[Federal Register Volume 65, Number 131 (Friday, July 7, 2000)]
[Notices]
[Pages 41930-41937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17149]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation


Revenue Assurance

ACTION: Notice of availability.

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SUMMARY: In accordance with section 508(h) of the Federal Crop 
Insurance Act (Act), the Federal Crop Insurance Corporation (FCIC) 
Board of Directors (Board) have approved for reinsurance and subsidy 
the insurance of canola/rapeseed, corn, feed barley, soybeans, 
sunflowers, spring wheat, and winter wheat in select states and 
counties under the Revenue Assurance (RA) plan of insurance for the 
2001 crop year. This notice is intended to inform eligible producers 
and the private insurance industry of revisions to the Revenue 
Assurance Insurance Policy Basic Provisions, deletion of the Revenue 
Assurance Spring Wheat Crop Provisions, and addition of the Revenue 
Assurance Wheat Crop Provisions and Revenue Assurance Optional 
Endorsement Winter Wheat Coverage Endorsement beginning with the 2001 
crop year.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Development Division, Federal Crop Insurance Corporation, United States 
Department of Agriculture, 6501 Beacon Dr., Kansas City, Missouri 
64133, telephone (816) 926-7387.

SUPPLEMENTARY INFORMATION: Section 508(h) of the Act allows for the 
submission of a policy to FCIC's Board and authorizes the Board to 
review and, if the Board finds that the interests of

[[Page 41931]]

producers are adequately protected and that premiums charged to 
producers are actuarially appropriate, approve the policy for 
reinsurance and subsidy in accordance with section 508(e) of the Act.
    In accordance with Section 508(h) of the Act, the Board approved a 
program of insurance known as ``Revenue Assurance'' (RA) submitted by 
Farm Bureau Mutual Insurance Company of Iowa as a pilot project 
covering corn and soybeans beginning with the 1997 crop year.
    The RA program was approved for reinsurance and premium subsidy, 
including subsidy for administrative and operating expenses in an 
amount authorized under section 508(e) of the Act. RA was designed to 
protect a producer's revenue whenever low prices or low yields, or a 
combination of both, caused the harvest revenue to fall below a 
guaranteed level. The producer selected a per-acre revenue guarantee 
that could not be less than 65 percent, or more than 75 percent, of the 
expected revenue for a unit. The policy indemnity was finalized when 
the county harvest price and the producer's actual production were 
determined. This determination typically occurred in December for corn, 
and in November for soybeans. The crop prices were established on a 
county basis.
    The RA policy provides coverage for basic units, optional units, 
enterprise units, and whole-farm units.
    For the 1999 crop year, at the request of American Farm Bureau 
Insurance Services, Inc., the RA program for corn and soybeans was 
expanded into Illinois, South Dakota, Minnesota, and North Dakota, and 
spring wheat was approved as a new crop for North Dakota. Producers 
could select a coverage level percentage up to 80 percent for whole-
farm units, and a fall harvest price option that used the greater of 
the projected harvest price or the fall harvest price in determining 
the revenue guarantee. The RA program was changed to use the Chicago 
Board of Trade futures for crop prices rather than using the county 
crop prices. The Chicago Board of Trade futures and the actual 
production history were the basis for determining the revenue guarantee 
and RA premium rates.
    For the 2000 crop year, the RA program was expanded for corn and 
soybeans in Indiana; for spring wheat in Idaho, Minnesota, and South 
Dakota; for feed barley and canola/rapeseed in Idaho and North Dakota; 
and for sunflowers in North Dakota. The maximum coverage level for 
enterprise and whole-farm units was also increased to 85 percent.
    American Farm Bureau Insurance Services, Inc., has requested winter 
wheat coverage in specific states and in counties that currently have 
MPCI winter wheat coverage beginning with the 2001 crop year, 
therefore, winter wheat coverage has been added to the wheat policy and 
a winter wheat coverage endorsement has also been added. Changes for 
clarification have been added to the Revenue Assurance Insurance Policy 
Basic Provisions.
    Changes in the administrative fees producers must pay, allowing 
producers to replace low actual production history yields (APH) yields 
with adjusted transitional yields (T-yields), and changes in the amount 
of subsidy provided to reduce producers' premium costs have been added 
to the Revenue Assurance Insurance Policy Basic Provisions as mandated 
by the Agricultural Risk Protection Act of 2000.
    Accordingly, FCIC herewith gives notice of the above stated changes 
for the 2001 and succeeding crop years.
    The RA policies, endorsement, underwriting rules, questions and 
answers, and actuarial documents for the 2001 crop year will be 
released electronically to all reinsured companies through FCIC's 
Website.

