[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2000 Edition]
[From the U.S. Government Printing Office]



[[Page i]]


                    7


          Parts 400 to 699

                         Revised as of January 1, 2000

Agriculture





          Containing a Codification of documents 
          of general applicability and future effect
          As of January 1, 2000
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2000



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 7:
    Subtitle B--Regulations of the Department of Agriculture--
      Continued:
          Chapter IV--Federal Crop Insurance Corporation, 
          Department of Agriculture                                  5
          Chapter V--Agricultural Research Service, Department 
          of Agriculture                                           585
          Chapter VI--Natural Resources Conservation Service, 
          Department of Agriculture                                603
  Finding Aids:
      Table of CFR Titles and Chapters........................     737
      Alphabetical List of Agencies Appearing in the CFR......     755
      List of CFR Sections Affected...........................     765



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

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  7 CFR 400.1 refers 
                       to title 7, part 400, 
                       section 1.

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

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 2000), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
info@fedreg.nara.gov.

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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Weekly Compilation of Presidential Documents and 
the Privacy Act Compilation are available in electronic format at 
www.access.gpo.gov/nara (``GPO Access''). For more information, contact 
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Office. Phone 202-512-1530, or 888-293-6498 (toll-free). E-mail, 
gpoaccess@gpo.gov.

[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
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site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 2000.



[[Page ix]]



                               THIS TITLE

    Title 7--Agriculture is composed of fifteen volumes. The parts in 
these volumes are arranged in the following order: parts 1-26, 27-52, 
53-209, 210-299, 300-399, 400-699, 700-899, 900-999, 1000-1199, 1200-
1599, 1600-1899, 1900-1939, 1940-1949, 1950-1999, and part 2000 to end. 
The contents of these volumes represent all current regulations codified 
under this title of the CFR as of January 1, 2000.

    The Food and Nutrition Service current regulations in the volume 
containing parts 210-299, include the Child Nutrition Programs and the 
Food Stamp Program. The regulations of the Federal Crop Insurance 
Corporation are found in the volume containing parts 400-699.

    All marketing agreements and orders for fruits, vegetables and nuts 
appear in the one volume containing parts 900-999. All marketing 
agreements and orders for milk appear in the volume containing parts 
1000-1199. Part 900--General Regulations is carried as a note in the 
volume containing parts 1000-1199, as a convenience to the user.

    Redesignation tables appear in the Finding Aids section of the 
volumes containing parts 210-299 and parts 1600-1899.

    For this volume, Shelley C. Featherson was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]





[[Page 1]]



                          TITLE 7--AGRICULTURE




                  (This book contains parts 400 to 699)

  --------------------------------------------------------------------
                                                                    Part

  SUBTITLE B--Regulations of the Department of Agriculture (Continued):

chapter iv--Federal Crop Insurance Corporation, Department 
  of Agriculture............................................         400

chapter v--Agricultural Research Service, Department of 
  Agriculture...............................................         500

chapter vi--Natural Resources Conservation Service, 
  Department of Agriculture.................................         600

[[Page 3]]

  Subtitle B--Regulations of the Department of Agriculture (Continued)

[[Page 5]]



                        CHAPTER IV--FEDERAL CROP
                         INSURANCE CORPORATION,
                        DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page
400             General administrative regulations..........           7
401             General crop insurance regulations; 
                    regulations for the 1988 through 1998 
                    contract years..........................          67
402             Catastrophic Risk Protection Endorsement; 
                    regulations for the 1999 and subsequent 
                    reinsurance years.......................         172
403             General crop insurance regulation...........         177
404             [Reserved]
405             Apple crop insurance regulations for the 
                    1986 through the 1998 crop years........         183
406             Nursery crop insurance regulations..........         192
407             Group Risk Plan of Insurance regulations for 
                    the 2000 and succeeding crop years......         199
408             [Reserved]
409             Arizona--California citrus insurance 
                    regulations.............................         215
410-411         [Reserved]
412             Public information--Freedom of information..         222
413             [Reserved]
414             Forage seeding crop insurance...............         223
415             Forage production crop insurance regulations         229
416             Pea crop insurance regulations for the 1986 
                    through 1997 crop years.................         236
417-421         [Reserved]
422             Potato crop insurance regulations...........         243
423-424         [Reserved]
425             Peanut crop insurance regulations for the 
                    1993 through 1998 crop years............         255
426-429         [Reserved]
430             Sugar beet crop insurance regulations.......         262
431-432         [Reserved]
433             Dry bean crop insurance regulations.........         270
434             [Reserved]

[[Page 6]]

435             Tobacco (quota plan) crop insurance 
                    regulations; regulations for the 1985 
                    through 1998 crop years.................         277
436             [Reserved]
437             Sweet corn crop insurance regulations for 
                    the 1985 through 1997 crop years........         284
438-440         [Reserved]
441             Table grape crop insurance regulations for 
                    the 1987 through 1997 crop years........         291
442             [Reserved]
443             Hybrid seed crop insurance regulations for 
                    the 1986 through 1997 crop years........         297
444             [Reserved]
445             Pepper crop insurance regulations...........         307
446             Walnut crop insurance regulations...........         314
447             Popcorn crop insurance regulations for the 
                    1987 through the 1998 crop years........         320
448-449         [Reserved]
450             Prune crop insurance regulations for the 
                    1996 and succeeding crop years..........         326
451             Canning and processing peach crop insurance 
                    regulations.............................         332
452-453         [Reserved]
454             Fresh market tomato (guaranteed production 
                    plan) crop insurance regulations for the 
                    1987 through 1997 crop years............         338
455             Macadamia nut crop insurance regulations for 
                    the 1988 through the 1997 crop years....         346
456             Macadamia tree crop insurance regulations 
                    for the 1988 through 1997 crop years....         352
457             Common crop insurance regulations...........         358
458             Special California crop insurance 
                    regulations.............................         578

[[Page 7]]



PART 400--GENERAL ADMINISTRATIVE REGULATIONS--Table of Contents




Subpart A--Late Planting Agreement Option; Regulations for the 1987 and 
                          Succeeding Crop Years

Sec.
400.1  Availability of the late planting option.
400.2  Definitions.
400.3  Responsibilities of the insured.
400.4  Applicability to crops insured.
400.5  The Late Planting Agreement.

 Subpart B--Individual Yield Coverage Plan Regulations for the 1985 and 
                          Succeeding Crop Years

400.15  Availability of Individual Yield Coverage Plan.
400.16  Definitions.
400.17  Yield certification and acceptability.
400.18  Responsibilities.
400.19  Qualifications for Individual Yield Coverage Plan.
400.20  Modifications through individual certification of yield 
          (Individual Certified Yield Plan--ICYP).
400.21  OMB control numbers.

     Subpart C--General Administrative Regulations; Mutual Consent 
                              Cancellation

400.27  Applicability.
400.28  Mutual consent criteria.
400.29  OMB control numbers.
400.30-400.36  [Reserved]

Subpart D--Application for Crop Insurance; Regulations for the 1993 and 
                          Succeeding Crop Years

400.37  Applicability.
400.38  The crop insurance application.

Subpart E  [Reserved]

Subpart F--Food Security Act of 1985, Implementation; Denial of Benefits

400.45  Applicability.
400.46  Definitions.
400.47  Denial of crop insurance.
400.48  Protection of interests of tenants, landlords or producers.
400.49-400.50  [Reserved]

                  Subpart G--Actual Production History

400.51  Availability of actual production history program.
400.52  Definitions.
400.53  Yield certification and acceptability.
400.54  Submission and accuracy of production reports.
400.55  Qualifications for actual production history coverage program.
400.56  Administrative appeal exhaustion.
400.57  OMB control numbers.

   Subpart H--Information Collection Requirements Under the Paperwork 
                   Reduction Act; OMB Control Numbers

400.65  Purpose.
400.66  Display.

Subpart I  [Reserved]

                Subpart J--Appeal Procedure--Regulations

400.90  Applicability.

Subpart K--Debt Management--Regulations for the 1986 and Succeeding Crop 
                                  Years

400.115  Purpose.
400.116  Definitions.
400.117  Determination of delinquency.
400.118  Demand for payment.
400.119  Notice to debtor; credit reporting agency.
400.120  Subsequent disclosure and verification.
400.121  Information disclosure limitations.
400.122  Attempts to locate debtor.
400.123  Request for review of the indebtedness.
400.124  Disclosure to credit reporting agencies.
400.125  Notice to debtor, collection agency.
400.126  Referral of delinquent debts to contract collection agencies.
400.127  OMB control numbers.
400.128  Definitions.
400.129  Salary offset.
400.130  Notice requirements before offset.
400.131  Request for a hearing and result if an employee fails to meet 
          deadlines.
400.132  Hearings.
400.133  Written decision following a hearing.
400.134  Review of FCIC record related to the debt.
400.135  Written agreement to repay debt as an alternative to salary 
          offset.
400.136  Procedures for salary offset; when deductions may begin.
400.137  Procedures for salary offset; types of collection.
400.138  Procedures for salary offset; methods of collection.
400.139  Nonwaiver of rights.
400.140  Refunds.
400.141  Internal Revenue Service (IRS) Tax Refund Offset.
400.142  Past-due legally enforceable debt eligible for refund offset.

[[Page 8]]

 Subpart L--Reinsurance Agreement--Standards for Approval; Regulations 
              for the 1997 and Subsequent Reinsurance Years

400.161  Definitions.
400.162  Qualification ratios.
400.163  Applicability.
400.164  Availability of the Standard Reinsurance Agreement.
400.165  Eligibility for Standard Reinsurance Agreements.
400.166  Obligations of the Corporation.
400.167  Limitations on Corporation's obligations.
400.168  Obligations of participating insurance company.
400.169  Disputes.
400.170  General qualifications.
400.171  Qualifying when a state does not require that an Annual 
          Statutory Financial Statement be filed.
400.172  Qualifying with less than two of the required ratios or ten of 
          the analytical ratios meeting the specified requirements.
400.173  [Reserved]
400.174  Notification of deviation from financial standards.
400.175  Revocation and non-acceptance.
400.176  State action preemptions.
400.177  [Reserved]

  Subpart M--Agency Sales and Service Contract--Standards for Approval

400.201  Applicability of standards.
400.202  Definitions.
400.203  Financial statement and certification.
400.204  Notification of deviation from standards.
400.205  Denial or termination of contract and administrative 
          reassignment of business.
400.206  Financial qualifications for acceptability.
400.207  Representative licensing and certification.
400.208  Term of the contract.
400.209  Electronic transmission and receiving system.
400.210  OMB control numbers.

       Subpart N--Disaster Assistance Act of 1988; Procedures for 
                             Implementation

400.250  General statement.
400.251  Purpose and applicability.
400.252  Implementation and expense reimbursement.

 Subpart O--Non-Standard Underwriting Classification System Regulations 
                 for the 1991 and Succeeding Crop Years

400.301  Basic, purpose, and applicability.
400.302  Definitions.
400.303  Initial selection criteria.
400.304  Nonstandard Classification determinations.
400.305  Assignment of Nonstandard Classifications.
400.306  Spouses and minor children.
400.307  Discontinuance of participation.
400.308  Notice of Nonstandard Classification.
400.309  Requests for reconsideration.

           Subpart P--Preemption of State Laws and Regulations

400.351  Basis and applicability.
400.352  State and local laws and regulations preempted.

Subpart Q--General Administrative Regulations; Collection and Storage of 
   Social Security Account Numbers and Employer Identification Numbers

400.401  Basis and purpose and applicability.
400.402  Definitions.
400.403  Required system of records.
400.404  Policyholder responsibilities.
400.405  Agent and loss adjuster responsibilities.
400.406  Insurance provider responsibilities.
400.407  Restricted access.
400.408  Safeguards and storage.
400.409  Unauthorized disclosure.
400.410  Penalties.
400.411  Obtaining personal records.
400.412  Record retention.
400.413  OMB control numbers.

                          Subpart R--Sanctions

400.451  General.
400.452  Definitions.
400.453  Exhaustion of administrative remedies.
400.454  Civil penalties.
400.455  Governmentwide debarment and suspension (procurement).
400.456  Governmentwide debarment and suspension (nonprocurement).
400.457  Program Fraud Civil Remedies Act.
400.458  Scheme or device.
400.459  Indebtedness.
400.460-400.499  [Reserved]
400.500  OMB control numbers.

Subpart S  [Reserved]

  Subpart T--Federal Crop Insurance Reform, Insurance Implementation; 
        Regulations for the 1999 and Subsequent Reinsurance Years

400.650  Purpose.
400.651  Definitions.
400.652  Insurance availability.

[[Page 9]]

400.653  Determining crops of economic significance.
400.654  Application and acreage report.
400.655  Eligibility for other program benefits.
400.656  Coverage for acreage that is prevented from being planted.
400.657  Transitional yields for forage or feed crops, 1995-1997 crop 
          years.

 Subpart U--Ineligibility for Programs Under the Federal Crop Insurance 
                                   Act

400.675  Purpose.
400.676  OMB control numbers.
400.677  Definitions.
400.678  Applicability.
400.679  Criteria for ineligibility.
400.680  Determination and notification of ineligibility.
400.681  Effect of ineligibility.
400.682  Criteria for reinstatement of eligibility.
400.683  Administration and maintenance.

 Subpart V--Submission of Policies, Provisions of Policies and Rates of 
                                 Premium

400.700  Basis, purpose, and applicability.
400.701  Definitions.
400.702  Confidentiality of submission.
400.703  Timing of submission.
400.704  Type of submission.
400.705  Contents of submission.
400.706  FCIC review.
400.707  Presentation to and review by the Board for approval or 
          disapproval.
400.708  Approved submission.
400.709  Review of an approved program.
400.710  Preemption and premium taxation.
400.711  Right of review, modification, and amendment.

Subpart W  [Reserved]

    Subpart X--Interpretations of Statutory and Regulatory Provisions

400.765  Basis and applicability.
400.766  Definitions.
400.767  Requester obligations.
400.768  FCIC obligations.



Subpart A--Late Planting Agreement Option; Regulations for the 1987 and 
                          Succeeding Crop Years

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

    Source: 51 FR 20246, June 4, 1986, unless otherwise noted.



Sec. 400.1  Availability of the late planting option.

    The Late Planting Option shall be offered under the provisions 
contained in 7 CFR part 402, et seq., within limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (7 U.S.C. 1501 et seq.), only on those crops identified in 
Sec. 400.4 of this subpart. All provisions of the applicable contract 
for the insured crop apply, except those provisions which are in 
conflict with this subpart.



Sec. 400.2  Definitions.

    For the purposes of the Late Planting Option:
    (a) Final planting date means the final planting date for the 
insured crop contained in the actuarial table on file in the service 
office.
    (b) Late Planting Agreement means that agreement executed by the 
final planting date, between the FCIC and the insured whereby the 
insured elects, and FCIC provides, insurance on acreage planted for up 
to 20 days after the applicable final planting date. The production 
guarantee applicable on the final planting date will be reduced on the 
acreage planted after the final planting date by 10 percent for each 5 
days that the acreage is planted after the final planting date.
    (c) Production guarantee means the guaranteed level of production 
under the provisions of the applicable contract for crop insurance 
(sometimes expressed in amounts of insurance).



Sec. 400.3  Responsibilities of the insured.

    The insured is solely responsible for the completion of the Late 
Planting Agreement and for the accuracy of the data provided on that 
Agreement. The provisions of this subsection shall not relieve the 
insured of any responsibilities under the provisions of the insurance 
contract.



Sec. 400.4  Applicability to crops insured.

    The provisions of this subpart shall be applicable to the provisions 
of FCIC policies issued under the following regulations for insuring 
crops:
7 CFR part 416  Pea
7 CFR part 422  Potatoes
7 CFR part 425  Peanuts

[[Page 10]]

7 CFR part 430  Sugar Beets
7 CFR part 433  Dry Beans
7 CFR part 435  Tobacco (Quota Plan)
7 CFR part 437  Sweet Corn (Canning and Freezing)
7 CFR part 447  Popcorn

[58 FR 64873, Dec. 10, 1993, as amended at 60 FR 40055, Aug. 7, 1995]



Sec. 400.5  The Late Planting Agreement.

    The provisions of the Late Planting Agreement are as follows:

                     U.S. DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                         Late Planting Agreement

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
_______________________________________________________________________
Crop____________________________________________________________________

Notwithstanding the provisions of section 2 of the policy regarding the 
insurability of crop acreage initially planted after the final planting 
date on file in the service office, I elect to have insurance provided 
on acreage planted for 20 days after such date. Upon my making this 
election, the production guarantee or amount of insurance, whichever is 
applicable, will be reduced 10 percent for each five days or portion 
thereof that the acreage is planted after the final planting date. Each 
10 percent reduction will be applied to the production guarantee or 
amount of insurance applicable on the final planting date.
    The premium will be computed based on the guarantee or amount of 
insurance applicable on the final planting date; therefore, no reduction 
in premium will occur as a result of my election to exercise this 
option.
    If planting continues under this Agreement after the acreage 
reporting date on file in the service office, the acreage reporting date 
will be extended to 5 days after the completion of planting the acreage 
to which insurance will attach under this Agreement.

Insured's Signature_____________________________________________________
Date____________________________________________________________________

Corporation Representative's
Signature and Code Number_______________________________________________
Date____________________________________________________________________

            Collection of Information and Data (Privacy Act)

    To the extent that the information requested herein relates to the 
information supplier's individual capacity as opposed to the supplier's 
entrepreneurial (business) capacity, the following statements are made 
in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 
552(a)). The authority for requesting information to be furnished on 
this form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 
et seq.) and the Federal Crop Insurance Corporation Regulations 
contained in 7 CFR chapter IV.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, determine and collect premiums, and pay indemnities. 
Furnishing the Tax Identification Number (Social Security Number) is 
voluntary and no adverse action will result from the failure to furnish 
that number. Furnishing the information required by this form, other 
than the Tax Identification (Social Security) Number, is also voluntary; 
however, failure to furnish the correct, complete information requested 
may result in rejection of this form, rejection of or substantial 
reduction in any claim for indemnity, ineligibility for insurance, and a 
unilateral determination of the amount of premium due. (See the face of 
this form for information on the consequences of furnishing false or 
incomplete information.)
    The information furnished on this form will be used by Federal 
agencies, FCIC employees, and contractors who require such information 
in the performance of their duties. The information may be furnished to: 
FCIC contract agencies, employees and loss adjusters; reinsured 
companies; other agencies within the United States Department of 
Agriculture; the Internal Revenue Service; the Department of Justice, or 
other Federal or State law enforcement agencies; credit reporting 
agencies and collection agencies; and in response to judicial orders in 
the course of litigation.

[51 FR 20246, June 4, 1986, as amended at 52 FR 24979, July 2, 1987]



 Subpart B--Individual Yield Coverage Plan Regulations for the 1985 and 
                          Succeeding Crop Years

    Authority: Sec. 508, Pub. L. 75-430, 52 Stat. 73, as amended (7 
U.S.C. 1508).

    Source: 50 FR 32001, Aug. 8, 1985, unless otherwise noted.



Sec. 400.15  Availability of Individual Yield Coverage Plan.

    Individual Yield Coverage Plan (IYCP) shall be offered under the 
provisions contained in the following regulations:

CFR part 418........................................Wheat Crop Insurance

[[Page 11]]

CFR part 419.......................................Barley Crop Insurance
CFR part 423.........................................Flax Crop Insurance
CFR part 427..........................................Oat Crop Insurance
CFR part 428....................................Sunflower Crop Insurance
CFR part 429..........................................Rye Crop Insurance
CFR part 431......................................Soybean Crop Insurance
CFR part 433.....................................Dry Bean Crop Insurance


Within limits prescribed by and in accordance with the provisions of the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), only on 
those crops identified in this section and in those areas where the 
actuarial table provides that IYCP is available. (IYCP is available only 
on those crops and in those areas where the Corporation's Actual 
Production History Program has not been implemented. The Actual 
Production History form will be used for both programs). All provisions 
of the applicable standard insurance contract for the crop apply, except 
those provisions which are in conflict with this subpart. Cropland 
acreage, which is defined as ``new ground acreage'' by the actuarial 
table or by the policy, will not be eligible for IYCP. Crops covered 
under the provisions of the Combined Crop Insurance policy will not be 
eligible for IYCP.



Sec. 400.16  Definitions.

    In addition to the definitions contained in the crop insurance 
contract, the following definitions, for the purposes of Individual 
Yield Coverage Plan, are applicable:
    (a) Appraised Production means production that was unharvested but 
reflected yield potential for the crop at the time of the appraisal. 
Appraisals will be determined by ASCS or FCIC.
    (b) Area Average Yield is the average yield determined by FCIC upon 
which the guarantee is based for the insured crop, area, type, and 
practice and is the average for the area over the base period. It is 
contained in the actuarial table.
    (c) Area Coverage Plan is the coverage and rate assigned by the FCIC 
Actuarial Division for an homogeneous group of areas and producers.
    (d) Average Yield is the average of the recorded and/or indexed 
yields for the 10-year base period, dropping the highest and lowest 
yield in the 10-year period, including a combination of a minimum of the 
three most recent year's recorded yields.
    (e) Base Period means the 10-year period immediately preceding the 
crop year for which the yield is to be established.
    (f) Established Farm Yield is the yield as shown on the Official 
Farm Record card (ASCS-156) on file in the county ASCS office.
    (g) FCIC Adjusted Yield is production information derived by the 
Statistical Reporting Service on a county, crop, and practice basis 
modified by FCIC for factors necessary to conform to sound actuarial 
practices.
    (h) Individual Yield Certification is the appraised result of the 
examination of the insured's records of planted acreage and production 
certified by the county Agricultural Stabilization and Conservation 
Service (ASCS) office.
    (i) Indexed Yield means yield established for a year in which 
recorded (actual) yields are not available. It is determined by 
multiplying the FCIC adjusted yield, for each crop year (for which 
records of acreage and production are not available), by the producer's 
yield index.
    (j) IYCP is the Individual Yield Coverage Plan.
    (k) ICYP is the Individual Certified Yield Plan within IYCP. (7 CFR 
400.20).
    (l) Recorded Yield is the yield that is based on the producer's 
records of planted acreage and production certified by ASCS.
    (m) Yield Index is the result obtained by dividing the total of the 
producer's recorded yields for the years FCIC adjusted yields are 
available by the total FCIC adjusted yields for those same years.



Sec. 400.17  Yield certification and acceptability.

    The insured shall request Form FCIC 19A (APH) (Actual Production 
History) and shall provide records of acreage and production to ASCS 
county office. The request and records must be submitted at least 15 
days prior to the acreage reporting date for the crop in the county. The 
ASCS county office will examine the insured's records and, if 
acceptable, record the actual yield obtained from the records, determine 
the relationship of such yields to the

[[Page 12]]

FCIC adjusted yield for the same years, and apply the yield index to the 
area average yield for those years for which the producer does not have 
acceptable records.



Sec. 400.18  Responsibilities.

    (a) The insured is solely responsible for the timely submission of 
Form FCIC 19A (APH) to the service office after its completion by the 
ASCS office.
    (b) The service office is responsible for the explanation of the 
Individual Yield Coverage Plan (IYCP) to the insured, and upon receipt 
of Form FCIC 19A (APH) is responsible for determining that the form is 
completed correctly.



Sec. 400.19  Qualifications for Individual Yield Coverage Plan.

    The Insured may elect to substitute the IYCP Yield for the Area 
Average Yield.
    (a) For the producer to qualify for IYCP for any crop year, the 
completed Form FCIC 19A (APH) must be received in the crop insurance 
service office not later than the acreage reporting date for the crop 
and the year.
    (b) For a crop to qualify for IYCP, a minimum of 3 years of records 
of planted acreage and production, under the control of either the 
landlord or tenant, must be provided to ASCS for all units and be 
certified by ASCS. Records for up to 10 continuous years shall be used 
where such records are available and the same farming practices are 
followed for that period of time. There can be no break in continuity 
from the most recent crop year through preceding crop years. A year in 
which no acreage was planted to the crop on the unit or in which a 
different practice was followed will not be considered a break in 
continuity.
    (c) Either the landlord's or tenant operator's records may qualify 
either party for the same IYCP guarantee. If a conflict exists between 
the records of the landlord and the tenant operator, the Corporation 
will determine which records will be used.
    (d) If an insured wishes to obtain an IYCP yield on land newly added 
to production for the insured, the insured must comply with the 
provisions of this paragraph. If the IYCP yield being requested is for 
an ASCS program crop and if the added land has an ASCS established yield 
for that crop of 90 percent or more of the ASCS established yield of the 
unit to which the land is to be added or of the nearest unit then: When 
land without satisfactory records is added to a unit satisfactory 
records, the IYCP average yield will be that of the unit to which the 
land was added; and when land without satisfactory records is added as a 
separate unit, the IYCP average yield will be that of the closest unit 
of the same crop and practice. When the ASCS established farm yields for 
the added land are less than 90 percent of the program yields for the 
existing units, the IYCP yields will be the area average yield.
    (e) When the yield being requested on land being added is for a crop 
for which the added land does not have an ASCS established farm yield, 
the ASCS established farm yield for the crop with the largest ASCS base 
acreage on the added land will be compared to the program yield for the 
crop on the existing units to determine if the 90-percent ratio is 
achieved. If the land is being added to a unit and there is no ASCS 
established farm yield on either the added land or the units or both to 
compare, the IYCP yield will be the area average yield. If the land is 
being added as a separate unit, and the nearest unit has no ASCS 
established farm yield to compare to the added unit, the next nearest 
unit will be used. If no comparable yields are available on any unit, 
the yield of the added unit will be the area average yield.
    (f) If a producer disposes of his entire operation and begins 
operation on completely different units, the new units will be compared 
to the old units in accordance with paragraphs (d) and (e) of this 
section, for adding new units.
    (g) When land is being added but less than 3 continuous years of 
acceptable records are available, the acceptable production and acreage 
records will be used for the years they are available and paragraphs (d) 
and (e) of this section will be used for the years when adequate records 
are not available.
    (h) When participation in IYCP is continuous, ASCS certification 
under this part for up to 10 years, dropping

[[Page 13]]

the highest and lowest yield in the 10-year period, will be used in 
calculating the IYCP average yield. When an insured has previously 
participated in IYCP, he must have at least the most recent three years 
records of production acceptable to ASCS. These records and all records 
previously certified by ASCS up to 10 years, will be used to ascertain 
the new yield.
    (i) The premium shall be contained in the actuarial table and will 
be the same as applicable under the Area Coverage Plan.



Sec. 400.20  Modifications through individual certification of yield (Individual Certified Yield Plan--IYCP).

    (a) In addition to the provisions contained in Secs. 400.15 through 
400.19 of this part, producers who customarily feed crop production to 
livestock or poultry, and who are unable to provide adequate records 
sufficient to become eligible for the IYCP Plan, will be considered for 
eligibility for the Individual Certified Yield Plan (ICYP) in certain 
counties as announced by the Manager, FCIC.
    (b) To qualify for this plan, producers must agree to the conditions 
contained herein and provide information to the county ASCS office 
including but not limited to, the following:
    (1) Satisfactory acreage and yield records for at least the most 
recent crop year.
    (2) Acreage and yield records for the prior crop years even though 
such records may be incomplete.
    (3) Feeding records, fertilization and liming records, soil 
conservation methods used, land tillage practices, insecticide and 
herbicide records, planting pattern and population data, and equipment 
adequacy information as available.
    (4) Certification of acreage and yield data for the previous 2nd and 
3rd years when written records are unavailable.
    (5) Agreement to disregard to the extent required by FCIC any unit 
division guideline provisions of the crop insurance policy.
    (6) Records of acreage and yield for each future year that the 
insurance is in force. (Failure to provide such records in accordance 
with the provisions of Secs. 400.17 and 400.19 will result in insurance 
being based on the area coverage plan.)
    (7) Agreement to convert to the IYCP for determining yields as soon 
as 3 consecutive years acreage and yield records are available.
    (8) Producer certified yields will be reviewed by FCIC and may be 
adjusted by the Corporation prior to the final yield determination by 
ASCS.
    (9) The producer may request FCIC to assist in establishing 
satisfactory acreage and yield information through field appraisals of 
potential production, bin measurements, etc. FCIC will determine if any 
evidence offered by the producer is relevant to the determination of 
yield on the unit.
    (10) The producer must request the certified yield plan in 
accordance with the provisions of Secs. 400.17 and 400.19 from the 
county ASCS office.
    (11) The premium per acre shall be the production guarantee per acre 
under this plan times the applicable price election, times the 
applicable premium rate for the crop insured, times any applicable 
premium adjustment factor.



Sec. 400.21  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400 in title 
7 CFR.



     Subpart C--General Administrative Regulations; Mutual Consent 
                              Cancellation

    Authority: 7 U.S.C. 1501 et seq.

    Source: 57 FR 56438, Nov. 30, 1992, unless otherwise noted.



Sec. 400.27  Applicability.

    Notwithstanding any provisions of the crop insurance policy to the 
contrary, the mutual consent provision contained herein shall be 
applicable to all new crop insurance policies issued by the Federal Crop 
Insurance Corporation (7 CFR part 401 et seq.), or by a company 
reinsured by the Federal Crop Insurance Corporation, effective for the 
applicable crop year only if those policies meet the requirements of 
Sec. 400.28 of this subpart and if the crop insured is the same as the 
crop for which a disaster payment application

[[Page 14]]

(CCC 441) was filed for the previous crop year.

[58 FR 67304, Dec. 21, 1993]



Sec. 400.28  Mutual consent criteria.

    (a) An insured may request policy cancellation for the crop year for 
which the insured filed a CCC 441 for the applicable crop year if 
written documentation is provided, signed by an authorized Agricultural 
Stabilization and Conservation Service official, certifying the 
cancellation is based on one of the following conditions:
    (1) Insurance was not a condition of eligibility for disaster 
payment, based on one or more of the statutory criteria; or
    (2) the producer withdrew his application for disaster payments with 
prejudice or it was rejected by Commodity Credit Corporation;
    (b) Cancellation requests must be received in writing no later than 
three weeks after the date:
    (1) The disaster payment check is issued; or
    (2) The producer is notified that an application for disaster 
payment has been rejected; or
    (3) The producer withdraws from the disaster payment program.
    (c) Carryover policies are not available for mutual consent 
cancellation. Crop insurance applications dated before the disaster 
cancellation date (available in the insureds' service office) are not 
eligible for mutual consent cancellations.

[57 FR 56438, Nov. 30, 1992, as amended at 58 FR 67304, Dec. 21, 1993]



Sec. 400.29  OMB control numbers.

    Office of Management and Budget control numbers (OMB) are contained 
in subpart H to part 400 in title 7 CFR.



Secs. 400.30-400.36  [Reserved]



Subpart D--Application for Crop Insurance; Regulations for the 1993 and 
                          Succeeding Crop Years

    Authority: Secs. 506, 507, Pub. L. 75-430, 52 Stat. 72, as amended 
(7 U.S.C. 1506, 1516).



Sec. 400.37  Applicability.

    The Crop Insurance application contained herein shall be applicable 
to all crop insurance regulations issued by the Corporation (7 CFR part 
400 et seq.), effective with the 1983 and succeeding crop years.

[48 FR 1023, Jan. 10, 1983]



Sec. 400.38  The crop insurance application.

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                       Crop Insurance Application

                           Continuous Contract

_______________________________________________________________________
1. Name of Applicant
_______________________________________________________________________
2. Applicant's Authorized Representative
_______________________________________________________________________
3. Street or Mailing Address
_______________________________________________________________________
4. City and State
_______________________________________________________________________
5. ZIP Code

[  ] [  ] - [  ] [  ] [  ] - [  ] [  ] [  ] [  ] [  ]
6. State    County
[  ] [  ] [  ] [  ] [  ]
7. Contract Number
_______________________________________________________________________
8. County
_______________________________________________________________________
9. State
_______________________________________________________________________
[  ] [  ] [  ] [  ] [  ] [  ] [  ]
10. Identification Number
[  ] [  ] [  ] [  ] [  ]
11. SSN TAX
_______________________________________________________________________
12. Type of Entity
13. Is Applicant Over 18: Yes______ No______
_______________________________________________________________________
If No, Date of Birth
    A. The applicant subject to the provisions of the regulations of the 
Federal Crop Insurance Corporation (herein called ``Corporation''), 
hereby applies to the Corporation for insurance on the applicant's share 
in the crop(s) shown below planted or grown, whichever is applicable, on 
insurable acreage as shown on the county actuarial table for the above-
stated county. The applicant elects from the actuarial table the 
coverage level and, where applicable, a price election, amount of 
insurance or plan of insurance. The premium rate and applicable 
production guarantee or amount of insurance per acre shall be those 
shown on the applicable county actuarial table filed in the service 
office for each crop year.

[[Page 15]]



 
                                                                                                                      For agency use only
 
 14. Effective crop        15. Crop        16. Type, class,   17. Price election  18. Level election      19              20.                 21.
        year                                 plan of ins.      or amount of ins.
                                                                                                          (A)             (P)
 
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[[Page 16]]

    N S I O T--F U R
    23. Crop(s) NOT insured the first year:
_______________________________________________________________________
    B. This application is hereby accepted by the Corporation except 
that the Corporation may reject the application on the basis that (1) 
the Corporation has determined that the risk is excessive under the 
provisions of the individual crop insurance regulations; (2) any 
material fact is concealed or misrepresented or fraud occurs in the 
application; or submission of the application; (3) the applicant is 
indebted to any United States Government Agency and that indebtedness is 
delinquent; (4) the applicant is indebted for crop insurance coverage 
provided by any company reinsured by the Corporation and that 
indebtedness is delinquent; (5) the applicant previously had crop 
insurance terminated for violation of the terms of the contract or the 
regulations, or for failure to pay the applicant's indebtedness; (6) the 
applicant is debarred by any United States Government Agency; or (7) the 
applicant has failed to provide complete and accurate information to 
material requests this application.
    Rejection shall be accomplished by depositing notification thereof 
in the United States mail, postage paid to the above address. Unless 
rejected as provided above, or the time for filing applications has 
passed at the time this application is filed, the contract shall be in 
effect for the crops and crop years specified and shall continue for 
each succeeding crop year until cancelled or terminated as provided in 
the contract. This accepted application, the insurance policy(ies), the 
applicable appendix(es), and the provisions of the county actuarial 
table showing the insurable and uninsurable acreage coverage levels, 
premium rates, and where applicable, the production guarantees, amounts 
of insurance, or plans of insurance shall constitute the contract. No 
term or condition of the contract shall be waived or changed except in 
writing by the Corporation.
    24. [  ] Applicant does not have like insurance on any of the above 
crops.
    25. [  ] Previous Carrier:
_______________________________________________________________________
    26. [  ] Policy Number:
_______________________________________________________________________
_______________________________________________________________________
    27. [  ] Applicant's Signature
_______________________________________________________________________
    28. [  ] Date
    [  ] [  ] [  ] [  ] [  ] [  ] [  ]
    29. Code No.
_______________________________________________________________________
    30. Witness to Signature
_______________________________________________________________________
    31. Location of Farm Headquarters
_______________________________________________________________________
    32. Address of Your Service Office
Phone:__________________________________________________________________
Phone:__________________________________________________________________
    I am aware and agree to comply with all requirements regarding the 
conservation provisions of the Food Security Act of 1985 (the Act) 
Sodbuster/Swampbuster provisions. I understand that I must be in 
compliance with the Act including reporting requirements to the 
applicable ASCS office for a crop insurance indemnity to be paid. I also 
understand that if I have not met these requirements, or if ASCS 
determines that I am out of compliance, an indemnity payment will not be 
made on this policy. Any graduated sanctions imposed by any agency under 
the Act must be paid in full prior to receipt of any of any indemnity 
paid.
Signature of Insured____________________________________________________
Date____________________________________________________________________
Agent's Initials________________________________________________________
    See Reverse Side of Form for Statement Required by Privacy Act of 
1974.
    33. Page ____  of ____  pages

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)):
    The authority for requesting the information to be supplied on this 
form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et 
seq.), and the regulations promulgated thereunder (7 CFR part 400 et 
seq.). The information requested is necessary for FCIC to consider and 
process the application for insurance; to assist in determining the 
correct premium and indemnity; and to determine the correct parties to 
the insurance contract. The information may be furnished to FCIC 
contract agencies and contract loss adjusters, reinsured companies, 
other U.S. Department of Agriculture Agencies, the Internal Revenue 
Service, the Department of Justice or other State and Federal law 
enforcement agencies, and in response to orders of a court, magistrate, 
or administrative tribunal. Furnishing the social security number is 
voluntary and no adverse action will result from failure to do so. 
Furnishing the information other than the social security number, is 
also voluntary; however, failure to furnish the correct, complete 
information requested may result in rejection of the application and/or 
subsequent denial of any claim for indemnity which may be failed. The 
failure to supply correct, complete information may also invalidate the 
automatic acceptance provisions of Section B hereof and may 
substantially delay acceptance of the application and processing of any 
claim for indemnity.

[49 FR 6317, Feb. 21, 1984, as amended at 58 FR 17943, Apr. 7, 1993]

Subpart E  [Reserved]

[[Page 17]]



Subpart F--Food Security Act of 1985, Implementation; Denial of Benefits

    Authority: Secs. 1506, 1516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1501 et seq.); sec. 1244, Pub. L. 99-198.

    Source: 52 FR 19128, May 21, 1987, unless otherwise noted.



Sec. 400.45  Applicability.

    (a) The regulations in this subpart implement Chapter XII and 
section 1764 of the Food Security Act of 1985 (Pub. L. 99-198) (the Act) 
requiring the denial of crop insurance to persons who are determined to 
have performed certain practices prohibited by the Act or who have 
violated certain federal or State statutes or the regulations 
implementing the Act. The provisions of this subpart are applicable to 
all crop insurance policies written by the Federal Crop Insurance 
Corporation (the Corporation) or reinsured by the Corporation.
    (b) The provisions of this subpart will be effective for the crop 
and crop year immediately following the first crop cancellation date 
occurring after the effective date of the Act for all crop policies 
reinsured by FCIC, and for all policies and regulations for crop 
insurance issued by FCIC.



Sec. 400.46  Definitions.

    For the purpose of this regulation and in addition to the 
definitions included at 7 CFR 12.2, the following definitions are 
applicable:
    (a) Controlled substance means any prohibited drug-producing plants 
including, but not limited to, cacti of the genus lophophora, coca 
bushes (erythroxylum coca), marijuana (cannabis satiua), opium poppies 
(papauer somniferum), and other drug-producing plants, the planting and 
harvesting of which is prohibited by Federal or State law.
    (b) Person means any producer, tenant, or landlord, insured under a 
policy of crop insurance issued by FCIC, or by a multi-peril insurance 
company whose crop insurance policy is reinsured by FCIC.
    (c) State means each of the fifty States, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United 
States, American Samoa, the Commonwealth of the Northern Mariana 
Islands, or the Trust Territory of the Pacific.
    (d) The Act means the Food Security Act of 1985 (Pub. L. 99-198).



Sec. 400.47  Denial of crop insurance.

    (a) Any person convicted under Federal or State law of planting, 
cultivating, growing, producing, harvesting or storing a controlled 
substance in any crop year will be ineligible for crop insurance during 
that crop year and the four succeeding crop years.
    (1) The insurance of such person insured by FCIC who found to be 
ineligible under paragraph (a) of this section will be null and void, 
and any indemnity paid on such insurance must be returned in full to 
FCIC. Any premium paid for insurance coverage declared null and void 
will be returned, less a reasonable amount for expenses and handling not 
to exceed 20 percent of the premium paid.
    (2) Any person ineligible for crop insurance under the provisions of 
paragraph (a) of this section may make application for crop insurance 
for the crop year following the applicable period of ineligibility by 
submitting a new application. The previous application and policy of 
insurance will be cancelled.
    (b) Any insurance written by a multi-peril crop insurance company to 
any person who is ineligible under the provisions of this subpart is not 
eligible for reinsurance under the Corporation's standard reinsurance 
agreement. Any premium subsidy and expense allowance or loss paid by the 
Corporation because of such agreement will be immediately refunded to 
the Corporation. Notwithstanding any other provision of law, policies 
written by multi-peril crop insurance companies to any person ineligible 
under the provisions of this subpart are null and void. Premium paid for 
such policies will be refunded to the person applying for insurance, 
less a reasonable amount for expenses and handling not to exceed 20 
percent of the premium paid, and no indemnity will be paid unless the 
multi-peril company expressly agrees to continue such policy in effect 
without

[[Page 18]]

FCIC reinsurance. However, if the reinsured company follows the 
procedure of the Corporation and the requirements of the regulations, 
reinsurance will continue to be provided under the reinsurance agreement 
on the policy unless it is shown that the agent or company had knowledge 
of facts which would indicate ineligibility on the part of the insured 
and failed to act on that knowledge.
    (c) FCIC employees or contractors are required to report all 
suspected cases of violation of the Act or the regulations to the 
appropriate agency for a determination of violation. Benefits shall not 
be paid in such cases pending a determination from the appropriate 
agency.
    (d) Notwithstanding any other provision of this subpart, any crop 
insurance policy where insurance attached to a crop prior to August 15, 
1986, will continue in effect for that crop until the next termination 
date following August 15, 1986.

[52 FR 19128, May 21, 1987, as amended at 58 FR 17945, Apr. 7, 1993; 61 
FR 38058, July 23, 1996]



Sec. 400.48  Protection of interests of tenants, landlords or producers.

    Any tenant, landlord or producer on the farm separate from the 
person declared ineligible for crop insurance under the provisions of 
Sec. 400.47 of this part, will remain eligible for crop insurance on 
their insurable share in the crop, unless such tenant, landlord, or 
producer on the farm is:
    (a) Also convicted of planting, cultivating, growing, producing, or 
storing a controlled substance;
    (b) Otherwise determined by FCIC to be ineligible for crop 
insurance.

[52 FR 19128, May 21, 1987, as amended at 61 FR 38058, July 23, 1996]



Secs. 400.49-400.50  [Reserved]



                  Subpart G--Actual Production History

    Authority: 7 U.S.C. 1506, 1516.

    Source: 59 FR 47787, Sept. 19, 1994, unless otherwise noted.



Sec. 400.51  Availability of actual production history program.

    An Actual Production History (APH) Coverage Program is offered under 
the provisions contained in the following regulations:

7 CFR 401.110--Almond Endorsement
7 CFR part 405--Apple Crop Insurance
7 CFR 401.118--Canning and Processing Bean Endorsement
7 CFR part 409--Arizona-California Citrus Crop Insurance
7 CFR 401.127--Cranberry Endorsement
7 CFR part 433--Dry Beans Crop Insurance
7 CFR 401.116--Flaxseed Endorsement
7 CFR part 415--Forage Production Corp Insurance
7 CFR 401.130--Grape Endorsement
7 CFR part 455--Macadamia Nut Crop Insurance
7 CFR 401.126--Onion Endorsement
7 CFR part 447--Popcorn Crop Insurance
7 CFR part 403--Peach Crop Insurance
7 CFR 401.140--Pear Endorsement
7 CFR part 416--Pea Crop Insurance
7 CFR 401.146--Fresh Plum Endorsement
7 CFR part 422--Potato Crop Insurance
7 CFR part 450--Prune Crop Insurance
7 CFR 401.123--Safflower Seed Endorsement
7 CFR 401.133--Sugarcane Endorsement
7 CFR part 430--Sugar Beet Crop Insurance
7 CFR 401.124--Sunflower Seed Endorsement
7 CFR part 437--Sweet Corn Crop Insurance
7 CFR part 441--Table Grape Crop Insurance
7 CFR 401.129--Guaranteed Tobacco Endorsement
7 CFR 401.114--Canning and Processing Tomato Endorsement
7 CFR part 454--Guaranteed Production Plan of Fresh Market Tomato
7 CFR part 446--Walnut Crop Insurance
7 CFR part 457--Common Crop Insurance Regulations; and all special 
    provisions thereto unless specifically excluded by the special 
    provisions.

    The APH program operates within limits prescribed by, and in 
accordance with, the provisions of the Federal Crop Insurance Act, as 
amended (7 U.S.C. 1501 et seq.), only on those crops identified in this 
section in those areas

[[Page 19]]

where the Actuarial Table provides coverage. Except when in conflict 
with this subpart, all provisions of the applicable crop insurance 
contract for these crops apply.



Sec. 400.52  Definitions.

    In addition to the definitions contained in the crop insurance 
contract, the following definitions apply for the purposes of the APH 
Coverage Program:
    (a) APH--Actual Production History.
    (b) Actual yield--The yield per acre for a crop year calculated from 
the production records or claims for indemnities. The actual yield is 
determined by dividing total production (which includes harvested and 
appraised production) by planted acres for annual crops or by insurable 
acres for perennial crops.
    (c) Adjusted yield--The transitional or determined yield reduced by 
the applicable percentage for lack of records. The adjusted yield will 
equal 65 percent of the transitional or determined yield, if no producer 
records are submitted; 80 percent, if records for one year are 
submitted; and 90 percent, if two years of records are submitted.
    (d) Appraised production--Production determined by the Agricultural 
Stabilization and Conservation Service (ASCS), the FCIC, or a company 
reinsured by the FCIC, that was unharvested but which reflected the 
crop's yield potential at the time of the appraisal. For the purpose of 
APH ``appraised production'' specifically excludes production lost due 
to uninsurable causes.
    (e) Approved APH yield--A yield, calculated and approved by the 
verifier, used to determine the production guarantee and determined by 
the sum of the yearly actual, assigned, and adjusted or unadjusted 
transitional or determined yields divided by the number of yields 
contained in the database. The database may contain up to 10 consecutive 
crop years of actual and or assigned yields. At least four yields will 
always exist in the database.
    (f) Assigned yield--A yield assigned by FCIC in accordance with the 
crop insurance contract, if the insured does not file production reports 
as required by the crop insurance contract. Assigned yields are used in 
the same manner as actual yields when calculating APH yields except for 
purposes of the Nonstandard Classification System (NCS).
    (g) Base period--Ten consecutive crop years (except peaches, which 
have a five-year base period) immediately preceding the crop year 
defined in the insurance contract for which the approved APH yield is 
being established (except for sugarcane, which begins the calendar year 
preceding the immediate previous crop year defined in the insurance 
contract).
    (h) Continuous production reports--Reports submitted by a producer 
for each crop year that the unit was planted to the crop and for the 
most recent crop year in the base period.
    (i) Crop year--Defined in the crop insurance contract, however, for 
APH purposes the term does not include any year when the crop was not 
planted or when the crop was prevented from being planted by an 
insurable cause. For example, if an insured plants acreage in a county 
to wheat one year, that year is a crop year in accordance with the 
policy definition. If the land is summerfallowed the next calendar year, 
that calendar year is not a crop year for the purpose of APH.
    (j) Database--A minimum of four years up to a maximum of ten crop 
years of production data used to calculate the approved APH yield.
    (k) Determined yield (D-yield)--An estimated year for certain crops, 
which can be determined by multiplying an average yield for the crop 
(attained by using data available from The National Agricultural 
Statistics Service (NASS) or comparable sources) by a percentage 
established by the FCIC for each county.
    (l) Master yields--Approved APH yields, for certain crops and 
counties as initially designated by the FCIC, based on a minimum of four 
crop years of production records for a crop within a county.
    (m) New producer--A person who has not been actively engaged in 
farming for a share of the production of the insured crop for more than 
two crop years.

[[Page 20]]

    (n) Production report--A written record showing the insured crop's 
annual production and used to determine the insured's yield for 
insurance purposes. The report contains yield history by unit, if 
applicable, including planted acreage for annual crops, insurable 
acreage for perennial crops, and harvested and appraised production for 
the previous crop years. This report must be supported by written 
verifiable records, measurement of farm stored production, or by other 
records of production approved by FCIC on an individual basis. 
Information contained in a claim for indemnity is considered a 
production report for the crop year for which the claim was filed.
    (o) Production Reporting Date (PRD)--The PRD is contained in the 
crop insurance contract and is the last date production reports will be 
accepted for inclusion in the database for the current crop year.
    (p) Transitional yield (T-Yield)--An estimated yield, for certain 
crops, generally determined by multiplying the ASCS program yield by a 
percentage determined by the FCIC for each county and provided on the 
actuarial table to be used in the APH yield calculation process when 
less than four consecutive crop years of actual or assigned yields are 
available.
    (q) Verifiable records--Contemporaneous records of acreage and 
production provided by the insured, which may be verified by FCIC 
through an independent source, and which are used to substantiate the 
acreage and production that have been reported on the production report.
    (r) Verifier--A person authorized by the FCIC to calculate approved 
APH yields.
    (s) Yield variance tables--Tables for certain crops that indicate 
unacceptable yield variations and yield trends which will require 
determination of the APH yield by the FCIC.



Sec. 400.53  Yield certification and acceptability.

    (a) Production reports must be provided to the crop insurance agent 
no later than the production reporting date for the crop insured.
    (1) Production reports must provide an accurate account of planted 
acreage for annual crops or insurable acres for perennial crops, as well 
as harvested and appraised production by unit.
    (2) The insured must certify the accuracy of the information.
    (3) Production reported for more than one crop year must be 
continuous. A year in which no acreage was planted to the crop on a unit 
or no acreage was planted to a practice, type, or variety requiring an 
APH yield will not be considered a break in continuity. Assigned yields, 
at the discretion of the FCIC, may be used to maintain continuity of 
yield data of file. Production on uninsured (for those years a crop 
insurance policy under the Federal Crop Insurance Act is in effect) or 
uninsurable acreage (for other years of the period) will not be used to 
determine APH yield unless production from such acreage is commingled 
with production from insured or insurable acreage.
    (b) Production reports and supporting records are subject to audit 
or review to verify the accuracy of the information certified. 
Production and supporting records may be reviewed and verified if a 
claim for indemnity is submitted on the insured crop. The reported yield 
is subject to revision, if needed, so that the claim conforms to the 
records submitted at that time.
    (1) Inaccurate production reports or failure to retain acceptable 
records shall result in the verifier combining optional farm units and 
recomputing the approved APH yield. These actions shall be taken at any 
time after reporting or record discrepancies are identified and may 
result in reduction of the approved APH yield for any calendar year.
    (2) Records must be provided by the insured at the time of an audit, 
review, or as otherwise requested, to verify that the acreage and 
production certified are accurate. Records of any other person having 
shares in the insured crop, which are used by the insured to establish 
the approved APH yield, must also be provided upon request.
    (3) In the event acreage or production data certified by two or more 
persons sharing in the crop on the same acreage is different, the 
verifier shall, at the verifier's discretion, determine which acreage 
and production data, if

[[Page 21]]

any, will be used to determine the approved APH yield. If the correct 
acreage and production cannot be determined, the data submitted will be 
considered unacceptable by the verifier for APH purposes.
    (4) Failure of the producer to report acreage and production 
completely and accurately may result in voidance of the crop insurance 
contract, as well as criminal or civil false claims penalties pursuant 
to applicable Federal criminal or civil statutes.



Sec. 400.54  Submission and accuracy of production reports.

    (a) The insured is solely responsible for the timely submission and 
certification of accurate, complete production reports to the agent. 
Production reports must be provided for all planted units.
    (b) Records may be requested by the FCIC, or an insurance company 
reinsured by the FCIC, or by anyone acting on behalf of the FCIC or the 
insurance company. The insured must provide such records upon request.
    (c) The agent will explain the APH Program to insureds and 
prospective insureds. When necessary, the agent will assist the insured 
in preparation of production reports. The agent will determine the 
adjusted or unadjusted transitional or determined yields in accordance 
with Sec. 400.54(b). The agent will review the production reports and 
forward them to the verifier, along with any requested and required 
supporting records for determination of an approved APH yield.
    (d) The verifier will determine if the certified production reports 
are acceptable and calculate the approved APH yield.



Sec. 400.55  Qualification for actual production history coverage program.

    (a) The approved APH yield is calculated from a database containing 
a minimum of four yields and will be updated each subsequent crop year. 
The database may contain a maximum of the 10 most recent crop years and 
may include actual, assigned, and adjusted or unadjusted T or D-Yields. 
T or D-Yields, adjusted or unadjusted, will only occur in the database 
when there are less than four years of actual and/or assigned yields.
    (b) The insured may be required to provide production records to 
determine the approved APH yield, if production records for the most 
recent crop year are available. If acceptable records of actual 
production are provided, the records must be continuous and contain at 
least the most recent crop year's actual yield.
    (1) If no acceptable production records are available, the approved 
APH yield is the adjusted T or D-Yield (65 percent of T or D-Yield).
    (2) If acceptable production records containing information for only 
the most recent crop year are provided, the three T or D-Yields adjusted 
by 80 percent will be used to complete the minimum database and 
calculate the approved APH yield.
    (3) If acceptable production records containing information for only 
the two most recent crop years are provided, the two T or D-Yields 
adjusted by 90 percent and the two actual yields will be used to 
complete the database and calculate the approved APH yield.
    (4) If acceptable production records containing information for only 
the three most recent crop years are provided, the three actual yields 
and one unadjusted T or D-Yield are used to complete the database and 
calculate the approved APH yield.
    (5) When the database contains four or more (up to ten) continuous 
actual yields, the approved APH yield is a simple average of the actual 
yields.
    (6) New producers may have their approved APH yields based on 
unadjusted T or D-Yields or a combination of actual and unadjusted T or 
D-Yields.
    (7) Producers who add land or new practice, types and varieties to 
their farming operations and who do not have available records for the 
added land, practice, types or varieties may have approved APH yields 
for the added land, practice, types or varieties that are based on 
adjusted or unadjusted T or D-Yields as determined by FCIC.
    (8) If the producer's crop is destroyed or if it produces a low 
actual yield due to insured causes of loss, the resulting average yield 
may qualify for catastrophic yield adjustment according to

[[Page 22]]

FCIC guidelines. APH yields qualifying for catastrophic yield adjustment 
may be adjusted to mitigate the effect of catastrophic years. Premium 
rates for approved APH yields, which are adjusted for catastrophic 
years, may be based on the producer's APH average yield prior to the 
catastrophic adjustment or such other basis as determined appropriate by 
FCIC.
    (c) If no insurable acreage of the insured crop is planted for a 
year, a production report indicating zero planted acreage will maintain 
the continuity of production reports for APH record purposes and that 
calendar year will not be included in the APH yield calculations.
    (d) Actual yields calculated from the claim for indemnity will be 
entered in the database. The resulting average yield will be used to 
determine the premium rate and approved APH yield, at the discretion of 
FCIC.
    (e) Optional units are not available to an insured who does not 
provide acceptable production reports for at least the most recent crop 
year with which to calculate an approved APH yield.
    (f) FCIC may determine approved APH yields for designated crops in 
the following situations:
    (1) If less than four years of yield history is certified and T or 
D-Yields are not provided in the actuarial documents,
    (2) If actual yield exceed tolerances specified in yield variance 
tables, and
    (3) For perennial crops:
    (i) If significant upward or downward yield trends are indicated;
    (ii) If tree or vine damage, or cultural practices will reduce the 
production level;
    (iii) if more than two percent of the trees or vines have been 
removed within the last two years; or
    (iv) If yield trends are evident and yields greater than the average 
yield are requested by the insured.
    (g) APH yields will not be approved the first insurance year on 
perennial crops until an inspection acceptable to FCIC has been 
performed and the acreage is accepted for insurance purposes in 
accordance with the crop insurance contract.
    (h) APH Master Yields may be established whenever crop rotation 
requirements and land leasing practices limit the yield history 
available. FCIC will establish crops and locations for which Master 
Yields are available. To qualify, the producer must have at least four 
recent continuous crop years' annual production reports and must certify 
the authenticity of the production reports of the insured crop. Master 
Yields are based on acreage and production history from all acreage of 
the insured crop in the county in which the operator has shared in the 
crop's production.
    (i) FCIC may use any production report available under the 
provisions of any crop insurance contract, whether continuous or not, 
involving the interests of the person's insured crops in determining the 
approved APH yield.



Sec. 400.56  Administrative appeal exhaustion.

    The insured may appeal the approved APH yield in accordance with the 
procedures contained in 7 CFR part 400, subpart J. Administrative 
remedies through the appeal process must be exhausted prior to any 
action for judicial review. The approved APH yield determined as a 
result of the appeal process will be the yield applicable to the crop 
year.



Sec. 400.57  OMB control numbers.

    OMB control numbers are contained in 7 CFR part 400, subpart H.



   Subpart H--Information Collection Requirements Under the Paperwork 
                   Reduction Act; OMB Control Numbers

    Authority: 5 U.S.C. 1320, Pub. L. 96-511 (44 U.S.C., chapter 35).

    Source: 56 FR 49390, Sept. 30, 1991, unless otherwise noted.



Sec. 400.65  Purpose.

    This subpart collects and displays the control numbers assigned to 
information collection requirements of the Federal Crop Insurance 
Corporation (FCIC) by the Office of Management and Budget pursuant to 
the Paperwork Reduction Act of 1980 (Pub. L. 96-511). FCIC intends that 
this subpart comply with the requirements of section 3507(f)

[[Page 23]]

of the Paperwork Reduction Act, which requires that agencies display a 
current control number assigned by the Director of OMB for each agency 
information collection requirement.



Sec. 400.66  Display.

    (a) Crop Insurance Regulations promulgated by FCIC and contained in 
7 CFR part 400 et seq., contain the following statement:

                           OMB Control Numbers

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.

    (b) Specific report title and agency forms approved by OMB are as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Expiration
                   FCI No.                                    Form title                  OMB No.        date
----------------------------------------------------------------------------------------------------------------
FCI-3........................................  Collector's Contact Report.............    0563-0043      8-31-94
FCI-5........................................  Contract Price Election Agreement          0563-0021      6-30-94
                                                Option for Non-Quota (additional)
                                                Peanuts.
FCI-5........................................  Request for Actuarial Change...........    0563-0042      9-30-94
FCI-5-A......................................  Request for Actuarial Change               0563-0042      9-30-94
                                                Continuation Sheet.
FCI-6........................................  Statement of Facts.....................    0563-0027      6-30-94
FCI-9........................................  Late Planting Agreement................    0563-0023      6-30-94
FCI-12.......................................  Crop Insurance Application.............    0563-0003      3-31-93
FCI-12-A.....................................  Contract Changes.......................    0563-0025      7-31-94
FCI-12-P.....................................  Pre-Acceptance Perennial Crop              0563-0031      7-31-94
                                                Inspection Report.
FCI-19.......................................  Crop Insurance Acreage Report..........    0563-0001      2-28-95
FCI-19-A.....................................  Actual Production History Review.......    0563-0036      7-31-94
FCI-19-A.....................................  Production and Yield Report............    0563-0029      7-31-94
FCI-19-C.....................................  Texas Citrus Grove Inspection Report...    0563-0017      4-30-95
FCI-20.......................................  Application for Assignment of Indemnity    0563-0014     12-31-93
FCI-21.......................................  Transfer of Right to an Indemnity......    0563-0014     12-31-93
FCI-63.......................................  Claim for Citrus Indemnity.............    0563-0007      2-28-95
FCI-63-A.....................................  Claim for Raisin Indemnity.............    0563-0007      2-28-95
FCI-63-A.....................................  Notice of Damage--Raisins..............    0563-0035      8-31-94
FCI-63-A.....................................  Adjuster's Florida Citrus Worksheet....    0563-0016      4-30-95
FCI-63-B.....................................  Tabulation of Production Records from      0563-0044      9-30-94
                                                Individual Load Certificates.
FCI-73.......................................  Certiication Form......................    0563-0033      7-31-94
FCI-74.......................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity.
FCI-74.......................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity (Continuation Sheet).
FCI-74-T-P-C.................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity (Tobacco, Peanuts, and
                                                Cotton).
FCI-74-T-P-C.................................  Field Inspection Claim for Indemnity       0563-0007      2-28-95
                                                (Continuation Sheet).
FCI-74-A.....................................  Adjuster's Apple Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Beans and Peas Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-A.....................................  Citrus Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Stand Reduction and Hail Appraisal         0563-0016      4-30-95
                                                Worksheet.
FCI-74-A.....................................  Nut Tree Appraisal Worksheet...........    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Citrus Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Corn, Grain Sorghum, and Silage            0563-0016      4-30-95
                                                Appraisal Worksheet.
FCI-74-A.....................................  Cotton Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Fig Appraisal Worksheet................    0563-0016      4-30-95
FCI-74-A.....................................  Flax Appraisal Worksheet...............    0563-0016      4-30-95
FCI-74-A.....................................  Forage Seeding Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-A.....................................  Fresh Sweet Corn Appraisal Worksheet...    0563-0016      4-30-95
FCI-74-A.....................................  Table Grape Appraisal Worksheet........    0563-0016      4-30-95
FCI-74-A.....................................  Peanut Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Pear Appraisal Worksheet...............    0563-0016      4-30-95
FCI-74-A.....................................  Peppers, Fresh Tomatoes Appraisal          0563-0016      4-30-95
                                                Worksheet.
FCI-74-A.....................................  Fresh Plums Appraisal Worksheet........    0563-0016      4-30-95
FCI-74-A.....................................  Potato Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Prune Appraisal Worksheet..............    0563-0016      4-30-95
FCI-74-A.....................................  Safflower Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Wheat, Barley, Oats, Rye, Rice             0563-0016      4-30-95
                                                Appraisal Worksheet.
FCI-74-A.....................................  Soybean Appraisal Worksheet............    0563-0016      4-30-95

[[Page 24]]

 
FCI-74-A.....................................  Stonefruit Appraisal Worksheet.........    0563-0016      4-30-95
FCI-74-A.....................................  Sugar Beet Appraisal Worksheet.........    0563-0016      4-30-95
FCI-74-A.....................................  Sugarcane Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Sunflower Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Tobacco Appraisal Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Peach Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Tomato Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Texas Citrus Tree Appraisal Worksheet..    0563-0016      4-30-95
FCI-74-A.....................................  Macadamia Tree Worksheet...............    0563-0028      6-30-94
FCI-74-A.....................................  Macadamia Tree Worksheet (continuation)    0563-0028      6-30-94
FCI-74-A.....................................  Random Path Appraisal Worksheet........    0563-0039      8-31-94
FCI-74-B.....................................  Adjuster's Apple Worksheet.............    0563-0016      4-30-95
FCI-74-B.....................................  Peanut Computation Sheet...............    0563-0041      9-30-94
FCI-74-B.....................................  Stand Reduction Appraisal Worksheet....    0563-0016      4-30-95
FCI-74-B.....................................  Fresh Tomatoes Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-B.....................................  Peppers Appraisal Worksheet............    0563-0016      4-30-95
FCI-74-B.....................................  Cotton Claim for Indemnity.............    0563-0014     12-31-93
FCI-74-C.....................................  Summary of Harvested Production........    0563-0040      8-31-94
FCI-74-C.....................................  Hail Damage Appraisal Worksheet........    0563-0016      4-30-95
FCI-78.......................................  Request to Exclude Hail and Fire.......    0563-0032      6-30-94
FCI-78-A.....................................  Request to Exclude Hail and Fire.......    0563-0032      6-30-94
FCI-505......................................  Potato Crop Insurance Policy--Certified    0563-0029      6-30-94
                                                Seed Potato Option Amendment.
FCI-506......................................  Apple Fresh Fruit Option...............    0563-0020      6-30-94
FCI-513......................................  Waiver to Transfer Segregation II and      0563-0026      7-31-94
                                                III Peanuts to Quota Loan.
FCI-514......................................  Malting Barley Option..................    0563-0020      6-30-94
FCI-523......................................  Potato Quality Option..................    0563-0020      6-30-94
FCI-527......................................  Planting Record--Fresh Sweet Corn......    0563-0022      6-30-94
FCI-528......................................  Planting Record--Peppers...............    0563-0022      6-30-94
FCI-529......................................  Planting Record--Tomatoes (Fresh Market    0563-0022      6-30-94
                                                Dollar).
FCI-530......................................  Upland/ELS Cotton Program/                 0563-0038      8-31-94
                                                Identification of Cotton Prod.
FCI-532......................................  Power of Attorney......................    0563-0030      8-31-94
FCI-535......................................  Wheat Crop Insurance--Winter Coverage      0563-0020      6-30-94
                                                Option.
FCI-539......................................  Apple Sunburn Option...................    0563-0020      6-30-94
FCI-541......................................  Corn Silage Option.....................    0563-0020      6-30-94
FCI-544......................................  Underwriting Questionnaire (Container      0563-0034      7-31-94
                                                Stock Only).
FCI-545......................................  Nursey Container Report................    0563-0034      7-31-94
FCI-546......................................  Nursey Crop Insurance Inventory Summary    0563-0034      7-31-94
FCI-547......................................  Potato Crop Ins. Policy--Processing        0563-0020      6-30-94
                                                Potato Quality Option.
FCI-548......................................  Potato Crop Ins. Policy--Frost/Freeze      0563-0020      6-30-94
                                                Potato Option.
FCI-549......................................  High-Risk Land Exclusion Option........    0563-0018      6-30-95
FCI-550......................................  Fresh Market Tomato Minimum Value          0563-0020      6-30-94
                                                Option.
FCI-551......................................  Raisin Conditioning Pool--Production to    0563-0035      8-31-94
                                                Count.
FCI-552......................................  Self-Certification Replant Worksheet...    0563-0037      8-31-94
FCI-553......................................  Unit Division Option...................    0563-0001      2-28-95
FCI-554......................................  Macadamia Orchard Inspection Report....    0563-0015      4-30-95
FCI-555......................................  Peach Producer's Picking Records.......    0563-0024      6-30-94
FCI-819......................................  Raisin Supplement--Tonnage Report......    0563-0035      8-31-94
----------------------------------------------------------------------------------------------------------------


[56 FR 49390, Sept. 30, 1991, as amended at 58 FR 13531, Mar. 12, 1993]

Subpart I  [Reserved]



                Subpart J--Appeal Procedure--Regulations

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

[[Page 25]]



Sec. 400.90  Applicability.

    Persons who are insured or believe they are insured under contracts 
of insurance issued under the Federal Crop Insurance Act must obtain 
appeal and reconsideration of decisions made under the provisions of 
this chapter in accordance with part 780 of this title.

[60 FR 67313, Dec. 29, 1995]



Subpart K--Debt Management--Regulations for the 1986 and Succeeding Crop 
                                  Years

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 17316, May 12, 1986, unless otherwise noted.



Sec. 400.115  Purpose.

    This subpart sets forth procedures that will be followed, and the 
rights afforded to debtors, in connection with the reporting by the 
Federal Crop Insurance Corporation (FCIC) to credit reporting agencies 
of information with respect to current and delinquent debts owed to 
FCIC, and in connection with referral of delinquent debts to contract 
collection agencies.



Sec. 400.116  Definitions.

    (a) Credit reporting agency means (1) a reporting agency as defined 
at 4 CFR 102.5(a), or (2) any entity which has entered into an agreement 
with USDA concerning the referral of credit information.
    (b) Collection agency means a private debt collection contractor 
under Federal Supply Schedule contract with the General Services 
Administration (GSA) for professional debt collection services.
    (c) Comptroller means the employee of FCIC filling that position or 
the person designated by the Comptroller to perform that function.
    (d) Debt and claim are deemed synonymous and are used 
interchangeably herein. The debt or claim is an amount of money which 
has been determined by an appropriate agency official to be owed to FCIC 
by any individual, organization or entity, except another Federal 
agency; State, local or foreign government or agencies thereof; Indian 
tribal governments; or other public institutions.

The debt or claim may have arisen from overpayment, premium non-payment, 
interest, penalties, reclamations resulting from payments under good 
faith reliance provisions, or other causes.

    (e) Delinquent debt means (1) any debt owed to FCIC that has not 
been paid by the termination date specified in the applicable contract 
of insurance, or other due date for payment contained in any other 
agreement, or notification of indebtedness, and (2) any overdue amount 
owed to FCIC by a debtor which is the subject of an installment payment 
agreement which the debtor has failed to satisfy under the terms of such 
agreement.
    (f) System of records means a group of any records under the control 
of FCIC from which information is retrieved by the name of the 
individual by some identifying number, symbol, or other identification 
assigned to the individual.
    (g) Request for review means that request submitted to FCIC by a 
debtor for a review of the facts resulting in the determination of 
indebtedness to FCIC. FCIC allows 45 days for such request and any 
request submitted within that period is considered a timely request.



Sec. 400.117  Determination of delinquency.

    Prior to disclosing information about a debt to a credit reporting 
agency in accordance with this subpart, the FCIC claims official, 
designated as the Comptroller, FCIC, or the designee of the Comptroller 
who has jurisdiction over the claim, shall review the claim and 
determine that the claim is valid and overdue.



Sec. 400.118  Demand for payment.

    The Comptroller who is responsible for carrying out the provisions 
of this subpart with respect to the debt shall send to the debtor 
appropriate written demands for payment in terms which inform the debtor 
of the consequences of failure to make payment, in accordance with 
guidelines established by the Manager, FCIC, the Federal Claims 
Collection Standards at 4 CFR 102.2, or

[[Page 26]]

the contract between the General Services Administration (GSA) and the 
collection agency.



Sec. 400.119  Notice to debtor; credit reporting agency.

    (a) In accordance with guidelines established by the Manager, FCIC, 
the Comptroller who is responsible for disclosure of information with 
respect to delinquent debts to a credit reporting agency shall send 
written notice to the delinquent debtors that FCIC intends to disclose 
credit information to a credit reporting agency on a regular basis. In 
addition, delinquent debtors are to be informed:
    (1) Of the basis for the indebtedness;
    (2) That the payment is overdue;
    (3) That FCIC intends to disclose to a credit reporting agency that 
the debtor is responsible for the debt and with respect to an 
individual, that such disclosure shall be made not less than 60 days 
after notification to such debtor;
    (4) Of the specific information intended to be disclosed to the 
credit reporting agency;
    (5) Of the rights of such debtor to a full explanation of the claim 
and to dispute any information in the system of records of FCIC 
concerning the claim;
    (6) Of the debtor's right to administrative appeal or review with 
respect to the claim and how such review shall be obtained; and
    (7) Of the date after which the information will be reported to the 
credit reporting agency.
    (b) The content and standards for demand letters and notices sent 
under this section shall be consistent with the Federal Claims 
Collection Standards at 4 CFR 102.2.



Sec. 400.120  Subsequent disclosure and verification.

    (a) FCIC shall promptly notify each credit reporting agency to which 
the original disclosure of debt information was made of any substantial 
change in the condition or amount of the claim. A substantial change in 
condition may include, but is not limited to, notice of death, cessation 
of business, or relocation of the debtor. A substantial change in the 
amount may include, but is not limited to, payments received, additional 
amounts due, or offsets made with respect to the debt.
    (b) FCIC shall promptly verify or correct, as appropriate, 
information about the claim or request of such credit reporting agency 
for verification of any or all information so disclosed. The records of 
the debtor shall reflect any correction resulting from such request.
    (c) FCIC shall obtain satisfactory assurances from each reporting 
agency to which information will be provided that the agency is in 
compliance with the provisions of all laws and regulations of the United 
States relating to providing credit information.



Sec. 400.121  Information disclosure limitations.

    FCIC shall limit delinquent debt information disclosed to credit 
reporting agencies to:
    (a) The name, address, taxpayer identification number, and other 
information necessary to establish the identity of the debtor;
    (b) The amount, status, and history of the claim; and
    (c) The FCIC program under which the claim arose.



Sec. 400.122  Attempts to locate debtor.

    Before disclosing delinquent debt information to a credit reporting 
agency, FCIC shall take reasonable action to locate a debtor for whom 
FCIC does not have a current address in order to send the notification 
in accordance with Sec. 400.119 of this subpart.



Sec. 400.123  Request for review of the indebtedness.

    (a) Before disclosing delinquent debt information to a credit 
reporting agency, FCIC shall, upon request of the debtor, provide for a 
review of the claim, including an opportunity for reconsideration of the 
initial decision concerning the existence or amount of the claim, in 
accordance with applicable administrative appeal procedures.
    (b) Upon receipt of a timely request for review, FCIC shall suspend 
its schedule for disclosure of delinquent debt information to a credit 
reporting agency until such time as a final decision is made on the 
request.
    (c) Upon completion of the review, the reviewing office shall 
transmit to

[[Page 27]]

the debtor a written notification of the decision. If appropriate, 
notification shall inform the debtor of the scheduled date on or after 
which information concerning the debt will be provided to the credit 
reporting agency. The notification shall, if appropriate, also indicate 
any changes in the information to be disclosed to the extent such 
information differs from that provided in the initial notification.



Sec. 400.124  Disclosure to credit reporting agencies.

    (a) In accordance with guidelines established by the Manager, FCIC, 
the Comptroller or designated manager of the systems of records shall 
disclose to credit reporting agencies the information specified in 
Sec. 400.121.
    (b) Disclosure of information to credit reporting agencies shall be 
made on or after the date specified in Secs. 400.119(a)(3) and 400.125 
and shall be comprised of the information set forth in the initial 
determination or any modification thereof.
    (c) This section shall not apply to disclosure of delinquent debts 
when:
    (1) The debtor has agreed to a repayment agreement for such debt and 
such agreement is still valid; or
    (2) The debtor has filed for review of the debt and the reviewing 
official or designee has not issued a decision on the review.



Sec. 400.125  Notice to debtor, collection agency.

    FCIC shall provide 30 days written notice to the debtor, mailed to 
the debtor's last known address, of FCIC's intent to forward the debt to 
a collection agency for further collection action.



Sec. 400.126  Referral of delinquent debts to contract collection agencies.

