result in our determination that the acreage was bypassed due to an
uninsured cause of loss. If the crop will not be harvested and you wish
to destroy the crop, 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 each unit. The
samples must not be destroyed until the earlier of our inspection or 15
days after notice is given to us; and
(c) At least 15 days prior to the beginning of harvest if you intend
to claim an indemnity on any unit, or immediately if damage is
discovered during the 15 day period or during harvest, so that we may
inspect any damaged production. If you fail to notify us and such
failure results in our inability to inspect the damaged production, we
will consider all such production to be undamaged and include it as
production to count. You are not required to delay harvest.
12. 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) Multiplying the insured acreage by its respective production
guarantee, by type if applicable;
(2) Multiplying each result of section 12(b)(1) by the respective
price election, by type if applicable;
(3) Totaling the results of section 12(b)(2) if there are more than
one type;
(4) Multiplying the total production to count (see section 12(c)),
for each type if applicable, by its respective price election;
(5) Totaling the results of section 12(b)(4) if there are more than
one type;
(6) Subtracting the results of section 12(b)(4) from the results of
section 12(b)(2) if there is only one type or subtracting the results of
section 12(b)(5) from the result of section 12(b)(3) if there are more
than one type; and
(7) Multiplying the result of section 12(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of type A processing sweet
corn in the unit, with a guarantee of 6.0 tons per acre and a price
election of $100.00 per ton. You are only able to harvest 200 tons. Your
indemnity would be calculated as follows:
(1) 100 acres x 6.0 tons = 600 tons guarantee;
(2) 600 tons x $100.00 price election = $60,000.00 value of
guarantee;
(3) Not applicable;
(4) 200 tons x $100.00 price election = $20,000.00 value of
production to count;
(5) Not applicable;
(6) $60,000.00-$20,000.00 = $40,000.00 loss; and
(7) $40,000.00 x 100 percent = $40,000.00 indemnity payment.
You also have a 100 percent share in 100 acres of type B processing
sweet corn in the same unit, with a guarantee of 60 tons per acre and a
price election of $90.00 per ton. You are only able to harvest 350 tons.
Your total indemnity for both types A and B would be calculated as
follows:
(1) 100 acres x 6.0 tons = 600 tons guarantee for type A, and 100
acres x 6.0 tons = 600 tons guarantee for type B;
(2) 600 tons x $100.00 price election = $60,000.00 value of
guarantee for type A, and 600 tons x $90.00 price election = $54,000.00
value of guarantee for type B;
(3) $60,000.00 + $54,000.00 = $114,000.00 total value of guarantee;
[[Page 341]]
(4) 200 tons x $100.00 price election = $20,000.00 value of
production to count for type A, and 350 tons x $90.00 price election =
$31,500.00 value of production to count for type B;
(5) $20,000.00 + $31,500.00 = $51,500.00 total value of production
to count;
(6) $114,000.00-$51,500.00 = $62,500.00 loss; and
(7) $62,500.00 loss x 100 percent = $62,500.00 indemnity payment.
(c) The total production to count, specified in tons of unhusked ear
weight, 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) That is put to another use without our consent;
(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) Production on acreage that is bypassed unless the acreage was
bypassed due to an insured cause of loss which resulted in production
which would not be acceptable under the terms of the processor contract.
(iv) 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 when 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 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.
(2) All harvested processing sweet corn production from the
insurable acreage. The amount of such production will be:
(i) The usable tons of processing sweet corn shown on the processor
settlement sheet, if available; or
(ii) Determined by dividing the dollar amount paid, payable, or
which should have been paid under the terms of the processor contract
for the quantity of the sweet corn delivered to the processor by the
base contract price per ton; and
(3) All harvested processing sweet corn production from any other
insurable units that have been used to fulfill your processor contract
for this unit.
The total production to count will be expressed as an unhusked ear
weight. Any other measure of production will be converted to an unhusked
ear weight equivalent.
13. Late Planting
A late planting period is not applicable to processing sweet corn
unless allowed by the Special Provisions and you provide written
approval from the processor by the acreage reporting date that it will
accept the production from the late planted acres when it is expected to
be ready for harvest.
14. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 65342, Dec. 12, 1997, as amended at 76 FR 4804, Jan. 27, 2011; 78
FR 55173, Sept. 10, 2013; 81 FR 84400, Nov. 23, 2016; 87 FR 72363, Nov.
25, 2022]
Sec. 457.155 Processing bean crop insurance provisions.
The Processing Bean Crop Insurance Provisions for the 2017 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:
Processing Bean Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
[[Page 342]]
1. Definitions
Base contract price. The price stipulated in the processor contract
for the grade factor or sieve size that is designated in the Special
Provisions, if applicable, without regard to discounts or incentives
that may apply.
Broker. A business enterprise that has all the licenses and permits
required by the state in which it operates, and has a long term
agreement in writing with a processor to purchase and deliver processing
beans.
Bypassed acreage. Land on which production is ready for harvest but
the processor elects not to accept such production so it is not
harvested.
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 required by the bean processor contract with the
processing company, and recognized by the National Institute of Food and
Agriculture as compatible with agronomic and weather conditions in the
county.
Harvest. The mechanical picking of bean pods from the vines.
Planted acreage. In addition to the definition contained in the
Basic Provisions, beans must initially be placed in rows far enough
apart to permit mechanical 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.
Practical to replant. In lieu of the definition of ``Practical to
replant'' contained in section 1 of the Basic Provisions, 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 unless
the replanted acreage can produce at least 75 percent of the approved
yield, and the processor agrees in writing that it will accept the
production from the replanted acreage.
Processing beans. Lima, snap, or other bean types identified in the
Special Provisions that are grown under a processor contract to be
canned or frozen and sold for human consumption.
Processor. Any business enterprise regularly engaged in canning or
freezing processing beans for human consumption, that possesses all
licenses and permits for processing beans 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 beans within a reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, or between the producer and a broker, containing at a
minimum:
(a) The producer's commitment to plant and grow processing beans,
and to deliver the bean production to the processor or broker;
(b) The processor's, or broker's, commitment to purchase all the
production stated in the processor contract; and
(c) A base contract price.
Multiple contracts with the same processor that specify amounts of
production will be considered as a single processor contract unless the
contracts are for different types of processing beans.
Ton. Two thousand (2,000) pounds avoirdupois.
Type. A category of processing beans identified as a type in the
Special Provisions.
2. Unit Division
(a) For any processor contract that stipulates the amount of
production to be delivered:
(1) In lieu of the definition contained in the Basic Provisions, a
basic unit will consist of all acreage planted to the insured crop in
the county that will be used to fulfill contracts with each processor;
(i) There will be no more than one basic unit for all production
contracted with each processor contract;
(ii) In accordance with section 12, all production from any basic
unit in excess of the amount under contract will be included as
production to count if such production is applied to any other basic
unit for which the contracted amount has not been fulfilled; and
(2) Provisions in the Basic Provisions that allow optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated practices are not applicable. Optional units will not
be established.
(b) For any processor contract that stipulates the number of acres
to be planted, in addition to or instead of, establishing optional units
by section, section equivalent or FSA farm serial number, or irrigated
and non-irrigated acreage, optional units may be established by type if
acreage of one type does not continue into acreage of another type in
the same rows or planting pattern.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election for all the processing
beans in the county insured under this policy unless the Special
Provisions provide different price elections
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by type. The percentage of the maximum price elections you choose for
one type will be applicable to all other types insured under this
policy.
(b) The appraised production from bypassed acreage that could have
been accepted by the processor will be included when determining your
approved yield.
(c) Acreage that is bypassed because it was damaged by an insurable
cause of loss will be considered to have a zero yield when determining
your approved yield.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
you must provide a copy of all processor contracts to us on or before
the acreage reporting date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the processing beans in the county for which a
premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are grown under, and in accordance with, the requirements
of a processor contract executed on or before the acreage reporting date
and are not excluded from the processor contract at any time during the
crop year; and
(3) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acreage on which
the processing beans are grown, you are at risk of loss, and the
processor contract provides for delivery of the processing beans under
specified conditions and at a stipulated base contract price.
(c) A commercial processing bean producer who is also a processor or
broker may establish an insurable interest if the following requirements
are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor or the broker must execute and adopt a
resolution that contains the same terms as an acceptable processor
contract. Such resolution will be considered a processor contract under
this policy; and
(3) Our inspection reveals that the processing facilities comply
with the definition of a processor contained in these Crop Provisions.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) Any acreage of the insured crop that is damaged before the final
planting date, to the extent that the majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant; and
(b) We will not insure acreage that does not meet any rotation
requirements, if applicable, contained in the Special Provisions.
9. Insurance Period
In lieu of the provisions contained in section 11 of the Basic
Provisions, regarding the end of the insurance period, insurance ceases
at the earlier of:
(a) The date the processing beans:
(1) Were destroyed;
(2) Should have been harvested but were not harvested;
(3) Were abandoned; or
(4) Were harvested;
(b) The date you harvest sufficient production to fulfill your
processor contract if the processor contract stipulates a specific
amount of production to be delivered;
(c) Final adjustment of a loss; or
(d) The date shown below for the end of the insurance period in the
calendar year in which the processing beans would normally be harvested,
unless otherwise agreed to in writing, as follows:
(1) October 30 for all processing beans in the state of Arkansas;
(2) October 15 for all processing beans in the states of Delaware,
Maryland, and New Jersey;
(3) October 5 for all processing beans in the states of Idaho,
Oregon, and Washington;
(4) September 30 for snap beans in the state of New York;
(5) September 20 for snap beans in all other states; or
(6) October 5 for lima beans in all other states.
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions:
(a) Insurance is provided only against the following causes of loss
that occur during the insurance period:
(1) Adverse weather conditions, including:
(i) Excessive moisture that prevents the harvesting equipment from
entering the field or that prevents the timely operation of harvesting
equipment; and
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(ii) Abnormally hot or cold temperatures that cause an unexpected
number of acres over a large producing area to be ready for harvest at
the same time, affecting the timely harvest of a large number of such
acres or the processing of such production is beyond the capacity of the
processor, either of which causes the acreage to be bypassed.
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease on acreage not planted to processing beans the
previous crop year. (In certain instances, contained in the Special
Provisions or in a written agreement, acreage planted to processing
beans the previous year may be covered. Damage due to insufficient or
improper application of disease control measures is not covered);
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if due to a cause of
loss contained in section 10 (a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure any loss of production due to:
(1) Bypassed acreage because of:
(i) The breakdown or non-operation of equipment or facilities; or
(ii) The availability of a crop insurance payment. We may deny any
indemnity immediately in such circumstance or, if an indemnity has been
paid, require you to repay it to us with interest at any time acreage
was bypassed due to the availability of a crop insurance payment; or
(2) Your failure to follow the requirements contained in the
processor contract.
11. Duties in the Event of Damage or Loss
In addition to the notice required by section 14 of the Basic
Provisions, you must give us notice:
(a) Not later than 48 hours after:
(1) Total destruction of the processing beans on the unit; or
(2) Discontinuance of harvest on a unit on which unharvested
production remains.
(b) Within 3 days after the date harvest should have started on any
acreage that will not be harvested unless we have previously released
the acreage. You must also provide acceptable documentation of the
reason the acreage was bypassed. Failure to provide such documentation
will result in our determination that the acreage was bypassed due to an
uninsured cause of loss. If the crop will not be harvested and you wish
to destroy the crop, 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 each unit. The
samples must not be destroyed until the earlier of our inspection or 15
days after notice is given to us; and
(c) At least 15 days prior to the beginning of harvest if you intend
to claim an indemnity on any unit, or immediately if damage is
discovered during the 15 day period or during harvest. If you fail to
notify us and such failure results in our inability to inspect the
damaged production, we will consider all such production to be undamaged
and include it as production to count. You are not required to delay
harvest.
12. 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) Multiplying the insured acreage by its respective production
guarantee, by type if applicable;
(2) Multiplying each result of section 12(b)(1) by the respective
price election, by type if applicable;
(3) Totaling the results of section 12(b)(2) if there are more than
one type;
(4) Multiplying the total production to count (see section 12(c)),
for each type if applicable, by its respective price election;
(5) Totaling the results of section 12(b)(4) if there are more than
one type;
(6) Subtracting the results of section 12(b)(4) from the results of
section 12(b)(2) if there is only one type or subtracting the results of
section 12(b)(5) from the result of section 12(b)(3) if there are more
than one type; and
(7) Multiplying the result of section 12(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of snap type processing
beans in the unit, with a guarantee of 3.0 tons per acre and a price
election of $110.00 per ton. You are only able to harvest 200 tons. Your
indemnity would be calculated as follows:
(1) 100 acres x 3.0 tons = 300 tons guarantee;
(2) 300 tons x $110.00 price election = $33,000.00 value of
guarantee;
(3) 200 tons x $110.00 price election = $22,000.00 value of
production to count;
(4) $33,000.00 - $22,000.00 = $11,000.00 loss; and
(5) $11,000.00 x 100 percent = $11,000.00 indemnity payment.
You also have a 100 percent share in 100 acres of lima type
processing beans in the same unit, with a guarantee of 1.0 ton per
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acre and a price election of $225.00 per ton. You are only able to
harvest 75 tons. Your total indemnity for both snap and lima types
processing beans would be calculated as follows:
(1) 100 acres x 3.0 tons = 300 tons guarantee for the snap type, and
100 acres x 1.0 ton = 100 tons guarantee for the lima type;
(2) 300 tons x $110.00 price election = $33,000.00 value of
guarantee for the snap type, and 100 tons x $225.00 price election =
$22,500.00 value of guarantee for the lima type;
(3) $33,000.00 + $22,500.00 = $55,500.00 total value of guarantee;
(4) 200 tons x $110.00 price election = $22,000.00 value of
production to count for the snap type, and 75 tons x $225.00 price
election = $16,875.00 value of production to count for the lima type;
(5) $22,000.00 + $16,875.00 = $38,875.00 total value of production
to count;
(6) $55,500.00 - $38,875.00 = $16,625.00 loss; and
(7) $16,625.00 loss x 100 percent = $16,625.00 indemnity payment.
(c) The total production to count, specified in 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) That is put to another use without our consent;
(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) Production on acreage that is bypassed unless the acreage was
bypassed due to an insured cause of loss which resulted in production
which would not be acceptable under the terms of the processor contract.
(iv) 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 when 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 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.
(2) All harvested processing bean production from the insurable
acreage. The amount of such production will be:
(i) The usable tons of processing beans shown on the processor
settlement sheet, if available; or
(ii) Determined by dividing the dollar amount paid, payable, or
which should have been paid under the terms of the processor contract
for the quality and quantity of beans to be delivered to the processor
by the base contract price per ton; and
(3) All harvested processing bean production from any other
insurable units that have been used to fulfill your processor contract
for this unit.
13. Late Planting
A late planting period is not applicable to processing beans unless
allowed by the Special Provisions and you provide written approval from
the processor by the acreage reporting date that it will accept the
production from the late planted acres when it is expected to be ready
for harvest.
14. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[62 FR 58625, Oct. 30, 1997, as amended at 62 FR 65176, Dec. 10, 1997;
76 FR 4805, Jan. 27, 2011; 81 FR 84400, Nov. 23, 2016]
Sec. Sec. 457.156-457.157 [Reserved]
Sec. 457.158 Apple crop insurance provisions.
The apple crop insurance provisions for the 2011 and succeeding crop
years are as follows:
FCIC Policies
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United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured policies
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Apple Crop Insurance Provisions
1. Definitions
Apple production. All fresh apple production and processing apple
production from insurable acreage.
Area A. A geographic area that includes Montana, Wyoming, Utah, New
Mexico and all states west thereof.
Area B. A geographic area that includes all states not included in
Area A, except Colorado.
Area C. Colorado.
Bin. A container that contains a minimum of 875 pounds of apples or
another quantity as designated in the Special Provisions.
Box. A container that contains 35 pounds of apples or another
quantity as designated in the Special Provisions.
Bushel. In all states except Colorado, 42 pounds of apples. In
Colorado, 40 pounds of apples.
Damaged apple production.
(1) With respect to losses calculated under section 12 only, the
percentage of fresh or processing apple production that fails to grade
U.S. No. 1 Processing or better in accordance with the grade standards
due to an insurable cause of loss; or
(2) With respect to losses calculated under section 14, the
percentage of fresh apple production that fails to grade U.S. Fancy or
better in accordance with the grade standards due to an insurable cause
of loss.
Direct marketing. Sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper, buyer, or broker. Examples of
direct marketing include selling through an on-farm or roadside stand,
or a farmer's market, and permitting the general public to enter the
field for the purpose of picking all or a portion of the crop.
Fresh apple production. (1) Apples:
(i) That are sold, or could be sold, for human consumption without
undergoing any change in the basic form, such as peeling, juicing,
crushing, etc.;
(ii) From acreage that is designated as fresh apples on the acreage
report;
(iii) That follow the recommended cultural practices generally in
use for fresh apple acreage in the area in a manner generally recognized
by agricultural experts; and
(iv) From acreage that you certify, and, if requested by us provide
verifiable records to support, that at least 50 percent of the
production from acreage reported as fresh apple acreage from each unit,
was sold as fresh apples in one or more of the four most recent crop
years.
(2) Acreage with production not meeting all the requirements above
must be designated on the acreage report as processing apple production.
Grade standards. The United States Standards for Grades of Apples,
the United States Standards for Grades of Apples for Processing, or such
other standards contained in the Special Provisions.
Harvest. The picking of mature apples from the trees or collecting
of mature apples from the ground. Apples collected from the ground that
cannot be sold for human consumption will not be considered harvested.
Marketable. Apple production that is not damaged apple production.
Mature. Apples defined as ``mature'' under the applicable grade
standards.
Pounds. Sixteen (16) ounces avoirdupois.
Processing apple production. Apples from insurable acreage failing
to meet the insurability requirements for fresh apple production that
are:
(1) Sold, or could be sold for the purpose of undergoing a change to
the basic structure such as peeling, juicing, crushing, etc.; or
(2) From acreage designated as processing apples on the acreage
report.
Production guarantee (per acre). The quantity of apples in boxes or
bushels determined by multiplying the approved APH yield per acre by the
coverage level percentage you elect. If the production of apples has
been measured in bins, the amount must be converted to boxes or bushels.
Russeting. A defect on the surface of the apple as described in the
grade standards.
Sunburn. A defect as described in the grade standards.
Type. A category of apples as designated in the Special Provisions.
2. Unit Division
In addition to the requirements of section 34(b) of the Basic
Provisions, optional units may be established if each optional unit is:
(a) Located on non-contiguous land; or
(b) By type as specified in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one coverage level for all fresh apple
acreage and only one coverage level for all processing apple acreage.
For example, if you choose the 55 percent coverage level for all your
fresh apple acreage (i.e., fresh, varietal group types), you may choose
the 75 percent coverage level for all your processing apple acreage.
However,
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if you elect the Catastrophic Risk Protection (CAT) level of insurance
for fresh apple acreage or processing apple acreage, the CAT level of
coverage will be applicable to all insured apple acreage in the county.
If you only have fresh apple acreage designated on your acreage report
and processing apple acreage is added after the sales closing date, we
will assign a coverage level equal to the coverage level you selected
for your fresh apple acreage. If you only have processing apple acreage
designated on your acreage report and fresh apple acreage is added after
the sales closing date, we will assign a coverage level equal to the
coverage level you selected for your processing apple acreage.
(b) You may select only one price election for all the apples in the
county insured under this policy unless the Special Provisions provide
different price elections by type, in which case you may select one
price election for each apple type designated in the Special Provisions.
The price elections you choose for each type must have the same
percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for one type, you must also choose 100 percent of the maximum
price election for all other types.
(c) You must report, by the production reporting date designated in
section 3 of the Basic Provisions, by type, if applicable:
(1) Any event or action that could impact the yield potential of the
insured crop including interplanted perennial crop, removal of trees,
any damage, change in practices, or any other circumstance that may
reduce the expected 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 has changed:
(i) The age and type of the interplanted crop, if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to establish
your approved yield.
(d) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
situation listed in sections 3(c)(1) through (c)(4). If the situation
occurred:
(1) Before the beginning of the insurance period, the yield used to
establish your production guarantee will be reduced for the current crop
year regardless of whether the situation was due to an insured or
uninsured cause of loss. If you fail to notify us of any circumstance
that may reduce your yields from previous levels, we will reduce the
yield used to establish your production guarantee at any time we become
aware of the circumstance;
(2) Or may occur after the beginning of the insurance period and you
notify us by the production reporting date, the yield used to establish
your production guarantee will be reduced for the current crop year only
if the potential reduction in the yield used to establish your
production guarantee is due to an uninsured cause of loss; or
(3) Or may occur after the beginning of the insurance period and you
fail to notify us by the production reporting date, production lost due
to uninsured causes equal to the amount of the reduction in the yield
used to establish your production guarantee will be applied in
determining any indemnity (see section 12(c)(1)(ii)). We will reduce the
yield used to establish your production guarantee for the subsequent
crop year.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is October 31 preceding the cancellation date for California
and August 31 preceding the cancellation date for all other states.
5. Cancellation and Termination Dates
(a) In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31 in California and
November 20 in all other states.
(b) If, in accordance with the terms of the policy, your apple
policy is canceled or terminated by us for any crop year after insurance
attached for that crop year, but on or before the cancellation and
termination dates, whichever is later, insurance will be considered not
to have attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
(c) We may not cancel your policy when an insured cause of loss has
occurred after insurance attached, but prior to the cancellation date.
However, your policy can be terminated if a cause for termination
contained in sections 2 or 27 of the Basic Provisions exists.
6. Report of Acreage.
In addition to the requirements contained in section 6 of the Basic
Provisions, you must report and designate all acreage by type by the
acreage reporting date. Any acreage not qualifying for fresh apple
production is not eligible for the Optional Coverage for Fresh Fruit
Quality Adjustment option contained in section 14 of these Crop
Provisions. If you designate fresh apple acreage on the acreage report,
you are certifying at least 50 percent of the production from acreage
reported as fresh apple acreage, by unit, was sold as fresh apples in
one or more
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of the four most recent crop years in accordance with the definition of
``fresh apple production'' and that you have the records to support such
production.
7. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all apples in the county for which a premium rate is
provided by the actuarial table:
(a) In which you have a share;
(b) That are grown on tree varieties that are adapted to the area
and have, in at least one of the previous four years, produced:
(1) 10 bins of apples per acre in Area A;
(2) 150 bushels of apples per acre in Area B; or
(3) 200 bushels of apples per acre in Area C;
(c) That are grown in an orchard that, if inspected, is considered
acceptable by us; and
(d) That are grown for:
(1) Fresh apple production; or
(2) Processing apple production.
8. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance from attaching to a crop planted with another crop,
apples 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.
9. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) For the year of application, coverage begins on February 1 of
the calendar year the insured crop normally blooms in California and
November 21 of the calendar year prior to the calendar year the insured
crop normally blooms in all other States. Notwithstanding the previous
sentence, if your application is received by us after January 12 but
prior to February 1 in California, or after November 1 but prior to
November 21 in all other States, insurance will attach on the 20th day
after your properly completed application is received in our local
office, unless we inspect the acreage during the 20-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 apple acreage.
(2) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for the prior crop year. Policy
cancellation that results solely from transferring an existing policy to
a different insurance provider for a subsequent crop year will not be
considered a break in continuous coverage.
(3) The calendar date for the end of the insurance period for each
crop year is November 5, or such other date as specified in the Special
Provisions.
(4) Notwithstanding the provisions in this section, coverage will
not be considered to have begun for a crop year if the policy is
canceled or terminated in accordance with section 5(b).
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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. There will be
no coverage of any insurable interest acquired after the acreage
reporting date.
(2) If you relinquish your insurable share on any insurable acreage
of apples on or before the acreage reporting date for the crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due 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.
(3) If you relinquish your insurable share on any insurable acreage
of apples after the acreage reporting date for the crop year, insurance
coverage will be provided for any loss due to an insurable cause of loss
that occurred prior to the date that you relinquished your insurable
share and the whole premium will be due for such acreage for that crop
year.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period and result in damaged apple
production:
(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) 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) Earthquake;
(6) Volcanic eruption;
[[Page 349]]
(7) Failure of the irrigation water supply, if caused by an insured
peril that occurs during the insurance period;
(8) Wildlife; and
(9) All other natural causes of loss that cannot be prevented,
including, but not limited to, hail, wind, excess sun causing sunburn,
and frost and freeze causing russeting.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to your inability to market the apples 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
(a) In accordance with the requirements of section 14 of the Basic
Provisions, you must leave representative samples in accordance with our
procedures.
(b) In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(1) You must notify us at least 3 days prior to the date harvest
should have started if the crop will not be harvested.
(2) 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.
(3) If you intend to claim an indemnity on any unit, you must notify
us at least 15 days prior to the beginning of harvest, or immediately if
damage is discovered during harvest. 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.
12. 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 the units.
(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, by type as applicable;
(2) Multiplying each result in section 12(b)(1) by the respective
price election and by the percent of price election;
(3) Totaling the results in section 12(b)(2) if there are more than
one type;
(4) Multiplying the total production to count (see section 12(c)),
for each type as applicable, by the respective price election and by the
percent of price election;
(5) Totaling the results in section 12(b)(4), if there are more than
one type;
(6) Subtracting the total in section 12(b)(5) from the total in
section 12(b)(3); and
(7) Multiplying the result in section 12(b)(6) by your share.
Basic Coverage Example:
You have a 100 percent share in one basic unit with 10 acres of
fresh apples and 5 acres of processing apples designated on your acreage
report, with a 600 bushel per acre production guarantee for both fresh
and processing apples, and you select 100 percent of the price election
on a price election of $9.10 per bushel for fresh apples and $2.50 per
bushel for processing apples. You harvest 5,000 bushels of fresh apples
and 1,000 bushels of processing apples, all grading U.S. No. 1
Processing or better. Your indemnity will be calculated as follows:
A. 10 acres x 600 bushels = 6,000-bushel production guarantee of
fresh apples;
5 acres x 600 bushels = 3,000-bushel production guarantee of
processing apples;
B. 6,000-bushel production guarantee x $9.10 price election x 100
percent of price election = $54,600 value of production guarantee for
fresh apples;
3,000-bushel production guarantee x $2.50 price election x 100
percent of price election = $7,500 value of production guarantee for
processing apples;
C. $54,600 value of production guarantee for fresh apples + $7,500
value of production guarantee for processing apples = $62,100.00 total
value of the production guarantee;
D. 5,000 bushels of fresh apple production to count x $9.10 price
election x 100 percent of price election = $45,500 value of fresh apple
production to count;
1,000 bushels of processing apple production to count x $2.50 price
election x 100 percent of price election = $2,500 value of processing
apple production to count;
[[Page 350]]
E. $45,500 value of fresh apple production to count + $2,500 value
of processing apple production to count = $48,000 total value of
production to count;
F. $62,100 total value of the production guarantee - $48,000 total
value of production to count = $14,100.00 value of loss; and
G. $14,100 value of loss x 100 percent share = $14,100 indemnity
payment.
[End of Example]
(c) The total production to count (in boxes or bushels) 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 11;
(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 apple production that would be marketable if
harvested; and
(iv) Potential marketable apple 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 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 marketable production from the insurable acreage.
(d) Any apple production not graded or appraised prior to the
earlier of the time apples are placed in storage or the date the apples
are delivered to a packer, processor, or other handler will not be
considered damaged apple production and will be considered production to
count.
13. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
14. Optional Coverage for Fresh Fruit Quality Adjustment
(a) In the event of a conflict between the Apple Crop Insurance
Provisions and this option, this option will control. Insureds who
select this option cannot receive less than the indemnity due under
section 12.
(b) In return for payment of the additional premium designated in
the actuarial documents, this option provides for quality adjustment of
fresh apple production as follows:
(1) To be eligible for this option, you must have elected to insure
your apples at the additional coverage level. If you elect Catastrophic
Risk Protection (CAT) after this option is effective, it will be
considered as notice of cancellation of this option by you.
(2) You must elect this option on or before the sales closing date
for the initial crop year for which you wish to insure your apples under
this option. This option will continue in effect until canceled by
either you or us for any succeeding crop year by written notice to the
other party on or before the cancellation date.
(3) This option will apply to all your apple acreage designated in
your acreage report as grown for fresh apple production and that meets
the insurability requirements specified in the Apple Crop Insurance
Provisions, except any acreage specifically excluded by the actuarial
documents. Any acreage designated in your acreage report as grown for
processing apple production is not eligible for coverage under this
option.
(4) In lieu of sections 12(c)(1)(iii), (iv) and (2), the production
to count will include all appraised and harvested production from all of
the fresh apple acreage in the unit, adjusted in accordance with this
option.
(5) If appraised or harvested fresh apple production for the block
or unit, as applicable, is damaged to the extent that more than 20
percent of the apple production does not grade U.S. Fancy or better the
following adjustments to the production to count will apply:
(i) Fresh apple production to count with 21 percent through 40
percent damaged apple production will be reduced 2 percent for each full
one percent in excess of 20 percent.
(ii) Fresh apple production to count with 41 percent through 50
percent damaged apple production will be reduced 40 percent plus an
additional 3 percent for each full one percent in excess of 40 percent.
(iii) Fresh apple production to count with 51 percent through 64
percent damaged apple production will be reduced 70 percent plus an
additional 2 percent for each full one percent in excess of 50 percent.
(iv) Fresh apple production to count with 65 percent or more damaged
apple production will not be considered production to count.
(v) Notwithstanding sections 14(b)(5)(i) through (iv), if you sell
any of your fresh apple production as U.S. Fancy or better, all such
sold production will be included as production to count under this
option.
(c) Any apple production not graded or appraised prior to the
earlier of the time apples are placed in storage or the date the apples
are delivered to a packer, processor, or other
[[Page 351]]
handler will not be considered damaged apple production and will be
considered production to count under this option.
(d) Any adjustments that reduce your production to count under this
option will not be applicable when determining production to count for
APH purposes.
Optional Coverage for Fresh Fruit Quality Adjustment Example:
You have a 100 percent share in 10 acres of fresh apples designated
on your acreage report, with a 600 bushel per acre guarantee, and you
select 100 percent of the price election on a price election of $9.10
per bushel. You harvest 5,000 bushels of apples from your designated
fresh apple acreage, but only 2,650 of those bushels grade U.S. Fancy or
better. Assuming you do not sell any of your fresh apple production as
U.S. Fancy or better, your indemnity would be calculated as follows:
A. 10 acres x 600 bushels per acre = 6,000-bushel production
guarantee of fresh apples;
B. 6,000-bushel production guarantee of fresh apples x $9.10 price
election x 100 percent of price election = $54,600 value of production
guarantee for fresh apple acreage;
C. The value of the fresh apple production to count is determined as
follows:
i. 5,000 bushels harvested - 2,650 bushels that graded U.S. Fancy or
better = 2,350 bushels of fresh apple production not grading U.S. Fancy
or better;
ii. 2,350/5,000 = 47 percent of fresh apple production not grading
U.S. Fancy or better;
iii. In accordance with section 14(b)(5)(ii): 47 percent - 40
percent = 7 percent in excess of 40 percent;
iv. 7 percent x 3 = 21 percent;
v. 40 percent + 21 percent = 61 percent;
vi. 5,000 bushels harvested x .61 (61 percent) = 3,050 bushels of
fresh apple production not grading U.S. Fancy or better;
vii. 5,000 bushels harvested - 3,050 bushels of fresh apple
production not grading U.S. Fancy or better = 1,950 bushels of adjusted
fresh apple production to count;
viii. 1,950 bushels of adjusted fresh apples production to count x
$9.10 price election x 100 percent of price election = $17,745 value of
fresh apple production to count;
D. $54,600 value of production guarantee for fresh apples - $17,745
value of fresh apple production to count = $36,855 value of loss;
E. $36,855 value of loss x 100 percent share = $36,855 indemnity
payment.
