[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Proposed Rules]
[Pages 48416-48420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23497]


 ========================================================================
 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. 61, No. 179 / Friday, September 13, 1996 / 
Proposed Rules  

[[Page 48416]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Forage Production Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes 
specific crop provisions for the insurance of forage production. The 
provisions will be used in conjunction with the Common Crop Insurance 
Policy Basic Provisions, which contain standard terms and conditions 
common to most crops. The intended effect of this action is to provide 
policy changes to better meet the needs of producers, add an optional 
Forage Production Winter Coverage Endorsement, and combine the current 
Forage Production Crop Insurance Regulations with the Common Crop 
Insurance Policy for ease of use and consistency of terms.

DATES: Written comments, data, and opinions on this proposed rule will 
be accepted until close of business November 12, 1996 and will be 
considered when the rule is to be made final. The comment period for 
information collections under the Paperwork Reduction Act of 1995 
continues through November 12, 1996.

ADDRESSES: Interested persons are invited to submit written comments to 
the Chief, Product Development Branch, Federal Crop Insurance 
Corporation, United States Department of Agriculture, 9435 Holmes Road, 
Kansas City, MO 64131. Written comments will be available for public 
inspection and copying in room 0324, South Building, USDA, 14th and 
Independence Avenue, S.W., Washington, D.C., 8:15 a.m.-4:45 p.m., 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Program Analyst, 
Research and Development Division, Product Development Branch, FCIC, at 
the Kansas City, MO, address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866 and Departmental Regulation 1512-1

    This action has been reviewed under United States Department of 
Agriculture (USDA) procedures established by Executive Order No. 12866 
and Departmental Regulation 1512-1. This action constitutes a review as 
to the need, currency, clarity, and effectiveness of these regulations 
under those procedures. The sunset review date established for these 
regulations is October 5, 2001.
    This rule has been determined to be not significant for the 
purposes of Executive Order No. 12866 and therefore has not been 
reviewed by the Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

    The information collection requirements contained in these 
regulations were previously approved by OMB pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number 
0563-0003 through September 30, 1998.
    The amendments sent forth in this proposed rule do not contain 
additional information collections that require clearance by OMB under 
the provisions of 44 U.S.C. chapter 35.
    The title of this information collection is ``Catastrophic Risk 
Protection Plan and Related Requirements including, Common Crop 
Insurance Regulations; Forage Production Crop Insurance Provisions; and 
Forage Production Winter Coverage Endorsement.'' The information to be 
collected includes: a crop insurance application and acreage report. 
Information collected from the acreage report and application is 
electronically submitted to FCIC by the reinsured companies. Potential 
respondents to this information collection are producers of forage 
production that are eligible for Federal crop insurance.
    The information requested is necessary for the reinsured companies 
and FCIC to provide insurance and reinsurance, determine eligibility, 
determine the correct parties to the agreement or contract, determine 
and collect premiums or other monetary amounts, 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 1,755,015 
respondents. The total annual burden on the public for this information 
collection is 2,669,970 hours.
    The comment period for information collections under the Paperwork 
Reduction Act of 1995 continues for the following: (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 
gathering technology.
    Comments regarding paperwork reduction should be submitted to the 
Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503 and to 
Bonnie Hart, Advisory and Corporate Operations Staff, Regulatory Review 
Group, Farm Service Agency, PO Box 2415, STOP 0572, U.S. Department of 
Agriculture, Washington, DC 20013-2415. Telephone (202) 690-2857. 
Copies of the information collection may be obtained from Bonnie Hart 
at the above address.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, FCIC 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures of State, local, or tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
1 year. When such a

[[Page 48417]]

statement is needed for a rule, section 205 of the UMRA generally 
requires FCIC to identify and consider a reasonable number of 
regulatory alternatives and adopt the least costly, more cost-effective 
or least burdensome alternative that achieves the objectives of the 
rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus, this rule is not subject to 
the requirements of sections 202 and 205 of the UMRA.

Executive Order No. 12612

    It has been determined under section 6(a) of Executive Order No. 
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.

