[Federal Register Volume 60, Number 4 (Friday, January 6, 1995)]
[Rules and Regulations]
[Pages 2000-2005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-356]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 402

RIN 0563-AB09


Catastrophic Risk Protection Endorsement

AGENCY: Federal Crop Insurance Corporation.

ACTION: Interim rule.

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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby adds 
a new part 402 to chapter IV of title 7 of the Code of Federal 
Regulations (``CFR''). The intended effect of this interim rule is to 
provide a catastrophic risk protection plan of insurance, the lowest 
level of coverage required to be purchased by a producer to be eligible 
for certain other agricultural farm program benefits, to comply with 
statutory mandates of the Federal Crop Insurance Act as amended by the 
Federal Crop Insurance Reform Act of 1994.

DATES: This rule is effective January 6, 1995. Written comments, data, 
and [[Page 2001]] opinions on this rule will be accepted until close of 
business March 7, 1995, and will be considered when the rule is to be 
made final.

ADDRESSES: Written comments, data, and opinion on this interim rule 
should be sent to Diana Moslak, Regulatory and Procedural Development 
Staff, Federal Crop Insurance Corporation, USDA, Washington, D.C. 
20250. Hand or messenger delivery may be made to Suite 500, 2101 L 
Street, N.W., Washington D.C. Written comments will be available for 
public inspection and copying in the Office of the Manager, 2101 L 
Street, N.W., 5th Floor, Washington, D.C., during regular business 
hours, Monday through Friday.

FOR FURTHER INFORMATION CONTACT:For further information and a copy of 
the Regulatory Impact Analysis to the Catastrophic Risk Protection 
Endorsement, contact Diana Moslak, Federal Crop Insurance Corporation, 
U.S. Department of Agriculture, Washington, D.C. 20250. Telephone (202) 
254-8314.

SUPPLEMENTARY INFORMATION: This action has been reviewed under United 
States Department of Agriculture (``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 December 1, 1999.
    This rule has been determined to be ``economically significant'' 
for the purposes of Executive Order 12866, and therefore, has been 
reviewed by the Office of Management and Budget (``OMB'').
    A Regulatory Impact Analysis has been completed and is available to 
interested persons at the address listed above. In summary, the 
analysis finds that crop insurance reform generally is expected to 
result in net positive benefits to producers, taxpayers, and society. 
The effects on individual producers compared to payments under ad hoc 
disaster programs depends primarily on the farm program payment yield 
compared to the farm's actual yield and market prices. In general, 
however, the reform is expected to result in less volatility of 
producer's incomes and lesser risk of no income due to adverse weather 
events. Rural communities and farmers will benefit from the certainty 
of payments in times of catastrophic yield losses. The Government and 
taxpayers will benefit from a single disaster protection program and 
consequent reduced Federal outlays. Although some producers (previous 
non-participants in crop insurance) will have an added burden to make 
application and report yields and acreage, the benefits in terms of 
greater risk protection outweigh the costs.
    This interim rule amends the existing information collection as 
approved by the Office of Management and Budget (OMB) pursuant to the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.), under OMB 
control numbers 0563-0001, 0563-0003, and 0563-0029. Due to the time 
constraints of implementing the rule immediately, the agency has 
requested emergency clearance of this addendum from OMB. Comments on 
the information collection may be sent to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Room 10202, NEOB, 
Washington, D.C. 20503. Attention: Desk Officer for USDA.
    It has been determined under section 6(a) of Executive Order 12612, 
Federalism, that this rule does not have sufficient federalism 
implication to warrant the preparation of a Federalism Assessment. The 
provisions 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.
    Under the Regulatory Flexibility Act (5 U.S.C. 605), this 
regulation will not have a significant impact on a substantial number 
of small entities. Producers will be able to certify to their 
historical production levels at the time of application based on 
existing records, or they may elect to base their insurance on assigned 
yields, which will not require maintenance of production records by the 
insurance agent. The amount of data collected by the agent for new 
insureds is not greater than the amount of data collected for existing 
insureds. Insureds may elect to keep production records to increase the 
amount of production covered by insurance but such production is not 
required to participate in the program. The benefits in terms of risk 
reduction and protection from severe losses will out-weigh any record-
keeping costs. 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, and for catastrophic risk protection 
contracts of insurance delivered through local USDA offices, the 
National Appeal Division administrative appeal provisions under the 
Department of Agriculture Reorganization Act of 1994 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.
    This interim rule implements programs mandated by the amendments to 
the Federal Crop Insurance Act by the Federal Crop Insurance Reform Act 
of 1994. Those amendments required that the statutory changes be 
implemented for the 1995 crop year. All of the contract change dates 
and many of the sales closing dates for 1995 insured crops have passed 
or will soon pass. Many of the changes contained in these regulations 
are mandated by statute. Planting decisions for 1995 crops have been or 
will shortly be made and it is necessary that producers, lenders, and 
suppliers know the parameters and requirements of the program. 
Therefore, it is impractical and contrary to the public interest to 
publish this rule for notice and comment prior to making the rule 
effective. However, comments are solicited for 60 days after the date 
of publication in the Federal Register and will be considered by FCIC 
before this rule is made final.
    On October 13, 1994, the amendments to the Federal Crop Insurance 
Act, made by the Federal Crop Insurance Reform Act of 1994, were 
effective. This regulation will provide the policy and procedures to 
carry out catastrophic risk protection insurance requirements of the 
Reform Act.