[End of Example]
[63 FR 17054, Apr. 8, 1998, as amended at 65 FR 47839, Aug. 4, 2000; 69
FR 52591, Aug. 27, 2004; 69 FR 53500, Sept. 1, 2004; 69 FR 62803, Oct.
28, 2004; 75 FR 52231, Aug. 25, 2010]
Sec. 457.159 Stonefruit crop insurance provisions.
The Stonefruit Crop Insurance Provisions for the 2023 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:
Stonefruit Crop Insurance Provisions
1. Definitions
Grade standards. The United States Standards for Grades of Peaches,
the United States Standards for Grades of Nectarines, the United States
Standards for Grades of Apricots, and the United States Standards for
Grades of Fresh Plums and Prunes, or other such standards specified in
the Special Provisions.
Graft. To unite a shoot or bud with a rootstock in accordance with
recommended practices to form a living union.
Harvest. The physical removal of mature stonefruit from the tree
either by hand or machine.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Lug. A container of fresh stonefruit of specified weight. Lugs of
varying sizes will be converted to standard lug equivalents on the basis
of the following average net pounds of packed fruit, or as specified in
the Special Provisions:
------------------------------------------------------------------------
Pounds
Crop per lug
------------------------------------------------------------------------
Fresh Apricots............................................... 24
Fresh Nectarines............................................. 25
Fresh Freestone Peaches...................................... 25
Fresh Plums.................................................. 28
------------------------------------------------------------------------
Weight for Processing Apricots, Processing Cling Peaches, and
Processing Freestone Peaches is specified in tons.
Marketable. Stonefruit production that meets or exceeds the quality
standards for U.S. No. 1 in accordance with the applicable grade
standards or other standards as specified in the Special Provisions, or
if stonefruit production fails to meet the applicable grade standards,
stonefruit production that is accepted by a packer, processor or other
handler.
[[Page 352]]
Processor. A business enterprise regularly engaged in processing
fruit for human consumption that possesses all licenses and permits for
processing fruit 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 contracted fruit within a
reasonable amount of time after harvest.
Stonefruit. Any of the following crops grown for fresh market or
processing:
(a) Fresh Apricots;
(b) Fresh Freestone Peaches;
(c) Fresh Nectarines;
(d) Fresh Plums;
(e) Processing Apricots;
(f) Processing Cling Peaches;
(g) Processing Freestone Peaches; and
(h) Other crops listed in the Special Provisions.
Ton. Two thousand (2,000) pounds avoirdupois.
Type. A category of a stonefruit crop with similar characteristics
that are grouped for insurance purposes, as listed in the Special
Provisions.
2. Unit Division
In lieu of the provisions of section 34 of the Basic Provisions that
allow optional units by section, section equivalent, or FSA farm number
and by irrigated and non-irrigated practices, optional units will only
be allowed as stated herein or by written agreement.
(a) Optional Units on Acreage Located on Non-contiguous Land:
Optional units may be established if each optional unit is located on
non-contiguous land.
(b) Optional Units by Type: Optional units may be established by
type if allowed by the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election and coverage level for
each crop grown in the county and listed in the Special Provisions that
is insured under this policy. If separate price elections are available
by type of a crop, the price elections you choose for each type must
have the same percentage relationship to the maximum price offered by us
for each type. For example, if you choose 100 percent of the maximum
price election for one type of cling peach, you must choose 100 percent
of the maximum price election for all other types of cling peaches.
(b) You must report, by the production reporting date designated in
section 3 of the Basic Provisions, by type, if applicable, for each
stonefruit crop:
(1) Any damage, removal of trees, 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 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.
(c) We will reduce the yield used to establish your production
guarantee, as necessary, based on our estimate of the effect of any
situation listed in sections 3(b)(1) through (b)(4). If the situation
occurred:
(1) Before the beginning of the insurance period, the yield used to
establish your production guarantee will be reduced for the current crop
year regardless of whether the situation was due to an insured or
uninsured cause of loss. If you fail to notify us of any circumstance
that may reduce your yields from previous levels, we will reduce the
yield used to establish your production guarantee at any time we become
aware of the circumstance;
(2) Or may occur after the beginning of the insurance period and you
notify us by the production reporting date, the yield used to establish
your production guarantee will be reduced for the current crop year only
if the potential reduction in the yield used to establish your
production guarantee is due to an uninsured cause of loss; or
(3) Or may occur after the beginning of the insurance period and you
fail to notify us by the production reporting date, production lost due
to uninsured causes equal to the amount of the reduction in yield used
to establish your production guarantee will be applied in determining
any indemnity (see section 11(c)(1)(ii)). We will reduce the yield used
to establish your production guarantee for the subsequent crop year.
(d) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election we offer
if a cause of loss that could or would reduce the yield of the insured
crop is evident prior to the time that you request the increase.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is October 31 for California and August 31 preceding the
cancellation date for all other states, or as specified in the Special
Provisions.
[[Page 353]]
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 31 for California and
November 20 for all other states, or as specified in the Special
Provisions.
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all acreage of each stonefruit crop you elect to insure,
that is grown in the county, and for which premium rates are provided in
the actuarial documents:
(a) In which you have a share;
(b) That is grown on trees that:
(1) Were commercially available when the trees were set out or have
subsequently become commercially available;
(2) Are adapted to the area;
(3) Are grown on root stock that is adapted to the area;
(4) Are in compliance with the applicable State's Tree Fruit
Agreement or related crop advisory board for the state (for each insured
crop and type), when such regulations exist;
(5) Have produced at least 200 lugs of fresh market production per
acre, or at least 2.2 tons per acre for processing crops, in at least
one of the four most recent actual production history crop years, unless
otherwise allowed by the Special Provisions;
(6) Have reached at least the fifth leaf year, including the fifth
leaf year after grafting if grafting occurs after set out, unless
otherwise allowed by the Special Provisions; and
(7) Are grown in an orchard that, if inspected, is considered
acceptable by us.
7. Insurable Acreage
In lieu of the provisions of section 9 of the Basic Provisions that
prohibit insurance attaching to a crop planted with another crop,
stonefruit interplanted with another perennial crop is insurable unless
we inspect the acreage and determine that it does not meet the
requirements for insurability contained in your policy.
8. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) Coverage begins on February 1 in California and November 21 for
all other states of each crop year, except that for the year of
application, if your application is received after January 22 but prior
to February 1 in California or after November 11 but prior to November
21 in all other states, 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) July 31 for all apricots; and
(ii) September 30 for all nectarines and peaches;
(iii) In all states except California, September 30 for all fresh
plums;
(iv) In California only, October 20 for all fresh plums; or
(v) As otherwise provided for specific counties or types in the
Special Provisions.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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 of acquisition.
(2) If you lose or relinquish your insurable share on any insurable
acreage of stonefruit on or before the acreage reporting date for the
crop year and if the acreage was insured by you the previous crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due 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.
(c) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for the prior crop year. Policy
cancellation that results solely from transferring to a different
insurance provider for a subsequent crop year will not be considered a
break in continuous coverage.
(d) If your stonefruit policy is canceled or terminated for any crop
year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates, whichever is the later, insurance will not be
considered to have attached for that crop year and no premium,
administrative fee, or indemnity will be due for such crop year.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, 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
[[Page 354]]
pruning debris has not been removed from the orchard;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption; or
(6) Failure of the irrigation water supply, if due to a cause of
loss contained in sections 9(a)(1) through (5) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, 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) Split pits regardless of cause; or
(3) Inability to market the insured crop for any reason other than
actual physical damage from an insurable cause of loss 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 of the Basic
Provisions, the following will apply:
(a) You must notify us within 3 days after the date harvest should
have started if the insured crop will not be harvested.
(b) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. 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 harvested for
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) In addition to section 14 of the Basic Provisions, if you intend
to claim an indemnity on any unit, you must give us notice at least 15
days prior to the beginning of harvest. You must not destroy the damaged
crop until after we have given you written consent to do so. If you fail
to notify us and such failure results in our inability to inspect the
damaged production, we may consider all such production to be undamaged
and include it 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 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) Multiplying the insured acreage for each type by its respective
production guarantee;
(2) Multiplying each result of section 11(b)(1) by the respective
price election for the type and by the percent of the price election;
(3) Totaling the results of section 11(b)(2) (if there is only one
type, the result of (3) will be the same as the result of (2));
(4) Multiplying the total production to count (see section 11(c)),
for each type, by the respective price election and by the percent of
the price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the result of section 11(b)(5) from the result of
section 11(b)(3) (if there is only one type, the result of (6) will be
the same as the result of (5)); and
(7) Multiplying the result of section 11(b)(6) by your share.
Scenario 1:
You select 75 percent coverage level and 100 percent of the price
election on 50.0 acres of Type A stonefruit with 100 percent share in
the unit. The approved yield is 500.0 lugs per acre and the price
election is $6.00 per lug. You harvest 5,000 lugs. Your indemnity would
be calculated as follows:
(1) 50.0 acres x 500.0 lugs x 0.75 = 18,750-lug production
guarantee;
(2) 18,750 lugs x $6.00 price election x 100 percent of the price
election = $112,500 value of production guarantee;
(4) 5,000 harvested lugs x $6.00 price election x 100 percent of the
price election = $30,000 value of production to count;
(6) $112,500 - $30,000 = $82,500 loss; and
(7) $82,500 x 1.000 share = $82,500 indemnity payment.
Scenario 2:
In addition to the above information in Scenario 1, you have an
additional 50.0 acres of Type B stonefruit with 100 percent share in the
unit. The approved yield is 300.0 lugs per acre and the price election
is $4.00 per lug. You harvest 3,000 lugs. Your indemnity would be
calculated as follows:
(1) 50.0 acres x 500.0 lugs x 0.75 Type A = 18,750-lug guarantee;
and 50.0 acres x 300.0 lugs x 0.75 Type B = 11,250-lug guarantee;
(2) 18,750 lugs x $6.00 price election x 100 percent of the price
election = $112,500 value
[[Page 355]]
of guarantee for Type A; and 11,250 lugs x $4.00 price election x 100
percent of the price election = $45,000 value of guarantee for Type B;
(3) $112,500 + $45,000 = $157,500 total value of production
guarantee;
(4) 5,000 harvested lugs Type A x $6.00 price election x 100 percent
of the price election = $30,000 value of production to count; and 3,000
harvested lugs Type B x $4.00 price election x 100 percent of the price
election = $12,000 value of production to count;
(5) $30,000 + $12,000 = $42,000 total value of production to count;
(6) $157,500 - $42,000 = $115,500 total loss; and
(7) $115,500 loss x 1.000 share = $115,500 indemnity payment.
(c) The total production to count (in lugs or tons) from all
insurable acres on a 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 that would be marketable if harvested;
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 insured crop. We
will then make another appraisal when you notify us if any further
damage or that harvest is general in the area unless you harvested the
crop. If you harvest the crop 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.
(3) The quantity of harvested production will be reduced if the
following conditions apply:
(i) The value of the damaged production is less than 75 percent of
the marketable value of undamaged production due to an insured cause of
loss; and
(ii) For stonefruit insured as fresh fruit only, the stonefruit
either is packed and sold as fresh fruit and meets only the utility
grade requirements of the applicable grade standards, or fails to meet
the applicable grade standards but is or could be sold for any use other
than fresh packed stonefruit.
(4) Harvested fresh or processing stonefruit production that is
eligible for quality adjustment as specified in section 11(c)(3) will be
reduced as follows:
(i) When packed and sold as fresh fruit or when insured as a
processing crop, by dividing the value per lug or ton of marketable
production by the highest price election for the same type and
multiplying the result (not to exceed 1.00) by the quantity of such
production; or
(ii) For all other fresh stonefruit, by multiplying the number of
tons that could be marketed by the value per ton and dividing that
result by the highest price election available for the same type.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
(Sec. 457.8) are not applicable.
[63 FR 29935, June 2, 1998, as amended at 65 FR 47840, Aug. 4, 2000; 75
FR 44717, July 29, 2010; 87 FR 38897, June 30, 2022]
Sec. 457.160 Processing tomato crop insurance provisions.
The Processing Tomato Crop Insurance Provisions for the 2005 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 polices:
Processing Tomato Crop Provisions
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Catastrophic Risk Protection
Endorsement, if applicable; (2) the Special Provisions; (3) these Crop
Provisions; and (4) the Basic Provisions with (1) controlling (2), etc.
1. Definitions
Acre. 43,560 square feet of land on which row widths do not exceed 6
feet, or the land on which at least 7,260 linear feet rows are planted
if row widths exceed 6 feet.
Broker. An enterprise in the business of buying and selling tomatoes
possessing all the licenses and permits required by the state in which
it operates, and that has a written contract with a processor to
purchase processing tomatoes on behalf of the processor and to deliver
such tomatoes to the processor.
[[Page 356]]
Bypassed acreage. Land on which production is ready for harvest but
the processor elects not to accept such production so it is not
harvested.
First fruit set. The reproductive stage of the plant at which 30
percent of the plants have produced a fruit that has reached a minimum
of one inch in diameter.
Good Farming Practices. In addition to the definition of ``good
farming practices'' contained in section 1 of the Basic Provisions, good
farming practices include the cultural practices required under the
processor contract.
Harvest. The severance of tomatoes from the vines.
Plant stand. The number of plants per acre considered to be normal
for the applicable tomato variety and growing area.
Planted acreage. In addition to the definition contained in the
Basic Provisions, tomatoes must initially be placed 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, 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, marketing window, condition of the field, and time to crop
maturity, 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 unless the replanted
acreage can produce at least 75% of the approved yield, and the
processor agrees in writing that it will accept the production from the
replanted acreage.
Processor. Any business enterprise regularly engaged in processing
tomatoes for human consumption, that possesses all licenses and permits
for processing tomatoes 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 contracted processing
tomatoes within a reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, or between the producer and a broker, containing at a
minimum:
(a) The producer's commitment to plant and grow processing tomatoes,
and to deliver the tomato production to the processor or broker;
(b) The processor's, or broker's, commitment to purchase all the
production stated in the processor contract; and
(c) A price per ton that will be paid for the production.
Ton. Two thousand (2,000) pounds avoirdupois.
2. Unit Division
(a) Notwithstanding the provisions of this section or any unit
division provisions contained in the Basic Provisions, no indemnity will
be paid for any loss of production on any unit if the insured produced a
crop sufficient to fulfill the processor contracts forming the basis for
the guarantee, and any indemnity will be limited to the amount necessary
to compensate for loss in yield at the price elected between production
to count and the contract requirements.
(b) In California only, in addition to, or instead of, establishing
optional units by section, section equivalent or FSA farm serial number
and by irrigated and non-irrigated acreage as provided in the unit
division provisions contained in the Basic Provisions, optional units
may be established if acreage planted to tomatoes is separated by a
field that is not planted to tomatoes, or by a permanent boundary such
as a permanent waterway, fence, public road or woodland. Such optional
unit must consist of the minimum number of acres stated in the Special
Provisions. Acreage planted to tomatoes that is less than the minimum
number of acres required will attach to the closest unit within the
section, section equivalent, or FSA farm serial number.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election for all the processing
tomatoes in the county insured under this policy unless the Special
Provisions provide different price elections by type. The percentage of
the maximum price election you choose for one type will be applicable to
all other types insured under this policy. For example, if you choose
100 percent of the maximum price election for one type, you must also
choose 100 percent of the maximum price election for all other types.
(b) Liability under this policy will not exceed the number of tons
required to be accepted by the processor under a processor contract in
effect on or before:
(1) The earlier of August 20 or the date of damage to the insured
crop in all counties with an acreage reporting date of July 15; or
(2) The earlier of the acreage reporting date or the date of damage
in all other counties. (Exclude indemnities that occur in stage one and
replant payments.)
(c) The price election used to determine the amount of an indemnity
is progressive by stage and increases, at specified intervals, to the
price used for final stage losses.
[[Page 357]]
Stages will be determined on an acre basis. The stages and applicable
price elections are:
(1) First stage is from planting until first fruit set. If any
acreage of the insured crop is destroyed in this stage, the price used
to establish the amount of any indemnity owed for such acreage will be
50 percent of your price election;
(2) Second stage is from the first fruit set until harvest. If any
acreage of the insured crop is destroyed in this stage, the price used
to establish the amount of any indemnity owed for such acreage will be
80 percent of your price election; and
(3) Third stage (final stage) is harvested acreage. The price
election used in this stage to establish the amount of any indemnity
owed will be 100 percent of your price election.
(d) Any acreage of tomatoes damaged to the extent, that the majority
of producers in the area would not normally further care for the
tomatoes, will be deemed to have been destroyed even though you may
continue to care for it. The price election used to determine the amount
of an indemnity will be that applicable to the stage in which the
tomatoes were destroyed.
(e) The appraised production from bypassed acreage that could have
been accepted by the processor will be included when determining your
approved yield.
(f) Acreage that is bypassed because it was damaged by an insurable
cause of loss to the extent that the processor cannot use the product
will be considered to have a zero yield when determining your approved
yield.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is August 31 preceding the cancellation date for California
and November 30 preceding the cancellation date for all other states.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are January 15 in California and
March 15 in all other states.
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
you must provide a copy of all processor contracts to us on or before
the acreage reporting date in all counties, unless otherwise specified
in the Special Provisions.
7. Annual Premium
In lieu of the premium amount determinations contained in section 7
of the Basic Provisions, the annual premium amount per acre is
determined by multiplying the production guarantee per acre by the price
election for the third (final) stage; by the premium rate; by the
insured acreage; by the applicable share at the time of planting; and
ultimately by any applicable premium adjustment factors contained in the
actuarial documents.
8. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the tomatoes in the county for which a premium rate
is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvest as processing tomatoes;
(3) That are grown under, and in accordance with, the requirements
of a processor contract executed on or before August 20 in all counties
with an acreage reporting date of July 15, or on or before the acreage
reporting date in all other counties, and are not excluded from the
processor contract for or during the crop year; and
(4) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Grown on acreage on which tomatoes were grown in either of the
two previous years, except in California;
(ii) Interplanted with another crop; or
(iii) Planted into an established grass or legume.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acreage on which
the tomatoes are grown, you are at risk of loss, and the processor
contract provides for delivery of processing tomatoes under specified
conditions and at a stipulated price.
(c) A tomato producer who is also a processor or broker may
establish an insurable interest if the following requirements are met:
(1) The processor or broker, as applicable, must comply with these
Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor or the broker must execute and adopt a
resolution that contains the same terms as an acceptable processor
contract. (Such resolution will be considered a processor contract under
this policy); and
(3) As applicable, our inspection reveals that the processing
facilities comply with the definition of a processor contained in these
Crop Provisions.
9. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) Any acreage of the insured crop that is damaged before the final
planting date, to the extent that the majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant; and
[[Page 358]]
(b) We will not insure any acreage that does not meet the rotation
requirements, if applicable, contained in the Special Provisions.
10. Insurance Period
In lieu of the provisions contained in section 11 of the Basic
Provisions, regarding the end of the insurance period, insurance ceases
at the earlier of the date:
(a) You harvest sufficient production to fulfill your processor
contract if the processor contract stipulates a specific amount of
production to be delivered;
(b) The tomatoes should have been harvested but was not harvested;
(c) The tomatoes were abandoned;
(d) Harvest was completed;
(e) Final adjustment of a loss was completed; or
(f) The following calendar date for the end of the insurance period
(1) October 20 in California; and
(2) October 10 in all other states.
11. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions:
(a) Insurance is provided only against the following causes of loss
that occur during the insurance period:
(1) Adverse weather conditions, including:
(i) Excessive moisture that prevents the harvesting equipment from
entering the field or that prevents the timely operation of harvesting
equipment; and
(ii) Abnormally hot or cold temperatures that cause an unexpected
number of acres over a large producing area to be ready for harvest at
the same time, affecting the timely harvest of a large number of such
acres or the processing of such production being beyond the capacity of
the processor, either of which causes the acreage to be bypassed;
(2) Fire;
(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; or
(8) Failure of the irrigation water supply, if due to a cause of
loss contained in sections 11(a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded by section 12 of the
Basic Provisions, we will not insure against any loss of production due
to:
(1) Acreage being bypassed, if the acreage is bypassed because:
(i) The breakdown or non-operation of equipment or facilities; or
(ii) The availability of a crop insurance payment. We may deny any
indemnity immediately in such circumstance or, if an indemnity has been
paid, require you to repay it to us with interest at any time acreage
was bypassed due to the availability of a crop insurance payment;
(2) The processing tomatoes not being timely harvested, unless such
delay in harvesting is solely and directly due to an insured cause of
loss; or
(3) Your failure to follow the requirements contained in the
processor contract.
12. Replanting Payment
(a) In accordance with section 13 of the Basic Provisions, a
replanting payment is allowed if the crop sustained a loss exceeding 50
percent of the plant stand and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will be
determined as follows:
(1) The amount shown on the Special Provisions multiplied by your
share; or
(2) If an amount is not contained in the Special Provisions, the
lesser of 20 percent of the production guarantee or three tons,
multiplied by your third stage (final) price election, multiplied by
your share; and
(3) In no event will the replanting payment per acre exceed your
actual cost of replanting.
13. Duties in the Event of Damage or Loss
In addition to the notice required by section 14 of the Basic
Provisions, you must give us notice:
(a) Not later than 48 hours after:
(1) Total destruction of the tomatoes in the unit; or
(2) Discontinuance of harvest on a unit on which unharvested
production remains;
(b) Within 3 days after the date harvest should have started on any
acreage that will not be harvested. You must also provide acceptable
documentation of the reason the acreage was bypassed. Failure to provide
such documentation will result in our determination that the acreage was
bypassed due to an uninsured cause of loss. If the crop will not be
harvested and you wish to destroy the crop, 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. The samples must not be destroyed until the
earlier of our inspection or 15 days after notice is given to us; and
(c) At least 15 days prior to the beginning of harvest if you intend
to claim an indemnity on any unit, or immediately if damage is
discovered during the 15 day period or during harvest, so that we may
inspect the damaged production. If you fail to notify us and
[[Page 359]]
such failure results in our inability to inspect the damaged production,
we will consider all such production to be undamaged and include it as
production to count. You are not required to delay harvest.
14. 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) Multiplying the insured acreage by its respective production
guarantee, by type if applicable;
(2) Multiplying each result of section 14(b)(1) by the respective
price election, by type if applicable;
(3) Totaling the results of section 14(b)(2) if there are more than
one type;
(4) Multiplying the total production to counted (see section 14(c)),
for each type if applicable, by its respective price election;
(5) Totaling the results of section 14(b)(4) if there are more than
one type;
(6) Subtracting the result of section 14(b)(4) from the result of
section 14(b)(2) if there is only one type or subtracting the result of
section 14(b)(5) from the result of section 14(b)(3) if there are more
than one type; and
(7) Multiplying the result of section 14(b)(6) by your share.
For example:
You have a 100 percent share in 50 acres of type A processing
tomatoes in the unit, with a guarantee of 18.8 tons per acre and a price
election of $50.00 per ton. You are only able to harvest 10.0 tons. Your
indemnity would be calculated as follows:
(1) 50.0 acres x 18.8 tons = 940.0 tons guarantee;
(2) 940.0 tons x $50.00 price election = $47,000.00 value guarantee;
(4) 10.0 tons x $50.00 price election = $500.00 value of production
to count;
(6) $47,000.00 - $500.00 = $46,500.00 loss; and
(7) $46,500 x 100 percent = $46,500.00 indemnity payment.
You also have a 100 percent share in 50 acres of type B processing
tomatoes in the same unit, with a guarantee of 15.0 tons per acre and a
price election of $35.00 per ton. You are only able to harvest 5.0 tons.
Your total indemnity for both types A and B would be calculated as
follows:
(1) 50.0 acres x 18.8 tons = 940.0 ton guarantee for type A and 50.0
acres x 15.0 tons = 750.0 ton guarantee for type B;
(2) 940.0 ton guarantee x $50.00 price election = $47,000.00 value
of guarantee for type A and 750.0 ton guarantee x $35.00 = $26,500.00
value of guarantee for type B;
(3) $47,000.00 + $26,500.00 = $72,500.00 total value of guarantee;
(4) 10.0 tons x $50.00 price election = $500.00 value of production
to count for type A and 5.0 tons x $35.00 price election = $175.00 value
of production to count for type B;
(5) $500.00 + $175.00 = $675.00 total value of production to count;
(6) $72,500.00 - $675.00 = $71,575.00 loss; and
(7) $71,575 loss x 100 percent = $71,575.00 indemnity payment.
(c) The total production to count, specified in 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 production records that are
acceptable to us.
(ii) Production lost due to uninsured causes;
(iii) Production on acreage that is bypassed unless the acreage was
bypassed due to an insured cause of loss which resulted in production
which would not be acceptable under the terms of the processor contract;
(iv) Potential production on insured acreage that you intend to put
to another use or abandoned, if you and we agree on the appraised amount
of production. Upon such agreement, the insurance period for that
acreage will end when 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;
(2) All harvested production (in tons) delivered to the processor
which meets the quality requirements of the processor contract
(expressed as usable or payable weight).
[[Page 360]]
(3) All harvested tomato production delivered to processor which
does not meet the quality requirements of the processor contract due to
not being timely delivered.
(d) Once harvest has begun on any acreage covered by a processor
contract that specifies the number of tons to be delivered, the total
indemnity payable will be limited to an amount based on the lesser of
the guaranteed tons, or the tons remaining unfulfilled under the
processor contract.
15. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[62 FR 54342, Oct. 20, 1997, as amended at 62 FR 65177, Dec. 10, 1997;
69 FR 44576, July 27, 2004]
Sec. 457.161 Canola and rapeseed crop insurance provisions.
The Canola and Rapeseed Crop Insurance Provisions for the 2021 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:
Canola and Rapeseed Crop Provisions
1. Definitions
Canola. A crop of the genus Brassica as defined in accordance with
the Official United States Standards for Grain--Subpart C--U.S.
Standards for Canola.
Harvest. Combining or threshing for seed. A crop that is swathed or
pushed prior to combining is not considered harvested.
Latest final planting date. (a) 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;
(b) 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
(c) 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.
Local market price (Canola). The cash price per pound for U.S. No. 2
grade canola that reflects the maximum limits of quality deficiencies
allowable for the U.S. No. 2 grade canola.
Planted acreage. In addition to the definition contained in the
Basic Provisions, 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. Acreage planted in any other manner will not be insurable
unless otherwise provided by the Special Provisions, actuarial
documents, or by written agreement.
Prevented planting. As defined in the Basic Provisions, except that
the references to ``final planting date'' contained in the definition in
the Basic Provisions are replaced with the ``latest final planting
date.''
Price of damaged production. The cash price per pound available if
the production were sold for canola that qualifies for quality
adjustment in accordance with section 12 of these crop provisions.
Pushed. Mechanical bending of the stem prior to maturity that leaves
the stems and pods intact to ripen naturally while being protected from
weather events.
Rapeseed. A crop of the genus Brassica that contains at least 30
percent of an industrial type of oil as shown on the Special Provisions
and that is measured on a basis free from foreign material.
Swathed. Severance of the stem and seed pods from the ground and
placing into windrows without removal of the seed from the pod.
2. Unit Division
In addition to optional units by section, section equivalent or FSA
farm serial number and by irrigated and non-irrigated practices,
optional units may be by type if the type is designated on the Special
Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You must elect to insure your canola and rapeseed with either
revenue protection or yield protection by the sales closing date; and
(b) In counties with both fall and spring sales closing dates for
the insured crop:
(1) If you do not have any insurable fall planted acreage of the
insured crop, you may change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, until the spring sales closing date; or
(2) If you have any insurable fall planted acreage of the insured
crop, you may not change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, after the fall sales closing date.
[[Page 361]]
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date for counties
with a March 15 cancellation date, and June 30 preceding the
cancellation date for all other counties.
5. Cancellation and Termination Dates.
The cancellation and termination dates are as follows, unless
otherwise specified in the actuarial documents:
----------------------------------------------------------------------------------------------------------------
State and county Cancellation date Termination date
----------------------------------------------------------------------------------------------------------------
All counties in Alabama and Georgia... September 30....................... September 30.
Blaine, Bonneville, Fremont, March 15........................... March 15.
Jefferson, Madison, and Teton
counties Idaho; and all counties in
Minnesota, Montana, and North Dakota.
All counties in Illinois, Indiana, August 31.......................... August 31.
Kansas, Kentucky, North Carolina,
Oklahoma, South Carolina, Tennessee,
Texas, and Virginia.
All other Idaho counties, Oregon, and August 31.......................... October 31.
Washington.
----------------------------------------------------------------------------------------------------------------
6. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all canola and rapeseed 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 seed; and
(c) That is not, unless allowed by Special Provisions or by written
agreement:
(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 of the Basic Provisions:
(a) We will not insure any acreage that does not meet the rotation
requirements contained in the Special Provisions;
(b) Whenever the Special Provisions designate only a fall final
planting date, any acreage of canola or rapeseed 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 fall type
of the insured crop unless we agree that replanting is not practical;
(c) Whenever the Special Provisions designate both fall and spring
final planting dates:
(1) Any fall canola or rapeseed that is damaged 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 a fall type
of the insured crop to maintain insurance based on the fall type unless
we agree that replanting is not practical. If it is not practical to
replant to the fall type of canola or rapeseed but is practical to
replant to a spring type, you must replant to a spring type to keep your
insurance based on the fall type in force; and
(2) Any fall canola or rapeseed acreage that is replanted to a
spring type of the same crop when it was practical to replant the fall
type will be insured as the spring type and the production guarantee,
premium, projected price, and harvest price applicable to the spring
type will be used. In this case, the acreage will be considered to be
initially planted to the spring type; and
(d) Whenever the Special Provisions designate a spring final
planting date, any acreage of spring canola or rapeseed 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; or
(e) Whenever the Special Provisions designate only a spring final
planting date, any acreage of fall planted canola or rapeseed is not
insured unless you request such coverage on or before the spring sales
closing date, and we determine in writing that the acreage has an
adequate stand in the spring to produce the yield used to determine your
production guarantee. However, if we fail to inspect the acreage by the
spring final planting date, insurance will attach as specified in
section 7(e)(3):
(1) Your request for coverage must include the location and number
of acres of fall planted canola or rapeseed;
(2) The fall planted canola or rapeseed will be insured as a spring
type for the purpose of the production guarantee, premium, projected
price, and harvest price, if applicable;
(3) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand by the spring final planting date;
(4) Any acreage of such fall planted canola or rapeseed that is
damaged after it is accepted for insurance 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 a spring type of the
insured crop unless we agree it is not practical to replant; and
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(5) If fall planted acreage is not to be insured it must be recorded
on the acreage report as uninsured fall planted acreage.
8. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the calendar date for the end of the insurance period is
October 31 of the calendar year in which the crop is normally harvested.
9. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss which occur during 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;
(h) Failure of the irrigation water supply due to a cause of loss
specified in sections 9(a) through (g) that also occurs during the
insurance period; or
(i) For revenue protection, a change in the harvest price from the
projected price, unless FCIC can prove the price change was the direct
result of an uninsured cause of loss specified in section 12(a) of the
Basic Provisions.
10. Replanting Payment
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions that
limit the amount of a replant payment to the actual cost of replanting,
the amount of any replanting payment will be determined in accordance
with these Crop Provisions;
(2) Except as specified in section 10(a)(1), you must comply with
all requirements regarding replanting payments contained in section 13
of the Basic Provisions;
(3) The insured crop 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; and
(4) The replanted crop must be seeded at a rate sufficient to
achieve a total (undamaged and new seeding) plant population that is
considered appropriate by agricultural experts for the insured crop,
type and practice.
(b) Unless otherwise specified in the Special Provisions, the amount
of the replanting payment per acre will be the lesser of 20 percent of
the production guarantee or 175 pounds, multiplied by your projected
price, multiplied by your share.
