[Federal Register Volume 76, Number 141 (Friday, July 22, 2011)]
[Proposed Rules]
[Pages 44200-44224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17781]
[[Page 44199]]
Vol. 76
Friday,
No. 141
July 22, 2011
Part IV
Department of Agriculture
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Federal Crop Insurance Corporation
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7 CFR Part 407
Area Risk Protection Insurance Regulations and Area Risk Protection
Insurance Crop Provisions; Proposed Rule
Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 /
Proposed Rules
[[Page 44200]]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 407
[Docket No. FCIC-11-0002]
RIN 0563-AC25
Area Risk Protection Insurance Regulations and Area Risk
Protection Insurance Crop Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
replace the Group Risk Plan (GRP) provisions in CFR part 407, which
includes the: GRP Basic Provisions, GRP Barley Crop Provisions, GRP
Corn Crop Provisions, GRP Cotton Crop Provisions, GRP Forage Crop
Provisions, GRP Peanut Crop Provisions, GRP Sorghum Crop Provisions,
GRP Soybean Crop Provisions, and GRP Wheat Crop Provisions, with a new
Area Risk Protection Insurance (ARPI) Basic Provisions and ARPI Crop
Provisions for each of these crops except Barley and Peanuts. The new
ARPI provisions will also replace the Group Risk Income Protection
(GRIP) Basic Provisions, the GRIP Crop Provisions, and the GRIP-Harvest
Revenue Option (GRIP-HRO). ARPI will offer producers a choice of Area
Revenue Protection, Area Revenue Protection with the Harvest Price
Exclusion, or Area Yield Protection, all within one Basic Provision and
the applicable Crop Provisions. This will reduce the amount of
information producers must read to determine the best risk management
tool for their operation and will improve the provisions to better meet
the needs of insured's. The changes will apply for the 2013 and
succeeding crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business September 20, 2011 and will be
considered when the rule is to be made final. Comments on the
information collection requirements must be received on or before
September 20, 2011.
ADDRESSES: FCIC prefers that comments be submitted electronically
through the Federal eRulemaking Portal. You may submit comments,
identified by Docket ID No. FCIC-11-0002, by any of the following
methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
By Mail to: Director, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
All comments received, including those received by mail, will be
posted without change to http://www.regulations.gov, including any
personal information provided, and can be accessed by the public. All
comments must include the agency name and docket number or Regulatory
Information Number (RIN) for this rule. For detailed instructions on
submitting comments and additional information, see http://www.regulations.gov. If you are submitting comments electronically
through the Federal eRulemaking Portal and want to attach a document,
we ask that it be in a text-based format. If you want to attach a
document that is a scanned Adobe PDF file, it must be scanned as text
and not as an image, thus allowing FCIC to search and copy certain
portions of your submission. For questions regarding attaching a
document that is a scanned Adobe PDF file, please contact the RMA Web
Content Team at (816) 823-4694 or by e-mail at
[email protected].
Privacy Act: Anyone is able to search the electronic form of all
comments received for any dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review the
complete User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT: Director, Product Administration and
Standards Division, Risk Management Agency, United States Department of
Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205,
Kansas City, MO 64141-6205, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget.
Benefit-Cost Analysis
A Benefit-Cost Analysis has been completed and a summary is shown
below; the full analysis may be viewed on http://www.regulations.gov
(see ADDRESSES above for instructions for accessing http://www.regulations.gov). In summary, the analysis finds that changes in
the rule will have an expected savings of $705,722 to the government in
administration of the Federal Crop Insurance program; a cost of
slightly over $488,255 to producers; and a cost of slightly over $1
million to insurance providers.
Combining area yield protection (protection for production losses
only) and area revenue protection (protection against loss of revenue
caused by low prices, low yields or a combination of both) within one
Basic Provisions and the applicable Crop Provisions will minimize the
quantity of documents needed to describe the contract between the
insured and the insurance provider. An insured benefits because he or
she will not receive several copies of largely duplicative material as
part of the insurance contracts for crops insured under different plans
of insurance. Insurance providers benefit because there is no need to
maintain inventories of similar materials. Handling, storing and
mailing costs are reduced to the extent that duplication of Basic or
Crop Provisions is eliminated. Benefits accrue due to avoided costs
(resources employed for duplicative effort), which are intangible in
nature. These proposed changes will increase the efficiency of the
insurance provider by eliminating the need to maintain and track
separate forms, and by eliminating the potential for providing an
incorrect set of documents to an insured by inadvertent error.
The GRIP plan of insurance currently uses a market-price discovery
method to determine prices. This rule proposes to use this same method
for determining prices for both area revenue protection and area yield
protection. The benefits of this action primarily accrue to FCIC, which
will no longer be required to make two estimates of the respective
market price for these crops. Insurance providers benefit because they
no longer will be required to process two releases of the expected
market price for a crop year. Insureds also benefit because the price
at which they may insure the crops included under GRP yield protection
should more closely approximate the market value of any
[[Page 44201]]
loss in yield that is subject to an indemnity, and insured's will not
have to analyze potential differences in price in deciding between area
revenue or area yield protection. There are essentially no direct costs
for this change since the market-price price discovery mechanism
already exists and is in use for GRIP plan of insurance. All required
data is available and similar calculations are currently being made.
Peanuts and barley currently are insured under the GRP plan of
insurance, but have had no actuarial offers since 2009 and 1997,
respectively. Thus, no Crop Provisions will be included for these
crops.
These changes will simplify administration of the crop insurance
program, reduce the quantity of documents and electronic materials
prepared and distributed, better define the terms of coverage, provide
greater clarity, and reduce the potential for waste, fraud, and abuse.
Many of the benefits and costs associated with the proposed rule
cannot be quantified. The qualitative assessment indicates that the
benefits outweigh the costs of the regulation.
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 this rule have been submitted for approval to
OMB. Please submit written comments to the Desk Officer for
Agriculture, Office of Information and Regulatory Affairs, Office of
Management and Budget (OMB), Washington DC 20503. Electronic comments
can be submitted to http://www.regulations.gov. A comment to OMB is
best assured of having its full effect if OMB receives it within 30
days of publication of this rule.
Comments are being solicited from the public concerning this
proposed information collection and record keeping requirements. This
outside input will help:
(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 assumption 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.)
Title: Area Risk Protection Insurance.
Abstract: To administer the Area Risk Protection Insurance (ARPI)
Basic Provisions and affected Crop Provisions to determine insurance
coverage, premiums, subsidies, payments and indemnities.
Purpose: FCIC proposes to replace the GRP Insurance Regulations,
Basic Provisions, GRP Barley Crop Provisions, GRP Corn Crop Provisions,
GRP Cotton Crop Provisions, GRP Forage Crop Provisions, GRP Peanut Crop
Provisions, GRP Sorghum Crop Provisions, GRP Soybean Crop Provisions,
and GRP Wheat Crop Provisions with a new ARPI Basic Provisions and ARPI
Crop Provisions. The new provisions will also replace the GRIP Basic
Provisions and GRIP Crop Provisions and the GRIP--Harvest Revenue
Option (GRIP--HRO). The intended effect of this action is to offer
producers a choice of area revenue protection, area revenue protection
with the harvest price exclusion, or area yield protection all within
one Basic Provision and applicable Crop Provisions. This will reduce
the amount of information producers must read to determine the best
risk management tool for their operation and will improve the
provisions to better meet the needs of insured producers. The burden
hours for GRP and GRIP were previously contained in Information
Collection Burden Package 0563-0053. FCIC is removing the GRP and GRIP
burden hours from 0563-0053 accordingly. FCIC is creating this new
package to include the information collection requirements necessary
for administering the ARPI policy.
Burden Statement: Producers are required to report specific data
when they apply for crop insurance and to report acreage, yields, and
notices of loss. Approved Insurance Providers (AIP) accept
applications, issue policies, establish and provide insurance coverage,
compute liability, premium, subsidies, and losses, indemnify producers,
and report specific data to FCIC, as required. Insurance agents market
crop insurance and provide crop insurance services to the producer.
This data is used to administer the Federal crop insurance program in
accordance with the Federal Crop Insurance Act, as amended.
Estimate of Burden: The public reporting burden for this collection
of information is estimated to average 0.5 of an hour per response.
Respondents: Producers and insurance providers reinsured by FCIC.
Estimated Annual Number of Respondents: 34,572.
Estimated Annual Number of Responses per Respondent: 9.9.
Estimated Annual Number of Responses: 341,509.
Estimated Total Annual Burden Hours on Respondents: 176,579.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
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.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. The review reveals that this regulation will not have
substantial and direct effects on Tribal governments and will not have
significant Tribal implications.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small
[[Page 44202]]
entities. Program requirements for the Federal crop insurance program
are the same for all producers regardless of the size of their farming
operation. For instance, all producers are required to submit an
application and acreage report to establish their insurance guarantees,
and compute premium amounts. Whether a producer has 10 acres or 1000
acres, there is no difference in the kind of information collected. To
ensure crop insurance is available to small entities, the Federal Crop
Insurance Act authorizes FCIC to waive collection of administrative
fees from limited resource farmers. FCIC believes this waiver helps to
ensure small entities are given the same opportunities to manage their
risks through the use of crop insurance. A regulatory Flexibility
Analysis has not been prepared since this regulation does not have an
impact on small entities and therefore, this regulation is exempt from
the provisions of the Regulatory Flexibility Act (5 U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988 on civil justice reform. The provisions of this rule will
not have 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. With respect to any direct action taken by FCIC
or to require the insurance provider to take specific action under the
terms of the crop insurance policy, the administrative appeal
provisions published at 7 CFR part 11 or 7 CFR part 400, subpart J for
the informal administrative review process of good farming practices as
applicable, must be exhausted before any action against FCIC may be
brought.
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, or safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
1. Proposed Policy
FCIC proposes to discontinue the GRIP plan of insurance and to
replace the GRP crop provisions in CFR part 407 with the Area Risk
Protection Insurance (ARPI) Basic Provisions and Crop Provisions for
the following crops: (1) Corn, (2) Cotton, (3) Forage, (4) Grain
Sorghum, (5) Soybean, and (6) Wheat. The new ARPI product will provide
the same types of coverage currently provided in both GRIP and GRP.
ARPI will consist of one Basic Provision and one set of Crop
Provisions. ARPI will contain three insurance plans: Area Yield
Protection, Area Revenue Protection and Area Revenue Protection with
the Harvest Price Exclusion.
Area Yield Protection will provide the same coverage currently
provided in the GRP provisions. Area Revenue Protection will provide
the same coverage previously provided prior to 2011 under the GRIP
provisions with the Harvest Revenue Option type or in 2011 as GRIP
Revenue Protection. Area Revenue Protection with the Harvest Price
Exclusion will provide the same coverage provided prior to 2011 under
the GRIP provisions for the type No Type Specified or in 2011 as GRIP
Revenue with the Harvest Price Exclusion.
2. Pricing
ARPI will use a document called the Commodity Exchange Price
Provisions (CEPP-ARPI) to show the method used to price each crop. The
CEPP-ARPI will be used for all three insurance plans including Area
Yield Protection and prices will generally be based on the commodity
markets. FCIC proposes that the CEPP-ARPI will be available for public
inspection on RMA's Web site at http://www.rma.usda.gov/, or a
successor Web site, by the contract change date. The CEPP-ARPI will not
be published in the Code of Federal Regulations. However, FCIC would
like comments on the CEPP-ARPI and, therefore, has included its text
below.
COMMODITY EXCHANGE PRICE PROVISIONS--AREA RISK PROTECTION INSURANCE
(CEPP-ARPI) 2013 AND SUCCEEDING CROP YEARS
Section I: General Information
The CEPP-ARPI applies only to crops where choices of protection
include both area revenue protection and area yield protection.
1. General Definitions
Additional daily settlement price--A price used in the establishment
of the average daily settlement price when at least 8 daily
settlement prices for the contract specified in the applicable
insured crop's projected price or harvest price definition are not
available. The prices are generally obtained from the contract
immediately prior to the contract specified in the applicable
insured crop's projected price or harvest price definition, or
another contract as determined by RMA. The price must represent the
same crop year as the insured crop. Additional daily settlement
prices will be those closest to the dates where daily settlement
prices for the contract specified in the applicable insured crop's
projected price or harvest price definition, as applicable, do not
qualify or are missing. If enough additional daily settlement prices
are not available to meet the minimum of 8 prices for the applicable
crop year, the applicable projected price and harvest price will be
established in accordance with section I.2(c), 2(e)(1), or 2(f).
Average daily settlement price--The sum of all daily settlement
prices divided by the total number of full active trading days
included in the sum. The average must include a minimum of 8 prices
established on full active trading days. If 8 qualifying prices are
not available for the applicable contract month specified for the
insured crop in section II of the CEPP-ARPI, additional daily
settlement prices will be used to establish the average daily
settlement price until 8 qualifying prices are available. If enough
additional daily settlement prices are not available to meet the
minimum of 8 prices for the applicable crop year, the applicable
projected price and harvest price will be established in accordance
with section I.2(c), 2(e)(1), or 2(f).
CBOT--Chicago Board of Trade.
CEPP-ARPI--The Commodity Exchange Price Provisions applicable to the
Area Risk Protection Insurance plan.
Daily settlement price--A price established in accordance with the
CEPP-ARPI which is available for the crop at the end of a full
active trading day.
Full active trading day--For all exchanges, any day on which a
minimum of 25 open interest contracts for the relevant futures
contract are available.
Harvest Price--See the definition in section II.
ICE--Inter Continental Exchange.
KCBT--Kansas City Board of Trade.
MGE--Minneapolis Grain Exchange.
NASS--The National Agricultural Statistics Service, an agency within
USDA.
Projected Price--See the definition in section II.
USDA--United States Department of Agriculture.
2. Price Determinations
(a) In accordance with section 1 of the Area Risk Protection
Insurance Basic Provisions, these Commodity Exchange Price
Provisions (CEPP-ARPI) specify how and when the projected price and
harvest price will be determined by crop.
(1) These provisions are a part of the policy for all crops for
which area revenue
[[Page 44203]]
protection is available, regardless of whether the producer elects
area revenue protection or area yield protection for such crops.
(2) This document includes the information necessary to derive
the projected price and the harvest price for the insured crop, as
applicable.
(b) The CEPP-ARPI will be used to determine:
(1) The projected price and harvest price for insured crops for
which area revenue protection is selected; or
(2) The projected price for insured crops for which area yield
protection is selected.
(c) RMA reserves the right to omit any daily settlement price or
additional daily settlement price if market conditions are different
than those used to rate or price area revenue protection.
(d) RMA reserves the right to set the projected price for area
yield protection.
(e) If the projected price cannot be calculated by the
procedures outlined in these CEPP-ARPI:
(1) No area revenue protection will be available;
(2) If area revenue protection is not available, notice will be
provided on RMA's Web site at http://www.rma.usda.gov/ by the date
specified in the applicable projected price definition;
(3) Area yield protection will continue to be available; and
(4) The projected price for area yield protection will be
determined by RMA and released by the date specified in the
applicable projected price definition in the CEPP-ARPI.
(f) If the harvest price cannot be calculated by the procedures
outlined in this CEPP-ARPI, the harvest price will be determined by
RMA.
(g) The harvest price will not be greater than the projected
price multiplied by 2.00.
(h) Projected prices, harvest prices and associated factors and
adjustments for all crops can be found at http://www.rma.usda.gov/tools/pricediscovery.html.
Section II: Price Definitions by Crop
Corn (0041)
Grain Type
Projected price--The harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the table below, rounded to the
nearest whole cent. The projected price will be released no later
than three business days following the end of the projected price
discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the table below, rounded to the
nearest whole cent. The harvest price will be released no later than
three business days following the end of the harvest price discovery
period
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Corn--March 15 sales closing date Projected price discovery period Harvest price discovery period
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Commodity Contract
State exchange commodity Contract month Beginning date Ending date * Beginning date Ending date
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Illinois........................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Indiana......................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Iowa............................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Michigan........................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Nov 1.................. Nov 30.
Minnesota....................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Missouri........................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Nebraska........................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Ohio............................ CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
South Dakota.................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Wisconsin....................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
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* February 28 Ending Date is extended to February 29 in leap years.
Cotton (0021)
Projected price--The harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the tables below, rounded to
the nearest whole cent. The projected price will be released no
later than three business days following the end of the projected
price discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the tables below, rounded to the
nearest whole cent. The harvest price will be released no later than
three business days following the end of the harvest price discovery
period.
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Cotton--February 28 sales closing date Projected price discovery period Harvest price discovery period
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Commodity Contract
State exchange commodity Contract month Beginning date Ending date Beginning date Ending date
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Arkansas........................ ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
Georgia......................... ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
Louisiana....................... ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
Mississippi..................... ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
North Carolina.................. ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
Texas........................... ICE............... Cotton............ December.......... Jan 15................. Feb 14................. Oct 1.................. Oct 31.
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Cotton--March 15 sales closing date Projected price discovery period Harvest price discovery period
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Commodity Contract
State exchange commodity Contract month Beginning date Ending date * Beginning date Ending date
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Missouri........................ ICE............... Cotton............ December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Tennessee....................... ICE............... Cotton............ December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
Texas........................... ICE............... Cotton............ December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31.
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* February 28 Ending Date is extended to February 29 in leap years.
[[Page 44204]]
Forage (0033)
Projected price--The harvest year's price as set by RMA.
