[Federal Register Volume 62, Number 125 (Monday, June 30, 1997)]
[Notices]
[Pages 35118-35145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16911]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
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  Federal Register / Vol. 62, No. 125 / Monday, June 30, 1997 / 
Notices  

[[Page 35118]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation


Crop Revenue Coverage

ACTION: Notice of availability.

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SUMMARY: In accordance with section 508(h) of the Federal Crop 
Insurance Act (Act), the Federal Crop Insurance Corporation (FCIC) 
Board of Directors (Board) approves for reinsurance and subsidy the 
insurance of cotton, grain sorghum and spring wheat in select states 
and counties under the Crop Revenue Coverage (CRC) plan of insurance. 
This notice is intended to inform eligible producers and the private 
insurance industry of the availability of the CRC plan of insurance for 
cotton, grain sorghum, and spring wheat and their terms and conditions.

FOR FURTHER INFORMATION CONTACT: Timothy Hoffmann, Director, Product 
Development Division, Federal Crop Insurance Corporation, United States 
Department of Agriculture, 9435 Holmes Road, Kansas City, Missouri, 
64131, telephone, (816) 926-7387.

SUPPLEMENTARY INFORMATION: Section 508(h) of the Act allows for the 
submission of a policy to FCIC's Board and authorizes the Board to 
review and, if the Board finds that the interests of producers are 
adequately protected and that any premiums charged to the producers are 
actuarially appropriate, approve the policy for reinsurance and 
subsidy, in accordance with section 508(e) of the Act.
    In accordance with the Act, the Board approved a program of 
insurance known as CRC, originally submitted by American Agrisurance, a 
managing general agency for Redland Insurance Company.
    The CRC program has been approved for reinsurance. CRC is designed 
to protect producers against both price and yield losses. CRC provides 
a harvest revenue guarantee that pays losses from the established yield 
coverage at a higher price if the harvest time price is higher than the 
spring price.
    The CRC program is available for cotton, grain sorghum and spring 
wheat for the 1997 crop year in selected states and counties. For the 
1996 crop year, the CRC program was available for corn and soybeans in 
all counties in Iowa and Nebraska and was expanded last fall to include 
wheat in Kansas, Michigan, Nebraska, South Dakota, Texas, Washington, 
and select counties in Montana. FCIC herewith gives notice of the 
availability of the CRC programs of insurance for cotton, grain sorghum 
and spring wheat for use by private sector insurance companies for the 
1997 crop year.
    Upon a written request, FCIC will provide the CRC underwriting 
rules, rate factors and forms for cotton, grain sorghum, and spring 
wheat. FCIC will also make available the terms and conditions of the 
CRC reinsurance agreement. Requests for such information should be sent 
to Timothy Hoffmann, Director, Product Development Division, Federal 
Crop Insurance Corporation at the above stated address.
    Notice: The terms and provisions for the CRC cotton, grain sorghum 
and spring wheat programs of insurance are as follows.

Crop Revenue Coverage Insurance Policy

(This is a continuous policy for crop year 1997-1998. Refer to section 
2)
    This policy is reinsured by the Federal Crop Insurance Corporation 
(FCIC) under the authority of section 508(h) of the Federal Crop 
Insurance Act, as amended (7 U.S.C. 1508 (h)). The provisions of the 
policy may not be waived or varied in anyway by the crop insurance 
agent or any other agent or employee of the Company. In the event we 
cannot pay your loss, your claim will be settled in accordance with the 
provisions of this policy and paid by the FCIC. No state guarantee fund 
will be liable to pay your loss. Throughout this policy, ``you'' and 
``your'' refer to the named insured shown on the accepted application 
and ``we'', ``us'' and ``our'' refer to the Company. Unless the context 
indicates otherwise, use of the plural form of a word includes the 
singular and use of the singular form of the word includes the plural.
    Agreement to Insure: In return for the payment of the premium, and 
subject to all of the provisions of this policy, we agree with you to 
provide the insurance as stated in this policy. If a conflict exists 
between the Basic Provisions contained herein and the specific Crop 
Provisions, the Crop Provisions will control.

Basic Provisions

Terms And Conditions
    1. Definitions. As used in this policy these terms are defined as 
follows:
    (a) Abandon--Failure to continue providing sufficient care (For 
example, cultivation, irrigation, fertilization, application of 
chemicals, etc., consistent with good farming practices) for the 
insured crop to make normal progress toward harvest or maturity, or 
failure to harvest in a timely manner if harvest is practicable.
    (b) Acreage report--A report required by section 6 of these Basic 
Provisions which contains, in addition to other required information, 
your report of your share of all acreage of an insured crop in the 
county whether insurable or not insurable. This report must be filed 
not later than the final acreage reporting date contained in the 
Special Provisions for the county for the insured crop.
    (c) Acreage reporting date--The date (contained in the Special 
Provisions) by which you are required to submit your acreage reports.
    (d) Another use, notice of--The written notice required when you 
wish to put acreage to another use (see section 14 of these Basic 
Provisions).
    (e) Application--The form required to be completed by you and 
accepted by us before insurance coverage will commence. This form must 
be completed and filed in your agent's office not later than the sales 
closing date of the initial insurance year for each crop for which 
insurance coverage is requested. If a break in insurance coverage 
occurs, a new application must be filed.
    (f) Approved yield--The average amount of production per acre 
obtained under the Actual Production History Program (7 CFR part 400, 
subpart G) using production records of the insured or yields assigned 
by FCIC. At least four crop years of yields must be averaged to obtain 
the approved yield.
    (g) Assignment of indemnity--A transfer of policy rights, made on 
our

[[Page 35119]]

form, and effective when approved by us. It is the arrangement whereby 
you assign your right to an indemnity payment to any party of your 
choice for the crop year.
    (h) CRC rate--A premium rate, as set forth in the County Actuarial 
Table, used to calculate the risk associated with producing a level of 
production.
    (i) CRC low price factor--A premium factor, as set forth in the 
County Actuarial Table, used to calculate the risk associated with a 
decrease in the Harvest Price relative to the Base Price.
    (j) CRC high price factor--A premium factor, as set forth in the 
County Actuarial Table, used to calculate the risk associated with an 
increase in the Harvest Price relative to the Base Price.
    (k) Cancellation date--The calendar date specified in each Crop 
Provision on which that Crop Provision will automatically renew unless 
canceled in writing by either you or us.
    (l) Claim for indemnity--A claim made on our form by you for damage 
or loss to an insured crop and submitted to us not later than 60 days 
after the end of the insurance period (see section 14 of these Basic 
Provisions).
    (m) Consent--Approval in writing by us allowing you to take a 
specific action.
    (n) Contract--A contract for insurance between you and us 
consisting of the accepted Application, these Basic Provisions, the 
Crop Provisions, the Special Provisions, the County Actuarial Table for 
the insured crops, and the applicable regulations as published at 7 CFR 
part 400.
    (o) Contract change date--The calendar date by which we make any 
contract (policy language or program date) changes available for 
inspection in the agent's office (see section 4 of these Basic 
Provisions).
    (p) County--The county or other political subdivision of a state 
shown on your accepted application and includes acreage in a field that 
extends into an adjoining county if the county boundary is not readily 
discernible.
    (q) County actuarial table--The forms and related material for the 
crop year which show coverage levels, premium rates, practices, 
insurable acreage, and other related information regarding crop 
insurance in the county.
    (r) Coverage--The insurance provided by this policy against an 
insured loss of revenue by unit as shown on your summary of coverage.
    (s) Coverage begins, date--The calendar date insurance begins on 
the insured crop, as contained in the Crop Provisions, or the date 
after planting is started on the unit (see section 11 of these Basic 
Provisions).
    (t) Crop provisions--The part of the policy that contains the 
specific provisions of insurance for each insured crop.
    (u) Crop year--The period within which the insured crop is normally 
grown and designated by the calendar year in which the insured crop is 
normally harvested.
    (v) Damage--Injury, deterioration, or loss of revenue of the 
insured crop due to insured or uninsured causes.
    (w) Damage, notice of--A written notice required to be filed in 
your agent's office whenever you initially discover the insured crop 
has been damaged to the extent that a loss is probable (see section 14 
of these Basic Provisions).
    (x) Delinquent account--Any account you have with us in which 
premiums, or interest on those premiums is not paid by the termination 
date specified in the crop provisions, or any other amounts due us, 
such as indemnities found not to have been earned, which are not paid 
within 30 days of our mailing or other delivery of notification to you 
of the amount due.
    (y) Earliest planting date--The earliest date established for 
planting the insured crop and qualifying for a replant payment if 
applicable (see Special Provisions and section 13 of these Basic 
Provisions).
    (z) End of insurance period, date of--The date upon which your crop 
insurance coverage ceases for the crop year (see Crop Provisions and 
section 11 of these Basic Provisions).
    (aa) Final guarantee--The guaranteed dollar amount per acre of the 
insured crop on the unit.
    (bb) FSA--The Farm Service Agency of the United States Department 
of Agriculture or a successor agency (formerly the Agricultural 
Stabilization and Conservation Service).
    (cc) FSA farm serial number--The number assigned to the farm by the 
FSA county committee.
    (dd) Insured--The named person as shown on the Application accepted 
by us. This term does not extend to any other person having a share or 
interest in the crop (for example, a partnership, landlord, or any 
other person) unless specifically indicated on the accepted application 
(see definition of ``Person'' in section 1(ii) of these Basic 
Provisions).
    (ee) Insured crop--The crop defined under these Basic Provisions 
and the applicable Crop Provisions as shown on the application accepted 
by us.
    (ff) Loss, notice of--The notice required to be given by you not 
later than 72 hours after certain occurrences or 15 days after the end 
of the insurance period (see section 14 of the Basic Provisions).
    (gg) MPCI--Multiple peril crop insurance program, a program of 
insurance offered under the Federal Crop Insurance Act, as amended (7 
U.S.C. 1501 et seq.) (Act) and implemented in 7 CFR part 400.
    (hh) Negligence--The failure to use such care as a reasonably 
prudent and careful person would use under similar circumstances.
    (ii) Person--An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a State 
or a political subdivision or agency of a State.
    (jj) Policy--(see ``Contract'')
    (kk) Practical to replant--Our determination, after loss or damage 
to the insured crop, based on factors, including, but not limited to 
moisture availability, condition of the field, time to crop maturity, 
and marketing, 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 end of 
the late planting period unless replanting is generally occurring in 
the area.
    (ll) Premium billing date--The earliest date upon which you will be 
billed for insurance coverage based on your acreage report and which 
generally falls at or near harvest time.
    (mm) Production report--A written record showing your annual 
production and used by us to determine your yield for insurance 
purposes (see section 3). The report contains previous years yield 
information including planted acreage and harvested production. This 
report must be supported by written verifiable records from a 
warehouseman or buyer of the insured crop or by measurement of farm 
stored production, or by other records of production approved by us on 
an individual case basis.
    (nn) Reporting date--The acreage reporting date (contained in the 
Special Provisions) by which you are required to report all your 
insurable acreage in the county in which you have a share and your 
share at the time insurance attaches, and any acreage in which you have 
a share which is not insured (see section 9 of these Basic Provisions).
    (oo) Representative sample--Portions of the insured crop or insured 
crop residue which are required to remain in the field for examination 
and review by our loss adjusters when making a crop appraisal if 
required by the crop provisions. The size of the samples are further 
specified in the crop provisions.

[[Page 35120]]

    (pp) Sales closing date--The date contained in the Special 
Provisions which is the final date when an application may be filed. 
This is the last date for you to make changes in your crop insurance 
coverage for the crop year.
    (qq) Section (for the purposes of unit structure)--A unit of 
measure under a rectangular survey system describing a tract of land 
usually one mile square and usually containing approximately 640 acres.
    (rr) Share--Your percentage of interest in the insured crop as an 
owner, operator, or tenant at the time insurance attaches. However, 
only for the purpose of determining the amount of indemnity, your share 
will not exceed your share at the earlier of the time of loss, or the 
beginning of harvest. Unless the accepted application clearly indicates 
that insurance is requested for a partnership or joint venture, or is 
intended to cover the landlord's, or tenant's share of the crop (see 
section 10(b)), insurance will cover only the share of the person 
completing the application. The share will not extend to any other 
person having an interest in the crop except as may otherwise be 
specifically allowed in this policy. We may consider any acreage or 
interest reported by or for your spouse, child or any member of your 
household to be included in your share. A lease containing provisions 
for both a minimum payment (such as a specified amount of cash , 
bushels, pounds, etc.,) and a crop share will be considered a crop 
share lease. A lease containing provisions for either a minimum payment 
or a crop share will be considered a cash lease.
    (ss) Special provisions--The part of the policy that contains 
specific provisions of insurance for each insured crop that may vary by 
geographic area.
    (tt) State--The state shown on your accepted application.
    (uu) Summary of coverage--Our statement to you, by unit and 
specifying the insured crop based upon the information provided in your 
acreage report.
    (vv) Tenant--A person who rents land from another person for a 
share of the crop or a share of the proceeds of the crop (see the 
definition of ``Share'' in section 1(rr) of these Basic Provisions).
    (ww) Termination date--The calendar date contained in the Crop 
Provisions upon which your policy ceases for nonpayment of premium or 
any other amount due us under the policy.
    (xx) Unit--All insurable acreage of the insured crop in the county 
on the date coverage begins for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another specific 
entity on a share basis.
    (For example, if, in addition to the land you own, you rent land 
from five landlords, three on a crop share basis and two on a cash 
basis, you would be entitled to four units, one for each crop share 
lease and one for the two cash leases and the land you own). Land 
rented for cash, a fixed commodity payment, or a consideration other 
than a share in the insured crop on such land will be considered as 
owned by the lessee (see section 1(rr) ``Share''). Land which would 
otherwise be one unit may, in certain instances, be divided according 
to guidelines contained in the applicable crop provisions. Units will 
be determined when the acreage is reported but may be adjusted or 
combined to reflect the actual unit structure when adjusting a loss. 
However, no further division may be made after the acreage report date 
for any reason.
    (yy) USDA--The United States Department of Agriculture.
    2. Life Of Policy, Cancellation, And Termination. (a) This 
continuous policy will be in effect for the 1997 and 1998 crop years 
only. After acceptance of the application, you may not cancel this 
policy the initial crop year. Thereafter, the policy will continue in 
force for the succeeding crop year unless canceled or terminated as 
provided below.
    (b) Either you or we may cancel this policy after the initial crop 
year by providing written notice to the other on or before the 
cancellation date shown in the Crop Provisions.
    (c) All policies issued by us under the authority of the Act will 
terminate as of the coincidental or next termination date contained in 
these policies if any amount due us is not paid on or before the 
termination date for the crop on which the amount is due. Such unpaid 
debts will also make you ineligible for any crop insurance provided 
under the Act until payment is made. If we deduct any amount due us 
from an indemnity, the date of payment for the purpose of section 2(c) 
will be the date you sign the properly completed claim for indemnity.
    (d) If you die, disappear, or are judicially declared incompetent, 
or if you are an entity other than an individual and such entity is 
dissolved, the policy will terminate as of the date of death, judicial 
declaration, or dissolution. If such event occurs after coverage begins 
for any crop year, the policy will continue in force through the crop 
year and terminate at the end of the insurance period and any indemnity 
will be paid to the person or persons determined to be beneficially 
entitled to the indemnity. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    (e) Your policy will terminate if no premium is earned for 3 
consecutive years.
    (f) The cancellation and termination dates are contained in the 
Crop Provisions.
    (g) You are not eligible to participate in the Crop Revenue 
Coverage program if you are identified in the Non-standard 
Classification System or have elected the Catastrophic Risk Protection 
endorsement.
    (h) If you execute a High Risk Land Exclusion Option for a Crop 
Revenue Coverage Policy, you may elect to insure the ``high risk land'' 
under a Catastrophic Risk Protection endorsement. If both policies are 
in force, the acreage of the crop covered under the Crop Revenue 
Coverage policy and the acreage covered under the Catastrophic Risk 
Protection endorsement will be considered as separate crops for 
insurance purposes including the payment of administrative fees.
    3. Coverage Level, Insurance Guarantee, Prices For Determining 
Indemnity. (a) For each crop year the coverage level by which an 
indemnity will be determined for each unit will be that shown on your 
summary of coverage. The information necessary to determine those 
amounts will be contained in the Special Provisions or in the County 
Actuarial Table.
    (b) You may select only one coverage level offered by us for each 
insured crop. By written notice to us you may change the coverage level 
for the following crop year not later than the sales closing date for 
the affected insured crop. If you do not change the coverage level for 
the succeeding crop year you will be assigned the same coverage level 
that was in effect the previous crop year.
    (c) This policy is an alternative to the Multiple Peril Crop 
Insurance program and satisfies the requirements of section 508(b)(7) 
of the Act.
    (d) You must report production to us for the previous crop year by 
the earlier of the acreage reporting date or 45 calendar days after the 
cancellation date. If you do not provide the required production 
report, we will assign a yield for the previous crop year. The yield 
assigned by us will not be more than 75

