[Federal Register Volume 65, Number 77 (Thursday, April 20, 2000)]
[Proposed Rules]
[Pages 21144-21151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9599]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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. 65, No. 77 / Thursday, April 20, 2000 / 
Proposed Rules  

[[Page 21144]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB63


Common Crop Insurance Regulations; Small Grains Crop Insurance 
Provisions and Wheat Crop Insurance Winter Coverage Endorsement

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule with request for comments.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Small Grains Crop Insurance Provisions and the Wheat Crop 
Insurance Winter Coverage Endorsement. The intended effects of this 
action are to add provisions for the insurance of Kamut and buckwheat, 
include additional insurance benefits, clarify existing policy 
provisions to better meet the needs of the insured, improve actuarial 
soundness, and restrict the effect of the current Small Grains Crop 
Insurance Provisions and the Wheat Crop Insurance Winter Coverage 
Endorsement to the 2000 and prior crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business June 19, 2000 and will be considered 
when the rule is to be made final. Comments on the information 
collection requirements must be received on or before June 19, 2000.

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 also be sent via the 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: For further information and a copy of 
the Cost-Benefit Analysis to the Common Crop Insurance Regulations; 
Small Grains Crop Insurance Provisions, contact Rob Coultis, 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 significant for the purposes of 
Executive Order 12866 and, therefore, it has been reviewed by the 
Office of Management and Budget (OMB).

Cost-Benefit Analysis

    A Cost-Benefit Analysis has been completed and is available to 
interested persons at the Kansas City address listed above. In summary, 
the analysis finds the effect of proposed changes on crop insurance 
payments is expected to be small. The greatest impacts are expected 
from: (1) Providing benefits when damaged winter wheat is planted to a 
spring crop other than wheat; (2) increasing the amount of replant 
payments for wheat and providing replant payments for crops that have 
not had them in the past; and (3) changes to the Wheat Winter Coverage 
Endorsement.

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 record keeping 
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 Office of Information and Regulatory Affairs, 
OMB, Attention: Desk Officer for RMA, Washington, D.C. 20503. 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 expire 
April 30, 2001.
    Title: Multiple Peril Crop Insurance (Small Grains).
    Abstract: This rule improves the existing Small Grains Crop 
Provisions and the Wheat Crop Insurance Winter Coverage Endorsement. 
The Small Grains Crop Provisions are revised to: (1) Allow insurance 
for Kamut (a variety of wheat) and buckwheat; (2) allow acreage 
initially planted to durum wheat or club wheat to qualify as a separate 
insurance unit; (3) specify that only one price election is applicable 
for each crop unless the Special Provisions provide different price 
elections by crop type, and that price elections and coverage levels 
can be changed until the spring sales closing date if the producer does 
not have any fall planted acreage of the insured crop; (4) change the 
December 31 contract change date for spring crops to November 30; (5) 
change all April 15 cancellation and termination dates to March 15; (6) 
change the cancellation and termination dates for specific counties; 
(7) add cancellation and termination dates for buckwheat; (8) clarify 
when the premium will be reduced for insured acreage that is 
intentionally destroyed prior to harvest; (9) specify that a malting 
barley endorsement is available where the actuarial table provides 
premium rates for such coverage; (10) clarify that the insured must 
replant fall planted barley or wheat that is damaged

[[Page 21145]]

prior to the spring final planting date with a winter type of the crop 
if practical, or to spring type if it is not practical to replant a 
winter type; (11) specify that for wheat only, in counties that have 
insurance for both spring and winter wheat, producers may put damaged 
winter wheat acreage to another use and receive a payment; (12) clarify 
that producers may request insurance for fall planted barley or wheat 
provided they do so by the spring sales closing date in counties having 
only a spring final planting date; (13) change the calendar date for 
the end of the insurance period for all small grains from October 31 to 
July 31 in specified states; (14) allow replanting payments for barley, 
oats, flax and buckwheat; (15) allow a replanting payment when the 
amount of seed used is less than the amount normally used for initial 
seeding; (16) Specify that the replant payment will be calculated in 
accordance with the formula in the policy regardless of the actual cost 
of replanting; (17) change from 3 to 4 the number of bushels used to 
compute the maximum amount of a replanting payment for wheat, and 
specify the number of bushels used to compute payments for barley, 
oats, flax and buckwheat; (18) specify that replanting payments will be 
calculated based on the price election for the crop type that is 
replanted and insured; (19) allow an insurance benefit for damaged 
winter wheat when a producer elects not to replant spring wheat and 
destroys any remaining winter wheat on the acreage; (20) modify 
calculations of indemnities to allow for situations in which there are 
separate crop types and more than one price election within a unit; 
(21) allow production to be adjusted for low quality when certain crops 
grade ``blighted,'' ``thin,'' ``light smutty,'' or ``light garlicky;'' 
(22) allow a late planting period for fall planted wheat except for 
that covered under the Wheat Winter Coverage Endorsement.
    The Wheat Crop Insurance Winter Coverage Endorsement is revised to: 
(1) Clarify that the endorsement is available only if the actuarial 
table provides a premium rate for it; (2) specify that all eligible 
winter wheat acreage must be insured under the endorsement; (3) 
increase the coverage amount from 30 to 50 percent of the production 
guarantee under Option A; (4) clarify that if the insured elects to 
destroy the crop and plant the acreage to spring wheat, it will be 
insured under the policy provisions covering spring planted wheat; and 
(5) change the amount of coverage provided from 100 to 70 percent of 
the production guarantee under Option B.
    Purpose: The purpose of this proposed rule is to add provisions for 
the insurance of buckwheat, include additional insurance benefits, 
clarify existing policy provisions to better meet the needs of the 
insured and the insurance company, and to improve actuarial soundness.
    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, 
calculating losses qualifying for a payment, etc. The burden hours have 
increased because FCIC assumes more producers will obtain crop 
insurance coverage for their small grains. It is likely more producers 
will desire the increased coverage to help protect their investments 
against risk.
    Estimate of Burden: We estimate that it will take insured 
producers, a loss adjuster, and an insurance agent an average of .8 of 
an hour to provide the information required by the Small Grains Crop 
Provisions including the wheat endorsement.
    Respondents: Insureds, insurance agents, and loss adjusters.
    Estimated annual number of respondents: 422,277.
    Estimated annual number of responses per respondent: 2.5.
    Estimated annual number of responses: 1,064,735.
    Estimated total annual burden on respondents: The total public 
burden for this proposed rule is estimated at 347,691 hours.
    Record keeping requirements: FCIC requires records of production to 
be kept for three years after the end of a crop year. However, these 
records are retained as part of the normal business practice and FCIC's 
requirement does not place additional burden on insured producers. 
Therefore, FCIC is not estimating burden related to this record keeping 
requirement.

