[Federal Register Volume 62, Number 54 (Thursday, March 20, 1997)]
[Rules and Regulations]
[Pages 13289-13293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7012]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 54 / Thursday, March 20, 1997 / Rules 
and Regulations  

[[Page 13289]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 414 and 457


General Crop Insurance Regulations; Forage Seeding Crop Insurance 
Regulations and Common Crop Insurance Regulations; Forage Seeding Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes 
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, 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 regulations to 
the 1997 and prior crop years.

DATES: Effective: March 20, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Insurance Management 
Specialist, Research and Development, Product Development Division, 
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), P.L. 
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 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. 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 part 11 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 Wednesday, January 15, 1997, FCIC published a notice of proposed 
rule making, in the Federal Register at 62 FR 2055-2059 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

[[Page 13290]]

found at 7 CFR part 414 (Forage Seeding Crop Insurance Regulations). 
FCIC also amends 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.
    Following publication of the proposed rule, the public was afforded 
30 days to submit written comments, data, and opinions. A total of 17 
comments were received from the crop insurance industry and FCIC. The 
comments received, and FCIC's response, are as follows:
    Comment: The crop insurance industry questioned the definition of 
``FSA.'' They stated that with the passage of the Freedom to Farm Act, 
references to FSA or FSA Farm Serial Numbers or reliance on either in 
the crop insurance policies becomes questionable. They suggested that 
any reliance on FSA information, structure or data be eliminated from 
the policy given the farm bill provisions.
    Response: FSA is still a viable agency and acreage can still be 
divided by Farm Serial Number. Those producers who elect to maintain 
their Farm Serial Number units will still be able to obtain optional 
units by Farm Serial Numbers. FCIC sees no reason to change that unit 
structure. Therefore, no change has been made.
    Comment: A representative of FCIC recommended changing the 
definition of ``Forage'' to allow insurance coverage for non-grass 
forage species other than alfalfa and red clover (e.g., birdsfoot 
trefoil).
    Response: FCIC agrees with the comment and has amended the 
definition to allow insurance coverage for other species listed in the 
Actuarial Table.
    Comment: The crop insurance industry recommended adding the words 
``and quality'' after the word ``quantity'' in the definition of 
``Irrigated practice'' in section 1.
    Response: Water quality is an important issue. However, since no 
standards or procedures have been developed to measure water quality 
for insurance purposes, quality cannot be included in the definition. 
Therefore, no change has been made.
    Comment: The crop insurance industry recommended changing the 
definition of ``Replanting'' in section 1. The commenter indicated that 
the wording `` * * * replace the forage seed and then replacing the 
forage seed * * * '' is duplicative.
    Response: FCIC disagrees that the language is duplicative. The 
provision is amended to clarify that both preparation of the land 
necessary to replace the seed and replacement of the seed must be 
accomplished to be considered replanted.
    Comment: The crop insurance industry recommended changing the 
wording in section 2(a) to read, ``A separate (basic) unit, as defined 
in section 1 (Definitions) of the Basic Provisions, will be established 
for spring and fall planted acreage.''
    Response: FCIC agrees with the comment and has amended the 
provisions accordingly.
    Comment: The crop insurance industry recommended that the states in 
section 5 ``Cancellation and Termination Dates'' be in alphabetical 
order.
    Response: FCIC agrees with the comment and has amended the 
provisions accordingly.
    Comment: The crop insurance industry recommended that the spring 
seeded forage acreage reporting date, premium billing date, and 
termination dates should be changed to allow the crop insurance 
industry more time to process their documents within compliance of 
their contract.
    Response: This rule moves the termination dates from April 15 to 
March 15 for all states except Nevada, New Hampshire, New York, 
Pennsylvania and Vermont to coincide with the March 15 sales closing 
date that has been set in accordance with section 508(f)(2) of the 
Federal Crop Insurance Act. The acreage reporting and premium billing 
dates are not contained in this rule. However, FCIC has determined that 
the insurance provider has sufficient time to process the documents and 
comply with all provisions of the reinsurance agreement. Therefore, no 
change has been made.
    Comment: The crop insurance industry stated that the provisions 
specify that the crop insured is ``forage seeding'', but the term is 
not included in the definitions. Either ``forage seeding'' should be 
defined, or the provisions should refer to ``all the forage seeded in 
the county''.
    Response: FCIC agrees that use of the term ``forage seeding'' is 
confusing. The provisions have been amended to remove the word 
``seeding'' since the provisions require the forage to be planted 
during the current crop year.
    Comment: The crop insurance industry recommended that section 6(b) 
``Insured Crop'' should clarify that insurance coverage is provided for 
forage ``that is initially planted this crop year, or replanted the 
calendar year following planting'' to distinguish between forage 
seeding (first year) and forage production (subsequent years).
    Response: FCIC has clarified that the forage must be planted during 
the current crop year.
    Comment The crop insurance industry stated that the language 
contained in section 8(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'' is 
confusing and should be clarified.
    Response: FCIC agrees with the comment and has amended the 
provisions for clarification.
    Comment: A representative of FCIC questioned why in section 10 
``Replanting payment'' that replant payments are only allowed for fall 
seeded forage in counties that have both fall and spring final planting 
dates. The commenter stated that the policy should be changed to allow 
replant payments for damage that also occurs in the spring.
    Response: When FCIC started the forage seeding program, the policy 
was written for fall forage producers. It was determined that spring 
forage seeding producers would not replant the forage until the 
following spring. However, FCIC agrees that, with the expansion of 
spring planted forage in the country, a spring replanting payment 
should be studied for future implementation. However, no change has 
been made in this rule.
    Comment: The crop insurance industry recommended changing the 
wording in section 12(a)(3) that provides for a 10 percent deductible. 
The commenter questioned if it would be better to provide for a minimum 
qualifier rather than a deductible.
    Response: FCIC disagrees with comment. The 10 percent deductible 
recognizes that when forage is seeded, it is expected 10 percent of the 
new seed will not mature and produce a crop. Therefore, no change has 
been made.
    Comment: The crop insurance industry recommended that the 
requirement contained in section 13(d) for a written agreement to be 
renewed each year be removed. The commenters said that 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 written agreement to be continuous.
    Response: FCIC disagrees with the comments. Written agreements by 
design are temporary and intended to address unusual situations. If the 
conditions for which a written agreement is needed continue year to 
year, they should be incorporated into the policy or Special 
Provisions. Therefore, no change has been made.