[[Page 35121]]

percent of the yield used by us to determine your coverage for the 
previous crop year. The production report or assigned yield will be 
used to compute your approved yield for the purpose of determining your 
coverage for the current crop year. If you have filed a claim for any 
crop year, the production used to determine the indemnity payment will 
be the production report for that year.
    (e) We may revise your Final Guarantee for any farm unit, and 
revise any indemnity paid based on that Final Guarantee, if we find 
that your production report under section 3(d) above:
    (1) is not supported by written verifiable records (see section 
1(mm) ``Production report''); or
    (2) fails to accurately report actual production.
    4. Contract Changes. We may change the coverage available under 
this policy for the second year. Your crop insurance agent will have 
changes in policy provisions and program dates by the contract change 
date contained in the Crop Provisions. Your crop insurance agent will 
have changes in maximum amounts of insurance and premium rates 15 days 
before the cancellation date contained in the Crop Provisions. In 
addition, you will be notified, in writing, of these changes. Such 
notification will be made at least 30 days prior to the cancellation 
date of the insured crop for policy and program date changes, and 15 
days prior to the cancellation date of the insured crop for changes in 
the maximum amounts of insurance and premium rates.
    5. Liberalization. If we adopt any revisions which would broaden 
the coverage under this policy subsequent to the contract change date 
without additional premium, the broadened coverage will apply.
    6. Report Of Acreage. (a) An annual acreage report must be 
submitted to us on our form for each insured crop in the county on or 
before the acreage reporting date shown in the Special Provisions. This 
report must include the following information, if applicable:
    (1) All acreage of the crop (insurable and not insured) in which 
you have a share;
    (2) Your share at the time coverage begins;
    (3) The practice;
    (4) The type; and
    (5) The date the insured crop was planted.
    (b) If you do not have a share in any insured crop in the county 
for the crop year, you must submit an acreage report so indicating.
    (c) Because incorrect reporting on the acreage report may have the 
effect of changing your premium and any indemnity which may be due, you 
may not revise this report after the acreage reporting date without our 
consent.
    (d) We may elect to determine all premiums and indemnities based on 
the information you submit on the acreage report or upon the factual 
circumstances which we determine to have actually existed.
    (e) If you do not submit an acreage report by the acreage reporting 
date, or if you fail to report all units, we may elect to determine, by 
unit, the insurable crop acreage, share, type and practice or deny 
liability on any unit.
    (f) If the information reported by you on the acreage report for a 
unit results in a lower premium than the actual premium determined to 
be due on the basis of the share, acreage, practice, type or other 
material information determined to actually exist, the Final Guarantee 
on the unit will be reduced proportionately. In the event that acreage 
is under-reported, all production or value from insurable acreage for 
the unit, whether or not reported as insurable, will be considered 
production or value to count in determining the indemnity.
    (g) Errors in reporting units may be corrected by us to reduce our 
liability and to conform to applicable unit division guidelines at the 
time of adjusting a loss.
    7. Annual Premium. (a) The annual premium is earned and payable at 
the time coverage begins. You will be billed for premium due not 
earlier than the billing date specified in the Special Provisions. The 
premium due, plus any accrued interest, will be considered delinquent 
if any amount due us is not paid on or before the termination date 
specified in the Crop Provisions.
    (b) Any amount due us under this policy will be deducted from any 
replant payment or indemnity due you under the provisions of this 
policy.
    (c) The annual premium amount is determined by:
    (1) Multiplying the Approved Yield times the coverage level, times 
the Base Rate specified in the County Actuarial Table, times the Base 
Price as defined in the County Actuarial Table;
    (2) Multiplying the approved yield times the coverage level, times 
the CRC Rate specified in the County Actuarial Table, times the CRC Low 
Price Factor specified in the County Actuarial Table;
    (3) Multiplying the Approved Yield times the coverage level, times 
the Base Rate specified in the County Actuarial Table, times the CRC 
High Price Factor specified in the County Actuarial Table;
    (4) Adding items (1), (2), and (3) together;
    (5) Multiplying the result of item (4) above times the acres 
insured, times your share at the time coverage begins, and as 
applicable, times any Rate Map Adjustment Factor; Rate Class Option 
Factor and; Option Factor specified in the County Actuarial Table;
    (6) Multiplying the Approved Yield times the coverage level, times 
the Base Rate specified in the County Actuarial Table, times the MPCI 
Market Price Election, times the insured acres, times your share at the 
time coverage begins, and as applicable, times any Rate Map Adjustment 
Factor; Rate Class Option Factor and; Option Factor specified in the 
County Actuarial Table, and times the applicable producer subsidy 
percentage to calculate the appropriate amount of subsidy. The producer 
subsidy percentage is based upon the coverage level as follows:

75%=0.235
70%=0.319
65%=0.417
60%=0.412
55%=0.503
50%=0.600

    (7) Subtracting item (6) from item (5) above to determine the 
annual producer paid premium.
    8. Insured Crop. (a) The insured crop will be that shown on your 
accepted application and as specified in the Crop Provisions and must 
be grown on insurable acreage.
    (b) A crop which will NOT be insured will include, but will not be 
limited to, any crop:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates and Final Guarantee 
have been established;
    (2) Of a type, class or variety established as not adapted to the 
area or excluded by the Special Provisions;
    (3) That is a volunteer crop;
    (4) That is a second crop following the same crop (insured or not 
insured) harvested in the same crop year unless specifically permitted 
by the Crop Provisions or the Special Provisions;
    (5) Which is planted for the development or production of hybrid 
seed or for experimental purposes, unless permitted by the Crop 
Provisions or unless we agree, in writing, to insure such crop; or
    (6) Used for wildlife protection or management.
    9. Insurable Acreage. (a) Acreage planted to the insured crop in 
which you have a share is insurable unless it is acreage:
    (1) On which a crop has not been planted or harvested in at least 
one of

[[Page 35122]]

the three previous crop years, unless FSA classifies such acreage as 
cropland;
    (2) Which has been strip-mined, unless we agree in writing to 
insure such acreage;
    (3) On which the insured crop is damaged and it is practical to 
replant the insured crop, but the insured crop is not replanted;
    (4) Which is planted with a crop other than the insured crop, 
unless allowed by the Crop Provisions; or
    (5) Which is otherwise restricted by the Crop Provisions or Special 
Provisions.
    (b) If insurance is provided for an irrigated practice, you must 
report as irrigated only that acreage for which you have adequate 
facilities and water, at the time coverage begins, to carry out a good 
irrigation practice.
    (c) If acreage is irrigated and we do not provide a premium rate 
for an irrigated practice, you may either report and insure the 
irrigated acreage as ``nonirrigated,'' or report the irrigated acreage 
as not insured.
    (d) We may restrict the amount of acreage which we will insure to 
the amount allowed under any acreage limitation program established by 
the USDA if we notify you of that restriction prior to the sales 
closing date.
    10. Share Insured. (a) You may only insure your share as defined in 
section 1(rr) of these Basic Provisions.
    (b) You, as a landlord (or tenant), may insure your tenant's (or 
landlord's) share of the crop if evidence of the other party's approval 
of that insurance is demonstrated (Lease, Power of Attorney, etc.). The 
respective shares must be clearly set out on the acreage report and a 
copy of the other party's approval must be retained by us.
    11. Insurance Period. Coverage begins on each unit or part of a 
unit, the later of: the date you submit your application, when the 
insured crop is planted, or on the calendar date for the beginning of 
the insurance period if specified in the Crop Provisions, and ends at 
the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit;
    (c) Final adjustment of a loss on a unit;
    (d) The calendar date for the end of the insurance period contained 
in the Crop Provisions;
    (e) Abandonment of the crop on the unit; or
    (f) As otherwise specified in the Crop Provisions.
    12. Causes Of Loss. The insurance provided is against only 
unavoidable loss of revenue directly caused by specific causes of loss 
contained in the Crop Provisions. All other causes of loss, including 
but not limited to the following, are NOT covered:
    (a) Negligence, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (b) The failure to follow recognized good farming practices for the 
insured crop;
    (c) Water contained by any governmental, public, or private dam or 
reservoir project;
    (d) Failure or breakdown of irrigation equipment or facilities; or
    (e) Failure to carry out a good irrigation practice for the insured 
crop if applicable.
    13. Replanting Payment. (a) If allowed by the Crop Provisions, a 
replanting payment may be made on an insured crop replanted after we 
have given consent and the acreage replanted is at least the lesser of 
20 acres or 20 percent of the insured acreage for the unit (as 
determined on the final planting date).
    (b) No replanting payment will be made on acreage:
    (1) On which our appraisal establishes that production will exceed 
the level set by the Crop Provisions;
    (2) Initially planted prior to the date established by the Special 
Provisions; or
    (3) On which one replanting payment has already been allowed for 
the crop year.
    (c) The replanting payment per acre will be your actual cost for 
replanting, but will not exceed the amount determined in accordance 
with the Crop Provisions.
    (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.
    (e) No replanting payment will be paid for replanting any crop if 
we determine it is not practical to replant (see section 1(kk)).
    14. Duties In The Event Of Damage Or Loss. Your Duties:
    (a) In case of damage or loss of revenue to any insured crop you 
must:
    (1) Protect the crop from further damage by providing sufficient 
care;
    (2) Give us notice within 72 hours of your initial discovery of 
damage (but not later than 15 days after the end of the insurance 
period);
    (3) Leave representative samples intact for each field of the 
damaged unit as may be required by the Crop Provisions; and
    (4) Give us notice of your expected revenue loss not later than 45 
days after the date the Harvest Price is published.
    (b) You must obtain consent from us before, and notify us after 
you:
    (1) Destroy any of the insured crop which is not harvested;
    (2) Put the insured crop to an alternative use;
    (3) Put the acreage to another use; or
    (4) Abandon any portion of the insured crop.
    We will not give such consent if it is practical to replant the 
crop or until we have made an appraisal of the potential production of 
the crop.
    (c) In addition to complying with all other notice requirements, 
you must submit a claim for indemnity declaring the amount of your loss 
not later than 60 days after the end of the insurance period. This 
claim must include all the information we require to settle the claim.
    (d) Upon our request, you must:
    (1) Provide a complete harvesting and marketing record of each 
insured crop by unit including separate records showing the same 
information for production from any acreage not insured; and
    (2) Submit to examination under oath.
    (e) You must establish the total production for the insured crop on 
the unit and that any loss of production has been directly caused by 
one or more of the insured causes, specified in the Crop Provisions, 
during the insurance period.
    (f) All notices required in section 14 of these Basic Provisions 
that must be received by us within 72 hours may be made by telephone or 
in person to your crop insurance agent but must be confirmed in writing 
within 15 days.
    Our Duties:
    (a) If you have complied with all the policy provisions, we will 
pay your loss within 30 days after:
    (1) We reach agreement with you; or
    (2) The entry of a final judgment by a court of competent 
jurisdiction.
    (b) In the event we are unable to pay your loss within 30 days, we 
will give you notice of our intentions within the 30 day period.
    (c) We may defer the adjustment of a loss until the amount of loss 
can be accurately determined. We will not pay for additional damage 
resulting from your failure to provide sufficient care for the crop 
during the deferral period.
    (d) We recognize and apply the MPCI loss adjustment procedures 
established or approved by FCIC to determine production to count.
    15. Production Included In Determining Indemnities. (a) The total 
production to be counted for a unit will include all production 
determined in accordance with the Crop Provisions.
    (b) The amount of production of any unharvested insured crop may be

[[Page 35123]]

determined on the basis of our field appraisals conducted after the end 
of the insurance period.
    16. Crops As Payment. You must not abandon any crop to us. We will 
not accept any crop as compensation for payments due us.
    17. Arbitration. If you and we fail to agree on any factual 
determination, disagreement will be resolved in accordance with the 
rules of the American Arbitration Association. Failure to agree with 
any factual determination made by FCIC must be resolved pursuant to 7 
CFR part 11.
    18. Access To Insured Crop And Record Retention. (a) We reserve the 
right to examine the insured crop as often as we reasonably require.
    (b) For three years after the end of the crop year, you must 
retain, and provide upon our request, complete records of the 
harvesting, storage, shipment, sale, or other disposition of all the 
insured crop produced on each unit. This requirement also applies to 
the records used to establish the basis for the production report for 
each unit. You must also upon our request, provide separate records 
showing the same information for production from any acreage not 
insured. We may extend the record retention period beyond three years 
by notifying you of such extension in writing. Your failure to keep and 
maintain such records may, at our option, result in:
    (1) Cancellation of the policy;
    (2) Assignment of production to units by us; or
    (3) A determination that no indemnity is due.
    (c) Any person designated by us will, at any time during the record 
retention period, have access:
    (1) To any records relating to this insurance at any location where 
such records may be found or maintained; and
    (2) To the farm.
    (d) By applying for insurance under the Act or by continuing 
insurance previously applied for, you authorize us, or any person 
acting for us, to obtain records relating to the insured crop from any 
person who may have custody of those records including, but not limited 
to, county FSA offices, banks, warehouses, gins, cooperatives, 
marketing associations, accountants, etc. You must assist us in 
obtaining all records which we request from third parties.
    19. Other Insurance. (a) Other Like Insurance.
    You must not obtain any other crop insurance issued under the 
authority of the Act on your share of the insured crop. If we determine 
that more than one policy on your share is intentional, you may be 
subject to the fraud provisions under this policy. If we determine that 
the violation was not intentional, the policy with the earliest date of 
application will be in force and all other policies will be void. 
Nothing in section 19(a) of these Basic Provisions prevents you from 
obtaining other insurance not issued under the Act.
    (b) Other Insurance Against Fire.
    If you have other insurance, whether valid or not, against damage 
to the insured crop by fire during the insurance period, we will be 
liable for loss for the smaller of:
    (1) The amount of indemnity determined pursuant to this policy 
without regard to any other insurance; or
    (2) The amount by which the loss is determined to exceed the 
indemnity paid or payable under such other insurance.
    For the purpose of section 19(b)(2) of these Basic Provisions, the 
amount of loss will be the reduction in revenue of the insured crop on 
the unit involved determined pursuant to this policy.
    20. Conformity To Food Security Act. Although your violation of a 
number of federal statutes, including the Act, may cause cancellation, 
termination, or voidance of your insurance contract, you should be 
aware that your policy will be canceled if you are determined to be 
ineligible to receive benefits under the Act, due to violation of the 
Controlled Substance Provision (title XVII) of the Food Security Act of 
1985 (Pub. L. 99-198) and the regulations promulgated under the Act by 
the United States Department of Agriculture. Your insurance policy will 
be canceled if you are determined, by the appropriate United States 
Government Agency, to be in violation of these provisions. We will 
recover any and all monies paid to you or received by you and your 
premium will be refunded less a reasonable amount for expenses and 
handling not to exceed 20 percent of the premium paid.
    21. Amounts Due Us. (a) Interest will accrue at the rate of 1.25 
percent simple interest per calendar month, or any part thereof, on any 
unpaid amount due us. For the purpose of premium amounts due us, 
interest will start on the first day of the month following the premium 
billing date specified in the Special Provisions.
    (b) For the purpose of any other amounts due us, such as repayment 
of indemnities found not to have been earned, interest will start on 
the date that notice is issued to you for the collection of the 
unearned amount. Amounts found due under section 21(b) of these Basic 
Provisions will not be charged interest if payment is made within 30 
days of issuance of the notice by us. The amount will be considered 
delinquent if not paid within 30 days of the date the notice is issued 
by us.
    (c) All amounts paid will be applied first to expenses of 
collection (see section 21(d) of these Basic Provisions), if any, 
second, to the reduction of accrued interest, and then to the principal 
balance.
    (d) If we determine that it is necessary to contract with a 
collection agency or to employ an attorney to assist in collection, you 
agree to pay all of the expenses of collection. Those expenses will be 
paid before the application of any amounts to interest or principal.
    22. Legal Action Against Us. You may not bring legal action against 
us unless you have complied with all of the policy provisions.
    23. Payment And Interest Limitations. We will pay simple interest 
computed on the net indemnity ultimately found to be due by us or by a 
final judgment of a court of competent jurisdiction, from and including 
the 61st day after the date you sign, date, and submit to us the 
properly completed claim on our form. Interest will be paid only if the 
reason for our failure to timely pay is NOT due to your failure to 
provide information or other material necessary for the computation or 
payment of the indemnity. The interest rate will be that established by 
the Secretary of the Treasury under section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611), and published in the Federal Register 
semiannually on or about January 1 and July 1 of each year and may vary 
with each publication.
    24. Concealment, Misrepresentation Or Fraud. This policy will be 
void in the event you have falsely or fraudulently concealed either the 
fact that you are restricted from receiving benefits under the Act or 
that action is pending which may restrict your eligibility to receive 
such benefits. We will also void this policy if you or anyone assisting 
you has intentionally concealed or misrepresented any material fact 
relating to this or any other FCIC or FCIC reinsured policy. This 
voidance will not affect your obligation to pay premiums or waive any 
of our rights under this policy, including the right to collect any 
amount due us. The voidance will be effective as of the time coverage 
began for the crop year within which such act occurred.
    25. Transfer of Coverage and Right to Indemnity. If you transfer 
any part of your share during the crop year, you may transfer your 
coverage rights. The

[[Page 35124]]

transfer must be on our form and approved by us. Both you and the 
person to whom you transfer your interest are jointly and severally 
liable for the payment of the premium. The transferee has all rights 
and responsibilities under this policy consistent with the transferee's 
interest.
    26. Assignment of Indemnity. You may assign to another party your 
right to an indemnity for the crop year. The assignment must be on our 
form and will not be effective until approved in writing by us. The 
assignee will have the right to submit all loss notices and forms as 
required by the policy.
    27. Subrogation (Recovery Of Loss From A Third Party). Because you 
may be able to recover all or a part of your loss from someone other 
than us, you must do all you can to preserve this right. If we pay you 
for your loss, your right to recovery will, at our option, belong to 
us. If we recover more than we paid you plus our expenses, the excess 
will be paid to you.
    28. Descriptive Headings. The descriptive headings of the various 
policy provisions are formulated for convenience only and are not 
intended to affect the construction or meaning of any of the policy 
provisions.
    29. Notices. All notices required to be given by you must be in 
writing and received by your crop insurance agent within the designated 
time unless otherwise provided by the notice requirement. Notices 
required to be given immediately may be by telephone or in person and 
confirmed in writing. Time of the notice will be determined by the time 
of our receipt of the written notice. If the date by which you are 
required to submit a report or notice falls on Saturday, Sunday, or a 
Federal holiday, or, if your agent's office is, for any reason, not 
open for business on the date you are required to submit such notice or 
report, such notice or report must be submitted on the next business 
day. All notices and communications required to be sent by us to you 
will be mailed to the address contained in your records located with 
your crop insurance agent. You should advise us immediately of any 
change of address.

