[Federal Register Volume 63, Number 248 (Monday, December 28, 1998)]
[Notices]
[Pages 71426-71441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34250]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation


Revenue Assurance

ACTION: Notice of availability.

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SUMMARY: In accordance with section 508(h) of the Federal Crop 
Insurance Act (Act), the Federal Crop Insurance Corporation (FCIC) 
Board of Directors (Board) approves for reinsurance and subsidy the 
insurance of corn and soybeans in select states and counties under the 
Revenue Assurance (RA) plan of insurance for the 1999 crop year. This 
notice is intended to inform eligible producers and the private 
insurance industry of the areas of availability, the RA coverage 
changes for corn and soybeans, and provide its terms and conditions.

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

SUPPLEMENTARY INFORMATION: Section 508(h) of the Act allows for the 
submission of a policy to FCIC's Board and authorizes the Board to 
review and, if the Board finds that the interests of producers are 
adequately protected and that any premiums charged to the producers are 
actuarially appropriate, approve the policy for reinsurance and subsidy 
in accordance with section 508(e) of the Act.
    In accordance with the Act, the Board approved a program of 
insurance known as ``Revenue Assurance'' originally submitted by Farm 
Bureau Mutual Insurance Company of Iowa as a pilot project covering 
corn and soybeans for the 1997 and 1998 crop years.
    The RA program was approved for reinsurance and premium subsidy, 
including subsidy for administrative and operating expenses. RA was 
designed to protect a producer's revenue whenever low prices or low 
yields, or a combination of both, causes harvest revenue to fall below 
a guaranteed level. Under RA, a producer selects a per-acre revenue 
amount that cannot be less than 65 percent or more than 75 percent of 
their units' expected revenue.
    The RA policy provides coverage on basic units, optional units, 
enterprise units, and whole-farm units. For the 1997 and 1998 crop 
years, the policy indemnity is finalized when the county harvest price 
and the producer's actual production are determined. This determination 
will typically take place in early December. The crop prices were 
established on a county basis.
    For the 1999 crop year, the RA program was expanded for corn and 
soybeans into Illinois, South Dakota, and Minnesota. Beginning with the 
1999 crop year, producers can select a coverage level percentage up to 
80 percent for whole-farm units, and a fall harvest price option that 
uses the greater of the projected harvest price or the fall harvest 
price in determining the revenue guarantee. The RA program will now use 
the Chicago Board of Trade futures for corn and soybean prices rather 
than crop county prices in determining the revenue guarantee, and use 
actual production history as the base for determining RA premium rates.
    FCIC herewith gives notice of the above-stated changes for the 1999 
crop

[[Page 71427]]

year for RA corn and soybeans for use by private insurance companies.
    The RA underwriting rules, rate factors, and forms for corn and 
soybeans will be released electronically to all reinsured companies 
through FCIC's Reporting Organization Server. FCIC will also make 
available the terms and conditions of the RA reinsurance agreement. 
Requests for this information should be sent to Heyward Baker, 
Director, Reinsurance Services Division, Federal Crop Insurance 
Corporation, 1400 Independence Avenue, S.W., Stop 0804, Room 6727-S, 
Washington, D.C., 20250-0804.
    Notice: The Basic Provisions and Crop Provisions for the 1999 RA 
corn and soybean program of insurance are as follows.

Revenue Assurance Insurance Policy

    (This is a continuous policy. Refer to section 3.)
    This policy is reinsured by the Federal Crop Insurance Corporation 
(FCIC) under the authority of section 508(h) of the Federal Crop 
Insurance Act, as amended (7 U.S.C. 1508(h)). The provisions of the 
policy may not be waived or varied in any way by the crop insurance 
agent or any other agent or employee of the company. In the event the 
company cannot pay a loss, the claim will be settled in accordance with 
the provisions of the policy and paid by FCIC. No state guarantee fund 
will be liable to pay the loss.
    Throughout the policy, ``you'' and ``your'' refer to the named 
insured shown on the accepted application and ``we,'' ``us,'' and 
``our'' refer to the company. Unless the context indicates otherwise, 
use of the plural form of a word includes the singular and use of the 
singular form of the word includes the plural.
    Agreement to Insure: In return for the payment of the premium, and 
subject to all of the provisions of this policy, the company agrees 
with the insured to provide the insurance as stated in the policy. If a 
conflict exists among the policy provisions, the order of priority is 
as follows: (1) the Special Provisions; (2) the Crop Provisions; and 
(3) these Basic Provisions with (1) controlling (2), etc.

Basic Provisions

Terms and Conditions

1. Definitions
    Abandon. Failure to continue to care for the crop, providing care 
so insignificant as to provide no benefit to the crop, or failure to 
harvest in a timely manner, unless an insured cause of loss prevents 
you from properly caring for or harvesting the crop or causes damage to 
it to the extent that most producers of the crop on acreage with 
similar characteristics in the area would not normally further care for 
or harvest it.
    Acreage report. A report required by section 7 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 7 by which you are required to 
submit your acreage report.
    Act. The Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.).
    Actuarial documents. The material for the crop year that is 
available for public inspection in your agent's office, and which shows 
the coverage level percent, premium factors, types, practices, 
insurable acreage, and other related information regarding crop 
insurance in the county.
    Administrative fee. An amount you must pay for coverage for each 
crop year as specified in section 8.
    Agricultural commodity. All insurable crops and other fruit, 
vegetable or nut crops produced for human or animal consumption.
    Another use, notice of. The written notice required when you wish 
to put acreage to another use (see section 15).
    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 cancellation or termination of 
insurance coverage occurs for any reason, including but not limited to 
indebtedness, suspension, debarment, disqualification, cancellation by 
you or us, or violation of the controlled substance provisions of the 
Food Security Act of 1985, a new application must be filed for the 
crop. Insurance coverage will not be provided if you are ineligible 
under the contract or under any Federal statute or regulation.
    Approved yield. The yield determined in accordance with 7 CFR part 
400, subpart G.
    Assignment of indemnity. A transfer of policy rights, made on our 
form, and effective when approved by us. It is the arrangement whereby 
you assign your right to an indemnity payment to any party of your 
choice for the crop year.
    Base premium rate. The premium rate for the risk of a revenue loss.
    Cancellation date. The calendar date specified in the Crop 
Provisions on which coverage for the crop will automatically renew 
unless canceled in writing by either you or us, or terminated in 
accordance with the policy terms.
    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 15).
    Consent. Approval in writing by us allowing you to take a specific 
action.
    Contract. (See definition of ``policy'').
    Contract change date. The calendar date by which we make any policy 
changes available for inspection in the agent's office (see section 5).
    County. Any county, parish, or other political subdivision of a 
state shown on your accepted application, including 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 revenue, 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 12 of these Basic Provisions for 
specific provisions relating to prevented planting).
    Coverage level percent. The percent, expressed in decimals (.xxxx), 
determined by dividing the per-acre revenue guarantee (see section 1) 
by the expected per-acre revenue (see section 1) rounded to hundredths 
for enterprise or whole-farm units.
    Crop premium per acre. Your per acre revenue guarantee multiplied 
by a base rate.
    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, regardless of whether or not it is actually grown, and 
designated by the calendar year in which the insured crop is normally 
harvested.
    Damage. Injury, deterioration, or loss of revenue 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 15).
    Days. Calendar days.
    Deductible. The amount determined by subtracting the coverage level 
percent you choose from 100 percent.

