[Federal Register Volume 60, Number 216 (Wednesday, November 8, 1995)]
[Proposed Rules]
[Pages 56257-56268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27711]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 60, No. 216 / Wednesday, November 8, 1995 / 
Proposed Rules  

[[Page 56257]]


DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401, 443, and 457

RIN 0563-AB43


General Crop Insurance Regulations, Various Endorsements; Hybrid 
Seed Crop Insurance Regulations; and Common Crop Insurance Regulations, 
Various Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation.

ACTION: Proposed rule.

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

SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby 
proposes to amend the General Crop Insurance Regulations, Hybrid 
Sorghum Seed and Rice Endorsements; the Hybrid Seed Crop Insurance 
Regulations; and the Common Crop Insurance Regulations, Small Grains, 
Cotton, Extra Long Staple Cotton, Sunflower Seed and Coarse Grains Crop 
Insurance Provisions; applicable beginning with the 1996 crop year for 
spring crops with contract change dates after the effective date of 
this rule, by revising prevented planting coverage. The intended effect 
of this regulation is to expand prevented planting benefits available 
under the various policies being amended.

DATES: Written comments, data, and opinions on this proposed rule must 
be submitted by the close of business November 20, 1995 to be 
considered when the rule is to be made final.

ADDRESSES: Written comments, data, and opinions on this proposed 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 should be made to 2101 L Street, 
N.W., Suite 500, 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 Cost-Benefit Analysis and Regulatory Flexibility Analysis to the 
General Crop Insurance Regulations; Hybrid Seed Crop Insurance 
Regulations; and Common Crop Insurance Regulations for prevented 
planting provisions, contact Diana Moslak, Regulatory and Procedural 
Development Staff, 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 
does not constitute a review as to the need, currency, clarity, and 
effectiveness of these regulations under those procedures. The sunset 
review date established for small grains is July 1, 1998; coarse 
grains, cotton, Extra Long Staple cotton and Sunflower Seed is March 1, 
1999; Hybrid Seed is October 1, 1997; Hybrid Sorghum Seed is May 1, 
2000; and Rice is August 29, 1998.
    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 Cost-Benefit Analysis has been completed and is available to 
interested persons at the address listed above. In summary, the 
analysis finds that the expected Treasury costs of these changes are 
expected to range between $2.1 and $20.8 million. Added costs are due 
to higher reimbursements to reinsured companies and for premium 
subsidies for producers. The estimates assume the majority of farmers 
will decline the coverage for the substitute crop, opting instead for a 
reduced premium on the intended crop. Nationwide, premium rates will 
increase 6 to 7 percent for the added coverage. As examples of monetary 
impacts, this means average increases in the farmer paid premium of 20-
25 cents per acre for wheat in the Northern Plains; 30 cents for corn 
in Iowa; and 60-90 cents per acre for upland cotton. However, the 
premium rate increases will not be uniform. Instead, the highest risk 
areas (such as lowlands along rivers and similar conditions) can expect 
greater increases in premium to cover the added risk. Producers who 
farm such lands are expected to be the primary group that will retain 
this added coverage and elect to pay the additional premium. The 
changes to the prevented planting rules are expected to provide farmers 
with added assistance in extreme weather conditions, but do so in a 
manner that maintains the actuarial integrity of the Federal crop 
insurance program.

Paperwork Reduction Act of 1995

    The information collection requirements contained in these 
regulations have been submitted to OMB for their approval under section 
3507(d) of the Paperwork Reduction Act of 1995. These requirements were 
previously approved by OMB under OMB control number 0563-0003 through 
September 30, 1998. The amendments set forth in this rule do not revise 
the content or alter the frequency of reporting for any of the forms 
cleared under the above-referenced docket.
    The title of this information collection is ``Catastrophic Risk 
Protection Plan and Related Requirements including General Crop 
Insurance Regulations, Hybrid Seed Crop Insurance Regulations and 
Common Crop Insurance Regulations.'' The information to be collected 
includes: a crop insurance acreage report, an insurance application and 
continuous contract. Information collected from the acreage report and 
application is electronically transmitted to FCIC by the reinsured 
companies. Some respondents may provide additional information for the 
purpose of selecting insurance options that apply to specific crops or 
specific areas in which a crop is produced. Potential respondents to 
this information collection are growers of crops that are eligible for 
Federal Crop Insurance.
    The information requested is necessary for the insurance company 
and FCIC to provide insurance, provide reinsurance, determine 
eligibility, determine the correct parties to the agreement, determine 
and collect premiums or other monetary amounts (or fees), and pay 
benefits.
    All information is reported annually. The reporting burden for this 
collection of information is estimated to average 16.9 minutes per 
response for each of the 3.6 responses from approximately 1,750,015 
respondents. The total annual burden on the public for this 