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 UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Regulatory Flexibility Act

    This regulation will not have a significant 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. 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 require intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This 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 impact on the 
quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

[[Page 21146]]

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by revising 7 CFR 457.101, ``Small grains crop insurance'' 
and 7 CFR 457.102, ``Wheat crop insurance winter coverage endorsement'' 
effective for the 2001 and succeeding crop years. The principal changes 
to the provisions for insuring small grains and providing winter 
coverage for wheat in certain counties are as follows:
7 CFR 457.101--Small Grains Crop Insurance
    1. Section 1--Revise the definition of ``small grains'' to allow 
insurance for Kamut and buckwheat in response to industry request. 
Scientific names for specific small grain varieties that are insurable 
have also been added. Inclusion of these scientific names will help 
differentiate between small grain varieties that are insurable and 
those that are not. Also revise the definition of ``prevented 
planting'' to disallow a prevented planting benefit when small grains 
are prevented from being planted during the fall late planting period 
in counties that also have a spring final planting date. If the insured 
can plant spring wheat when he is not able to plant winter wheat, the 
insured is not prevented from planting wheat.
    2. Section 2--Specify that initially planted durum or club wheat 
may qualify as a separate optional unit if the Special Provisions for 
the county designate durum or club wheat as a wheat type. Current 
provisions do not allow separate optional units for durum or club 
wheat. This change affords wheat producers additional flexibility in 
determining insurance coverage.
    3. Section 3--Specify that the insured may select only one price 
election for each crop unless the Special Provisions provide different 
price elections by crop type, in which case the insured may select one 
price election for each crop type designated in the Special Provisions. 
The price election the insured selects for each crop type must have the 
same relationship to the maximum price offered. This simplifies 
administration of the program. Also, for counties with both fall and 
spring sales closing dates for the insured crop, this change allows the 
producer to change the coverage level or price election until the 
spring sales closing date only if the producer does not have any fall 
planted acreage of the insured crop.
    4. Section 4--Change the December 31 contract change date for 
spring crops to November 30 to maintain an adequate amount of time 
between this date and new cancellation dates to permit the insured to 
make informed insurance decisions. This change is consistent with other 
spring crop policies.
    5. Section 5--Change all April 15 cancellation and termination 
dates to March 15 to correspond to the change in the sales closing 
dates to comply with the requirement of the Federal Crop Insurance 
Reform Act of 1994 that spring planted crop sales closing dates be made 
30 days earlier.
    Change the cancellation and termination dates for Matanuska-Susitna 
County, Alaska from October 31 and November 30, respectively, to March 
15 for wheat. Winter wheat is not adapted to the area.
    Change the cancellation and termination dates from the spring 
(April 15) to the fall in certain counties to allow coverage for winter 
wheat. The cancellation date will be September 30 and the termination 
date will be November 30 in the following counties: Aurora, Bon Homme, 
Davidson, Douglas, Hanson, Harding, Hutchinson, Jerauld, Perkins, and 
Sanborn Counties, South Dakota; Roosevelt and Valley Counties, Montana; 
and Buffalo, Trempealeau, Jackson, Wood, Portage, Waupaca, Outagamie, 
Brown, and Kewaunee Counties, Wisconsin, and all Wisconsin counties 
north thereof.
    Change the cancellation and termination dates for barley from April 
15 to October 31 (for cancellation) and November 30 (for termination), 
in Humboldt and Pershing Counties, Nevada, and in Box Elder, Millard 
and Utah Counties, Utah. This change allows the establishment of winter 
barley coverage in these counties.
    Add cancellation and termination date of March 15 for buckwheat in 
all states.
    6. Section 6(b)(2)--Clarify the circumstances in which the premium 
will be reduced for insured acreage that is intentionally destroyed 
prior to harvest.
    7. Section 6(d)--Provide that a malting barley endorsement is 
available where the actuarial table provides premium rates for such 
coverage.
    8. Section 7(a)(1)--Revise so that insurance period provisions 
applicable to oats, rye and flax are also applicable to buckwheat. 
Buckwheat will be insurable under these crop provisions, so the 
insurance period provisions in this section will be amended 
accordingly.
    9. Section 7(a)(2)(iii)--Specify that the insured must replant any 
fall planted barley or wheat that is damaged prior to the spring final 
planting date with a winter type of the crop if practical, or to spring 
type if it is not practical to replant a winter type. Previous 
provisions were not clear regarding the requirement to replant to 
spring wheat when it was impractical to replant a winter type. Also 
provide provisions for wheat only that will allow producers to put 
damaged winter wheat acreage to another use and receive a payment in 
accordance with new provisions in section 9(e). This benefit would be 
available only in counties with both fall and spring final planting 
dates. Under current provisions, if a producer elects not to replant 
wheat, no coverage is provided and no premium is charged (acreage is 
removed from the acreage report).
    10. Section 7(a)(2)(v)--Clarify that in counties having only a 
spring final planting date, producers may request insurance for fall 
planted barley or wheat provided they do so by the spring sales closing 
date. Insurance will attach to such acreage on the date the insurer 
determines an adequate stand exists or on the spring final planting 
date if the insurer does not determine adequacy of the stand by the 
spring final planting date. Also clarify that after insurance begins, 
any such insured acreage damaged prior to the spring final planting 
date must be replanted if it is practical to do so.
    11. Section 7(b)(4)--Change the calendar date for the end of the 
insurance period for all small grains from October 31 to July 31 in 
Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, 
Kentucky, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, 
South Carolina and Tennessee. Harvest of small grains in these states 
generally begins in June and ends about the middle of July.
    12. Section 9--Revise to allow replanting payments for all small 
grains. Previous provisions allowed a replanting payment for wheat 
only. Also remove the requirement that replanting occur not later than 
25 days after the spring final planting date. This provision is 
unnecessary because the provisions regarding the time for replanting 
are contained in the definitions of ``practical to replant'' and ``late 
planting period.''
    13. Section 9(a)(1)--Revise to make inapplicable the Basic 
Provisions' limit of the amount of a replant payment to the producer's 
actual cost. Administrative burden associated with obtaining receipts 
to prove cost will be eliminated with little effect on payment amounts. 
Insurance providers have reported that only in rare instances is the 
actual cost of replanting less than the maximum payment amount allowed 
by the crop provisions.
    14. Section 9(a)(5)--Specify which fall final planting date is to 
be

