[Federal Register Volume 62, Number 155 (Tuesday, August 12, 1997)]
[Proposed Rules]
[Pages 43236-43260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21303]
[[Page 43235]]
_______________________________________________________________________
Part III
Department of Agriculture
_______________________________________________________________________
Federal Crop Insurance Corporation
_______________________________________________________________________
7 CFR Part 457
Common Crop Insurance Regulations; Basic Provisions; and Various Crop
Insurance Provisions: Proposed Rule
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 /
Proposed Rules
[[Page 43236]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AB03
Common Crop Insurance Regulations; Basic Provisions; and Various
Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Common Crop Insurance Regulations to delete the late and
prevented planting provisions currently contained in many Crop
Provisions, incorporate revised late and prevented planting provisions
into the Common Crop Insurance Policy Basic Provisions, and add
definitions and provisions that are common to most crops. The intended
effect of this action is to provide policy changes that meet the needs
of the insured, are easier to administer, and to delete repetitive
provisions contained in various Crop Provisions.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business September 11, 1997, and will be
considered when the rule is to be made final.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131.
FOR FURTHER INFORMATION CONTACT: Louise Narber, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, at the Kansas City, MO, address
listed above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined this rule
to be significant, and therefore, this rule has been reviewed by OMB.
Cost-Benefit Analysis
A Cost-Benefit Analysis has been completed and is available to
interested persons at the Kansas City address listed above. In summary,
the analysis finds that the proposed rule makes several major changes
in the implementation of prevented planting provisions. Specifically,
the proposed rule: (1) eliminates substitute crop benefits, largely to
reduce the likelihood of moral hazard; (2) increases prevented planting
for cover crop or black dirt situations, providing better protection to
producers who are truly unable to plant a crop for harvest; and (3)
simplifies the payment method, making payments on an acre-by-acre basis
in all cover crop/black dirt situations. These provisions are designed
to improve the protection provided to producers in adverse prevented
planting situations, and to simplify program operation.
Because this proposed rule is expected to be implemented in an
actuarially sound manner, there are no associated excess losses that
will be incurred by the Federal government in the aggregate. Two
provisions--the increase in coverage in black dirt/cover crop
situations provision and the ``separate payment'' provision--are
expected to result in an increase in indemnities and, thus, an increase
in rates. The elimination in substitute crop provisions results in
reduced indemnities, and a rate decline in the aggregate. The net
effect of these changes is likely to be small in terms of the rate
impact, and will vary according to crop and location. Because of the
small expected average rate impact, any changes in reimbursements to
private companies for delivery or any underwriting gains are also
expected to be small. The amendments made to these regulations will
simplify program operations, benefit producers, FCIC, and reinsured
companies, and conform with the Federal Crop Insurance Reform and
Department of Agriculture Reorganization Act of 1994.
Paperwork Reduction Act of 1995
The information collection requirements contained in these
regulations are being reviewed by OMB pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number
0563-0053. The Basic Provisions and Various Crop Insurance Provisions
are described in the background.
The title of this information collection is ``Multiple Peril Crop
Insurance.'' The information to be collected includes a crop insurance
application and an acreage report. Information collected from the
application and an acreage report is electronically submitted to FCIC
by the reinsured companies. Potential respondents to this information
collection are producers that are eligible for Federal crop insurance.
The information requested is necessary for the insurance company
and FCIC to provide insurance and reinsurance, determine eligibility,
determine the correct parties to the agreement or contract, determine
and collect premiums or other monetary amounts, and pay benefits.
The burden associated with the Basic Provisions and Various Crop
Insurance Provisions is estimated at 19.5 minutes per response for each
of the 2.2 responses from approximately 1,610,629 respondents each year
for a total of 1,127,407 hours.
FCIC is requesting comments on the following: (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the proposed collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; and (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
gathering technology.
Comments regarding paperwork reduction should be submitted to the
Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
OMB is required to make a decision concerning the collections of
information contained in these proposed regulations between 30 and 60
days after submission to OMB. Therefore, a comment to OMB is best
assured of having full effect if OMB receives it within 30 days of
publication. This does not affect the deadline for the public to
comment on the proposed regulation.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order 12612
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism
[[Page 43237]]
Assessment. The provisions contained in this rule will not have a
substantial direct effect on States or their political subdivisions, or
on the distribution of power and responsibilities among the various
levels of government.
Regulatory Flexibility Act
This regulation will not have a significant economic impact on a
substantial number of small entities. New provisions included in this
rule will not impact small entities to a greater extent than large
entities. Therefore, this action is determined to be exempt from the
provisions of the Regulatory Flexibility Act (5 U.S.C. 605), and no
Regulatory Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance Under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988 on civil justice reform. The provisions of this rule will
not have retroactive effect prior to the effective date. The provisions
of this rule will preempt State and local laws to the extent such State
and local laws are inconsistent herewith. The administrative appeal
provisions published at 7 CFR part 11 must be exhausted before action
against FCIC for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
FCIC proposes to amend the Common Crop Insurance Regulations Basic
Provisions (Basic Provisions) (7 CFR part 457) and the Crop Provisions
(7 CFR 457.101-457.157) effective for the: 1998 and succeeding crop
years for wheat, barley and oats in counties with a December 31
contract change date, flax, cotton, ELS cotton, sunflowers, sugar beets
in counties with a November 30 contract change date, corn, grain
sorghum, soybeans, raisins, fresh market tomatoes (guaranteed
production plan), rice, and dry beans; 1999 and succeeding crop years
for wheat, barley and oats in counties with a June 30 contract change
date, rye, Texas citrus tree, Florida citrus fruit, sugar beets in
counties with an April 30 contract change date, figs, pears, nursery,
sugarcane, forage production, walnuts, almonds, safflowers, fresh
market sweet corn, macadamia trees, cranberry, onion, grapes, fresh
market tomatoes (dollar plan), peppers, forage seeding, peaches, and
plums; and 2000 and succeeding crop years for Texas citrus fruit,
Arizona--California citrus, and macadamia nuts. This rule proposes to
delete the late and prevented planting provisions, certain definitions
and other provisions that are applicable to most crops and are
currently contained in the Crop Provisions and incorporate these
definitions and provisions into the Basic Provisions to better meet the
needs of the insured. Those Crop Provisions which will not be final
until after this rule has been published as a proposed rule will be
similarly revised when this rule is finalized. This rule also proposes
to make substantive changes as follows:
1. 7 CFR 457.2 (b), (c), and (d)--Specify that FCIC may offer the
catastrophic level of coverage directly to the insured through local
Farm Service Agency (FSA) offices. Also specify that a person may not
have more than one contract in force on the same crop, for the same
crop year, in the same county except as specified in the Catastrophic
Risk Protection Endorsement and 7 CFR part 400, subpart T, whether
insured by FCIC through local FSA offices or insured by a company which
is reinsured by FCIC. Also, clarify that if multiple contracts of
insurance are shown to be inadvertent and without the fault of the
insured, the contract with the earliest signature date on the
application will be in effect.
2. 7 CFR 457.8 (Basic Provisions) are revised as follows:
a. Section 457.8(b) is revised by deleting the provisions that
authorize the Manager of FCIC to extend any sales closing date.
b. The ``Agreement to Insure'' provision is amended to include
provisions regarding conflicts between the Basic Provisions, Crop
Provisions, Special Provisions, and Catastrophic Risk Protection
Endorsement. Current provisions regarding conflicts between policy
forms were contained in both the Basic and Crop provisions.
c. Section 1--Delete all paragraph designations to avoid confusion
in case of any future revision. Delete the definitions of ``ASCS'' and
``ASCS Farm Serial Number'' and replace with ``FSA'' and ``FSA farm
serial number.'' These changes are necessary to bring these regulations
into conformance with the Department of Agriculture Reorganization Act
of 1994. Delete the definition of ``Late Planting Agreement Option''
(LPAO) because the provisions for late planted crops are now
incorporated into the Basic Provisions and those crops for which such
coverage is not available will be designated in the Crop Provisions.
Late planting will automatically be available and will not require a
separate option. Delete the definition of ``reporting date'' because
``acreage reporting date'' is defined and this definition refers to the
same date. Revise the definition of ``abandon'' to clarify that failure
to continue providing sufficient care or failure to harvest in a timely
manner is not considered abandonment if such failures are due to an
insurable cause of loss. Revise the definition of ``acreage report''
and ``acreage reporting date'' to clarify that the final acreage
reporting date may be determined in accordance with section 6 (Report
of Acreage) of the Basic Provisions rather than the acreage reporting
date contained in the Special Provisions. Define the term ``basic
unit'' rather than ``unit'' to be consistent with the language
contained in the current Crop Provisions. The definition of ``unit''
amended to ``basic unit'' is revised to remove provisions regarding the
determination of share. These provisions will now be covered in section
10 (Share Insured). Delete duplicative provisions contained in the
definition of ``contract.'' Clarify that the definition of ``contract''
is synonymous with ``policy.'' Revise the definition of ``county'' to
include acreage in a field that extends into an adjoining county if the
county boundary is not readily discernible. Revise the definition of
``insured'' to delete the reference subsection designation. Revise the
definition of ``loss, notice of'' by adding ``whichever is earlier''
after the two specific times notice of loss must be given. Revise the
definition of ``person'' to clarify that the United States government
or any agency thereof is not considered a ``person.'' Revise the
definition of ``policy'' to indicate that the Catastrophic Risk
Protection Endorsement may also be applicable. Revise the definition of
``premium
[[Page 43238]]
billing date'' to indicate that the date is contained in the Special
Provisions. Revise the definition of ``practical to replant'' to add
marketing window as an additional factor that must be considered when
determining whether or not it is practical to replant; remove the
reference to the LPAO; and specify that the unavailability of seed or
plants will not be considered a valid reason for failure to replant.
Revise the definition of ``price election'' to specify that price
elections will be contained in the Special Provisions. Revise the
definition of ``share'' to remove provisions regarding how the share is
determined. Add definitions for the terms ``Act,'' ``days,''
``deductible,'' ``final planting date,'' ``FSA,'' ``FSA farm serial
number,'' ``good farming practices,'' ``interplanted,'' ``irrigated
practice,'' ``late planted,'' ``late planting period,'' ``non-
contiguous,'' ``Palmer Drought Severity Index,'' ``planted acreage,''
``prevented planting,'' ``prevented planting, notice of,'' ``production
guarantee (per acre),'' ``replanting,'' ``timely planted,'' ``USDA,''
``void,'' and ``written agreement.''
d. Section 2--Reformat this section and add a provision in section
2(b) stating that an application is not acceptable unless it contains
all material information, including all social security numbers and
employer identification numbers, as applicable, coverage level, price
election, etc. If a producer with a substantial beneficial interest in
an insured crop refuses to provide a social security number or employer
identification number, the share insurable under the policy will be
reduced commensurately by that producer's share, unless the producer
has been placed on the nonstandard classification system list in which
case insurance will not be available to that entity.
e. Section 2(e)--Specify that a person who is ineligible for crop
insurance because of a delinquent debt may become eligible if the
person repays the debt, executes an agreement to repay the debt and
makes all payments in accordance with the agreement, or has the debt
discharged in bankruptcy. If the repayment, execution of the agreement,
or discharge occurs after the sales closing date for the crop, the
person is not eligible for crop insurance until the next crop year.
This is to conform with the ineligible file regulations.
f. Section 3(b)--Remove the provisions that authorize the insurance
provider to assign a coverage level if the producer does not elect one.
These provisions are no longer necessary because an application will
not be accepted if it is not complete.
g. Section 3(c)--Specify that if the producer filed a claim for any
crop year, the amount of production used to complete the claim for
indemnity will be the production report for that crop year unless
otherwise specified by FCIC. Also, specify that production and acreage
for the prior crop year must be reported for each proposed optional
unit on or before the production reporting date.
h. Section 3(e)--Add a provision to indicate that an updated price
election or amount of insurance may be announced not later than 15 days
prior to the sales closing date to allow FCIC the flexibility to adjust
these amounts to more accurately reflect market conditions.
i. Section 4--Add a provision allowing additional price elections
to be announced after the contract change date to conform with section
3(e).
j. Section 6--Reformat this section and change the date by which an
insured must submit an annual acreage report by allowing the insured
until the latest applicable spring or fall acreage reporting date when
multiple crops are insured in a county. However, if the Special
Provisions designate separate planting periods, the insured must submit
an acreage report on or before the acreage reporting date contained in
the Special Provisions for the planting period. Specify that instead of
the production guarantee or amount of insurance being reduced
proportionately when the actual share, acreage, practice, type or other
material information results in a lower premium than determined under
the reported information, only the production guarantee or amount of
insurance will be reduced to conform to the correct information.