    Notice: Accordingly, the publication on January 11, 2000, of the 
Notice of Availability at 65 FR 1677-1702 is adopted for the 2001 
crop year as amended to revise the Revenue Assurance Insurance 
Policy Basic Provisions, delete the Spring Wheat Crop Provisions and 
add the Revenue Assurance Wheat Crop Provisions and the Winter Wheat 
Coverage Endorsement, effective beginning with the 2001 RA winter 
wheat crop program of insurance as follows:
    1. Amend the Basic Provisions to:
    Revise the definitions of ``approved yield,'' ``expected per-
acre revenue,'' and ``per-acre revenue guarantee'' in section 1;
    Revise sections 8(d) and (e); and
    Add a new section 35.

Revenue Assurance Insurance Policy Basic Provisions

    Approved yield. The actual production history (APH) yield 
determined in accordance with 7 CFR part 400, subpart G, including any 
adjustments elected under section 35.
    Expected per-acre revenue. The approved yield times the projected 
harvest price (see section 1 of the Crop Provisions) for optional or 
basic units. A weighted average is used for enterprise or whole farm 
units.
    Per-acre revenue guarantee. The coverage level percent times your 
approved yield, times the projected harvest price. If you choose the 
fall harvest price option provided in the Crop Provisions, the per-acre 
revenue guarantee equals the coverage level percent, times the approved 
yield, times the greater of the projected harvest price or the fall 
harvest price (see section 1 of the Crop Provisions). For basic and 
optional units, the per-acre revenue guarantee may vary by unit. For an 
enterprise unit, the per-acre revenue guarantee is a weighted average 
and will be the same for all insured acres of the crop in the county. 
For the whole farm unit, the per-acre revenue guarantee is a weighted 
average and will be the same for all insured acres in the county.

8. Annual Premium and Administrative Fees

    (d) The premium subsidy amount depends on the coverage level 
percent and is calculated by multiplying the premium times the subsidy 
factor. If the coverage level percent is equal to or greater than .6500 
and less than .7500, the premium subsidy factor is .59. If the coverage 
level percent is equal to or greater than .7500 and less than .8000, 
the premium subsidy factor is .55. If the coverage level percent is 
equal to or greater than .8000 and less than .8500, the premium subsidy 
factor is .48. If the coverage level percent is equal to or greater 
than .8500, the premium subsidy factor is .38. The producer premium 
equals the premium less the premium subsidy.
    (e) In addition to the premium charged:
    (1) You, unless otherwise authorized in 7 CFR part 400, must pay an 
administrative fee of $30 per crop per county for each crop year in 
which crop insurance coverage remains in effect;
    (2) The administrative fee must be paid no later than the time that 
premium is due;
    (3) Payment of an administrative fee will not be required if you 
file a bona fide zero acreage report on or before the acreage reporting 
date for the crop. If you falsely file a zero acreage report, you may 
be subject to criminal and administrative sanctions;
    (4) The administrative fee will be waived if you request it and you 
qualify as a limited resource farmer; and
    (5) Failure to pay the administrative fees when due may make you 
ineligible for certain other USDA benefits.

35. Substitution of Yields

    You may elect to exclude actual yields used to calculate the APH 
yield that are less than 60 percent of the applicable transitional 
yield (T-yield), as defined in 7 CFR 400.52. Each excluded actual yield 
will be replaced with a yield equal to 60 percent of the applicable T-
yield for the county. The replacement yields will be used in the

[[Page 41932]]

same manner as actual yields for the purpose of calculating the APH 
yield. Premium rates for approved yields that are adjusted under this 
section will be based on your yield prior to replacing the actual 
yields or such other basis as determined appropriate by us.
    2. Add the Revenue Assurance Wheat Crop Provisions as follows:

Revenue Assurance Wheat Crop Provisions

    This is a pilot risk management program. This risk management tool 
will be reinsured under the authority provided by the Federal Crop 
Insurance Act as amended. If a conflict exists among the policy 
provisions, the order of priority is as follows: (1) the Special 
Provisions; (2) these Crop Provisions; and (3) the Basic Provisions 
with (1) controlling (2), etc.