[[Page 21147]]

considered when there is more than one fall final planting date for a 
county. Currently damage has to occur after the fall final planting 
date to be eligible for a replanting payment.
    15. Section 9(a)(6)--Revise to allow a replanting payment when the 
amount of seed used is less than the amount normally used for initial 
seeding. The seeding rate must be sufficient to achieve a total 
undamaged and new seeding plant population that will produce at least 
the yield used to determine the production guarantee. Allowing this 
payment under such circumstances will provide a greater incentive to 
improve poor crop stands, thereby improving production levels and 
reducing claims.
    16. Section 9(c)--Change from three to four the number of bushels 
used to compute the amount of a replanting payment for wheat. Two 
bushels is used for flax and buckwheat, and five bushels is used for 
barley and oats. Average costs associated with replanting have 
increased substantially in recent years. These changes in the 
replanting payment computation better reflect actual replanting costs. 
Current provisions prevent the payment from being based on a production 
amount exceeding 20% of the production guarantee. This will protect 
against overpayments in areas where replanting costs may be lower.
    17. Section 9(e)--Specify that replanting payments generally will 
be calculated based on the price election for the crop type that is 
replanted and insured. However, the replanting payment will be based on 
the price election of the type initially planted for any (1) damaged 
winter crop type that is replanted to a spring crop type, but retains 
insurance based on the winter crop type guarantee and price election; 
or (2) acreage replanted at a reduced seeding rate into a partially 
damaged stand of the insured crop.
    18. Section 9(f)--Allow an insurance benefit for damaged winter 
wheat when a producer elects not to replant spring wheat and destroys 
any remaining winter wheat on the acreage. The proposed benefit is 
equal to 15 percent of the production guarantee for the acreage. Under 
current provisions, if a producer elects not to replant wheat, no 
coverage is provided and no premium is earned (acreage is removed from 
the acreage report). Additional levels of winter protection will remain 
available under the wheat crop insurance winter coverage endorsement.
    19. Section 11(b)--Revise calculations of indemnities when there 
are separate crop types and more than one price election within a unit. 
This change is necessary because separate price elections have been 
established for some wheat types.
    20. Section 11(c)(1)(iv)--Revise for consistency with provisions 
used for most other crops and to specify that in the event of a 
disagreement about the quantity of appraised production, the insurance 
provider has the option to consent to put the acreage to another use. 
Currently the insurance provider's consent is mandatory if the insured 
agrees to leave intact and care for representative samples.
    21. Section 11(d)--Provide that any adjustment for excess moisture 
will be made before any adjustment for quality deficiencies to be 
consistent with other crop policies which permit both moisture and 
quality adjustments. Provide that buckwheat may be adjusted for excess 
moisture and quality deficiencies.
    22. Section 11(d)(1)(iv)--Add buckwheat to the crops that are 
adjusted for moisture content above 16 percent.
    23. Sections 11(d)(2)(i)(A) through (E)--Add musty, sour, or 
commercially objectionable foreign odors as factors that may qualify 
small grains for quality adjustment. These conditions reduce the value 
of production and can occur due to insured causes. Add ``blighted'' as 
a grade that qualifies barley for quality adjustment. This grade 
identifies production that has been damaged by certain levels of fungus 
or mold, both of which reduce the value of production and can occur due 
to insured causes. Add ``thin'' as a grade that qualifies oats for 
quality adjustment. This grade identifies production with a certain 
percentage of small kernels. These small kernels reduce the value of 
production and can occur due to insured causes such as drought. Add 
test weight as a factor that may qualify flaxseed for quality 
adjustment. Low test weight reduces the value of production and can 
occur due to insured causes. Add ``light smutty'' and ``light 
garlicky'' as grades that qualify rye for quality adjustment. These 
grades identify production with certain levels of smut balls or spores, 
or garlic bulblets, both of which reduce the value of production and 
can occur due to insured causes. Also clarify for wheat, barley, oats 
and rye, heat damaged kernels will not be considered to be damaged.
    24. Section 11(d)(2)(ii)--Specify the factors that may qualify 
buckwheat for quality adjustment.
    25. Section 11(d)(2)(iii)--Specify the factors that may qualify 
Kamut for quality adjustment.
    26. Section 11(d)(3)--Remove the requirement that the value of 
damaged production be less than the local market price of U.S. No. 2 
production. The quality factors will be specified for certain quality 
deficiency levels, so the requirement is no longer necessary.
    27. Section 11(d)(4)--Requires use of discount factors for quality 
adjustment if provided in the Special Provisions. The use of such 
factors assures consistent adjustment for insureds with quality related 
losses. Quality adjustment factors contained in the Special Provisions 
are currently being used; however, the crop provisions do not 
specifically refer to them.
    28. Section 12--Revise to allow a late planting period for all 
small grains, except for wheat which is covered under the wheat crop 
insurance winter coverage endorsement. Current provisions do not 
provide coverage for late planted winter wheat unless the acreage is 
prevented from being planted.
7 CFR 457.102--Wheat Crop Insurance Winter Coverage Endorsement
    1. Section (b)--Clarify that the endorsement is available only if 
the actuarial table provides a premium rate for it.
    2. Section (c)(5)--Clarify that all eligible winter wheat acreage 
must be insured under the endorsement. Allowing a choice of the acres 
to be insured could result in adverse selection as producers could 
choose to insure only acreage more prone to winter damage. Current 
provisions do not specify this requirement.
    3. Option A--Increase the coverage amount from 30 to 50 percent of 
the production guarantee. Comments regarding the previous 30 percent 
coverage level have indicated that it is inadequate and very few Option 
A policies have been sold. Premium rates will be increased to reflect 
the additional payment.
    4. Option A, section (a)--Clarify that if the insured elects to 
destroy the crop and plant the acreage to spring wheat, it will be 
insured under the provisions covering spring planted wheat. Current 
provisions give insureds the option of insuring such acreage. This 
change is intended to maintain consistency in insurance requirements 
for spring wheat planted to replace damaged winter wheat and reduce 
reporting requirements associated with a decision to insure.
    5. Option B--Change the amount of coverage provided from 100 to 70 
percent of the production guarantee. This change is made based on the 
potential production and income from various spring crops, including 
spring wheat, and the potential income from coverage provided by Option 
B.