[[Page 71428]]

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, 
administrative fees, and interest on those amounts 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 (see Special Provisions and section 14).
    End of insurance period, date of. The date upon which your crop 
insurance coverage ceases for the crop year (see Crop Provisions and 
section 12).
    Expected per-acre revenue. The approved yield times the projected 
harvest price.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
government corporation within USDA.
    Field. All acreage of tillable land within a natural or artificial 
boundary (e.g., roads, waterways, fences, etc.).
    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 per-acre revenue guarantee.
    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 per-acre revenue 
guarantee, 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 for which coverage is available 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 
per-acre revenue guarantee on the irrigated acreage planted to the 
insured crop.
    Late planted. Acreage initially 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 Crop Provisions 
or 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 15).
    MPCI. Multiple peril crop insurance program, a program of insurance 
offered under the Act and implemented in 7 CFR chapter IV.
    Negligence. The failure to use such care as a reasonably prudent 
and careful person would use under similar circumstances.
    Per-acre revenue guarantee. The coverage level percent times your 
approved yield, times the projected harvest price. If you choose the 
fall harvest price option, the per-acre revenue guarantee equals the 
coverage level percent, times the approved yield, times the greater of 
the projected harvest price or the fall harvest price. For basic and 
optional units, the per-acre revenue guarantee may vary by unit. For an 
enterprise unit, the per-acre revenue guarantee will be the same for 
all insured acres of the crop in the county. For the whole farm unit, 
the per-acre revenue guarantee will be the same for all insured acres 
in the county.
    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 has 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 
documents for the insured crop, 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 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. The premium 
billing date is contained in the Special Provisions.
    Premium calculator. A computer program that determines your per-
acre premium based on your approved yields, per-acre revenue guarantee, 
coverage level percent, projected harvest price, unit options, and 
other factors.
    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. You may also be eligible 
for a prevented planting payment if you failed to plant the insured 
crop with the proper equipment within the late planting period. You 
must have been prevented from planting the insured crop due to an 
insured cause of loss that is general in the surrounding area and that 
prevents other producers from planting acreage with similar 
characteristics.
    Production report. A written record showing your annual production 
and used by us to determine your yield for insurance purposes (see 
section 4). The report contains yield information for previous years, 
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 of the damaged or destroyed insured crop 
and then

[[Page 71429]]

replacing the seed of the same crop in the insured acreage with the 
expectation of producing at least the yield used to determine the per-
acre revenue guarantee.
    Representative sample. Portions of the insured crop that must 
remain in the field for examination and review by our loss adjuster 
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.
    Revenue guarantee. The per-acre revenue guarantee times the number 
of insurable acres in the unit, and times your respective share (see 
definition of per-acre revenue guarantee and section 2 of the Crop 
Provisions).
    Sales closing date. A date contained in the Special Provisions by 
which an application must be filed. The last date by which you may 
change your crop insurance coverage for a 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.
    Substantial beneficial interest. An interest held by any person of 
at least 10 percent in the applicant or insured.
    Summary of coverage. Our statement to you, based upon your acreage 
report, specifying the insured crop and the revenue guarantee provided 
by unit.
    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'').
    Termination date. The calendar date contained in the Crop 
Provisions upon which your insurance ceases to be in effect because of 
nonpayment of any amount due us under the policy, including premium.
    Timely planted. Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the 
county.
    Unit.
    (a) Basic unit--A basic unit established in accordance with section 
2(a).
    (b) Optional unit--A unit established from basic units in 
accordance with section 2(b).
    (c) Enterprise unit--A unit established from basic units or 
optional units in accordance with section 2(c).
    (d) Whole-farm unit--A unit established from enterprise units in 
accordance with section 2(d).
    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).
2. Unit Structure
    (a) 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 a 100 percent 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 this section and in the 
applicable Crop Provisions.
    (b) Optional unit--Unless limited by the Crop Provisions or Special 
Provisions, a basic unit as defined in section 2(a) of these Basic 
Provisions may be divided into optional units if, for each optional 
unit:
    (1) You meet the following:
    (i) You must plant the crop in a manner that results in a clear and 
discernible break in the planting pattern at the boundaries of each 
optional unit;
    (ii) All optional units you select for the crop year are identified 
on the acreage report for that crop year (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);
    (iii) You have records, that are acceptable to us, of planted 
acreage and the production from each optional unit for at least the 
last crop year used to determine your revenue guarantee; and
    (iv) 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 is kept separate until loss adjustment is completed by 
us.
    (2) Each optional unit must also meet one or more of the following, 
unless otherwise specified in the Crop Provisions:
    (i) 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 
such as Spanish grants, as the equivalents of sections for unit 
purposes. In areas which have not been surveyed using sections, section 
equivalents or in areas where boundaries are not readily discernible, 
each optional unit must be located in a separate FSA farm serial 
number; and
    (ii) 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. 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 your revenue guarantee is based, except 
the corners of a field in which a center-pivot irrigation system is 
used may be considered as irrigated acreage 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. In this case, production from 
both practices will be used to determine your approved yield.
    (3) 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.
    (c) Enterprise unit--All insurable acreage of the insured crop in 
the county in which you have a share on the date coverage begins for 
the crop year. An enterprise unit must consist of:
    (1) One or more basic units of the same insured crop that are 
located in two or more separate sections, section

[[Page 71430]]