Background

    Upon publication of 7 CFR part 402, this regulation will provide 
catastrophic risk protection crop insurance through an endorsement that 
amends new and existing crop insurance policies, 
[[Page 2002]] endorsements, and provisions when purchased by the 
insured. The amendments are as follows:
    1. Section 402.4, subsection 2.(b) specifies that to be eligible 
for catastrophic coverage a producer must be a person as defined in the 
crop policy.
    2. Section 402.4, subsection 2.(c) provides for the termination of 
this endorsement if the insured fails to pay the administrative fee, 
elects to purchase limited or additional coverage, or if the applicable 
crop policy is terminated or cancelled.
    3. Section 402.4, section 3 specifies that a unit is all of the 
insurable acreage of the insured crop in the county on the date 
coverage begins for the crop year, in which the insured has a 100 
percent (100%) share. Land which is owned by one person and operated by 
another person on a share basis is considered a separate unit.
    4. Section 402.4, subsection 4.(a) specifies that for the 1995 
through 1998 crop years, coverage will be equal to fifty percent (50%) 
of the producer's approved yield indemnified at sixty percent (60%) of 
the expected market price, or a comparable coverage as established by 
FCIC.
    5. Section 402.4, subsection 4.(b) specifies that for the 1999 and 
subsequent crop years, coverage will be equal to fifty percent (50%) of 
the producer's approved yield indemnified at fifty-five percent (55%) 
of the expected market price, or a comparable coverage as established 
by FCIC.
    6. Section 402.4, subsection 4.(d) allows the insured the option of 
selecting catastrophic risk coverage, on a commodity-by-commodity 
basis, on either an individual yield and loss basis or an area yield 
and loss basis, if both options are offered in the Actuarial Table or 
Special Provisions.
    7. Section 402.4, subsection 5.(a) specifies that the insured will 
not be responsible to pay a premium for catastrophic coverage.
    8. Section 402.4, subsection 5.(b) requires the insured to pay an 
administrative fee of $50 per crop per county. Each type or variety 
specified in subsections 6.(a) and (b) and crop acreage specified in 
subsection 6.(c) will be considered a separate crop to which separate 
administrative fees apply. Total administrative fees for all crops 
insured under any combination of catastrophic coverage and limited 
coverage will not exceed $200 per producer per county, up to a maximum 
of $600 for all counties in which the producer has crops insured.
    9. Section 402.4, subsection 5.(c) specifies that the 
administrative fee for catastrophic coverage must be paid to the 
insurance provider at the time of application and will not be refunded 
if the insured files a zero acreage report the first crop year for 
which the application is accepted. For subsequent years, the 
administrative fee must be paid annually by the acreage reporting date, 
however, in subsequent years no administrative fee is required if the 
producer files a bona fide zero acreage report on or before the acreage 
reporting date. The administrative fee will be waived for a limited 
resource farmer.
    10. Section 402.4, subsection 5.(d) specifies that the 
administrative fee will be refunded if, after applying for catastrophic 
coverage and paying the administrative fee, the producer elects to 
purchase additional coverage for such crop. Administrative fees will be 
refunded only if the producer has not purchased catastrophic risk 
protection and limited coverage in excess of the maximum administrative 
fee to be paid in the applicable situation.
    11. Section 402.4, subsections 6.(a) and (b) specify the insured 
crop is provided in the applicable crop policy documents, except that 
each specified type of Stonefruit, Texas Citrus, Florida Citrus, 
Arizona-California Citrus, Texas Citrus Trees, and Guaranteed Tobacco, 
and each grape variety grown in California specified in the Special 
Provisions, that the producer elects to insure, will be insured as a 
separate crop.
    12. Section 402.4, subsection 6.(c) specifies that if the producer 
purchased limited or additional coverage for a crop, the producer may 
separately insure acreage that has been designated as high risk by FCIC 
provided that the producer has executed a high risk exclusion option 
under that policy and obtained a catastrophic risk protection policy 
with the same approved insurance provider and pays separate 
administrative fees for each policy in effect.
    13. Section 402.4, section 7 specifies that a replant payment will 
not be paid whether or not replanting is required under the policy.
    14. Section 402.4, subsection 8.(a) specifies that if a unit 
contains acreage to which more than one expected market price applies 
for a type, variety, class, etc., that the dollar amount of insurance 
and the dollar amount of production to be counted will be computed 
separately for each type, variety, class, etc., that have separate 
expected market prices, and then added together to determine the total 
liability for the unit.
    15. Section 402.4, subsection 8.(b) specifies that if the producer 
is eligible to receive an indemnity under the Catastrophic Risk 
Protection Endorsement and is also eligible to receive benefits for the 
same loss under other USDA programs, the producer must elect the 
program from which to receive benefits. Only one payment or program 
benefit will be allowed.
    16. Section 402.4, section 9 specifies that if a producer conceals 
or misrepresents any material fact or commits fraud, the policy will be 
voided effective with the beginning of the crop year for which such act 
or omission occurred.
    17. Section 402.4, subsection 10.(a) specifies that any option or 
endorsement which provides additional coverage is not available, except 
for the Late Planting Agreement Option. Written agreements are not 
available under the Catastrophic Risk Protection Endorsement.
    18. Section 402.4, subsection 10.(b) specifies that hail and fire 
coverage and land designated by FCIC as high-risk may not be excluded 
under this Endorsement.
    19. Section 402.4, section 11 specifies that a producer must obtain 
at least catastrophic coverage for each crop of economic significance 
to be eligible for any price support or production adjustment programs, 
loans or other USDA provided farm credit, or the Conservation Reserve 
Program. The requirement that the producer obtain at least catastrophic 
risk protection will apply to all program benefits obtained after 
October 13, 1994.

