[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13128]


[[Page Unknown]]

[Federal Register: May 31, 1994]


                                                   VOL. 59, NO. 103

                                              Tuesday, May 31, 1994

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

 

Common Crop Insurance Regulations; Coarse Grains Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes 
to establish provisions to insure coarse grains (corn, grain sorghum, 
and soybeans). The provisions will supplement the Common Crop Insurance 
Policy which contains standard terms and conditions common to most 
crops. This rule consolidates the provisions of insuring coarse grains 
into one policy and provides automatic coverage for late and prevented 
planting. The intended effect of this proposed rule is to move these 
individual crops to the Common Crop Insurance Policy for ease of use by 
the public and conformance among policy languages.

DATES: Written comments, data, and opinions on this proposed rule must 
be submitted no later than June 30, 1994, to be sure of consideration.

ADDRESSES: Written comments on this proposed rule should be sent to 
Mari Dunleavy, Regulatory and Procedural Development Staff, Federal 
Crop Insurance Corporation, USDA, Washington, DC 20250. Hand or 
messenger delivery may be made to suite 500, 2101 L St. NW., 
Washington, DC 20250.

FOR FURTHER INFORMATION CONTACT:
Mari L. Dunleavy, Regulatory and Procedural Development Staff, Federal 
Crop Insurance Corporation, USDA, Washington, DC 20250. Telephone (202) 
254-8314.

SUPPLEMENTARY INFORMATION: This action has been reviewed under USDA 
procedures established by Executive Order 12866 and Departmental 
Regulation 1512-1. This action constitutes a review as to the need, 
currency, clarity, and effectiveness of these regulations under those 
procedures. The sunset review date established for these regulations is 
March 1, 1999.
    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore, has not been reviewed by the 
Office of Management and Budget (OMB).
    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501 et seq.), the information collection or record-keeping 
requirements included in this proposed rule can be found in 7 CFR part 
400 subpart H.
    It has been determined under section 6(a) of Executive Order 12612, 
Federalism, that this proposal does not have sufficient federalism 
implications to warrant the preparation of a federalism assessment. The 
policies and procedures contained in this rule will not have 
substantial direct effects on states or their political subdivisions, 
or on the distribution of power and responsibilities among the various 
levels of government.
    This action would not have a significant impact on a substantial 
number of small businesses. The insurance companies delivering these 
policies will not increase the amount of work required over the 
previous policy delivery. The combination of a number of previously 
independent policies into one policy should reduce confusion and 
increase efficiency. Therefore, this action is determined to be exempt 
from the provisions of the Regulatory Flexibility Act and no Regulatory 
Flexibility Analysis was prepared.