    (a) FCIC shall use the services of a contract collection agency 
which has entered into a contract with the General Services 
Administration to recover debts owed to FCIC.
    (b) If FCIC's collection efforts have been unsuccessful on a 
delinquent debt, and the delinquent debt remains unpaid, FCIC may refer 
the debt to a contract collection agency for collection.
    (c) FCIC shall retain the authority to resolve disputes, compromise 
claims, suspend or terminate collection action, and refer the matter for 
litigation.



Sec. 400.127  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 400.128  Definitions.

    (a) Agency means (1) An Executive Agency as defined by 5 U.S.C. 105, 
the United States Postal Service, and the United States Postal Rate 
Commission, or (2) A Military Department, as defined by section 102 of 
Title 5 U.S.C.
    (b) Debt means:
    (1) An amount owed to the United States from sources including, but 
not limited to, insured or guaranteed loans, fees, leases, insurance 
premiums, interest (except where prohibited by law), rents, royalties, 
services, sale of real or personal property, overpayments, penalties, 
damages, fines and forfeitures (except those arising under the Uniform 
Code of Military Justice).
    (2) An amount owed to the United States by an employee for pecuniary 
losses where the employee has been determined to be liable because of 
such employee's negligent, willful, unauthorized or illegal acts, 
including but not limited to:
    (i) Theft, misuse, or loss of Government funds;
    (ii) False claims for services and travel reimbursement;
    (iii) Illegal, unauthorized obligations and expenditures of 
Government appropriations;
    (iv) Using or authorizing the use of Government owned or leased 
equipment, facilities, supplies and services for other than official or 
approved purposes;
    (v) Lost, stolen, damaged, or destroyed Government property;
    (vi) Erroneous entries on accounting records or reports; and
    (vii) Deliberate failure to provide physical security and control 
procedures for accountable officers, if such failure is determined to be 
the proximate cause for a loss of Government funds.
    (c) Department or USDA means the United States Department of 
Agriculture.

[[Page 28]]

    (d) Disposable salary (pay) means any pay due an employee which 
remains after required deductions for Federal, State and local income 
taxes; Social Security taxes, including Medicare taxes; Federal 
retirement programs; premiums for life and health insurance benefits; 
and such other deductions as may be required by law to be withheld.
    (e) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces.
    (f) FCIC Official means the Manager, or the Manager's designee.
    (g) Hearing Officer means an Administrative Law Judge of the 
Department of Agriculture or another person not under the control of the 
USDA, designated by the FCIC Official to review the determination of the 
alleged debt.
    (h) Salary Offset means a deduction of a debt due the U.S. by 
deduction from the disposable salary of an employee without the 
employee's consent.
    (i) Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt owed by an employee as permitted or required by 5 
U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C. 716, 5 U.S.C. 8346(b), or any 
other law.

[53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.129  Salary offset.

    (a) Debt collection by salary offset is feasible if: the cost to the 
Government of collection by salary offset does not exceed the amount of 
the debt; there are no legal restrictions to the debt, such as the 
debtor being under the jurisdiction of a bankruptcy court or the 
expiration of a statute of limitations; or, other such legal 
restrictions. The Debt Collection Act permits collections of debts by 
offset for claims that have not been outstanding for more than 10 years.
    (b) The salary offset provisions contained herein provide procedures 
which must be followed before FCIC may request another Federal agency to 
offset any amount from the debtor's salary. Decisions made under the 
provisions of this section are not appealable under the provisions of 
the Appeal Regulations in part 400, subpart J of this title.
    (c) These regulations will not apply to any case where collection of 
a debt by salary offset is explicitly provided for by another statue as 
noted by the Comptroller General in 64 Comp. Gen. 142 (1984), including 
5 U.S.C. 5512(a), 5 U.S.C. 5513, 5 U.S.C. 5522(a) (1), 5 U.S.C. 5705 (1) 
and (2), and 5 U.S.C. 5724(f).
    (d) Salary offset may be used by FCIC to collect debts which arise 
from delinquent FCIC premium payments or delinquent repayment plans and 
other debts arising from, but not limited to, such sources as program 
theft, embezzlement, fraud, salary overpayments, underwithholding of any 
amounts due and payable for life and health insurance, advance travel 
payments, overpaid indemnities, and any amount owed by present or former 
employees from loss of federal funds through negligence and other 
matters. The debt does not have to be reduced to judgment and does not 
have to be covered by a security instrument.
    (e) FCIC may use salary offset against one of its employees who is 
indebted to another agency if requested to do so by that agency. Salary 
offset will not be initiated until after other servicing options 
available to the requesting agency have been utilized, and due process 
has been afforded to the FCIC employee. When salary offset is utilized, 
payment for the debt will be deducted from the employee's salary and 
sent directly to the creditor agency. Not more than fifteen percent 
(15%) of the employee's disposable salary can be offset in any one pay 
period, unless the employee agrees in writing to the deduction of a 
larger amount.
    (f) When FCIC is owed a debt by an employee of another agency, the 
other agency shall not initiate the requested offset until FCIC provides 
the agency with a written certification that the debtor owes FCIC a debt 
(including the amount and basis of the debt and the due date of the 
payment), and that FCIC has complied with Department regulations. If a 
repayment schedule is elected by the employee, interest will be charged 
in accordance with Departmental Regulation 2520-1, Interest Rate on 
Delinquent Debts; USDA Debt Collection Regulations in 7 CFR part 3; and 
4 CFR 102.13.
    (g) For the purposes of this section, the Manager, FCIC, or the 
Manager's designee, is delegated authority to:

[[Page 29]]

    (1) Certify to the debtor's employing agency that the debt exists 
and the amount of the debt or delinquent balance;
    (2) Certify that, with respect to debt collection, the procedures 
and regulations of FCIC and the Department have been complied with; and
    (3) Request that salary offset be initiated by the debtor's 
employing agency.

[53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.130  Notice requirements before offset.

    Salary offset will not be made unless the employee receives 30 
calendar days written notice. The notice of intent to offset salary 
(notice of intent) will state:
    (a) That FCIC has reviewed the records relating to the debt and has 
determined that the debt is owed, and has verified the amount of the 
debt, and the facts giving rise to the debt;
    (b) That FCIC intends to deduct an amount not to exceed 15% of the 
employees current disposable salary until the debt and all accumulated 
interest are paid in full;
    (c) The amount, frequency, approximate beginning date, and duration 
of the intended deductions;
    (d) An explanation of the requirements concerning interest, 
penalties, and administrative costs, including a statement that these 
assessments will be made unless waived in accordance with 31 U.S.C. 3717 
and 7 CFR 3.34;
    (e) That FCIC's records concerning the debt are available to the 
employee for inspection and that the employee may request a copy of such 
records;
    (f) That the employee has a right to voluntarily enter into a 
written agreement with FCIC for a repayment schedule with FCIC, which 
may be different from that proposed by FCIC, if the terms of the 
repayment agreement are agreed to by FCIC;
    (g) That the employee has the right to a hearing conducted by an 
Administrative Law Judge of USDA, or a hearing official not under the 
control of USDA, concerning the determination of the debt, the amount of 
the debt, or the percentage of disposable salary to be deducted each pay 
period, if the petition for a hearing is filed by the employee as 
prescribed by FCIC;
    (h) The method and time period allowable for a petition for a 
hearing;
    (i) That the timely filing of a hearing petition will stay the 
offset collection proceedings;
    (j) That a final decision on the hearing will be issued at the 
earliest practical date, but not later than 60 calendar days after the 
filing of the petition, unless the employee requests, and the hearing 
officer grants, a delay in the proceedings;
    (k) That any knowingly false or frivolous statement, representation, 
or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. Chapter 75, 5 
CFR part 752, or any other applicable Statutes or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3731, or 
any other applicable statutory authority: or
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority;
    (l) Any other rights or remedies available to the employee under any 
statute or regulations governing the program for which collection is 
being made;
    (m) That the employee may request waiver of salary overpayment under 
applicable statutory authority (5 U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C 
716, or 5 U.S.C 8346(b)), or may request waiver in the case of general 
debts and if waiver is available under any statutory provision 
pertaining to the particular debt being collected. The employee may 
question the amount or validity of the salary overpayment or general 
debt by submitting a claim to the Comptroller General in accordance with 
General Accounting Officer procedure.
    (n) That amounts paid on or deducted for the debt which are later 
waived or found not to be owed to the United States will be promptly 
refunded to the employee, unless there are applicable contractual or 
statutory provisions to the contrary; and
    (o) The name and address of an official of FCIC to whom the employee

[[Page 30]]

should direct any communication with respect to the debt.

[53 FR 4, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.131  Request for a hearing and result if an employee fails to meet deadlines.

    (a) Except as provided in paragraph (c) of this section, an employee 
must file a petition for hearing that is received by the FCIC Official 
not later than 30 calendar days from the date of the notice of intent to 
collect a debt by salary offset, if the employee wants a hearing 
concerning:
    (1) The existence or amount of the debt; or
    (2) The FCIC Official's proposed offset schedule, including the 
percentage of deduction.
    (b) The petition must be signed by the employee and should clearly 
identify and explain with reasonable specificity and brevity the facts, 
evidence and witnesses which the employee believes support the his or 
her position. If the employee objects to the percentage of disposable 
salary to be deducted from each check, the petition should state the 
objection and the reasons for it.
    (c) If the employee files a petition for hearing later than the 30 
days provided in paragraph (a) of this section, the FCIC Official may 
accept the petition if the employee is able to show that the delay 
caused by conditions beyond his or her control, or because the employee 
failed to received the notice of the filing deadline (unless the 
employee has actual notice of the deadline).
    (d) An employee will not be granted a hearing and will have his or 
her disposable salary offset in accordance with the FCIC Official's 
announced schedule if the employee:
    (1) Fails to file a petition for hearing as set forth in this 
subsection; or
    (2) Is scheduled to appear and fails to appear at the hearing.

[53 FR 4, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.132  Hearings.

    (a) If an employee timely files a petition for a hearing, the FCIC 
Official will select the date, time, and location for the hearing.
    (b) The hearing shall be conducted by an appropriately designated 
Hearing Official.
    (c) Rules of evidence shall not be observed, but the hearing officer 
will consider all evidence that he or she determines to be relevant to 
the debt that is the subject of the hearing, and weigh all such evidence 
accordingly, given all the facts and circumstances surrounding the debt.
    (d) The burden of proof with respect to the existence of the debt 
rests with FCIC.
    (e) The employee requesting the hearing shall bear the ultimate 
burden of proof.
    (f) The evidence presented by the employee must prove that no debt 
exists, or cast sufficient doubt such that reasonable minds could differ 
as to the existence of the debt.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.133  Written decision following a hearing.

    (a) At the conclusion of the hearing, a written decision will be 
provided which will include:
    (1) A statement of the facts presented at the hearing supporting the 
nature and origin of the alleged debt and those presented to refute the 
debt;
    (2) The hearing officer's analysis, findings, and conclusions, 
considering all the evidence presented and the respective burdens of the 
parties, in light of the hearing;
    (3) The amount and validity of the alleged debt determined as a 
result of the hearing;
    (4) The payment schedule (including the percentage of disposable 
salary), if applicable; and
    (5) The determination of the amount of the debt at this hearing is 
the final agency action on this matter.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.134  Review of FCIC record related to the debt.

    An employee who intends to inspect or copy FCIC records related to 
the debt must send a letter to the FCIC official (designated in the 
notice of intent) stating his or her intentions. The

[[Page 31]]

letter must be received by the FCIC official within 30 calender days of 
the date of the notice of intent. In response to the timely notice 
submitted by the debtor, the FCIC official will notify the employee of 
the location and time when the employee may inspect and copy FCIC 
records related to the debt.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.135  Written agreement to repay debt as an alternative to salary offset.

    The employee may propose, in response to a notice of intent, a 
written agreement to repay the debt as an alternative to salary offset. 
The proposed written agreement to repay the debt must be received by the 
FCIC official within 30 calendar days of the date of the notice of 
intent. The FCIC official will notify the employee whether the 
employee's proposed written agreement for repayment is acceptable. The 
FCIC official may accept a repayment agreement instead of proceeding by 
offset. In making this determination, the FCIC official will balance the 
FCIC interest in collecting the debt against hardship to the employee. 
If the debt is delinquent and the employee has not disputed its 
existence or amount, the FCIC official will accept a repayment 
agreement, instead of offset, for good cause such as, if the employee 
establishes that offset would result in undue financial hardship, or 
would be against equity and good conscience.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.136  Procedures for salary offset; when deductions may begin.

    (a) Deductions to liquidate an employee's debt will be made by the 
method and in the amount outlined in the Notice of Intent to collect 
from the employee's salary, as provided for in Sec. 400.130.
    (b) If the employee files a petition for a hearing before the 
expiration of the period provided for in Sec. 400.130, then deductions 
will begin after the hearing officer has provided the employee with a 
final written decision in favor of FCIC.
    (c) If an employee retires or resigns before collection of the 
amount of the indebtedness is completed, the remaining indebtedness will 
be collected in accordance with procedures for administrative offset.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.137  Procedures for salary offset; types of collection.

    A debt will be collected in a lump-sum or in installments. 
Collection will be by lump-sum collection unless the employee is 
financially unable to pay in one lump-sum, or if the amount of the debt 
exceeds 15 percent of the disposable pay for an ordinary pay period. In 
these cases, deduction will be by installments as set forth in 
Sec. 400.138.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.138  Procedures for salary offset; methods of collection.

    (a) General. A debt will be collected by deductions at officially-
established pay intervals from an employee's current pay account, unless 
the employee and the hearing official agree to alternative arrangements 
for repayment under Sec. 400.135.
    (b) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of the installment deductions will bear a reasonable 
relation to the size of the debt and the employee's ability to pay. If 
possible, the installment payment will be sufficient in size and 
frequency to liquidate the debt in no more than three years. Installment 
payments of less than $25.00 per pay period, or $50.00 per month, will 
be accepted only in the most unusual circumstances.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.139  Nonwaiver of rights.

    So long as there are no statutory or contractual provisions to the 
contrary, no employee payment (or all or portion of a debt) collected 
under these regulations will be interpreted as a waiver of any rights 
that the employee may have under the provisions of 5 U.S.C. 5514.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]

[[Page 32]]



Sec. 400.140  Refunds.

    FCIC will promptly refund to the appropriate individual amounts 
offset under these regulations when:
    (a) A debt is waived or otherwise found not owing to the United 
States (unless expressly prohibited by statute or regulation); or
    (b) FCIC is directed by an administrative or judicial order to 
refund amounts deducted from an employee's current pay.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.141  Internal Revenue Service (IRS) Tax Refund Offset.

    Under the provisions of 31 U.S.C. 3720A, the (IRS) may be requested 
to collect a legally enforceable debt owing to any Federal agency by 
offset against a taxpayer's Federal income tax refund. This section 
provides policies and procedures to implement IRS tax refund offsets in 
accordance with the provisions set forth in Sec. 301.6402-6T of 26 CFR 
chapter I.
    (a) Any person who is indebted to the Federal Crop Insurance 
Corporation (FCIC) is entitled to the extent of FCIC's administrative 
due process including review and appeal of the debt under the Appeal 
Regulations in 7 CFR part 400, subpart J.
    (b) If, after such administrative due process is exhausted, the debt 
is still outstanding with no other means of collection, the debtor will 
be notified by letter of FCIC's intention to refer such debt to the IRS 
for collection by tax refund offset. The notification letter will inform 
the debtor that their account is delinquent and that IRS will be 
requested to reduce the amount of any tax refund check due the debtor by 
the amount of the deliquency. The debtor will be given 60 days in which 
to write to the Manager, FCIC, providing written evidence that the debt 
is not legally enforceable. FCIC will refer the debt to IRS for 
collection by offset after the 60-day period if no response is received 
from the debtor. Decisions made under the provisions of this section are 
not appealable under the provisions of the Appeal Regulations in 7 CFR 
part 400, subpart J.
    (c) If the debtor has requested a review, and has provided written 
evidence that the debt is not legally enforceable, the Manager, with the 
assistance of the Office of General Counsel, USDA, will review the 
debtor's reasons for believing that the debt is not legally enforceable. 
The debtor will then be notified of the results of the review.
    (d) FCIC will notify IRS of those accounts against which offset 
action is to be taken.
    (e) If, during the period of review, the debtor pays the debt in 
full, the collection of the debt by tax refund offset procedure will be 
halted. Changes in debtor status that eliminate the debtor from IRS 
offset will be reported to IRS by FCIC and the debtor's refund will not 
be offset.
    (f) Amounts offset for delinquent debt which are later found to be 
not owed to FCIC, will be promptly refunded.
    (g) Debtors will not be subject to IRS offset for any of the 
following reasons:
    (1) Debtors who are discharged in bankruptcy or who are under the 
jurisdiction of a bankruptcy court;
    (2) Debtors who are employed by the Federal Government;
    (3) Debtors whose cases are in suspense because of actions pending 
by or taken by FCIC;
    (4) Debtors who have not provided a Social Security Number (SSN) and 
no SSN can be obtained;
    (5) Debtors whose indebtedness is less than $25;
    (6) Debtors whose account is more than ten (10) years delinquent; 
except in the case of a judgment debt; or
    (7) Debtors whose account has not been first reported to a consumer 
credit reporting agency.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.142  Past-due legally enforceable debt eligible for refund offset.

    For purposes of this section, a past-due, legally enforceable debt 
which may be referred by FCIC to IRS for offset is a debt which:
    (a) Except in the case of a judgement debt, has been delinquent for 
at least three months but has not been delinquent for more than 10 years 
at the time the offset is made;

[[Page 33]]

    (b) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (c) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2), or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by the referring agency 
against amounts payable to the debtor by the referring agency;
    (d) With respect to which the agency has given the employee at least 
60 days to present evidence that all or part of the debt is not past-due 
or legally enforceable, has considered evidence presented by such 
employee, and has determined that an amount of such debt is past-due and 
legally enforceable;
    (e) Has been disclosed by FCIC to a consumer reporting agency as 
authorized by 31 U.S.C. 3711(f), in the case of a debt to be referred to 
IRS after June 30, 1986;
    (f) With respect to which that FCIC has notified, or has made a 
reasonable attempt to notify, the employee that:
    (1) The debt is past due; and
    (2) Unless repaid within 60 days thereafter, will be referred to IRS 
for offset against any overpayment of tax; and
    (3) Which is at least $25.00.

[53 FR 6, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



 Subpart L--Reinsurance Agreement--Standards for Approval; Regulations 
              for the 1997 and Subsequent Reinsurance Years

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

    Source: 52 FR 17543, May 11, 1987, unless otherwise noted. 
Redesignated at 53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988.



Sec. 400.161  Definitions.

    In addition to the terms defined in the Standard Reinsurance 
Agreement, the following terms as used in this rule are defined to mean:
    (a) Annual Statutory Financial Statement means the annual financial 
statement of an insurer prepared in accordance with Statutory Accounting 
Principles and submitted to the state insurance department if required 
by any state in which the insurer is licensed.
    (b) Company means the company reinsured by FCIC or apply to FCIC for 
a Standard Reinsurance Agreement.
    (c) Corporation means the Federal Crop Insurance Corporation.
    (d) FCIC means the Federal crop Insurance Corporation.
    (e) Financial statement means any documentation submitted by a 
company as required by this subpart.
    (f) Guaranty fund assessments means the state administered program 
utilized by some state insurance regulatory agencies to obtain funds 
with which to discharge unfunded obligations of insurance companies 
licensed to do business in that state.
    (g) Insurer means an insurance company that is licensed or admitted 
as such in any State, Territory, or Possession of the United States.
    (h) MPUL means the maximum possible underwriting loss that an 
insurer can sustain on policies it intends to reinsure with FCIC, after 
adjusting for the effect of any reinsurance agreement with FCIC, and any 
outside reinsurance agreements, as evaluated by FCIC.
    (i) Obligations mean crop or indemnity for crop loss on policies 
reinsured under the Standard Reinsurance Agreement.
    (j) Plan of operation means a statment submitted to FCIC each year 
in which a reinsured or a prospective reinsured specifies the 
reinsurance options it wishes to use, its marketing plan, and similar 
information as required by the Corporation.
    (k) Quarterly Statutory Financial Statement means the quarterly 
financial statement of an insurer prepared in accordance with Statutory 
Accounting Principles and submitted to the state insurance department if 
required by any state in which the insurer is licensed.
    (l) Reinsurance agreement means an agreement between two parties by 
which an insurer cedes to a reinsurer certain liabilities arising from 
the insurer's sale of insurance policies.
    (m) Reinsured means the insurer which is a party to the Standard 
Reinsurance Agreement with FCIC.
    (n) Standard Reinsurance Agreement (Agreement) means the reinsurance

[[Page 34]]

agreement between the reinsured and FCIC.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 57 FR 34666, Aug. 6, 1992; 60 
FR 57903, Nov. 24, 1995]



Sec. 400.162  Qualification ratios.

    The sixteen qualification ratios include:
    (a) Eleven National Association of Insurance Commissioner's (NAIC's) 
Insurance Regulatory Information System (IRIS) ratios found in 
Secs. 400.170(d)(1)(ii) and 400.170(d)(2) (i), (ii), (iii), (vi), (vii), 
(ix), (xi), (xii), (xiii), and (xiv) and referenced in ``Using the NAIC 
Insurance Regulatory Information System'' distributed by NAIC, 120 West 
12th St., Kansas City, MO 64105-1925;
    (b) Three ratios used by A.M. Best Company found in 
Sec. 400.170(d)(2) (v), (viii), and (x) and referenced in Best's Key 
Rating Guide, A.M. Best, Ambest Road, Oldwick, N.J. 08858-0700;
    (c) One ratio found in Sec. 400.170(d)(1)(i) is calculated the same 
as the Gross Premium to Surplus IRIS ratio, with Gross Premium adjusted 
to exclude the MPCI premium assumed by FCIC; and
    (d) One ratio found in Sec. 400.170(d)(2)(iv) which is formulated by 
FCIC and is calculated the same as the One-Year Change to Surplus IRIS 
ratio but for a two-year period.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.163  Applicability.

    The standards contained herein shall be applicable to insurers who 
apply for or enter into a Standard Reinsurance Agreement effective for 
the 1997 and subsequent reinsurance years or who continue with a prior 
years Standard Reinsurance Agreement into the 1997 and subsequent 
reinsurance years.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.164  Availability of the Standard Reinsurance Agreement.

    Federal Crop Insurance Corporation will offer Standard Reinsurance 
Agreements to eligible Companies under which the Corporation will 
reinsure policies which the Companies issue to producers of agricultural 
commodities. The Standard Reinsurance Agreement will be consistent with 
the requirements of the Federal Crop Insurance Act, as amended, and 
provisions of the regulations of the Corporation found at chapter IV of 
title 7 of the Code of Federal Regulations.



Sec. 400.165  Eligibility for Standard Reinsurance Agreements.

    A Company will be eligible to participate in an Agreement if the 
Corporation determines the Company meets the standards and reporting 
requirements of this subpart.



Sec. 400.166  Obligations of the Corporation.

    The Agreement will include the following among the obligations of 
the Corporation.
    (a) The Corporation will reinsure policies written on terms, 
including premium rates, approved by the Corporation, on crops and in 
areas approved by the Corporation, and in accordance with the provisions 
of the Federal Crop Insurance Act, as amended, and the provisions of 
these regulations.
    (b) The Corporation will pay a portion of each producer's premium on 
the policies reinsured under the Agreement, as authorized by the Federal 
Crop Insurance Act, as amended.
    (c) The Corporation will assume all obligations for unpaid losses on 
policies reinsured under the Agreement in the event any company 
reinsured under the Agreement is unable to fulfill its obligations to 
any holder of a Multiple Peril Crop Insurance Policy reinsured by the 
Corporation by reason of a directive or order issued by any State 
Department of Insurance, State Commissioner of Insurance, any court of 
law having competent jurisdiction or any other similar authority of any 
jurisdiction to which the Company is subject.
    (d) Each policy reinsured by the Corporation must be clearly 
identified by including in bold face or large type the following 
statement as item number 1 in its General Provisions:
This insurance policy is reinsured by the Federal Crop Insurance 
Corporation under the provisions of the Federal Crop Insurance Act, as 
amended (the Act) (7 U.S.C. 1501 et seq.), and all terms of the policy 
and rights

[[Page 35]]

and responsibilities of the parties are specifically subject to the Act 
and the regulations under the Act published in chapter IV of 7 CFR.



Sec. 400.167  Limitations on Corporation's obligations.

    The Agreement will include the following among the limitations on 
the obligations of the Corporation.
    (a) The Corporation may, at any time, suspend its obligation to 
accept additional liability from the Company by providing written notice 
to that effect.
    (b) The obligations of the Corporation under the Agreement are 
contingent upon the availability of appropriations.
    (c) The Corporation will not reinsure any policy sold by the Company 
to a producer after the date Company receives notice that the 
Corporation has determined that the producer is ineligible to receive 
Federal Crop Insurance.



Sec. 400.168  Obligations of participating insurance company.

    The Agreement will include the following among the obligations of 
the Company.
    (a) The Company shall follow all applicable Corporation procedures 
in its administration of the crop insurance policies reinsured.
    (b) The Company shall make available to all eligible producers in 
the areas designated in its plan of operations as approved by the 
Corporation:
    (1) The crop insurance plans for the crops designated in its plan of 
operation in those counties within a State, or a portion of a State, 
where the Secretary of Agriculture has determined that insurance is 
available through local offices of the United States Department of 
Agriculture; and
    (2) Catastrophic risk protection, limited, and additional coverage 
plans of insurance for all crops, for which such insurance is made 
available by the Corporation, in all counties within a state, or a 
portion of State, where the Secretary of Agriculture has determined that 
insurance is no longer available through local offices of the United 
States Department of Agriculture.
    (c) The Company shall provide the Corporation, on forms approved by 
the Corporation all information that the Corporation may deem relevant 
in the administration of the Agreement, including a list of all 
applicants determined to be ineligible for crop insurance coverage and 
all insured producers cancelled or terminated from insurance, along with 
the reason for such action, the crop program, and the amount of coverage 
for each.
    (d) The Company shall utilize only loss adjustment procedures and 
methods that are approved by the Corporation.
    (e) The Company shall sell the policies covered under the Agreement 
through licensed agents or brokers who have successfully completed a 
training course approved by the Corporation.
    (f) The Company shall not discriminate against any employee, 
applicant for employment, insured or applicant for insurance because of 
race, color, religion, sex age, handicap, or national origin.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 61 FR 34368, July 2, 1996; 61 
FR 65153, Dec. 11, 1996]



Sec. 400.169  Disputes.

    (a) If the company believes that the Corporation has taken an action 
that is not in accordance with the provisions of the Standard 
Reinsurance Agreement or any reinsurance agreement with FCIC, except 
compliance issues, it may within 45 days after receipt of such 
determination, request, in writing, the Director of Insurance Services 
to make a final administrative determination addressing the disputed 
issue. The Director of Insurance Services will render the final 
administrative determination of the Corporation with respect to the 
applicable issues.
    (b) If the company believes that the Corporation's compliance review 
findings are not in accordance with the applicable laws, regulations, 
custom or practice of the insurance industry, or FCIC approved policy 
and procedure, it may within 45 days after receipt of such 
determination, request, in writing, the Director of Compliance to make a 
final administrative determination addressing the disputed issue. The 
Director of Compliance will render

[[Page 36]]

the final administrative determination of the Corporation with respect 
to these issues.
    (c) A company may also request reconsideration by the Director of 
Insurance Services of a decision of the Corporation rendered under any 
Corporation bulletin or directive which bulletin or directive does not 
affect, interpret, explain, or restrict the terms of the reinsurance 
agreement. The company, if it disputes the Corporation's determination, 
must request a reconsideraiton of that determination in writing, within 
45 days of the receipt of the determination. The determinations of the 
Director will be final and binding on the company. Such determinations 
will not be appealable to the Board of Contract Appeals.
    (d) Appealable final administrative determinations of the 
Corporation under Sec. 400.169 (a) or (b) may be appealed to the Board 
of Contract Appeals in accordance with the provisions of part 24 of 
title 7, subtitle A, of the Code of Federal Regulations, 7 CFR part 24.

[60 FR 21036, May 1, 1995]



Sec. 400.170  General qualifications.

    To qualify initially or thereafter for a Standard Reinsurance 
Agreement with FCIC, an insurer must:
    (a) Be licensed or admitted in any state, territory, or possession 
of the United States;
    (b) Be licensed or admitted, or use as a policy-issuing Company an 
insurer that is licensed or admitted, in each state from which the 
insurer will cede policies to FCIC for reinsurance;
    (c) Have surplus, as reported in its most recent Annual or Quarterly 
Statutory Financial Statement, that is at least equal to the MPUL for 
the company's estimated retained premium proposed to be reinsured, 
multiplied by the appropriate Minimum Surplus Factor found in the 
Minimum Surplus Table. For the purposes of the Minimum Surplus Table, an 
insurer is considered to issue policies in a state if at least two and 
one-half percent (2.5%) of all its reinsured retained premium is written 
in that state;

                          Minimum Surplus Table
------------------------------------------------------------------------
                                                               Minimum
                                                               surplus
 Number of states in which a company issues FCIC-reinsured      factor
                          policies                           (multiplied
                                                               by MPUL)
------------------------------------------------------------------------
1 through 10...............................................          2.5
11 or more.................................................          2.0
------------------------------------------------------------------------

    (d) Have and meet the ratio requirements of the Gross Premium to 
Surplus and Net Premium to Surplus required ratios and at least ten of 
the fourteen analytical ratios in this section based on the most recent 
Annual Statutory Financial Statement, or comply with Sec. 400.172:

------------------------------------------------------------------------
                   Ratio                          Ratio requirement
------------------------------------------------------------------------
(1) Required:
    (i) Gross Premium to Surplus..........  Less than 900%.
    (ii) Net Premium to Surplus...........  Less than 300%.
(2) Analytical:
    (i) Two-Year Overall Operating Ratio..  Less than 100%.
    (ii) Agents' Balances to Surplus......  Less than 40%.
    (iii) One-Year Change in Surplus......  Greater than -10% and less
                                             than 50%.
    (iv) Two-Year Change in Surplus.......  Greater than -10%.
    (v) Combined Ratio After Policyholder   Less than 115%.
     Dividends.
    (vi) Change in Writing................  Greater than -33% and less
                                             than 33%.
    (vii) Surplus Aid to Surplus..........  Less than 15%.
    (viii) Quick Liquidity................  Greater than 20%.
    (ix) Liabilities to Liquid Asset......  Less than 105%.
    (x) Return on Surplus.................  Greater than -5%.
    (xi) Investment Yield.................  Greater than 4.5% and less
                                             than 10%.
    (xii) One-Year Reserve Development to   Less than 20%.
     Surplus.
    (xiii) Two-Year Reserve Development to  Less than 20%.
     Surplus.
    (xiv) Estimated Current Reserve         Less than 25%.
     Deficiency to Surplus.
------------------------------------------------------------------------

    (e) Submit to FCIC all of the following statements:
    (1) Annual and Quarterly Statutory Financial Statements;
    (2) Statutory Management Discussion & Analysis;
    (3) Most recent State Insurance Department Examination Report;
    (4) Actuarial Opinion of Reserves;
    (5) Annual Audited Financial Report; and

[[Page 37]]

    (6) Any other appropriate financial information or explanation of 
IRIS ratio discrepancies as determined by the company or as requested by 
FCIC.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.171  Qualifying when a state does not require that an Annual Statutory Financial Statement be filed.

    An insurer exempt by the insurance department of the states where 
they are licensed from filing an Annual Statutory Financial Statement 
must, in addition to the requirements of Sec. 400.170 (a), (b), (c) and 
(d), submit an Annual Statutory Financial Statement audited by a 
Certified Public Accountant in accordance with generally accepted 
auditing standards, which if not exempted, would have been filed with 
the insurance department of any state in which it is licensed.

[60 FR 57904, Nov. 24, 1995]



Sec. 400.172  Qualifying with less than two of the required ratios or ten of the analytical ratios meeting the specified requirements.

    An insurer with less than two of the required ratios or ten of the 
analytical ratios meeting the specified requirements in Sec. 400.170(d) 
may qualify if, in addition to the requirements of Sec. 400.170 (a), 
(b), (c) and (e), the insurer:
    (a) Submits a financial management plan acceptable to FCIC to 
eliminate each deficiency indicated by the ratios, or an acceptable 
explanation why a failed ratio does not accurately represent the 
insurer's insurance operations; or
    (b) Has a binding agreement with another insurer that qualifies such 
insurer under this subpart to assume financial responsibility in the 
event of the reinsured company's failure to meet its obligations on FCIC 
reinsured policies.

[60 FR 57904, Nov. 24, 1995]



Sec. 400.173  [Reserved]



Sec. 400.174  Notification of deviation from financial standards.

    An insurer must immediately advise FCIC if it deviates from 
compliance with any of the requirements of this chapter. FCIC may 
require the insurer to update its financial statements during the year. 
FCIC may terminate the reinsurance agreement if the Company is out of 
compliance with the requirements of this chapter.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 60 FR 57904, Nov. 24, 1995]



Sec. 400.175  Revocation and non-acceptance.

    (a) FCIC will deny reinsurance to any insurer or will terminate any 
existing reinsurance agreement if any false or misleading statement is 
made in the financial statements or any other document submitted by the 
insurer in connection with its qualification for FCIC reinsurance.
    (b) No policy issued by an insurer subsequent to revocation of a 
reinsurance agreement will be reinsured by FCIC. Policies in effect at 
the time of revocation will continue to be reinsured by FCIC for the 
balance of the crop year then in effect for the applicable crop. 
However, if materially false information is made to the Corporation and 
that information directly affects the ability of the Company to perform 
under the Agreement, or if the Company commits any fraudulent or 
criminal act in relation to the Standard Reinsurance Agreement or any 
policy reinsured under the Agreement, FCIC may require that the Company 
transfer the servicing and contractual right to all business in effect 
and reinsured by the Corporation to the Corporation.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 60 FR 57904, Nov. 24, 1995]



Sec. 400.176  State action preemptions.

    (a) No policyholder shall have recourse to any state guaranty fund 
or similar state administered program for crop or premium losses 
reinsured under such Standard Reinsurance Agreement. No assessments for 
such State funds or programs shall be computed or levied on companies 
for or on account of any premiums payable on policies of Multiple Peril 
Crop Insurance reinsured by the Corporation.
    (b) No policy of insurance reinsured by the Corporation and no 
claim, settlement, or adjustment action with respect to any such policy 
shall provide a

[[Page 38]]

basis for a claim of damages against the Company issuing such policy, 
other than damages to which the Corporation would be liable under 
federal law if the Corporation had issued the policy of insurance under 
its direct writing program, unless the claimant establishes in a court 
of competent jurisdiction, or to the satisfaction of the Corporation in 
the event of a settlement, that such damages were caused by the culpable 
failure of the Company to substantially comply with the Corporation's 
procedures or instructions in the handling of the claim or in servicing 
the insured' policy, or unless the Company or its agents were acting 
outside the scope of their authority (apparent or implied) in performing 
or omitting the actions claimed as a basis for the damage action.



Sec. 400.177  [Reserved]



  Subpart M--Agency Sales and Service Contract--Standards for Approval

    Authority: 7 U.S.C. 1506, 1516.

    Source: 53 FR 24015, June 27, 1988, unless otherwise noted.



Sec. 400.201  Applicability of standards.

    Federal Crop Insurance Corporation will offer an Agency Sales and 
Service Contract (the Contract) to private entities meeting the 
requirements set forth in this subpart under which the Corporation will 
insure producers of agricultural commodities. The Contract will be 
consistent with the requirements of the Federal Crop Insurance Act, as 
amended, and the provisions of the regulations of the Corporation found 
at chapter IV of title 7 of the Code of Federal Regulations. The 
Standards contained herein are required for an entity to be a contractor 
under the Contract.



Sec. 400.202  Definitions.

    For the purpose of these Standards:
    (a) Agency Sales and Service Contract or the Contract means the 
written agreement between the Federal Crop Insurance Corporation 
(Corporation) and a private entity (Contractor) for the purpose of 
selling and servicing Federal Crop Insurance policies and includes, but 
is not limited to, the following:
    (1) The Agency Sales and Service Contract;
    (2) Any Appendix to the Agency Sales and Service Contract issued by 
the Corporation;
    (3) The annual approved Plan or Operation; and
    (4) Any amendment adopted by the parties.
    (b) BELL 208B (or compatible) modem--means a modem meeting the 
standards developed by BELL Laboratories for dial-up, half-duplex, 4800 
or 9600 bits per second (bps) transmission of data utilizing 3780 (or 
2780) protocol.
    (c) Contract, the see Agency Sales and Service Contract.
    (d) Contractor's electronic system (system) means the data 
processing hardware and software, data communications hardware and 
software, and printers utilized with the system.
    (e) CPA means a Certified Public Accountant who is licensed as such 
by the State in which the CPA practices.
    (f) CPA Audit means a professional examination conducted by a CPA in 
accordance with generally accepted auditing standards of a Financial 
Statement on the basis of which the CPA expresses an independent 
professional opinion respecting the fairness of presentation of the 
Financial Statement.
    (g) Current Assets means cash and other assets that are reasonably 
expected to be realized in cash or sold or consumed during the normal 
operation cycle of the business or within one year if the operation 
cycle is shorter than one year.
    (h) Current Liabilities means those liabilities expected to be 
satisfied by either the use of assets classified as current in the same 
balance sheet, or the creation of other current liabilities, or those 
expected to be satisfied within a relatively short period of time, 
usually one year.
    (i) Financial Statement means the documents submitted to the 
Corporation by a private entity which portray the financial information 
of the entity. The financial statement must be prepared in accordance 
with Generally Accepted Accounting Principles (GAAP) and reflect the 
financial position in the

[[Page 39]]

Statement of Financial Condition or Balance Sheet; and the result of 
operations in the Statement of Profit and Loss or Income Statement.
    (j) Processing representative means a person or organization 
designated by the Contractor to be responsible for data entry and 
electronic transmission of data contained on crop insurance documents.
    (k) Sales means new applications and renewals of FCIC policies.
    (l) Suspended Data Notice means a notification of a temporary stop 
or delay in the processing of data transmitted to the Corporation by the 
Contractor because the same is incomplete, non-processable, obsolete, or 
erroneous.
    (m) 3780 protocol--means the data communications protocol (standard) 
that is a binary synchronous communications (BSC), International 
Business Systems (IBM)-defined, byte controlled communications protocol, 
using control characters and synchronized transmission of binary coded 
data.



Sec. 400.203  Financial statement and certification.

    (a) An entity desiring to become or continue as a contractor shall 
submit to the Corporation a financial statement which is as of a date 
not more than eighteen (18) months prior to the date of submission.
    (b) The financial statement submitted shall be audited by a CPA (CPA 
Audit); or if a CPA audited financial statement is not available, the 
statement submitted to the Corporation must be accompanied by a 
certification of:
    (1) The owner, if the business entity is a sole proprietorship; or
    (2) At least one of the general partners, if the business entity is 
a partnership; or
    (3) The Chief Executive Officer and Treasurer, if the business 
entity is a Corporation, that said statement fairly represents the 
financial condition of the entity on the date of such certification to 
the Corporation. If the financial statement as certified by the Chief 
Executive Officer and Treasurer, partner, or owner is submitted, a CPA 
audited financial statement must be submitted if subsequently available.



Sec. 400.204  Notification of deviation from standards.

    A Contractor shall advise the Corporation immediately if the 
Contractor deviates from the requirements of these standards. The 
Corporation may require the Contractor to show compliance with these 
standards during the contract year if the Corporation determines that 
such submission is necessary. If the Corporation determines that the 
deviation is temporary, the Corporation may grant a temporary waiver 
pending compliance within a specified period of time. A waiver of any 
provision of these standards will not be granted to an applicant for a 
contract.



Sec. 400.205  Denial or termination of contract and administrative reassignment of business.

    Non-compliance with these standards will result in:
    (a) The denial of a Contract; or
    (b) Termination of an existing Contract.
    In the event of denial or termination of the Contract, all crop 
insurance policies of the Corporation sold by the Contractor and all 
business pertaining thereto may be assumed by the Corporation and may be 
administratively reassigned by the Corporation to another Contractor.



Sec. 400.206  Financial qualifications for acceptability.

    The financial statement of an entity must show total allowable 
assets in excess of liabilities and the ability of the entity to meet 
current liabilities by the use of current assets.



Sec. 400.207  Representative licensing and certification.

    (a) A Contractor must maintain twenty-five (25) licensed and 
certified Contractor Representatives.
    (b) A Contractor's Representative who solicits, sells and services 
FCIC policies or represents the Contractor in solicitation, sales or 
service of such policies must hold a license as issued by the State or 
States in which the policies are issued, which license authorizes the 
sales of insurance in any one or more of the following lines:
    (1) Multiple peril crop insurance;

[[Page 40]]

    (2) Crop hail insurance;
    (3) Casualty insurance;
    (4) Property insurance;
    (5) Liability insurance; or
    (6) Fire insurance and allied lines.
    The Contractor must submit evidence, satisfactory to the 
Corporation, verifying the type of State license held by each 
Representative and the date of expiration of each license.
    (c) A Contractor's Representative must have achieved certification 
by the Corporation for each crop upon which the Representative sells and 
services insurance.



Sec. 400.208  Term of the contract.

    (a) The term of the Contract shall commence on July 1 or when 
signed. The contract will continue from year to year with an annual 
renewal date of July 1 for each succeeding year unless the Corporation 
or the Contractor gives at least ninety (90) days advance notice in 
writing to the other party that the contract is not to be renewed. Any 
breach of the contract, or failure to comply with these Standards, by 
the Contractor, may result in termination of the contract by the 
Corporation upon written notice of termination to the Contractor. That 
termination will be effective thirty (30) days after mailing of the 
notice and termination to the Contractor.
    (b) A Contractor who elects to continue under the Contract for a 
subsequent year must, prior to the month of June, submit a completed 
Plan of Operation which includes the Certifications as required by 
Sec. 400.203 of this subpart. The Contractor may not perform under the 
contract until the Plan of Operation is approved by the Corporation.



Sec. 400.209  Electronic transmission and receiving system.

    Any Contractor under the Contract is required to:
    (a) Adopt a plan for the purpose of transmitting and receiving 
electronically, information to and from the Corporation concerning the 
original executed crop insurance documents;
    (b) Maintain an electronic system which must be tested and approved 
by the Corporation;
    (c) Maintain Corporation approval of the electronic system as a 
condition to the electronic transmission and reception of data by the 
Contractor;
    (d) Utilize the Corporation approved automated data processing and 
electronic data transmission capabilities to process crop insurance 
documents as required herein; and
    (e) Establish and maintain the electronic equipment and computer 
software program capability to:
    (1) Receive and store actuarial data electronically via 
telecommunications utilizing 3780 protocol and utilizing a BELL 208B or 
compatible modem at 4800 bits per second (bps);
    (2) Enter and store information from original crop insurance 
documents into electronic format;
    (3) Verify electronically stored information recorded from crop 
insurance documents with electronically stored actuarial information;
    (4) Compute and print the data elements in the Summary of 
Protection;
    (5) Transmit crop insurance data electronically, via 3780 protocol 
utilizing a BELL 208B or compatible modem at 4800 bps;
    (6) Receive electronic acknowledgements, error messages, and other 
data via 3780 protocol utilizing a BELL 208B or compatible modem at 4800 
bps, and relate error messages to original crop insurance documents; and
    (7) Store backup data and physical documents.

    (The Corporation may approve other compatible specifications if 
accepted by the Corporation and if requested by the Contractor)



Sec. 400.210  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



       Subpart N--Disaster Assistance Act of 1988; Procedures for 
                             Implementation

    Source: 54 FR 24318, June 7, 1989, unless otherwise noted.



Sec. 400.250  General statement.

    The Disaster Assistance Act of 1988, subsequent disaster acts and 
disaster provisions in subsequent acts and the Rural Development Act (7 
U.S.C. 1961 et

[[Page 41]]

seq.) have required that, subject to certain provisions in those 
enactments, procedures on a farm, in order to be eligible to receive 
benefits under the various provisions, would be required to purchase 
Federal crop insurance when the disaster for which benefits are being 
obtained are related to a peril which should be covered under the 
insurance policy. Most of these legislative provisions require that 
regulations be promulgated to provide for a reduction in the commissions 
paid to private insurance agents, brokers, or companies on contracts for 
crop insurance entered into under such disaster provisions. Said 
reductions must be sufficient to reflect that such insurance contracts 
principally involve only a servicing function to be performed by the 
agent, broker, or company.

[58 FR 36593, July 8, 1993]



Sec. 400.251  Purpose and applicability.

    (a) It is the purpose of these regulations to provide the procedures 
for implementing the various disaster acts and disaster provisions which 
require the purchase of crop insurance issued under the Federal Crop 
Insurance Act, by requiring a reduction in the compensation rate to the 
agent, broker, or company under contract or agreement with FCIC.
    (b) The provisions contained in this subpart shall be applicable to 
all holders of an Agency Sales and Service Contract (herein referred to 
as ``agency'') or a Reinsurance Agreement (herein referred to as 
``company'') with FCIC, and shall be applicable on all crop insurance 
contracts for crops entered into to comply with the requirements of 
various disaster acts or provisions requiring the purchase of crop 
insurance issued under the Federal Crop Insurance Act.

[54 FR 24318, June 7, 1989, as amended at 58 FR 36593, July 8, 1993]



Sec. 400.252  Implementation and expense reimbursement.

    Crop insurance coverage, required by various disaster acts or 
disaster provisions to be made available to any producer identified by 
the Agricultural Stabilization and Conservation Service (ASCS) as having 
suffered a crop loss of 65 percent or more, unless the requirement for 
such crop insurance coverage is waived under the provisions of various 
disaster acts or disaster provisions, may be made available through any 
agent or company under the terms and conditions of the contract or 
agreement such agent or company may have with FCIC. Agents under an 
Agency Sales and Service Contract and companies under a Reinsurance 
Agreement with FCIC are required to sign an amendment to the contract or 
agreement agreeing to a reduction in expense reimbursement for evidence 
of a policy of crop insurance issued under the requirements of various 
disaster acts or disaster provisions. Such expense reimbursement:
    (a) Will not be reduced if the producer:
    (1) Had crop insurance under the Federal Crop Insurance Act during 
the crop year for which the payment or other benefit is being sought 
under the various disaster acts or disaster provisions and said 
insurance has been continued into the next crop year;
    (2) Furnishes evidence of insurance coverage (copy of the completed, 
filed application or policy confirmation) for the next crop year for the 
crop for which the payment or other benefit under various disaster acts 
or disaster provisions is being requested, to the ASCS county office at 
the time of application for the disaster payment or other benefit under 
various disaster acts or disaster provisions; or
    (3) Has, under the provisions of various disaster acts or disaster 
provisions, received a waiver of the requirement to obtain crop 
insurance coverage.
    (b) Will be reduced in the amount of 1\1/2\ percent of base premium 
when the producer, applying for disaster payment at the ASCS Office 
without evidence of the required crop insurance coverage, is required by 
the ASCS or the Farmer's Home Administration (FmHA) county committee to 
obtain such crop insurance coverage for next crop year in order to 
receive the payment or other benefit sought under various disaster acts 
or disaster provisions.

[54 FR 24318, June 7, 1989, as amended at 58 FR 36593, July 8, 1993]

[[Page 42]]



 Subpart O--Non-Standard Underwriting Classification System Regulations 
                 for the 1991 and Succeeding Crop Years

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

    Source: 55 FR 32595, Aug. 10, 1990, unless otherwise noted.



Sec. 400.301  Basis, purpose, and applicability.

    The regulations contained in this subpart are issued pursuant to the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), to 
prescribe the procedures for nonstandard determinations and the 
assignment of assigned yields or premium rates in conformance with the 
intent of section 508 of the Act (7 U.S.C. 1508). These regulations are 
applicable to all policies of insurance insured or reinsured by the 
Corporation under the Act and on those policies where the insurance 
coverage or indemnities are based on determinations applicable to the 
individual insured. These regulations will not be applicable to any 
policy where the amount of coverage or indemnities are based on the 
experience of the area.

[62 FR 22876, Apr. 28, 1997]



Sec. 400.302  Definitions.

    Act--means Federal Crop Insurance Act as amended (7 U.S.C. 1501 et 
seq.).
    Actively engaged in farming means a person who, in return for a 
share of profits and losses, makes a contribution to the production of 
an insurable crop in the form of capital, equipment, land, personal 
labor, or personal management.
    Actual Yield--means total harvested production of a crop divided by 
the number of acres on which the crop was planted. For insured acres, 
actual yield is the total production to count as defined in the 
insurance policy, divided by insured acres.
    Assigned yield--means units of crop production per acre 
administratively assigned by the Corporation for the purpose of 
determining insurance coverage.
    Corporation--means the Federal Crop Insurance Corporation.
    Cumulative earned premium rate--is the total premium earned for all 
years in the base period, divided by the total liability for all years 
in the base period with the result expressed as a percentage.
    Cumulative loss ratio--means the ratio of total indemnities to total 
earned premiums during the base period expressed as a decimal.
    Earned premium means premium earned (both the amount subsidized and 
the amount paid by the producer, but excluding any amount of the subsidy 
attributed to the operating and administrative expenses of the insurance 
provider) for a crop under a policy insured or reinsured by the 
Corporation.
    Earned premium rate--means premium earned divided by liability and 
expressed as a percentage.
    Entity--means a person as defined in this subpart other than an 
individual.
    Indemnified loss means a loss applicable for the policy for any year 
during the NCS base period for which the total indemnity exceeds the 
total earned premium. If the person has insurance for the crop in more 
than one county for any crop year, indemnities and premiums will be 
accumulated for all counties for each crop year to determine an 
indemnified loss.
    Insurance experience means earned premiums, indemnities paid (but 
not including replant payments), and other data for the crop (after 
applicable adjustments), resulting from all of the insured's crop 
insurance policies insured or reinsured by the Corporation for one or 
more crop years and will include all information from all counties in 
which the person was insured.
    Loss ratio--means the ratio of indemnity to earned premium expressed 
as a decimal.
    NCS means nonstandard classification system.
    NCS base period means the 10 consecutive crop years (as defined in 
the crop policy) ending 2 crop years prior to the crop year in which the 
NCS classification becomes effective for all crops, except those 
specified on the Special Provisions. For these excepted crops, the NCS 
base period means the 10 consecutive crop years ending 3 crop years 
prior to the crop year in which the NCS classification becomes 
effective. For

[[Page 43]]

example: An NCS classification effective for the 1996 crop year against 
a producer of citrus production in Arizona, California, and Texas, or 
sugarcane would have a NCS base period that includes the 1984 through 
1993 crop years. An NCS classification effective for the 1996 crop year 
against a producer of all other crops would have a NCS base period that 
includes the 1985 through 1994 crop years.
    Person--means an individual, partnership, association, corporation, 
estate, trust, or other legal entity, and whenever applicable, a State 
or a political subdivision, or agency of a state.
    Substantial beneficial interest--means an interest of 10 percent or 
more. In determining whether such an interest equals at least 10 
percent, all interests which are owned directly or indirectly through 
such means as ownership of shares in a corporation which owns the 
interest will be taken into consideration.

[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]



Sec. 400.303  Initial selection criteria.

    (a) Nonstandard classification procedures in this subpart initially 
apply when all of the following insurance experience criteria (including 
any applicable adjustment in Sec. 400.303(d)) for the crop have been 
met:
    (1) Three (3) or more indemnified losses during the NCS base period;
    (2) Cumulative indemnities in the NCS base period that exceed 
cumulative premiums during the same period by at least $500;
    (3) The result of dividing the number of indemnified losses during 
the NCS base period by the number of years premium is earned for that 
period equals .30 or greater; and
    (4) Either of the following apply:
    (i) The natural logarithm of the cumulative earned premium rate 
multiplied by the square root of the cumulative loss ratio equals 2.00 
or greater; or
    (ii) Five (5) or more indemnified losses have occurred during the 
NCS base period and the cumulative loss ratio equals or exceeds 1.50.
    (b) The minimum standards provided in paragraphs (a) (2), (3), and 
(4) of this section may be increased in a specific county if that 
county's overall insurance experience for the crop is substantially 
different from the insurance experience for which the criteria was 
determined. The increased standard will apply until the conditions 
requiring the increase no longer apply. Any change in the standards will 
be contained in the Special Provisions for the crop.
    (c) Selection criteria may be applied on the basis of insurance 
experience of a person, insured acreage, or the combination of both.
    (1) Insurance experience of a person will include:
    (i) Insurance experience of the person;
    (ii) Insurance experience of other insured entitites in which the 
person had substantial beneficial interest if the person was actively 
engaged in farming of the insured crop by virtue of the person's 
interest in those insured entities;
    (iii) Insurance experience of a spouse and minor children if the 
person is an individual and the spouse and minor children are considered 
the same as the individual under Sec. 400.306.
    (2) Insurance experience of insured acreage includes all insurance 
experience during the base period resulting from the production of the 
insured crop on the acreage.
    (3) Where insurance experience is based on a combination of person 
and insured acreage, the insurance experience will include the 
experience of the person as defined in paragraph (b) of this section (1) 
only on the specific insured acreage during the base period.
    (d) Insurance experience for the crop will be adjusted, by county 
and crop year, to discount the effect of indemnities caused by 
widespread adverse growing conditions. Adjustments are determined as 
follows:
    (1) Determine the average yield for the county using the annual 
county crop yields for the previous 20 crop years, unless such data is 
not available;
    (2) Determine the normal variability in the average yield for the 
county, expressed as the standard deviation;
    (3) Subtract the result of Sec. 400.303(d)(2) from 
Sec. 400.303(d)(1);
    (4) Divide the annual crop yield for the county for each crop year 
in the

[[Page 44]]

NCS base period by the result of Sec. 400.303(d)(3), the result of which 
may not exceed 1.0;
    (5) Subtract the result of Sec. 400.303(d)(4) for each crop year 
from 1.0;
    (6) Multiply the result of Sec. 400.303(d)(5) by the liability for 
the crop year; and
    (7) Subtract the result of Sec. 400.303(d)(6) from any indemnity for 
that crop year.
    (e) FCIC may substitute the crop yields of a comparable crop in 
determining Sec. 400.303(d) (1) and (2), or may adjust the average yield 
or the measurement of normal variability for the county crop, or any 
combination thereof, to account for trends or unusual variations in 
production of the county crop or if the availability of yield and loss 
data for the county crop is limited. Information about how these 
determinations are made is available by submitting a request to the FCIC 
Regional Service Office for the producer's area. Alternate methods of 
determining the effects of adverse growing conditions on insurance 
experience may be implemented by FCIC if allowed in the Special 
Provisions.

[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]



Sec. 400.304  Nonstandard Classification determinations.

    (a) Nonstandard Classification determinations can affect a change in 
assigned yields, premium rates, or both from those otherwise prescribed 
by the insurance actuarial tables.
    (b) Changes of assigned yields based on insurance experience of 
insured acreage (or of a person on specific insured acreage) will be 
based on the simple average of available actual yields from the insured 
acreage during the base period.
    (c) Changes of assigned yields based on insurance experience of a 
person without regard to any specific insured acreage will be determined 
by an assigned yield factor calculated by multiplying excess loss cost 
ratio by loss frequency and subtracting that product from 1.00 where:
    (1) Excess loss cost ratio is total indemnities divided by total 
liabilities for all years of insurance experience in the base period and 
the result of which is then reduced by the cumulative earned premium 
rate, expressed as a decimal, and
    (2) Loss frequency is the number of crop years in which an indemnity 
was paid divided by the number of crop years in which premiums were 
earned during the base period.
    (d) Changes of premium rates will be made to reflect premium rates 
that would have resulted in insurance experience during the base period 
with a loss ratio of 1.00 but:
    (1) A higher loss ratio than 1.00 may be used for premium rate 
determinations provided that the higher loss ratio is applied uniformly 
in a county; and
    (2) If a Nonstandard Classification change has been made to current 
assigned yields, insurance experience during the base period will be 
adjusted to reflect the affects of changed assigned yields before 
changes of premium rates are calculated based on that experience.
    (e) Once selection criteria have been met in any year, Nonstandard 
Classification adjustments will be made from year to year until no 
further changes are necessary in assigned yields or premium rates under 
the conditions set forth in Sec. 400.304(f). In determining whether 
further changes are necessary, the eligibility criteria will be 
recomputed each subsequent year using the premium rates and yields which 
would have been applicable had this part not been in effect.
    (f) Nonstandard Classification changes will not be made that:
    (1) Increase assigned yields or decrease premium rates from those 
otherwise assigned by the actuarial tables, or
    (2) Result in less than a 10 percent decrease in assigned yields or 
less than a 10 percent increase in premium rates from those otherwise 
assigned by the actuarial tables.



Sec. 400.305  Assignment of Nonstandard Classifications.

    (a) Assignment of a Nonstandard Classification of assigned yields, 
assigned yield factors, or premium rates shall be made on forms approved 
by the

[[Page 45]]

Corporation and included in the actuarial tables for the county.
    (b) Nonstandard classification assignment will be made each year, 
for the year identified on the assignment forms, and are not subject to 
change under the provisions of this subpart by the Corporation for that 
year when included in the actuarial tables for the county, except as a 
result of a request for reconsideration as provided in section 400.309, 
or as the result of appeals under 7 CFR part 11.
    (c) A nonstandard classification may be assigned to identified 
insurable acreage; a person; or to a combination of person and 
identified acreage for a crop or crop practice, type, variety, or crop 
option or amendment whereby:
    (1) Classifications assigned to identified insurable acreage apply 
to all acres of the insured crop grown on the identified acreage;
    (2) Classifications assigned to a person apply to all insurable 
acres of the insured crop on which the person and any entity in which 
the person has substantial beneficial interest is actively engaged in 
farming; and
    (3) Classifications assigned to a combination of a person and 
identified insurable acreage will only apply to those acres of the 
insured crop grown on the identified acreage on which the named person 
is actively engaged in producing such crop.

[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]



Sec. 400.306  Spouses and minor children.

    (a) The spouse and minor children of an individual are considered to 
be the same as the individual for purposes of this subpart except that:
    (1) The spouse who was actively engaged in farming in a separate 
farming operation prior to their marriage will be a separate person with 
respect to that separate farming operation so long as that operation 
remains separate and distinct from any farming operation conducted by 
the other spouse;
    (2) A minor child who is actively engaged in farming in a separate 
farming operation will be a separate person with respect to that 
separate farming operation if:
    (i) The parent or other entity in which the parent has a substantial 
beneficial interest does not have any interest in the minor's separate 
farming operation or in any production from such operation;
    (ii) The minor has established and maintains a separate household 
from the parent;
    (iii) The minor personally carries out the farming activities with 
respect to the minor's farming operation; and
    (iv) The minor establishes separate accounting and recordkeeping for 
the minor's farming operation.
    (b) An individual shall be considered to be a minor until the age of 
18 is reached. Court proceedings conferring majority on an individual 
under 18 years of age will not change such individual's status as a 
minor.



Sec. 400.307  Discontinuance of participation.

    If the person has discontinued participation in the crop insurance 
program, the person will still be included on the NCS list in the county 
until the person has discontinued participation as a policyholder or a 
person with a substantial beneficial interest in a policyholder for at 
least 10 consecutive crop years. The most recent nonstandard 
classification assigned will be continued from year to year until 
participation has been renewed for at least one crop year and at least 
three years of insurance experience have occurred in the current base 
period. A nonstandard classification will no longer be applicable to the 
person or the person on identified acreage if the Corporation determines 
the person is deceased.

[62 FR 22877, Apr. 28, 1997]



Sec. 400.308  Notice of Nonstandard Classification.

    (a) The Corporation will give written notice to all persons to whom 
a Nonstandard Classification will be assigned. The notice will give the 
Nonstandard Classification and the person's rights and responsibilities 
according to this subpart.
    (b) The person, upon receiving notice from the Corporation, will be 
responsible for giving notice of the Nonstandard Classification to any 
other person with an insurable interest affected by the classification. 
The person

[[Page 46]]

will give notice to any other affected person:
    (1) Prior to the sales closing date if the other affected person has 
an established insurable interest at the time the classified person is 
notified by the Corporation; or
    (2) Prior to the Classified person's establishing an insurable 
interest of another person that will be affected by the classification.



Sec. 400.309  Requests for reconsideration.

    (a) Any person to be assigned a nonstandard classification under 
this subpart will be notified of and allowed not less that 30 days from 
the date notice is received to request reconsideration before the 
nonstandard classification becomes effective. The request will be 
considered to have been made when received, in writing, by the 
Corporation.
    (b) Upon receipt of a timely request for reconsideration from the 
person to whom the classification will be assigned, the Corporation 
will:
    (1) Review all information supplied by, and respond to all questions 
raised by the individual, or
    (2) In the absence of information and questions, review insurance 
experience and determinations for compliance with this subpart and 
report review results to the individual requesting reconsideration.
    (c) Upon review of a request for reconsideration, the classification 
to be assigned will be corrected for:
    (1) Errors and omissions in insurance experience;
    (2) Incorrect calculations under procedures in this subpart, and
    (3) Typographical errors.
    (d) If the review finds no cause for change, the classification will 
be assigned and placed on file in the actuarial tables for the county.
    (e) Any person not satisfied by a determination of the Corporation 
upon reconsideration may further appeal under the provisions of 7 CFR 
part 11.

[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]



           Subpart P--Preemption of State Laws and Regulations

    Authority: 7 U.S.C. 1506, 1516.

    Source: 55 FR 23069, June 6, 1990, unless otherwise noted.



Sec. 400.351  Basis and applicability.

    The regulations contained in this subpart are issued pursuant to the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.) (the 
Act), to prescribe the procedures for Federal preemption of State laws 
and regulations not consistent with the purpose, intent, or authority of 
the Act. These regulations are applicable to all policies of insurance, 
insured or reinsured by the Corporation, contracts, agreements, or 
actions authorized by the Act and entered into or issued by FCIC.



Sec. 400.352  State and local laws and regulations preempted.

    (a) No State or local governmental body or non-governmental body 
shall have the authority to promulgate rules or regulations, pass laws, 
or issue policies or decisions that directly or indirectly affect or 
govern agreements, contracts, or actions authorized by this part unless 
such authority is specifically authorized by this part or by the 
Corporation.
    (b) The following is a non-inclusive list of examples of actions 
that State or local governmental entities or non-governmental entities 
are specifically prohibited from taking against the Corporation or any 
party that is acting pursuant to this part. Such entities may not:
    (1) Impose or enforce liens, garnishments, or other similar actions 
against proceeds obtained, or payments issued in accordance with the 
Federal Crop Insurance Act, these regulations, or contracts or 
agreements entered into pursuant to these regulations;
    (2) Tax premiums associated with policies issued hereunder;
    (3) Exercise approval authority over policies issued;
    (4) Levy fines, judgments, punitive damages, compensatory damages, 
or judgments for attorney fees or other costs against companies, 
employees of companies including agents and loss adjustors, or Federal 
employees arising out of actions or inactions on the part of such 
individuals and entities authorized or required under the Federal Crop 
Insurance Act, the regulations, any

[[Page 47]]

contract or agreement authorized by the Federal Crop Insurance Act or by 
regulations, or procedures issued by the Corporation (nothing herein is 
intended to preclude any action on the part of any authorized State 
regulatory body or any State court or any other authorized entity 
concerning any actions or inactions on the part of the agent, company or 
employee of any company whose action or inaction is not authorized or 
required under the Federal Crop Insurance Act, the regulations, any 
contract or agreement authorized by the Federal Crop Insurance Act or by 
regulations or procedures issued by the Corporation); or
    (5) Assess any tax, fee, or amount for the funding or maintenance of 
any State or local insolvency pool or other similar fund.
    The preceding list does not limit the scope or meaning of paragraph 
(a) of this section.



Subpart Q--General Administrative Regulations; Collection and Storage of 
   Social Security Account Numbers and Employer Identification Numbers

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

    Source: 57 FR 46297, Oct. 8, 1992, unless otherwise noted.



Sec. 400.401  Basis and purpose and applicability.

    (a) The regulations contained in this subpart are issued pursuant to 
the Act to prescribe procedures for the collection, use, and 
confidentiality of Social Security Numbers (SSN) and Employer 
Identification Numbers (EIN) and related records.
    (b) These regulations are applicable to:
    (1) All holders of crop insurance policies issued by FCIC under the 
Act and sold and serviced by local FSA offices.
    (2) All holders of crop insurance policies sold by insurance 
providers and all insurance providers, their contractors and 
subcontractors, including past and present officers and employees of 
such companies, their contractors and subcontractors.
    (3) Any agent, general agent, or company, or any past or present 
officer, employee, contractor or subcontractor of such agent, general 
agent, or company under contract to FCIC or an insurance provider for 
loss adjustment or any other purpose related to the crop insurance 
programs insured or reinsured by FCIC; and
    (4) All past and present officers, employees, elected officials, 
contractors, and subcontractors of FCIC and FSA.

[57 FR 46297, Oct. 8, 1992, as amended at 62 FR 28608, May 27, 1997]



Sec. 400.402  Definitions.

    Act--The Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et 
seq.).
    Applicant--A person who has submitted an application for crop 
insurance coverage under the Act.
    Authorized person--Any current or past officer, employee, elected 
official, general agent, contractor, or loss adjuster of FCIC, the 
insurance provider, or any other government agency whose duties require 
access to administer the Act.
    Disposition of records--The act of removing and disposing of records 
containing a participant's SSN or EIN by FCIC, or the insurance 
provider.
    FCIC--The Federal Crop Insurance Corporation of the United States 
Department of Agriculture or any successor agency.
    FSA--The Farm Service Agency of the United States Department of 
Agriculture, or a successor agency.
    Insurance provider--A private insurance company approved by FCIC, or 
a local FSA office providing crop insurance coverage to producers 
participating in any program administered under the Act.
    Past officers and employees--Any officer or employee of FCIC or the 
insurance provider who leaves the employ of FCIC or the insurance 
provider subsequent to the effective date of this rule.
    Person--An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and whenever applicable, a state, 
political subdivision, or an agency of a state.
    Policyholder--An applicant whose application for insurance under the 
crop insurance program has been accepted by FCIC or the insurance 
provider.

[[Page 48]]

    Retrieval of records--Retrieval of a person's records by that 
person's SSN or EIN, or name.
    Safeguards--Methods of security to be employed by FCIC or the 
insurance provider to protect a participant's SSN or EIN from unlawful 
disclosure and access.
    Storage--The secured storing of records kept by FCIC or the 
insurance provider on computer disks or drives, computer printouts, 
magnetic tape, index cards, microfiche, microfilm, etc.
    Substantial beneficial interest--Any person having an interest of at 
least 10 percent in the applicant or policyholder.
    System of records--Records established and maintained by FCIC or the 
insurance provider containing SSN or EIN data, name, address, city and 
State, applicable policy numbers, and other information related to 
multiple peril crop insurance policies as required by FCIC, from which 
information is retrieved by a personal identifier including, but not 
limited to the SSN, EIN, or name.

[62 FR 28608, May 27, 1997]



Sec. 400.403  Required system of records.

    Insurance providers are required to implement a system of records 
for obtaining, using, and storing documents containing SSN or EIN data 
before they accept or receive any applications for insurance. This data 
should include: name; address; city and state; SSN or EIN; and policy 
numbers which have been used by FCIC or the insurance provider.

[62 FR 28608, May 27, 1997]



Sec. 400.404  Policyholder responsibilities.

    (a) The policyholder or applicant for crop insurance must provide a 
correct SSN or EIN to FCIC or the insurance provider to be eligible for 
insurance. The SSN or EIN will be used by FCIC and the insurance 
provider in:
    (1) Determining the correct parties to the agreement or contract;
    (2) Collecting premiums or other amounts due FCIC or the insurance 
provider;
    (3) Determining the amount of indemnities;
    (4) Establishing actuarial data on an individual policyholder basis; 
and
    (5) Determining eligibility for crop insurance program participation 
or other United States Department of Agriculture benefits.
    (b) If the policyholder or applicant for crop insurance does not 
provide the correct SSN or EIN on the application and other forms where 
such SSN or EIN is required, FCIC or the reinsured company shall reject 
the application.
    (c) The policyholder or applicant is required to provide to FCIC or 
the insurance provider, the name and SSN or EIN of any individual or 
other entity:
    (1) holding or acquiring a substantial beneficial interest in such 
policyholder or applicant; or
    (2) having any interest in the policyholder or applicant and 
receiving separate benefits under another United States Department of 
Agriculture program as a direct result of such interest.
    (d) If a policyholder or applicant is using an EIN for a policy in 
an individual person's name, the SSN of the policyholder or applicant 
must also be provided.

[62 FR 28608, May 27, 1997]



Sec. 400.405  Agent and loss adjuster responsibilities.

    (a) The agent or loss adjuster shall provide his or her correct SSN 
to FCIC or the insurance provider, whichever is applicable, to be 
eligible to participate in the crop insurance program. The SSN will be 
used by FCIC and the insurance provider in establishing a database for 
the purposes of:
    (1) Identifying agents and loss adjusters on an individual basis;
    (2) Evaluating agents and loss adjusters to determine level of 
performance;
    (3) Determining eligibility for program participation; and
    (4) Collection of any amount which may be owed by the agent and loss 
adjuster to the United States.
    (b) If the loss adjuster contracting with FCIC to participate in the 
crop insurance program does not provide his or her correct SSN on forms 
or contracts where such SSN is required, the loss adjuster's contract 
will be cancelled effective on the date of refusal and the loss adjuster 
will be subject to

[[Page 49]]

suspension and debarment in accordance with the suspension and debarment 
regulations of the United States Department of Agriculture.
    (c) If the agent or loss adjuster contracting with an insurance 
provider, who is also a private insurance company, to participate in the 
crop insurance program does not provide his or her correct SSN on forms 
or contracts where such SSN is required, the premium subsidy payable for 
administrative and operating expenses under the Standard Reinsurance 
Agreement, or any other reinsurance agreement, will not be paid on those 
policies lacking the correct SSN.

[62 FR 28609, May 27, 1997]



Sec. 400.406  Insurance provider responsibilities.

    The insurance provider is required to collect and record the SSN or 
EIN on each application or on any other form required by FCIC.

[62 FR 28609, May 27, 1997]



Sec. 400.407  Restricted access.

    The Manager, other officer, or employee of FCIC or an authorized 
person may have access to the SSNs and EINs obtained pursuant to this 
subpart, only for the purpose of establishing and maintaining a system 
of records necessary for the effective administration of the Act.

[62 FR 28609, May 27, 1997]



Sec. 400.408  Safeguards and storage.

    Records must be maintained in secured storage with proper safeguards 
sufficient to enforce the restricted access provisions of this subpart.

[62 FR 28609, May 27, 1997]



Sec. 400.409  Unauthorized disclosure.

    Anyone having access to the records identifying a participant's SSN 
or EIN will abide by the provisions of section 205(c)(2)(C) of the 
Social Security Act (42 U.S.C. 405(c)(2)(C), and section 6109(f), 
Internal Revenue Code of 1986 (26 U.S.C. 6109(f) and the Privacy Act of 
1974 (5 U.S.C. 552a). All records are confidential, and are not to be 
disclosed to unauthorized personnel.

[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]



Sec. 400.410  Penalties.

    Unauthorized disclosure of SSN's or EIN's by any person may subject 
that person, and the person soliciting the unauthorized disclosure, to 
civil or criminal sanctions imposed under various Federal statutes, 
including 26 U.S.C. 7613, 5 U.S.C. 552a, and 42 U.S.C. 408.

[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]



Sec. 400.411  Obtaining personal records.

    Policyholders, agents, and loss adjusters in the crop insurance 
program will be able to review and correct their records as provided by 
the Privacy Act. Records may be requested by:
    (a) Mailing a signed written request to the headquarters office of 
FCIC; the FCIC Regional Service Office, or the insurance provider; or
    (b) Making a personal visit to the above mentioned establishments 
and showing valid identification.

[57 FR 46297, Oct. 8, 1992. Redesignated and amended at 62 FR 28608, 
28609, May 27, 1997]



Sec. 400.412  Record retention.

    (a) FCIC or the insurance provider will retain all records of 
policyholders for a period of not less than 3 years from the date of 
final action on a policy for the crop year, unless further maintenance 
of specific records is requested by FCIC. Final actions on insurance 
policies include conclusion of insurance events, such as the latest of 
termination of the policy, completion of loss adjustment, or 
satisfaction of claim.
    (b) The statute of limitations for FCIC contract claims may permit 
litigation to be instituted after the period of record retention. 
Destruction of records prior to the expiration of the statute of 
limitations will not provide a defense to any action by FCIC against any 
private insurance company.

[62 FR 28609, May 27, 1997]

[[Page 50]]



Sec. 400.413  OMB control numbers.

    The collecting of information requirements in this subpart has been 
approved by the Office of Management and Budget and assigned OMB control 
number 0563-0047.

[62 FR 28609, May 27, 1997]



                          Subpart R--Sanctions

    Authority: 7 U.S.C. 1506(l).

    Source: 58 FR 53110, Oct. 14, 1993, unless otherwise noted.



Sec. 400.451  General.

