[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1998 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
7
Agriculture
PARTS 400 TO 699
Revised as of January 1, 1998
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF JANUARY 1, 1998
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1998
For sale by U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
[[Page iii]]
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........................................... 533
Chapter VI--Natural Resources Conservation Service,
Department of Agriculture............................. 551
Finding Aids:
Table of CFR Titles and Chapters.......................... 683
Alphabetical List of Agencies Appearing in the CFR........ 699
List of CFR Sections Affected............................. 709
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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.
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[[Page v]]
EXPLANATION
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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
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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
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OBSOLETE PROVISIONS
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[[Page vii]]
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January 1, 1998.
[[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, 1998.
The Food and Consumer 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, Gregory R. Walton 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)
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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
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Part Page
400 General administrative regulations.......... 7
401 General crop insurance regulations--
regulations for the 1988 and subsequent
contract years.......................... 64
402 Catastrophic Risk Protection Endorsement;
Regulations for the 1997 and subsequent
crop years.............................. 169
403 General crop insurance regulation........... 174
404
[Reserved]
405 Apple crop insurance regulations............ 180
406 Nursery crop insurance regulations.......... 189
407-408
[Reserved]
409 Arizona--California citrus insurance
regulations............................. 196
410-411
[Reserved]
412 Public information--Freedom of information.. 202
413
[Reserved]
414 Forage seeding crop insurance............... 203
415 Forage production crop insurance regulations 210
416 Pea crop insurance regulations for the 1986
through 1997 crop years................. 216
417-421
[Reserved]
422 Potato crop insurance regulations........... 223
423-424
[Reserved]
425 Peanut crop insurance regulations........... 235
426-429
[Reserved]
430 Sugar beet crop insurance regulations....... 242
431-432
[Reserved]
433 Dry bean crop insurance regulations......... 250
434
[Reserved]
435 Tobacco (quota plan) crop insurance
regulations............................. 257
436
[Reserved]
437 Sweet corn crop insurance regulations for
the 1985 through 1997 crop years........ 265
438-440
[Reserved]
[[Page 6]]
441 Table grape crop insurance regulations for
the 1987 through 1997 crop years........ 271
442
[Reserved]
443 Hybrid seed crop insurance regulations for
the 1986 through 1997 crop years........ 278
444
[Reserved]
445 Pepper crop insurance regulations........... 287
446 Walnut crop insurance regulations........... 294
447 Popcorn crop insurance regulations.......... 300
448-449
[Reserved]
450 Prune crop insurance regulations for the
1996 and succeeding crop years.......... 306
451 Canning and processing peach crop insurance
regulations............................. 312
452-453
[Reserved]
454 Fresh market tomato (guaranteed production
plan) crop insurance regulations for the
1987 through 1997 crop years............ 318
455 Macadamia nut crop insurance regulations for
the 1988 through the 1997 crop years.... 326
456 Macadamia tree crop insurance regulations
for the 1988 through 1997 crop years.... 332
457 Common crop insurance regulations;
regulations for the 1994 and subsequent
contract years.......................... 338
458 Special California crop insurance
regulations............................. 526
[[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 1997 and Subsequent Crop 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 Coverage provided.
400.656 Administrative fees and waivers.
400.657 Eligibility for other program benefits.
400.658 Coverage for acreage that is prevented from being planted.
400.659 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 A--Late Planting Agreement Option; Regulations for the 1987 and
Succeeding Crop Years
Authority: 7 U.S.C. 1506(l).
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
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
[[Page 10]]
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
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
[[Page 11]]
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 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.
[[Page 12]]
(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 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
[[Page 13]]
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 (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
[[Page 14]]
(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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[ ]
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[ ]
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[ ]
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[ ]
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[ ]
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[[Page 16]]
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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]
[[Page 17]]
Subpart E--[Reserved]
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-
[[Page 18]]
peril company expressly agrees to continue such policy in effect without
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) of the
Paperwork Reduction Act, which
[[Page 23]]
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
FCI-74-A..................................... Stonefruit Appraisal Worksheet......... 0563-0016 4-30-95
[[Page 24]]
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).
