[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32021]


[[Page Unknown]]

[Federal Register: December 29, 1994]


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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AA77

 

Common Crop Insurance Regulations; Sunflower Seed Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby adopts 
specific crop provisions for the insurance of sunflower seed. The 
provisions will be used in conjunction with the Common Crop Insurance 
Policy which contains standard terms and conditions common to most 
crops. The intended effect of this rule is to move specific crop 
provisions for insuring sunflower seed from the General Crop Insurance 
Policy to the Common Crop Insurance Policy for ease of use by the 
public and conformance among policy terms.

EFFECTIVE DATE: December 29, 1994.

FOR FURTHER INFORMATION CONTACT: Diana Moslak, Regulatory and 
Procedural Development, Federal Crop Insurance Corporation, U.S. 
Department of Agriculture, 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 final rule have been approved by OMB and 
assigned OMB No. 0563-0016.
    It has been determined under section 6(a) of Executive Order 12612, 
Federalism, that this final 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 entities. The amount of work required of the insurance 
companies delivering these policies and the procedures therein will not 
increase from the amount required to deliver previous policies. This 
rule does not have any greater or lesser impact on the insured. 
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 require 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 or an Environmental Impact 
Statement is needed.
    Upon publication of the rule, the provisions for insuring sunflower 
seed contained herein will supersede the provisions contained in 7 CFR 
401.124. The provisions of 7 CFR 401.124 will be amended to restrict 
their effect to the crop years prior to 1995.
    On Friday, September 23, 1994, FCIC published a proposed rule in 
the Federal Register at 59 FR 48827 proposing to revise the Common Crop 
Insurance Regulations by adding new provisions for Sunflower Seed crop 
insurance.
    Following publication of the proposed rule, the public was afforded 
30 days to submit written comments, data, and opinions. The comments 
received and FCIC responses are as follows:
    Comment: One comment received from an insurance association 
recommended changing the language in the opening paragraph from 
``Common Crop Insurance Provisions'', to ``Basic Provisions'', since 
the document the insured receives is entitled ``Basic Provisions'', not 
``Common Crop Insurance Policy''.
    Response: FCIC agrees with the comment and has changed the proposed 
language to read ``Basic Provisions''.
    Comment: One comment received from an insurance company questioned 
why the sales closing date was not contained in the Sunflower Seed Crop 
Insurance Provisions.
    Response: Consistent with the other crops which have attached to 
the Basic Provisions of the Common Crop Insurance Policy, the 
cancellation and termination dates are listed in the Crop Provisions. 
The sales closing dates are contained in the crop's Special Provisions. 
This allows the Manager of the FCIC greater latitude in extending the 
sales closing date when circumstances warrant such a change.
    Comment: One comment received from an insurance company questioned 
why the 20 acre or 20 percent of a unit requirement was not addressed 
in section 10 of the Sunflower Seed Crop Provisions, ``Replanting 
Payments''.
    Response: These requirements are contained in section 13 of the 
Basic Provisions of the Common Crop Insurance Policy, to which the 
Sunflower Seed Crop Provisions attach, and therefore, do not need to be 
repeated in the Sunflower Seed Crop Provisions.
    Comment: One comment received from an insurance association 
expressed concern that leaving representative strips solely because the 
insured disagrees with the appraisal may subject the program to 
possible abuse. In many situations, samples are more susceptible to 
loss and do not accurately represent what the entire unit would have 
produced.
    Response: FCIC disagrees with the comment and believes that the 
language in subparagraph 12.(c)(1)(iv)(A) allows the insurer to 