[[Page 56258]]
information collection is 2,668,750 hours. The total annual burden has 
increased from the 1995 requirements to reflect the paperwork burden on 
the reinsured companies.
    Comments are invited on: (a) whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the collection of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology.
    Comments should be submitted to the Desk Officer for Agriculture, 
Office of Information and Regulatory Affairs, Office of Management and 
Budget (OMB), Washington, D.C 20503 and to Bonnie Hart, Information 
Management Branch, Consolidated Farm Service Agency, U.S. Department of 
Agriculture, Washington, D.C. 20250. Copies of the information 
collection may be obtained from Bonnie Hart at the above address. 
Telephone (202) 690-2857.
    It has been determined under section 6(a) of Executive Order 12612, 
Federalism, that this rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment. The 
provisions 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.
    The amount of work required of the insurance companies and CFSA 
offices delivering the policies and the procedures therein may increase 
significantly from the amount of work currently required to deliver 
previous policies to which this regulation applies. Therefore, this 
action has been reviewed under the provisions of the Regulatory 
Flexibility Act (5 U.S.C. Sec. 605) and a Regulatory Flexibility 
Analysis is available to interested persons at the address listed 
above.
    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 
promulgated by the National Appeals Division under Pub. L. No. 103-354 
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.

Background

    Current regulations do not allow an insured producer to obtain a 
prevented planting guarantee for one crop and plant a substitute crop 
intended for harvest in the same crop year on the same land. By this 
rule, an insured who purchases limited or additional coverage beginning 
with the 1996 crop year for spring crops with contract change dates 
after the effective date of this rule, will be eligible to: (1) receive 
a prevented planting guarantee equal to 25 percent of the guarantee for 
timely planted acreage (20 percent for hybrid seed and 17.5 percent for 
cotton, ELS cotton, and rice) when acreage that is prevented from being 
planted is planted to a substitute crop and, as applicable, a 0/92 or 
50/92 program benefit; (2) exclude eligibility for prevented planting 
coverage when a substitute crop is planted in return for a reduction in 
the premium; and (3) receive prevented planting coverage on double 
cropped acreage (except for ELS cotton) if the producer can provide 
proof that planting of a second crop (double crop) following the 
harvest of an initial crop in the same crop year is a farming practice 
normally followed by that producer. By this rule, the prevented 
planting provisions also: (1) allow all insured producers to receive a 
0/92 or 50/92 program benefit, as applicable, and a crop insurance 
prevented planting guarantee equal to 50 percent of the guarantee for 
timely planted acreage (40 percent for hybrid seed and 35 percent for 
cotton, ELS cotton, and rice) when acreage that is prevented from being 
planted is not planted to a substitute crop; (2) eliminate the 
provisions that require acreage eligible for a prevented planting 
guarantee to be prorated to all units that could have been planted in 
the crop year; (3) change the date that notice of loss is required, 
from 3 days after the final planting date or the date the producer 
discovers that planting will not be possible within the late planting 
period, to the acreage reporting date; and (4) allow prevented planted 
acreage planted with a conserving use cover crop to be hayed and grazed 
without limitation.
    This rule defines prevented planting as ``Inability to plant the 
insured crop with proper equipment by the final planting date 
designated in the Special Provisions for the insured crop in the county 
or 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.'' This 
definition was designed to accommodate extremely varied production 
areas and farming practices; including those in which growers do not 
plant after the final planting date and those in which growers often do 
plant a crop within the late planting period. Some farming areas have 
relatively short growing seasons which make the prospect of a 
successful crop doubtful if planted much beyond the final planting 
date. Other areas have much longer growing seasons and often allow a 
successful crop to be grown even if planted well after the final 
planting date. In both long and short growing areas some farming 
practices, such as the production of silage, allow a grower to plant 
after the final planting date and still produce an acceptable crop. 
FCIC is specifically requesting comments and recommendations regarding 
this definition.

List of Subjects

7 CFR Part 401

    Crop insurance, Hybrid sorghum seed, Rice.

7 CFR Part 443

    Crop insurance, hybrid seed.

7 CFR Part 457

    Crop insurance, small grains, cotton, ELS cotton, sunflower seed 
and coarse grains.

Proposed Rule

    In this document, 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 General 
Crop Insurance Regulations (7 CFR part 401) by amending the Hybrid 
Sorghum Seed (Sec. 401.109) and Rice (Sec. 401.120) Endorsements; the 
Hybrid Seed Crop Insurance Policy (7 CFR 443.7(d)); and the Common Crop 
Insurance Regulations (7 CFR part 457) by amending the Small Grains 
(Sec. 457.101), Cotton (Sec. 457.104), Extra Long Staple 

[[Page 56259]]
Cotton (Sec. 457.105), Sunflower Seed (Sec. 457.108), and Coarse Grains 
(Sec. 457.113) Crop Insurance Provisions; applicable beginning with the 
1996 crop year for spring crops with contract change dates after the 
effective date of the final rule. Accordingly, 7 CFR parts 401, 443, 
and 457 are proposed to be amended as follows:

PART 401--[AMENDED]

    1. The authority citation for 7 CFR part 401 continues to read as 
follows:

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

    2. Section 401.109 is amended by revising paragraphs 12(a)(3), 
12(b), and 12(d) of the Hybrid Sorghum Seed Endorsement to read as 
follows:


Sec. 401.109  Hybrid sorghum seed endorsement.

