[Federal Register Volume 62, Number 27 (Monday, February 10, 1997)]
[Rules and Regulations]
[Pages 5903-5907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3130]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 / 
Rules and Regulations  

[[Page 5903]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

RIN 0563-AB54


General Crop Insurance Regulations; Cranberry Endorsement and 
Common Crop Insurance Regulations; Cranberry Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes 
specific crop provisions for the insurance of cranberries. 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, include the 
current cranberry endorsement under the Common Crop Insurance Policy 
for ease of use and consistency of terms, and to restrict the effect of 
the current cranberry endorsement to the 1997 and prior crop years.

EFFECTIVE DATE: March 12, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Program Analyst, 
Research and Development Division, Product Development Branch, Federal 
Crop Insurance Corporation, United States Department of Agriculture, 
9435 Holmes Road, Kansas City, MO 64131, 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

    Following publication of the proposed rule, the public was afforded 
60 days to submit written comments, data, and opinions on information 
collection requirements previously approved by OMB under OMB control 
number 0563-0003 through September 30, 1998. No public comments were 
received.

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. New provisions included in this rule will not 
impact small entities to a greater extent than large entities. Under 
the current regulations, a producer is required to complete an 
application and an 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 must also annually certify to the previous years 
production if adequate records are available to support the 
certification. The producer must maintain the production records to 
support the certified information for at least 3 years. 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

    On Friday, September 13, 1996, FCIC published a proposed rule in 
the Federal Register at 61 FR 48420-48423 to add to the Common Crop 
Insurance Regulations (7 CFR part 457), a new

[[Page 5904]]

section, 7 CFR 457.132, Cranberry 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 cranberries found at 7 CFR 401.127 (Cranberry Endorsement). 
This rule also amends the Cranberry Endorsement found at 7 CFR 401.127 
to limit the effect of the current provisions to the 1997 and prior 
crop years. FCIC will later publish a regulation to remove and reserve 
Sec. 401.127.
    Following publication of that proposed rule, the public was 
afforded 60 days to submit written comments, data, and opinions. A 
total of 20 comments were received from the crop insurance industry and 
FCIC Regional Service Offices (RSO). The comments received, and FCIC's 
responses, are as follows:
    Comment: One comment received from an FCIC RSO recommended changing 
the definition of ``Harvest'' in section 1 to read, ``Removal of the 
cranberries from the bog.'' Cranberries can be picked from the vine but 
remain in the bog, and be susceptible to an insured peril which can 
cause cranberry fruit damage or loss.
    Response: To be consistent with other crop policies, FCIC agrees 
with the comment and has amended the definition accordingly.
    Comment: Three comments received from the crop insurance industry 
recommended changing the definition of ``Irrigated practice'' in 
section 1 to delete the references to overhead solid set irrigation 
systems and frost prevention. The commenters stated that overhead solid 
irrigation systems are not applicable to all areas and that frost 
prevention is not a policy requirement.
    Response: FCIC agrees with the comment and has amended the 
definition accordingly.
    Comment: One comment received from the crop insurance industry 
recommended adding the words ``and quality'' after the word 
``quantity'' in the definition of ``Irrigated practice.'
    Response: FCIC agrees that water quality is an important issue. 
However, there are no established criteria regarding the quality of 
water necessary to produce a crop. Such criteria would be difficult to 
develop and administer due to the complexity of the factors included. 
Therefore, no change will be made.
    Comment: One comment received from the crop insurance industry 
recommended changing the definition of ``Non-contiguous land'' in 
section 1 to clarify whether land ownership is a factor in the 
determination.
    Response: Land ownership is not a factor to determine non-
contiguous land. Non-contiguous land is land on which a producer has or 
will have an insurable interest in the crop, and whose boundaries do 
not touch at any point. FCIC believes the provision is clearly stated. 
Therefore, no change will be made.
    Comment: Two comments received from the crop insurance industry 
suggested the provisions contained in section 2(d), which specify that 
``all optional units must be identified on the acreage report for each 
crop year,'' be changed. The commenters stated that as written, the 
language appears to allow optional units to be established at acreage 
reporting time, when in fact, optional units depend on acceptable 
production reports being submitted by the production reporting date, 
which is often earlier than the acreage reporting date.
    Response: FCIC has clarified this provision to indicate that only 
those optional units ``established for the crop year'' need to be 
identified on the acreage report.
    Comment: One comment received from an RSO recommended that section 
6(d) be changed to read, ``that are grown on vines that have completed 
four growing seasons after set out, unless otherwise provided by the 
actuarial table or by written agreement.''
    Response: FCIC agrees with the statement and has amended the 
provisions accordingly.
    Comment: One comment received from the crop insurance industry 
stated that the provision contained in the current cranberry 
endorsement that restricts insurance on vines that are being renovated 
and are not likely to produce a full crop for the current year was 
omitted from section 3(b).
    Response: The current provisions have been replaced by the 
provisions contained in section 3(b) that require the insured to report 
any damage, removal of vines, changes in practices, or any other 
circumstance that may reduce the expected yield below the yield upon 
which the insurance guarantee is based. The insurance provider will 
inspect the bog to determine the appropriate production guarantee based 
on the effect of the circumstances that actually exist. This allows 
insurance for such acres based on the actual expected yield, which will 
increase the number of insurable acres and provide yield protection for 
producers. Therefore, no change will be made.
    Comment: One comment received from the crop insurance industry 
questioned why the requirement for a 90 percent stand for insurability 
was removed. The commenter stated that insurability of bogs with less 
than 90 percent stand of bearing vines should be subject to inspection 
and provided by written agreement.
    Response: As stated above, such acreage will now be insurable at 
yields commensurate with the production capabilities of the acreage. 
Therefore, no change will be made.
    Comment: One comment received from an RSO recommended that section 
6(d) ``Insured Crop'' be change to read, ``that are grown in a bog with 
at least a 90 percent stand of bearing vines based on the original 
planting density unless otherwise provided by the actuarial table or by 
written agreement.''
    Response: FCIC disagrees with the comment. No change will be made 
for the reasons stated above.
    Comment: Two comments received, one from an RSO and one from the 
crop insurance industry, recommended adding a subparagraph to section 8 
``Causes of Loss'' to read, ``failure or breakdown of irrigation 
equipment or facilities due to direct damage to it from an insurable 
cause of loss if the cranberry crop is damaged by freezing temperatures 
within 72 hours of such failure or breakdown and repair or replacement 
was not possible before damage occurred.''
    Response: FCIC agrees with the comment and has amended the 
provisions accordingly.
    Comment: One comment received from an RSO recommended that section 
10(c)(1)(i)(D) ``Settlement of Claim'', be revised by adding 
``destroyed or put to another use without our consent'' as in other 
crop provisions.
    Response: FCIC agrees with the comment and has amended the 
provisions accordingly.
    Comment: One comment was received from the crop insurance industry 
stating that section 10(c)(1)(iv) ``Settlement of Claim'' should not 
allow the insured to defer settlement and wait for a later, generally 
lower, appraisal on insured acreage the producer intends to abandon or 
no longer care for.
    Response: A later appraisal will only be necessary if the insurance 
provider agrees that such an appraisal would result in a more accurate 
determination and if the producer continues to care for the crop. If 
the producer does not care for the crop, the original appraisal will be 
used. No change will be made to these provisions.
    Comment: One comment received from an RSO recommended changing the 
proposed quality adjustment requirements which state, ``due to 
insurable causes, does not meet, or

