[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-23553] [[Page Unknown]] [Federal Register: September 23, 1994] VOL. 59, NO. 184 Friday, September 23, 1994 DEPARTMENT OF AGRICULTURE Federal Crop Insurance Corporation 7 CFR Part 457 Common Crop Insurance Regulations; Sunflower Seed Crop Insurance Provisions AGENCY: Federal Crop Insurance Corporation, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes provisions for sunflower seed crop insurance. These proposed provisions are contained in an endorsement to the Common Crop Insurance Policy which contains standard terms and conditions common to most crops. This action will result in automatic coverage for late and prevented planting as well as other minor policy changes to better meet the needs of the insured. DATES: Written comments, data, and opinions on this proposed rule must be submitted no later than October 24, 1994, to be sure of consideration. ADDRESSES: Written comments on this proposed rule should be sent to Mari Dunleavy, Regulatory and Procedural Development Staff, Federal Crop Insurance Corporation, USDA, Washington, DC 20250. Hand or messenger delivery may be made to Suite 500, 2101 L Street NW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Mari L. Dunleavy at address listed above. Telephone (202) 254-8314. SUPPLEMENTARY INFORMATION: This action has been reviewed under USDA procedures established by Executive Order 12866 and Departmental Regulation 1512-1. This action constitutes a review as to the need, currency, clarity, and effectiveness of these regulations under those procedures. The sunset review date established for these regulations is February 1, 1994. This rule has been determined to be ``not-significant'' for purposes of Executive Order 12866, and therefore has not been reviewed by the Office of Management and Budget (OMB). In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.), the information collection or record-keeping requirements included in this proposed rule are found in 7 CFR 400 subpart H. It has been determined under section 6(a) of Executive Order 12612, Federalism, that this proposed rule does not have sufficient federalism implication to warrant the preparation of a Federalism Assessment. The policies and procedures contained in this rule will not have substantial direct effects on states or their political subdivisions, or on the distribution of power and responsibilities among the various levels of government. This action will not have a significant impact on a substantial number of small businesses. This action reduces the paperwork burden on the insured farmer, the reinsured company, or the sales and service contractor. Therefore, this action is determined to be exempt from the provisions of the Regulatory Flexibility Act and no Regulatory Flexibility Analysis was prepared. This program is listed in the Catalog of Federal Domestic Assistance under No. 10.450. This program is not subject to the provisions of Executive Order 12372 which requires intergovernmental consultation with State and local officials. See the Notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115, June 24, 1983. The Office of the General Counsel has determined that these regulations meet the applicable standards provided in subsections 2(a) and 2(b)(2) of Executive Order 12778. The provisions of this rule will preempt state and local laws to the extent such state and local laws are inconsistent herewith. The administrative appeal provisions located at 7 CFR part 400, subpart J must be exhausted before judicial action may be brought. This action is not expected to have any significant impact on the quality of the human environment, health, and safety. Therefore, neither an Environmental Assessment nor an Environmental Impact Statement is needed. Upon publication of 7 CFR 457.108 as a final rule, the provisions for insuring sunflower seed contained therein will supersede the current provisions contained in 7 CFR 401.124. The provisions of 7 CFR 401.124 will be amended to restrict their affect to the crop year previous to the effective date of this rule. This rule makes minor editorial and format changes to improve its compatibility with the Common Crop Insurance Policy. In addition, FCIC is proposing other changes in the provisions for insuring sunflower seed as follows: 1. Section 4--The contract change date has been changed to November 30 to maintain an adequate time period between this date and the revised cancellation date (see summary of changes item 2). 2. Section 5--The cancellation and termination dates have been changed to March 15. This change is intended to reduce the probability that insureds may make the determination as to whether to buy insurance on the probability that a loss may or has already occurred. 3. Subsection 7.(a)--Provides that any acreage is uninsurable that does not meet the rotation requirements outlined in the Special Provisions. 4. Subsection 7.(b)--Provides that any acreage damaged prior to the final planting date must be replanted unless replanting is not practical. 5. Subsection 10.(c)--Allows replanting payments to be made to an insured in excess of their insured share. This excess payment may be made if an agreement exists between the shareholders that: 1) requires one person to incur the entire cost of replanting; or 2) gives the right to any replanting payment to the single insured entity who incurred the cost of replanting. 6. Subsection 10.