[Federal Register Volume 62, Number 80 (Friday, April 25, 1997)]
[Rules and Regulations]
[Pages 20089-20093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10676]



 ========================================================================
 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. 80 / Friday, April 25, 1997 / Rules 
and Regulations  

[[Page 20089]]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 446 and 457


Walnut Crop Insurance Regulations; and Common Crop Insurance 
Regulations, Walnut 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 walnuts. 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 walnut 
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 walnut crop insurance regulations to the 1997 and prior crop 
years.

EFFECTIVE DATE: June 24, 1997.

FOR FURTHER INFORMATION CONTACT: Arden Routh, Insurance Management 
Specialist, 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, 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 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 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 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order No. 12988

    This rule has been reviewed in accordance with Executive Order No. 
12988. 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, August 9, 1996, FCIC published a proposed rule in the 
Federal Register at 61 FR 41527-41531 to add to the Common Crop 
Insurance Regulations (7 CFR part 457) a new section, 7 CFR 457.122, 
Walnut Crop Insurance Provisions. The new

[[Page 20090]]

provisions will be effective for the 1998 and succeeding crop years. 
These provisions will replace and supersede the current provisions for 
insuring Walnuts found at 7 CFR part 446 (Walnut Crop Insurance 
Regulations). FCIC also amends 7 CFR part 446 to limit its effect to 
the 1997 and prior crop years. FCIC will later publish a regulation to 
remove and reserve part 446.
    Following publication of the proposed rule, the public was afforded 
60 days to submit written comments. A total of 10 comments were 
received from the crop insurance industry (industry) and FCIC. The 
comments received, and FCIC's responses, are as follows:
    Comment: The 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 standards that have been developed to measure 
water quality for insurance purposes. Therefore, no change has been 
made.
    Comment: The industry questioned why all optional units must be 
identified on the acreage report for each crop year, and if so, is this 
by crop or also by practice, type, and variety.
    Response: FCIC has clarified this provision to indicate that only 
those optional units selected for the specific crop year need be 
identified on the acreage report.
    Comment: The industry is concerned with section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities), 
and recommends that the language be changed to ``* * * select only one 
price percentage * * *'' It would not then be necessary to include 
complex provisions regarding varieties or varietal group with different 
maximum prices.
    Response: Methods used to select price elections vary between 
insurance providers. While some require selection of a percentage of 
the price election, others require selection of a specific dollar 
amount. Therefore, no change has been made.
    Comment: The industry questioned whether the language contained in 
section 6(e) pertained to optional units, basic units, or both. If the 
provisions applies only to optional units, the industry recommended 
moving the provisions to section 2. The industry also questioned if the 
agreement in writing to insure less than 5 acres would be a Written 
Unit Agreement or a written statement accepted by the parties involved.
    Response: This provision pertains to both optional and basic units. 
The provision requires only that the insurance provider agree in 
writing to insure the acreage. It is not necessary to have a formal 
Written Unit Agreement. Therefore, no change has been made.
    Comment: The industry recommended changing the language in section 
8(a)(1) from ``in your insurance provider's local office'' to ``in our 
local agent's office'' to be consistent with other perennial crop 
policies. One comment also asked if the provisions in this section 
allow late filed applications.
    Response: FCIC agrees with the comment and has amended the 
provisions to read ``* * * in our local office * * *'' This section was 
not intended to allow late filed applications. The provisions have been 
rewritten to indicate that the date insurance attaches is 10 days after 
the application is received, if it is received within the 10 day period 
prior to the sales closing date.
    Comment: The industry believes that section 11(c)(1)(iv) should not 
allow the producer 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: The later appraisal will only be necessary if the 
insurance provider agrees that such appraisal would result in a more 
accurate determination and the producer continues to care for the crop. 
If the producer does not care for the crop, the original appraisal is 
used. If the insurance provider believes the original appraisal is 
accurate, resolution of the dispute may be sought through arbitration 
or appeal procedures, whichever are applicable. Therefore, no change 
has been made.
    Comment: The industry suggested combining the provisions contained 
in section 12(e) with the provisions in section 12(a).
    Response: The requirement that requests for written agreements be 
submitted by the sales closing date is intended to be the rule and 
acceptance after such date will only be allowed under unusual 
circumstances. Therefore, no change has been made.
    Comment: The industry recommended that the requirement for a 
written agreement to be renewed each year 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 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 year, they should be 
incorporated into the policy or Special Provisions. It is important to 
keep non-uniform exceptions to the minimum to assure that the insured 
is well aware of the specific terms of the policy. Therefore, no change 
will be made.
    In addition to the changes described above, FCIC has made the 
following changes to the Walnut Provisions:
    1. Section 2(b)--Deleted this provision because it was in conflict 
with section 2(a) and redesignated the following provisions.
    2. Section 2(c)--Clarified provisions regarding premium refunds 
when optional units are combined into a basic unit.
    3. Section 2(e)(1)--Clarified that production reports must be 
certified by the production reporting date as one of the requirements 
for optional units.
    4. Section 6(d)--Added a specific percentage of the trees that must 
have reached the ninth growing season before the crop is insurable 
unless the insured obtains a written agreement.
    5. Section 8(b)(1)--Added a provision to clarify that acreage 
acquired after the acreage reporting date is not insurable.
    6. Section 8(b)(2)(iii)--Added a provision to clarify that a person 
to whom coverage is transferred must be eligible for insurance.
    7. Section 9--Clarified provisions to indicate that adverse weather 
that prevents the proper application of control measures, causes 
properly applied control measures to be ineffective, or causes a 
circumstance that promotes disease or insect infestation for which no 
effective control mechanism is available for disease and insect damage 
is an insured causes of loss to be consistent with other crops. Also, 
clarified that failure of the irrigation water supply is a covered loss 
only if caused by a peril for which insurance is provided.
    8. Section 11(b)--Clarified the calculations used to settle a 
claim.