List of Subjects in 7 CFR Part 402

    Catastrophic Risk Protection Endorsement, insurance provisions.

Interim Rule

    For the reasons set out in the preamble, a part 402 is added to 
chapter IV of title 7 of CFR, effective for the 1995 and succeeding 
crop years, to read as follows:

PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT

Sec.
402.1  General Statement.
402.2  Applicability
402.3 OMB  control numbers
402.4  Catastrophic Risk protection endorsement

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


Sec. 402.1  General statement.

    The Federal Crop Insurance Act as amended by the Federal Crop 
Insurance Reform Act of 1994 (the ``Act'') requires the Federal Crop 
Insurance Corporation (``FCIC'') to implement a catastrophic risk 
protection plan of insurance which [[Page 2003]] provides a basic level 
of insurance coverage to protect producers in the event of a FCIC 
insured or reinsured crop loss due to loss of yield or prevented 
planting, if the crop loss or prevented planting is due to an insured 
cause of loss specified in the crop insurance policy. This Catastrophic 
Risk Protection Endorsement (``Endorsement'') is a continuous 
endorsement that is effective in conjunction with an applicable crop 
insurance policy. Catastrophic risk protection coverage will be offered 
through approved insurance providers and through local offices of the 
Consolidated Farm Service Agency, USDA.


Sec. 402.2  Applicability.

    This Endorsement is applicable to each crop for which catastrophic 
risk protection coverage is available and for which the producer elects 
such coverage. The terms and conditions of the applicable crop 
insurance policy remain in effect unless they have been modified by 
this Endorsement.


Sec. 402.3  OMB control numbers.

    The provisions set forth in this interim rule contain new and 
revised information collections that require clearance by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501 et seq.) and have been previously assigned OMB numbers 
0563-0001, 0563-0003, and 0563-0029. These information collection 
requirements have been submitted to OMB and are not effective until 
approved by OMB.


