[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: 94-13129]


[[Page Unknown]]

[Federal Register: May 31, 1994]


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


DEPARTMENT OF AGRICULTURE
7 CFR Part 457

 

Common Crop Insurance Regulations; Extra Long Staple Cotton Crop 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes 
provisions for extra long staple (ELS) cotton insurance. These proposed 
provisions are contained in an endorsement to the Common Crop Insurance 
Policy which contains standard terms and conditions common to most 
crops. The intended effect of this proposed rule is to provide insureds 
with the terms of their insurance in one comprehensive policy with 
terms identical throughout the policies reinsured by the FCIC.

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 deliver may be made to 2101 L Street NW., suite 500, 
Washington, DC.

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 ``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 400 
subpart H.
    It has been determined under section 6(a) of Executive Order 12612, 
that this proposed rule 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 will not have a significant impact on a substantial 
number of small businesses. This action reduces the paperwork burden on 
the insured farmer, the reinsured company, and sales and service 
contractor. 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 the 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.
    Upon publication of 7 CFR 457.105 as a final rule, the provisions 
for insuring ELS cotton contained herein will replace the current ELS 
cotton endorsement contained in 7 CFR 401.121. That regulation will be 
amended to restrict the crop years of application to those prior to the 
crop years herein.
    This rule makes minor editorial and format changes to improve its 
compatibility with the Common Crop Insurance Policy. In addition, FCIC 
is proposing other changes in the provisions for insuring ELS cotton as 
follows:
    1. Subsection 1.(n)--The definition of ``replanting'' is redefined 
to include acreage replanted to ELS cotton. The current definition 
includes only acreage that is replanted to American Upland Cotton after 
initially being planted to ELS cotton. This change is made because in 
some situations (especially before the ELS cotton final planting date) 
it may be more beneficial for both the insurer and the insured to 
replant to ELS cotton.
    2. Section 5--The cancellation and termination dates are changed to 
March 15 in all states. These changes are intended to reduce the 
probability that the insured may make a determination as to the 
purchase of insurance on the probability that a loss may occur or has 
already occurred.
    3. The current provisions for ELS cotton indicating that any 
acreage destroyed to comply with United States Department of 
Agriculture programs will not be insured, are not included in the 
proposed ELS Cotton Provisions. Under those provisions, insurance was 
provided on a crop until it was destroyed without any premium being 
paid.
    4. The current provisions for ELS cotton indicating that insurance 
will end upon removal of the cotton from the field are not included in 
the proposed ELS Cotton Provisions. The insurance period will end upon 
harvest of the unit as provided under section 11 (Insurance Period) of 
the Common Crop Insurance Policy (Sec. 457.8).
    5. Paragraph 7.(b)--Provides that any acreage damaged prior to the 
final planting date, to the extent that the remaining stand will not 
produce at least 90% of the production guarantee, must be replanted 
unless the insurer agrees that replanting is not practical.
    6. Section 10--The current provisions state that in the event of 
damage or loss, any required unharvested samples of cotton must remain 
intact for 15 days after notice of damage, but the provisions do not 
indicate that this requirement includes the cotton stalks. Proposed 
provisions state that cotton stalks and any required unharvested 
samples of the crop must not be destroyed or harvested until the 
earlier of our inspection or 15 days after harvest is completed on the 
unit.
    7. Paragraph 11.(c)(2)--Clarifies that cotton retrieved from the 
ground will be considered production to count.
    8. Subsection 11.(d)--The date on which prices for quality 
adjustment purposes are determined is changed from the time of final 
notice of loss to the date the last bale from the insured unit is 
classed.
    9. Subsection 11--(e)--Indicates ELS cotton must be ginned at a 
facility using roller equipment in order to be eligible for quality 
adjustment. This clarification will eliminate indemnities for poor 
quality caused by inappropriate ginning equipment and not by an insured 
cause of loss.

List of Subjects in 7 CFR Part 457

    Crop insurance, ELS cotton.