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
[[Page 25]]
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 the contract between the General
Services Administration (GSA) and the collection agency.
[[Page 26]]
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 the debtor a written notification of the decision. If
appropriate, notification shall inform the debtor of the scheduled date
on or after which information
[[Page 27]]
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.
(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
[[Page 28]]
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:
(1) Certify to the debtor's employing agency that the debt exists
and the amount of the debt or delinquent balance;
[[Page 29]]
(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
should direct any communication with respect to the debt.
[53 FR 4, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]
[[Page 30]]
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 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
[[Page 31]]
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 Statement of Financial Condition or
[[Page 39]]
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 under
[[Page 51]]
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 1997 and Subsequent Crop 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. The $50 fee the producer must pay on a per crop
and county basis with a maximum of $200 per producer per county and $600
per producer for catastrophic and limited coverage on an annual basis.
Also, the $10 fee the producer must pay annually on a per crop and
county basis for additional coverage.
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
[[Page 53]]
price, or a comparable coverage as established by FCIC.
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.
Limited resource farmer. A producer or operator of a farm, with an
annual gross income of $20,000 or less derived from all sources of
revenue, including income from spouse's or other members of the
household, for each of the prior two years. Notwithstanding the previous
sentence, a producer on a farm or farms of less than 25 acres aggregated
for all crops, where a majority of the producer's gross income is
derived from such farm or farms, but the producer's gross income from
farming operations does not exceed $20,000, will be considered a limited
resource farmer.
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. 400.657, 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.
Sec. 400.652 Insurance availability.
(a) If sufficient actuarial data are available, FCIC will offer
catastrophic risk protection, limited, and additional
[[Page 54]]
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
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. 400.657
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. 400.657. Failure
to execute such a waiver will require the producer to refund any
benefits already received under a program specified in Sec. 400.657.
(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.
[[Page 55]]
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. 400.657, a producer must obtain at least catastrophic
risk protection on all crops of economic significance, if 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. 400.657. 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.
Sec. 400.655 Coverage provided.
(a) The specific causes of loss for which insurance coverage is
offered are designated in the crop insurance policy for each crop.
(b) An indemnity paid to a producer may be reduced, in an amount
determined in accordance with crop provisions or Special Provisions, to
reflect out-of-pocket expenses that were not incurred by the producer as
a result of not planting, caring for, or harvesting the crop.
Indemnities paid for acreage that is prevented from being planted will
be based on a reduced guarantee as provided for in the crop policy and
will not be further reduced to reflect expenses not incurred.
(c) The producer must obtain the same level of coverage
(catastrophic, limited, or additional) for all acreage of the crop in
the county unless one of the following applies:
(1) The applicable crop insurance policy allows the producer the
option to separately insure individual crop types
[[Page 56]]
or varieties. In this case each individual type or variety insured by
the producer will be subject to separate administrative fees. For
example, if two grape varieties in California are insured under a CAT
policy and two varieties are insured under a limited coverage policy, a
separate administrative fee will be charged for each of the four
varieties. Although insurance may be elected by type or variety in these
instances, failure to insure a type or variety that is of economic
significance may result in the denial of other farm program benefits,
unless the producer executes a waiver of any eligibility for emergency
crop loss assistance in connection with the crop.
(2) The producer with limited or additional coverage for the crop in
the county has acreage that has been designated as ``high risk'' by
FCIC. Such producers will be able to obtain a High Risk Land Exclusion
Option for the high risk acreage under the limited or additional
coverage policies and insure the high risk acreage under a separate CAT
policy provided that the CAT coverage is obtained from the same
insurance provider from which the limited or additional coverage was
obtained. The producer may only obtain CAT from another insurance
provider if the original insurance provider does not deliver CAT
policies.