Crop Revenue Coverage

Cotton Crop Provisions

    This is a risk management program. This risk management tool may be 
reinsured under the authority provided by section 508 (h) of the 
Federal Crop Insurance Act. If a conflict exists among the Crop Revenue 
Coverage Basic Provisions, these Cotton Crop Provisions, and the 
Special Provisions, the Special Provisions will control these Cotton 
Crop Provisions and the Basic Provisions; and these Cotton Crop 
Provisions will control the Basic Provisions.
1. Definitions
    (a) Base price--Refer to the definition contained in the Commodity 
Exchange Endorsement--Cotton.
    (b) Calculated revenue--The production to count multiplied by the 
Harvest Price.
    (c) Cotton--Varieties identified as American Upland Cotton.
    (d) Days--Calendar days.
    (e) Final guarantee--The number of dollars guaranteed per acre 
determined to be the higher of the Minimum Guarantee or the Harvest 
Guarantee, where:
    (1) Minimum guarantee--The approved yield per acre, multiplied by 
the Base Price, multiplied by the coverage level percentage you elect.
    (2) Harvest guarantee--The approved yield per acre, multiplied by 
the Harvest Price, multiplied by the coverage level percentage you 
elect.
    (f) 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 Final Guarantee.
    (g) Good farming practices--The cultural practices generally in use 
in the county for the insured crop to make normal progress toward 
maturity and produce at least the yield used to determine the Final 
Guarantee and are those recognized by the Cooperative State Research, 
Education, and Extension Service as compatible with agronomic and 
weather conditions in the area.
    (h) Growth area--A geographic area designated by the Secretary of 
Agriculture for the purpose of reporting cotton prices.
    (i) Harvest--The removal of the seed cotton from the open cotton 
boll, or the severance of the open cotton boll from the stalk by either 
manual or mechanical means.
    (j) Harvest price--Refer to the definition contained in the 
Commodity Exchange Endorsement--Cotton.
    (k) 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.
    (l) 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 Final Guarantee on the irrigated acreage 
planted to the insured crop.
    (m) Late planted--Acreage planted to cotton during the late 
planting period.
    (n) Late planting period--The period that begins the day after the 
final planting date for the insured crop and ends 25 days after the 
final planting date.
    (o) Mature cotton--Cotton that can be harvested either manually or 
mechanically.
    (p) 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 which has been properly prepared for the 
planting method and production practice. Cotton must be planted in rows 
to be considered planted. Planting in any other manner will be 
considered as a failure to follow recognized good farming practices and 
any loss of production will not be insured unless otherwise provided by 
the Special Provisions to insure such crop. The yield conversion factor 
normally applied to non-irrigated skip-row cotton acreage will not be 
used if the land between the rows of cotton is planted to any other 
spring planted crop.
    (q) Practical to replant--In lieu of section 1 ``Practical to 
replant'' of the Basic Provisions, 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, condition 
of the field, time to crop maturity, and marketing window, 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 end of the late 
planting period unless replanting is generally occurring in the area.
    (r) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop 
due to an insured cause of loss that has prevented the majority of 
producers in the surrounding area from planting the same crop.
    (s) Prevented planting guarantee--The Prevented Planting Guarantee 
for such acreage will be that percentage of the Final Guarantee for 
timely planted acres as set forth in section 12(d).
    (t) Replanting--Performing the cultural practices necessary to 
replace the cotton seed, and replacing the seed in the insured acreage 
with the

[[Page 35125]]

expectation of growing a successful crop.
    (u) Skip-row--A planting pattern that:
    (1) Consists of alternating rows of cotton and fallow land or land 
planted to another crop the previous fall; and
    (2) Qualifies as a skip-row planting pattern as defined by the FSA 
or successor agency.
    (v) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the 
county.
2. Unit Division
    Unless limited by the Special Provisions, a unit as defined in 
section 1 (Definitions--Unit) of the Basic Provisions, may be divided 
into optional units if, for each optional unit, you meet all the 
conditions of this section. All optional units must be reflected on the 
acreage report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your Final Guarantee;
    (b) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit;
    (c) You must have records of marketed production or measurement of 
stored production from each optional unit maintained in such a manner 
that we can verify the production from each optional unit, or the 
production from each optional unit must be kept separate until after 
loss adjustment under the policy is completed; and
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) 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 
equivalent of sections for unit purposes. In areas which 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.
    (2) 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 
your irrigation system can deliver the quantity of water needed to 
produce the yield on which your Final Guarantee is based, except the 
corners of a field in which a center-pivot irrigation system is used 
will be considered as irrigated acreage if separate acceptable records 
of production from the corners are not provided. If the corners of a 
field in which a center-pivot irrigation system is used do not qualify 
as a separate non-irrigated optional unit, they will be a part of the 
unit containing the irrigated acreage. However, non-irrigated acreage 
that is not a part of a field in which a center-pivot irrigation system 
is used may quality as a separate optional unit provided that all 
requirements of this section are met.
    Basic units may not be divided into optional units on any basis 
including, but not limited to: production practice, type, variety, or 
planting period, other than as described above. If you do not comply 
fully with these provisions, we will combine all optional units which 
are not in compliance with these provisions into the 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 on all optional units is 
determined to be inadvertent, and the optional units are combined, 
premium paid for the purpose of electing optional units will be 
refunded to you.
3. Coverage Level, Insurance Guarantee, Prices for Determining 
Indemnity
    In addition to the requirements of section 3 (Coverage Level, 
Insurance Guarantee, Prices for Determining Indemnity) of the Basic 
Provisions all the insurable acreage of each crop in the county insured 
as cotton under this policy will have the same coverage level election.
4. Contract Changes
    The contract change date is December 31 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Basic 
Provisions).
5. Cancellation and Termination Dates
    In accordance with section 2(f) (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions, the cancellation and termination 
dates are:

------------------------------------------------------------------------
                                                    Cancellation and    
               State and county                     termination dates   
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,       February 15.            
 Wilson, Karnes, Goliad, Victoria, and Jackson                          
 Counties, Texas, and all Texas counties lying                          
 south thereof.                                                         
Alabama; Arizona; Arkansas; California;         February 28.            
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina; El                             
 Paso, Hudspeth, Culberson, Reeves, Loving,                             
 Winkler, Ector, Upton, Reagon, Sterling,                               
 Coke, Tom Green, Concho, McCulloch, San Saba,                          
 Mills, Hamilton, Bosque, Johnson, Tarrant,                             
 Wise, and Cooke Counties, Texas counties                               
 lying south and east thereof to and including                          
 Terrell, Crocket, Sutton, Kimble, Gillespie,                           
 Blanco, Comal, Guadalupe, Gonzales, De Witt,                           
 Lavaca, Colorado, Wharton, and Matagorda                               
 Counties, Texas.                                                       
All other Texas counties and all other states.  March 15.               
------------------------------------------------------------------------

6. Insured Crop
    In accordance with section 8 (Insured Crop) of the Basic 
Provisions, the crop insured will be all the cotton lint, in the county 
for which premium rates are provided by the County Actuarial Table:
    (a) In which you have a share; and
    (b) That is not (unless allowed by the Special Provisions):
    (1) Colored cotton lint;
    (2) Planted into an established grass or legume;
    (3) Interplanted with another spring planted crop;
    (4) Grown on acreage from which a hay crop was harvested in the 
same calendar year unless the acreage is irrigated; or

[[Page 35126]]

    (5) Grown on acreage on which a small grain crop reached the 
heading stage in the same calendar year unless the acreage is irrigated 
or adequate measures are taken to terminate the small grain crop prior 
to heading and less than 50 percent of the small grain plants reach the 
heading stage.
7. Insurable Acreage
    In addition to the provisions of section 9 (Insurable Acreage) of 
the Basic Provisions:
    (a) The acreage insured will be only the land occupied by the rows 
of cotton when a skip row planting pattern is utilized; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not produce 
at least 90 percent of the Minimum Guarantee, must be replanted unless 
we agree that replanting is not practical (see section 1 ``Practical to 
replant'').
8. Insurance Period
    (a) In lieu of section 11(b) (harvest of the unit) of the Basic 
Provisions, insurance will end upon the removal of the cotton from the 
field.
    (b) In accordance with the provisions under section 11 (Insurance 
Period) of the Basic Provisions, the calendar date for the end of the 
insurance period is the date immediately following planting as follows:
    (1) September 30 in Val Verde, Edwards, Kerr, Kendall, Bexar, 
Wilson, Karnes, Goliad, Victoria, and Jackson Counties, Texas, and all 
Texas counties lying south thereof;
    (2) January 31 in Arizona, California, New Mexico, Oklahoma, and 
all other Texas counties; and
    (3) December 31 in all other states.
9. Causes of Loss
    In accordance with the provisions of section 12 (Causes of Loss) of 
the Basic Provisions, insurance is provided only against an unavoidable 
loss of revenue due to the following causes of loss which occur within 
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;
    (h) Failure of the irrigation water supply, if applicable, due to 
an unavoidable cause of loss occurring within the insurance period; or
    (i) A Harvest Price that is less than the Base Price.
10. Duties in the Event of Damage or Loss
    (a) In addition to your duties under section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions, in the event of 
damage or loss:
    (1) The cotton stalks must remain intact for our inspection; and
    (2) If you initially discover damage to the insured crop within 15 
days of harvest, or during harvest, you must leave representative 
samples of the unharvested crop in the field for our inspection. The 
samples must be at least 10 feet wide and extend the entire length of 
each field in the unit.
    (b) The stalks must not be destroyed, and required samples must not 
be harvested, until the earlier of our inspection or 15 days after 
harvest of the balance of the unit is completed and written notice of 
probable loss given to us.
11. Settlement of Claim
    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage by the Final Guarantee;
    (2) Subtracting the Calculated Revenue from the result of section 
11(b)(1); and
    (3) Multiplying the result by your share.
    If the result of 11(b)(3) is greater than zero, an indemnity will 
be paid. If the result of section 11(b)(3) is less than zero, no 
indemnity will be paid.
    (c) The total production (in pounds) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than that amount of production that when multiplied by 
the Harvest Price equals the Final Guarantee for the acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes;
    (D) For which you fail to provide records of production that are 
acceptable to us; or
    (E) in violation of section 10;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production of 
white cotton may be adjusted for quality deficiencies in accordance 
with section 11(d)); and
    (iv) You want to put to another use or you wish 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 put the acreage to another use or abandon the crop. If 
agreement on the appraised amount of production is not reached:
    (A) We may give you consent to put the acreage to another use if 
you agree to leave 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 you 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) If 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, including 
any mature cotton retrieved from the ground.
    (d) Mature white cotton may be adjusted for quality when production 
has been damaged by insured causes. Such production to count will be 
reduced if the price quotation for cotton of like quality (price 
quotation ``A'') for the applicable growth area is less than 75 percent 
of price quotation ``B''. Price quotation ``B'' is defined as the price 
quotation for the applicable growth area for cotton of the color and 
leaf grade, staple length, and micronaire reading designated in the 
Special Provisions for this purpose. Price quotations ``A'' and ``B'' 
will be the price quotations contained in the Daily Spot Cotton 
Quotations published by the USDA Agricultural Marketing Service on the 
date the last bale from the unit is classed. If the date the last bale 
classed is not available, the price quotations will be determined on 
the date the last bale from the unit is delivered to the warehouse, as 
shown on the producer's account summary obtained from the gin. If 
eligible for adjustment, the amount of production to be counted will be 
determined by multiplying the number

[[Page 35127]]

of pounds of such production by the factor derived from dividing price 
quotation ``A'' by 75 percent of price quotation ``B''.
    (e) Colored cotton lint will not be eligible for quality 
adjustment.
12. Late Planting and Prevented Planting
    (a) In lieu of provisions contained in the Basic Provisions 
regarding acreage initially planted after the final planting date and 
the applicability of a late planting agreement option, insurance will 
be provided for acreage planted to the insured crop during the late 
planting period (see section 12(c)), and acreage you were prevented 
from planting (see section 12(d)). These coverages provide reduced 
guarantees. The reduced guarantees will be combined with the Final 
Guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will 
be the same as that for timely planted acreage. If the amount of 
premium you are required to pay (gross premium less our subsidy) for 
late planted acreage or prevented planting acreage exceeds the 
liability on such acreage, coverage for those acres will not be 
provided (no premium will be due and no indemnity will be paid for such 
acreage). (For example, assume you insure one unit in which you have a 
100 percent share. The unit consists of 150 acres, of which 50 acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the Final Guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre Final 
Guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre Final Guarantee 
for timely planted acreage by 93 percent and multiply the result by the 
50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre Final 
Guarantee for timely planted acreage by:
    (i) Thirty-five percent and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, 
or if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Seventeen and five tenths percent and multiply the result by 
the 50 acres you were prevented from planting, if the acreage is 
eligible for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the 10th day following the final 
planting date for the insured crop. (This section 12(a)(3) (ii) is not 
applicable, and prevented planting coverage is not available hereunder, 
if you elected to exclude prevented planting coverage when a substitute 
crop is planted (see section 12(d)(1)(iii))).
    The total of the three calculations will be the Final Guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre Minimum Guarantee for timely planted acreage by the 150 acres 
in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For cotton acreage planted after the final planting date but on 
or before 25 days after the final planting date, the Final Guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent for the first through the tenth day; and
    (ii) Two percent for the eleventh through the twenty-fifth day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Basic Provisions, you must report the dates the acreage 
is planted within the late planting period.
    (3) If planting of cotton continues after the final planting date, 
or you are prevented from planting during the late planting period, the 
acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions; 
or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting cotton (see section 1 
``Coverage'') you may elect:
    (i) To plant cotton during the late planting period. The Final 
Guarantee for such acreage will be determined in accordance with 
section 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the 
late planting period. In either case, the Final Guarantee for such 
acreage will be 35 percent of the Final Guarantee for timely planted 
acres. For example, if your Final Guarantee for timely planted acreage 
is 500 dollars per acre, your Prevented Planting Guarantee would be 175 
dollars per acre (500 dollars multiplied by 0.35). If you elect to 
plant the insured crop after the late planting period, production to 
count for such acreage will be determined in accordance with sections 
11(c) and (d); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case:
    (A) No Prevented Planting Guarantee will be provided for such 
acreage if the substitute crop is planted on or before the tenth day 
following the final planting date for the insured crop; or
    (B) A Final Guarantee equal to 17.5 percent of the Final Guarantee 
for timely planted acres will be provided for such acreage, if the 
substitute crop is planted after the tenth day following the final 
planting date for the insured crop. (If you elected to exclude this 
coverage, and plant a substitute crop, no prevented planting coverage 
will be provided. For example, if your Final Guarantee for timely 
planted acreage is 500 dollars per acre, your Prevented Planting 
Guarantee would be 87.50 dollars per acre (500 dollars multiplied by 
0.175). You may elect to exclude prevented planting coverage when a 
substitute crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you must 
so indicate, on or before the sales closing date, on your application 
or on a form approved by us. Your election to exclude this coverage 
will remain in effect from year to year unless you notify us in writing 
on our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop 
insured under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to 
plant and produce the intended crop with the expectation of at least 
producing the Final Guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions, the insurance period for prevented planting 
coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application 
for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a cotton crop insurance policy for 
the 1997 crop year, prevented planting coverage will begin on the 1997 
sales closing date for the cotton crop in the county. If the cotton 
coverage

[[Page 35128]]

remains in effect for the 1998 crop year (is not terminated or canceled 
during or after the 1997 crop year, except the policy may have been 
canceled to transfer the policy to a different insurance provider, if 
there is no lapse in coverage), prevented planting coverage for the 
1998 crop year began on the 1997 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all FSA farm serial numbers in 
which you have a share, adjusted for any reconstitution that may have 
occurred on or before the sales closing date. Eligible acreage for each 
FSA farm serial number is determined as follows:
    (i) If you participate in any program administered by the USDA that 
limits the number of acres that may be planted for the crop year, the 
acreage eligible for prevented planting coverage will not exceed the 
total acreage permitted to be planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
USDA that limits the number of acres that may be planted, and unless we 
agree in writing on or before the sales closing date, eligible acreage 
will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to cotton on the FSA farm serial 
number during the previous crop year; or
    (C) One hundred percent of the simple average of the number of 
acres planted to cotton during the crop years that you certified to 
determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent of the 
acreage in the unit, whichever is less (Acreage that is less than 20 
acres or 20 percent of the acreage in the unit will be presumed to have 
been intended to be planted to the insured crop planted in the unit, 
unless you can show that you had the inputs available before the final 
planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the County Actuarial Table does not designate a 
premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the USDA;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four 
years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year (other than a cover 
crop as specified in section 12(a)(3)(i), or a substitute crop allowed 
in section 12(a)(3)(ii) unless you provide adequate records of acreage 
and production showing that the acreage has a history of double-
cropping in each of the last four years; or
    (F) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be 
reduced by the number of cotton acres timely planted and late planted. 
For example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent share. The acreage is located 
in a single FSA farm serial number which you insure as two separate 
optional units consisting of 50 acres each. If you planted 60 acres of 
cotton on one optional unit and 40 acres of cotton on the second 
optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions, you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a Prevented Planting Guarantee, the 
total amount of prevented planting and planted acres cannot exceed the 
maximum number of acres eligible for prevented planting coverage. Any 
acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your acreage 
report.