Grain Sorghum (0051)
Projected price--The harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the tables below, rounded to
the nearest whole cent, multiplied by the price percentage
relationship between grain sorghum and corn, as determined by RMA,
and rounded to the nearest whole cent. The price percentage
relationship will be available in the Price Discovery Reporting
application located at http://www.rma.usda.gov. The projected price
will be released no later than three business days following the end
of the projected price discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the tables below, rounded to the
nearest whole cent, multiplied by the price percentage relationship
between grain sorghum and corn, as determined by RMA, and rounded to
the nearest whole cent. The price percentage relationship will be
available in the Price Discovery Reporting application located at
http://www.rma.usda.gov. The harvest price will be released no later
than three business days following the end of the harvest price
discovery period.
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Grain Sorghum--February 15 sales closing date Projected price discovery period Harvest price discovery period
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State Commodity exchange Contract commodity Contract month Beginning date Ending date Beginning date Ending date
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Texas........................... CBOT.............. Corn.............. December.......... Jan 1.................. Jan 31................. Sep 1.................. Sep 30
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Grain Sorghum--March 15 sales closing date Projected price discovery period Harvest price discovery period
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State Commodity exchange Contract commodity Contract month Beginning date Ending date* Beginning date Ending date
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Kansas.......................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Texas........................... CBOT.............. Corn.............. December.......... Feb 1.................. Feb 28................. Sep 1.................. Sep 30
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* February 28 Ending Date is extended to February 29 in leap years.
Soybeans (0081)
Projected price--The harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the table below, rounded to the
nearest whole cent. The projected price will be released no later
than three business days following the end of the projected price
discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the table below, rounded to the
nearest whole cent. The harvest price will be released no later than
three business days following the end of the harvest price discovery
period.
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Soybeans--March 15 sales closing date Projected price discovery period Harvest price discovery period
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
State Commodity exchange Contract commodity Contract month Beginning date Ending date* Beginning date Ending date
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Illinois........................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Indiana......................... CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Iowa............................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Michigan........................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Minnesota....................... CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Missouri........................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Nebraska........................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Ohio............................ CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
South Dakota.................... CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
Wisconsin....................... CBOT.............. Soybeans.......... November.......... Feb 1.................. Feb 28................. Oct 1.................. Oct 31
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* February 28 Ending Date is extended to February 29 in leap years.
Wheat (0011)
Wheat (September 30 Sales Closing Date)
Projected price--The pre-harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the table below, rounded to the
nearest whole cent. The projected price will be released no later
than three business days following the end of the projected price
discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the table below, rounded to the
nearest whole cent. The harvest price will be released no later than
three business days following the end of the harvest price discovery
period.
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Wheat--September 30 sales closing date Projected price discovery period Harvest price discovery period
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Contract commodity
State Commodity exchange # Contract month Beginning date Ending date* Beginning date Ending date
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Arkansas........................ CBOT.............. Wheat............. July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
Colorado........................ KCBT.............. HRW Wheat......... September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Illinois........................ CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Indiana......................... CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Kansas.......................... KCBT.............. HRW Wheat......... July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
[[Page 44205]]
Kentucky........................ CBOT.............. Wheat............. July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
Maryland........................ CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Michigan........................ CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Mississippi..................... CBOT.............. Wheat............. July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
Missouri........................ CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Montana......................... KCBT.............. HRW Wheat......... September......... Aug 15................. Sep 14................. Aug 1.................. Aug 31
Nebraska........................ KCBT.............. HRW Wheat......... September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
North Carolina.................. CBOT.............. Wheat............. July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
Ohio............................ CBOT.............. Wheat............. September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Oklahoma........................ KCBT.............. HRW Wheat......... July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
South Dakota.................... KCBT.............. HRW Wheat......... September......... Aug 15................. Sep 14................. Jul 1.................. Jul 31
Tennessee....................... CBOT.............. Wheat............. July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
Texas........................... KCBT.............. HRW Wheat......... July.............. Aug 15................. Sep 14................. Jun 1.................. Jun 30
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# Hard Red Winter (HRW)
Wheat (0011)
Wheat (March 15 Sales Closing Date)
Projected price--The harvest year's average daily settlement
price for the projected price discovery period for the harvest
year's futures contract, as shown in the table below, rounded to the
nearest whole cent. The projected price will be released no later
than three business days following the end of the projected price
discovery period.
Harvest price--The harvest year's average daily settlement price
for the harvest price discovery period for the harvest year's
futures contract, as shown in the table below, rounded to the
nearest whole cent. The harvest price will be released no later than
three business days following the end of the harvest price discovery
period.
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Wheat--March 15 sales closing date Projected price discovery period Harvest price discovery period
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Contract commodity
State Commodity exchange # Contract month Beginning date Ending date* Beginning date Ending date
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Minnesota....................... MGE............... HRS Wheat......... September......... Feb 1.................. Feb 28................. Aug 1.................. Aug 31
Montana......................... MGE............... HRS Wheat......... September......... Feb 1.................. Feb 28................. Aug 1.................. Aug 31
North Dakota.................... MGE............... HRS Wheat......... September......... Feb 1.................. Feb 28................. Aug 1.................. Aug 31
South Dakota.................... MGE............... HRS Wheat......... September......... Feb 1.................. Feb 28................. Aug 1.................. Aug 31
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# Hard Red Spring (HRS).
* February 28 Ending Date is extended to February 29 in leap years.
3. Barley and Peanuts
While the GRP policy covered both barley and peanuts, no coverage
had been provided for barley since 1997 and peanut coverage was
discontinued in December 2009 due to little business and changes in the
peanut industry. FCIC proposes that neither of these crops will be
covered under ARPI.
4. Insuring Other Crops--No Written Agreements
FCIC proposes keeping the ARPI policy simple, saving time for
producers, insurance providers, and RMA, and improving reporting by
crop, by not including written agreements in the proposed policy. Since
this product uses an area based yield, rates and prices, if additional
crops such as hybrid seed corn and hybrid sorghum seed are determined
to be insurable under the ARPI Crop Provisions, they will simply be
coded as insurable crops and will be insured using the corn or grain
sorghum prices, rates, and yields. The Crop Provisions have been
changed to reflect this and the actuarial documents would show hybrid
seed corn and hybrid sorghum seed as crops. The proposed policy retains
flexibility to determine the insured crops on a yearly basis but it is
not FCIC's intention to include popcorn or sweet corn as insurable
under ARPI. Insuring crops that are not basic ARPI crops by coding them
with their actual crop code will more accurately label the insured data
that is necessary for producers to obtain benefits under some other
USDA programs. Because these crops are insured with the base crop's
yields, rates and prices, it is unnecessary to burden the producer's,
insurance provider's, and RMA's time to create written agreements.
5. Calculations
In the GRP and GRIP policies the maximum protection per acre was
calculated by multiplying the expected county yield by the price and by
a 150 percent multiplier. The multiplier served two purposes: (1)
Allowing producers with above average yields to purchase a higher level
of liability; and (2) Accounting for the decreased variability of
county-average yields as compared to individual yields.
FCIC proposes to keep the multiplier in ARPI but it is now called
the ``protection factor'' and serves only the first purpose--allowing
producers with above average yields to purchase a higher level of
liability. Additionally, the maximum factor is reduced from 150 percent
down to a maximum of 120 percent. With respect to the decreased
variability of county-average yields as compared to individual yields,
RMA is proposing to include a new ``total loss factor.'' This factor
allows the entire loss to be paid when the county has a loss equal to
the factor. For example, if the total loss factor is .82, and there is
a
[[Page 44206]]
county loss of 82 percent, a complete indemnity would be paid to the
producer. Therefore, this factor will be applied when the final county
yield is established instead of when the amount of insurance is
established. The combination of reducing the protection factor to 120
and adding a total loss factor allows for ARPI coverage to not appear
over-stated but also recognizes, at certain thresholds, a total loss is
likely to have occurred and ultimately results in overall coverage with
respect to premium and indemnities to be similar to that previously
provided by GRP and GRIP.
Under ARPI, the actuarial documents will provide the expected
county yield and a projected price. However, the producer will be able
to choose a protection factor, from the actuarial documents. Initially
the protection factor is anticipated to be set between 0.8-1.2. These
three numbers are multiplied together to arrive at a dollar amount of
insurance per acre. These proposed changes allow the producer to
evaluate the actual county averages and to adjust these numbers for
their individual farm.
6. Production Record
FCIC has received considerable input from producers and others
regarding the establishment and maintenance of area based county crop
insurance programs. Sometimes, there are insufficient data to support
area based programs, especially in relying on sufficient and credible
data to establish the expected county yield. In addition, if
insufficient data are reported to NASS then the final county yields can
be questioned or not made publically available. Many producers have
advised that they believe FCIC may possess the most credible data
available, given significant levels of program participation, and that
FCIC should rely more heavily upon its own data, especially in
providing producer information as applicable to other USDA programs
like the Supplemental Agricultural Disaster Assistance program.
Further, ARPI is available for crops covered by other plans of
insurance where the reporting of production data is mandatory and
participation in such programs is generally higher than in ARPI.
In response, FCIC proposes that expected county yields and final
county yields may, at the election of FCIC, be based on crop insurance
data, NASS data, other USDA data or other data sources by crop on a
nationwide basis. However, FCIC also proposes that if the data source
used nationally is not available or credible for specific counties for
any given crop year, crop insurance data, NASS data, other USDA data or
other data sources may be used for those specific counties. Expected
county yields will be released on a crop, type and practice basis, as
shown on the Special Provisions. If an expected county yield is not
published in the Special Provisions for a particular crop, type and
practice, coverage will not be available under this policy.
Further, FCIC proposes to require producers to submit an annual
production report by a date specified in the Special Provisions. This
will allow FCIC to collect additional information to ensure that the
data used to calculate the expected yield for the county is the most
accurate, credible data available. Many producers already maintain this
data. Given the importance of this collection of information to the
maintenance and integrity of the program, FCIC proposes that failure to
submit this report will result in the insured's yield for the crop year
being set equal to the expected county yield for purposes of computing
the final county yield and no indemnity will be paid to the insured for
any area-based loss, either yield or price.
List of Subjects in 7 CFR Part 407
Crop insurance, Reporting and recordkeeping requirements.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to revise 7 CFR part 407, Group Risk
Plan of Insurance Regulations effective for the 2013 and succeeding
crop years, to read as follows:
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
Sec.
407.1 Applicability.
407.2 Availability of Federal crop insurance.
407.3 Premium rates, amounts of protection, and coverage levels.
407.4 OMB control numbers.
407.5 Creditors.
407.6 [Reserved]
407.7 The contract.
407.8 The application and policy.
407.9 Area risk protection insurance policy.
407.10 [Reserved]
407.11 Area risk protection insurance for corn.
407.12 Area risk protection insurance for cotton.
407.13 Area risk protection insurance for forage.
407.14 [Reserved]
407.15 Area risk protection insurance for grain sorghum.
407.16 Area risk protection insurance for soybean.
407.17 Area risk protection insurance for wheat.
1. The authority citation for 7 CFR part 407 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
2. Revise Sec. Sec. 407.1 through 407.17 as follows:
Sec. 407.1 Applicability.
The provisions of this part are applicable only to those crops for
which a Crop Provision is contained in this part and the crop years
specified.
Sec. 407.2 Availability of Federal crop insurance.
(a) Insurance shall be offered under the provisions of this part on
the insured crop in counties within the limits prescribed by and in
accordance with the provisions of the Federal Crop Insurance Act (7
U.S.C. 1501-1524) (Act). The crops and counties shall be designated by
the Manager of the Federal Crop Insurance Corporation (FCIC) from those
approved by the Board of Directors of FCIC.
(b) The insurance will be offered through insurance providers
reinsured by FCIC under the same terms and conditions as the contract
contained in this part. These contracts will be clearly identified as
being reinsured by FCIC. Additionally, the contract contained in this
part may be offered directly to producers through agents of the United
States Department of Agriculture. Those contracts will be specifically
identified as being offered by FCIC.
(c) No person may have in force more than one insurance policy
issued or reinsured by FCIC on the same crop for the same crop year, in
the same county, unless specifically approved in writing by FCIC.
(d) Except as specified in paragraph (c) of this section, if a
person has more than one contract authorized under the Act that
provides coverage for the same loss on the same crop for the same crop
year in the same county, all such contracts shall be voided for that
crop year and the person will be liable for the premium on all
contracts, unless the person can show to the satisfaction of the FCIC
that the multiple contracts of insurance were without the fault of the
person.
(1) If the multiple contracts of insurance are shown to be without
the fault of the person and:
(i) One contract is an additional coverage policy and the other
contract is a Catastrophic Risk Protection policy, the additional
coverage policy will apply if both policies are with the same insurance
provider, or if not, both insurance providers agree, and the
Catastrophic Risk Protection policy will
[[Page 44207]]
be canceled (If the insurance providers do not agree, the policy with
the earliest date of application will be in force and the other
contract will be canceled); or
(ii) Both contracts are additional coverage policies or both are
Catastrophic Risk Protection policies, the contract with the earliest
signature date on the application will be valid and the other contract
on that crop in the county for that crop year will be canceled, unless
both policies are with the same insurance provider and the insurance
provider agrees otherwise or both policies are with different insurance
providers and both insurance providers agree otherwise.
(2) No liability for indemnity or premium will attach to the
contracts voided as specified in paragraphs (d)(1)(i) and (ii) of this
section.
(e) The person must repay all amounts received in violation of this
section with interest at the rate contained in the contract (see Sec.
407.9, section 22).
(f) A person whose contract with FCIC or with an insurance provider
reinsured by FCIC under the Act has been terminated, voided, or
canceled because of violation of the terms of the contract is not
eligible to obtain crop insurance under the Act with FCIC or with an
insurance provider reinsured by FCIC unless the person can show that
the termination was improper and should not result in subsequent
ineligibility.
(g) All applicants for insurance under the Act must advise the
insurance provider, in writing at the time of application, of any
previous applications for insurance or contracts of insurance under the
Act within the last 5 years and the present status of any such
applications or insurance.
Sec. 407.3 Premium rates, amounts of protection, and coverage levels.
(a) The Manager of FCIC shall establish premium rates, amounts of
protection, and coverage levels for the insured crop that will be
included in the actuarial documents on file in the agent's office.
Premium rates, amounts of protection, and coverage levels may be
changed from year to year in accordance with the terms of the policy.
(b) At the time the application for insurance is made, the person
must elect an amount of protection and a coverage level from among
those contained in the actuarial documents for the crop year.
Sec. 407.4 OMB control numbers.
The information collection activity associated with this rule has
been submitted to OMB for their review and approval.
Sec. 407.5 Creditors.
An interest of a person in an insured crop existing by virtue of a
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary
transfer or other similar interest shall not entitle the holder of the
interest to any benefit under the contract.
Sec. 407.6 [Reserved]
Sec. 407.7 The contract.
(a) The insurance contract shall become effective upon the
acceptance by FCIC or the approved provider of a complete, duly
executed application for insurance on a form prescribed or approved by
FCIC.
(b) The contract shall consist of the accepted application, Area
Risk Protection Insurance Basic Provisions, Crop Provisions, Special
Provisions, Actuarial Documents, and any amendments, endorsements, or
options thereto.
(c) Changes made in the contract shall not affect its continuity
from year to year.
(d) No indemnity shall be paid unless the person complies with all
terms and conditions of the contract.
(e) The forms required under this part and by the contract are
available at the office of the insurance provider, or such other
location as specified by FCIC, if applicable.
Sec. 407.8 The application and policy.
(a) Application for insurance, on a form prescribed or approved by
FCIC, must be made by any person who wishes to participate in the
program in order to cover such person's share in the insured crop as
landlord, owner-operator, tenant, or other crop ownership interest.
(1) No other person's interest in the crop may be insured under the
application.
(2) To obtain coverage, the application must be submitted to the
insurance provider on or before the applicable sales closing date on
file in the insurance provider's local office.
(b) FCIC or the insurance provider may reject, no longer accept
applications, or cancel existing insurance contracts upon the FCIC's
determination that the insurance risk is excessive. Such determination
must be made not later than 15 days before the cancellation date for
the crop and may be made on a farm, area, county, state, or crop basis.
Sec. 407.9 Area risk protection insurance policy.
This insurance is available for the 2013 and succeeding years.
[FCIC policies]
Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance Policy
[Reinsured policies]
(Appropriate title for insurance provider)
(This is a continuous policy. Refer to Section 2.)
[FCIC policies]
Area Risk Protection Insurance (ARPI) provides protection
against widespread loss of revenue or yield in a county. Individual
farm revenues and yields are not considered under ARPI and it is
possible that your individual farm may experience reduced revenue or
reduced yield and not receive an indemnity under ARPI.
This is an insurance policy issued by the Federal Crop Insurance
Corporation (FCIC), a United States government agency, under the
provisions of the Federal Crop Insurance Act (Act) (7 U.S.C. 1501-
1524.). All provisions of the policy and rights and responsibilities
of the parties are specifically subject to the Act. The provisions
of the policy may not be waived or modified in any way by us, your
insurance agent or any employee of USDA. Procedures (handbooks,
underwriting rules, manuals, memoranda, and bulletins), issued by us
and published on the Risk Management Agency's (RMA) Web site at
http://www.rma.usda.gov/ or a successor Web site, will be used in
the administration of this policy, including the adjustment of any
loss or claim submitted hereunder. Throughout this policy, ``you''
and ``your'' refer to the named insured shown on the accepted
application and ``we,'' ``us,'' and ``our'' refer to FCIC. Unless
the context indicates otherwise, the use of the plural form of a
word includes the singular and the singular form of the word
includes the plural.