[[Page 21148]]

Premium rates will be reduced accordingly.
    6. Option B, section (c)--Clarify that if the insured elects to 
destroy the crop and plant the acreage to spring wheat, it will be 
insured under the provisions covering spring planted wheat. Current 
provisions give insureds the option of insuring such acreage. This 
change is intended to maintain consistency in insurance requirements 
for spring wheat planted to replace damaged winter wheat and reduce 
reporting requirements associated with a decision to insure.

List of Subjects in 7 CFR Part 457

    Barley, Crop insurance, Flax, Oats, Rye, Wheat.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 to read 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(l) and 1506(p).

    2. Amend the crop insurance endorsement in Sec. 457.101 as follows:
    a. Amend section 1 of the crop provisions by adding a definition 
for ``Kamut'' and revising the definitions of ``prevented planting'' 
and ``small grains;''
    b. Revise section 2;
    c. Revise section 3;
    d. Revise section 4;
    e. Revise section 5;
    f. Revise section 6(b)(2) and add section 6(d);
    g. Revise sections 7(a)(1) introductory text, 7(a)(2)(iii), 
7(a)(2)(v) and 7(b)(4);
    h. Revise section 9;
    i. Revise sections 11(b), 11(c)(1)(iv) and 11(d); and
    j. Revise section 12, all to read as follows:


Sec. 457.101  Small grains crop insurance.

* * * * *

1. Definitions.

* * * * *
    Kamut. A variety of wheat (Triticum polonicum) that is commonly 
called ``Kamut.'' Kamut is considered to be spring wheat for the 
purposes of this policy.
* * * * *
    Prevented planting. In lieu of the definition contained in the 
Basic Provisions, failure to plant the insured crop with proper 
equipment by the latest final planting date designated in the 
Special Provisions for the insured crop in the county. You may also 
be eligible for a prevented planting payment if you failed to plant 
the insured crop with the proper equipment within the applicable 
late planting period following the latest final planting date. 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.
* * * * *
    Small grains. Wheat, including only common wheat (Triticum 
aestivum), club wheat (T. compactum), durum wheat (T. durum) and 
Kamut (T. polonicum); barley (Hordeum vulgare), excluding hull-less 
and black barley; oats (Avena sativa and A. byzantina); rye (Secale 
Cereale); flax (Linum usitatissimum); and buckwheat (Fagopyrum 
esculentum).
* * * * *

2. Unit Division

    In addition to the requirements of section 34(b) of the Basic 
Provisions, for wheat only, in addition to, or instead of, 
establishing optional units by section, section equivalent or FSA 
farm serial number and by irrigated and non-irrigated practices, 
optional units may be established if each optional unit contains 
only initially planted winter wheat, only initially planted spring 
wheat, only initially planted club wheat or only initially planted 
durum wheat. Separate optional units for initially planted winter 
wheat and initially planted spring wheat may be established only in 
counties having both winter and spring type final planting dates as 
designated in the Special Provisions. A separate optional unit for 
club wheat may be established only in counties for which the Special 
Provisions designate club wheat as a wheat type. A separate optional 
unit for durum wheat may be established only in counties for which 
the Special Provisions designate durum wheat as a wheat type.