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; 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, 457.105 ELS 
Cotton Crop Insurance Provisions, to read as follows:


Sec. 457.105  Extra Long Staple Cotton Crop Insurance Provisions.

    The Extra Long Staple Cotton Crop Insurance Provisions for the 1995 
and succeeding crop years are as follows:

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

ELS Cotton Crop Provisions

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

1. Definitions

    (a) Cotton--Varieties identified as Extra Long Staple (ELS) 
cotton and American Upland (AUP) cotton if ELS cotton is destroyed 
by an insured cause and acreage is replanted to AUP cotton.
    (b) Days--Calendar Days.
    (c) ELS cotton--Extra Long Staple cotton (also called Pima 
cotton, American-Egyptian cotton, and American Pima cotton).
    (d) Final planting date--The date contained in the Special 
Provisions by which the insured crop must initially be planted in 
order to be insured for the full production guarantee.
    (e) Good farming practices--The cultural practices in use in the 
country for the insured crop to make normal progress toward maturity 
and produce at least the yield used to determine the production 
guarantee and are those recognized by the Cooperative Extension 
Service as compatible with agronomic and weather conditions in the 
area.
    (f) Harvest--The removal of the seed cotton from the open cotton 
boll, or the severance of the open cotton boll from the stalk by 
either manual or mechanical means.
    (g) Interplanted--Acreage on which two or more crops are planted 
in manner that does not permit separate agronomic maintenance or 
harvest of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which 
water is artificially applied during the growing season by 
appropriate systems, and at the proper times, with the intention of 
providing the quantity of water needed to produce at least the yield 
used to establish the irrigated production guarantee on the 
irrigated acreage planted to the insured crop.
    (i) Mature ELS cotton--ELS cotton that can be harvested either 
manually or mechanically.
    (j) Planted acreage--Land in which seed has been placed by a 
machine appropriate for the insured crop and planting method, at the 
correct depth, into a seedbed which has been properly prepared for 
the planting method and production practice. Cotton must be planted 
in rows to be considered planted. Planting in any other manner will 
be considered as a failure to follow recognized good farming 
practices and any loss of production will not be insured unless 
otherwise provided by the Special Provisions or by written agreement 
to insure such crop. The yield conversion factor normally applied to 
non-irrigated skip-row cotton acreage will not be used if the land 
between the rows of cotton is planted to any crop.
    (k) Practical to replant--(In lieu of subsection 1.(ff) of the 
Common Crop Insurance Policy (Sec. 457.8) practical to replant is 
defined as 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 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 final planting date unless replanting is generally 
occurring in the area.
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the country. 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 country.
    (m) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by an applicable yield 
conversion factor for non-irrigated skip-row planting patterns, and 
multiplying the result by the coverage level percentage you elect.
    (n) Replanting--Performing the cultural practices necessary to 
replace the ELS cotton seed, and replacing the seed with either ELS 
or AUP cotton seed in the insured acreage with the expectation of 
growing a successful crop.
    (o) Skip-row--A planting pattern that consists of alternating 
rows of cotton and fallow land or land planted to another crop the 
previous fall.
    (p) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions.
    (q) Written agreement--Designated terms of this policy may be 
altered by written agreement. 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 (Sec. 457.8), may be 
divided into optional 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 verifiable records, which can be independently 
verified, of planted acreage and production for each optional unit 
for a least the last crop year used to determine your production 
guarantee.
    (b) You must plant the crop in manner that results in a clear 
and discernable break in the planting pattern at the boundaries of 
each optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that 
we can verify the production from each optional unit or the 
production from each optional unit must be kept separate until after 
loss adjustment under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional 
unit is located in a separate legally identified Section. In the 
absence of Sections, we may consider parcels of land legally 
identified by other methods of measure including, but not limited 
to: Spanish grants, railroad survey, leagues, labors, or Virginia 
Military Lands as equivalent of Sections for unit purposes. In areas 
which have not been surveyed using the systems identified above, or 
another system approved by us, or in areas where such systems exist 
but boundaries are not readily discernable, each optional unit must 
be located in a separate farm identified by a single ASCS Farm 
Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to or instead of establishing 
optional units by section, section equivalent, or ASCS Farm Serial 
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same Section, section 
equivalent, or ASCS Farm Serial Number. The irrigated acreage may 
not extend beyond the point at which your irrigation system can 
deliver the quantity of water needed to produce the yield on which 
your guarantee is based and you many not continue into non-irrigated 
acreage in the same rows or planting pattern. You must plant, 
cultivate, fertilize, or otherwise care for the irrigated acreage in 
accordance with recognized good irrigated farming practices.
    Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other 
than as described under this section. If you do not comply fully 
with these provisions, we will combine all optional units which are 
not in compliance with these provisions into the basic unit from 
which they were formed. We may combine the optional units at any 
time we discover that you have failed to comply with these 
provisions. If failure to comply with these provisions is determined 
to be inadvertent, and if 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