(d) Catastrophic risk protection.
(1) Any person who has a bona fide insurable interest in a crop is
eligible for catastrophic risk protection subject to any limitations
contained in the crop insurance contract.
(2) A person who is eligible to receive an indemnity under
catastrophic risk protection and is also eligible to receive
compensation for the same crop loss under any other USDA programs, must
elect the program from which to receive benefits. A payment or program
benefit under only one of the programs is allowed. If other USDA program
benefits are not available until after the producer filed a claim for
indemnity, the producer may refund the total amount of the indemnity and
receive the other program benefit. Farm ownership and operating loans
may be obtained from USDA in addition to crop insurance indemnities.
(3) Catastrophic risk protection may, on a commodity-by-commodity
basis, be elected on an individual yield and loss basis, or, where
offered, may be elected on an area yield and loss basis.
(4) 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 shareholders 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:
(i) The linkage requirements will be satisfied for each shareholder
of the crop; and
(ii) The producer insuring the crop will:
(A) 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;
(B) 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);
(C) Be responsible to pay one administrative fee for all the
producers within the county;
(D) Fulfill all requirements under the crop insurance contract; and
(E) Receive any indemnity payment under his or her social security
number or employer identification number and distribute the indemnity
payments to the other person sharing in the crop.
(5) 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:
(i) All landowners 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;
[[Page 57]]
(ii) All landowners must have an undivided interest in the insurable
acreage;
(iii) None of the landowners may hold any share in other acreage for
which they are required to obtain at least catastrophic coverage;
(iv) The total cumulative liability under the Catastrophic Risk
Protection Endorsement for all landowners must be $2,500 or less;
(v) The landowner insuring the crop will:
(A) 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;
(B) Be responsible to pay one administrative fee for all the
producers within the county;
(C) Fulfill all requirements under the insurance contract; and
(D) Receive any indemnity payment under the landowner's social
security number or employer identification number and distribute the
indemnity payments to the other persons sharing in the crop.
(E) Limited and additional coverage. (1) A producer who is eligible
to receive an indemnity under a limited or an additional coverage plan
of insurance and who also is eligible to receive benefits for the same
loss under any other USDA program may receive benefits under both
programs, unless specifically limited by the crop insurance contract or
by law. However, the total amount received from all such sources may not
exceed the amount of the actual loss sustained by the insured. The total
amount of the actual loss is the difference between the fair market
value of the insured commodity before and after the loss, based upon the
producer's production records and the highest price election or amount
of insurance available for the applicable crop. FSA will determine and
pay the additional amount due the producer for any applicable USDA
program, after first considering the amount of any crop insurance
indemnity. Farm ownership and operating loans may be obtained from the
USDA in addition to crop insurance indemnities.
(2) Limited or additional coverage may, on a commodity-by-commodity
basis, be elected on an individual yield and loss basis, or, where
offered, on an area yield and loss basis.
(3) Hail and fire coverage may be excluded from the covered causes
of loss for a crop policy only if additional coverage is elected.
Sec. 400.656 Administrative fees and waivers.
(a) Catastrophic risk protection and limited coverage. (1) The
producer must pay an administrative fee each year of fifty dollars
($50.00) per crop per county, not to exceed two hundred dollars
($200.00) per county, and six hundred dollars ($600.00) for all counties
in which the producer has elected to obtain catastrophic or limited
coverage.
(2) The producer must pay this administrative fee for catastrophic
coverage at the time of application for the first year, and by the
acreage reporting date for all subsequent years that crop insurance
coverage is in effect.
(3) The administrative fee for limited coverage must be paid no
later than the time that premium is due.
(4) Except for the initial application year of a crop, payment of an
administrative fee will not be required for a crop if the insured files
a bona fide zero acreage report for the crop on or before the acreage
reporting date. Any producer who falsely files a zero acreage report may
be subject to administrative and criminal sanctions.