determine those situations in which it is reasonable to leave 
representative samples to determine the amount of production to be 
counted. In cases where it is necessary to defer determinations, the 
insured must be advised how production to count will ultimately be 
determined, and the consequences of failure to leave or care for the 
samples.
    Comment: One comment received from an insurance association 
questioned whether or not the Special Provisions provide separate 
prices for oil and non-oil types of sunflowers, and if so, is the 
insured required to select the same percentage of each price?
    Response: The Special Provisions indicate that both oil and non-oil 
types are insurable but do not contain separate prices by type. This 
matter is under consideration and the crop provisions have been 
modified.
    Comment: One comment received from an insurance company questioned 
why test weight pounds are listed in subparagraph 12.(d)(2)(i)(B) for 
quality adjustment of non-oil type sunflower seed, but pounds are not 
listed for quality adjustment of oil-type sunflower seed in 
subparagraph 12.(d)(2)(i)(A).
    Response: The Official United States Standards for Grain lists the 
minimum test weight for U.S. No. 2 ``sunflower seed'' but does not 
differentiate between oil or non-oil types. The FCIC has further 
defined minimum test weight for oil and non-oil types. The policy 
language refers to the Official United States Grain Standard 
requirements for U.S. No. 2 oil type sunflowers, and specifically lists 
the minimum pounds per bushel for non-oil types as 22 pounds. Listing 
the specific test weight pounds for non-oil sunflowers clearly 
identifies the differences in quality adjustment requirements.
    Comment: One comment received from an insurance association 
suggested that the language in paragraph 12.(d)(3)(iii) regarding the 
determination of test weight for quality adjustment be modified. The 
sentence presently reads, ``Test weight for quality adjustment purposes 
may be determined by our loss adjustor.'' The sentence could give the 
indication that only the loss adjuster can determine test weight.
    Response: FCIC agrees with the comment and has changed the sentence 
to read: ``Test weight for quality adjustment purposes may also be 
determined by our loss adjuster.''
    In addition to the changes indicated in the responses to comments, 
FCIC has made the following changes:
    1. Subsection 12.(b) has been modified to allow for settlement of a 
claim based on a separate price by type. FCIC has received requests 
from interested parties recommending a separate price for 
``confectionery type'' sunflowers. The proposed policy language allows 
a separate price election by type if the Special Provisions contain 
that option.
    2. Paragraph 12.(d)(4) has been revised to allow the use of 
predetermined quality adjustment discount factors. The use of the 
factors will:
    (a) Minimize vulnerability to bid-price and local market price 
manipulation (and reliance on a third party who is not disinterested) 
in establishing quality adjustment factors;
    (b) Increase the uniformity of loss adjustment of grain eligible 
for quality adjustment; and
    (c) Simplify establishing the amount of production in the event 
grain is eligible for quality adjustment.
    3. Subparagraph 13. (d)(2)(ii) has been revised to extend the 
insurance period for prevented planting coverage as required by the 
Federal Crop Insurance Reform Act of 1994. The new provisions extend, 
for carry-over insureds, the prevented planting coverage to insured 
causes occurring in the period from the sales closing date for the crop 
year immediately preceding the insured crop year.
    The Federal Crop Insurance Act as amended by the Federal Crop 
Insurance Reform Act of 1994, is required to be in effect for the 1995 
crop year. The contract change date in the policy requires that changes 
be filed prior to December 31, 1994, to be effective for the 1995 crop 
year. Therefore, good cause is shown to make the rule effective in less 
than 30 days.
    Accordingly, the rule, ``Common Crop Insurance Regulations; 
Sunflower Seed Crop Insurance Provisions'' published at 59 FR 48827 as 
revised and set out below is hereby adopted as a final rule.

