[Federal Register Volume 62, Number 60 (Friday, March 28, 1997)]
[Rules and Regulations]
[Pages 14781-14786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7943]
[[Page 14781]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
7 CFR Parts 401 and 457
General Crop Insurance Regulations, Fresh Market Sweet Corn
Endorsement; and Common Crop Insurance Regulations, Fresh Market Sweet
Corn Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
specific crop provisions for the insurance of fresh market sweet corn.
The provisions will be used in conjunction with the Common Crop
Insurance Policy Basic Provisions, which contain standard terms and
conditions common to most crops. The intended effect of this action is
to provide policy changes to better meet the needs of the insured,
include the current Fresh Market Sweet Corn Endorsement under the
Common Crop Insurance Policy for ease of use and consistency of terms,
and to restrict the effect of the current Fresh Market Sweet Corn
Endorsement to the 1997 and prior crop years.
EFFECTIVE DATE: March 28, 1997.
FOR FURTHER INFORMATION CONTACT: Linda Williams, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, United States Department of
Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816)
926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order No. 12866, and,
therefore, this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Following publication of the proposed rule, the public was afforded
60 days to submit written comments on information collection
requirements previously approved by OMB under OMB control number 0563-
0003 through September 30, 1998. No public comments were received.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on states or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. Under
the current regulations, a producer is required to complete an
application and acreage report. If the crop is damaged or destroyed,
the insured is required to give notice of loss and provide the
necessary information to complete a claim for indemnity. This
regulation does not alter those requirements.
The amount of work required of the insurance companies delivering
and servicing these policies will not increase significantly from the
amount of work currently required. This rule does not have any greater
or lesser impact on the producer. Therefore, this action is determined
to be exempt from the provisions of the Regulatory Flexibility Act (5
U.S.C. 605), and no Regulatory Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372, which require intergovernmental consultation with state and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order No. 12988
The provisions of this rule will not have a retroactive effect
prior to the effective date. 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 published
at 7 CFR part 11 must be exhausted before any action for judicial
review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
On Friday, January 3, 1997, FCIC published a proposed rule making,
in the Federal Register at 62 FR 333-338 to add to the Common Crop
Insurance Regulations (7 CFR part 457) a new section, 7 CFR 457.129,
Fresh Market Sweet Corn Crop Insurance Provisions. The new provisions
will be effective for the 1998 and succeeding crop years. These
provisions will replace and supersede the current provisions for
insuring fresh market sweet corn found at 7 CFR 401.138 (Fresh Market
Sweet Corn Endorsement). This rule also amends Sec. 401.138 to limit
its effect to the 1997 and prior crop years. FCIC will later publish a
regulation to remove and reserve Sec. 401.138.
Following publication of the proposed rule, the public was afforded
30 days to submit written comments, data and opinions. A total of 21
comments were received from the crop insurance industry and FCIC
Regional Service Offices (RSO). The comments received, and FCIC's
responses, are as follows:
Comment: A representative of FCIC recommended adding carton to the
definition of crate. To expand fresh market sweet corn insurance, the
method of measuring production to count must be applicable to other
areas. The commenter stated cartons containing 48 to 52 ears were used
in the midwest.
Response: FCIC agrees that revising the unit of measure would allow
expansion of fresh market sweet corn crop insurance into areas that
utilize units of measure other than the standard crate. The provisions
have been amended to replace the term ``crate'' with the term
``container''. The definition of ``container'' specifies the unit of
measure and the number of pounds or number of ears of the insured crop
will be specified in the Special Provisions.
Comment: A representative of FCIC recommended adding to the
definition
[[Page 14782]]
of excess wind, ``or an occurrence at a time that prevents adequate
pollination''.
Response: FCIC agrees with the comment and has amended the
provision contained in section 1 accordingly.
Comment: One comment from the crop insurance industry recommended
clarifying the language in section 2(a) by stating ``Basic units, as
defined in section 1 (Definitions) of the Basic Provisions, will be
established by planting period.''