equivalents, or FSA farm serial number; or
    (2) Two or more optional units of the same insured crop established 
by separate sections, section equivalents, or FSA farm serial numbers.
    (d) Whole-farm unit--All insurable acreage of the insurable crops 
in the county in which you have a share on the date coverage begins for 
each crop for the crop year. This unit is established from enterprise 
units as defined in section 2(c). The insurable acreage must qualify 
for at least two enterprise units under this section, and at least 10 
percent of the total liability must be in each crop.
    (e) Exclusivity Between Units--If you select whole-farm unit 
coverage, you cannot select any other unit structure. However, you may 
select an enterprise unit for one crop and basic or optional unit 
coverage for other crops.
    (f) Selection of unit structure--You may elect an enterprise unit 
or a whole-farm unit subject to the following:
    (1) You must make such election by the sales closing date for the 
insured crops and report such unit structure to us in writing. Your 
unit selection will remain in effect from year to year unless you 
notify us in writing by the sales closing date for the crop year for 
which you wish to change this election. These units may not be further 
divided. If you select and qualify for an enterprise or whole-farm 
unit, you will qualify for a premium discount. If you do not qualify 
for enterprise or whole-farm units when the acreage is reported, we 
will assign the basic unit structure.
    (2) For a whole-farm unit:
    (i) You must report on your acreage report the acreage for each 
optional or basic unit for each crop produced in the county that 
comprises the whole-farm unit; and
    (ii) Although you may insure all of your crops under a whole-farm 
unit, you will be required to pay separate applicable administrative 
fees for each crop included in the whole-farm unit.
    (3) All applicable unit structures must be stated on the acreage 
report for each crop year.
3. 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) Your application for insurance must contain all the information 
required by us to insure the crop. Applications that do not contain all 
social security numbers and employer identification numbers, as 
applicable (except as stated herein) coverage level percent, 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 
refuses to provide a social security number or employer identification 
number, the amount of coverage available under the policy will be 
reduced proportionately by that person's share of the crop.
    (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) If any amount due, including administrative fees or premium, is 
not paid or an acceptable arrangement for payment is not made on or 
before the termination date for the crop on which the amount is due, 
you will be determined to be ineligible to participate in any crop 
insurance program authorized under the Act in accordance with 7 CFR 
part 400, subpart U.
    (1) For a policy with unpaid administrative fees or premium, the 
policy will terminate effective on the termination date immediately 
subsequent to the billing date for the crop year;
    (2) For a policy with other amounts due, the policy will terminate 
effective on the termination date immediately after the account becomes 
delinquent;
    (3) Ineligibility will be effective as of the date that the policy 
was terminated for the crop for which you failed to pay an amount owed 
and for all other insured crops with coincidental termination dates;
    (4) All other policies that are issued by us under the authority of 
the Act will also terminate as of the next termination date contained 
in the applicable policy;
    (5) If you are ineligible, you may not obtain any crop insurance 
under the Act until payment is made, you execute an agreement to repay 
the debt and make the payments in accordance with the agreement, or you 
file a petition to have your debts discharged in bankruptcy;
    (6) If you execute an agreement to repay the debt and fail to 
timely make any scheduled payment, you will be ineligible for crop 
insurance effective on the date the payment was due until the debt is 
paid in full or you file a petition to discharge the debt in bankruptcy 
and subsequently obtain discharge of the amounts due. Dismissal of the 
bankruptcy petition before discharge will void all policies in effect 
retroactive to the date you were originally determined ineligible to 
participate and all premiums paid will be refunded;
    (7) Once the policy is terminated, the policy cannot be reinstated 
for the current crop year unless the termination was in error;
    (8) After you again become eligible for crop insurance, if you want 
to obtain coverage for your crops, you must reapply on or before the 
sales closing date for the crop (Since applications for crop insurance 
cannot be accepted after the sales closing date, if you make any 
payments after the sales closing date, you cannot apply for insurance 
until the next crop year); and
    (9) If we deduct the amount due us from an indemnity, the date of 
payment for the purpose of this section will be the date you sign the 
properly executed claim for indemnity.
    (10) For example, if crop A, with a termination date of October 31, 
1998, and crop B, with a termination date of March 15, 1999, are 
insured and you do not pay the premium for crop A by the termination 
date, you are ineligible for crop insurance as of October 31, 1998, and 
crop A's policy is terminated on that date. Crop B's policy is 
terminated as of March 15, 1999. If you enter an agreement to repay the 
debt on April 25, 1999, you can apply for insurance for crop A by the 
October 31, 1999, sales closing date and crop B by March 15, 2000, 
sales closing date. If you fail to make a scheduled payment on November 
1, 1999, you will be ineligible for crop insurance effective on 
November 1, 1999, and you will not be eligible unless the debt is paid 
in full or you file a petition to have the debt discharged in 
bankruptcy and subsequently receive discharge.
    (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. The premium will be deducted from the 
indemnity or collected from the estate. Death of a partner in a 
partnership will dissolve the partnership unless the partnership

[[Page 71431]]

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) We may terminate your policy if no premium is earned for 3 
consecutive years.
    (h) The cancellation and termination dates are contained in the 
Crop Provisions.
    (i) When obtaining coverage, you must provide information regarding 
crop insurance coverage on any crop previously obtained from an 
approved insurance provider, including the date such insurance was 
obtained and the amount of the administrative fee.
    (j) You are not eligible to participate in the Revenue Assurance 
program if you have elected the MPCI Catastrophic Risk Protection 
Endorsement except in the following instance: If you execute a High-
Risk Land Exclusion Option for a Revenue Assurance Policy, you may 
elect to insure the ``high-risk land'' under an MPCI Catastrophic Risk 
Protection Endorsement provided that the Catastrophic Risk Protection 
Endorsement is obtained from us. If both policies are in force, the 
acreage of the crop covered under the Revenue Assurance policy and the 
acreage covered under an MPCI Catastrophic Risk Protection Endorsement 
will be considered as separate crops for insurance purposes, including 
the payment of administrative fees.
4. Insurance Coverages
    (a) Your revenue guarantee, coverage level percent, approved 
yields, per-acre revenue guarantee, and projected harvest price will be 
shown on your summary of coverage.
    (b) You must select a coverage level percent by the sales closing 
date. The maximum allowable coverage level percent is 75 (.7500 decimal 
format) and the minimum allowable is 65 (.6500 decimal format) for 
basic, optional and enterprise units. The maximum allowable coverage 
level percent is 80 (.8000 decimal format) and the minimum allowable is 
65 (.6500 decimal format) for whole-farm units.
    (c) You may only select one coverage level percent that is 
applicable for all insurable acreage of the crop. You may change your 
coverage level percent for the following crop year by giving written 
notice to us not later than the sales closing date for the insured 
crop. If you do not select a new crop coverage level percent on or 
before the sales closing date, we will assign the previous year's 
coverage level percent or the nearest coverage level percent available. 
(For example: If you selected a 65 percent coverage level for the 
previous crop year and you do not select a new coverage level percent 
for the current crop year, we will assign the 65 percent coverage level 
for the current crop year if it is still available.)
    (d) This policy is an alternative to the MPCI program and satisfies 
the requirements of section 508(b)(7) of the Act.
    (e) 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 unless otherwise stated in the Special Provisions:
    (1) 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 approved yield for the 
purpose of determining your revenue guarantee for the current crop 
year;
    (2) If you have filed a claim for any crop year, the documents 
signed by you which state the amount of production used to complete the 
claim for indemnity will be the production report for that year unless 
otherwise specified by FCIC;
    (3) Production and acreage for the prior crop year must be reported 
for each proposed optional unit by the production reporting date. If 
you do not provide the information stated above, the optional units 
will be combined into the basic unit.
    (f) We may revise your revenue guarantee for any unit, and revise 
any indemnity paid based on that revenue guarantee, if we find that 
your production report under paragraph (e) 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, acreage, or other 
material information.
    (g) Any person may sign any document relative to crop insurance 
coverage on behalf of any other person covered by such a policy, 
provided that the person has a properly executed power of attorney or 
such other legally sufficient document authorizing such person to sign.
5. Contract Changes
    (a) We may change the terms of your coverage under this policy from 
year to year.
    (b) Any changes in policy provisions, prices, available coverage 
level percents, 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. You may view the documents or request 
copies from your crop insurance agent.
    (c) You will be notified, in writing, of changes to the Basic 
Provisions, Crop Provisions, and Special Provisions 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.
6. Liberalization
    If we adopt any revisions that broaden the coverage under this 
policy subsequent to the contract change date without additional 
premium, the broadened coverage will apply.
7. 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 with us that have 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 
acreage reporting date for such crops; and
    (2) If you insure multiple crops with us that have 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 
acreage reporting date for such crops.
    (3) Notwithstanding the provisions in sections 7(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:
    (A) The acreage reporting date contained in the Special Provisions;
    (B) The date determined in accordance with sections 7(a)(1) or (2); 
or (C) Five days after the end of the late planting period for the 
insured crop, if applicable.
    (b) If you do not have a share in an insured crop in the county for 
the crop year, you must submit an acreage report on or before the 
acreage reporting date, so indicating.