(c) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
(d) Replanting payments will be calculated using your projected
price and your production guarantee for the crop type that is replanted
and insured.
(1) For example, if damaged Spring Oleic Canola is replanted to
Spring High Erucic Rapeseed, your projected price applicable to Spring
High Erucic Rapeseed will be used to calculate any replanting payment
that may be due. A revised acreage report will be required to reflect
the replanted type.
(2) Notwithstanding section 10(d)(1), the following will have a
replanting payment based on your production guarantee and your projected
price for the crop type initially planted:
(i) Any damaged winter crop type that is replanted to a spring crop
type, but that retains insurance based on the winter crop type; and
(ii) Any acreage replanted at a reduced seeding rate into a
partially damaged stand of the insured crop.
11. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
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 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 number of insured acres of each type, as
applicable, by your respective:
(i) Yield protection guarantee (per acre) if you elected yield
protection; or
(ii) Revenue protection guarantee (per acre) if you elected revenue
protection;
(2) Totaling the results of section 12(b)(1)(i) or 12(b)(1)(ii),
whichever is applicable;
(3) Multiplying the production to count of each type, as applicable,
by your respective:
(i) Projected price if you elected yield protection; or
(ii) Harvest price if you elected revenue protection;
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(4) Totaling the results of section 12(b)(3)(i) or 12(b)(3)(ii),
whichever is applicable;
(5) Subtracting the result of section 12(b)(4) from the result of
section 12(b)(2); and
(6) Multiplying the result of section 12(b)(5) by your share.
For example:
You have 100 percent share in 50 acres of canola in the unit with a
production guarantee (per acre) of 650 pounds, your projected price is
$.1220, your harvest price is $.1110, and your production to count is
31,000 pounds.
If you elected yield protection:
(1) 50 acres x (650 pound production guarantee x $.1220 projected
price) = $3,965.00 value of the production guarantee
(3) 31,000 pound production to count x $.1220 projected price =
$3,782.00 value of the production to count
(5) $3,965.00-$3,782.00 = $183.00
(6) $183.00 x 1.000 share = $183.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (650 pound production guarantee x $.1220 projected
price) = $3,965.00 revenue protection guarantee
(3) 31,000 pound production to count x $.1110 harvest price =
$3,441.00 value of the production to count
(5) $3,965.00-$3,441.00 = $524.00
(6) $524.00 x 1.000 share = $524.00 indemnity.
(c) The total production to count (pounds) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) For yield protection, not less than the production guarantee and
for revenue protection, not less than the amount of production that when
multiplied by the harvest price equals the revenue protection guarantee
(per acre) for acreage:
(A) That is abandoned;
(B) That is 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;
(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
section 12(d)); and
(iv) 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 when 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 canola may be adjusted for excess moisture and quality
deficiencies. Mature rapeseed may be adjusted for excess moisture only.
If moisture adjustment is applicable, it will be made prior to any
adjustment for quality.
(1) Canola and rapeseed production will be reduced by 0.12 percent
for each 0.1 percentage point of moisture in excess of 8.5 percent. We
must be permitted to obtain samples of the production to determine the
moisture content.
(2) Canola production will be eligible for quality adjustment if:
(i) Deficiencies in quality, in accordance with the Official United
States Standards for Grain, result in the canola not meeting the grade
requirements for U.S. No. 3 or better (U.S. Sample grade) because of
kernel damage (excluding heat damage), 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 in canola
production only if:
(i) The deficiencies, substances, or conditions resulted from a
cause of loss against which insurance is provided under these Crop
Provisions and which occurs within the insurance period;
(ii) The deficiencies, substances, or conditions result in a net
price for the damaged production that is less than the local market
price;
(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;
(iv) With regard to deficiencies in quality, the samples are
analyzed by:
[[Page 364]]
(A) A grain grader licensed under the United States Grain Standards
Act or the United States Warehouse Act;
(B) A grain grader licensed under State law and employed by a
warehouse operator who has a storage agreement with the Commodity Credit
Corporation; or
(C) A grain grader not licensed under State law, but who is employed
by a warehouse operator who has a commodity storage agreement with the
Commodity Credit Corporation and is in compliance with State law
regarding warehouses; and
(v) With regard to substances or conditions injurious to human or
animal health, the samples analyzed by a laboratory approved by us.
(4) Canola production that is eligible for quality adjustment, as
specified in sections 12(d)(2) and (3), will be reduced in accordance
with the quality adjustment factors contained in the Special Provisions.
(e) Any production harvested from plants growing in the insured crop
may be counted as production of the insured crop on an unadjusted weight
basis.
13. Late Planting
In lieu of section 16(a) of the Basic Provisions, the production
guarantee for each acre planted to the insured crop during the late
planting period will be reduced by 1 percent per day for each day
planted after the final planting date unless otherwise specified in the
Special Provisions.
14. Prevented Planting.
In counties for which the Special Provisions designate a spring
final planting date, your prevented planting production guarantee will
be based on your approved yield for spring-planted acreage of the
insured crop. Your prevented planting coverage will be a percentage
specified in the actuarial documents of your production guarantee for
timely planted acreage. If you have additional coverage and pay an
additional premium, you may increase your prevented planting coverage if
such additional coverage is specified in the actuarial documents.
[62 FR 65997, Dec. 17, 1997, as amended at 67 FR 43526, June 28, 2002;
75 FR 15889, Mar. 30, 2010; 81 FR 84401, Nov. 23, 2016; 85 FR 31942, May
28, 2020]
Sec. 457.162 Nursery crop insurance provisions.
The Nursery Crop Insurance Provisions for the 2019 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
Nursery Crop Insurance Provisions
1. Definitions
American Standard for Nursery Stock. A publication of the American
Nursery and Landscape Association, or a subsequent successor
organization, issued in accordance with the rules of the American
National Standards Institute, Inc. that provides common terminology and
standards for nurseries.
Amount of insurance. For the purposes of calculating premium, the
result of multiplying the basic unit value by your selected coverage
level and by your share. For the purpose of determining the amount of
any indemnity, the result of multiplying the basic unit value by your
selected coverage level and by your share minus any previous indemnities
during the crop year paid under these Crop Provisions.
Basic unit value. The full inventory value of all insurable plants
in a basic unit declared on your original or revised PIVR and a Peak
Inventory Value Report, if applicable.
Catalog. Any document, including but not limited to printed discount
schedules, issued by your nursery and used to advise actual and/or
potential buyers of the amount you are charging for purchases of each
plant included in the inventory.
(1) Such documents may be issued by season, by plant type, or other
basis consistent with your business practices.
(2) The documents can be in any form, but must meet the minimum
standards contained in section 6(j), except that the printed discount
schedules do not have to be provided to customers.
Container grown. A nursery production practice in which plants are
grown in standard nursery containers: above the ground; placed in the
ground; or when placed in another standard nursery container in the
ground (i.e., pot-in-pot).
Crop Inventory Valuation Report (CIVR). A plant inventory list
created on the Nursery Inventory Software for assisting in establishing
the insurable nursery plant inventory value.
Crop year. The period beginning the day insurance attaches and
extending until the following May 31. Crop year is designated by the
year in which the insurance period ends.
Crop year deductible. The basic unit value multiplied by the
deductible minus the amount of any previously-incurred deductible if you
have reported each loss to us in accordance with section 11(a)(2). The
crop
[[Page 365]]
year deductible will be increased for any increases in the inventory
value on the PIVR or through the purchase of a Peak Inventory
Endorsement, if in effect at the time of loss.
Eligible Plant List and Plant Price Schedule (EPLPPS). A component
of the actuarial documents that is published by FCIC on RMA's website
and is also available on compact disk from your crop insurance agent.
The EPLPPS contains the following information:
(1) The botanical and common names of insurable plants;
(2) The cold protection requirements for container grown material
and the areas in which they apply;
(3) The hardiness zone in which field grown material is insurable;
(4) The designated hardiness zones available for each county;
(5) The plant type, storage key, and hardiness zone classification
for each plant on the list; and
(6) A schedule of insurable plant prices that establishes the
highest value accepted for insurance purposes unless otherwise allowed
by the policy or an endorsement to the policy.
Fabric grow bag. A fabric bag (including a woven or matted bag with
a plastic or fabric bottom) used for growing plants in-ground or as an
above-ground nursery plant container that provides adequate drainage and
is appropriate in size for the plant.
Field grown. A nursery production practice in which plants are grown
in the ground. Plants grown in in-ground fabric grow bags, plants that
are balled and burlapped, or plants grown in containers that allow the
plants to root (excluding fibrous roots) into the ground (for example, a
container without a bottom) are also considered field grown.
Field market value A (FMVA). Our determination of the value of all
insurable plants in the basic unit immediately prior to the occurrence
of a loss event. This value will be determined in accordance with the
requirements of section 6 of these Crop Provisions. For liners, the
total value of undamaged liners is multiplied by the survival factor to
determine the value of undamaged insurable plants.
Field market value B (FMVB). Our determination of the value of all
damaged and undamaged insurable plants in the basic unit following the
occurrence of a loss event. This value will be determined in accordance
with the requirements of section 6 of these Crop Provisions with an
adjustment for the amount of damage we determine the plants have
sustained.
Good nursery practices. In addition to the definition of ``good
farming practices'' contained in section 1 of the Basic Provisions, the
horticultural practices generally in use in the area for nursery plants
to make normal progress toward the stage of growth at which marketing
can occur and: (1) For conventional practices, generally recognized by
agricultural experts for the area as compatible with the nursery plant
production practices and weather conditions in the county; or (2) for
organic practices, generally recognized by the organic agricultural
industry for the area as compatible with the nursery plant production
practices and weather conditions in the county or contained in the
organic plan. We may, or you may request us to, contact FCIC to
determine whether or not production methods will be considered to be
``good nursery practices.''
Irrigated practice. In lieu of the definition in the Basic
Provisions, the application of water, using appropriate systems and at
the proper times, to provide the quantity of water needed to sustain
normal growth of your insured plant inventory and provide cold
protection for applicable plants as specified in the EPLPPS.
Liners. Plants produced in standard nursery containers that have a
minimum dimension greater than or equal to \5/8\ inch and a maximum
dimension of less than 3 inches at the widest point of the container or
cell interior, have an established root system, and meet all other
conditions specified in the Special Provisions.
Loss. FMVA minus FMVB, as adjusted by any under-report factor or
over-report factor. Payments made under the Rehabilitation Endorsement
are not considered to be a loss.
Lowest price. The lesser of the minimum price stated in your catalog
or the price contained in the EPLPPS for a plant and its size. The
minimum price in your catalog is the lowest price at which you will sell
that plant and size to any buyer, including all incremental volume
discounts or any other discounting factor.
Marketable. A plant that can be sold in a customary or secondary
market for a non-zero value.
Monthly proration factors. Factors contained in the actuarial
documents that are used to calculate premium when you do not insure the
nursery plants for an entire crop year.
Nursery. A business enterprise that grows the nursery plants. At
least 40 percent of its gross income derived from plant sales must be
from the wholesale marketing of such plants.
Occurrence deductible. This deductible allows a smaller deductible
than the crop year deductible to be used when FMVA is more or less than
the reported basic unit value. The occurrence deductible is the lesser
of:
(1) The deductible multiplied by FMVA and:
(i) In under-report situations, multiplied by the under-report
factor; or
(ii) In over-report situations, multiplied by the sum of 1.000 plus
the over-report factor; or
[[Page 366]]
(2) The crop year deductible.
Over-report factor. The factor that adjusts your indemnity for over-
reporting of inventory values. This factor is used to determine
indemnities when the basic unit value minus the total of all previous
losses is more than 110 percent of FMVA for the same basic unit plus the
insured value of plants listed on the verifiable sales records. The
over-report factor is calculated by:
(1) The basic unit value minus the total of all previous losses;
(2) FMVA plus the insured value of plants listed on the verifiable
sales records;
(3) Dividing the result of paragraph (1) of this definition by the
result of paragraph (2) of this definition; and
(4) Subtracting 1.100 from the result of paragraph (3) of this
definition.
(5) If the result of paragraph (4) of this definition is greater
than 0.000, then the result of paragraph (4) is the over-report factor
that is applied.
PIVR. The plant inventory value report, your report that declares
the value of insurable plants in accordance with section 6.
Practice. A cultural method of producing plants identified in the
actuarial documents.
Restock. Replacement of lost or damaged plants that increases the
value of the insurable inventory to an amount greater than the remaining
amount of insurance.
Sales closing date. In lieu of the definition in section 1 of the
Basic Provisions, the date shown in the Special Provisions. New-policy
applications may be filed at any time. However, all applications,
including those for new or amended coverage, are subject to a 30-day
waiting period before commencement of coverage as specified in sections
3(d) and 9(a) of these Crop Provisions.
Standard nursery containers. Rigid containers that have a minimum
dimension greater than or equal to \5/8\ inch, unless otherwise provided
by the Special Provisions, at the widest point of the container
interior, above-ground fabric grow bags, and other types of containers
specified in the Special Provisions that are appropriate in size and
provide adequate drainage for the plant. In-ground fabric grow bags,
balled and burlapped, and trays (flats) without individual cells are not
considered standard nursery containers.
Stock plants. Plants used solely for propagation during the
insurance period.
Survival factor. A value specified in the Special Provisions that
denotes the expected percentage of liners that normally survive the
period from insurance attachment to market.
Under-report factor. The factor that adjusts your indemnity for
under-reporting of inventory values. The factor is always used in
determining indemnities. For each basic unit, the under-report factor is
the lesser of:
(1) 1.000; or
(2) The basic unit value minus the total of all previous losses; and
dividing that result by FMVA.
Wholesale. To sell nursery plants in large quantities at a price
below that offered on low-quantity sales to retailers, commercial users,
governmental end-users, or other end-users for business purposes (e.g.
sales to landscape contractors and commercial fruit producers). This
determination will be based on a county-by-county basis.
2. Unit Division
(a) If you elect additional coverage for a practice, a basic unit,
as defined in section 1 of the Basic Provisions, may be divided into
additional basic units by:
(1) Each insurable plant type for which a premium rate is provided
by the actuarial documents; or
(2) For the field grown practice only, non-contiguous land. Basic
units by non-contiguous land for the container grown practice may be
allowed if provided for in the Special Provisions.
(b) Only the plant types listed in the actuarial documents are
insurable.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) The production reporting requirements contained in section 3 of
the Basic Provisions are not applicable.
(b) In addition to the requirements of section 3 of the Basic
Provisions, you may select either catastrophic risk protection or
additional coverage for each insured practice. An administrative fee
established in accordance with section 7(e) of the Basic Provisions will
be owed for each practice insured.
(c) In lieu of section 3(b) of the Basic Provisions:
(1) If you select additional coverage for a practice:
(i) You may select one coverage level for each plant type insured in
that practice if you elect basic units by plant type;
(ii) You will receive 100 percent of the price election for all
plant types in that practice;
(iii) You must provide on the application a coverage level
percentage for each plant type that will be insured; and
(iv) You must select a coverage level if:
(A) A new plant is added under a revised PIVR or Peak Inventory
Value Report, if applicable; and
(B) The new plant is not categorized under a plant type reported on
the initial PIVR or Peak Inventory Value Report, if applicable.
(2) If you select catastrophic risk protection for a practice, all
plant types under the practice must be insured at the catastrophic risk
protection level.
[[Page 367]]
(d) In lieu of section 3(d) of the Basic Provisions, you may request
changes to the coverage level for a plant type by submitting them in
writing to us as follows:
(1) For new policies, changes cannot be made for the crop year after
the date of the application; and
(2) For carryover policies:
(i) Changes must be requested on or before the sales closing date;
and
(ii) Unless we reject the proposed increase because a loss occurs
within 30 days of the date the request is made (rejection can occur at
any time we discover such loss has occurred), requested changes will
take effect on the date of the start of the crop year.
(e) If you restock your nursery plant inventory, you may increase
your amount of insurance in accordance with section 6(f).
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is January 31 of each crop year.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are May 31 preceding the crop year.
6. PIVR
(a) Section 6 of the Basic Provisions is not applicable.
(b) You must submit a separate PIVR for each insured practice, as
applicable, and two copies of your most recent catalog to us with your
application and on or before the sales closing date for each crop year
following the year of application. If you elected basic units by non-
contiguous land, you must also submit a separate PIVR for each non-
contiguous land unit within the insured practice, and keep all records
separate by unit.
(1) You will be notified in writing on or before the end of the 30-
day waiting period if an application for insurance is rejected because
the inspection determines you do not meet the insurability requirements
or the PIVR, catalog, or supporting documentation (if requested by us)
is not acceptable.
(2) If you fail to provide a PIVR or catalog on or before the sales
closing date for any crop year, insurance will not attach until the 31st
day after all such documents have been received by your crop insurance
agent and we will not be liable for any losses that occur before
insurance has attached.
(c) The PIVR must include, by basic unit, all growing locations,
basic unit value, coverage level selected, as applicable, and your
share.
(1) If you do not elect additional basic units by plant type, or
additional basic units by non-contiguous land, or if you elect
catastrophic risk protection coverage, the inventory values for each
plant type in the basic unit must be separately reported on the PIVR and
totaled to determine the basic unit value.
(2) At our option, you will be required to provide documentation in
support of your PIVR, including, but not limited to the following:
(i) A detailed plant inventory listing that includes the name, the
number, and the size of each plant, or a CIVR;
(ii) Acceptable records of sales and purchases of plants for the
three previous crop years in the amount of detail we require. Acceptable
records must contain the name and telephone number of the purchaser or
seller, as applicable, names of the plants, the number of each plant
sold or purchased, and the sales price for each plant; and
(iii) Your ability to properly obtain and maintain nursery plants.
(3) If you fail to provide the requested documentation:
(i) Before insurance attaches, your insurance will be denied for the
crop year for any basic units for which you did not provide such
documentation. This provision does not apply to:
(A) Plant varieties you have not previously grown; or
(B) New nurseries where an inspection has determined you have the
ability to properly obtain and maintain the nursery plants.
(ii) After insurance attaches, you will still owe premium, but you
will not receive an indemnity for any basic units for which you did not
provide such documentation. This provision does not apply to:
(A) Plant varieties you have not previously grown; or
(B) New nurseries where an inspection has determined you have the
ability to properly obtain and maintain the nursery plants.
(4) If you provide inadequate documentation (i.e., documentation
that does not support the amount for which you reported) after insurance
attaches for each basic unit, your insurance will not be denied for the
crop year. However, your failure to provide adequate documentation may
result in a reduction in your indemnity for each basic unit where
inadequate documentation was provided.
(5) For policies insured at the catastrophic risk protection level,
you must report, on the PIVR for each practice insured, your greatest
plant sales in any of the previous three years and the actual inventory
value on the date insurance attaches. For each applicable practice, the
total of your basic unit values cannot exceed 110 percent of the higher
of your:
(i) Greatest amount of plant sales in any of the previous three
years; or
(ii) Actual inventory value on the date insurance attaches
(d) Your PIVR, including any revised report, and your Peak Inventory
Value Report,
[[Page 368]]
if applicable, will be used to determine your premium and amount of
insurance.
(e) Your PIVR must reflect your insurable basic unit value.
(1) The basic unit value you report on your PIVR must be based on
the lowest price for each plant size included in the inventory. The
inventory value of insured liners must be multiplied by the survival
factor.
(2) In no instance will we be liable for plant values greater than
those contained in the EPLPPS.
(3) If you have previously made a claim and the loss adjuster is
unable to determine whether a plant was damaged prior to submission of
your PIVR for the current crop year, the plant will be insurable at full
value based on the lesser of the Eligible Plant List price or the
catalog or price list price. The value of the plant may be reduced at
any time during the crop year if the extent of damage is discovered.
(f) You may increase your reported inventory value for each basic
unit no more than twice during the crop year by submitting a revised
PIVR prior to 30 days before the end of such crop year.
(1) Any requested increase must be made in writing and meet all the
requirements of the original PIVR.
(2) We will perform an inspection of the nursery to determine if
adequate and acceptable facilities exist to accommodate the requested
increased inventory value when the total of all the basic unit values
contained on the revised PIVR or Peak Inventory Value Report, if
applicable, is increased 50 percent or more from the previous total of
all the basic unit values on the PIVR, and the increase is not due to
restocking subsequent to an insured loss.
(3) At our discretion, we may inspect the nursery to determine if
adequate and acceptable facilities exist to accommodate the requested
increased inventory value if an increase of less than 50 percent is
reported on the revised PIVR or Peak Inventory Value Report, if
applicable.
(4) Your revised PIVR will be considered accepted by us and
insurance will attach on any proposed increase in inventory value 30
days after your written request is received unless we reject the
proposed increase in your plant inventory value in writing.
(5) We will reject any requested increase if a loss occurs within 30
days of the date the request is made (rejection can occur at any time we
discover such loss has occurred).
(6) You cannot revise your PIVR to decrease the plant inventory
value after the start of the insurance period specified in section 9.
(7) Notwithstanding section 6(f), if you have suffered an insured
loss on a basic unit and have restocked the nursery, then you are
allowed to increase your reported inventory value for the basic unit one
additional time by submitting a revised PIVR.
(g) For insurable plants that were damaged prior to the attachment
of insurance coverage:
(1) The applicable price, as determined in accordance with section
6(e), will be reduced for inventory reporting purposes if we accept such
plants for insurance coverage;
(2) The insurable value of such plants will be removed from the
applicable basic unit value reported on the PIVR if they are not
accepted;
(3) The procedure for calculating the insurable value of damaged
plants that are accepted for coverage is contained in the Special
Provisions.
(h) You must report the full value of each basic unit value in
accordance with section 6(e). Failure to report the full value of each
basic unit value will result in the reduction of any claim in accordance
with section 12(d).
(i) Insurable plants in over-sized containers will be valued for
purposes of reporting inventory and loss adjustment as if the plants
were in appropriate-sized containers in accordance with the standards
contained in the current American Standard for Nursery Stock. Each cell
in a multiple-cell container is considered a separate container. (See
the EPLPPS on RMA's websitefor additional information and requirements
on container specifications and volume calculation.)
(j) At a minimum, your catalog must meet the following standards:
(1) Be type-written and legible;
(2) Show an issue date on the cover page (may be handwritten);
(3) Contain the name, address, and phone number of your nursery;
(4) Be provided to customers (except printed discount schedules) and
used in the sale of your plants; and
(5) List each plant's name (botanical or common), plant or container
size, and wholesale price.
7. Premium
(a) In lieu of section 7(c) of the Basic Provisions, we will
determine your premium by multiplying the amount of insurance by the
appropriate premium rate, any premium adjustment factor, and the monthly
proration factor contained in the actuarial documents. If you elect
catastrophic risk protection coverage, this calculation must also be
multiplied by fifty-five percent.
(b) In addition to the provisions in section 7 of the Basic
Provisions, we will prorate your premium based on:
(1) The time remaining in the crop year after insurance attaches:
(i) If you have made application after the start of the insurance
period specified in section 9; or
[[Page 369]]
(ii) If you submit a PIVR or catalog after the sales closing date;
(2) The time remaining in the crop year after insurance attaches and
the additional amount of inventory reported, if you submit a revised
PIVR to report an increase in inventory value for a basic unit; and
(3) The time period for which insurance is provided under the Peak
Inventory Endorsement.
(c) Premium will be charged for the entire month for any calendar
month during which any amount of coverage is provided under these
provisions or the Peak Inventory Endorsement.
(d) In lieu of section 7(a) of the Basic Provisions:
(1) If you apply for insurance before the premium billing date
listed in the actuarial documents, the annual premium is earned and
payable at the time coverage begins. You will be billed for the premium
and administrative fee not earlier than the premium billing date listed
in the actuarial documents.
(2) If you apply for insurance, or submit your PIVR or catalog, on
or after the premium billing date listed in the actuarial documents, the
premium for the partial crop year will be due and must be paid at the
time of application or submission of your PIVR or catalog.
(3) Failure to pay the premium at the time of application or when
you submit your PIVR or catalog will result in no insurance and no
indemnity being owed for the crop year.
8. Insured Crop and Plants
In lieu of the provisions of sections 8 and 9 of the Basic
Provisions, the insured crop will be all nursery plants in each practice
you elect to insure, and:
(a) For which you have a share;
(b) Are shown on the EPLPPS and meet all the requirements for
insurability (plant types, species and cultivars not insurable under the
EPLPPS may be insured by written agreement, subject to FCIC's
determination that the proper storage requirements and an accurate
insurable price for the plant can be determined, and provided all other
requirements, such as plant and container size, are met);
(c) Are determined by us to be acceptable;
(d) Are grown in a county for which a premium rate is provided in
the actuarial documents;
(e) Are grown in a nursery inspected by us and determined to be
acceptable;
(f) Are irrigated unless otherwise provided by the Special
Provisions (you must have adequate irrigation equipment and water to
irrigate all insurable nursery plants at the time coverage begins and
throughout the insurance period);
(g) Are grown in accordance with the production practices for which
premium rates have been established;
(h) Are grown in an appropriate medium;
(i) Are grown and sold with the root system attached;
(j) Are not stock plants or plants being grown solely for harvest of
buds, flowers, or greenery;
(k) May produce edible fruits or nuts provided the plants are made
available for sale (harvest of the edible fruit or nuts does not affect
insurability); and
(l) Are not produced in nursery containers that contain two or more
different genera, species, subspecies, varieties or cultivars.
9. Insurance Period
(a) In lieu of section 11 of the Basic Provisions:
(1) For the year of application, if you apply for coverage:
(i) On or before May 1st of the crop year, coverage begins June 1st,
unless we notify you in writing that your application is rejected
because your PIVR, catalog, or supporting documentation (if requested by
us) is not acceptable;
(ii) After May 1st, coverage will not begin until the 31st day after
we receive all acceptable documents; and
(2) For continuous policies, the insurance period begins on each
June 1st.
(b) Insurance ends at the earliest of:
(1) The date of final adjustment of a loss when the total
indemnities due equal the amount of insurance;
(2) Removal of bare root nursery plant material from the field;
(3) Removal of all other insured plant material from the nursery;
(4) May 31st; or
(5) Abandonment of the crop on the basic unit.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided for unavoidable damage caused only by
the following causes of loss that occur within the insurance period:
(1) Adverse weather conditions, except as specified in section 10(c)
or the Special Provisions;
(2) Fire, provided weeds and undergrowth in the vicinity of the
plants or buildings on your insured site are controlled by chemical or
mechanical means;
(3) Wildlife;
(4) Earthquake; or
(5) Volcanic eruption.
(b) Insurance is also provided against the following if due to a
cause of loss specified in section 10(a) that occurs within the
insurance period:
(1) A loss in plant values because of an inability to market such
plants, provided such
[[Page 370]]
plants would have been marketed during the crop year (e.g. poinsettias
that are not marketable during their usual and recognized marketing
period of November 1st through December 25th);
(2) Failure of the irrigation water supply; or
(3) Failure of, or reduction in, the power supply.
(c) In addition to the causes of loss excluded in sections 12(a) and
(c) through (f) of the Basic Provisions, we do not insure against any
loss caused by:
(1) Disease or insect infestation, unless:
(i) A disease or insect infestation occurs for which no effective
control measure exists; or
(ii) Coverage is specifically provided by the Special Provisions.
(2) The inability to market the nursery plants as a result of:
(i) The refusal of a buyer to accept production;
(ii) Boycott; or
(iii) An order from a public official prohibiting sales including,
but not limited to, a stop sales order, quarantine, or phytosanitary
restriction on sales;
(3) Cold temperatures, if cold protection is required in the EPLPPS,
unless you have installed adequate cold protection equipment or
facilities and:
(i) There is a failure or breakdown of the cold protection equipment
or facilities resulting from an insurable cause of loss specified in
section 10(a) (the insured plants must be damaged by cold temperatures
and the damage must occur within 72 hours of the failure of such
equipment or facilities unless we establish that repair or replacement
was not possible between the time of failure or breakdown and the time
the damaging temperatures occurred); or
(ii) The lowest temperature or its duration exceeded the ability of
the required cold protection equipment or facilities to keep the insured
plants from sustaining cold damage;
(4) Collapse or failure of buildings or structures, unless the
damage to the building or structures results from a cause of loss
specified in section 10(a);
(5) Any cause of loss, including those specified in section 10(a),
if the only damage suffered is a failure of plants to grow to an
expected size; or
(6) Failure to follow recognized good nursery practices.
11. Duties in the Event of Damage or Loss
(a) In addition to your duties contained in section 14 of the Basic
Provisions,
(1) You must obtain our written consent prior to:
(i) Destroying, selling or otherwise disposing of any plant
inventory that is damaged; or
(ii) Changing or discontinuing your normal growing practices with
respect to care and maintenance of the insured plants.
(2) You must submit a claim for indemnity to us on our form, not
later than 60 days after the date of your loss, but in no event later
than 60 days after the end of the insurance period. This requirement
will be waived by us if the final adjustment of your claim is totally or
partially deferred because we are unable to make an accurate
determination of the amount of damage to the insured plants. If within
the time frame specified we notify you that we are unable to make an
accurate determination of damage on all or some of your damaged plants:
(i) For those damaged plants on which the loss adjustment and claim
have not been deferred, you must submit a partial claim within the time
frame specified in section 11(a)(2) and we will settle your claim on
such plants;
(ii) For those damaged plants on which the loss adjustment and claim
have been deferred, we will determine the amount of damage at the
earliest possible date but no later than one year after the end of the
insurance period for the crop year in which the damage occurred; and
(iii) You must maintain the identity of the plants on which loss
adjustment is deferred throughout the deferral period.
(b) If you fail to obtain our written consent as required by section
11(a)(1), your claim will be denied on each basic unit for which written
consent was not obtained.
12. Settlement of Claim
We will determine indemnities for any unit as follows:
(a) Determine the under-report factor or over-report factor, as
applicable, for the basic unit;
(b) Determine the occurrence deductible;
(c) Subtract FMVB from FMVA;
(d) Multiply the result of 12(c) by the under-report factor or one
minus the over-report factor (1.000 - over-report factor), as
applicable;
(e) Subtract the occurrence deductible from the result in section
12(d); and
(f) If the result of section 12(e) is greater than zero, and subject
to the limit stated in section 12(g):
(1) For additional coverage, your indemnity equals the result of
section 12(e) multiplied by your share.
(2) For catastrophic risk protection coverage, your indemnity equals
the result of section 12(e) multiplied by fifty-five percent and by your
share.
(g) The total of all indemnities for the crop year will not exceed
the amount of insurance, including any peak amount of insurance during
the coverage term of the Peak Inventory Endorsement, if this endorsement
is elected.
[[Page 371]]
(h) In order to prevent your indemnity from being reduced when you
have over-reported your basic unit value, the following must apply: FMVA
plus the insured value of the plants listed on the verifiable sales
records must support, within 10 percent, the basic unit value reported
on the PIVR, revised PIVR, and Peak Inventory Value Report, if
applicable, minus the total of all previous losses. Otherwise, any
indemnity for that basic unit will be reduced by an over-report factor.
(i) If you elected basic units by non-contiguous land, in accordance
with section 3(a)(ii), and you do not keep your records separate by
unit, we will combine all basic units for which records were not kept
separate.
13. Late and Prevented Planting
The late and prevented planting provisions in the Basic Provisions
are not applicable.
14. Written Agreements
(a) Written agreements may only be requested for plants not listed
on the EPLPPS.
(b) In lieu of section 18(a) of the Basic Provisions, you must
request in writing a written agreement with the application for the
initial crop year, and not later than the sales closing date for each
subsequent crop year, except as provided in section 14(d).
(c) In lieu of the requirements of section 18(d) of the Basic
Provisions, any written agreement is valid only until the end of the
insurance period for the crop year such written agreement applies; and
(d) In lieu of section 18(e) of the Basic Provisions, an application
for a written agreement submitted after the date of application for the
initial crop year and the sales closing date for all subsequent crop
years may be approved if:
(1) You demonstrate your physical inability to have applied timely;
and
(2) After physical examination of the nursery plant inventory, we
determine the inventory will be marketable at the value shown on the
PIVR.