Specify that, if liability is denied for unreported units, the
producer's share of any production from the unreported units will be
allocated as production to count to the reported units in proportion to
the liability on each reported unit. The production allocated in this
manner will not be used to compute the producer's yield for actual
production history (7 CFR part 400, subpart G). Also, add a provision
to specify that if information reported by the producer is incorrect
and results in an overstatement of liability, in the subsequent crop
years that the producer is insured, the producer may be required to
provide documentation to substantiate the report of acreage in those
subsequent years, including but not limited to an acreage measurement
service at the producer's expense.
k. Section 7--Clarify that any amount owed by the producer to the
insurance provider related to any crop insured under the Act will be
deducted from any replant payment, prevented planting payment or
indemnity due the insured for any crop insured under the authority of
the Act with the same insurance provider. Specify that the premium will
be computed using the price election or amount of insurance the
producer elects or the insurance provider assigns.
l. Section 8--Delete section 8(b)(2) since crops planted during the
late planting period will be insured unless otherwise specified in the
Crop Provisions and redesignate the following sections. Replace
``Special Provisions'' with ``policy provisions'' in redesignated
section 8(b)(2). Replace ``unless we agree, in writing, to insure such
crop'' with ``written agreement'' in redesignated section 8(b)(5).
m. Section 9(a)(1)--Specify that acreage will not be insurable if
it has not been planted and harvested within one of the 3 previous
calendar years, unless such acreage was not planted to comply with any
other United States Department of Agriculture (USDA) program or because
of crop rotation, (e.g., corn, soybeans, alfalfa; and the alfalfa
remained for 4 years before the acreage was planted to corn again),
unless the crop provisions specifically allow insurance for such
acreage.
n. Section 9(a)(2)--Specify that acreage that has been strip mined
will be insurable only by written agreement, unless crops produced for
food or fiber have been harvested from the acreage for at least 5
consecutive crop years after it was strip mined.
o. Section 9(a)(6)--A new section is added to clarify that acreage
planted in any manner other than as specified in the policy provisions
for the crop is not insurable unless otherwise specified by a written
agreement, if applicable.
p. Section 10--Add provisions to clarify that 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; and a lease containing provisions for EITHER a minimum
payment OR a crop share (e.g., a lease provides for a 50/50 share or
100 dollars, whichever is greater) will be considered a cash lease.
q. Section 11--Add provisions to clarify the date at which
insurance attaches and redesignate the following provisions.
r. Section 13(d)--Delete section 13(d) and redesignate section
13(e) as 13(d). This provision required the insurance provider to
measure the total acres in the unit for the crop that is replanted even
if only a small portion of the acres were replanted. Without this
provision
[[Page 43239]]
only the replanted acres need to be determined.
s. Section 14(a)--Add a new paragraph to clarify that producers
must cooperate in the investigation or settlement of a claim.
t. Section 15(c)--Amend the provision to delete a reference to the
FCI-78A form since it is no longer in use.
u. Section 16--Add a new section which incorporates the coverage
for acreage that is planted after the final planting date previously
included in the Crop Provisions. This section will amend the late
planting provisions to: (1) Differentiate between the production
guarantees or amounts of insurance for acreage planted to the insured
crop during the late planting period and acreage planted to the insured
crop after the late planting period; and (2) amend the reductions in
production guarantees or amounts of insurance for acreage planted to
the insured crop during the late planting period. The production
guarantee or amount of insurance for acreage planted to the insured
crop during the twenty-five day late planting period will be reduced
one percent per day for each day the acreage is planted after the final
planting date. The maximum reduction for acreage planted during the
late planting period will be 25 percent. Current late planting
provisions contained in the Crop Provisions reduce the production
guarantee or amount of insurance for each acre for each day planted
after the final planting date by one percent for the first through the
tenth day and two percent for the eleventh through the twenty-fifth
day, resulting in a maximum reduction of 40 percent. This change
provides increased coverage for acreage planted in the last 15 days of
the late planting period and therefore should maintain an incentive to
plant the insured crop during the late planting period. A strong
incentive to plant should reduce the number of prevented planting
claims and related expenses.
v. Section 17--Add a new section to incorporate the prevented
planting coverage previously included in the Crop Provisions. FCIC
proposes to remove the substitute crop provisions contained in the
current prevented planting provisions. These provisions allow insureds
with limited or additional coverage to receive a prevented planting
production guarantee for acreage planted to a substitute crop. Removal
of these provisions will eliminate problems associated with determining
the crop originally intended to be planted and increase incentives to
plant in response to market signals.
w. Section 17(a)(2)--Require the insured to notify the insurance
provider within 72 hours after the final planting date if the insured
is prevented from planting by such date, regardless of whether or not
the insured intends to plant any acreage of the insured crop after the
final planting date. Under current prevented planting provisions, the
first notice the insurance provider receives of prevented planting is
when prevented planting acreage is listed on the acreage report. In
some cases, this may be nearly two months after the final planting date
due to the change in the acreage reporting date. This change provides
the insurance provider a better opportunity to verify that the insured
was prevented from planting due to an insured cause of loss.
x. Section 17(b)--Specify that the Crop Provisions will contain a
prevented planting coverage level percentage that will automatically
apply to the insured's crop policy if the insured does not elect an
available prevented planting coverage level percentage on or before the
sales closing date. The Actuarial Table will provide the additional
prevented planting coverage elections available to the producer for an
additional premium. FCIC proposes to offer producers with limited or
additional coverage a 60 percent prevented planting coverage level (60
percent of the insured production guarantee for timely planted acreage)
for coarse grains (corn, grain sorghum, and soybeans), small grains
(barley, flax, oats, rye, and wheat), dry beans, and sunflower seed,
with an option for the insured to increase the coverage to 65 or 70
percent; and a 45 percent prevented planting coverage level for cotton,
ELS cotton, sugar beets, onions, and rice with an option for the
insured to increase the coverage to 50 or 55 percent. Insureds who have
a Catastrophic Risk Protection Endorsement will be limited to the
lowest prevented planting coverage level percentage available for the
crop. Placing prevented planting coverage level percentages in the Crop
Provisions and Actuarial Table allows FCIC to establish prevented
planting coverage levels that are appropriate on a crop-by-crop basis.
y. Section 17(e)(1)--Specify that the maximum number of acres
eligible for a prevented planting payment will be: (1) For crops with
production guarantees based on the actual production history (APH) or
crops that do not require yield certification (except those for which
the crop provisions require a processor contract), the greatest number
of acres of the insured crop included in the APH data base or insured
in any one of the 4 most recent crop years, excluding any acreage of
the insured crop for which a prevented planting production guarantee
was established and was planted to a substitute crop; and (2) For any
crop for which the Crop Provisions require a contract to be executed
with a processor, the number of acres required to be grown in the
current crop year under the processor contract if such contract
stipulates a specific number of acres from which all production is to
be delivered. If the contract stipulates a specific amount of
production to be delivered, the maximum eligible acreage will be
determined by dividing the amount of production to be delivered under
the processor contract by the approved yield, without recognition of
reductions to transitional yields due to failure to certify production
for a prior year, using the same unit of measure for both amounts. This
section is also amended to allow an insured who did not plant any crop
that is insurable in the county in the 4 most recent crop years, to
request a written agreement to establish the maximum number of acres
that will be eligible for prevented planting coverage.
z. Section 17(e)(2)--Specify the timing and contents of a request
for a written agreement.
aa. Section 17(e)(3)--Specify that the total number of acres
requested for all crops insured under the authority of the Federal Crop
Insurance Act cannot exceed the number of acres of cropland in the
insured's farming operation for the crop year.
bb. Section 17(e)(4)--Amend the provisions to allow the maximum
eligible number of prevented planting acres for certain crops to be
increased under certain conditions, if the number of acres in an
insured's farming operation is greater than the number of acres farmed
the previous year to avoid penalizing insureds who expand their farming
operations.
cc. Section 17(e)(5)--Clarify that any acreage of the crop that is
planted will be subtracted from eligible prevented planting acreage.
Previous provisions provided that only insured crop acreage would be
subtracted.
dd. Section 17(f)(1)--Clarify that prevented planting coverage will
not be provided for any acreage that does not constitute at least 20
acres or 20 percent of the insurable crop acreage in the unit,
whichever is less. Current provisions specify that the 20/20 rule
applies to the acreage in the unit, which could include both insurable
and uninsurable acreage. This provision also specifies that the
insurance provider will assume that any prevented planting acreage
within a field that contains planted acreage
[[Page 43240]]
would have been planted to the same crop that is planted in the field,
unless the prevented planting acreage constitutes at least 20 acres or
20 percent of the insurable acreage in the field and the insured
provides proof of the intent to plant such acreage to another crop.
ee. Section 17(f)(4)--Clarify that prevented planting coverage will
not be provided if the insured or any other person receives a prevented
planting payment for any crop for the same unit in the same crop year,
except in the case of double cropped acreage if the insured has
coverage greater than that applicable to the catastrophic risk
protection plan of insurance. Also, clarify that in order to qualify
for prevented planting coverage for double-cropped acreage, the insured
must have records of acreage and production to prove that the acreage
was double-cropped in each of the last four years in which the insured
crop was grown on the acreage.
ff. Section 17(f)(5)--Clarify that a cover crop may be hayed or
grazed after the final planting date for the insured crop without
affecting prevented planting eligibility. Current provisions do not
specify the date after which the cover crop may be hayed or grazed.
Also, amend the provisions to clarify that prevented planting coverage
is not allowed for acreage that is prevented from being planted, if any
crop from which the insured derives any benefit under any program
administered by the USDA is planted and fails. This clarification is
intended to prevent a producer from receiving a benefit for a failed
crop or income from a harvested crop, and an additional benefit for any
crop that is prevented from being planted, unless the insured has
coverage greater than that applicable to the catastrophic risk
protection plan of insurance and can prove a history of double
cropping.
gg. Section 17(f)(6)--Add a provision specifying that prevented
planting coverage will not be provided if a cash lease payment is also
received for use of the same acreage in the same crop year (not
applicable if acreage is leased for haying or grazing only).
hh. Section 17(f)(9)--Specify that prevented planting coverage will
not be provided for any acreage for which the producer cannot provide
proof that he or she had the inputs available to plant and produce a
crop with the expectation of at least producing the yield used to
determine the production guarantee or amount of insurance. Current
provisions state ``. . . with the expectation of at least producing the
production guarantee or amount of insurance.''
ii. Section 17(f)(10)--Clarify that prevented planting coverage
will not be provided for any acreage based on an irrigated practice
production guarantee or amount of insurance unless adequate irrigation
facilities were in place to carry out an irrigated practice on the
acreage prior to the insured cause of loss that prevented the insured
from planting.
jj. Section 17(f)(11)--Specify that prevented planting coverage
will not be provided on any acreage based on a price election, amount
of insurance or production guarantee for a crop type that the producer
did not plant in at least one of the four most recent years unless
allowed by the policy provisions so that producers receive benefits
commensurate with their actual planting practices.
kk. Section 17(g)--Amend the provisions to allow prevented planting
payments on a per acre basis once the specified minimum number of acres
has been prevented from being planted. Per acre payment recognizes a
producer's loss on each acre that is prevented from being planted.
Current provisions combine production guarantees for planted and
prevented planting acreage and provides no payment when production from
planted acreage exceeds this combined guarantee.
ll. Section 18--Add a new section 18 that provides the requirements
for insurance coverage by written agreement previously included in the
Crop Provisions. FCIC has a long-standing policy of permitting
modification of certain provisions of the insurance contract by written
agreement. This new section will cover the application for, and
duration of, written agreements.
mm. Sections 17 (redesignated as section 20)--For FCIC policies,
amend the reference to the appeals provisions to specify 7 CFR part 11
since FCIC does not currently have an informal appeals process. For
reinsured policies, amend the provisions to specify that failure to
agree with any factual determination made by the FCIC must be resolved
through the FCIC appeal provisions published at 7 CFR part 11. Also,
clarify that any award determined by arbitration cannot exceed the
amount of liability established or which should have been established
under the policy.
nn. Section 20 (redesignated as section 23)--Remove the provision
that authorizes FCIC to cancel a policy for violation of the
conservation provisions of the Food Security Act of 1985 to conform to
the Federal Agriculture Improvement and Reform Act of 1996. Add a
provision to allow the insurance provider to retain up to 20 percent of
the premium to defray expenses and handling since most violations will
not be discovered until loss adjustment and the insurance provider will
have already incurred costs associated with the delivery of the policy.
oo. Section 21 (redesignated as section 24)--For FCIC policies,
revise to specify that any amount illegally or erroneously paid to the
producer, or that is owed to the insurance provider and is delinquent,
may be recovered by the insurance provider through offset or other
collection action. Also specify that, if the insurance provider
determines that it is necessary to refer the debt to government
collection centers or the Department of Treasury Offset Program, the
producer agrees to pay all of the expenses of collection.
pp. Section 24 (redesignated as section 27)--Clarify that the
policy will be voided if the producer commits fraud or misrepresents a
material fact. Such voidance will be effective with the beginning of
the crop year in which such acts occurred. Voidance will have no effect
on subsequent crop years unless a violation also occurred in that
subsequent crop year or the producer is otherwise suspended, debarred
or disqualified. The producer will be required to pay up to 20 percent
of the premium owed to defray costs already incurred in the service of
the policy.
qq. Section 25 (redesignated as section 28)--Revise by adding a
provision that states that liability under the policy cannot be
increased by a transfer of coverage. Also revise by adding a provision
stating that the transferee must be eligible for crop insurance.
rr. Section 26 (redesignated as section 29)--Clarify that no cause
of action will lie against FCIC arising from any assignment. Also
specify that if the insured suffered a loss from an insurable cause and
failed to file a claim for indemnity within 60 days after the end of
the insurance period, the assignee may submit the claim for indemnity
not later than 15 days after the 60 day period has expired.
ss. Add a new section 34 to incorporate the optional unit structure
requirements previously included in the Crop Provisions.
3. Section 457.101 (Small Grains Crop Insurance Provisions);
Sec. 457.104 (Cotton Crop Insurance Provisions); Sec. 457.105 (Extra
Long Staple Cotton Crop Insurance Provisions); Sec. 457.110 (Fig Crop
Insurance Provisions); and Sec. 457.113 (Coarse Grains Crop Insurance
Provisions)--Delete all references to the ``Common Crop Insurance
Policy'' and replace them with ``Basic Provisions.''