[[Page 71432]]

    (c) Your acreage report must include the following information, if 
applicable:
    (1) All acreage of the crop in the county (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.
    (d) Because incorrect reporting on the acreage report may have the 
effect of changing your premium and any indemnity that 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 we determine to have existed, subject to the provisions 
contained in section 7(g).
    (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, for loss purposes only, as production to count to the 
reported units in proportion to the liability on each reported unit. 
However, such production will not be allocated to prevented planting 
acreage or otherwise affect any prevented planting payment.
    (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 liability than the actual liability determined, the 
revenue guarantee on the unit will be reduced to an amount that is 
consistent with the reported 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) A higher liability than the actual liability determined, the 
information contained in the acreage report will be revised to be 
consistent with the correct information. If we discover that you have 
incorrectly reported any information on the acreage report for any crop 
year, you may be required to provide documentation in subsequent crop 
years that substantiates 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.
8. Annual Premium and Administrative Fees
    (a) The annual premium is earned and payable at the time coverage 
begins. You will be billed for premium due not earlier than the premium 
billing date specified in the Special Provisions. The premium due, plus 
any accrued interest, will be considered delinquent if it 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 prevented planting 
payment or indemnity due you for any crop insured with us under the 
authority of the Act.
    (c) Your annual premium amount is determined by unit by multiplying 
the crop premium per acre, times the insured crop acreage, times any 
premium adjustment factor that may apply, times your respective share 
at the time coverage begins, and less producer premium subsidy.
    (d) The producer premium subsidy for a unit equals the crop premium 
per acre at the 65 percent coverage level, times the insured crop 
acreage, times 0.417, times your respective share. The producer premium 
subsidy cannot exceed that available had you purchased a comparable 
MPCI policy.
    (e) In addition to the premium charged:
    (1) You must pay an administrative fee of $20 per crop for each 
crop year in which crop insurance coverage remains in effect;
    (2) The administrative fee must be paid no later than the time that 
premium is due; and
    (3) Payment of an administrative fee will not be required if you 
file a bona fide zero acreage report on or before the acreage reporting 
date for the crop. If you falsely file a zero acreage report, you may 
be subject to criminal and administrative sanctions.
    (4) The administrative fee is not subject to any limits, and may 
not be waived.
    (5) Failure to pay the administrative fees when due may make you 
ineligible for certain other USDA benefits.
9. Insured Crop
    (a) The insured crop will be that shown on your accepted 
application and as specified in the Crop Provisions or Special 
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 or revenue guarantees 
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) That is planted for the development or production of hybrid 
seed or for experimental purposes, unless permitted by the Crop 
Provisions; or
    (6) That is used solely for wildlife protection or management. If 
the lease states that specific acreage must remain unharvested, only 
that acreage is uninsurable. If the lease specifies that a percentage 
of the crop must be left unharvested, your share will be reduced by 
such percentage.
10. Insurable Acreage
    (a) Acreage planted to the insured crop in which you have a share 
is insurable except acreage:
    (1) That has not been planted and harvested within one of the 3 
previous crop years, unless:
    (i) Such acreage was not planted:
    (A) To comply with any other USDA program;
    (B) Because of crop rotation, (e.g., corn, soybean, alfalfa; and 
the alfalfa remained for 4 years before the acreage was planted to corn 
again);
    (C) Due to an insurable cause of loss that prevented planting; or
    (D) Because a perennial tree, vine, or bush crop was grown on the 
acreage.
    (ii) Such acreage was planted but was not harvested due to an 
insurable cause of loss; or
    (iii) The Crop Provisions specifically allow insurance for such 
acreage.
    (2) That has been strip-mined, unless an agricultural commodity 
other than a cover, hay, or forage crop (except corn silage), has been 
harvested from the acreage for at least five crop years after the 
strip-mined land was reclaimed;
    (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) That is interplanted, unless allowed by the Crop Provisions;
    (5) That is otherwise restricted by the Crop Provisions or Special 
Provisions; or

[[Page 71433]]

    (6) That is planted in any manner other than as specified in the 
policy provisions for the crop.
    (b) If insurance is provided for an irrigated practice, you must 
report as irrigated only that acreage for which you have adequate 
facilities, and adequate water, or the reasonable expectation of 
receiving adequate water at the time coverage begins, to carry out a 
good irrigation practice. If you knew or had reason to know that your 
water may be reduced before coverage begins, no reasonable expectation 
exists.
    (c) Notwithstanding the provisions in section 9(b)(1), 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 that we will insure to 
the amount allowed under any acreage limitation program established by 
the USDA if we notify you of that restriction prior to the sales 
closing date.
11. Share Insured
    (a) Insurance will attach only to the share of the person 
completing the application and will not extend to any other person 
having a share in the crop unless the application clearly states that:
    (1) The insurance is requested for an entity such as a partnership 
or a joint venture; or
    (2) You as landlord will insure your tenant's share, or you as 
tenant will insure your landlord's share. In this event, you must 
provide evidence of the other party's approval (lease, power of 
attorney, etc.). Such evidence will be retained by us. You also must 
clearly set forth the percentage shares of each person on the acreage 
report.
    (b) 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.
    (c) Acreage rented for a percentage of the crop, or 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.
    (d) Acreage rented for cash, or a lease containing provisions for 
Either a minimum payment Or a crop share (such as a 50/50 share or 
$100.00 per acre, whichever is greater), will be considered a cash 
lease.
12. Insurance Period
    (a) Except for prevented planting coverage (see section 18), 
coverage begins on each unit or part of a unit at the later of:
    (1) The date we accept your application (For the purposes of this 
paragraph, the date of acceptance is the date that you submit a 
properly executed application in accordance with section 3);
    (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;
    (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.
13. Causes of Loss
    The insurance provided is against only unavoidable loss of revenue 
directly caused by specific causes of loss contained in the Crop 
Provisions. All other causes of loss, including but not limited to the 
following, are Not covered:
    (a) Negligence, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (b) 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.
14. 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 or within the late planting period if a late planting 
period is applicable). The 20 acres or 20 percent requirement is to be 
applied for each crop in a whole-farm unit.
    (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 earliest planting 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.
15. 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 (we may accept a notice of loss 
provided later than 72 hours after your initial discovery if we still 
have the ability to accurately adjust the loss);
    (3) Leave representative samples intact for each field of the 
damaged unit as may be required by the Crop Provisions;
    (4) Give us notice of your expected revenue loss not later than 45 
days after the date the fall harvest price is released; and
    (5) 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 that 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 
consent for any of the actions in sections 15(b)(1) through (4) 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.