    (a) The Federal Crop Insurance Corporation (FCIC) has implemented a 
system of sanctions to prevent waste, fraud, and abuse within its 
programs and insurance delivery systems. Such sanctions include civil 
penalties and disqualification from the crop insurance program under the 
Federal Crop Insurance Act, 7 U.S.C. 1506(m); government wide debarment 
and suspension; and civil penalties and assessments under the Program 
Fraud Civil Remedies Act, 31 U.S.C. 3801--31 U.S.C. 3812.
    (b) The provisions of this subpart apply to all contracts and 
agreements to which FCIC is a party unless otherwise specifically 
provided for in this subpart, including those in which FCIC provides 
administrative expense reimbursement, premium subsidy, or reinsurance 
benefits.
    (c) The provisions of this subpart are in addition to any other 
sanctions specifically provided in applicable contracts and agreements.
    (d) This subpart is applicable to any act or omission by any 
affected party after October 14, 1993.



Sec. 400.452  Definitions.

    For purposes of this subpart, a person means an individual, 
partnership, association, corporation, estate, trust, or other business 
enterprise or legal entity, and wherever applicable, a state, a 
political subdivision of a state, or any agency thereof.



Sec. 400.453  Exhaustion of administrative remedies.

    All administrative remedies contained herein or incorporated herein 
by reference must be exhausted before Judicial Review in the United 
States Courts may be sought, unless review is specifically required by 
statute.



Sec. 400.454  Civil penalties.

    (a) Any person who willfully and intentionally provides any 
materially false or inaccurate information to FCIC or to any approved 
insurance provider reinsured by FCIC with respect to an insurance plan 
or policy issued under the authority of the Federal Crop Insurance Act, 
as amended, (7 U.S.C. 1501 et seq.) may be subject to a civil fine of up 
to an amount specified in Sec. 3.91(b)(7) of this title and 
disqualification from participation in:
    (1) The catastrophic risk protection plan of insurance and the 
noninsured crop disaster assistance program for a period not to exceed 
two (2) years; or
    (2) Any plan of insurance providing protection in excess of that 
provided under the catastrophic risk protection plan of insurance for a 
period not to exceed ten (10) years.
    (b) FCIC may make the payment of a civil penalty under this section 
a prior condition for the issuance, renewal, restoration, or continuing 
validity of any crop insurance policy or other approval.
    (c) FCIC may compromise, modify, settle, collect, or remit with or 
without conditions, any civil penalty which is subject to imposition or 
which has been imposed under this section whenever it considers it to be 
appropriate or advisable.
    (d) If a director, officer, or agent of a corporation provides false 
or inaccurate information, they may be separately subject to the fine 
specified in paragraph (a) of this section without regard to any 
penalties to which the corporation may be subject.
    (e) The liability of any person for any penalty under this subpart 
or any related charges arising in connection therewith shall be in 
addition to any other liability of such person under any civil or 
criminal fraud statute or any other statute or provision of law.
    (f) Proceedings under this Sec. 400.454 will be in accordance with 
subpart H of 7 CFR part 1, ``Rules of Practice Governing Formal 
Adjudicatory Proceedings Instituted by the Secretary

[[Page 51]]

under Various Statutes,'' by which the Manager, FCIC, shall initiate 
proceedings by filing a complaint with the Hearing Clerk, United States 
Department of Agriculture.

[58 FR 53110, Oct. 14, 1993, as amended at 60 FR 37323, July 20, 1995; 
62 FR 40928, July 31, 1997]



Sec. 400.455  Governmentwide debarment and suspension (procurement).

    (a) This section prescribes the terms and conditions under which 
persons or business entities may be debarred or suspended by FCIC from 
contracting with the Federal government.
    (b) This section is in accordance with 48 CFR part 9, subpart 9.4 
and 48 CFR part 409, subpart 409.4 and shall be applicable to all FCIC 
debarment and suspension proceedings undertaken pursuant to the Federal 
Acquisition Regulations, except that the authority to debar or suspend 
is reserved to the Manager, FCIC, or the Manager's designee.
    (c) Any individual or entity suspended or debarred under the 
provisions of 48 CFR part 9, subpart 9.4 will not be eligible to 
contract with FCIC or be employed by or contract with any insurance 
company that sells or adjusts FCIC's crop insurance contracts or which 
company's crop insurance contracts are reinsured by FCIC. FCIC may waive 
this provision if it is satisfied that the insurance company has taken 
sufficient action to insure that the suspended or debarred entity or 
individual will not be involved, in any way, with FCIC or FCIC reinsured 
crop insurance contracts.



Sec. 400.456  Governmentwide debarment and suspension (nonprocurement).

    (a) This section prescribes the terms and conditions under which 
individuals or entities may be debarred or suspended by FCIC from 
participation in Federal assistance and benefits under Federal programs 
and activities.
    (b) This section, in accordance with 7 CFR part 3017, shall be 
applicable to all FCIC debarment and suspension proceedings other than 
those undertaken pursuant to the Federal Acquisition Regulations.
    (c) Proceedings under this section are not applicable to 
determinations of eligibility under the provisions of the crop insurance 
contracts or determinations to be made under 7 CFR 400.454.
    (d) The Manager, FCIC, shall be the debarring and suspending 
official for all debarment or suspension proceedings undertaken by FCIC 
under the provisions of 7 CFR part 3017.



Sec. 400.457  Program Fraud Civil Remedies Act.

    (a) This section is in accordance with the Program Fraud Civil 
Remedies Act of 1986 (31 U.S.C. 3801-U.S.C. 3831) which provides for 
civil penalties and assessments against persons who make, submit, or 
present, or cause to be made, submitted, or presented, false, 
fictitious, or fraudulent claims or written statements to Federal 
authorities or to their agents.
    (b) Proceedings under this section will be in accordance with 
subpart L of 7 CFR part 1, ``Procedures Related to Administrative 
Hearings Under the Program Fraud Civil Remedies Act of 1986.''
    (c) The Director, Appeals and Litigation Staff, FCIC, or the 
Director's designee, is authorized to serve as Agency Fraud Claims 
Officer for the purpose of implementing the requirements of this 
section.



Sec. 400.458  Scheme or device.

    (a) In addition to the penalties specified in this part, if a person 
has knowingly adopted a material scheme or device to obtain catastrophic 
risk protection, other plans of insurance coverage, or noninsured 
assistance benefits to which the person is not entitled, has evaded the 
provisions of the Federal Crop Insurance Act, or has acted with the 
purpose of evading the provisions of the Federal Crop Insurance Act, the 
person shall be ineligible to receive any and all benefits applicable to 
any crop year for which the scheme or device was adopted.
    (b) A scheme or device may include, but is not limited to, creating 
or using another entity, or concealing or providing false information 
with respect to your interest in the policyholder, to evade:
    (1) Suspension, debarment, or disqualification from participation in 
the program;

[[Page 52]]

    (2) The assignment of the nonstandard classification system; or
    (3) Ineligibility for a delinquent debt owed to FCIC or the 
insurance company.

[60 FR 37324, July 20, 1995]



Sec. 400.459  Indebtedness.

    Any person who owes a debt to FCIC, or an approved insurance 
provider, arising from any program administered under the Act, and that 
debt is delinquent, will be ineligible to participate in all such 
programs until the debt is paid in full or the person enters into an 
agreement, acceptable to FCIC or the approved insurance provider, to 
repay the debt. If the person provides adequate evidence to demonstrate 
that the amount of debt is in dispute, the person's application will be 
accepted or their insurance will remain in effect, but no indemnity 
payment will be made, until the disputed issue is resolved between that 
person and FCIC or the approved insurance provider through the available 
appeal process.

[60 FR 51321, Oct. 2, 1995]



Secs. 400.460-400.499  [Reserved]



Sec. 400.500  OMB control numbers.

    Office of Management and Budget (OMB) control numbers are contained 
in subpart H of 7 CFR part 400.

Subpart S  [Reserved]



  Subpart T--Federal Crop Insurance Reform, Insurance Implementation; 
        Regulations for the 1999 and Subsequent Reinsurance Years

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    Source: 61 FR 42975, Aug. 20, 1996, unless otherwise noted.



Sec. 400.650  Purpose.

    The Reform Act requires FCIC to implement a crop insurance program 
that offers several levels of insurance coverage for producers. These 
levels of protection include catastrophic risk protection, limited 
coverage, and additional coverage insurance. This subpart provides 
notice of the availability of these crop insurance options and 
establishes provisions and requirements for implementation of the 
insurance provisions of the Reform Act.



Sec. 400.651  Definitions.

    Act. The Federal Crop Insurance Act, as amended (7 U.S.C. Secs. 1501 
et seq.).
    Additional coverage. Plans of crop insurance providing a level of 
coverage equal to or greater than sixty-five percent (65%) of the 
approved yield indemnified at one hundred percent (100%) of the expected 
market price, or comparable coverage as established by FCIC.
    Administrative fee. An amount the producer must pay for 
catastrophic, limited, and additional coverage each crop year on a per 
crop and county basis as specified in the Basic Provisions or the 
Catastrophic Risk Protection Endorsement.
    Approved insurance provider. A private insurance company, including 
its agents, that has been approved and reinsured by FCIC to provide 
insurance coverage to producers participating in the Federal crop 
insurance program.
    Approved yield. The amount of production per acre computed in 
accordance with FCIC's Actual Production History Program (7 CFR part 
400, subpart G) or for crops not included under 7 CFR part 400, subpart 
G, the yield used to determine the guarantee in accordance with the crop 
provisions or the Special Provisions.
    Catastrophic risk protection. The minimum level of coverage offered 
by FCIC which is required before a person may qualify for certain other 
USDA program benefits unless the producer executes a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop. For the 1995 through 1998 crop years, such coverage will offer 
protection equal to fifty percent (50%) of the approved yield 
indemnified at sixty percent (60%) of the expected market price, or a 
comparable coverage as established by FCIC. For the 1999 and subsequent 
crop years, such coverage will offer protection equal to fifty percent 
(50%) of the approved yield indemnified at fifty-five percent (55%) of 
the expected market price, or a comparable coverage as established by 
FCIC.

[[Page 53]]

    Catastrophic Risk Protection Endorsement. The part of the crop 
insurance policy that contains provisions of insurance that are specific 
to catastrophic risk protection.
    Crop of economic significance. A crop that has either contributed in 
the previous crop year, or is expected to contribute in the current crop 
year, ten percent (10%) or more of the total expected value of the 
producer's share of all crops grown in the county. However, a crop will 
not be considered a crop of economic significance if the expected 
liability under the Catastrophic Risk Protection Endorsement is equal to 
or less than the administrative fee required for the crop.
    Expected market price. (price election) The price per unit of 
production (or other basis as determined by FCIC) anticipated during the 
period the insured crop normally is marketed by producers. This price 
will be set by FCIC before the sales closing date for the crop. The 
expected market price may be less than the actual price paid by buyers 
if such price typically includes remuneration for significant amounts of 
post-production expenses such as conditioning, culling, sorting, 
packing, etc.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within USDA.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture or any successor agency.
    Insurable interest. The value of the producer's interest in the crop 
that is at risk from an insurable cause of loss during the insurance 
period. The maximum indemnity payable to the producer may not exceed the 
indemnity due on the producer's insurable interest at the time of loss.
    Intended crop. A crop stated on the application as submitted on or 
before the sales closing date for the crop which the producer intended 
to plant in the crop year for which application is made.
    Limited coverage. Plans of insurance offering coverage that is equal 
to or greater than fifty percent (50%) of the approved yield indemnified 
at one hundred percent (100%) of the expected market price, or a 
comparable coverage, but less than sixty-five percent (65%) of the 
approved yield indemnified at one hundred percent (100%) of the expected 
market price, or a comparable coverage.
    Linkage requirement. The legal requirement that a producer must 
obtain at least catastrophic risk protection coverage for any crop of 
economic significance as a condition of receiving benefits for such crop 
from certain other USDA programs in accordance with Sec. 400.655, unless 
the producer executes a waiver of any eligibility for emergency crop 
loss assistance in connection with the crop.
    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.
    Reform Act. The Federal Crop Insurance Reform Act of 1994, Public 
Law 103-354.
    Secretary. The Secretary of the United States Department of 
Agriculture.
    Substitute crop. An alternative crop whose sales closing date has 
passed and that is planted on acreage that is prevented from being 
planted to an intended crop or where an intended crop is planted and 
fails.
    Zero acreage report. An acreage report filed by the producer that 
certifies that the producer does not have a share in the crop for that 
crop year.

[61 FR 42975, Aug. 20, 1996, as amended at 63 FR 40634, July 30, 1998; 
64 FR 40742, July 28, 1999]



Sec. 400.652  Insurance availability.

    (a) If sufficient actuarial data are available, FCIC will offer 
catastrophic risk protection, limited, and additional coverage plans of 
insurance to indemnify persons for FCIC insured or reinsured crop loss 
due to loss of yield or prevented planting, if the crop loss or 
prevented planting is due to an insured cause of loss specified in the 
applicable crop insurance policy.
    (b) Catastrophic risk protection coverage may be offered through 
approved insurance providers and through local offices of the Farm 
Service Agency specified by the Secretary. Limited and additional 
coverage will only be offered through approved insurance providers

[[Page 54]]

unless there is not a sufficient number of approved insurance providers 
that offer such insurance within a service area.
    (c) A person must obtain at least catastrophic risk protection for 
the crop on all insurable acreage in the county in which the person has 
a share on or before the sales closing date designated by FCIC for the 
crop in the county in order to satisfy the linkage requirements unless 
the producer executes a waiver of any eligibility for emergency crop 
loss assistance in connection with the crop.
    (d) For limited and additional coverage, in areas where insurance is 
not available for a particular agricultural commodity that is insurable 
elsewhere, FCIC may enter into a written agreement with a person to 
insure the commodity, provided that the person has actuarially sound 
data relating to the production of the commodity that is acceptable to 
FCIC and that such written agreement is specifically allowed by the crop 
insurance regulations applicable to the crop.
    (e) Failure to comply with all provisions of the policy constitutes 
a breach of contract and may result in ineligibility for certain other 
farm program benefits for that crop year and any benefit already 
received must be refunded. If a producer breaches the insurance 
contract, the execution of a waiver of eligibility for emergency crop 
loss assistance will not be effective for the crop year in which the 
breech occurred.



Sec. 400.653  Determining crops of economic significance.

    To be eligible for certain other program benefits under Sec. 400.655 
the following conditions will apply with respect to crops of economic 
significance if the producer does not execute a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop.
    (a) If a producer planted a crop of economic significance in the 
preceding crop year, and does not intend to plant the same crop in the 
present crop year, the producer does not have to obtain insurance 
coverage or execute a waiver of any eligibility for emergency crop loss 
assistance in connection with the crop in the present crop year to 
comply with the linkage requirements. However, if the producer later 
decides to plant that crop, the producer will be unable to obtain 
insurance after the sales closing date and must execute a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop to be eligible for benefits as specified in Sec. 400.655. Failure 
to execute such a waiver will require the producer to refund any 
benefits already received under a program specified in Sec. 400.655.
    (b) The producer is initially responsible to determine the crops of 
economic significance in the county. The insurance provider may assist 
the producer in making these initial determinations. However, these 
determinations will not be binding on the insurance provider. To 
determine the percentage value of each crop:
    (1) Multiply the acres planted to the crop times the producer's 
share, times the approved yield, and times the price;
    (2) Add the values of all crops grown by the producer (in the 
county); and
    (3) Divide the value of the specific crop by the result of paragraph 
(b)(2).
    (c) The producer may use the type of price, such as the current 
local market price, futures price, established price, highest amount of 
insurance, etc., for the price when calculating the value of each crop, 
provided that the producer uses the same type of price for all crops in 
the county.
    (d) The producer may be required to justify the calculation and 
provide adequate records to enable the insurance provider to verify 
whether a crop is of economic significance.

[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999]



Sec. 400.654  Application and acreage report.

    (a) To participate in catastrophic risk protection, limited, or 
additional coverage plans of insurance, a producer must submit an 
application for insurance on or before the applicable sales closing 
date.
    (b) In order to remain eligible for certain farm programs, as 
specified in Sec. 400.655, a producer must obtain at least catastrophic 
risk protection on all crops of economic significance, if

[[Page 55]]

catastrophic risk protection is available in the county, unless the 
producer executes a waiver of any eligibility for emergency crop loss 
assistance in connection with the crop.
    (c) Notwithstanding the requirements of Sec. 400.654(a) that 
applications for insurance be submitted on or before the applicable 
sales closing date, FCIC may permit a producer to insure crops other 
than those specified on the application under the following conditions:
    (1) The producer must be unable to plant the intended crop or it is 
not practical to replant a failed crop before the final planting date. 
FCIC will take into consideration marketing windows when determining 
whether it was not practical to replant.
    (2) Conditions must exist to warrant allowing a producer to insure 
crops other than the intended crop.
    (3) The producer must submit an application for the substitute crop 
on or before the acreage reporting date for the substitute crop and pay 
any applicable administrative fee. A producer may not substitute a crop 
that the producer planted in the preceding crop year unless that crop 
was listed on a timely filed application for the current crop year.
    (4) If the producer plants a substitute crop that is a crop of 
economic significance, the producer must obtain CAT coverage, if 
available, to comply with the linkage requirements specified in 
Sec. 400.655. The producer may not substitute a crop under this 
provision if the producer has signed or intends to sign a waiver for 
emergency crop loss assistance for the crop year.
    (5) The substitute crop must be planted on or before the final 
planting date or within the late planting period, if applicable, for the 
substitute crop.
    (6) Under no circumstances may a producer submit an application for 
limited or additional coverage after the sales closing date for the 
substitute crop.
    (d) For all coverages, including catastrophic risk protection, 
limited, and additional coverages, the producer must file a signed 
acreage report on or before the acreage reporting date. 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 other legally sufficient document 
authorizing such person to sign.
    (e) Under catastrophic risk protection, unless the other person with 
an insurable interest in the crop objects in writing prior to the 
acreage reporting date and provides a signed acreage report on their own 
behalf an operator may sign the acreage report for all other persons 
with an insurable interest in the crop without a power of attorney. All 
persons with an insurable interest in the crop, and for whom the 
operator purports to sign and represent, are bound by the information 
contained in that acreage report.

[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999]



Sec. 400.655  Eligibility for other program benefits.

    The producer must obtain at least catastrophic coverage for each 
crop of economic significance in the county in which the producer has an 
insurable share, if insurance is available in the county for the crop, 
unless the producer executes a waiver of any eligibility for emergency 
crop loss assistance in connection with the crop, to be eligible for:
    (a) Benefits under the Agricultural Market Transition Act;
    (b) Loans or any other USDA provided farm credit, including: 
guaranteed and direct farm ownership loans, operating loans, and 
emergency loans under the Consolidated Farm and Rural Development Act 
provided after October 13, 1994; and
    (c) Benefits under the Conservation Reserve Program derived from any 
new or amended application or contract executed after October 13, 1994.

[61 FR 42975, Aug. 20, 1996. Redesignated at 63 FR 40634, July 30, 1998]



Sec. 400.656  Coverage for acreage that is prevented from being planted.

    For the 1995 and succeeding crop years, the insurance period for 
prevented planting for those crop insurance policies containing 
prevented planting coverage shall be extended so that prevented planting 
coverage begins:

[[Page 56]]

    (a) On the sales closing date for the insured crop in the county for 
the crop year the application for insurance is accepted; or
    (b) For any crop year following the crop year the application for 
insurance is accepted, or for any crop year the insurance policy is 
transferred to a different insurance provider, on the sales closing date 
for the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
the producer makes application and purchases a corn crop insurance 
policy for the 1995 crop year (which is not terminated or canceled 
during or after the 1995 crop year), prevented planting coverage for the 
1996 crop year began on the 1995 sales closing date. Cancellation for 
the purpose of transferring the policy to a different insurance provider 
when there is no lapse in coverage will not be considered terminated or 
canceled coverage for the purpose of the preceding sentence.

[61 FR 42975, Aug. 20, 1996. Redesignated at 63 FR 40634, July 30, 1998]



Sec. 400.657  Transitional yields for forage or feed crops, 1995-1997 crop years.

    (a) For the 1995 through the 1997 crop years, producers who produce 
feed or forage will be eligible for an adjustment in the assigned yield 
described in 7 CFR 400.55(b)(1) if:
    (1) The feed or forage is primarily for use by the producer as 
livestock, dairy, or poultry operations; and
    (2) At least fifty percent (50%) of the producer's net farm income 
is derived from the livestock, dairy, or poultry operations.
    (b) Producers that qualify under paragraph (a) of this section will 
receive an assigned yield, if required, under 7 CFR 400.55(b)(1) equal 
to eighty percent (80%) of the T- or D-Yield.

[61 FR 42975, Aug. 20, 1996. Redesignated at 63 FR 40634, July 30, 1998]



 Subpart U--Ineligibility for Programs Under the Federal Crop Insurance 
                                   Act

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

    Source: 62 FR 42042, Aug. 5, 1997, unless otherwise noted.



Sec. 400.675  Purpose.

    This rule prescribes conditions under which a person may be 
determined to be ineligible to participate in any program administered 
by FCIC under the Federal Crop Insurance Act, as amended. This rule also 
establishes the criteria for reinstatement of eligibility.



Sec. 400.676  OMB control numbers.

    The collecting of information requirements in this subpart has been 
approved by the Office of Management and Budget and assigned OMB control 
number 0563-0047.



Sec. 400.677  Definitions.

    Act. The Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et 
seq.).
    Actively engaged in farming. Means a person who, in return for a 
share of profits and losses, makes a contribution to the production of 
an insurable crop in the form of capital, equipment, land, personal 
labor, or personal management.
    Applicant. A person who has submitted an application for crop 
insurance coverage under the Act.
    Authorized person. Any current or past officer, employee, elected 
official, general agent, agent, contractor, or loss adjuster of FCIC, 
the insurance provider, or any other government agency whose duties 
require access to the Ineligible Tracking System to administer the Act.
    CAT. The catastrophic risk protection plan of insurance.
    Controlled substance. Any prohibited drug-producing plants 
including, but not limited to, cacti of the genus (lophophora), coca 
bushes (erythroxylum coca), marijuana (cannabis sativa), opium poppies 
(papaver somniferum), and other drug-producing plants, the planting and 
harvesting of which is prohibited by Federal or state law.
    Debt. An amount of money which has been determined by an appropriate 
agency official to be owed, by any person, to FCIC or an insurance 
provider under any program administered under the Act based on evidence 
submitted by the insurance provider. The debt may

[[Page 57]]

have arisen from an overpayment, premium or administrative fee 
nonpayment, interest, penalties, or other causes.
    Debtor. A person who owes a debt and that debt is delinquent.
    Delinquent debt. Any debt owed to FCIC or the insurance provider, 
that arises under any program administered under the authority of the 
Act, that has not been paid by the termination date specified in the 
applicable contract of insurance, or other due date for payment 
contained in any other agreement or notification of indebtedness, or any 
overdue debt owed to FCIC or the insurance provider which is the subject 
of a scheduled installment payment agreement which the debtor has failed 
to satisfy under the terms of such agreement. Such debt may include any 
accrued interest, penalty, and administrative charges for which demand 
for repayment has been made, or unpaid premium including any accrued 
interest, penalty and administrative charges (7 CFR 400.116). A 
delinquent debt does not include debts discharged in bankruptcy and 
other debts which are legally barred from collection.
    EIN. An Employer Identification Number as required under section 
6109 of the Internal Revenue Code of 1986.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
government corporation within the United States Department of 
Agriculture.
    FSA. The Farm Service Agency or a successor agency.
    Ineligible person. A person who is denied participation in any 
program administered by FCIC under the Act.
    Insurance provider. A reinsured company or FSA providing crop 
insurance coverage to producers participating in any Federal crop 
insurance program administered under the Act.
    Minor. Any person under 18 years of age. Court proceedings 
conferring majority on an individual under 18 years of age will result 
in such persons no longer being considered as a minor.
    Person. An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a State, 
political subdivision, or an agency of a State.
    Policyholder. An applicant whose properly completed application for 
insurance under the crop insurance program has been accepted by FCIC or 
an insurance provider.
    Reinsurance agreement. An agreement between two parties by which an 
insurer cedes to a reinsurer certain liabilities arising from the 
insurer's sale of insurance policies.
    Reinsured company. A private insurance company having a Standard 
Reinsurance Agreement, or other reinsurance agreement, with FCIC, whose 
crop insurance policies are approved and reinsured by FCIC.
    Scheduled installment payment agreement. An agreement between a 
person and FCIC or the insurance provider to satisfy financial 
obligations of the person under conditions which modify the terms of the 
original debt.
    Settlement. An agreement between a person and FCIC or the insurance 
provider to resolve a dispute arising from a debt or other 
administrative determination.
    SSN. An individual's Social Security Number as required under 
section 6109 of the Internal Revenue Code of 1986.
    Standard Reinsurance Agreement (SRA). The primary reinsurance 
agreement between the reinsured company and FCIC.
    Substantial beneficial interest. An interest held by any person of 
at least 10 percent or more in the applicant or policyholder.
    System of records. Records established and maintained by FCIC and 
FSA containing SSN or EIN data, name, address, city and State, 
applicable policy numbers, and other information related to Federal crop 
programs as required by FCIC, from which information is retrieved by a 
personal identifier including the SSN, EIN, name, or other unique 
identifier of a person.

[62 FR 42042, Aug. 5, 1997, as amended at 63 FR 40631, July 30, 1998]



Sec. 400.678  Applicability.

    This subpart applies to any program administered by FCIC under the 
Act, including:
    (a) The catastrophic risk protection plan of insurance;
    (b) The limited and additional coverage plans of insurance as 
authorized

[[Page 58]]

under sections 508(c) and 508(m) of the Act; and
    (c) Private insurance products authorized under section 508(h) of 
the Act and reinsured by FCIC.



Sec. 400.679  Criteria for ineligibility.

    Any person may be determined to be ineligible to participate in any 
program administered by FCIC under the authority of the Act, if the 
person meets one or more of the following criteria:
    (a) Has a delinquent debt on a crop insurance policy, issued or 
reinsured by FCIC, or any delinquent debt due FCIC under the Act. Any 
person with a delinquent debt owed to FCIC or to the insurance provider 
shall be ineligible to participate in any program administered under the 
authority of the Act. Such determinations will be in accordance with 7 
CFR 400.459. The existence and delinquency of the debt must be 
verifiable.
    (b) Has violated the controlled substance (7 CFR part 718) 
provisions of the Food Security Act of 1985, as amended. Any person who 
violates the controlled substance provisions of the Food Security Act of 
1985, as amended, shall be ineligible to participate in any program 
administered under the Act.
    (c) Has been disqualified under section 506(n) of the Act and 7 CFR 
part 400, subpart R. Any person who is disqualified in any 
administrative proceeding shall be ineligible to participate in any 
program administered under the Act. Ineligibility determinations 
resulting from administrative proceedings will not be stayed pending 
review. However, reversal of the determination will date back to the 
time of determination.



Sec. 400.680  Determination and notification of ineligibility.

    (a) The insurance provider must send a written notice of the debt to 
the person, including the time frame in which the debt must be paid, and 
provide the person with a meaningful opportunity to contest the amount 
or existence of the debt. After the insurance provider has evaluated the 
person's response, if any, and determined that the debt is owed and 
delinquent, the insurance provider should submit the documentation 
establishing the existence and amount of the debt to FCIC, including any 
response by the person.
    (b) If an insurance provider or any other authorized person has 
evidence that a person meets any other criteria set forth in 
Sec. 400.679, they must submit the evidence to FCIC.
    (c) After FCIC verifies that the person has met one or more of the 
criteria stated in Sec. 400.679, FCIC will issue a Notice of 
Ineligibility and mail such notice to the person's last known address 
and to the insurance provider.
    (d) The Notice of Ineligibility will state the criteria upon which 
the determination of ineligibility has been based, a brief statement of 
the facts to support the determination, the time period of 
ineligibility, and the persons right to an appeal of the ineligibility 
determination.
    (e) Within 30 days of receiving the Notice of Ineligibility, any 
person receiving such a notice may appeal the determination of 
ineligibility to the National Appeals Division in accordance with 7 CFR 
part 11.
    (f) If the person appeals the determination of ineligibility to the 
National Appeals Division, the insurance provider will be notified and 
provided with an opportunity to participate in the proceeding if 
permitted by 7 CFR part 11.



Sec. 400.681  Effect of ineligibility.

    (a) The period of ineligibility will be effective:
    (1) For ineligibility as a result of a delinquent debt, the date the 
debt has been determined to be delinquent until the debt has been paid 
in full, discharged in bankruptcy, or the person has executed a 
scheduled installment payment agreement;
    (2) For ineligibility as a result of a violation of the controlled 
substance provisions of the Food Security Act of 1985, at the beginning 
of the crop year in which the producer was convicted and the four 
subsequent consecutive crop years; and
    (3) For ineligibility as a result of a disqualification under 
section 506(n) of the Act, the date that the Administrative Law Judge 
signs the order disqualifying the person until the period

[[Page 59]]

specified in the order of disqualification has expired.
    (b) Once the person has been determined to be ineligible:
    (1) All policies in which the ineligible person is the sole insured 
will be void for the period specified in Sec. 400.681(a);
    (2) If the ineligible person is a general partnership, all partners 
will be individually ineligible and any policy in which a partner has a 
100 percent interest will be void for the period specified in 
Sec. 400.681(a). The partnership and all partners will be removed from 
any policy in which they have a substantial beneficial interest, and the 
policyholder share under the policies will be reduced commensurate with 
the ineligible person's share;
    (3) If the applicant or policyholder is a corporation, partnership, 
or other business entity, and an ineligible person has a substantial 
beneficial interest in the applicant or policyholder, the application 
may be accepted or existing policies remain in effect, although the 
ineligible person will be removed from the policies and the policyholder 
share under the policies will be reduced commensurate with the 
ineligible person's share;
    (4) If the applicant or policyholder is a corporation, partnership, 
or other business entity that was created to conceal the interest of a 
person in the farming operation or to evade the ineligibility 
determination of a person with a substantial beneficial interest in the 
applicant or policyholder, the corporation, partnership or other 
business entity will be disregarded, the individual shareholders or 
partners will be personally responsible, and any shareholder or partner 
that is ineligible will be removed from the policy and the policyholder 
share under the policies will be reduced commensurate with the 
ineligible person's share;
    (5) Any indemnities or payments made on a voided policy, or on the 
portion of the policy reduced because of ineligibility, will be declared 
overpayments and must be repaid; and
    (6) If the policy is voided, all producer paid premiums may be 
refunded, or if an ineligible person is removed from a policy, the 
portion of the producer paid premium commensurate with the ineligible 
person's share may be refunded, less a reasonable amount for expense and 
handling in accordance with 7 CFR 400.47.
    (c) The spouse and minor children of an individual are considered to 
be the same as the individual for purposes of this subpart except that:
    (1) The spouse who was actively engaged in farming in a separate 
farming operation will be a separate person with respect to that 
separate farming operation so long as that operation remains separate 
and distinct from any farming operation conducted by the other spouse 
(Transfers of interest in a farming operation from one spouse to another 
will not be considered as a separate farming operation.);
    (2) A minor child who is actively engaged in farming in a separate 
farming operation will be a separate person with respect to that 
separate farming operation if:
    (i) The parent or other entity in which the parent has a substantial 
beneficial interest does not have any interest in the minor's separate 
farming operation or in any production from such operation;
    (ii) The minor has established and maintains a separate household 
from the parent;
    (iii) The minor personally carries out the farming activities with 
respect to the minor's farming operation; and
    (iv) The minor establishes separate accounting and record keeping 
for the minor's farming operation.



Sec. 400.682  Criteria for reinstatement of eligibility.

    A person who has been determined ineligible may have eligibility 
reinstated as follows:
    (a) A delinquent debt owed on a crop insurance policy insured or 
reinsured by FCIC or any delinquent debt due FCIC. Eligibility may be 
reinstated after the debt is paid in full or discharged in bankruptcy, 
or the person has executed a scheduled installment payment agreement 
accepted by FCIC or the insurance provider. Eligibility may be 
reinstated as of the date the debt is paid, the date the agreement is 
accepted, or the date the debt is discharged in bankruptcy.
    (b) Violations of the controlled substance provisions of the Food 
Security

[[Page 60]]

Act of 1985, as amended. Eligibility may be reinstated after the period 
of ineligibility stated in Sec. 400.681 has expired.
    (c) Disqualification under section 506(n) of the Act. Eligibility 
may be reinstated when the period of disqualification determined in the 
administrative proceedings has expired and payment of all penalties and 
overpayments have been completed.
    (d) Timing of reinstatement of eligibility. After eligibility has 
been reinstated, the person must complete a new application for crop 
insurance coverage on or before the applicable sales closing date. If 
the date of reinstatement of eligibility occurs after the applicable 
sales closing date for the crop year, the person may not participate 
until the following crop year. If the National Appeals Division 
determines that the person should not have been placed on the Ineligible 
Tracking System, reinstatement will be effective at the beginning of the 
crop year for which the producer was listed on the Ineligible Tracking 
System and the person will be entitled to all applicable benefits under 
the policy.



Sec. 400.683  Administration and maintenance.

    (a) Ineligible producer data will be maintained in a system of 
records in accordance with the Privacy Act, 5 U.S.C. 552a.
    (1) The Ineligible Tracking System is a record of all persons who 
have been determined to be ineligible for participation in any program 
pursuant to this subpart. This system contains identifying information 
of the ineligible person including, but not limited to, name, address, 
telephone number, SSN or EIN, reason for ineligibility, and time period 
for ineligibility.
    (2) Information in the Ineligible Tracking System may be used by 
Federal agencies, FCIC employees, contractors, and reinsured companies 
and their personnel who require such information in the performance of 
their duties in connection with any program administered under the Act. 
The information may be furnished to other users including, but not 
limited to, FCIC contracted agencies; credit reporting agencies and 
collection agencies; in response to judicial orders in the course of 
litigation; and other users as may be appropriate or required by law or 
regulation. The individual information will be made available in the 
form of various reports and notices produced from the Ineligible 
Tracking System, based on valid requests.
    (3) Supporting documentation regarding the determination of 
ineligibility and reinstatement of eligibility will be maintained by 
FCIC and FSA, or its contractors, reinsured companies, and Federal and 
State agencies. This documentation will be maintained consistent with 
the electronic information contained within the Ineligible Tracking 
System.
    (b) Information may be entered into the Ineligible Tracking System 
by FCIC or FSA personnel.
    (c) All persons applying for or renewing crop insurance contracts 
issued or reinsured by FCIC will be subject to validation of their 
eligibility status against the Ineligible Tracking System. Applications 
or benefits approved and accepted are considered approved or accepted 
subject to review of eligibility status in accordance with this subpart.



 Subpart V--Submission of Policies, Provisions of Policies and Rates of 
                                 Premium

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

    Source: 64 FR 38542, July 19, 1999, unless otherwise noted.



Sec. 400.700  Basis, purpose, and applicability.

    (a) The Act requires FCIC to issue regulations that establish 
guidelines for the submission of policies or other material to the FCIC 
Board under section 508(h) of the Act. These guidelines prescribe the 
timing, submission and approval process so that the Board may timely 
consider any submission for approval and, if approved, make it available 
for sale to producers by any approved insurance provider in the first 
crop year that the submission is authorized for reinsurance, subsidy, or 
other financial support that may be available under the Act. These 
guidelines also authorize FCIC and the

[[Page 61]]

Board to monitor the submission to ensure continued compliance with the 
requirements of the Act, this subpart, and changes required by the 
Board.
    (b) These regulations apply to all applicants.
    (c) An applicant may submit for consideration by the Board:
    (1) Crop insurance policies that are not currently reinsured or 
subsidized by FCIC;
    (2) Provisions of policies that may amend existing crop insurance 
policies that are approved by FCIC; or
    (3) Rates of premiums for MPCI policies pertaining to wheat, 
soybeans, field corn, or any other crop authorized by the Secretary of 
Agriculture.
    (d) A policy or other material submitted to the Board under section 
508(h) of the Act may be prepared without regard to the limitations 
contained in the Act. Only the provisions in the Act directly relating 
to the terms of the insurance policy, such as coverage, premium rates, 
or price elections, are considered as the limitations referenced in 
section 508(h) of the Act.
    (e) Any FCIC payment of a portion of the premium may not exceed the 
amount authorized under section 508(e) of the Act, and payment of 
administrative and operating expense subsidy may not exceed the amount 
authorized under section 508(d).



Sec. 400.701  Definitions.

    Act. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
    A&O subsidy. The subsidy for the administrative and operating 
expenses authorized by the Act and paid by FCIC on behalf of the 
producer to the insurance provider.
    Applicant. Any person who submits a policy, provisions of a policy, 
or premium rates to the Board for approval under section 508(h) of the 
Act.
    Board. The Board of Directors of FCIC.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
government corporation within the United States Department of 
Agriculture.
    Insurance provider. A private insurance company that has been 
approved by FCIC to provide crop insurance coverage under the Act.
    Manager. The Manager of FCIC.
    MPCI. The FCIC multiple peril crop insurance policies authorized 
under the Act and codified in 7 CFR chapter IV.
    NASS. National Agricultural Statistics Service, an agency of the 
United States Department of Agriculture, or a successor agency.
    Person. Any individual or legal entity possessing the capacity to 
contract.
    Policy. A crop insurance contract between a person and an insurance 
provider, consisting of the accepted application, the applicable policy 
provisions and endorsements, if applicable, and the applicable actuarial 
material for the insured crop.
    Rate of premium. The dollar amount per insured unit or percentage 
rate per dollar of liability that is needed to pay expected losses and 
provide for a reasonable reserve.
    Replacement program. A crop insurance program that provides coverage 
at least equal to that provided under the MPCI program with similar 
terms, conditions, and covered causes of loss approved by the Board 
under the authority of section 508(h) of the Act.
    Revenue insurance. Plans of insurance providing protection against 
loss of income, which are designated as such by FCIC.
    Risk subsidy. That portion of the FCIC approved insurance premium 
for the risk of loss paid by FCIC on behalf of the policyholders to the 
insurance provider.
    Secretary. The Secretary of the United States Department of 
Agriculture.
    Stochastic. A randomly determined sequence of observations, each of 
which is considered as a sample of one element for a probability 
distribution.
    Submission. Any policy provisions, rates of premium, and related 
material submitted to FCIC that differs from the present MPCI program or 
replacement programs or that request a material change in an existing 
insurance program.
    Supplemental program. A submission requesting reinsurance only that 
provides coverage in addition to, and is written concurrently with, an 
MPCI policy or a replacement program.

[[Page 62]]



Sec. 400.702  Confidentiality of submission.

    (a) A submission made to the Board under section 508(h) of the Act 
will be considered as confidential, commercial, or financial information 
for purposes of 5 U.S.C. 552(b)(4) until approved by the Board. An 
applicant may waive such confidentiality by advising FCIC in writing, or 
by releasing such information to a person or entity other than FCIC.
    (b) Once a submission is approved, all information provided by the 
applicant to the Board, including statistical modeling and data, will be 
made public.
    (c) Any submission disapproved by the Board will remain 
confidential, commercial, or financial information in accordance with 5 
U.S.C. 552(b)(4).



Sec. 400.703  Timing of submission.

    Any submission for Board review must be received not later than 240 
days prior to the first sales closing date for which sales are requested 
for a crop to provide adequate time for review, approval, and marketing 
of the program. If the submission applies to more than one crop, the 
earliest applicable crop sales closing date controls. However, any 
submission received by FCIC less than 240 days prior to the first sales 
closing date may be considered if all parties agree the submission can 
be reviewed, approved, and information disseminated to insurance 
providers in a timely manner without creating excessive risk and 
exposure to the crop insurance program or disruptions in the market 
place. Such a submission must meet all statutory requirements, 
specifically that the approved submission can be made available to all 
persons reinsured by FCIC in a manner permitting the persons to 
participate in the sales of the product in the first crop year for which 
it is approved by the Board for reinsurance, premium subsidy, or other 
support offered by the Act. Otherwise, the submission will be considered 
for the subsequent crop year. Since submissions vary in complexity and 
availability of required data, FCIC makes no assurances that approval 
will be given in time for sales in any crop year. In the event FCIC 
receives more submissions than it can process for an upcoming crop year, 
the date received, complexity, and completeness of the submission will 
determine when FCIC's review of the submission will be initiated and the 
crop year for which the submission is approved.



Sec. 400.704  Type of submission.

    An applicant may submit to the Board:
    (a) Policies and related material identified as one of the following 
types:
    (1) A supplemental program;
    (2) A replacement program; or
    (3) Any other submission authorized under section 508(h) of the Act 
but not classified by paragraphs (a) and (b) of this section.
    (b) One or more proposed revisions of any MPCI policy, revenue 
insurance policy, or any other policy approved by the Board; and
    (c) Premium or rates of premiums for MPCI policies.



Sec. 400.705  Contents of submission.

    (a) Each submission may contain any information that the applicant 
wishes to provide but, at a minimum, must include the following 
material:
    (1) Applicant's name;
    (2) Type of submission;
    (3) Proposed crops, types, varieties, or practices, as applicable, 
to be covered by the submission;
    (4) Geographical areas in which the submission will be applicable;
    (5) Potential crop acreage, production, and liability that could be 
written (estimated by crop and state);
    (6) Percentage of the crop acreage, production, and liability that 
is expected to be written (estimated by crop and state);
    (7) Crop year in which the submission is proposed to be effective;
    (8) Proposed duration of the approval, if applicable;
    (9) A statement of the applicant's intent to expand the program in 
future crop years to different geographical areas or crops, types, 
varieties, or practices, as applicable;
    (10) A statement of whether the applicant is requesting reinsurance, 
risk subsidy, or A&O subsidy for the submission, and if so, the proposed 
methods of calculating the risk subsidy or

[[Page 63]]

A&O subsidy (The allowable subsidies cannot exceed the amount authorized 
by law);
    (11) A determination whether:
    (i) The submission will be filed with the applicable Commissioner of 
Insurance for each state proposed for sales, and if not, the reasons 
such submission will not be forwarded for review by the Commissioner; 
and
    (ii) The submission complies in all material respects with the 
standards established by FCIC for processing and acceptance of data as 
specified in its Manual 13 ``Data Acceptance System Handbook,'' unless 
FCIC has agreed otherwise as part of the development process (This 
handbook is available from the Actuarial Division, P.O. Box 419293, 
Kansas City, MO 64141);
    (12) Identification of:
    (i) Parties responsible for addressing the policy and procedural 
issues and questions that may arise in administering the approved 
program; and
    (ii) Parties responsible for the product liability and the basis for 
such responsibility including liability for flaws in product design if 
such results in litigation against the applicant or FCIC;
    (13) Procedures for annual reviews to ensure compliance with all 
requirements of the Act, this subpart, and any agreements executed 
between the applicant and FCIC:
    (i) The title of the person responsible for completing each task;
    (ii) The date by which each task will be completed; and
    (iii) The date by which the information or documents will be made 
available to FCIC, the policyholder, other insurance providers, or the 
Commissioner of Insurance, if applicable (Policy information, forms and 
other related documents must be made available to the producer at least 
30 days prior to the earliest crop sales closing date for the crops to 
which the submission applies.);
    (14) A description of the benefits of the submission:
    (i) To producers that demonstrate how the submission offers 
coverages or costs that differ significantly from existing programs and 
that such coverage is generally not available from the private sector 
(Such descriptions should be supported by market research results from 
producers, producer groups, agents, lending institutions, and other 
interested parties, which should also include a summary of those persons 
or organizations contacted and the number of persons or organizations 
responding) that provides verifiable evidence of the demand for the 
submitted product; and
    (ii) To taxpayers that demonstrate how the submission meets the 
public policy goals and objectives as stated in the Act, the statements 
of the Secretary, or similar officials and laws (This must include the 
rationale and data supporting the request for FCIC's financial 
commitment to the submission);
    (15) Any accumulated insurance experience from all years and in all 
states in which the submission has been offered for sale and a 
comparison of the submission's performance with other crop insurance 
programs; and
    (16) An explanation of those provisions not authorized under the Act 
and the premium apportioned to those provisions.
    (b) With respect to any submission that impacts the amount of 
premium charged to the producer, the applicant must provide with the 
submission:
    (1) A detailed description of the rating methodology, including all 
mathematical formulae and equations used in determining all unsubsidized 
and subsidized premiums or rates of premium;
    (2) A list of the assumptions used in the formulation of the 
premiums or rates of premium;
    (3) Simulations of the performance of the proposed premiums or rates 
of premium based on one or more of the following:
    (i) By determining the total premiums and anticipated losses that 
would be paid under the submission and comparing these totals to a 
comparable insurance plan offered under the authority of the Act (Such 
simulations must use all experience available to the applicant and must 
include at least one year in which indemnities for the submission and 
the comparable crop exceed total premiums);
    (ii) By means of a stochastic simulation of the submission that is 
based on the same assumptions as those used to

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develop the premiums or rates of premium, including sensitivity tests 
with regard to each assumption that demonstrates the probable impact of 
an erroneous assumption; or
    (iii) By means of any simulation that can be proven to provide 
results comparable to those described in paragraphs (b)(3)(i) and (ii) 
of this section;
    (4) Worksheets that provide the calculations in sequential order and 
in sufficient detail to allow verification that the premiums charged for 
the coverage are consistent with policy provisions (Any unique premium 
component must be explained in sufficient detail to determine whether 
the existence or amount of the premium or premium rate is appropriate); 
and
    (5) A certification that includes, but is not limited to, an 
evaluation of all supporting documentation and analysis from an 
accredited associate or fellow of the Casualty Actuarial Society or a 
similar uninterested third party who did not participate in the primary 
development, or peer review panel or both. The evaluation must 
demonstrate that the submission is consistent with sound insurance 
principles, practices, and requirements of the Act.
    (c) With respect to those submissions that involve new crop 
insurance programs or revision of an existing crop insurance program:
    (1) The applicant must provide with the submission:
    (i) An application and related policy forms together with the 
instructions for completing and processing such forms;
    (ii) The insurance policy provisions;
    (iii) A sample of the actuarial documents;
    (iv) The underwriting rules, including but not limited to:
    (A) The procedures for accepting the application;
    (B) The rules for determining program eligibility, including but not 
limited to, minimum acreage, premium requirements, sales closing dates, 
production reporting requirements, and inception or termination dates of 
the policy;
    (C) The application of administrative fees as required by the Act;
    (D) A description of available options that are different from any 
existing crop insurance program;
    (E) Any information needed to establish coverage and determine 
claims, including prices that must be made available during the 
insurance period (This information must specify how and when such 
determination is made and that the process is in compliance with policy 
provisions);
    (F) Any other applicable underwriting requirements that may be 
required by FCIC; and
    (G) The agent training plans;
    (2) The applicant may be required to submit statements from at least 
three commercial reinsurers or reinsurance brokers regarding the 
availability of commercial reinsurance, the amount of commercial 
reinsurance available, and the proposed terms of reinsurance;
    (3) Loss adjustment procedures and calculations that include, but 
are not limited to:
    (i) Procedures that clearly specify the methods for determining the 
existence of and the amount of any payable loss under the submission and 
that demonstrate that such determinations are consistent with policy 
provisions; and
    (ii) Examples and worksheets that provide the steps for calculating 
the amounts of any payment for indemnity (loss in yield or price), 
prevented planting payment or replant payment in sequential order and in 
sufficient detail to allow review and verification that the indemnity 
calculations are consistent with policy provisions. Any unique component 
must be explained in sufficient detail to determine whether the 
existence or amount of the claim is appropriate;
    (4) A detailed calculation for determining commodity prices, 
coverage levels, the amounts of insurance, and production guarantees; 
and
    (5) A detailed description of the causes of loss covered and 
excluded under the submission.
    (d) The submission must be sent to the Deputy Administrator, 
Research and Development, Federal Crop Insurance Corporation, 9435 
Holmes Road, Kansas City, MO 64131. The submission must also include 
computer disks or

[[Page 65]]

other electronic media in a format acceptable to RMA.



Sec. 400.706  FCIC review.

    Each submission will be reviewed by FCIC to determine if all 
necessary and appropriate documentation is included. The submission may 
be returned to the applicant if it does not comply in all material 
respects with these requirements. Any returned submission must be 
resubmitted in its entirety unless otherwise determined by FCIC.



Sec. 400.707  Presentation to and review by the Board for approval or disapproval.

    (a) Upon completion of staff review, all recommendations will be 
forwarded to the Board.
    (b) After scheduling the submission to be presented to the Board, 
the Manager will inform the applicant of the date, time, and place of 
such meeting.
    (c) The applicant will be given the opportunity to present the 
submission to the Board. The applicant must notify FCIC in writing in 
advance of the Board meeting as to whether the applicant will present 
the submission to the Board. If the applicant plans to present the 
submission and fails to appear, or if the applicant requests FCIC to 
present the submission, an FCIC representative will present the 
submission to the Board.
    (d) The Board may consider for approval the submission for sale to 
producers as an additional risk management tool if:
    (1) Producers interests are adequately protected;
    (2) Premiums charged are actuarially appropriate;
    (3) The applicant agrees to make any requested FCIC substantive 
changes in the submission to ensure compliance with the Act and to 
protect the interests of producers and the integrity of the program. 
FCIC will categorize recommended changes in a submission into 
substantive and non-substantive. (Failure of the applicant to 
incorporate non-substantive changes suggested by FCIC will not serve as 
a basis for the Board to disapprove the submission);
    (4) The insurance provider's resources, procedures, and internal 
controls are adequate to make the product available to producers in a 
timely manner in the proposed market areas; and
    (5) The applicant provides rates, defining each variable used in any 
rating formulae, forms, guidelines, standards, actuarial material, 
rating procedures, indemnity procedures, and related documents.
    (e) The Board may disapprove the submission for financial assistance 
if all the requirements of paragraph (d) of this section are not met. 
When the Board indicates its intention to disapprove, it will:
    (1) Notify the applicant in writing of its intent to disapprove the 
submission at least 30 days prior to taking such action (Such notice 
will contain the basis for disapproval, and may include changes 
necessary for Board approval);
    (2) Consider any resubmission as a new proposal and complete the 
review process at a later time; and
    (3) Reserve the right to act upon an applicant's revised submission 
or defer action to a later time or for a subsequent crop year.



Sec. 400.708  Approved submission.

    (a) Within 30 days of Board approval, the following must be 
completed:
    (1) A Memorandum of Understanding or other such agreement between 
the applicant and FCIC that specifies the responsibilities of each with 
respect to the implementation, delivery and oversight of the submission, 
and;
    (2) A reinsurance agreement between FCIC and the applicant that 
specifies the amount of reinsurance coverage, risk subsidy, and A&O 
subsidy, as applicable.
    (b) Any solicitation, sales, marketing, or advertising of the 
program before FCIC has made the submission and related materials 
available to all interested parties through its official issuance system 
will result in the denial of reinsurance, risk subsidy and A&O subsidy 
for those policies in violation of this provision.
    (c) A submission approved by the Board under this subpart will be 
published as a notice of availability in the Federal Register, and be 
made available to all persons contracting with or reinsured by FCIC 
under the same terms and conditions as required of the submitting 
company.

[[Page 66]]



Sec. 400.709  Review of an approved program.

    (a) Responses to procedural issues, questions, problems or needed 
clarification regarding an approved submission shall be jointly 
addressed by the applicant and FCIC. All such resolutions shall be 
communicated to all insurance providers through FCIC's official issuance 
system. Any corrected material must be presented to FCIC in a format 
specified in Sec. 400.705(d).
    (b) Any change causing a material impact upon a submission 
previously approved by the Board must be resubmitted for Board 
consideration and approval. (A material impact is any one that may 
affect the premium charged or liability under the policy.)
    (c) The approved submission will be administered in accordance with 
all terms of the reinsurance agreement, any applicable Memorandum of 
Understanding, or any other requirement deemed appropriate by the Board.



Sec. 400.710  Preemption and premium taxation.

    A policy that is approved by the Board for FCIC reinsurance only, or 
FCIC reinsurance and risk and A&O subsidies, and published in the 
Federal Register as a notice of availability is preempted from state and 
local taxation. Any changes to policy provisions requested under state 
and local laws and regulations must be submitted to FCIC for review and 
Board approval.



Sec. 400.711  Right of review, modification, and amendment.

    At any time after approval, if sufficient material, documentation or 
cause arises, the Board may review any approved program, request 
additional information, and require appropriate amendments, revisions or 
program changes for purposes of actuarial soundness, program integrity 
or protection of the interests of producers.

Subpart W  [Reserved]



    Subpart X--Interpretations of Statutory and Regulatory Provisions

    Source: 63 FR 70313, Dec. 21, 1998, unless otherwise noted.



Sec. 400.765  Basis and applicability.

    (a) The regulations contained in this subpart prescribe the rules 
and criteria for obtaining a final agency determination of the 
interpretation of any provision of the Act or the regulations 
promulgated thereunder.
    (b) Requesters may seek interpretations of those provisions of the 
Act and the regulations promulgated thereunder that are in effect for 
the crop year in which the request under this subpart is being made and 
the three previous crop years.
    (c) All final agency determinations issued by FCIC, and published in 
accordance with Sec. 400.768(f ), will be binding on all participants in 
the Federal crop insurance program.

[63 FR 70313, Dec. 21, 1998, as amended at 64 FR 50246, Sept. 16, 1999]



Sec. 400.766  Definitions.

    Act. The Federal Crop Insurance Act, 7 U.S.C. 1501 et seq.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
government corporation within the United States Department of 
Agriculture.
    Participant. Any applicant for crop insurance, a producer with a 
valid crop insurance policy, or a private insurance company with a 
reinsurance agreement with FCIC or their agents, loss adjusters, 
employees or contractors.
    Regulations. All provisions contained in 7 CFR chapter IV.



Sec. 400.767  Requester obligations.

    (a) All requests for a final agency determination under this subpart 
must:
    (1) Be submitted, in writing by certified mail to the Associate 
Administrator, Risk Management Agency, United States Department of 
Agriculture, Stop Code 0801, 1400 Independence Avenue, SW., Washington, 
DC 20250-0801, facsimile at (202) 690-5879 or

[[Page 67]]

by electronic mail at RMA533@wdc.fsa.usda.gov;
    (2) State that it is being submitted under section 506(s) of the 
Act;
    (3) Identify and quote the specific provision in the Act or 
regulations for which a final agency determination is requested;
    (4) State the crop year for which the interpretation is sought;
    (5) State the name, address, and telephone number of a contact 
person affiliated with the request; and
    (6) Contain the requester's detailed interpretation of the 
regulation.
    (b) The requestor must advise FCIC if the request for a final agency 
determination will be used in a lawsuit or the settlement of a claim.
    (c) Each request for final agency determination under this subpart 
must contain no more than one request for an agency interpretation.

[63 FR 70313, Dec. 21, 1998, as amended at 64 FR 50246, Sept. 16, 1999]



Sec. 400.768  FCIC obligations.

    (a) FCIC will not interpret any specific factual situation or case, 
such as actions of any participant under the terms of a policy or any 
reinsurance agreement.
    (b) If, in the sole judgement of FCIC, the request is unclear, 
ambiguous, or incomplete, FCIC will not provide an interpretation, but 
will notify the requester that the request is unclear, ambiguous or 
incomplete, within 30 days of such request.
    (c) FCIC will provide a final determination of the interpretation to 
a request that meets all the conditions stated herein to the requester 
in writing, and at FCIC's discretion in the format in which it was 
received, within 90 days of the date of receipt by FCIC.
    (d) If a requestor is notified that a request is unclear, ambiguous 
or incomplete under section 400.768(b), the time to respond will be 
tolled from the date FCIC notifies the requestor until the date that 
FCIC receives a clear, complete, and unambiguous request.
    (e) If a response is not provided within 90 days, the requestor may 
assume the interpretation provided is correct for the applicable crop 
year.
    (f) All agency final determinations will be published by FCIC as 
specially numbered documents on the RMA Internet website.
    (g) All final agency determinations are considered matters of 
general applicability that are not appealable to the National Appeals 
Division. Before obtaining judicial review of any final agency 
determination, the person must obtain an administratively final 
determination from the Director of the National Appeals division on the 
issue of whether the final agency determination is a matter of general 
applicability.



PART 401--GENERAL CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 1988 THROUGH 1998 CONTRACT YEARS--Table of Contents




Sec.
401.1  Applicability.
401.2  Availability of Federal crop insurance.
401.3  Premium rates, production guarantees or amounts of insurance, 
          coverage levels, and prices at which indemnities shall be 
          computed.
401.4  OMB control numbers.
401.5  Creditors.
401.6  Good faith reliance on misrepresentation.
401.7  The contract.
401.8  The application and policy.
401.9-401.100  [Reserved]
401.101  Wheat endorsement.
401.102  The winter coverage option for wheat.
401.103  Barley endorsement.
401.104  Winter coverage option for barley.
401.105  Oat endorsement.
401.106  Rye endorsement.
401.107  Late planting agreement option.
401.108  Prevented planting endorsement.
401.109  Hybrid sorghum seed endorsement.
401.110  Almond endorsement.
401.111  Corn endorsement.
401.112  Corn silage option.
401.113  Grain sorghum endorsement.
401.114  Canning and processing tomato endorsement.
401.115  Texas citrus endorsement.
401.116  Flaxseed endorsement.
401.117  Soybean endorsement.
401.118  Canning and processing bean endorsement.
401.119  Cotton endorsement.
401.120  Rice endorsement.
401.121  ELS cotton endorsement.
401.122  Stonefruit endorsement.
401.123  Safflower seed crop endorsement.
401.124  Sunflower seed crop endorsement.
401.125  Fig endorsement.
401.126  Onion endorsement.
401.127  Cranberry endorsement.

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401.129  Tobacco (guaranteed plan) endorsement.
401.130  Grape endorsement.
401.131  High-risk land exclusion option.
401.133  Sugarcane endorsement.
401.134  Texas citrus tree endorsement.
401.135  Malting barley option.
401.137  Fresh market tomato minimum value option.
401.138  Fresh market sweet corn endorsement.
401.139  Fresh market tomato (dollar plan) endorsement.
401.140  Pear endorsement.
401.142  Raisin endorsement.
401.143  Florida citrus endorsement.
401.146  Fresh plum endorsement.

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

    Source: 52 FR 28447, July 30, 1987, unless otherwise noted.



Sec. 401.1  Applicability.

    The provisions of this part are applicable only to crops for which a 
crop endorsement is published as a section to 7 CFR part 401 and then 
only for the crops and crop years designated by the applicable section.



Sec. 401.2  Availability of Federal crop insurance.

    (a) Insurance shall be offered under the provisions of this section 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The crops and counties shall be designated by the 
Manager of the Corporation from those approved by the Board of Directors 
of the Corporation.
    (b) The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation offer 
contracts containing substantially the same terms and conditions as the 
contract set out in this part. These contracts are clearly identified as 
being reinsured by the Corporation.
    (c) No person may have in force more than one contract on the same 
crop for the crop year, whether insured by the Corporation or insured by 
a company which is reinsured by the Corporation
    (d) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, 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 
Corporation that the multiple contract insurance was inadvertent and 
without the fault of the person.
    (e) If the multiple contract insurance is shown to be inadvertent 
and without the fault of the insured, the contract with the earliest 
application will be valid and all other contracts on that crop for that 
crop year will be cancelled. No liability for indemnity or premium will 
attach to the contracts so cancelled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract for 
delinquent premiums.
    (g) An insured whose contract with the Corporation or with a company 
reinsured by the Corporation under the Act has been terminated because 
of violation of the terms of the contract is not eligible to obtain 
multi-peril crop insurance under the Act with the Corporation or with a 
company reinsured by the Corporation unless the insured can show that 
the default in the prior contract was cured prior to the sales closing 
date of the contract applied for or unless the insured can show that the 
termination was improper and should not result in subsequent 
ineligibility
    (h) All applicants for insurance under the Act must advise the 
agent, in writing, at the time of application, of any previous 
applications for insurance under the Act and the present status of any 
such applications or insurance.



Sec. 401.3  Premium rates, production guarantees or amounts of insurance, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production guarantees 
or amounts of insurance, coverage levels, and prices at which 
indemnities shall be computed for the insured crop which will be 
included in the actuarial table on file in the applicable service 
offices

[[Page 69]]

for the county and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance or a coverage level and price from 
among those contained in the actuarial table for the crop year.



Sec. 401.4  OMB control numbers.

    OMB control numbers are contained in Subpart H to Part 400 in Title 
7 CFR.



Sec. 401.5  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. 401.6  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the crop insurance contract, 
whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 401.7  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the crop as 
provided in the policy and the crop endorsement. The contract shall 
consist of the application, the policy, the crop endorsement and any 
amendments thereto, and the county actuarial table. Changes made in the 
contract shall not affect its continuity from year to year. No indemnity 
shall be paid unless the insured complies with all terms and conditions 
of the contract. The forms referred to in the contract are available at 
the applicable service offices.



Sec. 401.8  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person who wishes to participate in the 
program, to cover such person's share in the insured crop as landlord, 
owner-operator, or tenant. The application shall be submitted to the 
Corporation at the service office on or before the applicable sales 
closing date on file in the service office.
    (b) The Corporation may reject or discontinue the acceptance of 
applications in any county or of any individual application upon its 
determination that the insurance risk is excessive. The Manager of the 
Corporation is authorized in any crop year to extend the sales closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable service offices and publishing a notice 
in the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications. If the sales 
closing date falls on a Saturday or Sunday or legal holiday when the 
service office is

[[Page 70]]

not open, the application must be submitted by the close of business on 
the next business day.
    (c) In accordance with the provisions governing changes in the 
contract contained in previous policies and regulations issued by FCIC, 
a contract in the form provided for in this section will come into 
effect as a continuation of the contract issued under such prior 
regulations, without the filing of a new application.
    (d) The application for the 1988 and succeeding crop years is found 
at subpart D of part 400, General Administrative Regulations (7 CFR 
400.37 and 400.38) The provisions of the Safflower Insurance Policy for 
the 1988 through 1997 crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      General Crop Insurance Policy

(This is a continuous contract. Refer to section 15.)

    Note: This is a contract with the Federal Crop Insurance 
Corporation, a United States Government agency. The terms of the 
contract are published in the Federal Register under the provisions of 
the Federal Register Act (44 U.S.C. 1501), and may not be waived or 
varied in any way by the Crop Insurance Agent or any other agent or 
employee of FCIC.

    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy and the applicable endorsement in return for the premium and your 
compliance with ALL provisions of the crop insurance contract. If a 
conflict exists between the terms of this policy and the crop 
endorsement, the terms of the crop endorsement control.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation. Unless the context indicates 
otherwise, use of the plural form of a word includes the singular and 
use of the singular form of the word includes the plural.

                          Terms and Conditions

                            1. Causes of Loss

    a. You are insured only against unavoidable loss of production 
directly caused by specific causes of loss contained in the crop 
endorsement.
    b. We do not insure against any loss caused by:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (2) The failure to follow recognized good farming practices for the 
insured crop;
    (3) Water contained by any governmental, public, or private dam or 
reservoir project;
    (4) Failure or breakdown of irrigation equipment or facilities;
    (5) Failure to carry out a good irrigation practice for the insured 
crop;
    (6) Any cause not specified in the crop endorsement as an insured 
cause of loss; or
    (7) Any other cause set out as an uninsured cause of loss in the 
crop endorsement.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured is the crop specified in the crop endorsement 
and no other, which is planted for harvest as the insured crop, which is 
grown on insurable acreage, and for which a guarantee or amount of 
insurance and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year is the insurable acreage 
as designated by the actuarial table, which is planted to the insured 
crop and in which you have a share (as reported by you or as determined 
by us, whichever we elect).
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured crop at the time insurance attaches. However, only 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share at the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. Unless the application clearly indicates that insurance is 
requested for a partnership or joint venture, insurance will cover only 
the crop share of the person making application for insurance.
    e. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) Which is irrigated and an irrigated practice is not provided by 
the actuarial table or the crop endorsement (you may elect to insure 
irrigated acreage on a non-irrigated basis by reporting it as non-
irrigated on the acreage report and adjusting the basis used to 
establish your guarantee accordingly);
    (3) Which is destroyed, it is practical to replant to the insured 
crop, but the insured crop is not replanted;
    (4) Initially planted after the final planting date, unless we allow 
and you agree in writing on our form, to coverage reduction (the Late 
Planting Option applies only on selected crops);
    (5) Of a volunteer crop;

[[Page 71]]

    (6) Planted to a type or variety of the crop not established as 
adapted to the area or excluded by the actuarial table;
    (7) Planted with a crop other than the insured crop;
    (8) Which does not meet rotation requirements required by the crop 
endorsement or actuarial table;
    (9) Of a second crop following the same crop (insured or uninsured) 
harvested in the same crop year unless specifically permitted by the 
crop endorsement or the actuarial table;
    (10) Used for wildlife protection or management;
    (11) On which a crop has not been planted and harvested in at least 
one of the three previous crop years unless it is determined the acreage 
has been in a soil conserving legume or unless the acreage meets the 
definition of Agricultural Stabilization and Conservation Service (ASCS) 
``cropland'' acreage; or
    (12) Which has been strip mined unless we agree in writing to insure 
such acreage.
    f. If insurance is provided for an irrigated practice, we will 
insure as irrigated, and you must report as irrigated, only the acreage 
for which you have adequate facilities and water, at the time insurance 
attaches, to carry out a good irrigation practice for the insured crop.
    g. Acreage which is planted for the development or production of 
hybrid seed or for experimental purposes is not insured, unless 
permitted by the crop endorsement or unless we agree, in writing, to 
insure such acreage.
    h. We may restrict the amount of acreage which we will insure to the 
amount allowed under any acreage limitation program established by the 
United States Department of Agriculture if we advise you of that limit 
prior to the time insurance attaches.
    i. You must not obtain any other crop insurance under the Federal 
Crop Insurance Act (Multiple Peril Crop Insurance Policy or Federal Crop 
Insurance Policy) on your share of the insured crop. More than one 
policy on your share will result in our voiding the policies and 
collecting the premium from you unless the violation of this provision 
is found by us to have been inadvertent. If we determine that the 
violation was inadvertent, the policy with the earliest date of 
application will be the one in force and all other policies will be 
void. Nothing in this paragraph prevents the insured from obtaining 
other hail and fire insurance not issued under the Act and which is 
subject to the provisions of section 9 hereof.
    j. Although your violation of a number of federal statutes including 
the Federal Crop Insurance Act may cause cancellation, termination, or 
voidance of your insurance contract, you are specifically directed to 
the provisions of Title XII of the Food Security Act of 1985 (Public Law 
99-198) and the regulations promulgated thereunder, generally referred 
to as the controlled substance provisions. Your insurance policy will be 
cancelled if you are determined to be in violation of these provisions. 
We will recover any and all monies paid to you or received by you and 
your premium will be refunded.

       3. Report of Acreage, Share, and Practice (Acreage Report)

    You must report on our form:
    a. All insured and uninsured acreage of the crop in the county in 
which you have a share;
    b. The practice; and
    c. Your share at the time insurance attaches.
    The insurable practices are contained in the actuarial table. You 
must designate separately any acreage which is not insurable. The report 
must indicate if you do not have a share of the insured crop in the 
county. This report must be submitted each year on or before the acreage 
reporting date for the crop for the county. This report may be used as 
the basis to determine your premium and indemnity or we may compute 
premiums and indemnities on the acreage, share, and practice which is 
determined to have actually been in existence. If you do not submit this 
report by the reporting date, we may elect to determine, by unit, the 
insured acreage, share, and practice or we may deny liability on any 
unit. Because underreporting of acreage and share would have the effect 
of reducing your premium and any indemnity which may be due, you may not 
revise your report after the reporting date except with our approval. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines at the time of adjusting a loss.

 4. Production Guarantees, Coverage Levels or Amounts of Insurance, and 
                    Prices for Computing Indemnities

    a. The production guarantees or amounts of insurance, coverage 
levels, and prices for computing indemnities are contained in the 
actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the amount of insurance or coverage level and 
price election on or before the sales closing date for the crop year.
    d. You must report production to us for the previous crop year by 
the earlier of the acreage reporting date or 45 days after the sales 
closing date for the current crop year (See section 21).
    If you do not provide the required production report, we will assign 
a yield for the previous crop year. The yield assigned by us will not be 
more than 75% of the yield used by us to determine your guarantee for 
the previous crop year. The production report or

[[Page 72]]

assigned yield will be used to compute your production history for the 
purpose of determining your guarantee for the current crop year. If you 
have filed a claim for any crop year, the production used to determine 
the indemnity payment will be the production report for that year.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time insurance 
attaches. The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches, and 
where applicable, times any applicable premium adjustment factor shown 
on the actuarial table.
    b. If you are eligible for a premium reduction based on your 
experience under previous crop policies, you may retain that experience 
under certain conditions as set out in the crop endorsement through the 
1991 crop year.
    c. Your premium payment, plus any accrued interest, will be 
considered delinquent if any amount due us is not paid on or before the 
termination date specified in the crop endorsement.

                            6. Amounts Due Us

    a. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance due us. For the purpose of premium amounts 
due us, the interest will start on the first day of the month following 
the first premium billing date.
    b. For the purpose of any other amounts due us, such as repayment of 
indemnities found not to have been earned, interest will start on the 
date that notice is issued to you for the collection of the unearned 
amount. Interest and penalties will be charged in accordance with 31 
U.S.C. 3717 and 4 CFR 102.13. The penalty for accounts more than 90 days 
past due (31 U.S.C. 3717(e)(2)) is six percent (6%) per annum. Interest 
on any amount due us found to have been received by you because of 
fraud, misrepresentation or presentation by you of a false claim will 
start on the date you received the amount with the 6% penalty beginning 
90 days after the notice of amount due is issued to you. This interest 
is in addition to any other amount found to be due under any other 
federal criminal or civil statute.
    c. All amounts paid will be applied first to reduction of accrued 
interest, then to 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. Those expenses will be 
paid before the application of any amounts to interest or principal.
    e. Any amount due us may be deducted from any indemnity payment due 
you or from any replanting payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies and from any amounts due you 
from any other United States Government Agency.

                           7. Insurance Period

    Insurance attaches on each unit or part of a unit when the insured 
crop is planted or when the application is properly signed, completed, 
and delivered to your service office, whichever is later, or on the 
calendar date for the beginning of the insurance period if specified in 
the crop endorsement, and ends at the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit;
    (c) Final adjustment of a loss on a unit; or
    (d) The calendar date for the end of the insurance period contained 
in the crop endorsement.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) You want our consent to replant the insured crop damaged by an 
insured cause of loss;
    (b) During the period before harvest the insured crop on a unit is 
damaged by an insured cause of loss and you decide not to further care 
for or harvest any part of it;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage due to an insured cause of loss occurs.
    Insured acreage may not be put to another use until we have 
appraised the insured crop and given written consent. We will not 
consent to another use if the insured crop can be replanted. You must 
notify us when such acreage is replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If a loss is anticipated by you on any unit within 15 days of or 
during harvest, notice of probable loss must be given to us within 72 
hours of your discovery. A representative sample of the unharvested 
insured crop, as required by the crop endorsement, must remain 
unharvested for a period of 15 days from the date of notice unless we 
give you written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you 
intend to claim an indemnity on any unit, a notice of loss must be

[[Page 73]]

given not later than 10 days after the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You may not destroy and replant any of the insured crop on which 
you intend to claim a replanting payment, until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the insured crop which is not harvested.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production and, if applicable, the value 
received for the insured crop on the unit and that any loss of 
production or value has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit in accordance with 
the applicable crop endorsement and the actuarial table.
    d. If the information reported by you on the acreage report results 
in a lower premium than the premium determined to be due on the basis of 
the share, acreage, practice or type determined to actually exist, the 
guarantee on the unit will be computed on the information contained in 
the acreage report but all production from insurable acreage, whether or 
not reported as insurable, will count against the guarantee.
    e. The total production to be counted for a unit will include all 
production determined in accordance with the crop endorsement.
    f. The amount of production of any unharvested insured crop may be 
determined on the basis of our field appraisals conducted after the end 
of the insurance period.
    g. If you elect to exclude hail and fire as insured causes of loss 
and the insured crop is damaged by hail or fire, appraisals will be made 
in accordance with the applicable Form FCI-78 or FCI-78-A, ``Request To 
Exclude Hail and Fire.''
    h. If allowed by the crop endorsement, a replanting payment may be 
made on an insured crop replanted after we have given consent and the 
acreage replanted is at least the lesser of 20 acres or 20 percent of 
the insured acreage for the unit (as determined on the final planting 
date).
    (1) No replanting payment will be made on acreage:
    (a) On which our appraisal establishes that production will exceed 
the level set by the crop endorsement;
    (b) Initially planted prior to the date established by the actuarial 
table; or
    (c) On which one replanting payment has already been allowed for the 
crop year.
    (2) The replanting payment per acre will be your actual cost for 
replanting, but will not exceed the amount determined in accordance with 
the crop endorsement.
    If the information reported by you on the acreage report results in 
a lower premium than the premium determined to be due based on the 
acreage, share, practice or type determined actually to have existed, 
the replanting payment will be reduced proportionately.
    i. You must not abandon any acreage to us.
    j. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    k. An indemnity will not be paid unless you comply with all policy 
provisions.
    l. Under no circumstances will we be liable for the payment of 
damages (compensatory, punitive, or other), attorney's fees, or other 
charges in connection with any claim for indemnity, whether we approve 
or disapprove such claim. (State and local laws to the contrary are not 
applicable to this insurance contract.) We will pay simple interest 
computed on the net indemnity ultimately found to be due by us or by the 
final judgment of a court of competent jurisdiction, from and including 
the 61st day after the date you sign, date and submit to us the properly 
completed FCIC claim form. Interest will be paid only if the reason for 
our failure to timely pay is not due to your failure to provide 
information or other material necessary for the computation or payment 
of the indemnity The interest rate will be that established by the 
Secretary of the Treasury under Section 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 will vary 
with each publication.
    m. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    n. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:

[[Page 74]]

    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. (For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.)