* * * * *

12. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre amount 
of insurance for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 
50 acres you were prevented from planting, if the acreage is 
eligible for prevented planting coverage, and if you elect to plant 
a substitute crop for harvest after the intended crop was prevented 
from being planted. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you 
elected the Catastrophic Risk Protection Endorsement or you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see subparagraph 12(d)(1)(iii))).
    The total of the three calculations will be the amount of 
insurance for the unit. Your premium will be based on the result of 
multiplying the per acre amount of insurance for timely planted 
acreage by the 150 insured crop acres in the unit.
    (b) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (d) Prevented Planting (Including Planting After the Late 
Planting Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 13(o)), you may elect:
    (i) To plant the insured crop during the late planting period. 
The amount of insurance for such acreage will be determined in 
accordance with paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the amount of insurance 
for such acreage will be fifty percent (50%) of the amount of 
insurance for timely planted acres. For example, if your amount of 
insurance for timely planted acreage is 200 dollars per acre, your 
prevented planting amount of insurance would be 100 dollars per acre 
(200 dollars multiplied by 0.50). If you elect to plant the insured 
crop after the late planting period, production to count for such 
acreage will be determined in accordance with subsections 8b through 
e; or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the amount of insurance for such acreage 
will be twenty-five percent (25%) of the amount of insurance for 
timely planted acres. If you elected the Catastrophic Risk 
Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your amount of insurance for timely planted acreage 
is 200 dollars per acre, your prevented planting amount of insurance 
would be 50 dollars per acre (200 dollars multiplied by 0.25). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
yield upon which your amount of insurance is based may be required.
    (3) In addition to the provisions of section 7 (Insurance 
Period) of the General Crop Insurance Policy (Sec. 401.8), the 
insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase a hybrid sorghum seed crop 
insurance policy for the 1996 crop year, prevented planting coverage 
will begin on the 1996 sales closing date for the insured crop in 
the county. If the hybrid sorghum seed coverage remains in effect 
for the 1997 crop year (is not terminated or cancelled during or 
after the 1996 crop year, except the policy may have been cancelled 
to transfer the policy to a different insurance provider, if there 
is no lapse in coverage), prevented planting coverage for the 1997 
crop year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop during the 
previous crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to the insured crop for previous years for 
which you have continuous records of planted acreage.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 


[[Page 56260]]
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 acres of the insured crop 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 the insured 
crop on one optional unit and 40 acres of the insured crop on the 
second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. The total amount 
of prevented planting and planted acres cannot exceed the maximum 
number of acres eligible for prevented planting coverage. Any 
acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your 
acreage report.
    (6) If the amount of premium you are required to pay (gross 
premium less our subsidy) for the prevented planting acreage exceeds 
the prevented planting liability on a unit, prevented planting 
coverage will not be provided for that unit (no premium will be due 
and no indemnity will be paid for such acreage).


Sec. 401.109  [Amended]

    3. Section 401.109 is amended by revising paragraph 13(o) to read 
as follows:
* * * * *
13. Meaning of Terms

* * * * *
    (o) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *
    4. Section 401.120 is amended by revising paragraphs 10(a)(3), 
10(b), and 10(d) of the Rice Endorsement to read as follows:


Sec. 401.120  Rice endorsement.

* * * * *

10. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible 
for prevented planting coverage, and if the acreage is left idle for 
the crop year, or if a cover crop is planted not for harvest. 
Prevented planting compensation hereunder will not be denied because 
the cover crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the 
acreage is eligible for prevented planting coverage, and if you 
elect to plant a substitute crop for harvest after the intended crop 
was prevented from being planted. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available 
hereunder, if you elected the Catastrophic Risk Protection 
Endorsement or you elected to exclude prevented planting coverage 
when a substitute crop is planted (see subparagraph 10(d)(1)(iii))).
    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) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (d) Prevented Planting (Including Planting After the Late 
Planting Period).
    (1) If you were prevented from planting rice (see subsection 
11(h)), you may elect:
    (i) To plant rice during the late planting period. The 
production guarantee for such acreage will be determined in 
accordance with paragraph 10(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the production guarantee 
for such acreage will be thirty-five percent (35%) of the production 
guarantee for timely planted acres. For example, if your production 
guarantee for timely planted acreage is 2000 pounds per acre, your 
prevented planting production guarantee would be 700 pounds per acre 
(2000 pounds multiplied by 0.35). If you elect to plant the insured 
crop after the late planting period, production to count for such 
acreage will be determined in accordance with subsections 7 b and c; 
or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be seventeen and five tenths percent (17.5%) of the production 
guarantee for timely planted acres. If you elected the Catastrophic 
Risk Protection Endorsement or excluded this coverage and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 2000 pounds per acre, your prevented planting production 
guarantee would be 350 pounds per acre (2000 pounds multiplied by 
0.175). You may elect to exclude prevented planting coverage when a 
substitute crop is planted for harvest and receive a reduction in 
the applicable premium rate. If you wish to exclude this coverage, 
you must so indicate on your application or on a form approved by 
us. Your election to exclude this coverage will remain in effect 
from year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (3) In addition to the provisions of section 7 (Insurance 
Period) of the General Crop Insurance Policy (Sec. 401.8), the 
insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special 
Provisions for rice in the county for the crop year the application 
for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase a rice crop insurance policy 
for the 1996 crop year, prevented planting coverage will begin on 
the 1996 sales closing date for the insured crop in the county. If 
the rice coverage remains in effect for the 1997 crop year (is not 
terminated or cancelled during or after the 1996 crop year, except 
the policy may have been cancelled to transfer the policy to a 
different insurance provider, if there is no lapse in coverage), 
prevented planting coverage for the 1997 crop year began on the 1996 
sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:

[[Page 56261]]

    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to rice during the previous crop 
year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to rice during the crop years that you 
certified to determine your yield.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have 
a history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received.
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained fallow for crop rotation 
purposes.
    (iv) For the purpose of determining eligible acreage for 
prevented planting coverage, acreage for all units will be combined 
and be reduced by the number of rice 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 rice on one optional unit and 
40 acres of rice on the second optional unit, your prevented 
planting eligible acreage would be reduced to zero (i.e., 100 acres 
eligible for prevented planting coverage minus 100 acres planted 
equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. The total amount 
of prevented planting and planted acres cannot exceed the maximum 
number of acres eligible for prevented planting coverage. Any 
acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your 
acreage report.
    (6) If the amount of premium you are required to pay (gross 
premium less our subsidy) for the prevented planting acreage exceeds 
the prevented planting liability on a unit, prevented planting 
coverage will not be provided for that unit (no premium will be due 
and no indemnity will be paid for such acreage).

    5. Section 401.120 is amended by revising paragraph 11(h) to read 
as follows:
* * * * *

11. Meaning of Terms

* * * * *
    (h) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *

PART 443--[AMENDED]

    6. The authority citation for 7 CFR part 443 continues to read as 
follows:

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

    7. Section 443.7(d) is amended by revising paragraphs 17(a)(3), 
17(b), and 17(d) of the Hybrid Seed Crop Insurance Policy to read as 
follows:


Sec. 443.7  The application and policy.

* * * * *
    (d) * * *

17. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre amount 
of insurance for timely planted acreage by:
    (i) Forty percent (0.40) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Twenty percent (0.20) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible 
for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the intended crop was prevented 
from being planted. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you 
elected the Catastrophic Risk Protection Endorsement or you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see subparagraph 17(d)(1)(iii))).
    The total of the three calculations will be the amount of 
insurance for the unit. Your premium will be based on the result of 
multiplying the per acre amount of insurance for timely planted 
acreage by the 150 insured crop acres in the unit.
    (b) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (d) Prevented Planting (Including Planting After the Late 
Planting Period)
    (1) If you were prevented from planting the insured crop (see 
subsection 18(w)), you may elect:
    (i) To plant the insured crop during the late planting period. 
The amount of insurance for such acreage will be determined in 
accordance with paragraph 17(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the amount of insurance 
for such acreage will be forty percent (40%) of the amount of 
insurance for timely planted acres. For example, if your amount of 
insurance for timely planted acreage is 200 dollars per acre, your 
prevented planting amount of insurance would be 80 dollars per acre 
(200 dollars multiplied by 0.40). If you elect to plant the insured 
crop after the late planting period, production to count for such 
acreage will be determined in accordance with subsection 9e.; or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the amount of insurance for such acreage 
will be twenty percent (20%) of the amount of insurance for timely 
planted acres. If you elected the Catastrophic Risk Protection 
Endorsement or excluded this coverage, and plant a substitute crop, 
no prevented planting coverage will be provided. For example, if 
your amount of insurance for timely planted acreage is 200 dollars 
per acre, your prevented planting amount of insurance would be 40 
dollars per acre (200 dollars multiplied by 0.20). You may elect to 
exclude prevented planting coverage when a substitute crop is 
planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable 
sales closing date for the crop year for which you wish to include 
this coverage. 