AGREEMENT TO INSURE: In return for the payment of premium, and
subject to all of the provisions of this policy, we agree with you
to provide the insurance as stated in this policy. If there is a
conflict between the Act, the regulations published at 7 CFR chapter
IV, and the procedures as issued by us, the order of priority is:
(1) The Act; (2) the regulations; and (3) the procedures as issued
by us, with (1) controlling (2), etc. If there is a conflict between
the policy provisions published at 7 CFR part 407 and the
administrative regulations published at 7 CFR part 400, the policy
provisions published at 7 CFR part 407 control. The order of
priority among the policy provisions is: (1) the Catastrophic Risk
Protection Endorsement, as applicable; (2) the Special Provisions;
(3) any other Actuarial Documents except the Special Provisions, (4)
the applicable Commodity Exchange Price Provisions; (5) the Crop
Provisions; and (6) these Basic Provisions, with (1) controlling
(2), etc.
[Reinsured policies]
Area Risk Protection Insurance (ARPI) provides protection
against widespread loss of revenue or yield in a county. Individual
farm revenues and yields are not considered under ARPI and it is
possible that your individual farm may experience reduced revenue or
reduced yield and not receive an indemnity under ARPI.
[[Page 44208]]
This insurance policy is reinsured by the Federal Crop Insurance
Corporation (FCIC) under the provisions of the Federal Crop
Insurance Act (Act) (7 U.S.C. 1501-1524.). All provisions of the
policy and rights and responsibilities of the parties are
specifically subject to the Act. The provisions of the policy may
not be waived or varied in any way by us, our insurance agent or any
other contractor or employee of ours or any employee of USDA. We
will use the procedures (handbooks, underwriting rules, manuals,
memoranda, and bulletins), as issued by FCIC and published on the
Risk Management Agency (RMA's) Web site at http://www.rma.usda.gov/
or a successor Web site, in the administration of this policy,
including the adjustment of any loss or claim submitted hereunder.
In the event that we cannot pay your loss because we are insolvent
or are otherwise unable to perform our duties under our reinsurance
agreement with FCIC, FCIC will become your insurer, make all
decisions in accordance with the provisions of this policy,
including any loss payments, and be responsible for any amounts
owed. No state guarantee fund will be liable for your loss.
Throughout this policy, ``you'' and ``your'' refer to the named
insured shown on the accepted application and ``we,'' ``us,'' and
``our'' refer to the insurance company providing insurance. Unless
the context indicates otherwise, the use of the plural form of a
word includes the singular and the singular form of the word
includes the plural.
AGREEMENT TO INSURE: In return for the payment of premium, and
subject to all of the provisions of this policy, we agree with you
to provide the insurance as stated in this policy. If there is a
conflict between the Act, the regulations published at 7 CFR chapter
IV, and the procedures as issued by FCIC, the order of priority is:
(1) The Act; (2) the regulations; and (3) the procedures as issued
by FCIC, with (1) controlling (2), etc. If there is a conflict
between the policy provisions published at 7 CFR part 407 and the
administrative regulations published at 7 CFR part 400, the policy
provisions published at 7 CFR part 407 control. The order of
priority among the policy provisions is: (1) the Catastrophic Risk
Protection Endorsement, as applicable; (2) the Special Provisions;
(3) any other Actuarial Documents except the Special Provisions, (4)
the applicable Commodity Exchange Price Provisions; (5) the Crop
Provisions; and (6) these Basic Provisions, with (1) controlling
(2), etc.
Terms and Conditions
Basic Provisions
1. Definitions
Abandon. Failure to continue to care for the crop, or providing
care so insignificant as to provide no benefit to the crop.
Acreage report. A report required by section 8 of these Basic
Provisions that contains, in addition to other required information,
your report of your share of all acreage of an insured crop in the
county, whether insurable or not insurable.
Acreage reporting date. The date contained in the Special
Provisions by which you are required to submit your acreage report.
Act. Federal Crop Insurance Act (7 U.S.C. 1501-1524).
Actuarial documents. The information for the crop year,
including Special Provisions, which is available for public
inspection in your agent's office and published on RMA's Web site,
http://www.rma.usda.gov/, and which shows available plans of
insurance, coverage levels, information needed to determine amounts
of insurance, prices, premium rates, premium adjustment percentages,
practices, particular types or varieties of the insurable crop,
insurable acreage, and other related information regarding crop
insurance in the county.
Additional coverage. A level of coverage greater than
catastrophic risk protection.
Administrative fee. An amount you must pay for catastrophic risk
protection, and additional coverage for each crop year as specified
in section 7 of these provisions, the Catastrophic Risk Protection
Endorsement, or the actuarial documents, as applicable.
Agricultural experts. Persons who are employed by the
Cooperative Extension System or the agricultural departments of
universities, or other persons approved by FCIC, whose research or
occupation is related to the specific crop or practice for which
such expertise is sought. If the person has a personal or financial
interest in you or the crop, they will not qualify as an
agricultural expert. For example, contracting with the person for
consulting would be considered to have a financial interest and a
person who is a neighbor would be considered to have a personal
interest.
Application. The form required to be completed by you and
accepted by us before insurance coverage will commence. This form
must be completed and filed in your agent's office not later than
the sales closing date of the initial insurance year for each crop
for which insurance coverage is requested.
Area. The general geographical region in which the insured
acreage is located, designated generally as a county but may be a
smaller or larger geographical area as specified in the actuarial
documents.
Area Revenue Protection. A plan of insurance that provides
protection against loss of revenue due to a county level production
loss, a price decline, or a combination of both. This plan also
includes upside harvest price protection, which increases your
policy protection at the end of the insurance period if the harvest
price is greater than the projected price and if there is a
production loss.
Area Revenue Protection with the Harvest Price Exclusion. A plan
of insurance that provides protection against loss of revenue due to
a county level production loss, price decline, or a combination of
both. This plan does not provide upside harvest price protection.
Area Risk Protection Insurance (ARPI). Insurance coverage based
on an area, not an individual, yield or revenue amount. There are
three plans of insurance available under ARPI: Area Revenue
Protection, Area Revenue Protection with the Harvest Price
Exclusion, and Area Yield Protection.
Area Yield Protection. A plan of insurance that provides
protection against loss of yield due to a county level production
loss. This plan does not provide revenue protection or upside
harvest price protection.
Assignment of indemnity. A transfer of policy rights, made on
our form, and effective when approved in writing by us. It is the
arrangement whereby you assign your right to an indemnity payment
for the crop year but such assignment can only be made to creditors
or other persons to whom you have a financial debt or other
pecuniary obligation.
Buffer zone. A parcel of land, as designated in your organic
plan, that separates agricultural commodities grown under organic
practices from agricultural commodities grown under non-organic
practices, and used to minimize the possibility of unintended
contact by prohibited substances or organisms.
Cancellation date. The calendar date specified in the Crop
Provisions on which coverage for the crop will automatically renew
unless canceled in writing by either you or us or terminated in
accordance with the policy terms.
Catastrophic risk protection (CAT). Coverage equivalent to 65
percent of yield coverage and 45 percent of price coverage, unless
otherwise specified in the Special Provisions, and is the minimum
level of coverage offered by FCIC, as specified in the actuarial
documents for the crop, type, and practice. Catastrophic risk
protection is not available with Area Revenue Protection or Area
Revenue Protection with the Harvest Price Exclusion.
Catastrophic Risk Protection Endorsement. The part of the crop
insurance policy that contains provisions of insurance that are
specific to catastrophic risk protection.
Certified organic acreage. Acreage in the certified organic
farming operation that has been certified by a certifying agent as
conforming to organic standards in accordance with 7 CFR part 205.
Certifying agent. A private or governmental entity accredited by
the USDA Secretary of Agriculture for the purpose of certifying a
production, processing or handling operation as organic.
Code of Federal Regulations (CFR). The codification of general
rules published in the Federal Register by the Executive departments
and agencies of the Federal Government. Rules published in the
Federal Register by FCIC are contained in 7 CFR chapter IV. The full
text of the CFR is available in electronic format at http://www.access.gpo.gov/ or a successor Web site.
Commodity. Any crop or other agricultural commodity produced,
regardless of whether or not it is insurable.
Commodity Exchange Price Provisions (CEPP-ARPI). A part of the
policy that is used for crops for which ARPI is available, unless
otherwise specified. This document includes the information
necessary to derive the projected and harvest price for the insured
crop, as applicable.
Consent. Approval in writing by us allowing you to take a
specific action.
Contract change date. The calendar date, as specified in the
Crop Provisions, by which changes to the policy, if any, will be
made available in accordance with section 3 of these Basic
Provisions.
[[Page 44209]]
Contract. (See ``policy'').
Conventional farming practice. A system or process that is
necessary to produce an agricultural commodity, excluding organic
farming practices.
Cooperative Extension System. A nationwide network consisting of
a state office located at each state's land-grant university, and
local or regional offices. These offices are staffed by one or more
agricultural experts who work in cooperation with the National
Institute of Food and Agriculture, and who provide information to
agricultural producers and others.
County. Any county, parish, political subdivision of a state, or
other area specified on the actuarial documents shown on your
accepted application.
Cover crop. A crop generally recognized by agricultural experts
as agronomically sound for the area for erosion control or other
purposes related to conservation or soil improvement. A cover crop
may be considered to be a second crop (see the definition of
``second crop'').
Credible. Data of sufficient quality and quantity to be
representative of the county.
Crop Provisions. The part of the policy that contains the
specific provisions of insurance for each insured crop.
Crop year. The period within which the insured crop is normally
grown and designated by the calendar year in which the crop is
normally harvested.
Days. Calendar days.
Delinquent debt. Has the same meaning as the term defined in 7
CFR part 400, subpart U.
Disinterested third party. A person: (1) That does not have any
familial relationship (parents, brothers, sisters, children, spouse,
grandchildren, aunts, uncles, nieces, nephews, first cousins, or
grandparents, related by blood, adoption or marriage, are considered
to have a familial relationship) with you; or (2) Who will not
benefit, directly or indirectly from the sale of the insured crop.
Dollar amount of insurance per acre. The guarantee, calculated
by multiplying the expected county yield by the projected price and
by the protection factor. Your dollar amount of insurance per acre
is shown on your Summary of Protection. Following release of the
harvest price, your dollar amount of insurance may increase if Area
Revenue Protection was purchased and the harvest price is greater
than the projected price.
Double crop. Producing two or more crops for harvest on the same
acreage in the same crop year.
Expected county revenue. The expected county yield multiplied by
the projected price.
Expected county yield. The yield contained in the actuarial
documents on which your coverage for the crop year is based.
FCIC. The Federal Crop Insurance Corporation, a wholly owned
corporation within USDA.
Final county revenue. The revenue determined by multiplying the
final county yield by the harvest price with the result used to
determine whether an indemnity will be due for Area Revenue
Protection and Area Revenue Protection with the Harvest Price
Exclusion, and released by RMA at a time specified in the Crop
Provisions.
Final county yield. The yield for each insured crop, type, and
practice, used to determine whether an indemnity will be due for
Area Yield Protection, and released by RMA at a time specified in
the Crop Provisions.
Final planting date. The date contained in the Special
Provisions for the insured crop by which the crop must be planted in
order to be insured. For ARPI, this date is generally consistent
with the last day of the late planting period under other reinsured
policies for the same crop.
Final policy protection. For Area Revenue Protection only, the
amount calculated in accordance with section 12(e).
First insured crop. With respect to a single crop year and any
specific crop acreage, the first instance that an agricultural
commodity is planted for harvest or prevented from being planted and
is insured under the authority of the Act. For example, if winter
wheat that is not insured is planted on acreage that is later
planted to soybeans that are insured, the first insured crop would
be soybeans. If the winter wheat was insured, it would be the first
insured crop.
FSA. The Farm Service Agency, an agency of the USDA, or a
successor agency.
FSA serial farm number. The number assigned to the farm by the
local FSA office.
Generally recognized. When agricultural experts or organic
agricultural experts, as applicable, are aware of the production
method or practice and there is no genuine dispute regarding whether
the production method or practice allows the crop to make normal
progress toward maturity.
Good farming practices. The production methods utilized to
produce the insured crop, type, and practice as shown in the Special
Provisions and allow it to make normal progress toward maturity,
which are: (1) for conventional or sustainable farming practices,
those generally recognized by agricultural experts for the area; or
(2) for organic farming practices, those generally recognized by
organic agricultural experts for the area or contained in the
organic plan. We may, or you may request us to, contact FCIC to
determine whether or not production methods will be considered to be
``good farming practices.''
Harvest price. A price determined in accordance with the CEPP-
ARPI and used to determine the final county revenue.
Household. A domestic establishment including the members of a
family (parents, brothers, sisters, children, spouse, grandchildren,
aunts, uncles, nieces, nephews, first cousins, or grandparents,
related by blood, adoption or marriage, are considered to be family
members) and others who live under the same roof.
Insurable interest. When the person has a financial risk of loss
in the insured crop as an owner, operator, or tenant at the time
insurance attaches.
Insurable loss. Damage for which coverage is provided under the
terms of your policy, and for which you accept an indemnity payment.
Insurance Provider (insurance provider). A private insurance
company that has been approved by FCIC to provide insurance coverage
to producers participating in programs authorized by the Act. We are
an insurance provider.
Insured. The named person as shown on the application accepted
by us. This term does not extend to any other person having an
insurable interest in the crop (e.g., a partnership, landlord, or
any other person) unless specifically indicated on the accepted
application.
Insured crop. The crop in the county for which coverage is
available under your policy as shown on the application accepted by
us.
Liability. (See ``Policy protection'').
Limited resource farmer. Has the same meaning as the term
defined by USDA at http://www.lrftool.sc.egov.usda.gov/LRP-D.htm).
NASS. National Agricultural Statistics Service, an agency within
USDA, or its successor, that publishes the official United States
Government yield estimates.
Native sod. Acreage that has no record of being tilled
(determined in accordance with FSA or other verifiable records
acceptable to us) for the production of an annual crop on or before
May 22, 2008, and on which the plant cover is composed principally
of native grasses, grass-like plants, forbs, or shrubs suitable for
grazing and browsing.
Offset. The act of deducting one amount from another amount.
Organic agricultural experts. Persons who are employed by the
following organizations: Appropriate Technology Transfer for Rural
Areas, Sustainable Agriculture Research and Education or the
Cooperative Extension System, the agricultural departments of
universities, or other persons approved by FCIC, whose research or
occupation is related to the specific organic crop or practice for
which such expertise is sought.
Organic crop. An agricultural commodity that is organically
produced consistent with section 2103 of the Organic Foods Act of
1990 (7 U.S.C. 6502).
Organic farming practice. A system of plant production practices
used to produce an organic crop that is approved by a certifying
agent in accordance with 7 CFR part 205, or a successor regulation.
Organic plan. A written plan, in accordance with the National
Organic Program published in 7 CFR part 205, or a successor
regulation, that describes the organic farming practices that you
and a certifying agent agree upon annually or at such other times as
prescribed by the certifying agent.
Organic standards. Standards in accordance with the Organic
Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) and 7 CFR part
205, or a successor regulation.
Payment Factor. A factor used to determine the amount of
indemnity to be paid in accordance with section 12(g).
Perennial crop. A plant, bush, tree or vine crop that has a life
span of more than one year.
Person. An individual, partnership, association, corporation,
estate, trust, or other legal entity, and wherever applicable, a
State or a political subdivision or agency of a State. ``Person''
does not include the United States Government or any agency thereof.
[[Page 44210]]
Planted acreage. Land in which seed, plants, or trees have been
placed, appropriate for the insured crop and planting method, at the
correct depth, into a seedbed that has been properly prepared for
the planting method and production practice in accordance with good
farming practices for the area.
Policy. The agreement between you and us to insure an
agricultural commodity and consisting of the accepted application,
these Basic Provisions, the Crop Provisions, the Special Provisions,
the CEPP-ARPI, other applicable endorsements or options, the
actuarial documents for the insured agricultural commodity, the CAT
Endorsement, if applicable, and the applicable regulations published
in 7 CFR chapter IV. Insurance for each agricultural commodity in
each county will constitute a separate policy.
Policy protection. The liability amount calculated in accordance
with section 6(f).
Practice. The production methodologies, qualifying as good
farming practices, that are used to produce the crop. Specific
practices that are insured may be listed in the actuarial documents.
Prairie Pothole National Priority Area. Consists of specific
counties within the States of Iowa, Minnesota, Montana, North
Dakota, South Dakota, or any other county as specified on the RMA's
Web site at http://www.rma.usda.gov, or a successor Web site, or the
Farm Service Agency, Agricultural Resource Conservation Program 2-
CRP (Revision 4), dated April 28, 2008, or a subsequent publication.
Premium billing date. The earliest date upon which you will be
billed for insurance coverage based on your acreage report. The
premium billing date is contained in the Special Provisions.
Prohibited substance. Any biological, chemical, or other agent
that is prohibited from use or is not included in the organic
standards for use on any certified organic, transitional or buffer
zone acreage. Lists of such substances are contained at 7 CFR part
205, or a successor regulation.
Projected price. A price for each crop, type, and practice as
shown in the Special Provisions, as applicable, determined in
accordance with the CEPP-ARPI, Special Provisions or the Crop
Provisions, as applicable.