(d)--Provides that liability for a unit is reduced by the amount of any replanting payment attributable to the insured's share if sunflowers are replanted using a practice that was originally uninsurable. The current sunflower provisions do not address this issue. This addition is consistent with the replant provisions under the same circumstances for other crops. 7. Paragraphs 12.(d)(1) and (2)--Provide for separate moisture and quality adjustment. Production will be eligible for excess moisture adjustment, and for quality adjustment regardless of moisture content. The value of damaged production will be determined based on grading factors other than moisture content. 8. Section 13--Provides protection for acreage planted within 25 days after the final planting date, and for acreage that cannot be planted due to any insurable causes of loss. If the insured is prevented from planting by the final planting date, or intends to plant within the late planting period and is prevented from doing so, insurance protection is provided at fifty percent (50%) of the production guarantee for timely planted acreage. List of Subjects in 7 CFR Part 457 Crop insurance, Sunflower seed. Proposed Rule Pursuant to the authority contained in the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance Corporation hereby proposes to amend the Common Crop Insurance Regulations, (7 CFR Part 457) as follows: 1. The authority citation for 7 CFR Part 457 continues to read as follows: Authority: 7 U.S.C. 1506, 1516. 2. 7 CFR Part 457 is amended by adding a new section, 457.108 Sunflower Seed Crop Insurance Provisions, to read as follows: PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 1994 AND SUBSEQUENT CONTRACT YEARS * * * * * Sec. 457.108 Sunflower Seed Crop Insurance Provisions. The Sunflower Seed Crop Insurance Provisions for the 1995 and succeeding crop years are as follows: UNITED STATES DEPARTMENT OF AGRICULTURE Federal Corp Insurance Corporation Sunflower Seed Crop Provisions If a conflict exists among the Common Crop Insurance Policy (Sec. 457.8), these crop provisions, and the Special Provisions, the Special Provisions will control these crop provisions and the common policy and these crop provisions will control the common policy. 1. Definitions (a) Days--Calendar days. (b) Final planting date--The date contained in the Special Provisions for the insured crop by which the crop must initially be planted in order to be insured for the full production guarantee. (c) Good farming practices--The cultural practices generally in use in the county for the crop to make normal progress toward maturity and produce at least the yield used to determine the production guarantee and are those recognized by the Cooperative extension Service as compatible with agronomic and weather conditions in the area. (d) Harvest--Combining or threshing the sunflowers for seed. (e) Interplanted--Acreage on which two or more crops are planted in a manner that does not permit separate agronomic maintenance or harvest of the insured crop. (f) Irrigated practice--A method or 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 acreage planted to the insured crop. (g) Late planted--Acreage planted to the insured crop during the late planting period. (h) Late planting period--The period that begins the day after the final planting date for the insured crop and ends twenty-five (25) days after the final planting date. (i) Local market price--The cash seed price per pound for oil type sunflower seed grading U.S. No. 2, or non-oil type sunflower seed with a test weight of 22 pounds per bushel and five percent (5%) kernel damage, offered by buyers in the area in which you normally market the sunflower seed. The local market price for oil type sunflower seed will reflect the maximum limits of quality deficiencies allowable for the U.S. No. 2 grade of sunflower seed. Factors not associated with grading of sunflower seed under the Official United States Standards for Grain including, but not limited to, oil or moisture content will not be considered. (j) Planted acreage--Land in which seed has been placed by a machine appropriate for the insured crop and planting method, at the correct depth, into a seedbed which has been properly prepared for the planting method and production practice. Sunflower seed must initially be planted in rows far enough apart to permit cultivation. Planting in any other manner will be considered as a failure to follow recognized good farming practices and any loss of production will not be insured, unless otherwise provided by the Special Provisions or by written agreement. (k) Practical to replant--In lieu of Subsection 1.(ff) of the Common Crop Insurance Policy (Sec. 457.8), practical to replant is defined as our determination, after loss or damage to the insured crop, based on factors, including but not limited to moisture availability, condition of the field and time to crop maturity, that replanting to the insured crop will allow the crop to attain maturity prior to the calendar date for the end of the insurance period. It will not be considered practical to replant after the end of the late planting period unless replanting is generally occurring in the area. (l) Prevented planting--Inability to plant the insured crop with proper equipment by: (1) The final planting date designated in the Special Provisions for the insured crop in the county; or (2) 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 most producers in the surrounding area from planting due to similar insurable causes. The