1. Definitions

    Adequate stand. A population of live plants per unit of acreage 
which will produce at least the yield used to establish your revenue 
guarantee.
    CBOT. The Chicago Board of Trade.
    Fall harvest price. The price used to value production to count. 
For spring wheat, the fall harvest price is the simple average of the 
final daily settlement prices in August for the MGE September hard red 
spring wheat futures contract. This price will be released on or before 
September 5. For winter wheat in Idaho, Indiana, Kentucky, Michigan, 
Ohio and Tennessee, the fall harvest price is the simple average of the 
final daily settlement prices from July 1 to July 14 for the CBOT July 
soft red winter wheat futures contract. For Arkansas, Colorado, Iowa, 
Kansas, Missouri, Oklahoma and South Dakota, the fall harvest price is 
the simple average of the final daily settlement prices from July 1 to 
July 14 for the KCBT July hard red winter wheat futures contract. This 
price will be released on or before August 5.
    Fall harvest price option. A coverage option that allows you to use 
the greater of the projected harvest price or the fall harvest price to 
determine your per acre revenue guarantee. For basic, optional, and 
enterprise units, this option applies to all insurable acres of a crop 
in the county. For the whole-farm unit, this option will apply to all 
insurable acres of the applicable crops in the county. This option must 
be selected by the sales closing date and is continuous unless canceled 
by the crop sales closing date.
    Harvest. Combining or threshing the insured crop for grain. A crop 
which is swathed prior to combining is not considered harvested.
    Initially planted. The first occurrence of planting the insured 
crop on insurable acreage for the crop year.
    KCBT. The Kansas City Board of Trade.
    Latest final planting date.
    (a) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for spring-planted acreage only;
    (b) The final planting date for fall-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for fall-planted acreage only; or
    (c) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate final planting 
dates for both spring-planted and fall-planted acreage.
    Local market price. The cash grain price per bushel for the U.S. 
No. 2 grade of wheat offered by buyers in the area in which you 
normally market the insured crop. The local market price will reflect 
the maximum limits of quality deficiencies allowable for the U.S. No. 2 
grade of wheat. Factors not associated with grading under the Official 
United States Standards for Grain, including but not limited to 
protein, oil or moisture content, or milling quality will not be 
considered.
    MGE. Minneapolis Grain Exchange.
    Nurse crop (companion crop). A crop planted into the same acreage 
as another crop, that is intended to be harvested separately, and which 
is planted to improve growing conditions for the crop with which it is 
grown.
    Planted acreage. In addition to the definition contained in the 
Basic Provisions, land on which seed is initially spread onto the soil 
surface by any method and subsequently is mechanically incorporated 
into the soil in a timely manner and at the proper depth will be 
considered planted.
    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 or by the end of the late 
planting period. You must have been prevented from planting the insured 
crop due to an insured cause of loss that also prevented most producers 
from planting on acreage with similar characteristics in the 
surrounding area.
    Prevented planting guarantee. The prevented planting guarantee for 
such acreage will be the selected percentage of the per-acre revenue 
guarantee for timely planted acres.
    Projected harvest price. The price used to determine the expected 
per-acre revenue. For spring wheat the projected harvest price is the 
simple average of the final daily settlement prices in February for the 
MGE September hard red spring wheat futures contract. The projected 
harvest price for spring wheat will be released on or before March 5 of 
the current crop year. For winter wheat in Idaho, Indiana, Kentucky, 
Michigan, Ohio and Tennessee, the projected harvest price is the simple 
average of the final daily settlement prices from August 15 to 
September 14 for the following year CBOT July soft red winter wheat 
futures contract. For Arkansas, Colorado, Iowa, Kansas, Missouri, 
Oklahoma and South Dakota, the projected harvest price is the simple 
average of the final daily settlement prices from August 15 to 
September 14 for the following year KCBT July hard red winter wheat 
futures contract. The projected harvest price for winter wheat will be 
released on or before September 20 of the current crop year.
    Sales closing date. In lieu of the definition contained in the 
Basic Provisions, a date contained in the Special Provisions by which 
an application must be filed and by which you may change your crop 
insurance coverage for a crop year. If the Special Provisions provide a 
sales closing date for both winter and spring types of the insured crop 
and you plant any insurable acreage of the winter type, you may not 
change your crop insurance coverage after the sales closing date for 
the winter type.
    Swathed. Severance of the stem and grain head from the ground 
without removal of the seed from the head and placing into a windrow.

