[Federal Register Volume 62, Number 58 (Wednesday, March 26, 1997)]
[Rules and Regulations]
[Pages 14283-14287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7655]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 / 
Rules and Regulations  

[[Page 14283]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 415 and 457


General Crop Insurance Regulations; Forage Production Crop 
Insurance Regulations, and Common Crop Insurance Regulations; Forage 
Production 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 production. The 
provisions will be used in conjunction with the Common Crop Insurance 
Policy Basic Provisions, which contain standard terms and conditions 
common to most crops. The intended effect of this action is to provide 
policy changes to better meet the needs of the insured, include the 
current forage production crop insurance regulations with the Common 
Crop Insurance Policy for ease of use and consistency of terms, add an 
optional forage production winter coverage endorsement, and to restrict 
the effect of the current forage production crop insurance regulations 
to the 1997 and prior crop years.

EFFECTIVE DATE: April 25, 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), 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.
    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 three 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 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 Friday, September 13, 1996, FCIC published a proposed rule in 
the Federal Register at 61 FR 48416-48420

[[Page 14284]]

to add to the Common Crop Insurance Regulations (7 CFR part 457), two 
new sections: 7 CFR 457.117, Forage Production Crop Insurance 
Provisions; and 457.127, Forage Production Winter Coverage Endorsement. 
The new provisions will be effective for the 1998 and succeeding crop 
years. These provisions will replace and supersede the current 
provisions for insuring forage production found at 7 CFR part 415 
(Forage Production Crop Insurance Regulations). FCIC also amends 7 CFR 
part 415 to limit its effect to the 1997 and prior crop years.
    Following publication of the proposed rule, the public was afforded 
60 days to submit written comments, data, and opinions. A total of 19 
comments were received from the crop insurance industry and FCIC. The 
comments received, and FCIC's responses, are as follows:
    Comment: A representative of FCIC and the crop insurance industry 
questioned the definition of ``Air-dry forage'', which references 
eighteen percent moisture as the basis for converting forage to an air-
dry equivalent. The commenters recommended that this adjustment should 
be based on thirteen percent moisture as specified in the current loss 
adjustment procedure.
    Response: FCIC agrees with the comments and has amended the 
provisions accordingly.
    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 words ``providing the quantity'' in the 
definition of ``Irrigated practice.''
    Response: FCIC agrees 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 that section 3 
``Insurance Guarantees, Coverage Levels, and Prices,'' be changed to 
read, ``* * * select only one price percentage * * *''. The commenter 
stated this change would shorten the provision because language 
regarding varieties having different maximum prices would no longer be 
necessary.
    Response: The methods used to select price elections vary between 
insurance providers. While some require selection of a percentage, 
others require selection of a specific dollar amount. The suggested 
change will not work in all circumstances. Therefore, no change has 
been made.
    Comment: A representative of FCIC and the crop insurance industry 
stated that section 6 ``Report of Acreage'' should not require separate 
acreage reports for acreage insured under the Forage Production Winter 
Coverage Endorsement and for all other insurable forage acreage. The 
commenter believes that only one acreage report should be required.
    Response: Fall planted acreage is eligible for coverage under the 
Forage Production Winter Coverage Endorsement the first and subsequent 
crop years following year of establishment. Insurance attaches in the 
fall for forage acreage insured under the Forage Production Winter 
Coverage Endorsement and in the spring for all other forage acreage 
that is not eligible for coverage under the endorsement. Therefore, 
separate fall and spring acreage reports are necessary to timely 
determine the liability and premium when insurance attaches. Therefore, 
no change has been made.
    Comment: The crop insurance industry raised concern with the 
provision contained in section 7(a)(2) that requires the forage crop be 
planted for harvest as livestock feed in order for coverage to attach. 
The commenters questioned the insurability of forage being used for a 
purpose other than livestock feed. For example, a new biomass plant 
utilizes a portion of the forage to burn for electrical energy 
production in addition to producing livestock feed. Producers may 
contract part of their forage to be burned and use the remainder of 
production for livestock feed. They questioned whether the acreage 
contracted to be burned would be considered insurable and how APH and 
loss adjustment procedure would be affected.
    Response: Any forage planted for harvest other than for livestock 
feed is not insurable. No procedures or provisions have been developed 
to provide coverage for forage intended to be harvested as other than 
livestock feed. FCIC will consider this issue for future use. 
Therefore, no change has been made.
    Comment: The crop insurance industry questioned the provisions 
contained in section 7(a)(3) ``Insured Crop'' regarding the 
insurability of fall seeded forage. The commenters stated that, in some 
areas, it is common for fall seeded forage to establish a better stand 
than forage seeded prior to July 1 of the same year. They asked if such 
cases could be insured by written agreement (following a favorable crop 
inspection) the next year (currently the ``year of establishment'' by 
definition) instead of having to wait until the following year.
    Response: The forage production crop insurance program is designed 
to provide coverage the year following the year the forage stand is 
established. In general, forage planted after June 30 takes longer to 
establish an acceptable stand than forage planted prior to June 30. 
Currently there are no procedures in place to evaluate the quality or 
adequacy of the stand during the year of establishment to determine 
insurability of the stand. Therefore, no change has been made.
    Comment: The crop insurance industry questioned section 7(b)(3) 
``Insured Crop'', why the ability to insure an overage stand of forage 
by written agreement is eliminated. The commenter stated that many 
overage fields have the ability to produce in excess of the approved 
APH yield and that not all producers keep separate records of the 
overage stands, which will be a problem if the overage stands are no 
longer insurable. The commenter suggested providing an option to insure 
all forage, including overage acreage, with a premium surcharge or a 
reduced yield based on a factor multiplied by the average APH yield.
    Response: Research indicates that overage forage stand density 
decreases with time. As stand density decreases forage production 
decreases significantly. The Special Provisions will specify at what 
age the forage stand is no longer eligible for insurance coverage. FCIC 
agrees that the concept of insuring overage stands with a premium 
surcharge or reduced yield should be studied to determine if premium 
surcharges or factors to reduce the APH yield can be developed. 
Therefore, no change has been made.
    Comment: The crop insurance industry recommended that section 12(d) 
``Written Agreements,'' should not state that written agreements are 
valid for only one year (perhaps refer to the date specified in the 
agreement instead). The commenter recommended that written agreements 
should be continuous, unless there are significant changes in the 
farming operation.
    Response: Written agreements are intended to change policy terms or 
permit insurance in unusual situations where such changes will not 
increase risk. If such practices continue year to