[[Page 43241]]
4. Section 457.101 (Small Grains Crop Insurance Provisions);
Sec. 457.104 (Cotton Crop Insurance Provisions); Sec. 457.105 (Extra
Long Staple Cotton Crop Insurance Provisions); Sec. 457.106 (Texas
Citrus Tree Crop Insurance Provisions); Sec. 457.107 (Florida Citrus
Fruit Crop Provisions); Sec. 457.108 (Sunflower Seed Crop Insurance
Provisions); Sec. 457.109 (Sugar Beet Crop Insurance Provisions);
Sec. 457.110 (Fig Crop Insurance Provisions); Sec. 457.111 (Pear Crop
Insurance Provisions); Sec. 457.113 (Coarse Grains Crop Insurance
Provisions); Sec. 457.114 (Nursery Crop Insurance Provisions);
Sec. 457.116 (Sugar Cane Crop Insurance Provisions); Sec. 457.117
(Forage Production Crop Insurance Provisions); Sec. 457.119 (Texas
Citrus Fruit Crop Insurance Provisions); Sec. 457.121 (Arizona-
California Citrus Crop Insurance Provisions); Sec. 457.122 (Walnut Crop
Insurance Provisions); Sec. 457.123 (Almond Crop Insurance Provisions);
Sec. 457.124 (Raisin Crop Insurance Provisions); Sec. 457.125
(Safflower Crop Insurance Provisions); Sec. 457.128 (Guaranteed
Production Plan of Fresh Market Tomato Crop Insurance Provisions);
Sec. 457.129 (Fresh Market Sweet Corn Crop Insurance Provisions);
Sec. 457.130 (Macadamia Tree Crop Insurance Provisions); Sec. 457.131
(Macadamia Nut Crop Insurance Provisions); Sec. 457.132 (Cranberry Crop
Insurance Provisions); Sec. 457.135 (Onion Crop Insurance Provisions);
Sec. 457.138 (Grape Crop Insurance Provisions); Sec. 457.139 (Fresh
Market Tomato (Dollar Plan) Crop Insurance Provisions); Sec. 457.141
(Rice Crop Insurance Provisions); Sec. 457.148 (Fresh Market Pepper
Crop Insurance Provisions); Sec. 457.150 (Dry Beans Crop Insurance
Provisions); Sec. 457.151 (Forage Seeding Crop Insurance Provisions);
Sec. 457.153 (Peach Crop Insurance Provisions) and Sec. 457.157 (Plum
Crop Insurance Provisions)--
(a) Delete definitions that are added to the Basic Provisions
(Sec. 457.8) by this rule. This allows FCIC to remove duplicative
provisions from the Crop Provisions.
(b) Delete or modify section 2 because the requirements for
optional units have now been incorporated into section 34 of the Basic
Provisions.
(c) Delete, modify, or add late and prevented planting provisions
since these provisions are now included in sections 16 and 17 of the
Basic Provisions.
(d) Revise section designations, as necessary, to conform to
changes made in the Basic Provisions (Sec. 457.8), and removal of unit
division provisions in some crop provisions.
(e) Delete the written agreement provisions because they are now
incorporated into section 18 of the Basic Provisions.
(f) Make minor style and conforming changes.
5. Section 457.104 (Cotton Crop Insurance Provisions); Sec. 457.105
(Extra Long Staple Cotton Crop Insurance Provisions); Sec. 457.108
(Sunflower Seed Crop Insurance Provisions); and Sec. 457.113 (Coarse
Grains Crop Insurance Provisions)--Revise the provisions in the
``Insurable Acreage'' section to specify that any acreage damaged to
the extent that a majority of the producers in the area would not
normally care for the crop must be replanted unless the insurance
provider agrees that it is not practical to replant. The current
provisions specify that damage must exist such that the remaining stand
will not produce at least 90 percent of the production guarantee. This
change removes the inequity caused by the current language when a
landlord and tenant have different production guarantees on the same
acreage due to different coverage levels that were selected, and
standardizes the language among the various Crop Provisions.
6. A new provision is added in section 11 of Sec. 457.104 (Cotton
Crop Insurance Provisions) and section 12 of Sec. 457.105 (Extra Long
Staple Cotton Crop Insurance Provisions) to indicate that the prevented
planting production guarantee will be based on the approved yield for
solid-planted acreage.
List of Subjects in 7 CFR Part 457
Crop insurance, Common crop insurance policy; Almonds; Arizona-
California citrus; Coarse grains; Cotton; Cranberry; Dry beans; Extra
long staple cotton; Figs; Florida citrus fruit; Forage production;
Forage seeding; Fresh market pepper; Fresh market sweet corn; Fresh
market tomato (Dollar plan); Fresh market tomato (Guaranteed production
plan); Grape; Macadamia Nut; Macadamia Tree; Nursery; Onion; Peach;
Pears; Plum crop insurance provisions; Raisin; Rice; Safflower; Small
grains; Sugar beet; Sugar cane; Sunflower seed; Texas citrus fruit;
Walnut.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby proposes to amend 7 CFR part 457, as
follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1998 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 457.2 is amended by removing paragraph (e),
redesignating paragraphs (f), (g), and (h) as paragraphs (e), (f), and
(g) respectively and revising paragraphs (b), (c), and (d) to read as
follows:
Sec. 457.2 Availability of federal crop insurance.
* * * * *
(b) The insurance is offered through two methods. First, the
Corporation may offer the contract for the catastrophic level of
coverage contained in this part and part 402 directly to the insured
through local offices of the Department of Agriculture. Those contracts
are specifically identified as being offered by the Federal Crop
Insurance Corporation (FCIC). Second, companies reinsured by the
Corporation may offer contracts containing the same terms and
conditions as the contract set out in this part. These contracts are
clearly identified as being reinsured by the Corporation.
(c) Except as specified in the Catastrophic Risk Protection
Endorsement (part 402 of this chapter) and part 400, subpart T of this
chapter, no person may have in force more than one contract on the same
crop for the same crop year, in the same county, whether insured by the
Corporation through local offices of the Department of Agriculture or
insured by a company reinsured by the Corporation.
(d) Except as specified in paragraph (c) of this section if a
person has more than one contract under the Act that provides coverage
for the same loss on the same crop for the same crop year in the same
county, all such contracts shall be voided for that crop year and the
person will be liable for the premium on all contracts, unless the
person can show to the satisfaction of the Corporation that the
multiple contracts of insurance were inadvertent and without the fault
of the person. If the multiple contracts of insurance are shown to be
inadvertent and without the fault of the insured, the contract with the
earliest signature date on the application will be valid and all other
contracts on that crop in the county for that crop year will be
canceled. No liability for indemnity or premium will attach to the
contracts so canceled.
* * * * *
[[Page 43242]]
3. Section 457.8 paragraph (b) is revised to read as follows:
Sec. 457.8 The application and policy.
(a) * * *
(b) The Corporation or the reinsured company may reject or
discontinue the acceptance of applications in any county or of any
individual application upon the Corporation's determination that the
insurance risk is excessive. If the reinsured company rejects any
application and such rejection is not required by the Corporation, the
applicant must be referred to an agent authorized to sell the
Corporation's policies of insurance.
4. Section 457.8 is amended by revising the policy to read as
follows:
DEPARTMENT OF AGRICULTURE
FEDERAL CROP INSURANCE CORPORATION
[or Policy Issuing Company Name]
Common Crop Insurance Policy
(This is a continuous policy. Refer to section 2.)
FCIC Policies
This is an insurance policy issued by the Federal Crop Insurance
Corporation (FCIC), a United States government agency. The
provisions of the policy are published in the Federal Register and
in chapter IV of title 7 of the Code of Federal Regulations (CFR)
under the Federal Register Act (44 U.S.C. 1501 et seq.), and may not
be waived or varied in any way by the crop insurance agent or any
other agent or employee of FCIC.
Throughout this policy, ``you'' and ``your'' refer to the named
insured shown on the accepted application and ``we,'' ``us,'' and
``our'' refer to the Federal Crop Insurance Corporation. 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.
Reinsured policies
This insurance policy is reinsured by the Federal Crop Insurance
Corporation (FCIC) under the provisions of the Federal Crop
Insurance Act, as amended (7 U.S.C. 1501 et seq.) (Act). All
provisions of the policy and rights and responsibilities of the
parties are specifically subject to the Act. The provisions of the
policy are published in the Federal Register and in the chapter IV
of title 7 of the Code of Federal Regulations (CFR) under the
Federal Register Act (44 U.S.C. 1501 et seq.), and may not be waived
or varied in any way by the crop insurance agent or any other agent
or employee of FCIC or 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 FCIC. No state guarantee fund will be
liable for 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 insurance company providing insurance. 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 among these Basic Provisions, the Crop Provisions, the
Special Provisions, and the Catastrophic Risk Protection
Endorsement, if applicable, the Special Provisions will control the
Crop Provisions and these Basic Provisions; the Crop Provisions will
control these Basic Provisions; and the Catastrophic Risk Protection
Endorsement, if applicable, will control all provisions.
TERMS AND CONDITIONS
Basic Provisions
1. Definitions.
Abandon. Failure to continue providing sufficient care
(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, unless such failures are due to an
insurable cause.
Acreage report. A report required by paragraph 6 of these Basic
Provisions that 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.
Acreage reporting date. The date contained in the Special
Provisions or as provided in section 6 by which you are required to
submit your acreage report.
Act. The Federal Crop Insurance Act, as amended (7 U.S.C. 1501
et seq.).
Actuarial Table. The forms and related material for the crop
year which are available for public inspection in your agent's
office, and which show the amounts of insurance or production
guarantees, coverage levels, premium rates, prices for computing
indemnities, practices, insurable acreage, and other related
information regarding crop insurance in the county.
Another use, notice of. The written notice required when you
wish to put acreage to another use (see section 14).
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 for any reason, including but not limited to
suspension, debarment, disqualification, placement on the
ineligibility list, violation of the controlled substance provisions
of the Food Security Act of 1985, etc., a new application must be
filed.
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.
Basic 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 100 percent crop share; or
(2) Which is owned by one person and operated by another person
on a share basis. (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 that combines the two cash leases and the
land you own.) Land which would otherwise be one unit may, in
certain instances, be divided according to guidelines contained in
section 34 of these Basic Provisions and 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. No further unit division may be made after
the acreage reporting date for any reason.
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.
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).
Consent. Approval in writing by us allowing you to take a
specific action.
Contract. (See ``policy'').
Contract change date. The calendar date by which we make any
policy changes available for inspection in the agent's office (see
section 4).
County. The county, parish, 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.
Coverage. The insurance provided by this policy, against insured
loss of production or value, by unit as shown on your summary of
coverage.
Coverage begins, date. The calendar date insurance begins on the
insured crop, as contained in the Crop Provisions, or the date
planting begins on the unit (see section 11 and the policy for
specific provisions relating to prevented planting).
Crop Provisions. The part of the policy that contains the
specific provisions of insurance for each insured crop.
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.
Damage. Injury, deterioration, or loss of production of the
insured crop due to insured or uninsured causes.
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).
Days. Calendar days.
Deductible. The amount determined by subtracting the coverage
level percentage you choose from 100 percent. For example, if you
elected a 65 percent coverage level, your deductible would be 35
percent (100%--65% = 35%).
Delinquent account. Any account you have with us in which
premiums and interest on
[[Page 43243]]
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.
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).
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).
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 production guarantee or
amount of insurance per acre.
FSA. The Farm Service Agency, an agency of the USDA, or a
successor agency.
FSA farm serial number. The number assigned to the farm by the
local FSA office.
Good farming practices. The cultural practices generally in use
in the county for the crop to make normal progress toward maturity
and produce at least the yield used to determine the production
guarantee or amount of insurance, and are those recognized by the
Cooperative State Research, Education, and Extension Service as
compatible with agronomic and weather conditions in the county.
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.
Insured crop. The crop defined under these Basic Provisions and
the applicable Crop Provisions as shown on the application accepted
by us.
Interplanted. Acreage on which two or more crops are planted in
a manner that does not permit separate agronomic maintenance or
harvest of the insured crop.
Irrigated practice. A method of producing a crop by which water
is artificially applied during the growing season by appropriate
systems and at the proper times, with the intention of providing the
quantity of water needed to produce at least the yield used to
establish the irrigated production guarantee or amount of insurance
on the irrigated acreage planted to the insured crop.
Late planted. Acreage planted to the insured crop after the
final planting date.
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, unless otherwise specified in the Special
Provisions.
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, whichever is earlier (see section 14).
Negligence. The failure to use such care as a reasonably prudent
and careful person would use under similar circumstances.
Non-contiguous. Any two or more tracts of land whose boundaries
do not touch at any point, except that land separated only by a
public or private right-of-way, waterway, or an irrigation canal
will be considered as contiguous.
Palmer Drought Severity Index. A meteorological index calculated
by the National Weather Service to indicate prolonged and abnormal
moisture deficiency or excess.
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. Person does
not include the United States Government or any agency thereof.
Planted acreage. Land in which seed, plants, or trees have been
placed appropriate for the insured crop and planting method, at the
correct depth, into a seedbed that has been properly prepared for
the planting method and production practice.
Policy. The agreement between you and us consisting of the
accepted application, these Basic Provisions, the Crop Provisions,
the Special Provisions, other applicable endorsements or options,
the Actuarial Table for the insured crop, the Catastrophic Risk
Protection Endorsement, if applicable, and the applicable
regulations published in 7 CFR chapter IV.
Practical to replant. Our determination, after loss or damage to
the insured crop, based on all factors, including, but not limited
to moisture availability, marketing window, condition of the field,
and time to crop maturity, that replanting the insured crop will
allow the crop to attain maturity prior to the calendar date for the
end of the insurance period. It will not be considered practical to
replant after the end of the late planting period or the final
planting date if no late planting period is applicable, unless
replanting is generally occurring in the area. Unavailability of
seed or plants will not be considered a valid reason for failure to
replant.