                        10. Concealment or Fraud

    We may void the insurance contract on all crops without affecting 
your liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to this 
or any other contract with us. The voidance will be effective as of the 
beginning of the crop year with respect to which such act or omission 
occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to the applicable indemnity. The transfer must be on 
our form and approved by us. Both you and the person to whom you 
transfer your interest are jointly and severally liable for the payment 
of the premium. The transferee has all rights and responsibilities under 
the contract consistent with the transferee's interest.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us. The assignee may submit all notices and 
forms required to protect the insurance contract and to claim an 
indemnity.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep records of the harvesting, storage, shipment, sale, or 
other disposition of all the insured crop produced on each unit, and 
separate records including the same information for production of the 
crop from any uninsured acreage. The records must be kept for three 
years from the end of the crop year to which they pertain. Failure to 
keep and maintain such records may result in: (a) Cancellation of the 
contract for that crop year; (b) assignment of production to units by 
us; or (c) a determination that no indemnity is due, whichever we elect. 
Any person designated by us will have access to such records and the 
farm for purposes related to the contract.

            15. Contract Term, Cancellation, and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. If the amount is paid by deduction from an indemnity 
or other U.S. Department of Agriculture payment, the date of payment:
    (1) If deducted from an indemnity, will be the date you sign the 
properly completed claim form; or
    (2) If deducted from a payment under another program administered by 
the United States Department of Agriculture, will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are contained in the crop 
endorsement.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election or amount of insurance at which indemnities 
are computed is no longer offered, the actuarial table will provide the 
price election or amount of insurance which you are conclusively 
presumed to have elected unless you elect a different price election

[[Page 75]]

or amount of insurance prior to the sales closing date. All contract 
changes will be available at your service office by the contract change 
date contained in the crop endorsement. Acceptance of changes will be 
conclusively presumed in the absence of notice from you to cancel the 
contract.

                          17. Meaning of Terms

    For the purposes of the crop insurance contract:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amounts of insurance or production 
guarantees, coverage levels or amounts of insurance, premium rates, 
prices for computing indemnities, practices, insurable and uninsurable 
acreage, and related information regarding crop insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. ASCS farm serial number means the number assigned to the farm by 
the ASCS County Office Committee.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop endorsement means the endorsement to the policy contained in 
this part which sets forth the terms and conditions of insurance 
applicable to the named crop.
    f. Cropland means any acreage considered by ASCS for program payment 
purposes.
    g. Crop year means the period within which the crop is normally 
grown and will be designated by the calendar year in which the insured 
crop is normally harvested.
    h. Harvest (Defined in the crop endorsement).
    i. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    j. Insured means the person who submitted the application accepted 
by us and does not extend to any other person having a share or interest 
in the crop such as a partnership, landlord, or any other person unless 
specifically indicated on the application and accepted by us.
    k. Insured crop means the crop insured under the provisions of the 
applicable crop endorsement.
    l. Loss ratio means the ratio of indemnity to premium.
    m. Person means 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.
    n. Production report means previous year yield information including 
planted acreage and harvested production, reported by you, that is 
supportable by written verifiable records from a buyer of the insured 
crop or by measurement of farm stored production.
    o. Section means a unit of measure under the rectangular survey 
system describing a tract of land usually one mile square and generally 
containing approximately 640 acres.
    p. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    q. Tenant means a person who rents land from another person for a 
share of the crop or a share of the proceeds therefrom.
    r. Unit means all insurable acreage of the crop in the county on the 
date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another specific 
entity on a share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the insured crop on such land will 
be considered as owned by the lessee. Land which would otherwise be one 
unit may, in certain instances, be divided according to guidelines 
contained in the applicable crop endorsement or by written agreement 
with us. Units will be determined when the acreage is reported but may 
be adjusted to reflect the actual unit structure when adjusting a loss; 
however, no further division may be made at loss adjustment time. We may 
consider any acreage and share thereof reported by or for your spouse or 
child or any member of your household to be your bona fide share or the 
bona fide share of any other person having an interest therein.
    s. Verifiable records mean documents indicating a quantity of 
production or acreage determined by us, other government agencies, 
buyers, processors, packers, storage facilities or other third parties 
acceptable to us. The documents must include the name of the producer 
and entity making the measurement, the date of the measurement, and the 
crop type, class, or variety.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations (7 CFR 
part 400, subpart J).

[[Page 76]]

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice. If the date by which you are required to 
submit an application or a report or notice falls on a Saturday, Sunday, 
or Federal holiday if your service office is not open for business on 
such date such notice or report must be submitted on the next business 
day.

                     21. Dates, Reports, and Notices

    To preserve your rights under this insurance contract you are 
required to file a number of reports and notices with us by certain 
dates. The actual content requirements and time limits of those reports 
and notices are set out elsewhere in this contract and you must refer to 
those sections for those requirements.
    As a convenience to you and without limitation on our rights under 
this contract, a short description of most of the dates, reports and 
notices have been compiled in this section. Omission of any date, report 
or notice, or are referred to the crop endorsement for any such 
requirements.)
    a. ``Acreage report''--A report required by section 3 of this 
contract. This report contains, in addition to other information, the 
report of the insured's share of all acreage of an insured crop in the 
county whether insurable or uninsurable and must be filed prior to the 
final acreage reporting date contained in the actuarial table for the 
county for the crop insured.
    b. ``Another use, Notice of''--The written notice required when an 
insured wishes to put acreage to another use (See: Section 8).
    c. ``Application''--A form required by Subpart D of Part 400 of 7 
CFR and each individual program regulation. The application for 
insurance form must be completed and filed in the service office prior 
to the sales closing date (contained in the actuarial table) of the 
initial insurance year for each crop year for which an insurance 
endorsement is requested by the insured.
    d. ``Assignment of indemnity''--A transfer of contract rights, made 
on our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    e. ``Billing date''--The first date upon which an insured is billed 
for insurance coverage and which generally falls at or near harvest 
time. Interest accruing on any unpaid premium balance attaches 30 days 
after the billing date.
    f. ``Cancellation date''--The date on or before which the insured or 
the Corporation may cancel the insurance policy for the subsequent crop 
year by giving written notice.
    g. ``Claim for indemnity'' (See: Section 9)--A claim made by the 
insured for damage or loss to an insured crop and submitted to the 
Corporation not later than 60 days after the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    h. ``Claim for indemnity, Notice of''--The loss notice required to 
be given by the insured not later than 10 days after certain occurrences 
(See: Section 8).
    i. ``Contract change date''--The date by which FCIC makes any 
contract changes available for inspection in the service office (See: 
Section 16).
    j. ``Damage, notice of''--See: Probable loss, Notice of.
    k. ``Earliest planting date''--The earliest date established for 
planting the insured crop and qualifying for a replant payment (See: 
Actuarial Table and Section 9.h.(1)(b)).
    l. ``End of insurance period, Date of''--The date upon which the 
insured's crop insurance coverage ceases (See: Section 7).
    m. ``Insurance attaches, Date''--The date insurances attaches on the 
crop, generally after planting is completed or the calendar date in the 
crop endorsement (See: Section 7).
    n. ``Intent to abandon, Notice of''--The written notice to the 
Corporation by the insured indicating that because of damage from an 
insured cause, the insured has decided to no longer care for or harvest 
any part of the crop.
    o. ``Late planting agreement''--Available on selected crops. An 
amendment to the insurance contract which allows an insured whose 
planting has been delayed, to insure a crop planted after the final 
planting date in exchange for a reduction in coverage.
    p. ``Probable loss, notice of''--A written notice required to be 
filed in the service office whenever an insured believes that the 
insured crop has been damaged to the extent that a loss is probable 
(See: Section 8).
    q. ``Production report''--A written record showing the insured's 
annual production and used to determine the yield guarantee. (See: 
Section 4). The report contains previous year yield information 
including planted acreage and harvested production. This report must be 
supported by written records from a warehouseman or buyer of the insured 
crop or by measurement of farm stored production.
    r. ``Replanting, Notice of completion''--The notice required to be 
given by the insured to the Corporation when replanting is completed 
(See: Section 8).

[[Page 77]]

    s. ``Reporting date''--The acreage reporting date (contained in the 
Actuarial Table) by which you are required to report all your insurable 
and uninsurable acreage in the county in which you have a share and your 
share at the time insurance attaches.
    t. ``Sales closing date''--The date contained in the actuarial table 
on file in the respective service office which sets out the final date 
when an application for insurance may be filed.
    u. ``Termination date''--The date upon which the Corporation may 
cancel the insurance policy for non-payment of premium.
    (e) Notwithstanding the terms of the crop insurance endorsement and 
any contract for crop insurance under the provisions of this part, 
coverage under the terms of such crop insurance endorsement will be 
effective subject to the availability of appropriations.

[52 FR 28447, July 30, 1987, as amended at 52 FR 36401, Sept. 29, 1987; 
53 FR 9099, Mar. 21, 1988; 53 FR 16540, May 10, 1988, and 54 FR 9766, 
Mar. 8, 1989; 54 FR 20370, May 11, 1989; 55 FR 6972, Feb. 28, 1990; 55 
FR 50812, Dec. 11, 1990; 56 FR 13577, Apr. 3, 1991; 61 FR 39050, July 
26, 1996; 62 FR 42649, Aug. 8, 1997]



Secs. 401.9-401.100  [Reserved]



Sec. 401.101  Wheat endorsement.

    The provisions of the Wheat Crop Insurance Endorsement for the 1988 
through the 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Wheat Endorsement

                             1. Insured Crop

    a. The crop insured will be wheat planted for harvest as grain.
    b. In addition to the wheat not insurable in section 2 of the 
general crop insurance policy, we do not insure any wheat:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such wheat; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the wheat policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when the wheat 
is planted except that:
    (1) In counties with an April 15 cancellation date, insurance will 
attach on fall-planted wheat on April 16 following planting if it is 
determined that there is an adequate stand on this date to produce a 
normal crop;
    (2) If you have optional winter coverage in effect, or if optional 
winter coverage is provided in the county and you purchase such coverage 
before the winter wheat sales closing date, insurance will attach at the 
time of planting; or
    (3) If optional winter coverage is provided in the county and you 
fail to purchase such coverage and it is determined that there is an 
adequate stand on the spring final planting date to produce a normal 
crop, insurance will attach on the spring final planting date.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the wheat;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or

[[Page 78]]

    (4) The following dates of the calendar year in which wheat is 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Wheat acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided by 
the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured wheat is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The wheat is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured wheat is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Wheat planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, in case of damage or probable loss you must give 
us written notice if you want to harvest the wheat for silage or hay. 
After such notice is given, we will appraise the potential grain 
production. If we are unable to do so before harvest, you may harvest 
the crop provided representative samples are left for appraisal 
purposes. For purposes of this section and section 8 of the general crop 
insurance policy the representative sample of the unharvested crop must 
be at least 10 feet wide and the entire length of the field.
    b. A replant payment is available under this endorsement only in 
those counties where a Wheat Winter Coverage Option is available and 
only if the insured has elected the Wheat Winter Coverage Option. The 
replant payment will be the actual cost of replanting not to exceed the 
lesser of 20 percent of the production guarantee or 3 bushels multiplied 
by the price election multiplied by your share.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of wheat to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature wheat production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 13.5 percent; or
    (2) Wheat, which due to insurable causes, grades not higher than 
U.S. No. 5 because of test weight, total damage, or shrunken and broken 
kernels, or which meets the special grade requirements for ``garlicky'', 
``smutty'', ``light smutty'', or ``ergoty'', (all as graded by a grain 
grader licensed by the Federal Grain Inspection Service or a licensed 
grader under the United States Warehouse Act) will be adjusted by:
    (a) Dividing the value per bushel of the insured wheat by the price 
per bushel of U.S. No. 2 wheat which does not grade garlicky, smutty, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such wheat.
    The applicable price for No. 2 wheat will be the local market price 
on the earlier of the day the loss is adjusted or the day the insured 
wheat is sold.
    (3) Any harvested production from other volunteer plants growing in 
the wheat will be counted as wheat on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good wheat farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:

[[Page 79]]

    (a) Not put to another use before harvest of wheat becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
         State and county            Cancellation date  Termination date
------------------------------------------------------------------------
All Alaska Counties except those    Apr. 15...........  Apr. 15.
 listed below; Alamosa, Conejos,
 Costilla, Rio Grande, and
 Saguache Counties, Colorado;
 Maine; Minnesota; Daniels,
 Roosevelt, Sheridan, and Valley
 Counties, Montana; New Hampshire;
 North Dakota; Corson, Walworth,
 Edmunds, Faulk, Spink, Beadle,
 Jerauld, Aurora, Douglas, and Bon
 Homme Counties, South Dakota and
 all South Dakota Counties north
 and east thereof; Vermont; and
 Trempealeau, Jackson, Wood,
 Portage, Waupaca, Outagamie,
 Brown, and Kewaunee Counties,
 Wisconsin and all Wisconsin
 Counties north and west thereof;
 Big Horn, Fremont, Hot Springs,
 Park, and Washakie Counties,
 Wyoming.
All other Colorado Counties except  Sept. 30..........  Sept. 30.
 those listed below; all Iowa
 Counties except those listed
 below; Kansas; Nebraska; New
 Mexico; Oklahoma; Texas; all
 other Wisconsin Counties and all
 other states except those listed
 below.
Archuleta, Custer, Delta, Dolores,  Sept. 30..........  Nov. 30.
 Eagle, Garfield, Grand, La Plata,
 Mesa, Moffat, Montezuma,
 Montrose, Ouray, Pitkin, Rio
 Blanco, Routt, and San Miguel
 Counties, Colorado; Connecticut;
 Plymouth, Cherokee, Buena Vista,
 Pocahontas, Humboldt, Wright,
 Franklin, Butler, Black Hawk,
 Buchanan, Delaware, and Dubuque
 Counties, Iowa and all Iowa
 Counties north thereof;
 Massachusetts; all other Montana
 Counties; New York; Rhode Island;
 all other South Dakota Counties;
 and all other Wyoming Counties.
Matanuska-Susitna County, Alaska;   Oct. 31...........  Nov. 30.
 Arizona; California; Idaho;
 Nevada; Oregon; Utah; and
 Washington.
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and August 15 preceding the cancellation 
date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to wheat during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example, assume you insure one 
unit in which you have a 100 percent share. The unit consists of 150 
acres, of which 50 acres were planted timely, 50 acres were planted 7 
days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be due to you, the production 
guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest wheat final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For all spring-planted wheat acreage (and fall-planted wheat 
acreage only where insurance is not offered for spring-planted wheat) 
which is planted after the final planting date but on or before 25 days 
after the final planting date, the production guarantee for each acre 
will be reduced for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.

[[Page 80]]

    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the wheat continues after the final planting 
date, or you are prevented from planting during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If your were prevented from planting wheat (see subparagraph 
11.(i), you may elect:
    (i) To plant wheat during the late planting period. The production 
guarantee for such acreage will be determined in accordance subparagraph 
10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted wheat. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant wheat after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied 0.50). Production to count for 
such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for wheat in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to wheat on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for wheat reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to wheat during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under any irrigated practice 
will be limited to the number of wheat acres properly prepared to carry 
out an irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for wheat in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than wheat, has been planted and 
is intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of wheat acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of wheat on one optional unit and 40 acres of wheat on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero). If you report more wheat acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible

[[Page 81]]

acreage to insured units based on the number of prevented planting acres 
and share you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to wheat in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted wheat in counties for 
which the Actuarial Table designates a spring final planting date, or 
the acreage reporting date for fall-planted wheat in counties for which 
the Actuarial Table designates a fall final planting date only, even 
though you may elect to plant the acreage after the late planting 
period. Any acreage you report as eligible for prevented planting 
coverage which we determine is not eligible will be deleted from 
prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Adequate stand--a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days--calendar days.
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured wheat must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated wheat acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Late planting period--(applicable only to spring-planted wheat 
acreage and fall-planted wheat acreage only where insurance is not 
offered for spring-planted wheat)-the period which begins the day after 
the final planting date for wheat and ends twenty-five (25) days after 
the wheat final planting date.
    (h) Latest wheat final planting date--
    (1) The final planting date for spring-planted wheat in all counties 
for which the Actuarial Table designates a final planting date for 
spring-planted wheat only;
    (2) The final planting date for fall-planted wheat in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted wheat only; or
    (3) The final planting date for spring-planted wheat in all counties 
for which the Actuarial Table designates final planting dates for both 
spring-planted and fall-planted wheat.
    (i) Prevented planting--inability to plant wheat with proper 
equipment by:
    (1) The latest wheat final planting date in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant wheat due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the latest wheat 
final planting date in the county or within the late planting period.
    (j) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--wheat planted by the final planting date, as 
established by the Actuarial Table, for wheat in the county to be 
planted for harvest in the crop year.

[52 FR 28447, July 30, 1987, as amended at 53 FR 36781, Sept. 22, 1988; 
54 FR 20504, May 12, 1989; 58 FR 33508, June 18, 1993; 58 FR 67631, Dec. 
22, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.102  The winter coverage option for wheat.

    The Winter Coverage Option for wheat is available in the following 
counties and states beginning in the 1988 through 1994 crop years:

                              South Dakota

Bennett
Brule
Buffalo
Butte
Stanley
Charles Mix
Custer
Dewey
Fall River
Sully
Gregory
Haakon
Hand
Harding
Todd
Hughes
Hyde
Jackson
Jones
Tripp
Lawrence
Lyman
Meade
Mellette
Ziebach
Pennington
Perkins
Potter
Shannon


[[Page 82]]


    The provisions of the Winter Coverage Option for Wheat for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                Wheat Endorsement--Winter Coverage Option

                      (This is a continuous Option)

Insured's Name__________________________________________________________
Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________
    In consideration of the additional premium as set by the Actuarial 
Table (FCI-35), the insurance provided is attached to and made part of 
the Wheat Endorsement subject to the following terms and conditions:
    1. You must have a wheat endorsement.
    2. Coverage under this option for fall-planted wheat will begin at 
the time of planting and will end on the spring final planting date for 
wheat in the county.
    3. When there is not an adequate stand on the spring final planting 
date to produce the farm unit production guarantee, you have the option 
to:
    a. Continue to provide sufficient care for the insured wheat crop 
through harvest;
    b. Replant all destroyed acreage to a spring variety of wheat and 
receive a replanting payment in accordance with subsection 9.h. of the 
general crop insurance policy and subsection 6.b. of the wheat 
endorsement; or
    c. Accept our appraisal of the production to count, destroy the 
remaining crop on the acreage and be paid any indemnity due under the 
terms of the general crop insurance policy and the wheat endorsement.
    4. In case of damage to the wheat under this option, you must 
provide us with written notice prior to the spring final planting date 
for wheat.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Agent's Signature_______________________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.103  Barley endorsement.

    The provisions of the Barley Crop Insurance Endorsement for the 1988 
through the 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Barley Endorsement

                             1. Insured Crop

    a. The crop insured will be barley planted for harvest as grain. A 
mixture of barley with either oats or wheat or both planted for harvest 
as grain may also be insured if provided by the actuarial table. The 
production from such mixture will be considered as barley on a weight 
basis.
    b. In addition to the barley not insurable in section 2 of the 
general crop insurance policy, we do not insure any barley:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such barley; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the barley policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;

[[Page 83]]

    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when the barley 
is planted except that:
    (1) In counties with an April 15 cancellation date, insurance will 
attach on fall-planted barley on April 16 following planting if it is 
determined that there is an adequate stand on this date to produce a 
normal crop;
    (2) If you have optional winter coverage in effect, or if optional 
winter coverage is provided in the county and you purchase such coverage 
before the winter barley sales closing date, insurance will attach at 
the time of planting; or
    (3) If optional winter coverage is provided in the county and you 
fail to purchase such coverage, and it is determined that there is an 
adequate stand on the spring final planting date to produce a normal 
crop, insurance will attach on the spring final planting date.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the barley;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or
    (4) The following dates of the calendar year in which barley is 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Barley acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured barley is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The barley is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured barley is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Barley planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, in case of damage or probable loss you must give 
us written notice if you want to harvest the barley for silage or hay. 
After such notice is given, we will appraise the potential grain 
production. If we are unable to do so before harvest, you may harvest 
the crop provided representative samples are left for appraisal 
purposes. For the purposes of this section and Section 8 of the general 
crop insurance policy, the representative sample of the unharvested crop 
must be at least 10 feet wide and the entire length of the field.
    b. A replant payment is available under this endorsement only in 
those counties where a Barley Winter Coverage Option is available and 
only if the insured has elected the Barley Winter Coverage Option. The 
replant payment will be the actual cost of replanting not to exceed the 
lesser of 20 percent of the production guarantee or 3 bushels multiplied 
by the price election multiplied by your share.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of barley to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature barley production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 14.5 percent; or
    (2) Mature barley production which, due to insurable causes, has a 
test weight of less than 40 pounds per bushels or, as determined

[[Page 84]]

by a grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act contains: less than 85 
percent sound barley; more than 8 percent damaged kernels; more than 35 
percent thin barley; more than 5 percent black barley; or grades smutty, 
garlicky, or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured barley by the price 
per bushel of U.S. No. 2 barley which does not grade smutty, garlicky, 
or ergoty; and
    (b) Multiplying the result by the number of bushels of such barley.
    The applicable price for No. 2 barley will be the local market price 
on the earlier of the day the loss is adjusted or the day the insured 
barley is sold.
    (3) Any harvested production from other volunteer plants growing in 
the barley will be counted as barley on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good barley farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of barley becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
         State and county            Cancellation date  Termination date
------------------------------------------------------------------------
Kit Carson, Lincoln, Elbert, El     Sept. 30..........  Nov. 30.
 Paso, Pueblo, Las Animas
 Counties, Colorado and all
 Colorado Counties south and east
 thereof; Connecticut; Kansas;
 Massachusetts; and New York.
New Mexico except Taos County;      Sept. 30..........  Sept. 30.
 Oklahoma; Missouri; Illinois;
 Indiana; Ohio; Pennsylvania; New
 Jersey; and all states south and
 east thereof.
Arizona; California; Clark and Nye  Oct. 31...........  Nov. 30.
 Counties, Nevada.
All other Colorado Counties; all    Apr. 15...........  Apr. 15.
 other Nevada Counties; Taos
 County, New Mexico, and all other
 states.
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and August 15 preceding the cancellation 
date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.3.(4) and 21.o of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to barley during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced production guarantees for such 
acreage. The reduced guarantees will be combined with the production 
guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The unit 
consists of 150 acres, of which 50 acres were planted timely, 50 acres 
were planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest barley final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.

[[Page 85]]

    (1) For all spring-planted barley acreage (and fall-planted barley 
acreage only where insurance is not offered for spring-planted barley) 
which is planted after the final planting date but on or before 25 days 
after the final planting date, the production guarantee for each acre 
will be reduced for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the barley continues after the final planting 
date, or you are prevented from planting barley during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting barley (see subparagraph 
11.(i)), you may elect:
    (i) To plant barley during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted barley. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant barley after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for barley in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to barley on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for barley reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to barley during the crop years that were used to 
determine your yield;
unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice is 
limited to the number of barley acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for barley in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than barley, has been planted and 
is intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purposes of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of barley acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number

[[Page 86]]

which you insure as two separate optional units consisting of 50 acres 
each. If you planted 60 acres of barley on one optional unit and 40 
acres of barley on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero). If you 
report more barley acreage under this contract than is eligible for 
prevented planting coverage, we will allocate the eligible acreage to 
insured units based on the number of prevented planting acres and share 
you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to barley in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted barley in counties for 
which the Actuarial Table designates a spring final planting date, or 
the acreage reporting date for fall-planted barley in counties for which 
the Actuarial Table designates a fall final planting date only, even 
though you may elect to plant the acreage after the late planting 
period. Any acreage you report as eligible for prevented planting 
coverage which we determine is not eligible will be deleted from 
prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Adequate stand--a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days--calendar days.
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured barley must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated barley acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Later planting period--(applicable only to spring-planted barley 
acreage and fall-planted barley acreage only where insurance is not 
offered for spring-planted barley)--the period which begins the day 
after the final planting date for barley and ends twenty-five (25) days 
after the final planting date.
    (h) Latest barley final planting date--
    (1) The final planting date for spring-planted barley in all 
counties for which the Actuarial Table designates a final planting date 
for spring-planted barley only;
    (2) The final planting date for fall-planted barley in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted barley only; or
    (3) The final planting date for spring-planted barley in all 
counties for which the Actuarial Table designates final planting dates 
for both spring-planted and fall-planted barley.
    (i) Prevented planting--inability to plant barley with proper 
equipment by:
    (1) The latest barley final planting date in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant barley due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the latest barley 
final planting date in the county or within the late planting period.
    (j) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--barley planted by the final planting date, as 
established by the Actuarial Table, for barley in the county to be 
planted for harvest in the crop year.

[52 FR 28447, July 30, 1985, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 58 FR 67633, Dec. 22, 1993; 60 FR 56934, Nov. 
13, 1995]



Sec. 401.104  Winter coverage option for barley.

    The Winter Coverage Option for Barley is not available in any 
counties for the 1988 crop year.
    The provisions of the Winter Coverage Option for Barley for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

               Barley Endorsement--Winter Coverage Option

                      (This is a continuous Option)

Insured's Name__________________________________________________________

[[Page 87]]

Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________
    In consideration of the additional premium as set by the Actuarial 
Table (FCI-35), the insurance provided is attached to and made part of 
the Barley Endorsement subject to the following terms and conditions:
    1. You must have a barley endorsement.
    2. Coverage under this option for fall-planted barley will begin at 
the time of planting and will end on the spring final planting date for 
barley in the county.
    3. When there is not an adequate stand on the spring final planting 
date to produce the farm unit production guarantee, you have the option 
to:
    a. Continue to provide sufficient care for the insured barley crop 
through harvest;
    b. Replant all destroyed acreage to a spring variety of barley and 
receive a replanting payment in accordance with subsection 9.h. of the 
general crop insurance policy, and subsection 6.b. of the Barley 
Endorsement; or
    c. Accept our appraisal of the production to count, destroy the 
remaining crop on the acreage and be paid any indemnity due under the 
terms of the general crop insurance policy and the barley endorsement.
    4. In case of damage to the barley under this option, you must 
provide us with written notice prior to the spring final planting date 
for barley.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Agent's Signature_______________________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.105  Oat endorsement.

    The provisions of the Oat Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Oat Endorsement

                             1. Insured Crop

    a. The crop insured will be oats planted for harvest as grain and 
grain mixtures in which oats are the predominant grain.
    b. In addition to the oats not insurable in section 2 of the general 
crop insurance policy, we do not insure any oats:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such oats; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the oat policy for 
the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, the following will apply:
    a. Insurance attaches on each unit or part of a unit when the oats 
are planted except that, in counties with an April 15 cancellation date, 
insurance on fall-planted oats attaches on April 16 following planting 
if it is determined that there is an adequate stand on April 16 to 
produce a normal crop.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the oats;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or

[[Page 88]]

    (4) The following dates of the calendar year in which oats are 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Oat acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if you agree to pay additional premium as provided for by the 
actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for a least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured oats is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The oats are planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured oats is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and a nonirrigated practice are carried out, provided:
    (1) Oats planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice if you want to harvest the oats for silage or hay. After 
such notice is given, we will appraise the potential grain production. 
If we are unable to do so before harvest, you may harvest the crop 
provided representative samples are left for appraisal purposes. For 
purposes of this section and Section 8 of the general crop insurance 
policy the representative sample of the unharvested crop must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of oats to be counted 
(see subsection 7.b );
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature oat production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 14.0 percent; or
    (2) Mature oat production which, due to insurable causes, has a test 
weight of less than 27 pounds per bushel or, as determined by a grain 
grader licensed by the Federal Grain Inspection Service or licensed 
under the United States Warehouse Act, contains less than 80 percent 
sound oats or is smutty, garlicky, or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured oats by the price 
per bushel of U.S. No. 2 oats which do not grade smutty, garlicky, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such oats. 
The applicable price for No. 2 oats will be the local market price on 
the earlier of the day the loss is adjusted or the day the insured oats 
are sold.
    (3) Any harvested production from other volunteer plants growing in 
the oats will be counted as oats on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good oat farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of oats becomes general in 
the county and is reappraised by us;
    (b) Further damaged by an insured cause before the acreage is put to 
another use and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

[[Page 89]]



------------------------------------------------------------------------
                                                   Cancellation and
              State and county                     termination date
------------------------------------------------------------------------
Alabama; Arkansas; Florida; Georgia;         Sept. 30.
 Louisiana; Mississippi; New Mexico except
 Taos County; North Carolina; Oklahoma;
 South Carolina; Tennessee; Texas; and
 Patrick, Franklin, Pittsylvania, Campbell,
 Appomattox, Fluvanna, Buckingham, Louisa,
 Spotsylvania, Caroline, Essex, and
 Westmoreland Counties, Virginia and all
 counties east thereof.
Arizona; California except Del Norte,        Oct. 31.
 Humboldt, Lassen, Modoc, Plumas, Shasta,
 Siskiyou, and Trinity Counties.
All other California counties; Taos County,  Apr. 15.
 New Mexico; all other Virginia counties
 and all other states.
------------------------------------------------------------------------

                           9. Contract Changes

    The contract change date is December 31 preceding the cancellation 
date for counties with an April 15 cancellation date and August 15 
preceding the cancellation date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to oats during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example, assume you insure one 
unit in which you have a 100 percent share. The unit consists of 150 
acres, of which 50 acres were planted timely, 50 acres were planted 7 
days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be due to you, the production 
guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest oat final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For all spring-planted oat acreage (and fall-planted oat acreage 
only where insurance is not offered for spring-planted oats) planted 
after the final planting date, but on or before 25 days after the final 
planting date, the production guarantee for each acre will be reduced 
for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the oats continues after the final planting date, 
or you are prevented from planting oats during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevent Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting oats (see subparagraph 
11(i)), you may elect:
    (i) To plant oats during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted oats. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting

[[Page 90]]

production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant oats after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for oats in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to oats on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS based acreage for oats reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to oats during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of oats acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for oats in the county. Upon your timely 
written request, we will provide a written insurance offer for such 
acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than oats, has been planted and is 
intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of oat acres timely planted and late planted. For example, 
assume you have 100 acres eligible for prevented planting coverage in 
which you have a 100 percent (100%) share. The acreage is located in a 
single ASCS Farm Serial Number which you insure as two separate optional 
units consisting of 50 acres each. If you planted 60 acres of oats on 
one optional unit and 40 acres of oats on the second optional unit, your 
prevented planting eligible acreage would be reduced to zero (i.e., 100 
acres eligible for prevented planting coverage minus 100 acres planted 
equals zero). If you report more oat acreage under this contract than is 
eligible for prevented planting coverage, we will allocate the eligible 
acreage to insured units based on the number of prevented planting acres 
and share you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to oats in the crop 
year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted oats in counties for which 
the Actuarial Table designates a spring final planting date, or the 
acreage reporting date for fall-planted oats in counties for which the 
Actuarial Table designates a fall final planting date only, even though 
you may elect to plant the acreage after the late planting period. Any 
acreage you report as eligible for prevented planting coverage which we 
determine is not eligible will be deleted from prevented planting 
coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

[[Page 91]]

                          11. Meaning of Terms

    (a) Adequate stand-- a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days-- calendar days.
    (c) Final planting date-- the date contained in the Actuarial Table 
by which the insured oats must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice-- a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated oat acreage.
    (f) Late planted-- acreage planted during the late planting period.
    (g) Late planting period--(applicable only to spring-planted oat 
acreage and fall-planted oat acreage only where insurance is not offered 
for spring-planted oats)--the period which begins the day after the 
final planting date for oats and ends twenty-five (25) days after the 
oat final planting date.
    (h) Latest oat final planting date--
    (1) The final planting date for spring-planted oats in all counties 
for which the Actuarial Table designates a final planting date for 
spring-planted oats only;
    (2) The final planting date for fall-planted oats in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted oats only; or
    (3) The final planting date for spring-planted oats in all counties 
for which the Actuarial Table designates final planting dates for both 
spring-planted and fall-planted oats.
    (i) Prevented planting--inability to plant oats with proper 
equipment by:
    (1) The latest oat final planting date in the county; or
    (2) The end of the late planting period.

You must have been unable to plant oats due to an insured cause of loss 
which is general in the area (i.e., most producers in the surrounding 
area are unable to plant due to similar insurable causes) and which 
occurs between the sales closing date and the latest oat final planting 
date in the county or within the late planting period.
    (j) Production guarantee-- the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--oats planted by the final planting date as 
established by the Actuarial Table, for oats in the county to be planted 
for harvest in the crop year.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 58 FR 67634, Dec. 22, 1993; 60 FR 56934, Nov. 
13, 1995]



Sec. 401.106  Rye endorsement.

    The provisions of the Rye Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Rye Endorsement

                             1. Insured Crop

    a. The crop insured will be rye planted for harvest as grain.
    b. In addition to the rye not insurable in section 2 of the general 
crop insurance policy, we do not insure any rye:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such rye; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.
    c. A late planting agreement will be available for all spring-
planted rye where insurance is offered and for fall-planted rye only 
where insurance is not offered for spring-planted rye.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year

[[Page 92]]

under the terms of the experience table contained in the rye policy for 
the 1985 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
of the year in which the rye is normally harvested.

                            5. Unit Division

    Rye acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if you agree to pay additional premium as provided by the 
actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. The acreage planted to insured rye is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The rye is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured rye is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
irrigated and nonirrigated practices are carried out, provided:
    (1) Rye planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice if you want to harvest the rye for silage or hay. After 
such notice is given, we will appraise the potential grain production.
    If we are unable to do so before harvest, you may harvest the crop 
provided representative samples are left for appraisal purposes. For 
purposes of this section and section 8 of the general crop insurance 
policy the representative sample of the unharvested crop must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of rye to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature rye production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 16 percent; or
    (2) Mature rye production which, due to insurable causes, has a test 
weight of less than 52 pounds per bushel or, as determined by a grain 
grader licensed by the Federal Grain Inspection Service or licensed 
under the United States Warehouse Act, contains: more than 7 percent 
damaged kernels; more than 25 percent thin rye; or is smutty, garlicky, 
or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured rye by the price 
per bushel of U.S. No. 2 rye which does not grade smutty, garlicky, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such rye. The 
applicable price for No. 2 rye will be the local market price on the 
earlier of the day the loss is adjusted or the day the insured rye is 
sold.
    (3) Any harvested production from other volunteer plants growing in 
the rye will be counted as rye on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good rye farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and

[[Page 93]]

    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of rye becomes general in 
the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination date for all states is September 
30.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 15 preceding the cancellation date.

                          10. Meaning of Terms

    a. Adequate stand means a sufficient population of plants to produce 
at least the yield used to determine the guarantee.
    c. Harvest means combining, threshing, or cutting for hay or silage.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.107  Late planting agreement option.

    (a) General. The provisions contained in the Late Planting Agreement 
Option, are a duplication of 7 CFR part 400, subpart A, with minor 
editorial changes to provide compatibility with the General Crop 
Insurance Regulations (7 CFR part 401), and become effective when 
elected by producers on the crop insurance endorsements herein which are 
eligible for the Late Planting Agreement Option.
    (b) Availability of the Late Planting Agreement. The Late Planting 
Agreement will be offered under the provisions contained in 7 CFR part 
401, within limits prescribed by and in accordance with the Federal Crop 
Insurance Act, as amended 9 U.S.C. 1501 et seq.), only on those crops 
identified in section 4 of this subpart. All provisions of the 
applicable endorsement for the insured crop apply, except those 
provisions which are in conflict with this subpart.
    (c) Definitions. For the purposes of the Late Planting Agreement 
Option:
    (1) Final planting date means the final planting date for the 
insured crop contained in the actuarial table on file in the service 
office.
    (2) Late Planting Agreement means that agreement executed by the 
final planting date, between the FCIC and the insured whereby the 
insured elects, and FCIC provides, insurance on acreage planted for up 
to 20 days after the applicable final planting date. The production 
guarantee applicable on the final planting date will be reduced on the 
acreage planted after the final planting date by 10 percent for each 5 
days that the acreage is planted after the final planting date.
    (3) Production guarantee means the guaranteed amount of production 
under the provisions of the applicable endorsement for crop insurance 
(sometimes expressed in amounts of insurance).
    (d) Responsibilities of the insured. The insured is solely 
responsible for the completion of the Late Planting Agreement Option and 
for the accuracy of the data provided on that Agreement. The provisions 
of this subpart do not relieve the insured of any responsibilities under 
the provisions of the insurance endorsement.
    (e) Applicability to crops insured. (1) The provisions of this 
section for insuring crops for the 1995 and subsequent crop years will 
be applicable only under the following endorsements:

401.114  Canning and Processing Tomato Endorsement.
401.118  Canning and Processing Bean Endorsement.
401.123  Safflower Seed Endorsement.
401.126  Onion Endorsement.
401.129  Tobacco (guaranteed plan) Endorsement.

    (2) The Late Planting Agreement Option will be available in all 
counties in which the Corporation offers insurance on these crops unless 
limited by the actuarial table, crop endorsement, or crop endorsement 
option.
    (f) The provisions of the Late Planting Agreement are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                         Late Planting Agreement

Insured's Name__________________________________________________________
Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________

[[Page 94]]

Crop____________________________________________________________________
    Notwithstanding the provisions of section 2 of the General Crop 
Insurance Regulations (7 CFR 401) regarding the insurability of crop 
acreage initially planted after the final planting date on file in the 
service office, I elect to have insurance provided on acreage planted 
within twenty days after such date. Upon my making this election, the 
production guarantee or amount of insurance, whichever is applicable, 
will be reduced ten percent for each five days or portion thereof that 
the acreage is planted after the final planting date. Each ten percent 
reduction will be applied to the production guarantee or amount of 
insurance applicable on the final planting date.
    The premium will be computed based on the guarantee or amount of 
insurance applicable on the final planting date; therefore, no reduction 
in premium will occur as a result of my election to exercise this 
option.
    If planting continues under this Agreement after the acreage 
reporting date on file in the service office, the acreage reporting date 
will be extended to five days after the completion of planting the 
acreage to which insurance will attach under this Agreement.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's
Signature and Code Number_______________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 40056, Aug. 7, 1995]



Sec. 401.108  Prevented planting endorsement.

    (a) The provisions contained in the Prevented Planting Endorsement 
are a duplication of 7 CFR part 442, with minor editorial changes made 
to provide compatibility with the General Crop Insurance Regulations (7 
CFR part 401), and become effective when elected by producers on the 
crop insurance endorsements therein which are eligible for the Prevented 
Planting Endorsement.
    (b) The provisions of the prevented planting endorsement are as 
follows:

                   Federal Crop Insurance Corporation

                     Prevented Planting Endorsement

    A prevented planting crop insurance endorsement on the qualifying 
crop will be available to all insureds having a qualifying crop 
insurance endorsement under the provisions of this Part and who 
participate in the ASCS Acreage Reduction Program or Set-aside Program. 
This endorsement is not continuous. Application must be made annually 
for the prevented planting endorsement not later than the sales closing 
date established by the actuarial table for the applicable qualifying 
crop.

 (THIS IS AN ANNUAL ELECTION TO BE MADE BY THE INSURED BEFORE THE DATE 
                        SPECIFIED IN SECTION 10.)

    AGREEMENT TO INSURE: We will provide the insurance described in this 
endorsement in return for the premium and your compliance with all 
applicable provisions.

                        1. Applicable Provisions

    All provisions of the qualifying crop insurance endorsement and the 
prevented planting crop insurance application not in conflict with this 
endorsement are applicable.

                            2. Causes of Loss

    a. This insurance is against your being unavoidably prevented from 
planting insurable acreage to the qualifying crop or any other non-
conserving crop during the insurance period. (You are required to plant 
to another non-conserving crop during the insurance period after you 
know or should have known that it is no longer feasible to plant the 
qualifying crop and you are not prevented from planting the other non-
conserving crop by an insurable cause.) You must be prevented from 
planting by drought, flood, or other natural disaster which occurs 
within the insurance period. Limitations, exceptions, or exclusions on 
the causes insured against may be contained in the actuarial table.
    b. We will not insure against any prevention of planting:
    (1) If your failure to plant was due to a cause other than those 
listed in subsection 2.a.; or
    (2) If most producers in the surrounding area in similar 
circumstances were able to plant the qualifying crop or any other non-
conserving crop.

                      3. Acreage and Share Insured

    a. The acreage insured for each crop year will be the cultivated 
acreage in the county intended to be planted for harvest to the 
qualifying crop, in which you have a share, as reported by you or as 
determined by us, whichever we elect, and for which a premium rate is 
provided by the actuarial table.
    b. The insured share is your share as landlord, owner-operator or 
tenant in the qualifying crop if the crop had been planted at the time 
insurance attaches. However, only for the purpose of determining the 
amount of indemnity, your share will not exceed your share on the 
prevented planting date.
    c. Unless otherwise specified by the actuarial table, we will not 
insure any acreage unless you have a valid crop insurance endorsement 
for the current crop year on the

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qualifying crop and the acreage is insurable under that endorsement.
    d. You must participate in the ASCS acreage reduction or set-aside 
program for the qualifying crop in the applicable crop year on at least 
one farm which is part of the insured unit under this endorsement.

             4. Report of Acreage, Share, Type, and Practice

    You must report on our form:
    a. All the cultivated acreage intended for planting to the 
qualifying crop in the county in which you have a share;
    b. The intended type and practice; and
    c. Your share at the time of reporting.
    You must designate separately any cultivated acreage that is 
intended for planting to the qualifying crop that is not insurable. This 
report must be submitted not later than the sales closing date for the 
qualifying crop. All indemnities may be determined on the basis of 
information you submit on this report. If you do not submit this report 
by the reporting date, we may elect to determine the insured acreage and 
share or we may deny liability on the unit. Any report submitted by you 
may be revised only upon our approval.

               5. Amounts of Insurance and Coverage Levels

    a. The amount of insurance per acre is computed by multiplying the 
qualifying crop yield guarantee times the price election selected for 
the qualifying crop, times 0.35.
    b. The coverage level is the same as that selected under your crop 
insurance endorsement for the qualifying crop.

                            6. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the amount of insurance 
per acre times the premium rate, times the insured acreage, times your 
share.
    b. Interest will accrue at the same rate and terms on any unpaid 
premium balance as on the qualifying crop insurance endorsement.

                         7. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payment 
due you or from any replanting payment, or from any loan or payment due 
you under any Act of Congress or program administered by the United 
States Department of Agriculture or its agencies, and from any amount 
due you from any other United States Government Agency.

                           8. Insurance Period

    In lieu of section 7 of the general policy, prevented planting 
insurance attaches on the sales closing date of the qualifying crop 
insurance endorsement for the crop year and ends at the earlier of:
    a. Planting of the insured acreage to the qualifying crop or any 
other non-conserving crop; or
    b. The prevented planting date.

           9. Notice of Damage or Loss and Claim for Indemnity

    a. If you are prevented from planting the insured acreage and expect 
to claim an indemnity on the unit, you must give us notice in writing 
not later than five days after the prevented planting date.
    b. Any claim for indemnity must be submitted to us on our form prior 
to the time a claim is or should be filed for the qualifying crop.
    c. We will not pay any indemnity unless you:
    (1) Establish that any prevention of planting on insured acreage was 
directly caused by one or more of the insured causes during the 
insurance period for the crop year for which the indemnity is claimed; 
and
    (2) Furnish all information we require concerning the loss.
    d. The indemnity will be determined for the unit by:
    (1) Multiplying the insured acreage times the amount of insurance as 
determined in section 5 of this endorsement;
    (2) Subtracting therefrom the amount obtained by multiplying the 
planted acreage, times the amount of insurance; and
    (3) Multiplying this result by your share.
    e. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section.

           10. Life of Contract: Cancellation and Termination

    a. This endorsement will be in effect only for the crop year 
specified on the application and may not be canceled by you for such 
crop year.
    b. This endorsement may be renewed for each succeeding crop year if:
    (1) You apply and report your intended acreage for planting not 
later than the sales closing date of the qualifying crop; and
    (2) The qualifying crop insurance endorsement is not cancelled or 
terminated for the crop year.

                          11. Meaning of Terms

    For the purposes of prevented planting crop insurance:
    a. Cultivated acreage intended for planting means land that was 
ready or, except for insured causes, could have been made ready for 
planting, but does not include land:
    (1) On which a perennial forage crop is being grown or on which the 
qualifying crop or other non-conserving crop was planted

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prior to the prevented planting acreage reporting date; or
    (2) Which was not or would not have been planted to comply with any 
other United States Department of Agriculture or State programs or for 
any other reason.
    b. Farm means the land which is designated by ASCS under a single 
farm serial number.
    c. Insurable acreage means the land classified as insurable by us 
for the qualifying crop and shown as such by the actuarial table.
    d. Non-conserving crop means any crop planted for harvest as food, 
feed, or fiber.
    e. Planted acreage means the insurable acreage:
    (1) Planted to the qualifying crop or any non-conserving crop during 
the insurance period; or
    (2) Which could have been planted to the qualifying crop or any non-
conserving crop during the insurance period.
    f. Prevented planting date means the latest final spring planting 
date established by the crop actuarial tables for any insurable crop in 
the county, except tobacco, plus any extended date or final planting 
date offered under any late planting agreement option. (In areas where 
there are no spring planting dates, we will use the latest final fall 
planting date.)
    g. Qualifying crop means barley, oats, or wheat.
    h. Unit means all insurable acreage in the county which you intend 
for planting to the qualifying crop prior to the prevented planting date 
for the crop year at the time insurance first attaches under this 
endorsement for the crop year. The unit will be determined when the 
acreage is reported.
    i. Yield guarantee means the result of multiplying your yield for 
the qualifying crop by your coverage level for that crop.

[52 FR 28447, July 30, 1987, as amended at 58 FR 64874, Dec. 10, 1993]



Sec. 401.109  Hybrid sorghum seed endorsement.

    The provisions of the Hybrid Sorghum Seed Endorsement for the 1988 
through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                     Hybrid Sorghum Seed Endorsement

                             1. Insured Crop

    a. The crop insured will be female grain sorghum which is:
    (1) Planted for harvest and the production is intended for use as 
commercial seed to produce grain sorghum, forage sorghum, or sorghum 
sudan; and
    (2) Grown under a written contract executed with a seed company 
before the acreage reporting date.
    b. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured crop is grown and which 
provides for delivery of the crop under certain conditions and at a 
stipulated price will be treated as a contract under which you have a 
share in the crop.
    c. In addition to the female grain sorghum not insurable in section 
2 of the general crop insurance policy, we do not insure any female 
grain sorghum:
    (1) In rows planted with a mixture of female and male plants;
    (2) Planted for any purpose other than for commercial seed;
    (3) Grown under a contract with any seed company and that seed 
company refuses to provide us with the records we require to determine 
the dollar value per bushel of seed production for each hybrid variety; 
or
    (4) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy we will not insure against any 
loss of production due to:
    (1) The use of unadapted, incompatible, or genetically deficient 
male or female seed;
    (2) Deficiencies determined during grow-out of a sample of the 
insured seed crop, including inadequate purity or poor vigor;
    (3) Failure to follow the grower provisions of the contract executed 
with the seed company;
    (4) Frost or freeze after the date set by the actuarial table;
    (5) Inadequate germination of the hybrid seed crop even though such 
inadequate germination was a direct result of an insured cause of loss 
unless inspected and accepted by us before harvest is completed; or

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    (6) Failure to plant the male seed at a time sufficient to assure 
adequate pollination of the female plants.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    In addition to the information required in section 3 of the general 
crop insurance policy for the acreage report, you must report the crop 
type.

                            4. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per acre times the premium rate, times the insured acreage, 
times your share at the time of planting.

                           5. Insurance Period

    In addition to the provisions in section 7 of the general crop 
insurance policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when both the 
male plant seed and the female plant seed are completely planted in 
accordance with the production management practices of the seed company.
    b. The calendar date for the end of the insurance period is November 
30 of the crop year.

                            6. Unit Division

    Female grain sorghum acreage that would otherwise be one unit, as 
defined in section 17 of the general crop insurance policy, may be 
divided into more than one unit if you agree to pay additional premium 
if required by the actuarial table, and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year; and
    b. The acreage planted to insured female grain sorghum is located in 
separate legally identifiable sections, or in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The female grain sorghum is planted in such a manner that the 
planting pattern does not continue into the adjacent section or ASCS 
Farm Serial Number.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       7. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice of probable loss at least 15 days before the beginning of 
harvest if you anticipate a germination rate of less than 80 percent on 
any unit. For purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         8. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre;
    (2) Subtracting from this product the sum of:
    (a) The dollar amount obtained by multiplying seed production to 
count for each type and variety by the respective dollar value per 
bushel determined by us; plus
    (b) The dollar amount obtained by multiplying non-seed production to 
count by the local market price of such production on the earlier of the 
date the loss is adjusted or the date such production is sold; and
    (c) Multiplying this result by your share.
    b. The total production to be counted for a unit will include all 
harvested and appraised seed and all harvested and appraised non-seed 
production.
    (1) Total seed production to be counted will include:
    (a) All production delivered to and accepted by the seed company;
    (b) All production with a germination rate of 80 percent or more as 
determined by a certified seed test conducted from a cleaned sample 
taken at the time of delivery to the seed company or, if the mature 
production is appraised, at the time of appraisal; and
    (c) All harvested and appraised production which does not qualify 
under (a) or (b) above because of damage caused by uninsured causes or 
the failure to follow grower provisions of the contract executed with 
the seed company.
    (2) Total non-seed production to be counted will include all 
production that does not qualify as seed production.
    (3) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good hybrid sorghum seed farming practices;
    (b) Potential production lost due to failure to follow the grower 
provisions of the contract executed with the seed company;
    (c) Not less than the dollar amount of insurance for any acreage 
which is abandoned or put to another use without our prior written 
consent or damaged solely by an uninsured cause; and
    (d) Any unharvested production.
    c. Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:

[[Page 98]]

    (1) Not put to another use before harvest of hybrid sorghum seed 
becomes general in the county and is reappraised by us;
    (2) Further damaged by an insured cause and is reappraised by us; or
    (3) harvested.
    d. To determine the quantity of mature production, seed and non-seed 
production will be:
    (1) Adjusted .12 percent for each .1 percentage point of moisture to 
13.0 percent; and
    (2) Measured at 56 pounds of production equaling one bushel.
    e. When records of seed production provided by the seed company have 
been adjusted to a basis of 13.0 percent moisture and 56 pound test 
weight, (d) above will not apply for harvested production and the 
records of the seed company will be used to determine the amount of 
indemnity if such production records are based on the same moisture and 
test weight criteria used to determine the dollar value per bushel of 
seed production.

                  9. Cancellation and Termination Dates

    The cancellation and termination dates are April 15.

                          10. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date.

                        11. Production Reporting

    The production reporting provision contained in section 4 of the 
general crop insurance policy will not be applicable to this contract.

                12. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs (2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to the insured crop during the late planting period (see 
subparagraph (c)), and acreage you were prevented from planting (see 
subparagraph (d)). These coverages provide reduced amounts of insurance 
for such acreage. The reduced amounts of insurance will be combined with 
the amount of insurance for timely planted acreage for each unit. The 
premium amount for late planted acreage and eligible prevented planting 
acreage will be the same as that for timely planted acreage. For 
example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 200 acres of the same type and 
variety of which 150 acres are occupied by the female plant. Fifty acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the amount of insurance for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre amount of 
insurance for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (ii) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subparagraph 12(d)(1)(iii))).
    The total of the three calculations will be the amount of insurance 
for the unit. Your premium will be based on the result of multiplying 
the per acre amount of insurance for timely planted acreage by the 150 
insured crop acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date the amount of insurance for 
each acre will be reduced for each day planted after the final planting 
date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting the insured crop 
during the late planting period, the acreage reporting date will be the 
later of:
    (i) The acreage reporting date contained in the Acturial Table; or

[[Page 99]]

    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 13(o)), you may elect:
    (i) To plant the insured crop during the late planting period. The 
amount of insurance for such acreage will be determined in accordance 
with paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the amount of insurance for such 
acreage will be fifty percent (50%) of the amount of insurance for 
timely planted acres. For example, if your amount of insurance for 
timely planted acreage is 200 dollars per acre, your prevented planting 
amount of insurance would be 100 dollars per acre (200 dollars 
multiplied by 0.50). If you elect to plant the insured crop after the 
late planting period, production to count for such acreage will be 
determined in accordance with subsections 8b through e; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting amount of insurance will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) An amount of insurance equal to twenty-five percent (25%) of the 
amount of insurance for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your amount of insurance for timely planted 
acreage is 200 dollars per acre, your prevented planting amount of 
insurance would be 50 dollars per acre (200 dollars multiplied by 0.25). 
You may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate, on or before the sales closing date, on your application or on 
a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the yield upon which your amount of insurance is based.
    (3) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the insurance period for 
prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a hybrid sorghum seed crop insurance 
policy for the 1996 crop year, prevented planting coverage will begin on 
the 1996 sales closing date for the insured crop in the county. If the 
hybrid sorghum seed coverage remains in effect for the 1997 crop year 
(is not terminated or cancelled during or after the 1996 crop year, 
except the policy may have been cancelled to transfer the policy to a 
different insurance provider, if there is no lapse in coverage), 
prevented planting coverage for the 1997 crop year began on the 1996 
sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) Eligible acreage will not exceed the number of acres required to 
be grown in the current crop year under a contract executed with a seed 
company prior to the acreage reporting date.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres for which you had adequate irrigation 
facilities prior to the insured cause of loss which prevented you from 
planting.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;

[[Page 100]]

    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of acres of the insured crop timely planted and late 
planted. For example, assume you have 100 acres eligible for prevented 
planting coverage in which you have a 100 percent (100%) share. The 
acreage is located in a single FSA Farm Serial Number which you insure 
as two separate optional units consisting of 50 acres each. If you 
planted 60 acres of the insured crop on one optional unit and 40 acres 
of the insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a prevented planting amount of 
insurance the total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          13. Meaning of Terms

    (a) Adjusted average yield-- an expected yield level for a specific 
variety, in bushels per acre, determined by us and used to establish the 
value of seed production for the purpose of determining the amount of 
indemnity.
    (b) Amount of insurance-- the number of dollars per acre that 
results from subtracting the minimum payment (in bushels) provided by 
the seed company from the county yield contained in the Actuarial Table 
for the selected coverage level and multiplying the result by the 
selected price election. If the minimum payment provided by the seed 
company is stated as a dollar amount, it will be converted to a bushel 
equivalent by dividing the dollar amount by the selected price election.
    (c) Commercial seed-- the offspring produced by crossing two 
individual seeds of different genetic character. The resultant offspring 
is the product intended for use on a commercial basis by an agricultural 
producer to produce a field crop type for grain sorghum, forage sorghum, 
or sorghum sudan.
    (d) Days-- calendar days.
    (e) Dollar value per bushel-- the value determined by dividing the 
amount of insurance per acre for timely planted acreage by the result of 
multiplying the adjusted average yield by the coverage level percentage 
you elect.
    (f) Female plants-- the plants grown for the purpose of producing 
commercial seed and from which the commercial seed is harvested.
    (g) Final planting date-- the date contained in the Actuarial Table 
by which the insured crop must initially be planted in order to be 
insured for the full amount of insurance.
    (h) Grow-out-- the growing of a sample of the insured crop to 
determine progeny characteristics.
    (i) Harvest-- combining, threshing, or picking of the seed and non-
seed production on any acreage.

[[Page 101]]

    (j) Inadequate germination-- less than 80 percent of the seed 
produced from female plants germinated as determined by a warm test 
using clean seed.
    (k) Irrigated practice-- a method of producing a crop by which water 
artificially applied during the growing season by appropriate systems, 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated amount of insurance on the irrigated insured crop acreage.
    (l) Late planted-- acreage planted during the late planting period.
    (m) Late planting period-- the period which begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (n) Male plants-- the plants grown for the purpose of pollinating 
female plants.
    (o) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (p) Seed company-- a company which contracts with a grower to 
produce or grow plants for the production of hybrid seed.
    (q) Timely planted-- the insured crop planted by the final planting 
date, as established by the Acturial Table, for the insured crop in the 
county to be planted for harvest in the crop year.
    (r) Type-- grain sorghum, forage sorghum, or sorghum sudan.
    (s) Variety-- the seed produced from a pair of genetically 
identifiable parents.

[52 FR 28447, July 30, 1987, as amended at 58 FR 67635, Dec. 22, 1993; 
60 FR 62720, 62721, Dec. 7, 1995; 62 FR 65318, Dec. 12, 1997]



Sec. 401.110  Almond endorsement.

    The provisions of the Almond Crop Insurance Endorsement for the 1988 
through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Almond Endorsement

                             1. Insured Crop

    a. The crop insured will be almonds.
    b. In addition to the almonds not insurable in section 2 of the 
general crop insurance policy, we do not insure any almonds:
    (1) Which are not irrigated; or
    (2) On which the trees on the sales closing date have not reached 
the seventh growing season after being set out unless we agree in 
writing to insure such acreage.
    c. Insurance may attach only by written agreement with us on any 
acreage with less than 90 percent of a stand, based on the original 
planting pattern.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Wildlife;
    d. Earthquake;
    e. Volcanic eruption;
    f. Direct Mediterranean Fruit Fly damage; or
    g. Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

       3. Report of Acreage, Share, and Practice (Acreage Report)

    The date by which you must annually submit the acreage report 
described in section 3 of the general crop insurance policy is January 
15.

                            4. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the almond policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           5. Insurance Period

    Insurance attaches for each crop year on January 1. The calendar 
date for the end of the insurance period is November 30 of the calendar 
year in which the almonds are normally harvested.

[[Page 102]]

                            6. Unit Division

    Almond acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium if required by 
the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of acreage and harvested 
production for at least the previous crop year and production reports 
based on those records are filed to obtain an insurance guarantee; and
    b. The acreage of insured almonds is located on non-contiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of almonds to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (total meat pounds) to be counted for a unit 
will include all harvested and appraised production.
    (1) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good almond farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any appraised production on unharvested acreage.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and is reappraised by us; or
    (b) Harvested.
    (3) Almonds which cannot be marketed due to insurable causes will 
not be considered production.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are December 31.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the almonds which causes such almonds to be considered 
unmarketable and will not include unmarketability of such almonds as a 
result of a quarantine, boycott, or refusal to accept the almonds by any 
entity without regard to the actual physical damage to such almonds.
    b. Harvest means the removal of the almonds from the orchard.
    c. Non-contiguous Land means land which is not touching at any 
point, except that land which is separated by only a public or private 
right-of-way will be considered contiguous.
    d. Total Meat Pounds means the total pounds of good almond meats 
(whole, chipped and broken, and inshell meats) and rejects, except those 
resulting from insurable causes as determined by us. Unshelled almonds 
will be converted to meat pounds.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989; 62 
FR 25108, May 8, 1997]



Sec. 401.111  Corn endorsement.

    The provisions of the Corn Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Corn Endorsement

                             1. Insured Crop

    a. The crop insured will be field corn (``corn'') planted for 
harvest as grain (or silage if a silage amendment is obtained).
    b. In addition to the corn not insurable under section 2 of the 
general crop insurance policy, we do not insure any corn:
    (1) On which the corn was destroyed or put to another use for the 
purpose of conforming with any other program administered by the United 
States Department of Agriculture;
    (2) Unless the acreage is planted in rows far enough apart to permit 
mechanical cultivation; or
    (3) Planted for silage unless a silage amendment has been obtained.
    c. If the actuarial table for the county provides a ``silage only 
guarantee'', coverage is only available with the completion of the 
silage amendment.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;

[[Page 103]]

    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the corn policy for 
the 1984 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply;
    (5) Participation must be continuous from prior to 1984.

                           4. Insurance Period

    The calendar date for the end of the insurance period is the date 
immediately following planting as follows:
    (a) Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, Karnes, 
Goliad, Victoria, and Jackson Counties, Texas, and all Texas counties 
lying south thereof--September 30;
    (b) Clark, Cowlitz, Grays Harbor, Island, Jefferson, King, Kitsap, 
Lewis, Pierce, Skagit, Snohomish, Thurston, Wahkiakum, and Whatcom 
Counties, Washington--October 31;
    (c) All other counties where our actuarial table shows:
    (a) only a silage guarantee; or
    (b) both a grain and a silage guarantee on any acreage of corn 
harvested for silage--September 30;
    (d) All other counties and states--December 10.

                            5. Unit Division

    Corn acreage that would otherwise be one unit, as defined in section 
17 of the general crop insured policy, may be divided into more than one 
unit if you agree to pay additional premium as provided for by the 
actuarial table and if for each proposed unit you maintain written 
verifiable records of planted acreage and harvested production for at 
least the previous crop year. Production reports by unit based on those 
records should be filed as early as possible but must be filed by no 
later than the date required by subsection 4.d. of the general crop 
insurance policy and either;
    a. Acreage planted to the insurance corn crop is located in 
separate, legally identifiable sections (except in Florida) or, in the 
absence of section descriptions (and in Florida) the land is identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The corn is planted in such a manner that the planting pattern 
does not continue into an adjacent section or ASCS Farm Serial Number; 
or
    b. Acreage planted to the insured corn is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and non-irrigated practices are carried out, provided:
    (1) Corn planted on the irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insured corn are 
part of the irrigated unit. The production from the total unit, both 
irrigated and nonirrigated, is combined to determine your yield for the 
purpose of determining the guarantee for the unit.); and
    (2) Planting, fertilizing, and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indenmity will be determined for each grain unit by:
    (1) Multiplying the insured grain acreage by the production 
guarantee;
    (2) Subtracting therefrom the total production of grain to be 
counted (See subsection 7.d.);
    (3) Multiplying this product by the grain price election; and
    (4) Multiplying this result by your share.

[[Page 104]]

    b. When the actuarial table provides a bushel guarantee only or a 
bushel and tonnage guarantee (and you do not have a timely signed silage 
amendment) all appraisals will be made in bushels.
    c. When the actuarial table provides a tonnage guarantee, and a corn 
silage amendment is in effect, the indemnity will be determined in 
accordance with the procedure shown in the corn silage amendment.
    d. The total production (bushels) to be counted for a unit with a 
grain guarantee will include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature grain which otherwise is not eligible for quality 
adjustment will be reduced .12 percent for each .1 percentage point of 
moisture in excess of 15.5 through 30.0 percent and .2 percent for each 
.1 percentage point of moisture from 30.1 through 40.0 percent; or
    (b) Mature grain which, due to insurable causes, has a moisture over 
40 percent; test weight below 49 pounds per bushel; or kernel damage 
more than 10 percent as determined by a grain grader licensed by the 
Federal Grain Inspection Service or licensed under the United States 
Warehouse Act, will be adjusted by:
    (1) Dividing the value per bushel of such corn by the price per 
bushel of U.S. No. 2 corn at 15.5% moisture; and
    (2) Multiplying the result by the number of bushels of such corn.
    The applicable price for No. 2 corn will be the local market price 
on the earlier of the day the loss is adjusted or the day such corn was 
sold.
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good corn farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Appraised production on unharvested acreage;
    (d) For any acreage of corn reported as grain and harvested as 
silage, indemnity calculations will be converted to a bushel basis at 
the conversion rate shown in the form FCI-35 for silage harvested or 
appraised from a grain variety.
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of corn becomes general in 
the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    e. A replanting payment is available under this endorsement. The 
replanting payment will not exceed 8 bushels multiplied by the price 
election, multiplied by your share. When the crop is replanted by a 
practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replanting payment.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and
              State and county                    termination dates
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,    February 15.
 Wilson, Karnes, Goliad, Victoria, and
 Jackson Counties, Texas, and all Texas
 counties lying south thereof.
Alabama: Arizona; Arkansas; California;      March 31.
 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, 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 all other       April 15.
 states.
------------------------------------------------------------------------

                          9. Contract changes.

    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to corn during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example, assume you insure one 
unit in which you have a 100 percent (100%) share. The unit consists of 
150 acres, of which 50 acres were planted timely, 50 acres were planted 
7 days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be

[[Page 105]]

due to you, the production guarantee for the unit will be computed as 
follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph (11.(g)). This notice must be given no later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the corn continues after the final planting date, 
or you are prevented from planting corn during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting corn (see subparagraph 
11.(g)), you may elect:
    (i) To plant corn during the late planting period. The production 
guarantee for such acreage will be determined in accordance with section 
10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 70 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 35 bushels per acre (70 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant corn after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 70 bushels per acre, 
your prevented planting production guarantee would be equivalent to 35 
bushels per acre (70 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.d.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for corn.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:(i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to corn on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for corn reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to corn during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of corn acres properly prepared to carry out an 
irrigation practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage

[[Page 106]]

for such acreage prior to the sales closing date for corn in the county. 
Upon your timely written request, we will provide a written insurance 
offer for such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than corn, has been planted and is 
intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and will be 
reduced by the number of corn acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of corn on one optional unit and 40 acres of corn on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero). If you report more corn acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible acreage to insured units based on the number of 
prevented planting acres and share you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to corn in the crop 
year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured corn must initially be planted in order to be 
insured for the full production guarantee.
    (c) Harvest--completion of combining or picking corn for grain on 
any acreage.
    (d) Irrigated practice-- a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated corn acreage.
    (e) Late planted-- acreage planted during the late planting period.
    (f) Late planting period-- the period which begins the day after the 
final planting date for corn and ends twenty-five (25) days after the 
final planting date.
    (g) Prevented planting-- inability to plant corn with proper 
equipment by:
    (1) The final planting date for corn in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant corn due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (h) Production guarantee-- the number of bushels (tons if the Corn 
Silage Option is in effect) determined by multiplying the approved yield 
per acre by the coverage level percentage you elect.
    (i) Replanting-- performing the cultural practices necessary to 
replace the corn seed, and replacing the seed in the insured acreage 
with the expectation of growing a successful crop.
    (j) Silage-- corn harvested by severing the stalk from the land and 
chopping the stalk and the ear for the purpose of livestock feed.
    (k) Timely planted-- corn planted by the final planting date, as 
established by the Actuarial Table, for corn in the county to be planted 
for harvest in the crop year.

[52 FR 45143, Nov. 25, 1987, as amended at 53 FR 4589, Feb. 17, 1988; 54 
FR 20504, May 12, 1989; 56 FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 
1992; 58 FR 3205, Jan. 8, 1993; 58 FR 67637, Dec. 22, 1993; 60 FR 56934, 
Nov. 13, 1995]



Sec. 401.112  Corn silage option.

    The provisions of the Corn Silage Crop Insurance Option to the Corn 
Crop Insurance Endorsement for the 1988 through 1994 crop years are as 
follows:

[[Page 107]]

                   Federal Crop Insurance Corporation

                           Corn Silage Option

Insured's Name                           Contract No.
------------------------------------------------------------------------
Address                                  Crop Year
                                        --------------------------------
                                         Identification No.
                                        --------------------------------
                                         SSN      Tax
------------------------------------------------------------------------

    Upon our approval, this amendment is applicable for the 1988 through 
1994 crop years.
    1. You must have a corn endorsement in force. The corn endorsement 
provides guaranteed protection on a bushel basis for corn harvested as 
grain only.
    2. All provisions of the corn endorsement not in conflict with this 
option remain applicable. If a conflict exists between the terms of the 
endorsement and this silage option, the terms of the silage option 
apply.
    3. A properly executed Corn Silage Option must be submitted to us on 
or before the sales closing date if you wish to insure your corn as 
silage under this option.
    4. The silage option remains in force and need not be renewed 
annually. If you desire to cancel the option, you must do so in writing 
by the cancellation date shown in the actuarial table. The silage option 
is mandatory if required by the actuarial table.
    5. Failure to submit a properly executed silage option by the sales 
closing date will result in all your corn being insured under the terms 
and conditions of the corn endorsement.
    6. All production and appraisals under this option will be in tons. 
When the corn is harvested as silage and a grain appraisal is made 
concurrently with a silage appraisal, and the grain/silage appraisal is 
less than 4.5 bushels per ton, the production will be reduced 1 percent 
for each 1 tenth of a bushel below 4.5 bushels. The representative 
sample required by subsection 8.a(3) of the general policy must be at 
least 10 feet wide and the entire length of the field. If a 
representative sample is not left unharvested, no reduction for 
harvested silage will be allowed.
    7. If the actuarial table shows both a grain and silage guarantee, 
and the normal silage harvesting period has ended, we may increase any 
tonnage appraisal or any harvested silage production to 65 percent 
moisture equivalent to reflect the normal moisture content of silage 
harvested during the normal silage harvesting period.
    8. A replanting payment will be available in accordance with 
subsection 9.h. of the general policy if it is practical to replant. The 
payment will not exceed 1 ton, multiplied by the price election, 
multiplied by your share.
    Your premium rate under this option is that specified for silage 
corn on the actuarial table. If only one premium rate is shown by the 
actuarial table it will be applied to both grain and silage. Mixtures of 
corn and grain sorghum are insurable for silage only if the sorghum does 
not exceed 20 percent of the stand.
    The end of the insurance period under the silage option is September 
30 for the crop year. The silage option is not available in corn 
counties which offer coverage only on a bushel basis.

Insured's Signature                         (Date)
 
------------------------------------------------------------------------
Agent's Signature                           (Date)
 
------------------------------------------------------------------------
Approved by Company                         (Date)
------------------------------------------------------------------------


[52 FR 45146, Nov. 25, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.113  Grain sorghum endorsement.

    The provisions of the Grain Sorghum Crop Insurance Endorsement for 
the 1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                        Grain Sorghum Endorsement

                             1. Insured Crop

    a. The crop insured will be combine type hybrid grain sorghum 
planted for harvest as grain.
    b. In addition to the grain sorghum not insurable in section 2 of 
the general crop insurance policy, we do not insure any grain sorghum, 
which was destroyed or put to another use for the purpose of conforming 
with any other program administered by the United States Department of 
Agriculture.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.

[[Page 108]]

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the grain sorghum 
policy in effect for the 1984 crop year, you will continue to receive 
the benefit of the reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous from at least prior to the 1984 
crop year.

                           4. Insurance Period

    The calendar date for the end of the insurance period is the date 
immediately following planting as follows: (a) Val Verde, Edwards, Kerr, 
Kendall, Bexar, Wilson, Karnes, Goliad, Victoria, and Jackson Counties, 
Texas, and all Texas counties south thereof: September 30. (b) All other 
Texas counties and all other States: December 10.

                            5. Unit Division

    Grain sorghum acreage that would otherwise be one unit, as defined 
in section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written, verifiable records of planted acreage and harvested production 
for at least the previous crop year. Production reports by unit based on 
those records should be filed as early as possible but must be filed by 
no later than the date required by subsection 4.d. of the general crop 
insurance policy and either;
    a. Acreage planted to the insured grain sorghum crop is located in 
separate, legally identifiable sections (except in Florida) or, in the 
absence of section descriptions (and in Florida) the land is identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The grain sorghum is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured grain sorghum is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both irrigated and non-irrigated practices are carried out, 
provided:
    (1) Grain sorghum planted on the irrigated acreage does not continue 
into non-irrigated acreage in the same rows or planting pattern (Non-
irrigated corners of a center pivot irrigation system planted to 
insurable grain sorghum are part of the irrigated unit. The production 
from the total unit, both irrigated and nonirrigated, is combined to 
determine the unit yield for the purpose of determining the guarantee 
for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For the purpose of section 8 of the general crop insurance policy, 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of grain sorghum to 
be counted (see subsection 7.d.);
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production which may be adjusted for moisture and 
quality as follows:
    (a) Mature grain sorghum production which is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 14.0 percent; or
    (b) Mature grain sorghum production which, due to insurable causes 
has a test weight of less than 51 pounds per bushel or contains more 
than 15.0 percent kernel damage, as determined by a grain grader 
licensed by the Federal Grain Inspection Service or licensed under the 
United States Warehouse Act, will be adjusted by:
    (i) Dividing the value per bushel of the insured grain sorghum by 
the price per bushel of U.S. No. 2 grain sorghum; and
    (ii) Multiplying the result by the number of bushels of insured 
grain sorghum.
    The applicable price for No. 2 grain sorghum will be the local 
market price on the

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earlier of the day the loss is adjusted or the day the insured grain 
sorghum is sold; and
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good grain sorghum farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Appraised production on unharvested aceage;
    (d) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of grain sorghum becomes 
general in the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    c. A replanting payment is available under this endorsement. The 
replanting payment per acre will not exceed 7 bushels multiplied by the 
price election, multiplied by your share. When the crop is replanted by 
a practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replant payment.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and
              State and County                    termination dates
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,    Feb. 15.
 Wilson, Karnes, Goliad, Victoria, and
 Jackson Counties, Texas, and all Texas
 counties south thereof.
Alabama; Arizona; Arkansas; California;      Mar. 31.
 Florida; Georgia; Louisiana; Mississippi;
 Nevada; North Carolina; South Carolina;
 and El Paso, Hudspeth, Culberson, Reeves,
 Loving, Winkler, Ector, Uptown, Reagan,
 Sterling, Coke, Tom Green, Concho,
 McCulloch, San Saba, Mills, Hamilton,
 Bosque, Johnson, Tarrant, Wise, 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.
All other Texas counties and all other       Apr. 15.
 States.
------------------------------------------------------------------------

                          9. Contract changes.

    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to grain sorghum during the late planting period (see 
subparagraph (c)), and acreage you were prevented from planting (see 
subparagraph (d)). These coverages provide reduced production guarantees 
for such acreage. The reduced guarantees will be combined with the 
production guarantee for timely planted acreage for each unit. The 
premium amount for late planted acreage and eligible prevented planting 
acreage will be the same as that for timely planted acreage. For 
example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 150 acres, of which 50 acres were 
planted timely, 50 acres were planted 7 days after the final planting 
date (late planted), and 50 acres are unplanted and eligible for 
prevented planting coverage. To calculate the amount of any indemnity 
which may be due to you, the production guarantee for the unit will be 
computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(g)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and

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    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the grain sorghum continues after the final 
planting date, or you are prevented from planting grain sorghum during 
the late planting period, the acreage reporting date will be the later 
of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting grain sorghum (see 
subparagraph 11.(g)), you may elect:
    (i) To plant grain sorghum during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 30 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 15 bushels per acre (30 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant grain sorghum after the late planting period. The 
production guarantee for such acreage will be fifty percent (0.50) of 
the production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for grain sorghum.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to grain sorghum on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for grain sorghum reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to grain sorghum during the crop years that were used 
to determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of grain sorghum acres properly prepared to 
carry out an irrigation practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit, whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for grain sorghum in the county. Upon 
your timely written request, we will provide a written insurance offer 
for such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than grain sorghum, has been 
planted and is intended for harvest, or has been harvested in the same 
crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of grain sorghum acres timely planted and late planted. 
For example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent share. The acreage is located 
in a single ASCS Farm Serial Number which you insure as two separate 
optional units consisting of 50 acres each. If you planted 60 acres of 
grain sorghum on one optional unit and 40 acres of grain sorghum on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more grain 
sorghum acreage under this contract than is eligible for prevented 
planting coverage, we will allocate the eligible acreage to insured 
units based on the number of prevented planting acres and share you 
reported for each unit.