List of Subjects in 7 CFR Part 457

    Crop insurance, Sunflower seed.

Final Rule

    For the reasons set out in the preamble, the Federal Crop Insurance 
Corporation hereby amends the Common Crop Insurance Regulations, (7 CFR 
Part 457), effective for the 1995 and succeeding crop years, as 
follows:

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1995 AND SUBSEQUENT CONTRACT YEARS

    1. The authority citation for 7 CFR Part 457 is revised to read as 
follows:

    Authority: 7 U.S.C. 1506 (1)

    2. 7 CFR Part 457 is amended by adding a new Sec. 457.108, 
Sunflower Seed Crop Insurance Provisions, to read as follows:


Sec. 457.108  Sunflower Seed Crop Insurance Provisions.

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

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Sunflower Seed Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), 
these crop provisions, and the Special Provisions, the Special 
Provisions will control these crop provisions and the Basic 
Provisions; and these crop provisions will control the Basic 
Provisions.

1. Definitions

    (a) Days--Calendar days.
    (b) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (c) Good farming practices--The cultural practices generally in 
use in the county for the crop to make normal progress toward 
maturity and produce at least the yield used to determine the 
production guarantee and are those recognized by the Cooperative 
Extension Service as compatible with agronomic and weather 
conditions in the area.
    (d) Harvest--Combining or threshing the sunflowers for seed.
    (e) Interplanted--Acreage on which two or more crops are planted 
in a manner that does not permit separate agronomic maintenance or 
harvest of the insured crop.
    (f) Irrigated practice--A method of producing a crop by which 
water is artificially applied during the growing season by 
appropriate systems and at the proper times, with the intention of 
providing the quantity of water needed to produce at least the yield 
used to establish the irrigated production guarantee on the 
irrigated acreage planted to the insured crop.
    (g) Late planted--Acreage planted to the insured crop during the 
late planting period.
    (h) Late planting period--The period that begins the day after 
the final planting date for the insured crop and ends twenty-five 
(25) days after the final planting date.
    (i) Local market price--The cash seed price per pound for oil 
type sunflower seed grading U.S. No. 2, or non-oil type sunflower 
seed with a test weight of at least 22 pounds per bushel and less 
than five percent (5%) kernel damage, offered by buyers in the area 
in which you normally market the sunflower seed. The local market 
price for oil type sunflower seed will reflect the maximum limits of 
quality deficiencies allowable for the U.S. No. 2 grade of sunflower 
seed. Factors not associated with grading of sunflower seed under 
the Official United States Standards for Grain including, but not 
limited to, oil or moisture content will not be considered.
    (j) Planted acreage--Land in which seed has been placed by a 
machine appropriate for the insured crop and planting method, at the 
correct depth, into a seedbed which has been properly prepared for 
the planting method and production practice. Sunflower seed must 
initially be planted in rows far enough apart to permit cultivation 
to be considered planted. Acreage planted in any other manner will 
not be insurable unless otherwise provided by the Special Provisions 
or by written agreement.
    (k) Practical to replant--In lieu of subsection 1.(ff) of the 
Basic Provisions (Sec. 457.8), practical to replant is defined as 
our determination, after loss or damage to the insured crop, based 
on factors, including but not limited to moisture availability, 
condition of the field, and time to crop maturity, that replanting 
to the insured crop will allow the crop to attain maturity prior to 
the calendar date for the end of the insurance period. It will not 
be considered practical to replant after the end of the late 
planting period unless replanting is generally occurring in the 
area.
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by:
    (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 on or after the 
beginning of the prevented planting insurance period specified in 
paragraph 13.(d)(2).
    (m) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by the coverage level 
percentage you elect.
    (n) Replanting--Performing the cultural practices necessary to 
replace the sunflower seed and then replacing the sunflower seed in 
the insured acreage with the expectation of growing a successful 
crop.
    (o) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the 
county.
    (p) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by 
the insured in writing no later than the sales closing date and is 
valid for one year only. If not specifically renewed the following 
year, continuous insurance will be in accordance with the printed 
policy. All variable terms including, but not limited to, crop 
variety, guarantee, premium rate, and price election must be 
contained in the written agreement. Notwithstanding the sales 
closing date restriction contained herein, in specific instances a 
written agreement may be applied for after the sales closing date, 
and approved if, after physical inspection of the acreage, there is 
a determination that the crop has the expectancy of making at least 
the guaranteed yield. However, no prevented planting liability will 
be established as a result of any request submitted after the sales 
closing date. All applications for written agreements as submitted 
by the insured must contain all variable terms of the contract 
between the company and the insured that will be in effect if the 
written agreement is disapproved.

