[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: 94-13130]


[[Page Unknown]]

[Federal Register: May 31, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 457

 

Common Crop Insurance Regulations; Cotton 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 
provisions for cotton crop insurance. These proposed provisions are 
contained in an endorsement to the Common Crop Insurance Policy 
(Sec. 457.8) 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 delivery 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 are found in 7 CFR part 
400, subpart H.
    It has been determined under section 6(a) of Executive Order 12612, 
Federalism 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 a 
substantial direct effect 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.
    Ths 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 457.104 as a final rule, the provisions 
for insuring cotton contained herein will replace the current cotton 
endorsement contained in 7 CFR 401.119. 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 cotton as 
follows:
    1. Section 4--The contract change date has been changed to November 
30 for all counties to maintain an adequate time period between this 
date and the revised cancellation dates (see item 2 below).
    2. Section 5--The cancellation and termination dates have been 
changed to February 28 in states and counties that currently have March 
31 dates, and to March 15 in states and counties that currently have 
April 15 dates. The 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. Section 6--A specific reference to colored cottons is added to 
provide that such cottons are insurable under the policy. Production 
guarantees for these cottons will be established by FCIC's Regional 
Service Offices via written agreements until adequate actual production 
history is available for individual policyholders.
    4. The current provisions for 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 Cotton 
Provisions. Under those provisions, insurance was provided on a crop 
until it was destroyed without any premium being paid.
    5. The current provisions that indicate that insurance will end 
upon removal of the cotton from the field are not included in the 
proposed 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).
    6. Section 7--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.
    7. Section 10--The current provisions for cotton state that in the 
event of damage or loss, any required unharvested samples of the crop 
must remain intact until 15 days after notice of damage was given but 
do not require the cotton stalks remain intact. These proposed 
provisions require that cotton stalks and any required unharvested 
samples of the crop not be destroyed or harvested until the earlier of 
our inspection or 15 days after harvest is completed on the unit. This 
change clarifies requirements regarding cotton stalks.
    8. Section 11--Paragraph 11.(c)(2) provides that cotton retrieved 
from the ground will be considered production to count.
    9. Subsection 11.(d)--The date on which prices for quality 
adjustment purposes are determined is changed from the date of final 
notice of loss to the date the last bale from the insured unit is 
classed.
    10. Subsection 11.(e) provides that colored lint cotton is not 
eligible for quality adjustment because grade standards for colored 
cotton are not available.

List of Subjects in 7 CFR Part 457

    Crop insurance, 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, Sec. 457.104 
Cotton Crop Insurance Provisions, to read as follows:


Sec. 457.104  Cotton Crop Insurance.

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

United States Department of Agriculture

Federal Crop Insurance Corporation

Cotton Crop Provisions

    If a conflict exists 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 American Upland Cotton.
    (b) Days--Calendar days.
    (c) Final planting date--The date contained in the Special 
Provisions by which the insured crop must initially be planted in 
order to be insured for the full production guarantee.
    (d) Good farming practices--The cultural practices generally in 
use in the county for the insured crop to make normal progress 
toward maturity and produce at least the yield used to determine the 
production guarantee and are those recognized by Cooperative 
Extension Service as compatible with agronomic and weather 
conditions in the area.
    (e) Growth area--A geographic area designated by the Secretary 
of Agriculture for the purpose of reporting cotton prices.
    (f) Harvest--The removal of the seed cotton from the open cotton 
boll, or the severance of the open cotton boll from the stalk by 
either manual or mechanical means.
    (g) Interplanted--Acreage on which two or more crops are planted 
in a manner that does not permit separate agronomic maintenance or 
harvest of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which 
water is artificially applied during the growing season by 
appropriate systems, and at the proper times, with the intention of 
providing the quantity of water needed to produce at least the yield 
used to establish the irrigated production guarantee on the 
irrigated acreage planted to the insured crop.
    (i) Late planted--Acreage planted to cotton during the late 
planting period.
    (j) Late planting period--The period that begins the day after 
the final planting date for the insured crop and ends twenty-five 
(25) days after the final planting date.
    (k) Mature cotton--Cotton that can be harvested either manually 
or mechanically.
    (l) Planted acreage--Land in which seed has been placed by a 
machine appropriate for the insured crop and planting method, at the 
correct depth, into a seedbed which has been properly prepared for 
the planting method and production practice. Cotton must be planted 
in rows to be considered planted. Planting in any other manner will 
be considered as a failure to follow recognized good farming 
practices and any loss of production will not be insured unless 
otherwise provided by the special provisions or by written agreement 
to insure such crop. The yield conversion factor normally applied to 
non-irrigated skip-row cotton acreage will not be used if the land 
between the rows of cotton is planted to any crop.
    (m) Practical to replant--In lieu of subsection 1.(ff) of the 
Common Crop Insurance Policy (Sec. 457.8) practical to replant is 
defined as 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 county; 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 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.
    (p) Replanting--Performing the cultural practices necessary to 
replace the cotton seed, and replacing the seed in the insured 
acreage with the expectation of growing a successful crop.
    (q) Skip-row--A planting pattern that consist of alternating 
rows of cotton and fallow land or land planted to another crop the 
previous fall.
    (r) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions.
    (s) 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 optional unit must be kept separate until after 
loss adjustment under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional 
unit is located in a separate legally identified Section. In the 
absence of Sections, we may consider parcels of land legally 
identified by other methods of measure including, but not limited 
to: Spanish grants, railroad surveys, leagues, labors, or Virginia 
Military Lands as equivalent of Sections for unit purposes. In areas 
which have not been surveyed using the systems identified above, or 
another system approved by us, or in areas where such systems exist 
but boundaries are not readily discernable, each optional unit must 
be located in a separate farm identified by a single ASCS Farm 
Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to or instead of establishing 
optional units by section, section equivalent, or ASCS Farm Serial 
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same Section, section 
equivalent, or ASCS Farm Serial Number. The irrigated acreage may 
not extend beyond the point at which your irrigation system can 
deliver the quantity of water needed to produce the yield on which 
your guarantee is based and you may not continue into non-irrigated 
acreage in the same rows or planting pattern. You must plant, 
cultivate, fertilize, or otherwise care for the irrigated acreage in 
accordance with recognized good irrigated farming practices.
    Basic units may not be divided into optional units on any basis 
including, but not limited to: production practice, type, variety, 
or planting period, other than as described in 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 unit from which they were formed. We may combine the 
optional units at any time we discover that you have failed to 
comply with these provisions. If failure to comply with these 
provisions on all optional units is determined to be inadvertent, 
and the optional units are combined, premium paid for the purpose of 
electing optional units will be refunded to you.