[[Page 13291]]

    Good cause is shown to make this rule effective upon publication in 
the Federal Register. This rule improves the forage seeding insurance 
coverage and brings it under the Common Crop Insurance Policy Basic 
Provisions for consistency among policies. The earliest contract change 
date for the 1998 crop year for forage seeding is April 30, 1997. It is 
therefore imperative that these provisions be made final before that 
date so that the reinsured companies and insureds may have sufficient 
time to implement these changes. Therefore, public interest requires 
the agency to act immediately to make these provisions available for 
the 1998 crop year.

List of Subjects 7 CFR Parts 414 and 457

    Crop insurance, Forage seeding, Forage seeding crop insurance 
regulations.

Final Rule

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

PART 414--FORAGE SEEDING CROP INSURANCE REGULATIONS

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

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

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

Subpart--Regulations for the 1981 Through 1997 Crop Years

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

    5. Section 457.151 is added 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 a 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--Planted perennial alfalfa, perennial red clover, 
perennial grasses, or a mixture thereof, or other species, 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 are those 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 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.
    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 
prepare the land for replacing of 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) In addition to the provisions of section 1 (Definitions) of 
the Basic Provisions (Sec. 457.8) (basic unit), a separate basic 
unit will be established 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 additional 
premium paid for the optional units will that have been combined be 
refunded to you.

[[Page 13292]]

    (e) All optional units you selected for the 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 have 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 of the maximum amount of insurance for a 
specific type and practice, you must also choose 100 percent 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            
------------------------------------------------------------------------
Nevada, New Hampshire, New York,           July 31.                     
 Pennsylvania, Vermont.                                                 
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 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 during the current crop year, or replanted 
the calendar year following planting, to establish a normal 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) The initial harvest of the unit, if a late harvest date is 
not listed in the Special Provisions;
    (c) The first harvest after the late harvest date, if a late 
harvest date is specified in the Special Provisions. You may harvest 
the crop as often as practical in accordance with good farming 
practices on or before the late harvest date.
    (d) Final adjustment of a loss on a unit;
    (e) Abandonment of the insured crop;
    (f) The date grazing commences on the insured crop; or
    (g) 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 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 of the amount of the liability determined in accordance with 
section 12(a).
    (c) No replanting payment will be made on acreage for which one 
replanting payment has been allowed.
    (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 in section 12(a)(1);
    (3) Multiplying the total of the acres with an established stand 
plus 10 percent of the planted acres for the insured acreage of each

[[Page 13293]]

type and practice in the unit by the amount of insurance for the 
applicable type and practice;
    (4) Totaling the results in section 12(a)(3);
    (5) Subtracting the result in section 12(a)(4) from the result 
in section 12(a)(2); and
    (6) Multiplying the result in section 12(a)(5) by your share.
    (b) The acres with an established stand will include:
    (1) Acreage that has at least 75 percent 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 if the stand is less than 75 percent but more than 55 
percent 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 March 14, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-7012 Filed 3-19-97; 8:45 am]
BILLING CODE 3410-FA-P