15. Examples
Single Unit Example for an Under-Report Situation
Assume you have a 100 percent share and the basic unit value
reported by you is $100,000. Your coverage level is 75 percent. Your
amount of insurance is $75,000 ($100,000 x .75). At the time of loss, we
determine that the value of your inventory immediately before the loss
(FMVA) is $125,000, and the value after the loss (FMVB) is $80,000. Your
indemnity would be calculated as follows:
Step (1): $100,000 / $125,000 = .80 is the under-report factor;
Step (2): The occurrence deductible is the lesser of a) .25 x
$125,000 x .80 = $25,000; or b) $100,000 x (1.00 - .75) = $25,000;
Step (3): $125,000 - $80,000 = $45,000 loss;
Step (4): $45,000 x .80 = $36,000 loss after the under-report factor
is applied;
Step (5): $36,000 - $25,000 = $11,000 loss after the occurrence
deductible; and
Step (6): $11,000 x 1.000 share = $11,000 indemnity payment.
Single Unit Example for an Over-Report Situation
Assume you have a 100 percent share and the basic unit value
reported by you is $125,000. Your coverage level is 75 percent. Your
amount of insurance is $93,750 ($125,000 x .75). At the time of loss, we
determine that the value of your inventory immediately before the loss
(FMVA) is $100,000, and the value after the loss (FMVB) is $50,000. You
provide verifiable sales records containing an insured value of plants
equaling $10,000. Your indemnity would be calculated as follows:
Step (1): ($125,000 / ($100,000 + $10,000)) - 1.100 = .04 is the
over-report factor;
Step (2): The occurrence deductible is the lesser of: a) .25 x
$100,000 x (1.000 + .04) = $26,000; or b) .25 x $125,000 = $31,250;
Step (3): $100,000 - $50,000 = $50,000 loss;
Step (4): $50,000 x (1.000 - .04) = $48,000 loss after the over-
report factor is applied;
Step (5): $48,000 - $26,000 = $22,000 loss after the occurrence
deductible; and
Step (6): $22,000 x 1.000 share = $22,000 indemnity payment.
Peak Inventory Value Report Example
Assume you have a second loss on the same basic unit as the first
example. Your amount of insurance has been reduced by subtracting your
previous indemnity payment of $11,000 from your amount of insurance
($75,000 - $11,000 = $64,000). Your crop year deductible has been
reduced to zero by the previous loss ($25,000 - $36,000, but not less
than zero). You purchase a Peak Inventory Endorsement and report $60,000
in inventory. Your peak amount of insurance is your reported inventory
times your coverage level ($60,000 x .75 = $45,000). The combined amount
of insurance for the coverage term of the peak endorsement is $64,000 +
$45,000 = $109,000. Your crop year deductible is increased by $15,000
($60,000 x .25). At the time of loss, we determine that the value of
your inventory immediately before the loss (FMVA) is $124,000, and the
value after the loss (FMVB) is $58,000. Your indemnity would be
calculated as follows:
Step (1): ($160,000 - $36,000)/$124,000 = 1.00 is the under-report
factor;
Step (2): The occurrence deductible is the lesser of: a) .25 x
$60,000 x 1.00 = $15,000; or b) $60,000 x .25 = $15,000;
[[Page 372]]
Step (3): $124,000 - $58,000 = $66,000 loss;
Step (4): $66,000 x 1.00 = $66,000 loss after the under-report
factor is applied;
Step (5): $66,000 - $15,000 = $51,000 loss after the occurrence
deductible; and
Step (6): $51,000 x 1.000 share = $51,000 indemnity payment.
Your peak amount of insurance is reduced to zero. Your amount of
insurance is reduced by the amount the indemnity exceeds the peak amount
of insurance. $64,000 - ($51,000 - $45,000) = $64,000 - $6,000 =
$58,000.
[63 FR 50975, Sept. 24, 1998; 63 FR 57046, Oct. 26, 1998, as amended at
70 FR 37241, June 28, 2005; 71 FR 74456, Dec. 12, 2006; 83 FR 4570, Jan.
31, 2018; 83 FR 12657, Mar. 23, 2018]
Sec. 457.163 Nursery peak inventory endorsement.
Nursery Crop Insurance
Peak Inventory Endorsement
This endorsement is not continuous and must be purchased for each
crop year to be effective for that crop year.
In return for payment of premium for the coverage contained herein,
this endorsement will be attached to and made part of the Nursery Crop
Insurance Provisions, subject to the terms and conditions described
herein.
1. Definitions
Coverage commencement date. The later of the date you declare as the
beginning of the coverage or 30 days after a properly completed Peak
Inventory Value Report is received by us.
Coverage term. A period of time that begins on the coverage
commencement date and ends on the coverage termination date.
Coverage termination date. The date you declare that the peak amount
of insurance will cease. This date cannot be after the end of the crop
year.
Peak amount of insurance. The additional inventory value reported on
the Peak Inventory Value Report for each basic unit multiplied by your
coverage level and by your share.
Peak Inventory Value Report. A report that increases the value of
insurable plants over the value reported on the PIVR, declares the
coverage commencement and coverage termination dates, and the other
requirements of section 6 of the Nursery Crop Insurance Provisions.
Peak inventory premium adjustment factor. A factor calculated by
subtracting the monthly proration factor for the month following the
month containing the coverage termination date from the proration factor
for the month in which coverage commenced. Peak Inventory Endorsements
with a coverage termination date during the month of May will have a
premium adjustment factor equal to the proration factor for the month
containing the coverage commencement date.
Restock. Replacement of lost or damaged plants that increase the
value of your insurable inventory to an amount greater than your
remaining amount of insurance.
2. Eligibility
(a) You must have insurance under the Nursery Crop Insurance
Provision in effect for the crop year that this endorsement applies;
(b) You must have elected an additional level of coverage.
(c) You must submit a Peak Inventory Value Report, which will serve
as the application for coverage under this endorsement.
(1) The Peak Inventory Value Report may contain one or more plant
type basic units and each plant type basic unit will be considered a
separate Peak Inventory Endorsement.
(2) We may reject the Peak Inventory Value Report if all
requirements in this endorsement and the Nursery Crop Insurance
Provisions are not met.
(d) You may purchase no more than one Peak Inventory Endorsement for
each basic unit during the crop year unless you have suffered insured
losses and have restocked your nursery, in which case an additional Peak
Inventory Endorsement may be purchased after each insured loss.
3. Coverage
(a) The amount of insurance provided under the Nursery Crop
Provisions for each basic unit is increased by the peak amount of
insurance for such unit for the coverage term.
(b) Except as provided herein, this endorsement does not change,
amend or otherwise modify any other provision of your Nursery Crop
Insurance Policy.
4. Peak Insurance Period
Coverage begins on the coverage commencement date and ends at 11:59
p.m. on the coverage termination date.
5. Premium
(a) The premium for this endorsement is determined by multiplying
the peak amount of insurance by the appropriate premium rate and by the
peak inventory premium adjustment factor.
Example of Peak Inventory Endorsement Total Premium Calculation
Assume a grower reports a peak amount of insurance on a basic unit
of $100,000 with a 65 percent coverage level and a share of 1.000.
[[Page 373]]
The base premium rate is $0.051. The proration factors for the Peak
Inventory Endorsement are 0.68 for the month that coverage commenced and
0.52 for the month following the month containing the coverage
termination date, as stated in the actuarial documents. The peak premium
adjustment factor is 0.16 (0.68 - 0.52). The total premium amount for
the Peak Inventory Endorsement is $530.40 ($100,000 x 0.65 x 1.000 x
$0.051 x 0.16).
(b) The premium for this endorsement is due and payable in
accordance with section 7 of the Nursery Crop Insurance Provisions.
6. Reporting Requirements
In addition to the reporting requirements of section 6 of the
Nursery Crop Insurance Provisions, you must submit a Peak Inventory
Value Report on our form.
7. Liability Limit.
The peak amount of insurance is limited to 200 percent of the amount
of insurance established under the Nursery Crop Insurance Provisions.
[63 FR 50979, Sept. 24, 1998; 63 FR 57047, Oct. 26, 1998, as amended at
70 FR 36246, June 28, 2005; 71 FR 74456, Dec. 12, 2006]
Sec. 457.164 Nursery rehabilitation endorsement.
Nursery Crop Insurance Rehabilitation Endorsement
If you elect this endorsement and pay the additional premium
designated in the actuarial documents, this endorsement is attached to
and made a part of your Nursery Crop Insurance Provisions subject to the
terms and conditions herein. In the event of a conflict between the
Nursery Crop Insurance Provisions and this endorsement, this endorsement
will control.
1. Eligibility
(a) You must have purchased additional coverage under the Nursery
Crop Insurance Provisions, and you must comply with all terms and
conditions contained in the applicable Nursery Crop Insurance Provisions
and endorsements.
(b) All field grown nursery plants insured under the Nursery Crop
Insurance Provisions must be insured under this endorsement. Nursery
plants produced in standard nursery containers are not covered under
this endorsement.
(c) You must elect this endorsement:
(1) At the time of application for the initial crop year your field
grown nursery plants will be insured under the Nursery Crop Insurance
Provisions; or
(2) By October 1, 2005, for the 2006 crop year and by the sales
closing date for each subsequent crop year if your field grown plants
are already insured under the Nursery Crop Insurance Provisions.
2. Coverage
(a) This endorsement is only applicable to field grown plants
damaged by an insured cause of loss specified in section 10 of the
Nursery Crop Insurance Provisions.
(b) Rehabilitation costs covered by this endorsement are limited to
expenditures for labor and materials for pruning and setup (righting,
propping, and staking).
(c) To be eligible for a rehabilitation payment:
(1) The damaged plants must have a reasonable expectation of
recovery based on:
(i) The type of damage (e.g., broken limbs from high winds, trees
uprooted by hurricane, etc.);
(ii) The extent of damage (e.g., twenty percent of the limbs broken,
half the canopy removed, etc.); and
(iii) Whether the plant can recover to the point it is marketable;
(2) Verifiable records must be provided showing actual expenditures
for rehabilitation and such expenditures must be reasonable and
customary for the type and extent of damage sustained by the plants;
(3) Rehabilitation procedures must be performed directly following
the occurrence of damage and before additional deterioration of the
damaged plants occurs;
(4) We must determine it is practical to rehabilitate the damaged
plants (It is not practical if the costs of rehabilitation are greater
than the value of the plant); and
(5) The total actual rehabilitation costs for each loss occurrence
on the basic unit must be at least the lesser of 2.0 percent of field
market value A or $5,000.
(d) The maximum amount of each rehabilitation payment for each basic
unit will be the lesser of:
(1) Your total actual rehabilitation costs multiplied by the under-
report factor contained in the Nursery Crop Insurance Provisions; or
(2) An amount equal to 7.5 percent of the value (based on insurable
plant prices determined in accordance with section 6 of the Nursery Crop
Insurance Provisions) of all your insurable field grown plants that were
rehabilitated subsequent to an insured cause of loss, multiplied by the
under-report factor described in the Nursery Crop Insurance Provisions,
multiplied by the coverage level percentage you elect, and multiplied by
your share. Insurable, rehabilitated plants that have not recovered from
damage that occurred prior to attachment of this endorsement will have a
reduced value in accordance with section 6(h) of the Nursery Crop
Insurance Provisions.
(e) The total of all rehabilitation payments for the crop year for
the basic unit will not
[[Page 374]]
exceed 7.5 percent of the value (based on insurable plant prices
determined in accordance with section 6 of the Nursery Crop Insurance
Provisions) of all your insurable field grown plants in such basic unit,
multiplied by the under-report factor described in the Nursery Crop
Insurance Provisions, multiplied by the coverage level percentage you
elect, and multiplied by your share.
3. Cancellation
This endorsement will continue in effect until canceled or coverage
under the Nursery Crop Insurance Provisions is cancelled or terminated.
This endorsement may be canceled by you or us for any succeeding crop
year by giving written notice to the other party on or before the
cancellation date, contained in the Nursery Crop Insurance Provisions,
preceding the crop year for which the cancellation of this endorsement
is to be effective.
[70 FR 37247, June 28, 2005]
Sec. 457.165 Millet crop insurance provisions.
The Millet Crop Insurance Provisions for the 2017 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:
Millet Crop Insurance Provisions
1. Definitions
Bushel. Fifty pounds of millet, or any other quantity which is
designated in the Special Provisions for that purpose.
Harvest. Combining or threshing the millet for grain. A crop that is
swathed prior to combining is not considered harvested.
Late planting period. In lieu of the definition contained in the
Basic Provisions, the period that begins the day after the final
planting date for the insured crop and ends 20 days after the final
planting date.
Local market price. The cash price for millet with a 50-pound test
weight adjusted to zero percent foreign material content basis offered
by buyers in the area in which you normally market the millet. Factors
not associated with grading, including, but not limited to, moisture
content, will not be considered.
Millet. Proso millet produced for grain to be used primarily as bird
and livestock feed.
Nurse crop (companion crop). A crop planted into the same acreage as
another crop, that is intended to be harvested separately, and that is
planted to improve growing conditions for the crop with which it is
grown.
Planted acreage. In addition to the definition contained in the
Basic Provisions, land on which seed is initially spread onto the soil
surface by any method and is subsequently mechanically incorporated into
the soil in a timely manner and at the proper depth. Acreage planted in
any manner not contained in this definition will not be insurable unless
otherwise provided by the Special Provisions.
Swathed. Severance of the stem and grain head from the ground
without removal of the seed from the head and placing into a row.
2. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all the millet in
the county insured under this policy.
3. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
5. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the millet in the county for which a premium rate is
provided by the actuarial documents:
(a) In which you have a share;
(b) That is planted for harvest as grain;
(c) That is not planted as a nurse crop; and
(d) That is not (unless allowed by Special Provisions or written
agreement):
(1) Interplanted with another crop; or
(2) Planted into an established grass or legume.
6. Insurable Acreage
In addition to section 9 of the Basic Provisions, any acreage of the
insured crop damaged before the final planting date, to the extent that
a majority of producers in the area would not normally further care for
the crop, must be replanted unless we agree that it is not practical to
replant.
7. Insurance Period.
In accordance with section 11 of the Basic Provisions, the calendar
date for the end of the insurance period is the date immediately
following planting (unless otherwise specified in the Special
Provisions) as follows:
(a) October 10 for North Dakota, South Dakota, and Wyoming; and
(b) October 31 for all other states.
[[Page 375]]
8. Causes of Loss
In accordance with section 12 of the Basic Provisions, 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 due to a cause of loss
specified in sections 8(a) through (g) that also occurs during the
insurance period.
9. Duties In the Event of Damage or Loss
In accordance with section 14 of the Basic Provisions, 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.
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:
(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 the total production to count (See section 10(c))
from the result of section 10(b)(1);
(3) Multiplying the result of section 10(b)(2) by your price
election; and
(4) Multiplying the result of section 10(b)(3) by your share.
For example:
You have a 100 percent share in 100 acres of millet in the unit,
with a guarantee of 15 bushels per acre and a price election of $4.00
per bushel. You are only able to harvest 800 bushels. Your indemnity
would be calculated as follows:
(1) 100 acres x 15 bushel = 1,500 bushel guarantee;
(2) 1,500 bushel guarantee - 800 bushel production to count = 700
bushel loss;
(3) 700 bushels x $4.00 price election = $2,800 loss; and
(4) $2,800 x 100 percent share = $2,800 indemnity payment.
(c) The total production (bushels) to count from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) Your appraised production will not be 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 10(d));
(iv) Potential production on insured acreage you want to put to
another use or you wish to 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) Mature millet 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 .12 percent for each 0.1 percent
point of moisture in excess of 12 percent. We may obtain samples of the
production to determine the moisture content.
(2) Production will be eligible for quality adjustment if:
[[Page 376]]
(i) Deficiencies in quality, result in the millet weighing less than
50 pounds per bushel; 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) The deficiencies, substances, or conditions result in a net
price for the damaged production that is less than the local market
price;
(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 grader 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) Millet production that is eligible for quality adjustment, as
specified in sections 10(d)(2) and (3), will be reduced by the quality
adjustment factor contained in the Special Provisions if quality
adjustment factors are not available in the county, the eligible millet
production will be reduced as follows:
(i) 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.
(ii) 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 that are usual, customary, and reasonable. The price will not be
reduced for:
(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 millet; except, if the
value of the damaged production can be increased by conditioning, we may
reduce the value 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 millet to those buyers.
(iii) The value of the damaged or conditioned production determined
in section 10(d)(4)(ii) will be divided by the local market price to
determine the quality adjustment factor.
(iv) 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 under section 10(d)(1) will
then be multiplied by the quality adjustment factor from section
10(d)(4)(iii) to determine the 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.
11. Late Planting
In lieu of the provisions contained in section 16(a) of the Basic
Provisions, the production guarantee for each acre planted to the
insured crop during the late planting period, unless otherwise specified
in the Special Provisions, will be reduced by:
(a) One percent per day for the first through the tenth day; and
(b) Three percent per day for the eleventh through the twentieth
day.
12. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. If you have additional levels of coverage and pay an additional
premium, you may increase your prevented planting coverage if such
additional coverage is specified in the actuarial documents.
[67 FR 3037, Jan. 23, 2002, as amended at 67 FR 5925, Feb. 8, 2002; 72
FR 48229, Aug. 23, 2007; 81 FR 84401, Nov. 23, 2016]
Sec. 457.166 Blueberry crop insurance provisions.
The Blueberry Crop Insurance Provisions for the 2023 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:
Blueberry Crop Insurance Provisions
1. Definitions
Damaged blueberries. Blueberries ready to harvest that due to an
insurable cause of loss as shown in section 8 of these Crop Provisions
do not meet the United States Standards for Grades of Blueberries, U.S.
No. 1, or
[[Page 377]]
such other applicable grading standards specified in the Special
Provisions.
Harvest. Picking mature blueberries from the bushes either by hand
or machine.
Mature blueberry production. Blueberries ready to harvest that meet
or exceed the United States Standards for Grades of Blueberries, U.S.
No. 1, or such other applicable grading standards contained in the
Special Provisions.
Pound. Sixteen ounces avoirdupois.
Production guarantee (per acre). The number of pounds determined by
multiplying the approved yield per acre by the coverage level percentage
you elect.
Prune. A cultural practice performed to increase blueberry
production as follows:
(a) For lowbush blueberries, a process by which the acreage is
either burned or mowed; and
(b) For all other blueberries, a process by which parts of the bush
are cut off or the bush is cut back.
2. Unit Division
The enterprise, whole-farm, and optional unit provisions in the
Basic Provisions are not applicable, and blueberry acreage is limited to
basic units as defined in section 1 of the Basic Provisions, unless
otherwise specified in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election percentage for each
blueberry type designated in the Special Provisions. The price elections
you choose for each type must have the same percentage relationship to
the maximum price offered by us for each type. For example, if you
choose 100 percent of the maximum price election for one type, you must
also choose 100 percent of the maximum price election for all other
types.
(b) You must report (by type, if applicable) by the production
reporting date designated in section 3 of the Basic Provisions:
(1) For all types of blueberries: any damage; removal of bushes;
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; and
(2) For highbush and rabbiteye blueberry types:
(i) The number of bearing bushes on insurable and uninsurable
acreage; and
(ii) The age of the bushes and the planting pattern.
(c) We will reduce the yield used to establish your production
guarantee as necessary, based on our estimate of the effect of the
following: Removal of bushes; damage to bushes; changes in practices;
and any other circumstance that may affect 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.
(d) You may not increase your elected or assigned coverage level or
the ratio of your price election to the maximum price election we offer
for the next year if a cause of loss that could or would reduce the
yield of the insured crop is evident prior to the time you request the
increase.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is August 31 preceding the cancellation date.
5. Cancellation and Termination Dates
(a) In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are November 20.
(b) If your blueberry policy is canceled or terminated by us for any
crop year, in accordance with the terms of the policy, after insurance
attached for that crop year but on or before the cancellation and
termination dates whichever is later, insurance will be considered to
have not attached for that crop year and no premium, administrative fee,
or indemnity will be due for such crop year.
(c) We may not cancel your policy when an insured cause of loss has
occurred after insurance attached, but prior to the cancellation date.
However, your policy can be terminated if a cause for termination
contained in sections 2 or 27 of the Basic Provisions exists.
6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the blueberries in the county for which a premium
rate is provided in the actuarial documents:
(1) In which you have a share;
(2) That are grown on bush varieties that:
(i) Were commercially available when the bushes were set out or have
subsequently become commercially available; and
(ii) Are varieties adapted to the area of the following types:
(A) Highbush blueberries;
(B) Lowbush blueberries;
(C) Rabbiteye blueberries; or
(D) Other blueberry types listed on the Special Provisions.
(3) That are produced on bushes that have reached the minimum
insurable age or have produced the minimum yield per acre designated in
the Special Provisions; and
(4) That, if inspected, are considered acceptable by us.
[[Page 378]]
(b) Lowbush blueberry plants (or other types as specified in the
Special Provisions) must be pruned every other year to be eligible for
insurance.
7. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) For the year of application, coverage begins on November 21 of
the calendar year prior to the year the insured crop normally blooms,
except that, if your application is received by us after November 1,
insurance will attach on the twentieth day after your properly completed
application is received in our local office unless we inspect the
acreage during the 20-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 blueberry
acreage.
(2) For each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance period for the prior crop year. Policy
cancellation that results solely from transferring an existing policy to
a different insurance provider for a subsequent crop year will not be
considered a break in continuous coverage.
(3) The calendar date for the end of insurance period for each crop
year is September 30 for Michigan and September 15 for all other states,
unless specified otherwise in the Special Provisions.
(4) Notwithstanding the provisions in this section, coverage may not
begin for a crop year if the policy is cancelled or terminated in
accordance with section 5(b).
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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. There will be
no coverage of any insurable interest acquired after the acreage
reporting date.
(2) If you relinquish your insurable share on any insurable acreage
of blueberries on or before the acreage reporting date for the crop
year, insurance will not be considered to have attached to, and no
premium or indemnity will be due 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.
(3) If you relinquish your insurable share on any insurable acreage
of blueberries after the acreage reporting date for the crop year,
insurance coverage will be provided for any loss due to an insurable
cause of loss that occurred prior to the date that you relinquished your
insurable share and the whole premium will be due for such acreage for
that crop.
8. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, 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 unit;
(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) Earthquake;
(6) Volcanic eruption;
(7) An insufficient number of chilling hours to effectively break
dormancy;
(8) Wildlife, unless appropriate control measures have not been
taken; and
(9) Failure of the irrigation water supply, if caused by a cause of
loss specified in this section that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) Failure to install and maintain a proper drainage system;
(2) Failure to harvest in a timely manner;
(3) Inability to market the blueberries for any reason other than
actual physical damage to the blueberries 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); or
(4) Mechanical damage.
9. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(a) You must notify us:
(1) Within 3 days of the date harvest should have started if the
crop will not be harvested.
(2) Within 24 hours if any cause of loss occurs:
(i) Within 15 days of harvest;
[[Page 379]]
(ii) When the blueberries are mature and ready for harvest; or
(iii) During harvest.
(3) At least 15 calendar days before any production will be
harvested if any portion of your crop will be direct marketed. We will
conduct an appraisal that will be used to determine your production to
count sold by direct marketing. If damage occurs after this appraisal,
we will conduct an additional appraisal. These appraisals and acceptable
records provided by you will be used to determine your production to
count. Failure to give timely notice that production will be harvested
for direct marketing will result in an appraised amount of production to
count that is not less than the production guarantee per acre if such
failure results in our inability to make the required appraisal.
(4) At least 15 days prior to the beginning of harvest if you intend
to claim an indemnity on any unit as a result of previously reported
damage, so that we may inspect the damaged production.
(b) 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.
(c) You may be required to harvest a sample, selected by us, to be
used for appraisal purposes.
10. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event you
are unable to provide acceptable production records 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 type, if applicable, by
its respective production guarantee;
(2) Multiplying each result in section 10(b)(1) by the respective
price election, by type if applicable;
(3) Totaling the results in section 10(b)(2) if there is more than
one type;
(4) Multiplying the total production to count for each blueberry
type, if applicable, by the respective price election;
(5) Totaling the results in section 10(b)(4), if there is more than
one type;
(6) Subtracting the result in section 10(b)(5) from the result in
section 10(b)(3); and
(7) Multiplying the result in section 10(b)(6) by your share.
Example for Section 10(b)
You have 100 percent share in 25 acres of highbush blueberries with
a production guarantee of 4,000 pounds per acre and a price election of
$.90 per pound. You are only able to harvest 62,500 total pounds because
adverse weather reduced the yield. Your indemnity would be calculated as
follows:
A. 25 acres x 4,000 pound production guarantee/acre = 100,000 pound
total production guarantee;
B. 100,000 pounds x $.90 price election = $90,000 guarantee;
C. One type only, so same as (2) above, $90,000;
D. 62,500 pounds production to count x $.90 price election = $56,250
value of production to count;
E. One type only, so same as (4) above, $56,250;
F. $90,000 - $56,250 = $33,750 loss; and
G. $33,750 x 100 percent share = $33,750 indemnity payment.
End of Example.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include:
(1) All appraised blueberry 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 9;
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide production records;
(ii) Production lost due to uninsured causes; and
(iii) 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 harvest 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.
(2) All harvested mature blueberry production from the insurable
acreage.
(d) If you have harvested or unharvested damaged blueberries and the
percent of damaged blueberries exceeds that shown in the Special
Provisions for that type, production to count for the damaged unit or
portion of a unit will be determined as follows:
(1) The blueberries from the specific acreage will not be considered
production to count if no blueberries are harvested and sold from such
acreage;
[[Page 380]]
(2) For damaged blueberries that are harvested and sold, the
production to count for such damaged blueberries will be determined by:
(i) Subtracting the harvest costs contained in the Special
Provisions from the price received for the damaged blueberries;
(ii) Dividing the result in section 10(d)(2)(i) by the price
election; and
(iii) Multiplying the resulting factor from section 10(d)(2)(ii),
not less than zero, by the pounds of damaged blueberries;
(e) If you have harvested or unharvested damaged blueberries and the
percent of damaged blueberries does not exceed that shown in the Special
Provisions for that type, the production to count for the damaged unit
or portion of a unit will be the appraised or harvested production of
blueberries.
(f) If we determine that frost protection equipment, as shown on
your accepted application, was not properly utilized, the indemnity for
the affected acreage in the unit will be reduced by the percentage
reduction allowed for frost protection equipment as specified in the
Special Provisions. You must, at our request, provide us records by date
for each period the frost protection equipment was used.
11. Late and Prevented Planting
The late and prevented planting provisions in the Basic Provisions
are not applicable.
[69 FR 52155, Aug. 25, 2004, as amended at 87 FR 38898, June 30, 2022]
Sec. 457.167 Pecan revenue crop insurance provisions.
The Pecan Revenue Crop Insurance Provisions for the 2023 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: Pecan Revenue Crop Insurance
Provisions
1. Definitions
AMS. The Agricultural Marketing Service of the United States
Department of Agriculture.
Amount of insurance per acre. The amount determined by multiplying
your approved average revenue per acre by the coverage level percentage
you elect.
Approved average revenue per acre. The total of your average gross
sales per acre based on the most recent consecutive four years of sales
records building to six years and dividing that result by the number of
years of average gross sales per acre. If you provide more than four
years of sales records, they must be the most recent consecutive six
years of sales records. If you do not provide at least four years of
gross sales records, your approved average revenue will be:
(1) The average of the two most recent consecutive years of your
gross sales per acre and two years of the T-revenue; or
(2) If you do not provide any gross sales records, the T-revenue.
Average gross sales per acre. Your gross sales of pecans for a crop
year divided by your net acres of pecans grown during that crop year.
For example, if for the crop year your gross sales were $100,000 and
your net acres of pecans were 100, then your average gross sales per
acre for the crop year would be $1,000.
Crop year. The period beginning February 1 of the calendar year in
which the pecan trees bloom and extending through January 31 of the year
following such bloom, and will be designated by the calendar year in
which the pecan trees bloom.
Direct marketing. In addition to the definition contained in section
1 of the Basic Provisions, the sale of the insured crop directly to
consumers without the intervention of an intermediary including a
sheller. An additional example of direct marketing includes shelling and
packing your own pecans.
Gross sales. Total value of in-shell pecans grown during a crop
year.
Harvest. Collecting mature pecans from the orchard.
Hedge. The removal of vegetative growth from the tree to prevent
overcrowding of pecan trees.
In-shell pecans. Pecans as they are removed from the orchard with
the nut-meats in the shell.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
Market price. The market price is:
(1) The average of the AMS prices for the nearest location for
similar quality, quantity, and variety of in-shell pecans published
during the week you sell any of your pecans, you harvest your pecans if
they are not sold, or your pecans are appraised if you are not
harvesting them, unless otherwise provided in the Special Provisions.
For example, if you harvest production on November 14 but do not sell
the production, the average of the AMS prices for the week containing
November 14 will be used to determine the market price for the
production harvested on November 14; or
(2) If AMS prices are not published for the week, the average price
per pound for in-shell pecans of the same variety or varieties insured
offered by buyers on the day you sell any of your pecans, you harvest
any of your pecans if they are not sold, or your pecans
[[Page 381]]
are appraised if you are not harvesting them, in the area in which you
normally market the pecans (If buyers are not available in your
immediate area, we will use the average in-shell price per pound offered
by buyers nearest to your area).
Net acres. The insured acreage of pecans multiplied by your share.
Pound. A unit of weight equal to sixteen ounces avoirdupois of in-
shell pecans.
Scion--Twig or portion of a pecan variety used in top work.
Sequentially thinned. A method of systematically removing pecan
trees for the purpose of improving sunlight penetration and maintaining
the proper spacing necessary for continuous production.
Top work. To graft scions of one pecan variety onto the tree or
branch of another pecan variety.
Transitional revenue (T-revenue). A value determined by FCIC and
published in the actuarial documents.
Two-year coverage module. A two-crop-year subset of a continuous
policy in which you agree to insure the crop for both years of the
module, and we agree to offer the same premium rate, amount of insurance
per acre, coverage level, terms and conditions of insurance for each
year of coverage except for legislatively mandated changes, as long as
all policy terms and conditions are met for each year of the coverage
module, including the timely payment of premium, and you have not done
anything that would result in a revision to these terms, as specified in
this policy.
2. Unit Division
Except as provided in these Crop Provisions, for both years of the
two-year coverage module a unit will be:
(a) In addition to the requirements of section 34(a)(4) of the Basic
Provisions, an enterprise unit if the insured crop is located on at
least two parcels of non-contiguous land and at least two of the parcels
must contain at least the lesser of 20 acres or 20 percent of the
insured crop acreage in the enterprise unit;
(b) A basic unit as defined in section 1 of the Basic Provisions; or
(c) In lieu of the requirements contained in sections 34(b) and (c)
of the Basic Provisions, basic units may be divided into optional units
if, for each optional unit, the following criteria are met:
(1) Each optional unit you select must be located on non-contiguous
land;
(2) Separate records of production are provided for at least the
most recent consecutive two crop years. The records will be used to
verify that trees from each unit meet the minimum production requirement
contained in section 8(d) and to establish the approved average revenue
per acre for the optional units selected; and
(3) Optional units are selected and identified on the acreage report
by the acreage reporting date of the first year of the two-year coverage
module. 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. No further unit division may be made after the acreage
reporting date for any reason.
3. Insurance Guarantees and Coverage Levels
In lieu of section 3 of the Basic Provisions, the following applies:
(a) You may select only one coverage level for both years of the
two-year coverage module for all pecans in the county. By giving us
written notice, you may change the coverage level for the succeeding
two-year coverage module not later than the sales closing date of the
next two-year coverage module.
(b) For coverage in excess of catastrophic risk protection, your
insurance guarantee for the unit will be determined by multiplying your
amount of insurance per acre by the net acres.