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. The premium billing date is
contained in the Special Provisions.
Prevented planting. Failure 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 by the end
of the late planting period. You must have failed 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.
Prevented planting, notice of. Notice required within 72 hours
of the final planting date if you are prevented from planting.
Price election. The amounts determined by FCIC and contained in
the Special Provisions or an addendum thereto, to be used as a basis
for computing the value per unit of production for the purposes of
determining premium and indemnity under the policy.
Production guarantee (per acre). The number of pounds, bushels,
tons, cartons, or other applicable units of measure determined by
multiplying the approved actual production history (APH) yield per
acre, calculated in accordance with 7 CFR part 400, subpart G, by
the coverage level percentage you elect.
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.
Replanting. Performing the cultural practices necessary to
prepare the land to replace the seed or plants of the damaged or
destroyed crop and then replacing the seed or plants in the insured
acreage.
Representative sample. Portions of the insured crop which are
required to remain in the field for examination and review by our
loss adjusters when making a crop appraisal, as specified in the
Crop Provisions. In certain instances we may allow you to harvest
the crop and require only that samples of the crop residue be left
in the field.
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.
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.
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.
Special Provisions. The part of the policy that contains
specific provisions of insurance for each insured crop that may vary
by geographic area.
State. The state shown on your accepted application.
Summary of coverage. Our statement to you, based upon your
acreage report, by unit, specifying the insured crop and the
guarantee or amount of insurance coverage provided.
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).
Termination date. The calendar date contained in the Crop
Provisions upon which your policy ceases to exist for nonpayment of
premium or any other amount due us under the policy.
Timely planted. Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the
county.
USDA. United States Department of Agriculture.
Void. When the policy is considered not to have existed for a
crop year as a result of concealment, fraud or misrepresentation
(see section 27).
Written agreement. A document that alters designated terms of a
policy and that is authorized under these Basic Provisions, the Crop
Provisions, or the Special Provisions for the insured crop (see
section 18).
[[Page 43244]]
2. Life of Policy, Cancellation, and Termination.
(a) This is a continuous policy and will remain in effect for
each crop year following the acceptance of the original application
until canceled by you in accordance with the terms of the policy or
terminated by operation of the terms of the policy or by us.
(b) Applications that do not contain all social security numbers
and employer identification numbers, as applicable, coverage level,
price election, crop, type, variety, or class, plan of insurance,
and any other material information required to insure the crop, are
not acceptable. If a person with a substantial beneficial interest
in the insured crop and who is not on the non-standard
classification list refused to provide a social security number or
employer identification number, the amount of coverage available
under the policy will be reduced proportionately to that person's
share of the crop. If the person refusing to supply a social
security number or employer identification number is on the non-
standard classification system list the insurance will not be
available to that entity.
(c) After acceptance of the application, you may not cancel this
policy for the initial crop year. Thereafter, the policy will
continue in force for each succeeding crop year unless canceled or
terminated as provided below.
(d) 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.
(e) 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 make you ineligible for any crop insurance
provided under the Act until payment is made or you execute an
agreement to repay the debt and all payments are made in accordance
with the agreement, or your debt is discharged in your bankruptcy
proceeding. If payment is made, you execute an agreement to repay
the debt or are discharged in bankruptcy after the sales closing
date for the crop, you will not be eligible for crop insurance until
the next crop year. If we deduct an amount due us from an indemnity,
the date of payment for the purpose of this paragraph will be the
date you sign the properly completed claim for indemnity.
(f) 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.
(g) Your policy will terminate if no premium is earned for 3
consecutive years.
(h) The cancellation and termination dates are contained in the
Crop Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
(a) For each crop year the production guarantee or amount of
insurance, coverage level, and price at which an indemnity will be
determined for each unit will be those used to calculate your
summary of coverage. The information necessary to determine those
factors will be contained in the Special Provisions or in the
Actuarial Table.
(b) You may select only one coverage level offered by us for
each insured crop. You may change the coverage level, price
election, or amount of insurance for the following crop year by
giving written notice to us not later than the sales closing date
for the insured crop. Since the price election or amount of
insurance may change each year, if you do not select a new price
election or amount of insurance on or before the sales closing date,
we will assign a price election or amount of insurance which bears
the same relationship to the price election schedule as the price
election or amount of insurance as was in effect for the preceding
year. (For example: If you selected 100 percent of the market price
for the previous crop year and you do not select a new price
election for the current crop year, we will assign 100 percent of
the market price for the current crop year.)
(c) 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 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
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 amount of production used to complete the claim for indemnity
will be the production report for that year unless otherwise
specified by FCIC. Production and acreage for the prior crop year
must be reported for each proposed optional unit by the production
reporting date. If you did not provide the information stated above,
the optional units will be combined into the basic unit.
(d) We may revise your production guarantee for any farm unit,
and revise any indemnity paid based on that production guarantee, if
we find that your production report under paragraph (c) of this
section:
(1) Is not supported by written verifiable records in accordance
with the definition of production report; or
(2) Fails to accurately report actual production.
(e) In addition to the maximum price election or amount of
insurance available on the contract change date, we may provide an
additional price election or amount of insurance no later than 15
days prior to the sales closing date. These additional amounts will
not be less than the maximum amounts available on the contract
change date. If you elect this additional amount on or before the
sales closing date, any claim settlement and amount of premium will
be based on this amount.
4. Contract Changes.
We may change the terms of your coverage under this policy from
year to year. Any changes in policy provisions, price elections,
amounts of insurance, premium rates, and program dates will be
provided by us to your crop insurance agent not later than the
contract change date contained in the Crop Provisions except the
price elections may be offered after the contract change date in
accordance with section 3. You will be notified, in writing, of
these changes not later than 30 days prior to the cancellation date
for the insured crop. Acceptance of changes will be conclusively
presumed in the absence of notice from you to change or cancel your
insurance coverage.
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 contained in the Special Provisions, except as
follows:
(1) If you insure multiple crops that have fall final planting
dates (on or after August 15 but before December 31), you must
submit an acreage report for all such crops on or before the latest
applicable fall acreage reporting date for such crops; and
(2) If you insure multiple crops that have spring final planting
dates (on or after December 31 but before August 15), you must
submit an acreage report for all such crops on or before the latest
applicable spring acreage reporting date for such crops.
(3) Notwithstanding the provisions in sections 6(a) (1) and (2):
(i) If the Special Provisions designate separate planting
periods for a crop, you must submit an acreage report for each
planting period on or before the acreage reporting date contained in
the Special Provisions for the planting period; and
(ii) 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 the
acreage reporting date contained in the Special Provisions or the
date determined in accordance with section 6(a)(2), or 5 days after
the end of the late planting period for the insured crop.
(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) Your acreage report must include the following information,
if applicable:
(1) All acreage of the crop (insurable and not insurable) 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, including the date
for late planted acreage.
(d) Because incorrect reporting on the acreage report may have
the effect of
[[Page 43245]]
changing your premium and any indemnity which may be due, you may
not revise this report after the acreage reporting date without our
consent.
(e) 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.
(f) 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 to deny liability on such units. If we deny liability
for the unreported units, your share of any production from the
unreported units will be allocated as production to count to the
reported units in proportion to the liability on each reported unit
if you file a claim for a loss. The production allocated in this
manner will not be used to compute the yield for actual production
history (see 7 CFR part 400, subpart G) for the purpose of
determining your coverage for subsequent crop years.
(g) If the information reported by you on the acreage report for
share, acreage, practice, type or other material information is
inconsistent with the information that is determined to actually
exist for a unit and results in:
(1) A lower premium than the actual premium determined to be
due, the production guarantee or amount of insurance on the unit
will be reduced to an amount that is consistent with the correct
information. In the event that insurable acreage is under-reported
for any unit, all production or value from insurable acreage in that
unit will be considered production or value to count in determining
the indemnity; and
(2) Overstated liability, you may be required to provide
documentation in subsequent crop years that support your report of
acreage for those crop years including but not limited to an acreage
measurement service at your own expense.
(h) Errors in reporting units may be corrected by us at the time
of adjusting a loss to reduce our liability and to conform to
applicable unit division guidelines.
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 you owe us related to any crop insured with us
under the authority of the Act will be deducted from any replant
payment, prevented planting payment, or indemnity due you for any
crop insured with us under the authority of the Act. Any delinquent
amount may be deducted from any amount owed to you by any United
States Government agency or by us.
(c) The annual premium amount is determined by either:
(1) Multiplying the production guarantee per acre times the
price election, times the premium rate, times the insured acreage,
times your share at the time coverage begins, and times any premium
adjustment percentages that may apply; or
(2) Multiplying the amount of insurance per acre times the
premium rate, times the insured acreage, times your share at the
time coverage begins, and times any premium adjustment percentages
that may apply.
(d) The premium will be computed using the price election or
amount of insurance you elect or that we assign.
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, production
guarantees or amounts of insurance have been established;
(2) Of a type, class or variety established as not adapted to
the area or excluded by the policy 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 by a written agreement 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 except for acreage:
(l) That has not been planted and harvested within one of the 3
previous calendar years, unless such acreage was not planted to
comply with any other USDA program or because of crop rotation,
(e.g., corn, soybean, alfalfa; and the alfalfa remained for 4 years
before the acreage was planted to corn again), or the crop
provisions specifically allow insurance for such acreage;
(2) That has been strip mined unless otherwise approved by
written agreement, or unless crops produced for food or fiber have
been harvested from the acreage for at least five consecutive crop
years after it was strip mined. Cover or forage crops will not
qualify as a food or fiber crop for the purpose of this section.
(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 interplanted, unless allowed by the Crop
Provisions;
(5) Which is otherwise restricted by the Crop Provisions or
Special Provisions; or
(6) Planted in any manner other than as specified in the policy
provisions for the crop unless a written agreement to such planting
exists.
(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 ``non-irrigated,'' 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 if we
notify you of that restriction prior to the sales closing date.
10. Share Insured.
(a) You may only insure your share (see section 1).
(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.
(c) 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,
insurance will cover only 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.
(d) 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.
(e) Acreage rented for a percentage of the crop will be
considered a crop share lease.
(f) 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. Acreage rented for
cash will be considered a cash lease. A lease containing provisions
for EITHER a minimum payment OR a crop share (e.g. lease provides
for a 50/50 share or 100 dollars, whichever is greater) will be
considered a cash lease.
11. Insurance Period.
(a) Except for prevented planting coverage (see section 17),
coverage begins on each unit or part of a unit at the later of:
(1) The date we accept your application;
(2) The date the insured crop is planted; or
(3) The calendar date contained in the Crop Provisions for the
beginning of the insurance period.
(b) Coverage ends at the earliest of:
(1) Total destruction of the insured crop on the unit;
(2) Harvest of the unit;
[[Page 43246]]
(3) Final adjustment of a loss on a unit;
(4) The calendar date contained in the Crop Provisions for the
end of the insurance period;
(5) Abandonment of the crop on the unit; or
(6) As otherwise specified in the Crop Provisions.
12. Causes of Loss.
The insurance provided is against only unavoidable loss of
production 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 planted 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) No replanting payment will be paid if we determine it is not
practical to replant.
14. Duties in the Event of Damage or Loss.
Your Duties--
(a) In case of damage 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), 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.
(4) Cooperate with us in the investigation or settlement of the
claim, and, as often as we reasonably require:
(i) Show us the damaged crop;
(ii) Allow us to remove samples of the insured crop; and
(iii) Provide us with records and documents we request and
permit us to make copies.
(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 occurred during the insurance period and was directly caused
by one or more of the insured causes specified in the Crop
Provisions.
(f) All notices required in this paragraph 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 the Federal Crop Insurance Corporation.
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 policy.
(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.
(c) If you elect to exclude hail and fire as insured causes of
loss and the insured crop is damaged by hail or fire, appraisals
will be made as described in the applicable Form FCI-78 ``Request To
Exclude Hail and Fire'' or a form approved by the Federal Crop
Insurance Corporation that contains the same terms.
16. Late Planting.
Unless limited by the Crop Provisions, insurance will be
provided for acreage planted to the insured crop after the final
planting date in accordance with the following:
(a) The production guarantee or amount of insurance for each
acre planted to the insured crop during the late planting period
will be reduced by 1 percent per day for each day planted after the
final planting date.
(b) The production guarantee or amount of insurance for each
acre of the insured crop that is planted to the insured crop after
the late planting period (or after the final planting date for crops
that do not have a late planting period) will be the same as the
production guarantee or amount of insurance that is provided for
acreage of the insured crop that is prevented from being planted
(see section 17). Such acreage must have been prevented from being
planted by an insurable cause occurring within the insurance period
for prevented planting coverage.
(c) The premium amount for insurable acreage planted to the
insured crop after the final planting date 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 acreage planted
after the final planting date 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).
17. Prevented Planting.
(a) Unless limited by the Crop Provisions, a prevented planting
payment may be made to you for eligible acreage you were prevented
from planting if:
(1) You were prevented from planting the insured crop by an
insured cause that occurs:
(i) On or after 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 or after the sales closing
date for the previous crop year for the insured crop in the county,
provided insurance has been in force continuously since that date.
Cancellation for the purpose of transferring the policy to a
different insurance provider for the subsequent crop year will not
be considered a break in continuity for the purpose of the preceding
sentence; and
(2) You notify us within 72 hours after the final planting date
if you are prevented from planting by such date, whether or not you
intend to plant any acreage of the insured crop after the final
planting date. In addition to this notice, you must include any
acreage of the insured crop that was prevented from being planted on
your acreage report.