Response: FCIC agrees with the comment and has amended section 2(a)
to indicate a basic unit will be established by planting period.
However, the definition of ``unit'' is contained in the Basic Provision
and no change will be made in that portion of the provision.
Comment: One comment received from the crop insurance industry
stated that the references to land measurements such as leagues and
labors was unnecessary. These type of land measurement were not
applicable to the Southeast and crop insurance for fresh market sweet
corn is only available in the Southeast.
Response: Fresh market sweet corn insurance may be expanded into
other areas where such measurements are applicable. Therefore, no
change will be made.
Comment: The crop insurance industry questioned if it was necessary
to specify in section 3(c) that the CAT amount of insurance will be in
the Actuarial Table when all available amounts of insurance are
specified in section 3(a).
Response: FCIC agrees section 3(a) states the coverage levels and
amounts of insurance are contained in the Actuarial Table. As section
3(c) provides no additional statements or requirements, FCIC has
deleted this provision and renumbered the remaining provisions.
Comment: One comment from the crop insurance industry stated
section 3 contained a heading in the stage chart and a statement within
the chart was misleading. The chart heading suggested the percentages
represented coverage levels that the insured would select rather than
the amount of insurance that is selected by the insured and that the
chart statement ``until the acreage is harvested'' suggests there is a
stage after the final stage for after harvest. The commenter suggested
the chart heading should state. ``Percent in effect of your amount of
insurance.''
Response: FCIC believes the wording in the stage chart is clearly
stated. Therefore, no change will be made.
Comment: A representative of FCIC recommended the final stage
contained in Section 3(d) should be the harvested stage. The commenter
indicated they did not understand why the final stage would begin at
tasseling.
Response: Fresh market sweet corn insurance is structured to cover
most of the producer's pre-harvest costs in case of a crop failure. To
assure indemnities are paid based on the costs incurred at the time of
loss, the crop maturity stages and corresponding maximum dollar amount
of insurance represent the levels at which a producer has incurred the
pre-harvest cost. FCIC has determined that a producer has reached 100
percent of the pre-harvest costs when the sweet corn crop reaches
tasseling and, therefore, receives 100 percent of the per acre dollar
amount of insurance. FCIC believes the stage levels are representative
of the program objectives and no changes will be made.
Comment: A representative of FCIC recommended deleting from the
list of states with a contract change date of November 30, the specific
state names of Alabama and South Carolina. The provision already
specifies ``all other states''.
Response: FCIC agrees with the comment and has amended section 4
accordingly.
Comment: The crop insurance industry recommended a grammatical
change in section 7, to add a comma and hyphen in ``e.g., fall-planted
irrigated.''
Response: FCIC agrees with the comment and has amended the
provision in section 7 accordingly.
Comment: An FCIC representative recommended changing section
8(b)(3) to allow insurance on non-irrigated acreage. Production of
fresh market sweet corn on non-irrigated acreage is a recommended
farming practice in Iowa, Minnesota and Wisconsin.
Response: FCIC has amended the provision contained in section
8(b)(3) to state that the insured crop will be ``grown under an
irrigated practice, unless otherwise provided in the Special
Provisions'' to allow expansion into other areas as appropriate.
Comment: The crop insurance industry stated the provision in
section 9(a) that states we will insure newly cleared land or former
pasture land planted to fresh market sweet corn is new to the crop
provisions. The commenter questioned if a waiting period was required
before planting the insured crop on newly cleared or former pasture
land.
Response: To provide consistency among the fresh market vegetable
crops, FCIC incorporated provisions contained in other fresh market
crop endorsements and also clarified that former pasture land planted
to the insured crop is insurable. It is a recommended practice for the
fresh market vegetable crops to be planted on newly cleared and former
pasture land so no waiting period is required prior to planting the
insured crop.