2. Unit Division

    (a) In addition to the requirements of section 2(b) of the Basic 
Provisions, 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 or only initially planted spring wheat. Optional units may 
be established in this manner only in counties having both winter and 
spring type final planting dates as designated in the Special 
Provisions.
    (b) Winter wheat can not be insured under a whole-farm unit.
    (c) In lieu of section 2(e) of the Basic Provisions that prohibits 
you from electing any other unit structure if you elect a whole farm 
unit, you must elect either a basic, optional, or enterprise

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unit for your winter wheat even if you have elected a whole farm unit 
that includes spring wheat.
    (d) If you qualify for and elect either a basic or optional unit 
for your winter wheat and you elect a whole farm unit on your spring 
crops, that includes spring wheat, your coverage level for the whole 
farm unit will be limited to the coverage level you elected for basic 
and optional units.
    (e) If you qualify for and elect either a basic or optional unit 
for your winter wheat and you elect a whole farm unit on your spring 
crops, that does not include spring wheat, you may elect any applicable 
coverage level for the whole farm unit.

3. Contract Changes

    In accordance with section 5 of the Basic Provisions, the contract 
change date is December 31 preceding the cancellation date for counties 
with a March 15 cancellation date and June 30 preceding the 
cancellation date for all other counties.

4. Cancellation and Termination Dates

    The cancellation and termination dates are:

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                       State and county                            Cancellation date         Termination date
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All Colorado counties except Alamosa, Archuleta, Conejos,      September 30............  September 30.
 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.
Archuleta, Custer, Delta, Dolores, Eagle, Garfield, Grand, La  September 30............  November 30.
 Plata, Mesa, Moffat, Montezuma, Montrose, Ouray, Pitkin, Rio
 Blanco, Routt, and San Miguel counties, Colorado;
 Connecticut; Idaho; Plymouth, Cherokee, Buena Vista,
 Pocahontas, Humboldt, 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, Edmonds,
 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; and 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 Grande, and Saguache   March 15................  March 15.
 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.
----------------------------------------------------------------------------------------------------------------

5. Annual Premium

    In addition to the provisions of section 8 of the Basic Provisions, 
your per-acre premium on a unit is determined using the premium 
calculator. Your per-acre premiums will differ by crop and unit 
structure.
    (a) Basic unit: The annual premium for a basic unit equals the per-
acre premium, times the number of insured acres in the unit, times your 
share.
    (b) Optional unit: The annual premium for an optional unit equals 
the per-acre premium, times an optional unit surcharge factor, times 
the number of insured acres in the optional unit, times your share. The 
optional unit surcharge factor is 1.10.
    (c) Enterprise unit: The annual premium for an enterprise unit 
equals the per-acre premium, times the number of insured acres in the 
unit, times your share. The per-acre premium decreases as the number of 
legally defined sections on which you have insured acreage increases up 
to a maximum of 10 sections.
    (d) Whole-farm unit: The annual premium for a whole-farm unit 
equals the per-acre premium, times the number of insured acres in the 
unit, times your share. The insured per-acre premium decreases as the 
number of legally defined sections on which you have insured acreage 
increases up to a maximum of 10 sections. The per-acre premium also 
depends on the proportions of insured crop acres on the unit. For 
example, if the unit contains corn, soybeans, and spring wheat, the 
per-acre premium will depend on the ratio of corn to soybean insured 
acres, the ratio of corn to spring wheat insured acres, and the ratio 
of soybean to spring wheat insured acres.