[[Page 5905]]

would not if properly handled meet, the United States Standards for 
Fresh Cranberries for Processing'' in section 10(c)(3) ``Settlement of 
Claim.'' The RSO recommended that the quality adjustment provisions 
contained in the current cranberry endorsement should be used.
    Response: FCIC agrees with the comment for those areas where the 
U.S. Standards for Fresh Cranberries for processing may not be 
available. The provisions have been amended accordingly.
    Comment: Three comments received from the crop insurance industry 
recommended in section 11(d) ``Written Agreements,'' that the 
requirement for a written agreement to be renewed each year should be 
removed. Terms of the agreement should be stated in the agreement to 
fit the particular situation for the policy, or if no substantive 
changes occur from one year to the next, allow the written agreement to 
be continuous.
    Response: Written agreements by design are temporary and intended 
to address unusual situations. If the condition for which written 
agreement is needed continue year to year, they should be incorporated 
into the policy or Special Provisions. Therefore, no change will be 
made.
    In addition to the changes described above, FCIC has made editorial 
changes for clarification on the following changes to the Cranberry 
Crop Provisions:
    1. Section 1--Added the term ``market price'' to the definitions 
for clarification.
    2. Section 3--Clarified that the insurance provider will adjust 
yields in response to removal of vines, damage, other changes in 
practices, or any other circumstance that will affect the yield.
    3. Section 7(a)(1)--Clarified that an application will not be 
accepted after the November 21 sales closing date. For applications 
submitted within 10 days of the sales closing date, coverage will not 
attach until 10 days after the date of application.
    4. Section 7(b)(2)(iii)--Added a requirement to clarify that the 
transferee must be eligible for crop insurance to be consistent with 
other crop provisions.
    5. Section 9(b)--Clarify that damaged production must not be sold 
or disposed of until the earlier of 15 days from the date of notice of 
loss or when the insurer gives consent to do so.
    6. Section 9(c)--Clarify that the failure to meet the requirements 
of this section result in the insurance providers inability to inspect 
the damaged production, for all such production to be considered 
undamaged and included as production to count.