[[Page 111]]

    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to grain sorghum in 
the crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured grain sorghum must initially be planted in order to 
be insured for the full production guarantee.
    (c) Harvest--completion of combining or threshing grain sorghum for 
grain on any acreage.
    (d) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated grain sorghum 
acreage.
    (e) Late planted--acreage planted during the late planting period.
    (f) Late planting period--the period which begins the day after the 
final planting date for grain sorghum and ends twenty-five (25) days 
after the final planting date.
    (g) Prevented planting--inability to plant grain sorghum with proper 
equipment by:
    (1) The final planting date for grain sorghum in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant grain sorghum due to an insured 
cause of loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (h) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (i) Replanting--performing the cultural practices necessary to 
replace the grain sorghum seed, and replacing the seed in the insured 
acreage with the expectation of growing a successful crop.
    (j) Timely planted--grain sorghum planted by the final planting 
date, as established by the Actuarial Table, for grain sorghum in the 
county to be planted for harvest in the crop year.

[52 FR 45151, Nov. 25, 1987, as amended at 54 FR 20504, May 12, 1989; 56 
FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 1992; 58 FR 3207, Jan. 8, 
1993; 58 FR 67638, Dec. 22, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.114  Canning and processing tomato endorsement.

    The provisions of the Canning and Processing Tomato Crop Insurance 
Endorsement for the 1988 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                Canning And Processing Tomato Endorsement

                             1. Insured Crop

    a. The crop insured will be tomatoes which are planted for harvest 
as canning or processing tomatoes.
    b. In addition to the tomatoes not insurable in section 2 of the 
general crop insurance policy, we do not insure any tomatoes:
    (1) Which are not grown under a written contract with a canner or 
processor or excluded from the canner or processor contract for, or 
during, the crop year. (Prior to the date you report your acreage, the 
contract must be completed to the extent that a binding agreement exists 
requiring the insured to deliver a stated amount of tomatoes and 
requiring the processor to accept that amount.); or
    (2) Except in California, that are grown on acreage where tomatoes 
have been grown in either of the two previous crop years.
    c. A late planting option will be available on tomatoes.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;

[[Page 112]]

    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the general crop insurance policy, we will not insure any 
loss of production due to failure to market the tomatoes unless such 
failure is due to actual physical damage from a cause specified in 
subsection 2.a.

                        3. Production Guarantees

    a. The production guarantees per acre are progressive by stages and 
increase, at specified intervals, to the final stage production 
guarantee. The stages and production guarantees are:
    (1) First stage is from planning until first fruit set, the first 
stage production guarantee is 50% of the final stage production 
guarantee;
    (2) Second stage is from first fruit set until harvest, the second 
stage production guarantee is 80% of the final stage production 
guarantee; and
    (3) Third stage (final stage) is harvested acreage, the third stage 
production guarantee is the final stage guarantee.
    b. Any acreage of tomatoes damaged to the extent that growers in the 
area would not further care for the tomatoes, will be deemed to have 
been destroyed even though the tomatoes continue to be cared for. The 
production for such acreage will be the guarantee for the stage (either 
first or second) in which such damage occurs.

                            4. Annual Premium

    a. The annual premium amount is computed by multiplying the final 
stage production guarantee times the price election, times the premium 
rate, times the insured acreage, times your share at the time of 
planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the experience table contained in the canning and 
processing tomato policy for the 1984 crop year, you will continue to 
receive the benefit of the reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           5. Insurance Period

    The date the canner or processor no longer accepts production under 
the contract which covers the insured acreage planted for the contract 
year is added to Section 7 of the general crop insurance policy as one 
of the events which designates the end of the insurance period. The 
calendar date for the end of the insurance period in California is 
October 20 of the calendar year in which the tomatoes are normally 
harvested (October 10 in all other States).

                            6. Unit Division

    Tomato acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium if required by 
the actuarial table and if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year; and either
    a. Acreage planted to insured tomatoes is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage can be easily determined; and
    (2) The tomatoes are planted in such a manner that the planting 
pattern does not continue into the adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured tomatoes is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both an irrigated and nonirrigated practice are carried out, 
provided:
    (1) Tomatoes planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       7. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, if you are going to claim an indemnity on any 
unit, you must give us notice within 72 hours:
    (1) Of when harvest would normally start if any acreage on the unit 
is not to be harvested;

[[Page 113]]

    (2) Of discontinuance of harvest on the unit; or
    (3) If you are unable to deliver production to the canner or 
processor.
    b. The tomato vines on any hard-harvested acreage must not be 
destroyed until inspected by us if an indemnity is to be claimed on the 
unit.
    c. For the purpose of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         8. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of tomatoes to be 
counted (see subsection 8.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (tons) to be counted for a unit will 
include:
    (1) All harvested tomato production marketed and any tomato 
production which does not meet the quality requirements of the canner or 
processor contract due to not being timely marketed;
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good tomato farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
put to another use without our prior written consent, or damaged solely 
by an uninsured cause;
    (c) For acreage which does not qualify for the final period 
guarantee, any amount of appraised and harvested production in excess of 
the difference between the final period guarantee and the guarantee 
applicable to such acreage;
    (d) Production lost due to uninsured causes; and
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of tomatoes becomes 
general in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.

                  9. Cancellation and Termination Dates

    The cancellation and termination dates are February 15 in California 
and April 15 in all other states.

                          10. Contract Changes

    The date by which contract changes will be available in your service 
office is November 30 (December 17 for the 1998 crop year only) 
preceding the cancellation date for counties with a February 15 
cancellation date and December 31 preceding the cancellation date for 
all other counties.

                          11. Meaning of Terms

    a. First fruit set means the reproductive stage of the plant when 
30% of the plants have produced a fruit that has reached a minimum of 
one inch in diameter.
    b. Harvest means severance of tomatoes from the vines for the 
purpose of delivery to a canner or processor.

[52 FR 45599, Dec. 1, 1987, as amended at 54 FR 20504, May 12, 1989; 62 
FR 54342, Oct. 20, 1997; 62 FR 63633, Dec. 2, 1997]



Sec. 401.115  Texas citrus endorsement.

    The provisions of the Texas Citrus Crop Insurance Endorsement for 
the 1989 and subsequent crop year are as follows:

                   Federal Crop Insurance Corporation

                        Texas Citrus Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following citrus types you 
elect:
    Type I  Early and mid-season oranges;
    Type II  Late oranges (including temples);
    Type III  Grapefruit, except types IV and V;
    Type IV  Rio Red and Star Ruby grapefruit; or
    Type V  Ruby Red grapefruit.
    b. In addition to the citrus not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus:
    (1) Which is not irrigated;
    (2) If the producing trees have not produced an average yield of 
three tons of oranges or grapefruit per acre the previous year unless 
the trees are inspected by us and we agree, in writing, to the amount of 
insurance coverage;
    (3) If acceptable production records of at least the previous crop 
year are not available; or
    (4) Which we inspect and consider not acceptable.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Freeze;
    (2) Frost;
    (3) Excess moisture;

[[Page 114]]

    (4) Hail;
    (5) Fire;
    (6) Tornado;
    (7) Excess wind;
    (8) Wildlife;
    (9) Failure of the irrigation water supply; or
    (10) Direct Mediterranean Fruit Fly damage; unless those causes are 
excepted, excluded, or limited by the actuarial table or section 9 of 
the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
loss of production due to fire if weeds and other forms of undergrowth 
have not been controlled or tree pruning debris has not been removed 
from the grove. We also specifically do not insure against the inability 
to market the fruit as a direct result of quarantine, boycott, or 
refusal of any entity to accept production unless the refused production 
has actual physical damage due to a cause specified in subsection 2.a.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. The date by which you must annually submit the acreage report is 
June 30 of the calendar year the insured crop normally blooms.

            4. Production Reporting and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees; and
    (2) The number of trees topped, hedged, or pruned.
    b. In lieu of the method described in section 4 of the general crop 
insurance policy to determine the yield used to compute your production 
guarantee, your second stage (final stage) production guarantee will be 
based on our appraisal of current crop potential. This appraisal will be 
performed on or before insurance attaches.
    c. The production guarantees per acre are progressive by stages and 
increase, at specified intervals, to the final stage production 
guarantees. The stages and production guarantees are:
    (1) First stage is from the date insurance attaches until May 1 of 
the calendar year of normal bloom, the production guarantee will be:
    (a) Forty percent (40%) of the yield used to determine the previous 
year's production guarantee multiplied by the percentage of yield 
(coverage level) for the current crop year if you had insurance for the 
previous crop year; or
    (b) Forty percent (40%) of your production for the previous year per 
acre multiplied by the percentage of yield (coverage level) for the 
current crop year if you did not have insurance for the previous crop 
year.
    (2) Second stage (final stage) is from May 1 of the calendar year of 
normal bloom until the end of the insurance period, the production 
guarantee is the final stage production guarantee.
    d. Any acreage of citrus damaged to the extent that growers in the 
area would not further care for the citrus, will be deemed to have been 
destroyed even though the citrus continues to be cared for. The 
production guarantee for such acreage will be the guarantee for the 
stage in which such damage occurs.

                               5. Premium

    The premium amount is computed:
    a. For citrus damaged in the first stage to the extent that growers 
in the area would not further care for the citrus, by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.
    b. If subsection 5.a. does not apply, by multiplying the second 
stage production guarantee times the price election, times the premium 
rate, times the insured acreage, times your share on the date insurance 
attaches.

                           6. Insurance Period

    In lieu of section 7 of the General Crop Insurance Policy, insurance 
attaches on December 1 prior to the calendar year of normal bloom except 
if we accept your application for insurance after November 30, insurance 
will attach on the thirtieth (30th) day after you sign and submit a 
properly completed application. Insurance will not attach to any acreage 
inspected by us and determined to be unacceptable. Insurance ends on 
each unit at the earliest of:
    (1) Total destruction of the citrus;
    (2) Harvest;
    (3) The date harvest would normally start on any acreage which will 
not be harvested;
    (4) Final adjustment of a loss; or
    (5) May 31 of the calendar year following the normal year of bloom.

                            7. Unit Division

    a. Citrus acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if you agree to pay 
additional premium

[[Page 115]]

as required by the actuarial table and if, for each proposed unit, you 
maintain written, verifiable records of planted acreage and harvested 
production for at least the previous crop year. The acreage planted to 
insured citrus must be located in separate legally identifiable 
sections, the boundaries of the sections must be clearly identified, the 
insured acreage must be easily determined, and each unit must be non-
contiguous. If you have a loss on any unit, production records for all 
harvested units must be provided. Production that is commingled between 
optional units will cause those units to be combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, if the insured citrus is damaged by excess moisture, 
you must give us notice of such damage within seventy-two (72) hours of 
occurrence.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee for 
the applicable stage (see subsection 4.c.);
    (2) Subtracting therefrom the total production of citrus to be 
counted (see subsection 9.e.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production to be counted for a unit will include all 
harvested and appraised production.
    (1) Any citrus production which is not marketed as fresh fruit and, 
due to insurable causes, does not contain 120 or more gallons of juice 
per ton, will be adjusted by:
    (a) Dividing the gallons of juice per ton obtained from the damaged 
citrus by 120; and
    (b) Multiplying the result by the number of tons of such citrus. If 
records of actual juice content are not available, an average juice 
content will be used.
    (2) Where the actuarial table provides for, and you elect the fresh 
fruit option, citrus production which is not marketable as fresh fruit 
due to insurable causes will be adjusted by:
    (a) Dividing the value per ton of the damaged citrus by the price of 
undamaged citrus; and
    (b) Multiplying the result by the number of tons of such citrus.
    The applicable price for undamaged citrus will be the local market 
price the week before damage occurred, or the contract price if the 
contract was entered into between the producer and buyer before damage 
occurred.
    (3) Any production will be considered marketed or marketable as 
fresh fruit unless due to insurable causes, such production was not 
marketed as fresh fruit.
    (4) In the absence of acceptable records to determine the 
disposition of harvested citrus, we may elect to determine such 
disposition and the amount of such production to be counted for the 
unit.
    (5) Any citrus on the ground which is not picked up and marketed 
will be considered lost if the damage was due to an insured cause.
    (6) Appraised production to be counted will include:
    (a) Unharvested production, and potential production lost due to 
uninsured causes and failure to follow recognized good citrus farming 
practices; and
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent.
    (7) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and is reappraised by us; or
    (b) Harvested.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are November 30 prior to the 
calendar year of the normal bloom.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the period beginning with the date insurance 
attaches to the citrus crop and extending through normal harvest time, 
and will be designated by the calendar year following the year in which 
the bloom is normally set.
    b. Direct mediterranean fruit fly damage means the actual physical 
damage to the citrus on the unit which causes such citrus to be 
unmarketable and will not include inability to market such citrus as a 
direct result of a quarantine, boycott, or refusal to accept the citrus 
by any entity without regard to actual physical damage to such citrus.
    c. Excess moisture means that more than 20 inches of precipitation 
have fallen on the grove within a 72 hour period.
    d. Excess wind means a natural movement of air which has sustained 
speeds in excess of 58 miles per hour recorded at the U.S. Weather 
Service reporting station nearest to the crop at the time of crop 
damage.
    e. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit.

[[Page 116]]

    f. Frost means the condition that exists when the air temperature 
around the tree falls to 32 degrees Fahrenheit or below.
    g. Harvest means the severance of mature citrus from the tree either 
by pulling, picking, or by mechanical or chemical means, or picking up 
the marketable fruit from the ground.
    h. Hedged means to cut back the side branches for better or more 
fruitful growth.
    i. Non-contiguous land means land which is not touching at any 
point. Land which is separated by only a public or private right-of-way 
will be considered to be touching (contiguous).
    j. Topped means to cut back the upper branches for better or more 
fruitful growth.

[53 FR 6966, Mar. 4, 1988]



Sec. 401.116  Flaxseed endorsement.

    The provisions of the Flaxseed Crop Insurance Endorsement for the 
1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                          Flaxseed Endorsement

                             1. Insured Crop

    a. The crop insured will be flaxseed planted for harvest as seed.
    b. In addition to the flaxseed not insurable in section 2 of the 
general crop insurance policy, we do not insure any flaxseed if the seed 
has not been mechanically incorporated into the soil in rows unless 
another method of planting is specifically allowed by the actuarial 
table.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;
unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table in the flax policy in effect for 
the 1984 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
following planting.

                            5. Unit Division

    Flaxseed acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided by 
the actuarial table and if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year and either;
    a. Acreage planted to the insured flaxseed is located in separate, 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The flaxseed is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured flaxseed is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both irrigated and nonirrigated practices are carried out, 
provided:
    (1) Flaxseed planted on the irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insurable 
flaxseed are part of the irrigated unit. The production from the total 
unit, both irrigated and nonirrigated, is combined to determine your 
yield for the purpose of determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.

[[Page 117]]

    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For purposes of Section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of flaxseed to be 
counted (see subsection 7.b.);
    Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature flaxseed production which, due to insurable causes, has a 
test weight or less than 47 pounds per bushel or, as determined by a 
grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act, contains more than 15 
percent damaged flaxseed, will be adjusted by:
    (i) Dividing the value per bushel of the insured flaxseed by the 
price per bushel of U.S. No. 2 flaxseed; and
    (ii) Multiplying the result by the number of bushels of insured 
flaxseed.
    (b) The applicable price for No. 2 flaxseed will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
insured flaxseed is sold.
    (2) All appraised production will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good flaxseed farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use (other than harvest) without our prior written 
consent or damaged solely by an uninsured cause;
    (c) Appraised production on unharvested acreage; and
    (d) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of flax becomes general in 
the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.

                  8. Cancellation and Termination Date.

    The cancellation and termination date for all states is April 15.

                           9. Contract Changes

    Contract changes will be available at your service office by 
December 31 prior to the cancellation date.

                          10. Meaning of Terms

    a. Harvest of flaxseed on the unit means combining, or removal from 
the field.
    b. Section is a unit of measure under the rectangular survey system 
describing a tract of land generally one mile square, usually consisting 
of approximately 640 acres.

[53 FR 4379, Feb. 16, 1988, as amended at 54 FR 20504, May 12, 1989; 60 
FR 56934, Nov. 13, 1995]



Sec. 401.117  Soybean endorsement.

    The provisions of the Soybean Crop Insurance Endorsement for the 
1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Soybean Endorsement

                             1. Insured Crop

    a. The crop insured will be soybeans planted for harvest as beans.
    b. In addition to the soybeans not insurable under section 2 of the 
general crop insurance policy, we do not insure any soybeans if the seed 
has not been mechanically incorporated into the soil in rows during the 
planting process unless another method is specifically allowed by the 
actuarial table.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;
    Unless those causes are excepted, excluded, or limited by the 
actuarial table or section 9 of the general crop insurance policy.

[[Page 118]]

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting, 
times any applicable premium adjustment percentage for which you may 
qualify as shown in the actuarial table, because:
    (1) You have not selected optional units; or
    (2) You are eligible for a good insuring experience discount.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the soybean policy 
in effect for the 1984 crop year, you will continue to receive the 
benefit of the reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In accordance with the provisions of section 7 of the general crop 
insurance policy the calendar date for the end of the insurance period 
in all states is December 10 immediately following planting.

                            5. Unit Division

    Soybean acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if for each proposed unit:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to the insured soybeans is located in separate, 
legally identifiable sections (except in Florida) or, in the absence of 
section descriptions (and in Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage is easily determined; and
    (2) The soybeans are planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    c. The acreage planted to the insured soybeans is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both an irrigated and non-irrigated practices are carried out, 
provided:
    (1) Soybeans planted on the irrigated acreage do not continue into 
non-irrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your soybean 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced by the factor contained in the 
actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of soybeans to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature soybean production which is not eligible for quality 
adjustment will be reduced .12 percent for each .1 percentage point of 
moisture in excess of 13.0 percent.
    (b) Soybean production which, due to insurable causes, has a test 
weight of less than 49 pounds per bushel or is of distinctly low quality 
as determined by a grain grader licensed by the Federal Grain Inspection 
Service or licensed under the United States Warehouse Act will be 
adjusted by:
    (i) Dividing the value per bushel of such soybeans by the price per 
bushel of U.S. No. 1 soybeans; and
    (ii) Multiplying the result by the number of bushels of such 
soybeans.
    (c) The applicable price for No. 2 soybeans will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
insured soybeans are sold.
    (2) All appraised production and will include:

[[Page 119]]

    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good soybean farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use (other than harvest) without our prior written 
consent or damaged solely by an uninsured cause;
    (c) Any appraised production on unharvested acreage;
    (d) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of soybeans becomes 
general in the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    c. A replanting payment is available under this endorsement. The 
replanting payment will not exceed 3 bushels multiplied by the price 
election, multiplied by your share. When the crop is replanted by a 
practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replanting payment.

                8. The Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and
              State and county                    termination dates
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,    February 15.
 McMullen, La Salle, and Dimmit Counties,
 Texas and all Texas counties lying south
 thereof.
Alabama; Arizona; Arkansas; California;      March 31.
 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, 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 all other       April 15.
 states.
------------------------------------------------------------------------

                          9. Contract changes.

    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to soybeans during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced production guarantees for such 
acreage. The reduced guarantees will be combined with the production 
guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The unit 
consists of 150 acres, of which 50 acres were planted timely, 50 acres 
were planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.

The total of the three calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(h)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report

[[Page 120]]

the dates the acreage is planted within the late planting period.
    (3) If planting of the soybeans continues after the final planting 
date, or you are prevented from planting soybeans during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting soybeans (see subparagraph 
11.(h)), you may elect:
    (i) To plant soybeans during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 30 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 15 bushels per acre (30 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant soybeans after the late planting period. The 
production guarantee for such acreage will be fifty percent (0.50) of 
the production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for soybeans.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to soybeans on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date); or
    (B) One hundred percent (100%) of the simple average of the number 
of acres planted to soybeans during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of soybean acres properly prepared to carry out 
an irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for soybeans in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than soybeans, has been planted 
and is intended for harvest, or has been harvested in the same crop 
year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of soybean acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of soybeans on one optional unit and 40 acres of soybeans on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more 
soybean acreage under this contract than is eligible for prevented 
planting coverage, we will allocate the eligible acreage to insured 
units based on the number of prevented planting acres and share you 
reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to soybeans in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General

[[Page 121]]

Crop Insurance Policy (Sec. 401.8), you must report any insurable 
acreage you were prevented from planting. This report must be submitted 
on or before the acreage reporting date, even though you may elect to 
plant the acreage after the late planting period. Any acreage you report 
as eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Distinctly low quality--(1) Exceeding 8.0 percent kernel damage 
(excluding heat damage); (2) Having a musty, sour, or commercially 
objectionable foreign odor which causes the beans to grade U.S. Sample 
grade; or (3) Graded as ``Garlicky.''
    (c) Final planting date-- the date contained in the Actuarial Table 
by which the insured soybeans must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining or threshing of soybeans on any 
acreage.
    (e) Irrigated practice-- a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated soybean acreage.
    (f) Late planted-- acreage planted during the late planting period.
    (g) Late planting period-- the period which begins the day after the 
final planting date for soybeans and ends twenty-five (25) days after 
the final planting date.
    (h) Prevented planting-- inability to plant soybeans with proper 
equipment by:
    (1) The final planting date for soybeans in the county; or
    (2) The end of the late planting period.

You must have been unable to plant soybeans due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (i) Production guarantee-- the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (j) Replanting-- performing the cultural practices necessary to 
replace the soybean seed, and replacing the seed in the insured acreage 
with the expectation of growing a successful crop.
    (k) Timely planted-- soybeans planted by the final planting date, as 
established by the Actuarial Table, for soybeans in the county to be 
planted for harvest in the crop year.

[52 FR 45153, Nov. 25, 1987; 53 FR 1001, Jan. 15, 1988, as amended at 54 
FR 48072, Nov. 21, 1989; 55 FR 42552, Oct. 22, 1990; 55 FR 50813, Dec. 
11, 1990; 56 FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 1992; 58 FR 
3209, Jan. 8, 1993; 58 FR 67639, Dec. 22, 1993; 60 FR 56934, Nov. 13, 
1995]



Sec. 401.118  Canning and processing bean endorsement.

    The provisions of the Canning and Processing Bean Endorsement for 
the 1988 through 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                 Canning and Processing Bean Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be fresh beans (snap and lima) which are 
planted for harvest as canning or processing beans.
    b. In addition to the beans not insurable under section 2 of the 
general crop insurance policy, we do not insure any beans;
    (1) Not grown under a contract with a canner, processor or broker or 
excluded from the canner, processor or broker contract for, or during, 
the crop year (The contract must be executed and effective before you 
report your acreage);
    (2) Planted for the fresh market; or
    (3) Planted to snap beans, lima beans, green peas, mint, rye, 
soybeans, or sunflowers the previous crop year unless otherwise provided 
for on the actuarial table.
    c. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured beans are grown and which 
provides for delivery under certain conditions and at a stipulated price 
will, for the purpose of this endorsement, be treated as a contract 
under which you have a share in the beans.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;

[[Page 122]]

    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.
    b. In addition to the causes not insured against in section 1 of the 
General Crop Insurance Policy, we will not insure against any loss of 
production due to the crop not being timely harvested unless such delay 
in harvesting is solely and directly due to adverse weather conditions 
which preclude harvesting equipment from entering into and moving about 
the unit.

                           3. Annual premium.

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, applying any 
applicable premium adjustment percentage (as shown in the actuarial 
table), for which you may qualify because you have not selected optional 
units.

                           4. Insurance period

    In addition to the provisions in section 7 of the general crop 
insurance policy, for unharvested acreage, the date by which acreage 
should have been harvested is added as one of the dates, the earliest of 
which is used to designate the end of the insurance period. The calendar 
date for the end of the insurance period is the applicable date of the 
year in which the beans are normally harvested, as follows:

Delaware, Maryland, and New Jersey--All   October 15.
 Beans.
New York--Snap Beans....................  September 30.
Utah--All Beans.........................  October 5.
All other states--Snap Beans............  September 20.
All other states--Lima Beans............  October 5.
 

                            5. Unit division.

    In addition to units defined in section 17 of the General Crop 
Insurance Policy, canning and processing bean acreage may be divided 
into units by type (smap or lima). For Idaho, Illinois, Indiana, Iowa, 
Michigan, Minnesota, New York, Oregon, Pennsylvania, Tennessee, Utah, 
Washington, and Wisconsin, bean acreage that would otherwise be one unit 
may be further divided, if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year and either:
    a. Acreage planted to the insured beans is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage can be easily determined; and
    (2) The beans are planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    b. The acreage planted to the insured beans is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Beans planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insurable beans 
are part of the irrigated unit. Production on the total unit, both 
irrigated and non-irrigated, will be combined to determine the yield for 
the purpose of determining the guarantee for the unit); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy if you are going to claim an indemnity on any unit 
which is not to be harvested or on which harvest has been discontinued, 
you must give us notice not later than 48 hours:
    (1) After the time harvest would normally start; or
    (2) After discontinuance of harvest.
    For the purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total bean production (tons) to be 
counted;
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (tons) to be counted for a unit will include 
all harvested and appraised production.
    (1) The tons of harvested production will be either the total net 
tons delivered to the processor or broker for which payment was 
received, as shown on the processor or

[[Page 123]]

broker settlement sheet, or will be determined by dividing the dollar 
amount received from the processor or broker by the contract price for 
the sieve size or grade factor designated by the actuarial table.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good bean farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
put to another use without our prior written consent or damaged solely 
by an uninsured cause; and
    (c) Appraised production on unharvested acreage.
    (d) If any acreage is not timely harvested, the production to count 
will be the greater of:
    (i) That designated by the actuarial table;
    (ii) The appraised production; or
    (iii) The dollar amount received from the processor divided by the 
processor's base contract price per ton.
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of beans becomes general 
in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates for all states are April 15.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Harvest means the mechanical picking of bean pods from the vines 
for the purpose of delivery to the canner or processor.

[53 FR 6560, Mar. 2, 1988, as amended at 53 FR 9100, Mar. 21, 1988; 54 
FR 20503, May 12, 1989; 55 FR 1785, Jan. 19, 1990; 62 FR 58624, Oct. 30, 
1997]



Sec. 401.119  Cotton endorsement.

    The provisions of the Cotton Crop Insurance Endorsement for the 1990 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Cotton Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be American Upland lint cotton.
    b. The acreage insured of skip-row cotton will be the acreage 
occupied by rows of cotton after eliminating the skipped-row portions.
    c. In addition to the cotton not insurable under section 2 of the 
general crop insurance policy, we do not insure any cotton:
    (1) Which is not irrigated and, in the same calendar year, is grown:
    (a) Where a hay crop was harvested; or
    (b) Where a small grain crop reached the heading stage.
    (2) Planted in excess of any mandatory acreage limitations 
applicable to the farm by any program administered by the United States 
Department of Agriculture; or
    (3) Destroyed, or put to another use in order to comply with other 
United States Department of Agriculture programs.
    d. In lieu of subsection 2.e.(7) of the general crop insurance 
policy, we do not insure any cotton planted with another spring planted 
crop.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment factor for which you may qualify as 
contained in the actuarial table, because: (1) You have not selected 
optional units; or (2) You are eligible for good insuring experience 
discount.

                           4. Insurance Period

    a. In lieu of subsection 7.b of the general crop insurance policy 
(harvest of the unit),

[[Page 124]]

insurance will end upon removal of the cotton from the field.
    b. The calendar dates for the end of the insurance period are as 
follows:

(1) Val Verde, Edwards, Kerr, Kendall,     September 30.
 Bexar, Wilson, Karnes, Goliad, Victoria,
 and Jackson counties, Texas, and all
 Texas counties lying South thereof.
(2) Arizona, California, New Mexico,       January 31.
 Oklahoma, and all other Texas counties.
(3) All other states.....................  December 31.
 

                            5. Unit Division

    Cotton acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one optional unit, if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured cotton is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in Florida), the land is identified by separate ASCS 
Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The cotton is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured cotton is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Cotton planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your cotton 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided on the actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of cotton to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production to be counted for a unit will include:
    (1) All harvested production; and
    (2) All appraised production which will include:
    (a) Mature and potential production on unharvested acreage;
    (b) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good cotton farming practices;
    (c) Not less than the applicable guarantee for any acreage which is 
abandoned or put to another use without our prior written consent or 
damaged solely by an uninsured cause; and
    (d) Not less than 25 percent of the production guarantee per acre 
for any acreage of cotton that is immature when we determine that 
harvest of cotton becomes general in the county.
    (e) Production on insured acreage for which we have given written 
consent to be put to another use, unless such acreage is:
    (i) Not put to another use before harvest of cotton becomes general 
in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested; and
    (f) Production of not less than the harvested guarantee on acreage 
where the stalks have been destroyed without our written consent.
    c. When mature cotton (harvested or unharvested) has been damaged 
solely by insured causes, the production to count will be reduced if, on 
the date the final notice of loss is given by the insured, the price 
quotation for cotton of like quality (price quotation ``A'') for the 
applicable growth area is less than 75 percent of price quotation ``B.'' 
Price quotation ``B'' will be that day's growth area price quotation for 
the same area for cotton of the grade, staple length, and micronaire 
reading shown by the actuarial table for this purpose. The pounds of 
production to be counted will be determined by multiplying the number of 
pounds (harvested and appraised) of mature cotton by price quotation 
``A'' and dividing the result by 75 percent of price quotation ``B.''

[[Page 125]]

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

State and County:
    Val Verde, Edwards, Kerr, Kendall,      February 15.
     Bexar, Wilson, Karnes, Goliad,
     Victoria, and Jackson Counties,
     Texas, and all Texas counties lying
     south thereof.
    Alabama; Arizona; Arkansas;             March 31.
     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, 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 all other  April 15.
     States.
 

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and November 30 preceding the cancellation 
date for all other Counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to cotton during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced production guarantees for such 
acreage. The reduced guarantees will be combined with the production 
guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The unit 
consist of 150 acres, of which 50 acres were planted timely, 50 acres 
were planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by thirty-five percent (0.35) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.

The total of the three calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(k)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the cotton continues after the final planting 
date, or you are prevented from planting cotton during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting cotton (see subparagraph 
11.(k)), you may elect:
    (i) To plant cotton during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be thirty-five 
percent (0.35)

[[Page 126]]

of the production guarantee for timely planted acres. For example, if 
your production guarantee for timely planted acreage is 700 pounds per 
acre, your prevented planting production guarantee would be equivalent 
to 245 pounds per acre (700 pounds multiplied by 0.35). This section 
does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant cotton after the late planting period. The production 
guarantee for such acreage will be thirty-five percent (0.35) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 700 pounds per acre, 
your prevented planting production guarantee would be equivalent to 245 
pounds per acre (700 pounds multiplied by 0.35). Production to count for 
such acreage will be determined in accordance with subparagraphs 7.b. 
and c.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8) and subparagraph 11.(b) 
(Meaning of Terms) of this endorsement, the beginning of the insurance 
period for prevented planting coverage is the sales closing date 
designated in the Actuarial Table for cotton.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to cotton on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for cotton reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to cotton during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for cotton in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than cotton, has been planted and 
is intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of cotton acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of cotton on one optional unit and 40 acres of cotton on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more cotton 
acreage under this contract than is eligible for prevented planting 
coverage, we will allocate the eligible acreage to insured units based 
on the number of prevented planting acres and share you reported for 
each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to cotton in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be providing for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

[[Page 127]]

                          11. Meaning of Terms

    (a) Cotton--only American Upland Cotton.
    (b) Crop year--the period beginning at planting and extending 
through the end of the insurance period shown in section 4 and is 
designated by the calendar year in which the crop is normally planted.
    (c) Days--calendar days.
    (d) Final planting date--the date contained in the Actuarial Table 
by which the insured cotton must initially be planted in order to be 
insured for the full production guarantee.
    (e) Growth area--a geographic area designated by the Secretary of 
Agriculture for the purpose of reporting cotton prices.
    (f) Harvest--the removal of the seed cotton on each acre from the 
open cotton boll or the severance of the open cotton boll from the stalk 
by either manual or mechanical means.
    (g) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated cotton acreage.
    (h) Late planted--acreage during the late planting period.
    (i) Late planting period--the period which begins the day after the 
final planting date for cotton and ends twenty-five (25) days after the 
final planting date.
    (j) Mature cotton--cotton which can be harvested either manually or 
mechanically and will include both unharvested and harvested cotton.
    (k) Prevented planting--inability to plant cotton with proper 
equipment by:
    (1) The final planting date for cotton in the county; or
    (2) The end of the late planting period.

You must have been unable to plant cotton due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (l) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for the row pattern planted, multiplied by the 
coverage level percentage you elect.
    (m) Skip-row--planting patterns consisting of alternating rows of 
cotton and fallow rows or rows of another crop (not spring-planted) as 
defined by ASCS (if non-cotton rows are occupied by another crop any 
yield factor normally applied for skip-row cotton will not be 
applicable).
    (n) Timely planted--cotton planted by the planting date, as 
established by the Actuarial Table, for cotton in the county to be 
planted for harvest in the crop year.

[54 FR 48074, Nov. 21, 1989, as amended at 58 FR 67641, Dec. 22, 1993; 
60 FR 56934, Nov. 13, 1995]



Sec. 401.120  Rice endorsement.

    The provisions of the Rice Crop Insurance Endorsement for the 1988 
through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Rice Endorsement

                             1. Insured Crop

    a. The crop insured will be rice which is planted for harvest as 
grain.
    b. In addition to the rice not insurable under section 2 of the 
general crop insurance policy, we do not insure any rice:
    (1) Destroyed or put to another use in order to comply with other 
United States Department of Agriculture programs; or;
    (2) Which is not irrigated.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Adverse weather conditions (excluding drought);
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the general crop insurance policy, we will not insure 
against my loss of production due to application of saline water.

                            3. Annual premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment percentage for which you may qualify as 
contained in the actuarial table, because;
    (a) You have not selected optional units; or
    (b) You are eligible for a good insuring experience discount.

[[Page 128]]

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
of the calendar year on which the rice is normally harvested.

                            5. Unit Division

    Rice acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if for each proposed unit:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to the insured rice is located in separate, 
legally identifiable sections (except in Florida) or, in the absence of 
section descriptions (and in Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage is easily determined; and
    (2) The rice is planted in such a manner that the planting pattern 
does not continue into an adjacent section or ASCS Farm Serial Number; 
or
    c. If you have a loss on any unit, production records for all 
harvested units must be provided to us. Production that is commingled 
between optional units will cause those units to be combined. If your 
rice acreage is not divided into optional units as provided in this 
section, your premium amount will be reduced as provided by the 
actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of rice to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production to be counted for a unit will include all 
harvested production including any production from a second rice crop 
harvested in the same crop year (Any mature production from volunteer 
rice growing in the rice will be counted as rice on a weight basis).
    (1) Mature rough rice production which otherwise is not eligible for 
quality adjustment will be reduced in volume by .12 percent for each .1 
percentage point of moisture in excess of 12.0 percent; or
    (2) Mature rough rice production which, due to insurable causes:
    (a) Has a total milling yield (heads, second heads, screening, and 
brewers) of less than 68 pounds per hundredweight;
    (b) The whole kernel weight is less than 55 pounds per hundredweight 
for medium and short grain varieties;
    (c) The whole kernel weight is less than 48 pounds per hundredweight 
for long grain varieties;
    (d) Contains more than 4.0 percent chalky kernels in long grain 
varieties;
    (e) Contains more than 6.0 percent chalky kernels in medium or short 
grain varieties;
    (f) Contains more than 3.0 percent chalky kernels in other types; or
    (g) Contains more than 2.5 percent red rice will have the production 
adjusted by:
    (i) Dividing the value per pound of such rice, by the price per 
pound of U.S. No. 3 rough rice; and
    (ii) Multiplying the result by the number of pounds of such rice.

(The applicable price for No. 3 rough rice will be the nearest mill 
center price on the earlier of the day the loss is adjusted or the day 
the rice was sold).
    c. The production to be counted will include all appraised 
production as follows:
    (1) All unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good rice farming practices;
    (2) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (3) Appraised production on unharvested acreage.
    (4) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of rice becomes general in 
the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.
    d. A replanting payment is available under this endorsement. The 
replanting payment per acre will not exceed 400 pounds multiplied by the 
price election, multiplied by your share.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

[[Page 129]]



------------------------------------------------------------------------
                                                   Cancellation and
              State and county                    termination dates
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,    February 15.
 McMullen, LaSalle, Dimmit Counties, Texas,
 and all Texas counties south thereof.
Missouri...................................  April 15.
Florida....................................  March 15.
All other Texas counties and all other       March 31.
 states.
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and November 30 (December 17 for the 1998 
crop year only) preceding the cancellation date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to rice during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for the 
late planted acreage and eligible prevented planting acreage will be the 
same as that for timely planted acreage. For example, assume you insure 
one unit in which you have a 100 percent (100%) share. The unit consists 
of 150 acres, of which 50 acres were planted timely, 50 acres were 
planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the acreage 
is eligible for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the 10th day following the final 
planting date for the insured crop. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available hereunder, 
if you elected the Catastrophic Risk Protection Endorsement or you 
elected to exclude prevented planting coverage when a substitute crop is 
planted (see subparagraph 10(d)(1)(iii))).
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (0.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the rice continues after the final planting date, 
or you are prevented from planting rice during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting rice (see subsection 11(h)), 
you may elect:
    (i) To plant rice during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
paragraph 10(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be thirty-five percent (35%) of the production guarantee 
for timely planted acres. For example, if your production guarantee for 
timely planted acreage is 2000 pounds per acre, your prevented planting 
production guarantee would be 700 pounds per acre (2000

[[Page 130]]

pounds multiplied by 0.35). If you elect to plant the insured crop after 
the late planting period, production to count for such acreage will be 
determined in accordance with subsections 7b and c; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to seventeen and five tenths 
percent (17.5%) of the production guarantee for timely planted acres 
will be provided for such acreage, if the substitute crop is planted 
after the tenth day following the final planting date for the insured 
crop. If you elected the Catastrophic Risk Protection Endorsement or 
excluded this coverage and plant a substitute crop, no prevented 
planting coverage will be provided. For example, if your production 
guarantee for timely planted acreage is 2000 pounds per acre, your 
prevented planting production guarantee would be 350 pounds per acre 
(2000 pounds multiplied by 0.175). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for harvest and 
receive a reduction in the applicable premium rate. If you wish to 
exclude this coverage, you must so indicate, on or before the sales 
closing date, on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable sales 
closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the insurance period for 
prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for rice in the county for the crop year the application for insurance 
is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a rice crop insurance policy for the 
1996 crop year, prevented planting coverage will begin on the 1996 sales 
closing date for the insured crop in the county. If the rice coverage 
remains in effect for the 1997 crop year (is not terminated or cancelled 
during or after the 1996 crop year, except the policy may have been 
cancelled to transfer the policy to a different insurance provider, if 
there is no lapse in coverage), prevented planting coverage for the 1997 
crop year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to rice on the FSA Farm Serial 
Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to rice during the crop years that you certified to 
determine your yield.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is

[[Page 131]]

planted and fails, or is planted and harvested, hayed or grazed on the 
same acreage in the same crop year, (other than a cover crop as 
specified in paragraph (a)(3)(i) of this section, or a substitute crop 
allowed in paragraph (a)(3)(ii) of this section) unless you provide 
adequate records of acreage and production showing that the acreage has 
a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of rice acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of rice on one optional unit and 40 acres of rice on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a prevented planting production 
guarantee the total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured rice must initially be planted in order to be 
insured for the full production guarantee.
    (c) Harvest--the completion of combining or threshing rice for grain 
on any acreage.
    (d) Late planted--acreage planted during the late planting period.
    (e) Late planting period--the period which begins the day after the 
final planting date for rice and ends twenty-five (25) days after the 
final planting date.
    (f) Mill center--any location in which two or more mills are engaged 
in milling rough rice.
    (g) Planted--uniform placement of an adequate amount of rice seed 
into a prepared seedbed by one of the following methods. Any acreage 
into which seed is placed in any other manner will not be considered as 
planted under the terms of this policy:
    (1) Drill seeding--uniform placement of the rice seed into the 
prepared seedbed by use of a grain drill that incorporates the seed to a 
proper soil depth.
    (2) Broadcast seeding--uniform distribution of the rice seed onto 
the surface of a prepared seedbed, followed by either mechanical 
incorporation of the seed to a proper soil depth in the seedbed or 
flushing the seedbed with water.
    (3) Broadcast seeding into a controlled flood--uniform distribution 
of the rice seed onto a prepared seedbed that has been intentionally 
covered by water. The water must be free of movement and be completely 
contained on the acreage by properly constructed levees and gates.
    (h) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (i) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (j) Replanting--performing the cultural practices necessary to 
replace the rice seed and replacing the rice seed in the insured

[[Page 132]]

acreage with the expectation of growing a successful crop.
    (k) Second crop rice--regrowth of a stand of rice originating from 
the initially insured rice crop following harvest and which can be 
harvested in the same crop year.
    (l) Timely planted--rice planted by the final planting date, as 
established by the Actuarial Table, for rice in the county to be planted 
for harvest in the crop year.

[52 FR 45605, Dec. 1, 1987; 54 FR 48076, Nov. 21, 1989; 57 FR 54682, 
Nov. 20, 1992; 58 FR 67642, Dec. 22, 1993; 60 FR 62721, 62722, Dec. 7, 
1995; 62 FR 28310, May 23, 1997; 62 FR 63633, Dec. 2, 1997]



Sec. 401.121  ELS cotton endorsement.

    The provisions of the ELS Cotton Crop Insurance Endorsement for the 
1990 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                  Extra Long Staple Cotton Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be Extra Long Staple cotton (``ELS'') and 
American Upland lint cotton (``AUP'') if the acreage was first planted 
in the crop year to ELS cotton.
    b. The acreage of skip-row cotton insured will be the acreage 
occupied by the rows of cotton after eliminating the skipped-row 
portions.
    c. In addition to the cotton not insurable in section 2 of the 
general crop insurance policy, we do not insure any cotton:
    (1) Which is not irrigated if it is grown:
    (a) Where a hay crop was harvested in the same calendar year; or
    (b) Where a small grain crop reached the heading stage in the same 
calendar year;
    (2) Planted in excess of any mandatory acreage limitations 
applicable to the farm by any program administered by the United States 
Department of Agriculture; or
    (3) Destroyed, or put to another use in order to comply with other 
United States Department of Agriculture programs.
    d. In lieu of subsection 2.e.(7) of the general crop insurance 
policy, we do not insure any cotton planted with another spring planted 
crop.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment percentage for which you may qualify as 
shown in the actuarial table, because you have not selected optional 
units as provided by the actuarial table.

                           4. Insurance Period

    a. In lieu of subsection 7.(b) of the general crop insurance policy, 
(harvest of the unit) insurance will end upon removal of the cotton from 
the field.
    b. The calendar date for the end of the insurance period is January 
31.

                            5. Unit Division

    Cotton acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one optional unit, if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured cotton is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The cotton is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured cotton is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Cotton planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing, and harvesting are carried out in 
accordance with recognized

[[Page 133]]

good dryland and irrigated farming practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your cotton 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided on the actuarial table.

                       6. Notice of Damage or Loss

    In addition to the provisions in section 8 of the general crop 
insurance policy;
    a. You may not destroy any cotton on which an indemnity will be 
claimed until we give consent.
    b. You must give us notice if you are going to replant any acreage 
originally planted to ELS cotton to AUP cotton.
    c. For purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of cotton to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production to be counted for a unit will include all 
harvested and appraised production.
    (1) Any mature ELS cotton production will be reduced when, due 
solely to insured causes, the quality of the ELS cotton produced is such 
that the price quotation for ELS cotton of like grade, staple length, 
and micronaire reading (price A) is less than 75 percent of price B. 
Price B is defined as the market price quotation for ELS cotton of the 
grade, staple length, and micronaire reading designated in the actuarial 
table for this purpose. The price quotations for prices A and B will be 
the market price quotations at the recognized market closest to the unit 
on the earlier of the day the loss is adjusted or the day the damaged 
ELS cotton is sold. In the absence of a price quotation on such date, 
the price quotations for the nearest prior date for which an ELS cotton 
price quotation was listed for both prices A and B will be used. The 
pounds of production to be counted will be determined by multiplying the 
number of pounds of mature production by price A and dividing the result 
by 75 percent of price B.
    (2) Any AUP cotton harvested from acreage originally planted to ELS 
cotton in the same growing season will be reduced by the factor obtained 
by dividing the price of the AUP cotton by the price of ELS cotton of 
the grade, staple length, and micronaire reading shown in our actuarial 
table. The prices will be determined at the closest recognized market to 
the insured unit of the earlier of the date the loss is adjusted or the 
date the AUP cotton was sold.
    (3) Appraised production to be counted will include:
    (a) Mature and potential production on unharvested acreage;
    (b) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good cotton farming practices;
    (c) Not less than the applicable guarantee for any acreage which is 
abandoned or put to another use without our prior written consent or 
damaged solely by an uninsured cause; and
    (d) Not less than 25 percent of the production guarantee per acre 
for any acreage of cotton that is immature when we determine that 
harvest of cotton becomes general in the county.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of cotton becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (5) Any appraisal of the AUP cotton on acreage originally planter to 
ELS cotton will be reduced by the factor determined in section 7.b.(2) 
above. If prices are not yet available, the previous year's season 
average price will be used.
    (6) The cotton stalks must not be destroyed on any acreage for which 
an indemnity is claimed, until we give consent. An appraisal of not less 
than the guarantee may be made on acreage where the stalks have been 
destroyed without our consent.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
                                           Cancellation and termination
                 States                               dates
------------------------------------------------------------------------
New Mexico.............................  April 15
All other states.......................  March 31
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is November 30 preceding the cancellation date.

[[Page 134]]

  10. Prevented Planting (Including Planting after the Final Planting 
                                  Date)

    (a) In lieu of subparagraph 2.e.(4) of the General Crop Insurance 
Policy (Sec. 401.8), insurance will be provided for acreage you were 
prevented from planting (see subparagraph 11.(h)). This coverage 
provides a reduced production guarantee for such acreage. The reduced 
guarantee will be combined with the production guarantee for timely 
planted acreage for each unit. The premium amount for eligible prevented 
planting acreage will be the same as that for timely planted acreage. 
For example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 100 acres, of which 50 acres were 
planted by the final planting date and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely; and
    (2) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by thirty-five percent (0.35) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.

The total of the two calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 100 
acres in the unit.
    (b) If you were prevented from planting ELS cotton (see subparagraph 
11.(h)), you may elect:
    (1) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be thirty-five 
percent (0.35) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 600 
pounds per acre, your prevented planting production guarantee would be 
equivalent to 210 pounds per acre (600 pounds multiplied by 0.35). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (2) To plant ELS cotton after the final planting date. The 
production guarantee for such acreage will be thirty-five percent (0.35) 
of the production guarantee for timely planted acres. For example, if 
your production guarantee for timely planted acreage is 600 pounds per 
acre, you prevented planting production guarantee would be equivalent to 
210 pounds per acre (600 pounds multiplied by 0.35). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (c) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for ELS cotton.
    (d) You must provide written notice to us if you were prevented from 
planting. This notice must be given not later than three (3) days after 
the final planting date if you have unplanted acreage that may be 
eligible for prevented planting coverage.
    (e) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (1) Eligible acreage will not exceed the greater of:
    (i) The number of acres planted to ELS cotton on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing date);
    (ii) The ASCS base acreage for ELS cotton reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (iii) One hundred percent (100%) of the simple average of the number 
of acres planted to ELS cotton during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (2) Acreage intended to be planted under an irrigated practice will 
be limited to the number of ELS cotton acres properly prepared to carry 
out an irrigation practice.
    (3) A prevented planting production guarantee will not be provided 
for:
    (i) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (ii) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for ELS cotton in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (iii) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (iv) Land on which any crop, other than ELS cotton, has been planted 
and is intended for harvest, or has been harvested in the same crop 
year; or
    (v) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.

[[Page 135]]

    (4) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of ELS cotton acres timely planted. For example, assume 
you have 100 acres eligible for prevented planting coverage in which you 
have a 100 percent (100%) share. The acreage is located in a single ASCS 
Farm Serial Number which you insure as two separate optional units 
consisting of 50 acres each. If you planted 60 acres of ELS cotton on 
one optional unit and 40 acres of ELS cotton on the second optional 
unit, your prevented planting eligible acreage would be reduced to zero 
(i.e., 100 acres eligible for prevented planting coverage minus 100 
acres planted equals zero). If you report more ELS cotton acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible acreage to insured units based on the number of 
prevented planting acres and share you reported for each unit.
    (f) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to ELS cotton in 
the crop year.
    (g) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date. Any acreage you report as eligible for 
prevented planting coverage which we determine is not eligible will be 
deleted from prevented planting coverage.
    (h) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Cotton--Extra Long Staple cotton and acreage replanted to 
American Upland Cotton after ELS was destroyed by an insured cause.
    (b) Days--calendar days.
    (c) ELS Cotton--Extra Long Staple cotton (also called Pima Cotton 
and American-Egyptian Cotton).
    (d) Final planting data--the date contained in the Actuarial Table 
by which the insured ELS cotton must initially be planted in order to be 
insured for the full production guarantee.
    (e) Harvest--the removal of the seed cotton on each acre from the 
open cotton boll or the severance of the open cotton boll from the stalk 
by either manual or mechanical means.
    (f) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated ELS cotton acreage.
    (g) Mature cotton--ELS cotton which can be harvested either manually 
of mechanically and will include both unharvested and harvested cotton.
    (h) Prevented planting--inability to plant ELS cotton with proper 
equipment by the final planting date due to an insured cause of loss 
which is general in the area (i.e., most producers in the surrounding 
area are unable to plant due to similar insurable causes) and which 
occurs between the sales closing date and the final planting date.
    (i) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for the row pattern planted, multiplied by the 
coverage level percentage you elect.
    (j) Replanted--performing the cultural practices necessary to 
replant acreage to AUP cotton and replacing the AUP cotton seed after 
ELS cotton was destroyed by an insured cause in the same growing season.
    (k) Skip-row--planting patterns consisting of alternating rows of 
cotton and fallow rows as defined by ASCS (if non-cotton rows are 
occupied by another crop any yield factor normally applied for skip-row 
cotton will not be applicable).
    (l) Timely planted--ELS cotton planted by the final planting date, 
as established by the Actuarial Table, for ELS cotton in the county to 
be planted for harvest in the crop year.

[54 FR 48068, Nov. 21, 1989, as amended at 58 FR 67643, Dec. 22, 1993; 
60 FR 56934, Nov. 13, 1995]



Sec. 401.122  Stonefruit endorsement.

    The provisions of the Stonefruit Crop Insurance Endorsement for the 
1988 through 1998 crop years are as follows:

                   Federal Crop Insurance Corporation

                         Stonefruit Endorsement

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;
    (4) Wildlife;
    (5) Volcanic eruption;

[[Page 136]]

    (6) An insufficient number of chilling hours to effectively break 
dormancy; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;
    Unless these causes of loss are excepted, excluded, or limited by 
the actuarial table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
Section 1.b. of the general crop insurance policy, we will not insure 
against any loss of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the orchard;
    (2) Insect infestation;
    (3) Split pits regardless of cause; or
    (4) Inability to market as a direct result of quarantine, boycott, 
or refusal of any entity to accept or harvest production unless 
production has actual physical damage due to a cause specified in 
subsection 1.a.

                       2. Insured Crop and Acreage

    a. The crop insured will be any of the following stonefruit types 
you elect in writing prior to the sales closing date and grown for fresh 
market fruit or processing (whichever is applicable) for which we 
provide a guarantee and premium rate:

Type I--Apricots--Fresh
Type II--Apricots--Processing
Type III--Nectarines--Fresh
Type IV--Peaches, Cling--Processing
Type V--Peaches, Freestone--Processing
type VI--Peaches, Freestone--Fresh
    b. You may insure any fresh market Stonefruit of Type I Apricots or 
Type VI Freestone Peaches as processing Type II Apricots or Type V 
Freestone Peaches respectively by converting fresh market lugs, 
harvested or appraised, to equivalent processing tons using the weight 
equivalents provided in paragraph 12.d.
    c. In lieu of the provisions of paragraph 2.e. of the general crop 
insurance policy, we do not insure any stonefruit acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the fifth growing season 
after being set out;
    (3) Which has not produced at least 200 lugs fresh market production 
per acre (at least 2.2 tons per acre for processing types);
    (4) For which acceptable production records for the type elected for 
at least the previous crop year are not provided;
    (5) Which we inspect and consider not acceptable;
    (6) Which is interplanted with another crop;
    (7) On which is grown a type or variety: not established as adapted 
to the area; excluded by the actuarial table; or not regulated by the 
California Tree Fruit agreement or a related crop advisory board for the 
State (for applicable types);
    (8) From which the fruit is harvested directly by the public; or
    (9) If the orchard practices carried out are not in accordance with 
the orchard practices for which the premium rates have been established.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    The acreage report must be filed on or before January 31. You must 
report the crop type in addition to the information required by the 
general crop insurance policy for the acreage report.

            4. Production Reporting and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees;
    (2) The number of trees planted per acre;
    (3) Known tree damage or use of production practices which have or 
may reduce the yield from previous levels; and
    (4) If the number of bearing trees (fifth growing season and older) 
is reduced more than 10% from the preceding calendar year. (The 
production guarantee will be reduced 1 percent (through adjustment to 
your average yield) for each 1 percent reduction in excess of 10 
percent).
    b. You may select only one coverage level and price election per 
type for the crop year.
    c. The processing price elections will be applied to any applicable 
type (except type III--Nectarines) where an election:
    (1) Has not been made by the insured; or
    (2) Is not available in accordance with the provisions of the 
actuarial table.

                            5. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches.

                           6. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, coverage begins for each crop year on February 1. Insurance ends 
on each acre at the earliest of:
    a. Total destruction of the insured crop by type;
    b. Harvest;
    c. The date harvest would normally start for the type if the crop is 
not to be harvested;
    d. Final adjustment of a loss; or
    e. In all counties, the calendar date immediately following February 
1 as follows:
    (1) all apricots--July 31.

[[Page 137]]

    (2) all nectarines and peaches--September 30.

                                7. Units

    Stonefruit acreage of each type, grown on non-contiguous land, that 
would otherwise be one unit as defined in section 17 of the general crop 
insurance policy, may be divided into more than one unit if you agree to 
pay an additional premium as provided for by the actuarial table and if 
for each proposed unit you maintain written, verifiable records of 
acreage and harvested production for at least the previous crop year.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between units will 
cause the production from those units to be combined for the purpose of 
calculating an indemnity.

                       8. Notice of Damage or Loss

    In lieu of the notices required in subsections 8.a.(2),(3), and (4) 
of the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within 72 hours of the date of damage 
and indicate the cause of damage and whether a claim for indemnity is 
probable. Notwithstanding the previous sentence, if damage occurs within 
72 hours of or during harvest, immediate notice stating the cause of 
damage and probability of a claim must be given to us. If notice is 
given under this paragraph, we must be notified of the time of harvest 
at least 72 hours before harvest begins.

                         9. Claim for Indemnity

    In addition to Section 9 of the general crop insurance policy:
    a. The indemnity will be determined separately for each unit of 
types I, III, and VI by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of fresh stonefruit 
by type to be counted (see section 9.b. or c.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by the insured share.
    b. The total production (standard lug equivalents) (see section 
12.d.) to be counted for a unit will include all production harvested, 
by type and all appraised production. For fresh apricots (Type I), such 
production must meet the California Department of Food and Agriculture 
minimum standards. For fresh nectarines (Type III) and fresh freestone 
peaches (Type VI), such production must meet U.S. 1 standards as 
modified by the latest California Tree Fruit Agreement Publication.
    (1) Production of fresh stonefruit damaged by insurable causes 
within the insurance period, that could be marketed for any use as other 
than fresh packed stonefruit, will be determined by multiplying the 
number of tons that could be marketed by the value per ton of fruit or 
$50.00 per ton, whichever is greater, and dividing that result by the 
highest price election available for the type. This result will be the 
number of standard lug equivalents to be considered as production to 
count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the applicable guarantee for any acreage which is 
abandoned, destroyed by you without our prior written consent, or not 
inspected by us prior to the completion of harvest;
    (c) Any unharvested production where good stonefruit cultural 
practices were discontinued following an appraisal; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of stonefruit becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested type may be 
determined on the basis of orchard appraisals conducted after the end of 
the insurance period or discontinuance of harvest. We may appraise and 
consider as production to count, any insured fruit remaining on acreage 
not clean harvested.
    (5) We may delay final appraisal until the extent of damage can be 
determined.
    c. The total production in tons to be counted for a processing unit 
will include all production harvested and all appraised production:
    (1) For processing apricots (Type II), such production must meet 
California Department of Food and Agriculture minimum standards:
    (2) For processing clingstone peaches (Type IV), such production 
must be graded by the California State Inspection Service as 2 or 
better;
    (3) For processing freestone peaches (Type V), such production must 
meet California Department of Food and Agriculture minimum standards and 
will include all production harvested and appraised which is acceptable 
to the processor;
    (4) Appraised production to be counted for Types II, IV, and V will 
include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good stonefruit production practices;

[[Page 138]]

    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (5) Any appraisal for processing fruit types will be conducted based 
on procedure stated in subsection 9.b(2), (3), and (4).
    d. In the absence of acceptable records to determine the disposition 
of harvested stonefruit, we may elect to determine such disposition and 
the amount of such production to be counted for the unit.
    e. You must authorize us in writing to examine and obtain any 
records pertaining to production and marketing of the insured fruit 
under this contract from the broker, shipper, canner, advisory board, 
marketing order or any other source we deem necessary.

               10. The Cancellation and Termination Dates

    The cancellation and termination dates are January 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is October 31 preceding the cancellation date. Acceptance of any 
change will be conclusively presumed in the absence of notice from you 
to cancel the contract.

                          12. Meaning of Terms

    For the purpose of Stonefruit crop insurance:
    a. Appraisal means an estimate of the potential production 
determined by our representative using our prescribed procedures.
    b. Crop Year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the insured type is normally 
harvested.
    c. Harvest means the picking of mature fruit from the trees by hand 
or machine.
    d. Lug means a container of fresh fruit of the weights shown below. 
All fresh production to count of varying lug sizes will be converted to 
standard lug equivalents on the basis of the following average net 
pounds of packed fruit:

------------------------------------------------------------------------
                                                                 Pounds/
                              Type                                 lug
------------------------------------------------------------------------
I Apricots.....................................................       24
III Nectarines.................................................       25
VI Freestone Peaches...........................................       22
------------------------------------------------------------------------

    e. Ton means a volume of apricots or processing peaches of type II, 
IV, or V marketable through processing channels and equaling 2000 
pounds.

[53 FR 6561, Mar. 2, 1988, as amended at 63 FR 29935, June 2, 1998]



Sec. 401.123  Safflower seed crop endorsement.

    The provisions of the Safflower Seed Crop Insurance Endorsement for 
the 1988 through the 1997 crop year.

                   Federal Crop Insurance Corporation

                     Safflower Seed Crop Endorsement

                             1. Insured Crop

    a. The crop insured will be safflower seed (``safflowers'').
    b. In addition to the safflowers not insurable in section 2 of the 
general crop insurance policy, we do not insure any safflowers on which 
safflowers, sunflowers, dry beans, soybeans, mustard, rapeseed, or 
lentils have been grown the preceding crop year.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insect infestation;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or subsection 9 of the general policy.

                            3. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.

                           4. Insurance Period

    The calendar date for the end of insurance period is October 31 of 
the calendar year in which the safflowers are normally harvested.

                            5. Unit Division

    Safflower acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written verifiable records of planted acreage and harvested production 
for at least the previous crop year; and either

[[Page 139]]

    a. Acreage planted to insured Safflowers is located in separate 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or Farm Serial Number are clearly 
identified, and the insured acreage can be easily determined; and
    (2) The safflowers are planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; or
    b. Acreage planted to safflowers is located in a single section or 
ASCS Farm Serial Number and consists of acreage on which both an 
irrigated and nonirrigated practice are carried out, provided:
    (1) Safflowers planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine your yield for the purpose of 
determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined for the purpose of 
calculating an indemnity.

                       6. Notice of Damage or Loss

    The representative samples of unharvested safflowers as required in 
section 8 of the general crop insurance policy will be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from that result the total production of safflowers 
to be counted;
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature safflower production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 8.0 percent.
    (2) Mature safflower production will be adjusted for quality when, 
due to insurable causes, such production has a test weight below 35 
pounds per bushel or has seed damage in excess of 25 percent as 
determined by a grader licensed to grade safflowers by the Federal Grain 
Inspection Service.
    (3) Mature safflower production which is eligible for quality 
adjustment, due to insurable causes, will be adjusted by:
    (a) Dividing the value per pound of damaged safflowers by the 
average market price per pound for undamaged safflowers; and
    (b) Multiplying the result by the number of pounds of such 
safflowers.
    For the purpose of this insurance, the applicable price for damaged 
safflowers will be not less than 50 percent of the average market price 
for undamaged safflowers.
    (4) Any harvested production from other volunteer plants growing in 
the safflowers will be counted as safflowers on a weight basis.
    (5) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (6) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of safflowers becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates for California are December 
31, beginning December 31, 1991. For all other states, the cancellation 
and termination dates are April 15.

                           9. Contract Changes

    Contract changes will be available at your service office by August 
31 prior to the cancellation date for California, and by December 31 
prior to the cancellation date for all other states.

                          10. Meaning of Terms

    a. Harvest means the completion of combining or threshing of 
safflowers on the unit.
    b. Value per pound of damaged safflowers means the value of the 
damaged safflowers (test weight below 35 pounds per bushel or seed 
damage in excess of 25 percent) at the local market but not less than 50 
percent of

[[Page 140]]

the average market price for undamaged safflowers.

[52 FR 45159, Nov. 25, 1987, as amended at 54 FR 28795, July 10, 1989; 
55 FR 40788, Oct. 5, 1990; 62 FR 42649, Aug. 8, 1997]



Sec. 401.124  Sunflower seed crop endorsement.

    The provisions of the Sunflower Seed Crop Insurance Endorsement for 
the 1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                     Sunflower Seed Crop Endorsement

                             1. Insured Crop

    a. The crop insured will be sunflower seed (``sunflowers'').
    b. Unless otherwise provided by the actuarial table, insurance will 
attach only on acreage initially planted in rows far enough apart to 
permit cultivation; but, if such insured acreage is destroyed and 
replanted by broadcasting, drilling, or in rows too close to permit 
cultivation. it will be considered insured acreage.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted. excluded, or limited by the actuarial 
table or section 9 of the general policy.

                            3. Annual Premium

    a. The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the sunflower 
policy in effect for the 1985 crop year, you will continue to receive 
the benefit of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    The calendar date for the end of insurance period is November 30 of 
the calendar year in which the sunflowers are normally harvested.

                            5. Unit Division

    Sunflower acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written verifiable records of planted acreage and harvested production 
for at least the previous crop year; and either
    a. Acreage planted to insured sunflowers is located in separate 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or Farm Serial Number are clearly 
identified, and the insured acreage can be easily determined; and
    (2) The safflowers are planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; or
    b. The acreage planted to sunflowers is located in a single section 
or Farm Serial Number and consists of acreage on which both an irrigated 
and nonirrigated practice are carried out, provided:
    (1) Sunflowers planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine your yield for the purpose of 
determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized irrigated and nonirrigated farming practices 
for the area.

If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    The representative samples of unharvested sunflowers as required in 
section 8 of the

[[Page 141]]

general crop insurance policy will be at least 10 feet wide and the 
entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sunflowers to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature sunflower production (quantity) which otherwise is not 
eligible for quality adjustment will be reduced .12 percent for each .1 
percentage point of moisture in excess of 10 percent; or
    (2) Mature production will be adjusted for quality when, due to 
insurable causes, the insured sunflower seed crop grades below the 
following:

----------------------------------------------------------------------------------------------------------------
                                                      Oil type                           Non-oil type
----------------------------------------------------------------------------------------------------------------
Test weight...........................  Less than 25 pounds................  Less than 22 pounds.
Damaged kernels.......................  More than 10% total................  More than 5% total
----------------------------------------------------------------------------------------------------------------

    Sunflowers grading below these standards will be adjusted by:
    (a) dividing the value per pound by the price per pound of No. 2 
sunflowers; and
    (b) multiplying the result by the number of pounds of insured 
sunflowers.
    The applicable price for No. 2 sunflowers will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
sunflowers are sold.
    (3) Any harvested production from other crops growing in the 
sunflowers will be counted as sunflowers on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good sunflower farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production or harvested or unharvested acreage.
    (5) Any appraisal we have made on insured acreage and given written 
consent for that acreage to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of sunflowers becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    c. A replant payment is available under the Sunflower Endorsement. 
No replant payment will be made on acreage on which our appraisal 
exceeds 90 percent of the guarantee. The payment per acre will not 
exceed the product obtained by multiplying 175 pounds times the price 
election, times your share.

                           8. Replant Payment

    In accordance with paragraph 9.h. of the general crop insurance 
policy a replant payment not to exceed the product by multiplying 175 
pounds times the prime elective, times your share may be made.

                  9. Cancellation and Termination Date

    The cancellation and termination date for all states is April 15.

                          10. Contract Changes

    The date by which contract changes will be available in your service 
office will be December 31 preceding the cancellation date.

                          11. Meaning of Terms

    a. Harvest means the completion of combining or threshing of 
sunflowers on the unit.
    b. Replanting means performing the cultural practices necessary to 
replant insured acreage to sunflowers.

[52 FR 45155, Nov. 25, 1987, as amended at 53 FR 40718, Oct. 18, 1988; 
54 FR 20369, May 11, 1989; 54 FR 20504, May 12, 1989; 54 FR 33493, Aug. 
15, 1989; 60 FR 56934, Nov. 13, 1995]



Sec. 401.125  Fig endorsement.

    The provisions of the Fig Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Fig Endorsement

                             1. Insured Crop

    a. The crop insured will be commercially grown dried figs.
    b. In addition to the figs not insurable under section 2 of the 
general crop insurance policy, we do not insure any figs:

[[Page 142]]

    (1) Which are not irrigated;
    (2) Which have not reached the seventh growing season after being 
set out;
    (3) Grown for purposes other than for dried figs;
    (4) Grown with another crop;
    (5) Unless acceptable production records for at least the previous 
crop year are provided;
    (6) With less than 90 percent of a stand based on the original 
planting pattern unless we agree, in writing, to insure such acreage;
    (7) Which we inspect and consider not acceptable;
    (8) For the crop year the application is filed unless such acreage 
has been inspected and accepted by us; or
    (9) Acquired for the crop year unless such acreage has been 
inspected and accepted by us.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather;
    (2) Earthquake;
    (3) Fire;
    (4) Volcanic eruption;
    (5) Wildlife; and
    (6) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against:
    (1) Any loss of production due to fire, where weeds and other forms 
of undergrowth have not been controlled or tree pruning debris has not 
been removed from the grove; or
    (2) The inability to market the fruit as a direct result of 
quarantine, boycott, or refusal of any entity to accept production.

     3. Report of Acreage, Share, Type and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. You must submit the acreage report described in section 3 of the 
general crop insurance policy by March 1.
    c. By applying for fig crop insurance, you authorize us to determine 
or verify your production and acreage from records maintained by the 
California Fig Advisory Board or the fig packer.

                            4. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches.

                           5. Insurance Period

    In lieu of the provisions of section 7 of the general crop insurance 
policy insurance attaches on each unit on March 1 and insurance ends at 
the earliest of:
    (1) Total destruction of the fig crop;
    (2) The date harvest of the figs (by type) should have started on 
any acreage that will not be harvested;
    (3) Harvest of the figs;
    (4) Final adjustment of a loss; or
    (5) October 31.

                            6. Unit Division

    a. In addition to the provisions in subsection 17.q. of the general 
crop insurance policy, a unit will be all insurable acreage of an 
insurable type of fig in the county.
    b. Fig acreage that would otherwise be one unit may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the acturial table and if for each proposed unit:
    (1) You maintain written, verifiable records of acreage and 
harvested production for at least the previous crop year, and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    (2) The acreage of insured figs is located on noncontiguous land. If 
you have a loss on any unit, production records for all harvested units 
must be provided. Production that is commingled between optional units 
will cause those units to be combined.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of figs to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production (pounds) to be counted for a unit will 
include all harvested and appraised marketable figs, as defined by the 
Marketing Order for Dried Figs, as amended.
    (1) All substandard production must be inspected by us and we must 
give written consent to you prior to delivery to the substandard pool. 
If the substandard production is not inspected or we do not give written 
consent prior to the delivery to the substandard pool, all production 
will be counted as marketable production.
    (2) Appraised production to be counted will include:

[[Page 143]]

    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good fig farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such acreage is:
    (a) Not harvested before the harvest of figs becomes general in the 
county;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are February 28.

                           9. Contract Changes

    The date on which contract changes will be available in your service 
office is October 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Harvest means the picking of the figs from the trees or ground by 
hand or machine for the purpose of removal from the orchard.
    b. Non-contiguous land means land which is not touching at any 
point, except that land which is separated by only a public or private 
right-of-way will be considered contiguous.
    c. Substandard production means production that does not meet 
minimum grade standards and is defined as ``substandard'' by the 
Marketing Order for Dried Figs, as amended, which is in effect on the 
date insurance attaches.

[53 FR 15015, Apr. 27, 1988, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.126  Onion endorsement.

    The provisions of the Onion Endorsement for the 1988 through the 
1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Onion Endorsement

                             1. Crop Insured

    a. The crop insured will be onions planted for harvest as dry onions 
(bulb onions).
    b. In addition to the onions not insurable under section 2 of the 
general crop insurance policy, we do not insure any onions planted for 
green (bunch) or seed onions, including chives, garlic, leek, or 
scallions.
    c. A late planting agreement will be available.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.

                           4. Insurance Period

    In lieu of section 7 of the general crop insurance policy, insurance 
attaches on each unit or part of a unit when the onions are planted and 
ends at the earliest of:
    (a) Total destruction of the onions on the unit;
    (b) Five days after digging of the onions;
    (c) Removal of the onions from the field;
    (d) Final adjustment of a loss on a unit; or
    (e) The following dates for the calendar year in which the onions 
are normally harvested:
Washington-Walla Walla Sweets and any other non-storage type onion--July 
31
Colorado--September 30
All other Washington onions and all other states--October 15

                            5. Unit Division

    Onion acreage that would otherwise be one unit, as defined in the 
general policy, may only be further divided into units by onion type 
(Red, Yellow, or White) if you agree to pay an additional premium as 
provided for by the actuarial table and if for each proposed unit by 
type:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports by type based on those records are filed to obtain an insurance 
guarantee.
    b. The acreage boundaries between onion types is clearly 
identifiable, the insured acreage is easily determined and the onions

[[Page 144]]

are planted in such a manner that the planting pattern does not continue 
into the adjacent field of different type (maximum number of units, 
three); or
    c. The acreage planted to onions consists of acreage on which both 
irrigated and nonirrigated practices are carried out, provided:
    (1) Onions planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine the unit yield for the purpose of 
determining the guarantee for the unit); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized irrigated and nonirrigated farming practices 
for the area (maximum number of units, six; three irrigated and three 
non-irrigated).