[[Page 56262]]
All acreage of the crop insured under this policy will be subject to 
this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
yield upon which your amount of insurance is based may be required.
    (3) In addition to the provisions of section 7 (Insurance 
Period), the insurance period for prevented planting coverage 
begins:
    (i) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase a hybrid seed crop insurance 
policy for the 1996 crop year, prevented planting coverage will 
begin on the 1996 sales closing date for the insured crop in the 
county. If the hybrid seed coverage remains in effect for the 1997 
crop year (is not terminated or cancelled during or after the 1996 
crop year, except the policy may have been cancelled to transfer the 
policy to a different insurance provider, if there is no lapse in 
coverage), prevented planting coverage for the 1997 crop year began 
on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop during the 
previous crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to the insured crop for previous years for 
which you have continuous records of planted acreage.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (acreage that is 
less than 20 acres or 20 percent (20%) of the acreage in the unit 
will be presumed to have been intended to be planted to the insured 
crop planted on the adjoining acreage, unless you can show that you 
had the inputs available to plant and produce another insured crop 
on the acreage before the final planting date);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from being planted, if 
you have already received a prevented planting indemnity, guarantee 
or amount of insurance for such acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four crop years;
    (E) On which the insured crop is prevented from being planted, 
if any other crop is planted and fails, or is planted and harvested, 
hayed or grazed on such acreage in the same crop year, (other than a 
cover crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section), 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (F) Insured under the Catastrophic Risk Protection Endorsement 
if you:
    (1) Have already received a prevented planting indemnity, 
guarantee or amount of insurance for such acreage in the same crop 
year, even if the acreage has a history of double-cropping; or
    (2) Plant any other crop on the acreage for harvest, haying or 
grazing in the same crop year (other than a cover crop as specified 
in paragraph (a)(3)(i) of this section), even if such crop fails;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 acres of the insured crop 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 the insured 
crop on one optional unit and 40 acres of the insured crop on the 
second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, Type and Practice), you must report by unit any 
insurable acreage that you were prevented from planting. This report 
must be submitted on or before the acreage reporting date. The total 
amount of prevented planting and planted acres cannot exceed the 
maximum number of acres eligible for prevented planting coverage. 
Any acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your 
acreage report.
    (6) If the amount of premium you are required to pay (gross 
premium less our subsidy) for the prevented planting acreage exceeds 
the prevented planting liability on a unit, prevented planting 
coverage will not be provided for that unit (no premium will be due 
and no indemnity will be paid for such acreage).

    8. Section 443.7(d) is amended by revising paragraph 18(w) to read 
as follows:
* * * * *

18. Meaning of Terms

* * * * *
    (w) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *

PART 457--[AMENDED]

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

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

    10. Section 457.101 is amended by revising paragraph 1(p) of the 
Small Grains Crop Provisions to read as follows:


Sec. 457.101  Small Grains Crop Insurance.

* * * * *

1. Definitions

* * * * *
    (p) Prevented planting--Inability to plant the insured crop with 
proper equipment by the latest final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *
    11. Section 457.101 is amended by revising paragraphs 12(a)(3), 
12(b), and 12(d) to read as follows:
* * * * *

12. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres 
you were prevented 

[[Page 56263]]
from planting, if the acreage is eligible for prevented planting 
coverage, and if the acreage is left idle for the crop year, or if a 
cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 
50 acres you were prevented from planting, if the acreage is 
eligible for prevented planting coverage, and if you elect to plant 
a substitute crop for harvest after the intended crop was prevented 
from being planted. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you 
elected the Catastrophic Risk Protection Endorsement or you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see subparagraph 12(d)(1)(iii))).
    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) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (d) Prevented Planting (Including Planting After the Late 
Planting Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 1(p)), you may elect:
    (i) To plant the insured crop during the late planting period. 
The production guarantee for such acreage will be determined in 
accordance with paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the production guarantee 
for such acreage will be 50 percent (50%) of the production 
guarantee for timely planted acres. In counties for which the 
Special Provisions designate a spring final planting date, the 
prevented planting guarantee will be based on your approved yield 
for spring-planted acreage of the insured crop. For example, if your 
production guarantee for timely planted acreage is 30 bushels per 
acre, your prevented planting production guarantee would be 15 
bushels per acre (30 bushels multiplied by 0.50). If you elect to 
plant the insured crop after the late planting period, production to 
count for such acreage will be determined in accordance with 
subsections 11(c) through (e); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be twenty-five percent (25%) of the production guarantee for 
timely planted acres. If you elected the Catastrophic Risk 
Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 30 bushels per acre, your prevented planting production guarantee 
would be 7.5 bushels per acre (30 bushels multiplied by 0.25). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (3) In addition to the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase insurance for wheat for the 
1996 crop year, prevented planting coverage will begin on the 1996 
sales closing date for the insured crop in the county. If the wheat 
coverage remains in effect for the 1997 crop year (is not terminated 
or canceled during or after the 1996 crop year, except the policy 
may have been canceled to transfer the policy to a different 
insurance provider, if there is no lapse in coverage), prevented 
planting coverage for the 1997 crop year began on the 1996 sales 
closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop during the 
previous crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to the insured crop during the crop years 
that you certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have 
a history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 acres of the insured crop that are 
timely planted and late planted, if the late planting period is 
applicable. 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 

[[Page 56264]]
acres of the insured crop on one optional unit and 40 acres of the 
insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible 
for prevented planting coverage minus 100 acres planted equals 
zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date for spring-planted acreage of the insured crop in 
counties for which the Special Provisions designates a spring final 
planting date, or the acreage reporting date for fall-planted 
acreage of the insured crop in counties for which the Special 
Provisions designates a fall final planting date only. The total 
amount of prevented planting and planted acres cannot exceed the 
maximum number of acres eligible for prevented planting coverage. 
Any acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your 
acreage report.