Regulatory Flexibility Act

    This regulation will not have a significant impact on a substantial 
number of small entities. Under the current regulations, a producer is 
required to complete an application and acreage report. If the crop is 
damaged or destroyed, the insured is required to give notice of loss 
and provide the necessary information to complete a claim for 
indemnity. The insured may use actual records of production or receive 
a transitional yield which does not require the maintenance of 
production records. If the insured elects to use actual records of 
acreage and production as the basis for the production guarantee, the 
insured must report this information on a yearly basis. This regulation 
does not alter those requirements. Therefore, the amount of work 
required of the insurance companies and Farm Service Agency (FSA) 
offices delivering and servicing these policies will not increase 
significantly from the amount of work currently required. This rule 
does not have any greater or lesser impact on the producer. Therefore, 
this action is determined to be exempt from the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 605), and no Regulatory 
Flexibility Analysis was prepared.

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order No. 12372

    This program is not subject to the provisions of Executive Order 
No. 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.

Executive Order No. 12778

    The Office of the General Counsel has determined that these 
regulations meet the applicable standards provided in sections 2(a) and 
2(b)(2) of Executive Order No. 12778. The provisions of this rule will 
not have a retroactive effect prior to the effective date. 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 in 7 CFR parts 11 and 780 must be exhausted before 
any action for judicial review may be brought.

Environmental Evaluation

    This action is not expected to have a significant impact on the 
quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

National Performance Review

    This regulatory action is being taken as part of the National 
Performance Review Initiative to eliminate unnecessary or duplicative 
regulations and improve those that remain in force.

Background

    FCIC proposes to add to the Common Crop Insurance Regulations (7 
CFR part 457), two new sections: 7 CFR 457.117, Forage Production Crop 
Insurance Provisions; and 457.127, Forage Production Winter Coverage 
Endorsement. The new provisions will be effective for the 1998 and 
succeeding crop years. These provisions will replace the current 
provisions for insuring forage production found at 7 CFR part 415. Upon 
publication of the Forage Production Crop Provisions and the Forage 
Production Winter Coverage Endorsement as a final rule, the current 
provisions for insuring forage production will be removed from 7 CFR 
part 415 and that part will be reserved.
    This rule makes minor editorial and format changes to improve the 
Forage Production Crop Insurance Regulations' compatibility with the 
Common Crop Insurance Policy. In addition, FCIC is proposing 
substantive changes in the provisions for insuring forage production as 
follows:
    1. Section 1--Add definitions for the terms ``air-dry forage,'' 
``days,'' ``good farming practices,'' ``irrigated practice,'' 
``production guarantee (per acre),'' ``ton,'' ``written agreement,'' 
and ``year of establishment'' for clarification purposes. Add a 
definition for the term ``adequate stand'' to specify that the minimum 
number of plants required for insurance to attach will be contained in 
the Special Provisions. The definition also allows for regional 
differences in plant populations. Add a definition for the term ``fall-
planted'' to specify that a forage crop planted after June 30 will be 
considered fall-planted. Add a definition for the term ``spring-
planted'' to specify that forage planted before July 1 year will be 
considered spring-planted. Revise the definition for the term 
``forage'' to recognize the various types or mixtures of forage grown 
throughout the United States. Revise the definition for the term 
``harvest'' to specify that grazing will not be considered harvested 
because insurance coverage is not provided for forage that is grown for 
the purpose of grazing.
    2. Section 2--Clarify that optional units are not available for 
forage production.
    3. Section 3(a)--Clarify that an insured may select only one price 
election for all the forage production in the county insured under the 
policy, unless the Special Provisions provide different price elections 
by type, in which case the insured may select one price election for 
each forage type designated in the Special Provisions.
    4. Section 3(b)--Clarify that an insured must report, by the 
production reporting date, the total production harvested from 
insurable acreage for all cuttings for each unit.
    5. Section 4--Change the contract change date from August 15 to 
June 30. This change eliminates the distribution of actuarial materials 
separately for this crop, thereby simplifying the crop insurance 
program and reducing administrative overhead costs.
    6. Section 5--Change the cancellation and terminations dates from 
November 30 to September 30. The sales closing date for the 1998 crop 
year is also changed to September 30. This change will allow the 
insurer the opportunity to inspect any forage acreage under more 
favorable weather conditions to determine that an adequate stand exists 
prior to accepting an application.
    7. Section 6--Specify that an insured must submit separate acreage 
reports for acreage insured under the Forage Production Winter Coverage 
Endorsement and for all other forage acreage on or before the acreage 
reporting dates contained in the Special Provisions. Separate fall and 
spring acreage reports are necessary because