(5) For Catastrophic coverage, if the administrative fee is not paid
when due, the crop insurance contract will terminate effective at the
beginning of the crop year for which the administrative fee was not
paid. Persons failing to pay the administrative fee, and all persons
with an insurable interest in the crop under the same contract, may not
be eligible for certain other USDA program benefits as set out in
Sec. 400.657 and all such benefits already received for the crop year
must be refunded. If a producer fails to pay the administrative fee when
due, the execution of a waiver of any eligibility for emergency crop
loss assistance in connection with the crop will not be effective for
any crop year in which payment was not made.
(6) For limited coverage, persons failing to pay the administrative
fee by
[[Page 58]]
the due date, and all persons with an insurable interest in the crop
under the same contract, will not be eligible for certain other USDA
program benefits as set out in Sec. 400.657 and all such benefits
already received for the crop year must be refunded. Since insurance
coverage was in effect throughout the insurance period, the producer
will be required to pay both the administrative fee and the premium for
that crop year in accordance with provisions regarding any amounts due
us contained in the applicable crop policy. If a producer fails to pay
the administrative fee when due, the execution of a waiver of any
eligibility for emergency crop loss assistance in connection with the
crop will not be effective for any crop year for which payment was not
made.
(7) The administrative fee may not be waived unless the insured
qualifies as a limited resource farmer.
(8) The administrative fee will be refunded if the insured has
previously obtained catastrophic risk protection or limited coverage for
the crop year, paid the administrative fee, and subsequently purchased
additional coverage for that same crop in the same county on or before
the sales closing date. Administrative fees will not be refunded if,
after the purchase of the additional coverage, the producer still has
four or more crops insured in the county, or four or more crops insured
in each of three or more counties, at the catastrophic or limited
coverage level.
(9) The administrative fee will not be refunded for the year of
application even if the insured does not plant the crop for that year.
(10) For limited coverage, the administrative fee is in addition to
the amount of premium owed by the person.
(b) Additional coverage. (1) If additional coverage is elected, the
insured must pay, in addition to the premium, an administrative fee of
ten dollars ($10) per crop, per county, for the year of application and
each subsequent year in which crop insurance coverage remains in effect.
The administrative fee must be paid no later than the time that premium
is due.
(2) Persons failing to pay the administrative fee by the due date,
and all persons with an insurable interest in the crop under the same
contract, will not be eligible for certain other USDA program benefits
as set out in Sec. 400.657, and all such benefits already received for
the crop year must be refunded. Since insurance coverage was in effect
throughout the insurance period, the producer will be required to pay
both the administrative fee and the premium for that crop year in
accordance with provisions regarding any amounts due us contained in the
applicable crop policy. If a producer fails to pay the administrative
fee when due, the execution of a waiver of any eligibility for emergency
crop loss assistance in connection with the crop will not be effective
for any crop year for which payment was not made.
(3) Payment of an administrative fee will not be required if the
insured files a bona fide zero acreage report on or before the acreage
reporting date for the crop. Any producer who falsely files a zero
acreage report may be subject to criminal and administrative sanctions.
(4) The administrative fee for additional coverage is not
refundable, is not subject to any limits, and may not be waived.
(c) When obtaining catastrophic risk protection, limited, or
additional coverage, a producer must provide information regarding crop
insurance coverage on any crop previously obtained at any other local
FSA office or from an approved insurance provider, including the date
such insurance was obtained and the amount paid in administrative fees.
If the producer paid more than the maximum allowable amount in
administrative fees, the producer will receive a refund of the excess
fees paid from the local FSA office or from the approved insurance
provider that last collected such fees.
Sec. 400.657 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
[[Page 59]]
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.
Sec. 400.658 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:
(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.
Sec. 400.659 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.
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
[[Page 60]]
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 have arisen from an
overpayment, premium non-payment, interest, penalties, or other causes
but does not include non-payment of CAT coverage administrative fees.
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
[[Page 61]]
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.
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 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.
[[Page 62]]
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 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
[[Page 63]]
(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 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.