Crop Revenue Coverage Insurance Policy

Coarse Grains Crop Provisions

    This is a risk management program. This risk management tool may be 
reinsured under the authority provided by section 508(h) of the Federal 
Crop Insurance Act. If a conflict exists among the Crop Revenue 
Coverage Basic Provisions, these Coarse Grains Crop Provisions, and the 
Special Provisions, the Special Provisions will control these Coarse 
Grains Crop Provisions and the Basic Provisions and these Coarse Grains 
Crop Provisions will control the Basic Provisions.
1. Definitions
    (a) Base price--Refer to the definition contained in the Commodity 
Exchange Endorsement--Coarse Grains.
    (b) Calculated revenue--The production to count multiplied by the 
Harvest Price.
    (c) Coarse grains--Corn, grain sorghum, and soybeans.
    (d) Days--Calendar days.
    (e) Final guarantee--The number of dollars guaranteed per acre 
determined to be the higher of the Minimum Guarantee or the Harvest 
Guarantee, where:
    (1) Minimum Guarantee--the Approved Yield per acre multiplied by 
the Base Price multiplied by the coverage level percentage you elect.
    (2) Harvest Guarantee--the Approved Yield per acre multiplied by 
the Harvest Price, multiplied by the coverage level percentage you 
elect.
    (f) 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 Final Guarantee.
    (g) Good farming practices--Good farming practices are the cultural 
practices generally in use in the county for the insured crop to make 
normal progress toward maturity and produce at least the yield used to 
determine the Final Guarantee and are those recognized by the 
Cooperative State Research, Education, and Extension Service as 
compatible with agronomic and weather conditions in the area.
    (h) Grain sorghum--The crop defined as sorghum under the United 
States Grain Standards Act.
    (i) Harvest--Combining, threshing, or picking the insured crop for 
grain.
    (j) Harvest price--Refer to the definition contained in the 
Commodity Exchange Endorsement--Coarse Grains.
    (k) 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.

[[Page 35129]]

    (l) 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 Final Guarantee on the irrigated acreage 
planted to the insured crop.
    (m) Late planted--Acreage planted to the insured crop during the 
late planting period.
    (n) Late planting period--The period that begins the day after the 
final planting date for the insured crop and ends 25 days after the 
final planting date.
    (o) Local market price--The cash grain price per bushel for U.S. 
No. 2 yellow corn, U.S. No. 2 grain sorghum, or U.S. No. 1 soybeans, 
offered by buyers in the area in which you normally market the insured 
crop. The local market price will reflect the maximum limits of quality 
deficiencies allowable for the U.S. No. 2 grade for yellow corn and 
grain sorghum, or U.S. No. 1 grade for soybeans. Factors not associated 
with grading under the Official United States Standards for Grain, 
including but not limited to protein and oil, will not be considered.
    (p) 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 which has been properly prepared for the 
planting method and production practice. Coarse grains must initially 
be planted in rows to be considered planted. Corn must be planted in 
rows far enough apart to permit mechanical cultivation. Planting in any 
other manner will be considered as a failure to follow recognized good 
farming practices and any loss of production will not be insured unless 
otherwise provided by the Special Provisions.
    (q) Practical to replant--In lieu of section 1(kk) of the Basic 
Provisions, 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, condition of the field, time to crop 
maturity, and marketing window, 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 end of the late planting period unless replanting is 
generally occurring in the area.
    (r) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop 
due to an insured cause of loss that has prevented the majority of 
producers in the surrounding area from planting the same crop.
    (s) Prevented planting guarantee--The Prevented Planting Guarantee 
for such acreage will be that percentage of the Final Guarantee for 
timely planted acres as set forth in section 13(d).
    (t) Replanting--Performing the cultural practices necessary to 
replace the seed of the same insured crop, and replacing the seed for 
the same crop in the insured acreage with the expectation of growing a 
successful crop.
    (u) Silage--A product that results from severing the plant from the 
land and chopping it for the purpose of livestock feed.
    (v) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the 
county.
2. Unit Division
    Unless limited by the Special Provisions, a unit as defined in 
section 1(xx) of the Basic Provisions, may be divided into optional 
units if, for each optional unit you meet all the conditions of this 
section. All optional units must be reflected on the acreage report for 
each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your Final Guarantee;
    (b) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit;
    (c) You must have records of marketed production or measurement of 
stored production from each optional unit maintained in such a manner 
that we can verify the production from each optional unit or the 
production from each unit must be kept separate until after loss 
adjustment under the policy is completed; and
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) 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 which 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.
    (2) 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 
your irrigation system can deliver the quantity of water needed to 
produce the yield on which your Final Guarantee is based, except the 
corners of a field in which a center-pivot irrigation system is used 
will be considered as irrigated acreage if separate acceptable records 
of production from the corners are not provided. If the corners of a 
field in which a center-pivot irrigation system is used do not qualify 
as a separate non-irrigated optional unit, they will be a part of the 
unit containing the irrigated acreage. However, non-irrigated acreage 
that is not a part of a field in which a center-pivot irrigation system 
is used may quality as a separate optional unit provided that all 
requirements of this section are met.
    Basic units may not be divided into optional units on any basis 
including, but not limited to: production practice, type, variety, or 
planting period, other than as described above. If you do not comply 
fully with these provisions, we will combine all optional units which 
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 on all optional units is 
determined to be inadvertent, and the optional units are combined, 
premium paid for the purpose of electing optional units will be 
refunded to you.
3. Coverage Level, Insurance Guarantee, Prices for Determining 
Indemnity
    In addition to the requirements of section 3 (Coverage Level, 
Insurance

[[Page 35130]]

Guarantee, Prices for Determining Indemnity) of the Basic Provisions 
all the insurable acreage of each crop in the county insured as grain 
under this policy will have the same coverage level election.
4. Contract Changes
    The contract change date is December 31 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Basic 
Provisions).
5. Cancellation and Termination Dates
    In accordance with section 2(f) (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions, the cancellation and termination 
dates are:

------------------------------------------------------------------------
                                                    Cancellation and    
               State and county                     termination dates   
------------------------------------------------------------------------
(a) For corn and grain sorghum:                                         
    Val Verde, Edwards, Kerr, Kendall, Bexar,   January 15.             
     Wilson, Karnes, Goliad, Victoria, and                              
     Jackson Counties, Texas, and all Texas                             
     counties lying south thereof.                                      
    El Paso, Hudspeth, Culberson, Reeves,       February 15.            
     Loving, Winkler, Ector, Upton, Reagan,                             
     Sterling, Coke, Tom Green, Concho,                                 
     McCulloch, San Saba, Mills, Hamilton,                              
     Bosque, Johnson, Tarrant, Wise, Cooke                              
     Counties, Texas, and all Texas counties                            
     lying south and east thereof to and                                
     including Terrell, Crockett, Sutton,                               
     Kimble, Gillespie, Blanco, Comal,                                  
     Guadalupe, Gonzales, De Witt, Lavaca,                              
     Colorado, Wharton, and Matagorda                                   
     Counties, Texas.                                                   
    Alabama; Arizona; Arkansas; California;     February 28.            
     Florida; Georgia; Louisiana; Mississippi;                          
     Nevada; North Carolina; and South                                  
     Carolina.                                                          
    All other Texas counties and all other      March 15.               
     States.                                                            
(b) For soybeans:                                                       
    Jackson, Victoria, Goliad, Bee, Live Oak,   February 15.            
     McMullen, LaSalle, and Dimmit Counties,                            
     Texas and all Texas counties lying south                           
     thereof.                                                           
    Alabama; Arizona; Arkansas; California;     February 28.            
     Florida; Georgia; Louisiana; Mississippi;                          
     Nevada; North Carolina; and South                                  
     Carolina; and El Paso, Hudspeth,                                   
     Culberson, Reeves, Loving, Winkler,                                
     Ector, Upton, Reagan, Sterling, Coke, Tom                          
     Green, Concho, McCulloch, San Saba,                                
     Mills, Hamilton, Bosque, Johnson,                                  
     Tarrant, Wise, Cooke Counties, Texas, and                          
     all Texas counties lying south and east                            
     thereof to and including Maverick,                                 
     Zavala, Frio, Atascosa, Karnes, De Witt,                           
     Lavaca, Colorado, Wharton, and Matagorda                           
     Counties, Texas.                                                   
    All other Texas counties and all other      March 15.               
     States.                                                            
------------------------------------------------------------------------

6. Insured Crop.
    (a) In accordance with section 8 (Insured Crop) of the Basic 
Provisions, the crop insured will be each coarse grain crop you elect 
to insure for which premium rates and prices are provided by the County 
Actuarial Table:
    (1) In which you have a share;
    (2) That is adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area, including 
air seeded soybeans subject to our approval;
    (3) That is not (unless allowed by the Special Provisions):
    (i) Interplanted with another crop; or
    (ii) Planted into an established grass or legume; and
    (4) Planted for harvest as grain.
    (b) For corn only, in addition to the provisions of section 6(a), 
the corn crop insured will be all corn that is yellow dent or white 
corn, including mixed yellow and white, waxy, high-lysine corn, high-
oil corn blends containing mixtures of at least ninety percent high 
yielding yellow dent female plants with high-oil male pollinator 
plants, commercial varieties of high-protein hybrids, and excluding:
    (1) High-amylose, high-oil except as defined in section 6(b), 
flint, flour, Indian, or blue corn, or a variety genetically adapted to 
provide forage for wildlife or any other open pollinated corn.
    (2) A variety of corn adapted for silage use when the corn is 
reported for insurance as grain.
    (c) For grain sorghum only, in addition to the provisions of 
section 6(a), the grain sorghum crop insured will be all of the grain 
sorghum in the county:
    (1) That is planted for harvest as grain;
    (2) That is a combine-type hybrid grain sorghum (grown from hybrid 
seed); and
    (3) That is not a dual-purpose type of grain sorghum (a type used 
for both grain and forage).
    (d) For soybeans only, in addition to the provisions of section 
6(a), the soybean crop insured will be all of the soybeans in the 
county that are planted for harvest as beans.
7. Insurable Acreage
    In addition to the provisions of section 9 (Insurable Acreage) of 
the Basic Provisions, any acreage of the insured crop damaged before 
the final planting date, to the extent that the remaining stand will 
not produce at least 90 percent of the Minimum Guarantee, must be 
replanted unless we agree that replanting is not practical (see section 
1 ``County actuarial table'').
8. Insurance Period
    In accordance with the provisions under section 11 (Insurance 
Period) of the Basic Provisions, the calendar date for the end of the 
insurance period is the date immediately following planting as follows:


(a) For corn insured as grain:                                          
    (1) Val Verde, Edwards, Kerr, Kendall,      September 30.           
     Bexar, Wilson, Karnes, Goliad, Victoria,                           
     and Jackson Counties, Texas, and all                               
     Texas counties lying south thereof..                               
    (2) Clark, Cowlitz, Grays Harbor, Island,   October 31.             
     Jefferson, King, Kitsap, Lewis, Pierce,                            
     Skagit, Snohomish, Thurston, Wahkiakum,                            
     and Whatcom Counties, Washington.                                  
    (3) All other counties and states.........  December 10.            
(b) For grain sorghum:                                                  
    (1) Val Verde, Edwards, Kerr, Kendall,      September 30.           
     Bexar, Wilson, Karnes, Goliad, Victoria,                           
     and Jackson Counties, Texas, and all                               
     Texas counties lying south thereof..                               
    (2) All other Texas counties and all other  December 10.            
     states.                                                            
(c) For soybeans: All states..................  December 10.            
                                                                        


[[Page 35131]]

9. Causes of Loss
    In accordance with the provisions of section 12 (Causes of Loss) of 
the Basic Provisions insurance is provided only against an unavoidable 
loss of revenue due to the following causes of loss which occur within 
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;
    (h) Failure of the irrigation water supply, if applicable, due to 
an unavoidable cause of loss occurring within the insurance period; or
    (i) A Harvest Price that is less than the Base Price.
10. Replanting Payments
    (a) In accordance with section 13 (Replanting Payment) of the Basic 
Provisions, replanting payments for coarse grains are allowed if the 
coarse grains are damaged by an insurable cause of loss to the extent 
that the remaining stand will not produce at least 90 percent of the 
Minimum Guarantee for the acreage and it is practical to replant (see 
section 1 ``Practical to replant'').
    (b) The maximum amount of the replanting payment per acre will be 
the lesser of 20 percent of the Minimum Guarantee or the number of 
bushels set out herein, multiplied by the Base Price, multiplied by 
your insured share or the share determined under section 10(c), if 
applicable. The number of bushels are 8 bushels for corn grain; 7 
bushels for grain sorghum; and 3 bushels for soybeans.
    (c) When more than one person insures the same crop on a share 
basis, a replanting payment based on the total shares insured by us may 
be made to the insured person who incurs the total cost of replanting. 
Payment will be made in this manner only if an agreement exists between 
the insured persons which:
    (1) Requires one person to incur the entire cost of replanting; or
    (2) Gives the right to all replanting payments to one person.
    (d) When the insured crop is replanted using a practice that is 
uninsurable as an original planting, the Revenue Guarantee for the unit 
will be reduced by the amount of the replanting payment which is 
attributable to your share. The premium amount will not be reduced.
11. Duties in the Event of Damage or Loss
    In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions, if you initially 
discover damage to any insured crop within 15 days of or during 
harvest, you must leave representative samples of the unharvested crop 
for our inspection. The samples must be at least 10 feet wide, extend 
the entire length of each field in the unit, and must not be harvested 
or destroyed until the earlier of our inspection or 15 days after 
harvest of the balance of the unit is completed.
12. Settlement of Claim
    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any insured unit of Coarse Grains by:
    (1) Multiplying the insured acreage of the crop by the Final 
Guarantee;
    (2) Subtracting the Calculated Revenue from the result of section 
12(b)(1); and
    (3) Multiplying the result by your share.
    If the result of 12(b)(3) is greater than zero, an indemnity will 
be paid. If the result of section 12(b)(3) is less than zero, no 
indemnity will be due.
    (c) The total production in bushels to count from all insurable 
acreage for the crop on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than that amount of production that when multiplied by 
the Harvest Price equals the Final Guarantee for the 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 records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance 
with section 12(d)); and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and 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 put the acreage to 
another use or abandon the crop. If agreement on the appraised amount 
of production is not reached:
    (A) If 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 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 you 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) If 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) Mature coarse grain production may be adjusted for excess 
moisture and quality deficiencies. If moisture adjustment is applicable 
it will be made prior to any adjustment for quality.
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of:
    (i) Fifteen percent for corn (If moisture exceeds 30 percent, 
production will be reduced 0.2 percent for each 0.1 percentage point 
above 30 percent);
    (ii) Fourteen percent for grain sorghum; and
    (iii) Thirteen percent for soybeans.
    We may obtain samples of the production to determine the moisture 
content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain, result in:
    (A) Corn not meeting the grade requirements for U.S. No. 4 (grades 
U.S. No. 5 or worse) because of test weight or kernel damage (excluding 
heat damage) or having a musty, sour, or commercially objectionable 
foreign odor;
    (B) Grain sorghum not meeting the grade requirements for U.S. No. 4