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

    In addition to the requirements under section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Common Crop Insurance Policy (Sec. 457.8), you may select 
only one price election for all 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 (Sec. 457.8), the cancellation and termination dates are:

------------------------------------------------------------------------
                                                        Cancellation and
                   State and county                        termination  
                                                              dates     
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson,       February 15.    
 Karnes, Goliad, Victoria, and Jackson Counties,                        
 Texas, and all Texas counties lying south thereof.                     
Alabama; Arizona; Arkansas; California; Florida;        February 28.    
 Georgia; Louisiana; Mississippi; Nevada; North                         
 Carolina; South Carolina; El Paso, Hudspeth,                           
 Culberson, Reeves, Loving, Winkler, Ector, Upton,                      
 Reagon, Sterling, Coke, Tom Green, Concho, McCulloch,                  
 San Saba, Mills, Hamilton, Bosque, Johnson, Tarrant,                   
 Wise, and Cooke Counties, Texas, and all Texas                         
 counties lying south and east thereof to and                           
 including Terrell, Crocket, Sutton, Kimble,                            
 Gillespie, Blanco, Comal, Guadalupe, Gonzales, De                      
 Witt, Lavaca, Colorado, Wharton, and Matagorda                         
 Counties, Texas.                                                       
All other Texas counties and all other states.........  March 15.       
------------------------------------------------------------------------

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Common Crop 
Insurance Policy (457.8), the crop insured will be all the cotton 
(including colored 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 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.(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) September 30 in Val Verde, Edwards, Kerr, Kendall, Bexar, 
Wilson, Karnes, Goliad, Victoria, and Jackson Counties, Texas, and 
all Texas counties lying south thereof;
    (b) January 31 in Arizona, California, New Mexico, Oklahoma, and 
all other Texas counties; and
    (c) December 31 in all other states.

9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) 
of the Common Crop Insurance Policy (Sec. 457.8), insurance is 
provided only against the following causes of loss which occur 
within the insurance period:
    (a) adverse weather conditions;
    (b) fire;
    (c) insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) wildlife;
    (f) earthquake;
    (g) volcanic eruption; or
    (h) failure of the 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) the cotton stalks must remain intact for out inspection; and
    (2) if you initially discover damage to the insured crop within 
15 days of harvest, or during harvest, you must leave representative 
samples of the unharvested crop must remain in the field for our 
inspection. The samples must be at least 10 feet wide and extend the 
entire length of each field in the unit.
    (b) The stalks must not be destroyed, and required samples must 
not be harvested, until the earlier of our inspection or 15 days 
after harvest of the balance of the unit is completed.