(c) For coverage under the Catastrophic Risk Protection Endorsement,
your insurance guarantee for each unit equals your approved average
revenue per acre multiplied by the percentage listed in the Special
Provisions and multiplied by the net acres.
(d) Your amount of insurance per acre will remain the same as stated
in the Summary of Coverage on each unit for each year of the two-year
coverage module unless:
(1) You fail to provide acceptable records necessary to determine a
loss for optional units. This will result in optional units being
adjusted or combined to reflect the actual unit structure at the time of
discovery. Your amount of insurance per acre will be recalculated for
the current crop year and the subsequent crop year of the two-year
coverage module (provided another year remains in the two-year coverage
module).
(2) You increase the previous year's insured acreage by more than
12.5 percent, which will result in the recalculation of your approved
average revenue using the sales records for the added acreage. If such
sales records are not available for the added acreage, the T-revenue
will apply to the added acreage.
(3) You take any other action that may reduce your gross sales below
your approved average revenue, which will result in an adjustment to
your approved average revenue to conform to the amount of the reduction
in gross sales expected from the action.
(4) Your gross sales amount is assigned in accordance with section
3(f).
(e) If you remove a contiguous block of trees from the unit, you
must report such removal on your acreage report in accordance with
section 6, or within 3 days if removal has occurred after the acreage
reporting
[[Page 382]]
date, and your insurable acreage will be reduced by the number of acres
of trees that have been removed.
(f) You must report for each unit your gross sales including the
amount of harvested and appraised potential production to us for each
year of the two-year coverage module on or before the acreage reporting
date for the first year of the next two-year coverage module.
(1) If you do not report your gross sales in accordance with this
paragraph, we will assign a gross sales amount for any year you fail to
report and you will not be eligible for optional units for both years of
the two-year coverage module. The gross sales amount assigned by us will
be not greater than the T-revenue for the current coverage module.
(2) If your gross sales are reported after the acreage reporting
date for the two-year coverage module, we will readjust your average
gross sales per acre for the next crop year.
(3) The gross sales or your assigned gross sales amount will be used
to compute your sales history for the next two-year coverage module.
(4) If you filed a claim for any year, the value of harvested
production and appraised potential production used to determine your
indemnity payment will be the gross sales for that year.
(g) Hail and fire coverage may be excluded from the covered causes
of loss for your insured crop only if you selected additional coverage
of not less than 65 percent of your approved average revenue per acre,
and you have purchased the same or a higher dollar amount of coverage
for hail and fire from us or any other source.
(h) If you have additional coverage for pecans in the county and the
acreage has been designated as ``high-risk'' by FCIC, you will be able
to obtain a High-Risk Land Exclusion Option for the high-risk land under
the additional coverage policy and insure the high-risk acreage under a
separate Catastrophic Risk Protection Endorsement, provided that the
Catastrophic Risk Protection Endorsement is obtained from the same
insurance provider from which the additional coverage was obtained.
(i) Any person may sign any document related to pecan crop insurance
coverage on behalf of any other person covered by this policy provided
that person has a properly executed power of attorney or such other
legally sufficient document authorizing such person to sign.
4. Contract Changes
In lieu of the provisions contained in section 4 of the Basic
Provisions:
(a) We may change the terms of your coverage under this policy for
any two-year coverage module. Any change to your policy within a two-
year coverage module may only be done in accordance with this policy.
(b) Any changes in policy provisions, amounts of insurance, premium
rates, and program dates (except as allowed herein or as specified in
section 3) can be viewed on RMA's website not later than the contract
change date contained in these Crop Provisions. We may revise this
information after the contract change date to correct clerical errors.
(c) The contract change date is October 31 preceding the next two-
year coverage module.
(d) After the contract change date, all changes specified in section
4(b) will also be available upon request from your crop insurance agent.
You will be provided, in writing, a copy of the changes to the Basic
Provisions, Crop Provisions, and a copy of the Special Provisions. If
changes are made that will be effective for the second year of the two-
year coverage module, such copies will be provided not later than 30
days prior to the termination date. If changes are made that will be
effective for a subsequent two-year coverage module, such copies will be
provided not later than 30 days prior to the cancellation date. If
available from us, you may elect to receive these documents and changes
electronically. For changes effective for subsequent two-year coverage
modules, acceptance of the changes will be conclusively presumed in the
absence of written notice from you to change or cancel your insurance
coverage in accordance with the terms of this policy.
5. Life of Policy, Cancellation and Termination Dates
(a) In lieu of section 2(a) of the Basic Provisions, this is a
continuous policy with a two-year coverage module and will remain in
effect for each subsequent two-year coverage module until canceled by
you in accordance with the terms of this policy or terminated by us or
by the operation of the terms of this policy.
(b) In lieu of section 2(c) of the Basic Provisions, after
acceptance of your application, you may not cancel or transfer your
policy to a different insurance provider during the initial two-year
coverage module. Thereafter, the policy will continue in force for each
succeeding two-year coverage module unless canceled, terminated, or
transferred to a different insurance provider in accordance with the
terms of this policy.
(c) In lieu of section 2(d) of the Basic Provisions, this contract
may be canceled by either you or us for the next two-year coverage
module by giving written notice on or before the cancellation date.
(d) Your policy may be terminated before the end of the two-year
coverage module if you are determined to be ineligible to participate in
any crop insurance program authorized under the Act in accordance with
[[Page 383]]
section 2(e) of the Basic Provisions or 7 CFR part 400, subpart U.
(e) The cancellation date is January 31 of the second crop year of
each two-year coverage module.
(f) The termination date is January 31 of each crop year.
6. Report of Acreage
(a) In addition to the requirements of section 6 of the Basic
Provisions you must report, by the acreage reporting date designated in
the Special Provisions:
(1) Any damage to trees, removal of trees, change in practices,
sequential thinning or any other action that may reduce the gross sales
below the approved average revenue upon which the amount of insurance
per acre 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;
(4) Any acreage that is excluded under sections 8 or 9; and
(5) Your gross sales receipts as required under section 3(f).
(b) We will reduce the amount of your insurable acreage based on our
estimate of the removal of a contiguous block of trees or damage to
trees of the insured crop. We will reduce your amount of insurance per
acre based on our estimate of the expected reduction in gross sales from
a change in practice or sequential thinning.
(c) If you fail to notify us of any circumstance stated in section
6(a)(1), we will reduce your insured acreage or your amount of insurance
per acre to an amount to reflect the expected reduction of gross sales,
as applicable, at any time we become aware of the circumstance.
7. Annual Premium and Administrative Fees
In addition to the requirements of section 7 of the Basic
Provisions, the premium and administrative fees, as applicable, are due
annually for each year of the two-year insurance period.
8. Insured Crop
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the pecans in the county for which a premium rate is
provided by the actuarial documents:
(a) In which you have a share;
(b) That are grown for harvest as pecans;
(c) That are grown in an orchard that, if inspected, is considered
acceptable by us;
(d) That are grown on trees that have produced at least 600 pounds
of pecans in-shell per acre (or an amount provided in the Special
Provisions) in at least one of the previous four crop years, unless
otherwise allowed by written agreement. This amount of production must
be achieved subsequent to any top work that occurs within a unit;
(e) That are grown on varieties or a grouping of varieties within a
unit that are not designated as uninsurable in the Special Provisions;
(f) That are in an orchard that consists of a minimum of one (1)
contiguous acre, unless otherwise allowed by the Special Provisions; and
(g) That are not (unless otherwise allowed by the Special Provisions
or by written agreement):
(1) Grown on trees that are or have been hedged; or
(2) Direct marketed to consumers.
9. Insurable Acreage
In lieu of the provisions in section 9 of the Basic Provisions that
prohibit insurance attaching to a crop planted with another crop, pecans
interplanted with another perennial crop are insurable if allowed by the
Special Provisions or by written agreement.
10. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) Coverage begins on February 1 of each crop year. However, for
the year of application, we will inspect all pecan acreage and will
notify you if your application was accepted or not accepted, no later
than 30 days after the sales closing date. If we fail to notify you by
that date, your application will be accepted unless other grounds exist
to not accept the application, as specified in section 2 of the Basic
Provisions. You must provide any information that we require for the
crop or to determine the condition of the orchard.
(2) For each subsequent two-year coverage module that the policy
remains continuously in force, coverage begins on the day immediately
following the end of the insurance period for the prior two-year
coverage module. Policy cancellation that results solely from
transferring an existing policy to a different insurance provider for a
subsequent two-year coverage module will not be considered a break in
continuous coverage.
(3) The calendar date for the end of the insurance period is January
31 of the crop year.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(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. Acreage
acquired after the acreage reporting date will not be insured.
[[Page 384]]
(2) If you relinquish your insurable share on any insurable acreage
of pecans on or before the acreage reporting date for the crop year,
insurance will not be considered to have attached to, and no premium or
indemnity will be due for such acreage for that crop year unless:
(i) A request for a transfer of right to an indemnity is submitted
by all affected parties and approved by us;
(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.
(3) If you relinquish your insurable share on any insurable acreage
of pecans after the acreage reporting date for the crop year, insurance
coverage will be provided for any loss due to an insurable cause of loss
that occurred prior to the date that you relinquished your insurable
share and the whole premium will be due for such acreage for that crop
year.
11. Causes of Loss
(a) In lieu of the first sentence of section 12 of the Basic
Provisions, insurance is provided against an unavoidable decline in
revenue due to 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 unmulched pruning debris has not been removed from the
orchard;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease, but not due to insufficient or improper
application of disease control measures;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption;
(8) Failure of the irrigation water supply, if caused by a cause of
loss specified in sections 11(a)(1) through (7) that occurs during the
insurance period; or
(9) Decline in market price;
(b) If damage occurs before the beginning of the crop year, coverage
is only provided if and to the extent the crop was insured the previous
crop year;
(c) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to the inability to market the pecans 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.
12. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions, 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) If the Special Provisions permit or you have a written agreement
authorizing direct marketing, you must notify us at least 15 days before
harvest begins if any production from any unit will be harvested for
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 the dollar value of your
production to count. Failure to give timely notice that production will
be harvested for direct marketing will result in an appraised dollar
value of production to count that is not less than the amount of
insurance per acre for the direct-marketed acreage if such failure
results in our inability to make the required appraisal.
(c) If you intend to claim an indemnity, you must notify us at least
15 days prior to the beginning of harvest, or immediately if a loss
occurs during harvest, so that we may inspect the damaged production.
(d) You must not sell, destroy or dispose of the damaged crop until
after we have given you written consent to do so.
(e) 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.
(f) You may be required to harvest a sample, selected by us, to be
used for appraisal purposes.
13. Settlement of Claim
(a) Indemnities will be calculated separately for each year in the
two-year coverage module.
(b) We will determine your loss on a unit basis. In the event you
are unable to provide separate acceptable records for any:
(1) Optional unit, we will combine all optional units for which such
records were not provided and this will be the unit structure the
current crop year and the subsequent crop year of the two-year coverage
module (provided another year remains in the two-year coverage module);
or
(2) Basic unit, we will allocate commingled production or revenue to
each basic unit in proportion to our liability on the harvested acreage
for each unit.
(c) In the event of loss or damage covered by this policy, we will
settle your claim by:
[[Page 385]]
(1) Multiplying the amount of insurance per acre by the net acres of
the insured pecans;
(2) Subtracting the dollar value of the total production to count as
determined in section 13(d) from the result of section 13(c)(1):
(i) For additional coverage, the total dollar value of the total
production to count determined in accordance with section 13(d); or
(ii) For catastrophic risk protection coverage, the result of
multiplying the total dollar value of the total production to count
determined in accordance with section 13(d) by the catastrophic risk
protection factor contained in the Special Provisions; and
(d) The dollar value of the total production to count from all
insurable acreage will include:
(1) The value of all appraised production as follows:
(i) Not less than your amount of insurance 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 12;
(C) That is damaged solely by uninsured causes;
(D) For which no sales records or unacceptable sales records are
provided to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production;
(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 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 value of production to count; and
(v) The market price will be used to value all appraised production
in section 13(d)(1); and
(2) The value of all harvested production from the insurable acreage
determined as follows:
(i) The dollar amount obtained by multiplying the number of pounds
of pecans sold by the price received for each day the pecans were sold.
(If the price received is not verifiable by sales receipts or if the
pecan production was direct marketed, the market price will be used.
Unless otherwise provided in the Special Provisions, and excluding
pecans sold under contract, the price received will be not less than 95
percent of the lowest AMS price for the nearest location for similar
quality, quantity, and variety of in-shell pecans published during the
week you sell your pecans. If AMS prices are not published for the week
the pecans were sold, the price received will be not less than 95
percent of the lowest price per pound for in-shell pecans of the same
variety or varieties insured offered by buyers in the area you normally
market the pecans or the area nearest to you if prices are not available
in your immediate area on the day you sell your pecans.);
(ii) Totaling the results of section 13(d)(2)(i), as applicable;
(iii) The dollar amount obtained by multiplying the number of pounds
of pecans harvested, but not sold production, by the market price;
(iv) Totaling the result of section 13(d)(2)(iii), as applicable;
and
(v) Totaling the results of section 13(d)(2)(ii) and (iv).
Pecan Revenue Example
------------------------------------------------------------------------
Average
Average gross
Year Acres pounds sales per
per acre acre
------------------------------------------------------------------------
4...................................... 100 750 $1,050
3...................................... 100 625 $625
2...................................... 100 1250 $750
1...................................... 100 200 $250
------------------------------------------------------------------------
Total Average Gross Sales Per Acre = $2,675
------------------------------------------------------------------------
The approved average revenue equals the total average gross sales
per acre divided by the number of years ($2,675 / 4 = $669).
The amount of insurance per acre equals the approved average revenue
multiplied by the coverage level percent ($669 x .65 = $435).
Assume pecan trees in the unit experienced damage to blooms due to a
late freeze causing low production. You produced, harvested, and sold
300 pounds per acre of pecans from 70 acres and received an actual price
of $0.75 per pound. On the other 30 acres, the pecans suffered damage
due to drought. You elected not to harvest the other 30 acres of pecans.
The 30 acres were appraised at 100 pounds per acre and on the day of the
appraisal the average AMS price was $0.65. The total dollar value of
production to count is (300 pounds of pecans x 70 net acres x $0.75) +
(100 pounds x 30 net acres x $0.65) = $15,750 + $1,950 = $17,700.
The indemnity would be:
The amount of insurance per acre multiplied by the net acres minus
the dollar value of the total production to count equals the dollar
amount of indemnity ($435 x 100 = $43,500.00 - $17,700.00 = $25,800).
14. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[[Page 386]]
15. Substitution of Yields
The substitution of yield provisions of the Basic Provisions are not
applicable.
16. Written Agreements
Notwithstanding the provisions of section 18 of the Basic
Provisions, for counties with actuarial documents for pecans, you must
have at least two years of production and gross sales records and for
counties without actuarial documents, you must have at least four years
of production and gross sales records to qualify for a written
agreement.
[69 FR 52163, Aug. 25, 2004; 69 FR 54179, Sept. 7, 2004, as amended at
69 FR 63041, Oct. 29, 2004; 78 FR 13459, Feb. 28, 2013; 78 FR 33691,
June 5, 2013; 87 FR 38898, June 30, 2022; 87 FR 52854, Aug. 30, 2022]
Sec. 457.168 Mustard crop insurance provisions.
The Mustard Crop Insurance Provisions for the 2017 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:
Mustard Crop Insurance Provisions.
1. Definitions
Base contract price. The price per pound (U.S. dollars) stipulated
in the processor contract (without regard to discounts or incentives)
that will be used to determine your price election.
Harvest. Combining or threshing for seed. A crop that is swathed
prior to combining is not considered harvested.
Mustard. A crop of the family Cruciferae.
Planted acreage. In addition to the definition contained in the
Basic Provisions, mustard seed must be planted in rows. Acreage planted
in any other manner will not be insurable unless otherwise provided by
the Special Provisions, actuarial documents, or by written agreement.
Processor. Any business enterprise regularly engaged in buying and
processing mustard, that possesses all licenses and permits for
processing mustard 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 contracted mustard within a
reasonable amount of time after harvest.
Processor contract. A written agreement between the producer and a
processor, containing at a minimum:
(a) The producer's commitment to plant and grow mustard of the types
specified in the Special Provisions and to deliver the production to the
processor;
(b) The processor's commitment to purchase all the production stated
in the processor contract; and
(c) A base contract price (U.S. dollars).
Salvage price. The cash price per pound (U.S. dollars) for mustard
qualifying for quality adjustment in accordance with section 13 of these
Crop Provisions.
Swathed. Severance of the stem and seed pods from the ground and
placing into windrows without removal of the seed from the pod.
Type. A category of mustard identified as a type in the Special
Provisions.
Windrow. Mustard that is swathed and placed in a row.
2. Unit Division
In addition to the requirements of section 34 of the Basic
Provisions, optional units may also be established by type, if types are
designated on the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one base contract price percentage for
all the mustard in the county insured under this policy unless the
Special Provisions allow different base contract prices by type.
(b) If base contract prices are allowed by type, you can select one
base contract price for each type designated in the Special Provisions.
The base contract prices you choose must have the same percentage
relationship to the base contract price (maximum price) offered for each
type. For example, if you choose 100 percent of the maximum price for a
specific type, you must also choose 100 percent of the maximum price for
all other types.
(c) If there are multiple base contract prices within the same unit,
each will be considered a separate price election that will be
multiplied by the number of insurable acres under applicable processor
contract. These amounts will be totaled to determine the premium,
liability, and indemnity for the unit.
(d) To determine the total production guarantee, apply the lesser of
the:
(1) Contracted acres multiplied by the production guarantee (per
acre);
(2) Planted acres multiplied by the production guarantee (per acre);
(3) Total production stated in the contract; or
(4) For acreage and production contracts only, the contracted acres
multiplied by the contracted production (per acre).
[[Page 387]]
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is November 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are March 15.
6. Report of Acreage
In addition to the provisions in section 6 of the Basic Provisions,
you must provide a copy of all processor contracts to us on or before
the acreage reporting date.
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all mustard in the county for which a premium rate is
provided by the actuarial table:
(1) In which you have a share;
(2) That is planted for harvest as seed;
(3) That is grown under, and in accordance with, the requirements of
a processor contract executed on or before the acreage reporting date
and is not excluded from the processor contract at any time during the
crop year; and
(4) That is not, unless allowed by the Special Provisions or by
written agreement:
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume; or
(iii) Planted following the harvest of any other crop in the same
crop year.
(b) You will be considered to have a share in the insured crop if,
under the processor contract, you retain control of the acres on which
the mustard is grown, your income from the insured crop is dependent on
the amount of production delivered, and the processor contract provides
for delivery of the mustard under specified conditions and at a
stipulated base contract price.
(c) A commercial mustard producer who is also a processor may
establish an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor must execute and adopt a resolution that
contains the same terms as an acceptable processor contract. Such
resolution will be considered a processor contract under this policy;
and
(3) Our inspection reveals that the processing facilities comply
with the definition of a processor contained in these Crop Provisions.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) Any acreage of the insured crop that is damaged before the final
planting date, to the extent that a majority of producers in the area
would not normally further care for the crop, must be replanted unless
we agree that it is not practical to replant.
(b) We will not insure any acreage that does not meet the rotation
requirements, if applicable, contained in the Special Provisions.
(c) Insurable acreage will be:
(1) For acreage only based processor contracts and acreage and
production based processor contracts which specify a maximum number of
acres, the lesser of:
(i) The planted acres; or
(ii) The maximum number of acres specified in the contract;
(2) For production only based processor contracts, the lesser of:
(i) The number of acres determined by dividing the production stated
in the processor contract by the approved yield; or
(ii) The planted acres.
9. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions, the end of the insurance period is October 31 of the
calendar year in which the crop is normally harvested unless otherwise
stated in the Special Provisions.
10. Causes of Loss
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss which occur during 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; and
(h) Failure of the irrigation water supply, if applicable, caused by
a cause of loss specified in section 10(a) through (g) that occurs
during the insurance period.
11. Replanting Payment
(a) In accordance with section 13 of the Basic Provisions, a
replanting payment is allowed if the insured crop is 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,
and it is practical to replant or we
[[Page 388]]
require you to replant in accordance with section 8(a).
(b) The maximum amount of the replanting payment per acre will be
the lesser of 20 percent of the production guarantee (per acre) or 175
pounds, multiplied by the base contract price applicable to the acreage
to be replanted, multiplied by your insured share.
(c) When the mustard 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 that is attributable to
your share. The premium amount will not be reduced.
12. Duties In The Event of Damage or Loss
In accordance with the requirements of section 14 of the Basic
Provisions, the representative samples of the unharvested crop that we
may require 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.
13. Settlement of Claim
(a) We will determine your loss on a unit basis.
(1) In the event you are unable to provide separate acceptable
production records:
(i) For any optional units, we will combine all optional units for
which acceptable production records were not provided; or
(ii) 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.
(2) For any processor contract that stipulates only the amount of
production to be delivered, and not withstanding the provisions of this
section or any unit division provisions contained in the Basic
Provisions, no indemnity will be paid for any loss of production on any
unit if the insured produced a crop sufficient to fulfill the processor
contract(s) forming the basis of the insurance guarantee
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insurable acreage of each type, if applicable,
determined in accordance with section 8(c), by its respective production
guarantee (per acre);
(2) Multiplying each result in section 13(b)(1) by the respective
base contract price for each type, if applicable;
(3) Totaling the results in section 13(b)(2);
(4) Multiplying the production to be counted for each type, if
applicable (see section 13(c), by its respective base contract price (If
you have multiple processor contracts with varying base contract prices
within the same unit, we will value your production to count by using
your highest base contract price first and will continue in decreasing
order to your lowest base contract price based on the amount of
production insured at each base contract price);
(5) Totaling the results in section 13(b)(4);
(6) Subtracting the total in section 13(b)(5) from the total in
section 13(b)(3); and
(7) Multiplying the result in section 13(b)(6) by your share.
Example 1 (with one base contract price for the unit):
You have 100 percent share in 20 acres of mustard in a unit with a
650-pound production guarantee (per acre) and a base contract price of
$0.15 per pound. Due to insurable causes, you are only able to harvest
10,000 pounds and there is no appraised production. Your indemnity would
be calculated as follows:
(1) 20 acres x 650 pounds = 13,000 pound production guarantee;
(2) 13,000 pounds x $0.15 base contract price = $1,950 value of
guarantee;
(3) $1,950 total value of guarantee;
(4) 10,000 pounds x $0.15 base contract price = $1,500 value of
production to count;
(5) $1,500 total value of production to count;
(6) $1,950-$1,500 = $450 loss; and
(7) $450 x 100 percent = $450 indemnity payment.
Example 2 (with two base contract prices for the same unit):
You have 100 percent share in 20 acres of mustard in a unit with a
650-pound production guarantee (per acre), 10 acres with a base contract
price of $0.15 per pound, and 10 acres with a base contract price of
$0.10 per pound. Due to insurable causes, you are only able to harvest
8,500 pounds and there is no appraised production. Your indemnity would
be calculated as follows:
(1) 10 acres x 650 pounds = 6,500-pound production guarantee x $0.15
base contract price = $975 value guarantee;
(2) 10 acres x 650 pounds = 6,500-pound production guarantee x $0.10
base contract price = $650 value guarantee;
(3) $975 + $650 = $1,625 total value guarantee;
(4) 6,500 pounds of production to count x $0.15 base contract price
(higher base contract price) = $975 value of production to count;
(5) 2,000 pounds of production to count x $0.10 base contract price
(lower base contract price) = $200 value of production to count;
(6) $975 + $200 = $1,175 total value of production to count;
(7) $1,625 total value guarantee--$1,175 total value of production
to count = $450 loss; and
(8) $450 x 100 percent = $450 indemnity payment.
(c) The total production to count (in pounds) from all insurable
acreage in the unit will include:
[[Page 389]]
(1) All appraised production as follows:
(i) Not less than the production guarantee (per acre) for acreage:
(A) That is abandoned;
(B) That is 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;
(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
section 13(d)); and
(iv) 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 when 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;
(2) All harvested production from the insurable acreage; and
(3) Any other uninsurable mustard production that is delivered to
fulfill the processor contract.
(d) Mature mustard 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) Mustard production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of 10.0 percent. We may obtain
samples of the production to determine the moisture content.
(2) Mustard production will be eligible for quality adjustment only
if:
(i) Deficiencies in quality result in the mustard not meeting the
requirements for acceptance under the processor contract because of
damaged seeds (excluding heat damage), 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 in mustard
production only if:
(i) The deficiencies, substances, or conditions specified in section
13(d)(2) resulted from a cause of loss specified in section 10 that
occurs within the insurance period; and
(ii) The deficiencies, substances, or conditions specified in
section 13(d)(2) result in a salvage price less than the base contract
price; and
(iii) All determinations of these deficiencies, substances, or
conditions specified in section 13(d)(2) are made using samples of the
production obtained by us, by the processor identified in the processor
contract for the insured acreage, or by a disinterested third party
approved by us; and
(iv) The samples are analyzed by a grader in accordance with the
Directive for Inspection of Mustard Seed, provided by the Federal Grain
Inspection Service or such other directive or standards that may be
issued by FCIC.
(4) Mustard production that is eligible for quality adjustment, as
specified in sections 13(d)(2) and (3), will be reduced by multiplying
the quality adjustment factors contained in the Special Provisions (if
quality adjustment factors are not contained in the Special Provisions,
the quality adjustment factor is determined by dividing the salvage
price by the base contract price (not to exceed 1.000)) by the number of
pounds remaining after any reduction due to excessive moisture (the
moisture-adjusted gross pounds) of the damaged or conditioned
production.
(i) The salvage price will be determined at the earlier of the date
such quality adjusted production is sold or the date of final inspection
for the unit subject to the following conditions:
(A) Discounts used to establish the salvage price will be limited to
those that are usual, customary, and reasonable.
(B) The salvage price will not include any reductions for:
(1) Moisture content;
(2) Damage due to uninsured causes;
(3) Drying, handling, processing, or any other costs associated with
normal harvesting, handling, and marketing of the mustard; except, if
the salvage price can be increased by conditioning, we may reduce the
salvage price, after the production has been conditioned, by the cost of
conditioning but not lower than the salvage price before conditioning;
and
(ii) We may obtain salvage prices from any buyer of our choice. If
we obtain salvage
[[Page 390]]
prices from one or more buyers located outside your local market area,
we will reduce such price by the additional costs required to deliver
the mustard to those buyers.
(iii) Factors not associated with grading under the Directive for
Inspection of Mustard Seed, provided by the Federal Grain Inspection
Service or such other directive or standards that may be issued by FCIC
including, but not limited to, protein and oil will not be considered.
(e) Any production harvested from plants growing in the insured crop
may be counted as production of the insured crop on an unadjusted weight
basis.
14. Late Planting
In lieu of section 16(a) of the Basic Provisions, the production
guarantee (per acre) for each acre planted to the insured crop during
the late planting period will be reduced by 1 percent per day for each
day planted after the final planting date, unless otherwise specified in
the Special Provisions.
15. Prevented Planting
Your prevented planting coverage will be a percentage specified in
the actuarial documents of your production guarantee for timely planted
acreage. When a portion of the insurable acreage within the unit is
prevented from being planted, and there is more than one base contract
price applicable to acreage in the unit, the lowest base contract price
will be used in calculating any prevented planting payment. If you have
additional levels of coverage and pay an additional premium, you may
increase your prevented planting coverage if such additional coverage is
specified in the actuarial documents.
[73 FR 11320, Mar. 3, 2008; 73 FR 17243, Apr. 1, 2008, as amended at 81
FR 84401, Nov. 23, 2016]
Sec. 457.169 Mint crop insurance provisions.
The Mint Crop Insurance Provisions for the 2008 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:
Mint Crop Insurance Provisions
1. Definitions
Adequate Stand. A population of live mint plants that equals or
exceeds the minimum required number of plants or percentage of ground
cover, as specified in the Special Provisions.
Appraisal. A method of determining potential production by
harvesting and distilling a representative sample of the mint crop.
Cover crop. A small grain crop seeded into mint acreage to reduce
soil erosion and wind damage.
Cutting. Severance of the upper part of the mint plant from its
stalk and roots.
Distillation. A process of extracting mint oil from harvested mint
plants by heating and condensing.
Existing mint. Mint planted for harvest during a previous crop year.
Ground cover. Mint plants, including mint foliage and stolons, grown
on insured acreage.
Harvest. Removal of mint from the windrow.
Mint. A perennial spearmint or peppermint plant of the family
Labiatae and the genus Mentha grown for distillation of mint oil.
Mint oil. Oil produced by the distillation of harvested mint plants.
New mint. Mint planted for harvest for the first time.
Planted acreage. In addition to the definition in the Basic
Provisions, land in which mint stolons have been placed in a manner
appropriate for the planting method and at the correct depth into a
seedbed that has been properly prepared.
Pound. 16 ounces avoirdupois.
Sales closing date. In lieu of the definition contained in the Basic
Provisions, if you select the Winter Coverage Option, application for
the Winter Coverage Option will include application for the spring
insurance period and must be submitted by the sales closing date for the
Winter Coverage Option contained in the Special Provisions. Coverage may
not be changed between the end of the Winter Coverage Option insurance
period and the beginning of the spring insurance period. If you do not
elect the Winter Coverage Option, application must be made by the spring
sales closing date contained in the Special Provisions and all policy
changes must be made by that date. If you later elect the Winter
Coverage Option, you may select your coverage under the Winter Coverage
Option.
Stolon. A stem at or just below the surface of the ground that
produces new mint plants at its tips or nodes.
Type. A category of mint identified as a type in the Special
Provisions.
Windrow. Mint that is cut and placed in a row.
2. Unit Division
A basic unit, as defined in section 1 of the Basic Provisions, will
be divided into additional basic units by each mint type designated in
the Special Provisions.
[[Page 391]]
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may only select one price election for all the mint in
the county insured under this policy unless the actuarial documents
provide different price elections by type, in which case you may only
select one price election for each type designated in the actuarial
documents. The price elections you choose for each type must have the
same percentage relationship to the maximum price election offered by us
for each type. For example, if you choose 100 percent of the maximum
price election for one specific type, you must also choose 100 percent
of the maximum price election for other types.
(b) In addition to the provisions in section 3 of the Basic
Provisions, you must report:
(1) The total amount of mint oil produced from insurable acreage for
all cuttings for each unit;
(2) Any damage to or removal of mint plants or stolons; any change
in practices; or any other circumstance that may reduce the expected
yield below the yield upon which the production guarantee is based, and
the number of affected acres;
(3) The stand age;
(4) The date existing mint acreage was planted;
(5) The date new mint acreage was initially planted; and
(6) The type of mint.
(c) If you fail to notify us of any circumstance that may reduce
your yields or insurable acres from previous levels, we will reduce your
production guarantee and insurable acres at any time we become aware of
the circumstance based on our estimate of the effect of damage to or
removal of mint plants or stolons; stand age; change in practices; and
any other circumstance that may affect the yield potential or insurable
acres of the insured crop.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is June 30 preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation date is September 30 and the termination date is November
30. If your policy is terminated after insurance has attached for the
subsequent crop year, coverage will be deemed not to have attached to
the acreage for the subsequent crop year.
6. Insured Crop
(a) In accordance with the provisions of section 8 of the Basic
Provisions, the crop insured will be all mint types in the county for
which a premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvest and distillation for mint oil;
(3) That have an adequate stand by the date coverage begins; and
(4) That have been:
(i) Inspected and accepted by us for the first crop year you are
insured; or
(ii) Certified by you as having an adequate stand on the date
coverage begins after the first crop year you are insured unless an
inspection is required under section 8(b).
(b) In lieu of the provisions of section 8 of the Basic Provisions
that prohibit insurance of a second crop harvested following the same
crop in the same crop year, multiple harvests of mint on the same
acreage will be considered as one mint crop.