(b) The Actuarial Table contains the levels of prevented
planting coverage that you may elect for the crop on or before the
sales closing date. If you do not elect one of the available
coverages by the sales closing date, you will receive the prevented
planting coverage specified in the Crop Provisions. If you have a
Catastrophic Risk Protection Endorsement, you will receive the
lowest level of prevented planting coverage available for the crop.
(c) The premium amount for acreage that is prevented from being
planted will be the
[[Page 43247]]
same as that for timely planted acreage. If the amount of premium
you are required to pay (gross premium less our subsidy) for acreage
that is prevented from being planted 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).
(d) Drought or failure of the irrigation water supply will not
be considered to be an insurable cause of loss for the purposes of
prevented planting unless, on the final planting date:
(1) For non-irrigated acreage, the area that is prevented from
being planted is classified by the Palmer Drought Severity Index as
being in a severe or extreme drought; or
(2) For irrigated acreage, there is not a reasonable probability
of having adequate water to carry out an irrigated practice.
(e) The maximum number of acres that may be eligible for a
prevented planting payment for any crop will be determined as
follows:
(1) The base eligible acres for each insured crop will be
determined in accordance with the following table.
------------------------------------------------------------------------
Base eligible acres Base eligible acres
(if you have (if you have not
produced any crop produced any crop
Type of crop for which insurance for which insurance
was available in any is available in any
of the 4 most recent of the 4 most recent
crop years) crop years)
------------------------------------------------------------------------
(i) (A) The crop's (B) The maximum (C) The number of
insurance guarantee is number of acres acres approved by
based on APH or the crop certified for APH written agreement
does not require yield purposes or in accordance with
certification and the crop reported for the provisions in
is not required to be insurance for the this section and
contracted with a processor crop in any one of section 18.
to be insured. the 4 most recent
crop years (not
including reported
prevented planting
acreage that was
planted to a
substitute crop
other than an
approved cover
crop).
(ii) (A) The crop must be (B) The number of (C) The number of
contracted with a processor acres of the crop acres of the crop
to be insured and the specified in the specified in the
contract specifies a number processor contract. processor contract.
of acres contracted for the
crop year.
(iii) (A) The crop must be (B) The result of (C) The result of
contracted with a processor dividing the dividing the
to be insured and the quantity of quantity of
processor contract production stated production stated
specifies a quantity of in the processor in the processor
production that will be contract by your contract by your
accepted. approved yield (For approved yield (For
the purposes of the purposes of
establishing the establishing the
base number of base number of
prevented planting prevented planting
acres, any acres, any
reductions applied reductions applied
to the transitional to the transitional
yield for failure yield for failure
to certify acreage to certify acreage
and production for and production for
a prior year will a prior year will
not be used.). not be used.).
------------------------------------------------------------------------
(2) All requests for written agreement under this section must
be submitted to us on or before the sales closing date and include,
by crop, the number of acres of all crops for which insurance is
offered under the authority of the Act that you intend to plant in
the county.
(3) The total number of acres requested for all crops cannot
exceed the number of acres of cropland in your farming operation for
the crop year.
(4) The number of acres determined in section 17(e)(1)(i)(B) may
be increased by multiplying it by the ratio of the total cropland
acres that you are farming this year (if greater) to the total
cropland acres that you farmed in the previous year, provided that
you submit proof to us on or before the sales closing date for the
insured crop that you have purchased or leased additional land, that
acreage will be released from any USDA program which prohibits
harvest of a crop, or that the additional acreage has not been
cropped in any of the four most recent crop years. Such acreage must
have been purchased, leased, released from the USDA program, or
intended to be brought into production in time to plant it for the
current crop year.
(5) The result of section 17(e)(1) or 17(e)(4), whichever is
applicable, will be reduced by subtracting the number of acres of
the crop that are timely and late planted.
(f) Regardless of the number of eligible acres determined in
section 17(e), prevented planting coverage will not be provided for
any acreage:
(1) That does not constitute at least 20 acres or 20 percent of
the insurable crop acreage in the unit, whichever is less (We will
assume that any prevented planting acreage within a field that
contains planted acreage would have been planted to the same crop
that is planted in the field, unless the prevented planting acreage
constitutes at least 20 acres or 20 percent of the insurable acreage
in the field and you can prove that you intended to plant such
acreage to another crop);
(2) For which the Actuarial Table does not designate a premium
rate unless a written agreement designates such premium rate;
(3) Used for conservation purposes or intended to be left
unplanted under any program administered by the USDA;
(4) On which the insured crop is prevented from being planted,
if you or any other person receives a prevented planting payment for
any crop for the same acreage in the same crop year, unless you have
coverage greater than that applicable to the Catastrophic Risk
Protection Plan of Insurance and have records of acreage and
production that are used to determine your approved yield that show
the acreage was double-cropped in each of the last 4 years in which
the insured crop was grown on the acreage;
(5) On which the insured crop is prevented from being planted,
if any crop from which any benefit is derived under any program
administered by the USDA is planted and fails, or if any crop is
planted and harvested, hayed or grazed on the same acreage in the
same crop year (other than a cover crop which may be hayed or grazed
after the final planting date for the insured crop), unless you have
coverage greater than that applicable to the Catastrophic Risk
Protection Plan of Insurance and have records of acreage and
production that are used to determine your approved yield that show
the acreage was double-cropped in each of the last 4 years in which
the insured crop was grown on the acreage;
(6) Of a crop that is prevented from being planted if a cash
lease payment is also received for use of the same acreage in the
same crop year (not applicable if acreage is leased for haying or
grazing only);
(7) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes;
(8) That is in excess of the number of acres eligible for a
prevented planting payment or the number of eligible acres
physically available for planting;
(9) For which you cannot provide proof that you had the inputs
available to plant and produce a crop with the expectation of at
least producing the yield used to determine the production guarantee
or amount of insurance;
(10) Based on an irrigated practice production guarantee or
amount of insurance unless adequate irrigation facilities were in
place to carry out an irrigated practice on the acreage prior to the
insured cause of loss that prevented you from planting; or
(11) Based on a price election, amount of insurance or
production guarantee for a crop type that you did not plant in at
least one of the four most recent years. Types for which separate
price elections, amounts of insurance, or production guarantees are
available must be included in your APH database in at least one of
the most recent four years, or, crops that do not require yield
certification (crops for which the insurance
[[Page 43248]]
guarantee is not based on APH) must be reported on your acreage
report in at least one of the four most recent crop years.
(g) The prevented planting payment for any eligible acreage
within a unit will be determined by:
(1) Multiplying the liability per acre for timely planted
acreage of the insured crop (the amount of insurance per acre or the
production guarantee per acre multiplied by the price election for
the crop, or type if applicable) by the prevented planting coverage
level percentage you elected, or that is contained in the Crop
Provisions if you did not elect a prevented planting coverage level
percentage;
(2) Multiplying the result of section 17(g)(1) by the number of
eligible prevented planting acres in the unit; and
(3) Multiplying the result of section 17(g)(2) by your share.
18. Written Agreements.
Terms of this policy which are specifically designated for the
use of written agreements may be altered by written agreement in
accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
18(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, the guarantee, premium rate, and price election;
(d) Each written agreement will only be valid for one crop year
(If the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
19. Crops as Payment.
You must not abandon any crop to us. We will not accept any crop
as compensation for payments due us.
For FCIC policies
20. Appeals.
All determinations required by the policy will be made by us. If
you disagree with our determinations, you may obtain reconsideration
of or appeal those determinations in accordance with appeal
provisions published at 7 CFR part 11.
For reinsured policies
20. Arbitration.
(a) If you and we fail to agree on any factual determination,
the 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 through the FCIC
appeal provisions published at 7 CFR part 11.
(b) No award determined by arbitration can exceed the amount of
liability established or which should have been established under
the policy.
21. 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 the units by us;
(3) Combination of the units; or
(4) 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 authority of the Act or
by continuing insurance for which you previously applied, 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, FSA offices, banks,
warehouses, gins, cooperatives, marketing associations, and
accountants. You must assist us in obtaining all records which we
request from third parties.
22. 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
paragraph 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, and you have not excluded coverage for
fire from this policy, we will be liable for loss due to fire only
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 from fire is determined to
exceed the indemnity paid or payable under such other insurance.
(3) For the purpose of subsection (b) of this section the amount
of loss from fire will be the difference between the fair market
value of the production of the insured crop on the unit involved
before the fire and after the fire, as determined from appraisals
made by us.
23. 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 specifically 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 provisions (title XVII) of the Food Security Act of 1985
(Pub. L. 99-198) and the regulations promulgated under the Act by
USDA. Your insurance policy will be canceled if you are determined,
by the appropriate 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
or to be paid by you.
For FCIC Policies
24. Amounts Due Us.
(a) Any amount illegally or erroneously paid to you or that is
owed to us but is delinquent may be recovered by us through offset
by deducting it from any loan or payment due you under any Act of
Congress or program administered by any United States Government
Agency, or by other collection action.
(b) Interest will accrue at the rate of 1\1/4\ percent simple
interest per calendar month, or any part thereof, on any unpaid
premium amount due us. With respect to any premiums owed, interest
will start to accrue on the first day of the month following the
premium billing date specified in the Special Provisions.
(c) 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
paragraph 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.
(d) Penalties and interest will be charged in accordance with 31
U.S.C. 3717 and 4 CFR part 102. The penalty for accounts more than
90 days delinquent is an additional 6 percent per annum.
(e) Interest on any amount due us found to have been received by
you because of fraud, misrepresentation or presentation by you of a
false claim will start on the date you received the amount with the
additional 6 percent penalty beginning on the 31st day after the notice
of amount due is issued to you. This interest is in addition to any
other amount found to be due under any other federal criminal or civil
statute.
(f) If we determine that it is necessary to contract with a
collection agency, refer the debt to government collection
[[Page 43249]]
centers, the Department of Treasury Offset Program, or to employ an
attorney to assist in collection, you agree to pay all the expenses of
collection.
(g) All amounts paid will be applied first to the payment of the
expenses of collection second to the reduction of any penalties which
may have been assessed, then to reduction of accrued interest, then to
reduction of the principal balance.
For Reinsured Policies
24. Amounts Due Us.
(a) Interest will accrue at the rate of 1.25 percent simple
interest per calendar month on any unpaid amount due us. For the
purpose of premium amounts due us, the 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 this
paragraph 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 subsection (d) of this section) 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.
25. 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(j).
(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.
26. 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.
27. Concealment, Misrepresentation or Fraud.
(a) This policy will be voided in the event that you have
falsely or fraudulently concealed the fact that you are ineligible
to receive benefits under the Act. This policy will also be voided
if you or anyone assisting you has intentionally concealed or
misrepresented any material fact relating to this policy.
(b) Even though the policy is void, you may still be required to
pay 20 percent of the premium due under the policy to offset costs
incurred by us in the service of this policy. If previously paid,
the balance of the premium will be returned.
(c) Voidance of this policy will result in you having to
reimburse all indemnities paid during the crop year in which the
violation occurred.
(d) Voidance will be effective with the first day of the
insurance period for the crop year in which the act occurred and
will not affect the policy for subsequent crop years unless a
violation of this section also occurred in such crop years or you
are disqualified or suspended or debarred under 7 CFR part 400,
subpart R.
28. 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. We will
not be liable for any more than the liability determined in
accordance with your policy that existed before the transfer
occurred. The transferee must be eligible for crop insurance.
29. 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. If you have suffered a loss from an insurable cause and fail
to file a claim for indemnity within 60 days after the end of the
insurance period, the assignee may submit the claim for indemnity
not later than 15 days after the 60 day period has expired. We will
make a good faith effort to honor the terms of this assignment but
no action will lie against us for failure to do so.
30. 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.
31. Applicability of State and Local Statutes.
If the provisions of this policy conflict with statutes of the
State or locality in which this policy is issued, the policy
provisions will prevail. State and local laws and regulations in
conflict with federal statutes, this policy, and the applicable
regulations do not apply to this policy.
32. 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.
33. 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. Notice sent to such
address will be conclusively presumed to have been received by you.
You should advise us immediately of any change of address.
34. Unit Division.
(a) Unless limited by the Crop Provisions or Special Provisions,
a basic unit as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8) may be divided into optional units if, for
each optional unit, you meet the following:
(1) 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;
(2) All optional units you select for the crop year are
identified on the acreage report for that crop year;
(3) You have records, which can be independently verified, of
planted acreage and the production from each optional unit for at
least the last crop year used to determine your production
guarantee;
(4) You have records of marketed or stored production from each
optional unit maintained in such a manner that permits us to verify
the production from each optional unit, or the production from each
optional unit must be kept separate until loss adjustment is
completed by us; and
(b) Each optional unit must meet one or more of the following,
unless otherwise specified in the Crop Provisions or allowed by
written agreement:
(1) 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
[[Page 43250]]
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; and
(2) 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 and non-irrigated acreage if both
are located in the same section, section equivalent or FSA farm
serial number. To qualify as separate irrigated and non-irrigated
optional units, the non-irrigated acreage may not continue into the
irrigated acreage in the same rows or planting pattern. The
irrigated acreage may not extend beyond the point at which the
irrigation system can deliver the quantity of water needed to
produce the yield on which the 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 qualify as a separate
optional unit provided all requirements of this section and the Crop
Provisions are met.
(c) Optional units are not available for crops insured under a
Catastrophic Risk Protection Endorsement.
(d) If you do not comply fully with the provisions in this
section, we will combine all optional units that are not in
compliance with these provisions into the basic unit from which they
were formed. We will combine the optional units at any time we
discover that you have failed to comply with these provisions. If
failure to comply with these provisions is determined by us to be
inadvertent, and the optional units are combined into a basic unit,
that portion of the additional premium paid for the optional units
that have been combined will be refunded to you for the units
combined.