                       6. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss:
    a. You must give us written notice if you want to harvest the onions 
(After such notice is given, we will appraise the potential production. 
If we are unable to do so before harvest, you may harvest the crop, 
provided representative samples are left for appraisal purposes.); and
    b. Any representative sample must be at least 10 feet wide and the 
entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying the result by the price election;
    (3) Subtracting therefrom the dollar amount obtained by multiplying 
the total production of onions to be counted (see subsection 7b.) by the 
larger of your price election or the local market price at the time the 
onions are appraised; and
    (4) Multiplying this result by your share.
    b. The total production (in hundredweight) to be counted for a unit 
will include all harvested and appraised production.
    (1) The extent of any loss may be determined no later than the date 
onions are placed in storage or delivered to a packer or processor, 
whichever is earlier.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Not less than the guarantee for any acreage from which the 
harvested production is disposed of without our prior written consent 
and such disposition prevents accurate determination of production; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent for another use will be considered production 
unless such acreage is;
    (a) Not put to another use before harvest of onions becomes general 
in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are March 1st.

                           9. Contract Changes

    The contract change date is December 31 preceding the cancellation 
date.

                          10. Meaning of Terms

    Harvest means the digging of onions and placement of the onions into 
a container.

[53 FR 19217, May 27, 1988, as amended at 62 FR 28613, May 27, 1997]



Sec. 401.127  Cranberry endorsement.

    The provisions of the Cranberry Crop Insurance Endorsement for the 
1990 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                          Cranberry Endorsement

                             1. Insured Crop

    a. The crop insured will be cranberries which are grown for 
processing or fresh market.
    b. Except by written agreement between you and us or unless provided 
by the actuarial table, we do not insure any acreage:
    (1) Unless at least four growing seasons have elapsed between the 
date the vines were set out and the date insurance attaches;
    (2) With less than 90 percent of a stand of bearing vines based on 
the original planting pattern; or
    (3) That is being renovated and not being used to produce a full 
crop for the current year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from

[[Page 145]]

the following causes occurring within the insurance period:
    (1) adverse weather conditions;
    (2) fire;
    (3) wildlife;
    (4) earthquake;
    (5) volcanic eruption;
    (6) insects;
    (7) plant disease;
    (8) if applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches; or
    (9) failure or breakdown of irrigation equipment or facilities due 
to direct damage to the irrigation equipment or facilities from an 
insurable cause of loss if the cranberry crop is damaged by freezing 
temperatures within 72 hours of such equipment or facilities failure and 
the equipment or facilities could not have been made operational or 
replaced within such 72-hour time period;
unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. We do not insure against any loss caused by the failure or 
breakdown of irrigation equipment or facilities except as provided in 
section 2.a.(9) above.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches.

                           4. Insurance Period

    a. In addition to the provisions in section 7 of the general crop 
insurance policy, for unharvested acreage, the date by which acreage 
should have been harvested is added as one of the dates, the earliest of 
which is used to designate the end of the insurance period. The calendar 
date for the end of the insurance period is November 20. The calendar 
date for the beginning of the insurance period is November 21.
    b. If you obtain any insurable acreage of cranberries on or before 
January 5 of any crop year, insurance will be considered to have 
attached to such acreage at the beginning of the insurance period if we 
inspect such acreage and accept it in writing. If you convey any acreage 
of cranberries on or before January 5 of any crop year, insurance will 
not be considered to have attached to such acreage for that crop year.

                            5. Unit Division

    Cranberry acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay an additional premium if required 
by the actuarial table and if for each proposed unit:
    a. you maintain written verifiable records of acreage and harvested 
production for at least the previous crop year and production reports 
based on those records are timely filed to obtain an insurance 
guarantee; and
    b. the acreage planted to insured cranberries in the county is 
located on non-contiguous land.
If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to section 8 of the general crop insurance policy, in 
case of damage or probable loss:
    a. You must immediately give us written notice of the loss or 
probable loss, including the dates of damage, if probable loss is 
determined within 15 days prior to or during harvest.
    b. If you are going to claim an indemnity on any unit, you must give 
us notice not later than 72 hours after the earliest of:
    (1) Total destruction of the cranberries on the unit;
    (2) Discontinuance of harvest of any acreage on the unit; or
    (3) The date harvest would normally start in the area if any acreage 
on the unit is not to be harvested.
    c. Unless notice has been given under section b. above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, you must give us written notice not 
later than 10 days after the earlier of:
    (1) Harvest of the unit; or
    (2) November 20 of the crop year.

                         7. Claim for Indemnity

    a. In addition to the provisions of subsection 9.b. of the general 
crop insurance policy, we will not pay any indemnity unless you 
authorize us, in writing, to examine and obtain any records from any 
person or entity pertaining to the production and marketing of the 
insured cranberries.
    b. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from that result the total production of cranberries 
to be counted (see subsection 7.c.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    c. The total production (in barrels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Cranberry production which, due to insurable causes, is 
determined not to meet

[[Page 146]]

quality requirements of the receiving handler, would not meet those 
requirements if properly handled, and has a value of less than 75 
percent of the market price for cranberries meeting the minimum 
requirements will be adjusted by:
    (a) Dividing the value per barrel of such cranberries by the market 
price per barrel for cranberries meeting the minimum requirements; and
    (b) Multiplying the result by the number of barrels of such 
cranberries.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good cranberry farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such acreage is:
    (a) Not harvested before the harvest of cranberries becomes general 
in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) We may determine the amount of production of any unharvested 
cranberries on the basis of field appraisals conducted after the end of 
the insurance period.

                  8. Cancellation and Termination Date

    The cancellation and termination date is November 20.

                           9. Contract Changes

    All contract changes will be available at your service office by 
August 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Barrel means 100 pounds of cranberries.
    b. Direct damage means actual physical damage to the equipment or 
facilities which is the direct result of an insurable cause of loss.
    c. Harvest means picking of the cranberries from the vines for the 
purpose of removal from the land.
    d. Irrigation equipment, facilities, and water supply means the 
supply of water and the mechanical and constructed equipment and 
facilities used to deliver the water to the cranberry crop so as to 
prevent damage due to drought or freeze.
    e. Non-contiguous land means land which is not touching at any 
point. Land that is separated only by a public or private right-of-way 
will be considered contiguous.

[54 FR 20501, May 12, 1989, as amended at 62 FR 5905, Feb. 10, 1997]



Sec. 401.129  Tobacco (guaranteed plan) endorsement.

    The provisions of the Tobacco (Guaranteed Plan) Crop Insurance 
Endorsement for the 1990 through the 1998 crop years are as follows:

                   Federal Crop Insurance Corporation

                  Tobacco (Guaranteed Plan) Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be any of the following tobacco types you 
elect which are grown on insured acreage and for which a guarantee and 
premium rate are provided by the actuarial table:

Flue Cured
    Type 11A
    Type 11B
    Type 12
    Type 13
    Type 14
Maryland
    Type 32
Cigar Filler
    Type 41
    Type 42
    Type 44
Cigar Wrapper
    Type 61
    Type 55
Fire Cured
    Type 21
    Type 22
    Type 23
Burley
    Type 31
Dark Air
    Type 35
    Type 36
    Type 37
Cigar Binder
    Type 51
    Type 52
    Type 54
    b. In addition to the acreage not insurable under section 2 of the 
general crop insurance policy, we do not insure any acreage:
    (1) On which the tobacco was destroyed or put to another use for the 
purpose of conforming with any other program administered by the United 
States Department of Agriculture; or
    (2) Planted to tobacco of a discount variety under provisions of the 
tobacco price support program.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;

[[Page 147]]

    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee for the unit times the applicable price election, 
times the premium rate, times the insured acreage, times your share at 
the time of planting, applying any applicable premium adjustment 
percentage for which you may qualify as shown on the actuarial table.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1985 crop year 
under the terms of the experience table contained in the guaranteed 
tobacco policy in effect for the 1986 crop year, you will continue to 
receive the benefit of the reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1986 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions of section 7 of the general crop insurance 
policy the following will apply:
    Insurance attaches on each unit or part of a unit when the tobacco 
is planted (see subsection 10(e)) and ends at the earliest of:
    a. Total destruction of the tobacco;
    b. Weighing-in at the tobacco warehouse;
    c. Removal of the tobacco from the unit (except for curing, grading, 
packing, or immediate delivery to the tobacco warehouse);
    d. Final adjustment of a loss; or
    e. On the following dates of the crop year:

(1) Types 11 and 12--November 30;
(2) Type 13--October 31;
(3) Type 14--October 15;
(4) Types 31 & 36--February 28;
(5) Types 21, 35 and 37--March 15;
(6) Types 22 and 23--April 15;
(7) Type 32--May 15;
(8) All other types--April 30.

                            5. Unit Division

    1. Tobacco acreage of an insurable type that would otherwise be one 
unit, as defined in section 17 of the general crop insurance policy, may 
be divided into more than one unit if for each proposed unit:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured tobacco is located on land identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the ASCS Farm Serial Numbers are clearly 
identified and the insured acreage is easily determined; and
    (2) The tobacco is planted in such a manner that the planting 
pattern does not continue into an adjacent ASCS Farm Serial Number.
    If you have a loss on any unit, production records for all harvested 
units must be provided. If your tobacco acreage is not in a divided unit 
as provided above, your premium will be reduced as provided by the 
actuarial table. Production that is commingled between optional units 
will cause those units to be combined for insurance purposes only.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy; the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of each field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of tobacco to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the applicable price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Harvested tobacco production which, due to insurable causes, has 
a value less than the market price for tobacco of the same type, will be 
adjusted by:
    (a) Dividing the average value per pound of the harvested production 
by the market price per pound; and
    (b) Multiplying that result by the number of pounds of such damaged 
harvested tobacco.
    (c) If due to insurable causes there is no market price available 
for the grade being adjusted, the production to count will be reduced 
20% for each grade that the production falls below the lowest grade with 
a market price (see subsection 10.d.(2)).

[[Page 148]]

    (2) All harvested tobacco production which is not damaged by 
insurable causes and cannot be sold in the current market year will be 
considered production to count.
    (3) To enable us to determine the fair market value of tobacco not 
sold through auction warehouses, we must be allowed:
    (a) To inspect such tobacco before it is sold, contracted to be 
sold, or otherwise disposed of; and
    (b) At our option to obtain additional offers on your behalf.
    (4) Appraised production to be counted will include:
    (a) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (b) Not less than 35 percent of the guarantee for all unharvested 
acreage;
    (c) Unharvested production on harvested acreage; and
    (d) Potential production lost due to uninsured cause and to failure 
to follow recognized good tobacco farming practices.
    (5) We may appraise any acreage of tobacco types 11, 12, 13, or 14 
on which the stalks have been destroyed without our consent at not less 
than the guarantee.
    (6) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tobacco becomes general 
in the county and reappraised by us; or
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (7) The commingled production of units will be prorated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    (8) No replanting payment will be made under this endorsement.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                           dates
------------------------------------------------------------------------
Alabama; Florida; Georgia; South Carolina;  March 31
 and Surry, Wilkes, Caldwell, Burke, and
 Cleveland Counties, North Carolina, and
 all North Carolina counties east thereof..
All other North Carolina Counties and all   April 15
 other states.
------------------------------------------------------------------------

                           9. Contract Changes

    Contract changes will be available at your service office by 
December 31 prior to the cancellation date.

                          10. Meaning of Terms

    a. Average value per pound means the total value of all harvested 
production from the unit divided by the harvested pounds and may include 
the value of any harvested production which is not sold.
    b. County means the land defined in the general crop insurance 
policy and any land identified by an ASCS Farm Serial Number for the 
county but physically located in another county.
    c. Harvest means the completion of cutting or priming of tobacco on 
any acreage from which at least 20 percent of the production guarantee 
per acre shown by the actuarial table is cut or primed with the intent 
of marketing.
    d. Market price:
    (1) For types, 11, 12, 13, 14, 21, 22, 23, 31, 35, 36, 37, 42, 44, 
54, and 55, means the average price support level per pound for the 
insured type of tobacco as announced by the United States Department of 
Agriculture under the tobacco price support program (if for any crop 
year price support for the insured type is not in effect, we will use 
the season average price in the belt or area through the day tobacco 
sales are completed on any unit or part thereof which is harvested); and
    (2) For types 32, 41, 51, 52, and 61 means the season average price 
for the applicable type of tobacco, (such price will be the season 
average price for the current crop year for any unit or part thereof 
which is harvested) and may be established by including the value of 
sold and unsold production.

    e. Planting means transplanting the tobacco plant from the bed into 
the field.

[54 FR 48070, Nov. 21, 1989, as amended at 63 FR 34551, June 25, 1998]



Sec. 401.130  Grape endorsement.

    The provisions of the Grape Endorsement for the 1991 through 1997 
(1990 through 1997 in California) crop years are as follows:

                   Federal Crop Insurance Corporation

                            Grape Endorsement

                             1. Insured Crop

    a. The crop insured;
    (1) For California only, will be any insurable variety of grapes you 
elect which are grown for wine, juice, raisins or canning.
    (2) For all other states, will be all insurable varieties of grapes 
which are grown for wine, juice, raisins or canning.
    b. In addition to the grapes not insurable under section 2 of the 
General Crop Insurance Policy, we do not insure any grapes:
    (1) If the producing vines, after being set out or grafted, have not 
reached the number of growing seasons designated by the actuarial table;

[[Page 149]]

    (2) If the producing vines have not produced an average of two (2) 
tons of grapes per acre; or
    (3) Produced by vines where there is less than a ninety percent 
(90%) stand of bearing vines based on the current planting pattern;

unless inspected by us and we agree, in writing, to insure such grapes.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption; or
    (6) If applicable, failure of the irrigation water supply; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the General Crop Insurance Policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the General Crop Insurance policy, we will not insure 
against any loss of production due to fire if weeds and other forms of 
undergrowth have not been controlled or vine pruning debris has not been 
removed from the vineyard. We also specifically do not insure against 
the inability to market the grapes as a direct result of quarantine, 
boycott, or refusal of any entity to accept production, unless 
production has actual physical damage due to a cause specified in 
subsection 2.a. above.

    3. Report of Acreage, Share, Practice, and Type (Acreage Report)

    In addition to the information required by section 3 of the General 
Crop Insurance Policy, you must report the crop type and variety.

                 4. Coverage Levels and Price Elections

    Only one coverage level (50%, 65%, or 75%) and only one price 
election set (high, medium, or low) will be applicable to all your 
insurable grapes.

            5. Production Reporting and Production Guarantees

    In addition to the information required in section 4 of the General 
Crop Insurance Policy, you must report:
    a. The number of bearing vines; and
    b. Any vine damage or change in farming practices which may reduce 
yields from previous levels.

                            6. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches, times 
any applicable premium adjustment percentage for which you may qualify 
as shown in the actuarial table.

                           7. Insurance Period

    a. The calendar date on which insurance attaches is:
    (1) November 21 in Idaho, Oregon, and Washington;
    (2) February 1 in California; and
    (3) December 11 in all other states.
    b. The date harvest should have started on any acreage which is not 
harvested, is added to section 7 of the General Crop Insurance Policy as 
one of the items which ends the insurance period.
    c. The calendar date for the end of the insurance period is:
    (1) October 10 in Mississippi;
    (2) November 10 in California, Idaho, Oregon, and Washington; and
    (3) December 10 in all other states.
    d. If you acquire an insurable share in any insurable acreage on or 
before the acreage reporting date of any crop year and if we inspect, 
consider acceptable, and agree in writing, to insure such acreage, 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period. If you 
relinquish your insurable interest on any acreage of grapes on or before 
the acreage reporting date of any crop year insurance will not be 
considered to have attached to such acreage for that crop year unless a 
transfer of right to an indemnity is entered into by all affected 
parties and the service office is notified in writing of such transfer 
prior to the acreage reporting date.

                            8. Unit Division

    a. In California only, in addition to units as defined in section 17 
of the General Crop Insurance Policy, each grape variety will be a 
separate unit. Grape acreage that would otherwise be one unit, as 
provided herein and in section 17 of the General Crop Insurance Policy, 
may be divided into more than one optional unit if, for each proposed 
unit you maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year; production 
reports based on those records are filed to obtain an insurance 
guarantee; and the insured grapes are located on land owned by you which 
is noncontiguous. Land rented by you for cash, a fixed commodity payment 
or any consideration other than a share in the insured crop will be 
considered owned by you.
    b. In all other states, grape acreage that would otherwise be one 
unit as defined in section 17 of the General Crop Insurance Policy may 
be divided into more than one optional unit if, for each proposed unit 
you

[[Page 150]]

maintain written, verifiable records of planted acreage and harvested 
production for at least the previous crop year; production reports based 
on those records are filed to obtain an insurance guarantee; and
    (1) The insured grapes are designated in the actuarial table as 
separate group A or group B varieties;
    (2) The insured grapes are located on noncontiguous land;
    (3) The acreage of insured grapes is located in separate, legally 
identifiable sections or, in the absence of section descriptions, the 
land is identified by separate ASCS Farm Serial Numbers, provided:
    (a) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage can be easily determined; and
    (b) The grapes are planted in such a manner that the planting 
pattern does not continue into the adjacent section or ASCS Farm Serial 
Number; or
    (4) The acreage of insured grapes is located in a single section or 
ASCS Farm Serial Number and consists of acreage on which both an 
irrigated and nonirrigated practice are carried out, provided:
    (a) Grapes planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (b) Farming practices are carried out in accordance with recognized 
good dryland and irrigated farming practices for the area.
    c. If you have a loss on any unit, production records for all 
harvested units must be provided to us. Production that is commingled 
between optional units will cause those units to be combined.

                       9. Notice of Damage or Loss

    In addition to the notices required in section 8 of the General Crop 
Insurance Policy, and if you are going to claim an indemnity on any 
unit, you must give us notice not later than 72 hours:
    a. After total destruction of the grapes on the unit;
    b. After discontinuance of harvest on the unit; or
    c. Before harvest would normally start if any acreage on the unit is 
not to be harvested.
    If notice is given under this subsection, the notice requirement 
under subsection 8.a.(4) of the General Crop Insurance Policy is not 
applicable.

                         10. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this product by the price election;
    (3) Subtracting the dollar amount obtained by multiplying the total 
production to be counted (see subsection 9.c.) by the price election; 
and
    (4) Multiplying this result by your share.
    b. If a unit contains acreage to which more than one price election 
applies, the dollar amount of insurance and the dollar amount of 
production to be counted will be determined separately for such acreage 
and then added together to determine the total amount for the unit.
    c. The total production (tons) to be counted for a unit will include 
all harvested and appraised production:
    (1) Grapes which, due to insurable causes, have a value less than 75 
percent of the average market price of undamaged grapes of the same 
variety will be eligible for quality adjustment. In California, the 
average market price will be the price shown by the Federal State Market 
News California Wine Report for the same week in which the damaged 
grapes were valued. In all other states, the average market price will 
be determined by averaging the prices being paid by usual marketing 
outlets for the area during the week in which the damaged grapes were 
valued. Damaged production will be adjusted by:
    (a) Dividing the value per ton of the grapes by the highest price 
election available for such grapes; and
    (b) Multiplying the result (not to exceed 1) by the number of tons 
of such grapes.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good grape management practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and reappraised by us; or
    (b) Harvested.
    (4) If any grapes are harvested before or after normal maturity or 
for a special use (such as champagne or Botrytis affected grapes), the 
production of such grapes will be increased by the factor obtained by 
dividing the price per ton received for such grapes by the price per ton 
for fully matured grapes of the type for which the claim is being made.

                 11. Cancellation and Termination Dates

    a. The cancellation date in:
    (1) California is January 31 of the calendar year in which the crop 
normally blooms;

[[Page 151]]

    (2) Idaho, Oregon, and Washington is November 20 of the calendar 
year prior to the year of normal bloom; and
    (3) All other states is December 10 of the calendar year prior to 
the year of normal bloom.
    b. The termination date in:
    (1) California is January 31 of the calendar year following the year 
of normal bloom;
    (2) Idaho, Oregon, and Washington is November 20 of the calendar 
year in which the crop normally blooms; and
    (3) All other states is December 10 of the calendar year in which 
the crop normally blooms.

                          12. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date for all states 
except California, and October 31 preceding the cancellation date for 
California.

                          13. Meaning of Terms

    a. Crop Year means the period beginning with the date insurance 
attaches to the grape crop and extending through normal harvest time, 
and will be designated by the calendar year in which the grapes are 
normally harvested.
    b. Harvest means the mechanical or manual removal of grapes from the 
vines.
    c. Noncontiguous Land means any land whose boundaries do not touch 
at any point. Land which is separated by a public or private right-of-
way, waterway or irrigation canal will be considered to be touching 
(contiguous).
    d. Ton means 2,000 pounds.

[54 FR 43270, Oct. 24, 1989, as amended at 62 FR 33741, June 23, 1997]



Sec. 401.131  High-risk land exclusion option.

    The provisions of the High-Risk Land Exclusion Option for the 1990 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                     High-Risk Land Exclusion Option

    This is a continuous Option. Refer to item 5 of this Option.

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Crops___________________________________________________________________
County__________________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
TAX_____________________________________________________________________

    Upon our approval of this Option, we agree to amend your Federal 
Crop Insurance Policy to exclude from crop insurance coverage all high-
risk land for the identified crops and county in which you have a share, 
subject to the following terms and conditions:
    1. The Option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to exclude high-risk land.
    2. In the event of a loss on any insured unit, you must provide 
separate production records showing planted acreage and harvested 
production for any acreage which is excluded from crop insurance 
coverage under this Option.
    3. By signing this Option, you are declining crop insurance coverage 
under the general crop insurance policy and the crop endorsement on your 
high-risk land.
    4. As used in this Option, ``high-risk'' land is any land which is 
not classified as an ``R'' classification contained in the actuarial 
table.
    5. This Option may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the policy, preceding such crop year.
    6. You must report, on the acreage report for each crop year, the 
acreage of the crop planted on high-risk land.
    7. All other provisions of the policy not in conflict with this 
Option are applicable.

_______________________________________________________________________
Insured's Signature
Date____________________________________________________________________
_______________________________________________________________________
Corporation Representative's Signature and Code Number
Date____________________________________________________________________
_______________________________________________________________________

            Collection of Information and Data (Privacy Act)

    To the extent that the information requested herein relates to the 
information supplier's individual capacity as opposed to the supplier's 
entrepreneurial (business) capacity, the following statements are made 
in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 
552(a)). The authority for requesting information to be furnished on 
this form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 
et seq.) and the Federal Crop Insurance Corporation Regulations 
contained in 7 CFR Chapter IV.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, determine and collect premiums, and pay indemnities. 
Furnishing the Tax Identification Number (Social Security Number) is 
voluntary and no adverse action will result from the failure to furnish 
that number. Furnishing the information required by this

[[Page 152]]

form, other than the Tax identification (Social Security) Number, is 
also voluntary; however, failure to furnish the correct, complete 
information requested may result in rejection of this form, rejection of 
or substantial reduction in any claim for indemnity, ineligibility for 
insurance, and a unilateral determination of the amount of premium due. 
(See below for information on the consequences of furnishing false or 
incomplete information).
    The information furnished on this form will be used by federal 
agencies, FCIC employees, and contractors who require such information 
in the performance of their duties. The information may be furnished to: 
FCIC contract agencies, employees and loss adjusters; reinsured 
companies; other agencies within the United States Department of 
Agriculture; the Internal Revenue Service; the Department of Justice, or 
other federal or State law enforcement agencies; credit reporting 
agencies and collection agencies; and in response to judicial orders in 
the course of litigation.
    A false claim made to the Corporation, or a false statement made on 
a matter within the jurisdiction of the Corporation, may subject the 
maker to criminal and civil penalties (18 U.S.C. 1001, 1006; 31 U.S.C. 
3729, 3730).

[54 FR 43273, Oct. 24, 1989]



Sec. 401.133  Sugarcane endorsement.

    The provisions of the Sugarcane Crop Insurance Endorsement for the 
1991 through 1995 crop years are as follows:

                   Federal Crop Insurance Corporation

                          Sugarcane Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be sugarcane grown for processing for sugar 
or for seed.
    b. The acreage insured for each crop year will be plant and stubble 
cane grown on insurable acreage.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches, times 
any applicable premium adjustment percentage for which you may qualify 
as shown in the actuarial table.

                           4. Insurance Period

    In addition to the provisions in section 7 of the general crop 
insurance policy, the following will apply.
    a. Insurance attaches on plant cane at the time of planting unless 
otherwise provided for in writing by us and on stubble cane on the first 
day following harvest unless the cane was damaged by conditions 
occurring before harvest. If the stubble cane was damaged before 
harvest, insurance will attach on the later of April 15 or 30 days 
following harvest. Notwithstanding the first sentence of this paragraph, 
insurance will attach on stubble cane in Louisiana, after the second 
crop year, only on the later of April 15 or 30 days after harvest.
    b. The calendar dates for the end of insurance period are:
  (1) Louisiana..............................................January 31;
  (2) All other states.........................................April 30.

                            5. Unit Division

    Sugarcane acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee;
    b. The acreage planted to insured sugarcane is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate Agricultural 
Stabilization and Conservation Service (ASCS) Farm Serial Numbers, 
provided:
    (1) The boundaries of the sections or Farm Serial Numbers are 
clearly identifiable and the insured acreage can be determined; and
    (2) The sugarcane is planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; and
    c. The acreage planted to the insured sugarcane is located in a 
single section or Farm Serial Number and consists of acreage on which 
both irrigated and nonirrigated practices are carried out, provided:

[[Page 153]]

    (1) Sugarcane planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with applicable recognized good dry-land and irrigated 
farming practices for the area.
    If you have a loss of any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your sugarcane 
acreage is not divided into optional units as provided in this section, 
your premium will be reduced as provided by the actuarial table.

                               6. Notices

    a. You must give us notice at least 15 days before you begin cutting 
any sugarcane for seed. During this time we may make an appraisal for 
the sugar potential. If we do not appraise the acreage, the production 
to count will be the per acre production guarantee for the unit. Your 
notice must include the unit number and the number of acres you intend 
to harvest as seed.
    b. For the purposes of section 8 of the general crop insurance 
policy, in case of damage or probable loss and you intend to harvest, 
the required representative samples of unharvested sugarcane must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    If an indemnity is to be claimed on any unit, you must leave the 
stalks on unharvested acreage and the stubble on harvested acreage 
intact until inspected by us.
    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sugar to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    (b) The total production (in pounds of sugar) to be counted for a 
unit will include all harvested and appraised production.
    (1) Sugar production to count from acreage damaged by freeze within 
the insurance period, which cannot be processed for sugar by the boiling 
house operation, will be determined by dividing the dollar amount 
received from the mill for the damaged sugarcane by the price per pound 
of raw sugar (The applicable price for raw sugar will be the local 
market price on the earlier of the day the loss is adjusted or the day 
such sugar is sold);
    (2) Appraised production to be counted will include:
    (a) Any appraisal under subsections 6.(a), 7.b.(3) and 7.b.(4);
    (b) Unharvested production on harvested acreage, potential 
production lost due to uninsured causes, and failure to follow 
recognized good sugarcane farming practices;
    (c) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (d) Any unharvested production.
    Appraisals and harvested production not processed for sugar will be 
given in pounds of sugar.
    (3) We will make an appraisal of not less than the production 
guarantee per acre on any harvested acreage on which the stubble is 
destroyed prior to our inspection.
    (4) An appraisal for inadequate stand will be made at the time of 
inspection on sugarcane acreage where insurance did not attach the first 
day following harvest. If the product of the number of stalks per acre 
multiplied by 2, multiplied by the factor (percentage of sugar) 
contained in the actuarial table for that purpose does not equal the 
per-acre guarantee, the per acre appraisal for inadequate stand will be 
the difference between the appraised production and the production 
guarantee.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production to count unless such acreage is:
    (a) Not put to another use before harvest of sugarcane becomes 
general in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination date is September 30.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 15 preceding the cancellation date.

                        10. Report of Production

    There is a one-year lag period for reporting your sugarcane 
production. You must report production for the previous crop year before 
the cancellation date for the subsequent crop year.

                          11. Meaning of Terms

    a. Crop year means the period from planting for plant cane and the 
day following harvest for stubble cane until the end of the insurance 
period and is designated by the calendar year in which the sugarcane 
harvest normally begins in the county.
    b. Harvest means the cutting and removing of sugarcane from the 
field.

[[Page 154]]

    c. Plant cane (see definition of sugarcane).
    d. Stubble cane (see definition of sugarcane).
    e. Sugarcane means either:
    (1) Plant cane growing from seed planted that crop year; or
    (2) Stubble cane growing from the stubble left to produce another 
crop from previously harvested sugarcane.

[55 FR 25955, June 26, 1990, as amended at 58 FR 33509, June 18, 1993; 
60 FR 56934, Nov. 13, 1995]



Sec. 401.134  Texas citrus tree endorsement.

    The provisions of the Texas Citrus Tree Endorsement for the 1989 
through 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                      Texas Citrus Tree Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following insurable citrus 
tree types (hereafter called trees) you elect:

Type I  Early and mid-season orange trees;
Type II  Late orange (including Temple) trees;
Type III  Grapefruit trees except types IV and V;
Type IV. Rio Red and Star Ruby grapefruit trees; or
Type V  Ruby Red grapefruit trees;

which are set out for the purpose of harvesting citrus as fresh fruit or 
juice.
    b. In addition to the citrus trees not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus trees;
    (1) Which are not irrigated;
    (2) For the crop year the application for insurance is filed unless 
we inspect the acreage and consider it acceptable;
    (3) Which have been grafted onto existing root stock or nursery 
stock within the one year period prior to the date insurance attaches; 
or
    (4) In any established groves which do not have the potential to 
produce at least 70 percent of the area average yield for the type and 
age, unless we agree in writing to insure such trees;
    c. We may exclude from insurance or limit the amount of insurance on 
any acreage which was not insured by us the previous crop year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable damage to citrus 
trees resulting from the following causes occurring within the insurance 
period:
    (1) Freeze;
    (2) Excess moisture;
    (3) Hail;
    (4) Fire;
    (5) Tornado;
    (6) Excess wind; or
    (7) Failure of the irrigation water supply;

unless those causes are excluded, or limited by the actuarial table or 
section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
damage to trees due to fire if weeds and other forms of undergrowth have 
not been controlled or tree pruning debris has not been removed from the 
grove.

 3. Report of Acreage, Share, Number, Type, Age of Trees, and Practice 
                            (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report:
    (1) The number and type of trees;
    (2) The date of original set out; and
    (3) The date of replacement or dehorning, if more than 10 percent of 
the trees on any unit have been replaced or dehorned in the previous 5 
years.
    b. If any insurable acreage of trees is set out after June 1, and 
you elect to insure such acreage during that crop year, you must report 
to us within 72 hours of the completion of set out the acreage, 
practice, type, number of trees, date set out is completed, and your 
share.
    c. The date by which you must annually submit the acreage report is 
June 30 of the calendar year in which insurance attaches.

                         4. Amounts of Insurance

    a. The amount of insurance shown on the actuarial table will be 
reduced for any acreage which has not reached the fourth growing season 
after being set out or the fifth year following dehorning. The amount of 
insurance will be the product obtained by multiplying the amount of 
insurance contained in the actuarial table by:
    (1) 33 percent the year of set out or the year following dehorning 
(insurance will be limited to this amount until trees that are set out 
are one year of age or older on June 1);
    (2) 60 percent the first growing season after being set out or the 
second year following dehorning;
    (3) 80 percent the second growing season after being set out or the 
third year following dehorning; or
    (4) 90 percent the third growing season after being set out or the 
fourth year following dehorning.
    b. The amount of insurance will be reduced proportionately for any 
unit on which the stand is less than 90 percent, based on the original 
planting pattern.

[[Page 155]]

                            5. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per acre times the premium rate, times the insured acreage, 
times your share at the time insurance attaches.

                           6. Insurance Period

    a. In lieu of section 7 of the general crop insurance policy, 
insurance attaches on June 1 for each crop year except that for the 
first crop year insured if the application is accepted by us after June 
1:
    (1) The insurance against excess wind and freeze will attach the 
tenth day after the properly completed application is submitted to the 
service office; and
    (2) If any insurable acreage is set out after June 1, insurance will 
attach on the date set out is completed for the unit if the acreage is 
reported within 72 hours after the date of completion, except for excess 
wind and freeze; and
    (3) For all other instances, insurance attaches on the date the 
application is accepted.
    b. The insurance period ends at the earlier of:
    (1) May 31 following the beginning of the crop year; or
    (2) Total destruction of the insured trees.

                            7. Unit Division

    a. Citrus tree acreage that would otherwise be one unit, as defined 
in section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus tree acreage that would otherwise be one unit as defined 
in section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if you agree to pay 
additional premium if required by the actuarial table and the insured 
trees are located on non-contiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be provided.

                       8. Notice of Damage or Loss

    a. In lieu of section 8 of the general crop insurance policy and in 
case of damage or probable loss, you must within 10 days give us written 
notice of:
    (1) The dates of damage; and
    (2) The causes of damage.
    b. If you are going to claim an indemnity on any unit, we must 
inspect all insured acreage and damaged trees before pruning, dehorning, 
or removal.

                         9. Claim for Indemnity

    a. In addition to the requirements in section 9 of the general crop 
insurance policy you must furnish records to us concerning all trees on 
the unit.
    b. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance;
    (2) Multiplying this result by the applicable percent of loss 
determined by subtracting from the actual percent of damage determined 
in accordance with subsection 9.c., the following applicable amount:
    (a) 25 percent (for Coverage Level 3) and dividing the result by 75 
percent;
    (b) 35 percent (for Coverage Level 2) and dividing the result by 65 
percent; or
    (c) 50 percent (for Coverage Level 1) and dividing the result by 50 
percent; and
    (3) Multiplying this result by your share.
    c. The total amount of indemnity will include both trees damaged and 
trees destroyed due to an insurable cause.
    (1) The percent of damage to count will be:
    (a) The percent of damage determined by dividing the number of 
scaffold limbs (scaffold limbs are limbs directly attached to the trunk) 
damaged in an area from the trunk to a length equal to one-fourth (\1/
4\) the height of the tree, by the total number of scaffold limbs before 
damage occurred, (any trees with over 80 percent actual damage will be 
counted as 100 percent damaged unless the damage occurs within one year 
of set out);
    (b) Any grove with over 80 percent actual damage will be counted as 
100 percent damaged unless the damage occurs within one year of set out; 
or
    (c) The percent of damage resulting from insurable causes occurring 
during the crop year of set out as follows:
    (i) 100 percent if the trees are killed back to the root stock; or
    (ii) 90 percent if the trees have less than 12 inches of live wood 
above the bud union, (however, no damage will be considered if more than 
12 inches of wood above the bud union is alive).
    (2) Any percentage of damage by uninsured causes, will not be 
included in the percent of damage.
    d. The amount of indemnity will be determined at the earlier of:
    (1) Total destruction of the trees; or
    (2) The calendar date for the end of the insurance period.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are May 31 prior to the date 
insurance attaches.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is February 28 preceding the cancellation date.

[[Page 156]]

                          12. Meaning of Terms

    a. Crop year means the period beginning June 1 and extending through 
May 31 of the following year and is designated by the calendar year in 
which the insurance period ends.
    b. Dehorning means the cutting back of each scaffold limb to a 
length that is no longer than \1/4\ the height of the tree.
    c. Destroyed means trees which are damaged to the extent that 
removal is required.
    d. Excess wind means a natural movement of air which has sustained 
speeds in excess of 58 miles per hour recorded at the U.S. Weather 
Service reporting station nearest to the crop at the time of crop 
damage.
    e. Freeze means the condition of air temperatures over a widespread 
area remaining sufficiently at or below 32 degrees Fahrenheit to cause 
tree damage.
    f. Non-contiguous land means land which is not touching at any 
point. Land which is separated by only a public or private right-of-way 
will be considered to be touching (contiguous).
    g. Set out means transplanting the citrus tree from the nursery to 
the grove.
    h. Total destruction means the occurrence of damage by unit to the 
trees which have been set out more than one year in excess of 80 
percent.

[53 FR 9101, Mar. 21, 1988, as amended at 62 FR 4117, Jan. 29, 1997]



Sec. 401.135  Malting barley option.

    The provisions of the Malting Barley Option for the 1989 through 
1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                 Barley Insurance Malting Barley Option

    (This is a continuous Option. Refer to section 15 of the General 
Crop Insurance Policy)

Insured's name  ________________________________________________________
Contract No.  __________________________________________________________

                                Crop Year

                                 Address

Identification No.______________________________________________________
SSN  ___________________________________________________________________
Tax  ___________________________________________________________________

    It is hereby agreed to amend the Federal Crop Insurance General Crop 
Insurance Policy and Barley Endorsement under, and in accordance with, 
the following terms and conditions:

 1. The option must be submitted to us on or before the final date for 
 accepting applications for the initial crop year in which you wish to 
          insure your malting barley acreage under this option.

2. You must have a Federal Crop Insurance General Crop Insurance Policy 
           and Barley Endorsement (``Basic Policy'') in force.

           3. You must provide by the acreage reporting date:

    a. Acceptable records of the sale of malting barley for malting 
purposes for 3 of the previous 5 crop years; or
    b. A binding written contract with a buyer of malting barley for 
malting purposes, which states the quantity contracted and purchase 
price or method for determining such price.

   4. All barley acreage in the county planted to an approved malting 
  variety in which you have a share, will be insured under this option 
(``Malting Barley''). All barley acreage of any non-malting variety will 
   be insured under the terms of the Basic Policy (``Basic Barley''). 
Malting barley and basic barley acreage will be separate units. Further 
 unit division may be allowed in accordance with the provisions of the 
                              basic policy.

 5. You must elect the highest price election provided for basic barley.

    6. Your premium rate for malting barley will be provided by the 
                            actuarial table.

    7. In lieu of section 7.b. (1) and (2) of the Barley Endorsement:

    a. Mature malting barley production which otherwise is not eligible 
for quality adjustment will be reduced .12 percent for each one tenth 
(.1) percentage point of moisture in excess of 13.0 percent; or
    b. Mature malting barley production, which due to insurable causes, 
is not accepted by a buyer of malting barley and will not meet the 
applicable standards for two-rowed or six-rowed malting barley (see 
Sec. 10.a.), will be adjusted by:
    (1) Dividing the value per bushel for the insured malting barley 
(see 10.d.) by the price election for malting barley; and
    (2) Multiplying the result (not to exceed one (1.0)) by the number 
of bushels of such barley.
    c. All grade determinations must be made by a grader licensed to 
grade barley under the Unted States Grain Standards Act from samples 
obtained by a licensed sampler or our loss adjuster. Any production 
which is not sampled and graded as provided by this

[[Page 157]]

section will be considered as malting barley meeting the applicable 
standards.

 8. All provisions of the basic policy not in conflict with this option 
                             are applicable.

    9. Contract changes will be available at your service office by 
              September 1 preceding the cancellation date.

                       10. As used in this option:

    a. Applicable standards for two-rowed and six-rowed malting barley 
are defined in the Official United States Grain Standards.
    b. Approved malting variety means the varieties specified in the 
actuarial table or approved in writing by us.
    c. Buyer means any business enterprise regularly engaged in the 
malting of barley or brewing of malt beverages for human consumption, or 
its representative which is authorized to engage in the purchase of 
malting barley on behalf of or for sale to the malting or brewing 
company.
    d. Value per bushel for the insured malting barley means;
    (1) The local market price of U.S. No. 2 barley (basic barley) if 
the insured mature malting barley production, due to insurable causes, 
has a test weight of at least 40 pounds per bushel and, as determined by 
a grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act, contains more than 85 
percent sound barley; less than 8 percent damaged kernels; less than 35 
percent thin barley; less than 5 percent black barley; and does not 
grade smutty, garlicky, or ergoty; or
    (2) The local market price of basic barley of the same quality as 
the insured malting barley, if the malting barley does not meet all the 
standards in Sec. 10.d.(1).
    The local market price for basic barley as identified in 
Sec. 10.d.(1) and (2) above will be the price on the earlier of the day 
the loss is adjusted or the day the insured barley is sold.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's Signature and Code Number__________________
Date____________________________________________________________________

[53 FR 27664, July 22, 1988, as amended at 53 FR 34022, Sept. 2, 1988; 
60 FR 56935, Nov. 13, 1995]



Sec. 401.137  Fresh market tomato minimum value option.

    The provisions of the Fresh Market Tomato Minimum Value Option for 
the 1991 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                Fresh Market Tomato Minimum Value Option

(This is a continuous option. Refer to section 15 of the General Crop 
Insurance Policy)

Insured's Name____________
Contract No.____________
Address____________
Crop Year____________
Identification No.____________
SSN________ Tax________

    It is hereby agreed to amend the Dollar Plan of Fresh Market Tomato 
Endorsement in accordance with the following terms and conditions.
    1. This option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to insure your tomatoes under this Option.
    2. You must have a Federal Crop Insurance General Policy and Dollar 
Plan Fresh Market Tomato Endorsement (``basic policy'') in force.
    3. You must select either Option I or II below by marking the 
appropriate space below. All insurable acreage in which you have a share 
in the county will be covered under the option you select.
    [  ] Option I:
    (a) Upon purchase of this option, subsection 9.b.(1)(a) of the 
Dollar Plan of Fresh Market Tomato Endorsement will be amended to change 
the reference from $3.00 to $2.00 in determining the total value of 
harvested production to count.
    (b) The premium rate for this option will be an additional 30 
percent of your premium for basic coverage.
    [  ] Option II:
    (a) Upon purchase of this option, subsection 9.b.(1)(a) of the 
Dollar Plan Fresh Market Tomato Endorsement will not apply to your 
tomato acreage. The total value of harvested production will be the 
dollar amount obtained by multiplying the number of 25-pound cartons of 
tomatoes sold by the price received minus allowable costs as contained 
in the actuarial table; however, such price must not be less than zero 
for any carton.
    (b) The premium rate for this option will be an additional 50 
percent of your premium for basic coverage.
    4. All provisions of the General Policy and Dollar Plan of Fresh 
Market Tomato Endorsement not in conflict with this Option are 
applicable.
    5. All determinations under this Option will be made by us.
    6. This Option may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the ``basic policy,'' preceding such crop 
year.

Insured's Signature____________

[[Page 158]]

Date____________
Corporation Representative's
Signature and Code Number____________
Date____________

[54 FR 48073, Nov. 21, 1989, as amended at 62 FR 14777, Mar. 28, 1997]



Sec. 401.138  Fresh market sweet corn endorsement.

    The provisions of the Fresh Market Sweet Corn Endorsement for the 
1991 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                   Fresh Market Sweet Corn Endorsement

                             1. Insured Crop

    a. The crop insured will be sweet corn planted for harvest as fresh 
market sweet corn, grown on insurable acreage, and for which an amount 
of insurance and premium rate are set by the actuarial table.
    b. In addition to the sweet corn insurable in section 2 of the 
general crop insurance policy we do not insure any acreage of sweet 
corn:
    (1) Grown by any entity if that entity had not previously:
    (a) grown sweet corn for commercial sales; or
    (b) participated in the management of a sweet corn farming 
operation.
    (2) Grown for direct consumer marketing;
    (3) Which is not irrigated; or
    (4) Unless the acreage is planted in rows far enough apart to permit 
mechanical cultivation.
    c. Paragraph 2.e.(2) of the general crop insurance policy is not 
applicable to ths endorsement.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from one or more of the following causes occurring within the 
insurance period:
    (1) Frost;
    (2) Freeze;
    (3) Hail;
    (4) Fire;
    (5) Tornado;
    (6) Wind or excess precipitation occurring in conjunction with a 
cyclone; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to causes of loss specified in section 1 of the 
general policy as not insured, we will not insure against any loss of 
production due to:
    (1) Disease
    (2) Insect infestation; or
    (3) Failure to market the sweet corn unless such failure is due to 
actual physical damage from a cause specified in subsection 2.a. of this 
endorsement.

       3. Report of Acreage, Share, and Practice (Acreage Report)

    In addition to the information required by section 3 of the general 
crop insurance policy, you must report by unit for each planting period 
all the acreage of fall, winter, and spring-planted sweet corn (as 
applicable) in the country in which you have a share.

                         4. Amount of Insurance

    a. Subsection 4.d. of the general crop insurance policy is not 
applicable to this endorsement.
    b. The amount of insurance per acre as shown on you policy 
confirmation is progressive by plant growth stage. The stages and 
amounts of insurance are:
    (1) First stage (from planting until the beginning of tasselling, 
(tassel visible above the whorl)) is 65 percent of the final stage 
amount of insurance; and
    (2) Final stage (from tasselling until the acreage is harvested) is 
the final stage amount of insurance (100 percent) as contained in the 
applicable actuarial table.
    c. Any acreage of fresh sweet corn damaged in the first stage to the 
extent that we determine it should not be further cared for, will be 
deemed to have been destroyed, even though you continue to care for it. 
The amount of insurance for such acreage will not exceed the first stage 
guarantee.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the final stage 
amount of insurance times the premium rate, times the insured acreage, 
times you share at the time of planting, times any applicable premium 
adjustment factor for which you may qualify as shown by the actuarial 
table.

                           6. Insurance Period

    In lieu of the provision in section 7 of the general crop insurance 
policy, insurance attaches when the sweet corn is planted in each 
planting period and ends at the earliest of:
    a. Total destruction of the insured crop on the unit;
    b. Discontinuance of harvest of sweet corn on the unit;
    c. The date harvest should have started on the unit on any acreage 
which has not been harvested;
    d. Completion of harvest on a unit; or
    e. Final adjustment of a loss on a unit.

[[Page 159]]

    f. The calendar date for the end of the planting period contained in 
the actuarial table.

                            7. Unit Division

    All insurable sweet corn acreage, by planting period, that would 
otherwise be one unit, as defined in subsection 17.q. of the general 
crop insurance policy, may be divided into more than one unit if, for 
each proposed unit you maintain, written verifiable records of planted 
acreage and harvested production for a least the previous crop year. 
Acreage planted to the insured sweet corn must be located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, on acreage identified by separate ASCS Farm Serial 
Numbers, provided:
    a. The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    b. The sweet corn is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number.
    If you have a loss on any unit, production records for all harvested 
units, whether insured or uninsured, must be provided to us. Production 
that is commingled between optional units will cause those units to be 
combined for insurance purposes. If your sweet corn acreage is not 
divided into optional units as provided in this section, your premium 
amount will be reduced as provided by the actuarial table.

                       8. Notice of Damage or Loss

    In lieu of the notices required in subsections 8.a. (3), and (4) of 
the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within three (3) days of the date of 
damage and indicate the cause of damage and whether a claim for 
indemnity is probable. In the event damage occurs within three (3) days 
of or during harvest, immediate notice stating the cause of damage and 
probability of a claim must be given to us. If a notice has been given, 
we must be notified of the expected time of harvest at the time of 
notice or not later than 72 hours before harvest begins, whichever is 
applicable.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre for the stage of plant growth as defined in subsection 4.c;
    (2) Subtracting therefrom the total dollar value of sweet corn 
production to be counted (see subsection 9.c.); and
    (3) Multiplying this result by your share.
    b. In lieu of subsection 9.d. of the general crop insurance policy, 
if the information reported by you under section 3 of this endorsement 
results in a lower premium than the actual premium determined to be due, 
the amount of insurance on the unit will be computed on the information 
reported, but the value of all production from insurable acreage, 
whether or not reported as insurable, will count against the amount of 
insurance.
    c. The total value of production to be counted for a unit will 
include the value for all harvested and appraised production.
    (1) The total value of harvested production will be the greater of:
    (a) The dollar amount obtained by multiplying the number of 42 pound 
crates of sweet corn harvested on the unit by the minimum value shown 
for the planting period in the actuarial table; or
    (b) The dollar amount obtained by multiplying the number of 42 pound 
crates of sweet corn sold by the price per crate received minus the 
allowable cost established by the actuarial table (subtraction of the 
allowable cost from the price received may not result in an amount per 
crate less than zero).
    (2) The value of any appraised production will not be less than the 
dollar amount obtained by multiplying the appraised number of 42 pound 
crates of sweet corn by the minimum value per crate shown on the 
actuarial table for the planting period and will include:
    (a) The value of any potentially marketable production;
    (b) The value of unharvested production on harvested acreage and the 
value of any potential production lost due to uninsured causes; and
    (c) Not less than the final stage dollar amount of insurance per 
acre for any acreage abandoned or put to another use without prior 
written consent or which is damaged solely by an uninsured cause, or for 
which notice of damage was not given as required by section 8 of this 
endorsement and of the general crop insurance policy.
    (3) Unharvested sweet corn damaged or defective due to insurable 
causes and which is not marketable sweet corn will not be counted as 
production.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of sweet corn becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    d. A replanting payment is available in accordance with subsection 
9.h. of the general crop insurance policy. The acreage to be replanted 
must have sustained a loss in excess of 25 percent of the plant stand. 
In lieu of

[[Page 160]]

subsection 9.h.(1)(c) of the general crop insurance policy, no 
replanting payment will be made on acreage on which a replanting payment 
has been made during the current planting period for the crop year. The 
replanting payment will not exceed the product obtained by multiplying 
$65.00 per acre by your share.

                 10. Cancellation and Termination Dates

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                          dates
------------------------------------------------------------------------
Florida; Atkinson, Baker, Brantley,        July 31
 Camden, Colquitt, Cook, Early, Mitchell,
 and Ware Counties; Georgia and all
 Georgia counties south thereof which
 have a ``fall planting period.''.
Alabama; all other Georgia counties and    February 15
 South Carolina.
All other states.........................  April 15
------------------------------------------------------------------------

                          11. Contract Changes

    Contract changes will be available at your service office by April 
30 preceding the cancellation date for Florida and Georgia Counties with 
a fall planting period, and by November 30 preceding the cancellation 
date in all other states.

                          12. Meaning of Terms

    For the purposes of fresh market sweet corn crop insurance:
    a. Crop year means the period within which the sweet corn is 
normally grown, beginning July 15 and continuing through the harvesting 
of the spring-planted sweet corn. It is designated by the calendar year 
in which spring-planted sweet corn is normally harvested.
    b. Cyclone means a large-scale, atmospheric wind-and-pressure system 
(without regard to the time of year), named by the United States Weather 
Service and characterized by low pressure at its center and 
counterclockwise, circular wind motion, in which the minimum sustained 
surface wind (1-minute mean) is 34 knots (39 miles per hour) or more at 
the time of loss as recorded by the U.S. Weather Service reporting 
station nearest to the crop damage.
    c. Freeze means the condition that exists when air temperature over 
a widespread area remains at or below 32 degrees Fahrenheit, and causes 
damage to plant tissue.
    d. Frost means a deposit or covering of minute ice crystals formed 
from frozen water vapor which causes damage to plant tissue.
    e. Harvest means the final picking of marketable sweet corn on the 
unit.
    f. Marketable sweet corn means the sweet corn which meets the 
standards for grading U.S. 1 or better and will withstand normal 
handling and shipping.
    g. Planting period means the period of time within the dates set by 
the actuarial table, and is designated as ``fall-planting period,'' 
``winter-planting period,'' or ``spring-planting period.''
    h. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    i. Potential production means the number of 42 crates of sweet corn 
which would have been produced per acre by the end of the insurance 
period.
    j. Sweet corn means a type of corn with kernels containing a high 
percentage of sugar and adapted for table use.
    k. Sweet corn grown for direct consumer marketing means sweet corn 
grown for the purpose of selling from the farm directly to the consumer 
without the intervention of a wholesaler, retailer, or packer.

[55 FR 21739, May 29, 1990, as amended at 62 FR 14783, Mar. 28, 1997]



Sec. 401.139  Fresh market tomato (dollar plan) endorsement.

    The provisions of the Fresh Market Tomato Crop lnsurance Endorsement 
for the 1991 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

              Fresh Market Tomato (Dollar Plan) Endorsement

                             1. Insured Crop

    a. The crop insured will be tomatoes (excluding plum and cherry-type 
tomatoes) planted for harvest as fresh market tomatoes.
    b. In lieu of section 2.e.(11) of the general policy, we will insure 
newly cleared land planted to tomatoes.
    c. In addition to the fresh tomatoes not insurable under section 2 
of the general crop insurance policy we do not insure any acreage grown 
by any entity if that entity had not previously:
    (1) Grown tomatoes for commercial sale; or
    (2) Participated in the management of the tomato farming operation.
    d. We do not insure any acreage of tomatoes:
    (1) Grown for direct consumer marketing;
    (2) Which is not irrigated;
    (3) Which is not grown on plastic mulch unless allowed for by the 
actuarial table;
    (4) On which tomatoes, peppers, eggplants, or tobacco have been 
grown and the soil was not fumigated or otherwise properly prepared 
before planting tomatoes;
    (5) Which was planted to tomatoes the preceding planting period, 
unless the tomato plants of the preceding planting period were destroyed 
prior to reaching stage 2 production as defined in section 3 of this 
endorsement.

[[Page 161]]

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Excessive rain;
    (2) Frost;
    (3) Freeze;
    (4) Hail;
    (5) Fire;
    (6) Tornado;
    (7) Wind or excess precipitation occurring in conjunction with a 
cyclone; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

Unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss specified in section 1 of the 
general policy as not insured, we will not insure against any loss of 
production due to:
    (1) Disease or insect infestation; or
    (2) Failure to market the tomatoes unless such failure is due to 
actual physical damage from a cause specified in subsection 2.a.

                         3. Insurance Guarantees

    a. The insurance guarantees per acre are by stages and increase at 
specified intervals, up to the final stage guarantee. The stages and 
guarantees are as follows:
    (1) First stage is from planting until qualifying for stage 2. The 
first stage guarantee is 50 percent of the final stage guarantee.
    (2) Second stage is 60 days (30 days for transplants) after 
planting, and until qualifying for stage 3. The second stage guarantee 
is 75 percent of the final stage guarantee.
    (3) The third stage is 90 days (60 days for transplants) after 
planting until qualifying for the final stage. The third stage guarantee 
is 90 percent of the final stage guarantee.
    (4) The final stage begins the earlier of 105 days (75 days for 
transplants) after planting, or the beginning of harvest.
    b. Any acreage of tomatoes damaged to the extent that growers in the 
area would not further care for the tomatoes, will be deemed to have 
been destroyed even though the tomatoes continue to be cared for. The 
insurance guarantee for such acreage will be the guarantee for the stage 
in which such damage occurs.

                4. Report of Acreage, Share, and Practice

    In addition to the information required in section 3 of the general 
crop insurance policy, you must report the row width. You must report on 
or before the acreage reporting date for each planting period all the 
acreage of fall, winter, and spring-planted tomatoes as applicable in 
the county in which you have a share.

                            5. Annual Premium

    The amount is computed by multiplying the final stage amount of 
insurance times the premium rate, times the insured acreage, times your 
share at the time of each planting, times any applicable premium 
adjustment percentage for which you may qualify (as shown in the 
actuarial table), because you have not selected optional units.

                           6. Insurance Period

    ln lieu of section 7 of the general crop insurance policy, insurance 
attaches on each unit when the tomatoes are planted in each planting 
period and ends at the earliest of:
    a. Total destruction of the tomatoes on the unit;
    b. Discontinuance of harvest of tomatoes on the unit;
    c. The date harvest should have started on the unit on any acreage 
which will not be harvested;
    d. 140 days after the date of direct seeding, transplanting, or 
replanting;
    e. Final harvest; or
    f. Final adjustment of a loss.

                            7. Unit Division

    In addition to units defined in section 17 of the general crop 
insurance policy, insurable tomato acreage will contain units by 
planting period. Insurable tomato acreage which otherwise would be one 
unit as provided above, may be divided into two or more optional units. 
Written, verifiable records of planted and harvested acreage and 
production for each optional unit must be provided to us at our request. 
For optional unit division, acreage planted to the insured tomatoes must 
be located in separate, legally identifiable sections or, in the absence 
of section descriptions, on land identified by separate ASCS Farm Serial 
Numbers, provided:
    a. The boundaries of the section or farms designated by ASCS Farm 
Serial Number are clearly identified, and the insured acreage can be 
easily determined; and
    b. The tomatoes are planted in such a manner that the planting 
pattern does not continue into an adjacent section or farm designated by 
ASCS Farm Serial Number.
    If you have a loss on any unit, preharvest appraisals for that loss 
unit and production records for all harvested units, whether insured or 
uninsured, must be provided to us. Production that is commingled between 
optional units may cause those units to be combined. If your tomato 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided by the actuarial table.

                       8. Notice of Damage or Loss

    a. If a loss is anticipated by you on any unit within 15 days prior 
to or during harvest

[[Page 162]]

and you are going to claim an indemnity on any unit, you must give us 
notice not later than 72 hours after the earliest of:
    (1) Total destruction of the tomatoes on the unit;
    (2) Discontinuance of harvest of any acreage on the unit;
    (3) The date harvest would normally start if any acreage on the unit 
is not to be harvested; or
    (4) 140 days after the direct seeding, transplanting, or replanting 
of the tomatoes (see section 6).
    b. You must not destroy any tomato acreage within a unit until 
inspected by us if an indemnity is to be claimed or the unit.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance, 
times the percentage for the stage of production defined in section 3;
    (2) Subtracting therefrom the total value of production to be 
counted (see subsection 9.b.); and
    (3) Multiplying this result by your share.
    b. The total value of production to be counted for a unit will 
include all harvested and appraised production.
    (1) The total value of harvested production will be the greater of:
    (a) The dollar amount obtained by multiplying the number of 25-pound 
cartons of tomatoes harvested in the unit by $3.00; or
    (b) The dollar amount obtained by multiplying the number of 25-pound 
cartons of tomatoes sold by the price received minus allowable cost set 
by the actuarial table (however, such price must not be less than zero 
for any carton).
    (2) The value of appraised production to be counted will include:
    (a) The value of the potential production (see subsection 13.k.) on 
tomato acreage that has not been harvested the second time for ground-
cultured tomatoes (the third time for staked tomatoes);
    (b) The value of unharvested potential production in excess of 30 
cartons after the second harvest for ground culture tomatoes (third 
harvest for staked tomatoes);
    (c) The value of the potential production lost due to uninsured 
causes; and
    (d) An amount not less than the dollar amount of insurance per acre 
for any acreage abandoned or put to another use without prior written 
consent or which is damaged solely by an uninsured cause.
    The value of any appraised production will not be less than the 
dollar amount obtained by multiplying the number of 25-pound cartons of 
tomatoes appraised by $3.00.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tomatoes becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    c. A replanting payment is available under this endorsement. The 
acreage to be replanted must have sustained a loss in excess of 50 
percent of the plant stand. The replanting payment per acre will be your 
actual cost per acre for replanting, but will not exceed the product 
obtained by multiplying $175.00 per acre by your share.

                  10. Cancellation and Termination Date

    The cancellation and termination date is July 31.

                          11. Contract Changes

    All contract changes will be available at your service office by 
April 30 preceding the cancellation date.

                     12. Production Reporting Dates

    The production reporting provision found in section 4 of the general 
crop insurance policy does not apply to this contract.

                          13. Meaning of Terms

    For the purpose of tomato crop insurance:
    a. Acre means 43,560 square feet of land on which row widths do not 
exceed 6 feet, or if row width exceeds 6 feet, the land on which at 
least 7260 linear feet rows are planted.
    b. Crop Year, in lieu of the definition in the General Policy, means 
the period within which the tomatoes are normally grown beginning August 
1 and continuing through harvesting of the spring-planted tomatoes and 
is designated by the calendar year in which the spring-planted tomatoes 
are normally harvested.
    c. Cyclone means a large-scale, atmospheric wind-and-pressure system 
(without regard to the time of year), named by the United States Weather 
Service and characterized by low pressure at its center and 
counterclockwise, circular wind motion, in which the minimum sustained 
surface wind (1-minute mean) is 34 knots (39 miles per hour) or more at 
the time of loss as recorded by the U.S. Weather Service reporting 
station nearest to the crop damage.
    d. Direct consumer marketing means the method of selling tomatoes 
from the farm directly to the consumer without the intervention of a 
wholesaler, retailer, or packer.
    e. Excessive rain means more than 10 inches of rain on the tomato 
field within a 24-hour period, after the tomatoes have been seeded or 
transplanted.

[[Page 163]]

    f. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit, and cause 
damage to plant tissue.
    g. Frost means a deposition or covering by minute ice crystals 
formed from frozen water vapor, which causes damage to plant tissue.
    h. Harvest means the picking of marketable tomatoes on the unit.
    i. Mature green tomato means a tomato which:
    (1) Has heightened gloss because of the waxy skin that cannot be 
torn by scraping;
    (2) Has well-formed, jelly-like substance in the locules;
    (3) Has seeds that are sufficiently hard so that they are pushed 
aside and not cut by a sharp knife in slicing; and
    (4) Shows no red color.
    j. Planting means transplanting the tomato plants into the field or 
direct seeding in the field.
    k. Planting period means tomatoes planted within the dates set by 
the actuarial table, as fall-planted, winter-planted, or spring-planted.
    l. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    m. Potential production means the number of 25-pound cartons of 
mature green or ripe tomatoes with classification size of 6  x  7 (2\8/
32\ inch minimum diameter) or larger, which the tomato plants would 
produce or, would have produced per acre, by the end of the insurance 
period.
    n. Replanting means performing the cultural practices necessary to 
replant insured acreage to tomatoes.
    o. Ripe Tomato means a tomato which has a definite break in color 
from green to tannish-yellow, pink or red.
    p. Tomatoes grown for direct consumer marketing means tomatoes 
initially intended for direct consumer marketing.

[55 FR 1783, Jan. 19, 1990, as amended at 62 FR 14777, Mar. 28, 1997]



Sec. 401.140  Pear endorsement.

    The provisions of the Pear Crop Insurance Endorsement for the 1989 
and subsequent crop years are as follows:

           Federal Crop Insurance Corporation Pear Endorsement

                             1. Insured Crop

    a. The crop insured will be all pear varieties established as 
adapted to the area and classified as follows:
    (1) Type I: Green Bartlett; and
    (2) Type II: all others.
    b. In addition to the pears not insurable in section 2 of the 
general crop insurance policy, we do not insure any pears:
    (1) Of any type which has not produced an average of 4 tons per acre 
of first grade canning or U.S. number 1 pears in at least one of the 
four previous crop years;
    (2) Which we inspect and consider not acceptable; or
    (3) Which do not have production records acceptable to us.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from any of the following causes occurring within the 
insurance period:
    (1) Drought;
    (2) Earthquake;
    (3) Excess wind;
    (4) Fire;
    (5) Flood;
    (6) Freeze;
    (7) Frost;
    (8) Fruit-set failure;
    (9) Hail;
    (10) Volcanic eruption; or
    (11) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against, contained 
in section 1 of the general crop insurance policy, we will not insure 
against any loss of production due to fire if weeds and other forms of 
undergrowth have not been controlled or tree pruning debris has not been 
removed from the orchard. We also specifically do not insure against 
failure of the fruit to color properly, or the inability to market the 
fruit as a direct result of quarantine, boycott, or refusal of any 
entity to accept production.

         3. Report of Acreage, Share, and Type (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. The date you must annually submit the acreage report is December 
15 of the calendar year insurance attaches in California and January 15 
of the calendar year the insured crop normally blooms in all other 
states.

            4. Production Reporting and Production Guarantees

    a. In addition to the information required by section 4 of the 
general crop insurance policy, you must report by variety:
    (1) The number of bearing trees;
    (2) The number and age of trees per acre and the current planting 
pattern; and
    (3) Any tree damage or change in farming practices which will or may 
reduce yields from previous levels.

[[Page 164]]

                            5. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee (in tons) times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.

                           6. Insurance Period

    a. The calendar date on which insurance attaches is November 21.
    b. The calendar date for the end of the insurance period is the 
following applicable date of the calendar year in which the pears are 
normally harvested:

------------------------------------------------------------------------
                 Variety                               Date
------------------------------------------------------------------------
Bartlett (green and red)................  September 15.
Star Crimson (Crimson Red)..............  September 15.
all others..............................  October 15.
------------------------------------------------------------------------

                            7. Unit Division

    a. Pear acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy may be divided between 
type I and type II. However, alternating rows of, or interplanting of 
type I and II pears will not be divided into separate units.
    b. Pear acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be further divided into more than one unit if:
    (1) You agree to pay an additional premium if provided for by the 
actuarial table;
    (2) For each proposed unit you maintain written, verifiable records 
of acreage and harvested production for at least the previous crop year 
and production reports based on those records are timely filed to obtain 
an insurance guarantee; and
    (3) The acreage of insured pears is located on non-contiguous land.
    c. If you have a loss on any unit, production records for all 
harvested units must be provided. Production that is commingled between 
optional units will cause those units to be combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss you must give us notice of 
the date and cause of damage within 10 days of such damage.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this product by the price election;
    (3) Subtracting the dollar amount obtained by multiplying the total 
production to be counted (see subsection 9.c.) by the price election; 
and
    (4) Multiplying the result by your share.
    b. If a unit contains acreage to which both type I and type II pear 
guarantees apply, the dollar amount of insurance and the dollar amount 
of production to be counted will be determined separately for each type 
and then added together to determine the total amount for the unit.
    c. The total production to be counted for a unit will include:
    (1) All harvested and appraised production that meets the following 
applicable U.S.D.A. grade standards except those pears specified in 
subsection 9.d.:
    (a) For Type I pears, first grade canning (under California Tree 
Fruit Agreement Standards) or U.S. Number 1 (under U.S. Standards for 
summer and fall pears) in California, or U.S. Number 1 (under either 
U.S. standards for summer and fall pears or processing pears) in states 
other than California; or
    (b) For Type II pears, U.S. Number 1 (under U.S. standards for 
summer and fall or winter pears); and
    (2) All production that due to insurable causes does not meet the 
grade requirements in subsection 9.c.(1) but could be marketed for any 
use. The amount of such production to be counted will be determined by:
    (a) Dividing the value of the pears per ton by the highest price 
election available for the insured type and;
    (b) Multiplying the result by the number of tons of such pears.
    c. The amount of size 180 and smaller pears in excess of 10 percent 
of the total production of a type will not be considered as production 
to count except under the provisions of subsection 9.c.(2) if the 
quantity of such pears is the result of an insured cause of loss. (This 
adjustment is not applicable to the Forelle, Seckel, or Winter Nelis 
varieties.)
    d. Appraised production will include:
    (1) Mature and potential production on unharvested acreage;
    (2) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good pear farming practices; and
    (3) Not less than the guarantee for any pears which are abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent.
    e. Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (1) Further damaged by an insured cause and is reappraised by us; or
    (2) Harvested.
    f. If you are going to claim an indemnity on any unit, all 
production must be inspected by us prior to the beginning of harvest and 
we must give you written consent prior to disposal or sale of any 
damaged

[[Page 165]]

fruit. If you fail to meet the requirements of this subsection all such 
production may be considered undamaged and included as production to 
count.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are November 20.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellati

                          12. Meaning of Terms

    a. Crop year means the period beginning with the date insurance 
attaches and extending through normal harvest time and is designated by 
the calendar year in which the pears are normally harvested.
    b. Excess wind means a natural movement of air of sufficient 
velocity to separate pears from the trees.
    c. Freeze means the condition that exists when air temperature over 
a widespread area fall to or below 32 degrees fahrenheit, and cause 
damage to plant tissue or fruit.
    d. Frost means a deposit or covering of minute ice crystals formed 
from frozen water vapor which causes damage to plant tissue or fruit.
    e. Fruit-set failure means failure of the pear trees to develop 
blossoms or set fruit due only to adverse weather conditions.
    f. Harvest means the picking of pears from the trees or removing the 
fruit from the ground.
    g. Non-contiguous Land means any land owned by you or rented by you 
for cash, a fixed commodity payment or any consideration other than a 
share in the insured crop, whose boundaries do not touch at any point. 
Land which is separated by a public or private right-of-way, waterway or 
irrigation canal will be considered to be touching (contiguous).
    h. Ton means 2,000 pounds. All production in varying container sizes 
will be converted to tons.

[54 FR 7527, Feb. 22, 1989]



Sec. 401.142  Raisin endorsement.

    The provisions of the Raisin Crop Insurance Endorsement for the 1990 
through 1996 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Raisin Endorsement

                   1. Crop, Tonnage, and Share Insured

    a. The crop insured will be raisins of grape varieties designated as 
insurable by the actuarial table.
    b. The tonnage insured will be the tonnage in which you have a share 
(as reported by you or as determined by us, whichever we elect).
    c. In lieu of subsection 2.c.(2) of the general crop insurance 
policy, for the purpose of determining the amount of indemnity, your 
share will not exceed your share at the time the raisins are removed 
from the vineyard.
    d. In addition to the raisins not insurable under section 2 of the 
general crop insurance policy, we do not insure any raisins:
    (1) Laid on trays after September 8 in vineyards with north-south 
rows in Merced or Stanislaus Counties or after September 20 in all other 
instances;
    (2) Made from table grape strippings; or
    (3) Made from vines that have had manual, mechanical, or chemical 
treatment to produce table grape sizing.

                            2. Causes of Loss

    The insurance provided is against the unavoidable loss of production 
resulting from rain, occurring within the insurance period, while 
raisins are in the vineyard, on trays or in rolls, for drying unless 
limited by the actuarial table.

      3. Report of Tray Count, Tonnage, and Share (Tonnage Report)

    By execution of the application for insurance you authorize us to 
determine or verify the insured tonnage from records maintained by the 
raisin packer, raisin reconditioner, Raisin Administrative Committee 
established under the United States Department of Agriculture, or any 
other party who may have such records.
    In lieu of section 3 of the general crop insurance policy, you must 
report on our form:
    a. For all raisins which are not damaged, the delivered tons of 
insured raisins produced in the county in which you have a share and 
your share as soon as delivery records are available, but in any event 
no later than March 1 following the crop year;
    b. For insured raisins which are damaged:
    (1) The variety;
    (2) The location of the vineyard;
    (3) The number of trays upon which the raisins have been placed for 
drying; and
    (4) Your share.
    c. You must report separately any tonnage that is not insurable. You 
must report if you do not have a share in any insurable tonnage in the 
county. This report must be submitted annually on or before March 1 of 
the year following the crop year. Indemnities may be determined on the 
basis of information you have submitted on this report. If you do not 
submit this report by the reporting date, we may determine by unit the 
insured tonnage and share or we may deny liability on any unit. Any 
report submitted by you may be

[[Page 166]]

revised only upon our approval. Errors in reporting units may be 
corrected by us to conform to applicable guidelines at the time of 
adjusting a loss.

            4. Amounts of Insurance and Production Reporting

    a. The amount of insurance for the unit will be determined by 
multiplying the insured tonnage times the amount of insurance per ton, 
times your share. Insured tonnage is determined for raisins:
    (1) Not damaged by rain, by the raisins delivered (delivered tons); 
or
    (2) Damaged by rain, by adding raisins delivered (delivered tons), 
if any, to any verifiable loss of production due to rain damage in the 
vineyard. Tray weights will only be used to establish raisin tonnage on 
trays or in rolls not removed from the vineyard.
    b. Subsection 4.d. of the general crop insurance policy is not 
applicable to this crop.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per ton times the premium rate, times the insured tonnage, 
times your share on the date insurance attaches, times any applicable 
premium adjustment percentage shown on the actuarial table.

                           6. Insurance Period

    In lieu of section 7 of the general crop insurance policy, insurance 
attaches at the time the raisins are placed on trays for drying and ends 
the earlier of:
    a. October 20;
    b. The date the raisins are boxed; or
    c. The date the raisins are removed from the vineyard.

                            7. Unit Division

    a. Raisin acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
units by grape variety.
    b. Raisin acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if, for each proposed 
(optional) unit:
    (1) You maintain written, verifiable records of raisin production 
for at least the previous crop year; and
    (2) The acreage of insured raisins is located on noncontiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be maintained and be made available to us at our request. 
Production that is commingled between optional units will cause those 
units to be combined.

                       8. Notice of Damage or Loss

    In lieu of section 8 of the general crop insurance policy, if you 
are going to claim an indemnity on any unit, we must be given notice 
within 72 hours of the time the rain fell on the raisins. We may reject 
any claim for indemnity if such damage is not reported within 72 hours.

