[Federal Register Volume 64, Number 165 (Thursday, August 26, 1999)]
[Proposed Rules]
[Pages 46599-46603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21991]


      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 64, No. 165 / Thursday, August 26, 1999 / 
Proposed Rules  

[[Page 46599]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Forage Production Crop 
Provisions; and Forage Seeding Crop Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Forage Production Crop Insurance Provisions and Forage 
Seeding Crop Insurance Provisions, and delete Forage Production Winter 
Coverage Endorsement. The intended effect of this action is to provide 
policy changes to better meet the needs of the insureds, and to 
restrict the effect of the current Forage Production and Forage Seeding 
Crop Insurance Regulations to the 2000 and prior crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business September 27, 1999 and will be 
considered when the rule is to be made final. The comment period for 
information collection under the Paperwork Reduction Act of 1995 
continues through October 25, 1999.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Federal Crop Insurance 
Corporation, United States Department of Agriculture, 9435 Holmes Road, 
Kansas City, MO 64131. (Comments may be sent via Internet to 
[email protected]). A copy of each response will be available 
for public inspection and copying from 7 a.m. to 4:30 p.m., CDT, Monday 
through Friday except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Insurance Management 
Specialist, Research and Development, Product Development Division, 
Federal Crop Insurance Corporation, at the Kansas City, MO, address 
listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be exempt for the purpose of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

    In accordance with section 3507(j) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501), the information collection and recordkeeping 
requirements included in the proposed rule have been submitted for 
approval to the Office of Management and Budget (OMB). Please send your 
written comments to the Clearance Officer, OCIO, USDA, room 404-W, 14th 
Street and Independence Avenue SW, Washington DC 20250. A comment to 
OMB is best assured of having its full effect if OMB receives it within 
30 days of publication of this proposed rule.
    We are soliciting comments from the public concerning our proposed 
information collection and record keeping requirements. We need this 
outside input to help us:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g. permitting electronic 
submission responses.)
    The collections of information for this rule revise the Multiple 
Peril Crop Insurance Collections of Information 0563-0053 which expires 
April 30, 2001.
    Title: Multiple Peril Crop Insurance (Forage Production and Forage 
Seeding).
    Abstract: This rule improves the existing forage production and 
forage seeding policies. Forage production is revised by: allowing 
optional units; changing the cancellation and termination dates in 
California, Nevada and Utah; requiring the insured to report all forage 
acreage on or before each date specified in the Special Provisions; 
changing dates when insurance attaches and when insurance ends; 
extending dates in some counties in California to allow year round 
coverage; clarifying that insurance is not available for damage or loss 
of production that occurs after removal from windrow; allowing forage 
to be direct marketed; and including optional unit procedures in the 
event of a loss.
    Forage seeding is revised by: adding cancellation and termination 
dates for California and South Dakota; requiring the insured to report 
all insurable forage seeding acreage on or before each acreage 
reporting date specified in the Special Provisions; specifying in all 
states and in California, unless otherwise specified in the Special 
Provisions, forage damaged before the final planting date must be 
replanted to the extent that the forage has less than a 75 percent 
stand; allowing a replant payment in California, unless otherwise 
specified in the Special Provisions, on any acreage planted to the 
insured crop that is damaged by an insurable cause of loss occurring 
within the insurance period to the extent that less than 75 percent of 
normal stand remains; allowing increased replanting payments if 
specified in the Special Provisions; and removed the 10 percent planted 
acreage requirements. The revisions are effective for the 2001 and 
succeeding crop years.
    Purpose: The purposes of this proposed rule are to clarify existing 
crop provisions and methodology for calculating losses and provide 
additional coverage benefits and an improved risk management tool for 
forage producers in all regions of the country.
    Burden statement: The information that FCIC collects on the 
specified forms will be used in offering crop insurance coverage, 
determining program eligibility, establishing a production guarantee or 
amount of insurance, calculating losses qualifying for a payment, etc. 
The burden hours have decreased because many forage

