[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]



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Part III





Department of Agriculture





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Federal Crop Insurance Corporation



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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  

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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.

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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

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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

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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

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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