insured cause of prevented planting must occur between the sales closing date and the final planting date for the insured crop in the county or within the late planting period. (m) Production guarantee--The number of pounds determined by multiplying the approved yield per acre by the coverage level percentage you elect. (n) Replanting--Performing the cultural practices necessary to replace the sunflower seed and then replacing the sunflower seed in the insured acreage with the expectation of growing a successful crop. (o) Timely planted--Planted on or before the final planting date designated in the Special Provisions for the insured crop in the county. (p) Written agreement--Designated terms of this policy may be altered by written agreement. Each agreement must be applied for by the insured in writing no later than the sales closing date and is valid for one year only. If not specifically renewed the following year, continuous insurance will be in accordance with the printed policy. All variable terms including, but not limited to, crop variety, guarantee, premium rate and price election must be contained in the written agreement. In specific instances, a written agreement may be applied for after the sales closing date, and approved if, after a physical inspection of the acreage, there is a determination that the crop has the expectancy of making at least the guaranteed yield. However, no prevented planting liability will be established as a result of any request submitted after the sales closing date. All applications for written agreements as submitted by the insured must contain all variable terms of the contract between the company and the insured that will be in effect if the written agreement is disapproved. 2. Unit Division Unless limited by the Special Provisions, a unit as defined in subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8), may be divided into optional units if, for each optional unit you meet all the conditions of this section or if a written agreement to such division exists. All optional units must be reflected on the acreage report for each crop year. (a) You must have records, which can be independently verified, of planted acreage and production for each optional unit for at least the last crop year used to determine your production guarantee. (b) You must plant the crop in a manner that results in a clear and discernable break in the planting pattern at the boundaries of each optional unit. (c) You must have records of measurement of stored or marketed production from each optional unit maintained in such a manner that permits us to verify the production from each optional unit or the production from each unit must be kept separate until after loss adjustment under the policy is completed. (d) Each optional unit must meet one or more of the following criteria as applicable: (1) Optional Units by Section, Section Equivalent, or ASCS Farm Serial Number: Optional units may be established if each optional unit is located in a separate legally identified Section. In the absence of Sections, we may consider parcels of land legally identified by other methods of measure including, but not limited to: Spanish grants, railroad surveys, leagues, labors, or Virginia Military Lands as the equivalent of Sections for unit purposes. In areas which have not been surveyed using the systems identified above, or another system approved by us, or in areas where such systems exist but boundaries are not readily discernable, each optional unit must be located in a separate farm identified by a single ASCS Farm Serial Number. (2) Optional Units on Acreage Including Both Irrigated and Non- Irrigated Practices: In addition to or instead of establishing optional units by Section, section equivalent or ASCS Farm Serial Number, optional units may be based on irrigated acreage or non-irrigated acreage if both are located in the same Section, section equivalent or ASCS Farm Serial Number. The irrigated acreage may not extend beyond the point at which your irrigation system can deliver the quantity of water needed to produce the yield on which your guarantee is based and you may not continue into non-irrigated acreage in the same rows or planting pattern. You must plant, cultivate, fertilize, or otherwise care for the irrigated acreage in accordance with recognized good irrigated farming practices. Basic units may not be divided into optional units on any basis including, but not limited to, production practice, type, variety, and planting period other than as described under this section. If you do not comply fully with these provisions we will combine all optional units which are not in compliance with these provisions into the basic unit from which they were formed. We may combine the optional units at any time we discover that you have failed to comply with these provisions. If failure to comply with these provisions is determined to be inadvertent, and the optional units are combined, that portion of the premium paid for the purpose of electing optional units will be refunded to you pro rata for the units combined. 3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities In addition to the requirements of section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Common Crop Insurance Policy (Sec. 457.8), you may select only one price election for all the sunflower seed in the county insured under this policy. However, if the Special Provisions provide different price elections by type, you may select one price election for each sunflower seed type designated in the Special Provisions. 