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

    This program is not subject to the provisions of Executive Order 
12372 which requires intergovernmental consultation with state and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.
    The Office of General Counsel has determined that these regulations 
meet the applicable standards provided in subsections 2(a) and 2(b)(2) 
of Executive Order 12778. The provisions of this rule will preempt 
state and local laws to the extent such state and local laws are 
inconsistent herewith. The administrative appeal provisions located at 
7 CFR part 400, subpart J must be exhausted before judicial action may 
be brought.
    This action is not expected to have any significant impact on the 
quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.
    By separate rule, FCIC will limit the effect of the present 
policies covered by current crop endorsements to a period before the 
crop year for which this rule will be effective.
    The coarse grains crop provisions were developed to provide one 
policy form for insuring corn, grain sorghum, and soybeans. Using one 
policy for these three crops will:
    (1) Substantially reduce paperwork by issuing one policy rather 
than the three separate policies presently used;
    (2) Reduce the time required to amend or revise the provisions by 
eliminating the repetitious review process; and
    (3) Continue to allow insureds the flexibility to elect any of the 
three coarse grain crops they wish to insure.
    The principle proposed differences between the previous provisions 
for corn, grain sorghum, and soybeans and the new coarse grain 
provisions are as follows:
    1. FCIC has received numerous requests to revise the corn crop 
insurance provisions to allow producers to insure corn acreage intended 
to be harvested as grain on a grain basis, and corn acreage intended to 
be harvested as silage on a silage basis. The present corn provisions 
require all insurable corn acreage in a county to be insured on either 
a grain basis under the corn endorsement or a silage basis if the corn 
silage option is elected by the insured. FCIC proposes a change to the 
corn provisions to eliminate the corn silage option and permit the 
insured to separately designate acreage intended for harvest as grain 
and as silage.
    2. Subsection 1.(k) specifies that the local market price for corn 
will be the cash grain price per bushel for U.S. No. 2 yellow corn and 
is intended to clarify the quality adjustment standard. Current 
regulations state that this price will be for U.S. No. 2 corn.
    3. Subsection 1.(l) requires that acreage be initially planted in 
rows far enough apart to permit mechanical cultivation in order to be 
insurable under published rates and coverages unless otherwise allowed 
by the Special Provisions or by written agreement.
    4. Subsection 3.(a) requires that an insured may select only one 
price election for all the grain sorghum insured under this policy, 
only one price election for all the soybeans insured under this policy, 
only one price election for all the corn insured as silage under this 
policy, and only one price election for all the corn insured as grain 
under this policy.
    5. Subsection 3.(b) provides that when the insured harvests insured 
corn in a manner other than the manner initially reported (for example, 
reported grain but harvested as silage) and has not selected a price 
election for the type harvested, the insurer will assign a price 
election for the type harvested that bears the same percentage 
relationship to the maximum price election for the type harvested 
specified in the Special Provisions as does the price election selected 
by the insured for the reported type. This assigned price election will 
be used to determine the dollar value of production to count for 
indemnity purposes.
    6. Section 4 provides that the contract change date is November 30 
for all counties so as to maintain an adequate time period between this 
date and the revised cancellation dates (see item 7 below).
    7. Section 5 provides that cancellation and termination dates for 
coarse grains be changed to February 15 for Texas counties that 
currently have March 31 dates, to February 28 for states that currently 
have March 31 dates, and to March 15 in states and counties that 
currently have April 15 dates. The cancellation and termination dates 
for corn and grain sorghum have been changed to January 15 for Texas 
counties that currently have February 15 dates. These changes are 
intended to reduce the probability that the insured may make a 
determination of whether to buy insurance on the probability that a 
loss may occur or has already occurred.
    8. Paragraph 6.(a)(2) requires that the grain variety planted must 
be adapted to the area based on days to maturity and compatibility with 
agronomic and weather conditions.
    9. Paragraph 6.(a)(3) permits requests to insure coarse grains 
planted into an established grass or legume or interplanted with 
another crop. This provision makes insurance available by written 
agreement for crops grown with a production practice that is not 
normally followed in an area. The guarantee and premium rate will be 
based on the specific production practice.
    10. Paragraph 6.(b)(2) and subparagraph 6.(b)(2)(i) specify the 
types of field corn (e.g., yellow dent corn, white corn, mixed yellow 
and white corn, waxy corn, and high-lysine corn) that are insurable at 
standard premium rates. If a written agreement allows, the insured may 
insure special purpose corn, including high-amylose, high-oil, high-
protein, flint, flour, Indian, and blue corn, a variety genetically 
adapted to provide forage for wildlife or any other open pollinated 
corn. The special purpose written agreement will contain a premium rate 
based on the specific type. This provision makes insurance available by 
written agreement for kinds of field corn that are less commonly 
produced.
    11. Paragraph 6.(b)(2)(ii) provides that a variety of corn adapted 
for use as silage only is not insurable when the corn is reported as 