3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities

    (a) In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election for each crop in 
the county insured under this policy unless the Special Provisions 
provide different price elections by type, in which case you may 
select one price election for each crop type designated in the 
Special Provisions. The price elections you choose for each type 
must have the same percentage relationship to the maximum price 
offered by us for each type. For example, if you choose 100 percent 
of the maximum price election for one type, you must also choose 100 
percent of the maximum price election for all other types.
    (b) In addition to the requirements of section three of the 
Basic Provisions, in counties with both fall and spring sales 
closing dates for the insured crop, you may change your coverage 
level or price election until the spring sales closing date only if 
you do not have any fall planted acreage of the insured crop.

4. Contract Changes

    In accordance with section 4 of the Basic Provisions, the 
contract change date is November 30 preceding the cancellation date 
for counties with a March 15 cancellation date and June 30 preceding 
the cancellation date for all other counties.

5. Cancellation and Termination Dates

    The cancellation and termination dates are:

----------------------------------------------------------------------------------------------------------------
          Crop, state and county                     Cancellation date                   Termination date
----------------------------------------------------------------------------------------------------------------
Wheat:
All Colorado counties except Alamosa,      September 30.........................  September 30.
 Archuleta, Conejos, Costilla, Custer,
 Delta, Dolores, Eagle, Garfield, Grand,
 La Plata, Mesa, Moffat, Montezuma,
 Montrose, Ouray, Pitkin, Rio Blanco, Rio
 Grande, Routt, Saguache, and San Miguel;
 all Iowa counties except Plymouth,
 Cherokee, Buena Vista, Pocahontas,
 Humbolt, Wright, Franklin, Butler, Black
 Hawk, Buchanan, Delaware, Dubuque and
 all Iowa counties north thereof; all
 Wisconsin counties except Buffalo,
 Trempealeau, Jackson, Wood, Portage,
 Waupaca, Outagamie, Brown, Kewaunee and
 all Wisconsin counties north thereof;
 all other states except Alaska, Arizona,
 California, Connecticut, Idaho, Maine,
 Massachusetts, Minnesota, Montana,
 Nevada, New Hampshire, New York, North
 Dakota, Oregon, Rhode Island, South
 Dakota, Utah, Vermont, Washington, and
 Wyoming.

[[Page 21149]]

 
Archuleta, Custer, Delta, Dolores, Eagle,  September 30.........................  November 30.
 Garfield, Grand, La Plata, Mesa, Moffat,
 Montezuma, Montrose, Ouray, Pitkin, Rio
 Blanco, Routt and San Miguel Counties,
 Colorado; Connecticut; Idaho; Plymouth,
 Cherokee, Buena Vista, Pocahontas,
 Humbolt, Wright, Franklin, Butler, Black
 Hawk, Buchanan, Delaware and Dubuque
 Counties Iowa, and all Iowa counties
 north thereof; Massachusetts; all
 Montana counties except Daniels and
 Sheridan; New York; Oregon; Rhode
 Island; all South Dakota counties except
 Corson, Walworth, Edmunds, Faulk, Spink,
 Beadle, Kingsbury, Miner, McCook,
 Turner, Yankton and all South Dakota
 counties north and east thereof;
 Washington; Buffalo, Trempealeau,
 Jackson, Wood, Portage, Waupaca,
 Outagamie, Brown and Kewaunee Counties
 Wisconsin, and all Wisconsin counties
 north thereof; all Wyoming counties
 except Big Horn, Fremont, Hot Springs,
 Park, and Washakie.
Arizona; California; Nevada; and Utah....  October 31...........................  November 30.
Alaska; Alamosa, Conejos, Costilla, Rio    March 15.............................  March 15.
 Grande and Saguache Counties, Colorado;
 Maine; Minnesota; Daniels and Sheridan
 Counties, Montana; New Hampshire; North
 Dakota; Corson, Walworth, Edmunds,
 Faulk, Spink, Beadle, Kingsbury, Miner,
 McCook, Turner, and Yankton Counties,
 South Dakota, and all South Dakota
 counties north and east thereof;
 Vermont; and Big Horn, Fremont, Hot
 Springs, Park, and Washakie Counties,
 Wyoming.
Barley:
All New Mexico counties except Taos;       September 30.........................  September 30.
 Texas, Oklahoma, Missouri, Illinois,
 Indiana, Ohio, Pennsylvania, New Jersey
 and all states south and east thereof.
Kit Carson, Lincoln, Elbert, El Paso,      September 30.........................  November 30.
 Pueblo and Las Animas Counties, Colorado
 and all Colorado counties south and east
 thereof; Connecticut; Kansas;
 Massachusetts; New York; and Rhode
 Island.
Arizona; California; Clark, Humboldt, Nye  October 31...........................  November 30.
 and Pershing Counties, Nevada; and Box
 Elder, Millard and Utah Counties, Utah.
All Colorado counties except Kit Carson,   March 15.............................  March 15.
 Lincoln, Elbert, El Paso, Pueblo and Las
 Animas, and all Colorado counties south
 and east thereof; all Nevada counties
 except Clark, Humboldt, Pershing and
 Nye; Taos County, New Mexico; all Utah
 counties except Box Elder, Millard and
 Utah; and all other states except
 Arizona, California, and (except) Texas,
 Oklahoma, Missouri, Illinois, Indiana,
 Ohio, Pennsylvania, New Jersey and all
 states south and east thereof.
Oats:
Alabama; Arkansas; Florida; Georgia;       September 30.........................  September 30.
 Louisiana; Mississippi; All New Mexico
 counties except Taos County; North
 Carolina; Oklahoma; South Carolina;
 Tennessee; Texas; and Patrick, Franklin,
 Pittsylvania, Campbell, Appomattox,
 Fluvanna, Buckingham, Louisa,
 Spotsylvania, Caroline, Essex, and
 Westmoreland Counties, Virginia, and all
 Virginia counties east thereof.
Arizona; All California counties except    October 31...........................  October 31.
 Del Norte, Humboldt, Lassen, Modoc,
 Plumas, Shasta, Siskiyou and Trinity.
Del Norte, Humbolt, Lassen, Modoc,         March 15.............................  March 15.
 Plumas, Shasta, Siskiyou, and Trinity
 Counties, California; Taos County, New
 Mexico; all Virginia counties except
 Patrick, Franklin, Pittsylvania,
 Campbell, Attomattox, Fluvanna,
 Buckingham, Louisa, Spotsylvania,
 Caroline, Essex, and Westmoreland, and
 all Virginia counties east thereof; and
 all other states except Alabama,
 Arizona, Arkansas, Florida, Georgia,
 Louisiana, Mississippi, North Carolina,
 Oklahoma, South Carolina, Tennessee, and
 Texas.
Rye:
All states...............................  September 30.........................  September 30.
Flax:
All states...............................  March 15.............................  March 15.
Buckwheat:
All states...............................  March 15.............................  March 15.
----------------------------------------------------------------------------------------------------------------