* * * * *
5. Section 457.101 is amended by revising the introductory text and
removing the paragraph preceding Definitions to read as follows:
Sec. 457.101 Small grains crop insurance provisions.
The small grains crop insurance provisions for the 1998 and
succeeding crop years in counties with a contract change date of
December 31, and for the 1999 and succeeding crop years in counties
with a contract change date of June 30, are as follows:
* * * * *
6. In Sec. 457.101, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``days,'' ``final planting date,''
``good farming practices,'' ``interplanted,'' ``irrigated practice,''
``late planted,'' ``practical to replant,'' ``production guarantee,''
``replanting,'' and ``timely planted'' and revise the definitions of
``planted acreage'' and ``prevented planting'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), except for flax, 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. Flax seed must initially be planted
in rows to be considered planted, unless otherwise provided by the
Special Provisions, Actuarial Table, or by written agreement.
Prevented planting--(In lieu of the definition contained in the
Basic Provisions (Sec. 457.8)) Failure 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 by
the end of the late planting period. You must have failed 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.
* * * * *
7. In Section 457.101, remove the words ``Common Crop Insurance
Policy'' and add in their place, the words ``Basic Provisions'' in the
following places:
a. Section 3 Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities;
b. Section 4 Contract Changes;
c. Section 6 Insured Crop paragraphs (b)(1) and (b)(2);
d. Section 7 Insurance Period introductory text;
e. Section 8 Causes of Loss, introductory text;
f. Section 9 Replanting Payments, paragraphs (a)(1) and (c); and
g. Section 10 Duties in the Event of Damage or Loss.
8. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
In addition to the requirements of section 34.(b) of the Basic
Provisions (Sec. 457.8), for wheat only, in addition to, or instead
of, optional units by section, section equivalent or FSA farm serial
number and by irrigated and non-irrigated practices, optional units
may be established if each optional unit contains only initially
planted winter wheat or 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 in the Special
Provisions.
9. In Section 6. Insured Crop, paragraph (b)(1) is revised to read
as follows:
6. Insured Crop.
(a) * * *
(b) * * *
(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 of
the Basic Provisions (Sec. 457.8)); or
* * * * *
10. In Section 7. Insurance Period, paragraphs (a)(1)(i),
(a)(1)(ii), and (a)(2)(i) are revised to read as follows:
7. Insurance Period.
* * * * *
(a) * * *
(1) * * *
(i) The acreage must be planted on or before the final planting
date designated in the Special Provisions for the insured crop
except as allowed in section 12 of these crop provisions and section
16 of the Basic Provisions (Sec. 457.8).
(ii) Any acreage of the insured crop damaged before the final
planting date, to the extent that growers in the area would not
normally further care for the crop, must be replanted unless we
agree that replanting is not practical.
(2) * * *
(i) 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 of these crop provisions and
section 16 of the Basic Provisions (Sec. 457.8).
* * * * *
11. In Section 12. Late Planting and Prevented Planting is revised
to read as follows:
12. Late Planting.
A late planting period is not applicable to fall-planted wheat.
Any winter wheat that is planted after the fall final planting date
in counties for which the Special Provisions also contain a final
planting date for spring wheat will not be insured. Any winter wheat
that is planted after the fall final planting date in counties for
which the Special Provisions contain only a fall final planting date
will not be insured unless you were prevented from planting the
winter wheat by the fall final planting date. Such acreage will be
insurable, and the production guarantee and premium for the acreage
will be determined in accordance with sections 16 (b) and (c) of the
Basic Provisions (Sec. 457.8).
12. Section 13 is added to read as follows:
13. Prevented Planting.
(a) In addition to the provisions contained in section 17 of the
Basic Provisions (Sec. 457.8), in counties for which the Special
Provisions designate a spring final planting date, your prevented
planting production guarantee will be based on your approved yield
for spring-planted acreage of the insured crop.
(b) Your prevented planting coverage will be 60 percent of your
production guarantee for timely planted acreage. If you have
[[Page 43251]]
limited or additional levels of coverage, as specified in 7 CFR part
400 subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
13. Section 457.104 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.104 Cotton crop insurance provisions.
The cotton crop insurance provisions for the 1998 and succeeding
crop years are as follows:
* * * * *
14. In Sec. 457.104, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``days,'' ``final planting date,''
``good farming practices,'' ``interplanted,'' ``irrigated practice,''
``late planted,'' ``late planting period,'' ``practical to replant,''
``prevented planting,'' ``replanting,'' ``timely planted,'' and
``written agreement'' and revise the definition of ``planted acreage''
to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), cotton must be planted in rows,
unless otherwise provided by the Special Provisions, Actuarial
Table, or by written agreement. 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.
* * * * *
15. In Sec. 457.104, remove the words ``Common Crop Insurance
Policy'' and add in their place, the words ``Basic Provisions'' in the
following places:
a. Section 3 Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities;
b. Section 4 Contract Changes;
c. Section 5 Cancellation and Termination Dates, introductory text;
d. Section 6 Insured Crop, introductory text;
e. Section 7 Insurable Acreage, introductory text;
f. Section 8 Insurance Period, paragraphs (a) and (b);
g. Section 9 Causes of Loss, introductory text; and
h. Section 10 Duties in the Event of Damage or Loss, paragraph (a).
* * * * *
16. Section 2. Unit Division is removed.
Sec. 457.104, Sections 3 through 13 [Redesignated as sections 2
through 12]
17. In Sec. 457.104, Sections 3 through 13 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
Section 13............................... Section 12.
------------------------------------------------------------------------
18. Redesignated Section 6(b) is revised to read as follows:
6. Insurable Acreage.
* * * * *
(a) * * *
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that a majority of producers in the
area would not normally further care for the crop, must be replanted
unless we agree that it is not practical to replant.
* * * * *
19. Redesignated Section 7(a) is revised to read as follows:
7. Insurance Period.
(a) In lieu of Section 11(b)(2) of the Basic Provisions
(Sec. 457.8) (Harvest of the unit), insurance will end upon the
removal of the cotton from the field.
* * * * *
20. Redesignated Section 10(c)(1)(i)(E) is amended by changing the
section reference therein from 10 to 9.
* * * * *
21. Redesignated Section 10(c)(1)(iii) is amended by changing the
section reference therein from 11.(d) to 10(d).
* * * * *
22. Redesignated Section 11 is revised to read as follows:
11. Prevented Planting.
(a) In addition to the provisions contained in section 17 of the
Basic Provisions (Sec. 457.8), your prevented planting production
guarantee will be based on your approved yield for solid planted
acreage.
(b) Your prevented planting coverage will be 45 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
* * * * *
23. Redesignated Section 12 is removed.
24. Section 457.105 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.105 Extra long staple cotton crop insurance provisions.
The extra long staple cotton crop insurance provisions for the 1998
and succeeding crop years are as follows:
* * * * *
25. In Sec. 457.105, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``days,'' ``final planting date,''
``good farming practices,'' ``interplanted,'' ``irrigated practice,''
``practical to replant,'' ``prevented planting,'' ``timely planted,''
and ``written agreement'' and revise the definition of ``planted
acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), cotton must be planted in rows,
unless otherwise provided by the Special Provisions, Actuarial
Table, or by written agreement. 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.
* * * * *
26. In Sec. 457.105, remove the words ``Common Crop Insurance
Policy'' and add in their place, the words ``Basic Provisions'' in the
following places:
a. Section 3 Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities;
b. Section 4 Contract Changes;
c. Section 5 Cancellation and Termination Dates;
d. Section 6 Insured Crop, introductory text;
e. Section 7 Insurable Acreage, introductory text;
f. Section 8 Insurance Period, paragraphs (a) and (b);
g. Section 9 Causes of Loss, introductory text; and
h. Section 10 Duties in the Event of Damage or Loss, paragraph (a).
27. Section 2. Unit Division is removed.
Sec. 457.105, Sections 3 through 13 [Redesignated as sections 2
through 12]
28. In Sec. 457.105, Sections 3 through 13 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
Section 13............................... Section 12.
------------------------------------------------------------------------
[[Page 43252]]
29. Redesignated Section 6(b) is revised to read as follows:
6. Insurable Acreage.
* * * * *
(a) * * *
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that a majority of producers in the
area would not normally further care for the crop, must be replanted
unless we agree that it is not practical to replant.
* * * * *
30. Redesignated Section 7(a) is revised to read as follows:
7. Insurance Period.
(a) In lieu of Section 11(b)(2) of the Basic Provisions
(Sec. 457.8) (Harvest of the unit), insurance will end upon the
removal of the cotton from the field.
* * * * *
31. Redesignated Section 10(c)(1)(i)(E) is amended by changing the
section reference therein from 10 to 9.
* * * * *
32. Redesignated Section 10(c)(1)(iii)(A) is amended by changing
the section reference therein from 11.(d) and (e) to 10(d) and (e).
* * * * *
33. Redesignated Section 10(c)(1)(iii)(B) is amended by changing
the section reference therein from 11.(f) to 10(f).
* * * * *
34. Redesignated Section 10(e) is amended by changing the section
reference therein from 11(d) to 10(d).
35. Redesignated Section 11 is revised to read as follows:
11. Late Planting.
A late planting period is not applicable to ELS cotton. Any ELS
cotton that is planted after the final planting date will not be
insured unless you were prevented from planting it by the final
planting date. Such acreage will be insurable, and the production
guarantee and premium for the acreage will be determined in
accordance with sections 16(b) and (c) of the Basic Provisions
(Sec. 457.8).
36. Redesignated Section 12 is revised to read as follows:
12. Prevented Planting.
(a) In addition to the provisions contained in section 17 of the
Basic Provisions (Sec. 457.8), your prevented planting production
guarantee will be based on your approved yield for solid planted
acreage.
(b) Your prevented planting coverage will be 45 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
37. Section 457.106 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.106 Texas citrus tree crop insurance provisions.
The Texas citrus tree crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
38. In Sec. 457.106, 1. Definitions, remove the definitions of
``days,'' ``deductible,'' ``FSA,'' ``non-contiguous land,'' and
``written agreement.''
39. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by each citrus crop designated in the Special Provisions.
(b) Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by irrigated and non-irrigated practices are not
applicable. Each optional unit must meet one of the following,
unless otherwise allowed by written agreement:
(1) 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 that
have not been surveyed using the systems identified above, or
another system approved by us, and in areas where such systems exist
but boundaries are not readily discernible, each optional unit must
be located in a separate FSA farm serial number; or
(2) Instead of establishing optional units by section, section
equivalent, or FSA Farm Serial Number optional units may be
established if each optional unit is located on non-contiguous land.
40. Section 13 is revised to read as follows:
13. Late and prevented planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
41. Section 457.107 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.107 Florida citrus fruit crop insurance provisions.
The Florida citrus fruit crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
42. In Sec. 457.107, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``non-contiguous land,'' and ``written agreement.''
43. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by each citrus crop designated in the Special Provisions.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Each optional unit must meet one of the following,
unless otherwise allowed by written agreement:
(1) 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 that
have not been surveyed using the systems identified above, or
another system approved by us, and in areas where such systems exist
but boundaries are not readily discernible, each optional unit must
be located in a separate FSA farm serial number; or
(2) Instead of establishing optional units by section, section
equivalent, or FSA farm serial number, optional units may be
established if each optional unit is located on non-contiguous land.
44. Section 6(d) is amended by changing the section reference
therein from 6(f) to 6.
45. Section 11 is revised to read as follows:
11. Late and prevented planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
46. Section 457.108 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.108 Sunflower seed crop insurance provisions.
The sunflower seed crop insurance provisions for the 1998 and
succeeding crop years are as follows:
* * * * *
47. In Sec. 457.108, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``days,'' ``final planting date,''
``good farming practices,'' ``interplanted,'' ``irrigated practice,''
``late planted,'' ``late planting period,'' ``practical to replant,''
``prevented planting,'' ``production guarantee,'' ``replanting,''
``timely planted,'' and ``written agreement'' and revise the definition
of ``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), sunflower seed must initially be
planted in rows far enough apart to permit mechanical cultivation,
unless otherwise provided by the Special Provisions, Actuarial
Table, or by written agreement.
* * * * *
48. Section 2. Unit Division is removed.
[[Page 43253]]
Sec. 457.108, Sections 3 through 13 [Redesignated as Sections 2
through 12]
49. In Sec. 457.108, Sections 3 through 13 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
Section 13............................... Section 12.
------------------------------------------------------------------------
50. Redesignated Section 4 is amended by changing the section
reference therein from 2(f) to 2.
51. Redesignated Section 6(b) is revised to read as follows:
6. Insurable Acreage.
* * * * *
(a) * * *
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that a majority of growers in the area
would not normally further care for the crop, must be replanted
unless we agree that replanting is not practical.
52. Redesignated Section 9(a) is revised to read as follows:
9. Replanting Payments.
(a) In accordance with Section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment for sunflower
seed is allowed if the sunflowers are damaged by an insurable cause
of loss to the extent that the remaining stand will not produce at
least ninety percent (90%) of the production guarantee for the
acreage and it is practical to replant.
* * * * *
53. Redesignated Section 9(b) is amended by changing the section
reference therein from 10.(c) to 9(c).
54. Redesignated Section 11(c)(1)(iii) is amended by changing the
section reference therein from 12.(d) to 11(d).
55. Redesignated Section 11(d)(4) is amended by changing the
section reference therein from 12.(d)(2) and (3) to 11(d)(2) and (3).