Sec. 402.4  Catastrophic Risk Protection Endorsement Provisions

    The Catastrophic Risk Protection Endorsement Provisions for the 
1995 and succeeding crop years are as follows:

Department of Agriculture

Federal Crop Insurance Corporation

Catastrophic Risk Protection Endorsement

    (This is a continuous endorsement).
    You should be aware that additional coverage is available 
through an approved insurance provider or through local offices of 
the Consolidated Farm Service Agency, USDA, when such provider is 
not available.
    If a conflict exists between this Endorsement and any of the 
policies specified in subsection 2.(a) or the Special Provisions for 
the insured crop, this endorsement will control.
    Terms and Conditions

1. Definitions

    (a) Additional coverage--A plan of crop insurance providing a 
level of coverage equal to or greater than sixty-five percent (65%) 
of your approved yield indemnified at one hundred percent (100%) of 
the expected market price or a comparable coverage as established by 
FCIC.
    (b) Administrative fee--The $50 fee the policyholder must pay on 
a per crop and county basis, with a maximum of $200 per policyholder 
per county and $600 per policyholder for catastrophic and limited 
coverage on an annual basis.
    (c) Approved insurance provider--A private insurance company, 
including their agents, that has been approved and reinsured by FCIC 
to provide insurance coverage to producers participating in the 
Federal crop insurance program.
    (d) Approved yield--The average amount of production per acre 
obtained under FCIC's Actual Production History Program (7 CFR Part 
400, Subpart G) using production records of the insured or yields 
assigned by FCIC. At least four crop years of yields must be 
averaged to obtain the approved yield.
    (e) Catastrophic risk protection--The minimal level of coverage 
offered by FCIC, which is required before a person may qualify for 
certain other United States Department of Agriculture program 
benefits (see subsections 4. (a) and (b) and subsection 11.(a)).
    (f) CFSA--The Consolidated Farm Service Agency of the United 
States Department of Agriculture.
    (g) County--The county or other political subdivision shown on 
your accepted application including land in an adjoining county, 
provided such land is part of a field that extends into the 
adjoining county and the county boundary is not readily discernable. 
For peanuts and quota tobacco, the county will also include any land 
identified by a CFSA farm serial number for the county but 
physically located in another county.
    (h) Crop of economic significance--A crop that has either 
contributed in the previous crop year, or is expected to contribute 
in the current crop year, ten percent (10%) or more of the total 
expected value of your share of all crops in which you have an 
insurable share that are grown in the county. However, 
notwithstanding the preceding sentence, if the total expected 
liability under the catastrophic risk protection endorsement is 
equal to or less than the administrative fee required for the crop, 
such crop will not be considered a crop of economic significance.
    (i) FCIC--The Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within the Consolidated Farm Service Agency, 
United States Department of Agriculture.
    (j) ``Insurance is available''--Means only those crops for which 
the crop information is contained in the county actuarial documents.
    (k) Limited coverage--A plan of insurance offering coverage that 
is equal to or greater than fifty percent (50%) of your approved 
yield indemnified at one hundred percent (100%) of the expected 
market price, or a comparable coverage as established by FCIC but 
less than sixty-five percent (65%) of your approved yield 
indemnified at one hundred percent (100%) of the expected market 
price, or a comparable coverage as established by FCIC.
    (l) Limited resource farmer--A producer or operator of a small 
or family farm, including a new producer or operator, with an annual 
gross income of less than $20,000 derived from all sources of 
revenue for each of the prior two years and who demonstrates a need 
to maximize farm income. Notwithstanding the preceding sentence, a 
producer on a farm of less than 25 acres aggregated for all crops, 
where the producer derives a majority of the producer's gross income 
from the farm but the producer's gross income from farming 
operations does not exceed $20,000, will be considered a limited 
resource farmer.
    (m) Price election--In lieu of any provision contained in any 
other policy document, price election means sixty percent (60%) of 
the expected market price for the 1995 through 1998 crop years, and 
fifty-five percent (55%) of the expected market price for the 1999 
and subsequent crop years.
    (n) Secretary--The Secretary of the United States Department of 
Agriculture.
    (o) Share--In lieu of any provision contained in any other 
policy document, your percentage of interest in the insured crop as 
owner, operator, or tenant at the time coverage begins. However, 
only for the purpose of determining the amount of indemnity, your 
share will not exceed your share at the earlier of the time of loss 
or the beginning of harvest. Unless the accepted application clearly 
indicates that insurance is requested for a partnership or joint 
venture, insurance will only cover the crop share of the person 
completing the application. The share will not extend to any other 
person having an interest in the crop except as may otherwise be 
specifically allowed in this endorsement. Any acreage or interest 
reported by or for your spouse, child or any member of your 
household may be considered your share. Leases containing provisions 
for both a cash or minimum payment and a crop share will be 
considered a crop share lease.
    (p) USDA--The United States Department of Agriculture.