4. Contract Changes The contract change date is November 30 preceding the cancellation date (see the provisions of section 4 (Contract Changes) of the Common Crop Insurance Policy (Sec. 457.8)). 5. Cancellation and Termination Dates In accordance with subsection 2.(f) of the Common Crop Insurance Policy (Sec. 457.8), the cancellation and termination dates are March 15. 6. Insured Crop In accordance with section 8 (Insured Crop) of the Common Crop Insurance Policy (Sec. 457.8), the crop insured will be all the oil and non-oil type sunflower seed in the county for which a premium rate is provided by the actuarial table: (a) In which you have a share; (b) That are planted for harvest as sunflower seed; and (c) That are not (unless a written agreement allows otherwise): (1) Interplanted with another crop; or (2) Planted into an established grass or legume. 7. Insurable Acreage In addition to the provisions of section 9 (Insurable Acreage) of the Common Crop Insurance Policy (Sec. 457.8): (a) We will not insure any acreage which does not meet the rotation requirements shown in the Special Provisions; and (b) Any acreage of the insured crop damaged before the final planting date, to the extent that the remaining stand will not produce at least ninety percent (90%) of the production guarantee, must be replanted unless we agree that replanting is not practical (see subsection 1.(k)). 8. Insurance Period In accordance with the provisions of section 11 (Insurance Period) of the Common Crop Insurance Policy (Sec. 457.8), the calendar date for the end of the insurance period is November 30, immediately following planting. 9. Causes of Loss In accordance with the provisions of section 12 (Causes of Loss) of the Common Crop Insurance Policy (Sec. 457.8), insurance is provided only against the following causes of loss which occur within the insurance period: (a) Adverse weather conditions; (b) Fire; (c) Insects, but not damage due to insufficient or improper application of pest control measures; (d) Plant disease, but not damage due to insufficient or improper application of disease control measures; (e) Wildlife; (f) Earthquake; (g) Volcanic eruption; or (h) Failure of the irrigation water supply, if applicable, due to an unavoidable cause of loss occurring within the insurance period. 10. Replanting Payments (a) In accordance with section 13 (Replanting Payment) of the Common Crop Insurance Policy (Sec. 457.8), a replanting payment for sunflower seed is allowed if the sunflowers are damaged by an insurable cause of loss to the extent that the remaining stand will not produce at least ninety percent (90%) of the production guarantee for the acreage and it is practical to replant (see subsection 1.(k)). (b) The maximum amount of the replanting payment per acre will be the lesser of twenty percent (20%) of the production guarantee or 175 (pounds of seed), multiplied by your price election, multiplied by your insured share or the share determined in 10.(c), if applicable. (c) When more than one person insures the same crop on a share basis, a replanting payment based on the total shares insured by us may be made to the insured person who incurs the total cost of replanting. Payment will be made in this manner only if an agreement exists between the insured persons which: (1) Requires one person to incur the entire cost of replanting; or (2) Gives the right to all replanting payments to one person. (d) When sunflower seed is replanted using a practice that is uninsurable as an original planting, the liability for the unit will be reduced by the amount of the replanting payment which is attributable to your share. The premium amount will not be reduced. 11. Duties In The Event of Damage or Loss In accordance with the requirements of section 14 (Duties in the Event of Damage or Loss) of the Common Crop Insurance Policy (Sec. 457.8), if you initially discover damage to any insured crop within 15 days of, or during harvest, you must leave representative samples of the unharvested crop for our inspection. The samples must be at least 10 feet wide and extend the entire length of each field in the unit, and must not be harvested or destroyed until the earlier of our inspection or 15 days after harvest of the balance of the unit is completed. 12. Settlement of Claim (a) We will determine your loss on a unit basis. In the event you are unable to provide records of production: (1) For any optional unit, we will combine all optional units for which acceptable records of production were not provided; or (2) For any basic unit, we will allocate any commingled production to such units in proportion to our liability on the harvested acreage for each unit. (b) In the event of loss or damage covered by this policy, we will settle your claim on any unit by: (1) Multiplying the insured acreage by the production guarantee; (2) Subtracting from this the total production to count; (3) Multiplying the remainder by your price election; and (4) Multiplying this result by your share. (c) The total production (pounds) to count from all insurable acreage on the unit will include: (1) All appraised production as follows: (i) Not less than the production guarantee for acreage: (A) That is abandoned; (B) Put to another use without our consent; (C) Damaged solely by uninsured causes; or (D) For which you fail to provide records of production that are acceptable to us; (ii) Production