6. Insured Crop

* * * * *
    (b) * * *
    (2) May report all planted acreage as insurable when you report 
your acreage for the crop year. Premium will be due on all the 
acreage except as set out herein. If the Special Provisions allow a 
reduced premium amount for acreage intentionally destroyed prior to 
harvest, you may qualify for such reduction only if you notify us in 
writing on or before the date designated in the Special Provisions 
of the intended destruction, and do not claim an indemnity on the 
acreage. No premium reduction will be allowed if the required notice 
is not given or if you claim an indemnity for the acreage. Upon 
receiving timely notice, insurance coverage on the acreage you do 
not intend to harvest will cease and we will revise your acreage 
report to indicate the applicable reduction in premium. If you do 
not destroy the crop as intended, you will be subject to the under-
reporting provisions contained in section 6 of the Basic Provisions.
* * * * *
    (d) In counties for which the actuarial table provides premium 
rates for malting barley coverage, an endorsement is available (7 
CFR 457.118) that provides additional insurance protection for 
malting barley. This endorsement provides coverage options for 
producers who grow malting barley under contract and those who do 
not have a contract. Coverage under the endorsement is effective 
only if you qualify under the terms of the option selected and you 
execute the endorsement by the sales closing date.

7. Insurance Period

* * * * *
    (a) * * *
    (1) For oats, rye, flax and buckwheat, the following limitations 
apply:
* * * * *
    (2) * * *
    (iii) Whenever the Special Provisions designate both fall and 
spring final planting dates, any winter barley or wheat that is 
damaged before the spring final planting date, to the extent that 
growers in the area would normally not further care for the crop, 
must be replanted to a winter type of the insured crop unless we 
agree that replanting is not practical. If it is not practical to 
replant to winter barley, but is practical to plant spring barley, 
you must replant spring barley to keep your barley insurance in 
force. If it is not practical to replant to winter wheat but is 
practical to plant spring wheat, you must replant spring wheat to 
keep your wheat insurance in force. Any winter barley or wheat 
acreage that is replanted to a spring type of the same crop will be 
insured as the winter type and will maintain the guarantee, premium 
and price election applicable to the winter type. You may also elect 
to destroy any remaining wheat on the acreage and, if eligible, 
receive a payment in accordance with the provisions in section 9(e). 
If you

[[Page 21150]]

have elected coverage under a wheat winter coverage option (if 
available in the county), insurance will be in accordance with the 
option.
* * * * *
    (v) Whenever the Special Provisions designate only a spring 
final planting date, any acreage of fall planted barley or wheat is 
not insured unless you request such coverage on or before the spring 
sales closing date, and we agree in writing that the acreage has an 
adequate stand in the spring to produce the yield used to determine 
your production guarantee. Insurance will attach to such acreage on 
the date we determine an adequate stand exists or on the spring 
final planting date if we do not determine adequacy of the stand by 
the spring final planting date. Any acreage of such fall planted 
barley or wheat that is damaged after it is accepted for insurance 
but before the spring final planting date, to the extent that 
growers in the area would normally not further care for the crop, 
must be replanted to a spring type of the insured crop unless we 
agree it is not practical to replant. If fall planted acreage is not 
to be insured it must be recorded on the acreage report as uninsured 
fall planted acreage.
    (b) * * *
    (4) The following applicable date of the calendar year in which 
the crop is normally harvested:
    (i) September 25 following planting in Alaska;
    (ii) July 31 in Alabama, Arizona, Arkansas, Connecticut, 
Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, 
Mississippi, New Jersey, North Carolina, South Carolina and 
Tennessee; or
    (iii) October 31 in all other states; or
* * * * *