[[Page 46600]]

producers have canceled their forage coverage.
    Estimate of Burden: We estimate that it will take insured 
producers, a loss adjuster, and an insurance agent an average of .6 of 
an hour to provide the information required by the forage provisions.
    Respondents: Insureds, insurance agents, and loss adjusters.
    Estimated annual number of respondents: 9,276.
    Estimated annual number of responses per respondent: 2.1.
    Estimated annual number of responses: 19,250.
    Estimated total annual burden of respondents: The total public 
burden for this proposed rule is estimated at 5,941 hours.
    Recordkeeping requirements: FCIC requires records to be kept for 
three years, and all records required by FCIC are retained as part of 
the normal business practice. Therefore, FCIC is not estimating 
additional burden related to recordkeeping.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the UMRA) for State, local, and 
tribal governments or the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

Executive Order 12612

    It has been determined under section 6(a) of the Executive Order 
12612, Federalism, that this rule does not have sufficient implications 
to warrant the preparation of a Federalism Assessment. The provisions 
contained in this rule will not have a substantial direct effect on 
States or their political subdivisions or on the distribution of power 
and responsibilities among the various levels of government.

Regulatory Flexibility Act

    This regulation will not have a significant economic impact on a 
substantial number of small entities. New provisions included in this 
rule will not impact small entities to a greater extent than large 
entities. Under the current regulations, every producer is required to 
complete an application and acreage report. If the crop is damaged or 
destroyed, the insured is required to give notice of loss and provide 
the necessary information to complete a claim for indemnity. This 
regulation does not alter those requirements. The amount of work 
required of the insurance companies delivering and servicing these 
policies will not increase significantly from the amount of work 
currently required. Therefore, this action is determined to be exempt 
from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605), 
and no Regulatory Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic Assistance 
under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This proposed rule has been reviewed in accordance with Executive 
Order 12988 on civil justice reform. The provisions of this rule will 
not have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. The administrative appeal provisions published 
at 7 CFR part 11 must be exhausted before any action against FCIC for 
judicial review may be brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by amending 7 CFR 457.117 Forage Production Crop Insurance 
Provisions effective for the 2001 and succeeding crop years. The 
changes to the provisions for insuring forage production are as 
follows:
    1. Add definitions for ``direct-marketing'' and ``windrow'' for 
clarification. Revise the definition of ``cutting'' to eliminate 
reference to livestock feed. This change allows forage production 
coverage on forage grown for any use. For example, in some areas of the 
country, forage processing plants will process the leaves for high 
value animal feed and use the stems as fuel to generate electricity. 
Revise the definition of ``crop year'' for simplification. Delete the 
definitions for fall planted and spring planted as unnecessary because 
forage is insurable after the year of establishment not after planting 
and is designated by the calendar year is which the forage is normally 
harvested.
    2. Remove provisions which state that optional units are not 
applicable and redesignated the following sections. This change will 
allow optional units in accordance with the provisions in the Basic 
Provisions. This change is being made to increase participation in the 
insurance program.
    3. Redesignated section 4--Revise the cancellation and termination 
dates from September 30 to October 31 in California, Nevada, and Utah. 
This change was made to be consistent with actuarial filing and 
contract change dates that are similar to other crop policies in the 
region.
    4. Redesignated section 5--Require the insured to report all forage 
acreage on or before each date specified in the Special Provisions. 
Currently, insureds with multiple crops can report forage production 
acreage on the last acreage reporting date in accordance with 6(a) of 
the Basic Provisions. In some cases, this is after the billing date for 
forage production insurance coverage.
    5. Redesignated section 6--Deleted the provisions that required 
that forage crop be grown for livestock feed only. Currently, only 
forage grown for livestock feed is insurable but there are other 
commercial uses for forage.
    6. Redesignated section 7--Revise the dates insurance attaches and 
ends because the Forage Production Winter Coverage Endorsement is 
eliminated and winterkill is now allowed as an insurable cause of loss. 
Extended dates in California counties except for Lassen, Modoc, Mono, 
Shasta, and Siskiyou to allow year round coverage. Forage is planted 
year round in these California counties, and the current policy does 
not reflect standard farming practices in these areas.
    7. Redesignated section 8(b)--Clarify that insurance is not 
available for damage or loss of production that occurs after the 
removal from windrow.
    8. Redesignated section 9--Added provisions that require the 
producer to give notification if the crop is going to be direct 
marketed so production to count can be established. These notices are 
consistent with other crop policies that permit direct marketing.
    9. Redesignated section 10--Revise provisions to include optional 
unit procedures in the event of a loss. These