Comment: The crop insurance industry questioned if the phrase
``coverage begins . . . the later of the date we accept your
application, or when the sweet corn is planted in each planting
period'' means that an application could be accepted after the sales
closing to have coverage for subsequent planting periods in the crop
year. If so, what is the purpose of having one sales closing date for
the crop?
Response: Section 10 of these provisions do not alter the
requirement contained in section 11 of the Basic Provisions, which
states the application must be submitted by the sales closing date. The
sales closing date corresponds to the earliest planting period so only
one application is filed for the crop year and covers all subsequent
planting periods. Since there are multiple planting periods in each
crop year, the date insurance attaches in each planting period must be
established. Provisions in section 10 simply clarify when insurance
will attach. Therefore, no change will be made.
Comment: Two comments from the crop insurance industry and two
comments from FCIC representatives recommended removing disease and
insect infestation as uninsured causes of loss. The commenters
suggested that disease and insects should be an insured cause of loss
if a producer exhausts all reasonable means to protect the crop. This
would provide coverage for new diseases and insects that cannot
presently be controlled by the chemicals that are available.
Response: FCIC agrees that coverage should be available for damage
due to disease and insect infestation for which no effective control
measure exists. Therefore, FCIC has amended the provisions contained in
section 11(b)(1) accordingly.
Comment: Two comments from the crop insurance industry recommended
raising the maximum amount of the replanting payment per acre. Both
commenters stated the maximum amount provided in the current policy is
not sufficient to cover actual costs.
Response: FCIC agrees there may be instances when replanting costs
exceed $65.00 per acre as provided in the current endorsement.
Therefore, provisions contained in section 12(b) have been revised to
state that the maximum amount of the replanting
[[Page 14783]]
payment per acre will be the lesser of your actual cost of replanting,
or the result obtained by multiplying the maximum amount of the
replanting payment contained in the applicable Special Provisions by
your insured share.
Comment: The crop insurance industry suggested combining the
provisions in section 15(e) with the provisions in 15(a).
Response: Approval of written agreements requested after the sales
closing date is the exception, not the rule. Therefore, these
provisions should be kept separate and no changes have been made.
Comment: The crop insurance industry recommended the requirement
for a written agreement to be renewed each year be removed. Terms of
the agreement should be stated in the agreement to fit the particular
situation for the policy, or if no substantive changes occur from one
year to the next, allow written agreements to be continuous.
Response: Written agreements are intended to change policy terms or
permit insurance in unusual situations where such changes will not
increase risk. If such practices continue year to year, they should be
incorporated into the policy or Special Provisions. It is important to
minimize exceptions to assure that the insured is well aware of the
specific terms of the policy. Therefore, no change will be made.
Comment: One comment from the crop insurance industry expressed
concerns regarding payment of additional premium under the provisions
of the minimum value option. In prior years, producers received an
allowable cost of $2.50 per crate for no additional premium charge.
Response: FCIC believes the commenter misunderstood the provisions
contained in the minimum value option. To provide consistency among the
fresh market vegetable crops, FCIC incorporated the minimum value
option into the sweet corn provisions. The minimum value option will,
for an additional premium, allow the total value of production to count
on a unit to be as low as zero. The additional premium charge will be
for those producers who elect the minimum value option. For those
producers who do not elect the minimum value option, section 14
provides that the total value of production to count will be the
greater of: (1) the price received for each container minus the
allowable cost; or (2) the minimum value per container. No changes will
be made.
Good cause is shown to make this rule effective upon publication in
the Federal Register. This rule improves the fresh market sweet corn
insurance coverage and brings it under the Common Crop Insurance Policy
Basic Provisions for consistency among policies. The earliest contract
change date that can be met for the 1998 crop year is April 30, 1997.
It is therefore, imperative that these provisions be made final before
that date so that the reinsured companies and insureds may have
sufficient time to implement these changes. Therefore, public interest
requires the agency to make the rules effective upon publication.