grain. This change prevents standard grain insurance guarantees from 
attaching to silage varieties which may not produce as high as grain 
varieties.
    12. Subsection 6.(c) permits consideration for requests to insure 
corn on a silage basis when the actuarial table does not provide a 
premium rate for silage, and for requests to insure corn on a grain 
basis when the actuarial table does not provide a premium rate for 
grain. This provision makes insurance available by written agreement 
for a type which may not normally be grown in the area and which must 
have a guarantee and premium rate based on the specific grain type and 
production practice.
    13. Paragraph 6.(d)(3) permits consideration for requests to insure 
a dual-purpose type of grain sorghum (a type used for both grain and 
forage). This provision makes insurance available by written agreement 
for a type of grain which may not normally be grown in the area and 
which must have a guarantee and premium rate based on the specific 
grain type and production practice.
    14. Current provisions for corn and grain sorghum that state that 
any acreage destroyed to comply with United States Department of 
Agriculture programs will not be insured have been deleted from the 
proposed coarse grains crop provisions. Under those provisions 
insurance was provided on a crop until it was destroyed without any 
premium being paid.
    15. Section 7 provides that any acreage damaged prior to the final 
planting date, to the extent that the remaining stand will not produce 
at least 90 percent of the production guarantee, must be replanted 
unless the insurer agrees that replanting is not practical. This 
requirement to replant is currently in effect, but fails to clearly 
indicate the percent of damage that requires replanting.
    16. Subsections 8.(a) and (b) specify different end of insurance 
period dates for corn acreage insured as grain and for corn acreage 
insured as silage. These provisions allow the insurance period to be 
based on the type reported since this is the basis for the premium 
charged, not the type harvested, and the insurance risk changes by type 
after a specific period.
    17. Subsection 10.(a) does not allow a replanting payment for any 
acreage replanted more than 25 days after the final planting date since 
it could be generally impractical to replant.
    18. Subsection 10.(b) limits the replanting payment per acre to the 
lesser of 20 percent of the production guarantee or eight bushels for 
corn insured as grain, one tone for corn insured as silage, seven 
bushels for grain sorghum, and three bushels for soybeans, multiplied 
by the insured's price election multiplied by the insured's share. 
Current provisions do not contain the 20 percent limitation. It was 
added to prevent insureds, who elect a lower coverage level, from 
receiving a replanting payment that exceeds the original liability.
    19. Subsection 10.(c) allows replanting payments in excess of the 
insured share to be made to insureds if there is an agreement between 
the shareholders that:
    (1) Requires one person to incur the entire cost of replanting; or
    (2) Gives the right to any replanting payment to a single insured 
person, who incurred the cost of replanting.
    20. Subsection 10.(d) requires that the liability for the unit be 
reduced by the amount of the replanting payment attributable to the 
insured's share if the acreage is replanted with a method that is not 
insurable for an original planting.
    21. Paragraphs 11.(b)(1) and 11.(b)(2) require that for any corn 
unit that has two different dates for the end of the insurance period 
(a separate end of insurance period date for grain and for silage), the 
insured is required to:
    (1) Give notice of damage within 72 hours of initial discovery of 
damage (but not later than 15 days after the earliest end of the 
insurance period for the unit) if damage occurs before the earliest end 
of the insurance period for the unit; and
    (2) Submit a claim for indemnity declaring the amount of loss not 
later than 60 days after the latest date for the end of insurance 
period for the unit.
    22. Paragraph 12.(b)(2) modifies calculations of corn claims for 
indemnity. The production guarantee for each type reported will be 
multiplied by the insured acreage for that type and further multiplied 
by the appropriate price election. The guarantee for the unit will be 
the sum of these calculations for each type. Production to count of 
each type will be multiplied by the appropriate price election. The 
total value of production to count is the sum of these calculations for 
each type. An indemnity is payable if the guarantee exceeds the value 
of production to count. This modification is necessary to accommodate 
both grain and silage guarantees and grain and silage production to 
count within a unit.
    23. Subsection 12.(d) provides that all production to count will be 
determined in bushels for grain and in tons for silage. Production to 
count for harvested acreage will be according to the method of harvest 
and for unharvested acreage according to the information contained on 
the acreage report, except as otherwise provided.
    24. Subsection 12.(e) allows adjustments to production for 
excessive moisture to be made separately from any adjustments for 
quality defenciencies. This change is made because wide variations in 
charges associated with the drying and handling of high moisture 
production has caused production of equal quality and moisture content 
to be valued differently. These differences in value caused inequities 
in indemnity payments under the current policy.
    25. Subparagraph 12.(e)(1)(i) allows adjustment of production to 
count when corn moisture exceeds 15.0 since this is the most commonly 
used percentage in corn markets. Current corn provisions allow 
production to be adjusted for moisture in excess of 15.5 percent but 
not exceeding 40 percent.
    26. Paragraph 12.(e)(4) provides that coarse grain production that 
is eligible for quality adjustment will be reduced by the quality 
adjustment factor contained in the Special Provisions.