[[Page 64]]
PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE 1988 AND SUBSEQUENT 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.
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
[[Page 65]]
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 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
[[Page 66]]
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 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.
[[Page 67]]
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;
(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.
[[Page 68]]
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 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,
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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 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.
[[Page 70]]
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:
(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
[[Page 71]]
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 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.
[[Page 72]]
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).
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
[[Page 73]]
(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).
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.
[[Page 74]]
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
(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.
[[Page 75]]
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:
(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
[[Page 76]]
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.
(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
[[Page 77]]
(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 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
[[Page 78]]
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
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;
[[Page 79]]
(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;
(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.
[[Page 80]]
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 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
[[Page 81]]
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.
(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
[[Page 82]]
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 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
[[Page 83]]
(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_________________________________________________________
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;
[[Page 84]]
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
(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
[[Page 85]]
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:
------------------------------------------------------------------------
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
[[Page 86]]
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
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
[[Page 87]]
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).
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.
[[Page 88]]
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
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
[[Page 89]]
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
(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
[[Page 90]]
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______________________________________________________________
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
[[Page 91]]
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 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:
[[Page 92]]
(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 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
[[Page 93]]
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
(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.
[[Page 94]]
(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:
(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)
[[Page 95]]
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
(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
[[Page 96]]
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;
(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.
[[Page 97]]
(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.
(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.
[[Page 98]]
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.
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]
[[Page 99]]
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;
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
[[Page 100]]
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.
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.
[[Page 101]]
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 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,
[[Page 102]]
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 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
[[Page 103]]
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:
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.
[[Page 104]]
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.
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
[[Page 105]]
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 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
[[Page 106]]
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
(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
[[Page 107]]
(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.
(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.
[[Page 108]]
(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;
(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.
[[Page 109]]
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;
(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.
[[Page 110]]
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;
(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
[[Page 111]]
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 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
[[Page 112]]
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.
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.
[[Page 113]]
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.
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
[[Page 114]]
(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.
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:
[[Page 115]]
(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:
(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
[[Page 116]]
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 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.
[[Page 117]]
(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 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
[[Page 118]]
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;
(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
[[Page 119]]
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 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.
[[Page 120]]
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), 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.
[[Page 121]]
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.''
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
[[Page 122]]
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) 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
[[Page 123]]
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).
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
[[Page 124]]
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.
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;
[[Page 125]]
(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:
------------------------------------------------------------------------
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
[[Page 126]]
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 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
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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 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.
[[Page 128]]
(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 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
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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 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;
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(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.
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:
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(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.
(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
[[Page 132]]
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 and subsequent 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;
(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.
[[Page 133]]
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.
(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
[[Page 134]]
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;
(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]
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,
[[Page 135]]
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
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:
[[Page 136]]
(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 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
[[Page 137]]
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 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.
[[Page 138]]
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:
(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
[[Page 139]]
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:
(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.
[[Page 140]]
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
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.
[[Page 141]]
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 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.
[[Page 142]]
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 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 and subsequent 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
[[Page 143]]
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;
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
[[Page 144]]
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)).
(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
[[Page 145]]
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]
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;
(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
[[Page 146]]
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 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
[[Page 147]]
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;
(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.
[[Page 148]]
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 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
[[Page 149]]
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:
(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.
[[Page 150]]
(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.
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.
[[Page 151]]
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.
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
[[Page 152]]
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.
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.
[[Page 153]]
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 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.
[[Page 154]]
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____________
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:
[[Page 155]]
(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.
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).
[[Page 156]]
(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 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
[[Page 157]]
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.
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;
[[Page 158]]
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 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.
[[Page 159]]
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.
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;
[[Page 160]]
(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.
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.
[[Page 161]]
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 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.
[[Page 162]]
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 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
[[Page 163]]
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 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.
[[Page 164]]
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;
(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.
