[Federal Register Volume 62, Number 10 (Wednesday, January 15, 1997)]
[Proposed Rules]
[Pages 2055-2059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1014]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 414 and 457


Forage Seeding Crop Insurance Regulations and Common Crop 
Insurance Regulations; Forage Seeding 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 seeding. 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 the insured, to include the 
current forage seeding crop insurance regulations with the Common Crop 
Insurance Policy for ease of use and consistency of terms, and to 
restrict the effect of the current forage seeding crop insurance 
regulations to the 1997 and prior crop years.

DATES: Written comments, data, and opinions on this proposed rule will 
be accepted until close of business February 14, 1997 and will be 
considered when the rule is to be made final.

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, United States 
Department of Agriculture, 14th and Independence Avenue, SW., 
Washington, DC, 8:15 a.m. to 4:45 p.m., est, Monday through Friday, 
except holidays.

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

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

    The Office of Management and Budget (OMB) has determined this rule 
to be exempt for the purposes of Executive Order No. 12866, and, 
therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    The amendments set forth in this information collections that 
require clearance by OMB is ``Catastrophic Risk Protection Plan and 
Related Requirements including, Common Crop Insurance Regulations; 
Forage Seeding Crop Insurance Provisions.'' The information to be 
collected includes: A crop insurance application and acreage report. 
Information collected from the application and acreage report is 
electronically submitted to FCIC by the reinsured companies. Potential 
respondents to this information collection are producers of forage 
seeding 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

[[Page 2056]]

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.
    FCIC is requesting comments on 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, D.C. 20503.
    The Office of Management and Budget (OMB) is required to make a 
decision concerning the collections of information contained in these 
proposed regulations between 30 and 60 days after submission to OMB. 
Therefore, a comment to OMB is best assured of having full effect if 
OMB receives it within 30 days of publication. This does not affect the 
deadline for the public to comment on the proposed regulation.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates 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. 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. The effect of this regulation on small 
entities will be no greater than on larger 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. This regulation does not alter those 
requirements. The amount of work required of the insurance companies 
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 published at 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), a new section, 7 CFR 457.151, Forage Seeding Crop 
Insurance Provisions. The new provisions will be effective for the 1998 
and succeeding crop years. These provisions will replace and supersede 
the current provisions for insuring forage seeding found at 7 CFR part 
414 (Forage Seeding Crop Insurance Regulations), for the 1998 and 
succeeding crop years. FCIC also proposes to amend 7 CFR part 414 to 
limit its effect to the 1997 and prior crop years. FCIC will later 
publish a regulation to remove and reserve part 414.
    This rule makes minor editorial and format changes to improve the 
Forage Seeding Crop Insurance Regulations compatibility with the Common 
Crop Insurance Policy. In addition, FCIC is proposing substantive 
changes in the provisions for insuring forage seeding as follows:
    1. The current premium adjustment table contained in the Forage 
Seeding Crop Insurance Policy has been omitted from the proposed Forage 
Seeding Crop Provisions. Information regarding good experience 
discounts is now contained in the Special Provisions. The adverse 
experience premium adjustment has been removed. These changes provide 
consistency with all other crops containing premium experience 
discounts.
    2. Section 1--Add definitions for the terms ``days,'' ``FSA,'' 
``fall planted,'' ``final planting date,'' ``forage,'' ``good farming 
practices,'' ``interplanted,'' ``irrigated practice,'' ``late 
harvest,'' ``normal stand,'' ``nurse crop,'' ``planted acreage,'' 
``practical to replant,'' ``spring planted,'' and ``written agreement'' 
for clarification purposes. Revise the definition for the term 
``harvest'' to specify that acreage that is grazed will not be 
considered harvested because it is impossible to determine the 
production for grazed acreage so insurance coverage is not provided for 
acreage that is grown for the purpose of grazing. The term ``reseed'' 
has been changed to ``replant'' and made consistent with other annual 
crop provisions. Current regulations allow an insured to reseed at not 
less than 50 percent (50%) of the original seeding rate. The revised 
definition specifies