[[Page 71434]]

    (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, that any loss of production or value 
occurred during the insurance period, and that the loss of production 
or value was directly caused by one or more of the insured causes 
specified in the Crop Provisions.
    (f) All notices required in this section 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;
    (2) Completion of arbitration or appeal proceedings; or
    (3) The entry of a final judgment by a court of competent 
jurisdiction.
    (b) In the event we are unable to pay your loss within 30 days, we 
will give you notice of our intentions within the 30-day period.
    (c) We may defer the adjustment of a loss until the amount of loss 
can be accurately determined. We will not pay for additional damage 
resulting from your failure to provide sufficient care for the crop 
during the deferral period.
    (d) We recognize and apply the loss adjustment procedures 
established or approved by FCIC.
16. 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) The amount of an indemnity that may be determined under the 
applicable provisions of your crop policy may be reduced by an amount, 
determined in accordance with the Crop Provisions or Special 
Provisions, to reflect out-of-pocket expenses that were not incurred by 
you as a result of not planting, caring for, or harvesting the crop. 
Indemnities paid for acreage prevented from being planted will be based 
on a reduced revenue guarantee as provided for in the crop policy and 
will not be further reduced to reflect expenses not incurred.
    (d) Appraised production will be used to calculate your claim if 
you will not be harvesting the acreage. To determine your indemnity 
based on appraised production, you must agree to notify us if you 
harvest the crop and advise us of the production. If the acreage will 
be harvested, harvested production will be used to determine any 
indemnity due, unless otherwise specified in the policy.
17. 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 per-acre revenue guarantee 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) Acreage planted after the late planting period (or after the 
final planting date for crops that do not have a late planting period) 
may be insured as follows:
    (1) The per-acre revenue guarantee for each acre planted as 
specified in this subsection will be determined by multiplying the per-
acre revenue guarantee that is provided for acreage of the insured crop 
that is timely planted by the prevented planting coverage level percent 
you elected, or that is contained in the Crop Provisions if you did not 
elect a prevented planting coverage level percentage;
    (2) Planting on such acreage must have been prevented by the final 
planting date (or during the late planting period, if applicable) by an 
insurable cause occurring within the insurance period for prevented 
planting coverage; and
    (3) All production from acreage as specified in this section will 
be included as production to count for the unit.
    (c) The premium amount for insurable acreage specified in this 
section 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 such acreage exceeds the liability, coverage for those 
acres will not be provided (no premium will be due and no indemnity 
will be paid).
    (d) Any acreage on which an insured cause of loss is a material 
factor in preventing completion of planting, as specified in the 
definition of ``planted acreage'' (e.g., seed is broadcast on the soil 
surface but cannot be incorporated) will be considered as acreage 
planted after the final planting date and the per-acre revenue 
guarantee will be calculated in accordance with section 17(b)(1).
18. Prevented Planting
    (a) Unless limited by the policy provisions, a prevented planting 
payment may be made to you for eligible acreage 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;
    (2) You include any acreage of the insured crop that was prevented 
from being planted on your acreage report; and
    (3) You did not plant the insured crop during or after the late 
planting period. If such acreage was planted to the insured crop during 
or after the late planting period, it is covered under the late 
planting provisions.
    (b) The actuarial documents may contain additional levels of 
prevented planting coverage that you may purchase for the insured crop:
    (1) Such purchase must be made on or before the sales closing date;
    (2) If you do not purchase one of those additional levels by the 
sales closing date, you will receive the prevented planting coverage 
specified in the Crop Provisions;
    (3) If you have an MPCI Catastrophic Risk Protection Endorsement 
for any acreage of ``high risk land'' the additional levels of 
prevented planting coverage will not be available for that acreage; and
    (4) You may not increase your elected or assigned preventing 
planting coverage level for any crop year if a cause of loss that will 
or could prevent planting is evident prior to the time you wish to 
change your prevented planting coverage level.
    (c) The premium amount for acreage that is prevented from being 
planted 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 that is prevented from being planted exceeds the 
liability on such acreage,

[[Page 71435]]

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 be 
considered to be an insurable cause of loss for the purposes of 
prevented planting only if, on the final planting date (or within the 
late planting period if you elect to try to plant the crop):
    (1) For non-irrigated acreage, the area that is prevented from 
being planted has insufficient soil moisture for germination of seed 
and progress toward crop maturity due to a prolonged period of dry 
weather. Prolonged precipitation deficiencies must be verifiable using 
information collected by sources whose business it is to record and 
study the weather, including, but not limited to, local weather 
reporting stations of the National Weather Service; 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 total number of acres eligible for prevented planting 
coverage for all crops cannot exceed the number of acres of cropland in 
your farming operation for the crop year, unless you are eligible for 
prevented planting coverage on double-cropped acreage in accordance 
with section 18(f)(4) or (5). The eligible acres for each insured crop 
will be determined in accordance with the following table.

------------------------------------------------------------------------
                                                     Eligible acres if,
                               Eligible acres if,   in any of the 4 most
                              in any of the 4 most   recent crop years,
                               recent crop years,   you have not planted
                              you have planted any     any crop in the
                               crop in the county     county for which
        Type of crop           for which prevented   prevented planting
                               planting insurance       insurance was
                                was available or      available or have
                                 have received a       not received a
                               prevented planting    prevented planting
                               insurance guarantee   insurance guarantee
------------------------------------------------------------------------
(i) The crop is not required  (A) The maximum       (B) The number of
 to be contracted with a       number of acres       acres specified on
 processor to be insured.      certified for APH     your intended
                               purposes or           acreage report
                               reported for          which is submitted
                               insurance for the     to us by the sales
                               crop in any one of    closing date for
                               the 4 most recent     all crops you
                               crop years (not       insure for the crop
                               including reported    year and that is
                               prevented planting    accepted by us. The
                               acreage that was      total number of
                               planted to a          acres listed may
                               substitute crop       not exceed the
                               other than an         number of acres of
                               approved cover        cropland in your
                               crop). The number     farming operation
                               of acres determined   at the time you
                               above for a crop      submit the intended
                               may be increased by   acreage report. The
                               multiplying it by     number of acres
                               the ratio of the      determined above
                               total cropland        for a crop may only
                               acres that you are    be increased by
                               farming this year     multiplying it by
                               (if greater) to the   the ratio of the
                               total cropland        total cropland
                               acres that you        acres that you are
                               farmed in the         farming this year
                               previous year,        (if greater) to the
                               provided that you     number of acres
                               submit proof to us    listed on your
                               that for the          intended acreage
                               current crop year     report, if you meet
                               you have purchased    the conditions
                               or leased             stated in section
                               additional land or    18(e)(1)(i)(A).
                               that acreage will
                               be released from
                               any USDA program
                               which prohibits
                               harvest of a crop.
                               Such acreage must
                               have been
                               purchased, leased,
                               or released from
                               the USDA program,
                               in time to plant it
                               for the current
                               crop year using
                               good farming
                               practices. No cause
                               of loss that will
                               or could prevent
                               planting may be
                               evident at the time
                               the acreage is
                               purchased, leased,
                               or released from
                               the USDA program.
(ii) The crop must be         (A) The number of     (B) The number of
 contracted with a processor   acres of the crop     acres of the crop
 to be insured.                specified in the      as determined in
                               processor contract,   section
                               if the contract       18(e)(1)(ii)(A).
                               specifies a number
                               of acres contracted
                               for the crop year;
                               or the result of
                               dividing the
                               quantity of
                               production stated
                               in the processor
                               contract by your
                               approved yield, if
                               the processor
                               contract specifies
                               a quantity of
                               production that
                               will be accepted.
                               (For the purposes
                               of establishing the
                               number of prevented
                               planting acres, any
                               reductions applied
                               to the transitional
                               yield for failure
                               to certify acreage
                               and production for
                               four prior years
                               will not be used.).
------------------------------------------------------------------------