2. Eligibility, Life of Policy, Cancellation, and Termination

    (a) You must have one of the following policies in force to 
elect this Endorsement and you must have made application for 
catastrophic risk protection on or before the sales closing date for 
the crop in the county:
    (1) The General Crop Insurance Policy (Sec. 401.8) and crop 
endorsement;
    (2) The Common Crop Insurance Policy (Sec. 457.8) and crop 
provisions;
    (3) The Group Risk Plan Policy, if available for catastrophic 
risk protection; or
    (4) A specific named crop insurance policy.
    (b) You must be a person as defined in the crop policy to be 
eligible for catastrophic risk protection coverage.
    (c) In addition to the provisions specified in the applicable 
crop endorsement, crop provision, and crop insurance policy, this 
Endorsement will terminate for the crop year for which:
    (1) You fail to pay the applicable administrative fee as 
specified in subsections 5.(b) and (c);
    (2) You elect to purchase limited or additional coverage for the 
insured crop; or [[Page 2004]] 
    (3) The applicable crop policy, to which this endorsement 
attaches, automatically terminates (e.g. Macadamia Tree and Nut Crop 
Insurance Policies must be renewed each year).

3. Unit Division

    (a) This section is in lieu of the unit provisions specified in 
the applicable crop endorsement, crop provisions, or crop insurance 
policy.
    (b) For catastrophic risk protection coverage, a unit will be 
all insurable acreage of the insured crop in the county on the date 
coverage begins for the crop year:
    (1) In which you have one hundred percent (100%) crop share; or
    (2) Which is owned by one person and operated by another person 
on a share basis. (Example: If, in addition to the land you own, you 
rent land from five landlords, three on a crop share basis and two 
on a cash basis, you would be entitled to four units, one for each 
crop share lease and one for the two cash leases and the land you 
own.)
    (c) Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the insured crop on such land 
will be considered as owned by the lessee.
    (d) Any unit division other than stated in subsection (b) above 
is not allowed under this Endorsement.

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

    (a) Notwithstanding any provision contained in any other policy 
document, for the 1995 through 1998 crop years, coverage will be 
equal to fifty percent (50%) of your approved yield indemnified at 
sixty percent (60%) of the expected market price, or a comparable 
coverage as established by FCIC.
    (b) Notwithstanding any provision contained in any other policy 
document, for the 1999 and subsequent crop years, coverage will be 
equal to fifty percent (50%) of your approved yield indemnified at 
fifty-five percent (55%) of the expected market price, or a 
comparable coverage as established by FCIC.
    (c) If the crop policy utilizes dollar coverage or other 
alternative methods of coverage, we will convert the dollar coverage 
or alternative coverage to the amount of coverage that would be 
available at fifty percent (50%) of your approved yield indemnified 
at sixty percent (60%) of the expected market price through 1998 and 
fifty percent (50%) of your approved yield indemnified at fifty-five 
percent (55%) of the expected market price for subsequent years.
    (d) You may elect catastrophic coverage, on a commodity-by-
commodity basis, on either an individual yield and loss basis, or an 
area yield and loss basis, if both options are offered in the 
Actuarial Table or Special Provisions.

5. Annual Premium and Administrative Fees

    (a) Notwithstanding any provision contained in any other policy 
document, you will not be responsible to pay a premium, nor will the 
policy be terminated because the premium has not been paid. FCIC 
will pay a premium subsidy equal to the premium established for the 
coverage provided under this Endorsement.
    (b) In return for catastrophic risk protection, you must pay an 
administrative fee of $50 per crop per county as follows:
    (1) Each type or variety specified in subsections 6.(a) and (b), 
and crop acreage specified in subsection 6.(c) will be a separate 
insured crop to which separate administrative fees apply; and
    (2) Total administrative fees for all crops insured under any 
combination of catastrophic coverage and limited coverage will not 
exceed two hundred dollars ($200) per county and six hundred dollars 
($600) for all counties in which you have crops insured.
    (c) Administrative fees for catastrophic coverage:
    (1) Must be paid to the insurance provider at the time of 
application (the fee will not be refunded if you file a zero acreage 
report the crop year for which the application is accepted);
    (2) Must be paid annually by the acreage reporting date for the 
applicable crop for any subsequent crop years that crop insurance is 
in effect (the fee will not be required if you file a bona fide zero 
acreage report on or before the acreage reporting date); and
    (3) Will be waived for a limited resource farmer (see subsection 
1.(l)).
    (d) The administrative fee will be refunded if, after applying 
for catastrophic risk protection and paying the administrative fee, 
you elect to purchase additional coverage for such crop in the same 
county on or before the sales closing date. Administrative fees will 
be refunded only if you have not purchased catastrophic risk 
protection and limited coverage in excess of the maximum 
administrative fee to be paid in the applicable situation.
    (e) If the administrative fee is not paid at the time of 
application, or by the acreage reporting date, whichever is 
applicable, the crop insurance contract will not be in effect for 
the crop year for which the fee is due and will terminate, and you 
will not be eligible for certain USDA programs as set out in section 
11.