[[Page 46601]]

changes are consistent with other crop policies that allow optional 
units. Added examples of settlement of claim to section (b).
    10. FCIC also proposes to eliminate the Forage Production Winter 
Coverage Endorsement (7 CFR 457.127) effective for the 2001 and 
succeeding crop years. Winterkill will be an insurable cause of loss 
under the proposed Forage Production Crop Insurance Provisions.
    FCIC also proposes to amend the Common Crop Insurance Regulations 
(7 CFR part 457) by amending 7 CFR 457.151 Forage Seeding Crop 
Insurance Provisions effective for the 2001 and succeeding crop years. 
The changes to provisions for insuring forage seeding are as follows:
    1. Section 1--Revise the definition of ``harvest'' to eliminate the 
reference ``with the intention of using it for livestock feed.'' This 
change allows forage seeding coverage on forage seeded for any use. For 
example, in some areas of the country, forage processing plants will 
process the leaves for high value animal feed and use the stems as fuel 
to generate electricity.
    2. Section 5--Add cancellation and termination dates for California 
and South Dakota in response to producer requests to make insurance 
available in these states. Currently, forage seeding insurance is not 
offered in these states.
    3. Add a new section 6 to require the insured to report all 
insurable forage seeding acreage on or before each date specified in 
the Special Provisions and redesignated the following sections. 
Currently, insureds with multiple crops can report forage seeding 
acreage on the last acreage reporting date, which, in some cases, is 
after the spring billing date for forage seeding.
    4. Redesignated section 7(b)--Delete the reference to ``intended 
for harvest as livestock feed.'' Currently, only forage that was 
intended for harvest as livestock feed was insurable but there are 
other commercial uses for forage. This change makes coverage available 
for forage regardless of its intended use.
    5. Redesignated section 8--In California, unless otherwise 
specified in the Special Provisions, add provisions to specify any 
acreage damaged anytime during the crop year to the extent that acreage 
has less than 75 percent of a normal stand must be replanted unless it 
cannot be replanted and reach a normal stand within the insurance 
period. Forage is planted year round and replanting provisions as 
stated in the current policy do not reflect standard farming practices. 
Therefore, any acreage damaged anytime must be replanted to the extent 
it has less than 75 percent of a normal stand, unless it can not be 
replanted and reaching a normal stand within the insurance period.
    6. Redesignated section 11(a)--For California, unless otherwise 
specified in the Special Provisions, add provisions to allow a 
replanting payment on acreage planted to the insured crop that is 
damaged by an insurable cause of loss occurring within the insurance 
period to the extent that less than 75 percent of a normal stand 
remains. This change makes replanting payments available anytime during 
the insurance period due to year round planting. Currently, a 
replanting payment is allowed only if the Special Provisions for the 
county designate both fall and spring final planting dates.
    7. Redesignated section 11(b)--Change the words ``liability'' to 
``indemnity.'' This change is consistent with other crop policies. 
Added provisions to allow a different calculation for replanting 
payments if specified in the Special Provisions. This change will allow 
FCIC to address higher costs of forage seed and replanting expenses in 
certain areas of the country.
    8. Redesignated section 13--Add an example of a claim for 
indemnity. Removed as unnecessary from paragraph (a)(3) the addition of 
10 percent of the planted acres for the insured acreage to the total 
acres with an established stand.

List of Subjects in 7 CFR part 457

    Crop insurance, Forage production, Forage seeding, Reporting and 
recordkeeping requirements.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(1), 1506(p).