    (2) Any eligible acreage determined in accordance with the table 
contained in section 18(e)(1) will be reduced by subtracting the number 
of acres of the crop (insured and uninsured) that are timely and late 
planted, including acreage specified in section 17(b).
    (f) Regardless of the number of eligible acres determined in 
section 18(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. Any prevented 
planting acreage within a field that contains planted acreage will be 
considered to be acreage of the same crop, type, and practice that is 
planted in the field, unless the acreage that was prevented from being 
planted constitutes at least 20 acres or 20 percent of the total 
insurable acreage in the field and you produced both crops, crop types, 
or followed both practices in the same field in the same crop year 
within any of the 4 most recent crop years;
    (2) For which the actuarial documents do not designate a 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 (excluding share 
arrangements), unless you have coverage greater than 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 
harvested, hayed or grazed on the same acreage in the same crop year 
(other than a cover crop which may be

[[Page 71436]]

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. (If one of the crops 
being double-cropped is not insurable, other verifiable records of it 
being planted may be used);
    (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). 
(If you state that you will not be cash renting the acreage and claim a 
prevented planting payment on the acreage, you could be subject to 
civil and criminal sanctions if you cash rent the acreage and do not 
return the prevented planting payment for it);
    (7) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes;
    (8) That exceeds the number of acres eligible for a prevented 
planting payment;
    (9) That exceeds the number of eligible acres physically available 
for planting;
    (10) 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 per-acre revenue guarantee. 
(Evidence that you have previously planted the crop on the unit will be 
considered adequate proof unless your planting practices or rotational 
requirements show that the acreage would have remained fallow or been 
planted to another crop);
    (11) Based on an irrigated practice per-acre revenue guarantee 
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. Acreage with an irrigated practice 
per-acre revenue guarantee will be limited to the number of acres 
allowed for that practice under sections 18(e) and (f); or
    (12) Based on a crop type that you did not plant, or did not 
receive a prevented planting insurance guarantee for, in at least one 
of the four most recent crop years. Types for which separate prices or 
per-acre revenue guarantees are available must be included in your APH 
database in at least one of the four most recent crop years, or crops 
that do not require yield certification (crops for which the insurance 
guarantee is not based on APH) must be reported on your acreage report 
in at least one of the four most recent crop years except as allowed in 
section 18(e)(1)(i)(B). We will limit prevented planting payments based 
on a specific crop type to the number of acres allowed for that crop 
type as specified in sections 18(e) and (f).
    (g) If you purchased a Revenue Assurance policy for a crop, and you 
executed a High Risk Land Exclusion Option that separately insures 
acreage which has been designated as ``high-risk'' land by FCIC under a 
Catastrophic Risk Protection Endorsement for that crop, the maximum 
number of acres eligible for a prevented planting payment will be 
limited for each policy as specified in sections 18 (e) and (f).
    (h) If you are prevented from planting a crop for which you do not 
have an adequate base of eligible prevented planting acreage, as 
determined in accordance with section 18(e)(1), your prevented planting 
per-acre revenue guarantee, premium, and prevented planting payment 
will be based on the crops insured for the current crop year, for which 
you have remaining eligible prevented planting acreage. The crops used 
for this purpose will be those that result in a prevented planting 
payment most similar to the prevented planting payment that would have 
been made for the crop that was prevented from being planted.
    (1) For example, assume you were prevented from planting 200 acres 
of corn and have 100 acres eligible for a corn prevented planting 
guarantee that would result in a payment of $40 per acre. You also had 
50 acres of potato eligibility that would result in a $100 per acre 
payment, 90 acres of grain sorghum eligibility that would result in a 
$30 per acre payment, and 100 acres of soybean eligibility that would 
result in a $25 per acre payment. Your prevented planting coverage for 
the 200 acres would be based on 100 acres of corn ($40 per acre), 90 
acres of grain sorghum ($30 per acre), and 10 acres of soybeans ($25 
per acre).
    (2) Prevented planting coverage will be allowed as specified in 
this section (18(h)) only if the crop that was prevented from being 
planted meets all policy provisions, except for having an adequate base 
of eligible prevented planting acreage. Payment may be made based on 
crops other than those that were prevented from being planted even 
though other policy provisions, including but not limited to, processor 
contract and rotation requirements, have not been met for the crop on 
which payment is being based.
    (i) The prevented planting payment for any eligible acreage within 
a basic or optional unit will be determined by:
    (1) Multiplying the per-acre revenue guarantee for timely planted 
acreage of the insured crop 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 18(i)(1) by the number of 
eligible prevented planting acres in the unit; and
    (3) Multiplying the result of section 18(i)(2) by your share.
    (j) The prevented planting payment for any eligible acreage within 
an enterprise unit will be determined by:
    (1) Multiplying the per-acre revenue guarantee within the 
enterprise unit, for timely planted acreage of the insured crop 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 18(j)(1) by the number of 
eligible prevented planting acres in the enterprise unit;
    (3) Multiplying the result of section 18(j)(2) by your share; and
    (4) Totaling the results from section 18(j)(3).
    (k) The prevented planting payment for any eligible acreage within 
a whole-farm unit will be determined by:
    (1) Multiplying the per-acre revenue guarantee for the whole-farm 
unit, for timely planted acreage of the insured crop 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 18(k)(1) by the number of 
eligible prevented planting acres in the whole-farm unit;
    (3) Multiplying the result of section 18(k)(2) by your share; and
    Totaling the results from section 18(k)(3).
19. Crops As Payment
    You must not abandon any crop to us. We will not accept any crop as 
compensation for payments due us.
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

[[Page 71437]]

appeal provisions published at 7 CFR part 11.
    (b) No award determined by arbitration or appeal can exceed the 
amount of liability established or which should have been established 
under the policy.
21. Access to Insured Crop and Records, 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 provide upon our request, 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 will, at our option, result in:
    (1) Cancellation of the policy;
    (2) Assignment of production to the units by us;
    (3) Combination of the optional 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.
    (e) This policy will be considered a continuation of any prior crop 
insurance policy issued under the authority of the Act for actual 
production history purposes under 7 CFR part 400, subpart G.
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 sanctions authorized under 
this policy, the Act, or any other applicable statute. 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, 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 such 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.
    (c) For the purpose of section 22(b), the amount of loss from fire 
will be the reduction in revenue of the insured crop on the unit 
involved determined pursuant to this policy.
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 during your 
period of ineligibility, 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.
24. Amounts Due Us
    (a) Interest will accrue at the rate of 1.25 percent simple 
interest per calendar month, or any portion thereof, on any unpaid 
amount due us. For the purpose of premium amounts due us, the interest 
will start to accrue 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 to 
accrue 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 section 24(d)) if any, second, to the reduction of 
accrued interest, and then to the reduction of 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.
    (e) Amounts owed to us by you may be collected in part through 
administrative offset from payments you receive from United States 
government agencies in accordance with 31 U.S.C. chapter 37.
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

[[Page 71438]]