Protection factor (PF) The percentage you choose, from those
offered in the actuarial documents, for each crop, type and practice
as shown in the Special Provisions, and is used to calculate the
dollar amount of insurance per acre and policy protection.
Replanted crop. The same agricultural commodity replanted on the
same acreage as the first insured crop for harvest in the same crop
year. ARPI does not have a replant provision so it is only used for
first and second crop determinations.
RMA. Risk Management Agency, an agency within USDA.
RMA's Web site. A Web site hosted by RMA and located at http://www.rma.usda.gov/ or a successor Web site.
Sales closing date. The date contained in the Special Provisions
by which an application must be filed and the last date by which you
may change your crop insurance coverage for a crop year.
Second crop. With respect to a single crop year, the next
occurrence of planting any agricultural commodity for harvest
following a first insured crop on the same acreage. The second crop
may be the same or a different agricultural commodity as the first
insured crop, except the term does not include a replanted crop. A
cover crop, planted after a first insured crop and planted for the
purpose of haying, grazing or otherwise harvesting in any manner or
that is hayed or grazed during the crop year, or that is otherwise
harvested is considered to be a second crop. A cover crop that is
covered by FSA's noninsured crop disaster assistance program (NAP)
or receives other USDA benefits associated with forage crops will be
considered as planted for the purpose of haying, grazing or
otherwise harvesting. A crop meeting the conditions stated herein
will be considered to be a second crop regardless of whether or not
it is insured.
Share. Your percentage of the insured crop that is at financial
risk. Premium will be determined on your share as of the acreage
reporting date. However, only for the purpose of determining the
amount of indemnity, your share will not exceed your share at the
acreage reporting date or on the date of harvest, whichever is less.
Special Provisions. The part of the policy that contains
specific provisions of insurance for each insured crop that may vary
by geographic area.
State. The state shown on your accepted application.
Subsidy. The portion of the total premium that FCIC will pay in
accordance with the Act.
Subsidy factor. The percentage of the total premium paid by FCIC
as a subsidy.
Substantial beneficial interest. An interest held by any person
of at least 10 percent in you (e.g., there are two partnerships that
each have a 50 percent interest in you and each partnership is made
up of two individuals, each with a 50 percent share in the
partnership. In this case, each individual would be considered to
have a 25 percent interest in you, and both the partnerships and the
individuals would have a substantial beneficial interest in you. The
spouses of the individuals would not be considered to have a
substantial beneficial interest unless the spouse was one of the
individuals that made up the partnership. However, if each
partnership is made up of six individuals with equal interests, then
each would only have an 8.33 percent interest in you and although
the partnership would still have a substantial beneficial interest
in you, the individuals would not for the purposes of reporting in
section 2). The spouse of any individual applicant or individual
insured will be presumed to have a substantial beneficial interest
in the applicant or insured unless the spouses can prove they are
legally separated or otherwise legally separate under the applicable
state dissolution of marriage laws. Any child of an individual
applicant or individual insured will not be considered to have a
substantial beneficial interest in the applicant or insured unless
the child has a separate legal interest in such person.
Summary of protection. Our statement to you specifying the
insured crop, dollar amount of insurance per acre, policy
protection, premium and other information obtained from your
accepted application, acreage report, and the actuarial documents.
Sustainable farming practice. A system or process for producing
an agricultural commodity, excluding organic farming practices, that
is necessary to produce the crop and is generally recognized by
agricultural experts for the area to conserve or enhance natural
resources and the environment.
Tenant. A person who rents land from another person for a share
of the crop or a share of the proceeds of the crop (see the
definition of ``share'' above).
Termination date. The calendar date contained in the Crop
Provisions upon which your insurance ceases to be in effect because
of nonpayment of any amount due us under the policy.
Tilled. The termination of existing plants by plowing, disking,
burning, application of chemicals, or by other means to prepare
acreage for the production of an annual crop.
Total loss factor. A factor found in the actuarial documents and
used to calculate the payment factor. This factor represents the
level of the county loss at which the total indemnity amount is
payable. For example, if the factor is .82, then the policy will pay
out the total indemnity amount once the county level loss reaches 82
percent or greater. The total indemnity will never be more than 100
percent of the final policy protection.
Total Premium. The amount of premium before subsidy, calculated
in accordance with section 7(e)(1).
Transitional acreage. Acreage on which organic farming practices
are being followed that does not yet qualify to be designated as
organic acreage.
Trigger revenue. The revenue amount calculated in accordance
with section 12(b).
Trigger yield. The yield amount calculated in accordance with
section 12(c).
Type. The categories of the insured crop having common traits
and characteristics. Types that are insured may be listed in the
actuarial documents.
Upside harvest price protection. Coverage provided automatically
under the Area Revenue Protection plan of insurance. This coverage
increases your final policy protection when the harvest price is
greater than the projected price. This coverage is not available
under either the Area Revenue Protection with the Harvest Price
Exclusion or the Area Yield Protection plans of insurance.
USDA. United States Department of Agriculture.
Verifiable records. Has the same meaning as the term defined in
7 CFR part 400, subpart G.
Void. When the policy is considered not to have existed for a
crop year.
Volatility factor. A measure of variation of price over time
found in the actuarial documents.
[[Page 44211]]
2. Life of Policy, Cancellation, and Termination
(a) This is a continuous policy and will remain in effect for
each crop year following the acceptance of the original application
until canceled by you in accordance with the terms of the policy or
terminated by operation of the terms of the policy or by us. In
accordance with section 3, FCIC may change the coverage provided
from year to year.
(b) All the information in this subsection must be included in
your application for insurance or your application will not be
accepted and no coverage will be provided. The following information
must be included in your application:
(1) Your election of either Area Revenue Protection, Area
Revenue Protection with the Harvest Price Exclusion, or Area Yield
Protection;
(2) The crop with all type and practice combinations insured as
shown on the Special Provisions;
(3) Your elected coverage level;
(4) Your elected percentage of the projected price (Only 100
percent is allowed for Area Revenue Protection and Area Revenue
Protection with the Harvest Price Exclusion);
(5) Your elected protection factor;
(6) Identification numbers for the insured as follows:
(i) You must include your social security number (SSN) if you
are an individual (if you are an individual applicant operating as a
business, including joint ventures, limited liability companies, and
trusts, you may provide an employer identification number (EIN) but
must also provide your SSN); or
(ii) You must include your EIN if you are a person other than an
individual;
(7) Identification numbers for all persons who have a
substantial beneficial interest in you:
(i) The SSN for individuals; or
(ii) The EIN for persons other than individuals and the SSNs for
all individuals that comprise the person with the EIN if such
individuals also have a substantial beneficial interest in you; and
(8) Any other material information required on the application
to insure the crop.
(c) With respect to SSNs or EINs required on your application:
(1) If a person with a substantial beneficial interest in you is
not eligible for insurance and that person's SSN or EIN was
correctly reported on your application, the insurance coverage for
all crops included on your application will be reduced
proportionately, by the percentage interest in you, of the
ineligible persons with a substantial beneficial interest in you (If
your spouse is ineligible, then you are ineligible);
(2) Your application will not be accepted and no insurance will
be provided for the year of application if the application does not
contain the SSN or EIN for you or any person with a substantial
beneficial interest in you (If your application contains an
incorrect SSN or EIN for you or any person with a substantial
beneficial interest in you, your application will be considered not
to have been accepted, no insurance will be provided for the year of
application and for any subsequent crop years, as applicable, and
such policies will be void unless:
(i) Such number is corrected or provided by you, as applicable;
or
(ii) You provide evidence that demonstrates to our satisfaction
that the omitted or incorrect SSN or EIN was an inadvertent error.);
and
(3) Your policy will be void for all applicable crop years if it
is determined by us at any time that an incorrect or omitted SSN or
EIN, provided on the application, would have allowed you, or a
person with a substantial beneficial interest in you, to:
(i) Obtain disproportionate benefits under the crop insurance
program; or
(ii) Avoid an obligation or requirement under any state or
Federal law.
(d) When any of your policies are void under sections 2(c)(2) or
2(c)(3):
(1) You must repay any indemnity that may have been paid for all
applicable crops and crop years;
(2) Even though the policies are void, you will still be
required to pay an amount equal to 20 percent of the premium that
you would otherwise be required to pay; and
(3) If you previously paid premium or administrative fees, any
amount in excess of the amount required in section 2(d)(2) will be
returned to you.
(e) Notwithstanding any of the provisions in this section, you
may be subject to civil, criminal or administrative sanctions if you
certify to an incorrect SSN or EIN or any other information under
this policy.
(f) If any of your information, or that of persons with a
substantial beneficial interest in you, changes:
(1) After the sales closing date but before the acreage
reporting date for the crop year, you must revise the information by
the acreage report date; or
(2) After the acreage reporting date, you must revise the
information prior to the payment of any claim; and
(3) You fail to timely provide the required revisions, the
provisions in section 2(c)(1) and 2(c)(3) will apply.
(g) If you are, or a person with a substantial beneficial
interest in you, is not eligible to obtain a SSN or EIN, whichever
is required, you must request an assigned number for the purposes of
this policy from us:
(1) A number will be provided only if you can demonstrate you
are, or a person with a substantial beneficial interest in you is,
eligible to receive Federal benefits;
(2) If a number cannot be provided for you in accordance with
section (2)(g)(1), your application will not be accepted; or
(3) If a number cannot be provided for any person with a
substantial beneficial interest in you in accordance with section
2(g)(1), the amount of coverage for all crops on the application
will be reduced proportionately by the percentage interest of such
person in you.
(h) After acceptance of the application, you may not cancel this
policy for the initial crop year unless you choose to insure the
entire crop under another Federally reinsured plan of insurance with
the same insurance provider on or before the sales closing date.
After the first year, the policy will continue in force for each
succeeding crop year unless canceled, voided or terminated as
provided in this section.
(i) Either you or we may cancel this policy after the initial
crop year by providing written notice to the other on or before the
cancellation date shown in the Crop Provisions.
(j) Any amount due to us for any policy authorized under the Act
will be offset from any indemnity due you for this or any other crop
insured with us under the authority of the Act.
(1) Even if your claim has not yet been paid, you must still pay
the premium and administrative fee on or before the termination date
for you to remain eligible for insurance.
(2) If we offset any amount due us from an indemnity owed to
you, the date of payment for the purpose of determining whether you
have a delinquent debt will be the date RMA publishes the final
county yield for the applicable crop year.
(k) A delinquent debt for any policy will make you ineligible to
obtain crop insurance authorized under the Act for any subsequent
crop year and result in termination of all policies in accordance
with section 2(k)(2).
(1) With respect to ineligibility:
(i) Ineligibility for crop insurance will be effective on:
(A) The date that a policy was terminated in accordance with
section 2(k)(2) for the crop for which you failed to pay premium, an
administrative fee, or any related interest owed, as applicable;
(B) The payment due date contained in any notification of
indebtedness for any overpaid indemnity if you fail to pay the
amount owed, including any related interest owed, as applicable, by
such due date;
(C) The termination date for the crop year prior to the crop
year in which a scheduled payment is due under a written payment
agreement if you fail to pay the amount owed by any payment date in
any agreement to pay the debt; or
(D) The termination date the policy was or would have been
terminated under sections 2(k)(2)(i)(A), (B) or (C) if your
bankruptcy petition is dismissed before discharge.
(ii) If you are ineligible and a policy has been terminated in
accordance with section 2(k)(2), you will not receive any indemnity,
and such ineligibility and termination of the policy may affect your
eligibility for benefits under other USDA programs. Any indemnity
that may be owed for the policy before it has been terminated will
remain owed to you, but may be offset in accordance with section
2(j), unless your policy was terminated in accordance with sections
2(k)(2)(i)(A), (B), or (D).
(2) With respect to termination:
(i) Termination will be effective on:
(A) For a policy with unpaid administrative fees or premiums,
the termination date immediately subsequent to the billing date for
the crop year (For policies for which the sales closing date is
prior to the termination date, such policies will terminate for the
current crop year even if insurance attached prior to the
termination date. Such termination will be considered effective as
of the sales closing date and no insurance will be considered to
have attached for the crop year and no indemnity will be owed);
[[Page 44212]]
(B) For a policy with other amounts due, the termination date
immediately following the date you have a delinquent debt (For
policies for which the sales closing date is prior to the
termination date, such policies will terminate for the current crop
year even if insurance attached prior to the termination date. Such
termination will be considered effective as of the sales closing
date and no insurance will be considered to have attached for the
crop year and no indemnity will be owed);
(C) For all other policies that are issued by us under the
authority of the Act, the termination date that coincides with the
termination date for the policy with the delinquent debt, or if
there is no coincidental termination date, the termination date
immediately following the date you become ineligible; or
(D) For dismissal of a bankruptcy petition before discharge, the
termination date the policy was or would have been terminated under
sections 2(k)(2)(i)(A), (B) or (C).
(ii) For all policies terminated under sections 2(k)(2)(i)(A),
(B), or (D), any indemnities paid subsequent to the termination date
must be repaid.
(iii) Once the policy is terminated, it cannot be reinstated for
the current crop year unless the termination was in error. Failure
to timely pay because of illness, bad weather, or other such
extenuating circumstances is not grounds for reinstatement in the
current crop year.
(3) To regain eligibility, you must:
(i) Repay the delinquent debt in full; or
(ii) File a petition to have your debts discharged in bankruptcy
(Dismissal of the bankruptcy petition before discharge will
terminate all policies in effect retroactive to the date your policy
would have been terminated in accordance with section 2(k)(2)(i);
(4) If you are determined to be ineligible under section 2(k),
persons with a substantial beneficial interest in you may also be
ineligible until you become eligible again.
(l) In cases where there has been a death, disappearance,
judicially declared incompetence, or dissolution of marriage of any
insured person:
(1) If any married insured dies, disappears, or is judicially
declared incompetent, the named insured on the policy will
automatically convert to the name of the spouse if:
(i) The spouse was included on the policy as having a
substantial beneficial interest in the named insured; and
(ii) The spouse has a share of the crop.
(2) The provisions in section 2(l)(3) will only be applicable
if:
(i) Any partner, member, shareholder, etc., of an insured entity
dies, disappears, or is judicially declared incompetent, and such
event automatically dissolves the entity; or
(ii) An individual whose estate is left to a beneficiary other
than a spouse or left to the spouse and the criteria in section
2(l)(1) are not met, dies, disappears, or is judicially declared
incompetent.
(3) If the death, disappearance, or judicially declared
incompetence occurred:
(i) More than 30 days before the cancellation date, the policy
is automatically canceled as of the cancellation date and a new
application must be submitted; or
(ii) Thirty days or less before the cancellation date, or after
the cancellation date, the policy will continue in effect through
the crop year immediately following the cancellation date and be
automatically canceled as of the cancellation date immediately
following the end of the insurance period for the crop year, unless
canceled by the cancellation date prior to the start of the
insurance period:
(A) A new application for insurance must be submitted prior to
the sales closing date for coverage for the subsequent crop year;
and
(B) Any indemnity will be paid to the person or persons
determined to be beneficially entitled to the payment provided such
person or persons comply with all policy provisions and timely pays
the premium.
(4) If any insured entity is dissolved for reasons other than
death, disappearance, or judicially declared incompetence:
(i) Before the cancellation date, the policy is automatically
canceled as of the cancellation date and a new application must be
submitted; or
(ii) On or after the cancellation date, the policy will continue
in effect through the crop year immediately following the
cancellation date and be automatically canceled as of the
cancellation date immediately following the end of the insurance
period for the crop year, unless canceled by the cancellation date
prior to the start of the insurance period.
(A) A new application for insurance must be submitted prior to
the sales closing date for coverage for the subsequent crop year;
and
(B) Any indemnity will be paid to the person or persons
determined to be beneficially entitled to the payment provided such
person or persons comply with all policy provisions and timely pays
the premium.
(5) If section 2(k)(2) or (4) applies, a remaining member of the
insured person or the beneficiary is required to report to us the
death, disappearance, judicial incompetence, or other event that
causes dissolution of the entity not later than the next
cancellation date, except if section 2(k)(3)(ii) applies, notice
must be provided by the cancellation date for the next crop year.
(m) We may cancel your policy if no premium is earned for 3
consecutive years.
(n) The cancellation and termination dates are contained in the
Crop Provisions.
(o) When obtaining catastrophic or additional coverage, you must
provide information regarding crop insurance coverage on any crop
previously obtained at any other local FSA office or from an
insurance provider, including the date such insurance was obtained
and the amount of the administrative fee.
(p) Any person may sign any document relative to crop insurance
coverage on behalf of any other person covered by such a policy,
provided that the person has a properly executed power of attorney
or such other legally sufficient document authorizing such person to
sign. You are still responsible for the accuracy of all information
provided on your behalf and may be subject to the consequences in
section 8(f), and any other consequences, including administrative,
criminal or civil sanctions, if any information has been
misreported.
(q) If cancellation or termination of insurance coverage occurs
for any reason, including but not limited to indebtedness,
suspension, debarment, disqualification, cancellation by you or us
or violation of the controlled substance provisions of the Food
Security Act of 1985, a new application must be filed for the crop.
(1) Insurance coverage will not be provided if you are
ineligible under the contract or under any Federal statute or
regulation.