List of Subjects in 7 CFR Parts 401 and 457
Crop insurance, Fresh market sweet corn crop insurance regulations,
Fresh market sweet corn.
Final Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby amends 7 CFR parts 401 and 457
effective for the 1998 and succeeding crop years to read as follows:
PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE
1988 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 401 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. In Sec. 401.138 the introductory paragraph is revised to read as
follows:
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:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
3. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
4. Section 457.129 is added to read as follows:
Sec. 457.129 Fresh market sweet corn crop insurance provisions.
The Fresh Market Sweet Corn Crop Insurance Provisions for the 1998
and succeeding crop years are as follows:
FCIC policies:
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Fresh Market Sweet Corn Crop Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these crop provisions, and the Special Provisions; the Special
Provisions will control these crop provisions and the Basic
Provisions; and these crop provisions will control the Basic
Provisions.
1. Definitions
Container--The unit for measurement of the insured crop as
specified in the Special Provisions.
Crop year--In lieu of the definition of ``crop year'' contained
in section 1 (Definitions) of the Basic Provisions (Sec. 457.8),
crop year is a period of time that begins on the first day of the
earliest planting period for fall planted sweet corn and continues
through the last day of the insurance period for spring planted
sweet corn. The crop year is designated by the calendar year in
which spring planted sweet corn is harvested.
Days--Calendar days.
Direct marketing--Sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper or buyer. Examples of direct
marketing include selling through an on-farm or roadside stand,
farmer's market, and permitting the general public to enter the
field for the purpose of picking all or a portion of the crop.
Excess rain--An amount of precipitation sufficient to directly
damage the crop.
Excess wind--Wind speed strong enough to prevent adequate
pollination or cause lodging of stalks and prevent a normal harvest.
FSA--The Farm Service Agency, an agency of the United States
Department of Agriculture or a successor agency.
Freeze--The formation of ice in the cells of the plant or its
fruit, caused by low air temperatures.
Good farming practices--The cultural practices generally in use
in the county for the crop to make normal progress toward maturity,
and are those recognized by the Cooperative State Research,
Education and Extension Service as compatible with agronomic and
weather conditions in the county.
Harvest--The picking of sweet corn on the unit.
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.
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 for the insured crop to make normal
progress toward maturity.
Marketable sweet corn--Sweet corn that meets the standards for
grading U.S. No. 1 or better and will withstand normal handling and
shipping.
[[Page 14784]]
Plant stand--The number of live plants per acre prior to the
occurrence of an insurable cause of loss.
Planted acreage--Land in which, for each planting period, seed
has been placed by a machine appropriate for the insured crop and
planting method, at the correct depth, into a seedbed that has been
properly prepared for the planting method and production practice.
For each planting period, fresh market sweet corn must initially
be planted in rows far enough apart to permit mechanical
cultivation. Acreage planted in any other manner will not be
insurable unless otherwise provided by the Special Provisions or by
written agreement.
Planting period--The period of time designated in the Actuarial
Table in which fresh market sweet corn must be planted to be
considered fall, winter, or spring-planted sweet corn.
Potential production--The number of containers of sweet corn
that the sweet corn plants will or would have produced per acre by
the end of the insurance period, assuming normal growing conditions
and practices.
Practical to replant--In lieu of the definition of ``Practical
to replant'' contained in section 1 of the Basic Provisions
(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, marketing windows, 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 (inability to
obtain seed will not be considered when determining if it is
practical to replant).
Replanting--Performing the cultural practices necessary to
replace the sweet corn seed and then replacing the sweet corn seed
in the insured acreage with the expectation of growing a successful
crop.
Sweet corn--A type of corn with kernels containing a high
percentage of sugar that is adapted for human consumption as a
vegetable.
Written agreement--A written document that alters designated
terms of a policy in accordance with section 15.