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) If you have falsely or fraudulently concealed the fact that you 
are ineligible to receive benefits under the Act or if you or anyone 
assisting you has intentionally concealed or misrepresented any 
material fact relating to this policy:
    (1) This policy will be voided; and
    (2) You may be subject to remedial sanctions in accordance with 7 
CFR part 400, subpart R.
    (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 for the crop year in which the voidance was 
effective.
    (d) Voidance will be effective on 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.
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, if the transferee is eligible for 
crop insurance. We will not be liable for any more than the liability 
determined in accordance with your policy that existed before the 
transfer occurred. The transfer of coverage rights must be on our form 
and will not be effective until approved by us in writing. Both you and 
the transferee are jointly and severally liable for the payment of the 
premium and administrative fees. The transferee has all rights and 
responsibilities under this policy consistent with the transferee's 
interest.
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 honor the terms of the 
assignment only if we can accurately determine the amount of the claim. 
However, no action will lie against us for failure to do so.
30. Subrogation (Recovery of Loss From a Third Party)
    Since 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. 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.
32. Notices
    (a) 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.
    (b) 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.
33. Multiple Benefits
    (a) If you are eligible to receive an indemnity under an additional 
coverage plan of insurance and are also eligible to receive benefits 
for the same loss under any other USDA program, you may receive 
benefits under both programs, unless specifically limited by the crop 
insurance contract or by law.
    (b) The total amount received from all such sources may not exceed 
the amount of your actual loss. The total amount of the actual loss is 
the difference between the fair market value of the insured commodity 
before and after the loss, based on your production records and the 
highest price election or amount of insurance available for the crop.
    (c) FSA will determine and pay the additional amount due you for 
any applicable USDA program, after first considering the amount of any 
crop insurance indemnity.
    (d) Farm ownership and operating loans may be obtained from USDA in 
addition to any crop insurance indemnities.

Revenue Assurance

Corn and Soybean Crop Provisions

    This is a pilot risk management program. This risk management tool 
will be reinsured under the authority provided by the Federal Crop 
Insurance Act as amended. If a conflict exists among the policy 
provisions, the order of priority is as follows: (1) the Special 
Provisions; (2) these Crop Provisions; and (3) the Basic Provisions 
with (1) controlling (2), etc.
1. Definitions
    CBOT. Chicago Board of Trade.
    Fall harvest price. The price used to value production to count. 
For corn, the fall harvest price is the simple average of the final 
daily settlement prices in November for the CBOT December corn futures 
contract. For soybeans, the fall harvest price is the simple average of 
the final daily settlement prices in October for the CBOT November 
soybean futures contract. These prices will be released November 5 for 
soybeans and December 5 for corn.
    Fall harvest price option. A coverage option that allows you to use 
the greater of the projected harvest price or the fall harvest price to 
determine your per-acre revenue guarantee. For basic, optional, and 
enterprise units, this option applies to all insurable acres of a crop 
in the county. For the whole-farm unit, this option will apply to all 
insurable acres of the applicable crops in the county. This option must 
be selected by the sales closing date and is continuous unless canceled 
by the crop sales closing date.
    Harvest. Combining, threshing, or picking the insured crop for 
grain.
    Local market price.--The cash grain price per bushel for U.S. No. 2 
yellow corn or U.S. No. 1 soybeans, offered by buyers in the area in 
which you normally market the insured crop. The local market price will 
reflect the maximum limits of quality deficiencies allowable for the 
U.S. No. 2 grade for yellow corn or U.S. No. 1 grade for

[[Page 71439]]

soybeans. Factors not associated with grading under the Official United 
States Standards for Grain, including but not limited to protein and 
oil, will not be considered.
    Planted acreage. In addition to the definition contained in the 
Basic Provisions, corn and soybeans 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 or 
actuarial documents.
    Prevented planting guarantee. The prevented planting guarantee for 
such acreage will be the selected percentage of the per-acre revenue 
guarantee for timely planted acres.
    Projected harvest price. The price used to determine the expected 
per-acre revenue. For corn, the projected harvest price is the simple 
average of the final daily settlement prices in February for the CBOT 
December corn futures contract. For soybeans, the projected harvest 
price is the simple average of the final daily settlement prices in 
February for the CBOT November soybean futures. The crop projected 
harvest prices will be released by March 5 of the current crop year.
    Silage. A product that results from severing the plant from the 
land and chopping it for the purpose of livestock feed.
2. Contract Changes
    In accordance with section 5 of the Basic Provisions, the contract 
change is November 30 preceding the cancellation date.
3. Cancellation and Termination Dates
    In accordance with section 3 of the Basic Provisions, the 
cancellation and termination dates are March 15.
4. Annual Premium
    Your per-acre premium is determined by the premium calculator for 
the applicable crop, state, type, practice, acreage, approved yield, 
the per-acre revenue guarantee, share, and other options such as 
prevented planting. Your per-acre premiums will differ by crop and unit 
structure.
    (a) Basic unit: The premium calculator calculates your per-acre 
premium for each crop basic unit.
    (b) Optional unit: The premium calculator calculates your crop 
basic unit per-acre premium and multiplies it by a surcharge factor of 
1.22 for corn and 1.30 for soybeans for each crop optional unit.
    (c) Enterprise unit: The premium calculator calculates your per-
acre premium for each crop enterprise unit. This premium includes a 
reduction for the number of sections on which the insured crop is 
located, up to a maximum of 10 sections.
    (d) Whole-farm unit: The premium calculator calculates your per-
acre premium for the whole-farm unit. This premium includes a reduction 
for the number of sections on which the insured crops are located, up 
to a maximum of 10 sections for each crop. Your whole-farm premium also 
depends on the ratio of corn to soybean insured acres in the unit.
5. Insured Crop
    (a) Corn--In accordance with section 9 of the Basic Provisions, the 
crop insured will be all the corn for which premium is provided by the 
premium calculator:
    (1) In which you have a share;
    (2) That is adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area;
    (3) That is planted for harvest as grain.
    (4) That is not (unless allowed by the Special Provisions):
    (i) Interplanted with another crop; or
    (ii) Planted into an established grass or legume.
    (b) In addition to the provisions of section 5(a), the corn crop 
insured will be all corn that is yellow dent or white corn, including 
mixed yellow and white, waxy, high-lysine corn, high-oil corn blends 
containing mixtures of at least 90 percent high yielding yellow dent 
female plants with high-oil male pollinator plants, commercial 
varieties of high-protein hybrids, and excluding:
    (1) High amylose, high-oil except as defined in section 5(b), 
flint, flour, Indian, or blue corn, or a variety genetically adapted to 
provide forage for wildlife or any other open pollinated corn.
    (2) A variety of corn adapted for silage use when the corn is 
reported for insurance as grain.
    (c) Soybeans--In accordance with section 9 of the Basic Provisions, 
the crop insured will be all the soybeans for which premium is provided 
by the premium calculator:
    (1) In which you have a share;
    (2) That are adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area;
    (3) That are not (unless allowed by the Special Provisions):
    (i) Interplanted with another crop; or
    (ii) Planted into an established grass or legume.
    (4) That are planted for harvest as beans.
6. Insurable Acreage
    In addition to the provisions of section 10 of the Basic 
Provisions, any acreage of the insured crop damaged before the final 
planting date, to the extent that a majority of producers in the area 
would normally not further care for the crop, must be replanted unless 
we agree that it is not practical to replant.
7. Insurance Period
    In accordance with the provisions under section 12 of the Basic 
Provisions, the calendar date for the end of the insurance period is 
December 10 immediately following planting.
8. Causes of Loss
    In accordance with the provisions of section 13 of the Basic 
Provisions, insurance is provided only against an unavoidable loss of 
revenue against the following causes of loss which occur within the 
insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption;
    (h) Failure of the irrigation water supply, if applicable, due to a 
cause of loss contained in section 8(a) through (g) occurring within 
the insurance period; or
    (i) A decline in the fall harvest price below the projected harvest 
price.
9. Replanting Payment
    (a) In accordance with section 14 of the Basic Provisions:
    (1) Replanting payments for corn and soybeans are allowed if the 
corn and soybeans are damaged by an insurable cause of loss to the 
extent that the remaining stand will not produce at least 90 percent of 
the per-acre revenue guarantee for the acreage and it is practical to 
replant. The projected harvest price is used to determine if 90 percent 
of the unit revenue guarantee can be achieved.
    (2) The maximum amount of the replanting payment per acre will be 
your share times the lesser of 20 percent of the per-acre revenue 
guarantee based on the projected harvest price or:
    (i) For corn, an amount equal to 8 bushels times the projected 
harvest price,
    (ii) For soybeans, an amount equal to 3 bushels times the projected 
harvest price.