[[Page 35132]]

(grades U.S. Sample grade) because of test weight or kernel damage 
(excluding heat damage) or having a musty, sour, or commercially 
objectionable foreign odor (except smut odor), or meets the special 
grade requirements for smutty grain sorghum; or
    (C) Soybeans not meeting the grade requirements for U.S. No. 4 
(grades U.S. Sample grade) because of test weight or kernel damage 
(excluding heat damage) or having a musty, sour, or commercially 
objectionable foreign odor (except garlic odor), or which meet the 
special grade requirements for garlicky soybeans; or
    (ii) Substances or conditions are present that are identified by 
the Food and Drug Administration or other public health organizations 
of the United States as being injurious to human or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or 
by a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grader licensed under the 
authority of the United States Grain Standards Act or the United States 
Warehouse Act with regard to deficiencies in quality, or by a 
laboratory approved by us with regard to substances or conditions 
injurious to human or animal health. (Test weight for quality 
adjustment purposes may be determined by our loss adjuster).
    (4) Coarse grain production that is eligible for quality 
adjustment, as specified in sections 12(d)(2) and 12(d)(3), will be 
reduced by the quality adjustment factor contained in the Special 
Provisions.
    (e) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.
13. Late Planting and Prevented Planting
    (a) Insurance will be provided for acreage planted to the insured 
crop during the late planting period (see section 13(c)), and acreage 
you were prevented from planting (see section 13(d)). These coverages 
provide reduced guarantees. The reduced guarantees will be combined 
with the Final Guarantee for timely planted acreage for each unit. The 
premium amount for late planted acreage and eligible prevented planting 
acreage will be the same as that for timely planted acreage. If the 
amount of premium you are required to pay (gross premium less our 
subsidy) for late planted acreage or prevented planting acreage exceeds 
the liability on such acreage, coverage for those acres will not be 
provided (no premium will be due and no indemnity will be paid for such 
acreage). (For example, assume you insure one unit in which you have a 
100 percent share. The unit consists of 150 acres, of which 50 acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the Final Guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre Final 
Guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre Final Guarantee 
for timely planted acreage by 93 percent and multiply the result by the 
50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre Final 
Guarantee for timely planted acreage by:
    (i) Fifty percent and multiply the result by the 50 acres you were 
prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, 
or if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute 
crop for harvest after the 10th day following the final planting date 
for the insured crop. This subparagraph (ii) is not applicable and 
prevented planting coverage is not available hereunder, if you elected 
to exclude prevented planting coverage when a substitute crop is 
planted (see paragraph 13(d)(1)(iii)).
    The total of the three calculations will be the Final Guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre Minimum Guarantee for timely planted acreage by the 150 acres 
in the unit).
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For acreage planted to the insured crop after the final 
planting date but on or before 25 days after the final planting date, 
the Final Guarantee for each acre will be reduced for each day planted 
after the final planting date by:
    (i) One percent for the first through the tenth day; and
    (ii) Two percent for the eleventh through the twenty-fifth day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Basic Provisions, you must report the dates the acreage 
is planted within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions 
for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
section 1 ``Coverage''), you may elect:
    (i) To plant the insured crop during the late planting period. The 
Final Guarantee for such acreage will be determined in accordance with 
section 13(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the 
late planting period. In either case, the Final Guarantee for such 
acreage will be 50 percent of the Final Guarantee for timely planted 
acres. For example, if your Final Guarantee for timely planted acreage 
is 200 dollars per acre, your prevented planting guarantee would be 100 
dollars per acre (200 dollars multiplied by 0.50). If you elect to 
plant the insured crop after the late planting period, production to 
count for such acreage will be determined in accordance with sections 
12(c) through 12(e); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case:
    (A) No Prevented Planting Guarantee will be provided for such 
acreage if the substitute crop is planted on or before the tenth day 
following the final planting date for the insured crop; or
    (B) A Final Guarantee equal to 25 percent of the Final Guarantee 
for timely planted acres will be provided for such acreage, if the 
substitute crop is planted after the tenth day following the final 
planting date for the insured crop. (If you elected to exclude this 
coverage, and plant a substitute crop, no

[[Page 35133]]

prevented planting coverage will be provided.) For example, if your 
Final Guarantee for timely planted acreage is 200 dollars per acre, 
your Prevented Planting Guarantee would be 50 dollars per acre (200 
dollars multiplied by 0.25). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for harvest and 
receive a reduction in the applicable premium rate. If you wish to 
exclude this coverage, you must so indicate, on or before the sales 
closing date, on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable 
sales closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to 
plant and produce the intended crop with the expectation of at least 
producing the Final Guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions, the insurance period for prevented planting 
coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application 
for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase insurance for corn for the 1997 crop 
year, prevented planting coverage will begin on the 1997 sales closing 
date for corn in the county. If the corn coverage remains in effect for 
the 1998 crop year (is not terminated or canceled during or after the 
1997 crop year, except that the policy may have been cancelled to 
transfer the policy to a different insurance provider, if there is no 
lapse in coverage), prevented planting coverage for the 1998 crop year 
began on the 1997 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop on the FSA Farm 
Serial Number during the previous crop year; or
    (C) One hundred percent of the simple average of the number of 
acres planted to the insured crop during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent of the 
acreage in the unit, whichever is less (Acreage that is less than 20 
acres or 20 percent of the acreage in the unit will be presumed to have 
been intended to be planted to the insured crop planted in the unit, 
unless you can show that you had the inputs available before the final 
planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the County Actuarial Table does not designate a 
premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, or Final 
Guarantee for the same acreage in the same crop year, unless you 
provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four 
years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a 
cover crop as specified in section 13(a)(3)(i), or a substitute crop 
allowed in section 13(a)(3)(ii)), unless you provide adequate records 
of acreage and production showing that the acreage has a history of 
double-cropping in each of the last four years; or
    (F) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be 
reduced by the number of acres of the insured crop timely planted and 
late planted. For example, assume you have 100 acres eligible for 
prevented planting coverage in which you have a 100 percent share. The 
acreage is located in a single FSA farm serial number which you insure 
as two separate optional units consisting of 50 acres each. If you 
planted 60 acres of the insured crop on one optional unit and 40 acres 
of the insured crop on the second optional unit, your prevented 
planting eligible acreage would be reduced to zero (i.e.,100 acres 
eligible for prevented planting coverage minus 100 acres planted equals 
zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions, you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a Prevented Planting Guarantee, the 
total amount of prevented planting and planted acres cannot exceed the 
maximum number of acres eligible for prevented planting coverage. Any 
acreage you report in excess of the number of acres eligible for 
prevented planting coverage, or that exceeds the number of eligible 
acres physically located in a unit, will be deleted from your acreage 
report.
    The terms and provisions for the 1997 CRC wheat program of 
insurance are as follows:

Crop Revenue Coverage Insurance Policy

(This is a continuous policy for the 1997-1998 crop years only. Refer 
to section 2.)
    This policy is reinsured by the Federal Crop Insurance Corporation 
(FCIC) under the provisions of the Federal Crop Insurance Act, as 
amended (the Act)(7 U.S.C. 1501 et seq.). All the provisions of the 
policy and rights and responsibilities of the parties are specifically 
subject to the Act. The provisions of the policy may not be waived or 
varied in any way by the crop insurance agent or any other agent or 
employee of the Company. In the event

[[Page 35134]]

we cannot pay your loss, your claim will be settled in accordance with 
the provisions of this policy and paid by the FCIC. No state guarantee 
fund will be liable to pay your loss. Throughout this policy, ``you'' 
and ``your'' refer to the named insured shown on the accepted 
application and ``we'', ``us'' and ``our'' refer to the Company. Unless 
the context indicates otherwise, use of the plural form of a word 
includes the singular and use of the singular form of the word includes 
the plural.
    Agreement To Insure: In return for the payment of the premium, and 
subject to all of the provisions of this policy, we agree with you to 
provide the insurance as stated in this policy. If a conflict exists 
between the Basic Provisions contained herein and the specific Crop 
Provisions, the Crop Provisions will control.

Basic Provisions

Terms and Conditions
    1. Definitions. As used in this policy these terms are defined as 
follows:
    (a) Abandon--Failure to continue providing sufficient care (For 
example, cultivation, irrigation, fertilization, application of 
chemicals, etc., consistent with good farming practices) for the 
insured crop to make normal progress toward harvest or maturity, or 
failure to harvest in a timely manner.
    (b) Acreage report--A report required by section 6 of these basic 
provisions which contains, in addition to other required information, 
your report of your share of all acreage of an insured crop in the 
county whether insurable or not insurable. This report must be filed 
not later than the final acreage reporting date contained in the 
Special Provisions for the county for the insured crop.
    (c) Acreage reporting date--The date (contained in the Special 
Provisions) by which you are required to submit your acreage reports.
    (d) Another use, notice of--The written notice required when you 
wish to put acreage to another use (see section 14).
    (e) Application--The form required to be completed by you and 
accepted by us before insurance coverage will commence. This form must 
be completed and filed in your agent's office not later than the sales 
closing date of the initial insurance year for each crop for which 
insurance coverage is requested. If a break in insurance coverage 
occurs, a new application must be filed.
    (f) Approved yield--The average amount of production per acre 
obtained under the Actual Production History Program (7 CFR part 400, 
subpart G) using production records of the insured or yields assigned 
by FCIC. At least four crop years of yields must be averaged to obtain 
the approved yield.
    (g) Assignment of indemnity--A transfer of policy rights, made on 
our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    (h) CRC revenue rate--A premium rate as set forth in the Crop 
Revenue Coverage (CRC) Factor Table used to calculate the risk 
associated with producing a level of production.
    (i) CRC low price factor--A premium factor as set forth in the Crop 
Revenue Coverage (CRC) Factor Table used to calculate the risk 
associated with a decrease in the Harvest Price relative to the Base 
Price.
    (j) CRC high price factor--A premium factor as set forth in the 
Crop Revenue Coverage (CRC) Factor Table used to calculate the risk 
associated with an increase in the Harvest Price relative to the Base 
Price.
    (k) Cancellation date--The calendar date specified in each Crop 
Provision on which that Crop Provision will automatically renew unless 
canceled in writing by either you or us.
    (l) Claim for indemnity--A claim made on our form by you for damage 
or loss to an insured crop and submitted to us not later than 60 days 
after the end of the insurance period (see section 14).
    (m) Commodity exchange endorsement--An endorsement to the crop 
provisions that contains the specific price determination provisions of 
insurance for each insured crop.
    (n) Consent--Approval in writing by us allowing you to take a 
specific action.
    (o) Contract (also see Policy)--A contract for insurance between 
you and us consisting of the accepted Application, these Basic 
Provisions, the Crop Provisions, the Special Provisions, the County 
Actuarial Table for the insured crops, and the applicable regulations 
as published at 7 C.F.R. part 400.
    (p) Contract change date--The calendar date by which we make any 
contract (policy language or program date) changes available for 
inspection in the agent's office (see section 4).
    (q) County--The county or other political subdivision shown on your 
accepted application.
    (r) County actuarial table--The forms and related material for the 
crop year which show coverage levels, premium rates, practices, 
insurable acreage, and other related information regarding crop 
insurance in the county.
    (s) County actuarial table endorsement--An endorsement to the 
county actuarial table that modifies specific information of county 
actuarial table for each insured crop.
    (t) Coverage--The insurance provided by this policy, against 
insured loss of revenue by unit as shown on your summary of coverage.
    (u) Coverage begins, date--The calendar date insurance begins on 
the insured crop, as contained in the Crop Provisions, or the date 
after planting is started on the unit (see section 11).
    (v) Crop provisions--The part of the policy that contains the 
specific provisions of insurance for each insured crop.
    (w) Crop year--The period within which the insured crop is normally 
grown and designated by the calendar year in which the insured crop is 
normally harvested.
    (x) Damage--Injury, deterioration, or loss of production of the 
insured crop due to insured or uninsured causes.
    (y) Damage, notice of--A written notice required to be filed in 
your agent's office whenever you initially discover the insured crop 
has been damaged to the extent that a loss is probable (see section 
14).
    (z) Delinquent account--Any account you have with us in which 
premiums, or interest on those premiums is not paid by the termination 
date specified in the crop provisions, or any other amounts due us, 
such as indemnities found not to have been earned, which are not paid 
within 30 days of our mailing or other delivery of notification to you 
of the amount due.
    (aa) Earliest planting date--The earliest date established for 
planting the insured crop and qualifying for a replant payment if 
applicable (see Special Provisions and section 13).
    (bb) End of insurance period, date of--The date upon which your 
crop insurance coverage ceases for the crop year (see Crop Provisions 
and section 11).
    (cc) Final guarantee--The guaranteed dollar amount per acre of the 
insured crop on the unit.
    (dd) FSA--The Farm Service Agency of the United States Department 
of Agriculture (formerly the Agricultural Stabilization and 
Conservation Service).
    (ee) FSA farm serial number--The number assigned to the farm by the 
FSA county committee.
    (ff) Insured--The named person as shown on the Application accepted 
by us. This term does not extend to any other person having a share or 
interest in the crop (for example, a partnership, landlord, or any 
other person) unless specifically indicated on the accepted

[[Page 35135]]

application (see definition of Person section 1).
    (gg) Insured crop--The crop defined under these Basic Provisions 
and the applicable Crop Provisions as shown on the application accepted 
by us.
    (hh) Late planting agreement option--Available on selected crops. 
An amendment to the insurance policy which, when planting has been 
delayed, provides insurance coverage for acreage of an insured crop 
planted after the final planting date shown on the Special Provisions 
in exchange for a reduction in coverage.
    (ii) Loss, notice of--The notice required to be given by you not 
later than 72 hours after certain occurrences or 15 days after the end 
of the insurance period (see section 14).
    (jj) Negligence--The failure to use such care as a reasonably 
prudent and careful person would use under similar circumstances.
    (kk) Person--An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a State 
or a political subdivision or agency of a State.
    (ll) Policy--(also see Contract) The Basic Provisions for insuring 
a specific crop, included as part of the insurance contract.
    (mm) Practical to replant--Our determination, after loss or damage 
to the insured crop, based upon all factors, including, but not limited 
to moisture availability, condition of the field, time to crop 
maturity, etc., on the feasibility of replanting and harvesting the 
insured crop. It is not practical to replant after the final planting 
date (for crops without an offered Late Planting Agreement Option) or 
after 20 days after the final planting date (for crops with an offered 
Late Planting Agreement Option).
    (nn) Premium billing date--The earliest date upon which you will be 
billed for insurance coverage based on your acreage report and which 
generally falls at or near harvest time.
    (oo) Production report--A written record showing your annual 
production and used by us to determine your yield for insurance 
purposes (see section 3). The report contains previous years yield 
information including planted acreage and harvested production. This 
report must be supported by written verifiable records from a 
warehouseman or buyer of the insured crop or by measurement of farm 
stored production, or by other records of production approved by us on 
an individual case basis.
    (pp) Reporting date--The acreage reporting date (contained in the 
Special Provisions) by which you are required to report all your 
insurable acreage in the county in which you have a share and your 
share at the time insurance attaches, and any acreage in which you have 
a share which is not insured (see section 9).
    (qq) Representative sample--Portions of the insured crop or insured 
crop residue which are required to remain in the field for examination 
and review by our loss adjusters when making a crop appraisal if 
required by the crop provisions. The samples are further defined in the 
crop provisions.
    (rr) Sales closing date--The date contained in the Special 
Provisions which is the final date when an application may be filed. 
This is the last date for you to make changes in your crop insurance 
coverage for the crop year.
    (ss) Section (for the purposes of unit structure)--A unit of 
measure under a rectangular survey system describing a tract of land 
usually one mile square and usually containing approximately 640 acres.
    (tt) Share--Your percentage of interest in the insured crop as an 
owner, operator, or tenant at the time coverage begins. However, only 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share at the earlier of the time of loss or the 
beginning of harvest. Unless the accepted Application clearly indicates 
that insurance is requested for a partnership or joint venture, or is 
intended to cover the landlord's, or tenant's share of the crop (see 
section 10), insurance will only cover the crop share of the person 
completing the Application. The share will not extend to any other 
person having an interest in the crop except as may otherwise be 
specifically allowed in this policy. We may consider any acreage or 
interest reported by or for your spouse, child or any member of your 
household to be your share. Leases containing provisions for both a 
cash or minimum payment and a crop share will be considered a crop 
share lease.
    (uu) Special provisions--The part of the policy that contains 
specific provisions of insurance for each insured crop that may vary by 
geographic area.
    (vv) State--The state shown on your accepted application.
    (ww) Summary of coverage--Our statement to you, based upon your 
acreage report, by unit, specifying the insured crop and the final 
guarantee or amount of insurance coverage provided.
    (xx) Tenant--A person who rents land from another person for a 
share of the crop or a share of the proceeds of the crop (see the 
definition of ``Share'' above).
    (yy) Termination date--The calendar date contained in the Crop 
Provisions upon which your policy ceases for nonpayment of premium or 
any other amount due us under the policy.
    (zz) Unit--All insurable acreage of the insured crop in the county 
on the date coverage begins for the crop year:
    (1) in which you have a 100 percent share; or
    (2) which is owned by one entity and operated by another specific 
entity on a share basis. (For example, if, in addition to the land you 
own, you rent land from five landlords, three on a crop share basis and 
two on a cash basis, you would be entitled to four units, one for each 
crop share lease and one for the two cash leases and the land you own). 
Land rented for cash, a fixed commodity payment, or a consideration 
other than a share in the insured crop on such land will be considered 
as owned by the lessee (see ``Share'' above). Land which would 
otherwise be one unit may, in certain instances, be divided according 
to guidelines contained in the applicable crop provisions. Units will 
be determined when the acreage is reported but may be adjusted or 
combined to reflect the actual unit structure when adjusting a loss. 
However, no further division may be made after the acreage report date 
for any reason.
    2. Life of Policy, Cancellation and Termination. (a) This 
continuous policy will be in effect for the 1997 and 1998 crop years 
only. After acceptance of the application, you may not cancel this 
policy the initial crop year. Thereafter, the policy will continue in 
force for the succeeding crop year unless canceled or terminated as 
provided below.
    (b) Either you or we may cancel this policy after the initial crop 
year by providing written notice to the other on or before the 
cancellation date shown in the Crop Provisions.
    (c) All policies issued by us under the authority of the Act will 
terminate as of the coincidental or next termination date contained in 
these policies if any amount due us is not paid on or before the 
termination date for the crop on which the amount is due. Such unpaid 
debts will also make you ineligible for any crop insurance provided 
under the Act until payment is made. If we deduct any amount due us 
from an indemnity, the date of payment for the purpose of this section 
(2(c)) will be the date you sign the properly completed claim for 
indemnity.
    (d) If you die, disappear, or are judicially declared incompetent, 
or if you are an entity other than an individual and such entity is 
dissolved, the policy will terminate as of the date