[[Page 14285]]

year, they should be incorporated into the policy or Special 
Provisions. It is important to keep non-uniform exceptions to the 
minimum and to ensure that the insured is well aware of the specific 
terms of the policy. Therefore, no change has been made.
    Comment: A representative of FCIC questioned the addition of the 
Forage Production Winter Coverage Endorsement, stating that in areas 
with little or no winter damage risk, it increases the complexity of 
the program by requiring further explanation to producers, separate 
rates, acreage reports and dates, which has no true benefit to 
producers. The commenter stated that Risk Management Agency should be 
putting considerable efforts into developing a program that truly meets 
producers needs (i.e. quality adjustment, etc.).
    Response: The current regulations allow winter coverage as part of 
the basic policy, which affects the premium rates for all insureds even 
though not all insureds use this coverage. This endorsement will allow 
winter protection for only insureds who elect the winter coverage and 
only those electing the endorsement will pay premium for the winter 
coverage. FCIC agrees that the concept of developing a program which 
fits all producer needs, such as quality adjustment, etc., should be 
studied to determine if procedures for other program improvements can 
be developed. Therefore, no change has been made.
    Comment: The crop insurance industry stated that in many states the 
acreage of forage is very small, resulting in small premiums and 
expensive administration costs. Producers who choose not to purchase 
the winter endorsement will have even smaller premiums, making the 
policy less attractive to deliver. The commenter suggested that FCIC 
consider offering a forage Group Risk Plan (GRP) program in all states 
and counties, which has been suggested by the crop insurance industry 
and FCIC simplification work groups.
    Response: The GRP forage program is currently offered in a few 
selected states and counties. Expanding the GRP forage program to all 
states and counties is under consideration. However, no decision has 
been rendered at this time. If such expansion occurs, the forage 
production producer will have the option to be insured under the GRP 
plan or the current forage production crop provisions. Therefore, no 
change has been made.
    Comment: The crop insurance industry stated that most forage 
production policyholders purchased the insurance because of the winter 
coverage. They recommended that insureds be allowed to exclude winter 
coverage in return for a reduced premium rate.
    Response: The current regulations allow winter coverage as part of 
the basic policy, which affects the premium rates for all persons who 
insure forage production. Now, only those producers who elect the 
Forage Production Winter Coverage Endorsement will have to pay the 
premium for such coverage. Therefore, no change has been made.
    Comment: The crop insurance industry expressed concern with the 
extra work and expense that would be required to have winter coverage 
begin in the fall. The commenter stated that inspections should be 
required in the spring because winter inspections are difficult if 
there is snow on the ground.
    Response: Crop inspections for fall planted forage must be made in 
the fall if the winter coverage endorsement is elected to ensure that 
such acreage is insurable before insurance attaches. Therefore, no 
change has been made.

List of Subjects in 7 CFR Parts 415 and 457

    Crop insurance, Forage production crop insurance regulations, 
Forage production.