9. Replanting Payments

    (a) A replanting payment for small grains, is allowed as 
follows:
    (1) In lieu of provisions in section 13 of the Basic Provisions 
that limit the amount of a replant payment to the actual cost of 
replanting, the amount of any replanting payment will be determined 
in accordance with these crop provisions.
    (2) You must comply with all requirements regarding replanting 
payments contained in section 13 of the Basic Provisions (except as 
allowed in section 9(a)(1)) and in any winter coverage endorsement 
for which you are eligible and which you have elected;
    (3) The insured crop must be damaged by an insurable cause of 
loss to the extent that the remaining stand will not produce at 
least 90 percent of the production guarantee for the acreage;
    (4) The acreage must have been initially planted to a spring 
type of the insured crop in those counties with only a spring final 
planting date;
    (5) The damage must occur after the fall final planting date in 
those counties where both a fall and spring final planting date are 
designated. (If the Special Provisions provide more than one fall 
final planting date, the fall final planting date applicable to 
policies with the Wheat Winter Coverage Endorsement will be used for 
this purpose, regardless of whether or not the endorsement is 
actually in effect.); and
    (6) The replanted crop must be seeded at a rate sufficient to 
achieve a total (undamaged and new seeding) plant population that 
will produce at least the yield used to determine your production 
guarantee.
    (b) No replanting payment will be made for acreage initially 
planted to a winter type of the insured crop (includes rye) in any 
county for which the Special Provisions contain only a fall final 
planting date (includes final planting dates in December, January 
and February).
    (c) The maximum amount of the replanting payment per acre will 
be the lesser of 20.0 percent of the production guarantee or the 
number of bushels for the applicable crop specified below, 
multiplied by your price election and your share:
    (1) 2 bushels for flax or buckwheat;
    (2) 4 bushels for wheat; or
    (3) 5 bushels for barley or oats.
    (d) When a crop is replanted using a practice that is 
uninsurable for an original planting, the liability on the unit will 
be reduced by the amount of the replanting payment. The premium 
amount will not be reduced.
    (e) Replanting payments will be calculated using the price 
election for the crop type that is replanted and insured. For 
example, if damaged spring wheat is replanted to Durum wheat, the 
price election applicable to Durum wheat will be used to calculate 
any replanting payment that may be due. A revised acreage report 
will be required to reflect the replanted type. Notwithstanding the 
previous two sentences, the following will have a replanting payment 
based on the guarantee and price election for the crop type 
initially planted:
    (1) Any damaged winter crop type that is replanted to a spring 
crop type, but that retains insurance based on the winter crop type 
guarantee and price election; and
    (2) Any acreage replanted at a reduced seeding rate into a 
partially damaged stand of the insured crop.
    (f) When any acreage of winter wheat is eligible for a 
replanting payment in accordance with these crop provisions and the 
Basic Provisions, but you elect not to replant wheat, you may 
destroy any remaining wheat on the acreage and utilize it for any 
purpose other than the production of wheat. By doing so, you agree 
to accept an amount of production to count against the unit 
production guarantee equal to 85 percent of the production guarantee 
for the damaged acreage, or an appraisal determined in accordance 
with the provisions in section 11 if such an appraisal results in a 
greater amount of production. This amount will be considered 
production to count in determining any final indemnity on the unit 
and will be used to settle your claim as described in section 11.
* * * * *

11. Settlement of Claim

* * * * *
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the insured acreage by its respective production 
guarantee;
    (2) Multiplying each result in section 11(b)(1) by the 
respective price election;
    (3) Totaling the results of section 11(b)(2);
    (4) Multiplying the total production to be counted of each type, 
if applicable, (see sections 11(c), (d), and (e)) by the respective 
price election;
    (5) Totaling the results of section 11(b)(4);
    (6) Subtracting the result of section 11(b)(5) from the result 
in section 11(b)(3); and
    (7) Multiplying the result of section 11(b)(6) by your share.
    (c) * * *
    (1) * * *
    (iv) Potential production on insured acreage that you intend to 
put to another use or abandon, 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
* * * * *
    (d) Mature wheat, barley, oat, rye, and buckwheat production may 
be adjusted for excess moisture and quality deficiencies. Flax 
production may be adjusted for quality deficiencies only. If a 
moisture adjustment is applicable, it will be made prior to any 
adjustment for quality.
    (1) Production will be reduced by .12 percent for each .1 
percentage point of moisture in excess of;
    (i) 13.5 percent for wheat;
    (ii) 14.5 percent for barley;
    (iii) 14.0 percent for oats; and
    (iv) 16.0 for rye and buckwheat.
    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) Wheat, except Kamut, not meeting the grade requirements for 
U.S. No. 4 (grades U.S. No. 5 or worse) because of test weight, 
total damaged kernels (heat-damaged kernels will not be considered 
to be damaged), shrunken or broken kernels, defects (foreign 
material and heat damage will not be considered to be defects), a 
musty, sour, or commercially objectional foreign odor (except smut 
odor), or grading garlicky, light smutty, smutty or ergoty;
    (B) Barley not meeting the grade requirements for U.S. No. 4 
(grades U.S. No.

[[Page 21151]]