[[Page 2057]]

that replacing new seed into an existing damaged stand, which results 
in a reduced seeding rate from the original seeding rate, will not be 
considered replanting. This change provides consistency with the 
replanting provisions of other annual crop provisions.
    3. Section 2--Provides guidelines for optional unit division of 
forage seeding basic units that are consistent with other annual crop 
provisions.
    4. Section 3(a)--Clarify that an insured may select only one 
coverage level and the corresponding amount of insurance designated in 
the actuarial table for the applicable type and practice for all the 
forage seeding planted in the county that is insured under the policy. 
The amounts of insurance the insured chooses for each type and practice 
must have the same percentage relationship to the maximum amount of 
insurance offered by FCIC for each type and practice.
    5. Section 4--The contract change date has been changed to November 
30 for all counties that currently have April 15 cancellation and 
termination dates. This change is made to maintain an adequate time 
period between this date and the revised cancellation dates to permit 
the insured to make informed insurance decisions.
    6. Section 5--The cancellation and termination dates have been 
changed to March 15 in states and counties that currently have April 15 
dates. These changes are made to standardize the cancellation and 
termination dates with the sales closing dates. The sales closing dates 
were amended to comply with the requirement of the Federal Crop 
Insurance Reform Act of 1994 that spring seeded crop sales closing 
dates be 30 days earlier than previously. Also added Nevada to the 
forage seeding crop provisions for both spring and fall planted forage.
    7. Section 6(c)--Clarify that any forage seeding crop that is grown 
with the intent to be grazed, or grazed at any time during the 
insurance period, will not be insured.
    8. Section 6(d)--Add provisions to allow coverage for forage 
seeding that is interplanted with another crop if allowed by the 
Special Provisions or by written agreement. The provisions provide 
coverage for more acreage and may reduce the need for protection under 
the non-insured disaster assistance program.
    9. Section 7--Clarify that any acreage damaged prior to the final 
planting date, to the extent that such acreage has less than a normal 
stand, must be replanted unless the insurer agrees that it is not 
practical to replant.
    10. Section 8--State that harvest is one event that ends the 
insurance period, unless the Special Provisions contain a late harvest 
date, or if harvest occurs after the late harvest date, shown in the 
Special Provisions. Also the date grazing commences and abandonment of 
the insured crop were added as events that end the insurance period.
    11. Section 9(h)--Add failure of the irrigation water supply as an 
insurable cause of loss, if such failure was caused by an insured peril 
that occurs during the insurance period. This change standardizes these 
crop provisions with other crop provisions.
    12. Section 12--Modify claim for indemnity calculations to 
recognize separate amounts of insurance for each type and practice 
within the same unit.
    13. Section 13--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.

List of Subjects in 7 CFR Parts 414 and 457

    Crop insurance, Forage seeding regulations, Forage seeding.

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 414 and 
457, effective for the 1998 and succeeding crop years, as follows:

PART 414--FORAGE SEEDING CROP INSURANCE REGULATIONS--REGULATIONS 
FOR THE 1981 AND SUBSEQUENT CONTRACT YEARS

    1. The authority citation for 7 CFR part 414 is revised to read as 
follows:

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

    2. The subpart heading preceeding Sec. 414.1 is revised to read as 
follows:

Subpart--Regulations for the 1981 through 1997 Crop Year

    3. Section 414.7 is amended by revising the introductory text of 
paragraph (d) to read as follows:


Sec. 414.7  The application and policy.

* * * * *
    (d) The application for the 1984 and succeeding crop years is found 
at subpart D of part 400, General Administrative Regulations (7 CFR 
400.37, 400.38). The provisions of the Forage Seeding Insurance Policy 
for the 1984 through 1997 crop years are as follows:
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1994 AND SUBSEQUENT CONTRACT YEARS

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

    Authority: 7 U.S.C. 1501(l) and 1506(p).

    5. 7 CFR part 457 is amended by adding a new Sec. 457.151 to read 
as follows:


Sec. 457.151  Forage seeding crop insurance provisions.

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

FCIC policies:
    DEPARTMENT OF AGRICULTURE
    FEDERAL CROP INSURANCE CORPORATION
Reinsured policies:
    (Appropriate title for insurance provider)
Both FCIC and reinsured policies:

Forage Seeding 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

    Crop year--The period within which the planting is or normally 
would become established and shall be designated by the calendar 
year in which the planting is made for spring planted acreage and 
the next succeeding calendar year for fall planted acreage.
    Days--Calendar days.
    FSA--The Farm Service Agency, an agency of the United States 
Department of Agriculture, or any successor agency.
    Fall planted--A forage crop seeded after June 30.
    Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full amount of insurance.
    Forage--Seeded 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 a normal stand, and recognized by the Cooperative State 
Research, Education, and Extension Service as compatible with 
agronomic and weather conditions in the county.
    Harvest--Severance of the forage plant from the land with the 
intention of using it as livestock feed. Grazing will not be 
considered harvested.
    Interplanted--Acreage on which two or more crops are planted in 
a manner that does