    In addition to the requirements under section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Common Crop Insurance Policy you may select only one price 
election of all the cotton in the county insured under this policy.

4. Contract Changes

    The contract change date is November 30 preceding the 
cancellation date (see the provisions 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 the cancellation and termination dates are March 15.

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Common Crop 
Insurance Policy (Sec. 457.8), the crop insured will be the cotton 
for which premium rates are provided by the actuarial table:
    (a) in which you have a share; and
    (b) that is not (unless a written agreement allows otherwise):
    (1) planted into an established grass or legume;
    (2) interplanted with another spring planted crop;
    (3) grown on acreage from which a hay crop was harvested in the 
same calendar year unless the acreage is irrigated; or
    (4) grown on acreage on which a small grain crop reached the 
heading stage in the same calendar year unless the acreage is 
irrigated or adequate measures are taken to terminate the small 
grain crop prior to heading and less than fifty percent (50%) of the 
small grain plants reach the heading stage;

7. Insurable Acreage

    In addition to the provisions under section 9 (Insurable 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8):
    (a) The acreage insured will be only the land occupied by the 
rows of cotton when a skip row planting pattern is utilized; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not 
produce at least ninety percent (90%) of the production guarantee, 
must be replanted unless we agree that replanting is not practical 
(see subsection 1.(k)).

8. Insurance Period

    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 January 31 
immediately following planting.

9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) 
of the Common Crop Insurance Policy (Sec. 457.8), insurance is 
provided only against the following causes of loss which occur 
within the insurance period:
    (a) adverse weather conditions;
    (b) fire;
    (c) insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) wildlife;
    (f) earthquake;
    (g) volcanic eruption; or
    (h) failure of irrigation water supply.

10. Duties in the Event of Damage or Loss

    (a) In addition to your duties under section 14 (Duties in the 
Event of Damage or Loss) of the Common Crop Insurance Policy 
(Sec. 457.8), in the event of damage or loss:
    (1) you must give us notice if you intend to replant any acreage 
originally planted to ELS cotton to AUP cotton;
    (2) the cotton stalks must remain intact for our inspection; and
    (3) if you initially discover damage to any insured crop within 
15 days of harvest, or during harvest, you must leave representative 
samples of the unharvested crop for our inspection. The samples must 
be at least 10 feet wide and extend the entire length of the field 
in the unit.
    (b) The stalks must not be destroyed, and required samples must 
not be harvested, until the earlier of our inspection or 15 days 
after harvest of the balance of the unit is completed.