List of Subjects in 7 CFR Parts 446 and 457

    Crop insurance, Reporting and recordkeeping requirements, Walnut 
crop, Walnut insurance regulations.

Final Rule

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation hereby amends 7 CFR parts 446 and 457 as 
follows:

PART 446--WALNUT CROP INSURANCE REGULATIONS

    1. The authority citation for 7 CFR part 446 continues to read as 
follows:


[[Page 20091]]


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

    2. The subpart heading preceding Sec. 446.1 is revised to read as 
follows:

Subpart--Regulations for the 1986 Through the 1997 Crop Years

    3. Section 446.7 is amended by revising the introductory text of 
paragraph (d) to read as follows:


Sec. 446.7  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 and may be 
amended from time to time for subsequent crop years. The provisions of 
the Walnut 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. Section 457.122 is added to read as follows:


Sec. 457.122  Walnut Crop Insurance Provisions.

    The Walnut 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:

Walnut 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

    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 walnuts from the orchard.
    Interplanted--Acreage on which two or more crops are planted in 
any form of alternating or mixed pattern.
    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.
    Net delivered weight--Delivered weight (pounds) of dry, hulled, 
in-shell walnuts, excluding foreign material.
    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.
    Pound--A unit of weight equal to 16 ounces avoirdupois.
    Production guarantee (per acre)--The number of pounds (whole in-
shell walnuts), determined by multiplying the approved 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 12.

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) 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 that have been combined will be 
refunded to you.
    (c) All optional units you selected for the crop year must be 
identified on the acreage report for that crop year.
    (d) The following requirements must be met for each optional 
unit and may not be waived by written agreement:
    (1) You must have provided records by the production reporting 
date, which can be independently verified, of 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 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 walnuts 
in the county insured under this policy unless the Special 
Provisions provide different price elections by variety or varietal 
group, in which case you may select one price election for each 
walnut variety or varietal group designated in the Special 
Provisions. The price elections you choose for each variety or 
varietal group must have the same percentage relationship to the 
maximum price offered by us for each variety or varietal group. For 
example, if you choose 100 percent of the maximum price election for 
a specific variety or varietal group, you must also choose 100 
percent of the maximum price election for all other varieties or 
varietal groups.
    (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), by 
variety or varietal group if applicable:
    (1) Any damage, removal of trees, 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 number of bearing trees on insurable and uninsurable 
acreage;
    (3) The age of the trees and the planting pattern;
    (4) For the first year of insurance for acreage interplanted 
with another perennial crop, and anytime the planting pattern of 
such acreage is changed, the age of the crop that is interplanted 
with the walnuts, and type if applicable, and the planting pattern; 
and
    (5) Any other information that we request in order to establish 
your approved yield.
    We will reduce the yield used to establish your production 
guarantee as necessary, based on our estimate of the effect of the 
following: interplanted perennial crop; removal of trees; damage; 
change in practices and any other circumstance on the yield 
potential of the insured crop. If you fail to notify us of any 
circumstance that may reduce your yields from previous levels, we 
will reduce your production guarantee as necessary at any time we 
become aware of the circumstances.