[[Page 35136]]

of death, judicial declaration, or dissolution. If such event occurs 
after coverage begins for any crop year, the policy will continue in 
force through the crop year and terminate at the end of the insurance 
period and any indemnity will be paid to the person or persons 
determined to be beneficially entitled to the indemnity. Death of a 
partner in a partnership will dissolve the partnership unless the 
partnership agreement provides otherwise. If two or more persons having 
a joint interest are insured jointly, death of one of the persons will 
dissolve the joint entity.
    (e) Your policy will terminate if no premium is earned for 3 
consecutive years.
    (f) The cancellation and termination dates are contained in the 
Crop Provisions.
    (g) You are not eligible to participate in the Crop Revenue 
Coverage program if you are identified in the Non-standard 
Classification System or have elected the catastrophic risk protection 
policy.
    (h) If you execute a High Risk Land Exclusion Option for a Crop 
Revenue Coverage policy, you may elect to insure the ``high risk land'' 
under a catastrophic risk protection policy. If both policies are in 
force, the acreage of the crop covered under the Crop Revenue Coverage 
policy and the acreage covered under the catastrophic risk protection 
policy will be considered as separate crops for insurance purposes 
including the payment of administrative fees.
    3. Coverage Level. (a) For each crop year the coverage level by 
which an indemnity will be determined for each unit will be that shown 
on your summary of coverage. The information necessary to determine 
those amounts will be contained in the Special Provisions or in the 
County Actuarial Table.
    (b) You may select only one coverage level offered by us for each 
insured crop. By written notice to us you may change the coverage level 
for the following crop year not later than the sales closing date for 
the affected insured crop. If you do not change the coverage level for 
the succeeding crop year you will be assigned the same coverage level 
that was in effect the previous crop year.
    (c) You must elect at least the fifty (50) percent coverage to be 
in compliance with section 508(b)(7) of the Act , as amended, or 
execute a waiver of your eligibility for any emergency assistance, 
except emergency loans under section 371 of the Consolidated Farm and 
Rural Development Act.
    (d) You must report production to us for the previous crop year by 
the earlier of the acreage reporting date or 45 days after the 
cancellation date. If you do not provide the required production 
report, we will assign a yield for the previous crop year. The yield 
assigned by us will not be more than 75% of the yield used by us to 
determine your coverage for the previous crop year. The production 
report or assigned yield will be used to compute your production 
history for the purpose of determining your coverage for the current 
crop year. If you have filed a claim for any crop year, the production 
used to determine the indemnity payment will be the production report 
for that year.
    (e) We may revise your final guarantee for any farm unit, and 
revise any indemnity paid based on that final guarantee, if we find 
that your production report under section 3(c) above:
    (1) is not supported by written verifiable records (see section 
1(oo) Production Report); or
    (2) fails to accurately report actual production.
    4. Contract Changes. We may change the coverage under this policy 
from year to year. Your crop insurance agent will have changes in 
policy provisions and program dates by the contract change date 
contained in the Crop Provisions. Your crop insurance agent will have 
changes in maximum amounts of insurance and premium rates 15 days 
before the cancellation date contained in the Crop Provisions. In 
addition, you will be notified, in writing, of these changes. Such 
notification will be made at least 30 days prior to the cancellation 
date of the insured crop for policy and program date changes, and 15 
days prior to the cancellation date of the insured crop for changes in 
the maximum amounts of insurance and premium rates.
    5. Liberalization. If we adopt any revisions which would broaden 
the coverage under this policy subsequent to the contract change date 
without additional premium, the broadened coverage will apply.
    6. Report of Acreage. (a) An annual acreage report must be 
submitted to us on our form for each insured crop in the county on or 
before the acreage reporting date shown in the Special Provisions. This 
report must include the following information, if applicable:
    (1) all acreage of the crop (insurable and not insured) in which 
you have a share;
    (2) your share at the time coverage begins;
    (3) the practice;
    (4) the type; and
    (5) the date the insured crop was planted.
    (b) If you do not have a share in any insured crop in the county 
for the crop year, you must submit an acreage report so indicating.
    (c) Because incorrect reporting on the acreage report may have the 
effect of changing your premium and any indemnity which may be due, you 
may not revise this report after the acreage reporting date without our 
consent.
    (d) We may elect to determine all premiums and indemnities based on 
the information you submit on the acreage report or upon the factual 
circumstances which we determine to have actually existed.
    (e) If you do not submit an acreage report by the acreage reporting 
date, or if you fail to report all units, we may elect to determine by 
unit the insurable crop acreage, share, type and practice or deny 
liability on any unit.
    (f) If the information reported by you on the acreage report for a 
unit results in a lower premium than the actual premium determined to 
be due on the basis of the share, acreage, practice, type or other 
material information determined to actually exist, the final guarantee 
or amount of insurance on the unit will be reduced proportionately. In 
the event that acreage is under-reported, all production or value from 
insurable acreage for the unit, whether or not reported as insurable, 
will be considered production or value to count in determining the 
indemnity.
    (g) Errors in reporting units may be corrected by us to reduce our 
liability and to conform to applicable unit division guidelines at the 
time of adjusting a loss.
    7. Annual Premium. (a) The annual premium is earned and payable at 
the time coverage begins. You will be billed for premium due not 
earlier than the billing date specified in the Special Provisions. The 
premium due, plus any accrued interest, will be considered delinquent 
if any amount due us is not paid on or before the termination date 
specified in the Crop Provisions.
    (b) Any amount due us will be deducted from any replant payment or 
indemnity due you under the provisions of this policy.
    (c) The annual premium amount is determined by:
    (1) Multiplying the approved yield times the coverage level, times 
the base rate specified in the County Actuarial Table, times the Base 
Price as defined in the Crop Provisions;
    (2) Multiplying the approved yield times the coverage level, times 
the CRC Revenue Rate specified in the CRC Factor Table, times the CRC 
Low Price Factor specified in the CRC Factor Table;

[[Page 35137]]

    (3) Multiplying the approved yield times the coverage level, times 
the base rate specified in the County Actuarial Table, times the CRC 
high price factor specified in the CRC Factor Table;
    (4) Adding items (1), (2), and (3) together;
    (5) Multiplying the result of item (4) above times the acres 
insured, times your share at the time coverage begins, and as 
applicable, times any Rate Map Adjustment factor; Rate Class Option 
factor and; Option factor specified in the County Actuarial Table;
    (6) Multiplying the approved yield times the coverage level, times 
the base rate specified in the County Actuarial Table, times the MPCI 
Market Price Election, times the insured acres, times your share at the 
time coverage begins, and as applicable, times any Rate Map Adjustment 
factor; Rate Class Option factor and; Option factor specified in the 
County Actuarial Table, and times the applicable producer subsidy 
percentage to calculate the appropriate amount of subsidy. The producer 
subsidy percentage is based upon the coverage level as follows:

75%=0.235
70%=0.319
65%=0.417
60%=0.412
55%=0.503
50%=0.600

    (7) Subtracting item (6) from item (5) above to determine the 
annual producer paid premium.
    8. Insured Crop. (a) The insured crop will be that shown on your 
accepted application and as specified in the Crop Provisions and must 
be grown on insurable acreage.
    (b) A crop which will NOT be insured will include, but will not be 
limited to, any crop:
    (1) if the farming practices carried out are not in accordance with 
the farming practices for which the premium rates and amounts of 
insurance have been established;
    (2) initially planted after the final planting date, unless we 
allow and you agree in writing on our form, to a coverage reduction 
(this Late Planting Agreement Option is available only on selected 
crops);
    (3) of a type, class or variety established as not adapted to the 
area or excluded by the Special Provisions;
    (4) that is a volunteer crop;
    (5) that is a second crop following the same crop (insured or not 
insured) harvested in the same crop year unless specifically permitted 
by the Crop Provisions or the Special Provisions;
    (6) which is planted for the development or production of hybrid 
seed or for experimental purposes, unless permitted by the Crop 
Provisions or unless we agree, in writing, to insure such crop; or
    (7) used for wildlife protection or management.
    9. Insurable Acreage. (a) Acreage planted to the insured crop in 
which you have a share is insurable unless it is acreage:
    (1) on which a crop has not been planted or harvested in at least 
one of the three previous crop years, unless FSA classifies such 
acreage as cropland;
    (2) which has been strip-mined, unless we agree in writing to 
insure such acreage;
    (3) on which the insured crop is damaged and it is practical to 
replant the insured crop, but the insured crop is not replanted;
    (4) which is planted with a crop other than the insured crop, 
unless allowed by the Crop Provisions; or
    (5) which is otherwise restricted by the Crop Provisions or Special 
Provisions.
    (b) If insurance is provided for an irrigated practice, you must 
report as irrigated only that acreage for which you have adequate 
facilities and water, at the time coverage begins, to carry out a good 
irrigation practice.
    (c) If acreage is irrigated and we do not provide a premium rate 
for an irrigated practice, you may either report and insure the 
irrigated acreage as ``nonirrigated,'' or report the irrigated acreage 
as not insured.
    (d) We may restrict the amount of acreage which we will insure to 
the amount allowed under any acreage limitation program established by 
the United States Department of Agriculture (USDA) if we notify you of 
that restriction prior to the sales closing date.
    10. Share Insured. (a) You may only insure your share as defined in 
section 1. ``Share'') above.
    (b) You as a landlord (or tenant) may insure your tenant's (or 
landlord's) share of the crop if evidence of the other party's approval 
of that insurance is demonstrated (Lease, Power of Attorney, etc.). The 
respective shares must be clearly set out on the acreage report and a 
copy of the other party's approval must be retained by us.
    11. Insurance Period. Coverage begins on each unit or part of a 
unit the later of the date you submit your application, when the 
insured crop is planted, or on the calendar date for the beginning of 
the insurance period if specified in the Crop Provisions, and ends at 
the earliest of:
    (a) total destruction of the insured crop on the unit;
    (b) harvest of the unit;
    (c) final adjustment of a loss on a unit;
    (d) the calendar date for the end of the insurance period contained 
in the Crop Provisions;
    (e) abandonment of the crop on the unit; or
    (f) as otherwise specified in the Crop Provisions.
    12. Causes of Loss. The insurance provided is against only 
unavoidable loss of revenue directly caused by specific causes of loss 
contained in the Crop Provisions. All other causes of loss, including 
but not limited to the following, are NOT covered:
    (a) negligence, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (b) the failure to follow recognized good farming practices for the 
insured crop;
    (c) water contained by any governmental, public, or private dam or 
reservoir project;
    (d) failure or breakdown of irrigation equipment or facilities; or
    (e) failure to carry out a good irrigation practice for the insured 
crop if applicable.
    13. Replanting Payment. (a) If allowed by the Crop Provisions, a 
replanting payment may be made on an insured crop replanted after we 
have given consent and the acreage replanted is at least the lesser of 
20 acres or 20 percent of the insured acreage for the unit (as 
determined on the final planting date).
    (b) No replanting payment will be made on acreage:
    (1) on which our appraisal establishes that production will exceed 
the level set by the Crop Provisions;
    (2) initially planted prior to the date established by the Special 
Provisions; or
    (3) on which one replanting payment has already been allowed for 
the crop year.
    (c) The replanting payment per acre will be your actual cost for 
replanting, but will not exceed the amount determined in accordance 
with the Crop Provisions.
    (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.
    (e) No replanting payment will be paid for replanting any crop if 
we determine it is not practical to replant (see section 1(mm)).
    14. Duties in the Event of Damage or Loss. Your Duties: (a) In case 
of damage to any insured crop you must:

[[Page 35138]]

    (1) protect the crop from further damage by providing sufficient 
care;
    (2) give us notice within 72 hours of your initial discovery of 
damage (but not later than 15 days after the end of the insurance 
period), by unit, for each insured crop; and
    (3) leave representative samples intact for each field of the 
damaged unit as may be required by the Crop Provisions.
    (b) You must obtain consent from us before, and notify us after 
you:
    (1) destroy any of the insured crop which is not harvested;
    (2) put the insured crop to an alternative use;
    (3) put the acreage to another use; or
    (4) abandon any portion of the insured crop.
    We will not give such consent if it is practical to replant the 
crop or until we have made an appraisal of the potential production of 
the crop.
    (c) In addition to complying with all other notice requirements, 
you must submit a claim for indemnity declaring the amount of your loss 
not later than 60 days after the end of the insurance period. This 
claim must include all the information we require to settle the claim.
    (d) Upon our request, you must:
    (1) provide a complete harvesting and marketing record of each 
insured crop by unit including separate records showing the same 
information for production from any acreage not insured; and
    (2) submit to examination under oath.
    (e) You must establish the total production or value received for 
the insured crop on the unit and that any loss of production or value 
has been directly caused by one or more of the insured causes (see Crop 
Provisions) during the insurance period.
    (f) All notices required in section 14 that must be received by us 
within 72 hours may be made by telephone or in person to your crop 
insurance agent but must be confirmed in writing within 15 days.
    Our Duties:
    (a) If you have complied with all the policy provisions we will pay 
your loss within 30 days after:
    (1) we reach agreement with you; or
    (2) the entry of a final judgment by a court of competent 
jurisdiction.
    (b) In the event we are unable to pay your loss within 30 days, we 
will give you notice of our intentions within the 30 day period.
    (c) We may defer the adjustment of a loss until the amount of loss 
can be accurately determined. We will not pay for additional damage 
resulting from your failure to provide sufficient care for the crop 
during the deferral period.
    (d) We recognize and apply the loss adjustment procedures 
established or approved by FCIC.
    15. Production Included in Determining Indemnities. (a) The total 
production to be counted for a unit will include all production 
determined in accordance with the Crop Provisions.
    (b) The amount of production of any unharvested insured crop may be 
determined on the basis of our field appraisals conducted after the end 
of the insurance period.
    16. Crops as Payment. You must not abandon any crop to us. We will 
not accept any crop as compensation for payments due us.
    17. Arbitration. If you and we fail to agree on any factual 
determination, disagreement will be resolved in accordance with the 
rules of the American Arbitration Association. Failure to agree with 
any factual determination made by FCIC must be resolved pursuant to 7 
CFR part 11.
    18. Access to Insured Crop and Record Retention. (a) We reserve the 
right to examine the insured crop as often as we reasonably require.
    (b) For three years after the end of the crop year, you must 
retain, and provide upon our request, complete records of the 
harvesting, storage, shipment, sale, or other disposition of all the 
insured crop produced on each unit. This requirement also applies to 
the records used to establish the basis for the production report for 
each unit. You must also upon our request, provide separate records 
showing the same information for production from any acreage not 
insured. We may extend the record retention period beyond three years 
by notifying you of such extension in writing. Your failure to keep and 
maintain such records may, at our option, result in:
    (1) cancellation of the policy;
    (2) assignment of production to units by us; or
    (3) a determination that no indemnity is due.
    (c) Any person designated by us will, at any time during the record 
retention period, have access:
    (1) to any records relating to this insurance at any location where 
such records may be found or maintained; and
    (2) to the farm.
    (d) By applying for insurance under the Act or by continuing 
insurance previously applied for, you authorize us, or any person 
acting for us, to obtain records relating to the insured crop from any 
person who may have custody of those records including, but not limited 
to, county FSA offices, banks, warehouses, gins, cooperatives, 
marketing associations, accountants, etc. You must assist us in 
obtaining all records which we request from third parties.
    19. Other Insurance. (a) Other Like Insurance.
    You must not obtain any other crop insurance issued under the 
authority of the Act on your share of the insured crop. If we determine 
that more than one policy on your share is intentional, you may be 
subject to the fraud provisions under this policy. If we determine that 
the violation was not intentional, the policy with the earliest date of 
application will be in force and all other policies will be void. 
Nothing in this section (19(a)) prevents you from obtaining other 
insurance not issued under the Act.
    (b) Other Insurance Against Fire.
    If you have other insurance, whether valid or not, against damage 
to the insured crop by fire during the insurance period we will be 
liable for loss for the smaller of:
    (1) the amount of indemnity determined pursuant to this policy 
without regard to any other insurance; or
    (2) the amount by which the loss is determined to exceed the 
indemnity paid or payable under such other insurance.
    For the purpose of this section (19(b)(2)), the amount of loss will 
be the reduction in revenue of the insured crop on the unit involved 
determined pursuant this policy.
    20. Conformity to Food Security Act. Although your violation of a 
number of federal statutes, including the Act, may cause cancellation, 
termination, or voidance of your insurance contract, you should be 
aware that your policy will be canceled if you are determined to be 
ineligible to receive benefits under the Act due to violation of the 
Controlled Substance Provision (Title XVII) of the Food Security Act of 
1985 (Pub. L. 99-198), as amended, and the regulations promulgated 
under the Act by the USDA. Your insurance policy will be canceled if 
you are determined, by the appropriate USDA Agency, to be in violation 
of these provisions. We will recover any and all monies paid to you or 
received by you and your premium will be refunded.
    21. Amounts Due Us. (a) Interest will accrue at the rate of one and 
one-fourth percent (1\1/4\%) simple interest per calendar month, or any 
part thereof, on any unpaid amount due us. For the purpose of premium 
amounts due us, interest will start on the first day of the month 
following the premium billing date specified in the Special Provisions.