(2) Since applications for crop insurance cannot be accepted
after the sales closing date, if you make any payment, or you
otherwise become eligible, after the sales closing date, you cannot
apply for insurance until the next crop year. For example, for the
2010 crop year, if crop A, with a termination date of October 31,
2010, and crop B, with a termination date of March 15, 2011, are
insured and you do not pay the premium for crop A by the termination
date, you are ineligible for crop insurance as of October 31, 2010,
and crop A's policy is terminated as of that date. Crop B's policy
does not terminate until March 15, 2011, and an indemnity for the
2010 crop year may still be owed. You will not be eligible to apply
for crop insurance for any crop until after the amounts owed are
paid in full or you file a petition to discharge the debt in
bankruptcy.
3. Contract Changes
(a) We may change the terms and conditions of this policy from
year to year.
(b) Any changes in policy provisions, actuarial documents, the
CEPP-ARPI, expected county yields, premium rates, and program dates
can be viewed on RMA's Web site not later than the contract change
date contained in the Crop Provisions. We may only revise this
information after the contract change date to correct obvious errors
(e.g., the expected county revenue for a county was announced at
$2,500 per acre instead of $250 per acre).
(c) After the contract change date, all changes specified in
section 3(b) will also be available upon request from your crop
insurance agent.
(d) You will be provided, in writing, a copy of the changes to
the Basic Provisions, Crop Provisions, CEPP-ARPI, and Special
Provisions not later than 30 days prior to the cancellation date for
the insured crop. If available from us, you may elect to receive
these documents and changes electronically.
(e) Acceptance of the changes made to the Basic Provisions, Crop
Provisions, CEPP-ARPI, Special Provisions, and actuarial documents
will be conclusively presumed in the absence of notice from you to
change or cancel your insurance coverage.
4. Insured Crop
(a) The insured crop will be that shown on your accepted
application and as specified in the Crop Provisions or Special
Provisions, and must be grown on insurable acreage.
(b) A crop which will NOT be insured will include, but will not
be limited to, any crop:
[[Page 44213]]
(1) That is not grown on planted acreage;
(2) That is a type not generally recognized for the area;
(3) For which the information necessary for insurance (projected
price, expected county yield, premium rate, etc.) is not included in
the actuarial documents;
(4) That is a volunteer crop;
(5) Planted following the same crop on the same acreage and the
first planting of the crop has been harvested in the same crop year
unless specifically permitted by the Crop Provisions or the Special
Provisions (For example, the second planting of grain sorghum would
not be insurable if grain sorghum had already been planted and
harvested on the same acreage during the crop year);
(6) That is planted for experimental purposes;
(7) That is not specified in the actuarial documents; or
(8) That is used solely for wildlife protection or management.
If the lease states that specific acreage must remain unharvested,
only that acreage is uninsurable. If the lease specifies that a
percentage of the crop must be left unharvested, your share will be
reduced by such percentage.
(c) Although certain policy documents may state that a specific
crop, type, or practice is not insurable, it does not mean all other
crops, types, or practices are insurable. To be insurable, the use
of such crop, type, practice, must be a good faming practice, have
been widely used in the county, and meet all the conditions in the
Basic Provisions, the Crop Provisions, Special Provisions, and the
actuarial documents.
5. Insurable Acreage
(a) Except as provided in section 5(c), the insurable acreage is
all of the acreage of the insured crop for which a premium rate is
provided by the actuarial documents, in which you have a share, and
which is planted in the county listed on your accepted application.
The dollar amount of insurance per acre, amount of premium, and
indemnity will be calculated separately for each crop, type, and
practice shown on the Special Provisions.
(1) The acreage must have been planted and harvested (Grazing is
not considered harvested for the purposes of this section) or
insured (Excluding pasture, rangeland, and forage, vegetation and
rainfall insurance or any other specific policy listed in the
Special Provisions) in at least one of the three previous crop years
unless:
(i) Such acreage was not planted:
(A) In at least two of the three previous crop years to comply
with any other USDA program;
(B) Due to the crop rotation, the acreage would not have been
planted in the previous three years (e.g., a crop rotation of corn,
soybeans, and alfalfa; and the alfalfa remained for four years
before the acreage was planted to corn again); or
(C) Because a perennial crop was on the acreage in at least two
of the previous three crop years;
(ii) Such acreage constitutes five percent or less of the
insured planted acreage of the crop, type and practice as shown on
the Special Provisions in the county;
(iii) Such acreage was not planted or harvested because it was
pasture or rangeland and the crop to be insured is also pasture or
rangeland; or
(iv) The Crop Provisions or Special Provisions specifically
allows insurance for such acreage.
(b) Only the acreage planted to the insured crop on or before
the final planting date, as shown in the Special Provisions, and
reported by the acreage reporting date and physically located in the
county shown on your accepted application will be insured.
(c) We will not insure any acreage:
(1) Where the crop was destroyed or put to another use during
the crop year for the purpose of conforming with, or obtaining a
payment under, any other program administered by the USDA;
(2) Where we determine you have failed to follow good farming
practices for the insured crop (We will remove the acreage for which
good farming practices were not carried out from the acreage report,
no premium will be due, and no indemnity paid);
(3) Where the conditions under which the crop is planted are not
generally recognized for the area (For example, where agricultural
experts determine that planting a non-irrigated corn crop after a
failed small grain crop on the same acreage in the same crop year is
not appropriate for the area);
(4) Of a second crop, if you elect not to insure such acreage
when an indemnity for a first insured crop may be subject to
reduction in accordance with the provisions of section 13 and you
intend to collect an indemnity payment that is equal to 100 percent
of the insurable loss for the first insured crop acreage. This
election must be made for all first insured crop acreage that may be
subject to an indemnity reduction if the first insured crop is
insured under this policy, or on a first insured crop unit basis if
the first insured crop is not insured under this policy, e.g., if
the first insured crop under this policy consists of 40 acres, or
the first insured crop unit insured under another policy contains 40
planted acres, then no second crop can be insured on any of the 40
acres. In this case:
(i) If the first insured crop is insured under ARPI, you must
provide written notice to us of your election not to insure acreage
of a second crop by the acreage reporting date for the second crop
if it is insured under ARPI, or before planting the second crop if
it is insured under any other policy;
(ii) If the first insured crop is not insured under ARPI, at the
time the first insured crop acreage is released by us or another
insurance provider who insures the first insured crop (if no acreage
in the first insured crop unit is released, this election must be
made by the earlier of acreage reporting date for the second crop or
when you sign the claim for the first insured crop);
(iii) If you fail to provide a notice as specified in section
5(c)(5)(i) or 5(c)(5)(ii), the second crop acreage will be insured
in accordance with applicable policy provisions and you must repay
any overpaid indemnity for the first insured crop;
(iv) In the event a second crop is planted and insured with a
different insurance provider, or planted and insured by a different
person, you must provide written notice to each insurance provider
that a second crop was planted on acreage on which you had a first
insured crop; and
(v) You must report the crop acreage that will not be insured on
the applicable acreage report; and
(5) Of a crop planted following a second crop or following an
insured crop that is prevented from being planted after a first
insured crop.
(d) If the Governor of a State designated within the Prairie
Pothole National Priority Area elects to make section 508(o) of the
Act effective for the State, any native sod acreage greater than
five acres located in a county contained within the Prairie Pothole
National Priority Area that has been tilled after May 22, 2008, is
not insurable for the first five crop years of planting following
the date the native sod acreage is tilled.
(1) If the Governor makes this election after you have received
an indemnity or other payment for native sod acreage, you will be
required to repay the amount received and any premium for such
acreage will be refunded to you.
(2) If we determine you have tilled less than five acres of
native sod a year for more than one crop year, we will add all the
native sod acreage tilled after May 22, 2008, and all such acreage
will be ineligible for insurance for the first five crop years of
planting following the date the cumulative native sod acreage tilled
exceeds five acres.
6. Coverage, Coverage Levels, Protection Factor, and Policy Protection
(a) For all acreage of the insured crop in the county, you must
select the same plan of insurance (e.g., all Area Revenue
Protection, all Area Revenue Protection with the Harvest Price
Exclusion, or all Area Yield Protection), if such plans are
available on the actuarial documents.
(b) You must choose a protection factor:
(1) From a range of percentages shown on the actuarial
documents;
(2) As a whole percentage from amounts specified; and
(3) For each crop, type, and practice as shown on the Special
Provisions (you may choose a different protection factor for each
crop, type, and practice).
(c) You may select any coverage level shown on the actuarial
documents for each crop, type, and practice as shown on the Special
Provisions.
(1) For Area Revenue Protection and Area Revenue Protection with
the Harvest Price Exclusion:
(i) CAT level of coverage is not available; and
(ii) With respect to additional coverage, you may select any
coverage level specified in the actuarial documents for each crop,
type, and practice as shown on the Special Provisions. For example:
You may choose a 75 percent coverage level for one crop, type, and
practice (Such as corn irrigated practice) and a 90 percent coverage
level for another crop, type, and practice (Corn non-irrigated
practice).
(2) For Area Yield Protection:
(i) CAT level of coverage is available, and you may select the
CAT level of coverage for
[[Page 44214]]
any crop, type, and practice as shown on the Special Provisions;
(ii) With respect to additional coverage, you may select any
coverage level (Specified in the actuarial documents for each crop,
type, and practice. For example: You may choose a 75 percent
coverage level for one crop, type, and practice (corn irrigated
practice) and a 90 percent coverage level for another crop, type,
and practice (corn non-irrigated practice); and
(iii) You may have CAT coverage on one type, and practice shown
on the actuarial document for the crop, and additional coverage on
another type and practice for the same crop as long as they are
different types or practices. You may also have different additional
coverage levels by type, and practice as shown on the Special
Provisions.
(d) You may change the plan of insurance, protection factor, or
coverage level, for the following crop year by giving written notice
to us not later than the sales closing date for the insured crop.
(e) Since this is a continuous policy and the expected county
yield and projected price may change each year, if you do not select
a new insurance plan, protection factor, and coverage level on or
before the sales closing date, we will assign the same plan of
insurance, protection factor, and coverage level as the previous
year.
(f) Policy protection for ARPI plans of insurance is calculated
as follows:
(1) Multiply dollar amount of insurance per acre for each crop,
type, and practice as shown on the Special Provisions by the number
of acres insured for such crop, type and practice; and
(2) Multiply the result of paragraph (1) by your share.
(g) If the projected price cannot be calculated for the current
crop year under the provisions contained in the CEPP-ARPI and you
previously chose Area Revenue Protection or Area Revenue Protection
with the Harvest Price Exclusion:
(1) Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion will not be provided and you will
automatically be covered under the Area Yield Protection plan of
insurance for the current crop year unless you cancel your coverage
by the cancellation date or change your plan of insurance by the
sales closing date;
(2) Notice of availability will be provided on RMA's Web site by
the date specified in the applicable projected price definition
contained in the CEPP-ARPI;
(3) The projected price will be determined by RMA and will be
released by the date specified in the applicable projected price
definition contained in the CEPP-ARPI; and
(4) Your coverage will automatically revert back to Area Revenue
Protection or Area Revenue Protection with the Harvest Price
Exclusion, whichever is applicable, for the next crop year that
revenue protection is available unless you cancel your coverage by
the cancellation date or change your coverage by the sales closing
date.
7. Administrative Fees and Annual Premium
(a) The administrative fee:
(1) For CAT coverage will be an amount specified in the CAT
Endorsement or the actuarial documents, as applicable;
(2) For additional levels of coverage is $30, or an amount
specified in the actuarial documents, as applicable;
(3) Is payable to us on the premium billing date for the crop;
(4) Must be paid no later than the time premium is due or the
amount will be considered a delinquent debt;
(5) In accordance with section 6(c)(2)(iii), will be charged for
both CAT and additional coverage if a producer elects both levels
for the crop in the county;
(6) For additional coverage, will only be charged once even if
you choose two or more different additional levels of coverage for
the different types and practices for the crop;
(7) Will not be more than one additional and one CAT
administrative fee no matter how many different coverage levels you
choose for different type and practice combinations as shown on the
Special Provisions you insure for the crop in the county;
(8) Will be waived if you request it and:
(i) You qualify as a limited resource farmer; or
(ii) You were insured prior to the 2005 crop year or for the
2005 crop year and your administrative fee was waived for one or
more of those crop years because you qualified as a limited resource
farmer under a policy definition previously in effect, and you
remain qualified as a limited resource farmer under the definition
that was in effect at the time the administrative fee was waived;
(9) 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,
civil and administrative sanctions; and
(10) If not paid when due, may make you ineligible for crop
insurance and certain other USDA benefits.
(b) The premium is based on the policy protection calculated in
section 6(f).
(c) The information needed to determine the premium rate and any
premium adjustment percentages that may apply are contained in the
actuarial documents.
(d) To calculate the premium and subsidy amounts for ARPI plans
of insurance:
(1) Multiply your policy protection from section 6(f) by the
applicable premium rate and any premium adjustment percentages that
may apply;
(2) Multiply the result of paragraph (1) by the applicable
subsidy factor (This is the amount of premium FCIC will pay);
(3) Subtract the result of paragraph (2) from the result of
paragraph (1) to calculate the amount of premium you will pay.
(e) The amount of premium calculated in accordance with section
7(d)(3) is earned and payable at the time the insured crop is
properly planted by the final planting date and reported on the
acreage reporting date. You will be billed for such premium and
applicable administrative fees not earlier than the premium billing
date specified in the Special Provisions.
(f) If the amount of premium calculated in accordance with
section 7(d)(3) and administrative fees you are required to pay for
any acreage exceeds the amount of policy protection for the acreage,
coverage for those acres will not be provided (No premium or
administrative fee will be due and no indemnity will be paid for
such acreage).
(g) Premium or administrative fees owed by you will be offset
from an indemnity due you in accordance with section 2(j).
8. Report of Acreage and Report of Production
(a) An annual acreage report must be submitted to us on our form
for each insured crop (Separate lines for each type and practice) in
the county on or before the acreage reporting date contained in the
Special Provisions.
(b) If you do not have a share in an insured crop in the county
for the crop year, you must submit an acreage report, on or before
the acreage reporting date, so indicating.
(c) Your acreage report must include the following information,
if applicable:
(1) The amount of acreage of the crop in the county (insurable
and not insurable) in which you have a share;
(2) Your share at the time coverage begins;
(3) The practice;
(4) The type; and
(5) The land identifier for the crop acreage (e.g., legal
description, FSA farm serial number or common land unit number if
provided to you by FSA, etc.) as required on our form.
(d) We will not insure any acreage of the insured crop planted
after the final planting date.
(e) Regarding the ability to revise an acreage report you have
submitted to us:
(1) You cannot revise any information pertaining to the planted
acreage after the acreage reporting date without our consent;
(2) Consent may only be provided when no cause of loss has
occurred and we have made a determination that the crop in the
county will likely produce at least 90 percent of the expected
county yield; and
(3) The provisions in section 8(e)(1) and (2) also pertain to
land acquired after the acreage reporting date, and we may choose to
insure or not insure the acreage, provided the crop meets the
requirements in section 5 and section 8. This does not apply to any
acreage for which insurance attached under a different person's
policy.
(f) We may elect to determine all premiums and indemnities based
on the information you submit on the acreage report or upon the
factual circumstances we determine to have existed, subject to the
provisions contained in section 8.
(g) You must provide all required reports and you are
responsible for the accuracy of all information contained in those
reports. You should verify the information on all such reports prior
to submitting them to us.
(1) Except as provided in section 8(g)(2), if you submit
information on any report that is different than what is determined
to be correct and the information reported on the acreage report
results in:
(i) A lower liability than the actual, correct liability
determined, the production guarantee or amount of insurance on the
unit will be reduced to an amount consistent with
[[Page 44215]]
the information reported on the acreage report; or
(ii) A higher liability than the actual, correct liability
determined, the information contained in the acreage report will be
revised to be consistent with the correct information.
(2) If your share is misreported and the share is:
(i) Under-reported at the time of the acreage report, any claim
will be determined using the share you reported; or
(ii) Over-reported at the time of the acreage report, any claim
will be determined using the share we determine to be correct.
(h) If we discover you have incorrectly reported any information
on the acreage report for any crop year, you may be required to
provide documentation in subsequent crop years substantiating your
report of acreage for those crop years, including, but not limited
to, an acreage measurement service at your own expense. If the
correction of any misreported information would affect an indemnity
that was paid in a prior crop year, such claim will be adjusted and
you will be required to repay any overpaid amounts.
(i) You may request an acreage measurement from FSA or a
business that provides such measurement service prior to the acreage
reporting date, submit documentation of such request and an acreage
report with estimated acreage by the acreage reporting date, and if
the acreage measurement shows the estimated acreage was incorrect,
we will revise your acreage report to reflect the correct acreage:
(1) If an acreage measurement is only requested for a portion of
the insured crop, type, and practice as shown on the Special
Provisions, you must separately designate the acreage for which an
acreage measurement has been requested;
(2) Premium will still be due in accordance with sections 2(j)
and 7 (If the acreage is not measured as specified in section 8(i)
and the acreage measurement is not provided to us at least 15 days
prior to the premium billing date, your premium will be based on the
estimated acreage and will be revised, if necessary, when the
acreage measurement is provided);
(3) If an acreage measurement is not provided to us by the time
the final county revenue or final county yield, as applicable, is
calculated, we may:
(i) Elect to measure the acreage, and finalize your claim in
accordance with applicable policy provisions;
(ii) Defer finalization of the claim until the measurement is
completed with the understanding that if you fail to provide the
measurement prior to the termination date, your claim will not be
paid; or
(iii) Finalize the claim in accordance with applicable policy
provisions after you provide the acreage measurement to us; or
(4) If the acreage measurement is not provided by the
termination date, you will be precluded from providing any estimated
acreage for all subsequent crop years;
(5) If there is an irreconcilable difference between:
(i) The acreage measured by FSA or a measuring service and our
on farm measurement, our on-farm measurement will be used; or
(ii) The acreage measured by a measuring service, other than our
on-farm measurement, and FSA, the FSA measurement will be used; and
(6) If the acreage report has been revised in accordance with
sections 8(f) and 8(i), the information on the initial acreage
report will not be considered misreported for the purposes of
section 8(g).