List of Subjects in 7 CFR Parts 401 and 457

    Cranberry, Cranberry endorsement, Crop insurance.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation hereby amends 7 CFR parts 401 and 457 effective 
for the 1998 and succeeding crop years, as follows:

PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE 
1998 AND SUBSEQUENT CONTRACT YEARS

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

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

    2. The introductory text of Sec. 401.127 is amended to read as 
follows:


Sec. 401.127  Cranberry endorsement.

    The provisions of the Cranberry Crop Insurance Endorsement for the 
1990 through the 1997 crop years are as follows:
* * * * *

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

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

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

    4. Section 457.132 is added to read as follows:


Sec. 457.132  Cranberry crop insurance provisions.

    The Cranberry 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:

CRANBERRY 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

    Barrel--100 pounds of cranberries.
    Days--Calendar days.
    Good farming practices--The cultural practices generally in use 
in the county for the crop to make normal progress toward maturity 
and produce at least the yield used to determine the production 
guarantee and are those recognized by the Cooperative State 
Research, Education, and Extension Service as compatible with 
agronomic and weather conditions in the county.
    Harvest--Removal of the cranberries from the bog.
    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.
    Market price--The cash price per barrel of cranberries offered 
by buyers in the area in which you normally market the cranberries.
    Non-contiguous land--Any two or more tracts of land whose 
boundaries do not touch at any point, except that land separated 
only by a public or private right-of-way, waterway, or an irrigation 
canal will be considered as contiguous.
    Production guarantee (per acre)--The number of barrels 
determined by multiplying the approved actual production history 
(APH) yield per acre by the coverage level percentage you elect.
    Written agreement--A written document that alters designated 
terms of this policy in accordance with section 11.

2. Unit Division

    (a) Unless limited by the Special Provisions, a unit as defined 
in section 1 (Definitions) of the Basic Provisions (Sec. 457.8), 
(basic unit) may be divided into optional units if, for each 
optional unit you meet all the conditions of this section or if a 
written agreement to such division exists.
    (b) Basic units may not be divided into optional units on any 
basis including, but not limited to, production practice, type, and 
variety, other than as described in this section.
    (c) 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.
    (d) All optional units established for the crop year must be 
identified on the acreage report for that crop year.
    (e) The following requirements must be met for each optional 
unit:
    (1) You must have records, which can be independently verified, 
of planted acreage and production for each optional unit for at 
least the last crop year used to determine your production 
guarantee;
    (2) You must have records of marketed production or measurement 
of stored production from each optional unit maintained in such a 
manner that permits us to verify the production from each optional 
unit, or the production from each unit must

[[Page 5906]]

be kept separate until loss adjustment is completed by us; and
    (3) Each optional unit must be located on non-contiguous land.

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 select only one price election for all the 
cranberries in the county insured under this policy.
    (b) You must report, by the production reporting date designated 
in section 3 (Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities) of the Basic Provisions (Sec. 457.8):
    (1) Any damage, removal of vines, change in practices, or any 
other circumstance that may reduce the expected yield below the 
yield upon which the insurance guarantee is based, and the number of 
affected acres;
    (2) The age of the vines; and
    (3) Any other information that we request in order to establish 
your approved yield.
    We will adjust the yield used to establish your production 
guarantee as necessary, based on our estimate of the effect of the 
removal of vines, damage, change in practices, and any other 
circumstance that may affect the yield potential of the insured 
crop. If you fail to notify us of any circumstance that may affect 
your yields from previous levels, we will adjust your production 
guarantee as necessary at any time we become aware of the 
circumstance.

4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is August 31 
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 November 20.

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the 
cranberries in the county for which a premium rate is provided by 
the actuarial table:
    (a) In which you have a share;
    (b) That are grown for harvest as cranberries;
    (c) That are grown in a bog that, if inspected, is considered 
acceptable by us; and
    (d) That are grown on vines that have completed four growing 
seasons after the vines were set out, unless otherwise provided by 
the actuarial table or by written agreement.

7. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins on November 21 of each crop year, except 
that for the year of application, if your application is received 
after November 11, but prior to November 21, insurance will attach 
on the 10th day after your properly completed application is 
received in our local office, unless we inspect the acreage during 
the 10 day period and determine that it does not meet insurability 
requirements. You must provide any information that we require for 
the crop or to determine the condition of the bog.
    (2) The calendar date for the end of the insurance period for 
each crop year is November 20.
    (b) In addition to the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) If you acquire an insurable share in any insurable acreage 
after coverage begins but on or before the acreage reporting date 
for the crop year, and after an inspection we consider the acreage 
acceptable, insurance will be considered to have attached to such 
acreage on the calendar date for the beginning of the insurance 
period.
    (2) If you relinquish your insurable share on any insurable 
acreage of cranberries on or before the acreage reporting date for 
the crop year, insurance will not be considered to have attached to, 
and no premium or indemnity will be due for, such acreage for that 
crop year unless:
    (i) A transfer of coverage and right to an indemnity, or a 
similar form approved by us, is completed by all affected parties;
    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

8. 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, unless weeds and other forms of undergrowth have not 
been controlled or pruning debris has not been removed from the bog;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Failure of irrigation water supply, if caused by an insured 
peril that occurs during the insurance period; or
    (7) Failure or breakdown of irrigation equipment or facilities 
due to direct damage to the irrigation equipment or facilities from 
an insurable cause of loss if the cranberry crop is damaged by 
freezing temperatures within 72 hours of such failure or breakdown 
and repair or replacement was not possible before damage occurred.
    (b) In addition to the causes of loss excluded in section 12 
(Cause of Loss) of the Basic Provisions (Sec. 457.8), we will not 
insure against damage or loss of production due to:
    (1) Disease or insect infestation, unless adverse weather:
    (i) Prevents the proper application of control measures or 
causes properly applied control measures to be ineffective; or
    (ii) Causes disease or insect infestation for which no effective 
control mechanism is available; or
    (2) Inability to market the cranberries for any reason other 
than actual physical damage from an insurable cause of loss 
specified in this section. For example, we will not pay you an 
indemnity if you are unable to market due to quarantine, boycott, or 
refusal of any person to accept production.

9. Duties in the Event of Damage or Loss

    In addition to the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8):
    (a) If you discover damage, or if you intend to claim an 
indemnity on any insured unit, you must give us notice of probable 
loss:
    (1) At least 15 days before the beginning of any harvesting, or
    (2) Immediately if probable loss is discovered after harvesting 
has begun.
    (b) You must not sell or dispose of any damaged production until 
the earlier of 15 days from the date of notice of loss or when we 
give you written consent to do so.
    (c) If you fail to meet the requirements of this section, and 
such failure results in our inability to inspect the damaged 
production, all such production will be considered undamaged and 
included as production to count.

10. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide separate acceptable production records:
    (1) For any optional unit, we will combine all optional units 
for which such production records were not provided; or
    (2) For any basic unit, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the insured acreage by its respective production 
guarantee;
    (2) Multiplying the result of section 10(b)(1) by the price 
election;
    (3) Multiplying the total production to be counted, (see section 
10(c)) by the price election;
    (4) Subtracting the total in section 10(b)(3) from the total in 
section 10(b)(2); and
    (5) Multiplying the result in section 10(b)(4) by your share.
    (c) The total production to count (in barrels) 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) Damaged solely by uninsured causes;
    (C) For which you fail to provide acceptable production records; 
or
    (D) Destroyed or put to another use without our consent;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production; and
    (iv) Potential production on insured acreage that you intend to 
abandon or no longer care for, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for 
that acreage will end. If you do not agree with our appraisal, we 
will use the appraised amount of production or defer the claim if 
you agree to continue to care for the crop. We will then make 
another appraisal when you notify us of further damage or that 
harvest is general

[[Page 5907]]

to the area unless you harvested the crop, in which case we will use 
the harvested production. If you do not continue to care for the 
crop, our appraisal made prior to deferring the claim will be used 
to determine the production to count; and
    (2) All harvested production from the insurable acreage.
    (3) Harvested production which, due to insurable causes, is 
determined not to meet the United States Standards for Fresh 
Cranberries if available, or would not meet those standards if 
properly handled, or does not meet the quality requirements of the 
receiving handler if the United States Standards for Fresh 
Cranberries, if not available, and such harvested production has a 
value less than 75 percent of the market price for cranberries 
meeting the minimum requirements will be adjusted by:
    (i) Dividing the value per barrel of such cranberries by the 
market price per barrel for cranberries meeting the minimum 
requirements; and
    (ii) Multiplying the result by the number of barrels of such 
cranberries.

11. 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 
11(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.

    Signed in Washington, DC, on January 31, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-3130 Filed 2-7-97; 8:45 am]
BILLING CODE 3410-FA-P