(c) In addition to the coverages provided in these Crop Provisions,
you may also elect the Winter Coverage Option in accordance with section
13.
7. Insurable Acreage
(a) Mint interplanted with a cover crop will not be considered
interplanted for the purposes of section 9 of the Basic Provisions if
the cover crop is destroyed prior to its maturity and is not harvested
as grain.
(b) In addition to the provisions of section 9 of the Basic
Provisions, unless allowed by written agreement, we will not insure any
acreage that:
(1) Does not meet rotation requirements contained in the Special
Provisions; or
(2) Exceeds existing mint age limitations contained in the Special
Provisions.
8. Insurance Period
In lieu of the provisions of section 11 of the Basic Provisions:
(a) Coverage begins on each unit or part of a unit for acreage with
an adequate stand on the following calendar dates:
(1) June 16 in Indiana, Montana, and Wisconsin;
(2) May 16 in Washington; and
(3) For all other states, the date as provided in the Special
Provisions.
(b) For the year of application, for when you have reported planting
mint during the Winter Coverage Option insurance period, or for any
insurance period following the payment of an indemnity or a reported
loss where the crop was determined to not have an adequate stand, we
will inspect all mint acreage within the two-week period before coverage
begins (If you have elected the Winter Coverage Option, such inspection
will occur not later than November 15).
(1) Insurance will attach on the date coverage begins, as specified
in section 8(a), unless we inspect the acreage during the two-week
period and determine it does not meet
[[Page 392]]
insurability requirements as specified in section 2 of the Basic
Provisions, the application, or these Crop Provisions.
(2) You must provide any information we require for the crop or to
determine the condition of the crop.
(c) Coverage ends for each unit or part of a unit at the earliest
of:
(1) Total destruction of the insured crop on the unit;
(2) Final adjustment of a loss;
(3) The final cutting for the crop year;
(4) Abandonment of the crop; or
(5) The following calendar date:
(i) September 30 in Indiana and Wisconsin;
(ii) October 15 in Montana;
(iii) October 31 in Washington; and
(iv) For all other states, the date as provided in the Special
Provisions.
9. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects or plant disease (except Verticillium Wilt disease), but
not damage due to insufficient or improper application of control
measures;
(4) Wildlife;
(5) Earthquake;
(6) Volcanic eruption; or
(7) Failure of the irrigation water supply, if caused by an insured
cause of loss listed in sections 9(a)(1) through (6) that occurs during
the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against any loss of production
that:
(1) Occurs after harvest;
(2) Is due to your failure to distill the crop, unless such failure
is due to actual physical damage to the crop caused by an insured cause
of loss that occurs during the insurance period; or
(3) Is due to Verticillium Wilt disease.
10. Duties In The Event of Damage or Loss
In addition to your duties contained in section 14 of the Basic
Provisions, if you discover that any insured mint is damaged, or if you
intend to claim an indemnity on any unit:
(a) You must give us notice of probable loss at least 15 days before
the beginning of any cutting or immediately if probable loss is
discovered after cutting has begun or when cutting should have begun;
and
(b) You must timely harvest and completely distill a sample of the
crop on any acreage you do not intend to harvest, as designated by us,
to determine if an indemnity is due.
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 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) We may defer appraisals until the crop reaches maturity or the
date mint harvest is general in the area.
(c) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insured acreage for each type, if applicable, by
its respective production guarantee;
(2) Multiplying the result of section 11(c)(1) by the respective
price election for each type, if applicable;
(3) Totaling the results of section 11(c)(2);
(4) Multiplying the total production to be counted (see section
11(d)) of each type, if applicable, by its respective price election;
(5) Totaling the results of section 11(c)(4);
(6) Subtracting the result in section 11(c)(5) from the result of
section 11(c)(3); and
(7) Multiplying the result in section 11(c)(6) by your share.
For example:
Assume that you have a 100 percent share in 100 acres of peppermint
in the unit, with a production guarantee of 50 pounds of oil per acre
and a price election of $12 per pound. Because an insured cause of loss
has reduced production, you only harvest and distill 2,500 pounds of
peppermint oil. Your indemnity would be calculated as follows:
(1) 100 acres x 50 pounds = 5,000 pound production guarantee;
(2) 5,000 pound production guarantee x $12 price election = $60,000
value of production guarantee;
(3) 2,500 pounds production to count x $12 price election = $30,000
value of production to count;
(4) $60,000 - $30,000 = $30,000 loss; and
(5) $30,000 x 100 percent share = $30,000 indemnity payment.
(d) The total production to count (in pounds of oil) 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 put to another use without our consent;
(C) For which you fail to meet the requirements contained in section
10 of these Crop Provisions;
(D) That is damaged solely by uninsured causes; or
(E) For which you fail to provide production records that are
acceptable to us;
[[Page 393]]
(ii) All production lost due to uninsured causes;
(iii) All unharvested production;
(iv) All potential production on insured acreage that you intend to
put to another use or abandon with our consent:
(A) If you do not elect to continue to care for the crop, we may
give you our 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 fail to provide
sufficient care for the samples, the amount of production to count will
be not less than the production guarantee per acre); 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
the appraised production at the time the crop reaches maturity.
(2) All harvested production from the insurable acreage.
(e) Harvested production must be distilled to determine production
to count.
(f) Any oil distilled from plants growing in the mint will be
counted as mint oil on a weight basis.
(g) You are responsible for the cost of distilling samples for loss
adjustment purposes.
12. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
13. Winter Coverage Option
(a) The provisions of this option are continuous and will be
attached to and made part of your insurance policy if:
(1) You elect the Winter Coverage Option on your application, or on
a form approved by us, on or before the fall sales closing date for the
crop year in which you wish to insure mint under this option, and pay
the additional premium indicated in the actuarial documents for this
optional coverage; and
(2) You have not elected coverage under the Catastrophic Risk
Protection Endorsement.
(b) This option provides a production guarantee equal to 60 percent
of the production guarantee determined under section 3 of these Crop
Provisions.
(c) If you elect this option, all of the insurable acreage in the
county will be insured by this option.
(d) In addition to the requirements of section 6 of the Basic
Provisions, any acreage of new mint planted after the applicable acreage
reporting date must be certified by you and reported to us within two
weeks of planting.
(e) In lieu of section 6(a) of these Crop Provisions, the crop
insured will be all mint types in the county for which a premium rate is
provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvest and distillation as mint oil;
(3) That have an adequate stand on the date coverage begins (newly
planted mint types must be reported in accordance with section 8(b) but
they must be reported as uninsured unless they have an adequate stand by
the date coverage begins); and
(4) That has been:
(i) Inspected and accepted by us for the first crop year you are
insured (We will inspect all mint acreage and will notify you of the
acceptance or rejection of your application not later than November 15.
If we fail to notify you by that date, your application will be accepted
unless other grounds exist to reject the application, as specified in
the Basic Provisions, the application, or these Crop Provisions);
(ii) Inspected and accepted by us not later than November 15 for the
crop year following the payment of an indemnity or a reported loss
unless the crop was determined to have an adequate stand (If we
determined there was an adequate stand after the loss was reported, no
inspection is necessary); or
(iii) Certified by you as having an adequate stand on the date
coverage begins unless an inspection is required under section
13(e)(4)(ii).
(f) Coverage under this option begins:
(1) On existing mint acreage with an adequate stand at 12:01 a.m. on
the calendar date listed below:
(i) October 1 in Indiana and Wisconsin;
(ii) October 16 in Montana;
(iii) November 1 in Washington; and
(iv) For all other states, the date as provided in the Special
Provisions.
(2) On new mint acreage, that has an adequate stand by the date
coverage begins as specified in section 13(f)(1).
(g) Coverage under this option ends on the unit or part of the unit
at 11:59 p.m. on the calendar date listed below:
(1) June 15 in Indiana, Montana, and Wisconsin;
(2) May 15 in Washington; and
(3) For all other states, the date as provided in the Special
Provisions.
(h) In lieu of section 10(a) of these Crop Provisions, you must give
notice of probable loss within 72 hours after you discover any insured
mint is damaged and does not have an adequate stand, but no later than
the date coverage ends for this option.
(i) In addition to the requirements of section 10 of these Crop
Provisions, you must give us notice if you want our consent to put
[[Page 394]]
any mint acreage to another use before a determination can be made if
there is an adequate stand on the acreage. We will inspect the acreage
and you must agree in writing no payment or indemnity will be made for
the acreage put to another use. The total production to be counted for
acreage put to another use with our consent in accordance with this
section will not be less than the approved yield.
(j) In addition to section 11(a) of these Crop Provisions we will
make a Winter Coverage Option payment only on acreage that had an
adequate stand on the date that insurance attached if the adequate stand
was lost due to an insured cause of loss occurring within the Winter
Coverage Option insurance period and the acreage consists of at least 20
acres or 20 percent of the insurable planted acres in the unit.
(k) In lieu of section 11(b) of these Crop Provisions, we may defer
appraisals until the date coverage ends under this option.
(l) In lieu of section 11(c) of these Crop Provisions, in the event
of loss or damage covered by this policy, we will settle your claim by:
(1) Multiplying 60 percent by your production guarantee per acre;
(2) Multiplying the result in section 13(l)(1) by the number of
acres that do not have an adequate stand;
(3) Multiplying the result in section 13(l)(2) by the price
election; and
(4) Multiplying the result in section 13(l)(3) by your share.
For example:
Assume that you have a 100 percent share in 100 acres of mint with a
production guarantee of 50 pounds of oil per acre and a price election
of $12 per pound. Also assume that you do not have an adequate stand on
50 acres by the date coverage ends for this option because an insured
cause has damaged the stand. Your Winter Coverage Option payment would
be calculated as follows:
(1) 60 percent x 50 pound production guarantee = 30 pound production
guarantee per acre;
(2) 30 pound production guarantee per acre x 50 acres without an
adequate stand = 1,500 pounds;
(3) 1,500 pounds x $12 price election = $18,000; and
(4) $18,000 x 100 percent share = $18,000 Winter Coverage Option
payment.
(m) In lieu of section 11(d) of these Crop Provisions, the
population of live mint plants to be counted from insurable acreage on
the unit will be not less than the population of live mint plants in an
adequate stand for acreage:
(1) That is abandoned;
(2) That is put to another use without our consent;
(3) For which you fail to meet the requirements contained in section
13(h); or
(4) That is damaged solely by uninsured causes.
(n) Acreage for which a Winter Coverage Option payment has been made
is no longer insurable under the Crop Provisions for the current crop
year. Any mint production subsequently harvested from uninsured acreage
for the crop year and not kept separate from production from insured
acreage will be considered production to count.
(o) Acreage for which a Winter Coverage Option payment has been made
will receive an amount of production of zero when computing subsequent
year's approved yield.
(p) Sections 11(e), (f), and (g) of these Crop Provisions do not
apply to this option.
[72 FR 24527, May 3, 2007, as amended at 72 FR 29055, May 24, 2007]
Sec. 457.170 Cultivated wild rice crop insurance provisions.
The Cultivated Wild Rice Crop Insurance Provisions for the 2009 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: Cultivated Wild Rice Crop
Provisions.
1. Definitions
Approved laboratory. A testing facility approved by us to determine
the recovery percentage from samples of cultivated wild rice.
Cultivated Wild Rice. A member of the grass family Zizania Palustris
L., adapted for growing in man-made flood irrigated fields known as
paddies.
Finished weight.
(a) The green weight delivered to a processor multiplied by the
determined recovery percentage;
(b) The green weight stored for seed multiplied by either the
determined recovery percentage or the standard recovery percentage in
accordance with section 11(d); or
(c) The appraised green weight multiplied by either the determined
recovery percentage or the standard recovery percentage in accordance
with section 11(d).
Flood irrigation. Intentionally covering the planted acreage with
water and maintaining it at a proper depth throughout the growing
season.
Green weight. The total weight in pounds of the green cultivated
wild rice production that was appraised, delivered to a processor, or
stored for seed.
Harvest. Combining or threshing the cultivated wild rice for grain
or seed.
Initially planted. The first occurrence of planting the insured crop
on insurable acreage for the crop year.
[[Page 395]]
Planted acreage. In addition to the definition contained in the
Basic Provisions, land on which an adequate amount of seed is initially
spread onto the soil surface by any appropriate method (including
shattering for the second and succeeding years) and subsequently is
mechanically incorporated into the soil at the proper depth, will be
considered planted, unless otherwise provided by the Special Provisions
or actuarial documents.
Processor. A business that converts green weight to a product ready
for commercial sale using appropriate equipment and methods such as
separating immature kernels, fermenting or curing, parching, de-hulling,
and scarifying.
Recovery percentage. The ratio of finished weight to green weight of
the cultivated wild rice. As specified in section 11(d), the recovery
percentage is either:
(a) The determined recovery percentage for a sample as determined by
an approved laboratory; or
(b) The standard recovery percentage provided in the Special
Provisions.
Shatter. The act of mature seeds naturally falling to the ground
from a cultivated wild rice plant.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Insurance Guarantee, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one percentage of the maximum price election
for all the cultivated wild rice insured under this policy in the
county.
(b) The insurance guarantee per acre is expressed as pounds of
finished weight.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is:
(a) November 30 preceding the cancellation date for counties with a
February 28 cancellation date; and
(b) June 30 preceding the cancellation date for counties with a
September 30 cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State Cancellation date Termination date
------------------------------------------------------------------------
Mendocino, Glenn, Butte, and February 28......... February 28.
Sierra Counties,
California; and all
California Counties south
thereof.
Minnesota; All Other September 30........ November 30.
California Counties; and
All Other States.
------------------------------------------------------------------------
6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the cultivated wild rice in the county grown on
insurable acreage for which premium rates are provided by the actuarial
documents:
(1) In which you have a share;
(2) That is planted for harvest as grain; and
(3) That is grown in man-made flood irrigated fields.
(b) Section 8(b)(3) of the Basic Provisions is not applicable to the
cultivated wild rice seed that naturally shatters and is subsequently
mechanically incorporated into the soil.
7. Insurance Period
In accordance with section 11 of the Basic Provisions, the calendar
date for the end of the insurance period is:
(a) For Minnesota, September 30 of the calendar year the crop is
normally harvested;
(b) For California, October 15 of the calendar year the crop is
normally harvested; and
(c) For all other states, the date provided in the Special
Provisions.
8. Causes of Loss
(a) In accordance with section 12 of the Basic Provisions, insurance
is provided only against the following causes of loss that occur during
the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(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; or
(8) Failure of the irrigation water supply, if caused by a cause of
loss specified in sections 8(a)(1) through (7) that occurs during the
insurance period, drought, or the intrusion of saline water.
(b) In addition to the causes not insured against in section 12 of
the Basic Provisions,
[[Page 396]]
we will not insure against any loss of production due to:
(1) 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 and moving about the
field; or
(2) The application of saline water, except as specified in section
8(a) of these crop provisions.
9. Replanting Payments
The provisions of section 13 of the Basic Provisions are not
applicable.
10. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14 of
the Basic Provisions.
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 such
production records 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 its respective production
guarantee;
(2) Multiplying the result in section 11(b)(1) by the respective
price election;
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to be counted, (see section
11(c) through (d)) by the respective price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the 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.
For example:
You have a 100 percent share in 100 acres of cultivated wild rice in
the unit, with a guarantee of 400 pounds per acre and a price election
of $1.00 per pound. You are only able to harvest 20,000 pounds. Your
indemnity would be calculated as follows:
(1) 100 acres x 400 pounds = 40,000 pound guarantee;
(2) 40,000 pounds x $1.00 per pound price election = $40,000 value
of guarantee;
(3) 20,000 pounds x $1.00 per pound price election = $20,000 value
of production to count;
(4) $40,000 - $20,000 = $20,000 loss; and
(5) $20,000 x 100 percent share = $20,000 indemnity payment.
(c) The total production to count (finished weight) 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 green weight
production must be adjusted in accordance with section 11(d)); and
(iv) 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 when 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 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 green weight will be multiplied by the recovery
percentage subject to the following:
(1) We may obtain samples of the production to determine the
recovery percentage.
(2) The determined recovery percentage will be used to calculate
your loss only if:
(i) All determined recovery percentages are established using
samples of green weight production obtained by us or by the processor
for sold or processed production; and
(ii) The samples are analyzed by an approved laboratory.
(3) If the conditions of section 11(d)(2) are not met, the standard
recovery percentage will be used.
[[Page 397]]
12. Late Planting
The provisions of section 16 of the Basic Provisions are not
applicable.
13. Prevented Planting
The provisions of section 17 of the Basic Provisions are not
applicable.
[73 FR 11316, Mar. 3, 2008]
Sec. 457.171 Cabbage crop insurance provisions.
The Cabbage Crop Insurance Provisions for the 2023 and succeeding
crop years in counties with a contract change date of November 30, and
for the 2024 and succeeding crop years in counties with a contract
change date of April 30, 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: Cabbage Crop Insurance Provisions.
1. Definitions
Cabbage. Plants of the family Brassicaceae and the genus Brassica,
grown for their compact heads and used for human consumption.
Crop year. In lieu of the definition contained in section 1 of the
Basic Provisions, a period of time that begins on the first day of the
earliest planting period and continues through the last day of the
insurance period for the latest planting period. The crop year is
designated by the calendar year in which the cabbage planted in the
latest planting period is normally harvested.
Damaged cabbage production. Fresh market cabbage that fails to grade
U.S. Commercial or better in accordance with the United States Standards
for Grades of Cabbage, or processing cabbage that fails to grade U.S.
No. 2 or better in accordance with the United States Standards for
Grades of Cabbage for Processing due to an insurable cause of loss.
Harvest. Cutting of the cabbage plant to sever the head from the
stalk.
Hundredweight. One hundred pounds avoirdupois.
Inspected transplants. Cabbage plants that have been found to meet
the standards of the public agency responsible for the inspection
process within the State in which they are grown.
Marketable cabbage. Cabbage that is sold or grades at least:
(a) U.S. Commercial for fresh market cabbage; or
(b) U.S. No. 2 for processing cabbage.
Planted acreage. In addition to the definition contained in section
1 of the Basic Provisions, cabbage plants and seeds must initially be
planted in rows wide enough to permit mechanical cultivation. Cabbage
planted or seeds planted in any other manner will not be insurable
unless otherwise provided by the Special Provisions, actuarial
documents, or by written agreement.
Processor. Any business enterprise regularly engaged in processing
cabbage for human consumption, that possesses all licenses and permits
for processing cabbage 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 cabbage
within a reasonable amount of time after harvest.
Processor contract. A written contract between the producer and the
processor, containing at a minimum:
(a) The producer's commitment to plant and grow cabbage, and to sell
and deliver the cabbage production to the processor;
(b) The processor's commitment to purchase all the production stated
in the processor contract; and
(c) A price per hundredweight that will be paid for the production.
Timely planted. In lieu of the definition contained in section 1 of
the Basic Provisions, cabbage planted during a planting period
designated in the Special Provisions.
Type. A category of cabbage as designated in the Special Provisions.
2. Unit Division
(a) A basic unit, as defined in section 1 of the Basic Provisions,
will also be divided into additional basic units by planting period if
separate planting periods are designated in the Special Provisions.
(b) In addition to the requirements of section 34 of the Basic
Provisions, optional units may also be established by type if separate
types are designated in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one price election for all the cabbage in
the county insured under this policy unless the actuarial documents
provide different price elections by type, in which case you may select
one price election for each cabbage type designated in the actuarial
documents.
(b) The price elections you choose for each type must bear the same
percentage relationship to the maximum price election offered by us for
each type. For example, if you selected 100 percent of the maximum price
election for one type, you must also select 100 percent of the maximum
price election for all other types.
[[Page 398]]
4. Contract Changes
In accordance with the provisions of section 4 of the Basic
Provisions, the contract change dates are the following calendar dates
preceding the cancellation dates:
(a) April 30 in Florida; Georgia; and Texas;
(b) November 30 in Alaska; Michigan; New Jersey, New York; North
Carolina; Ohio; Oregon; Pennsylvania; Virginia; Washington; and
Wisconsin; or
(c) As designated in the actuarial documents for all other states
and counties.
5. Cancellation and Termination Dates
In accordance with the provisions of section 2 of the Basic
Provisions, the cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and termination
State and counties dates
------------------------------------------------------------------------
Georgia, Texas.......................... July 1.
Florida................................. August 15.
Oregon, Washington...................... February 1.
North Carolina.......................... February 28.
Alaska, Michigan, New Jersey, New York, March 15.
Ohio, Pennsylvania, Virginia, and
Wisconsin.
All other states and counties........... As designated in the Special
Provisions.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the provisions of section 6 of the Basic Provisions,
to insure your processing cabbage, you must provide a copy of all your
processor contracts to us on or before the acreage reporting date.
7. Insured Crop
(a) In accordance with the provisions of section 8 of the Basic
Provisions, the crop insured will be all the cabbage types in the county
for which a premium rate is provided by the actuarial documents, in
which you have a share, and that are:
(1) Planted with inspected transplants, if such transplants are
required by the Special Provisions;
(2) If direct seeded, planted with hybrid seed unless otherwise
permitted by the Special Provisions;
(3) Planted within the planting periods as designated in the Special
Provisions;
(4) Planted to be:
(i) Harvested and sold as fresh cabbage; or
(ii) Grown and sold as processing cabbage in accordance with the
requirements of a processor contract executed on or before the acreage
reporting date and not excluded from the processor contract at any time
during the crop year; and
(5) Unless allowed by the Special Provisions:
(i) Not interplanted with another crop; and
(ii) Not sold by direct marketing.
(b) Under the processor contract, you will be considered to have a
share in the insured crop to the extent you retain control of the
acreage on which the cabbage is grown, your income from the insured crop
is dependent on the amount of production delivered, and the processor
contract provides for delivery of the cabbage under specified conditions
and at a stipulated price.
(c) A processing cabbage producer who is also a processor may
establish an insurable interest if the following additional requirements
are met:
(1) The producer must comply with these Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor must execute and adopt a resolution that
contains the same terms as an acceptable processor contract. Such
resolution will be considered a processor contract under this policy;
and
(3) Our inspection reveals that the processing facilities comply
with the definition of ``processor'' contained in these Crop Provisions.
8. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions:
(a) We will not insure any acreage that does not meet the rotation
requirements contained in the Special Provisions.
(b) Any acreage of the insured crop damaged before the end of the
planting period, to the extent that a majority of producers in the area
would normally not further care for the crop, must be replanted unless
we agree that it is not practical to replant.
(c) For processing cabbage, insurable acreage will be:
(1) For acreage only based processor contracts, and acreage and
production based processor contracts which specify a maximum number of
acres, the lesser of:
(i) The planted acres; or
(ii) The maximum number of acres specified in the contract;
(2) For production only based processor contracts, the lesser of:
(i) The number of acres determined by dividing the production stated
in the processor contract by the approved yield; or
(ii) The planted acres.
[[Page 399]]
9. Insurance Period
(a) In lieu of the provisions of section 11 of the Basic Provisions,
coverage begins on each unit or part of a unit the later of:
(1) The date we accept your application; or
(2) When the cabbage is planted in each planting period.
(b) In addition to the provisions of section 11 of the Basic
Provisions, the end of the insurance period will be the earlier of:
(1) The date the crop should have been harvested; or
(2) The following applicable calendar date after planting;
(i) Alaska: October 1;
(ii) Florida:
(A) February 15 for the fall planting period;
(B) April 15 for the winter planting period; and
(C) May 31 for the spring planting period;
(iii) Georgia:
(A) January 15 for the fall planting period; and
(B) June 15 for the spring planting period;
(iv) Michigan, New Jersey, and Ohio:
(A) September 30 for the spring planting period; and
(B) November 25 for the summer planting period;
(v) New York and Pennsylvania: November 25;
(vi) North Carolina:
(A) July 10 for the spring planting period; and
(B) December 31 for the fall planting period;
(vii) Oregon:
(A) March 1 for all fall Red (Fresh) and Green (Fresh) types; and
(B) December 31 for all other types and planting periods;
(viii) Texas:
(A) December 31 for the summer planting period;
(B) February 15 for the fall planting period; and
(C) April 30 for the winter planting period;
(ix) Virginia:
(A) July 31 for the early spring planting period; and
(B) November 15 for the summer planting period;
(x) Washington: December 31;
(xi) Wisconsin: November 5; and
(xii) All other states and counties as provided in the Special
Provisions.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Wildlife;
(4) Insects or plant disease, but not damage due to insufficient or
improper application of control measures;
(5) Earthquake;
(6) Volcanic eruption; or
(7) Failure of the irrigation water supply, if caused by a cause of
loss specified in sections 10(a)(1) through (6) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) Failure to market the cabbage for any reason other than actual
physical damage from an insured cause of loss that occurs during the
insurance period (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, etc.); or
(2) Damage that occurs or becomes evident after the end of the
insurance period, including, but not limited to, damage that occurs or
becomes evident after the cabbage has been placed in storage.
11. Replanting Payments
(a) In accordance with the provisions of section 13 of the Basic
Provisions, 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 of the production guarantee for the acreage
and it is practical to replant.
(b) No replanting payment will be made on acreage planted prior to
the initial planting date or after the end of the final planting period
as designated by the Special Provisions.
(c) In accordance with the provisions of section 13(c) of the Basic
Provisions, the maximum amount of the replanting payment per acre is the
number of hundredweight specified in the Special Provisions multiplied
by your price election, multiplied by your insured share. The fresh
market cabbage price election will be used to determine processing
cabbage replanting payments in counties where both fresh market and
processing cabbage are insurable.
(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 attributable to your
share. The premium will not be reduced.
(e) In lieu of the provisions contained in section 13 of the Basic
Provisions that limit a replanting payment to one each crop year, only
one replanting payment will be made for acreage replanted during each
planting period within the crop year, if separate planting periods are
allowed by the Special Provisions.
[[Page 400]]
12. Duties in the Event of Damage or Loss
(a) Failure to meet the requirements of this section 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) In lieu of the provisions of section 14(b)(1) of the Basic
Provisions, so that we may inspect the insured crop, you must give us
notice within 72 hours of your initial discovery of damage if such
discovery occurs more than 15 days prior to harvest of the acreage.
(c) In addition to the provisions of section 14 of the Basic
Provisions, so that we may inspect the insured crop, you must give us
notice:
(1) Immediately if damage is discovered 15 days or less prior to the
beginning of harvest or during harvest.
(2) At least 15 days prior to the beginning of harvest, if direct
marketing of the insured crop is allowed by the Special Provisions, and
you intend to direct market any of the crop.
(3) At least 15 days before the earlier of:
(i) The date harvest would normally start if any acreage on the unit
will not be harvested; or
(ii) The beginning of harvest, if any production will be harvested
for a use other than as indicated on the acreage report.
(d) After you have provided the applicable notice required by
sections 12(b) and (c), we will conduct an appraisal to determine your
production to count for the purposes of section 13(d).
(1) Except as provided in section 12(e), you must not dispose of or
sell the damaged crop, or store the insured crop, until after we have
appraised it and given you written consent to do so.
(2) If additional damage occurs after this appraisal, except for
stored cabbage, we will conduct another appraisal.
(3) These appraisals, and any acceptable records provided by you,
will be used to determine your production to count in accordance with
section 13(d).
(e) In accordance with the requirements of section 14(c) of the
Basic Provisions, if you initially discover damage to any insured
cabbage 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 3 rows 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 completion of harvest on the
unit.
13. Settlement of Claim
(a) We will determine your loss on a unit basis.
(1) In the event you are unable to provide separate acceptable
production records:
(i) For any optional units, we will combine all optional units for
which such production records were not provided; and
(ii) 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.
(2) For any processor contract that stipulates only the amount of
production to be delivered, and notwithstanding the provisions of this
section or any unit division provisions contained in the Basic
Provisions, no indemnity will be paid for any loss of production on any
unit if you produced a crop sufficient to fulfill the processor
contract(s) forming the basis of the insurance guarantee;
(b) The extent of any damaged cabbage production must be determined
not later than the date the cabbage is placed in storage if the
production is stored prior to sale, or the date the cabbage is delivered
to a buyer, wholesaler, packer, processor, or other handler if
production is not stored.
(c) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insurable acreage by its respective production
guarantee (per acre), by type if applicable;
(2) Multiplying each result in section 13(c)(1) by the respective
price election, by type if applicable;
(3) Totaling the results in section 13(c)(2);
(4) Multiplying the total production to count of each type, if
applicable (see section 13)(d)), by its respective price election;
(5) Totaling the results in section 13(c)(4);
(6) Subtracting the results in section 13(c)(5) from the results of
section 13(c)(3); and
(7) Multiplying the result in section 13(c)(6) by your share.
For example:
For a basic unit you have 100 percent share in 100 acres of cabbage,
50 acres for fresh market and 50 acres for processing as sauerkraut,
with a production guarantee (per acre) of 400 hundredweight per acre for
fresh market and 400 hundredweight per acre for processing as sauerkraut
and a price election of $5.00 per hundredweight for fresh market and
$1.90 per hundredweight for processing as sauerkraut. You are only able
to harvest 9,000 hundredweight of fresh market cabbage and 9,000
hundredweight of cabbage for sauerkraut because an insured cause of loss
has reduced production. Your total indemnity would be calculated as
follows:
(1) 50 acres x 400 hundredweight = 20,000 hundredweight guarantee
for the fresh market acreage.
50 acres x 400 hundredweight = 20,000 hundredweight guarantee for
the processing as sauerkraut acreage.
[[Page 401]]
(2) 20,000 hundredweight guarantee x $5.00 price election = $100,000
value of guarantee for the fresh market cabbage.
20,000 hundredweight guarantee x $1.90 price election = $38,000
value of guarantee for processing as sauerkraut.
(3) $100,000 + $38,000 = $138,000 total value of guarantee.
(4) 9,000 hundredweight x $5.00 price election = $45,000 value of
production to count for the fresh market acreage.
9,000 hundredweight x $1.90 price election = $17,100 value of
production to count for the acreage for processing as sauerkraut.
(5) $45,000 + $17,100 = $62,100 total value of production to count.
(6) $138,000 -$62,100 = $75,900 loss.
(7) $75,900 x 100 percent share = $75,900 indemnity payment.
(d) The total production to count (in hundredweight) of marketable
cabbage 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 meet the requirements contained in section
12;
(C) That is put to another use without our consent;
(D) That is damaged solely by uninsured causes; or
(E) For which you fail to provide production records that are
acceptable to us;
(ii) All production lost due to uninsured causes;
(iii) All unharvested marketable production;
(iv) All 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 when 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 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.
(e) Mature production that is considered damaged cabbage production
but is sold will be adjusted for quality as follows:
(1) Dividing the amount received per hundredweight of such damaged
cabbage production by the applicable price election; and
(2) Multiplying the result by the number of hundredweight of damaged
cabbage production.
14. Late and Prevented Planting
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[74 FR 8709, Feb. 26, 2009, as amended at 74 FR 26281, June 2, 2009; 75
FR 15891, Mar. 30, 2010; 87 FR 38899, June 30, 2022; 87 FR 72364, Nov.
25, 2022]
Sec. 457.172 Coverage Enhancement Option.
The Coverage Enhancement Option for the 2009 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: Coverage Enhancement Option.
Both FCIC and reinsured policies:
Coverage Enhancement Option
1. Definitions
CEO coverage level. The coverage level percentage contained in the
actuarial documents where the Coverage Enhancement Option (CEO) is
available and selected by you. This percentage is applicable under the
combined MPCI/CEO policy when losses under the MPCI policy exceed the
deductible and an indemnity is owed.
CEO dollar amount of insurance. The value of the additional
insurance coverage for each unit provided by the CEO, which is
determined by multiplying the CEO coverage level by the total value of
the insured crop by unit and subtracting the MPCI dollar amount of
insurance.
MPCI. Multiple Peril Crop Insurance, the plan of insurance offered
by the Federal Crop Insurance Corporation as published at 7 CFR part
457.