(j) If you do not submit an acreage report by the acreage
reporting date, or if you fail to report all acreage, we may elect
to determine the insurable acreage, by crop, type, practice as shown
on the Special Provisions, and share, or to deny liability on such
acreage. If we deny liability for the unreported acreage, no premium
will be due on such acreage and no indemnity will be paid.
(k) An annual production report must be submitted to us on our
form for each insured crop (Separate lines for each type and
practice as shown on the Special Provisions) in the county on the
date specified in the Special Provisions.
(l) If you do not submit a production report to us by the date
specified in the Special Provisions, the yield used to determine the
final county yield for your policy will be equal to the expected
county yield. In addition, you will not be eligible for any
indemnity paid for any loss, either yield or price, under this
policy.
(m) Errors in reporting acreage and yield may be corrected by us
at the time we become aware of such errors. However, the provisions
regarding incorrect information in this section will apply.
9. Share Insured
(a) Insurance will attach:
(1) Only if the person completing the application has a share in
the insured crop; and
(2) Only to that person's share, except that insurance may
attach to another person's share of the insured crop if the other
person has a share of the crop and:
(i) The application clearly states the insurance is requested
for a person other than an individual (e.g., a partnership or a
joint venture); or
(ii) The application clearly states you as a landlord will
insure your tenant's share, or you as a tenant will insure your
landlord's share. If you as a landlord will insure your tenant's
share, or you as a tenant will insure your landlord's share, you
must provide evidence of the other party's approval (lease, power of
attorney, etc.) and such evidence will be retained by us:
(A) You also must clearly set forth the percentage shares of
each person on the acreage report; and
(B) For each landlord or tenant, you must report the landlord's
or tenant's social security number, employer identification number,
or other identification number we assigned for the purposes of this
policy, as applicable.
(b) With respect to your share:
(1) We will consider included in your share under your policy,
any acreage or interest reported by or for:
(i) Your spouse, unless such spouse can prove he/she has a
separate farming operation, which includes, but is not limited to,
separate land (transfers of acreage from one spouse to another is
not considered separate land), separate capital, separate inputs,
separate accounting, and separate maintenance of proceeds; or
(ii) Your child who resides in your household or any other
member of your household, unless such child or other member of the
household can demonstrate such person has a separate share in the
crop (Children who do not reside in your household are not included
in your share); and
(2) If it is determined that the spouse, child or other member
of the household has a separate policy but does not have a separate
farming operation or share of the crop, as applicable:
(i) The policy for the spouse or child or other member of the
household will be void and the policy remaining in effect will be
determined in accordance with section 18(a)(1) and (2);
(ii) The acreage or share reported under the policy that is
voided will be included under the remaining policy; and
(iii) No premium will be due and no indemnity will be paid for
the voided policy.
(c) Acreage rented for a percentage of the crop, or a lease
containing provisions for BOTH a minimum payment (such as a
specified amount of cash, bushels, pounds, etc.,) AND a crop share
will be considered a crop share lease.
(d) Acreage rented for cash, or a lease containing provisions
for EITHER a minimum payment OR a crop share (such as a 50/50 share
or $100.00 per acre, whichever is greater) will be considered a cash
lease.
10. Insurance Period
Unless specified otherwise in the Crop Provisions, coverage
begins at the later of:
(a) The date we accept your application (For the purposes of
this paragraph, the date of acceptance is the date that you submit a
properly executed application in accordance with section 2); or
(b) The date the insured crop is planted.
11. Causes of Loss
(a) ARPI provides protection against widespread loss of revenue
or yield in a county caused by natural occurrences.
(b) Failure to follow good farming practices or planting or
producing a crop using a practice that has not been widely
recognized as used to establish the expected count yield is not an
insurable cause of loss under ARPI.
12. Triggers, Final Policy Protection, Payment Factor, and Indemnity
Calculations
(a) Individual farm revenues and yields are not considered when
calculating losses under ARPI. It is possible that your individual
farm may experience reduced revenue or reduced yield and you do not
receive an indemnity under ARPI.
(b) To calculate the trigger revenue;
(1) For Area Revenue Protection, multiply the expected county
yield by the greater of the projected or harvest price and by the
coverage level.
(2) For Area Revenue Protection with the Harvest Price
Exclusion, multiply the expected county yield by the projected price
and by the coverage level.
[[Page 44216]]
(c) To calculate the Trigger Yield for Area Yield Protection,
multiply the expected county yield by the coverage level.
(d) If the harvest price cannot be calculated for the current
crop year under the provisions contained in the CEPP-ARPI:
(1) Revenue protection will continue to be available; and
(2) The harvest price will be determined and announced by FCIC.
(e) The final policy protection for:
(1) Area Revenue Protection is calculated by:
(i) Multiplying the expected county yield by the greater of the
harvest price or the projected price;
(ii) Multiplying the result of subparagraph (i) by your
protection factor; and
(iii) Multiplying the result of subparagraph (ii) by your acres
and by your share.
(2) Area Revenue Protection with the Harvest Price Exclusion and
Area Yield Protection is equal to the policy protection and is
calculated by:
(i) Multiplying the expected county yield by the projected
price;
(ii) Multiplying the result of subparagraph (i) by your
protection factor; and
(iii) Multiplying the result of subparagraph (ii) by your acres
and by your share.
(f) An indemnity is due for:
(1) Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion if the final county revenue is less than the
trigger revenue.
(2) Area Yield Protection if the final county yield is less than
the trigger yield.
(g) The payment factor is calculated for:
(1) Area Revenue Protection and Area Revenue Protection with the
Harvest Price Exclusion by:
(i) Subtracting the final county revenue from the trigger
revenue to determine the amount of loss;
(ii) Subtracting the total loss factor from 1.00 to calculate
the amount of production not lost in the county;
(iii) Multiplying the result of subparagraph (ii) by the
expected county revenue;
(iv) Subtract the result of subparagraph (iii) from the trigger
revenue; and
(v) Dividing the result of subparagraph (i) by the result of
subparagraph (iv) to obtain the payment factor.
(2) Area Yield Protection by:
(i) Subtracting the final county yield from the trigger yield to
determine the amount of loss;
(ii) Subtracting the total loss factor from 1.00 to calculate
the amount of production not lost in the county;
(iii) Multiplying the result of subparagraph (ii) by the
expected county yield;
(iv) Subtract the result of subparagraph (iii) from the trigger
yield; and
(v) Dividing the result of subparagraph (i) by the result of
subparagraph (iv) to obtain the payment factor.
(h) Indemnities for all three ARPI plans of insurance are
calculated by multiplying the final policy protection by the payment
factor.
(i) Indemnities for all three ARPI plans of insurance are
calculated following release of the final county yield and harvest
price as specified in the Crop Provisions.
13. Indemnity and Premium Limitations
(a) With respect to acreage where you are due an indemnity for
your first insured crop in the crop year, except in the case of
double cropping described in section 13(c):
(1) You may elect to not plant or to plant and not insure a
second crop on the same acreage for harvest in the same crop year
and collect an indemnity payment that is equal to 100 percent of the
insurable loss for the first insured crop; or
(2) You may elect to plant and insure a second crop on the same
acreage for harvest in the same crop year (you will pay the full
premium and if there is an insurable loss to the second crop,
receive the full amount of indemnity that may be due for the second
crop, regardless of whether there is a subsequent crop planted on
the same acreage) and:
(i) Collect an indemnity payment that is 35 percent of the
insurable loss for the first insured crop;
(ii) Be responsible for a premium that is 35 percent of the
premium that you would otherwise owe for the first insured crop; and
(iii) If the second crop does not suffer an insurable loss:
(A) Collect an indemnity payment for the other 65 percent of
insurable loss that was not previously paid under section
13(a)(2)(i); and
(B) Be responsible for the remainder of the premium for the
first insured crop that you did not pay under section 13(a)(2)(ii).
(b) In lieu of the priority contained in the Agreement to Insure
section, which states that the Crop Provisions have priority over
the Basic Provisions, the reduction in the amount of indemnity and
premium specified in section 13(a) of these Basic Provisions, as
applicable, will apply to any premium owed or indemnity paid in
accordance with the Crop Provisions, and any applicable endorsement.
This will apply:
(1) Even if another person plants the second crop on any acreage
where the first insured crop was planted; or
(2) If you fail to provide any records we require to determine
whether an insurable loss occurred for the second crop.
(c) You may receive a full indemnity for a first insured crop
when a second crop is planted on the same acreage in the same crop
year, regardless of whether or not the second crop is insured or
sustains an insurable loss, if each of the following conditions are
met:
(1) It is a practice that is generally recognized by
agricultural experts or organic agricultural experts for the area to
plant two or more crops for harvest in the same crop year;
(2) The second or more crops are customarily planted after the
first insured crop for harvest on the same acreage in the same crop
year in the area;
(3) Additional coverage insurance offered under the authority of
the Act is available in the county on the two or more crops that are
double cropped; and
(4) You provide records acceptable to us of acreage and
production that show you have double cropped acreage in at least two
of the last four crop years in which the first insured crop was
planted, or that show the applicable acreage was double cropped in
at least two of the last four crop years in which the first insured
crop was grown on it.
(d) The receipt of a full indemnity on both crops that are
double cropped is limited to the number of acres for which you can
demonstrate you have double cropped or that have been historically
double cropped as specified in section 13(c).
(1) If the records you provided are from acreage you double
cropped in at least two of the last four crop years, you may apply
your history of double cropping to any acreage of the insured crop
in the county (e.g., if you have double cropped 100 acres of wheat
and soybeans in the county and you acquire an additional 100 acres
in the county, you can apply that history of double cropped acreage
to any of the 200 acres in the county as long as it does not exceed
100 acres); or
(2) If the records you provided are from acreage that another
producer double cropped in at least two of the last four crop years
you may only use the history of double cropping for the same
physical acres from which double cropping records were provided
(e.g., if a neighbor has double cropped 100 acres of wheat and
soybeans in the county and you acquire your neighbor's 100 double
cropped acres and an additional 100 acres in the county, you can
only apply your neighbor's history of double cropped acreage to the
same 100 acres that your neighbor double cropped).
(e) If any Federal or State agency requires destruction of any
insured crop or crop production, as applicable, because it contains
levels of a substance, or has a condition, that is injurious to
human or animal health in excess of the maximum amounts allowed by
the Food and Drug Administration, other public health organizations
of the United States or an agency of the applicable State, you must
destroy the insured crop or crop production, as applicable, and
certify that such insured crop or crop production has been destroyed
prior to receiving an indemnity payment. Failure to destroy the
insured crop or crop production, as applicable, will result in you
having to repay any indemnity paid and you may be subject to
administrative sanctions in accordance with section 515(h) of the
Act and 7 CFR part 400, subpart R, and any applicable civil or
criminal sanctions.
14. Organic Farming Practices
(a) Insurance will be provided for a crop grown using an organic
farming practice for only those acres of the crop that meet the
requirements for an organic crop on the acreage reporting date.
(b) If an organic type or practice is shown on the actuarial
documents, the projected price, dollar amount of insurance, policy
protection, premium rate, etc., for such organic crop, type and
practice will be used unless otherwise specified in the actuarial
documents. If an organic type or practice is not shown on the
actuarial documents, the projected price, dollar amount of
insurance, policy protection, premium rate, etc., for the non-
organic crop, type and practice will be used.
(c) If insurance is provided for an organic farming practice as
specified in section 14(a) and (b), only the following acreage will
be insured under such practice:
[[Page 44217]]
(1) Certified organic acreage;
(2) Transitional acreage being converted to certified organic
acreage in accordance with an organic plan; and
(3) Buffer zone acreage.
(d) On the date you report your acreage, you must have:
(1) For certified organic acreage, a written certification in
effect from a certifying agent indicating the name of the entity
certified, effective date of certification, certificate number,
types of commodities certified, and name and address of the
certifying agent (A certificate issued to a tenant may be used to
qualify a landlord or other similar arrangement);
(2) For transitional acreage, a certificate as described in
section 14(d)(1), or written documentation from a certifying agent
indicating an organic plan is in effect for the acreage; and
(3) Records from the certifying agent showing the specific
location of each field of certified organic, transitional, buffer
zone, and acreage not maintained under organic management.
(e) Acreage that qualifies as certified organic or transitional
acreage on the acreage reporting date will be identified separately
on the acreage report.
15. Yields
(a) Yields used under this insurance program for a crop, will be
based on:
(i) Data collected by NASS, if elected by FCIC for all counties
for the crop nationwide, (regardless of whether such data is
published or unpublished); or
(ii) Crop insurance data, other USDA data, or other data
sources, if elected by FCIC for all counties for the crop
nationwide, as specified in the actuarial documents prior to the
contract change date.
(b) Not withstanding any other provision in this section, for a
specific county in any given crop year, if FCIC determines the data
elected to be used by FCIC under subsection (a) is not available or
credible, FCIC may elect to establish the expected county yield and
final county yields based on data obtained from NASS, crop
insurance, other USDA, or other data sources as determined by FCIC
and such data source will be specified in the actuarial documents.
(c) Except as otherwise provided in this section, the data
source, type and practice used to establish the expected county
yield will be used to establish the final county yield.
(d) If the data source used to establish the expected county
yield is not available or credible to allow it to be used to
establish the final county yield, FCIC will determine the final
county yield based on the most accurate data available from crop
insurance, USDA, or other data sources as determined by FCIC.
(e) To the extent that practices used during the crop year
change from those upon which the expected county yield is based, the
final county yield may be adjusted to reflect the yield that would
have resulted but for the change in practice. For example, if the
county is traditionally 90 percent irrigated and 10 percent non-
irrigated, but this year the county is now 50 percent irrigated and
50 percent non-irrigated, the final county yield will be adjusted to
an amount as if the county had 90 percent irrigated acreage.
(f) If yields are based on NASS data, the final county yield
will be the most current NASS yield at the time FCIC determines the
yield in accordance with the payment dates section of the applicable
Crop Provisions.
(g) The final county yield determined by FCIC is considered
final for the purposes of establishing whether an indemnity is due
and will not be revised for any reason.
(h) If there is not credible data available from any source, as
determined at the sole discretion of FCIC, to establish the final
county yield in accordance with this section, no coverage for the
crop year will be provided and your premium will be refunded.
16. Assignment of Indemnity
(a) You may assign your right to an indemnity for the crop year
only to creditors or other persons to whom you have a financial debt
or other pecuniary obligation. You may be required to provide proof
of the debt or other pecuniary obligation before we will accept the
assignment of indemnity.
(b) All assignments must be on our form and must be provided to
us. Each assignment form may contain more than one creditor or other
person to whom you have a financial debt or other pecuniary
obligation.
(c) Unless you have provided us with a properly executed
assignment of indemnity, we will not make any payment to a lien
holder or other person to whom you have a financial debt or other
pecuniary obligation even if you may have a lien or other assignment
recorded elsewhere. Under no circumstances will we be liable:
(1) To any lien holder or other person to whom you have a
financial debt or other pecuniary obligation where you have failed
to include such lien holder or person on a properly executed
assignment of indemnity provided to us; or
(2) To pay to all lien holders or other persons to whom you have
a financial debt or other pecuniary obligation any amount greater
than the total amount of indemnity owed under the policy.
(d) If we have received the properly executed assignment of
indemnity form:
(1) Only one payment will be issued jointly in the names of all
assignees and you; and
(2) Any assignee will have the right to submit all notices and
forms as required by the policy.
17. Transfer of Coverage and Right to Indemnity
If you transfer any part of your share during the crop year, you
may transfer your coverage rights, if the transferee is eligible for
crop insurance.
(a) We will not be liable for any more than the liability
determined in accordance with your policy that existed before the
transfer occurred.
(b) The transfer of coverage rights must be on our form and will
not be effective until approved by us in writing.
(c) Both you and the transferee are jointly and severally liable
for the payment of the premium and administrative fees.
(d) The transferee has all rights and responsibilities under
this policy consistent with the transferee's interest.
18. Other Insurance
(a) Nothing in this section prevents you from obtaining other
insurance not authorized under the Act. However, unless specifically
required by policy provisions, you must not obtain any other crop
insurance authorized under the Act on your share of the insured
crop.
(b) If you cannot demonstrate that you did not intend to have
more than one policy in effect, you may be subject to the
consequences authorized under this policy, the Act, or any other
applicable statute.
(c) If you can demonstrate that you did not intend to have more
than one policy in effect (For example, an application to transfer
your policy or written notification to an insurance provider that
states you want to purchase, or transfer, insurance and you want any
other policies for the crop canceled would demonstrate you did not
intend to have duplicate policies) and:
(1) One is an additional level of coverage policy and the other
is a CAT level of coverage policy:
(i) The additional level of coverage policy will apply if both
policies are with the same insurance provider or, if not, both
insurance providers agree; or
(ii) The policy with the earliest date of application will be in
force if both insurance providers do not agree; or
(2) Both are additional level of coverage policies or both are
CAT level of coverage policies, the policy with the earliest date of
application will be in force and the other policy will be void,
unless both policies are with:
(i) The same insurance provider and the insurance provider
agrees otherwise; or
(ii) Different insurance providers and both insurance providers
agree otherwise.