[[Page 2058]]

not permit separate agronomic maintenance or harvest of the insured 
crop.
    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 amount of insurance on the irrigated acreage 
planted to the insured crop.
    Late harvest--Harvest that occurs after the date listed in the 
Special Provisions.
    Normal stand--A population of live plants per square foot that 
meets the minimum required number of plants as shown in the Special 
Provisions.
    Nurse crop (companion crop)--A crop seeded into the same acreage 
as another crop, that is intended to be harvested separately, and 
that is planted to improve growing conditions for the crop with 
which it is grown.
    Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed that has been properly prepared for the 
planting method and production practice. Land on which seed is 
initially spread onto the soil surface by any method and 
subsequently is mechanically incorporated into the soil in a timely 
manner and at the proper depth. Acreage seeded in any other manner 
will not be insurable unless otherwise provided by the Special 
Provisions or by written agreement.
    Practical to replant--In lieu of the definition of ``Practical 
to replant'' contained in section 1 of the Basic Provisions 
(Sec. 457.8), practical to replant is defined as our determination, 
after loss or damage to the insured crop, based on factors, 
including but not limited to moisture availability, marketing 
window, condition of the field, and time to crop maturity, that 
replanting the insured crop will allow the crop to attain maturity 
prior to the calendar date for the end of the insurance period. It 
will not be considered practical to replant after the final planting 
date, unless replanting is generally occurring in the area.
    Replanting--Performing the cultural practices necessary to 
replace the forage seed and then replacing the forage seed in the 
insured acreage with the expectation of producing a normal stand. 
Replacing new seed into an existing damaged stand, which results in 
a reduced seeding rate from the original seeding rate, will not be 
considered replanting.
    Spring planted--A forage crop seeded before July 1.
    Written agreement--A written document that alters designated 
terms of this policy in accordance with section 13.

2. Unit Division

    (a) A unit as defined in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8), a (basic unit), will be divided for spring 
and fall planted acreage.
    (b) Unless limited by the Special Provisions, these basic units 
may be further divided into optional units if, for each optional 
unit you meet all the conditions of this section or a written 
agreement to such division exists.
    (c) Basic units may not be divided into optional units on any 
basis including, but not limited to, production practice, type, 
variety, and planting period, other than as described in this 
section.
    (d) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have 
failed to comply with these provisions. If failure to comply with 
these provisions is determined to be inadvertent, and the optional 
units are combined into a basic unit, that portion of the premium 
paid for the purpose of electing optional units will be refunded to 
you for the units combined.
    (e) All optional units established for a crop year must be 
identified on the acreage report for that crop year.
    (f) The following requirements must be met for each optional 
unit:
    (1) You must plant the crop in a manner that results in a clear 
and discernable break in the planting pattern at the boundaries of 
each optional unit; and
    (2) Each optional unit must meet one or more of the following 
criteria as applicable:
    (i) Optional Units by Section, Section Equivalent, or FSA Farm 
Serial Number: Optional units may be established if each optional 
unit is located in a separate legally identified section. In the 
absence of sections, we may consider parcels of land legally 
identified by other methods of measure including, but not limited to 
Spanish grants, railroad surveys, leagues, labors, or Virginia 
Military Lands, as the equivalent of sections for unit purposes. In 
areas that have not been surveyed using the systems identified 
above, or another system approved by us, or in areas where such 
systems exist but boundaries are not readily discernable, each 
optional unit must be located in a separate farm identified by a 
single FSA Farm Serial Number.
    (ii) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to, or instead of, establishing 
optional units by section, section equivalent, or FSA Farm Serial 
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same section, section 
equivalent, or FSA Farm Serial Number. To qualify as separate 
irrigated and non-irrigated optional units, the non-irrigated 
acreage may not continue into the irrigated acreage in the same rows 
or planting pattern. The irrigated acreage may not extend beyond the 
point at which the irrigated system can deliver the quantity of 
water needed to produce a normal stand.

3. Amounts of Insurance

    (a) In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Basic Provisions (Sec. 457.8), you may only select one 
coverage level and the corresponding amount of insurance designated 
in the actuarial table for the applicable type and practice for all 
the forage seeding in the county that is insured under this policy. 
The amount of insurance you choose for each type and practice must 
have the same percentage relationship to the maximum amount of 
insurance offered by us for each type and practice. For example, if 
you choose 100 percent (100%) of the maximum amount of insurance for 
a specific type and practice, you must also choose 100 percent 
(100%) of the maximum amount of insurance for all other types and 
practices.
    (b) The production reporting requirements contained in section 3 
(Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities) of the Basic Provisions (Sec. 457.8), do not apply to 
forage seeding.

4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is November 30 
preceding the cancellation date for counties with a March 15 
cancellation date and April 30 preceding the cancellation date for 
all other counties.