List of Subjects in 7 CFR Part 457

    Crop insurance, corn, grain sorghum, soybean.

Proposed Rule

    Pursuant to the authority contained in the Federal Crop Insurance 
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance 
Corporation hereby proposes to amend the Common Crop Insurance 
Regulations, (7 CFR part 457) to read as follows:

PART 457--COMMON CROP INSURANCE; REGULATIONS FOR THE 1994 AND 
SUBSEQUENT CONTRACT YEARS

    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

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

    2. 7 CFR part 457 is amended by adding a new section, 457.113 
Coarse Grains Crop Insurance Provisions, to read as follows:


Sec. 457.113  Coarse grains crop insurance provisions.

    The Coarse Grains Crop Insurance Provisions for the 1995 and 
succeeding crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Coars Grains Crop Provisions

    If a conflict exists between the Common Crop Insurance Policy 
(Sec. 457.8) and the Special Provisions, the Special Provisions will 
control. If a conflict exists between these Crop Provisions and the 
Special Provisions, the Special Provisions will control.

1. Definitions

    (a) Coarse grains--Corn, grain sorghum, and soybeans.
    (b) Days--Calendar days.
    (c) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (d) Good farming practices--Good farming practices are the 
cultural practices generally in use in the county for the insured 
crop to make normal progress toward maturity and produce at least 
the yield used to determine the production guarantee and are those 
recognized by the Cooperative Extension Service as compatible with 
agronomic and weather conditions in the area.
    (e) Grain sorghum--The crop defined as sorghum under the United 
States Grain Standards Act.
    (f) Harvest--Combining, threshing, or picking the insured crop 
for grain, or cutting for hay, silage, or fodder.
    (g) Interplanted--Acreage on which two or more crops are planted 
in a manner that does not permit separate agronomic maintenance or 
harvest of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which 
water is artificially applied during the growing season by 
appropriate systems, and at the proper times, with the intention of 
providing the quantity of water needed to produce at least the yield 
used to establish the irrigated production guarantee on the 
irrigated acreage planted to the insured crop.
    (i) Late planted--Acreage planted to the insured crop during the 
late planting period.
    (j) Late planting period--The period that begins the day after 
the final planting date for the insured crop and ends twenty-five 
(25) days after the final planting date.
    (k) Local market price--The cash grain price per bushel for the 
U.S. No. 2 yellow corn, U.S. No. 2 grain sorghum, or U.S. No. 1 
soybeans, offered by buyers in the area in which you normally market 
the insured crop. The local market price will reflect the maximum 
limits of quality deficiencies allowable for the U.S. No. 2 grade 
for yellow corn and grain sorghum, or U.S. No. 1 grade soybeans. 
Factors not associated with grading under the Official United States 
Standards for Grain, including but not limited to protein and oil 
will not be considered.
    (l) Planted acreage--Land in which seed has been placed by a 
machine appropriate for the insured crop and planting method, at the 
correct depth, into a seedbed which has been properly prepared for 
the planting method and production practice. Coarse grains must 
initially be planted in rows far enough apart to permit mechanical 
cultivation to be considered planted. Planting in any other manner 
will be considered as a failure to follow recognized good farming 
practices and any loss of production will not be insured unless 
otherwise provided by the Special Provisions or by written agreement 
to insure such crop.
    (m) Practical to replant--In lieu of subsection 1.(ff) of the 
Common Crop Insurance Policy (Sec. 457.8) practical to replant is 
defined as follows: Our determination, after loss or damage to the 
insured crop, based on factors including, but not limited to 
moisture availability, condition of the field, and time to crop 
maturity that replanting to the insured crop will allow the crop to 
attain maturity and to produce at least ninety percent (90%) of the 
production guarantee prior to the calendar date for the end of the 
insurance period. It will not be considered practical to replant 
after the end of the late planting period unless replanting is 
generally occurring in the area.
    (n) Prevented planting--Inability to plant the insured crop with 
proper equipment by:
    (1) The final planting date designated in the Special Provisions 
for the insured crop in the country; or
    (2) The end of the late planting period.
    You must have been unable to plant the insured crop due to an 
insured cause of loss that has prevented most producers in the 
surrounding area from planting due to similar insurable causes. The 
insured cause of prevented planting must occur between the sales 
closing date and the final planting date for the insured crop in the 
county or within the late planting period.
    (o) Production guarantee--The number of bushels (tons for corn 
insured as silage) determined by multiplying the approved yield per 
acre by the coverage level percentage you elect.
    (p) Replanting--Performing the cultural practices necessary to 
replace the seed of the same insured crop, and replacing the seed 
for the same crop in the insured acreage with the expectation of 
growing a successful crop.
    (q) Silage--Severing the plant from the land and chopping it for 
the purpose of livestock feed.
    (r) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the 
county.
    (s) Ton--Two thousand (2000) pounds avoirdupois.
    (t) Written agreement--Designated terms of this policy may be 
altered by written agreement. Any request for such written agreement 
must be made at least fifteen (15) days prior to the sales closing 
date and the terms of such agreement must be offered and accepted in 
writing prior to the sales closing date. Each agreement is for one 
year only and if not specifically renewed the following year 
continuous insurance will be in accordance with the printed policy. 
All variable terms including, but not limited to, crop variety, 
guarantee, premium and price election must be set out in the written 
agreement.

2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8), 
may be divided into optional units if, for each optional unit you 
meet all the conditions of this section or if a written agreement to 
such division exists. All optional units must be reflected on the 
acreage report for each crop year.
    (a) You must have records, which can be independently verified, 
of planted acreage and production for each optional unit for at 
least the last crop year used to determine your production 
guarantee.
    (b) You must plant the crop in a manner that results in a clear 
and discernable break in the planting pattern at the boundaries of 
each optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that 
we can verify the production from each optional unit or the 
production from each unit must be kept separate until after loss 
adjustment under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional 
unit is located in a separate legally identified Section. In the 
absence of Sections, we may consider parcels of land legally 
identified by other methods of measure including, but not limited 
to: Spanish grants, railroad surveys, leagues, labors, or Virginia 
Military Lands as the equivalent of Sections for unit purposes. In 
areas which have not been surveyed using the systems identified 
above or another system approved by us, or in areas where such 
systems exist but boundaries are not readily discernable, each 
optional unit must be located in a separate farm identified by a 
single ASCS Farm Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing 
optional units by section, section equivalent, or ASCS Farm Serial 
Number, optional units may be established based on irrigated acreage 
or non-irrigated acreage if both are located in the same Section, 
section equivalent, or ASCS Farm Serial Number. The irrigated 
acreage may not extend beyond the point at which your irrigation 
system can deliver the quantity of water needed to produce the yield 
on which your guarantee is based and you may not continue into non-
irrigated acreage in the same rows or planting pattern. You must 
plant, cultivate, fertilize, or otherwise care for the irrigated 
acreage and the non-irrigated acreage in accordance with recognized 
good irrigated farming practices.
    Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other 
than as described under this section. If you do not comply fully 
with these provisions, we will combine all optional units which are 
not in compliance with these provisions into the basic unit from 
which they were formed. We may combine the optional units at any 
time we discover that you have failed to comply with these 
provisions. If failure to comply with these provisions is determined 
to be inadvertent, and the optional units are combined, the premium 
paid for the purpose of electing optional units will be refunded to 
you.