56. Redesignated Section 12 is revised to read as follows:
12. Prevented Planting.
Your prevented planting coverage will be 60 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
57. Section 457.109 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.109 Sugar beet crop insurance provisions.
The sugar beet crop insurance provisions for the 1998 and
succeeding crop years in counties with a contract change date of
November 30, and for the 1999 and succeeding crop years in counties
with a contract change date of April 30, are as follows:
* * * * *
58. In Sec. 457.109, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``final planting date,'' ``good farming practices,''
``interplanted,'' ``irrigated practice,'' ``late planted,'' ``late
planting period,'' ``prevented planting,'' ``replanting,'' ``timely
planted,'' and ``written agreement'' and revise the definition of
``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), sugar beets must initially be planted
in rows, unless otherwise provided by the Special Provisions,
Actuarial Table, or by written agreement.
* * * * *
59. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
In addition to the requirements of section 34 of the Basic
Provisions (Sec. 457.8), basic units may be divided into optional
units only if you have a sugar beet processor contract that requires
the processor to accept all production from a number of acres
specified in the sugar beet processor contract. Acreage insured to
fulfill a sugar beet processor contract which provides that the
processor will accept a designated amount of production or a
combination of acreage and production will not be eligible for
optional units.
60. Section 14 is revised to read as follows:
14. Late Planting.
The late planting provisions contained in section 16 of the
Basic Provisions (Sec. 457.8), are not applicable in California
counties with a July 15 cancellation date.
61. Section 15 is revised to read as follows:
15. Prevented Planting.
(a) The prevented planting provisions contained in section 17 of
the Basic Provisions (Sec. 457.8), are not applicable in California
counties with a July 15 cancellation date.
(b) Except in those counties indicated in section 15(a), your
prevented planting coverage will be 45 percent of your production
guarantee for timely planted acreage. If you have limited or
additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
62. Section 457.110 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.110 Fig crop insurance provisions.
The fig crop insurance provisions for the 1999 and succeeding crop
years are as follows:
* * * * *
63. In Sec. 457.110, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``good farming practices,''
``irrigated practices,'' ``non-contiguous land,'' and ``production
guarantee.''
64. In Sec. 457.110, remove the words ``Common Crop Insurance
Policy'' and add in their place, the words ``Basic Provisions'' in the
following places:
a. Section 3 Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities;
b. Section 4 Contract Changes;
c. Section 8 Insurance Period, introductory text; and
d. Section 9 Causes of Loss, paragraphs (a) and (b).
* * * * *
65. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
66. Section 11 is added to read as follows:
11. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
67. Section 457.111 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.111 Pear crop insurance provisions.
The pear crop insurance provisions for the 1999 and succeeding crop
years are as follows:
* * * * *
68. In Sec. 457.111, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices, ``irrigated practice,''
``non-contiguous,'' ``production guarantee (per acre),'' and ``written
agreement.''
69. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Each optional unit must meet one of the
[[Page 43254]]
following, unless otherwise allowed by written agreement:
(a) 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 that
have not been surveyed using the systems identified above, or
another system approved by us, and in areas where such systems exist
but boundaries are not readily discernible, each optional unit must
be located in a separate FSA farm serial number; or
(b) Instead of establishing optional units by section, section
equivalent, or FSA farm serial number optional units may be
established if each optional unit is located on non-contiguous land.
(c) In addition to, or instead of, establishing optional units
by section, section equivalent, FSA farm serial number, or on non-
contiguous land, optional units may be established by varietal group
when provided for in the Special Provisions.
70. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
71. Section 457.113 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.113 Coarse grains crop insurance provisions.
The coarse grains crop insurance provisions for the 1998 and
succeeding crop years are as follows:
* * * * *
72. In Sec. 457.113, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``days,'' ``final planting date,''
``good farming practices,'' ``interplanted,'' ``irrigated practice,''
``late planted,'' ``late planting period,'' ``practical to replant,''
``prevented planting,'' ``replanting,'' ``timely planted,'' and
``written agreement'' and revise the definitions of ``planted acreage''
and ``production guarantee'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), coarse grains must initially be
planted in rows (corn must be planted in rows far enough apart to
permit mechanical cultivation), unless otherwise provided by the
Special Provisions, Actuarial Table, or by written agreement.
Production guarantee (per acre)--In lieu to the definition
contained in the Basic Provisions (Sec. 457.8), the number of
bushels (tons for corn insured as silage) determined by multiplying
the approved actual production history (APH) yield per acre,
calculated in accordance with 7 CFR part 400, subpart G, by the
coverage level percentage you elect.
* * * * *
73. In Sec. 457.113, remove the words ``Common Crop Insurance
Policy'' and add in their place, the words ``Basic Provisions'' in the
following places: a. Section 3 Insurance Guarantees, Coverage Levels,
and Prices for Determining Indemnities, paragraph (a);
b. Section 4 Contract Changes;
c. Section 5 Cancellation and Termination Dates;
d. Section 6 Insured Crop, paragraph (a);
e. Section 7 Insurable Acreage;
f. Section 8 Insurance Period, introductory text;
g. Section 9 Causes of Loss, introductory text;
h. Section 10 Replanting Payments, paragraph (a); and
i. Section 11 Duties in the Event of Damage or Loss, paragraphs
(a), (b)(1), and (b)(2).
* * * * *
74. Section 2. Unit Division is removed.
Sec. 457.113, Sections 3 through 13 [Redesignated as Sections 2
through 12]
75. In Sec. 457.113, Sections 3 through 13 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
Section 13............................... Section 12.
------------------------------------------------------------------------
76. Redesignated Section 4 is amended by changing the section
reference therein from 2.(f) to 2.
77. Redesignated Section 5(a)(3)(i) is amended by changing the
section reference therein from 6.(b)(1) to 5(b)(1).
78. Redesignated Section 5(b) is amended by changing the section
reference therein from 6.(a) to 5(a).
79. Redesignated Section 5(b)(1) is amended by changing the section
reference therein from 6.(c) to 5(c).
80. Redesignated Sections 5(d) and (e) are amended by changing the
section references therein from 6.(a) to 5(a).
81. Redesignated Section 6 is revised to read as follows:
6. Insurable Acreage.
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), any acreage of the insured
crop damaged before the final planting date, to the extent that a
majority of growers in the area would not normally further care for
the crop, must be replanted unless we agree that replanting is not
practical.
82. Redesignated Section 9(a) is revised to read as follows:
9. Replanting Payments.
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), 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 ninety percent (90%) of the production guarantee for the
acreage and it is practical to replant.
83. Redesignated Sections 11(b)(2)(iv) and 11(c) are amended by
changing the section references therein from 12.(d) to 11(d).
84. Redesignated Section 11(c)(1)(iii) is amended by changing the
section reference therein from 12.(e) to 11(e).
85. Redesignated Section 11(d)(2) is amended by changing the
section reference therein from 12.(c)(1) to 11(c)(1).
86. Redesignated Section 11(e) is amended by changing the section
reference therein from 12.(f) to 11(f).
87. Redesignated Section 11(e)(4) is amended by changing the
section reference therein from 12.(e)(2) and (3) to 11(e)(2) and (3).
88. Redesignated Section 12 is revised to read as follows:
12. Prevented Planting.
Your prevented planting coverage will be 60 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
89. Section 457.114 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.114 Nursery crop insurance provisions.
The nursery crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
90. In Sec. 457.114, 1. Definitions, remove alphabetic paragraph
designations and the definition of ``written agreement'' and revise the
definition of ``irrigated practice'' to read as follows:
1. Definitions.
* * * * *
Irrigated practice--(In lieu of the definition contained in the
Basic Provisions (Sec. 457.8).) A method of producing a crop by
which
[[Page 43255]]
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 maintain the amount of
insurance on the nursery plant inventory.
* * * * *
91. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
In lieu of the definition of ``basic unit'' and section 34 of
the Basic Provisions (Sec. 457.8), a unit consists of all growing
locations in the county within a five mile radius of the named
insured locations designated on your nursery plant inventory
summary. Any growing location more than five miles from any other
growing location, but within the county, may be designated as a
separate basic unit or be included in the closest unit listed on
your nursery plant inventory summary.
92. Section 13 is added to read as follows:
13. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
93. Section 457.116 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.116 Sugar cane crop insurance provisions.
The sugar cane crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
94. In Sec. 457.116, 1. Definitions, remove alphabetic paragraph
designations and the definitions of ``CFSA,'' ``good farming
practices,'' ``interplanted,'' ``irrigated practice,'' ``production
guarantee,'' and ``written agreement.''
95. Section 2. Unit Division is removed.
Sec. 457.116, Sections 3 through 11 [Redesignated as sections 2
through 10]
96. In Sec. 457.116, Sections 3 through 11 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
------------------------------------------------------------------------
97. Redesignated Section 4 is amended by changing the section
reference therein from 2.(f) to 2.
98. Redesignated Section 7(a)(2) is amended by changing the section
reference therein from 8.(a)(3) to 7(a)(3).
99. Redesignated Section 10(c)(1)(v) is amended by changing the
section reference therein from 10.(a)(2) to 9(a)(2).
100. Section 11 is added to read as follows:
11. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
101. Section 457.117 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.117 Forage production crop insurance provisions.
The forage production crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
102. In Sec. 457.117, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,''
``production guarantee (per acre),'' and ``written agreement.''
103. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
The optional unit provisions in section 34 of the Basic
Provisions (Sec. 457.8) are not applicable.
104. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
105. Section 457.119 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.119 Texas citrus fruit crop insurance provisions.
The Texas citrus fruit crop insurance provisions for the 2000 and
succeeding crop years are as follows:
* * * * *
106. In Sec. 457.119, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``irrigated practice,''
``non-contiguous land'' and ``written agreement.''
107. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by each citrus crop designated in the Special Provisions.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Each optional unit must meet one of the following,
unless otherwise allowed by written agreement:
(1) 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 that
have not been surveyed using the systems identified above, or
another system approved by us, and in areas where such systems exist
but boundaries are not readily discernible, each optional unit must
be located in a separate FSA farm serial number; or
(2) Instead of establishing optional units by section, section
equivalent, or FSA farm serial number, optional units may be
established if each optional unit is located on non-contiguous land.
108. Section 13 is revised to read as follows:
13. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
109. Section 457.121 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.121 Arizona-California citrus crop insurance provisions.
The Arizona-California citrus crop insurance provisions for the
2000 and succeeding crop years are as follows:
* * * * *
110. In Sec. 457.121, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous land,'' ``production guarantee (per acre),'' and ``written
agreement.''
111. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by each citrus crop designated in the Special Provisions.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
112. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
113. Section 457.122 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
[[Page 43256]]
Sec. 457.122 Walnut crop insurance provisions.
The walnut crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
114. In Sec. 457.122, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous land,'' and ``written agreement.''
115. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
116. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
117. Section 457.123 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.123 Almond crop insurance provisions.
The almond crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
118. In Sec. 457.123, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous land,'' and ``written agreement.''
119. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
120. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
121. Section 457.124 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.124 Raisin crop insurance provisions.
The raisin crop insurance provisions for the 1998 and succeeding
crop years are as follows:
* * * * *
122. In Sec. 457.124, 1. Definitions, remove the definitions of
``days,'' ``non-contiguous land,'' and ``written agreement.''
123. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit as defined in section 1 of the Basic Provisions
(Sec. 457.8), will be divided into additional basic units by grape
variety.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
124. Section 14 is revised to read as follows:
14. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
125. Section 457.125 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.125 Safflower crop insurance provisions.
The safflower crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
126. In Sec. 457.125, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``final planting date,'' ``good farming practices,''
``interplanted,'' ``irrigated practice,'' ``practical to replant,''
``production guarantee (per acre),'' ``replanting,'' and ``written
agreement'' and revise the definition of ``planted acreage'' to read as
follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), safflowers must initially be planted
in rows, unless otherwise provided by the Special Provisions,
Actuarial Table, or by written agreement.
* * * * *
127. Section 2. Unit Division is removed.
Sec. 457.125, Sections 3 through 13 [Redesignated as Sections 2
through section 12.]
128. In Sec. 457.125, Sections 3 through 13 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
Section 13............................... Section 12.
------------------------------------------------------------------------
129. Redesignated Section 11(b)(2) is amended by changing the
section reference therein from 12(b)(1) to 11(b)(1).
130. Redesignated Section 11(b)(3) is amended by changing the
section reference therein from 12(b)(2) to 11(b)(2).
131. Redesignated Section (11)(b)(4) is amended by changing the
section reference therein from 12(c) to 11(c).
132. Redesignated Section 11(b)(5) is amended by changing the
section reference therein from 12(b)(4) to 11(b)(4).
133. Redesignated Section 11(b)(6) is amended by changing the
section references therein from 12(b)(5) to 11(b)(5) and 12(b)(3) to
11(b)(3).
134. Redesignated Section 11(b)(7) is amended by changing the
section reference therein from 12(b)(6) to 11(b)(6).
135. Redesignated Section 11(c)(1)(iii) is amended by changing the
section reference therein from Section 12(d) to Section 11(d).
136. Redesignated Section 11(d)(4) is amended by changing the
section reference therein from 12(d)(2) and (3) to 11(d)(2) and (3).
137. Redesignated Section 12 is amended to read as follows:
12. Prevented Planting.
Your prevented planting coverage will be 60 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
* * * * *
Sec. 457.128 Guaranteed production plan of fresh market tomato.
138. Section 457.128 is amended by removing the paragraph preceding
Definitions.
139. In Sec. 457.128, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``irrigated practice,''
``production guarantee (per acre),'' ``replanting,'' and ``written
agreement.''