6. Insured Crop

    (a) In accordance with section 9 of the Basic Provisions, the crop 
insured will be all the spring wheat and winter wheat in the county for 
which a premium rate is provided by the premium calculator:
    (1) In which you have a share;
    (2) That is adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area;
    (3) That is planted for harvest as grain; and
    (4) That is not (unless allowed by the Special Provisions):
    (i) Interplanted with another crop;
    (ii) Planted into an established grass or legume; or
    (iii) Planted as a nurse crop, unless planted as a nurse crop for 
new forage seeding, but only if seeded at a normal rate and intended 
for harvest as grain.
    (b) If you anticipate destroying any acreage prior to harvest you:
    (1) May report all planted acreage when you report your acreage for 
the crop year and specify any acreage to be destroyed as uninsurable 
acreage. (By doing so, no coverage will be considered to have attached 
on the specified acreage and no premium will be due for such acreage. 
If you do not destroy such acreage, you will be subject to the under-
reporting provisions contained in section 7 of the Basic Provisions); 
or
    (2) If the actuarial documents provide a reduced premium rate for 
acreage destroyed by a date designated in the Special Provisions, you 
may report all planted acreage as insurable when you report your 
acreage for the crop year. Premium will be due on all the acreage. Your 
premium amount will be reduced

[[Page 41934]]

by the amount shown on the actuarial documents for any acreage you 
destroy prior to a date designated in the Special Provisions if you do 
not claim an indemnity on such acreage. You must obtain our consent 
before and give us notice after you destroy any of the insured crop so 
your acreage report can be revised to make you eligible for this 
reduction in premium.
    (c) In counties for which the Wheat Special Provisions designate 
both fall and spring final planting dates, you may elect a winter 
coverage endorsement for wheat. This endorsement provides two options 
for alternative coverage for wheat that is damaged between the fall 
final planting date and the spring final planting date. Coverage under 
the endorsement will be effective only if you designate the coverage 
option you elect by executing the endorsement by the sales closing date 
for winter wheat in the county.

7. Insurance Period

    In lieu of the requirements under section 12 of the Basic 
Provisions, and subject to any provisions provided by the Winter Wheat 
Coverage Endorsement if you have elected such endorsement, the 
insurance period is as follows:
    (a) Insurance attaches on each unit or part thereof on the later of 
the date we accept your application or the date the insured crop is 
planted.
    (1) The following limitations apply:
    (i) The acreage must be planted on or before the final planting 
date designated in the Special Provisions for the type (winter or 
spring) except as allowed in section 12 of these Crop Provisions and 
section 17 of the Basic Provisions.
    (ii) Whenever the Special Provisions designate only a fall final 
planting date, any acreage of winter wheat damaged before such 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 
unless we agree that replanting is not practical.
    (iii) Whenever the Special Provisions designate both fall and 
spring final planting dates, winter wheat planted on or before the fall 
final planting date which is damaged:
    (A) Before the fall 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.
    (B) On or after the fall final planting date, 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 an 
appropriate variety of wheat unless we agree that replanting is not 
practical.
    If you have elected coverage under one of the available wheat 
winter coverage options available in the county, the insurance period 
for wheat will be in accordance with the selected options.
    (iv) Whenever the Special Provisions designate a spring final 
planting date, any acreage of spring wheat damaged before such 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 
unless we agree that replanting is not practical.
    (v) Whenever the Special Provisions designate only a spring final 
planting date, any acreage of fall planted wheat is not insured unless 
you request such coverage and we agree in writing that the acreage has 
an adequate stand in the spring to produce the yield used to determine 
your revenue guarantee. Insurance will then attach to acreage having an 
adequate stand on the earlier of the spring final planting date or the 
date we agree to accept the acreage for insurance. If such fall planted 
acreage is not to be insured it must be recorded on the acreage report 
as an uninsured fall planted crop.
    (b) Insurance ends on each unit at the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit;
    (3) Final adjustment of a loss on the unit;
    (4) October 31 of the calendar year in which the crop is normally 
harvested; or
    (5) Abandonment of the crop on the unit.

8. Causes of Loss

    In accordance with the provisions of section 13 of the Basic 
Provisions, insurance is provided only against the following causes of 
loss which occur within the insurance period that results in an 
unavoidable loss of revenue:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption;
    (h) Failure of the irrigation water supply, if applicable, due to a 
cause of loss contained in sections 8(a) through (g) occurring within 
the insurance period; or
    (i) A decline in the fall harvest price below the projected harvest 
price.