6. Insured Crop

    The crop insured is specified in the applicable crop policy 
documents except as indicated in (a), (b), and (c) below:
    (a) You may elect to insure the crop by type, as specified in 
the applicable policy documents for Stonefruit, Texas Citrus, 
Florida Citrus, Arizona-California Citrus, Texas Citrus Trees, and 
Guaranteed Tobacco. These individual crop types will be insured as 
separate crops.
    (b) You may elect to insure your grapes grown in California by 
variety, as specified in the Special Provisions. These individual 
crop varieties will be insured as separate crops.
    (c) Notwithstanding any other policy provision requiring 
insurance coverage on all insurable acreage of the crop in the 
county, if you purchase limited or additional coverage for a crop, 
you may separately insure acreage that has been designated as high 
risk land by FCIC, provided that you have executed a high risk land 
exclusion option under that policy and obtained a catastrophic risk 
protection policy with the same approved insurance provider. If both 
policies are in force, that acreage of the crop covered under the 
limited or additional coverage policy and the acreage covered under 
the Catastrophic Risk Protection Endorsement will be considered 
separate crops.

7. Replanting Payment

    Notwithstanding any provision contained in any other crop 
insurance document, no replant payment will be paid whether or not 
replanting of the crop is required under the policy.

8. Claim for Indemnity

    (a) If two or more insured crop types, varieties, or classes are 
insured within the same unit, and multiple expected market prices 
are applicable, the dollar amount of insurance and the dollar amount 
of production to be counted will be determined separately for each 
type, variety, class, etc., that have separate expected market 
prices and then added together to determine the total liability for 
the unit.
    (b) If you are eligible to receive an indemnity under this 
Endorsement, and are also eligible to receive benefits for the same 
loss under any other USDA program, you must elect the program from 
which you wish to receive benefits. Only one payment or program 
benefit will be allowed.

9. Concealment or Fraud

    Notwithstanding any provision contained in any other crop 
insurance document, your policy may be voided on all crops, without 
waiving any rights, including the right to collect any amounts due:
    (a) If at any time you conceal or misrepresent any material fact 
or commit fraud relating to this or any other contract issued under 
the authority of the Federal Crop Insurance Act with any insurance 
provider; and
    (b) The voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred. After 
the policy has been voided, you must make a new application to 
obtain catastrophic risk protection coverage for subsequent crop 
years.

10. Exclusion of Coverage

    (a) Options or endorsements which provide additional coverage 
and which are available under any crop endorsement, crop provision 
or crop policy offered by FCIC will not be available under this 
Endorsement, except for the Late Planting Agreement Option. Written 
agreements are not available for any crop insured under this 
Endorsement.
    (b) Notwithstanding any provision contained in any other crop 
insurance document, hail and fire coverage and high-risk land may 
not be excluded for any crop for which this Endorsement is in 
effect.

11. Eligibility for Other USDA Program Benefits

    (a) You must obtain at least the catastrophic risk protection 
level of coverage for each crop of economic significance in the 
county in which you have an insurable share, if insurance is 
available in the county for the crop, to be eligible for:
    (1) Price support and production adjustment programs including, 
but not limited to, those for tobacco, rice, extra long 
[[Page 2005]] staple cotton, upland cotton, feed grains, wheat, 
peanuts, oilseeds, and sugar;
    (2) Loans or any other USDA provided farm credit including 
guaranteed and direct farm ownership loans, operating loans, and 
emergency loans under the Consolidated Farm and Rural Development 
Act; and
    (3) The Conservation Reserve Program.
    (b) The requirement that you obtain catastrophic risk protection 
will apply to all new and amended applications, contracts and loans 
obtained after October 13, 1994.
    Done in Washington, D.C., on December 21, 1994
Suzette Dittrich,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-356 Filed 1-3-95; 3:38 pm]
BILLING CODE 3410-08-U