    2. Amend Sec. 457.117 as follows:
    a. Revise the heading.
    b. Revise the introductory text.
    c. Delete the definitions in Section 1 of ``Fall planted'' and 
``Spring planted,'' add definitions of ``Direct marketing'' and 
``Windrow,'' revise the definitions of ``Cutting'' and ``Crop year'' to 
read as follows.
    d. Delete Section 2 and redesignate sections 3 through 12 as 2 
through 11.
    e. Revise newly designated Section 4.
    f. Revise newly designated Section 5.
    g. Revise paragraph (a) of newly designated section 6.
    h. Revise newly designated Section 7 introductory text, paragraph 
(a), paragraph (b) introductory text, and paragraph (b)(6).
    i. Revise newly designated Section 8 paragraph (b).
    j. Revise newly designated Section 9.
    k. Revise newly designated Section 10 paragraph (a) and add 
``Example 1'' and ``Example 2'' following paragraph (b)(7).
     The revisions and additions to section 457.117 read as follows:


Sec. 457.117  Forage production crop insurance provisions.

    The Forage Production Crop Insurance Provisions for the 2001 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Crop year--The period within which the forage production is 
normally grown, which is designated by the calendar year in which the 
forage is normally harvested.
    Cutting--The severance of the forage plant from its roots.
    Direct marketing--Sale of the forage crop directly to consumers 
without the intervention of an intermediary such as a wholesaler, 
shipper, buyer, or broker. An example of direct marketing is selling 
directly to other producers.
* * * * *
    Windrow--Forage that is cut and placed in a row.
* * * * *
    4. Cancellation and Termination Dates.
    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are:

------------------------------------------------------------------------
            State and county               Cancellation/termination date
------------------------------------------------------------------------
California, Nevada and Utah.............  October 31.
All other states........................  September 30.
------------------------------------------------------------------------

    5. Report of Acreage.
    In lieu of the provisions of section 6(a) of the Basic Provisions, 
a report of all insured acreage of forage production must be submitted 
on or before each forage production acreage reporting date specified in 
the Special Provisions.
    6. Insured Crop.
    (a) In accordance with section 8 of the Basic Provisions, the crop 
insured will be all the forage in the county for which a premium rate 
is provided by the actuarial documents:
    (1) In which you have a share; and
    (2) That is grown during one or more years after the year of 
establishment.
* * * * *

[[Page 46602]]

    7. Insurance Period.
    In lieu of the provisions of section 11 of the Basic Provisions:
    (a) Insurance attaches on acreage with an adequate stand for the 
calendar year following the year of establishment for:

(1) All California counties except Lassen, Modoc, Mono, Shasta  
and Siskiyou................................................December 1;
(2) Lassen, Modoc, Mono, Shasta and Siskiyou Counties California, 
Colorado, Idaho, Nebraska, Nevada, Oregon, Utah
  and Washington..............................................April 15;
(3) Iowa, Minnesota, Montana, New Hampshire, New York, North Dakota, 
Pennsylvania, Wisconsin, Wyoming, and  
all other states................................................May 22;
(4) Lassen, Modoc, Mono, Shasta and Siskiyou Counties California, 
and all
  other states..............................................October 16;
(5) All California counties except Lassen. Modoc, Mono, Shasta
  and Siskiyou..............................................December 1.

    (b) Insurance ends at the earliest of:
* * * * *
    (6) The following dates of the crop year:

(i) California counties of Lassen, Modoc, Mono, Shasta and Siskiyou, 
and all
  other states..............................................October 15;
(ii) The last day of the 12th month after the insured crop initially 
planted in all California counties except Lassen, Modoc, Mono, 
Shasta and Siskiyou.
* * * * *
    8. Causes of Loss.
* * * * *
    (b) In addition to the causes of loss specifically excluded in 
section 12 of the Basic Provisions, we will not insure against damage 
of loss of production that occurs after removal from the windrow.
    9. Duties in the event of Damage or Loss.
    In addition to the requirements of section 14 of the Basic 
Provisions, the following will apply:
    (a) You must notify us within 3 days of the date harvest should 
have started if the insured crop will not be harvested;
    (b) You must notify us at least 15 days before any production from 
any unit will be sold by direct marketing unless you have records 
verifying that the forage was direct marketed. Failure to give timely 
notice that production will be sold by direct marketing will result in 
an appraised amount of production to count of not less than the 
production guarantee per acre if such failure results in our inability 
to make the required appraisal;
    (c) If you intend to claim an indemnity on any unit, you must 
notify us at least 15 days prior to the beginning of harvest if you 
previously gave notice in accordance with section 14 of the Basic 
Provisions so that we may inspect the damaged production. You must not 
destroy the damaged crop until after we have given you written consent 
to do so. If you fail to meet the requirements of this section, and 
such failure results in our inability to inspect the damaged 
production, all such production will be considered undamaged and will 
be included as production to count; and
    (d) You must notify us at least 5 days before grazing of insured 
forage begins so we can conduct an appraisal to determine production to 
count. Failure to give timely notice that the acreage will be grazed 
will result in an appraised amount of production to count of not less 
than the production guarantee per acre.
    10. Settlement of Claim.
    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional units, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic units, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for the units.
    (b) * * *
    (7) * * *
    Example 1:
    Assume you have a 100 percent share in 100 acres of type A forage 
in the unit, with a guarantee of 3.0 tons per acre and a price election 
of $65.00 per ton. Due to adverse weather you were only able to harvest 
50.0 tons. Your indemnity would be calculated as follows:

1. 100 acres type A  x  3 tons = 300 ton guarantee;
2 and 3. 300 tons  x  $65 price election = $19,500 total value 
guarantee;
4 and 5. 50 tons production to count  x  $65 price election = $3,250 
total value of production to count;
6. $19,500 value guarantee -$3,250 = $16,250 loss; and
7. $16,250  x  100 percent share = $16,250 indemnity payment.
    Example 2:
    Assume you also have a 100 percent share in 100 acres of type B 
forage in the same unit, with a guarantee of 1.0 ton per acre and a 
price election of $50.00 per ton. Due to adverse weather you were only 
able to harvest 5.0 tons. Your total indemnity for forage production 
for both types A and B in the same unit would be calculated as follows:
1. 100 acres  x  3 tons = 300 ton guarantee for type A; and
100 acres  x  1 ton = 100 ton guarantee for type B;
2. 300 ton guarantee  x  $65 price election = $19,500 total value of 
the guarantee for type A; and
100 ton guarantee  x  $50 price election = $5,000 total value of the 
guarantee for type B;
3. $19,500 + $5,000 = $24,500 total value of the guarantee;
4. 50 tons  x  $65 price election = $3,250 total value of production to 
count for type A; and
5 tons  x  $50 price election = $250 total value of production to count 
for type B;
5. $3,250 + $250 = $3,500 total value of production to count for types 
A and B;
6. $24,500 -$3,500 = $21,000 loss; and
7. $21,000 loss  x  100 percent share = $21,000 indemnity payment.
* * * * *


Sec. 457.127  [Removed]

    3. Section 457.127 is removed and reserved.
    4. Amend 457.151 as follows:
    a. Revise the introductory text.
    b. Revise the definition in Section 1 of ``harvest''.
    c. Revise Section 5.
    d. Redesignate section 6 through 13 as 7 through 14.
    e. Add a new Section 6 Report of Acreage.
    f. Revise newly redesignated Section 7 paragraph (b).
    g. Revise newly redesignated Section 8.
    h. Revise newly designated Section 11 introductory text, paragraph 
(a), and paragraph (b).
    i. Revise newly designated Section 13 paragraph (a)(3) and add an 
example following paragraph (a)(6).
     The revisions and additions to section 457.151 read as follows:


Sec. 457.151  Forage seeding crop insurance provisions.