[[Page 71440]]

    (b) When the insured crop is replanted using a practice that is 
uninsurable as an original planting, the unit per-acre revenue 
guarantee based on the projected harvest price will be reduced by the 
amount of the replanting payment which is attributable to your share. 
The premium amount will not be reduced.
10. Duties in the Event of Damage or Loss
    (a) In accordance with the requirements of section 15 of the Basic 
Provisions, if you initially discover damage to any insured crop within 
15 days of, or during harvest, you must leave representative samples of 
the unharvested crop for our inspection. The samples must be at least 
10 feet wide and extend the entire length of each field in the unit, 
and must not be harvested or destroyed until the earlier of our 
inspection or 15 days after harvest of the unit is completed.
    (b) In addition to the provisions of section 15 of the Basic 
Provisions, you must notify us before harvest begins if you intend to 
harvest any corn acreage for silage.
11. Settlement of Claim
    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional units, we will combine all optional units for 
which such production records were not provided: or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim using the following procedures:
    (1) Basic and Optional units: We will settle your claim on each 
basic or optional unit by:
    (i) Multiplying the unit's per-acre revenue guarantee by the number 
of insured acres in the unit;
    (ii) Multiplying the applicable fall harvest price by production to 
count for each unit (see sections 11(c) through (e));
    (iii) Subtracting the result of section 11(b)(1)(ii) from the 
result of section 11(b)(1)(i); and
    (iv) Multiplying the results in section 11(b)(2)(iii) by your 
share.
    If the result of section 11(b)(1)(iv) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result of 
section 11(b)(1)(iv) is less than or equal to zero, no indemnity will 
be paid.
    (2) Enterprise units: We will settle your claim on an enterprise 
unit by:
    (i) Multiplying the enterprise unit's per-acre revenue guarantee by 
the number of insured acres in the enterprise unit;
    (ii) Multiplying the applicable fall harvest price by the 
production to count for the enterprise unit;
    (iii) Subtracting the result of section 11(b)(2)(ii) from the 
result of section 11(b)(2)(i); and
    (iv) Multiplying the result in section 11(b)(2)(iii) by your share.
    If the result of section 11(b)(2)(iv) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result is 
less than or equal to zero, no indemnity will be paid.
    (3) Whole-farm units: We will settle your claim on a whole-farm 
unit by:
    (i) Multiplying the per-acre revenue guarantee for each crop by the 
number of insured acres planted to each crop;
    (ii) Totaling the results of section 11(b)(3)(i);
    (iii) Multiplying the applicable fall harvest price for each crop 
by the production to count for each crop;
    (iv) Totaling the results of section 11(b)(3)(iii);
    (v) Subtracting the result of section 11(b)(3)(iv) from the result 
of section 11(b)(3)(ii); and
    (vi) Multiplying the result in section 11(b)(3)(v) by your share.
    If the result of section 11(b)(2)(vi) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result is 
less than or equal to zero, no indemnity will be paid.
    (c) The total production to count in bushels from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the per-acre revenue guarantee will be used for 
such acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Planted for grain but harvested as silage, if you fail to give 
us notice before harvest begins;
    (D) Damaged solely by uninsured causes; or
    (E) For which you fail to provide acceptable production records;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance 
with section 11(d)); and
    (iv) Potential production on insured acreage that you intend to put 
to another use or you wish to abandon and no longer care for, if you 
and we agree on the appraised amount of production. Upon such agreement 
the insurance period for that acreage will end when you put the acreage 
to another use or abandon the crop. If agreement on the appraised 
amount of production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative samples 
of the crop in locations acceptable to us (The amount of production to 
count for such acreage will be based on the harvested production or 
appraisals from the samples at the time harvest should have occurred. 
If you do not leave the required samples intact, or you fail to provide 
sufficient care for the samples, our appraisal made prior to giving you 
consent to put the acreage to another use will be used to determine the 
amount of production to count.); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, 
or our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Mature crop production (excluding silage type or corn harvested 
as silage) may be adjusted for excess moisture and quality 
deficiencies. If moisture adjustment is applicable it will be made 
prior to any adjustment for quality.
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of:
    (i) Fifteen percent for corn (If moisture exceeds 30 percent, 
production will be reduced 0.2 percent for each 0.1 percentage point 
above 30 percent); and
    (ii) Thirteen percent for soybeans.
    We may obtain samples of the production to determine the moisture 
content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain, result in:
    (A) Corn not meeting the grade requirements for U.S. No. 4 (grades 
U.S. No. 5 or worse) because of test weight or kernel damage (excluding 
heat damage) or having a musty, sour, or commercially objectionable 
foreign odor; or
    (B) Soybeans not meeting the grade requirements for U.S. No. 4 
(grades U.S. Sample grade) because of test weight or kernel damage 
(excluding heat damage) or having a musty, sour, or

[[Page 71441]]

commercially objectionable foreign odor (except garlic odor), or which 
meet the special grade requirements for garlicky soybeans; or
    (ii) Substances or conditions are present that are identified by 
the Food and Drug Administration or other public health organizations 
of the United States as being injurious to human or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions and which occurs within the insurance period;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or 
by a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grader licensed to grade the 
insured crops under the authority of the United States Grain Standards 
Act or the United States Warehouse Act with regard to deficiencies in 
quality, or by a laboratory approved by us with regard to substances or 
conditions injurious to human or animal health. Test weight for quality 
adjustment purposes may be determined by our loss adjuster.
    (4) The grain production that is eligible for quality adjustment, 
as specified in sections 11(d)(2) and (3), will be reduced by the 
quality adjustment factor contained in the Special Provisions.
    (e) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.
12. Prevented Planting
    Your prevented planting coverage will be 60 percent of your per-
acre revenue guarantee for timely planted acreage. You may increase 
your prevented planting coverage to a level specified in the actuarial 
documents by paying an additional premium.

    Signed in Washington, D.C., on December 17, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-34250 Filed 12-24-98; 8:45 am]
BILLING CODE 3410-08-P