lost due to uninsured causes; (iii) Unharvested production (mature unharvested production may be adjusted for quality deficiencies and excess moisture in accordance with subsection 12(d)); and (iv) Potential production on insured acreage you want to put to another use or you wish to abandon and no longer care for, if you and we agree on the appraised amount of production. Upon such agreement, the insurance period for that acreage will end if you put the acreage to another use or abandon the crop. If agreement on the appraised amount of production is not reached: (A) If you do not elect to continue to care for the crop, we may give you consent to put the acreage to another use if you agree to leave intact, and provide sufficient care for, representative samples of the crop in locations acceptable to us. (The amount of production to count for such acreage will be based on the harvested production or appraisals from the samples at the time harvest should have occurred. If you do not leave the required samples intact, or you fail to provide sufficient care for the samples, our appraisal made prior to giving you consent to put the acreage to another use will be used to determine the amount of production to count); or (B) If you elect to continue to care for the crop, the amount of production to count for the acreage will be the harvested production, or our reappraisal if additional damage occurs and the crop is not harvested; and (2) All harvested production from the insurable acreage. (d) Mature sunflower seed production may be adjusted for excess moisture and quality deficiencies. If moisture adjustment is applicable, it will be made prior to any adjustment for quality. (1) Production will be reduced by 0.12 percent for each 0.1 percentage point of moisture in excess of ten percent (10%). We may obtain samples of the production to determine the moisture content. (2) Production will be eligible for quality adjustment if: (i) Deficiencies in quality result in: (A) Oil type sunflower seed not meeting the grade requirements for U.S. No. 2 (grades U.S. sample grade) because of test weight, kernel damage (excluding heat damage), or a musty, sour or commercially objectionable foreign odor, or distinctly low quality; or (B) Non-oil type sunflower seed having a test weight below 22 pounds per bushel or kernel damage (excluding heat damage) in excess of five percent (5%) or a musty, sour or commercially objectionable foreign odor, or distinctly low quality; or (ii) Substances or conditions are present that are identified by the Food and Drug Administration or other public health organizations of the United States as being injurious to human or animal health. (3) Quality will be a factor in determining your loss only if: (i) The deficiencies, substances, or conditions resulted from a cause of loss against which insurance is provided under these crop provisions; (ii) The deficiencies, substances, or conditions result in a net price for the damaged sunflower seed that is less than the local market price; (iii) All determinations of these deficiencies, substances, or conditions are made using samples of the production obtained by us or by a disinterested third party approved by us; and (iv) The samples are analyzed by a grader licensed under the authority of the United States Grain Standards Act or the United States Warehouse Act with regard to deficiencies in quality, or by a laboratory approved by us with regard to substances or conditions injurious to human or animal health. (Test weight for quality adjustment purposes may be determined by our loss adjuster.) (4) Sunflower seed production that is eligible for quality adjustment, as specified in paragraphs 12.(d)(2) and (3), will be reduced as follows: (i) The market price of the qualifying damaged production and the local market price will be determined on the earlier of the date such quality adjusted production is sold or the date of final inspection for the unit. The price for the qualifying damaged production will be the market price for the local area to the extent feasible. Discounts used to establish the net price of the damaged production will be limited to those which are usual, customary, and reasonable. The price will not be reduced for: (A) Moisture content; (B) Damage due to uninsured causes; or (C) Drying, handling, processing, or any other costs associated with normal harvesting, handling, and marketing of the sunflower seed; except, if the price of the damaged production can be increased by conditioning, we may reduce the price of the production after it has been conditioned by the cost of conditioning but not lower than the value of the production before conditioning, (We may obtain prices from any buyer of our choice. If we obtain prices from one or more buyers located outside your local market area, we will reduce such prices by the additional costs required to deliver the sunflower seed to those buyers); (ii) The value of the damaged or conditioned production will be divided by the local market price to determine the quality adjustment factor; and (iii) The number of pounds remaining after any reduction due to excessive moisture (the moisture-adjusted gross pounds (if appropriate)) of the damaged or conditioned production will then be multiplied by the quality adjustment factor to determine the net production to count. (e) Any production harvested from plants growing in the insured crop may be counted as production of the insured crop on a weight basis. 