[[Page 48418]]

insurance attaches in the fall for forage acreage insured under the 
Forage Production Winter Coverage Endorsement and in the spring for all 
other forage acreage.
    8. Section 7(b)--Clarify that forage must have an adequate stand 
before insurance will attach. Eliminate the provision that allows 
overage stands of forage to be insured by written agreement. This 
change eliminates coverage on overage forage acreage that has 
significantly lower production yields.
    9. Section 8--Provide different calendar dates for the beginning of 
the insurance period for acreage covered under the Forage Production 
Winter Coverage Endorsement. This change is necessary due to the 
addition of the new Forage Production Winter Coverage Endorsement.
    10. Section 12--Add provisions for providing insurance coverage by 
written agreement. FCIC has a long standing policy of permitting 
certain modifications of the insurance contract by written agreement 
for some policies. This amendment allows FCIC to tailor the policy to a 
specific insured in certain instances. The new section will cover 
application for and duration of written agreements.
    11. Section 457.127--Add a new Forage Production Winter Coverage 
Endorsement. This endorsement will provide optional winter coverage in 
any county for which the actuarial table designates forage production 
premium rates when the insured elects the endorsement by the sales 
closing date. Current regulations allow winter coverage as a part of 
the basic policy, which affects the premium rates for all persons who 
insure forage production. Allowing winter protection only when the 
insured elects the Forage Production Winter Coverage Endorsement will 
result in separate premium rates for insureds who elect winter 
coverage.

List of Subjects in 7 CFR Part 457

    Crop insurance, Forage production.

    Pursuant to the authority contained in the Federal Crop Insurance 
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance 
Corporation hereby proposes to amend the Common Crop Insurance 
Regulations, (7 CFR part 457), effective for the 1998 and succeeding 
crop years, to read as follows:

PART 457--[AMENDED]

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

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    2. 7 CFR part 457 is amended by adding new Secs. 457.117 and 
457.127 to read as follows:


Sec. 457.117  Forage Production Crop Insurance Provisions.

    The Forage Production Crop Insurance Provisions for the 1998 and 
succeeding crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Crop Provisions

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

1. Definitions

    Adequate stand--A population of live forage plants that equals 
or exceeds the minimum required number of plants per square foot as 
shown in the Special Provisions.
    Air-dry forage--Forage that has dried in windrows by natural 
means to less than eighteen percent (18%) moisture before being put 
into stacks or bales.
    Crop year--The period from the date insurance attaches until 
harvest is normally completed, which is designated by the calendar 
year in which the majority of the forage is normally harvested.
    Cutting--Severance of the forage plant from the land for the 
purpose of livestock feed.
    Days--Calendar days.
    Fall planted--A forage crop planted after June 30.
    Forage --Planted perennial alfalfa, perennial red clover, 
perennial grasses, or a mixture thereof, as shown in the actuarial 
table.
    Good farming practices--The cultural practices generally in use 
in the county for the crop to make normal progress toward maturity 
and produce at least the yield used to determine the production 
guarantee, and generally recognized by the Cooperative Extension 
Service as compatible with agronomic and weather conditions in the 
county.
    Harvest--Removal of forage from the windrow or field. Grazing 
will not be considered harvested.
    Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to 
establish the irrigated production guarantee on the irrigated 
acreage planted to the insured crop.
    Production guarantee (per acre)--The number of tons determined 
by multiplying the approved yield per acre times the coverage level 
percentage you elect.
    Spring planted--A forage crop planted before July 1.
    Ton--Two thousand (2,000) pounds avoirdupois.
    Written agreement--A written document that alters designated 
terms of a policy in accordance with section 12.
    Year of establishment--The period between seeding and when the 
forage crop has developed an adequate stand. Insurance during the 
year of establishment may be available under the forage seeding 
policy. Insurance under this policy does not attach until after the 
year of establishment. The year of establishment is determined by 
the date of seeding. A forage crop planted before July 1 is 
considered as spring planted and the year of establishment is 
designated by the calendar year in which seeding occurred. A forage 
crop planted after June 30 is considered as fall planted and the 
year of establishment is designated by the calendar year after the 
year in which the crop was planted.