2. Unit Division

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

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

    In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Basic Provisions (Sec. 457.8), you may select only one price 
election for all the sunflower seed in the county insured under this 
policy. Notwithstanding the preceding sentence, if the Special 
Provisions provide different price elections by type, you may select 
one price election for each sunflower seed type designated in the 
Special Provisions.

4. Contract Changes

    The contract change date is November 30 preceding the 
cancellation date (see the provisions of section 4 (Contract 
Changes) of the Basic Provisions (Sec. 457.8)).

5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Basic Provisions 
(Sec. 457.8), the cancellation and termination dates are March 15.

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the oil and 
non-oil type sunflower seed in the county for which a premium rate 
is provided by the actuarial table:
    (a) In which you have a share;
    (b) That is planted for harvest as sunflower seed; and
    (c) That is not (unless a written agreement allows otherwise):
    (1) Interplanted with another crop; or
    (2) Planted into an established grass or legume.

7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) 
of the Basic Provisions (Sec. 457.8):
    (a) We will not insure any acreage which does not meet the 
rotation requirements shown in the Special Provisions; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not 
produce at least ninety percent (90%) of the production guarantee, 
must be replanted unless we agree that replanting is not practical 
(see subsection 1.(k)).

8. Insurance Period

    In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8), the calendar date for 
the end of the insurance period is November 30, immediately 
following planting.

9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only 
against the following causes of loss which occur within the 
insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) If applicable, failure of the irrigation water supply due to 
an unavoidable cause of loss occurring after the beginning of 
planting.

10. Replanting Payments

    (a) In accordance with section 13 (Replanting Payment) of the 
Basic Provisions (Sec. 457.8), a replanting payment for sunflower 
seed is allowed if the sunflowers are damaged by an insurable cause 
of loss to the extent that the remaining stand will not produce at 
least ninety percent (90%) of the production guarantee for the 
acreage and it is practical to replant (see subsection 1.(k)).
    (b) The maximum amount of the replanting payment per acre will 
be the lesser of twenty percent (20%) of the production guarantee or 
175 (pounds of seed), multiplied by your price election, multiplied 
by your insured share or the share determined in accordance with 
subsection 10.(c), if applicable.
    (c) When more than one person insures the same crop on a share 
basis, a replanting payment based on the total shares insured by us 
may be made to the insured person who incurs the total cost of 
replanting. Payment will be made in this manner only if an agreement 
exists between the insured persons which:
    (1) Requires one person to incur the entire cost of replanting; 
or
    (2) Gives the right to all replanting payments to one person.
    (d) When sunflower seed is replanted using a practice that is 
uninsurable as an original planting, the liability for the unit will 
be reduced by the amount of the replanting payment which is 
attributable to your share. The premium amount will not be reduced.

11. Duties in the Event of Damage or Loss

    In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), the 
representative samples of the unharvested crop must be at least 10 
feet wide and extend the entire length of each field in the unit. 
The samples must not be harvested or destroyed until the earlier of 
our inspection or 15 days after harvest of the balance of the unit 
is completed.

12. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units 
for which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim on any unit by:
    (1) Multiplying the insured acreage of each type of sunflower 
seed by the production guarantee for the applicable type;
    (2) Multiplying each result by the price election for the 
applicable type;
    (3) Adding these values;
    (4) Multiplying the production to count of each type of 
sunflower seed by the price election for that type;
    (5) Adding these dollar values;
    (6) Subtracting the result of step (5) from the result of step 
(3); and
    (7) Multiplying the result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may 
be adjusted for quality deficiencies and excess moisture in 
accordance with subsection 12.(d)); and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you 
and we agree on the appraised amount of production. Upon such 
agreement, the insurance period for that acreage will end if you put 
the acreage to another use or abandon the crop. If agreement on the 
appraised amount of production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative 
samples of the crop in locations acceptable to us, (The amount of 
production to count for such acreage will be based on the harvested 
production or appraisals from the samples at the time harvest should 
have occurred. If you do not leave the required samples intact, or 
you fail to provide sufficient care for the samples, our appraisal 
made prior to giving you consent to put the acreage to another use 
will be used to determine the amount of production to count.); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested 
production, or our reappraisal if additional damage occurs and the 
crop is not harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Mature sunflower seed production may be adjusted for excess 
moisture and quality deficiencies. If moisture adjustment is 
applicable, it will be made prior to any adjustment for quality.
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of ten percent (10%). We may 
obtain samples of the production to determine the moisture content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality result in:
    (A) Oil type sunflower seed not meeting the grade requirements 
for U.S. No. 2 (grades U.S. sample grade) because of test weight, 
kernel damage (excluding heat damage), or a musty, sour or 
commercially objectionable foreign odor; or
    (B) Non-oil type sunflower seed having a test weight below 22 
pounds per bushel or kernel damage (excluding heat damage) in excess 
of five percent (5%) or a musty, sour or commercially objectionable 
foreign odor; or
    (ii) Substances or conditions are present that are identified by 
the Food and Drug Administration or other public health 
organizations of the United States as being injurious to human or 
animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions, resulted from a 
cause of loss against which insurance is provided under these crop 
provisions and within the insurance period ;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us 
or by a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grader licensed to grade 
sunflower seed under the authority of the United States Grain 
Standards Act or the United States Warehouse Act with regard to 
deficiencies in quality, or by a laboratory approved by us with 
regard to substances or conditions injurious to human or animal 
health. (Test weight for quality adjustment purposes may also be 
determined by our loss adjuster.)
    (4) Sunflower seed production that is eligible for quality 
adjustment, as specified in paragraphs 12.(d)(2) and (3), will be 
reduced:
    (i) In accordance with quality adjustment factor provisions 
contained in the Special Provisions; or
    (ii) As follows, if quality adjustment factor provisions are not 
contained in the Special Provisions:
    (A) The market price of the qualifying damaged production and 
the local market price will be determined on the earlier of the date 
such quality adjusted production is sold or the date of final 
inspection for the unit. The price for the qualifying damaged 
production will be the market price for the local area to the extent 
feasible. Discounts used to establish the net price of the damaged 
production will be limited to those which are usual, customary, and 
reasonable. The price will not be reduced for:
    (1) Moisture content;
    (2) Damage due to uninsured causes; or
    (3) Drying, handling, processing, or any other costs associated 
with normal harvesting, handling, and marketing of the sunflower 
seed; except, if the price of the damaged production can be 
increased by conditioning, we may reduce the price of the production 
after it has been conditioned by the cost of conditioning but not 
lower than the value of the production before conditioning. (We may 
obtain prices from any buyer of our choice. If we obtain prices from 
one or more buyers located outside your local market area, we will 
reduce such prices by the additional costs required to deliver the 
sunflower seed to those buyers.);
    (B) The value of the damaged or conditioned production will be 
divided by the local market price to determine the quality 
adjustment factor; and
    (C) The number of pounds remaining after any reduction due to 
excessive moisture (the moisture-adjusted gross pounds (if 
appropriate)) of the damaged or conditioned production will then be 
multiplied by the quality adjustment factor to determine the net 
production to count.
    (e) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.

13. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Basic Provisions (Sec. 457.8), insurance will be provided for 
acreage planted to the insured crop during the late planting period 
(see subsection 13.(c)), and acreage you were prevented from 
planting (see subsection 13.(d)). These coverages provide reduced 
production guarantees. The reduced guarantees will be combined with 
the production guarantee for timely planted acreage for each unit. 
The premium amount for late planted acreage and eligible prevented 
planting acreage will be the same as that for timely planted 
acreage. If the amount of premium you are required to pay (gross 
premium less our subsidy) for late planted acreage or prevented 
planting acreage exceeds the liability on such acreage, coverage for 
those acres will not be provided (no premium will be due and no 
indemnity will be paid for such acreage), (For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The 
unit consists of 150 acres, of which 50 acres were planted timely, 
50 acres were planted seven (7) days after the final planting date 
(late planted), and 50 acres are unplanted and eligible for 
prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the 
unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) 
and multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by fifty 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.(l)). This notice must be given not 
later than three (3) days after:
    (1) The final planting date for acreage you were prevented from 
planting by the final planting date if you have unplanted acreage 
that may be eligible for prevented planting coverage; and
    (2) The date you discover that planting will not be possible 
within the late planting period for any acreage that may be eligible 
for prevented planting coverage, if you were not prevented from 
planting such acreage by the final planting date but were prevented 
from planting such acreage during the late planting period.
    (c) Late Planting
    (1) For sunflower acreage planted after the final planting date 
but on or before 25 days after the final planting date, the 
production guarantee for each acre will be reduced for each day 
planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), you must report the 
dates the acreage is planted within the late planting period.
    (3) If planting of sunflower seed continues after the final 
planting date, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special 
Provisions for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late 
Planting Period)
    (1) If you were prevented from planting sunflowers (see 
subsection 1.(l)), you may elect:
    (i) To plant sunflower seed during the late planting period, 
(The production guarantee for such acreage will be determined in 
accordance with paragraph 13.(c)(1));
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year, (The production guarantee for such 
acreage will be fifty percent (50%) of the production guarantee for 
timely planted acres, (For example, if your production guarantee for 
timely planted acreage is 900 pounds per acre, your prevented 
planting production guarantee would be equivalent to 450 pounds per 
acre (900 pounds multiplied by 0.5)). 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 sunflower seed after the late planting period, 
(The production guarantee for such acreage will be fifty percent 
(50%) of the production guarantee for timely planted acres, (For 
example, if your production guarantee for timely planted acreage is 
900 pounds per acre, your prevented planting production guarantee 
would be equivalent to 450 pounds per acre (900 pounds multiplied by 
0.5)). Production to count for such acreage will be determined in 
accordance with subsections 12.(c) through (e).
    (2) In addition to the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8), the insurance period 
for prevented planting coverage begins:
    (i) For the crop year your application is accepted, on the sales 
closing date contained in the Special Provisions for the insured 
crop in the county; or
    (ii) For any continuous crop year following the crop year your 
application is accepted, or for any crop year this insurance policy 
is transferred to a different insurance provider, on the sales 
closing date for the crop year immediately preceding the current 
crop year, provided continuous coverage has been in effect since 
that date.
    (3) The acreage to which prevented planting coverage applies 
will be limited as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture for the crop year which limits the 
number of acres that may be planted, prevented planting acreage will 
not exceed the CFSA base acreage for the insured crop, reduced by 
any acreage reduction applicable to the farm under such program.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture which limits the number 
of acres that may be planted, unless a written agreement exists to 
the contrary, eligible acreage will not exceed the greater of:
    (A) The CFSA base acreage for the insured crop, if applicable;
    (B) The number of acres planted to sunflower seed on each CFSA 
Farm Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing 
date); or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to sunflower seed during the crop years that 
were used to determine your yield.
    (iii) 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.
    (iv) 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 exists 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 sunflower seed 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;
    (v) For the purpose of determining eligible acreage for 
prevented planting coverage, acreage for all units will be combined 
and be reduced by the number of sunflower acres timely planted and 
late planted, (For example, assume you have 100 acres eligible for 
prevented planting coverage in which you have a 100 percent (100%) 
share. The acreage is located in a single CFSA Farm Serial Number 
which you insure as two separate optional units consisting of 50 
acres each. If you planted 60 acres of sunflower seed on one 
optional unit and 40 acres of sunflower seed on the second optional 
unit, your prevented planting eligible acreage would be reduced to 
zero, (100 acres eligible for prevented planting coverage less 100 
acres planted equals zero)). If you report more sunflower 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 CFSA Farm Serial Number covers more than one unit, 
or a unit consists of more than one CFSA Farm Serial Number, the 
covered acres will be pro-rated based on the number of acres in each 
unit or CFSA Farm Serial Number that could have been planted to 
sunflowers in the crop year.
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions (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 D.C., on December 22, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-32021 Filed 12-28-94; 8:45 am]
BILLING CODE 3410-08-P