13. Late Planting and Prevented Planting (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the Common Crop Insurance Policy (Sec. 457.8), insurance will be provided for acreage planted to the insured crop during the late planting period (see subsection 13.(c)), and acreage you were prevented from planting (see subsection 13.(d)). These coverages provide reduced production guarantees. 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. If the amount of premium you are required to pay (gross premium less our subsidy) for late planted acreage or prevented planting acreage exceeds the liability on such acreage, coverage for those acres will not be provided (no premium will be due and no indemnity will be paid for such 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 seven (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 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 subsection 1.(1)). This notice must be given not later three (3) days after: (1) The final planting date for acreage you were prevented from planting by the final planting date if you have unplanted acreage that may be eligible for prevented planting coverage; and (2) The date you discover that planting will not be possible within the late planting period for any acreage that may be eligible for prevented planting coverage, if you were not prevented from planting such acreage by the final planting date but were prevented from planting such acreage during the late planting period. (c) Late Planting: (1) For sunflower 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 6 (Report of Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must report the dates the acreage is planted within the late planting period. (3) If planting of sunflower seed 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 Special Provisions for the insured crop; 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 sunflowers (see subsection 1.(1)), you may elect: (i) To plant sunflower seed during the late planting period, (The production guarantee for such acreage will be determined in accordance with paragraph 13.(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 will be fifty percent (50%) of the production guarantee for timely planted acres, (For example, if your production guarantee for timely planted acreage is 900 pounds per acre, your prevented planting production guarantee would be equivalent to 450 pounds per acre (900 pounds multiplied by 0.5)). This subparagraph 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 sunflower seed after the late planting period, (The production guarantee for such acreage will be fifty percent (50%) of the production guarantee for timely planted acres, (For example, if your production guarantee for timely planted acreage is 900 pounds per acre, your prevented planting production guarantee would be equivalent to 450 pounds per acre (900 pounds multiplied by 0.5)). Production to count for such acreage will be determined in accordance with subsections 12.(c) through (e). (2) In addition to the provisions of section 11 (Insurance Period) of the Common Crop Insurance Policy (Sec. 457.8), the insurance period for prevented planting coverage begins on the sales closing date contained in the Special Provisions for the insured crop in the county. (3) The acreage to which prevented planting coverage applies will be limited as follows: (i) If you participate in any program administered by the United States Department of Agriculture for the crop year which limits the number of acres that may be planted, prevented planting acreage will not exceed the ASCS base acreage for the insured crop, reduced by any acreage reduction applicable to the farm under such program. (ii) If you do not participate in any program administered by the United States Department of Agriculture which limits the number of acres that may be planted, unless a written agreement exists to the contrary, eligible acreage will not exceed the greater of: (A) The ASCS base acreage for the insured crop; if applicable; (B) The number of acres planted to sunflower seed 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 (C) One hundred percent (100%) of the simple average of the number of acres planted to sunflower seed during the crop years that were used to determine your yield. (iii) 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. (iv) 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 a written agreement exists designating such premium rate; (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 sunflower seed 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; (v) 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 sunflower 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 sunflower seed on one optional unit and 40 acres of sunflower seed on the second optional unit, your prevented planting eligible acreage would be reduced to zero, (100 acres eligible for prevented planting coverage less 100 acres planted equals zero)). If you report more sunflower 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 sunflowers in the crop year. (5) In accordance with the provisions for section 6 (Report of Acreage) of the Common Crop Insurance Policy (Sec. 457.8), 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 is not eligible will be deleted from prevented planting coverage. Done in Washington, D.C., on September 15, 1994. Kenneth D. Ackerman, Manager, Federal Crop Insurance Corporation. [FR Doc. 94-23553 Filed 9-22-94; 8:45 am] BILLING CODE 3410-08-M