2. Unit Division

    Optional units are not available for forage production. See the 
definition of unit contained in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8).
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities In addition to the requirements of section 3 
(Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities) of the Basic Provisions (Sec. 457.8):
    (a) You may only select one price election for all the forage in 
the county insured under this policy unless the Special Provisions 
provide different price elections by type. If the Special Provisions 
provide different price elections by type, you may select one price 
election for each forage type. The price elections you choose for 
each type must have the same percentage relationship to the maximum 
price offered by us for each type. For example, if you choose 100 
percent (100%) of the maximum price election for a specific type, 
you must also choose 100 percent (100%) of the maximum price 
election for all other types.
    (b) You must report the total production harvested from 
insurable acreage for all cuttings for each unit by the production 
reporting date.
    (c) Separate guarantees will be determined by forage type, as 
applicable.

4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is June 30 
preceding the cancellation date.

5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation 
and termination dates are September 30.

6. Report of Acreage

    In addition to section 6 of the Basic Provisions (Sec. 457.8), 
you must submit separate acreage reports for acreage insured under 
the Forage Production Winter Coverage Endorsement and for all other 
insurable forage acreage.

7. Insured Crop

    (a) In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the forage in 
the

[[Page 48419]]

county for which a premium rate is provided by the actuarial table:
    (1) In which you have a share;
    (2) That is planted for harvest as livestock feed; and
    (3) That is grown after the year of establishment.
    (b) In addition to the crop listed as not insured in section 8 
(Insured Crop) of the Basic Provisions (Sec. 457.8), we will not 
insure any forage that:
    (1) Does not have an adequate stand at the beginning of the 
insurance period;
    (2) Is grown with a non-forage crop; or
    (3) Exceeds the age limitations for forage stands contained in 
the Special Provisions.

8. Insurance Period

    In lieu of the provisions of section 11 (Insurance Period) of 
the Basic Provisions (Sec. 457.8):
    (a) Insurance attaches on acreage with an adequate stand on the 
later of the date we accept your application or the applicable 
calendar dates listed below:
    (1) For the first and subsequent calendar years following the 
year of establishment, except as otherwise provided in subsection 
(a)(2) for:
    (i) California--February 1;
    (ii) Colorado, Idaho, Nebraska, Nevada, Oregon, Utah, and 
Washington--April 15;
    (iii) Iowa, Minnesota, Montana, New Hampshire, New York, North 
Dakota, Pennsylvania, Wisconsin, Wyoming, and all other states--May 
22;
    (2) The calendar date specified in the Forage Production Winter 
Coverage Endorsement for acreage insured under such endorsement.
    (b) Insurance ends at the earliest of:
    (1) Total destruction of the forage crop;
    (2) Removal from the windrow or the field for each cutting;
    (3) Final adjustment of a loss;
    (4) The date grazing commences on the forage crop;
    (5) Abandonment of the forage crop; or
    (6) The following dates of the crop year:
    (i) All states except California--October 15;
    (ii) California--December 31.
    (c) In order to obtain year round coverage for a calendar year, 
you must purchase the Forage Production Winter Coverage Endorsement 
(Sec. 457.127).

9. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of 
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided 
only against the following causes of loss that occur during the 
insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (4) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply, if caused by an 
insured peril that occurs during the insurance period.
    (b) In addition to the causes of loss not covered in section 12 
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not 
insure against damage that occurs after removal from the windrow.

10. Duties in the Event of Damage or Loss

    In addition to your duties contained in section 14 (Duties in 
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), 
if you discover any insured forage is damaged, or if you intend to 
claim an indemnity on any unit, you must give notice:
    (a) Of probable loss at least 15 days before the beginning of 
any cutting or immediately if probable loss is discovered after 
cutting has begun; and
    (b) At least 5 days before grazing of insured forage begins. 
Such notice must include the number of acres harvested and tons 
produced from each unit.