    The Forage Seeding Crop Insurance Provisions for the 2001 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Harvest--Severance of the forage plant from its roots. However, 
acreage that is grazed will not be considered harvested.
* * * * *
    5. Cancellation and Termination Dates.
    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are:

[[Page 46603]]



------------------------------------------------------------------------
             State & county               Cancellation/termination dates
------------------------------------------------------------------------
California, Nevada, New Hampshire, New   July 31;
 York, Pennsylvania and Vermont.
Montana, Minnesota, North Dakota, South  March 15.
 Dakota and Wyoming.
------------------------------------------------------------------------

    6. Report of Acreage.
    In lieu of the provisions of section 6(a) of the Basic Provisions, 
a report of all insured acreage of forage seeding must be submitted on 
or before each forage seeding acreage report date specified in the 
Special Provisions.
    7. Insured Crop.
* * * * *
    (b) That is planted during the current crop year, or replanted 
during the calendar year following planting, to establish a normal 
stand of forage;
* * * * *
    8. Insurable Acreage.
    In addition to the provisions of section 9 of the Basic Provisions:
    (a) In California counties Lassen, Modoc, Mono, Shasta, Siskiyou 
and all other states, any acreage of the insured crop damaged before 
the final planting date, to the extent that such acreage has less than 
75 percent of a normal stand, must be replanted unless we agree that it 
is not practical to replant; and
    (b) In California, unless otherwise specified in the Special 
Provisions, any acreage of the insured crop damaged anytime during the 
crop year to the extent that such acreage has less than 75 percent of a 
normal stand must be replanted unless it cannot be replanted and reach 
a normal stand within the insurance period.
* * * * *
    11. Replanting Payment.
    In lieu of the provisions contained in section 13 of the Basic 
Provisions:
    (a) A replanting payment is allowed if:
    (1) In California, unless specified otherwise in the Special 
Provisions, acreage planted to the insured crop is damaged by an 
insurable cause of loss occurring within the insurance period to the 
extent that less than 75 percent of a normal stand remains and the crop 
can reach maturity before the end of the insurance period;
    (2) In Lassen, Modoc, Mono, Shasta, Siskiyou Counties California, 
and all other states:
    (i) A replanting payment is allowed only whenever the Special 
Provisions designate both fall and spring final planting dates;
    (ii) The insured fall planted acreage is damaged by an insurable 
cause of loss to the extent that less than 75 percent of a normal stand 
remains;
    (iii) It is practical to replant;
    (iv) We give written consent to replant; and
    (v) Such acreage is replanted the following spring by the spring 
planting date.
    (b) The amount of the replanting payment will be equal to 50 
percent of the amount of indemnity determined in accordance with 
section 13 unless otherwise specified in the Special Provisions.
* * * * *
    13. Settlement of Claim.
    (a) * * *
    (1) * * *
    (2) * * *
    (3) Multiplying the total acres with an established stand for the 
insured acreage of each type and practice in the unit by the amount of 
insurance for the applicable type and practice;
    (4) * * *
    (5) * * *
    (6) * * *
    Example:
    Assume you have 100 percent share in 30 acres of type A forage in 
the unit, with an amount of insurance of $100.00 per acre. At the time 
of loss, the following findings are established: 10 acres had a 
remaining stand of 75 percent or greater. You also have 20 acres of 
type B forage in the unit, with an amount of insurance of $90.00 per 
acre. 10 acres had with a remaining stand of 75 percent or greater. 
Your indemnity would be calculated as follows:

1. 30 acres  x  $100.00 = $3,000 amount of insurance for type A
20 acres  x  $90.00 = $1,800 amount of insurance for type B;
2. $3,000 + $1,800 = $4,800 total amount of insurance;
3. 10 acres with 75% stand or greater x $100 = $1,000 production to 
count for type A
10 acres with 75% stand or greater  x  $90 = $900 production to count 
for type B;
4. $1,000 + $900 = $1,900 total production to count;
5. $4,800 -$1,900 = $2,900 loss;
6. $2,900  x  100 percent share = $2,900 indemnity payment.
* * * * *
    Signed in Washington, D.C., on August 11, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-21991 Filed 8-25-99; 8:45 am]
BILLING CODE 3410-08-P