140. Section 2. Unit Division is amended to read as follows:
[[Page 43257]]
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by planting period, if separate planting periods are provided
for in the Special Provisions.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located in a separate section, section equivalent, or FSA
farm serial number, unless otherwise allowed by written agreement.
141. Section 14 is amended to read as follows:
14. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
142. Section 457.129 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.129 Fresh market sweet corn crop insurance provisions.
The fresh market sweet corn crop insurance provisions for the 1999
and succeeding crop years are as follows:
* * * * *
143. In Sec. 457.129, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``interplanted,''
``irrigated practice,'' ``replanting,'' and ``written agreement'' and
revise the definition of ``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), sweet corn seed must be planted in
rows far enough apart to permit mechanical cultivation, unless
otherwise provided by the Special Provisions, Actuarial Table, or by
written agreement.
* * * * *
144. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 of the Basic
Provisions (Sec. 457.8), will be divided into additional basic units
by planting period.
(b) Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located in a separate section, section equivalent, or FSA
farm serial number as provided in the unit division provisions
contained in the Basic Provisions (Sec. 457.8), unless otherwise
allowed by written agreement.
145. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
146. Section 457.130 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.130 Macadamia tree crop insurance provisions.
The macadamia tree crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
147. In Sec. 457.130, 1. Definitions, remove the definitions of
``days,'' ``non-contiguous,'' and ``written agreement.''
148. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Unless otherwise allowed by written agreement, optional
units may be established only if each optional unit:
(a) Contains at least 80 acres of insurable age macadamia trees;
or
(b) Is located on non-contiguous land.
149. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
150. Section 457.131 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.131 Macadamia nut crop insurance provisions.
The macadamia nut crop insurance provisions for the 2000 and
succeeding crop years are as follows:
* * * * *
151. In Sec. 457.131, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous,'' and ``written agreement.''
152. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Unless otherwise allowed by written agreement, optional
units may be established only if each optional unit:
(a) Contains at least 80 acres of bearing macadamia trees; or
(b) Is located on non-contiguous land.
153. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
154. Section 457.132 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.132 Cranberry crop insurance provisions.
The cranberry crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
155. In Sec. 457.132, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous land,'' ``production guarantee (per acre),'' and ``written
agreement.''
156. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located on non-contiguous land, unless otherwise allowed by
written agreement.
157. Section 11 is revised to read as follows:
11. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
158. Section 457.135 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.135 Onion crop insurance provisions.
The onion crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
159. In Sec. 457.135, 1. Definitions, remove the definitions of
``crop year,'' ``days,'' ``FSA,'' ``final planting date,'' ``good
farming practices,'' ``interplanted,'' ``irrigated practice,'' ``late
planted,'' ``late planting period,'' ``practical to replant,''
``prevented planting,'' ``replanting,'' ``timely planted,'' and
``written agreement.''
160. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by section, section equivalent, or FSA farm serial
number are not applicable. Optional units must meet one or more of
the following, as applicable, unless otherwise provided by written
agreement:
(a) Optional units may be based on irrigated acreage or non-
irrigated acreage as provided in the unit division provisions
contained in the Basic Provisions (Sec. 457.8); or
(b) In addition to, or instead of, establishing optional units
by irrigated
[[Page 43258]]
acreage or non-irrigated acreage, optional units may be established
by type, if the specific type is designated in the Special
Provisions.
161. Section 14 is revised to read as follows:
14. Prevented Planting.
Your prevented planting coverage will be 45 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
162. Section 15 is removed.
163. Section 457.138 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.138 Grape crop insurance provisions.
The grape crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
164. In Sec. 457.138, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``irrigated practice,''
``non-contiguous,'' ``production guarantee (per acre)'' ``USDA,'' and
``written agreement.''
165. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) In California only, a basic unit, as defined in section 1
(Definitions) of the Basic Provisions (Sec. 457.8), will be divided
into additional basic units by each variety that you insure.
(b) In California only, provisions in the Basic Provisions
(Sec. 457.8), that provide for optional units by section, section
equivalent, or FSA farm serial number and by irrigated and non-
irrigated practices are not applicable. Optional units may be
established only if each optional unit is located on non-contiguous
land, unless otherwise allowed by written agreement.
(c) In all states except California, in addition to, or instead
of, establishing optional units by section, section equivalent, or
FSA farm serial number and by irrigated and non-irrigated acreage as
provided in the unit division provisions contained in the Basic
Provisions (Sec. 457.8), a separate optional unit may be established
if each optional unit:
(1) Is located on non-contiguous land; or
(2) Consists of a separate varietal group when separate varietal
groups are specified in the Special Provisions.
166. Section 13 is revised to read as follows:
13. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
167. Section 457.139 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.139 Fresh market tomato (dollar plan) crop insurance
provisions.
The fresh market tomato (dollar plan) crop insurance provisions for
the 1999 and succeeding crop years are as follows:
* * * * *
168. In Sec. 457.139, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``interplanted,''
``irrigated practice,'' ``replanting,'' and ``written agreement'' and
revise the definition of ``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), tomato seed must initially be planted
in rows far enough apart to permit mechanical cultivation, unless
otherwise provided by the Special Provisions, Actuarial Table, or by
written agreement.
* * * * *
169. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 of the Basic
Provisions (Sec. 457.8), will be divided into additional basic units
by planting period.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located in a separate section, section equivalent, or FSA
farm serial number as provided in the unit division provisions
contained in the Basic Provisions (Sec. 457.8), unless otherwise
allowed by written agreement.
170. Section 15 is revised to read as follows:
15. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
Sec. 457.141 Rice crop insurance provisions.
171. Section 457.141 is amended by removing the paragraph preceding
Definitions.
172. In Section 457.141, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``final planting date,'' ``good farming practices,''
``irrigated practice,'' ``late planted,'' ``late planting period,''
``practical to replant,'' ``prevented planting,'' ``production
guarantee (per acre),'' ``replanting,'' ``timely planted,'' and
``written agreement.''
* * * * *
173. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located in a separate section, section equivalent, or FSA
farm serial number as provided in the unit division provisions
contained in the Basic Provisions (Sec. 457.8), unless otherwise
allowed by written agreement.
174. Section 13 is revised to read as follows:
13. Prevented Planting.
Your prevented planting coverage will be 45 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
175. Section 14 is removed.
176. Section 457.148 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.148 Fresh market pepper crop insurance provisions.
The fresh market pepper crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
177. In Sec. 457.148, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``interplanted,''
``irrigated practice,'' ``replanting,'' and ``written agreement'' and
revise the definition of ``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), peppers must initially be planted in
rows, unless otherwise provided by the Special Provisions, Actuarial
Table, or by written agreement.
178. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) A basic unit, as defined in section 1 (Definitions) of the
Basic Provisions (Sec. 457.8), will be divided into additional basic
units by planting period.
(b) Provisions in the Basic Provisions (Sec. 457.8) that allow
optional units by irrigated and non-irrigated practices are not
applicable. Optional units may be established only if each optional
unit is located in a separate section, section equivalent, or FSA
farm serial number as provided in the unit division provisions
contained in the Basic Provisions (Sec. 457.8), unless otherwise
allowed by written agreement.
179. Section 15 is revised to read as follows:
15. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
[[Page 43259]]
180. Section 457.150 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.150 Dry bean crop insurance provisions.
The dry bean crop insurance provisions for the 1998 and succeeding
crop years are as follows:
* * * * *
181. In Sec. 457.150, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``final planting date,'' ``good farming practices,''
``interplanted,'' ``irrigated practice,'' ``late planted,'' ``late
planting period,'' ``prevented planting,'' ``replanting,'' ``timely
planted,'' and ``written agreement'' and revise the definition of
``planted acreage'' to read as follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the definition contained in the
Basic Provisions (Sec. 457.8), beans must initially be planted in
rows far enough apart to permit mechanical cultivation, unless
otherwise provided by the Special Provisions, Actuarial Table, or by
written agreement.
* * * * *
182. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
(a) In addition to section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), (basic unit) all acreage of contract seed
beans qualifies as a separate basic unit. For production based seed
bean processor contracts, the unit will consist of all the acreage
needed to produce the amount of production under contract, based on
the actual production history of the acreage. For acreage based seed
bean processor contracts, the unit will consist of all acreage
specified in the contract.
(b) In addition to, or instead of, establishing optional units
by section, section equivalent, or FSA farm serial number and by
irrigated and non-irrigated acreage as provided in the unit division
provisions contained in the Basic Provisions (Sec. 457.8), a
separate optional unit may be established for each bean type shown
in the Special Provisions.
(c) Contract seed beans may qualify for optional units only if
the seed bean processor contract specifies the number of acres under
contract. Contract seed beans produced under a seed bean processor
contract that specifies only an amount of production or a
combination of acreage and production, are not eligible for optional
units.
183. Section 7(c)(3) is revised to read as follows:
7. Insured Crop.
* * * * *
(c) * * *
(3) Both parties (you and us) enter into a written agreement
allowing insurance on the type in accordance with section 18 of the
Basic Provisions (Sec. 457.8).
* * * * *
184. Section 14 is revised to read as follows:
14. Prevented Planting.
Your prevented planting coverage will be 60 percent of your
production guarantee for timely planted acreage. If you have limited
or additional levels of coverage, as specified in 7 CFR part 400
subpart T, and pay an additional premium, you may increase your
prevented planting coverage to the levels specified in the Actuarial
Table.
185. Section 15 is removed.
186. Section 457.151 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
The forage seeding crop insurance provisions for the 1999 and
succeeding crop years are as follows:
* * * * *
187. In Sec. 457.151, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``final planting date,'' ``interplanted,''
``irrigated practice,'' ``practical to replant,'' and ``written
agreement'' and revise the definition of ``planted acreage'' to read as
follows:
1. Definitions.
* * * * *
Planted acreage--In addition to the provisions in section 1 of
the Basic Provisions (Sec. 457.8), 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, unless otherwise
provided by the Special Provisions, Actuarial Table, or written
agreement.
* * * * *
188. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
A basic unit, as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), will be divided into additional basic units
by spring planted and fall planted acreage.
189. Section 13 is revised to read as follows:
13. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
190. Section 457.153 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.153 Peach crop insurance provisions.
The peach crop insurance provisions for the 1999 and succeeding
crop years are as follows:
* * * * *
191. In Sec. 457.153, 1. Definitions, remove the definitions of
``days,'' ``FSA,'' ``good farming practices,'' ``irrigated practice,''
``production guarantee (per acre),'' and ``written agreement.''
192. Section 2. Unit Division is removed.
Sec. 457.153, Sections 3 through 12 [Redesignated as sections 2
through 11]
193. In Sec. 457.153 Sections 3 through 12 are redesignated as
follows:
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Section 3................................ Section 2.
Section 4................................ Section 3.
Section 5................................ Section 4.
Section 6................................ Section 5.
Section 7................................ Section 6.
Section 8................................ Section 7.
Section 9................................ Section 8.
Section 10............................... Section 9.
Section 11............................... Section 10.
Section 12............................... Section 11.
------------------------------------------------------------------------
194. Redesignated Section 10(b)(2) is amended by changing the
section reference therein from 11(b)(1) to 10(b)(1).
195. Redesignated Section 10(b)(3) is amended by changing the
section reference therein from 11(b)(2) to 10(b)(2).
196. Redesignated Section 10(b)(4) is amended by changing the
section reference therein from 11(c) to 10(c).
197. Redesignated Section 10(b)(5) is amended by changing the
section reference therein from 11(b)(4) to 10(b)(4).
198. Redesignated Section 10(b)(6) is amended by changing the
section references therein from 11(b)(5) to 10(b)(5) and 11(b)(3) to
10(b)(3).
199. Redesignated Section 10(b)(7) is amended by changing the
section reference therein from 11(b)(6) to 10(b)(6).
200. Redesignated Section 10(c)(1)(i)(B) is amended by changing the
section reference therein from section 10 to section 9.
201. Redesignated Section 10(c)(3)(i)(B) is amended by changing the
section reference therein from 11(c)(3)(i)(A) to 10(c)(3)(i)(A).
202. Redesignated Section 10(c)(3)(ii)(B) is amended by changing
the section reference therein from 11(c)(3)(ii)(A) to 10(c)(3)(ii)(A).
203. Redesignated Section 11 is revised to read as follows:
[[Page 43260]]
11. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
* * * * *
204. Section 457.157 is amended by revising the introductory text
and removing the paragraph preceding Definitions to read as follows:
Sec. 457.157 Plum crop insurance provisions.
The plum crop insurance provisions for the 1999 and succeeding crop
years are as follows:
* * * * *
205. In Sec. 457.157, 1. Definitions, remove the definitions of
``days,'' ``good farming practices,'' ``irrigated practice,'' ``non-
contiguous,'' ``production guarantee (per acre)'' and ``written
agreement.''
206. Section 2. Unit Division is revised to read as follows:
2. Unit Division.
Provisions in the Basic Provisions (Sec. 457.8), that allow
optional units by section, section equivalent, or FSA farm serial
number and by irrigated and non-irrigated practices are not
applicable. Optional units must meet one or more of the following,
as applicable, unless otherwise provided by the Special Provisions,
Actuarial Table, or written agreement:
(a) Optional units may be established if each optional unit is
located on non-contiguous land.
(b) In addition to, or instead of, establishing optional units
for non-contiguous land, optional units may be established by
varietal group when provided for in the Special Provisions.
207. Section 12 is revised to read as follows:
12. Late and Prevented Planting.
The late and prevented planting provisions of the Basic
Provisions (Sec. 457.8) are not applicable.
Signed in Washington, DC, on August 7, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-21303 Filed 8-8-97; 12:46 pm]
BILLING CODE 3410-08-P