[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.

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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