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 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 harvested production of 
white cotton may be adjusted for quality deficiencies in accordance 
with subsection 11.(d));
    (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 
more than 25 days after the final planting date and is immature when 
we determine that harvest of cotton becomes general in the county; 
and
    (2) all harvested production from the insurable acreage, 
including any mature cotton retrieved from the ground.
    (d) Mature white cotton may be adjusted for quality when 
production has been damaged by insured causes. Such production to 
count will be reduced if the price quotation for cotton of like 
quality (price quotation ``A'') for the applicable growth area is 
less than seventy-five percent (75%) of price quotation ``B.'' Price 
quotation ``B'' is defined as the price quotation for the applicable 
growth area for cotton of the color and leaf grade, staple length, 
and micronaire reading designated in the Special Provisions for this 
purpose. Price quotations ``A'' and ``B'' will be the price 
quotations contained in the Daily Spot Cotton Quotations published 
by the USDA Agricultural Marketing Service on the date the last bale 
from the unit is classed. If the date the last bale classed is not 
available, the price quotations will be determined on the date the 
last bale from the unit is delivered to the warehouse, as shown on 
the producer's account summary obtained from the gin. If eligible 
for adjustment, the amount of production to be counted will be 
determined by multiplying the number of pounds of such production by 
the factor derived from dividing price quotation ``A'' by seventy-
five percent (75%) of price quotation ``B.''
    (e) Colored lint cotton will not be eligible for quality 
adjustment.

12. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be 
provided for acreage planted to the insured crop during the late 
planting period (see subsection (c)), and acreage you were prevented 
from planting (see subsection (d)). These coverages provide reduced 
production guarantees. The reduced guarantees will be combined with 
the production guarantee for timely planted acreage for each unit. 
The premium amount for late planted acreage and eligible prevented 
planting acreage will be the same as that for timely planted 
acreage. If the amount of premium you are required to pay (gross 
premium less our subsidy) for late planted acreage or prevented 
planting acreage exceeds the liability on such acreage, coverage for 
those acres will not be provided (no premium will be due and no 
indemnity will be paid for such acreage). (For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The 
unit consists of 150 acres, of which 50 acres were planted timely, 
50 acres were planted 7 days after the final planting date (late 
planted), and 50 acres are unplanted and eligible for prevented 
planting coverage. To calculate the amount of any indemnity which 
may be due to you, the production guarantee for the unit will be 
computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) 
and multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by thirty-five 
percent (0.35) 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 per acre 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 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 cotton acreage planted after the final planting date but 
on or before 25 days after the final planting date, the production 
guarantee for each acre will be reduced for each day planted after 
the final planting date by:
    (i) one percent (.01) for the first through tenth day; and
    (ii) two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report the dates the acreage is planted within the late planting 
period.
    (3) If planting of cotton continues after the final planting 
date, or you are prevented from planting during the late planting 
period, the acreage reporting date will be the later of:
    (i) the acreage reporting date contained in the Special 
Provisions; or
    (ii) five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late 
Planting Period)
    (1) If you were prevented from planting cotton (see subsection 
1.(n)), you may elect:
    (i) to plant cotton during the late planting period (The 
production guarantee for such acreage will be determined in 
accordance with paragraph 12.(c)(1));
    (ii) not to plant this acreage to any crop that is intended for 
harvest in the same crop year, (the production guarantee for such 
acreage will be thirty-five percent (0.35) of the production 
guarantee for timely planted acres. For example, if your production 
guarantee for timely planted acreage is 700 pounds per acre, your 
prevented planting production guarantee would be equivalent to 245 
pounds per acre (700 pounds multiplied by 0.35). This subparagraph 
does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as 
such crop is not intended for harvest.); or
    (iii) to plant cotton after the late planting period, (the 
production guarantee for such acreage will be thirty-five percent 
(0.35) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 
700 pounds per acre, your prevented planting production guarantee 
would be equivalent to 245 pounds per acre (700 pounds multiplied by 
0.35). Production to count for such acreage will be determined in 
accordance with subsections 11.(c) and (d)).
    (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 cotton on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing 
date);
    (B) the ASCS base acreage for cotton, 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 cotton 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 purpose or intended to be or 
considered to have been left unplanted under any program 
administered by the United States Department of Agriculture;
    (D) land on which any crop, other than cotton, has been planted 
and is intended for 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 reduced by the number of cotton acres 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 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 acres eligible for prevented planting coverage minus 100 
acres planted equals zero). If you report more cotton acreage under 
this contract than is eligible for prevented planting coverage, we 
will allocate the eligible acreage to insured units based on the 
number of prevented planting acres and share you report 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 pro-rated based on the number of acres in each 
unit or ASCS Farm Serial Number that could have been planted to 
cotton in the crop year.
    (5) In accordance with the provisions of section 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. 94-13130 Filed 5-27-94; 8:45 am]
BILLING CODE 3410-08-M