[[Page 35139]]

    (b) For the purpose of any other amounts due us, such as repayment 
of indemnities found not to have been earned, interest will start on 
the date that notice is issued to you for the collection of the 
unearned amount. Amounts found due under this section (21(b)) will not 
be charged interest if payment is made within 30 days of issuance of 
the notice by us. The amount will be considered delinquent if not paid 
within 30 days of the date the notice is issued by us.
    (c) All amounts paid will be applied first to expenses of 
collection (see section 21(d) below) if any, second, to the reduction 
of accrued interest, and then to the principal balance.
    (d) If we determine that it is necessary to contract with a 
collection agency or to employ an attorney to assist in collection, you 
agree to pay all of the expenses of collection. Those expenses will be 
paid before the application of any amounts to interest or principal.
    22. Legal Action Against Us. (a) You may not bring legal action 
against us unless you have complied with all of the policy provisions.
    (b) If you do take legal action against us you must do so within 12 
months of the date of denial of the claim. Suit must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c).
    (c) Your right to recover damages (compensatory, punitive, or 
other), attorney's fees, or other charges is limited or excluded by 
this contract or by Federal Regulations.
    23. Payment and Interest Limitations. (a) Under no circumstances 
will we be liable for the payment of damages (compensatory, punitive, 
or other), attorney's fees, or other charges in connection with any 
claim for indemnity, whether we approve or disapprove such claim.
    (b) We will pay simple interest computed on the net indemnity 
ultimately found to be due by us or by a final judgment of a court of 
competent jurisdiction, from and including the 61st day after the date 
you sign, date, and submit to us the properly completed claim on our 
form. Interest will be paid only if the reason for our failure to 
timely pay is NOT due to your failure to provide information or other 
material necessary for the computation or payment of the indemnity. The 
interest rate will be that established by the Secretary of the Treasury 
under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), 
and published in the Federal Register semiannually on or about January 
1 and July 1 of each year and may vary with each publication.
    24. Concealment, Misrepresentation or Fraud. This policy will be 
void in the event you have falsely or fraudulently concealed either the 
fact that you are restricted from receiving benefits under the Federal 
Crop Insurance Act or that action is pending which may restrict your 
eligibility to receive such benefits. We will also void this policy if 
you or anyone assisting you has intentionally concealed or 
misrepresented any material fact relating to this or any other FCIC or 
FCIC reinsured policy. This voidance will not affect your obligation to 
pay premiums or waive any of our rights under this policy, including 
the right to collect any amount due us. The voidance will be effective 
as of the time coverage began for the crop year within which such act 
occurred.
    25. Transfer of Coverage and Right to Indemnity. If you transfer 
any part of your share during the crop year, you may transfer your 
coverage rights. The transfer must be on our form and approved by us. 
Both you and the person to whom you transfer your interest are jointly 
and severally liable for the payment of the premium. The transferee has 
all rights and responsibilities under this policy consistent with the 
transferee's interest.
    26. Assignment of Indemnity. You may assign to another party your 
right to an indemnity for the crop year. The assignment must be on our 
form and will not be effective until approved in writing by us. The 
assignee will have the right to submit all loss notices and forms as 
required by the policy.
    27. Subrogation (Recovery of Loss From a Third Party). Because you 
may be able to recover all or a part of your loss from someone other 
than us, you must do all you can to preserve this right. If we pay you 
for your loss, your right to recovery will, at our option, belong to 
us. If we recover more than we paid you plus our expenses, the excess 
will be paid to you.
    28. Descriptive Headings. The descriptive headings of the various 
policy provisions are formulated for convenience only and are not 
intended to affect the construction or meaning of any of the policy 
provisions.
    29. Notices. All notices required to be given by you must be in 
writing and received by your crop insurance agent within the designated 
time unless otherwise provided by the notice requirement. Notices 
required to be given immediately may be by telephone or in person and 
confirmed in writing. Time of the notice will be determined by the time 
of our receipt of the written notice. If the date by which you are 
required to submit a report or notice falls on Saturday, Sunday, or a 
Federal holiday, or, if your agent's office is, for any reason, not 
open for business on the date you are required to submit such notice or 
report, such notice or report must be submitted on the next business 
day. All notices and communications required to be sent by us to you 
will be mailed to the address contained in your records located with 
your crop insurance agent. You should advise us immediately of any 
change of address.

Crop Revenue Coverage

Wheat Provisions

    This is a risk management program. This risk management tool will 
be insured under the authority provided by the Federal Crop Insurance 
Act, as amended. If a conflict exists among the Crop Revenue Coverage 
Policy, these Crop Provisions, and the Special Provisions, the Special 
Provisions will control these Crop Provisions and the Crop Revenue 
Coverage Policy and these Crop Provisions will control the Crop Revenue 
Coverage policy.
1. Definitions
    (a) Adequate stand--A population of live plants per unit of acreage 
which will produce at least the yield used to establish your Minimum 
Guarantee.
    (b) Average daily settlement price--see the appropriate definition 
contained in the Commodity Exchange Endorsement to this policy.
    (c) Base price--see the appropriate definition contained in the 
Commodity Exchange Endorsement to this policy.
    (d) Calculated revenue--the production to count multiplied by the 
Harvest Price.
    (e) Days--calendar days.
    (f) Final guarantee--The number of dollars guaranteed per acre 
determined as the higher of the Minimum Guarantee or the Harvest 
Guarantee; defined as:
    (1) Minimum Guarantee--the approved yield per acre multiplied by 
the Base Price multiplied by the coverage level percentage you elect.
    (2) Harvest Guarantee--the approved yield per acre multiplied by 
the Harvest Price, multiplied by the coverage level percentage you 
elect.
    (g) Final planting date--The date contained in the Special 
Provisions by which the insured crop must initially be planted in order 
to be insured for the full final guarantee.
    (h) Good farming practices--The cultural practices necessary for 
the insured crop to make usual and normal progress toward maturity and 
which can be expected to produce at least the yield used to determine 
the Minimum Guarantee. Good farming practices are generally those in 
use in the county for production of the insured crop and are recognized 
by the Cooperative

[[Page 35140]]

Extension Service as compatible with agronomic and weather conditions 
in the area.
    (i) Harvest--Combining or threshing the insured crop for grain or 
cutting for hay or silage on any acreage. A crop which is swathed prior 
to combining is not considered harvested.
    (j) Harvest price--see the appropriate definition contained in the 
Commodity Exchange Endorsement to this policy.
    (k) Initially planted--The first occurrence of planting the insured 
crop on insurable acreage for the crop year.
    (l) 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.
    (m) 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 Minimum Guarantee on the irrigated acreage planted to the 
insured crop.
    (n) Late planted--Acreage planted during the late planting period.
    (o) Late planting period--(not applicable for fall-planted wheat)--
The period that begins the day after the final planting date for the 
insured crop and ends twenty-five (25) days after the final planting 
date.
    (p) Latest final planting date--
    (1) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for spring-planted acreage only;
    (2) The final planting date for fall-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for fall-planted acreage only; or
    (3) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate final planting 
dates for both spring-planted and fall-planted acreage.
    (q) Local market price--The cash grain price per bushel for the 
U.S. No. 2 grade of the insured crop offered by buyers in the area in 
which you normally market the insured crop. The local market price will 
reflect the maximum limits of quality deficiencies allowable for the 
U.S. No. 2 grade of the insured crop. Factors not associated with 
grading under the Official United States Standards for Grain, including 
but not limited to protein, oil or moisture content, or milling quality 
will not be considered.
    (r) Nurse crop (companion crop)--A crop planted into the same 
acreage as another crop, that is intended to be harvested separately, 
and which is planted to improve growing conditions for the crop with 
which it is grown.
    (s) 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 which 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 will be considered planted.
    (t) Practical to replant--(section 1.(``Practical to replant'') of 
the Crop Revenue Coverage Insurance Policy does not apply to wheat.) 
Our determination, after loss or damage to the insured crop, based on 
factors, including but not limited to moisture availability, condition 
of the field, time to crop maturity, etc., that a replanting of the 
insured crop will attain maturity in the remainder of the crop year. It 
will not be considered practical to replant after the end of the late 
planting period or the final planting date if a late planting period is 
not applicable except that it may be determined practical to replant 
after the end of the late planting period or the final planting date if 
such practice is generally occurring in the area (see section 7).
    (u) Prevented planting--Inability to plant the insured crop with 
proper equipment by the latest final planting date designated in the 
Special Provisions for the insured crop in the county or the end of the 
late planting period if applicable. You must have been unable to plant 
the insured crop due to an insured cause of loss that has prevented the 
majority of producers in the surrounding area from planting the same 
crop.
    (v) Prevented planting guarantee--The prevented planting guarantee 
for such acreage will be that percentage of the final guarantee for 
timely planted acres as set forth in section 12(d).
    (w) Replanting--Performing the cultural practices necessary to 
replace seed for the insured crop, and replacing the seed in the 
insured acreage with the expectation of growing a successful crop.
    (x) Swathed--Severance of the stem and grain head from the ground 
without removal of the seed from the head and placing into a windrow.
    (y) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions.
    (z) Wheat--Wheat for grain only.
    2. Unit Division
    Unless limited by the Special Provisions, a unit as defined in 
section 1 ``Unit'' of the Crop Revenue Coverage Insurance Policy may be 
divided into optional units if, for each optional unit you claim, all 
the conditions of this section are met, or if we agree to such division 
in writing. Optional units must be established at the time you file 
your report of acreage for each crop year.
    (a) You must have verifiable records of planted acreage and 
production for each optional unit for at least the last crop year used 
to determine your Minimum Guarantee.
    (b) You must plant the crop in a manner which results in a clear 
and discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have measurements of stored production or market 
production from each optional unit in a manner that permits us to 
verify the production from the optional unit.
    (d) Each optional unit must meet one or more of the following:
    (1) 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 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. In areas which have not 
been surveyed using the systems identified above or another system 
approved by us, and in areas where boundaries are not readily 
discernable, each optional unit must be located in a separate FSA Farm 
Serial Number.
    (2) 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 established if each optional unit contains only 
irrigated acreage or only non-irrigated acreage. The irrigated acreage 
may not extend beyond the point at which your irrigation system can 
deliver the quantity of water needed to produce the yield on which your 
Minimum Guarantee is based. You must plant, cultivate, fertilize, or 
otherwise care for the irrigated acreage and the non-irrigated acreage 
in an appropriate manner.
    (3) Optional Units by Initially Planted Winter Wheat or Initially 
Planted Spring Wheat: In addition to or instead of establishing 
optional units by section, section equivalent, or FSA Farm Serial 
Number as described in section 2.(d)(1) or by irrigated and non-
irrigated practices as described in section

[[Page 35141]]

2.(d)(2), optional units may be established if each optional unit 
contains only initially planted winter wheat or only initially planted 
spring wheat. Optional units may be established in this manner only in 
counties having both fall and spring final planting dates as designated 
by the Special Provisions. Basic units may not be divided into optional 
units on any basis (production practice, type, variety, planting 
period, etc.) other than as described under this section. If you do not 
comply fully with these conditions, we will combine all optional units 
which are not established in compliance with these provisions into the 
basic unit from which they were formed. We may do this at any time we 
discover that you have failed to comply with these conditions. If 
failure to comply with these provisions is determined to be 
inadvertent, and if the optional units are combined, the premium paid 
for electing optional units will be refunded to you.
3. Coverage Level
    In addition to the requirements of section 3 (Coverage Level) of 
the Crop Revenue Coverage Insurance Policy, all the insurable wheat in 
the county insured as grain under this policy will have the same 
coverage level election.
4. Contract Changes
    In accordance with section 4 (Contract changes) in the Crop Revenue 
Coverage Insurance Policy), the contract change date is December 31 
preceding the cancellation date for counties with an March 15 
cancellation date and June 30 preceding the cancellation date for all 
other counties.
5. Cancellation and Termination Dates
    The cancellation and termination dates are:

----------------------------------------------------------------------------------------------------------------
          Crop, state and county                     Cancellation date                   Termination date       
----------------------------------------------------------------------------------------------------------------
Wheat:                                                                                                          
    All Colorado counties except Alamosa,  September 30.........................  September 30.                 
     Archuleta, Conejos, Costilla,                                                                              
     Custer, Delta, Dolores, Eagle,                                                                             
     Garfield, Grand, La Plata, Mesa,                                                                           
     Moffat, Montezuma, Montrose, Ouray,                                                                        
     Pitkin, Rio Blanco, Rio Grande,                                                                            
     Routt, Saguache, and San Miguel                                                                            
     Counties; all Iowa Counties except                                                                         
     Plymouth, Cherokee, Buena Vista,                                                                           
     Pocahontas, Humbolt, Wright,                                                                               
     Franklin, Butler, Black Hawk,                                                                              
     Buchanan, Delaware, and Dubuque                                                                            
     Counties and all Iowa counties north                                                                       
     thereof; all Wisconsin Counties                                                                            
     except Trempealeau, Jackson, Wood,                                                                         
     Portage, Waupaca, Outagamie, Brown,                                                                        
     and Kewaunee Counties and all                                                                              
     Wisconsin counties north and west                                                                          
     thereof; and all other states except                                                                       
     Alaska, Arizona, California,                                                                               
     Connecticut, Idaho, Maine,                                                                                 
     Massachusetts, Minnesota, Montana,                                                                         
     Nevada, New Hampshire, New York,                                                                           
     North Dakota, Oregon, Rhode Island,                                                                        
     South Dakota, Utah, Vermont,                                                                               
     Washington, and Wyoming.                                                                                   
    Archuleta, Custer, Delta, Dolores,     September 30.........................  November 30.                  
     Eagle, Garfield, Grand, La Plata,                                                                          
     Mesa, Moffat, Montezuma, Montrose,                                                                         
     Ouray, Pitkin, Rio Blanco, Routt,                                                                          
     and San Miguel Counties, Colorado;                                                                         
     Connecticut; Idaho; Plymouth,                                                                              
     Cherokee, Buena Vista, Pocahontas,                                                                         
     Humboldt, Wright, Franklin, Butler,                                                                        
     Black Hawk, Buchanan, Delaware, and                                                                        
     Dubuque Counties, Iowa, and all Iowa                                                                       
     counties north thereof;                                                                                    
     Massachusetts; all Montana counties                                                                        
     except Daniels, Roosevelt, Sheridan,                                                                       
     and Valley Counties; New York;                                                                             
     Oregon; Rhode Island; all South                                                                            
     Dakota counties except Harding,                                                                            
     Perkins, Corson, Walworth, Edmonds,                                                                        
     Faulk, Spink, Beadle, Jerauld,                                                                             
     Aurora, Douglas, and Bon Homme                                                                             
     Counties and all South Dakota                                                                              
     counties north and east thereof;                                                                           
     Washington; and all Wyoming counties                                                                       
     except Big Horn, Fremont, Hot                                                                              
     Springs, Park, and Washakie Counties.                                                                      
    Matanuska-Susitna County, Alaska;      October 31...........................  November 30                   
     Arizona; California; Nevada; and                                                                           
     Utah.                                                                                                      
    All Alaska Counties except Matanuska-  March 15.............................  March 15.                     
     Susitna County; Alamosa, Conejos,                                                                          
     Costilla, Rio Grande, and Saguache                                                                         
     Counties, Colorado; Maine;                                                                                 
     Minnesota; Daniels, Roosevelt,                                                                             
     Sheridan, and Valley Counties,                                                                             
     Montana; New Hampshire; North                                                                              
     Dakota; Harding, Perkins, Corson,                                                                          
     Walworth, Edmunds, Faulk, Spink,                                                                           
     Beadle, Jerauld, Aurora, Douglas,                                                                          
     and Bon Homme Counties, South                                                                              
     Dakota, and all South Dakota                                                                               
     counties north and east thereof;                                                                           
     Vermont; Trempealeau, Jackson, Wood,                                                                       
     Portage, Waupaca, Outagamie, Brown,                                                                        
     and Kewaunee Counties, Wisconsin,                                                                          
     and all Wisconsin counties north and                                                                       
     west thereof; Big Horn, Fremont, Hot                                                                       
     Springs, Park, and Washakie                                                                                
     Counties, Wyoming.                                                                                         
----------------------------------------------------------------------------------------------------------------