    12. Section 457.104 is amended by revising paragraph 1(n) of the 
Cotton Crop Provisions to read as follows:


Sec. 457.104  Cotton crop insurance provisions.

* * * * *

1. Definitions

* * * * *
    (n) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *
    13. Section 457.104 is amended by revising paragraphs 12(a)(3), 
12(b), and 12(d) to read as follows:
* * * * *

12. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible 
for prevented planting coverage, and if the acreage is left idle for 
the crop year, or if a cover crop is planted not for harvest. 
Prevented planting compensation hereunder will not be denied because 
the cover crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the 
acreage is eligible for prevented planting coverage, and if you 
elect to plant a substitute crop for harvest after the intended crop 
was prevented from being planted. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available 
hereunder, if you elected the Catastrophic Risk Protection 
Endorsement or you elected to exclude prevented planting coverage 
when a substitute crop is planted (see subparagraph 12(d)(1)(iii))).
    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) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (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 except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the production guarantee 
for such acreage will be thirty-five percent (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 245 pounds per acre 
(700 pounds multiplied by 0.35). If you elect to plant the insured 
crop after the late planting period, production to count for such 
acreage will be determined in accordance with subsections 11 (c) and 
(d); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be seventeen and five tenths percent (17.5%) of the production 
guarantee for timely planted acres. If you elected the Catastrophic 
Risk Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 700 pounds per acre, your prevented planting production guarantee 
would be 122.5 pounds per acre (700 pounds multiplied by 0.175). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (3) In addition to the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase a cotton crop insurance policy 
for the 1996 crop year, prevented planting coverage will begin on 
the 1996 sales closing date for the cotton crop in the county. If 
the cotton coverage remains in effect for the 1997 crop year (is not 
terminated or cancelled during or after the 1996 crop year, except 
the policy may have been cancelled to transfer the policy to a 
different insurance provider, if there is no lapse in coverage), 
prevented planting coverage for the 1997 crop year began on the 1996 
sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed to another crop, if applicable;
    (B) The number of acres planted to cotton during the previous 
crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to cotton during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any 

[[Page 56265]]
program administered by the United States Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have 
a history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 cotton 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 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 (i.e., 100 acres 
eligible for prevented planting coverage minus 100 acres planted 
equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. The total amount of prevented planting and planted 
acres cannot exceed the maximum number of acres eligible for 
prevented planting coverage. Any acreage you report in excess of the 
number of acres eligible for prevented planting coverage, or that 
exceeds the number of eligible acres physically located in a unit, 
will be deleted from your acreage report.

    14. Section 457.105 is amended by revising paragraph 1(l) of the 
ELS Cotton Crop Provisions to read as follows:


Sec. 457.105  Extra long staple cotton crop insurance provisions.

* * * * *

1. Definitions

* * * * *
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county. 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.
* * * * *
    15. Section 457.105 is amended by revising paragraphs 12(a)(2) and 
12(b) through (h) to read as follows:
* * * * *

12. Prevented Planting

    (a) * * *
    (2) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible 
for prevented planting coverage, and if the acreage is left idle for 
the crop year, or if a cover crop is planted not for harvest. 
Prevented planting compensation hereunder will not be denied because 
the cover crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the 
acreage is eligible for prevented planting coverage, and if you 
elect to plant a substitute crop for harvest after the intended crop 
was prevented from being planted. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available 
hereunder, if you elected the Catastrophic Risk Protection 
Endorsement or you elected to exclude prevented planting coverage 
when a substitute crop is planted (see subsection 12(b)(2))).
    The total of the two calculations will be the production 
guarantee for the unit. Your premium will be based on the result of 
multiplying the per acre production guarantee for timely planted 
acreage by the 100 acres in the unit.
    (b) If you were prevented from planting ELS cotton (see 
subsection 1(l)), you may elect:
    (1) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the final planting date. In either case, the production guarantee 
for such acreage will be thirty-five percent (35%) of the production 
guarantee for timely planted acres. For example, if your production 
guarantee for timely planted acreage is 600 pounds per acre, your 
prevented planting production guarantee would be 210 pounds per acre 
(600 pounds multiplied by 0.35). If you elect to plant the insured 
crop after the final planting date, production to count for such 
acreage will be determined in accordance with subsections 11(c) 
through (f); or
    (2) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be seventeen and five tenths percent (17.5%) of the production 
guarantee for timely planted acres. If you elected the Catastrophic 
Risk Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 700 pounds per acre, your prevented planting production guarantee 
would be 122.5 pounds per acre (700 pounds multiplied by 0.175). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (c) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (d) In addition to the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
insurance period for prevented planting coverage begins:
    (1) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (2) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase an ELS cotton crop insurance 
policy for the 1996 crop year, prevented planting coverage will 
begin on the 1996 sales closing date for the insured crop in the 
county. If the ELS cotton coverage remains in effect for the 1997 
crop year (is not terminated or cancelled during or after the 1996 
crop year, except the policy may have been cancelled to transfer the 
policy to a different insurance provider, if there is no lapse in 
coverage), prevented planting coverage for the 1997 crop year began 
on the 1996 sales closing date.
    (e) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
    (f) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (1) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (2) If you do not participate in any program administered by the 
United States 