19. Crops as Payment
You must not abandon any crop to us. We will not accept any crop
as compensation for payments due us.
20. Notices
(a) All notices required to be given by you must be in writing
and received by your crop insurance agent within the designated time
unless otherwise provided by the notice requirement.
(1) Notices required to be given immediately may be by telephone
or in person and confirmed in writing.
(2) Time the notice is provided will be determined by the time
of our receipt of the written notice.
(3) If the date by which you are required to submit a report or
notice falls on Saturday, Sunday, or a Federal holiday, or if your
agent's office is, for any reason, not open for business on the date
you are required to submit such notice or report, such notice or
report must be submitted on the next business day.
(b) All notices and communications required to be sent by us to
you will be mailed to the address contained in your records located
with your crop insurance agent.
(1) Notice sent to such address will be conclusively presumed to
have been received by you.
[[Page 44218]]
(2) You should advise us immediately of any change of address.
21. Access to Insured Crop and Records, and Record Retention
(a) We, and any employee of USDA authorized to investigate or
review any matter relating to crop insurance, have the right to
examine the insured crop and all records related to the insured crop
and this policy, and any mediation, arbitration or litigation
involving the insured crop as often as reasonably required during
the record retention period.
(b) You must retain, and provide upon our request, or the
request of any employee of USDA authorized to investigate or review
any matter relating to crop insurance, complete records pertaining
to the planting, acres, share, replanting, inputs, production,
harvesting and disposition of the insured crop for a period of three
years after the end of the crop year or three years after the date
of final payment of indemnity, whichever is later. This requirement
also applies to all such records for acreage that is not insured.
(c) We, or any employee of USDA authorized to investigate or
review any matter relating to crop insurance, may extend the record
retention period beyond three years by notifying you of such
extension in writing.
(d) By signing the application for insurance authorized under
the Act or by continuing insurance for which you have previously
applied, you authorize us or USDA, or any person acting for us or
USDA authorized to investigate or review any matter relating to crop
insurance, to obtain records relating to the planting, acres, share,
replanting, inputs, production, harvesting, and disposition of the
insured crop from any person who may have custody of such records,
including but not limited to, FSA offices, banks, warehouses, gins,
cooperatives, marketing associations, and accountants. You must
assist in obtaining all records we or any employee of USDA
authorized to investigate or review any matter relating to crop
insurance request from third parties.
(e) Failure to provide access to the insured crop or the farm,
maintain or provide any required records, authorize access to the
records maintained by third parties, or assist in obtaining all such
records will result in a determination that no indemnity is due for
those acres in which the records are not provided.
22. Amounts Due Us
(a) Interest will accrue at the rate of 1.25 percent simple
interest per calendar month, or any portion thereof, on any unpaid
amount owed to us or on any unpaid administrative fees owed to FCIC.
(1) For the purpose of premium amounts owed to us or
administrative fees owed to FCIC, interest will start to accrue on
the first day of the month following the premium billing date
specified in the Special Provisions.
(2) We will collect any unpaid amounts owed to us and any
interest owed thereon and, prior to the termination date, we will
collect any administrative fees and interest owed thereon to FCIC.
After the termination date, FCIC will collect any unpaid
administrative fees and any interest owed thereon for any
catastrophic risk protection policy and we will collect any unpaid
administrative fees and any interest owed thereon for additional
coverage policies.
(b) For the purpose of any other amounts due us, such as
repayment of indemnities found not to have been earned, interest
will start to accrue on the date that notice is issued to you for
the collection of the unearned amount.
(1) Amounts found due under this paragraph will not be charged
interest if payment is made within 30 days of issuance of the notice
by us.
(2) The amount will be considered delinquent if not paid within
30 days of the date the notice is issued by us.
(c) All amounts paid will be applied first to expenses of
collection (See subsection (d) of this section) if any, second to
the reduction of accrued interest, and then to the reduction of the
principal balance.
(d) If we determine that it is necessary to contract with a
collection agency or to employ an attorney to assist in collection,
you agree to pay all of the expenses of collection.
(e) The portion of the amounts owed by you for a policy
authorized under the Act that are owed to FCIC may be collected in
part through administrative offset from payments you receive from
United States government agencies in accordance with 31 U.S.C.
chapter 37. Such amounts include all administrative fees, and the
share of the overpaid indemnities and premiums retained by FCIC plus
any interest owed thereon.
23. Mediation, Arbitration, Appeal, Reconsideration, and Administrative
and Judicial Review
(a) All expected county yields and final county yields are
calculated by FCIC in accordance with section 15. However,
calculations of expected county yields and final county yields are
matters of general applicability. Any matter of general
applicability is not subject to appeal under 7 CFR part 400, subpart
J or 7 CFR part 11. Your only remedy is judicial review but if you
want to seek judicial review of any FCIC determination that is a
matter of general applicability, you must request a determination of
non-appealability from the Director of the National Appeals Division
in accordance with 7 CFR 11.6 before seeking judicial review.
(b) The time frame to request a determination of non-
appealability from the Director of the National Appeals Division is
not later than 30 days after the date the yields are published on
the RMA Web site.
(c) With respect to good farming practices:
(1) We will make preliminary decisions regarding what
constitutes a good farming practice.
(2) If you disagree with our decision of what constitutes a good
farming practice, you must request a determination from FCIC of what
constitutes a good farming practice.
(3) If you do not agree with any determination made by FCIC
regarding what constitutes a good farming practice:
(i) You may request reconsideration by FCIC of this
determination in accordance with the reconsideration process
established for this purpose and published at 7 CFR part 400,
subpart J; or
(ii) You may file suit against FCIC as follows:
(A) You are not required to request reconsideration from FCIC
before filing suit;
(B) Any suit must be brought against FCIC in the United States
district court for the district in which the insured acreage is
located; and
(C) Suit must be filed against FCIC not later than one year
after the date:
(1) Of the determination made by FCIC regarding what constitutes
a good farming practice; or
(2) Reconsideration is completed, if reconsideration was
requested under section 23(c)(2)(i).
(d) If you elect to bring suit against FCIC after seeking a
Director's Review in accordance with section 23(a), such suit must
be filed against FCIC in the United States district court for the
district in which the insured acreage is located not later than one
year after the date of the decision rendered by the Director. Under
no circumstances can you recover any punitive, compensatory or any
other damages from FCIC.
(e) With respect to any other determination under this policy:
(1) If you and we fail to agree on any determination not covered
by sections 23(a) and (c), the disagreement may be resolved through
mediation. To resolve any dispute through mediation, you and we must
both:
(i) Agree to mediate the dispute;
(ii) Agree on a mediator; and
(iii) Be present or have a designated representative who has
authority to settle the case present, at the mediation.
(2) If resolution cannot be reached through mediation, or you
and we do not agree to mediation, the disagreement must be resolved
through arbitration in accordance with the rules of the American
Arbitration Association (AAA), unless otherwise stated in this
subsection or rules are established by FCIC for this purpose. Any
mediator or arbitrator with a familial, financial or other business
relationship to you or us, or our agent or loss adjuster, is
disqualified from hearing the dispute.
(3) If the dispute in any way involves a policy or procedure
interpretation, regarding whether a specific policy provision or
procedure is applicable to the situation, how it is applicable, or
the meaning of any policy provision or procedure, either you or we
must obtain an interpretation from FCIC in accordance with 7 CFR
part 400, subpart X or such other procedures as established by FCIC.
(i) Any interpretation by FCIC will be binding in any mediation
or arbitration.
(ii) Failure to obtain any required interpretation from FCIC
will result in the nullification of any agreement or award.
(iii) An interpretation by FCIC of a policy provision is
considered a determination that is a matter of general
applicability. However, before such interpretation may be challenged
in the courts, you must to request a determination of non-
appealability from the Director of the National Appeals Division is
not later than 30 days after the date the interpretation was
published on the RMA Web site.
[[Page 44219]]
(4) Unless the dispute is resolved through mediation, the
arbitrator must provide to you and us a written statement describing
the issues in dispute, the factual findings, the determinations and
the amount and basis for any award and breakdown by claim for any
award.
(i) The statement must also include any amounts awarded for
interest.
(ii) Failure of the arbitrator to provide such written statement
will result in the nullification of all determinations of the
arbitrator.
(iii) All agreements reached through settlement, including those
resulting from mediation, must be in writing and contain at a
minimum a statement of the issues in dispute and the amount of the
settlement.
(5) Regardless of whether mediation is elected:
(i) The initiation of arbitration proceedings must occur within
one year of the date we denied your claim or rendered the
determination with which you disagree, whichever is later;
(ii) If you fail to initiate arbitration in accordance with
section 23(e)(5)(i) and complete the process, you will not be able
to resolve the dispute through judicial review;
(iii) If arbitration has been initiated in accordance with
section 23(e)(5)(i) and completed, and judicial review is sought,
suit must be filed not later than one year after the date the
arbitration decision was rendered; and
(iv) In any suit, if the dispute in any way involves a policy or
procedure interpretation, regarding whether a specific policy
provision or procedure is applicable to the situation, how it is
applicable, or the meaning of any policy provision or procedure, an
interpretation must be obtained from FCIC in accordance with 7 CFR
part 400, subpart X or such other procedures as established by FCIC.
Such interpretation will be binding on all parties.
(6) Any decision rendered in arbitration is binding on you and
us unless judicial review is sought in accordance with section
23(e)(5)(iii). Notwithstanding any provision in the rules of the
AAA, you and we have the right to judicial review of any decision
rendered in arbitration.
(f) In any mediation, arbitration, appeal, administrative
review, reconsideration or judicial process, the terms of this
policy, the Act, and the regulations published at 7 CFR chapter IV,
including the provisions of 7 CFR part 400, subpart P, are binding.
Conflicts between this policy and any state or local laws will be
resolved in accordance with section 27. If there are conflicts
between any rules of the AAA and the provisions of your policy, the
provisions of your policy will control.
(g) Except as provided in section 23(h), no award or settlement
in mediation, arbitration, appeal, administrative review or
reconsideration process or judicial review can exceed the amount of
liability established or which should have been established under
the policy, except for interest awarded in accordance with section
24.
(h) In a judicial review only, you may recover attorneys' fees
or other expenses, or any punitive, compensatory or any other
damages from us only if you obtain a determination from FCIC that
we, our agent or loss adjuster failed to comply with the terms of
this policy or procedures issued by FCIC and such failure resulted
in you receiving a payment in an amount that is less than the amount
to which you were entitled. Requests for such a determination should
be addressed to the following: USDA/RMA/Deputy Administrator for
Compliance/Stop 0806, 1400 Independence Avenue, S.W., Washington,
D.C. 20250-0806.
24. Interest Limitations
We will pay simple interest computed on the net indemnity
ultimately found to be due by us or by a final judgment of a court
of competent jurisdiction, from and including the 61st day after the
final county yield or final county revenue release date as specified
on the applicable crop provision.
(a) Interest will be paid only if the reason for our failure to
timely pay is NOT due to your failure to provide information or
other material necessary for the computation or payment of the
indemnity.
(b) The interest rate will be that established by the Secretary
of the Treasury under section 12 of the Contract Disputes Act of
1978 (41 U.S.C. 611) and published in the Federal Register
semiannually on or about January 1 and July 1 of each year, and may
vary with each publication.
25. Descriptive Headings
The descriptive headings of the various policy provisions are
formulated for convenience only and are not intended to affect the
construction or meaning of any of the policy provisions.
26. Conformity to Food Security Act
Although your violation of a number of Federal statutes,
including the Act, may cause cancellation, termination, or voidance
of your insurance contract, you should be specifically aware that
your policy will be canceled if you are determined to be ineligible
to receive benefits under the Act due to violation of the controlled
substance provisions (title XVII) of the Food Security Act of 1985
(Pub. L. 99-198) and the regulations promulgated under the Act by
USDA.
(a) Your insurance policy will be canceled if you are
determined, by the appropriate Agency, to be in violation of these
provisions.
(b) We will recover any and all monies paid to you or received
by you during your period of ineligibility, and your premium will be
refunded, less an amount for expenses and handling equal to 20
percent of the premium paid or to be paid by you.
27. Applicability of State and Local Statutes
If the provisions of this policy conflict with statutes of the
State or locality in which this policy is issued, the policy
provisions will prevail. State and local laws and regulations in
conflict with Federal statutes, this policy, and the applicable
regulations do not apply to this policy.
28. Concealment, Misrepresentation, or Fraud
(a) If you have falsely or fraudulently concealed the fact that
you are ineligible to receive benefits under the Act or if you or
anyone assisting you has intentionally concealed or misrepresented
any material fact relating to this policy:
(1) This policy will be voided; and
(2) You may be subject to remedial sanctions in accordance with
7 CFR part 400, subpart R.
(b) Even though the policy is void, you will still be required
to pay 20 percent of the premium that you would otherwise be
required to pay to offset costs incurred by us in the service of
this policy. If previously paid, the balance of the premium will be
returned.
(c) Voidance of this policy will result in you having to
reimburse all indemnities paid for the crop year in which the
voidance was effective.
(d) Voidance will be effective on the first day of the insurance
period for the crop year in which the act occurred and will not
affect the policy for subsequent crop years unless a violation of
this section also occurred in such crop years.
(e) If you willfully and intentionally provide false or
inaccurate information to us or FCIC or you fail to comply with a
requirement of FCIC, in accordance with 7 CFR part 400, subpart R,
FCIC may impose on you:
(1) A civil fine for each violation in an amount not to exceed
the greater of:
(i) The amount of the pecuniary gain obtained as a result of the
false or inaccurate information provided or the noncompliance with a
requirement of this title; or
(ii) $10,000; and
(2) A disqualification for a period of up to 5 years from
receiving any monetary or nonmonetary benefit provided under each of
the following:
(i) Any crop insurance policy offered under the Act;
(ii) The Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7333 et seq.);
(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.);
(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714
et seq.);
(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.);
(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801
et seq.);
(vii) The Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.); and
(viii) Any Federal law that provides assistance to a producer of
an agricultural commodity affected by a crop loss or a decline in
the prices of agricultural commodities.
29. Multiple Benefits
(a) If you are eligible to receive an indemnity under an
additional coverage plan of insurance and are also eligible to
receive benefits for the same loss under any other USDA program, you
may receive benefits under both programs, unless specifically
limited by the crop insurance contract or by law.
(b) Any amount received for the same loss from any USDA program,
in addition to the crop insurance payment, will not exceed the
difference between the crop insurance payment and the amount of the
loss, unless
[[Page 44220]]
otherwise provided by law. The amount of loss is the difference
between the total value of the insured crop before the loss and the
total value of the insured crop after the loss.
(c) FSA or another USDA agency, as applicable, will determine
and pay the additional amount due you for any applicable USDA
program, after first considering the amount of any crop insurance
indemnity.
30. Examples
The following are examples of the calculation of the premium,
amount of insurance and indemnity for each of the three plans of
insurance under ARPI. Your information will likely be different and
you should consult the actuarial documents in your county and the
policy information. The following facts are for illustration
purposes only and apply to each of the examples.
Farmer A farms 100 acres in county X and has a 100 percent
share, or 1.000, in those acres. From the actuarial documents in
county X, Farmer A elects the 75 percent coverage level and a
protection factor of 1.10. The actuarial documents in county X also
show that the expected county yield is 141.4 bushels per acre, the
projected price is $4.00, and the expected county revenue is
$565.60. The subsidy factor for the 75 percent coverage level is .55
for revenue coverage and .59 for yield coverage. The total loss
factor for county X is 82 percent or .82. At the end of the
insurance period, for county X, FCIC releases a harvest price of
$4.57 and a final county yield for county X of 75.0 bushels.
The premium rate is based on the published volatility factor and
for this example is .0166 for Area Revenue Protection, .0146 for
Area Revenue Protection with Harvest Price Exclusion, and .0116 for
Area Yield Protection.
Area Revenue Protection Example
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times
protection factor = dollar amount of insurance:
141.4 bushels x $4.00 x 1.1 = $622.16 dollar amount of insurance per
acre
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times
share = policy protection:
$622.16 x 100.0 x 1.000 = $62,216 policy protection.
Step 3: Calculate the Total Premium
Formula: Policy protection times premium rate = total premium:
$62,216 x .0166 = $1,033 total premium.
Step 4: Calculate the Subsidy amount
Formula: Total premium times subsidy factor = subsidy:
$1,033 x .55 = $568 subsidy.
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy = producer premium:
$1,033-$568 = $465 producer premium.
Step 6: Calculate the Final Policy Protection
Formula: Expected county yield times harvest price times
protection factor times acres times share = Final Policy Protection:
141.4 bushels x $4.57 x 1.10 x 100.0 x 1.000 = $71,082 final policy
protection.
Step 7: Calculate the Final County Revenue
Formula: Final county yield times harvest price = final county
revenue:
75.0 bushels x $4.57 = $342.75 final county revenue.
Step 8: Calculate the Trigger Revenue
Formula: Expected county yield times (greater of projected price
or harvest price) times coverage level = trigger revenue:
141.4 bushels x $4.57 x .75 = $484.65 trigger revenue.