[[Page 165]]
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
(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%,
[[Page 166]]
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:
(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\
[[Page 167]]
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 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
[[Page 168]]
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;
(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:
[[Page 169]]
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 1997 AND SUBSEQUENT CROP 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 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 1997
and succeeding crop 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
Additional coverage. Plans of crop insurance providing a level of
coverage equal to or greater than sixty-five percent (65%) of your
approved yield indemnified at one hundred percent (100%) of the expected
market price, or comparable coverage as established by FCIC.
Administrative fee. The $50 fee the producer must pay on a per crop
and county basis with a maximum of $200 per producer per county and $600
per producer for catastrophic and limited coverage on an annual basis.
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
[[Page 170]]
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 meets the requirements for a person to qualify for certain
other USDA program benefits (see sections 4 and 12).
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.
Limited coverage. Plans of insurance offering coverage that is equal
to or greater than fifty percent (50%) of your 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 your
approved yield indemnified at one hundred percent (100%) of the expected
market price, or a comparable coverage.
Limited resource farmer. A producer or operator of a farm, with an
annual gross income of $20,000 or less derived from all sources of
revenue, including income from spouse's or other members of the
household, for each of the prior two years. Notwithstanding the previous
sentence, a producer on a farm or farms of less than 25 acres aggregated
for all crops, where a majority of the producer's gross income is
derived from such farm or farms, but the producer's gross income from
farming operations does not exceed $20,000, will be considered a limited
resource farmer.
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.
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.
(d) In addition to the provisions specified in the applicable crop
policy, this Endorsement will terminate for the crop year for which:
(1) You fail to pay the applicable administrative fee, as specified
in section 6;
(2) You elect to purchase limited or additional coverage for the
insured crop; or
(3) The applicable crop policy, to which this endorsement attaches,
automatically terminates (i.e., the policy must be renewed each year).
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.
[[Page 171]]
(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 premium subsidy equal to the premium established for the coverage
provided under this endorsement.
(b) In return for catastrophic risk protection, you must pay an
administrative fee as follows:
(1) To the insurance provider at the time of application (the fee
will not be refunded if you file a zero acreage report the initial crop
year for which the application is accepted);
(2) Annually, on or before the acreage reporting date for the
applicable crop for any subsequent crop years that catastrophic risk
protection is in effect (The fee will not be required if you file a
bonafide zero acreage report on or before the acreage reporting date,
however, filing a false zero acreage report could subject you to
criminal and administrative sanction); and
(3) Equal to $50 per crop per county, subject to a maximum of two
hundred dollars ($200) per county and six hundred dollars ($600) for all
counties in which you insure crops. In calculating the maximum amount of
administrative fees, the fees paid for both catastrophic risk protection
and limited coverage will be combined.
(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
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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) The administrative fee will be refunded if, after applying for
catastrophic risk protection and paying the administrative fee, you
elect to purchase additional coverage for such crop in the same county
on or before the sales closing date. Administrative fees will not be
refunded, however if, after the purchase of the additional coverage, you
still have 4 or more crops insured in the county, or 4 or more crops
insured in each of three or more counties, at the CAT or limited
coverage level.
(f) If the administrative fee is not paid when due, the crop
insurance contract will terminate effective at the beginning of the crop
year for which the administrative fee was not paid. You 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. If you fail to pay the administrative fee when due, the
execution of a waiver of any eligibility for emergency crop loss
assistance in connection with the crop will not be effective for any
crop year in which payment was not made.
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
(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.
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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. Farm ownership and
operating loans, may be obtained from the USDA in addition to crop
insurance indemnities.
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 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
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(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.
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 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
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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).
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
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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 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;
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(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:
(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
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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.
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
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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.
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.
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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--Table of Contents
Subpart--Regulations for the 1986 and Succeeding Crop Years
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, 1516.
Source: 50 FR 43655, Oct. 29, 1985, unless otherwise noted.
Subpart--Regulations for the 1986 and Succeeding Crop Years
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,
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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.