[[Page 56266]]
Department of Agriculture that limits the number of acres that may be 
planted, and unless we agree in writing before the sales closing 
date, eligible acreage will not exceed the greater of:
    (i) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (ii) The number of acres planted to ELS cotton during the 
previous crop year; or
    (iii) One hundred percent (100%) of the simple average of the 
number of acres planted to ELS cotton during the crop years that you 
certified to determine your yield.
    (3) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (4) Prevented planting coverage will not be provided for any 
acreage:
    (i) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (ii) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (iii) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (iv) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year;
    (v) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year;
    (vi) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year. If you have a 
Catastrophic Risk Endorsement and receive a prevented planting 
indemnity, guarantee, or amount of insurance for a crop and are 
prevented from planting another crop on the same acreage, you may 
only receive the prevented planting indemnity, guarantee, or amount 
of insurance for the crop on which the prevented planting indemnity, 
guarantee, or amount of insurance is received;
    (vii) For which planting history or conservation plans indicate 
that the acreage would have remained fallow for crop rotation 
purposes.
    (5) 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 ELS cotton acres timely planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage 
is located in a single CFSA Farm Serial Number which you insure as 
two separate optional units consisting of 50 acres each. If you 
planted 60 acres of ELS cotton on one optional unit and 40 acres of 
ELS cotton on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero. (i.e., 100 acres eligible 
for prevented planting coverage minus 100 acres planted equals 
zero).
    (g) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. The total amount of prevented planting and planted 
acres cannot exceed the maximum number of acres eligible for 
prevented planting coverage. Any acreage you report in excess of the 
number of acres eligible for prevented planting coverage, or that 
exceeds the number of eligible acres physically located in a unit, 
will be deleted from your acreage report.
    (h) Late planting provisions are not available under these crop 
provisions.

    16. Section 457.108 is amended by revising paragraph 1(l) of the 
Sunflower Seed Crop Provisions to read as follows:


Sec. 457.108  Sunflower seed crop insurance provisions.

* * * * *

1. Definitions

* * * * *
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *
    17. Section 457.108 is amended by revising paragraphs 13(a)(3), 
13(b), and 13(d) to read as follows:
* * * * *

13. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 
50 acres you were prevented from planting, if the acreage is 
eligible for prevented planting coverage, and if you elect to plant 
a substitute crop for harvest after the intended crop was prevented 
from being planted. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you 
elected the Catastrophic Risk Protection Endorsement or you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see subsection 13(d)(1)(iii))).
    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) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (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 except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, 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 450 pounds per acre 
(900 pounds multiplied by 0.50). If you elect to plant the insured 
crop after the late planting period, production to count for such 
acreage will be determined in accordance with subsections 12(c) 
through (e); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be twenty-five percent (25%) of the production guarantee for 
timely planted acres. If you elected the Catastrophic Risk 
Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 900 pounds per acre, your prevented planting production guarantee 
would be 225 pounds per acre (900 pounds multiplied by 0.25). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (3) 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) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or 

[[Page 56267]]

    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase a sunflower seed crop insurance 
policy for the 1996 crop year, prevented planting coverage will 
begin on the 1996 sales closing date for the insured crop in the 
county. If the sunflower seed coverage remains in effect for the 
1997 crop year (is not terminated or cancelled during or after the 
1996 crop year, except the policy may have been cancelled to 
transfer the policy to a different insurance provider, if there is 
no lapse in coverage), prevented planting coverage for the 1997 crop 
year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to sunflower seed during the 
previous crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to sunflower seed during the crop years that 
you certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have 
a history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 (i.e.,100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), you must report by 
unit any insurable acreage that you were prevented from planting. 
This report must be submitted on or before the acreage reporting 
date. The total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be 
deleted from your acreage report.
    18. Section 457.113 is amended by revising paragraph 1(n) of the 
Coarse Grains Crop Insurance Provisions to read as follows:


Sec. 457.113 Coarse Grains Crop Insurance Provisions.