5 or worse) because of test weight, percentage of sound barley 
(heat-damaged kernels will be considered to be sound barley), 
damaged kernels (heat-damaged kernels will not be considered to be 
damaged), thin barley, black barley, a musty, sour, or commercially 
objectional foreign odor (except smut or garlic odor), or grading 
blighted, smutty, garlicky, or ergoty;
    (C) Oats not meeting the grade requirements for U.S. No. 4 
(grade U.S. sample grade) because of test weight or percentage of 
sound oats (heat-damaged kernels will be considered to be sound 
oats), a musty, sour, or commercially objectional foreign odor 
(except smut or garlic odor), or grading smutty, thin, garlicky, or 
ergoty;
    (D) Rye not meeting the grade requirements for U.S. No. 3 
(grades U.S. No. 4 or worse) because of test weight, percent damaged 
kernels (heat-damaged kernels will not be considered to be damaged) 
or thin rye, a musty, sour, or commercially objectional foreign odor 
(except smut or garlic odor), or grading light smutty, smutty, light 
garlicky, garlicky, or ergoty;
    (E) Flaxseed not meeting the grade requirements for U.S. No. 2 
(grades U.S. sample grade) due to test weight, damaged kernels 
(heat-damaged kernels will not be considered to be damaged), or a 
musty, sour, or commercially objectional foreign odor (except smut 
or garlic odor);
    (ii) Deficiencies in the quality of buckwheat, determined in 
accordance with applicable state grading standards, result in it 
having a test weight lower than 42 pounds per bushel, or a musty, 
sour or commercially objectional foreign odor (except smut or garlic 
odor), or grading garlicky, smutty or ergoty if such grades are 
provided for by the applicable state grading standards;
    (iii) Quality factors for Kamut fall below the levels contained 
in the Official United States Standards for Grain that cause durum 
wheat to grade less than U.S. No. 4. For example, if durum wheat 
grades less than U.S. No. 4 when its test weight falls below 54.0 
pounds per bushel, Kamut would be eligible for quality adjustment if 
its test weight falls below 54.0 pounds per bushel. The same quality 
factors considered for quality adjustment of durum wheat will be 
applicable and determination of deficiencies will be made in 
accordance with the Federal Grain Inspection Service directive that 
establishes procedures for quality factor analysis of Kamut seed; or
    (iv) Substances or conditions are present, including mycotoxins, 
that are identified by the Food and Drug Administration or other 
public health organizations of the United States as being injurious 
to human or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us 
or by a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grain grader licensed under 
the authority of the United States Grain Standards Act or the United 
States Warehouse Act with regard to deficiencies in quality, or by a 
laboratory approved by us with regard to substances or conditions 
injurious to human or animal health. Test weight for quality 
adjustment purposes may be determined by our loss adjustor.
    (4) Small 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.
* * * * *

12. Late Planting

    A late planting period is applicable to small grains, except, to 
any wheat acreage covered under the terms of the Wheat Crop 
Insurance Winter Coverage Endorsement. Wheat covered under the terms 
of the Wheat Crop Insurance Winter Coverage Endorsement must be 
planted on or prior to the applicable final planting date specified 
in the Special Provisions. In counties having a fall final planting 
date for acreage covered under the Wheat Winter Coverage Endorsement 
and a fall final planting date for acreage not covered under the 
endorsement, the fall late planting period will begin after the 
final planting date for acreage not covered under the endorsement.
* * * * *
    3. Amend the crop insurance endorsement contained in Sec. 457.102 
as follows:
    a. Revise section (b);
    b. Add section (c)(5);
    c. Amend Option A by revising the heading, the introductory 
paragraph and paragraph (a) introductory text; and
    d. Amend Option B by revising the heading, the introductory 
paragraph and paragraph (c) introductory text, all to read as follows:


Sec. 457.102  Wheat crop insurance winter coverage endorsement.

* * * * *
    (b) This endorsement is available only in counties for which the 
Special Provisions designate both a fall final planting date and a 
spring final planting date, and for which the actuarial table 
provides a premium rate for this coverage.
    (c) * * *
    (5) All eligible winter wheat acreage must be insured under this 
endorsement.
* * * * *

Option A (50 Percent Coverage and Acreage Release)

    Whenever any winter wheat is damaged during the insurance period 
and at least 20 acres or 20 percent of the acreage in the unit, 
whichever is less, does not have an adequate stand to produce at 
least 90 percent of the production guarantee for the acreage, you 
may, at your option, take one of the following actions:
    (a) Destroy the remaining crop on such acreage. By doing so, you 
agree to accept an amount of production to count against the unit 
production guarantee equal to 50 percent of the production guarantee 
for the damaged acreage, or an appraisal determined in accordance 
with section 11(c)(1) of the Small Grains Crop Provisions if such an 
appraisal results in a greater amount of production. This amount 
will be considered production to count in determining any final 
indemnity on the unit and will be used to settle your claim as 
described in section 11 (Settlement of Claim) of the Small Grains 
Crop Provisions. You may use such acreage for any purpose, including 
planting and separately insuring any other crop. If you elect to 
plant spring wheat, it will be insured in accordance with the policy 
provisions that are applicable to acreage that is initially planted 
to spring wheat, and you must:
* * * * *

Option B (70 Percent Coverage and Acreage Release)

    Whenever any winter wheat is damaged during the insurance period 
and at least 20 acres or 20 percent of the acreage in the unit, 
whichever is less, does not have an adequate stand to produce at 
least 90 percent of the production guarantee for the acreage, you 
may, at your option, take one of the following actions:
* * * * *
    (c) Destroy the remaining crop on such acreage. By doing so, you 
agree to accept an amount of production to count against the unit 
production guarantee equal to 30 percent of the production guarantee 
for the damaged acreage, or an appraisal determined in accordance 
with section 11(c)(1) of the Small Grains Crop Provisions if such an 
appraisal results in a greater amount of production. This amount 
will be considered production to count in determining any final 
indemnity on the unit and will be used to settle your claim as 
described in section 11 (Settlement of Claim) of the Small Grains 
Crop Provisions. You may use such acreage for any purpose, including 
planting and separately insuring any other crop. If you elect to 
plant spring wheat, it will be insured in accordance with the policy 
provisions that are applicable to acreage that is initially planted 
to spring wheat, and you must:
* * * * *

    Signed in Washington, DC, on April 11, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-9599 Filed 4-19-00; 8:45 am]
BILLING CODE 3410-08-P