MPCI coverage level. The coverage level percentage you selected in
the underlying MPCI policy to which CEO is attached.
MPCI dollar amount of insurance. The value of the insurance coverage
for each unit provided under the MPCI policy (the amount of
[[Page 402]]
insurance selected by you for dollar or similar plans of insurance,
multiplied by the number of acres in the unit if such amount of
insurance is on a per acre basis, or the amount determined by
multiplying your production guarantee (per acre), times the price
election, times the number of acres in the unit).
MPCI indemnity. The indemnity determined for each unit under the
MPCI policy to which CEO is attached, not including replant and
prevented planting payments or any indemnity payable under CEO.
MPCI indemnity factor. A factor determined by dividing the MPCI
indemnity by the MPCI dollar amount of insurance for each unit. This
factor is used to ensure that the indemnity paid under the CEO is
proportional to the amount of loss and indemnity paid under the MPCI
policy.
Total value of the insured crop by unit. The value of the crop that
is determined by dividing the MPCI dollar amount of insurance for each
unit by the MPCI coverage level.
2. CEO is only available for insured crops where the actuarial
documents contain a CEO coverage level. If there is a conflict between
the terms of CEO and any other provision of your policy, the terms of
the CEO will control.
3. To be eligible for CEO coverage on the insured crop, you must:
(a) Have an MPCI policy in force for the insured crop (or for citrus
fruit, citrus trees, and stone fruit or other crops, as applicable, the
insured type) and comply with all terms and conditions of such policy.
(b) Elect CEO in writing and choose a CEO coverage level (at least 5
percent higher than the MPCI coverage level), by the sales closing date
for the insured crop.
(c) Elect a level of coverage greater than the Catastrophic Risk
Protection (CAT) coverage level and a 100 percent price election. CEO is
not available for the CAT level of coverage.
4. CEO is continuous and will remain in effect for as long as you
continue to have a MPCI policy in effect for the insured crop, the
actuarial documents contain a CEO coverage level, or until it is
canceled by you or terminated by us on or before the cancellation or
termination date, as applicable.
5. The premium for your policy will be determined by:
(a) Totaling the MPCI dollar amount of insurance and the CEO dollar
amount of insurance; and
(b) Multiplying the result of section 5(a) by the premium rate for
the insured crop applicable to your MPCI coverage level
6. With respect to the coverage provided under CEO:
(a) All acreage of the insured crop insured under your MPCI policy
will be covered under the CEO;
(b) The amount of any replant or prevented planting payment that is
payable under the MPCI policy will not be affected by the CEO;
(c) An indemnity will be payable under the CEO only after the
underlying MPCI deductible is met and an MPCI indemnity is paid; and
(d) The total indemnity for each unit (MPCI coverage plus CEO)
cannot exceed the combination of both the MPCI and CEO dollar amounts of
insurance.
7. If you elect CEO and a MPCI indemnity is paid on any unit, CEO
will pay a portion of the loss not paid under the deductible of the MPCI
policy depending on the CEO coverage level you select (For example, if
you selected a 50 percent MPCI coverage level, selected an 85 percent
CEO coverage level, and had 60 percent loss of the insured crop, the
total amount of indemnity paid under both the MPCI policy and the CEO
would be equal to approximately 51 percent of the total value of the
insured crop by unit). See the example in section 8.
8. In addition to the settlement of claim section for the applicable
Crop Provisions, your indemnity will be computed for each unit as
follows:
(a) Determine the MPCI indemnity factor;
(b) Determine the total value of the insured crop by unit;
(c) Determine the CEO dollar amount of insurance; and
(d) Multiply the MPCI indemnity factor times the CEO dollar amount
of insurance to determine the indemnity under the CEO.
Example: Assume a policy with one unit; an MPCI coverage level of 50
percent and a CEO coverage level of 85 percent; 100% share; a $120,000
MPCI dollar amount of insurance; and a $72,000 payable indemnity under
the MPCI portion of the policy.
Your indemnity would be calculated as follows:
(a) $72,000 MPCI loss / by $120,000 MPCI dollar amount of insurance
= .60 MPCI indemnity factor;
(b) $120,000 MPCI dollar amount of insurance, divided by the MPCI
coverage level of .50 results in $240,000 total value of the insured
crop by unit;
(c) $240,000 total value of the insured crop by unit multiplied by
the CEO coverage level .85, equals $204,000, and subtracting $120,000
MPCI dollar amount of insurance equals $84,000 CEO dollar amount of
insurance;
(d) .60 MPCI indemnity factor x $84,000 CEO dollar amount of
insurance = $50,400 unit indemnity under the CEO.
Note: The total unit indemnity is $122,400 ($72,000 MPCI indemnity
plus $50,400 CEO indemnity).
[73 FR 43610, July 28, 2008, as amended at 73 FR 80295, Dec. 31, 2008]
[[Page 403]]
Sec. 457.173 Florida Avocado crop insurance provisions.
The Florida Avocado Crop Insurance Provisions for the 2023 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: Florida Avocado Crop Insurance
Provisions.
1. Definitions.
Bushel. A unit of measure equal to 55 pounds of avocados, unless
otherwise specified in the Special Provisions.
Buckhorn. To prune any limb at a diameter of at least four inches.
Crop year. A period beginning with the date insurance attaches to
the avocado crop and extending through the normal harvest time. The crop
year is designated by the calendar year after insurance attaches.
Harvest. Picking of the avocados from the trees or ground by hand or
machine.
Pound. A unit of weight equal to sixteen ounces avoirdupois.
Set out. Transplanting a tree into the grove.
Type. Early varieties, mid varieties, or late varieties of avocados,
as specified in the Special Provisions.
2. Unit Division.
Provisions in section 34 of the Basic Provisions that allow optional
units by section, section equivalent, or FSA farm number and by
irrigated and non-irrigated practices are not applicable. Optional units
may be established by type when provided for in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices.
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one coverage level for all the avocados in
the county insured under this policy unless the Special Provisions
provide that you may select a different coverage level for each avocado
type designated in the Special Provisions. However, if you elect the
Catastrophic Risk Protection (CAT) level of coverage, the CAT level of
coverage will be applicable to all types of avocados you produce in the
county.
(b) You may select only one price election for all the avocados in
the county insured under this policy unless the actuarial documents
provide different price elections by type, in which case you may select
one price election for each avocado type designated in the actuarial
documents. The price elections you choose for each type must have the
same percentage relationship to the maximum price offered by us for each
type. For example, if you choose 100 percent of the maximum price
election for one type, you must choose 100 percent of the maximum price
election for the other type. However, if you elect the CAT level of
coverage, the price election percentage will be equal to 55 percent of
the applicable price election for each type of avocado you produce in
the county.
(c) You must report, by the production reporting date designated in
section 3 of the Basic Provisions, by type, if applicable:
(1) Any damage, removal of trees, trees that have been buckhorned,
change in grove practices, or any other circumstance that may reduce the
expected yield per acre to less than the yield upon which the production
guarantee per acre is based, and the number of affected acres;
(2) The number of trees on insurable and uninsurable acreage;
(3) The age of the trees;
(4) Any acreage that is excluded under section 6 of these Crop
Provisions; and
(5) For acreage interplanted with another crop:
(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 production guarantee per acre.
(d) We will reduce the yield used to establish your production
guarantee as necessary, based on the effect of interplanting a perennial
crop; removal of trees; trees that have been buckhorned; damage; or a
change in practices on the yield potential of the insured crop. If you
fail to notify us of any circumstance as set out in paragraph (c) of
this section, 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 of the Basic Provisions, the contract
change date is August 31 preceding the cancellation date.
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are the first November 30th after
insurance attaches.
6. Insured Crop.
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the commercially grown avocado types for which a
premium rate is provided by the actuarial documents for the county:
(1) In which you have a share;
(2) That are grown for harvest as avocados; and
[[Page 404]]
(3) That are grown on trees that, if inspected, are considered
acceptable to us.
(b) In addition to the avocados not insurable in section 8 of the
Basic Provisions, we do not insure any avocados produced on trees that
have not:
(1) Reached the fourth leaf year; and
(2) Produced the minimum production per acre as specified in the
Special Provisions in at least one of the previous three crop years.
7. Insurable Acreage.
In lieu of the provisions in section 9 of the Basic Provisions that
prohibits insurance attaching to a crop planted with another crop,
avocados interplanted with another perennial crop are insurable unless
we inspect the acreage and determine it does not meet the requirements
of insurability contained in these Crop Provisions.
8. Insurance Period.
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) For the year of application:
(i) If you apply for coverage on or before November 21st, coverage
begins for the crop year on December 1 of the calendar year; or
(ii) If you apply for coverage after November 21 but prior to
December 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
the requirements for insurability contained in your policy.
(iii) You must provide any information we require so we may
determine the condition of the grove to be insured.
(2) For continuous policies, coverage begins for the crop year on
December 1 of the calendar year. Policy cancellation that results solely
from transferring an existing policy to a different insurance provider
for a subsequent crop year will not be considered a break in continuous
coverage.
(3) The calendar date for the end of the insurance period, unless
otherwise specified in the Special Provisions, is:
(i) The first November 30th after insurance attaches for early
varieties and mid varieties of avocados.
(ii) The second March 31st after insurance attaches for late
varieties of avocados.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(1) If you acquire an insurable share in any insurable acreage of
avocados 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 acreage of
avocados 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 of the Basic
Provisions, 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 grove;
(3) Wildlife, unless control measures have not been taken;
(4) Earthquake;
(5) Volcanic eruption;
(6) Failure of the irrigation water supply caused by an insured
peril specified in section 9(a)(1) through (5) that occurs during the
insurance period.
(7) Insects, but not damage due to insufficient or improper
application of pest control measures; and
(8) Plant disease, but not due to insufficient or improper
application of disease control measures.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) Theft; or
(2) Inability to market the avocados 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, etc.
10. Duties in the Event of Damage or Loss.
In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(a) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested.
(1) We will conduct a preharvest appraisal that will be used to
determine your production. If damage occurs after the preharvest
appraisal, and you can provide acceptable records to us that account for
all production removed from the unit after our appraisal,
[[Page 405]]
we will conduct an additional appraisal that will be used to determine
your production.
(2) Failure to give timely notice that production will be harvested
for direct marketing will result in an appraised production to count of
not less than the production guarantee per acre if such failure results
in an inability to make an accurate appraisal.
(b) If you intend to claim an indemnity on any unit, you must notify
us 15 days prior to the beginning of harvest or immediately if damage is
discovered during harvest so that we may inspect the damaged production.
(1) You must not destroy the damaged crop until after we have given
you written consent to do so.
(2) If you fail to meet the requirements of this subsection, and
such failure results in our inability to inspect the damaged production,
we may consider all such production to be undamaged and include it 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 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 by:
(1) Multiplying the insured acreage for each type, if applicable, by
its respective production guarantee;
(2) Multiplying each result in section 11(b)(1) by the respective
price election for each type, if applicable;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted (see section
11(c)) by type, if applicable, by the respective price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the results in section 11(b)(5) from the results in
section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
For example:
You have a 100 percent share in 50 acres of early variety A in the
unit, with a guarantee of 140 bushels per acre and a price election of
$16.00 per bushel. You are only able to harvest 6,000 bushels due to an
insured cause of loss. Your indemnity would be calculated as follows:
(1) 50 acres x 140 bushels = 7,000 bushel guarantee;
(2) 7,000 bushels x $16.00 price election = $112,000.00 value of
guarantee;
(4) 6,000 bushels x $16.00 price election = $96,000.00 value of
production to count;
(6) $112,000.00 - $96,000.00 = $16,000 loss; and
(7) $16,000 x 100 percent = $16,000 indemnity.
(c) The total production 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) That is sold by direct marketing if you fail to meet the
requirements contained in section 10 of these Crop Provisions;
(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;
(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 which
case we will use the harvested production. If you do not continue to
adequately 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.
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic Provisions
are not applicable.
[75 FR 15607, Mar. 30, 2010, as amended at 87 FR 38899, June 30, 2022;
87 FR 52854, Aug. 30, 2022]
Sec. 457.174 Forage Seed crop insurance provisions.
The forage seed crop provisions for the 2015 and succeeding crop
years are as follows:
FCIC policies: United States Department of Agriculture, Federal Crop
Insurance Corporation
Forage Seed Crop Provisions
1. Definitions.
Actual value. The dollar value received, or that could be received,
for the forage seed if the forage seed production is properly handled in
accordance with the requirements in the forage seed contract or the
applicable certifying agency's requirements.
Adequate stand. A population of live plants that equals or exceeds
the minimum required number of plants per square foot as shown in the
actuarial documents.
[[Page 406]]
Amount of insurance. The amount obtained by multiplying the
production guarantee per acre for each type and practice in the unit by
the insured acreage of that type and practice, by the applicable base
price, and by the percentage of base price you elected. The total of
these results will be the amount of insurance for the unit.
Base price. For seed under a forage seed contract, the price per
pound (excluding any discounts or incentives that may apply) stated in
the forage seed contract. For certified forage seed not under a forage
seed contract, and for forage seed producers who are also forage seed
companies, the price contained in the actuarial documents.
Certification application. The form used to request certification of
forage seed by the certifying agency.
Certification standards. The standards and procedures of the
certification agency to assure genetic purity and identity of the seed
certified.
Certified forage seed. Forage seed that meets the certification
standards administered by a certifying agency at the time of harvest and
that has been grown under a certification application accepted by the
certifying agency on or before the acreage reporting date or as
otherwise specified in the Special Provisions.
Certifying agency. An agency authorized under the laws of a State,
Territory, or possession, to officially certify seed, which has
standards and procedures to assure the genetic purity and identity of
the seed certified, and approves certification applications for the
certified forage seed that meets the certification standards at time of
harvest.
Established stand. An adequate stand of live plants for crop years
after the seed-to-seed year.
Fall planted. Forage seed crop planted after May 31 of the previous
crop year.
Forage seed company. A business enterprise that possesses all
licenses for marketing forage seed required by the state in which it is
domiciled or operates, and which possesses facilities with enough
storage and capacity to accept and process the insured crop timely.
Forage seed contract. A written contract executed between the forage
seed crop producer and a forage seed company containing, at a minimum:
(a) The producer's commitment to plant, grow, and deliver the forage
seed produced from such plants to the seed company;
(b) The seed company's commitment to purchase all the production
from a specified number of acres or the specified quantity of production
stated in the contract; and
(c) Either a fixed price per unit of the forage seed or a formula to
determine the price per unit value of such seed. Any formula for
establishing value must be specified in the written contract. If the
formula uses a future price that is settled after the applicable acreage
reporting date, then the base price contained in the actuarial documents
will apply.
Forage seed crop. Small-seeded legume plants grown for seed (e.g.,
alfalfa, clovers, etc.), including those grown for the production of
hybrid seed, as shown in the actuarial documents.
Harvest. Removal of seed from the windrow or field.
Pound. Sixteen (16) ounces avoirdupois.
Price election. In lieu of the definition in section 1 of the Basic
Provisions, the price election will be the base price and will be used
for the purposes of determining premium and indemnity under the policy.
Qualified seed testing laboratory. Laboratory qualified by the State
to test the forage seed to determine whether it qualifies as certified
forage seed.
Seed-to-seed year. The calendar year in which planting occurs for
spring planted forage seed and the subsequent calendar year for fall
planted forage seed.
Spring planted. Forage seed crop planted before June 1 of the
current crop year.
2. Unit Division.
In lieu of the optional unit provisions in section 34 of the Basic
Provisions, you may select optional units by forage seed contract or
variety if permitted by the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities.
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may elect only one percentage of base price and one coverage
level for each forage seed crop you elect to insure, grown in the
county, and designated in the actuarial documents. If separate base
prices are available by forage seed crop type, the percentage election
of base price and coverage level you choose for each forage seed crop
type must be the same. For example, if you choose 100 percent of the
base price and 65 percent coverage level for a specific forage seed crop
type, you must choose 100 percent of the base price and 65 percent
coverage level for all the forage seed crop types.
(b) For each unit, separate guarantees will be determined by forage
seed crop type and practice.
4. Contract Changes.
In accordance with section 4 of the Basic Provisions, the contract
change date is June 30 preceding the cancellation date.
[[Page 407]]
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
California, Nevada and Utah. October 31;
All Other States. September 30.
6. Report of Acreage.
(a) In addition to the requirements of section 6 of the Basic
Provisions, you must submit to us, on or before the acreage reporting
date or as otherwise specified in the Special Provisions:
(1) A copy of your forage seed contract for your contracted forage
seed acreage; or
(2) A copy of the accepted certification application for your
certified seed acreage.
(b) Failure to provide a copy of the forage seed contract or the
certification application accepted by the certifying agency by the
acreage reporting date or the date otherwise specified in the Special
Provisions will result in denial of liability and no indemnity due.
7. Insured Crop.
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all types and practices of each forage seed crop you
elect to insure, that is grown in the county and for which a premium
rate is provided by the actuarial documents:
(1) In which you have a share; and
(2) That is grown for harvest as:
(i) Certified forage seed; or
(ii) Seed grown under a forage seed contract executed on or before
the acreage reporting date or the date otherwise specified in the
Special Provisions.
(b) For contracted acreage of forage seed crops only, you will not
be considered to have a share in the insured crop unless, under the
terms of the forage seed contract, you are at risk of a financial loss
at least equal to the amount of insurance on such acreage.
(c) In addition to the crop and acreage listed as not insured in
sections 8 and 9 of the Basic Provisions, we will not insure any forage
seed crop that:
(1) Is interplanted with another crop, unless otherwise specified in
the Special Provisions;
(2) Is planted into an established grass or legume;
(3) Does not have an adequate stand at the beginning of the
insurance period unless otherwise specified in the Special Provisions;
(4) Exceeds the age limitations for the forage seed crop or type
contained in the Special Provisions; or
(5) Is utilized for any purpose during the crop year other than for
seed production, unless otherwise specified in the Special Provisions.
(d) A forage seed producer who is also a forage seed company may
establish an insurable interest if the following requirements are met:
(1) The producer must comply with these Crop Provisions; and
(2) All the forage seed grown by the forage seed company is enrolled
with the appropriate certifying agency.
8. Insurance Period.
(a) Insurance attaches on acreage with an adequate stand on the
later of the date we accept your application or the applicable date as
follows, unless provided otherwise in the Special Provisions:
(1) For fall planted seed-to-seed year and established stands of
forage seed crops, coverage begins for each crop year on:
(i) November 1 for counties in California, Utah and Nevada; and
(ii) October 1 for counties in Idaho, Montana, Oregon, Washington,
Wyoming and all other states.
(2) For spring planted seed-to-seed year stands of forage seed
crops, coverage begins:
(i) May 1 for counties in California and Washington; and
(ii) May 15 for counties in Idaho, Montana, Nevada, Oregon, Utah,
Wyoming and all other states.
(b) The calendar dates for the end of the insurance period for
counties in the following states are as follows unless otherwise
provided in the Special Provisions:
(1) California, Nevada and Utah. October 31.
(2) Idaho, Oregon, Montana, Washington, Wyoming and all other
states. September 30.
9. Causes of Loss.
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects and plant disease, but not damage due to insufficient or
improper application of control measures;
(4) Wildlife;
(5) Earthquake;
(6) Volcanic eruption; or
(7) Failure of the irrigation water supply, if caused by a peril
specified in sections 9(a)(1) through (6) that occurs during the
insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) The crop not being timely harvested, unless such delay in
harvesting is solely and directly caused by a cause of loss specified in
sections 9(a)(1) through (6);
[[Page 408]]
(2) Insufficient supply of pollinators, as determined by us, unless
lack of pollinators or pollination is solely and directly caused by a
cause of loss specified in sections 9(a)(1) through (7);
(3) Failure of the certification standard or forage seed company
contract acceptance caused by failure to follow proper isolation
requirements or inadequate weed control, as determined by us, unless
such failure is solely and directly due to a cause of loss specified in
sections 9(a)(1) through (6); or
(4) Failure of the certification standard or forage seed contract
acceptance due to failure to follow all other certification or contract
requirements, as determined by us, unless such failure is solely and
directly caused by a cause of loss specified in sections 9(a)(1) through
(6).
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 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 to your forage seed crop covered
by this policy, we will settle your claim by:
(1) Multiplying the insured acreage for each type and practice by
the production guarantee;
(2) Multiplying each result in section 10(b)(1) by the price
election;
(3) Totaling the results in section 10(b)(2);
(4) Multiplying the total production to count for each type and
practice by the price election;
(5) Totaling the results of each crop type in section 10(b)(4);
(6) Subtracting the result in section 10(b)(5) from the result in
section 10(b)(3); and
(7) Multiplying the result in section 10(b)(6) by your share.
(c) The total forage seed production to count (in pounds) 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 put to another use without our consent;
(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 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 when you put the acreage to another use or abandon the
crop. If agreement on the appraised amount of production is not reached
and if:
(A) 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 harvested production or appraisals
from the samples at the time harvest should have occurred. If you do not
leave the required samples intact, or fail to provide sufficient care
for the samples, our appraisals made prior to giving 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, 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 in
accordance with section 10 (e).
(d) In addition to the provisions of section 15 of the Basic
Provisions, we may determine the amount of production of any unharvested
forage seed on the basis of our field appraisals conducted after the
normal time of harvest for the area. If the acreage is later harvested,
production records must be provided and if the harvested production
exceeds the appraised production, the claim will be adjusted.
(e) Production not meeting the minimum quality requirements
contained in the forage seed contract or certifying agency's standards
based on tests conducted by a qualified seed testing laboratory due to
insurable causes will be reduced as follows:
(1) Divide the actual value by the base price for the insured type;
and
(2) Multiply the result (not to exceed 1.0) by the number of pounds
of such production.
Example: You have a 100 percent share and 100 acres of forage seed
in the unit, with a guarantee of 600 pounds per acre on 75 acres of an
established stand of forage seed and a guarantee of 300 pounds per acre
on 25 acres of a spring planted seed-to-seed year stand. All acreage is
contracted with a base price of $1.20 per pound and you have selected
100 percent of the base price. Losses due to insured causes of loss have
reduced production and quality and you only harvested 37,000 pounds of
seed. A portion of the total production was of poor quality; 10,000
pounds of seed
[[Page 409]]
failed to achieve the contract minimum germination requirement; and the
salvaged production was valued at $0.80 per pound. Your indemnity would
be calculated as follows:
(1) 75 acres x 600 pounds = 45,000-pound guarantee
25 acres x 300 pounds = 7,500-pound guarantee;
(2) 45,000 pounds x $1.20 per pound price election = $54,000 value
guarantee
7,500 pounds x $1.20 per pound price election = $9,000 value
guarantee;
(3) $54,000 + $9,000 = $63,000 total value of the guarantee;
(4) 27,000 pounds met the contract quality requirements = 27,000
pounds production to count
27,000 pounds x $1.20 per pound = $32,400 10,000 pounds x ($0.80 per
pound/$1.20 per pound) = 6,667 pounds production to count
6,667 pounds x $1.20 per pound = $8,000;
(5) $32,400 + $8,000 = $40,400 total value of production to count;
(6) $63,000 - $40,400 = $22,600 loss; and
(7) $22,600 x 100% share = $22,600 indemnity payment.
11. Late and Prevented Planting.
The late and prevented planting provisions of the Basic Provisions
are not applicable for forage seed.
[79 FR 30705, May 29, 2014; 79 FR 35681, June 24, 2014]
Sec. 457.175 California avocado crop insurance provisions.
The California avocado crop provisions for the 2024 and succeeding
crop years are as follows:
FCIC policies:
United States Department of Agriculture
Federal Crop Insurance Corporation
California Avocado Crop Provisions
1. Definitions
CDFA. The California Department of Food and Agriculture.
Commercial sale. Any transaction in which avocados have been
inspected under the rules of the CDFA and to which a marketing
assessment payment applies under the Hass Avocado Promotion, Research,
and Information Act of 2000.
Crop year. The period of time that begins on December 1 immediately
prior to the time the avocado trees normally bloom and that ends on
October 31 of the calendar year following such bloom. Crop year is
designated by the calendar year following the year in which the avocado
trees normally bloom.
Harvest. Picking of marketable avocado fruit from the trees or from
the ground when permitted as described in section 11(c).
Initially apply. Your application for crop insurance under these
Crop Provisions for the first time and following each time you have
cancelled the insurance or the insurance has terminated by action of the
policy.
Interplanted. In lieu of the definition contained in section 1 of
the Basic Provisions, acreage in which two or more crops are planted in
any form of an alternating or mixed pattern.
Marketable. An avocado fruit that meets the standards published by
the CDFA with respect to maturity, defects, size, and weight.
No. 2 avocado. An avocado fruit that is marketable but that is
diverted into processing uses due to visual defects resulting from an
insured cause of loss.
Pound. A unit of weight equal to sixteen ounces avoirdupois.
Rootstock. The root and stem portion of a tree to which a scion can
be grafted.
Scion. Twig or portion of a twig of one plant that is grafted onto a
rootstock.
Set out. Transplanting a tree into the orchard or grafting a scion
onto rootstock.
Stumping. A practice whereby the lateral branches of an avocado tree
are removed. A portion of the bole also may be removed. The resulting
stump is approximately 4 feet or greater in height.
Type. A term used to designate different varieties of avocados, as
more fully described in the Special Provisions.
2. Unit Division
(a) Unless limited by the Special Provisions, a basic unit as
defined in section 1 of the Basic Provisions may be divided into
optional units if, for each optional unit, you meet the following:
(1) All optional units you select for the crop year are identified
on the acreage report for that crop year (Units will be determined when
the
[[Page 410]]
acreage is reported but may be adjusted or combined to reflect the
actual unit structure when adjusting a loss. No further unit division
may be made after the acreage reporting date for any reason);
(2) You have records that are acceptable to us for at least the most
recently completed crop year for all optional units that you will report
in the current crop year (You may be required to produce the records for
all optional units for the most recently completed crop year);
(3) You have records of marketed 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 optional
unit is kept separate until loss adjustment is completed by us.
(b) Each optional unit must meet one or more of the following
conditions, unless otherwise specified in the Special Provisions:
(1) Be of a different type; or
(2) Consist of acreage located on non-contiguous land.
(c) Subsections (a) and (c) of section 34 of the Basic Provisions do
not apply to these Crop Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one coverage level for all the avocados in
the county insured under this policy.
(b) You must report, on or before the production reporting date
designated in section 3 of the Basic Provisions, by unit:
(1) Any damage, stumping (including the year or years that the
stumping was performed), or removal of trees; change in orchard
practices; or any other circumstance that may reduce the expected yield
per acre to less than the approved yield and the number of affected
acres and trees;
(2) The number of trees on insurable and uninsurable acreage;
(3) The age of the trees;
(4) Any acreage excluded under section 6 of these Crop Provisions;
and
(5) For acreage interplanted with another crop:
(i) The age of the interplanted crop, and type if applicable;
(ii) The planting pattern; and
(iii) Any other information we request to establish your approved
yield per acre.
(c) We will reduce the approved yield whenever we determine any one
or more of the factors specified in this section are likely to have a
negative impact upon that average yield. If you fail to provide complete
and accurate information required by this section, and pursuant to the
definition of approved yield, we will reduce that yield as necessary at
any time we become aware of any such omission.
(d) In the event the avocado trees are damaged to the extent that we
determine the APH history you certified no longer is representative of
the potential production of the unit, we will reduce your approved yield
to a level consistent with that reduced potential. Such reduction will
not occur for a crop year for which insurance already has attached if
the damage is due to a cause of loss that is insurable for the avocado
fruit.
(e) In lieu of that specific provision in section 3(f) of the Basic
Provisions, you are required to report the production for the crop year
that ended on the October 31 immediately preceding the cancellation
date. For example, you must report your production for the 2008 crop
year by the production reporting date for the 2010 crop year. All other
provisions of section 3(f) apply.
(f) When you initially apply for insurance:
(1) You must certify your production records for at least the most
recently completed crop year;
(2) If you do not certify your production records for any one or
more of the three crop years immediately prior to the most recently
completed crop year, you will be assigned a percentage of the
transitional yield included in the actuarial documents for that crop
year. The percentages will be those described in 7 CFR part 400 subpart
G. All other provisions of 7 CFR part 400 subpart G apply.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change
[[Page 411]]
date is the August 31 that precedes the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are the November 30 immediately prior
to the first day of the crop year.
6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the avocados in the county grown on insurable
acreage, and for which premium rates are provided:
(1) In which you have a share;
(2) That is grown for harvest as avocado fruit for commercial sale;
(3) That is a type identified in the actuarial documents;
(4) That is irrigated; and
(5) That is grown on trees that, if inspected, are considered
acceptable to us.
(b) In addition to the provisions of section 8 of the Basic
Provisions that identify an uninsurable crop, we do not insure any
avocados produced on trees that have not reached the sixth leaf year
unless the unit has produced an average of at least 2,000 pounds of
avocados per acre in one of the most recent three crop years or as
otherwise specified in the Special Provisions.
(c) Avocado trees that have been stumped are not insurable for three
calendar years after the year stumping was performed. The calendar year
stumping occurred will be considered to be the actual calendar year if
performed between January 1 and June 30 of that year. It will be
considered to be the following calendar year if performed between July 1
and December 31.
7. Insurable Acreage
(a) In lieu of that part of section 9 of the Basic Provisions that
prohibits insurance attaching to a crop planted with another crop,
avocados interplanted with another perennial crop are insurable unless
we inspect the acreage and determine it does not meet the requirements
of insurability contained in these Crop Provisions.
(b) In addition to the acreage designated as not insurable in
section 9 of the Basic Provisions, we will not insure avocados produced
on any acreage infected with Phytophthora root rot unless you follow
good orchard management practices as recommended by agricultural
experts.
8. Insurance Period
(a) In accordance with the provisions of section 11 of the Basic
Provisions:
(1) Coverage begins on December 1st of the crop year.
(2) The calendar date for the end of the insurance period is the
second October 31st of the crop year.
(b) In addition to the provisions of section 11 of the Basic
Provisions:
(1) 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
and 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 acreage of
avocados 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:
(i) A transfer of 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.
No premium will be due or indemnity paid unless a properly executed
transfer of right to an indemnity has been filed with us.
9. Causes of Loss
(a) In accordance with section 12 of the Basic Provisions, insurance
is provided against unavoidable loss of production due to the following
causes of loss occurring 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;
[[Page 412]]
(3) Insects and disease, but not damage due to insufficient or
improper application of control measures;
(4) Wildlife;
(5) Earthquake;
(6) Volcanic eruption; or
(7) Failure of the irrigation water supply due to an insured cause
of loss specified in sections 9(a)(1) through (6).
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss of
production due to:
(1) Theft;
(2) Phytophthora root rot, if you do not maintain cultural practices
to minimize the potential for damage due to this pathogen; or
(3) Inability to market the avocados 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 any avocado fruit due to quarantine, boycott, or refusal of
any person to accept such fruit.
10. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 of the Basic
Provisions:
(a) If any portion of your crop will be direct marketed, you must
notify us at least 15 calendar days before any production will be
harvested. We will conduct an inspection and appraisal, if needed, that
will be used to determine your production to count for such production.
If damage occurs after this inspection, we will conduct one or more
additional inspections as needed. These inspections, and any acceptable
records provided by you, will be used to determine your production to
count. Failure to give timely notice as required will result in
production to count determined as described in section 11(c) if we are
not able to determine the amount of such production;
(b) If you intend to claim an indemnity on any unit, you must notify
us immediately so we may inspect the unit. You must not sell or
otherwise dispose of any damaged production until we have given you
written consent to do so, or 15 days, whichever is earlier. If you fail
to meet the requirements of this subsection all such production will be
considered undamaged and included as production to count;
(c) We will not perform any appraisals of potential production
earlier than the July that follows the bloom for the crop year; and
(d) You must notify us immediately if you intend to stump 10 percent
or more of the trees on a unit after insurance has attached for the crop
year.