                         9. Claim for Indemnity

    a. In lieu of subsection 9.a. of the general crop insurance policy 
any claim for indemnity must be submitted to us on our form not later 
than March 31 after the calendar date for the end of the insurance 
period.
    b. In addition to the requirements in subsection 9.b. of the general 
crop insurance policy, we will not pay any indemnity unless we are 
allowed in writing to examine and obtain any records pertaining to the 
production and marketing of any raisins in which you have a share from 
the raisin packer, raisin reconditioner, Raisin Administrative Committee 
established under order of the United States Department of Agriculture, 
or any other party who may have such records.
    c. The indemnity will be determined on each unit by:
    (1) multiplying the insured tonnage of raisins by the amount of 
insurance per ton;
    (2) subtracting therefrom the total value of all insured damaged and 
undamaged raisins; and
    (3) multiplying this result by your share.
    d. Undamaged raisins or raisins damaged solely by uninsured causes 
will be valued at the insurance price (see subsection 12.c.).
    e. Raisins damaged partially by rain and partially by uninsured 
causes will be valued at the highest prices obtainable, adjusted for any 
reduction in value due to uninsured causes.
    f. Raisins damaged by rain, but which are reconditioned and meet the 
Raisin Administrative Committee (RAC) standards for raisins, will be 
valued at the insurance price. An allowance for reconditioning will be 
deducted from the value only if you obtained our written consent prior 
to reconditioning. The allowance for reconditioning will be made only 
when the raisins have been inspected by the USDA and, due to rain damage 
while on the tray are found to contain mold, embedded sand, excessive 
moisture, or micro-organisms in excess of RAC tolerances.
    The reconditioning allowance will be made based on the actual 
(unadjusted) weight of raisins to be reconditioned. Additionally, when 
raisins contain excessive moisture due to rain, the reconditioning 
allowances will be made only when the moisture is determined to be in 
excess of 18.0 percent and the raisins are wash-and-dry reconditioned. 
The maximum allowance for reconditioning is contained in the actuarial 
table, but the

[[Page 167]]

total reconditioning allowance will not exceed the value of the raisins 
after reconditioning. We may require you to recondition a representative 
sample of not more than 10 tons of raisins to determine if they meet RAC 
standards for marketable raisins. On the basis of determinations made 
after such sampling, we may require you to recondition all raisins, or 
we may value such raisins at the insurance price. If the representative 
sample does not meet RAC standards for marketable raisins, the cost of 
reconditioning the sample will be deducted from the total value of the 
raisins for the unit.
    g. The value to count for any raisins produced on the unit and not 
removed from the vineyard will be the larger of the appraised salvage 
value or $35.00 per ton. You must box and deliver any raisins that can 
be removed from the vineyard.
    h. We may acquire all the rights and title to your share of any 
raisins damaged by rain. In such event, the raisins will be valued at 
``zero'' in determining the amount of loss and we will have the right of 
ingress or egress to the extent necessary to take possession of, care 
for, and remove such raisins.
    i. Raisins destroyed without USDA inspection or put to another use 
without our consent will be valued at the amount of insurance.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are July 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is April 30 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the calendar year in which the raisins are placed 
on trays for drying.
    b. Delivered ton means a ton of raisins or raisin material delivered 
to a packer, processor, buyer or a reconditioner, before any adjustment 
for B and better maturity standards, and after adjustment for moisture 
over 16 percent and adjusted for substandard raisins over 5 percent. 
Raisin tonnage will be reduced 0.12 percent for each 0.10 percent 
moisture in excess of 16.0 percent.
    c. Insurance price means the value established by us for raisin 
tonnage for the purpose of determining indemnities. This value is shown 
in the actuarial table.
    d. Noncontiguous land means land which is not touching at any point. 
Land which is separated by only a public or private right-of-way will be 
considered to be touching (contiguous).
    e. Raisins mean specific varieties of grapes, designated insurable 
by the actuarial table, which have been laid on trays or are in rolls in 
the vineyard to dry.
    f. Raisin tonnage report means a form prescribed by us for annually 
reporting all the tonnage of raisins in the county in which you have a 
share.
    g. Substandard means a quality of raisins that fail to meet the 
requirements of U.S. Grade C except that layer or cluster raisins with 
seeds or Zante Currant raisins will be considered substandard if they 
fail to meet the requirements of U.S. Grade B.
    h. Table grapes mean grapes which are grown for commercial sales as 
fresh grapes on acreage where the cultural practices to produce fresh 
marketable grapes were carried out.
    i. Ton means 2,000 pounds. Raisin tonnage may be computed on the 
basis of one ton of raisins insured for every four and one-half tons of 
fresh grapes when first placed on trays for drying.
    j. USDA inspection means the actual determination by a USDA 
inspector of all defects. Limited inspections or inspections on 
submitted samples are not considered ``USDA inspections.''

[54 FR 43275, Oct. 24, 1989, as amended at 62 FR 12070, Mar. 14, 1997]



Sec. 401.143  Florida citrus endorsement.

    The provisions of the Florida Citrus Endorsement for the 1990 
through 1997 crop years are as follows:

     Federal Crop Insurance Corporation--Florida Citrus Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following citrus types you 
elect:
  Type I Early and mid-season oranges;
  Type II Late oranges;
  Type III Grapefruit for which freeze damage will be adjusted on a 
          juice basis for white grapefruit and on a fresh-fruit basis 
          for pink and red grapefruit;
  Type IV Navel oranges, tangelos and tangerines;
  Type V Murcott Honey Oranges (also known as Honey Tangerines) and 
          Temple Oranges;
  Type VI Lemons; or
  Type VII Grapefruit for which freeze damage will be adjusted on a 
          fresh basis for all grapefruit.
    If you insure grapefruit, you must insure all of your grapefruit 
under a single type designation (type III or type VII). ``Meyer Lemons'' 
and oranges commonly know as ``Sour Oranges'' or ``Clementines'' will 
not be included in any of the insurable types of citrus.
    b. In addition to the citrus not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus;

[[Page 168]]

    (1) Which cannot be expected to mature each crop year within the 
normal maturity period for the type;
    (2) Produced by trees that have not reached the tenth growing season 
after being set out, unless otherwise provided in the actuarial table or 
we agree to insure such citrus in writing;
    (3) Of the Robinson tangerine variety, for any crop year in which 
you have elected to exclude such tangerines from insurance (you must 
elect this exclusion prior to April 30 preceding the crop year for which 
the exclusion is to become effective except that for the first crop 
year, you must elect this exclusion by the later of April 30 or the time 
you submit the application for insurance);
    c. Upon our approval, you may elect to insure or exclude from 
insurance for any crop year any insurable acreage in any unit which has 
a potential of less than 100 boxes per acre. If you:
    (1) Elect to insure such acreage, we will increase the potential to 
100 boxes per acre when determining the amount of loss;
    (2) Elect to exclude such acreage, we will disregard the acreage for 
all purposes related to this contract; or
    (3) Do not elect to insure or exclude such acreage:
    (a) We will disregard the acreage if the production is less than 100 
boxes per acre; or
    (b) If the production from such acreage is 100 or more boxes per 
acre, we will determine the percent of damage on all of the insurable 
acreage for the unit, but will not allow the percent of damage for the 
unit to be increased by including such acreage.
    d. We may exclude from insurance, or limit the amount of insurance 
on, any acreage which was not insured the previous crop year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
  (1) Fire;
  (2) Freeze;
  (3) Hail;
  (4) Hurricane; or
  (5) Tornado; unless those causes are excepted, excluded, or limited by 
          the actuarial table or section 9 of the general crop insurance 
          policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
loss of production due to:
    (1) Any damage to the blossoms or trees;
    (2) Fire, if weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the grove;
    (3) Inability to market the fruit as a direct result of quarantine, 
boycott, or refusal of any entity to accept production unless production 
has actual physical damage due to a cause specified in subsection 2.a.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy you must;
    (1) Report the crop type; and
    (2) Designate separately any acreage that is excluded under section 
1 of this endorsement.
    b. The date by which you must annually submit the acreage report is 
April 30 except for the first crop year, the report must be submitted by 
the later of April 30 or the time you submit the application for 
insurance.

                         4. Production Reporting

    Production potential for each unit is determined during loss 
adjustment. Therefore, subsection 4.d. of the general crop insurance 
policy is not applicable to this endorsement. Production history is not 
required.

                            5. Annual Premium

    a. The annual premium amount is computed by multiplying the amount 
of insurance times the premium rate, times the insured acreage, times 
your share at the time insurance attaches.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1988 crop year 
under the terms of the experience table contained in the citrus policy 
for the 1989 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1989 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           6. Insurance Period

    a. The calendar date on which insurance attaches is May 1 for each 
crop year, except that for the first crop year, if the application is 
accepted by us after April 20, insurance will attach on the tenth day 
after the application is received in the service office.
    b. The end of the insurance period is the date of the calendar year 
following the year of normal bloom as follows:
    (1) January 31 for tangerines and navel oranges;
    (2) April 30 for lemons, tangelos, early and mid-season oranges; and

[[Page 169]]

    (3) June 30 for late oranges, grapefruit, Temple and Murcott Honey 
Oranges.

                            7. Unit Division

    a. Citrus acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit, if you agree to pay 
additional premium if required by the actuarial table and if, for each 
proposed unit:
    (1) You maintain written, verifiable records of acreage and 
harvested production for at least the previous crop year; and
    (2) Acreage planted to insured citrus is located in separate, 
legally identifiable sections, provided:
    (a) The boundaries of the sections are clearly identified and the 
insured acreage is easily determined; and
    (b) The trees are planted in such a manner that the planting pattern 
does not continue into the adjacent section; or
    (3) The acreage of insured citrus is located on noncontiguous land. 
If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss:
    a. You must give us written notice of the date and cause of damage; 
and
    b. If an indemnity is to be claimed on any unit you must give us 
notice by the calendar date for the end of the insurance period if 
harvest will not begin by that date.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Computing the average percent of damage to the citrus which 
(without regard to any percent of damage arrived at through prior 
inspections) will be the ratio of the number of boxes of citrus 
considered damaged from an insured cause to the potential rounded to the 
nearest tenth (.1) of a percent. Citrus will be considered undamaged 
potential if it is:
    (a) Or could be marketed as fresh fruit;
    (b) Harvested prior to an inspection by us; or
    (c) Harvested within 7 days after a freeze;
    (2) For limited and additional coverages, by multiplying the result 
in excess of 10 percent (e.g., 45%-10%=35% payable), times the amount of 
insurance for the unit (the amount of insurance for the unit is 
determined by multiplying the insured acreage on the unit times the 
applicable amount of insurance per acre); or
    (3) For catastrophic risk protection coverage, the result in excess 
of 50 percent divided by 50 percent (e.g. if the insured's average 
percent of damage is 75%; the percentage of the guarantee payable is 50 
percent, (75%-50%)50%); if the insured's average percent of 
damage is 60 percent, the percentage of the guarantee payable is 20 
percent, (60%-50%)50%) times the amount of insurance for the 
unit. The amount of insurance for the unit is determined by multiplying 
the insured acreage on the unit times the applicable amount of insurance 
per acre. For any average percentage of damage less than 50%, the 
insured is not eligible for an indemnity payment; and
    (4) Multiplying the product obtained in (2) above for limited and 
additional coverage, or the product obtained in (3) above for 
catastrophic risk protection, by your share.
    b. Pink and red grapefruit of citrus Type III and citrus of Types 
IV, V, and VII which are seriously damaged by freeze (as determined by a 
fresh-fruit cut of a representative sample of fruit in the unit, in 
accorance with the applicable provisions of the Florida Citrus Code), 
and are not or could not be marketed as fresh-fruit will be considered 
damaged to the following extent:
    (1) If 15 percent or less of the fruit in a sample shows serious 
freeze damage, the fruit will be considered undamaged; or
    (2) If 16 percent or more of the fruit in a sample shows serious 
freeze damage, the fruit will be considered 50 percent damaged, except 
that:
    (a) For tangerines of citrus Type IV, damage in excess of 50 percent 
will be the actual percent of damaged fruit; and
    (b) For other applicable varieties, if we determine that the juice 
loss in the fruit exceeds 50 percent, the amount so determined will be 
considered the percent of damage.
    c. Notwithstanding the provisions of subsection 9.b., as to any pink 
and red grapefruit of Type III and citrus of Types IV, V, and VII in any 
unit which is mechanically separated (using the specific gravity 
``floatation'' method) into undamaged and freeze-damaged fruit, the 
amount of damage will be the actual percent of freeze-damaged fruit not 
to exceed 50 percent and will not be affected by subsequent fresh-fruit 
marketing. The 50 percent limitation on freeze-damaged fruit, 
mechanically separated, will not apply to tangerines of citrus Type IV.
    d. Any citrus of Types I, II, and VI and white grapefruit of Type 
III which is damaged by freeze, but may be processed by canning or 
processing plants, will be considered as marketable for juice. The 
percent of damage will be determined by relating the juice content of 
the damaged fruit as determined by test house analysis to:

[[Page 170]]

    (1) The average juice content based on acceptable records, furnished 
by you, showing the juice content of fruit produced on the unit for the 
three previous crop years; or
    (2) The following juice content, if acceptable records are not 
furnished:
  Type I--44 pounds of juice per 90 pound box
  Type II--47 pounds of juice per 90 pound box
  Type III--38 pounds of juice per 85 pound box
  Type VI--43 pounds of juice per 90 pound box
    e. Any citrus on the ground which is not picked up and marketed will 
be considered totally lost if the damage was due to an insured cause.
    f. Any citrus which is unmarketable either as fresh fruit or for 
juice because it is immature, unwholesome, decomposed, adulterated, or 
otherwise unfit for human consumption due to an insured cause will be 
considered totally lost.
    g. Pink and red grapefruit citrus of Type III and citrus Types IV, 
V, and VII which are unmarketable as fresh fruit due to serious damage 
from hail as defined in United States Standards for grades of Florida 
fruit will be considered totally lost.

                 10. Cancellation and Termination Dates

    The cancellation date is April 30 of the calendar year in which the 
crop normally blooms. The termination date is April 30 of the calendar 
year following the year of normal bloom.

                          11. Contract Changes.

    The date by which contract changes will be available in your service 
office is the April 15 immediately preceding the cancellation date.

                          12. Meaning of Terms

    a. Box means a standard field box as prescribed in the Florida 
Citrus Code.
    b. Crop year means the period beginning May 1 and extending through 
June 30 of the following year and will be designated by the calendar 
year in which the insurance period ends.
    c. Harvest means the severance of citrus fruit from the tree either 
by pulling, picking, or severing by mechanical or chemical means or 
picking up the marketable fruit from the ground.
    d. Noncontiguous land means any land owned by you and rented by you 
for cash, a fixed commodity payment or any consideration other than a 
share in the insured crop, whose boundaries do not touch at any point. 
Land which is separated by a public or private right-of-way, waterway or 
irrigation canal will be considered to be touching (contiguous).
    e. Potential means production:
    (1) Which would have been produced had damage not occurred and 
includes citrus which:
    (a) Was picked before damage occurred;
    (b) Remained on the tree after damage occurred;
    (c) Was lost from an insured cause; and
    (d) Was lost from an uninsured cause.
    (2) The potential will not include:
    (a) Citrus lost before insurance attaches for any crop year;
    (b) Citrus lost by normal dropping; or
    (c) Any tangerines which normally would not, by the end of the 
insurance period for tangerines, meet the 210 pack size (2 and \4/16\ 
inch minimum diameter) under United States Standards.

[54 FR 14203, Apr. 10, 1989, as amended at 60 FR 29750, June 6, 1995; 61 
FR 69001, Dec. 31, 1996]



Sec. 401.146  Fresh plum endorsement.

    The provisions of the Fresh Plum Crop Insurance Endorsement for the 
1990 through the 1997 crop years are as follows:

                   Federal Crop Insurance Corporation

                         Fresh Plum Endorsement

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;
    (4) Wildlife;
    (5) Volcanic eruption;
    (6) An insufficient number of chilling hours to effectively break 
dormancy; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;
unless these causes of loss are excepted, excluded, or limited by the 
actuarial table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured under section 1b of 
the general crop insurance policy, we will not insure against any loss 
of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the orchard;
    (2) Disease or insect infestation unless specifically caused by 
adverse weather;
    (3) Fruit cullage caused by: green; overripe; undersize condition; 
and mechanical damage which causes rejection of the crop at the packing 
house; or
    (4) Inability to market as a direct result of quarantine, boycott, 
or refusal of any entity

[[Page 171]]

to accept or harvest production unless production has actual physical 
damage due to a cause specified in subsection 1.a.

                       2. Insured Crop and Acreage

    a. The crop insured will be plums grown for fresh market fruit or 
processing for which we provide a guarantee and premium rate:
    b. In lieu of the provisions of subsection 2e of general crop 
insurance policy, we do not insure any plum acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the fifth growing season 
after being set out;
    (3) Which has not produced at least 200 lugs fresh market production 
in the preceding crop year unless the acreage is inspected by us and 
approved for coverage;
    (4) For which production records acceptable to us for at least the 
previous crop year are not provided;
    (5) Which we consider not acceptable;
    (6) Which is interplanted with another crop, unless we inspect such 
acreage and give our approval in writing;
    (7) On which is grown a type or variety not established as adapted 
to the area; excluded by the actuarial table; or not regulated for plums 
by the California Tree Fruit agreement, a related crop advisory board, 
or the State;
    (8) From which the fruit is harvested directly by the public; or
    (9) If the orchard practices carried out are not in accordance with 
the orchard practices for which the premium rates have been established.

     3. Report of Acreage, Share, Type and Practice (Acreage Report)

    The acreage report must be filed on or before January 31. You must 
report the crop type in addition to the information required by section 
3 of the general crop insurance policy for the acreage report.

    4. Production Reporting, Coverage Level, Practices for Computing 
                 Indemnities, and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees;
    (2) The number of trees planted per acre;
    (3) Tree damage or use of production practices which has or may 
reduce the yield from previous levels; and
    (4) If the number of bearing trees (fifth growing season and older) 
is reduced more than 10% from the preceding calendar year (In such 
event, the production guarantee will be reduced 1 percent, through 
adjustment to your average yield for each 1 percent reduction in excess 
of 10 percent).
    b. You may select only one coverage level and price election for 
plums for the crop year.

                            5. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches.

                           6. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, coverage begins for each crop year on February 1, following our 
inspection and determination of acceptability. Insurance ends on each 
area at least one acre in size at the earliest of:
    a. Total destruction of the insured crop;
    b. Harvest;
    c. The date harvest would normally start;
    d. Final adjustment of a loss; or
    e. September 30 of the crop year.

                                7. Units

    Plum acreage grown on non-contiguous land that would otherwise be 
one unit, as defined in section 17 of the general crop insurance policy, 
may be divided into more than one unit if, for each proposed unit, you 
maintain written, verifiable records of acreage and harvested production 
for at least the previous crop year.
    If you have a loss on any unit, production records for all harvested 
units must be maintained and be made available to us at our request. 
Production that is commingled between optional units will cause those 
units to be combined.

                       8. Notice of Damage or Loss

    In lieu of the notices required in section 8.a.(2), (3), and (4) of 
the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within 72 hours of the date of damage 
and indicate the causes of damage and whether a claim for indemnity is 
probable. Notwithstanding the previous sentence, if damage occurs within 
72 hours of or during harvest, immediate notice stating the cause of 
damage and probability of a claim must be given to us. If notice is 
given under the first sentence of this paragraph, we must be notified of 
the time of harvest at least 72 hours before harvest begins.

                         9. Claim for Indemnity

    In addition to section 9 of the general crop insurance policy:
    a. The indemnity will be determined separately for each unit of 
plums by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of plums to be 
counted;

[[Page 172]]

    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by the insured share.
    b. The total production (standard lug equivalent) (see section 
12.d.) to be counted for a unit will include all production harvested, 
and all appraised production. Such production must meet U.S. 1 
standards as modified (before the date insurance attaches) by the latest 
California Tree Fruit Agreement Publication for fresh plums.
    (1) Mature production of fresh plums damaged by insurable causes 
within the insurance period that could be marketed for any use other 
than fresh packed plums, will be determined by multiplying the number of 
tons that could be marketed by the value per ton of fruit or $50.00 per 
ton, whichever is greater, and dividing that result by the highest price 
election available for the type. This result will be the number of 
standard lug equivalents to be considered as production to count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the applicable guarantee for any acreage which is 
abandoned, destroyed by you without our prior written consent; and
    (c) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of plums becomes general in the 
county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested plums may be 
determined on the basis of orchard appraisals conducted after the end of 
the insurance period or discontinuance of harvest. We may appraise and 
consider as production to count, any insured fruit remaining on acreage 
not clean harvested.
    (5) We may delay final appraisal until the extent of damage can be 
determined.
    c. In the absence of acceptable records to determine the disposition 
of harvested plums, we may elect to determine such disposition and the 
amount of such production to be counted for the unit.
    d. You must authorize us in writing to examine and obtain any 
records pertaining to production and marketing of any plums, whether 
insured or uninsured, whether this crop year or prior crop years, from 
the broker, shipper, advisory board, marketing order or any other source 
we deem necessary.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are January 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is October 31 preceding the cancellation date. Acceptance of any 
change will be conclusively presumed in the absence of notice from you 
to cancel the contract.

                          12. Meaning of Terms

    For the purpose of Plum crop insurance:
    a. Appraisal means an estimate of the potential production 
determined by our representative using our prescribed procedures.
    b. Crop Year means the period beginning with the date insurance 
attaches and extending through the normal harvest time, and will be 
designated by the calendar year in which the insured plums are normally 
harvested.
    c. Harvest means the picking of mature plums from the trees by hand 
or machine.
    d. Lug means a packed container of fresh plums weighing 28 pounds. 
All fresh production to count of varying lug sizes will be converted to 
standard lug equivalents on the basis of 28 pounds of packed plums.

[55 FR 4395, Feb. 8, 1990, as amended at 62 FR 33735, June 23, 1997]



PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT; REGULATIONS FOR THE 1999 AND SUBSEQUENT REINSURANCE YEARS--Table of Contents




Sec.
402.1  General statement.
402.2  Applicability.
402.3  OMB control numbers.
402.4  Catastrophic Risk Protection Endorsement Provisions.

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    Source: 61 FR 42985, Aug. 20, 1996, unless otherwise noted.



Sec. 402.1  General statement.

    The Federal Crop Insurance Act, as amended by the Federal Crop 
Insurance Reform Act of 1994, requires the Federal Crop Insurance 
Corporation to implement a catastrophic risk protection plan of 
insurance that provides a basic level of insurance coverage to protect 
producers in the event of a catastrophic crop loss due to loss of yield 
or prevented planting, if provided by the Corporation, provided the crop 
loss

[[Page 173]]

or prevented planting is due to an insured cause of loss specified in 
the crop insurance policy. This Catastrophic Risk Protection Endorsement 
is a continuous endorsement that is effective in conjunction with a crop 
insurance policy for the insured crop. Catastrophic risk protection 
coverage will be offered through approved insurance providers if there 
are a sufficient number available to service the area. If there are an 
insufficient number available, as determined by the Secretary, local 
offices of the Farm Service Agency will provide catastrophic risk 
protection coverage.



Sec. 402.2  Applicability.

    This Catastrophic Risk Protection Endorsement is applicable to each 
crop for which catastrophic risk protection coverage is available and 
for which the producer elects such coverage.



Sec. 402.3  OMB control numbers.

    The information collection activity associated with this rule has 
been approved by the Office of Management and Budget (OMB) pursuant to 
the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB 
control number 0563-0003.



Sec. 402.4  Catastrophic Risk Protection Endorsement Provisions.

    The Catastrophic Risk Protection Endorsement Provisions for the 1999 
and succeeding reinsurance years are as follows:

                        Department of Agriculture

Federal Crop Insurance Corporation

                Catastrophic Risk Protection Endorsement

(This is a continuous endorsement)

    If a conflict exists between this Endorsement and any of the 
policies specified in section 2 or the Special Provisions for the 
insured crop, this endorsement will control.

                          Terms and Conditions

                             1. Definitions

    Approved insurance provider. A private insurance company, including 
its agents, that has been approved and reinsured by FCIC to provide 
insurance coverage to producers participating in the Federal Crop 
Insurance program.
    Approved yield. The amount of production per acre computed in 
accordance with FCIC's Actual Production History Program (7 CFR part 
400, subpart G) or for crops not included under 7 CFR part 400, subpart 
G, the yield used to determine the guarantee in accordance with the crop 
provisions or the Special Provisions.
    County. The political subdivision of a state listed in the actuarial 
table and designated on your accepted application, including land in an 
adjoining county, provided such land is part of a field that extends 
into the adjoining county and the county boundary is not readily 
discernable. For peanuts and tobacco, the county will also include any 
land identified by a FSA farm serial number for the county but 
physically located in another county.
    Crop of economic significance. A crop that has either contributed in 
the previous crop year, or is expected to contribute in the current crop 
year, ten percent (10%) or more of the total expected value of your 
share of all crops grown in the county. However, a crop will not be 
considered a crop of economic significance if the expected liability 
under the Catastrophic Risk Protection Endorsement is equal to or less 
than the administrative fee required for the crop.
    Expected market price. (price election) The price per unit of 
production (or other basis as determined by FCIC) anticipated during the 
period the insured crop normally is marketed by producers. This price 
will be set by FCIC before the sales closing date for the crop. The 
expected market price may be less than the actual price paid by buyers 
if such price typically includes remuneration for significant amounts of 
post-production expenses such as conditioning, culling, sorting, 
packing, etc.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within USDA.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture or any successor agency.
    Insurance is available. When crop information is contained in the 
county actuarial documents for a particular crop.
    Linkage requirement. The legal requirement that a producer must 
obtain at least catastrophic risk protection coverage for any crop of 
economic significance as a condition of receiving benefits for such crop 
from certain other USDA programs in accordance with section 12(e), 
unless the producer executes a waiver of any eligibility for emergency 
crop loss assistance in connection with the crop.
    Secretary. The Secretary of the United States Department of 
Agriculture.
    USDA. The United States Department of Agriculture.
    Zero acreage report. An acreage report filed by you that certifies 
you do not have a share in the crop for that crop year.

[[Page 174]]

      2. Eligibility, Life of Policy, Cancellation, and Termination

    (a) You must have one of the following policies in force to elect 
this Endorsement:
    (1) The General Crop Insurance Policy (7 CFR 401.8) and crop 
endorsement;
    (2) The Common Crop Insurance Policy (7 CFR 457.8) and crop 
provisions;
    (3) The Group Risk Plan Policy, if available for catastrophic risk 
protection; or
    (4) A specific named crop insurance policy.
    (b) You must have made application for catastrophic risk protection 
on or before the sales closing date for the crop in the county.
    (c) You must be a ``person'' as defined in the crop policy to be 
eligible for catastrophic risk protection coverage.

                            3. Unit Division

    (a) This section is in lieu of the unit provisions specified in the 
applicable crop policy.
    (b) For catastrophic risk protection coverage, a unit will be all 
insurable acreage of the insured crop in the county on the date coverage 
begins for the crop year:
    (1) In which you have one hundred percent (100%) crop share; or
    (2) Which is owned by one person and operated by another person on a 
share basis.

(Example: If, in addition to the land you own, you rent land from five 
landlords, three on a crop share basis and two on a cash basis, you 
would be entitled to four units; one for each crop share lease and one 
that combines the two cash leases and the land you own.)

    (c) Further division of the units described in paragraph (b) above 
is not allowed under this Endorsement.

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

    (a) Notwithstanding any provision contained in any other policy 
document, for the 1995 through 1998 crop years, catastrophic coverage 
will offer protection equal to fifty percent (50%) of your approved 
yield indemnified at sixty percent (60%) of the expected market price, 
or a comparable coverage as established by FCIC.
    (b) Notwithstanding any provision contained in any other policy 
document, for the 1999 and subsequent crop years, catastrophic coverage 
will offer protection equal to fifty percent (50%) of your approved 
yield indemnified at fifty-five percent (55%) of the expected market 
price, or a comparable coverage as established by FCIC.
    (c) If the crop policy denominates coverage in dollars per acre or 
other measure, or any other alternative method of coverage, such 
coverage will be converted to the amount of coverage that would be 
payable at fifty percent (50%) of your approved yield indemnified at 
sixty percent (60%) of the expected market price for the 1995 through 
1998 crop years and fifty percent (50%) of your approved yield 
indemnified at fifty-five percent (55%) of the expected market price for 
the 1999 and subsequent crop years.
    (d) You may elect catastrophic coverage for any crop insured or 
reinsured by FCIC on either an individual yield and loss basis or an 
area yield and loss basis, if both options are offered as set out in the 
Actuarial Table or the Special Provisions.
    (e) To be eligible for an indemnity under this endorsement you must 
have suffered at least a 50 percent loss in yield.

                          5. Report of Acreage

    (a) The report of crop acreage that you file in accordance with the 
crop policy must be signed on or before the acreage reporting date. For 
catastrophic risk protection, unless the other person with an insurable 
interest in the crop objects in writing prior to the acreage reporting 
date and provides a signed acreage report on their own behalf, the 
operator may sign the acreage report for all other persons with an 
insurable interest in the crop without a power of attorney. All persons 
with an insurable interest in the crop, and for whom the operator 
purports to sign and represent, are bound by the information contained 
in that acreage report.
    (b) For the purpose of determining the amount of indemnity only, 
your share will not exceed your insurable interest at the earlier of the 
time of loss or the beginning of harvest. Unless the accepted 
application clearly indicates that insurance is requested for a 
partnership or joint venture, insurance will only cover the crop share 
of the person completing the application. The share will not extend to 
any other person having an interest in the crop except as may otherwise 
be specifically allowed in this endorsement. Any acreage or interest 
reported by or for your spouse, child or any member of your household 
may be considered your share. 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. A lease 
containing provisions for either a minimum payment (such as a specified 
amount of cash, bushels, pounds, etc.,) or a crop share will be 
considered a cash lease. Land rented for cash, a fixed commodity 
payment, or any consideration other than a share in the insured crop on 
such land will be considered as owned by the lessee.

                6. Annual Premium and Administrative Fees

    (a) Notwithstanding any provision contained in any other policy 
document, you will not be responsible to pay a premium, nor will the 
policy be terminated because the premium has not been paid. FCIC will 
pay a

[[Page 175]]

premium subsidy equal to the premium established for the coverage 
provided under this endorsement.
    (b) In return for catastrophic risk protection coverage, you must 
pay an administrative fee to the insurance provider within 30 days after 
you have been billed (You will be billed by the billing date stated in 
the Special Provisions);
    (1) The administrative fee owed for each crop in the county is $60..
    (2) Payment of an administrative fee will not be required if you 
file a bona fide zero acreage report on or before the acreage reporting 
date for the crop (if you falsely file a zero acreage report you may be 
subject to criminal and administrative sanctions).
    (c) The administrative fee provisions of paragraph (b) of this 
section do not apply if you meet the definition of a limited resource 
farmer (see section 1). If you qualify as a limited resource farmer and 
desire to be exempted from paying the administrative fee you must sign 
the waiver at the time of application (on or before the sales closing 
date.)
    (d) When a crop policy has provisions to allow you the option to 
separately insure individual crop types or varieties, you must pay a 
separate administrative fee in accordance with paragraph (b) of this 
section for each type or variety you elect to separately insure.
    (e) If the administrative fee is not paid when due, you, and all 
persons with an insurable interest in the crop under the same contract, 
may be ineligible for certain other USDA program benefits as set out in 
section 12, and all such benefits already received for the crop year 
must be refunded.

                             7. Insured Crop

    The crop insured is specified in the applicable crop policy, 
however:
    (a) Notwithstanding any other policy provision requiring the same 
insurance coverage on all insurable acreage of the crop in the county, 
if you purchase limited or additional coverage for a crop, you may 
separately insure acreage under catastrophic coverage that has been 
designated as ``high risk'' land by FCIC, provided that you execute a 
High Risk Land Exclusion Option and obtain a catastrophic risk 
protection policy with the same approved insurance provider, if 
available, on or before the applicable sales closing date. If 
catastrophic coverage is not available from the same insurance provider, 
you may obtain the catastrophic risk protection policy for the high risk 
land from another approved insurance provider or FSA, if available. You 
will be required to pay a separate administrative fee for both the 
limited or additional coverage policy and the catastrophic coverage 
policy unless the maximum administrative fee would be exceeded.
    (b) A tobacco producer may insure one hundred percent (100%) of the 
tobacco crop that is identified by a tobacco marketing card issued by 
FSA for a specific producer and Farm Serial Number under one CAT policy, 
provided the producer and other persons each have a share in the crop, 
all the shareholders agree in writing to such arrangement, and none of 
the persons hold any other interest in another tobacco crop for which 
they are required to obtain at least catastrophic coverage. If the 
tobacco crop is insured under one policy:
    (1) The linkage requirements will be satisfied for each shareholder 
of the crop; and
    (2) The producer insuring the crop will:
    (i) Make application for insurance and provide the name and social 
security number, or employer identification number, of each person with 
a share in the tobacco crop;
    (ii) File the acreage report showing a one-hundred percent (100%) 
share in the crop (all insurable acreage covered by such marketing card 
will be considered as one unit);
    (iii) Be responsible to pay the one administrative fee for all the 
producers within the county;
    (iv) Fulfill all requirements under the crop insurance contract; and
    (v) Receive any indemnity payment under his or her social security 
number or employer identification number and distribute the indemnity 
payments to the other persons sharing in the crop.
    (c) A landowner will be allowed to obtain catastrophic coverage to 
satisfy linkage requirements for all other landowners who hold an 
undivided interest in the insurable acreage, provided:
    (1) All the landowners must agree in writing to such arrangement and 
have their social security number or employer identification number 
listed on the application, without regard to the actual amount of their 
interest in the insured acreage;
    (2) All landowners must have an undivided interest in the insurable 
acreage;
    (3) None of the landowners may hold any share in other acreage for 
which they are required to obtain at least catastrophic coverage;
    (4) The total cumulative liability under the Catastrophic Risk 
Protection Endorsement for all landowners must be $2,500 or less;
    (5) The landowner insuring the crop will:
    (i) Make application for insurance and provide the name and social 
security number or employer identification number of each person with an 
undivided interest in the insurable acreage;
    (ii) Be responsible to pay the one administrative fee for all the 
producers within the county;
    (iii) Fulfill all requirements under the insurance contract; and

[[Page 176]]

    (iv) Receive any indemnity payment under the landowner's social 
security number, or when applicable, employer identification number, and 
distribute the indemnity payments to the other persons sharing in the 
crop.

                          8. Replanting Payment

    Notwithstanding any provision contained in any other crop insurance 
document, no replant payment will be paid whether or not replanting of 
the crop is required under the policy.

                         9. Claim for Indemnity

    (a) If two or more insured crop types, varieties, or classes are 
insured within the same unit, and multiple price elections are 
applicable, the dollar amount of insurance and the dollar amount of 
production to be counted will be determined separately for each type, 
variety, class, etc., that have separate price elections and then 
totaled to determine the total liability or dollar amount of production 
to be counted for the unit.
    (b) If you are eligible to receive an indemnity under this 
endorsement and benefits compensating you for the same loss under any 
other USDA program, you must elect the program from which you wish to 
receive benefits. Only one payment or program benefit is allowed. 
However, if other USDA program benefits are not available until after 
you filed a claim for indemnity, you may refund the total amount of the 
indemnity and receive the other program benefit. Notwithstanding the 
first sentence of this subsection, farm ownership, operating, and 
emergency loans may be obtained from the USDA in addition to an 
indemnity under this endorsement.

                        10. Concealment or Fraud

    Notwithstanding any provision contained in any other crop insurance 
document, your CAT policy may be voided by us on all crops without 
waiving any of our rights, including the right to collect any amounts 
due:
    (a) If at any time you conceal or misrepresent any material fact or 
commit fraud relating to this or any other contract issued under the 
authority of the Federal Crop Insurance Act with any insurance provider; 
and
    (b) The voidance will be effective as of the beginning of the crop 
year during which such act or omission occurred. After the policy has 
been voided, you must make a new application to obtain catastrophic risk 
protection coverage for any subsequent crop year. If your policy is 
voided under this section, any waiver of eligibility for emergency crop 
loss assistance in connection with the crop will not be effective for 
the crop for the year in which the voidance occurred.

                        11. Exclusion of Coverage

    (a) Options or endorsements that extend the coverage available under 
any crop policy offered by FCIC will not be available under this 
endorsement, except the Late Planting Agreement Option. Written 
agreements are not available for any crop insured under this 
endorsement.
    (b) Notwithstanding any provision contained in any other crop 
policy, hail and fire coverage and high-risk land may not be excluded 
under catastrophic risk protection.

             12. Eligibility for Other USDA Program Benefits

    (a) Even if it was a crop of economic significance for the previous 
crop year, if you do not intend to plant the crop in the current crop 
year, you do not have to obtain crop insurance or execute a waiver of 
your eligibility for any emergency crop loss assistance in connection 
with the crop to remain eligible for the USDA program benefits specified 
in subsection (e). However, if, after the sales closing date, you plant 
that crop, you will be unable to obtain insurance for that crop and you 
must execute a waiver of your eligibility for emergency crop loss 
assistance in connection with the crop to remain eligible for the USDA 
program benefits specified in section 12(e). Failure to execute such a 
waiver will require you to refund any benefits already received under a 
program specified in section 12(e).
    (b) You are initially responsible to determine the crops of economic 
significance in the county. The insurance provider may assist you in 
making these initial determinations. However, these determinations will 
not be binding on the insurance provider. To determine the percentage 
value of each crop:
    (1) Multiply the acres planted to the crop, times your share, times 
the approved yield, and times the price;
    (2) Add the values of all crops grown by the producer in the county; 
and
    (3) Divide the value of the specific crop by the result of section 
12(b)(2).
    (c) You may use the type of price such as the current local market 
price, futures price, established price, highest amount of insurance, 
etc., for the price when calculating the value of each crop, provided 
that you use the same type of price for all crops in the county.
    (d) You may be required to justify the calculation and provide 
adequate records to enable the insurance provider to verify whether a 
crop is of economic significance.
    (e) You must obtain at least catastrophic coverage for each crop of 
economic significance in the county in which you have an insurable 
share, if insurance is available in the county for the crop, unless you 
execute a waiver of any eligibility for emergency crop

[[Page 177]]

loss assistance in connection with the crop to be eligible for:
    (1) Benefits under the Agricultural Market Transition Act;
    (2) Loans or any other USDA provided farm credit, including: 
guaranteed and direct farm ownership loans, operating loans, and 
emergency loans under the Consolidated Farm and Rural Development Act 
provided after October 13, 1994; and
    (3) Benefits under the Conservation Reserve Program derived from any 
new or amended application or contracts executed after October 13, 1994.
    (f) Failure to comply with all provisions of the policy constitutes 
a breach of contract and may result in ineligibility for certain other 
farm program benefits for that crop year and any benefit already 
received must be refunded. If you breach the insurance contract, the 
execution of a waiver of any eligibility for emergency crop loss 
assistance will not be effective for the crop year in which the breach 
occurs.

[61 FR 42985, Aug. 20, 1996, as amended at 63 FR 40631, July 30, 1998; 
64 FR 40740, July 28, 1999]



PART 403--GENERAL CROP INSURANCE REGULATION--Table of Contents




Sec.
403.1  Availability of peach crop insurance.
403.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
403.3  OMB control numbers.
403.4  Creditors.
403.5  Good faith reliance on misrepresentation.
403.6  The contract.
403.7  The application and policy.

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

    Source: 50 FR 43648, Oct. 29, 1985, unless otherwise noted.



Sec. 403.1  Availability of peach crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
peaches in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 403.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for peaches which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 403.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 403.4  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. 403.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the peach insurance contract, 
whenever: (a) An insured under a contract of crop insurance entered into 
under these regulations, as a result of a misrepresentation or other 
erroneous action or advice by an agent or employee of the Corporation: 
(1) Is indebted to the Corporation for additional premiums; or (2) has 
suffered a loss to a crop which is not insured or for which the insured 
is not entitled to an indemnity because of failure to comply with the 
terms of the insurance contract, but which the insured believed to be 
insured, or believed the terms of the insurance contract to have been 
complied with or waived; and (b) the Board of Directors of the 
Corporation, or the Manager in cases involving not more

[[Page 178]]

than $100,000.00, finds that: (1) An agent or employee of the 
Corporation did in fact make such misrepresentation or take other 
erroneous action or give erroneous advice; (2) said insured relied 
thereon in good faith; and (3) to require the payment of the additional 
premiums or to deny such insured's entitlement to the idemnity would not 
be fair and equitable, such insured shall be granted relief the same as 
if otherwise entitled thereto. Requests for relief under this section 
must be submitted to the Corporation in writing.



Sec. 403.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the peach crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 403.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the peach crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a peach 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400, General Administrative Regulations (7 CFR 
400.37, 400.38). The provisions of the Peach Insurance Policy for the 
1986 through 1997 crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                       Peach Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Frost;
    (2) Freeze;
    (3) Hail;
    (4) Tornado;
    (5) Cyclone;
    (6) Drought;
    (7) Wind;
    (8) Lightning;
    (9) Flood;
    (10) Fire;
    (11) Earthquake;
    (12) Volcanic eruption;
    (13) An insufficient number of chilling hours to effectively break 
the dormant period for the crop year; or
    (14) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9f(5).

[[Page 179]]

    b. We will not insure against any loss of production due to:
    (1) Disease or insect infestation;
    (2) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good peach farming practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow good peach irrigation practices; 
    (6) The impoundment of water by any governmental, public or private 
dam or reservoir project;
    (7) Split pits regardless of cause; or
    (8) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the types or varieties of peaches 
which are grown for the production of Fresh or Processing Peaches 
(except processing peaches in California) on insured acreage and for 
which a guarantee and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be peaches grown on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured peaches at the time insurance attaches. However, 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) From which the peaches are harvested by the public;
    (3) On which the trees have not reached the fourth growing season 
after being set out unless such acreage has produced at least 100 
bushels of peaches per acre;
    (4) Planted with a vine or tree crop other than peaches;
    (5) Which we inspect and consider not acceptable; or
    (6) Of a type or variety of peaches not established as adapted to 
the areas or excluded by the actuarial table.
    e. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good peach irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

   3. Report of Acreage, Share, Practice, and Number of Bearing Trees

    You must report on our form:
    a. All the acreage of peaches in the county in which you have a 
share;
    b. The practice;
    c. Your share on the date insurance attaches; and
    d. The number of bearing trees.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any peaches grown in the 
county. This report must be submitted annually on or before January 10. 
All indemnities may be determined on the basis of information you submit 
on this report. If you do not submit this report by January 10, we may 
elect to determine by unit the insured acreage, share, practice, and 
number of bearing trees or we may deny liability on any unit. Any report 
submitted by you may be revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (fourth growing season and older) 
is reduced more than 10 percent from the preceding calendar year, the 
production guarantee may be reduced 1 percent (through adjustment to 
your average yield) for each 1 percent reduction in excess of 10 
percent.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    e. You must furnish a report of production to use for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The

[[Page 180]]

amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the peach policy in 
effect for the 1985 crop year, you will continue to receive the benefit 
of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on December 1 and ends at the 
earliest of:
    a. Total destruction of the peaches;
    b. The date harvest of the peaches (by variety) should have ended;
    c. Harvest of the peaches;
    d. Final adjustment of a loss; or
    e. September 30 of the crop year.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice of:
    (a) The dates of damage; and
    (b) The causes of damage.
    (2) You must give us written notice if during the period before 
harvest, the peaches on any unit are damaged and you decide not to 
further care for or harvest any part of them.
    (3) If you are going to claim an indemnity on any unit, you must 
give us notice:
    (a) At least 15 days before the beginning of harvest;
    (b) Immediately, if damage occurs within the 15 days prior to 
harvest or during harvest; or
    (c) By September 30, if harvest will not begin by this date.
    b. You must obtain written consent from us before you destroy any of 
the peaches which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peaches on the unit;
    (2) Harvest of the unit; or
    (3) September 30 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of peaches on the unit at the 
time of harvest and that any loss of production has been directly caused 
by one or more of the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this result by the price election;
    (3) Subtracting therefrom the dollar amount obtained by multiplying 
the total production of peaches to be counted (see section 9f) by the 
larger of the price election or the actual price per bushel of peaches; 
and
    (4) Multiplying this result by your share.
    d. If a unit contains insured acreage of both fresh and processing 
type peaches, the dollar amounts of insurance and production to count as 
established in 9.c. above will be determined separately for each type 
and then added together to determine the total amounts for the unit.
    e. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    f. The total production to be counted for a unit will include all 
appraised production plus any production harvested prior to appraisal.
    (1) Mature peach production may be adjusted downward as a result of 
a loss in quality because of hail, wind and misshapen fruit. Any 
production which is disposed of without being inspected by us will be 
considered undamaged. The amount of production will be determined for:
    (a) Peaches grown for fresh use by:

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    (i) Dividing the value per \3/4\-bushel carton of the damaged 
peaches by the price per \3/4\-bushel carton of U.S. Extra No. 1 two-
inch peaches; and
    (ii) Multiplying this result by the number of bushels of such 
peaches.
    The applicable price per \3/4\-bushel carton of U.S. Extra No. 1 
two-inch peaches (if not available, the next larger size for which a 
price is available) will be the applicable average F.O.B. shipping point 
price reported by the Market News Service of the United States 
Department of Agriculture for 7 consecutive days commencing with the day 
harvest of the variety begins.
    (b) Peaches grown for processing by:
    (i) Dividing the value per bushel of the damaged peaches by the 
price per bushel of undamaged peaches; and
    (ii) Multiplying this result by the number of bushels of such 
peaches.
    The applicable price per bushel of undamaged peaches will be the 
average price for processing peaches determined for 7 consecutive days 
commencing with the day harvest of the variety begins.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized peach farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, destroyed by you without our 
consent or not inspected by us prior to the completion of harvest; and
    (c) All unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is exceeded by the 
actual harvested production.
    (4) We reserve the right to delay any appraisal of damage until the 
extent of damage can be determined.
    (5) If you elect to exclude hail and fire as insured causes of loss 
and the peaches are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    g. You must not abandon any acreage to us.
    h. You may not sue unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 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. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than individual and such entity is dissolved 
after insurance attaches for any crop year, any indemnity will be paid 
to the persons determined to be beneficially entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

[[Page 182]]

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all peaches 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records applied, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Therefore, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 30.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of peach crop insurance:
    a. Actual price per bushel for:
    (1) ``Fresh peaches'' means the average price per bushel for U.S. 
Extra No. 1 two-inch peaches (if not available, the next larger size for 
which a price is available) determined from applicable prices reported 
by the Market News Service of the United States Department of 
Agriculture for 7 consecutive days commencing with the day harvest of 
the variety begins less the allowable cost designated by the actuarial 
table; and
    (2) ``Processing peaches'' means the average price per bushel for 
processor peaches determined for 7 consecutive days commencing with the 
day harvest of the variety begins less the allowable cost designated by 
the actuarial table.
    b. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
uninsurable types or varieties, insurable and uninsurable acreage, and 
related information regarding peach insurance in the county.
    c. Average yield means the yield established from your actual 
production records, which is approved by us and shown on our form.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.

[[Page 183]]

    e. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the peaches are normally 
harvested.
    f. Cyclone means only a large-scale, atmospheric wind-and-pressure 
system characterized by low pressure at its center and counterclockwise 
circular wind motion which has been named by the United States Weather 
Service and which has sustained winds in excess of 58 miles per hour at 
the nearest U.S. Weather Service reporting station to the crop damage at 
the time of the crop damage.
    g. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit.
    h. Frost means the condition that exists when the air temperature 
around the plant falls to 32 degrees Fahrenheit or below.
    i. Harvest means the picking of mature peaches from the trees either 
by hand or machine.
    j. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    k. Insured means the person who submitted the application accepted 
by us.
    l. Loss ratio means the ratio of indemnity to premium.
    m. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    n. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    o. Tenant means a person who rents land from another person for a 
share of the peaches or a share of the proceeds therefrom.
    p. Unit means all insurable acreage of peaches in the county on the 
date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the peaches on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43648, Oct. 29, 1985, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 6775, 
Mar. 5, 1987; 54 FR 24320, June 7, 1989; 55 FR 35888, Sept. 4, 1990; 62 
FR 39923, July 25, 1997]

                          PART 404  [RESERVED]



PART 405--APPLE CROP INSURANCE REGULATIONS FOR THE 1986 THROUGH THE 1998 CROP YEARS--Table of Contents




Sec.
405.1  Availability of apple crop insurance.
405.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
405.3  OMB control numbers.
405.4  Creditors.
405.5  Good faith reliance on misrepresentation.
405.6  The contract.
405.7  The application and policy.
405.8  Apple fresh fruit option.
405.9  Apple sunburn option.

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

    Source: 50 FR 43655, Oct. 29, 1985, unless otherwise noted.

[[Page 184]]



Sec. 405.1  Availability of apple crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
apples in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 405.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for apples which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 405.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 405.4  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. 405.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the apple insurance contract, 
whenever: (a) An insured under a contract of crop insurance entered into 
under these regulations, as a result of a misrepresentation or other 
erroneous action or advice by an agent or employee of the Corporation: 
(1) Is indebted to the Corporation for additional premiums; or (2) has 
suffered a loss to a crop which is not insured or for which the insured 
is not entitled to an indemnity because of failure to comply with the 
terms of the insurance contract, but which the insured believed to be 
insured, or believed the terms of the insurance contract to have been 
complied with or waived; and (b) the Board of Directors of the 
Corporation, or the Manager in cases involving not more than 
$100,000.00, finds that: (1) An agent or employee of the Corporation did 
in fact make such misrepresentation or take their erroneous action or 
give erroneous advice; (2) said insured relied thereon in good faith; 
and (3) to require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Application for relief under this section must be 
submitted to the Corporation in writing.



Sec. 405.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the apple crop 
as provided in the policy. The contract shall consist of the 
application, the policy, the Fresh Fruit Option, if applicable, and the 
county actuarial table. Any changes made in the contract shall not 
affect its continuity from year to year. The forms referred to in the 
contract are available at the applicable service offices.



Sec. 405.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the apple crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for

[[Page 185]]

submitting applications in any county, by placing the extended date on 
file in the applicable service offices and publishing a notice in the 
Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of an apple 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application is found at subpart D of part 400, General 
Administrative Regulations (7 CFR 400.37, 400.38). The provisions of the 
Apple Insurance Policy for the 1986 through 1998 crop years are as 
follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                       Apple Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We shall provide the insurance described in 
this policy in return for the premium and your compliance with all 
applicable provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Drought;
    (2) Freeze;
    (3) Frost;
    (4) Wind;
    (5) Hail;
    (6) Fire;
    (7) Earthquake;
    (8) Volcanic eruption;
    (9) Fruit-set failure; or
    (10) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9e(4).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good apple management 
practices;
    (3) The failure or breakdown of irrigation equipment or facilities;
    (4) The failure to follow good apple irrigation practices;
    (5) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be a variety of apples established as 
adopted to the area, which is located on insured acreage and for which a 
guarantee and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be apples located on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured apples at the time insurance attaches.
    d. We do not insure any acreage:
    (1) Which in area A has not produced a minimum of 10 bins per acre;
    (2) Which in area B has not produced a minimum of 150 bushels per 
acre;
    (3) Which in Colorado, has not produced a minimum of 200 bushels per 
acre;
    (4) Unless we agree, in writing, to insure such acreage;
    (5) Which we inspect and consider not acceptable;
    (6) The crop year the application is filed until the acreage has 
been inspected and accepted by us; or
    (7) Acquired for the crop year until inspected and accepted by us.
    e. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good apple irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the time insurance attaches.

            3. Report of acreage, share, and Number of Trees

    You must report on our form:
    a. All the acreage of apples in the county in which you have a 
share;

[[Page 186]]

    b. Your share at the time insurance attaches; and
    c. The number of bearing trees.

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any apples located in the 
county.
    This report will be submitted annually on or before the reporting 
date established by the actuarial table. All indemnities may be 
determined on the basis of information you submit on this report. If you 
do not submit this report by the reporting date, we may elect to 
determine by unit the insured acreage, share, and number of trees or we 
may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable when insurance attaches. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share when insurance attaches.
    b. Interest will accrue at the rate of one and one-half percent 
(1\1/2\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the Eastern or 
Western apple policy in effect for the 1985 crop year, you will continue 
to receive the benefit of that reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on November 21 except that for 
the first crop year, if we accept your application for apple insurance 
after November 21, insurance will attach on the thirtieth day after you 
submit a properly completed application. Insurance ends at the earliest 
of:
    a. Total destruction of the apples;
    b. Harvest of the unit;
    c. Final adjustment of a loss; or
    d. The earlier of:
    (1) The end of the normal harvest period by variety for the crop 
year; or
    (2) November 5 of the crop year.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us notice of the date and cause of damage within 
10 days of such damage.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined or damage occurs during 
harvest, immediate notice must be given.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 10 days after the earliest of:
    (i) Total destruction of the apples on the unit;
    (ii) Harvest of the unit; or
    (iii) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the apples which are not to be harvested.

[[Page 187]]

    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the apples on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of apples on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of apples to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production to be counted for a unit will include all 
harvested and appraised production determined to be marketable.
    (1) Appraised production to be counted will include:
    (i) Unharvested marketable production, and potential production lost 
due to uninsured causes and failure to follow recognized good apple 
management practices; and
    (ii) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of apples becomes general in 
the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (3) The amount of production of any unharvested apples may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (4) If you elect to exclude hail and fire as insured causes of loss 
and the apples are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity.
    The interest rate will be that established by the Secretary of the 
Treasury under section 12 of the Contract Disputes Act of 1978 (41 
U.S.C. 611), and published in the Federal Register on or about January 1 
and July 1 of each year.
    The interest rate to be paid on any indemnity will vary with the 
rate announced by the Secretary of the Treasury.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.

For the purpose of this section, the amount of loss from fire will be 
the difference between the fair market value of the production on the 
unit before the fire and after the fire.

[[Page 188]]

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all apples 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 20.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of apple crop insurance:
    a. Area A includes Montana, Wyoming, Utah, New Mexico, and all 
states west thereof.
    b. Area B includes all other states except Colorado.
    c. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable

[[Page 189]]

acreage, and related information regarding apple insurance in the 
county.
    d. Bin means a standard container, accepted by the industry: (1) 
Containing a minimum of 875 pounds of apples; or (2) as designated by 
the actuarial table.
    e. Bushel means a standard container, containing 42 pounds of apples 
(40 pounds in Colorado).
    f. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will also be considered contiguous.
    g. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    h. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and shall be 
designated by the calendar year in which the apples are normally 
harvested.
    i. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees (Fahrenheit).
    j. Frost means the condition that exists when the air temperature 
around the plant falls to 32 degrees (Fahrenheit) or below.
    k. Fruit-set failure means failure of the apple trees to develop 
blossoms or set fruit due only to adverse weather conditions, but shall 
not include poor pollination resulting from inadequate pollenizers in 
the orchard or failure to set fruit due to spray damage or other 
manageable causes.
    l. Harvest means the picking of marketable apples from the trees or 
from the ground.
    m. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    n. Insured means the person who submitted the application accepted 
by us.
    o. Loose field box means a standard container containing: (1) 35 
pounds of apples; or (2) a quantity designated by the actuarial table.
    p. Loss ratio means the ratio of indemnity to premium.
    q. Marketable means apples which grade U.S. No. 1, 2, or Cider in 
accordance with the United States Standards for Apples for Processing.
    r. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    s. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    t. Tenant means a person who rents land from another person for a 
share of the apples or a share of the proceeds therefrom.
    u. Unit means all insurable acreage of apples in the county located 
on contiguous land, on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the apples on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office. Units will be determined when the acreage is reported. Errors in 
reporting units may be corrected by us to conform to applicable 
guidelines when adjusting a loss. We may consider any acreage and share 
thereof reported by or for your spouse or child or any member of your 
household to be your bona fide share or the bona fide share of any other 
person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43655, Oct. 29, 1985, as amended at 51 FR 29206, 29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 55 FR 35555, 
Aug. 31, 1990; 55 FR 35888, Sept. 4, 1990; 63 FR 17054, Apr. 8, 1998]



Sec. 405.8  Apple fresh fruit option.

    (a) Notwithstanding the provisions of Sec. 405.7(d), section 9.e. of 
this part, an insured producer may, upon submission

[[Page 190]]

and approval of a Fresh Fruit Option Amendment (Amendment) elect to 
insure any insurable acreage or any designated portion thereof, under 
the provisions of the Amendment. Only apple acreage which is managed 
with the intent of producing fresh-market apples will be insurable under 
the Amendment. If management practices are carried out for the 
production of both fresh and processing apples on insurable acreage, and 
the election is made to: (1) Insure fresh market apples under the 
Amendment and; (2) insure those insurers intended for processing under 
the Apple policy; the election to insure on both a fresh and processing 
basis must be made when the Amendment is submitted. The Amendment is 
continuous until cancelled and may only be cancelled prior to the 
cancellation date.
    (b) For those insureds who elect to insure apples under the 
Amendment, all provisions of the Apple crop insurance policy will apply 
except those provisions in conflict with the Amendment.
    (c) The Option reads as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                        Apple Fresh Fruit Option

    This is a continuous amendment (see section 15 of the basic policy).

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________

    It is hereby agreed to amend the basic Federal Crop Insurance Apple 
Policy under the following terms and conditons:
    1. This Option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to insure your applies under this Option.
    2. You must have an apple policy in force.
    3. You must insure all the acreage of applies in the county in which 
you have a share regardless of the intended use (fresh-market or 
processing).
    4. In addition to section 8 of the apple policy, inspection and 
grading of the fruit must be done by us prior to harvest or no quality 
adjustment will be made.
    5. Separate line entries according to intended use (fresh-market or 
processing) must be included on the acreage report required under 
section 3 of the apple policy.
    6. Your apples intended for processing will be insured under the 
quality provisons of A only (See below).
    7. Your apples intended for fresh-market will be insured under the 
quality provisions of either A or B, whichever you select.
    8. If you select A only, A will apply to all of your apples intended 
for processing and fresh-market.
    9. If you select B, those provisions will apply to all of your 
apples intended for fresh-market and the provisions of A will apply to 
all of your apples intended for processing.
    10.a. You must select either A or B by marking the appropriate space 
below.
    A----
    In addition to section 9.e. and in lieu of 17.q. of the Apple 
Policy, your production to count for any acreage designated for 
processing or fresh-market will be adjusted when your apples are damaged 
by hail to the extent that such apples will not grade U.S. No. 1 
(processing) (7 CFR 51.430 et seq.)). The adjustment factor (not to 
exceed 1) will be the ratio of the average market price (received by you 
or determined by us, whichever is larger) for your damaged production to 
the average market price for U.S. No. 1 (processing) apples. There will 
be no adjustment for quality if the apples do not grade U.S. No. 1 
because of size, color, or russeting.
    B----
    In lieu of sections 9.e.(1), 9.e.(2), 17.1, and 17.q of the Apple 
Policy, the total production to be counted for a unit must include all 
harvested and appraised production. Harvested apple production which, 
due to hail damage, does not grade 80 percent U.S. Fancy or better, in 
accordance with applicable USDA Standards (7 CFR 51.300 et seq.), will 
be adjusted as follows:
    (1) Production with 21 through 40 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 2 percent for each percent in 
excess of 20 percent. The difference between the reduced production and 
the total production will be considered cull production.
    (2) Production with 41 through 50 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 40 percent plus an additonal 3 
percent for each percent in excess of 40 percent. The difference between 
the reduced production and the total production will be considered cull 
production.
    (3) Production with 51 through 64 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 70 percent plus an additional 
2 percent for each percent in excess of 50 percent. The difference 
between the reduced production and the total production will be 
considered cull production.
    (4) Production with 65 percent or more not grading U.S. Fancy or 
better due to hail

[[Page 191]]

damage will be considered 100 percent cull production.
    b. Apples which are knocked to the ground by wind or frozen to the 
extent that they can be harvested but not packed or marketed as fresh 
apples will be considered 100 percent cull production.
    c. Fifteen (15) percent of all cull production will be counted as 
production.
    d. No reduction in grade will be applied to any apple grading less 
than U.S. Fancy due solely to shape, russeting, or color.
    e. Appraised production to be counted must include:
    (1) Potential production lost due to uninsured causes and failure to 
follow recognized good apple management practices; and
    (2) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed without our consent.
    f. Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (1) Harvested;
    (2) Further damaged by an insured cause and reappraised by us; or
    (3) In whole or part knocked to the ground by wind or hail or frozen 
on the tree to the extent that harvest is not practical.
    11. Your premium rate for Apples under either A or B, as elected by 
you, will be established by the actuarial table.
    12. All provisions of the apple policy not in conflict with this 
option are applicable.
    13. All determinations under this option will be made by us.
    14. This Option may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the policy, preceding such crop year.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation representative's signature and Code Number__________________
Date____________________________________________________________________

[50 FR 43655, Oct. 29, 1985, as amended at 53 FR 46846, Nov. 21, 1988]



Sec. 405.9  Apple sunburn option.

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                          Apple Sunburn Option

    This is not a continuous option. Applications for this option must 
be made prior to the sale closing date if you want this optional 
coverage. Upon our approval this option is applicable only for the 
19____ crop year.

Insured's name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________

    It is hereby agreed to amend the Federal Crop Insurance Apple Policy 
in accordance with the following terms and conditions:

 1. This option must be submitted to us on or before the final date for 
 accepting applications for each crop year in which you wish to insure 
                        apples under this option.

 2. You must have an apple policy and the Apple Fresh Fruit Option B in 
                                 force.

3. You must insure all the acreage of apples in the county to which the 
    Apple Fresh Fruit Option B applies and in which you have a share.

4. In addition to the causes of loss specified in paragraph 1.a. of the 
 Apple Crop Insurance policy, excess sun is an insurable cause of loss.

    5. In lieu of sections 9.e.(1), 9.e.(2), 17.l, and 17.q. of the 
Apple Policy, the total production to be counted for a unit must include 
all harvested and appraised production. Harvested apple production 
which, due solely to excessive sun or along with hail damage, does not 
grade 80 percent U.S. Fancy or better, in accordance with applicable 
USDA Standards, will be adjusted as follows:
    a. Production with 21 thru 40 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 2 percent for each percent in excess of 20 percent. The 
difference between the reduced production and the total production will 
be considered cull production.
    b. Production with 41 thru 50 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 40 percent plus an additional 3 percent for each percent in 
excess of 40 percent. The difference between the reduced production and 
the total production will be considered cull production.
    c. Production with 51 thru 64 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 70 percent plus an additional 2 percent for each percent in 
excess of 50 percent. The difference between the reduced production and 
the total production will be considered cull production.
    d. Production with 65 percent or more not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
considered 100 percent cull production.
    Fifteen (15) percent of all cull production, will be counted as 
production.

[[Page 192]]

   6. The premium for this sunburn option will be established by the 
                            actuarial table.

 7. All provisions of the apple policy and the Fresh Fruit Option-B not 
              in conflict with this option are applicable.

       8. All determinations under this option will be made by us.

9. a. Excessive sun is defined as the exposure of the unharvested apples 
 to direct or indirect sun sufficient to cause the apples to grade less 
                     than U.S. Fancy due to sunburn.

    b. Sunburn is defined in accordance with applicable U.S.D.A. 
Standards.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation representative's Signature and Code Number__________________
Date____________________________________________________________________

[53 FR 46846, Nov. 21, 1988; 54 FR 11935, Mar. 23, 1989]



PART 406--NURSERY CROP INSURANCE REGULATIONS--Table of Contents




Sec.
406.1  Availability of nursery crop insurance.
406.2  Premium rates, amounts of insurance, and coverage levels at which 
          indemnities shall be computed.
406.3  OMB control numbers.
406.4  Creditors.
406.5  Good faith reliance on misrepresentation.
406.6  The contract.
406.7  The application and policy.

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

    Source: 54 FR 3412, Jan. 24, 1989, unless otherwise noted.



Sec. 406.1  Availability of nursery crop insurance.

    (a) Insurance shall be offered under the provisions of this subpart 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The counties shall be designated by the Manager of 
the Corporation from those approved by the Board of Directors of the 
Corporation.
    (b) The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through Agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation (hereinafter 
``Reinsured companies'') offer contracts containing substantially the 
same terms and conditions as the contract set out in this part.
    (c) No person may have in force more than one contract on the same 
crop for the crop year, whether insured by the Corporation or insured by 
a Reinsured company.
    (d) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, all such contracts will be 
voided for that crop year but the person will still be liable for the 
premium on all contracts unless the person can show to the satisfaction 
of the Corporation that the multiple contract insurance was inadvertent 
and without the fault of the insured.
    (e) If the multiple contract insurance is shown to be inadvertent 
and without the fault of the insured, the contract with the earliest 
application will be valid and all other contracts on that crop for that 
crop year will be cancelled. No liability for indemnity or premium will 
attach to the contracts so cancelled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract for 
delinquent premiums.
    (g) An insured whose contract with the Corporation or with a 
Reinsured company under the Act has been terminated because of violation 
of the terms of the contract is not eligible to obtain multi-peril crop 
insurance under the Act with the Corporation or with a Reinsured company 
unless the insured can show that the default in the prior contract was 
cured prior to the sales closing date of the contract applied for or 
unless the insured can show that the termination was improper and should 
not result in subsequent ineligibility.
    (h) All applicants for insurance under the Act must advise the 
agent, in writing, at the time of application, of any previous 
applications for a Contract under the Act and the present status of the 
applications or contracts.

[[Page 193]]



Sec. 406.2  Premium rates, amounts of insurance, and coverage levels at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, amounts of insurance, 
and coverage levels, for the insured crop which will be included in the 
actuarial table on file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level from among those contained in the actuarial 
table for the crop year.



Sec. 406.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 406.4  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. 406.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the nursery insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation or a 
Reinsured company:
    (1) Is indebted to the Corporation or a Reinsured company for 
additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation (the Manager in cases 
involving not more than $100,000) or a Reinsured company finds that:
    (1) An agent or employee of the Corporation or a Reinsured company 
did in fact make such misrepresentation or take other erroneous action 
or give erroneous advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Request for relief under this section must be 
submitted, in writing, to the Corporation or to the Reinsured Company, 
whichever is applicable.

[54 FR 3412, Jan. 24, 1989, as amended at 54 FR 33494, Aug. 15, 1989]



Sec. 406.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation or a Reinsured company of a duly executed application 
for insurance on a form prescribed by the Corporation or a Reinsured 
company and payment of the premium due. The contract shall cover the 
nursery crop as provided in the policy. The contract shall consist of 
the application, the policy and any amendments thereto, and the county 
actuarial table. Changes made in the contract shall not affect its 
continuity from year to year. No indemnity will be paid unless the 
insured complies with all terms and conditions of the contract. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 406.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the nursery crop as owner if the person wishes to participate in the 
program. The application shall be submitted to the Corporation or a 
Reinsured company at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation or a Reinsured company may discontinue the 
acceptance of any application or applications in any county upon its 
determination that the insurance risk is excessive.

[[Page 194]]

The Manager of the Corporation is authorized in any crop year to extend 
the sales closing date for submitting applications in any county, by 
placing the extended date on file in the applicable service offices and 
publishing a notice in the Federal Register upon the Manager's 
determination that no adverse selectivity will result during the 
extended period. However, if adverse conditions should develop during 
such period, the Corporation will immediately discontinue the acceptance 
of applications.
    (c) A contract in the form provided for in this subpart will come 
into effect as a continuation of the contract issued under such prior 
regulations, without the filing of a new application.
    (d) The application for the 1989 through 1995 crop years is found at 
subpart D of part 400, General Administrative Regulations (7 CFR 400.37, 
400.38). The provisions of the Nursery Crop Insurance Policy for the 
1989 through 1995 crop years are as follows:

                   Federal Crop Insurance Corporation

                         Nursery Crop Insurance

(This is a continuous contract. Refer to Section 15.)

    Note:  This is a contract with the Federal Crop Insurance 
Corporation, a United States Government Agency. The terms of the 
contract are published in the Federal Register under the provisions of 
the Federal Register Act (44 U.S.C. 1501), and may not be waived or 
varied in any way by the crop insurance agent or any other agent or 
employee of FCIC.

    Agreement to Insure: We will provide the insurance described in this 
policy in return for the premium and your compliance with ALL provisions 
of the crop insurance contract.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation. Unless the context indicates 
otherwise, use of the plural form of a word includes the singular and 
use of the singular form of the word includes the plural.

                            1. Insured Crops

    a. The crops insured will be all nursery crops grown in the county 
in standard nursery containers which are listed on the eligible plant 
listing located in the actuarial table.
    b. We do not insure any nursery crops which:
    (1) Are not grown in standard nursery containers;
    (2) Are not classified as woody, herbaceous, or foliage landscape 
plants;
    (3) Produce citrus fruit or other edible fruits or berries;
    (4) Are grown in the field;
    (5) Are not listed on the eligible plant listing located in the 
actuarial table;
    (6) Have not been inspected prior to submission of your application;
    (7) Are inspected by us and determined unacceptable;
    (8) Are not grown in a hardiness zone listed on the eligible plant 
listing for those crops; or
    (9) Are not grown in accordance with the production practices for 
which premium rates have been established.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable damage resulting 
from the following causes occurring within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table.
    b. We do not insure against any loss caused by:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (2) The failure to follow recognized good production practices for 
nursery crops;
    (3) Water contained by any governmental, public, or private dam or 
reservoir project;
    (4) Flooding on any unit subject to a flood or water flowage 
easement;
    (5) Failure or breakdown of irrigation equipment or facilities;
    (6) Failure to carry out a good irrigation practice for the nursery 
crops;
    (7) The inability to market the nursery crop as a direct result of 
quarantine, boycott or refusal of any entity to accept production;
    (8) Any loss of production due to fire, where weeds and other forms 
of undergrowth have not been controlled; or
    (9) Any cause not specified in this policy as an insured cause of 
loss.
    c. You must not obtain any other crop insurance under the Federal 
Crop Insurance Act (Multiple Peril Crop Insurance Policy or Federal Crop 
Insurance Policy) on the insured crops. More than one policy will result 
in our voiding the policies and collecting the

[[Page 195]]

premium from you unless the violation of this provision is found by us 
to have been inadvertent. If we determine that the violation was 
inadvertent, the policy with the earliest date of application will be 
the one in force and all other policies will be void. Nothing in this 
paragraph prevents the insured from obtaining other hail and fire 
insurance not issued under the Act and which is subject to the 
provisions of section 9 hereof.
    d. Although your violation of a number of federal statutes including 
the Federal Crop Insurance Act may cause cancellation, termination, or 
voidance of your insurance contract, you are specifically directed to 
the provisions of Title XII of the Food Security Act of 1985 (Pub. L. 
99-198) and the regulations promulgated thereunder, generally referred 
to as the sodbuster, swampbuster, and controlled substance provisions. 
Your insurance policy will be cancelled if you are determined to be in 
violation of these provisions. We will recover any and all monies paid 
to you or received by you and your premium will be refunded.

                         3. Nursery Crop Report

    a. You must submit an annual crop report to us of all of your 
eligible nursery crops in the county by unit, type, container size, 
number of plants and wholesale price of plants for each month of the 
crop year. This report must be submitted on or before September 30 
preceding the crop year.
    b. Your crop report may be revised only with our consent.
    c. We may determine all losses on the basis of information on your 
crop report or the inventory as determined by us.
    d. You must designate separately any inventory which is not 
insurable. Your annual crop report will be used as the basis to 
determine your premium and the amount of insurance for each unit. If you 
do not submit the report by the reporting date, we may elect to 
determine the inventory for each unit or we may deny liability on any 
unit. Errors in reporting units may be corrected by us at the time of 
adjusting a loss.

                4. Amount of Insurance and Coverage Level

    a. The amount of insurance and coverage levels are contained in the 
actuarial table and must be elected on or before September 30 prior to 
the crop year.
    b. You may change the amount of insurance and the coverage level on 
or before the sales closing date for that crop year.

                           5. Annual Premium.

    a. The annual premium is earned and payable on or before September 
30 preceding each crop year and will be earned in full when the policy 
becomes effective. Interest will begin to accrue on March 31 of the crop 
year. Premium will be delinquent on the termination date.
    b. Except for the 1993 and 1994 crop years, coverage will not begin 
if the premium due under this policy is not paid when due and payable. 
For the 1993 and 1994 crop year only insurance will attach on October 1, 
preceding the crop year.
    c. The annual premium amount for each unit is computed in accordance 
with these subsections:
    (1) Develop an inventory of all eligible containerized crops, by 
type of crop and container size, for each month of the proposed policy 
period.
    (2) Apply market values to these inventory numbers using your 
wholesale price list. If you discount prices published in your wholesale 
price list, the discounted prices must be used in calculating market 
values. Record these monthly values by type of crop on your insurance 
application.
    (3) Add the total monthly market values separately for each type of 
crop and divide that monthly total for each crop by the number of months 
in the crop year to get the ``Average Monthly Market Value''.
    (4) Add the Average Monthly Market Value for each of the eligible 
crops in the unit to get the ``Yearly Average''.
    (5) Multiply the Yearly Average by 90% to obtain the ``Field Market 
Value''.
    (6) Multiply Field Market Value by the coverage level.
    (7) Multiply this result by the applicable premium rate contained in 
the actuarial table.

                            6. Amounts Due Us

    a. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid balance due us. Interest will start on the date that notice 
is issued to you for the collection of any amount determined to be due. 
Interest, penalties and costs will be charged in accordance with 31 
U.S.C. 3717 and 4 CFR 102.13. The penalty for accounts more than 90 days 
past due (31 U.S.C. 3717(e)(2)) is six percent (6%) per annum. Interest 
on any amount due us found to have been received by you because of fraud 
or misrepresentation will start on the date you received the amount with 
the penalty beginning 90 days after the notice of amount due is issued 
to you.
    b. All amounts paid will be applied first to costs and penalties, 
second to accrued interest, and then to reduction of the principal 
balance.
    c. 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. Those expenses will be 
paid before the application of any amounts to interest, penalties or 
principal.

[[Page 196]]

    d. Any amount due us may be deducted from any indemnity payment due 
you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies and from any amounts due you from any other United States 
Government Agency.

                           7. Insurance Period

    Insurance attaches on October 1 and ends for each unit at the 
earliest of:
    a. Sale or disposal of all or a portion of the crop;
    b. Final adjustment of the loss on the part of the insured crop 
damaged; or
    c. September 30 of the crop year.