11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide records of production.
    (1) for any optional unit, we will combine all optional units 
for which acceptable records of production were not provided; or
    (2) for any basic unit, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) multiplying the insured acreage by the production guarantee;
    (2) subtracting from this the total production to count;
    (3) multiplying the remainder by your price election; and
    (4) multiplying this result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include:
    (1) all appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) that is abandoned;
    (B) put to another use without our consent;
    (C) damaged solely by uninsured causes;
    (D) for which you fail to provide records of production that are 
acceptable to us; or
    (E) on which the cotton stalks are destroyed within 15 days 
after harvest without our consent;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may 
be adjusted for quality deficiencies in accordance with subsection:
    (A) 11.(d) and (e) if it is mature ELS cotton; or
    (B) 11.(f) it if is AUP cotton insured under these crop 
provisions);
    (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 
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
    (v) Not less than twenty-five percent (25%) of the production 
guarantee per acre for any acreage of cotton which was replanted and 
is immature when we determine that harvest of cotton becomes general 
in the county; and
    (2) all harvested production, including any mature cotton 
retrieved from the ground.
    (d) Mature ELS cotton production may be adjusted for quality 
when production has been damaged by insured causes. Such production 
to count will be reduced if the price quotation for ELS cotton of 
like quality (price quotation ``A'') is less than seventy-five 
percent (75%) of price quotation ``B.'' Price quotation ``B'' will 
be the price quotation for ELS cotton of the grade, staple length, 
and micronaire reading designated in the Special Provisions for this 
purpose. The price quotations for prices ``A'' and ``B'' will be the 
price quotations contained in the Weekly Cotton Market Review 
published by the USDA Agricultural Marketing Service the week the 
last bale from the unit is classed. If the date the last bale is 
classed is not available, the price quotations will be determined 
the week the last bale from the unit is delivered to the warehouse 
as shown on the producer's account summary obtained from the gin. In 
the absence of either price quotation for the applicable week, the 
price quotations for the nearest prior week for which an ELS cotton 
price quotation was listed for both prices will be used. If eligible 
for adjustment, the amount of production to be counted will be 
determined by multiplying the number of pounds of such production by 
the factor derived from dividing price quotation ``A'' by seventy-
five percent (75%) of price quotation ``B.''
    (e) For ELS cotton to be eligible for quality adjustment as 
shown in subsection 11.(d), ginning must have been completed at a 
gin using roller equipment.
    (f) Any AUP cotton harvested or appraised from acreage 
originally planted to ELS cotton in the same growing season will be 
reduced by the factor obtained by dividing the price per pound of 
the AUP cotton by the price quotation for ELS cotton of the grade, 
staple length, and micronaire reading designated in the Special 
Provisions for this purpose. The price used for the ELS cotton will 
be the price contained in the Weekly Cotton Market Review published 
by the USDA Agricultural Marketing Service the week the last bale 
from the unit is classed. The price used for the AUP cotton will be 
the price contained in the Daily Spot Cotton Quotations published by 
the USDA Agricultural Marketing Service the day the last bale from 
the unit is classed. If the date the last bale is classed is not 
available, the price quotations will be determined when the last 
bale from the unit is delivered to the warehouse, as shown on the 
producer's account summary obtained from the gin. If either price 
quotation is unavailable for the dates stated above, the price 
quotations for the nearest prior date for which price quotations for 
both the AUP and ELS cotton are available will be used. If prices 
are not yet available for the insured crop year, the previous 
season's average prices will be used.

12. Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be 
provided for acreage you were prevented from planting (see 
subsections 12.(b) through (g)). This coverage provides a reduced 
production guarantee. The reduced guarantee will be combined with 
the production guarantee for planted acreage for each unit. The 
premium amount for eligible prevented planting acreage will be the 
same as that for timely planted acreage. If the amount of premium 
you are required to pay (gross premium less our subsidy) for 
prevented planting acreage exceeds the liability on such acreage, 
coverage for those acres will not be provided (no premium will be 
due and no indemnity will be paid for such acreage). (For example, 
assume you insure one unit in which you have a 100 percent (100%) 
share. The unit consists of 100 acres, of which 50 acres were 
planted by the final planting date and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of 
any indemnity which may be due to you, the production guarantee for 
the unit will be computed as follows:
    (1) For planted acreage, multiply the per acre production 
guarantee for planted acreage by the 50 acres planted; and
    (2) For prevented planting acreage, multiply the per acre 
production guarantee for planted acreage by thirty-five percent 
(0.35) and multiply the result by the 50 acres eligible for 
prevented planting coverage.
    The total of the two calculations will be the production 
guarantee for the unit. Your premium will be based on the result of 
multiplying the per acre production guarantee for timely planted 
acreage by the 100 acres in the unit).
    (b) If you were from planting ELS cotton (see subsection 1.(l)), 
you may elect:
    (1) not to plant this acreage to any crop that is intended for 
harvest in the same crop year, (The production guarantee for such 
acreage which is eligible for prevented planting coverage will be 
thirty-five percent (0.35) of the production guarantee for planted 
acres. For example, if your production guarantee for timely planted 
acreage is 600 pounds per acre, your prevented planting production 
guarantee would be equivalent to 210 pounds per acre (600 pounds 
multiplied by 0.35). This 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
    (2) to plant ELS cotton after the final planting date (The 
production guarantee for such acreage will be thirty-five percent 
(0.35) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 
600 pounds per acre, your prevented planting production guarantee 
would be equivalent to 210 pounds per acre (600 pounds multiplied by 
0.35). Production to count for such acreage will be determined in 
accordance with subsections 11.(c) through (e)).
    (c) 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.
    (d) You must provide written notice to us if you were prevented 
from planting (see subsection 2.(l)). This notice must be given not 
later than three (3) days after the final planting date if you have 
unplanted acreage that may be eligible for prevented planting 
coverage.
    (e) Unless a written agreement is in place to the contrary, the 
acreage to which prevented planting coverage applies will be limited 
as follows:
    (1) Eligible acreage will not exceed the greater of:
    (i) the number of acres planted to ELS cotton on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing 
date);
    (ii) the ASCS base acreage for ELS cotton, if applicable, 
reduced by any acreage reduction applicable to the farm under any 
program administered by the United States Department of Agriculture; 
or
    (iii) one hundred percent (100%) of the simple average of the 
number of acres planted to ELS cotton during the crop years that 
were used to determine your yield;
    (2) 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.
    (3) A prevented planting production guarantee will not be 
provided for:
    (i) any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit, whichever is less;
    (ii) land for which the actuarial table does not designate a 
premium rate unless a written agreement is in place designating such 
premium rate;
    (iii) land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program 
administered by the United States Department of Agriculture;
    (iv) land on which any crop, other than ELS cotton, has been 
planted and is intended for harvest, or has been harvested in the 
same crop year; or
    (v) land which planting history or conservation plans indicate 
would remain fallow for crop rotation purposes.
    (4) For the purpose of determining eligible acreage for 
prevented planting coverage, acreage for all units will be combined 
and reduced by the number of ELS cotton acres timely planted. (For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage 
is located in a single ASCS Farm Serial Number which you insure as 
two separate optional units consisting of 50 acres each. If you 
planted 60 acres of ELS cotton on one optional unit and 40 acres of 
cotton on the second optional unit, your prevented planting eligible 
acreage would be reduced to zero. (100 ares eligible for prevented 
planting coverage minus 100 acres planted equals zeros.) If you 
report more ELS cotton acreage under this contract than is eligible 
for prevented planting coverage, we will allocate the eligible 
acreage to insured units based on the number of prevented planting 
acres and share you reported for each unit.)
    (f) When the ASCS Farm Serial Number covers more than one unit, 
or a unit consists of more than one ASCS Farm Serial Number, the 
covered acres will be pro-rated based on the number of acres in each 
unit or ASCS Farm Serial Number that could have been planted to ELS 
cotton in the current crop year.
    (g) 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 final 
planting date. Any acreage you repot 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. 94-13129 Filed 5-27-94; 8:45 am]
BILLING CODE 3410-08-M