2. Unit Division
(a) In addition to the requirements contained in section 1
(Definitions) of the Basic Provisions (Sec. 457.8), (basic unit), a
basic unit will also be established by planting period.
(b) Unless limited by the Special Provisions, these basic units
may be further divided into optional units if, for each optional
unit you meet all the conditions of this section or if a written
agreement for such further division exists.
(c) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
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 into a basic unit, that portion of the premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(d) All optional units established for a crop year must be
identified on the acreage report for that crop year.
(e) The following requirements must be met for each optional
unit:
(1) 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 in which the crop was planted;
(2) 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;
(3) You must have records of marketed production or measurement
of stored 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
loss adjustment is completed by us; and
(4) Each optional unit must be 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 that 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 FSA Farm Serial Number.
3. Amounts of Insurance and Production Stages
(a) In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8), you may select only one
coverage level (and the corresponding amount of insurance designated
in the Actuarial Table for the applicable planting period and
practice) for all the sweet corn in the county insured under this
policy.
(b) The amount of insurance you choose for each planting period
and practice must have the same percentage relationship to the
maximum price offered by us for each planting period and practice.
For example, if you choose 100 percent of the maximum amount of
insurance for a specific planting period and practice, you must also
choose 100 percent of the maximum amount of insurance for all other
planting periods and practices.
(c) The production reporting requirements contained in section 3
(Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities) of the Basic Provisions (Sec. 457.8), do not apply to
fresh market sweet corn.
(d) The amounts of insurance are progressive by stages as
follows:
------------------------------------------------------------------------
Percent of
the amount
of
Stage insurance Length of time
per acre
that you
selected
------------------------------------------------------------------------
1.................. 65 From planting through the beginning
of tasseling (which is when the
tassel becomes visible above the
whorl).
Final............... 100 From tasseling until the acreage is
harvested.
------------------------------------------------------------------------
(e) Any acreage of sweet corn damaged in the first stage to the
extent that the majority of producers in the area would not normally
further care for it, will be deemed to have been destroyed. The
indemnity payable for such acreage will be based on the stage the
plants had achieved when the damage occurred.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date shown below is the
date preceding the cancellation date:
------------------------------------------------------------------------
State and county Date
------------------------------------------------------------------------
All Florida counties; and all Georgia April 30.
counties for which the Special
Provisions designate a fall planting
period.
All Georgia counties for which the November 30.
Special Provisions do not designate a
fall planting period; and all other
States.
------------------------------------------------------------------------
5. Cancellation and Termination dates
In accordance with section 2 (Life of Policy, Cancellation, and
Termination) of the Basic Provisions (Sec. 457.8), the cancellation
and termination dates are:
[[Page 14785]]
------------------------------------------------------------------------
Cancellation and termination
State and county Dates
------------------------------------------------------------------------
Florida; Atkinson, Baker, Berrien, July 31.
Brantley, Camden, Colquitt, Cook,
Early, Mitchell, and Ware Counties
Georgia and all counties south thereof
for which the Special Provisions
designate a fall planting period.
Alabama; South Carolina; and all Georgia February 15.
Counties for which the Special
Provisions do not designate a fall
planting period.
All other States........................ March 15.
------------------------------------------------------------------------
6. Report of Acreage
In addition to the requirements of section 6 (Report of Acreage)
of the Basic Provisions (Sec. 457.8), you must report on or before
the acreage reporting date contained in the Special Provisions for
each planting period, all the acreage of sweet corn in the county
insured under this policy in which you have a share.
7. Annual Premium
In lieu of the premium amount determinations contained in
section 7 (Annual Premium) of the Basic Provisions (Sec. 457.8), the
annual premium amount for each cultural practice (e.g., fall-planted
irrigated) is determined by multiplying the final stage amount of
insurance per acre by the premium rate for the cultural practice as
established in the Actuarial Table, by the insured acreage, by your
share at the time coverage begins, and by any applicable premium
adjustment factors contained in the Actuarial Table.
8. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the sweet corn
in the county for which a premium rate is provided by the Actuarial
Table:
(a) In which you have a share;
(b) That is:
(1) Planted to be harvested and sold as fresh market sweet corn;
(2) Planted within the planting periods designated in the
Actuarial Table;
(3) Grown under an irrigated practice, unless otherwise provided
in the Special Provisions;
(4) Grown by a person who in at least one of the three previous
crop years:
(i) Grew sweet corn for commercial sale; or
(ii) Participated in managing a sweet corn farming operation;
(c) That is not:
(1) Interplanted with another crop;
(2) Planted into an established grass or legume; or
(3) Grown for direct marketing.
9. Insurable Acreage
(a) In lieu of the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), that prohibit insurance
attaching if a crop has not been planted in at least one of the
three previous crop years, we will insure newly cleared land or
former pasture land planted to fresh market sweet corn.
(b) In addition to the provisions of section 9 (Insurable
Acreage) of the Basic Provisions (Sec. 457.8):
(1) You must replant any acreage of sweet corn damaged during
the planting period in which initial planting took place whenever
less than 75 percent of the plant stand remains: and
(i) It is practical to replant: and
(ii) If, at the time the crop was damaged, the final day of the
planting period has not passed.
(2) Whenever sweet corn initially is planted during the fall or
winter planting periods and the condition specified in section
9(b)(1)(ii) is not satisfied, you may elect:
(i) To replant such acreage and collect any replant payment due
as specified in section 12. The initial planting period coverage
will continue for such replanted acreage.
(ii) Not to replant such acreage and receive an indemnity based
on the stage of growth the plants had attained at the time of
damage. However, such an election will result in the acreage being
uninsurable in the subsequent planting period.
10. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of
the Basic Provisions (Sec. 457.8), coverage begins on each unit or
part of a unit the later of the date we accept your application, or
when the sweet corn is planted in each planting period. Coverage
ends at the earliest of:
(a) Total destruction of the sweet corn on the unit;
(b) Abandonment of the sweet corn on the unit;
(c) The date harvest should have started on the unit on any
acreage which will not be harvested;
(d) Final adjustment of a loss on the unit;
(e) Final harvest; or
(f) 100 days after the date of planting or replanting.
11. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Excess rain;
(2) Excess wind;
(3) Fire;
(4) Freeze;
(5) Hail;
(6) Tornado; or
(7) Failure of the irrigation water supply, if caused by an
insured cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure against any loss of production due to:
(1) Disease or insect infestation, unless no effective control
measure exists for such disease or insect infestation; or
(2) Failure to market the sweet corn, unless such failure is due
to actual physical damage caused by an insured cause of loss that
occurs during the insurance period.
12. Replanting Payments
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment is allowed if,
due to an insured cause of loss, more than 25 percent of the plant
stand will not produce sweet corn and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will
be the lesser of your actual cost of replanting or the result
obtained by multiplying the per acre replanting payment amount
contained in the Special Provisions by your insured share.
(c) In lieu of the provisions contained in section 13
(Replanting Payment) of the Basic Provisions (Sec. 457.8), limiting
a replanting payment to one each crop year, only one replanting
payment will be made for acreage planted during each planting period
within the crop year.
13. Duties In The Event of Damage or Loss
In addition to the requirements contained in section 14 (Duties
In The Event of Damage or Loss) of the Basic Provisions
(Sec. 457.8), if you intend to claim an indemnity on any unit you
also must give us notice not later than 72 hours after the earliest
of:
(a) The time you discontinue harvest of any acreage on the unit;
(b) The date harvest normally would start if any acreage on the
unit will not be harvested; or
(c) The calendar date for the end of the insurance period.
14. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide separate acceptable production records:
(1) For any optional unit, we will combine all optional units
for which such production records 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 by:
(1) Multiplying the insured acreage in each stage by the amount
of insurance per acre for the final stage;
(2) Multiplying each result in section 14(b)(1) by the
percentage for the applicable stage (see section 3(e));
(3) Total the results of section 14(b)(2);
(4) Subtracting either of the following values from the result
of section 14(b)(3):
(i) For other than catastrophic risk protection coverage, the
total value of production to be counted (see section 14(c)); or
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to be counted (see section
14(c)) times:
(A) Sixty percent for the 1998 crop year; or
(B) Fifty-five percent for 1999 and subsequent crop years; and
(5) Multiplying the result of section 14(b)(4) by your share.
(c) The total value of production to count from all insurable
acreage on the unit will include:
(1) Not less than the amount of insurance per acre for the stage
for any acreage:
[[Page 14786]]
(i) That is abandoned;
(ii) Put to another use without our consent;
(iii) That is damaged solely by uninsured causes; or
(iv) For which you fail to provide acceptable production
records;
(2) The value of the following appraised production will not be
less than the dollar amount obtained by multiplying the number of
containers of appraised sweet corn times the minimum value per
container shown in the Special Provisions for the planting period:
(i) Unharvested production (unharvested production that is
damaged or defective due to insurable causes and is not marketable
will not be counted as production to count);
(ii) Production lost due to uninsured causes; and
(iii) Potential production on insured acreage that you intend to
put to another use or abandon, if you and we agree on the appraised
amount of production. Upon such agreement, the insurance period for
that acreage will end when you put the acreage to another use or
abandon the crop. If agreement on the appraised amount of production
is not reached:
(A) We may require you to continue to care for the crop so that
a subsequent appraisal may be made or the crop harvested to
determine actual production (If we require you to continue to care
for the crop and you do not do so, the original appraisal will be
used); or
(B) You may elect to continue to care for the crop, in which
case the amount of production to count for the acreage will be the
harvested production, or our reappraisal if the crop is not
harvested.
(3) The total value of all harvested production from the
insurable acreage will be the dollar amount obtained by subtracting
the allowable cost contained in the Special Provisions from the
price received for each container of sweet corn (this result may not
be less than the minimum value shown in the Special Provisions for
any container of sweet corn), and multiplying this result by the
number of containers of sweet corn harvested. Harvested mature sweet
corn that is damaged or defective due to insurable causes and is not
marketable, will not be counted as production to count.
15. Written Agreements
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
15(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, and premium rate;
(d) Each written agreement will only be valid for one year (If
the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
16. Minimum Value Option
(a) The provisions of this option are continuous and will be
attached to and made a part of your insurance policy, if:
(1) You elect the Minimum Value Option on your application, or
on a form approved by us, on or before the sales closing date for
the initial crop year in which you wish to insure fresh market sweet
corn under this option, and pay the additional premium indicated in
the Actuarial Table for this optional coverage; and
(2) You have not elected coverage under the Catastrophic Risk
Protection Endorsement.
(b) In lieu of the provisions contained in section 14(c)(3), the
total value of harvested production will be determined as follows:
(1) For sold production, the dollar amount obtained by
subtracting the allowable cost contained in the Special Provisions
from the price received for each container of sweet corn (this
result may not be less than zero for any container of sweet corn),
and multiplying this result by the number of containers of sweet
corn sold; and
(2) For marketable production that is not sold, the dollar
amount obtained by multiplying the number of containers of such
sweet corn on the unit by the minimum value shown in the Special
Provisions for the planting period (harvested production that is
damaged or defective due to insurable causes and is not marketable
will not be counted as production).
(c) This option may be canceled by either you or us for any
succeeding crop year by giving written notice on or before the
cancellation date preceding the crop year for which the cancellation
of this option is to be effective.
Signed in Washington, DC, on March 24, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-7943 Filed 3-27-97; 8:45 am]
BILLING CODE 3410-FA-P