                       8. Notice of Damage or Loss

    In case of damage or probable loss you must:
    a. Provide sufficient care to protect the crop from further damage;
    b. Provide us with written notice within 72 hours of your discovery 
of the loss and obtain our written consent prior to:
    (1) Destroying, selling or otherwise disposing of any crop that is 
damaged; or
    (2) Changing or discontinuing your normal growing practices with 
respect to care and maintenance of the insured crop; and
    c. Upon our request, provide complete copies of your nursery crop 
wholesale price list for the 12-month period immediately preceding the 
loss and your marketing records for the same period.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Your loss; or
    (2) September 30 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the value of the insured crop on the unit and that any 
loss of value has been directly caused by one or more of the insured 
causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The production to count (containers) will be all plants eligible 
for insurance in a unit.
    d. The indemnity will not exceed the lesser of:
    (1) The amount of insurance applicable to the unit less 90% of the 
value of the crop remaining on the unit after the loss; or
    (2) The amount, calculated for each unit as follows:
    (a) Subtract field market value B from field market value A (see 
section 17) to determine the total amount of loss; and
    (b) Subtract therefrom the annual loss deductible.
    e. Annual Loss Deductible amounts will be applied on an annual 
aggregate loss deductible basis for each individual unit insured for the 
crop year. Individual insured losses occurring on the same unit during 
the crop year may be accumulated (but each loss must be reported and 
valued by us). The total amount of insured losses on a unit during the 
crop year, less the annual aggregate loss deductible applicable to that 
unit, is the amount payable under this policy for that unit during the 
crop year, as limited by the amount of insurance for that unit.
    f. The value of production of any insured crop may be determined on 
the basis of our field appraisals conducted after the end of the 
insurance period.
    g. If you elect to exclude hail and fire as insured causes of loss 
and the insured crop is damaged by hail or fire, appraisals will be made 
in accordance with the applicable Form FCI-78 or FCI-78-A, ``Request To 
Exclude Hail And Fire.''
    h. You must not abandon any part of the insured crop to us.
    i. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    j. An indemnity will not be paid unless you comply with all policy 
provisions.
    k. Under no circumstances will we be liable for the payment of 
damages (compensatory, punitive, or other), attorney's fees, or other 
charges in connection with any claim for indemnity, whether we approve 
or disapprove such claim. (State and local laws to the contrary are not 
applicable to this insurance contract). We will pay simple interest 
computed on the net indemnity ultimately found to be due by us or by the 
final judgment of a court of competent jurisdiction, from and including 
the 61st day after the date you sign, date and submit to us the properly 
completed FCIC claim form. Interest will be paid only if the reason for 
our failure to timely pay is not due to your failure to provide 
information or other material necessary for the computation or payment 
of the indemnity. The interest rate will be that established by the 
Secretary of the Treasury under section 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 will vary 
with each publication.
    l. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.

[[Page 197]]

    m. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. (For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire).

                        10. Concealment or Fraud

    We may void the insurance contract on all crops without affecting 
your liability for premiums or waiving any right, including the right to 
collect any amount due us, if at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to this 
or any other contract with us. The voidance will be effective as of the 
beginning of the crop year with respect to which such act or omission 
occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to the applicable indemnity. The transfer must be on 
our form and approved by us. Both you and the person to whom you 
transfer your interest are jointly and severally liable for the payment 
of the premium. The transferee has all rights and responsibilities under 
the contract consistent with the transferee's interest.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us. The assignee may submit all notices and 
forms required to protect the insurance contract and to claim an 
indemnity.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                          14. Access to Nursery

    Any person designated by us will have access to the nursery for 
purposes related to the contract.

          15. Contract Term, Cancellation and Termination Dates

    a. This contract will be in effect for the crop year specified on 
the application and may not be cancelled by you for such crop year after 
insurance attaches. Thereafter, the contract will continue in force for 
each succeeding crop year unless cancelled or terminated as provided in 
this section or unless the premium is not paid.
    b. This contract may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before September 30, 
preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
September 30 preceding such crop year for the contract on which the 
amount is due.
    d. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    e. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. The date by which contract changes will be available in your 
service office is August 15 preceding the crop year.

                          17. Meaning of Terms

    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amount of insurance, coverage levels, 
premium rates, practices, and related information regarding crop 
insurance in the county.
    b. Amount of insurance means the value computed by:
    (1) multiplying the Yearly Average by .9 to equal field market 
value; and
    (2) multiplying the result by the coverage level.
    c. Annual loss deductible means the value computed by subtracting 
the amount of insurance from the Field Market Value for that unit.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.

[[Page 198]]

    e. Crop means all plants eligible for insurance on the unit as 
reported on the nursery crop report.
    f. Crop year means the period beginning October 1 and extending 
through September 30 of the next calendar year and is designated by the 
year in which the crop year ends. (The 1988 crop year would be from 
October 1, 1987 through September 30, 1988).
    g. Field Market Value ``A'' means the total market value of the 
insured crop for the unit involved (prior to the loss occurrence) had 
the crop been sold in your markets for the values which would have been 
reasonably expected in the month which the loss occurred, less 10% of 
such market value to eliminate costs for packing, shipping and sales 
commissions or other expenses not insured.
    h. Field Market ``B'' means the total market value of the insured 
crop for the unit involved in the loss (following the loss occurrence) 
less 10% of such market value to eliminate costs for packing, shipping 
and sales commissions or other expenses not insured.
    i. Insured means the person who submitted the application accepted 
by us and does not extend to any other person unless specifically 
indicated on the application and accepted by us.
    j. Insured crops means the crops insured under the provisions of 
this policy.
    k. Loss ratio means the ratio of indemnity to premium.
    l. Person means a partnership, association, corporation, estate, 
trust, or other legal entity, and wherever applicable, a State or a 
political subdivision or agency of a State.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Unit means all growing locations within a five mile radius of the 
name insured location designated on your crop report. Growing locations 
outside of the five mile radius of the name insured location but within 
the county may be designated in the unit or as a separate unit. If they 
are not designated in the unit or as a separate unit, they will be 
included in the closest unit listed.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations (7 CFR 
part 400, subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

                     21. Dates, Reports, and Notices

    To preserve your rights under this insurance contract you are 
required to file a number of reports and notices with us by certain 
dates. The actual content requirements and time limits of those reports 
and notices are set out elsewhere in this contract and you must refer to 
those sections for those requirements.
    As a convenience to you and without limitation on our rights under 
this contract, a short description of most of the dates, reports and 
notices have been compiled in this section. Omission of any date, report 
or notice, or any of the requirements thereof, from this section does 
not relieve you of the requirement to comply with the terms of this 
contract.
    a. Application-- A form required by subpart D of part 400 of 7 CFR 
and each individual program regulation. The application for insurance 
form must be completed and filed in the service office prior to the 
sales closing date (contained in the actuarial table) for the first crop 
year for which an insurance policy is requested by the insured.
    b. Assignment of indemnity-- A transfer of contract rights, made on 
our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    c. Claim for indemnity (See: section 9)--A claim made by the insured 
for damage or loss to the insured crop.
    d. Contract change date The date by which FCIC makes any contract 
changes available for inspection in the service office (See: Section 
16).
    e. Crop report-- A report required by section 3 of this contract. 
This report contains, in addition to other information, the report of 
the insured's share of all inventory of nursery crops in the county 
whether insurable or uninsurable and must be filed on or before 
September 30 prior to the crop year.
    f. Damage, notice of-- (See: Probable loss, Notice of).
    g. End of insurance period, Date of-- The date upon which the 
insured's crop insurance coverage ceases (See: section 7).

[[Page 199]]

    h. Insurance attaches, Date-- October 1 of the crop year.
    i. Intent to abandon, Notice of-- The written notice to the 
Corporation by the insured indicating that because of damage from an 
insured cause, the insured has decided to no longer care for the crop.
    j. Probable loss, notice of-- A written notice required to be filed 
in the service office whenever an insured believes that the nursery 
crops have been damaged to the extent that a loss is probable (See: 
section 8).
    k. Reporting date-- The crop reporting date (contained in the 
Actuarial Table) by which you are required to report all your insurable 
and uninsurable inventory in the county in which you have a share at the 
time insurance attaches.
    l. Sales closing date-- The date contained in the actuarial table on 
file in the respective service office which sets out the final date when 
an application for insurance may be filed. The sales closing date of 
this policy is September 30.
    22. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[54 FR 3412, Jan. 24, 1989; 54 FR 14206, Apr. 10, 1989, as amended at 55 
FR 35888, Sept. 4, 1990; 57 FR 54683, Nov. 20, 1992; 58 FR 33508, June 
18, 1993; 58 FR 46074, Sept. 1, 1993; 59 FR 35614, July 13, 1994; 59 FR 
39414, Aug. 3, 1994; 60 FR 56935, Nov. 13, 1995]



PART 407--GROUP RISK PLAN OF INSURANCE REGULATIONS FOR THE 2000 AND SUCCEEDING CROP YEARS--Table of Contents




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  Good faith reliance on misrepresentation.
407.7  The contract.
407.8  The application and policy.
407.9  Group risk plan common policy.
407.10  Group risk plan for barley.
407.11  Group risk plan for corn.
407.12  Group risk plan for cotton.
407.13  Group risk plan for forage.
407.14  Group risk plan for peanuts.
407.15  Group risk plan for sorghum.
407.16  Group risk plan for soybean.
407.17  Group risk plan for wheat.

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

    Source: 64 FR 30219, June 7, 1999, unless otherwise noted.



Sec. 407.1  Applicability.

    The provisions of this part are applicable only to those crops and 
crop years for which a Crop Provision is contained in this part.



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 et seq.) (the 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 companies reinsured by 
FCIC under the same terms and conditions as the contract contained in 
this part. These contracts are 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 are 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) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, in the same county, that have 
not been properly approved by FCIC, 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 FCIC that 
the multiple contracts of insurance were inadvertent and without the 
fault of the person.
    (e) If the unapproved multiple contracts of insurance are shown to 
be inadvertent, and without the fault of the insured, the contract with 
the earliest application will be valid and all other contracts on that 
crop in the county for that crop year will be canceled. No

[[Page 200]]

liability for indemnity or premium will attach to the contracts so 
canceled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract (see 
Sec. 407.8, paragraph 21).
    (g) A person whose contract with FCIC or with a company reinsured by 
FCIC under the Act has been terminated because of violation of the terms 
of the contract is not eligible to obtain crop insurance under the Act 
with FCIC or with a company reinsured by FCIC unless the person can show 
that the termination was improper and should not result in subsequent 
ineligibility.
    (h) 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 insurance provider's 
office. Premium rates, amounts of protection, and coverage levels may be 
changed from year to year.
    (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 previously approved by the Office of Management and Budget (OMB) 
under control number 0563-0053.



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  Good faith reliance on misrepresentation.

    (a) Notwithstanding any other provision of the crop insurance 
contract, an insured shall be granted relief to the extent of the 
insured's detrimental reliance or the extent of the policy benefits, 
whichever is less, under the following conditions:
    (1) The person has entered into a contract of crop insurance under 
this part;
    (2) A representative of FCIC made a misrepresentation or other 
erroneous action or advice;
    (3) Such error concerned provisions of the insurance contract not 
contained in the Group Risk Plan of Insurance Basic Provisions, the Crop 
Provisions, the Federal Crop Insurance Act, or the regulations contained 
in this chapter;
    (4) As a result of the error, the insured:
    (i) Is indebted for additional premiums; or
    (ii) Has suffered a loss to a crop which is not insured or for which 
the person is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the person believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (5) The Manager finds that:
    (i) A representative of FCIC made such misrepresentation or took 
other erroneous action or gave erroneous advice;
    (ii) The person reasonably and in good faith relied on such 
misrepresentation, erroneous action or advice to the person's detriment; 
and
    (iii) To require the payment of the additional premiums or to deny 
such person's entitlement to the indemnity would not be fair and 
equitable.
    (b) For FCIC Policies only, requests for relief under this section 
must be submitted to FCIC in writing. FCIC's reviewing officers must 
refer such application for relief to the Manager of FCIC for 
determination as to whether to grant relief. FCIC's reviewing officers 
do not have authority to grant relief under this section.

[[Page 201]]

    (c) For Reinsured Policies only, requests for relief under this 
section must be submitted to the reinsured company in writing. The 
reinsured companies shall use arbitration, in accordance with the rules 
of the American Arbitration Association, under contracts for insurance 
issued by them under the Act to grant relief under the same terms and 
conditions as contained in this section or may establish procedures to 
administratively handle relief in accordance with this section. Granting 
relief under this section does not absolve the reinsured company from 
liability to FCIC for unauthorized acts of its agents.



Sec. 407.7  The contract.

    The insurance contract shall become effective upon the acceptance by 
FCIC or the reinsured company of a complete, duly executed application 
for insurance on a form prescribed or approved by FCIC. The contract 
shall consist of the accepted application, Group Risk Plan of Insurance 
Basic Provisions, Crop Provisions, Special Provisions, Actuarial Table, 
and any amendments, endorsements, or options thereto. Changes made in 
the contract shall not affect its continuity from year to year. Except 
as may be allowed under Sec. 407.6, and at the sole discretion of the 
Corporation, no indemnity shall be paid unless the person complies with 
all terms and conditions of the contract. The forms required under this 
part and by the contract are available at the office of the insurance 
provider, or the local FSA office, 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. No 
other person's interest in the crop may be insured under the 
application. 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 reinsured company may reject or no longer accept 
applications upon the FCIC's determination that the insurance risk is 
excessive. The Manager of the Corporation is authorized in any crop year 
to extend the sales closing date for submitting applications for fall 
planted crops, unless prohibited by law, upon determining that the 
probability and severity of claims will not increase because of the 
extension, by placing the extended date on file in the insurance 
provider's office and publishing a notice in the Federal Register. If 
adverse conditions should develop during the extended period, the 
Corporation will require the insurance provider to immediately 
discontinue acceptance of applications.
    (c) Since this Group Risk Plan differs significantly from 
traditional Multiple Peril Crop Insurance, persons who purchase the 
Group Risk Plan and their crop insurance agents will be required to 
execute an ``Acknowledgment of Differences'' that explains that the 
terms and conditions of the Group Risk Plan are different from 
traditional crop insurance in that:
    (1) The Group Risk Plan indemnity payment, if any, will be made 
after the Group Risk Plan premium is received;
    (2) A person may have a low yield on his or her individual farm and 
not receive a payment under Group Risk Plan; and
    (3) A person may not have any loss of production and still collect 
under the policy if a loss of production is general in the area.
    (4) By executing the ``Acknowledgment of Differences,'' the insured 
certifies that:
    (i) He or she understands the terms of the Group Risk Plan;
    (ii) An MPCI policy may be available in the county; and
    (iii) Both a Group Risk Plan and a MPCI Plan cannot be purchased on 
the same crop by the same insured in the same county.



Sec. 407.9  Group risk plan common policy.

    The provisions of the Group Risk Plan Common Policy for the 2000 and 
succeeding crop years are as follows:
    [FCIC policies]


[[Page 202]]



                        Department of Agriculture

                   Federal Crop Insurance Corporation

                      Group Risk Plan Common Policy

    [Reinsured policies]
(Appropriate title for insurance provider)
(This is a continuous policy. Refer to Section 18.)

    [FCIC policies]
    This insurance policy establishes a risk management program 
developed by the Federal Crop Insurance Corporation (FCIC), an agency of 
the United States Government, under the authority of the Federal Crop 
Insurance Act (Act), as amended (7 U.S.C. 1501 et seq.). All terms of 
the policy and rights and responsibilities of the parties hereto are 
subject to the Act and all regulations under the Act published in 7 CFR 
chapter IV. The provisions of this policy may not be waived or varied in 
any way by the crop insurance representative, or any other 
representative or employee of FCIC, the Risk Management Agency (RMA) or 
the Farm Service Agency (FSA). In the event that the company cannot pay 
a loss, the claim will be settled in accordance with the provisions of 
the policy and paid by FCIC. No state guarantee fund will be liable to 
pay the loss.
    Throughout this policy, ``you'' and ``your'' refer to the person 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation. Unless the context indicates 
otherwise, the use of the plural form of a word includes the singular 
use and the singular form of the word includes the plural.
    [Reinsured policies]
    This insurance policy establishes a risk management program created 
by the Federal Crop Insurance Corporation (FCIC), an agency of the 
United States Government, under the authority of the Federal Crop 
Insurance Act (Act), as amended (7 U. S. C. 1501 et seq.).
    This insurance policy is reinsured by FCIC under the provisions of 
the Act. All terms of the policy and rights and responsibilities of the 
parties are subject to the Act and all regulations under the Act 
published in 7 CFR chapter IV, and may not be waived or varied in any 
way by the crop insurance representative, any other representative or 
employee of the company, any representative or employee of FCIC, the 
Risk Management Agency, or the Farm Service Agency (FSA). All provisions 
of State and local law in conflict with the provisions of this policy as 
published in 7 CFR part 407 are preempted and the provisions of such 
part will control.
    Throughout this policy, ``you'' and ``your'' refer to the person 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the reinsured company issuing this policy. Unless the context 
indicates otherwise, the use of the plural form of a word includes the 
singular use and the singular form of the word includes the plural.
    [Both policies]
    The Group Risk Plan of Insurance (GRP) is designed as a risk 
management tool to insure against widespread loss of production of the 
insured crop in a county. It is primarily intended for use by those 
producers whose farm yields tend to follow the average county yield. It 
is possible for you to have a low yield on the acreage that you insure 
and still not receive a payment under this plan.
    For limited or additional coverage you may select any percent 
coverage level shown on the actuarial documents. Multiplying your 
coverage level percent by the expected county yield shown on the 
actuarial documents gives your trigger yield. If the payment yield that 
FCIC publishes for the insured crop year falls below your trigger yield, 
you will receive a payment.
    On or before the sales closing date, you may select any dollar 
amount of protection between 60 and 100 percent (except for Catastrophic 
Risk Protection (CAT) which is 55 percent) of the maximum protection per 
acre shown on the actuarial documents. This protection will be provided 
for each acre of the crop planted by the acreage reporting date and 
shown on your acreage report (unless otherwise provided in the crop 
provisions) in which you have a share.
    In accordance with the Act, FCIC will pay a portion of your premium, 
as published in the actuarial documents. The premium rates, practices, 
types, maximum protection per acre, and maximum subsidy per acre are 
also shown on the actuarial documents.
    FCIC will issue the payment yield in the calendar year following the 
crop year insured. This yield will be the official estimated yield 
published by the National Agricultural Statistics Service (NASS). You 
will be paid if the payment yield falls below your trigger yield. The 
amount of your payment per net insured acre will be calculated by 
subtracting the payment yield from the trigger yield, dividing that 
quantity by the trigger yield, and multiplying that result by your 
protection per acre for each net acre that you have insured.
    To be eligible to participate in the Group Risk Plan of Insurance 
for any crop in any county, and to receive an indemnity thereunder, you 
must have an insurable interest in an insured crop that is planted in 
the county shown on the approved application. The crop must be planted 
for harvest and be reported to us by the acreage reporting date. You may 
only purchase coverage under the Group Risk Plan of Insurance on your 
net acres of the insured crop.
    The insurance contract shall become effective upon the acceptance by 
us of a duly executed application for insurance on our form. Acceptance 
occurs when we issue a Summary of Protection to you. The policy shall 
consist

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of the accepted application, Group Risk Plan of Insurance Common Policy 
Basic Provisions, Crop Provisions, Special Provisions, actuarial 
documents, and any amendments, endorsements, or options.

                           Agreement To Insure

    In return for your payment of the premium and your compliance with 
all applicable provisions, we agree to provide risk protection as stated 
in this policy. If a conflict exists among the policy provisions, the 
order of priority is as follows: (1) The Catastrophic Risk Protection 
Endorsement, if applicable; (2) the Special Provisions; (3) the Crop 
Provisions; and (4) the Group Risk Plan Basic Provisions, with (1) 
controlling (2), etc.

                          Terms and Conditions

              Group Risk Plan of Insurance Basic Provisions

                             1. Definitions

    Acreage report. A report required by section 7 of these Basic 
Provisions that contains, in addition to other 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 must submit your acreage report in order to be eligible for 
Group Risk Insurance.
    Act. Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.).
    Actuarial documents. The material for the crop year which is 
available for public inspection in your insurance provider's local 
office, and which shows the maximum protection per acre, expected county 
yield, coverage levels, premium rates, practices, program dates, and 
other related information regarding crop insurance in the county.
    Additional coverage. For GRP, an amount of protection greater than 
or equal to: 80 percent of the expected county yield indemnified at 95 
percent of the maximum amount of protection (80/95); or 85 percent of 
the expected county yield indemnified at 90 percent of the maximum 
amount of protection (85/90); or 90 percent of the expected county yield 
indemnified at 85 percent of the of the maximum amount of protection 
(90/85). The protection is on a per acre basis as specified in the 
actuarial documents for the crop, practice, and type.
    Billing date. The date, contained in the actuarial documents, by 
which we will bill you for the premium and administrative fee on the 
insured crop.
    Cancellation date. The calendar date specified in the Crop 
Provisions on which insurance for the next crop year will automatically 
renew unless the policy is canceled in writing by either you or us or 
terminated in accordance with policy terms.
    Catastrophic risk protection. The minimum level of coverage offered 
by FCIC. For GRP, an amount of protection equal to 65 percent of the 
expected county yield indemnified at 55 percent of the maximum 
protection per acre specified in the actuarial documents for the crop, 
practice, and type.
    County. Any county, parish, or other political subdivision of a 
state shown on your accepted application.
    Crop practice. The combination of inputs such as fertilizer, 
herbicide, and pesticide, and operations such as planting, cultivation, 
and irrigation, used to produce the insured crop. The insurable 
practices are contained in the actuarial documents.
    Crop Provisions. The part of the policy that contains the specific 
provisions of insurance for each insured crop.
    Crop year. The period of time within which the insured crop is 
normally grown and designated by the calendar year in which the crop is 
normally harvested.
    Dollar amount of protection per acre. The percentage of coverage 
selected by you multiplied by the maximum protection per acre specified 
in the actuarial documents for the crop, practice, and type. The dollar 
amount of protection per acre is shown on your Summary of Protection.
    Expected county yield. The yield contained in the actuarial 
documents, on which your coverage for the crop year is based. This yield 
is determined using historical NASS county average yields, as adjusted 
by FCIC.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
corporation within USDA.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture, or a successor agency.
    Good farming practices. The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity, and are 
those recognized by the Cooperative State Research, Education, and 
Extension Service as compatible with agronomic and weather conditions in 
the county.
    GRP. Group Risk Plan of Insurance.
    Insurance provider. The FSA or a private insurance company approved 
by FCIC which provides crop insurance coverage to producers 
participating in any Federal crop insurance program administered under 
the Act.
    Limited coverage. For GRP an amount of protection greater than or 
equal to 70 percent of the expected county yield indemnified at 60 
percent of the maximum amount of protection (70/60) and less than 80/95, 
85/90, and 90/85.
    Maximum protection per acre. The highest amount of protection 
specified in the actuarial documents.
    MPCI. Multiple peril crop insurance, an insurance product based on 
an individual yield or amount of insurance.

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    NASS. National Agricultural Statistics Service, an agency within 
USDA, or its successor, that publishes the official United States 
Government yield estimates.
    Net acres. The planted acreage of the insured crop multiplied by 
your share.
    Payment yield. The yield determined by FCIC based on NASS yields for 
each insurable crop's type and practice, as adjusted by FCIC, and used 
to determine whether an indemnity will be due.
    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.
    Sales closing date. The date contained in the Special Provisions by 
which an application must be filed. The last date by which you may 
change your crop insurance coverage for a crop year.
    Share. Your percentage of interest in the insured crop, as an owner, 
operator, or tenant at the time insurance attaches. 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 crop that may vary by geographic area.
    Subsidy. The portion of your premium, shown on the actuarial 
documents as limited and maximum amounts per acre, that FCIC will pay in 
accordance with the Act.
    Summary of protection. Our statement to you of the crop insured, 
dollar amount of protection per acre, premiums, and other information 
obtained from your accepted application, acreage report, and the 
actuarial documents.
    Termination date. The calendar date contained in the Crop Provisions 
upon which insurance ceases to be in effect because of nonpayment of any 
amount due us under the policy, including premium and administrative 
fees.
    Trigger yield. The result of multiplying the expected county yield 
by the coverage level percentage chosen by you. When the payment yield 
falls below the trigger yield, an indemnity is due.
    Type. Plants of the insured crop having common traits or 
characteristics that distinguish them as a group or class, and which are 
designated in the actuarial documents.
    USDA. United States Department of Agriculture.

                             2. Insured Crop

    The insured crop will be the crop shown on your accepted 
application, as specified in the applicable Crop Provisions, and must be 
grown on insurable acres.

                    3. Insured and Insurable Acreage

    (a) The insurable acreage is all of the acreage of the insured crop 
for which premium rates are provided by the actuarial documents and in 
which you have a share and which is in the county listed in your 
accepted application. The dollar amount of protection per acre, amount 
of premium, and indemnity will be calculated separately for each county, 
type, and practice.
    (b) Only the acreage seeded to the insured crop on or before the 
acreage reporting date (unless otherwise provided in the Crop 
Provisions) and physically located in the county listed on your accepted 
application will be insured. Crops grown on acreage physically located 
in another county must be reported and insured separately.
    (c) We will not insure any crop grown on any acreage where the crop 
was destroyed or put to another use during the insurance period for the 
purpose of conforming with, or obtaining a payment under, any other 
program administered by the USDA.
    (d) We will not insure any acreage where you have failed to follow 
good farming practices for the insured crop.

                          4. Policy Protection

    (a) For catastrophic risk protection GRP policies, the dollar amount 
of protection per acre will be 55 percent of the maximum protection per 
acre specified on the actuarial documents for each insured crop, 
practice, and type. For limited and additional coverage GRP policies, 
you may select any dollar amount of protection from 60 percent through 
100 percent of the maximum protection per acre shown on the actuarial 
documents for the crop, practice, and type.
    (b) The dollar amount of protection per acre, multiplied by your net 
insured acreage, is your policy protection for each insured crop, 
practice, and type specified in the actuarial documents.
    (c) All yields are based on NASS determinations, and such 
determinations for the county will be conclusively presumed to be 
accurate.

                           5. Coverage Levels

    (a) For catastrophic risk protection GRP policies, the coverage 
level is shown on the actuarial documents for each insured crop, 
practice, and type. For limited and additional coverage GRP policies, 
you may select any percentage of coverage shown on the actuarial 
documents for the crop, practice, and type.
    (b) Your coverage level multiplied by the expected county yield 
shown on the actuarial documents is your trigger yield. If the payment 
yield published by FCIC for the insured crop, practice, and type for the 
insured crop year falls below your trigger yield, you will receive an 
indemnity payment.

[[Page 205]]

    (c) You may change the coverage level or amount of protection for 
each insured crop on or before the sales closing date. Changes must be 
in writing and received by us by the sales closing date.

                      6. Payment Calculation Factor

    Your payment calculation factor will be ((your trigger yield-payment 
yield)  your trigger yield) for the purposes of calculating an 
indemnity payment.

                     7. Report of Acreage and Share

    (a) You must report on our form all acreage for each insured crop in 
which you have a share (insurable and not insured) by practice and type 
specified in the actuarial documents in each county listed on your 
accepted application. This report must be submitted each year on or 
before the acreage reporting date for the insured crop contained in the 
actuarial documents. If you do not submit an acreage report by the 
acreage reporting date, we will determine your acreage and share or deny 
liability on the policy.
    (b) We will not insure any acreage of the insured crop planted after 
the acreage reporting date, unless otherwise provided in the Crop 
Provisions.
    (c) Your premium will be based on the greater of the acreage 
reported on the acreage report or the acreage determined by us to be 
accurate.
    (d) The payment of an indemnity will be based on your insurable 
acreage on the acreage reporting date.
    (e) If you misrepresent or omit any information, we will revise the 
premium or liability or both for each insured crop in the county, by 
type and practice, to the amount we determine to be correct.
    (f) You may insure only your share of the crop, which includes any 
share of your spouse and dependent children unless it is demonstrated to 
our satisfaction, prior to the sales closing date, that you and your 
spouse maintain completely separate farming operations and that each 
spouse is the operator of his or her own separate operation. Any 
commingling of any part of the operations will cause shares of you and 
your spouse to be combined.

                8. Administrative Fees and Annual Premium

    (a) If you obtain a catastrophic risk protection GRP policy you will 
pay an administrative fee:
    (1) Of $60 per crop per county;
    (2) Payable to the insurance provider on the billing date for the 
crop.
    (b) If you obtain a limited coverage GRP policy, you will pay an 
administrative fee under the same terms and conditions as the premium 
for the policy:
    (1) Of $50 per crop per county;
    (2) Not to exceed $200 per county;
    (3) Up to a maximum of $600 per producer.
    (4) Limited resource farmers as defined at 7 CFR 457.8 may apply for 
a waiver of administrative fees for the limited coverage policy.
    (c) If you obtain an additional coverage GRP policy, you will pay an 
administrative fee:
    (1) Of $20 per crop per county;
    (2) Payable under the same terms and conditions as the premium for 
the policy.
    (d) For limited and additional coverage GRP policies, your premium 
is determined by multiplying your policy protection by the premium rate 
per hundred dollars of protection for your coverage level contained in 
the actuarial documents, by 0.01, and subtracting the applicable 
subsidy.
    (e) For catastrophic risk protection, limited, and additional 
coverage GRP policies, payment of an administrative fee will not be 
required if you file a bona fide zero acreage report on or before the 
acreage reporting date for the crop (if you falsely file a zero acreage 
report you may be subject to criminal and administrative sanctions).
    (f) The annual premium is earned and payable at the time the insured 
crop is planted. For each insured crop, you will be billed for premium 
and the administrative fee by the billing date specified in the Special 
Provisions. Premium, administrative fee, and any other amount owed us is 
due on the billing date and interest will accrue if the premium, 
administrative fee, or any other amount owed is not received by us 
before the first day of the month following the premium billing date.
    (g) The premium, administrative fee, and any other amount due, plus 
any accrued interest, will be considered delinquent if it is not paid on 
or before the termination date specified in the Crop Provisions. This 
may affect your eligibility for benefits under other USDA programs. A 
debt for any crop insured with us under the authority of the Act will be 
deducted from any indemnity due you for this or any other crop insured 
with us.
    (h) Failure to pay the premium and any administrative fee due, plus 
any accrued interest and penalties, by the termination date will make 
you ineligible for any crop insurance under the Act for subsequent crop 
years until the sales closing date after the date the debt, including 
interest and penalties, is paid or satisfactory arrangements acceptable 
to us for such payment are made.

                          9. Written Agreements

    Terms of this policy which are specifically designated for the use 
of written agreements may be altered by written agreement in accordance 
with the following:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date;

[[Page 206]]

    (b) The application for written agreement must contain all variable 
terms of the contract between you and us that will be in effect if the 
written agreement is not approved;
    (c) If approved by us, the written agreement will include all 
variable terms of the contract, including, but not limited to, crop type 
or variety, the protection per acre, premium rate, and price election; 
and
    (d) Each written agreement will only be valid for one year. If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy.

             10. Access to Insured Crop and Record Retention

    We may examine the insured crop and any records relating to the crop 
and this insurance at any location where such crop or such records may 
be found or maintained, as often as we reasonably require. Records 
relating to the planting of the insured crop and your net acres must be 
retained for three years after the end of the crop year or three years 
after the date of payment of the final indemnity, whichever is later. We 
may extend the record retention period beyond three years by notifying 
you of such extension in writing. Failure to maintain such records will, 
at our option, result in cancellation of the policy or a determination 
that no indemnity is due.

             11. Transfer of Coverage and Right to Indemnity

    If you transfer any part of your share during the crop year, you may 
transfer your coverage rights, if the transferee is eligible for crop 
insurance. We will not be liable for any more than the liability 
determined in accordance with your policy that existed before the 
transfer occurred. The transfer of coverage rights must be on our form 
and will not be effective until approved by us in writing. Both you and 
the transferee are jointly and severally liable for payment of the 
premium. The transferee has all rights and responsibilities under this 
policy consistent with the transferee's interest.

                       12. Assignment of Indemnity

    You may assign to another person your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us.

                           13. Other Insurance

    You may not obtain any other crop insurance issued under the 
authority of the Act on your share of the insured crop. If we determine 
that more than one policy on your share is intentional, you may be 
subject to the sanctions authorized under this policy, the Act, or any 
other applicable statute. If we determine that the violation was not 
intentional, the policy with the earliest date of application will be in 
force and all other policies will be void. Nothing in this paragraph 
prevents you from obtaining other insurance not issued under the Act.

                       14. Legal Action Against Us

    (a) You may not bring legal action against us unless you have 
complied with all of the policy provisions.
    (b) If you do take legal action against us, you must do so within 12 
months of the date of denial of a claim. Suit must be brought in 
accordance with the provisions of 7 U.S.C. 1508(j).
    (c) Your right to recover damages (compensatory, punitive, or 
other), attorney's fees, or other charges is limited or excluded by this 
contract or by Federal Regulations.
    [FCIC policy]

            15. Restrictions, Limitations, and Amounts Due Us

    (a) We may restrict the amount of acreage we will insure to the 
amount allowed under any acreage limitation program established by USDA.
    (b) Violation of Federal statutes including, but not limited to, the 
Act; the controlled substance provisions of the Food Security Act of 
1985; the Food, Agriculture, Conservation, and Trade Act of 1990; and 
the Omnibus Budget Reconciliation Act of 1993, and any regulation 
promulgated thereunder, will result in cancellation, termination, or 
voidance of your crop insurance contract. 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 not to exceed 20 percent of the premium paid or to 
be paid by you.
    (c) Our maximum liability under this policy will be limited to the 
policy protection specified in section 4 of this policy. Under no 
circumstances will we be liable for the payment of damages 
(compensatory, punitive, or other), attorney's fees, or other charges in 
connection with any claim for indemnity, whether we approve or 
disapprove such indemnity.
    (d) We will pay simple interest computed on the net indemnity 
ultimately found to be due by us or determined by a final judgment of a 
court of competent jurisdiction or a final administrative determination 
from, and including, the 61st day after the date we receive the NASS 
county yield estimates for the insured crop year. Interest will be paid 
only if the reason for our failure to timely pay is not due to your 
failure to provide information or other material necessary for the 
computation or payment of the indemnity. The interest rate will be that 
established by the Secretary of the Treasury

[[Page 207]]

under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611 et 
seq.), and published in the Federal Register.
    (e) Any amount illegally or erroneously paid to you or that is owed 
to us but is delinquent may be recovered by us through offset by 
deducting it from any loan or payment due you under any Act of Congress 
or program administered by any United States Government Agency, or by 
other collection action.
    (f) Interest will accrue at the rate not to exceed 1.25 percent 
simple interest per calendar month, or any part thereof, on any unpaid 
premium or administrative fee balance. For the purpose of premium and 
administrative fee amounts due us, interest will begin to accrue on the 
first day of the month following the premium billing date specified in 
the Special Provisions.
    (g) For the purpose of any other amounts due us, such as repayment 
of indemnities found not to have been earned:
    (1) Interest will start to accrue on the date that notice is issued 
to you for the collection of the unearned amount;
    (2) Amounts found due under this paragraph will not be charged 
interest if payment is made in full within 30 days of issuance of the 
notice by us;
    (3) The amount will be considered delinquent if not paid within 30 
days of the date the notice is issued by us;
    (4) Penalties and interest will be charged in accordance with 31 
U.S.C. 3717 and 4 CFR part 102; and
    (5) The penalty for accounts more than 90 days delinquent is an 
additional 6 percent per annum.
    (h) Interest on any amount due us found to have been received by you 
because of fraud, misrepresentation, or presentation by you of a false 
claim will start on the date you received the amount with the additional 
6 percent penalty beginning on the 31st day after the notice of amount 
due is issued to you. This interest is in addition to any other amount 
found to be due under any other Federal criminal or civil statute.
    (i) If we determine that it is necessary to contract with a 
collection agency, refer the debt to governmental collection centers, 
the Department of Treasury Offset Program, or to employ an attorney to 
assist in collection, you agree to pay all of the expenses of 
collection.
    (j) All amounts paid by you will be applied first to expenses of 
collection if any, second to reduction of any penalties which may have 
been assessed, then to reduction of accrued interest, and finally, to 
reduction of the principal balance.
    [Reinsured policy]

            15. Restrictions, Limitations, and Amounts Due Us

    (a) We may restrict the amount of acreage we will insure to the 
amount allowed under any acreage limitation program established by USDA.
    (b) Violation of Federal statutes including, but not limited to, the 
Act; the controlled substance provisions of the Food Security Act of 
1985; the Food, Agriculture, Conservation, and Trade Act of 1990; and 
the Omnibus Budget Reconciliation Act of 1993, and any regulation 
promulgated thereunder, will result in cancellation, termination, or 
voidance of your crop insurance contract. We will recover any and all 
monies paid to you or received by you during your period of 
ineligibility, and your premium will be refunded, less a reasonable 
amount for expenses and handling not to exceed 20 percent of the premium 
paid or to be paid by you.
    (c) Our maximum liability under this policy will be limited to the 
policy protection specified in section 4 of this policy. Under no 
circumstances will we be liable for the payment of damages 
(compensatory, punitive, or other), attorney's fees, or other charges in 
connection with any claim for indemnity, whether we approve or 
disapprove such indemnity.
    (d) Interest will accrue at the rate not to exceed 1.25 percent 
simple interest per calendar month, or any part thereof, on any unpaid 
premium or administrative fee balance. For the purpose of premium and 
administrative fee amounts due us, interest will begin to accrue on the 
first day of the month following the premium billing date specified in 
the Special Provisions.
    (e) For the purpose of any amounts due us, such as repayment of 
indemnities found not to have been earned, interest will start to accrue 
on the date that notice is issued to you for the collection of the 
unearned amount. Amounts found due under this paragraph will not be 
charged interest if payment in full is made within 30 days of issuance 
of notice by us. The amount will be considered delinquent if not paid in 
full within 30 days of the date the notice is issued by us.
    (f) All amounts paid will be applied first to expenses of collection 
(see subsection (g) of this section) if any, second to reduction of 
accrued interest, and then to reduction of the principal balance.
    (g) 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.
    (h) A portion of the amount paid to you to which you were not 
entitled may be collected through administrative offset from payments 
you receive from United States government agencies in accordance with 31 
U.S.C. chapter 37.
    [FCIC policy]

[[Page 208]]

                           16. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration or you 
may appeal our determinations in accordance with 7 CFR part 11.
    [Reinsured policy]

                           16. Determinations

    (a) If you and we fail to agree on any factual determination, the 
disagreement will be resolved in accordance with the rules of the 
American Arbitration Association. Failure to agree with any factual 
determination made by FCIC must be resolved through the FCIC appeal 
provisions published at 7 CFR part 11.
    (b) No award determined by arbitration or appeal can exceed the 
amount of liability established or which should have been established 
under this policy.
    [Both policies]

                        17. Holidays and Weekends

    If any date specified in this program falls on Saturday, Sunday, or 
a legal Federal holiday, that date will be extended to the next business 
day.

            18. Life of Policy, Cancellation, and Termination

    (a) This is a continuous policy and will remain in effect for each 
crop year following the acceptance of the original application until 
canceled by you in accordance with the terms of the policy or terminated 
by operation of the terms of the policy or by us.
    (b) Your application for insurance must contain all the information 
required by us to insure the crop. Applications that do not contain all 
social security numbers and employer identification numbers, as 
applicable (except as stated herein), coverage level, price election, 
crop, type, variety, or class, plan of insurance, and any other material 
information required to insure the crop, are not acceptable. If a person 
with a substantial beneficial interest in the insured crop refuses to 
provide a social security number or employer identification number, the 
amount of coverage available under the policy will be reduced 
proportionately by that person's share of the crop.
    (c) After acceptance of the application, you may not cancel this 
policy for the initial crop year. Thereafter, the policy will continue 
in force for each succeeding crop year unless canceled or terminated as 
provided below.
    (d) Either you or we may cancel this policy after the initial crop 
year by providing written notice to the other on or before the 
cancellation date shown in the Crop Provisions.
    (e) If any amount due, including premium, is not paid on or before 
the termination date for the crop on which an amount is due:
    (1) For a policy with the unpaid premium, the policy will terminate 
effective on the termination date immediately subsequent to the billing 
date for the crop year;
    (2) For a policy with other amounts due, the policy will terminate 
effective on the termination date immediately after the account becomes 
delinquent;
    (3) Ineligibility will be effective as of the date that the policy 
was terminated for the crop for which you failed to pay an amount owed 
and for all other insured crops with coincidental termination dates;
    (4) All other policies that are issued by us under the authority of 
the Act will also terminate as of the next termination date contained in 
the applicable policy;
    (5) If you are ineligible, you may not obtain any crop insurance 
under the Act until payment is made, you execute an agreement to repay 
the debt and make the payments in accordance with the agreement, or you 
file a petition to have your debts discharged in bankruptcy;
    (6) If you execute an agreement to repay the debt and fail to timely 
make any scheduled payment, you will be ineligible for crop insurance 
effective on the date the payment was due until the debt is paid in full 
or you file a petition to discharge the debt in bankruptcy and 
subsequently obtain discharge of the amounts due. Dismissal of the 
bankruptcy petition before discharge will void all policies in effect 
retroactive to the date you were originally determined ineligible to 
participate;
    (7) Once the policy is terminated, the policy cannot be reinstated 
for the current crop year unless the termination was in error;
    (8) After you again become eligible for crop insurance, if you want 
to obtain coverage for your crops, you must reapply on or before the 
sales closing date for the crop (since applications for crop insurance 
cannot be accepted after the sales closing date, if you make any payment 
after the sales closing date, you cannot apply for insurance until the 
next crop year); and
    (9) If we deduct the amount due us from an indemnity, the date of 
payment for the purpose of this section will be the date you sign the 
properly executed claim for indemnity.
    (10) For example, if crop A, with a termination date of October 31, 
1997, and crop B, with a termination date of March 15, 1998, 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, 1997, and crop A's 
policy is terminated on that date. Crop B's policy is terminated as of 
March 15, 1998. If you enter an agreement to repay the debt on April 25, 
1998, you can apply for insurance for crop A by the October 31, 1998, 
sales closing date and crop B by the March 15, 1999, sales closing date. 
If you fail to make a scheduled payment on November

[[Page 209]]

1, 1998, you will be ineligible for crop insurance effective on November 
1, 1998, and you will not be eligible unless the debt is paid in full or 
you file a petition to have the debt discharged in bankruptcy and 
subsequently receive discharge.
    (f) If you die, disappear, or are judicially declared incompetent, 
or if you are an entity other than an individual and such entity is 
dissolved, the policy will terminate as of the date of death, judicial 
declaration, or dissolution. If such event occurs after coverage begins 
for any crop year, the policy will continue in force through the crop 
year and terminate at the end of the insurance period and any indemnity 
will be paid to the person or persons determined to be beneficially 
entitled to the indemnity. The premium will be deducted from the 
indemnity or collected from the estate. Death of a partner in a 
partnership will dissolve the partnership unless the partnership 
agreement provides otherwise. If two or more persons having a joint 
interest are insured jointly, death of one of the persons will dissolve 
the joint entity.
    (g) We may terminate your policy if no premium is earned for 3 
consecutive years.
    (h) The cancellation and termination dates are contained in the Crop 
Provisions.

                          19. Contract Changes

    (a) We may change any terms and conditions of this policy from year 
to year.
    (b) Any changes in policy provisions, expected county yields, 
maximum amounts of protection, premium rates, and program dates will be 
provided by us to your local crop insurance provider not later than the 
contract change date contained in the Crop Provisions. You may view the 
documents or request copies from your local crop insurance provider.
    (c) You will be notified, in writing, of changes to the Basic 
Provisions, Crop Provisions, and Special Provisions of this policy not 
later than 30 days prior to the cancellation date for the insured crop. 
Acceptance of changes will be conclusively presumed in the absence of 
notice from you to change or cancel your insurance coverage.

             20. Eligibility for Other Farm Program Benefits

    To remain eligible for benefits under the Agriculture Marketing 
Transition Act, the conservation reserve program, or certain farm loans, 
you are required to obtain at least the catastrophic level of coverage 
for either GRP or any other plan of insurance that is available in the 
county, for all crops of economic significance, or execute a waiver of 
your rights to any emergency crop assistance on or before the sales 
closing date for the crop.

                 An Example To Demonstrate How GRP Works

    Producer A buys 90 percent coverage and selects $160 protection per 
acre. Producer B buys 75 percent coverage and selects $185 protection 
per acre. Both producers have 100 percent share and both plant 200 acres 
of a crop in the county. The expected county yield is 45 bushels per 
acre. The premium rate for 90 percent coverage is $6.14 per hundred 
dollars of protection and the premium rate for 75 percent coverage is 
$3.30 per hundred dollars of protection. The maximum subsidy amount per 
acre is $3.07 and the limited subsidy amount is $2.21 per acre.
    A's trigger yield is 40.5 bushels per acre (90%  x  45), and the 
total premium due is $1,965 ($160  x  $6.14  x  200 acres  x  0.01). Of 
that amount, FCIC pays $614 (200 acres  x  the maximum subsidy of $3.07 
per acre). A's policy protection is $32,000 ($160  x  200 acres).
    B's trigger yield is 33.8 bushels per acre (75% of 45), and the 
total premium due is $1,221 ($185  x  $3.30  x  200 acres  x  0.01). Of 
that amount, FCIC pays $442 (200 acres  x  the limited subsidy amount of 
$2.21 per acre). B's policy protection is $37,000 ( $185  x  200 acres).

Scenario 1 (likely)
    FCIC issues a payment yield of 46 bushels per acre. This is above 
both producers' trigger yields, so no indemnity payment is made, even if 
one or both have individual yields that are below the trigger yield.
Scenario 2 (less likely)
    FCIC issues a payment yield of 38 bushels per acre. A's payment 
calculation factor is 0.062 ((40.5-38)40.5). This number multiplied 
by the policy protection yields an indemnity payment of $1,984 (.062  x  
$32,000). B's trigger yield is less than the payment yield, so no 
indemnity payment is made.
Scenario 3 (least likely)
    FCIC issues a payment yield of 22 bushels per acre. A's payment 
calculation factor is 0.457 ((40.5-22)40.5). The payment is $14,624 
(0.457  x  $32,000). B's payment calculation factor is 0.349 ((33.8-22) 
33.8), and the final indemnity payment is $12,913 (0.349  x  
$37,000).



Sec. 407.10  Group risk plan for barley.

    The provisions of the Group Risk Plan for Barley for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or threshing the barley for grain.
    NASS yield. The yield calculated by dividing the NASS estimate of 
the barley production in the county, by the NASS estimate of the acres 
of barley in the county, as specified in the actuarial documents. The 
actuarial documents will specify whether harvested or planted acreage is 
used to calculate the yield used to establish the expected county yield 
and calculate indemnities.

[[Page 210]]

    Planted acreage. Land in which the barley seed has been placed by a 
machine 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. 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. Crop Insured

    The insured crop will be all barley:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Planted with the intent to be harvested as grain; and
    (d) Not planted into an established grass or legume, interplanted 
with another crop, or planted as a nurse crop, unless seeded at the 
normal rate and intended for harvest as grain.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to the April 1 following 
the crop year.
    (c) We will issue any payment to you prior to the May 1 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

----------------------------------------------------------------------------------------------------------------
             State and county                 Cancellation and termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Kit Carson, Lincoln, Elbert, El Paso,       September 30.........................  June 30.
 Pueblo, Las Animas Counties, Colorado and
 all Colorado Counties south and east
 thereof; all New Mexico counties except
 Taos County; Kansas; Missouri; Illinois;
 Indiana; Ohio; Pennsylvania; New York;
 Massachusetts; and all states south and
 east thereof.
Arizona; California; and Clark and Nye      October 31...........................  June 30.
 Counties, Nevada.
All Colorado counties except Kit Carson,    March 15.............................  November 30.
 Lincoln, Elbert, El Paso, Pueblo, and Las
 Animas Counties and all Colorado counties
 south and east thereof; all Nevada
 counties except Clark and Nye Counties;
 Taos County, New Mexico; and all other
 states except: Arizona, California, and
 (except) Kansas, Missouri, Illinois,
 Indiana, Ohio, Pennsylvania, New York,
 and Massachusetts and all States south
 and east thereof.
----------------------------------------------------------------------------------------------------------------



Sec. 407.11  Group risk plan for corn.

    The provisions of the Group Risk Plan for Corn for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or picking corn for grain, or severing the stalk 
from the land and chopping the stalk and ear for the purpose of 
livestock feed.
    NASS yield. The yield calculated by dividing the NASS estimate of 
the corn for grain production in the county, by the NASS estimate of the 
acres of corn for grain in the county, as specified in the actuarial 
documents. The actuarial documents will specify whether harvested or 
planted acreage is used to calculate the yield used to establish the 
expected county yield and calculate indemnities.
    Planted acreage. Land in which the corn seed has been placed by a 
machine 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. Broadcast and subsequent 
mechanical incorporation of the corn seed is not allowed.

                             2. Crop Insured

    (a) The insured crop will be all field corn:
    (1) Grown on insurable acreage in the county listed in the accepted 
application;
    (2) Properly planted and reported by the acreage reporting date;
    (3) Planted with the intent to be harvested as grain, silage, or 
green chop; and
    (4) Not planted into an established grass or legume or interplanted 
with another crop.
    (b) Hybrid seed corn, popcorn, sweet corn, and other specialty corn 
may only be insured if a written agreement exists between you and us. 
Your request to insure such crop must be in writing and submitted to 
your agent not later than the sales closing date.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.

[[Page 211]]

    (b) Payment yields will be determined prior to April 16 following 
the crop year.
    (c) We will issue any payment to you prior to the May 16 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

----------------------------------------------------------------------------------------------------------------
             State and county                 Cancellation and termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,   January 15...........................  November 30.
 Wilson, Karnes, Goliad, Victoria, and
 Jackson Counties, Texas, and all Texas
 counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves,       February 15..........................  November 30.
 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; California;     February 28..........................  November 30.
 Florida; Georgia; Louisiana; Mississippi;
 Nevada; North Carolina; South Carolina.
All other Texas counties and all other      March 15.............................  November 30.
 states.
----------------------------------------------------------------------------------------------------------------



Sec. 407.12   Group risk plan for cotton.

    The provisions of the Group Risk Plan for Cotton for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Removal of the seed cotton from the stalk.
    NASS yield. The yield calculated by dividing the NASS estimate of 
upland cotton production in the county, by the NASS estimate of the 
acres of upland cotton in the county, as specified in the actuarial 
documents. The actuarial documents will specify whether harvested or 
planted acreage is used to calculate the yield used to establish the 
expected county yield and calculate indemnities.
    Planted acreage. Land in which the cotton seed has been placed by a 
machine 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. Broadcast and subsequent 
mechanical incorporation of the cotton seed is not allowed.

                             2. Crop Insured

    The insured crop will be all upland cotton:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Planted with the intent to be harvested; and
    (d) That is not (unless allowed by the Special Provisions or by 
written agreement):
    (1) Colored cotton lint;
    (2) Planted into an established grass or legume;
    (3) Interplanted with another spring planted crop;
    (4) Grown on acreage in which a hay crop was harvested in the same 
calendar year unless the acreage is irrigated; or
    (5) Grown on acreage on which a small grain crop reached the heading 
stage in the same calendar year unless the acreage is irrigated or 
adequate measures are taken to terminate the small grain crop prior to 
heading and less than 50 percent of the small grain plants reach the 
heading stage.

                               3. Payment.

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to July 16 following the 
crop year.
    (c) We will issue any payment to you prior to the August 16 
immediately following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

----------------------------------------------------------------------------------------------------------------
             State and county                 Cancellation and termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,   January 15...........................  November 30.
 Wilson, Karnes, Goliad, Victoria, and
 Jackson Counties, Texas, and all Texas
 counties lying south thereof.

[[Page 212]]

 
Alabama; Arizona; Arkansas; California;     February 28..........................  November 30.
 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 all other      March 15.............................  November 30.
 States.
----------------------------------------------------------------------------------------------------------------



Sec. 407.13   Group risk plan for forage.

    The provisions of the Group Risk Plan for Forage for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Removal of the forage from the field, and rotational 
grazing.
    NASS yield. The yield calculated by dividing the NASS estimate of 
the production of hay in the county by the NASS estimate of the acres of 
hay in the county, as specified in the actuarial documents. The 
actuarial documents will specify whether the harvested or planted 
acreage is used to calculate the yield used to establish the expected 
county yield and calculate indemnities.
    Planted acreage. Land seeded to forage, by a planting method 
appropriate for forage, into a properly prepared seedbed.
    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. Crop Insured

    The insured crop will be the forage types shown on the Special 
Provisions:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Intended for harvest; and
    (d) Not grown with another crop.

                          3. Insurable Acreage

    In addition to section 3 of the Basic Provisions of the Group Risk 
Plan Common Policy, acreage seeded to forage after July 1 of the 
previous crop year will not be insurable. Acreage physically located in 
another county not listed on the accepted application is not insured 
under this policy.

                               4. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to May 1 following the 
crop year.
    (c) We will issue any payment to you prior to the May 31 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            5. Program Dates

    November 30 is the Cancellation and Termination Date for all states. 
The Contract Change Date is August 31 for all states.

                            6. Annual Premium

    In lieu of section 8(g) of the Basic Provisions of the Group Risk 
Plan Common Policy, 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  Group risk plan for peanuts.

    The provisions of the Group Risk Plan for Peanuts for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or threshing the peanuts.
    NASS yield. The yield calculated by dividing the NASS estimate of 
peanut production in the county, by the NASS estimate of the acres of 
peanuts in the county, as specified in the actuarial documents. The 
actuarial documents will specify whether the harvested or planted 
acreage is used to calculate the yield used to establish the expected 
county yield and calculate indemnities.

[[Page 213]]

    Planted acreage. Land in which the peanut seed has been placed by a 
machine 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.

                             2. Crop Insured

    The insured crop will be all peanuts:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Planted with the intent to be harvested as peanuts; and
    (d) Not interplanted with an established grass or legume or 
interplanted with another crop.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to June 16 following the 
crop year.
    (c) We will issue any payment to you prior to the July 16 
immediately following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

----------------------------------------------------------------------------------------------------------------
             State and county                 Cancellation and termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,   January 15...........................  November 30.
 McMullen, La Salle, and Dimmit Counties,
 Texas and all Texas Counties lying south
 thereof.
El Paso, Hudspeth, Culberson, Reeves,       February 28..........................  November 30.
 Loving, Winkler, Ector, Upton, Reagan,
 Sterling, Coke, Tom Green, Concho,
 McCulloch, San Saba, Mills, Hamilton,
 Bosque, Johnson, Tarrant, Wise, Cooke
 Counties, Texas, and all Texas counties
 south and east thereof; and all other
 states except New Mexico, Oklahoma, and
 Virginia.
New Mexico; Oklahoma; Virginia; and all     March 15.............................  November 30.
 other Texas Counties.
----------------------------------------------------------------------------------------------------------------



Sec. 407.15  Group risk plan for sorghum.

    The provisions of the Group Risk Plan for Sorghum for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or threshing the sorghum for grain, or severing 
the stalk from the land and chopping the stalk and head for the purpose 
of livestock feed.
    NASS yield. The yield calculated by dividing the NASS estimate of 
sorghum for grain production in the county, by the NASS estimate of the 
acres of sorghum for grain in the county, as specified in the actuarial 
documents. The actuarial documents will specify whether the harvested or 
planted acreage is used to calculate the yield used to establish the 
expected county yield and calculate indemnities.
    Planted acreage. Land in which the sorghum seed has been placed by a 
machine 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. Broadcast and subsequent 
mechanical incorporation of the sorghum seed is not allowed.

                             2. Crop Insured

    (a) The insured crop will be all sorghum:
    (1) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (2) Properly planted and reported by the acreage reporting date;
    (3) Planted with the intent to be harvested as grain or silage; and
    (4) Not interplanted with an established grass or legume or 
interplanted with another crop.
    (b) Hybrid sorghum seed may only be insured if a written agreement 
exists between you and us. Your request to insure such crop must be in 
writing and submitted to your agent not later than the sales closing 
date.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to April 16 following 
the crop year.
    (c) We will issue any payment to you prior to the May 16 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

[[Page 214]]



----------------------------------------------------------------------------------------------------------------
             State and county                Cancellation and  termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,   January 15...........................  November 30.
 Wilson, Karnes, Goliad, Victoria, and
 Jackson Counties, Texas, and all Texas
 counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves,       February 15..........................  November 30.
 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; California;     February 28..........................  November 30.
 Florida; Georgia; Louisiana; Mississippi;
 Nevada; North Carolina; and South
 Carolina.
All other Texas counties and all other      March 15.............................  November 30.
 states.
----------------------------------------------------------------------------------------------------------------



Sec. 407.16  Group risk plan for soybean.

    The provisions of the Group Risk Plan for Soybeans for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or threshing the soybeans.
    NASS yield. The yield calculated by dividing the NASS estimate of 
soybean production in the county, by the NASS estimate of the acres of 
soybeans in the county, as specified in the actuarial documents. The 
actuarial documents will specify whether the harvested or planted 
acreage is used to calculate the yield used to establish the expected 
county yield and calculate indemnities.
    Planted acreage. Land in which the soybean seed has been placed by a 
machine 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. 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. Crop Insured

    The insured crop will be all soybeans:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Planted with the intent to be harvested as soybeans; and
    (d) Not planted into an established grass or legume or interplanted 
with another crop.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to April 16 following 
the crop year.
    (c) We will issue any payment to you prior to the May 16 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified on the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

                            4. Program Dates

----------------------------------------------------------------------------------------------------------------
             State and county                 Cancellation and termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,   February 15..........................  November 30.
 McMullen, La Salle, and Dimmit Counties,
 Texas and all Texas counties lying south
 thereof.
Alabama; Arizona; Arkansas; California;     February 28..........................  November 30.
 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 all other      March 15.............................  November.
 States.
All other Texas counties and all other      March 15.............................  November 30.
 states..
----------------------------------------------------------------------------------------------------------------


[[Page 215]]



Sec. 407.17  Group risk plan for wheat.

    The provisions of the Group Risk Plan for Wheat for the 2000 and 
succeeding crop years are as follows:

                             1. Definitions

    Harvest. Combining or threshing the wheat for grain.
    NASS yield. The yield calculated by dividing the NASS estimate of 
the wheat production in the county, by the NASS estimate of the acres of 
wheat in the county, as specified in the actuarial documents. The 
actuarial documents will specify whether the harvested or planted 
acreage is used to calculate the yield used to establish the expected 
county yield and calculate indemnities.
    Planted acreage. Land in which the wheat seed has been planted by a 
machine 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. 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. Crop Insured

    The insured crop will be all wheat:
    (a) Grown on insurable acreage in the county or counties listed in 
the accepted application;
    (b) Properly planted and reported by the acreage reporting date;
    (c) Planted with the intent to be harvested as grain; and
    (d) Not planted into an established grass or legume, interplanted 
with another crop, or planted as a nurse crop, unless seeded at the 
normal rate and intended for harvest as grain.

                               3. Payment

    (a) A payment will be made only if the payment yield for the insured 
crop year is less than your trigger yield.
    (b) Payment yields will be determined prior to April 1 following the 
crop year.
    (c) We will issue any payment to you prior to the May 1 immediately 
following our determination of the payment yield.
    (d) The payment is equal to the payment calculation factor 
multiplied by your policy protection for each insured crop practice and 
type specified in the actuarial documents.
    (e) The payment will not be recalculated even though the NASS yield 
may be subsequently revised.

----------------------------------------------------------------------------------------------------------------
             State and county                Cancellation and  termination dates        Contract change date
----------------------------------------------------------------------------------------------------------------
All Colorado counties except Alamosa,       September 30.........................  June 30.
 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; and Utah.....  October 31...........................  June 30.
Alaska; Alamosa, Conejos, Costilla, Rio     March 15.............................  November 30.
 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..
----------------------------------------------------------------------------------------------------------------

                          PART 408  [RESERVED]



PART 409--ARIZONA--CALIFORNIA CITRUS INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
409.1  Availability of Arizona-California Citrus crop insurance.
409.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
409.3  OMB control numbers.
409.4  Creditors.
409.5  Good faith reliance on misrepresentation.
409.6  The contract.
409.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 50 FR 43662, Oct. 29, 1985, unless otherwise noted.

[[Page 216]]



       Subpart--Regulations for the 1987 and Succeeding Crop Years



Sec. 409.1  Availability of Arizona-California Citrus crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
citrus in counties within limits prescribed by and in accordance with 
the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 409.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for Arizona-California citrus which will be included in the 
actuarial table on file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance per acre from among those amounts 
shown on the actuarial table for the crop year.



Sec. 409.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 409.4  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. 409.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the Arizona-California Citrus 
insurance contract, whenever: (a) An insured under a contract of crop 
insurance entered into under these regulations, as a result of a 
misrepresentation or other erroneous action or advice by an agent or 
employee of the Corporation: (1) Is indebted to the Corporation for 
additional premiums; or (2) has suffered a loss to a crop which is not 
insured or for which the insured is not entitled to an indemnity because 
of failure to comply with the terms of the insurance contract, but which 
the insured believed to be insured, or believed the terms of the 
insurance contract to have been complied with or waived; and (b) the 
Board of Directors of the Corporation, or the Manager in cases involving 
not more than $100,000.00 finds that: (1) An agent or employee of the 
Corporation did in fact make such misrepresentation or take other 
erroneous action or give erroneous advice; (2) said insured relied 
thereon in good faith; and (3) to require the payment of the additional 
premiums or to deny such insured's entitlement to the indemnity would 
not be fair and equitable, such insured shall be granted relief the same 
as if otherwise entitled thereto. Requests for relief under this section 
must be submitted to the Corporation in writing.



Sec. 409.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the citrus crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 409.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the citrus crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of

[[Page 217]]

the Corporation is authorized in any crop year to extend the closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable service offices and publishing a notice 
in the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1987 and succeeding crop years, a contract in the form provided for 
under this subpart will come into effect as a continuation of a citrus 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1987 and succeeding crop years is found 
at Subpart D of Part 400-General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Arizona-California Citrus Insurance Policy 
for the 1987 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

            Arizona--California Citrus Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches; or
    (7) Direct Mediterranean Fruit Fly damage;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9f(7).
    b. We will not insure against any loss of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the grove;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good citrus grove practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow good citrus irrigation practices;
    (6) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (7) Any cause not specified in section 1a as an insured loss;

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the following citrus types, which 
are grown on insured acreage and for which a guarantee and premium rate 
are provided by the actuarial table, which you elect:
    Type I--Navel oranges;
    Type II--Sweet oranges;
    Type III--Valencia oranges;
    Type IV--Grapefruit;
    Type V--Lemons;
    Type VI--Kinnow mandarins;
    Type VII--Minneola tangelos; or
    Type VIII--Orlando tangelos;
    b. The acreage insured for each crop year will be that acreage of 
citrus located on insurable acreage as designated by the actuarial table 
and in which you have a share, as reported by you or as determined by 
us, whichever we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured citrus on the date insurance attaches.
    d. We do not insure any acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the sixth growing season 
after being set out; and
    (3) Which does not have acceptable records of production, unless 
inspected by us and considered acceptable and we agree, in writing, to 
insure such acreage.
    e. Insurance will not attach or be considered to have attached to 
any acreage of the crop, for the crop year the application is filed 
until the acreage has been inspected and accepted by us.
    f. Insurance may attach only by written agreement with us on any 
acreage with less

[[Page 218]]

than 90 percent of a stand, based on the original planting pattern.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

       3. Report of Acreage, Share, Number of Trees, and Practice

    You must report on our form:
    a. All the acreage of citrus in the county in which you have a 
share;
    b. The practice;
    c. Your share on the date insurance attaches; and
    d. The number of bearing trees.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any citrus grown in the 
county. This report must be submitted annually on or before January 10. 
All indemnities may be determined on the basis of information you submit 
on this report. If you do not submit this report by January 10, we may 
elect to determine by unit the insured acreage, share, and practice or 
we may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insurance 
acreage, times your share at the time insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1985 crop year 
under the terms of the experience table contained in the citrus policy 
in effect for the 1986 crop year, you will continue to receive the 
benefit of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1986 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    a. Insurance attaches on December 1 prior to the calendar year of 
normal bloom, and ends at the earliest of:
    (1) Total destruction of the citrus;
    (2) Harvest of the citrus;
    (3) Final adjustment of a loss; or
    (4) The date following the year in which the bloom is normally set 
as follows:
    (a) August 31 for Navel oranges and Southern California lemons;
    (b) November 30 for Valencia oranges; or
    (c) July 31 for all other types of citrus.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us prompt written notice.
    (a) After insured damage to the citrus becomes apparent, giving the 
dates and causes of such damage; or
    (b) If you decide not to further care for or harvest any part of it.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given. If harvest will begin after the end of the insurance period,

[[Page 219]]

notice must be given on or before the calendar date for the end of the 
insurance period.
    b. You must obtain written consent from us before you destroy any of 
the citrus which is not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the citrus on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of citrus on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of citrus to be 
counted (see section 9f);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. If a determination is made that frost protection equipment was 
not properly utilized or not properly reported, the indemnity for the 
unit will be reduced by the percentage of premium reduction allowed for 
frost protection equipment. You must, at our request, provide us records 
showing the start-stop times by date for each period the equipment was 
used.
    f. The total production (cartons) to be counted for each unit will 
include all harvested production marketed as fresh packed fruit and all 
appraised production determined to be marketable as fresh packed fruit.
    (1) Any production will be considered marketed or marketable as 
fresh packed fruit unless, due to insurable causes, such production was 
not marketed or marketable as fresh packed fruit.
    (2) In the absence of acceptable records to determine the 
disposition of harvested citrus, we may determine such disposition and 
the amount of such production to be counted for the unit.
    (3) Appraised production to be counted will include:
    (a) Unharvested production, and potential production lost due to 
uninsured causes and failure to follow recognized good citrus grove 
practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent.
    (4) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before harvest of the insured citrus type becomes 
general in the county and reappraised by us;
    (b) Harvested; or
    (c) Further damaged by an insured cause and reappraised by us.
    (5) Citrus which cannot be marketed due to insurable causes will not 
be considered production.
    (6) The amount of production of any unharvested citrus may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (7) If you elect to exclude hail and fire as insured causes of loss 
and the citrus is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    g. You must not abandon any acreage to us.
    h. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or

[[Page 220]]

about January 1 and July 1. The interest rate to be paid on any 
indemnity will vary with the rate announced by the Secretary of the 
Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the date insurance attaches for any crop year, any 
indemnity will be paid to the person determined to be beneficially 
entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Grove

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all citrus 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the grove for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 30.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

[[Page 221]]

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of Arizona-California citrus crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
citrus insurance in the county.
    b. Carton as to each insured citrus type means the standard 
container for marketing fresh packed fruit as shown below by citrus 
type. In the absence of marketing records on such a carton basis, 
production will be converted to cartons on the basis of the following 
average net pounds of packed fruit in a standard packed carton.

------------------------------------------------------------------------
            Container size                  Types of fruit        Pounds
------------------------------------------------------------------------
Container #58........................  Navel oranges, Valencia        38
                                        oranges & Sweet oranges.
Container #58........................  Lemons..................       40
Container #59........................  Grapefruit..............       32
Container #63........................  Tangerines (including          25
                                        Tangelos) and Mandarin
                                        oranges.
------------------------------------------------------------------------

    c. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will be considered contiguous.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches to the citrus crop and extending through normal harvest time, 
and will be designated by the calendar year following the year in which 
the bloom is normally set.
    f. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the citrus on the unit which causes such citrus to be 
unmarketable and will not include unmarketability of such citrus as a 
direct result of a quarantine, boycott, or refusal to accept the citrus 
by any entity without regard to actual physical damage to such citrus.
    g. Harvest means the severance of mature citrus from the tree either 
by pulling, picking, or severing by mechanical or chemical means, or 
picking up the marketable fruit from the ground.
    h. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    i. Insured means the person who submitted the application accepted 
by us.
    j. Loss ratio means the ratio of indemnity to premium.
    k. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    l. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    m. Tenant means a person who rents land from another person for a 
share of the citrus or a share of the proceeds therefrom.
    n. Unit means all insurable acreage in the county of any one of the 
citrus types referred to in section 2 of this policy, located on 
contiguous land on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the citrus on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

[[Page 222]]

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43662, Oct. 29, 1985, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 54 FR 38962, 
Sept. 22, 1989; 55 FR 35888, Sept. 4, 1990]

                        PARTS 410-411  [RESERVED]



PART 412--PUBLIC INFORMATION--FREEDOM OF INFORMATION--Table of Contents




Sec.
412.1  General statement.
412.2  Public inspection and copying.
412.3  Index.
412.4  Requests for records.
412.5  Appeals.
412.6  Timing of responses to requests.

    Authority: 5 U.S.C. 552 and 7 U.S.C. 1506.

    Source: 62 FR 67694, Dec. 30, 1997, unless otherwise noted.



Sec. 412.1  General statement.

    This part is issued in accordance with the regulations of the 
Secretary of Agriculture published at 7 CFR 1.1-1.23, and appendix A, 
implementing the Freedom of Information Act (5 U.S.C. 552). The 
Secretary's regulations, as implemented by this part, and the Risk 
Management Agency (RMA) govern availability of records of the Federal 
Crop Insurance Corporation (FCIC) as administration of the crop 
insurance program for FCIC.



Sec. 412.2  Public inspection and copying.

    (a) Members of the public may request access to the information 
specified in Sec. 412.2(d) for inspection and copying.
    (b) To obtain access to specified information, the public should 
submit a written request, in accordance with 7 CFR 1.6, to the Appeals, 
Litigation and Legal Liaison Staff, Risk Management Agency, United 
States Department of Agriculture, 1400 Independence Avenue, SW, STOP 
0807, room 6618-S, Washington, DC 20250-0807, from 9:00 a.m.--4:00 pm., 
EDT Monday through Friday, except holidays.
    (c) When the information requested is not located at the office of 
the Appeals, Litigation and Legal Liaison Staff, the Appeals, Litigation 
and Legal Liaison Staff will direct the request to the appropriate 
office where the information can be obtained. The requester will be 
informed that the request has been forwarded to the appropriate office.
    (d) FCIC will make available for inspection and copying, unless 
otherwise exempt from publication under sections 552(a)(2)(C) and 
552(b):
    (1) Final opinions, including concurring and dissenting opinions and 
orders made in the adjudication of cases; and
    (2) Those statements of policy and interpretations that have been 
adopted by FCIC and RMA and are not published in the Federal Register; 
and
    (3) Administrative staff manuals and instructions to staff that 
affect a member of the public.



Sec. 412.3  Index.

    5 U.S.C. 552(a)(2) requires that each agency publish, or otherwise 
make available, a current index of all materials available for public 
inspection and copying. RMA and FCIC will maintain a current index 
providing identifying information for the public as to any material 
issued, adopted, or promulgated by the Agency since July 4, 1967, and 
required by section 552(a)(2). Pursuant to the Freedom of Information 
Act provisions, RMA and FCIC have determined that in view of the small 
number of public requests for such index, publication of such an index 
would be unnecessary and impracticable. Copies of the index will be 
available upon request in person or by mail at the address stated in 
Sec. 412.2(b).



Sec. 412.4  Requests for records.

    The Director of the Appeals, Litigation and Legal Liaison staff, RMA 
located at the above stated address, is

[[Page 223]]

the person authorized to receive Freedom of Information Act and to 
determine whether to grant or deny such requests in accordance with 7 
CFR 1.8.



Sec. 412.5  Appeals.

    Any person whose request under Sec. 412.4 is denied shall have the 
right to appeal such denial. This appeal shall be submitted in 
accordance with 7 CFR 1.13 and addressed to the Manager, Federal Crop 
Insurance Corporation, United States Department of Agriculture, 1400 
Independence Avenue, SW., STOP 0807, room 6618-S, Washington, DC 20250-
0807.



Sec. 412.6  Timing of responses to requests.

    (a) In general, FCIC will respond to requests according to their 
order of receipt.
    (b) Existing responsive documents or information may be maintained 
in RMA's field offices. Therefore, extra time may be necessary to search 
and collect the documents.

                          PART 413  [RESERVED]



PART 414--FORAGE SEEDING CROP INSURANCE--Table of Contents




        Subpart--Regulations for the 1981 Through 1997 Crop Years

Sec.
414.1  Availability of forage seeding crop insurance.
414.2  Premium rates and amounts of insurance.
414.3  OMB control numbers.
414.4  Creditors.
414.5  Good faith reliance on misrepresentation.
414.6  The contract.
414.7  The application and policy.

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

    Source: 45 FR 49511, July 25, 1980, unless otherwise noted.



        Subpart--Regulations for the 1981 Through 1997 Crop Years



Sec. 414.1  Availability of forage seeding crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
Forage Seeding in counties within limits prescribed by, and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.

[50 FR 27928, July 9, 1985]



Sec. 414.2  Premium rates and amounts of insurance.

    (a) The Manager shall establish premium rates and amounts of 
insurance for forage seeding which shall be shown on the county 
actuarial table on file in the office for the county and may be changed 
from year to year.
    (b) At the time the application for insurance is made, the applicant 
shall elect an amount of insurance from among those amounts shown on the 
actuarial table for the crop year.



Sec. 414.3  OMB control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 414) have been approved by the Office of 
Management and Budget (OMB) under the provisio