* * * * *

1. Definitions

* * * * *
    (n) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the 
Special Provisions for the insured crop in the county or 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.
* * * * *
    19. Section 457.113 is amended by revising paragraphs 13(a)(3), 
13(b), and 13(d) to read as follows:
* * * * *

13. Late Planting and Prevented Planting

    (a) * * *
    (3) For prevented planting acreage, multiply the per acre 
production guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 
50 acres you were prevented from planting, if the acreage is 
eligible for prevented planting coverage, and if you elect to plant 
a substitute crop for harvest after the intended crop was prevented 
from being planted. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you 
elected the Catastrophic Risk Protection Endorsement or you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see subsection 13(d)(1)(iii))).
    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) If you were prevented from planting, you must provide 
written notice to us not later than the acreage reporting date.
* * * * *
    (d) Prevented Planting (Including Planting After the Late 
Planting Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 1(n)), you may elect:
    (i) To plant the insured crop during the late planting period. 
The production guarantee for such acreage will be determined in 
accordance with paragraph 13(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop 
not for harvest. You may also elect to plant the insured crop after 
the late planting period. In either case, the production guarantee 
for such acreage will be fifty percent (50%) of the production 
guarantee for timely planted acres. For 

[[Page 56268]]
example, if your production guarantee for timely planted acreage is 30 
bushels per acre, your prevented planting production guarantee would 
be 15 bushels per acre (30 bushels multiplied by 0.50). If you elect 
to plant the insured crop after the late planting period, production 
to count for such acreage will be determined in accordance with 
subsections 12(c) through (g); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case the production guarantee for such acreage 
will be twenty-five percent (25%) of the production guarantee for 
timely planted acres. If you elected the Catastrophic Risk 
Protection Endorsement or excluded this coverage, and plant a 
substitute crop, no prevented planting coverage will be provided. 
For example, if your production guarantee for timely planted acreage 
is 30 bushels per acre, your prevented planting production guarantee 
would be 7.5 bushels per acre (30 bushels multiplied by 0.25). You 
may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you 
must so indicate on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from 
year to year unless you notify us in writing on our form by the 
applicable sales closing date for the crop year for which you wish 
to include this coverage. All acreage of the crop insured under this 
policy will be subject to this exclusion.
    (2) Proof that you had the inputs available to plant and produce 
the intended crop with the expectation of at least producing the 
production guarantee may be required.
    (3) In addition to the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the 
insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special 
Provisions for the insured crop in the county for the crop year the 
application for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: 
If you make application and purchase insurance for corn for the 1996 
crop year, prevented planting coverage will begin on the 1996 sales 
closing date for corn in the county. If the corn coverage remains in 
effect for the 1997 crop year (is not terminated or cancelled during 
or after the 1996 crop year, except the policy may have been 
cancelled to transfer the policy to a different insurance provider, 
if there is no lapse in coverage), prevented planting coverage for 
the 1997 crop year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies 
will not exceed the total eligible acreage on all Consolidated Farm 
Service Agency (CFSA) Farm Serial Numbers in which you have a share, 
adjusted for any reconstitution that may have occurred before the 
sales closing date. Eligible acreage for each CFSA Farm Serial 
Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres 
that may be planted for the crop year, the acreage eligible for 
prevented planting coverage will not exceed the total acreage 
permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by 
the United States Department of Agriculture that limits the number 
of acres that may be planted, and unless we agree in writing before 
the sales closing date, eligible acreage will not exceed the greater 
of:
    (A) The CFSA base acreage for the insured crop, including acres 
that could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop during the 
previous crop year; or
    (C) One hundred percent (100%) of the simple average of the 
number of acres planted to the insured crop during the crop years 
that you certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent 
(20%) of the acreage in the unit, whichever is less (Acreage that is 
less than 20 acres or 20 percent of the acreage in the unit will be 
presumed to have been intended to be planted to the insured crop 
planted in the unit, unless you can show that you had the inputs 
available before the final planting date to plant and produce 
another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium 
rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture;
    (D) On which another crop is prevented from planting, if any 
crop has already received a prevented planting indemnity, guarantee 
or amount of insurance on the same acreage in the same crop year, 
unless you provide adequate records of acreage and production 
showing that the acreage has a history of double-cropping in each of 
the last four years;
    (E) On which another crop is prevented from planting, if any 
crop was planted and failed, or was planted and harvested (including 
hayed or grazed) on the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that 
the acreage has a history of double-cropping in each of the last 
four years;
    (F) When coverage is provided under the Catastrophic Risk 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have 
a history of double cropping. If you have a Catastrophic Risk 
Endorsement and receive a prevented planting indemnity, guarantee, 
or amount of insurance for a crop and are prevented from planting 
another crop on the same acreage, you may only receive the prevented 
planting indemnity, guarantee, or amount of insurance for the crop 
on which the prevented planting indemnity, guarantee, or amount of 
insurance is received;
    (G) For which planting history or conservation plans indicate 
that the acreage would have remained 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 acres of the insured crop 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 the insured 
crop on one optional unit and 40 acres of the insured crop on the 
second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e.,100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. The total amount of prevented planting and planted 
acres cannot exceed the maximum number of acres eligible for 
prevented planting coverage. Any acreage you report in excess of the 
number of acres eligible for prevented planting coverage, or that 
exceeds the number of eligible acres physically located in a unit, 
will be deleted from your acreage report.

    Done in Washington, D.C., November 3, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-27711 Filed 11-3-95; 4:27 pm]
BILLING CODE 3410-FA-P