9. Replanting Payment

    (a) A replanting payment for wheat is allowed as follows:
    (1) You comply with all requirements regarding replanting payments 
contained under section 14 of the Basic Provisions and in the Winter 
Wheat Coverage Endorsement for which you are eligible and which you 
have elected;
    (2) The wheat 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 revenue guarantee for the acreage. The projected harvest price is 
used to determine if 90 percent of the unit revenue guarantee can be 
achieved;
    (3) The acreage must have been initially planted to spring wheat in 
those counties with only a spring final planting date;
    (4) The damage must occur after the fall final planting date in 
those counties where both a fall and spring final planting date are 
designated;
    (5) Replanting must take place not later than 25 days after the 
spring final planting date; and
    (6) The replanted wheat must be seeded at a rate that is normal for 
initially planted wheat (if new seed is planted at a reduced seeding 
rate into a partially damaged stand of wheat, the acreage will not be 
eligible for a replanting payment).
    (b) No replanting payment will be made for acreage initially 
planted to winter wheat in any county for which the Special Provisions 
contain only a fall final planting date.
    (c) In accordance with section 14(c) of the Basic Provisions, the 
maximum amount of the replanting payment per acre will be your share 
times the lesser of 20 percent of the per-acre revenue guarantee based 
on the projected harvest price or an amount equal to 3 bushels, times 
the projected harvest price.
    (d) When wheat is replanted using a practice that is uninsurable 
for an original planting, the liability for the unit will be reduced by 
the amount of the replanting payment. The premium amount will not be 
reduced.

10. Duties in the Event of Damage or Loss

    In accordance with the requirements of section 15 of the Basic 
Provisions, if you initially discover damage to any insured crop within 
15 days of, or during harvest, you must leave representative samples of 
the unharvested crop for our inspection. The samples must be at least 
10 feet wide and extend the entire length of each field in the unit, 
and must not be harvested or destroyed until the earlier

[[Page 41935]]

of our inspection or 15 days after harvest of the unit is completed.

11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional units, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic units, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim using the following procedures:
    (1) Basic and Optional units: We will settle your claim on each 
basic or optional unit by:
    (i) Multiplying the unit's per-acre revenue guarantee by the number 
of insured acres in the unit;
    (ii) Multiplying the fall harvest price by the production to count 
for each unit (see sections 11(c) through (e);
    (iii) Subtracting the result of section 11(b)(1)(ii) from the 
result of section 11(b)(1)(i); and
    (iv) Multiplying the results of section 11(b)(1)(iii) by your 
share.
    If the result of section 11(b)(1)(iv) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result is 
less than or equal to zero, no indemnity will be paid.
    (2) Enterprise units: We will settle your claim on an enterprise 
unit by:
    (i) Multiplying the enterprise unit's per-acre revenue guarantee by 
the number of insured acres in the enterprise unit;
    (ii) Multiplying the fall harvest price by the production to count 
for the enterprise unit;
    (iii) Subtracting the result of section 11(b)(2)(ii) from the 
result of section 11(b)(2)(i); and
    (iv) Multiplying the result of section 11(b)(2)(iii) by your share.
    If the result of section 11(b)(2)(iv) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result is 
less than or equal to zero, no indemnity will be paid.
    (3) Whole-farm units: We will settle your claim on a whole-farm 
unit by:
    (i) Multiplying the per acre revenue guarantee for each crop by the 
number of insured acres planted to each crop;
    (ii) Totaling the results of section 11(b)(3)(i);
    (iii) Multiplying the fall harvest price for each crop by the 
production to count for each crop;
    (iv) Totaling the results of section 11(b)(3)(iii);
    (v) Subtracting the result of section 11(b)(3)(iv) from the result 
of section 11(b)(3)(ii); and
    (vi) Multiplying the result of section 11(b)(3)(v) by your share.
    If the result of section 11(b)(3)(vi) is greater than zero, an 
indemnity equal to that result will be paid to you. If the result is 
less than or equal to zero, no indemnity will be paid.
    (c) The total production to count in bushels from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the per-acre revenue guarantee will be used for 
such acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide acceptable production records;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance 
with section 11(d)); and
    (iv) Potential production on insured acreage that you intend to put 
to another use or you wish to abandon and no longer care for, if you 
and we agree on the appraised amount of production. Upon such 
agreement, the insurance period for that acreage will end when you put 
the acreage to another use or abandon the crop. If agreement on the 
appraised amount of production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative samples 
of the crop in locations acceptable to us. (The amount of production to 
count for such acreage will be based on the harvested production or 
appraisals from the samples at the time harvest should have occurred. 
If you do not leave the required samples intact, or you fail to provide 
sufficient care for the samples, our appraisal made prior to giving you 
consent to put the acreage to another use will be used to determine the 
amount of production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, 
or our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Mature wheat production may be adjusted for excess moisture and 
quality deficiencies. If moisture adjustment is applicable, it will be 
made prior to any adjustment for quality.
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of 13.5 percent. 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 wheat 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;
    (ii) 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 grader licensed to grade the 
wheat under the authority of the United States Grain Standards Act or 
the United States Warehouse Act with regard to deficiencies in quality, 
or by a laboratory approved by us with regard to substances or 
conditions injurious to human or animal health. Test weight for quality 
adjustment purposes may be determined by our loss adjuster.
    (4) The wheat production that is eligible for quality adjustment, 
as specified in sections 11(d)(2) and (3), will be reduced by the 
quality adjustment factor contained in the Special Provisions.
    (e) Any production harvested from plants growing in the wheat may 
be counted as production of the wheat on a weight basis.