6. Insured Crop
    (a) In accordance with section 8 (Insured Crop) of the Crop Revenue 
Coverage Insurance Policy, the crop insured will be wheat you elect to 
insure, that is grown in the county on insurable acreage, and for which 
premium rates are provided by the County Actuarial Table and Crop 
Revenue Coverage Factor Table:
    (1) in which you have a share;
    (2) that is planted for harvest as grain
    (3) that is not:
    (i) Interplanted with another crop except as allowed in section 
6(a)(2);
    (ii) Planted into an established grass or legume; or
    (iii) Planted as a nurse crop, unless planted as a nurse crop for 
new forage seeding, but only if seeded at a normal rate and intended 
for harvest as grain.
    (b) If you anticipate destroying any acreage prior to harvest you:
    (1) may report all planted acreage when you report your acreage for 
the crop year and specify any acreage to be destroyed as uninsurable 
acreage. (By doing so, no coverage will be considered to have attached 
on the specified acreage and no premium will be due for such acreage. 
If you do not destroy such acreage, you will be subject to the under-
reporting provisions contained in section 6(f) of the Crop Revenue 
Coverage Insurance Policy); or
    (2) if the County Actuarial Table provides a reduced premium rate 
for acreage destroyed by a date designated in the Special Provisions, 
you may report all planted acreage as insurable when you report your 
acreage for the crop year. Premium will be due on all the acreage. Your 
premium amount will be reduced by the amount shown on the County 
Actuarial Table for any acreage you destroy prior to a date designated 
in the Special Provisions if you do not claim an indemnity on such 
acreage. In accordance with section 14(b) of the Crop Revenue Coverage 
Insurance Policy, you must obtain our consent before and give us notice 
after you destroy any of the insured crop so your acreage report can be 
revised to make you eligible for this reduction in premium.
7. Insurance Period
    In lieu of the requirements under section 11 (Insurance Period) of 
the Crop Revenue Coverage Insurance Policy the insurance period is as 
follows:

[[Page 35142]]

    (a) Insurance attaches on each unit or part thereof on the later of 
the date we accept your application or the date the insured crop is 
planted subject to the following limitations:
    (1) The acreage must be planted on or before the final planting 
date designated in the Special Provisions for the type (winter or 
spring) except as allowed in section 12(c).
    (2) Whenever the Special Provisions designate only a fall final 
planting date, any acreage of winter wheat damaged before such final 
planting date, to the extent that growers in the area would normally 
not further care for the crop, must be replanted to a winter type of 
the insured crop unless we agree that replanting is not practical.
    (3) Whenever the Special Provisions designate both fall and spring 
final planting dates, winter wheat planted on or before the fall final 
planting date which is damaged:
    (i) Before the fall planting final planting date, to the extent 
that growers in the area would normally not further care for the crop, 
must be replanted to a winter type of the insured crop unless we agree 
that replanting is not practical.
    (ii) On or after the fall final planting date, but before the 
spring final planting date, to the extent that growers in the area 
would normally not further care for the crop, must be replanted to an 
appropriate variety of the insured crop unless we agree that replanting 
is not practical.
    (4) Whenever the Special Provisions designate only a spring final 
planting date;
    (i) Any acreage of spring wheat damaged before such final planting 
date, to the extent that growers in the area would normally not further 
care for the crop, must be replanted to a spring type of the insured 
crop unless we agree that replanting is not practical; and
    (ii) Whenever the Special Provisions designate only a spring final 
planting date, any acreage of fall planted wheat is not insured unless 
you request such coverage and we agree in writing that the acreage has 
an adequate stand in the spring to produce the yield used to determine 
your Minimum Guarantee. Insurance will then attach to acreage having an 
adequate stand on the earlier of the spring final planting date or the 
date we agree to accept the acreage for insurance. If such fall planted 
acreage is not to be insured it must be recorded on the acreage report 
as an uninsured fall planted crop.
    (b) Insurance ends on each unit at the earliest of:
    (1) total destruction of the insured crop on the unit;
    (2) harvest of the unit;
    (3) final adjustment of a loss on the unit;
    (4) September 25 following planting in Alaska, or October 31 of the 
calendar year in which the crop is normally harvested in all other 
States; or
    (5) abandonment of the crop on the unit.
8. Causes of Loss
    In addition to the provisions under section 12 (Causes of Loss) of 
the Crop Revenue Coverage Insurance Policy, any loss covered by this 
policy must occur within the insurance period. The specific causes of 
loss for wheat are:
    (a) adverse weather conditions;
    (b) fire;
    (c) insects, but not damage allowed because of insufficient or 
improper application of pest control measures;
    (d) plant disease, but not damage allowed because of insufficient 
or improper application of disease control measures;
    (e) wildlife;
    (f) earthquake;
    (g) volcanic eruption;
    (h) failure of the irrigation water supply; or
    (i) Any difference between the Base Price and the Harvest Price.
9. Replanting Payments
    (a) A replant payment for wheat only is allowed as follows:
    (1) You comply with all requirements regarding replanting payments 
contained under section 13 (Replanting Payment) of the Crop Revenue 
Coverage Insurance Policy Basic Provisions;
    (2) The wheat must be damaged by an insurable cause of loss to the 
extent that the remaining stand will not produce at least 90 percent of 
the Minimum Guarantee for the acreage;
    (3) The acreage must have been initially planted to spring wheat in 
those counties with only a spring final planting date;
    (4) The damage must occur after the fall final planting date in 
those counties where both a fall and spring final planting date are 
designated;
    (5) Replanting must take place not later than 25 days after the 
spring final planting date; and
    (6) The replanted wheat must be seeded at a rate that is normal for 
initially planted wheat (if new seed is planted at a reduced seeding 
rate into a partially damaged stand of wheat, the acreage will not be 
eligible for a replanting payment).
    (b) No replanting payment will be made for acreage initially 
planted to winter wheat in any county for which the Special Provisions 
contain only a fall final planting date.
    (c) In accordance with section 13.(c) of the Crop Revenue Coverage 
Insurance Policy, the maximum amount of the replanting payment per acre 
will be the lesser of twenty percent (20%) of the Minimum Guarantee or 
3 bushels, times the Base Price times your share.
    (d) When wheat is replanted using a practice that is uninsurable 
for an original planting, the liability for the unit will be reduced by 
the amount of the replanting payment. The premium amount will not be 
reduced.
10. Duties in the Event of Damage or Loss
    In addition to your duties under section 14 of the Crop Revenue 
Coverage Insurance Policy, if you initially discover damage to any 
insured crop within 15 days of, or during harvest, you must leave 
representative samples of the unharvested crop for our inspection. The 
samples must be at least 10 feet wide and the entire length of each 
field in the unit, and must not be harvested or destroyed until the 
earlier of our inspection or 15 days after harvest of the balance of 
the unit is completed.
11. Settlement of Claim
    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production that are acceptable to us 
for any:
    (1) optional unit, we will combine all optional units for which 
acceptable records of production were not provided; or for any
    (2) basic unit, we will allocate any commingled production to such 
units in proportion to our liability on the harvested acreage for each 
unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any insured unit of wheat by:
    (1) Multiplying the insured acreage of wheat by the final 
guarantee;
    (2) Subtracting the Calculated Revenue from the result of section 
11(b)(1); and
    (3) Multiplying the result by your share.
    If the result of section 11(b)(3) is greater than zero, an 
indemnity will be paid. If the result of section 11(b)(3) is less than 
zero, no indemnity will be due.
    (c) The total production (bushels) to count from all insurable 
acreage on the unit will include:
    (1) all appraised production as follows:
    (i) Not less than that amount of production that when multiplied by 
the Harvest Price equals the Final Guarantee for acreage:

[[Page 35143]]

    (A) which is abandoned;
    (B) put to another use without our consent;
    (C) damaged solely by uninsured causes; or
    (D) for which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance 
with section 11(d));
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and 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 put the acreage to 
another use or abandon the crop. If:
    (A) agreement on the appraised amount of production is not reached, 
you may elect to continue to care for the crop, or we will give you 
consent to put the acreage to another use if you agree to leave 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 you 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.
    (B) you elect to continue to care for the crop, we will determine 
the amount of production to count for the acreage using the harvested 
production, or our reappraisal if additional damage occurs and the crop 
is not harvested.
    (2) all harvested production from the insurable acreage.
    (d) Mature wheat production may be adjusted for excess moisture and 
quality deficiencies.
    (1) Production will be reduced by 12% for each .1 percentage point 
of moisture in excess of 13.5 percent for wheat. We may obtain samples 
of the production to determine the moisture content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain, result in wheat not meeting the grade 
requirements for U.S. No. 4 (grades U.S. No. 5 or worse) because of 
test weight, total damaged kernels (excluding heat damage), shrunken or 
broken kernels, or defects (excluding foreign material and heat 
damage), or grading garlicky, light smutty, smutty or ergoty;
    (ii) Substances or conditions are present, including mycotoxins, 
that are identified by the Food and Drug Administration or other public 
health organizations of the United States as being injurious to human 
or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance specified in section 8;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or 
by a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grain grader licensed under the 
authority of the United States Grain Standards Act or the United States 
Warehouse Act with regard to deficiencies in quality, or by a 
laboratory approved by us with regard to substances or conditions 
injurious to human or animal health. Test weight for quality adjustment 
purposes may be determined by our loss adjustor.
    (4) Production of wheat that is eligible for quality adjustment, as 
specified in sections 11(d)(2) and 11(d)(3), will be reduced by the 
quality adjustment factor contained in the Special Provisions.
    (e) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.
12. Late Planting and Prevented Planting
    (a) In lieu of section 8(b)(2) and section 1 ``Late planting 
agreement option'') of the Crop Revenue Coverage Insurance Policy, 
insurance will be provided for acreage planted to the insured crop 
during the late planting period (see section 12(c)), and acreage you 
were prevented from planting (see section 12(d)). These coverages 
provide reduced guarantees. The reduced guarantees will be combined 
with the final guarantee for timely planted acreage for each unit. The 
premium amount for late planted acreage and eligible prevented planting 
acreage will be the same as that for timely planted acreage. If the 
amount of premium you are required to pay (gross premium less our 
subsidy) for late planted acreage or prevented planting acreage exceeds 
the liability on such acreage, coverage for those acres will not be 
provided (no premium will be due and no indemnity will be paid for such 
acreage). For example, assume you insure one unit in which you have a 
100 percent share. The unit consists of 150 acres, of which 50 acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the final guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre final 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre final guarantee 
for timely planted acreage by 93 percent (0.93) and multiply the result 
by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre final 
guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute 
crop for harvest after the 10th day following the latest final planting 
date for the insured crop.
    The total of the three calculations will be the final guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre Minimum Guarantee for timely planted acreage by the 150 acres 
in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For spring-planted wheat acreage in counties for which the 
Special Provisions designate a spring final planting date, the Minimum 
Guarantee for each acre will be reduced for each day planted after the 
final planting date by:
    (i) One percent (.01) per day for the first through the tenth day; 
and
    (ii) Two percent (.02) per day for the eleventh through the twenty-
fifth day.
    (2) In addition to the requirements of section 6 (Report of 
Acreage) of the Crop Revenue Coverage Insurance Policy, you

[[Page 35144]]

must report the dates the acreage is planted within the late planting 
period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions; 
or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
section 1 ``Coverage begins, date''), you may elect:
    (i) To plant the insured crop during the late planting period. The 
final guarantee for such acreage will be determined in accordance with 
section 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the 
late planting period. In either case, the prevented planting guarantee 
for such acreage will be 50 percent (50%) of the final guarantee for 
timely planted acres. In counties for which the Special Provisions 
designate a spring final planting date, the prevented planting 
guarantee will be based on your final guarantee for spring-planted 
acreage of the insured crop. For example, if your final guarantee for 
timely planted acreage is 120 dollars per acre, your prevented planting 
guarantee would be 60 dollars per acre (120 dollars multiplied by 
0.50). If you elect to plant the insured crop after the late planting 
period, production to count for such acreage will be determined in 
accordance with sections 11 (c) through (e); or
    (iii) Not to plant the intended crop but plant a substitute crop 
for harvest, in which case:
    (A) No prevented planting guarantee will be provided for such 
acreage if the substitute crop is planted on or before the tenth day 
following the latest final planting date for the insured crop; or
    (B) A prevented planting guarantee equal to twenty-five percent 
(25%) of the final guarantee for timely planted acres will be provided 
for such acreage, if the substitute crop is planted after the tenth day 
following the latest final planting date for the insured crop. If you 
elected to exclude this coverage, and plant a substitute crop, no 
prevented planting coverage will be provided. For example, if your 
final guarantee for timely planted acreage is 120 dollars per acre, 
your prevented planting guarantee would be 30 dollars per acre (120 
dollars multiplied by 0.25). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for harvest and 
receive a reduction in the applicable premium rate. If you wish to 
exclude this coverage, you must so indicate, on or before the sales 
closing date, on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable 
sales closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to 
plant and produce the intended crop with the expectation of at least 
producing the Minimum Guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Crop Revenue Coverage Insurance Policy, the insurance period for 
prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application 
for insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for 
the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase insurance for wheat for the 1996 crop 
year, prevented planting coverage will begin on the 1996 sales closing 
date for the insured crop in the county. If the wheat coverage remains 
in effect for the 1997 crop year (is not terminated or canceled during 
or after the 1996 crop year, except the policy may have been canceled 
to transfer the policy to a different insurance provider, if there is 
no lapse in coverage), prevented planting coverage for the 1997 crop 
year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all FSA Farm Serial Numbers in 
which you have a share, adjusted for any reconstitution that may have 
occurred on or before the sales closing date. Eligible acreage for each 
FSA Farm Serial Number is determined as follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop on the FSA Farm 
Serial Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to the insured crop during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which 
prevented you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less 
than 20 acres or 20 percent of the acreage in the unit will be presumed 
to have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the County Actuarial Table does not designate a 
premium rate unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four 
years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a 
cover crop (see section 12(d)(1)(ii)) or a substitute crop (see section 
12(d)(1)(ii))) unless you provide adequate records of acreage and 
production showing that the acreage has a history of double-cropping in 
each of the last four years;
    (F) For which planting history or conservation plans indicate that 
the

[[Page 35145]]

acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be 
reduced by the number of acres of the insured crop that are timely 
planted and late planted, if the late planting period is applicable. 
For example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of the insured crop on one optional unit and 40 acres of the 
insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Crop Revenue Coverage Insurance Policy, you must report 
by unit any insurable acreage that you were prevented from planting. 
This report must be submitted on or before the acreage reporting date 
for spring-planted acreage of the insured crop in counties for which 
the Special Provisions designates a spring final planting date, or the 
acreage reporting date for fall-planted acreage of the insured crop in 
counties for which the Special Provisions designates a fall final 
planting date only. For the purpose of determining acreage eligible for 
a prevented planting guarantee, the total amount of prevented planting 
and planted acres cannot exceed the maximum number of acres eligible 
for prevented planting coverage. Any acreage you report in excess of 
the number of acres eligible for prevented planting coverage, or that 
exceeds the number of eligible acres physically located in a unit, will 
be deleted from your acreage report.

    Signed in Washington, DC, on June 23, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-16911 Filed 6-27-97; 8:45 am]
BILLING CODE 3410-08-P