4. Contract Changes

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

6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the 
commercially grown English Walnuts (excluding black walnuts) 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 on tree varieties that:

[[Page 20092]]

    (1) Were commercially available when the trees were set out;
    (2) Are adapted to the area; and
    (3) Are grown on a root stock that is adapted to the area;
    (c) That are grown in an orchard that, if inspected, are 
considered acceptable by us;
    (d) On acreage where at least 90 percent of the trees have 
reached at least the ninth growing season after being set out, 
unless we agree in writing to insure trees not meeting this 
requirement; and
    (e) That are in a unit that consists of at least five acres, 
unless we agree in writing to insure a smaller unit.

7. Insurable Acreage

    In lieu of the provisions in section 9 (Insurable Acreage) of 
the Basic Provisions (Sec. 457.8), that prohibit insurance attaching 
to a crop planted with another crop, walnuts interplanted with 
another perennial crop are insurable unless we inspect the acreage 
and determine that it does not meet the requirements contained in 
your policy.

8. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins on February 1 of each crop year, except that 
for the year of application, if your application is received after 
January 22, but prior to February 1, 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 orchard.
    (2) The calendar date for the end of the insurance period for 
each crop year is November 15.
    (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. Acreage acquired after the acreage reporting date will not 
be insured.
    (2) If you relinquish your insurable share on any insurable 
acreage of walnuts 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.

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, unless weeds and undergrowth have not been controlled 
or pruning debris has not been removed from the orchard;
    (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 irrigation water supply, if caused by an insured 
peril that occurs during the insurance period.
    (b) In addition to the causes of loss excluded in section 12 
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not 
insure against any damage or loss of production due to the inability 
to market the walnuts for any reason other than actual physical 
damage to the walnuts from an insurable cause 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.

10. 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), if 
you intend to claim an indemnity on any unit, you must notify us 
prior to the beginning of harvest so that we may inspect the damaged 
production. You must not sell or dispose of the damaged crop until 
after we have given you written consent to do so. If you fail to 
meet the requirements of this section, all such production will be 
considered undamaged and included as production to count.

11. 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 units, we will combine all optional units 
for which such production records were not provided; or
    (2) For any basic units, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for the units.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the insured acreage by the respective production 
guarantee;
    (2) Multiplying each result in section 11(b)(1) by the 
respective price election for each variety or varietal group;
    (3) Totaling the results in section 11(b)(2);
    (4) Multiplying the total production to be counted of each 
variety or varietal group, if applicable, (see section 11(c)) by the 
respective price election;
    (5) Totaling the results 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 (whole in-shell pounds) 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) That is damaged solely by uninsured causes; or
    (C) For which you fail to provide acceptable production records;
    (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 
may defer the claim only 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 in 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.
    (d) Mature walnut production damaged due to an insurable cause 
of loss which occurs within the insurance period may be adjusted for 
quality based on an inspection by the Dried Fruit Association or as 
determined by us. Walnut production that has mold damage greater 
than 8 percent, based on the net delivered weight, will be reduced 
by the factor contained in the Special Provisions. Walnut production 
that has mold damage greater than 30 percent, based on the net 
delivered weight, will not be considered as production to count 
unless such production is sold. If such production is sold, the 
total amount received for the production will be divided by the 
maximum available price election to establish the amount of 
production to count.

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

[[Page 20093]]

accordance with the policy and written agreement provisions.

    Signed in Washington, D.C., on April 17, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-10676 Filed 4-24-97; 8:45 am]
BILLING CODE 3410-FA-P