Final Rule

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation hereby amends 7 CFR parts 415 and 457 
effective for the 1998 and succeeding crop years, to read as follows:

PART 415--FORAGE PRODUCTION CROP INSURANCE REGULATIONS

    1. The authority citation for 7 CFR part 415 is revised to read as 
follows:

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

    2. The subpart heading preceding Sec. 415.1 is revised to read as 
follows:

Subpart--Regulations for the 1986 Through 1997 Crop Years

    3. Section 415.7 is amended by revising the introductory text of 
paragraph (d) to read as follows:


Sec. 415.7  The application and policy.

* * * * *
    (d) The application for the 1986 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 Production Insurance 
Policy for the 1986 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. 1506(l), 1506(p).

    5. Sections 457.117 and 457.127 are added to read as follows:


Sec. 457.117  Forage production crop insurance regulations.

    The Forage Production 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 Production Crop Insurance Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), 
these Crop Provisions, and the Special Provisions; the Special 
Provisions will control these Crop Provisions and the Basic 
Provisions; and these Crop Provisions will control the Basic 
Provisions.
    1. Definitions.
    Adequate stand--A population of live forage plants that equals 
or exceeds the minimum required number of plants per square foot as 
shown in the Special Provisions.
    Air-dry forage--Forage that has dried in windrows by natural 
means to less than 13 percent moisture before being put into stacks 
or bales.
    Crop year--The period from the date insurance attaches until 
harvest is normally completed, which is designated by the calendar 
year in which the majority of the forage is normally harvested.
    Cutting--Severance of the forage plant from the land for the 
purpose of livestock feed.
    Days--Calendar days.
    Fall planted--A forage crop planted after June 30.
    Forage--Planted perennial alfalfa, perennial red clover, 
perennial grasses, or a mixture thereof, 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 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 forage from the windrow or field. Grazing 
will not be considered harvested.
    Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to

[[Page 14286]]

establish the irrigated production guarantee on the irrigated 
acreage planted to the insured crop.
    Production guarantee (per acre)--The number of tons determined 
by multiplying the approved APH yield per acre times the coverage 
level percentage you elect.
    Spring planted--A forage crop planted before July 1.
    Ton--Two thousand (2,000) pounds avoirdupois.
    Written agreement--A written document that alters designated 
terms of this policy in accordance with section 12.
    Year of establishment--The period between seeding and when the 
forage crop has developed an adequate stand. Insurance during the 
year of establishment may be available under the forage seeding 
policy. Insurance under this policy does not attach until after the 
year of establishment. The year of establishment is determined by 
the date of seeding. The year of establishment for spring planted 
forage is designated by the calendar year in which seeding occurred. 
The year of establishment for fall planted forage is designated by 
the calendar year after the year in which the crop was planted.
    2. Unit Division.
    Optional units are not available for forage production. See the 
definition of unit contained in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8).
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
    In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Basic Provisions (Sec. 457.8):
    (a) You may only select one price election for all the forage in 
the county insured under this policy unless the Special Provisions 
provide different price elections by type, in which case you may 
select one price election for each forage type designated in the 
Special Provisions. The price elections you choose for each type 
must have the same percentage relationship to the maximum price 
offered by us for each type. For example, if you choose 100 percent 
of the maximum price election for a specific type, you must also 
choose 100 percent of the maximum price election for all other 
types.
    (b) You must report the total production harvested from 
insurable acreage for all cuttings for each unit by the production 
reporting date.
    (c) Separate guarantees will be determined by forage type, as 
applicable.
    4. Contract Changes.
    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is June 30 
preceding the cancellation date.
    5. Cancellation and Termination Dates.
    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation 
and termination dates are September 30.
    6. Report of Acreage.
    In addition to section 6 of the Basic Provisions (Sec. 457.8), 
you must submit separate acreage reports for acreage insured under 
the Forage Production Winter Coverage Endorsement and for all other 
insurable forage acreage.
    7. Insured Crop .
    (a) In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the forage in 
the county for which a premium rate is provided by the actuarial 
table:
    (1) In which you have a share;
    (2) That is planted for harvest as livestock feed; and
    (3) That is grown after the year of establishment.
    (b) In addition to the crop listed as not insured in section 8 
(Insured Crop) of the Basic Provisions (Sec. 457.8), we will not 
insure any forage that:
    (1) Does not have an adequate stand at the beginning of the 
insurance period;
    (2) Is grown with a non-forage crop; or
    (3) Exceeds the age limitations for forage stands contained in 
the Special Provisions.
    8. Insurance Period.
    In lieu of the provisions of section 11 (Insurance Period) of 
the Basic Provisions (Sec. 457.8):
    (a) Insurance attaches on acreage with an adequate stand on the 
later of the date we accept your application or the applicable 
calendar dates listed below:
    (1) For the first and subsequent calendar years following the 
year of establishment, for acreage not insured under the Forage 
Production Winter Coverage Endorsement for:
    (i) California--February 1;
    (ii) Colorado, Idaho, Nebraska, Nevada, Oregon, Utah, and 
Washington--April 15;
    (iii) Iowa, Minnesota, Montana, New Hampshire, New York, North 
Dakota, Pennsylvania, Wisconsin, Wyoming, and all other states--May 
22;
    (2) The calendar date specified in the Forage Production Winter 
Coverage Endorsement for acreage insured under such endorsement.
    (b) Insurance ends at the earliest of:
    (1) Total destruction of the forage crop;
    (2) Removal from the windrow or the field for each cutting;
    (3) Final adjustment of a loss;
    (4) The date grazing commences on the forage crop;
    (5) Abandonment of the forage crop; or
    (6) The following dates of the crop year:
    (i) All states except California--October 15;
    (ii) California--December 31.
    (c) In order to obtain year-round coverage for a calendar year, 
you must purchase the Forage Production Winter Coverage Endorsement 
(Sec. 457.127).
    9. Causes of Loss.
    (a) In accordance with the provisions of section 12 (Causes of 
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided 
only against the following causes of loss that occur during the 
insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (4) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply, if caused by an 
insured peril that occurs during the insurance period.
    (b) In addition to the causes of loss not covered in section 12 
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not 
insure against damage that occurs after removal from the windrow.
    10. Duties in the Event of Damage or Loss.
    In addition to your duties contained in section 14 (Duties in 
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), 
if you discover any insured forage is damaged, or if you intend to 
claim an indemnity on any unit, you must give notice:
    (a) Of probable loss at least 15 days before the beginning of 
any cutting or immediately if probable loss is discovered after 
cutting has begun; and
    (b) At least 5 days before grazing of insured forage begins. 
Such notice must include the number of acres harvested and tons 
produced from each unit.
    11. Settlement of Claim.
    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide production records for any unit, we will 
allocate any commingled production to such units in proportion to 
our liability on the harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the insured acreage for each type, by its 
respective production guarantee;
    (2) Multiplying each result in section 11(b)(1) by the 
respective price election you selected;
    (3) Totaling the results of each crop type in section 11(b)(2);
    (4) Multiplying the total production to be counted of each type, 
if applicable, (see section 11(c)) by the respective price election 
you selected;
    (5) Totaling the results of each crop type in section 11(b)(4);
    (6) Subtracting the result in section 11(b)(5) from the result 
in section 11(b)(3); and
    (7) Multiplying the result in section 11(b)(6) by your share.
    (c) The total production to count (in tons) from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee per acre for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide production records that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production;
    (iv) Potential production on insured acreage that you intend to 
put to another use or abandon, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for 
that acreage will end when you put the acreage to another use or 
abandon the crop. If agreement on the appraised amount of production 
is not reached and:
    (A) You do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave

[[Page 14287]]

intact, and provide sufficient care for, representative samples of 
the crop in locations acceptable to us (The amount of production to 
count for such acreage will be based on the harvested production or 
appraisals from the samples at the time harvest should have 
occurred. If you do not leave the required samples intact, or fail 
to provide sufficient care for the samples, our appraisal made prior 
to giving you consent to put the acreage to another use will be used 
to determine the amount of production to count); or
    (B) You elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested 
production, or our reappraisal if additional damage occurs and the 
crop is not harvested; and
    (2) All harvested production from the insurable acreage.
    (d) When forage is harvested as other than air-dry forage, the 
production to count will be adjusted to the equivalent of air-dry 
forage.
    (e) Any harvested production from plants growing in the forage 
will be counted as forage on a weight basis.
    (f) In addition to the provisions of section 15 (Production 
Included in Determining Indemnities) of the Basic Provisions 
(Sec. 457.8), we may determine the amount of production of any 
unharvested forage on the basis of our field appraisals conducted 
after the normal time for each cutting for the area.
    12. Written Agreements.
    Designated terms of this policy may be altered by written 
agreement in accordance with the following:
    (a) You must apply in writing for each written agreement no 
later than the sales closing date, except as provided in section 
12(e);
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in 
effect if the written agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If 
the written agreement is not specifically renewed the following 
year, insurance coverage for subsequent crop years will be in 
accordance with the printed policy); and
    (e) An application for a written agreement submitted after the 
sales closing date may be approved if, after a physical inspection 
of the acreage, it is determined that no loss has occurred and the 
crop is insurable in accordance with the policy and written 
agreement provisions.
* * * * *


Sec. 457.127  Forage Production Winter Coverage Endorsement.

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

Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Winter Coverage Endorsement

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

    Signed in Washington, D.C., on March 19, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-7655 Filed 3-25-97; 8:45 am]
BILLING CODE 3410-FA-P