3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities

    (a) In addition to the requirements under section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Common Crop Insurance Policy (Sec. 457.8) you may select:
    (1) For grain sorghum and soybeans, only one price election for 
each crop in the county insured under this policy; and
    (2) For corn, only one price election for all the corn in the 
county insured as grain under this policy, and only one price 
election for all the corn in the county insured as silage under this 
policy.
    (b) For corn only, to determine the dollar value of production 
to count for indemnity purposes, if you harvest the crop in a manner 
other than the manner you reported (for example, you reported grain 
but harvested as silage) and you did not select a price election for 
the type harvested, we will assign a price election for the type 
harvested that bears the same percentage relationship to the maximum 
price election you selected for the type reported (for example, if 
you selected a grain price election in the amount of 80% of the 
maximum price election for grain and you did not select a silage 
price election, we will assign a silage price election in the amount 
of 80% of the maximum price election for silage specified in the 
Special Provisions if you harvest for silage).

4. Contract Changes

    The contract change date is November 30 preceding the 
cancellation date (see the provisions under section 4 (Contract 
Changes) of the Common Crop Insurance Policy (Sec. 457.8)).

5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Common Crop Insurance 
Policy (Sec. 457.8), the cancellation and termination dates are:

------------------------------------------------------------------------
                                                        Cancellation and
                   State and county                        termination  
                                                              dates     
------------------------------------------------------------------------
(a) For corn and grain sorghum:                                         
  Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson,     January 15.     
   Karnes, Golaid, Victoria, and Jackson Counties,                      
   Texas, and all Texas counties lying south thereof.                   
  El Paso, Hudspeth, Culberson, Reeves, Loving,         February 15.    
   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 an 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.    
   Georgia; Louisiana; Mississippi; Nevada; North                       
   Carolina; and South Carolina.                                        
  All other Texas counties and all other states.......  March 15.       
(b) For soybeans:                                                       
  Jackson, Victoria, Goliad, Bee, Live Oak, McMullen,   February 15.    
   LaSalle, and Dimmit Couinties, Texas and all Texas                   
   counties lying south thereof.                                        
  El Paso, Hudspeth, Culberson, Reeves, Loving,         February 15.    
   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 Marverick,                         
   Zavala, Frio, Atascosa, Karnes, De Witt, Lavaca,                     
   Colorado, Wharton, and Matagorad Counties, Texas.                    
  Alabama; Arizona; Arkansas; California; Florida;      February 28.    
   Georgia; Louisiana; Mississippi; Nevada; North                       
   Carolina; and South Carolina.                                        
  All other Texas counties and all other states.......  March 15.       
------------------------------------------------------------------------

6. Insured Crop

    (a) In accordance with section 8 (Insured Crop) of the Common 
Crop Insurance Policy (Sec. 457.8), the crop insured will be each 
coarse grain crop you elect to insure for which premium rates are 
provided by the actuarial table:
    (1) In which you have a share;
    (2) That is adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area; and
    (3) That is not (unless a written agreement allows otherwise):
    (i) Interplanted with another crop except as allowed in 
paragraph 6.(b)(1); or
    (ii) Planted into an established grass or legume.
    (b) For corn only, in addition to the provisions of subsection 
6.(a), the corn crop insured will be all of the field corn that is:
    (1) Planted for harvest either as grain or as silage (see 
subsection 6.(c)). A mixture of corn and sorghum (grain or forage-
type) will be insured as corn silage if the sorghum does not 
constitute more than twenty percent (20%) of the plants;
    (2) Yellow dent or white corn, including mixed yellow and white, 
waxy or high-lysine corn, and excluding:
    (i) High-amylose, high-oil, high-protein, flint, flour, Indian, 
or blue corn, or a variety genetically adapted to provide forage for 
wildlife or any other open pollinated corn, unless a written 
agreement allows insurance of such excluded crops.
    (ii) A ``silage variety'' of corn (a variety of corn adapted for 
silage use only) when the corn is reported for insurance as grain.
    (c) For corn only, if the actuarial table for the county 
provides a premium rate for:
    (1) Both grain and silage, all insurable acreage will be insured 
as the type or types reported by you on or before the acreage 
reporting date;
    (2) Grain but not silage, all insurable acreage will be insured 
as grain unless a written agreement allows insurance on all or a 
portion of the insurable acreage as silage; or
    (3) Silage but not grain, all insurable corn acreage will be 
insured as silage unless a written agreement allows insurance on all 
or a portion of the insurable acreage as grain.
    (d) For grain sorghum only, in addition to the provisions of 
subsection 6.(a), the grain sorghum crop insured will be all of the 
grain sorghum in the county:
    (1) That is planted for harvest as grain;
    (2) That is combine-type hybrid grain sorghum (grown from hybrid 
seed); and
    (3) That is not a dual-purpose type of grain sorghum (a type 
used for both grain and forage), unless a written agreement allows 
insurance of such grain sorghum.
    (e) For soybeans only, in addition to the provisions of 
subsection 6.(a), the soybean crop insured will be all of the 
soybeans in the county that are planted for harvest as beans.