12. Late Planting

    A late planting period is not applicable to fall-planted wheat. Any

[[Page 41936]]

winter wheat that is planted after the fall final planting date in 
counties for which the Special Provisions also contain a final planting 
date for spring wheat will not be insured. Any winter wheat that is 
planted after the fall final planting date in counties for which the 
Special Provisions contain only a fall final planting date will not be 
insured unless you were prevented from planting the winter wheat by the 
fall final planting date. Such acreage will be insurable, and the 
revenue guarantee and premium for the acreage will be determined in 
accordance with sections 17(b) and (c) of the Basic Provisions

13. Prevented Planting

    (a) In addition to the provisions contained in section 18 of the 
Basic Provisions, in counties for which the Special Provisions 
designate a spring final planting date, your prevented planting per-
acre revenue guarantee will be based on your approved yield for spring-
planted acreage of the insured crop.
    (b) Your prevented planting coverage will be 60 percent of your 
per-acre revenue guarantee for timely planted acreage. You may increase 
your prevented planting coverage to a level specified in the actuarial 
documents by paying an additional premium.
    3. Add the Revenue Assurance Optional Endorsement Winter Wheat 
Coverage Endorsement as follows:

Revenue Assurance Optional Endorsement Winter Wheat Coverage 
Endorsement

(This is a Continuous Endorsement)
    (a) In return for payment of the additional premium as indicated in 
the premium calculator, this endorsement is attached to and made a part 
of your Revenue Assurance Wheat Crop Provisions subject to the terms 
and conditions described herein.
    (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.
    (c) This endorsement modifies the provisions of sections 7 and 11 
of the Revenue Assurance Wheat Crop Provisions.
    (1) You must have the Revenue Assurance Wheat Crop Policy in force.
    (2) You may select either Option A or Option B. Failure to select 
either Option A or Option B means that you have rejected both Options 
and this endorsement would be void.
    (3) Insurance Period. Coverage under this endorsement begins on the 
later of the date we accept your application for coverage or on the 
fall final planting date designated in the Special Provisions. Coverage 
ends on the spring final planting date designated in the Special 
Provisions.
    (4) The provisions under section 15 of the Revenue Assurance 
Insurance Policy Basic Provisions are amended to require that all 
notices of damage must be provided to us by the spring final planting 
date designated in the Special Provisions.