Step 9: Calculate the Payment Factor
Formula: (Trigger revenue minus final county revenue) divided by
(trigger revenue minus (expected county revenue times (1 minus total
loss factor))) = payment factor:
($484.65-$342.75) / ($484.65-($565.60 x (1-.82))) = .371 payment
factor.
Step 10: Calculate the Indemnity
Formula: Final policy protection times payment factor =
indemnity:
$71,082 x .371 = $26,371 indemnity.
Area Revenue Protection with Harvest Price Exclusion Example
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times
protection factor = dollar amount of insurance:
141.4 bushels x $4.00 x 1.10 = $622.16 dollar amount of insurance
per acre.
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times
share = policy protection:
$622.16 x 100.0 x 1.000 = $62,216 policy protection.
Step 3: Calculate the Total Premium:
Formula: Policy protection times rate = total premium:
$62,216 x .0146 rate = $908 total premium.
Step 4: Calculate the Subsidy amount
Formula: Total premium times subsidy factor = subsidy:
$908 times .55 = $499 subsidy.
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy = producer premium:
$908-$499 = $409 producer premium.
Step 6: Calculate the Final Policy Protection
Use the policy protection amount calculated at the beginning of
the insurance period in Step 2:
$62,216 policy protection.
Step 7: Calculate the Final County Revenue
Formula: Final county yield times harvest price = final county
revenue:
75.0 bushels x $4.57 = $342.75 final county revenue.
Step 8: Calculate the Trigger Revenue
Formula: Expected county yield times projected price times
coverage level = trigger revenue:
141.4 bushels x $4.00 x .75 = $424.20 trigger revenue.
Step 9: Calculate the Payment Factor
Formula: (Trigger revenue minus final county revenue) divided by
(trigger revenue minus (expected county revenue times (1 minus total
loss factor))) = payment factor:
($424.20-$342.75) / ($424.20-($565.60 x (1-.82))) = .253.
Step 10: Calculate the Indemnity
Formula: Final policy protection times payment factor =
indemnity:
$62,216 x .253 = $15741 indemnity.
Area Yield Protection Example
Step 1: Calculate the Dollar Amount of Insurance per Acre
Formula: Expected county yield times projected price times
protection factor = dollar amount of insurance:
141.4 bushels x $4.00 x 1.10 = $622.16 dollar amount of insurance
per acre.
Step 2: Calculate the Policy Protection
Formula: Dollar amount of insurance per acre times acres times
share = policy protection:
$622.16 x 100.0 x 1.000 = $62,216 policy protection.
Step 3: Calculate the Total Premium
Formula: policy protection times premium rate = total premium:
$62,216 x .0116 rate = $722 total premium.
Step 4: Calculate the Subsidy amount
Formula: Total premium times subsidy factor = subsidy:
$722 x .59 subsidy factor = $426 subsidy.
Step 5: Calculate the Producer Premium
Formula: Total premium minus subsidy = producer premium:
$722-$426 = $296 producer premium.
Step 6: Calculate the Final Policy Protection
Use the policy protection amount calculated at the beginning of
the insurance period in Step 2:
$62,216 policy protection.
Step 7: Calculate the Trigger Yield
Formula: Expected county yield times coverage level = trigger
yield:
141.4 bushels times .75 = 106.1 bushels.
Step 8: Calculate the Payment Factor
Formula: (Trigger yield minus final county yield) divided by
(trigger yield minus (expected county yield times (1 minus total
loss factor))) = payment factor:
(106.1 bushels-75.0 bushels) / (106.1 bushels-(141.4 bushels x
(1-.82))) = .386.
Step 9: Calculate the Indemnity
Formula: Final policy protection times payment factor =
indemnity:
$62,216 times .386 = $24,015 Indemnity.
[[Page 44221]]
Sec. 407.10 [Reserved]
Sec. 407.11 Area risk protection insurance for corn.
The corn crop insurance provisions for Area Risk Protection
Insurance for the 2013 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Corn Crop Insurance Provisions
1. Definitions
Harvest. Combining or picking corn for grain or cutting for hay,
silage, fodder, or earlage.
Planted acreage. In addition to the definition contained in the
Area Risk Protection Insurance Basic Provisions, corn seed that is
broadcast and subsequently mechanically incorporated will not be
considered planted.
2. Insured Crop
(a) The insured crop will be all field corn that is:
(1) Yellow dent or white corn, including mixed yellow and white,
waxy or high-lysine corn, high-oil corn blends containing mixtures
of at least 90 percent high yielding yellow dent female plants with
high-oil male pollinator plants, or commercial varieties of high-
protein hybrids.
(2) Grown on insurable acreage in the county listed on the
accepted application;
(3) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(4) Planted with the intent to be harvested; and
(5) Not planted into an established grass or legume or
interplanted with another crop.
(b) Corn other than that specified in section 2(a)(1) (including
but not limited to high-amylose, high-oil or high-protein (except as
authorized in section 2(a)(1)), flint, flour, Indian, or blue corn,
or a variety genetically adapted to provide forage for wildlife or
any other open pollinated corn) may be insurable under this policy:
(1) If specified in the Special Provisions;
(2) The insurability requirements in 2(a) apply to this other
corn and additional requirements for insurability may be stated for
this other corn in the Special Provisions; and
(3) This other corn will be insured using the yields, rates, and
prices for field corn unless otherwise specified in the actuarial
documents.
3. Available Plans of Insurance
Area Revenue Protection, Area Revenue Protection with the
Harvest Price Exclusion, and Area Yield Protection are available for
corn.
4. Payment Dates
(a) Final county revenues and final county yields will be
determined prior to April 16 following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to May 16 following the crop year and following the
determination of the final county revenue or the final county yield,
as applicable.
5. Program Dates
------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, January 31.......... November 30.
Kendall, Bexar, Wilson,
Karnes, Goliad, Victoria,
and Jackson Counties,
Texas, and all Texas
counties lying south
thereof.
El Paso, Hudspeth, February 15......... November 30.
Culberson, Reeves, Loving,
Winkler, Ector, Upton,
Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch,
San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant,
Wise, and Cooke Counties,
Texas, and all Texas
Counties lying south and
east thereof to and
including Terrell,
Crockett, Sutton, Kimble,
Gillespie, Blanco, Comal,
Guadalupe, Gonzales, De
Witt, Lavaca, Colorado,
Wharton, and Matagorda
Counties, Texas.
Alabama; Arizona; Arkansas; February 28......... November 30.
California; Florida;
Georgia; Louisiana;
Mississippi; Nevada; North
Carolina; South Carolina.
All other Texas counties and March 15............ November 30.
all other states.
------------------------------------------------------------------------
Sec. 407.12 Area risk protection insurance for cotton.
The cotton crop insurance provisions for Area Risk Protection
Insurance for the 2013 and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Cotton Crop Insurance Provisions
1. Definitions
Harvest. Removal of the seed cotton from the stalk.
Planted acreage. In addition to the definition contained in the
Area Risk Protection Insurance Basic Provisions, cotton seed
broadcast and subsequently mechanically incorporated will not be
considered planted.
2. Insured Crop
(a) The insured crop will be all upland cotton:
(1) Grown on insurable acreage in the county listed on the
accepted application;
(2) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(3) Planted with the intent to be harvested.
(b) That is not (unless allowed by the Special Provisions):
(1) Colored cotton lint;
(2) Planted into an established grass or legume; or
(3) Interplanted with another spring planted crop;
(c) Cotton other than upland cotton may be insurable under this
policy:
(1) If specified in the Special Provisions;
(2) The insurability requirements in 2(a) apply to other cotton
and additional requirements for insurability may be stated for other
cotton in the Special Provisions;
(3) Other cotton will be insured using the yields, rates, and
prices for cotton unless otherwise specified in the actuarial
documents
3. Available Plans of Insurance
Area Revenue Protection, Area Revenue Protection with the
Harvest Price Exclusion, and Area Yield Protection are available for
cotton.
4. Payment Dates
(a) Final county revenues and final county yields will be
determined prior to July 16 following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to August 15 following the crop year and following the
determination of the final county revenue or the final county yield,
as applicable.
5. Program Dates
------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, January 31.......... November 30.
Kendall, Bexar, Wilson,
Karnes, Goliad, Victoria,
and Jackson Counties,
Texas, and all Texas
counties lying south
thereof.
[[Page 44222]]
Alabama; Arizona; Arkansas; February 28......... November 30.
California; Florida;
Georgia; Louisiana;
Mississippi; Nevada; North
Carolina; South Carolina;
El Paso, Hudspeth,
Culberson, Reeves, Loving,
Winkler, Ector, Upton,
Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch,
San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant,
Wise, and Cooke Counties,
Texas, and all Texas
counties lying south and
east thereof to and
including Terrell,
Crockett, Sutton, Kimble,
Gillespie, Blanco, Comal,
Guadalupe, Gonzales, De
Witt, Lavaca, Colorado,
Wharton, and Matagorda
Counties, Texas.
All other Texas counties and March 15............ November 30.
all other States.
------------------------------------------------------------------------
Sec. 407.13 Area risk protection insurance for forage.
The forage crop insurance provisions for Area Risk Protection
Insurance for the 2013 and succeeding crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Forage Crop Insurance Provisions
1. Definitions
Harvest. Removal of the forage from the field, and rotational
grazing.
Planted acreage In addition to the provisions in the Area Risk
Protection Insurance 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, unless
otherwise provided by the Special Provisions.
Rotational grazing. The defoliation of the insured forage by
livestock, within a pasturing system whereby the forage field is
subdivided into smaller parcels and livestock are moved from one
area to another, allowing a period of grazing followed by a period
for forage regrowth.
2. Insured Crop
The insured crop will be the forage types shown on the actuarial
documents:
(a) Grown on insurable acreage in the county listed on the
accepted application;
(b) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(c) Intended for harvest; and
(d) Not grown with another crop.
3. Available Plans of Insurance
Only Area Yield Protection is available for forage.
4. Insurable Acreage
In addition to section 5 of the Area Risk Protection Insurance
Basic Provisions, acreage seeded to forage after July 1 of the
previous crop year will not be insurable.
5. Payment Dates
(a) Final county yields will be determined prior to May 1
following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to May 31 following the crop year and following the
determination of the final county yield.
6. Program Dates
November 30 is the cancellation and termination date for all
states. The contract change date is August 31 for all states.
7. Annual Premium
In lieu of section 7(f) of the Area Risk Protection Insurance
Basic Provisions, the annual premium is earned and payable on the
acreage reporting date. You will be billed for premium due on the
date shown in the Special Provisions. The premium will be determined
based on the rate shown on the actuarial documents.
Sec. 407.14 [Reserved]
Sec. 407.15 Area risk protection insurance for grain sorghum.
The grain sorghum crop insurance provisions for Area Risk
Protection Insurance for the 2013 and succeeding crop years are as
follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Grain Sorghum Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the sorghum for grain or cutting
for hay, silage, or fodder.
Planted acreage. In addition to the definition contained in the
Area Risk Protection Insurance Basic Provisions, sorghum seed
broadcast and subsequently mechanically incorporated will not be
considered planted.
2. Insured Crop
(a) The insured crop will be all sorghum excluding hybrid
sorghum seed:
(1) Grown on insurable acreage in the county listed on the
accepted application;
(2) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(3) Planted with the intent to be harvested; and
(4) Not planted into an established grass or legume or
interplanted with another crop.
(b) Other sorghum may be insurable under this policy:
(1) If specified in the Special Provisions;
(2) The insurability requirements in 2(a) apply to these other
sorghum and additional requirements for insurability may be stated
for these crops in the Special Provisions; and
(3) This other sorghum will be insured using the yields, rates,
and prices for sorghum unless otherwise specified in the actuarial
documents.
3. Available Plans of Insurance
Area Revenue Protection, Area Revenue Protection with the
Harvest Price Exclusion, and Area Yield Protection are available for
sorghum.
4. Payment Dates
(a) Final county revenues and final county yields will be
determined prior to April 16 following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to May 16 following the crop year and following the
determination of the final county revenue or the final county yield,
as applicable.
5. Program Dates
------------------------------------------------------------------------
Cancellation and
State and County termination dates Contract change date
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, January 31.......... November 30.
Kendall, Bexar, Wilson,
Karnes, Goliad, Victoria,
and Jackson Counties,
Texas, and all Texas
counties lying south
thereof.
El Paso, Hudspeth, February 15......... November 30.
Culberson, Reeves, Loving,
Winkler, Ector, Upton,
Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch,
San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant,
Wise, and Cooke Counties,
Texas, and all Texas
counties south and east
thereof to and including
Terrell, Crockett, Sutton,
Kimble, Gillespie, Blanco,
Comal, Guadalupe, Gonzales,
De Witt, Lavaca, Colorado,
Wharton, and Matagorda
Counties, Texas.
Alabama; Arizona; Arkansas; February 28......... November 30.
California; Florida;
Georgia; Louisiana;
Mississippi; Nevada; North
Carolina; and South
Carolina.
[[Page 44223]]
All other Texas counties and March 15............ November 30.
all other states.
------------------------------------------------------------------------
Sec. 407.16 Area risk protection insurance for soybean.
The soybean crop insurance provisions for Area Risk Protection
Insurance for the 2013 and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Soybean Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the soybeans.
Planted acreage. In addition to the definition contained in the
Area Risk Protection Insurance Basic Provisions, land on which seed
is initially spread onto the soil surface by any method and which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth, will also be considered planted.
2. Insured Crop
The insured crop will be all soybeans:
(a) Grown on insurable acreage in the county listed on the
accepted application;
(b) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(c) Planted with the intent to be harvested; and
(d) Not planted into an established grass or legume or
interplanted with another crop.
3. Available Plans of Insurance
Area Revenue Protection, Area Revenue Protection with the
Harvest Price Exclusion, and Area Yield Protection are available for
soybeans.
4. Payment Dates
(a) Final county revenues and final county yields will be
determined prior to April 16 following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to May 16 following the crop year and following the
determination of the final county revenue or the final county yield,
as applicable.
5. Program Dates
------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
------------------------------------------------------------------------
Jackson, Victoria, Goliad, January 31.......... November 30.
Bee, Live Oak, McMullen, La
Salle, and Dimmit Counties,
Texas and all Texas
counties lying south
thereof.
Alabama; Arizona; Arkansas; February 28......... November 30.
California; Florida;
Georgia; Louisiana;
Mississippi; Nevada; North
Carolina; South Carolina;
and El Paso, Hudspeth,
Culberson, Reeves, Loving,
Winkler, Ector, Upton,
Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch,
San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant,
Wise, and Cooke Counties,
Texas, and all Texas
counties lying south and
east thereof to and
including Maverick, Zavala,
Frio, Atascosa, Karnes, De
Witt, Lavaca, Colorado,
Wharton, and Matagorda
Counties, Texas.
All other Texas counties and March 15............ November 30.
all other states.
------------------------------------------------------------------------
Sec. 407.17 Area risk protection insurance for wheat.
The wheat crop insurance provisions for Area Risk Protection
Insurance for the 2013 and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Area Risk Protection Insurance
Wheat Crop Insurance Provisions
1. Definitions
Harvest. Combining or threshing the wheat for grain.
Planted acreage. In addition to the definition contained in the
Area Risk Protection Insurance Basic Provisions, land on which seed
is initially spread onto the soil surface by any method and which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth will also be considered planted.
2. Insured Crop
The insured crop will be all wheat:
(a) Grown on insurable acreage in the county listed on the
accepted application;
(b) Properly planted by the final planting date and reported on
or before the acreage reporting date;
(c) Planted with the intent to be harvested;
(d) Not planted into an established grass or legume;
(e) Not interplanted with another crop; and
(f) Not planted as a nurse crop, unless seeded at the normal
rate and intended for harvest as grain.
3. Available Plans of Insurance
Area Revenue Protection, Area Revenue Protection with the
Harvest Price Exclusion, and Area Yield Protection are available for
wheat.
4. Payment Dates
(a) Final county revenues and final county yields will be
determined prior to April 1 following the crop year.
(b) If an indemnity is due, we will issue any payment to you
prior to May 1 following the crop year and following the
determination of the final county revenue or the final county yield,
as applicable.
5. Program Dates
------------------------------------------------------------------------
Cancellation and
State and county termination dates Contract change date
------------------------------------------------------------------------
All Colorado counties except September 30........ June 30.
Alamosa, Conejos, Costilla,
Rio Grande, and Saguache;
all Montana counties except
Daniels and Sheridan
Counties; all South Dakota
counties except Corson,
Walworth, Edmonds, Faulk,
Spink, Beadle, Kingsbury,
Miner, McCook, Turner, and
Yankton Counties and all
South Dakota counties east
thereof; all Wyoming
counties except Big Horn,
Fremont, Hot Springs, Park,
and Washakie Counties; and
all other states except
Alaska, Arizona,
California, Maine,
Minnesota, Nevada, New
Hampshire, North Dakota,
Utah, and Vermont.
Arizona; California; Nevada; October 31.......... June 30.
and Utah.
[[Page 44224]]
Alaska; Alamosa, Conejos, March 15............ November 30.
Costilla, Rio 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
east thereof; Vermont; and
Big Horn, Fremont, Hot
Springs, Park, and Washakie
Counties, Wyoming.
------------------------------------------------------------------------
Signed in Washington, DC, on July 7, 2011.
William J. Murphy,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2011-17781 Filed 7-21-11; 8:45 am]
BILLING CODE 3410-08-P