11. Settlement of Claim
(a) We will determine your loss separately for each unit you defined
on your acreage report or that we find to exist in accordance with
section 2 of these Crop Provisions. If you do not or cannot provide
acceptable records of production for the crop year for:
(1) Any optional unit, we will combine all optional units for which
such records were not provided; or
(2) Any basic unit, we will allocate commingled production to each
basic unit 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 the result of section 11(b)(1) the total
production to count (see section 11(c));
(3) Multiplying the result in section 11(b)(2) by the price
election, by the price election factor, and by your share.
(c) The total production to count from all insurable acreage on the
unit will include the value of all appraised and harvested production,
as follows:
(1) Appraised production to be counted will include:
(i) Not less than the production guarantee per acre for acreage:
(A) That is abandoned;
(B) That is sold or otherwise disposed by direct marketing if you
failed to provide the notice required by section 10 and we were not able
to determine the amount of such production;
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide production records that are
acceptable to us;
(ii) Potential production lost due to uninsured causes;
[[Page 413]]
(iii) Unharvested marketable production (the quantity of such
production may be reduced as described in section 11(d));
(iv) Potential production on insured acreage you intend to put to
another use or abandon, if you agree to our appraisal of such
production. Upon such agreement, the insurance period for that acreage
will end when you put the acreage to another use or abandon the crop. If
agreement on the appraised 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 production to count for such
acreage will be based on the greater of the harvested production or our
appraisal in accordance with Section 15(b) of the Basic Provisions from
the samples at the time harvest should have occurred. If you do not
leave the required samples intact, or 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 production to
count; or
(B) If you elect to continue to care for the crop, the production to
count for the acreage will be based on the greater of harvested
production or our reappraisal in accordance with section 15(b) of the
Basic Provisions if additional damage occurs and the crop is not
harvested; and
(2) All marketable harvested production (the quantity of such
production may be reduced as described in section 11(d)). Any production
that is not marketable due to an insured cause of loss will not be
included in the production to count.
(d) The quantity of appraised and harvested marketable production
may be reduced if the production is considered to be a No. 2 avocado and
the price of such marketable production is less than 75 percent of the
maximum price election. The quantity of such production will be
multiplied by an adjustment factor equal to the lesser of 1.00 or the
price of the damaged avocados divided by the maximum price election.
12. Late and Prevented Planting
Sections 16 and 17 of the Basic Provisions do not apply to these
Crop Provisions.
13. Example of Your Insurance Protection
You certify production records that support the yields per acre
shown below:
------------------------------------------------------------------------
Year Yield/acre
------------------------------------------------------------------------
1....................................................... 4,559
2....................................................... 2,978
3....................................................... 10,112
4....................................................... 2,014
5....................................................... 2,420
------------------------------------------------------------------------
AVERAGE (APPROVED) Yield = 4,417 lbs.
Assume you selected the 65 percent coverage level. The unit contains
10 acres. The production guarantee per acre is:
4,417 x 65% = 2,871 lbs. per acre
The production guarantee for the unit is:
2,871 x 10 acres = 28,710 lbs.
Assume further that the price election is $0.90 per lb. The
liability (amount of insurance) for the unit is equal to:
28,710 lbs. x $0.90 = $25,839
Assume the unit produced 15,000 lbs. Your share is 100 percent.
The indemnity is calculated as follows:
2,871 x 10 acres = 28,710 lbs.
28,710 lbs. -15,000 lbs. = 13,710 lbs.
13,710 lbs. x $0.90 x 1.000 = $12,339.
[82 FR 61131, Dec. 27, 2017, as amended at 83 FR 16767, Apr. 17, 2018;
87 FR 38900, June 30, 2022; 87 FR 52854, Aug. 30, 2022]
Sec. 457.176 Cultivated clam crop insurance provisions.
The cultivated clam crop provisions for the 2019 and succeeding crop
years are as follows:
FCIC policies:
[[Page 414]]
United States Department of Agriculture
Federal Crop Insurance Corporation
Cultivated Clam Crop Provisions
1. Definitions.
Amount of insurance. For each basic unit, your inventory value
multiplied by the coverage level percentage you elect, and multiplied by
your share. However, for catastrophic risk protection policies, amount
of insurance is your inventory value multiplied by the coverage level
percentage you elect (for CAT coverage the level is limited to 50
percent), multiplied by your share, and multiplied by 55 percent. Your
accumulated paid indemnities during the crop year for each basic or
optional unit may not exceed your amount of insurance.
Basic unit value before loss. The stage value of all undamaged
insurable clams, in the basic unit or, if elected, all optional units
combined, immediately prior to the occurrence of any loss as determined
by our appraisal. This allows the amount of insurance under the policy
to be prorated among the individual units based on the actual value of
the clams in the unit at the time of loss. It is also the basis for
determining whether or not an indemnity is due. This value is used to
ensure that you have not under-reported your clam inventory value.
Clam. A cultivated Mercenaria mercenaria (quahog).
Crop year. The twelve-month period beginning December 1 and
extending through November 30 of the next calendar year, designated by
the calendar year in which insurance ends.
Crop year deductible. The deductible percentage multiplied by the
sum of the inventory values within each basic unit. The crop year
deductible will be increased for any increases in the inventory value on
the inventory value report. The crop year deductible will be reduced by
any previously incurred deductible if you timely report each loss to us.
Deductible percentage. An amount equal to 100 percent minus the
percent of coverage you select. The percentage is 50 percent for
catastrophic risk protection coverage.
Disease. Any pathogen or group of pathogens, parasitic infestation
or plague verified by an aquaculture pathologist and shown to be a
primary cause to the death of the insured clams.
Freeze. The formation of ice in the cells of the animal caused by
low air temperatures.
Global Positioning System (GPS). A space based radio position,
navigation, and time transfer system involving satellites and computers
to determine the latitude and longitude of a receiver on Earth by
computing the time difference for signals from different satellites to
reach the receiver and referenced in the Special Provisions.
Growing location. A lease parcel, permit or licensed area, whose
boundaries are readily discernable above the water, and identified on a
map that shows enough detail to distinguish seeded areas within the
site.
Growout bag. A mesh bag used throughout the growing season to
contain clams when placed in the appropriate growing medium and as
further defined by the Special Provisions.
Harvest. Removal of marketable clams from the unit. Clams that are
removed from the growing location but not of sufficient size to be
marketable are not considered harvested if returned to the growing
location.
Ice floe. Floating ice formed in sheets on the sea surface.
Inventory value. The total of the stage values from the inventory
value report.
Inventory value report. Your report that declares the stage values
of insurable clams in accordance with section 6. See the Cultivated Clam
Insurance Standards Handbook, Exhibit 5 for the inventory value report
completion instructions and form.
Land. The land under a body of water suitable for planting clams and
the column of water above the land if designated and controlled by state
law.
Lease. A contract that grants use of land in or assigned to a county
for a specified term and for a specified payment and provides the lessee
with the exclusive use of the land to plant clams.
[[Page 415]]
Lease parcel. A legally identifiable tract or plot of land covered
by a lease, permit, or license.
License. Official or legal permission that grants use of land in or
assigned to a county for a specified term and provides the licensee with
the exclusive use of the land to plant clams.
Non-contiguous. In lieu of the definition in the Basic Provisions,
separately-named, high-density aquaculture lease sites or shellfish
sites are considered non-contiguous, unless limited by the Special
Provisions. Individual land parcels within such sites are not considered
non-contiguous.
Occurrence deductible.
(a) This deductible allows a smaller deductible than the crop year
deductible to be used when:
(1) Inventory values are less than the reported basic unit value; or
(2) You have elected optional units, if applicable.
(b) The occurrence deductible is the lesser of:
(1) The deductible percentage multiplied by the unit value before
loss multiplied by the under-report factor; or
(2) The crop year deductible.
Permit. A document giving official or legal permission to use land
in or assigned to a county for a specified term and provides the
permittee with the exclusive use of the land to plant clams.
Planting. The placing of seed clams into the appropriate growing
medium for the practice specified.
Pollution. The presence in the water of a substance that directly
causes death of the clams. The substance shall not be parasitical,
bacterial, fungal or viral, or any substance used by you for medicinal
purposes. Pollution will also include any increase or decrease in the
content of any normal soluble or insoluble constituent of water
including mud and silt, feed residues, solid or liquid fish wastes,
dissolved gases and any other substance normally present in the water of
the lease parcel.
Practical to replant. In lieu of the definition of ``Practical to
replant'' contained in section 1 of the Basic Provisions, unless limited
by the Special Provisions, practical to replant is defined as our
determination, after loss or damage to the insured crop, based on
factors including, but not limited to the causes of loss listed in
section 10 of these provisions, that replanting the insured crop will
allow the crop to develop normally during the remainder of the crop
year. Unavailability of seed clams will not be considered a valid reason
for failure to replant.
Practice. The cultural methods of producing clams such as trays,
mesh bags, round pens, lantern nets or bottom planting.
Replant. Unless limited by the Special Provisions, performing the
cultural practices necessary to prepare for replacement of insurable
clams that were destroyed by an insurable cause of loss and then placing
living insurable clams into mesh bags or pens, or seeding them into
prepared growout beds, bottom culture, bottom trays, or floating trays
on insurable acreage.
Salinity. The dissolved solids (typically salts such as chloride,
sodium, and potassium) in ocean water expressed as parts per thousand.
Seed clam.
(a) For clams placed in a field nursery or a nursery bag--a clam
that is a minimum of 5 millimeters, measured at the longest shell
distance that is parallel to the hinge.
(b) For all others--a clam which is a minimum of 10 millimeters,
measured at the longest shell distance that is parallel to the hinge.
Separately named high-density aquaculture lease site. The submerged
subdivided land under a body of water suitable for the cultivation of
clams and identified and named separately by the Division of Marine
Resources or similar regulatory agency.
Shellfish harvest ban. A State or Federal order that prohibits
harvesting clams for human food in areas where monitoring program data
indicates that fecal material, pathogenic microorganisms, poisonous or
deleterious substances, marine toxins, or radio nuclides have reached
excessive concentrations.
Stage. Clams that have attained the size or age specified for stage
1, 2, 3, or 4 as defined in the Special Provisions.
Stage value. The dollar value of the inventory of all insurable
clams at each stage based on the survival factors and the prices shown
in the actuarial documents for such stages, in
[[Page 416]]
each unit on your inventory value report, including any revision that
increases the value of your insurable inventory.
Storm surge. A significant increase or decrease in water depth
relative to normal tides that is caused by a strong, continuous and
prolonged strong flow of onshore or offshore winds.
Survival factor. A factor shown on the actuarial documents that
represents the expected percentage of clams that will normally survive.
If you provide production records for three consecutive years, your
records will be used in lieu of the factor contained in the actuarial
document to determine the survival factor. The survival factor is
applied at the time of inventory and is not applied a second time to the
same inventory when a loss occurs. Clams that are seeded subsequent to
the annual inventory value report must be adjusted by the survival
factor.
Tidal wave. A large water wave, wave train, or a series of waves,
generated in a body of water by an impulsive disturbance that vertically
displaces the water column or a destructive type of wave motion in seas
and oceans, associated with either strong winds or underwater
earthquakes.
Under-report factor. The factor that adjusts your indemnity for
under-reporting of inventory values. The factor is always used in
determining any indemnities. The under-report factor is the lesser of:
(a) 1.000; or (b) the sum of all stage values reported on all the
inventory value reports, minus the total of all previous losses, as
adjusted by any previous under-reporting factors, divided by the basic
unit value before loss.
Unit value after loss. The value of the remaining insurable clams in
each basic or optional unit based on the percentage of the reference
maximum dollar amount contained in the actuarial documents, immediately
following the occurrence of a loss as determined by our appraisal, plus
any reduction in value due to uninsured causes. This is used to
determine the loss of value for each individual unit so that losses can
be paid on an individual unit basis, optional or basic, as applicable.
Unit value before loss. The stage value of undamaged insurable clams
in the basic or optional unit, as applicable, immediately prior to the
loss occurrence. The determined value will include the number of seeded
and harvested clams and stages that existed on the date of the inventory
value report, adjusted for changes in accordance with subparagraph
22A(2) of the Insurance Standards Handbook, including but not limited
to; the reference maximum dollar amount contained in the actuarial
documents; and the applicable survival factors. This allows the amount
of insurance under the policy to be divided among the individual units
in accordance with the value of the clams in the unit at the time of
loss for determining whether you are entitled to an indemnity for
insured losses in the unit, optional or basic, as applicable. Clams that
are seeded subsequent to the annual inventory value report being
submitted must be adjusted by the survival factor before they are added
to the beginning inventory during the process of establishing the ``Unit
value before loss.''
2. Unit Division
(a) In addition to the definition of basic unit contained in section
1 of the Basic
Provisions, a basic unit may be divided into optional units in
accordance with section 2(b). Note that even if you elect optional unit
coverage, amount of insurance, crop year deductible, under-report
factor, premium, and the total amount of indemnity payable under this
policy will be controlled by the basic unit value before loss.
(b) If you elect the additional level of coverage, for an additional
premium, inventory that would otherwise be a basic unit may, unless
limited by the Special Provisions, be divided into optional units by
non-contiguous lease parcels. Additional optional units may also be
authorized in the Special Provisions. If you elect optional units, you
must provide separate inventory reports for each unit and keep all
records of seeding, harvest, and uninsured losses separately by unit.
(c) Failure to keep or report separate records will result in all
optional unit inventories under a basic unit being combined in a basic
unit at loss time.
[[Page 417]]
(d) If you elect optional units, your amount of insurance will be
divided among optional units in relation to unit value before loss of
clams in each optional unit. If, at the time of loss, the aggregate
value of the clams in your optional units exceeds your basic unit
inventory value, you will be subject to the under-report factor
provisions.
3. Amount of Insurance
(a) In addition to the requirements of section 3 of the Basic
Provisions, you may only select one coverage level percentage for all
clams, regardless of their stage, insured under this policy.
(b) Your amount of insurance will be reduced by the amount of any
indemnity paid under this policy.
(c) For an additional premium, you may increase your amount of
insurance in accordance with section 6(d).
(d) The production reporting requirements contained in section 3 of
the Basic Provisions are not applicable.
(e) For seeded clams, the amount of insurance is the product of the
reference maximum dollar amount of insurance and the fraction of the
maximum value associated with the applicable stage multiplied by the
coverage level selected multiplied by your share.
4. Contract Changes
In accordance with section 4 of the Basic Provisions, the contract
change date is August 31 of each year, or as specified in the actuarial
documents.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are November 30, or as specified in
the actuarial documents.
6. Clam Inventory Value Report
In lieu of section 6 of the Basic Provisions:
(a) For insurance to attach for the crop year, you must submit an
inventory value report to us with your application and for each
subsequent crop year, not later than November 30 preceding the crop
year, or by the date specified in the Special Provisions.
(b) The inventory value report must be submitted yearly and include,
for each basic or optional unit all growing locations, the stages of the
clams and the stage values, and your share by growing location.
(1) The inventory value must also reflect the stages as shown in the
Special Provisions.
(2) At our option and at any time, you may be required to provide
documentation in support of any of your reports, including, but not
limited to, a detailed listing of growing locations, unit values, the
numbers and the sizes of clams seeded or placed for grow-out; your
share, sales of clams and purchases of seed clams for the 3 previous
crop years, and of your ability to properly obtain and maintain clams.
(3) For catastrophic level policies only, you must report your clam
sales for the previous crop year on the clam inventory value report. You
may be required to provide documentation to support such sales.
(c) Your inventory value report, including any revised report, will
be used to determine your premium and amount of insurance.
(d) If allowed for in the Special Provisions you may revise your
inventory value report to increase the reported inventory value. We may
inspect the inventory. Your revised inventory value report, if allowed
by the Special Provisions, will be considered accepted by us and
coverage will begin on any proposed increase in inventory value at the
later of December 1, the date shown in the Special Provisions, or 30
days after your written request is received by us, unless we reject the
proposed increase in your inventory value in writing. We will reject any
requested increase if a loss occurs before the later of December 1, the
date shown in the Special Provisions, or within 30 days of the date the
request is made.
(e) Failure to report the full value of your stage value will result
in the reduction of any claim in accordance with section 14(d).
(f) For catastrophic insurance coverage only: Your inventory value
report for all clams cannot exceed the lesser of the value from section
6(b) or the percent shown on the actuarial documents of your previous
year's
[[Page 418]]
sales of clams unless you provide acceptable records to prove your
actual inventory value.
(g) Your inventory value report must reflect your insurable clam
inventory according to the prices contained in the actuarial documents.
In no instance will we be liable for values greater than those contained
in the actuarial documents.
(h) You must report all clams on the unit including any clams owned
or subleased by other individuals or entities.
(i) No application or inventory value reports, except revisions,
will be accepted after November 30, unless otherwise provided in the
Special Provisions.
7. Premium
(a) In lieu of section 7(c) of the Basic Provisions, we will
determine your premium by multiplying the amount of insurance by the
appropriate premium rate and by the premium adjustment factors listed on
the actuarial documents.
(b) Additional premium from an increase in the inventory value
report is due and payable when we accept the revised inventory value
report.
(c) In addition to the provisions in section 7 of the Basic
Provisions, the premium will be adjusted for partial crop years for the
year of seeding and for clam leases you acquire. Premium will be charged
for the entire month, as shown in the actuarial documents, for any month
during which any amount of coverage is provided.
8. Insured Crop
In lieu of the provisions of section 8 and section 9 of the Basic
Provisions, the insured crop is all the clams in the county that:
(a) Meet all the requirements for insurability and for which prices
are provided in the actuarial documents;
(b) Are acceptable to us;
(c) Are grown by a person, who in at least three of the five
previous crop years:
(1) Grew clams for commercial sale; and
(2) Participated in the management of a clam farming operation by at
least exercising decision-making authority over all operational aspects
of the farm.
(d) Are grown in a county for which a premium rate is provided in
the actuarial documents;
(e) Are in a growing location acceptable to us and for which you
provided GPS coordinates with your clam inventory value report in
accordance with the Special Provisions; and
(f) Use a practice that fixes the insurable clams to the land within
the growing location.
9. Insurance Period
(a) In accordance with section 11 of the Basic Provisions, coverage
begins the later of:
(1) The date the pre-acceptance inspection, if applicable, is
complete unless we notify you that your inventory is not insurable; or
(2) If your inventory is insurable:
(i) On December 1 for new applications, when the application and the
inventory value report are submitted by October 30;
(ii) On the 31st day following the date of submission for new
applications, when the application and the inventory value report are
submitted between November 1 and 30;
(iii) On December 1 for policies continued from the prior year if
the inventory value report is submitted by October 30;
(iv) On the 31st day following the date of submission of the
inventory value report for policies continued from the prior year when
the inventory value report is submitted between November 1 and 30; and
(v) However, you acquire a financial interest in any insurable clams
after coverage begins, but after December 1 of the crop year, and our
inspection determines that the clams are acceptable, insurance will be
considered to have attached to such clams 30 days after a revised
inventory report is accepted by us indicating the stage value of the
acquired clams; or
(vi) On the date contained in the Special Provisions.
(b) Insurance ends at the earliest of:
(1) The date of final adjustment of a loss when the total
indemnities due equal the amount of insurance;
(2) November 30; or
[[Page 419]]
(3) A date specified in the Special Provisions. (c) Insurance ceases
immediately on any clams removed from the unit.
10. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided for the death of clams caused only by
the following causes of loss that occur within the insurance period
unless otherwise limited by the Special Provisions:
(1) Oxygen depletion due to vegetation, microbial activity, harmful
algae bloom, or high water temperature unless otherwise limited by the
Special Provisions;
(2) Disease, if medication does not exist for control of the
disease;
(3) Freeze;
(4) Hurricane;
(5) Decrease in salinity associated with a weather event verified by
National Oceanic & Atmospheric Administration (NOAA) or United States
Geologic Survey (USGS) or as otherwise defined in the Special
Provisions;
(6) Tidal wave;
(7) Storm surge that is associated with a local weather event and
verified by NOAA or USGS; or
(8) Ice floe.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we do not insure against any loss caused by:
(1) Your inability to market clams as a direct result of quarantine,
shellfish harvest ban, boycott, or refusal of a buyer to accept
production;
(2) Collapse or failure of buildings or structures;
(3) Loss of market value;
(4) Vandalism;
(5) Theft;
(6) Pollution;
(7) Predation (unless allowed by the Special Provisions);
(8) Dredging;
(9) Any cause of loss that occurred prior to or after the insurance
period;
(10) Any unexplained shortages or disappearance of inventory; or
(11) Failure of the clam to grow to a marketable size.
11. Replanting Payments
Unless otherwise stated in the Special Provisions:
(a) In accordance with the provisions contained in section 13 of the
Basic Provisions, a replanting payment is allowed for insurable clams if
death of the clams was due to an insurable cause of loss.
(b) The maximum amount of the replanting payment will be the lesser
of your actual cost of replanting or the result obtained by multiplying
the replanting payment amount contained in the Special Provisions by
your insured share.
(c) Notwithstanding the provisions of section 13 of the Basic
Provisions, only one replanting payment will be made per lease parcel
planted within the crop year.
(d) You may not collect a replant payment and an indemnity for the
same loss.
12. Duties in the Event of Damage or Loss
In addition to your duties contained in section 14 of the Basic
Provisions,
(a) You must obtain our written consent prior to changing or
discontinuing your normal practices with respect to care and maintenance
of the insured clams. Failure to obtain our written consent will result
in the denial of your claim.
(b) If you are claiming disease as the cause of loss, you must prove
at your own expense that the death of the clams was due to disease by
isolating a sample of the clams and identifying the disease following
histological or pathological examination conducted by a veterinarian who
is a certified fish pathologist or a person approved by us.
13. Access to Insured Crop and Records, and Records Retention
In addition to the requirements of section 21 of the Basic
Provisions, you must permit us to inspect the insurable clams at any
time and take samples of damaged and undamaged clams for inspection,
testing, and analysis, and examine and make copies of your records.
[[Page 420]]
14. Settlement of Claim
We will determine indemnities for any unit as follows:
(a) Determine the under-report factor for the basic unit;
(b) Determine the occurrence deductible;
(c) Subtract unit value after loss from unit value before loss;
(d) Multiply the result of 14(c) by the under-report factor;
(e) Subtract the occurrence deductible from the result in section
14(d); and
(f) If the result of section 14(e) is greater than zero, and subject
to the limit of section 14(g);
(1) For other than catastrophic risk protection coverage, your
indemnity equals the result of section 14(e), multiplied by your share.
(2) For catastrophic risk protection coverage, your indemnity equals
the result of section 14(e) multiplied by 55 percent, multiplied by your
share.
(g) The total of all indemnities for the crop year will not exceed
the amount of insurance.
15. Late Planting
Provisions of section 16 of the Basic Provisions do not apply.
16. Prevented Planting
Provisions of section 17 of the Basic Provisions do not apply.
17. Loss Examples
Single Unit Loss Example
Assume you have a 100 percent share, the inventory value reported by
you is $100,000, and your coverage level is 75 percent. Your amount of
insurance is $75,000 ($100,000 x .75). At the time of loss, unit value
before loss is $95,000, unit value after loss is $30,000 and basic unit
value before loss is $100,000. The deductible percentage is 25 percent
(100-75), the crop year deductible is $25,000 (.25 x $100,000). Your
indemnity would be calculated as follows:
Step (1) Determine the under-report factor; $100,000 / $95,000 =
1.000;
Step (2) Determine the occurrence deductible; .25 x $95,000 x 1.000
= $23,750;
Step (3) Calculate the difference between unit value before loss and
unit value after loss; $95,000-$30,000 = $65,000;
Step (4) Result of step 3 multiplied by the underreport factor (step
1); $65,000 x 1.000 = $65,000;
Step (5) Result of step 4 minus the occurrence deductible; $65,000-
$23,750 = $41,250;
Step (6) Result of step 5 multiplied by your share; $41,250 x 1.000
= $41,250 indemnity payment.
Multiple Unit Multiple Loss Example
Assume you have a 100 percent share, the inventory value reported by
you is $100,000, and your coverage level is 75 percent. You have two
optional units, unit 1 and unit 2. Your amount of insurance is $75,000
($100,000 x .75). You have a loss on unit 1 and no loss on unit 2. At
the time of loss, unit value before loss on unit 1 is $60,000, unit
value after loss on unit 1 is $18,000 and basic unit value before loss
is $125,000. The deductible percentage is 25 percent (100-75), the crop
year deductible is $25,000 (.25 x $100,000). Your indemnity would be
calculated as follows:
Step (1) Determine the under-report factor; $100,000 / $125,000 =
.80;
Step (2) Determine the occurrence deductible; .25 x $60,000 x .80 =
$12,000;
Step (3) Calculate the difference between unit value before loss and
unit value after loss; $60,000-$18,000 = $42,000;
Step (4) Result of step 3 multiplied by the underreport factor (step
1); $42,000 x .80 = $33,600;
Step (5) Result of step 4 minus the occurrence deductible; $33,600-
$12,000 = $21,600;
Step (6) Result of step 5 multiplied by your share; $21,600 x 1.000
= $21,600 indemnity payment.
Your crop year deductible is reduced to $13,000 ($25,000-$12,000).
Your amount of insurance is reduced to $53,400 ($75,000-$21,600). You do
not restock unit 1 after the first loss. Values on unit 2 do not change
from those measured at the time of the loss on unit 1. Assume you have a
loss later in the crop year on unit 2. Unit value before loss on unit 2
is $65,000, unit value after loss on unit 2 is $0.00 and basic unit
value before loss on the basic unit is $83,000. Your loss would be
determined as follows:
[[Page 421]]
Step (1) Determine the remaining amount of insurance; $100,000-
$33,600 = $66,400;
Step (2) Determine the under-report factor; $66,400 / $83,000 =
.800;
Step (3) Determine the occurrence deductible; $25,000-$12,000 =
$13,000;
Step (4) Calculate the difference between unit value before loss and
unit value after loss; $65,000-$0.00 = $65,000;
Step (5) Result of step 4 multiplied by the underreport factor (step
2); $65,000 x .800 = $52,000;
Step (6) Result of step 5 minus the occurrence deductible; $52,000-
$13,000 = $39,000;
Step (7) Result of step 6 multiplied by your share; $39,000 x 1.000
= $39,000 indemnity payment.
[82 FR 61135, Dec. 27, 2017, as amended at 83 FR 16767, Apr. 17, 2018]
PARTS 458 459 [RESERVED]
PART 460_ADDITIONAL DISASTER PAYMENTS--Table of Contents
Subpart A_Prevented Planting Supplemental Disaster Payments
Sec.
460.1 Applicability.
460.2 Definitions.
460.3 Eligibility and qualifying causes of loss.
460.4 Calculating prevented planting supplemental disaster payments.
460.5 Timing and issuance of payments and payment limitations.
460.6 Adjusted prevented planting supplemental disaster payments and
repayment.
460.7 Requirement to purchase crop insurance.
Subpart B_Pandemic Cover Crop Program
460.8 Applicability.
460.9 Definitions.
460.10 Eligibility.
460.11 Calculating PCCP amounts for first insured crops.
460.12 Calculating PCCP amounts for WFRP.
460.13 Accounting for PCCP amounts.
Subpart C--[Reserved]
Authority: 7 U.S.C. 1506(i) and 1506(o); and Division N of the
Consolidated Appropriations Act, 2021 (Pub. L. 116-260).
Subpart A_Prevented Planting Supplemental Disaster Payments
Sec. 460.1 Applicability.
This subpart specifies the terms and conditions of prevented
planting supplemental disaster payments. Prevented planting supplemental
disaster payments provide additional compensation to producers prevented
from planting crops insured under crop insurance policy reinsured by the
Federal Crop Insurance Corporation (FCIC) due to disaster related
conditions. Prevented planting supplemental disaster payments are
applicable to 2019 crop year crops prevented from planting in 2019, as
determined by the Risk Management Agency (RMA).
Sec. 460.2 Definitions.
Approved Insurance Provider (AIP) means a legal entity which has
entered into a reinsurance agreement with FCIC for the applicable
reinsurance year and is authorized to sell and service policies or plans
of insurance under the Federal Crop Insurance Act.
Assignment of Indemnity means a transfer of crop insurance policy
rights whereby a policyholder assigns rights to an indemnity payment for
the crop year to creditors or other persons to whom they have a
financial debt or other pecuniary obligation.
Crop insurance policy means an insurance policy reinsured by FCIC
under the provisions of the Federal Crop Insurance Act, as amended. It
does not include private plans of insurance.
Crop year means the period within which the insured crop is normally
grown and is designated by the calendar year in which the insured crop
is normally harvested.
Federal Crop Insurance Act means the legal authority codified in 7
U.S.C. 1501-1524.
Final planting date means the latest date, established by RMA for
each insurable crop, by which the crop must initially be planted in
order to be insured for the full production guarantee or amount of
insurance per acre.
FCIC means the Federal Crop Insurance Corporation, a wholly owned
Government Corporation of USDA that administers the Federal crop
insurance program.
[[Page 422]]
FSA means the Farm Service Agency.
Insured crop means a crop for which the participant has purchased a
crop insurance policy from an AIP.
NAP means the Noninsured Crop Disaster Assistance Program under
section 196 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7333) and part 1437 of this title and administered by
FSA.
Person has the same meaning as defined in Sec. 457.8(1) of this
title.
Prevent plant base factor means the value announced by the Secretary
used to calculate the payment for crops covered under a plan of
insurance that is not a revenue protection plan of insurance, or is a
revenue protection plan of insurance with the harvest price exclusion
elected.
Prevent plant revenue factor means value announced by the Secretary
used to calculate the payment for crops covered under a plan of
insurance that provides revenue protection unless the harvest price
exclusion is elected for that crop.
Prevented planting means the inability to plant an insured crop with
proper equipment during the planting period as a result of an insured
cause of loss, as determined by the AIP.
Prevented planting payment means a payment made under a crop
insurance policy to compensate the policyholder when they are prevented
from planting an insured crop.
Qualifying prevented planting payment means a prevented planting
payment made under a crop insurance policy that qualifies for a
prevented planting supplemental disaster payment, as specified in this
subpart.
Revenue protection has the same meaning as defined in Sec. 457.8(1)
of this title.
Second crop has the same meaning as defined in Sec. 457.8(1) of
this title.
Sec. 460.3 Eligibility and qualifying causes of loss.
(a) To be eligible for a payment under this subpart, the participant
must be a person that is eligible to receive Federal benefits and has
purchased a crop insurance policy for the insured crop from an AIP.
(1) Participants will be eligible to receive a payment in this
subpart only if they were prevented from planting an insured crop due to
a qualifying cause of loss, as further specified in this subpart.
(2) A person is not eligible to receive benefits in this subpart if
at any time that person is determined to be ineligible for crop
insurance.
(b) Insured crops that are eligible for a payment under this subpart
are those crops for which the final planting date for the 2019 crop year
crop insurance policy is in the 2019 calendar year, as specified by the
Administrator.
(1) For insured crops with more than one final planting date in the
county, only those types or practices with a final planting date in the
2019 calendar year are eligible for payment under this subpart.
(2) Participants who are in violation of Highly Erodible Land or
Wetlands Conservation (16 U.S.C. 3811-12, 3821) for Federal crop
insurance are not eligible for payment under this subpart.
(c) A prevented planting payment will only be considered a
qualifying prevented planting payment if the participant is prevented
from planting the insured crop due to one of the following causes of
loss:
(1) Excess precipitation;
(2) Flood;
(3) Cold wet weather;
(4) Storm surge;
(5) Tornado;
(6) Volcanic activity; and
(7) Tropical depression, hurricane, or cyclone.
(d) A prevented planting payment received for failure to plant due
to any cause not included in paragraph (c) of this section is not
considered a qualifying prevented planting payment for the purpose of
this subpart.