Option A (30 Percent Coverage and Acreage Release)

    Whenever any winter wheat is damaged during the insurance period 
(see section (c)(3) above), 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 Revenue Guarantee for the acreage 
(to calculate the actual percentage, multiply the appraised production 
determined in accordance with section 11(c)(1) of the Revenue Assurance 
Wheat Crop Provisions times the Projected Harvest Price and then divide 
that quantity by the Revenue Guarantee), 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 Calculated Revenue equal to 70 percent of 
the Revenue Guarantee as revenue to count for the damaged acreage, or 
an appraisal determined in accordance with section 11(c)(1) of the 
Revenue Assurance Wheat Crop Provisions if such an appraisal results in 
a greater amount of Calculated Revenue. This amount will be considered 
Calculated Revenue to Count in determining any final indemnity on the 
unit and will be used to settle your claim as described in the 
provisions under section 11 of the Revenue Assurance Wheat Crop 
Provisions. You may use such acreage for any purpose, including 
planting and separately insuring any other crop. If you elect to 
utilize such acreage for the production of spring wheat, you must:
    (1) Plant the spring wheat in a manner that results in a clear and 
discernible break in the planting pattern at the boundary between it 
and any remaining winter wheat; and
    (2) Store or market the production from such acreage in such a 
manner that permits us to verify the amount of spring wheat production 
separately from any winter wheat production. In the event you are 
unable to provide records of production that are acceptable to us, the 
spring wheat acreage will be considered to be a part of the original 
winter wheat unit. If you elected to insure the spring wheat acreage as 
a separate optional unit, any premium amount for such acreage will be 
considered earned and payable to us.
    (b) Continue to care for the damaged crop. By doing so, coverage 
will continue under the terms of the Revenue Assurance Insurance Policy 
Basic Provisions, Revenue Assurance Wheat Crop Provisions, and this 
Option.
    (c) Replant the acreage to an appropriate variety of wheat, if it 
is practical, and receive a replanting payment in accordance with the 
terms of section 9 of the Revenue Assurance Wheat Crop Provisions. By 
doing so, coverage will continue under the terms of the Revenue 
Assurance Insurance Policy Basic Provisions, the Revenue Assurance 
Wheat Crop Provisions, and this Option, and the Revenue Guarantee for 
winter wheat will remain in effect

Option B (With Full Winter Damage Coverage)

    Whenever any winter wheat is damaged during the insurance period 
(see section (c)(3) above), 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 Revenue Guarantee for the acreage 
(to calculate the actual percentage, multiply the appraised production 
determined in accordance with section 11(c)(1) of the Revenue Assurance 
Wheat Crop Provisions times the Projected Harvest Price and then divide 
that quantity by the Revenue Guarantee), you may, at your option, take 
one of the following actions:
    (a) Continue to care for the damaged crop. By doing so, coverage 
will continue under the terms of the Revenue Assurance Insurance Policy 
Basic Provisions, the Revenue Assurance Wheat Crop Provisions, and this 
Option.
    (b) Replant the acreage to an appropriate variety of wheat, if it 
is practical, and receive a replanting payment in accordance with the 
terms of section 9 of the Revenue Assurance Wheat Crop Provisions. By 
doing so, coverage will continue under the terms of the Revenue 
Assurance Insurance Policy Basic Provisions, the Revenue Assurance 
Wheat Crop Provisions, and this Option, and the Final Guarantee for 
winter wheat will remain in effect.
    (c) Accept our appraisal of the crop on the damaged acreage as 
Calculated Revenue to count against the Revenue Guarantee for the 
damaged acreage, destroy the remaining crop on such acreage, and be 
eligible for any indemnity due under the terms of the Revenue Assurance 
Insurance Policy Basic Provisions and the Revenue Assurance Wheat Crop 
Provisions. The

[[Page 41937]]

appraisal will be considered Calculated Revenue in determining any 
final indemnity on the unit and will be used to settle your claim as 
described in the provisions of section 11 of the Revenue Assurance 
Wheat Crop Provisions. You may use such acreage for any purpose, 
including planting and separately insuring any other crop. If you elect 
to utilize such acreage for the production of spring wheat, you must:
    (1) Plant the spring wheat in a manner that results in a clear and 
discernible break in the planting pattern at the boundary between it 
and any remaining winter wheat; and
    (2) Store or market the production from such acreage in a manner 
which permits us to verify the amount of spring wheat production 
separately from any winter wheat production. In the event you are 
unable to provide records of production that are acceptable to us, the 
spring wheat acreage will be considered to be a part of the original 
winter wheat unit. If you elected to insure the spring wheat acreage as 
a separate optional unit, any premium amount for such acreage will be 
considered earned and payable to us.

    Signed in Washington, D.C., on June 29, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-17149 Filed 7-6-00; 8:45 am]
BILLING CODE 3410-08-P