7. Insurable Acreage

    In addition to the provisions under section 9 (Insurable 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), any 
acreage of the insured crop damaged before the final planting date, 
to the extent that the remaining stand will not produce at least 
ninety percent (90%) of the production guarantee, must be replanted 
unless we agree that replanting is not practical (see subsection 
1.(m)).

8. Insurance Period

    In accordance with the provisions under section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
calendar date for the end of the insurance period is the date 
immediately following planting as follows: 

(a) For corn insured as grain:                                          
  (1) Val Verde, Edwards, Kerr, Kendall, Bexar,       September 30;     
   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.                                                
  and                                                                   
  (3) All other counties and states.................  December 10;      
(b) For corn insured as silage:                                         
  All states........................................  September 30;     
(c) For grain sorghum:                                                  
  (1) Val Verde, Edwards, Kerr, Kendall, Bexar,       September 30; and 
   Wilson, Karnes, Goliad, Victoria, and Jackson                        
   Counties, Texas, and all Texas counties lying                        
   south thereof.                                                       
  (2) All other Texas counties and all other states.  December 10;      
  and                                                                   
  (d) For soybeans: all states......................  December 10.      
                                                                        

9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) 
of the Common Crop Insurance Policy (Sec. 457.8), insurance is 
provide only against the following causes of loss which occur within 
the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply.

10. Replanting Payments.

    (a) In accordance with section 13 (Replanting Payment) of the 
Common Crop Insurance Policy (Sec. 457.8), replanting payments for 
coarse grains are allowed if the coarse grains are damaged by an 
insurable cause of loss to the extent that the remaining stand will 
not produce at least ninety percent (90%) of the production 
guarantee for the acreage and replanting takes place not later than 
25 days after the final planting date.
    (b) The maximum amount of the replanting payment per acre will 
be the lesser of twenty percent (20%) of the production guarantee or 
the number of bushels (tons for corn insured as silage) shown below, 
multiplied by your price election multiplied by your share:
    (1) Corn:
    (i) Grain--8 bushels;
    (ii) Silage--1 ton;
    (2) Grain sorghum--7 bushels; and
    (3) Soybeans--3 bushels.
    (c) When more than one person insures the same crop on a share 
basis, a replanting payment based on the total shares insured may be 
made to the insured person who incurs the total cost of replanting. 
Payment will be made in this manner only if an agreement exists 
between the insured persons which:
    (1) Requires one person to incur the entire cost of replanting; 
or
    (2) Gives the right to all replanting payments to one person.
    (d) When the insured crop is replanted using a practice that is 
uninsurable as an original planting, the liability for the unit will 
be reduced by the amount of the replanting payment which is 
attributable to your share. The premium amount will not be reduced.

11. Duties in the Event of Damage or Loss

    (a) In accordance with the requirements of section 14 (Duties in 
the Event of Damage or Loss) of the Common Crop Insurance Policy 
(Sec. 457.8), if you initially discover damage to any insured crop 
within 15 days of or during harvest, you must leave representative 
samples of the unharvested crop for our inspection. The samples must 
be at least 10 feet wide and extend the entire length of each field 
in the unit, and must not be harvested or destroyed until the 
earlier of our inspection or 15 days after harvest of the balance of 
the unit is completed.
    (b) For any corn unit that has separate dates for the end of the 
insurance period (grain and silage):
    (1) In lieu of paragraph 14.(a)(2) of the Common Crop Insurance 
Policy (Sec. 457.8), if damage occurs before the earliest date 
(grain or silage) for the end of the insurance period, you must give 
us notice within 72 hours of your initial discovery of damage (but 
not later than 15 days after that earliest date); and
    (2) In lieu of subsection 14.(c) of the Common Crop Insurance 
Policy (Sec. 457.8), in addition to complying with all other notice 
requirements, you must submit a claim for indemnity declaring the 
amount of your loss not later than 60 days after the latest date for 
the end of insurance period for the unit. This claim must include 
all the information we require to settle the claim.

12. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide records of production.
    (1) For any optional unit, we will combine all optional units 
for which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim:
    (1) For grain sorghum and soybeans by:
    (i) Multiplying the lesser of the reported or determined acreage 
by the production guarantee;
    (ii) Subtracting from this the total production to count;
    (iii) Multiplying the remainder by your price election; and
    (iv) Multiplying this result by your share.
    (2) For corn by:
    (i) Multiplying the lesser of the reported or determined acres 
of each type grain/silage) by the production guarantee for that 
type;
    (ii) Multiplying each result by the price election for each 
type;
    (iii) Adding these values;
    (iv) Multiplying the production to count of each type (see 
subsection 12.(d)) by the price election for that type (see the 
provisions under section 3 (Insurance Guarantees, Coverage Levels, 
and Prices for Determining Indemnities));
    (v) adding these dollar values;
    (vi) subtracting the results of step (v) from the results of 
step (iii); and
    (vii) multiplying the result by your share.
    (c) The total production in bushels (tons for corn silage) (see 
subsection 12.(d)) to count from all insurable acreage on the unit 
will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may 
be adjusted for quality deficiencies and excess moisture in 
accordance with subsection 12.(e));
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you 
and we agree on the appraised amount of production. Upon such 
agreement the insurance period for that acreage will end if you put 
the acreage to another use or abandon the crop. If agreement on the 
appraised amount of production is not reached:
    (A) If you do not elect to continue to care for the crop we will 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative 
samples of the crop in locations acceptable to us (The amount of 
production to count for such acreage will be based on the harvested 
production or appraisals from the samples at the time harvest should 
have occurred. If you do not leave the required samples intact, or 
you fail to provide sufficient care for the samples, our appraisal 
made prior to giving you consent to put the acreage to another use 
will be used to determine the amount of production to count.); 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) The production to count for corn will be in bushels for 
grain and in tons for silage as follows:
    (1) For harvested acreage, according to the method of harvest; 
and
    (2) For unharvested acreage, according to the information 
contained on your acreage report; except as otherwise provided in 
paragraph 12.(c)(1).
    (e) Mature coarse grain production (excluding corn insured or 
harvested as silage) may be adjusted for excess moisture and quality 
deficiencies. Corn insured or harvested as silage will be adjusted 
for excess moisture and quality only as specified in subsection 
12.(f).
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of:
    (i) Fifteen percent (15%) for corn (If moisture exceeds 30 
percent (30%), production will be reduced 0.2 percent for each 0.1 
percentage point above 30 percent (30%));
    (ii) Fourteen percent (14%) for grain sorghum; and
    (iii) Thirteen percent (13%) for soybeans.
    We may obtain samples of the production to determine the 
moisture content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official 
United States Standards for Grain, result in:
    (A) Corn not meeting the grade requirements for U.S. No. 4 
(grades U.S. No. 5 or worse) because of test weight or kernel damage 
(excluding heat damage), or having a musty, sour, or commercially 
objectionable foreign odor;
    (B) Grain sorghum not meeting the grade requirements for U.S. 
No. 4 (grades U.S. Sample grade) because of test weight or kernel 
damage (excluding heat damage), or having a musty, sour, or 
commercially objectionable foreign odor (except smut odor), or meets 
the special grade requirements for smutty grain sorghum; or
    (C) Soybeans not meeting the grade requirements for U.S. No. 4 
(grade U.S. Sample grade) because of test weight, 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) 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 licensed under the 
authority of the United States Grain Standards Act or the United 
States Warehouse Act with regard to deficiencies in quality, or by a 
laboratory approved by us with regard to substances or conditions 
injurious to human or animal health. (Test weight for quality 
adjustment purposes may be determined by our loss adjuster.)
    (4) Coarse grain production that is eligible for quality 
adjustment, as specified in paragraphs 12.(e)(2) and (3), will be 
reduced by the quality adjustment factor contained in the Special 
Provisions.
    (f) For corn insured or harvested as silage:
    (1) Whenever our appraisal of grain content is less than 4.5 
bushels of grain per ton of silage, the silage production will be 
reduced by 1 percentage point for each 0.1(1/10) of a bushel less 
than 4.5 bushels per ton, (If we cannot make a grain appraisal 
before harvest and you do not leave a representative unharvested 
sample, 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 prior to October 
1, we may increase the silage production to count to 65 percent 
(65%) moisture equivalent to reflect the normal moisture content of 
silage harvested during the normal silage harvesting period.
    (g) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.

13. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be 
provided for acreage planted to the insured crop during the late 
planting period (see subsection 13.(c)), and acreage you were 
prevented from planting (see subsection 13.(d)). These coverages 
provide reduced production guarantees. The reduced guarantees will 
be combined with the production guarantee for timely planted acreage 
for each unit. The premium amount for late planted acreage and 
eligible prevented planting acreage will be the same as that for 
timely planted acreage. If the amount of premium you are required to 
pay (gross premium less our subsidy) for late planted acreage or 
prevented planting acreage exceeds the liability on such acreage, 
coverage for those acres will not be provided (no premium will be 
due and no indemnity will be paid for such acreage). (For example, 
assume you insure one unit in which you have a 100 percent (100%) 
share. The unit consists of 150 acres, of which 50 acres were 
planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of 
any indemnity which may be due to you, the production guarantee for 
the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by 93 percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by 50 percent (0.5) 
and multiply the result by the 50 acres eligible for prevented 
planting coverage.
    The total of the three calculations will be the production 
guarantee for the unit. Your premium will be based on the result of 
multiplying the per acre production guarantee for timely planted 
acreage by the 150 acres in the unit.)
    (b) You must provide written notice to us if you were prevented 
from planting (see subsection 1.(n)). This notice must be given not 
later than three (3) days after:
    (1) The final planting date if you have unplanted acreage that 
may be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period 
on any unit that may have acreage eligible for prevented planting 
coverage.
    (c) Late Planting.
    (1) For acreage planted to the insured crop after the final 
planting date but on or before 25 days after the final planting 
date, the production guarantee for each acre will be reduced for 
each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report the dates the acreage is planted within the late planting 
period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special 
Provisions for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late 
Planting Period)
    (1) If you were prevented from planting the insured crop (see 
subsection 1.(n)), you may elect:
    (i) To plant the insured crop during the late planting period 
(the production guarantee for such acreage will be determined in 
accordance with paragraph 13.(c)(1));
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year, (the production guarantee for such 
acreage will be fifty percent (0.5) of the production guarantee for 
timely planted acres, (For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented 
planting production guarantee would be equivalent to 15 bushels per 
acre (30 bushels multiplied by 0.5). This paragraph does not 
prohibit the preparation and care of the acreage for conservation 
practices, such as planting a cover crop, as long as such crop is 
not intended for harvest.); or
    (iii) To plant the insured crop after the late planting period, 
(the production guarantee for such acreage will be fifty percent 
(0.5) of the production guarantee for timely planted acres, (For 
example, if your production guarantee for timely planted acreage is 
30 bushels per acre, your prevented planting production guarantee 
would be equivalent to 15 bushels per acre (30 bushels multiplied by 
0.5). Production to count for such acreage will be determined in 
accordance with subsections 12.(c) through (g)).
    (2) In addition to the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
beginning of the insurance period for prevented planting coverage is 
the sales closing date designated in the Special Provisions for the 
insured crop in the county.
    (3) Unless a written agreement is in place to the contrary, the 
acreage to which prevented planting coverage applies will be limited 
as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to the insured crop on each ASCS 
Farm Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing 
date);
    (B) The ASCS base acreage for the insured crop, if applicable, 
reduced by any acreage reduction applicable to the farm under any 
program administered by the United States Department of Agriculture; 
or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to the insured crop during the crop years 
that were used to determine your yield.
    (ii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres properly prepared to carry 
out an irrigated practice.
    (iii) A prevented planting production guarantee will not be 
provided for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit, whichever is less;
    (B) Land for which the actuarial table does not designate a 
premium rate unless a written agreement is in place designating such 
premium rate;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program 
administered by the United States Department of Agriculture;
    (D) Land on which any crop, other than the insured crop, has 
been planted and is intended for harvest, or has been harvested in 
the same crop year; or
    (E) Land which planting history or conservation plans indicate 
would remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for 
prevented planting coverage, acreage for all units will be combined 
and be reduced by the number of acres of the insured crop timely 
planted and planted after the final planting date. (For example, 
assume you have 100 acres eligible for prevented planting coverage 
in which you have a 100 percent (100%) share. The acreage is located 
in a single ASCS Farm Serial Number which you insure as two separate 
optional units consisting of 50 acres each. If you planted 60 acres 
of the insured crop on one optional unit and 40 acres of the insured 
crop on the second optional unit, your prevented planting eligible 
acreage would be reduced to zero. (100 acres eligible for prevented 
planting coverage minus 100 acres planted equals zero). If you 
report more insured crop acreage under this contract than is 
eligible for prevented planting coverage, we will allocate the 
eligible acreage to insured units based on the number of prevented 
planting acres and share you reported for each unit.)
    (4) When the ASCS Farm Serial Number covers more than one unit, 
or a unit consists of more than one ASCS Farm Serial Number, the 
covered acres will be pro-rated based on the number of acres in each 
unit or ASCS Farm Serial Number that could have been planted to the 
insured crop in the crop year.
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report any insurable acreage you were prevented from planting. This 
report must be submitted on or before the acreage reporting date, 
even though you may elect to plant the acreage after the late 
planting period. Any acreage you report as eligible for prevented 
planting coverage which is not eligible will be deleted from 
prevented planting coverage.

    Done in Washington, DC, on May 24, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-13128 Filed 5-27-94; 8:45 am]
BILLING CODE 3410-08-M