11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide production records for any unit, we will 
allocate any commingled production to such units in proportion to 
our liability on the harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the acreage for each type, as provided in the 
Special Provisions, times its respective production guarantee;
    (2) Multiplying each product of paragraph (1) times the 
respective price election;
    (3) Totaling the results of each crop type from paragraph (2);
    (4) Multiplying the total production to be counted of each type, 
if applicable, (see section 11(c)) times its respective price 
election;
    (5) Totaling the results of each crop type from paragraph (4);
    (6) Subtracting the result of paragraph (5) from the total in 
paragraph (3); and
    (7) Multiplying the result in paragraph (6) by your share.
    (c) The total production to count (in tons) from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee per acre for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide production records that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production;
    (iv) Potential production on insured acreage that you intend to 
put to another use or abandon, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for 
that acreage will end when you put the acreage to another use or 
abandon the crop. If agreement on the appraised amount of production 
is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative 
samples of the crop in locations acceptable to us, (The amount of 
production to count for such acreage will be based on the harvested 
production or appraisals from the samples at the time harvest should 
have occurred. If you do not leave the required samples intact, or 
fail to provide sufficient care for the samples, our appraisal made 
prior to giving you consent to put the acreage to another use will 
be used to determine the amount of production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested 
production, or our reappraisal if additional damage occurs and the 
crop is not harvested; and
    (2) All harvested production from the insurable acreage.
    (d) When forage is harvested as other than air-dry forage, the 
production to count will be adjusted to the equivalent of air-dry 
forage.
    (e) Any harvested production from plants growing in the forage 
will be counted as forage on a weight basis.
    (f) In addition to the provisions of section 15 (Production 
Included in Determining Indemnities) of the Basic Provisions 
(Sec. 457.8), we may determine the amount of production of any 
unharvested forage on the basis of our field appraisals conducted 
after the normal time for each cutting for the area.

12. Written Agreements

    Designated terms of this policy may be altered by written 
agreement in accordance with the following:
    (a) You must apply in writing for each written agreement no 
later than the sales closing date, except as provided in section 
12(e);
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in 
effect if the written agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If 
the written agreement is not specifically renewed the following 
year, insurance coverage for subsequent crop years will be in 
accordance with the printed policy); and
    (e) An application for a written agreement submitted after the 
sales closing date may be approved if, after a physical inspection 
of the acreage, it is determined that no loss has occurred and the 
crop is insurable in accordance with the policy and written 
agreement provisions.


Sec. 457.127  Forage Production Winter Coverage Endorsement.

    The provisions of the Forage Production Winter Coverage Endorsement 
for the 1998 and succeeding crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Winter Coverage Endorsement

    In return for payment of the additional premium designated in 
the actuarial table,

[[Page 48420]]

the Common Crop Insurance Policy Basic Provisions (Sec. 457.8) and 
the Forage Production Crop Insurance Provisions (Sec. 457.117) are 
amended to incorporate the following terms and conditions:
    (a) For this Endorsement to be effective, you must have the 
Common Crop Insurance Policy Basic Provisions (Sec. 457.8) and the 
Forage Production Crop Insurance Provisions (Sec. 457.117) in force 
and you must comply with all terms and conditions contained therein.
    (b) This Endorsement is not available for forage crops insured 
under a Catastrophic Risk Protection Endorsement.
    (c) You must elect this Endorsement on your application or on a 
form approved by us, for coverage under this Endorsement, on or 
before the sales closing date specified in the Special Provisions 
for the crop year in which you wish to insure your forage under this 
Endorsement.
    (d) This Endorsement is available for the following acreage in 
all counties for which the actuarial table designates forage 
production premium rates:
    (1) Fall planted acreage, for the first and subsequent crop 
years following the year of establishment; and
    (2) Spring planted acreage, for the second and subsequent crop 
years following the year of establishment.
    (e) Under this Endorsement, the insurance period will be as 
follows:
    (1) Insurance will attach on acreage with an adequate stand on 
the later of the date we accept your application or the applicable 
calendar dates following the end of the insurance period for the 
previous crop year as listed below:
    (i) For all states except California--October 16;
    (ii) For California--January 1.
    (2) Insurance will end on the earliest of:
    (i) Total destruction of the forage crop;
    (ii) Removal from the windrow or the field for each cutting;
    (iii) Final adjustment of the loss;
    (iv) Abandonment of the forage crop;
    (v) The date grazing commences on the forage crop; or
    (vi) The following dates of the crop year:
    (A) All states except California--October 15;
    (B) California--December 31.
    (f) This is a continuous Endorsement and it will remain in 
effect for as long as your forage production policy remains in 
effect or you cancel this coverage in accordance with paragraph (g).
    (g) This Endorsement may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding the crop year for which the cancellation 
of this Endorsement is to be effective.

    Signed in Washington, DC, on September 5, 1996.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 96-23497 Filed 9-12-96; 8:45 am]
BILLING CODE 3410-FA-P