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:

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                          dates            
------------------------------------------------------------------------
New Hampshire, New York, Pennsylvania,     July 31                      
 Vermont, Nevada.                                                       
All other states.........................  March 15.                    
------------------------------------------------------------------------

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the forage 
seeding in the county for which a premium rate is provided by the 
actuarial table:
    (a) In which you have a share;
    (b) That is planted, or replanted the calendar year following 
planting to establish a stand of forage intended for harvest as 
livestock feed;
    (c) That is not grown with the intent to be grazed, or not 
grazed at any time during the insurance period; and
    (d) That is not interplanted with another crop, except nurse 
crops, unless allowed by the Special Provisions or by written 
agreement.

7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) 
of the Basic Provisions (Sec. 457.8), any acreage of the insured 
crop damaged before the final planting date, to the extent that such 
acreage has less than a normal stand, must be replanted unless we 
agree that it is not practical to replant.

8. Insurance Period

    In lieu of the provisions of section 11 (Insurance Period) of 
the Basic Provisions (Sec. 457.8) regarding when insurance ends, 
forage seeding insurance will end at the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit, unless a late harvest date is listed in 
the Special Provisions, or late harvest on the unit if a late 
harvest date is listed in the Special Provisions;

[[Page 2059]]

    (c) Final adjustment of a loss on a unit;
    (d) Abandonment of the insured crop;
    (e) The date grazing commences on the insured crop; or
    (f) May 21 of the calendar year following seeding for spring-
planted forage; or October 15 of the calendar year following seeding 
for fall-planted forage.

9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only 
against the following causes that result in loss of, or failure to 
establish, a stand of forage that occur during the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if caused by an 
insured peril that occurs during the insurance period.

10. Replanting Payment

    In lieu of the provisions contained in section 13 (Replanting 
Payment) of the Basic Provisions (Sec. 457.8):
    (a) A replanting payment is allowed only in counties for which 
the Special Provisions designate both fall and spring final planting 
dates if:
    (1) The insured fall-planted acreage is damaged by an insurable 
cause of loss to the extent that less than 75 percent (75%) of a 
normal stand remains;
    (2) It is practical to replant;
    (3) We give written consent to replant; and
    (4) Such acreage is replanted the following spring by the spring 
final planting date.
    (b) The amount of the replanting payment will be equal to 50 
percent (50%) of the amount of indemnity determined in accordance 
with section 12(a).
    (c) No replanting payment will be made on acreage for which one 
replanting payment has already been allowed for the crop year.
    (d) If the information reported by you on the acreage report 
results in a lower premium than the actual premium determined to be 
due based on the acreage, share, practice, or type determined 
actually to have existed, the replanting payment will be reduced 
proportionately.

11. Duties In The Event of Damage or Loss

    (a) In accordance with the requirements of section 14 (Duties in 
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), 
the representative samples of the crop must be at least 10 feet wide 
and extend the entire length of each field in the unit. The samples 
must not be harvested or destroyed until the earlier of our 
inspection or 15 days after tilling of the balance of the unit is 
completed.
    (b) In addition to the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), you 
must give us written notice if, during the period before destroying 
the crop on any fall planted acreage that is damaged, you decide to 
replant the acreage by the spring final planting date.

12. Settlement of Claim

    (a) In the event of loss or damage covered by this policy, we 
will settle your claim on any unit by:
    (1) Multiplying the insured acreage of each type and practice by 
the amount of insurance for the applicable type and practice;
    (2) Totaling the results of section 12(a)(1);
    (3) Multiplying the total of the acres with an established stand 
plus 10 percent (10%) of the planted acres for the insured acreage 
of each type and practice in the unit by the amount of insurance for 
the applicable type and practice;
    (4) Totaling the results of section 12(a)(3);
    (5) Subtracting the result of section 12(a)(4) from the result 
of section 12(a)(2); and
    (6) Multiplying the result of section 12(a)(5) by your share.
    (b) The acres with an established stand will include:
    (1) Acreage that has at least 75 percent (75%) of a normal 
stand;
    (2) Acreage abandoned or put to another use without our prior 
written consent;
    (3) Acreage damaged solely by an uninsured cause; or
    (4) Acreage that is harvested and not reseeded.
    (c) The amount of indemnity on any spring-planted acreage 
determined in accordance with section 12(a) will be reduced 50 
percent (50%) if the stand is less than 75 percent (75%) but more 
than 55 percent (55%) of a normal stand.

13. 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 
13(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, practice, premium rate, and amount of insurance;
    (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.
    Signed in Washington, D.C., on January 10, 1997.

Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-1014 Filed 1-14-97; 8:45 am]
BILLING CODE 3410-FA-P