[Federal Register Volume 62, Number 92 (Tuesday, May 13, 1997)]
[Proposed Rules]
[Pages 26248-26252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12436]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 92 / Tuesday, May 13, 1997 / Proposed
Rules
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 435 and 457
Tobacco (Quota Plan) Crop Insurance Regulations; and Common Crop
Insurance Regulations; Quota Tobacco Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes
specific crop provisions for the insurance of quota tobacco. 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 tobacco (quota plan) crop insurance regulations with the Common
Crop Insurance Policy for ease of use and consistency of terms, and to
restrict the effect of the current tobacco (quota plan) crop insurance
regulation to the 1997 and prior crop years.
EFFECTIVE DATES: Written comments and opinions on this proposed rule
will be accepted until close of business June 12, 1997 and will be
considered when the rule is to be made final.
ADDRESSES: Interested persons are invited to submit written comments to
the Chief, Product Development Branch, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131.
FOR FURTHER INFORMATION CONTACT: Gary Johnson, Insurance Management
Specialist, Research and Development Division, Product Development
Branch, FCIC, at the Kansas City, MO, address listed above, telephone
(816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866
The Office of Management and Budget 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
The amendments set forth in this proposed rule do not contain
additional information collections that require clearance by OMB under
the provisions of 44 U.S.C. chapter 35.
The title of this information collection is ``Multiple Peril Crop
Insurance.'' The information to be collected includes a crop insurance
application and acreage report. Information collected from the
application and acreage report is electronically submitted to FCIC by
the reinsured companies. Potential respondents to this information
collection are producers of quota tobacco that are eligible for Federal
crop insurance.
The information requested is necessary for the reinsured companies
and FCIC to provide insurance and reinsurance, determine eligibility,
determine the correct parties to the agreement or contract, determine
and collect premiums or other monetary amounts, and pay benefits.
All information is reported annually. The reporting burden for this
collection of information is estimated to average 16.9 minutes per
response for each of the 3.6 responses from approximately 1,755,015
respondents. The total annual burden on the public for this information
collection is 2,676,932 hours.
FCIC is requesting comments on the following: (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the proposed collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; and (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
gathering technology.
Comments regarding paperwork reduction should be submitted to the
Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
OMB is required to make a decision concerning the collections of
information contained in these proposed regulations between 30 and 60
days after submission to OMB. Therefore, a comment to OMB is best
assured of having full effect if OMB receives it within 30 days of
publication. This does not affect the deadline for the public to
comment on the proposed regulation.
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. The insured
must also annually certify to the previous years production if adequate
records are available to support the certification. The producer must
maintain the
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production records to support the certified information for at least
three years. 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
This proposed rule has been reviewed in accordance with 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
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR part 457), a new section, 7 CFR 457.156, Quota Tobacco 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 quota tobacco found at 7 CFR part
435 Tobacco (Quota Plan). FCIC also proposes to amend 7 CFR part 435 to
limit its effect to the 1997 and prior crop years. FCIC also proposes
to amend 7 CFR part 435 to limit its effect to the 1997 and prior crop
years.
This rule makes minor editorial and format changes to improve the
Tobacco (Quota Plan) Crop Insurance Regulation's compatibility with the
Common Crop Insurance Policy. In addition, FCIC is proposing
substantive changes in the provisions for insuring quota tobacco as
follows:
1. The Late Planting Agreement Option (LPAO) has been discontinued
because the final planting date is late enough to allow anyone with
tobacco plants to timely transplant them and the reduction in guarantee
under the LPAO is not sufficient to cover the increased risks of a
shorter growing season.
2. Section 1--Add definitions for terms ``adequate stand,''
``amount of insurance,'' ``approved yield,'' ``days,'' ``discount
variety,'' ``FSA,'' ``fair market value,'' ``final planting date,''
``good farming practices,'' ``insured poundage quota,'' ``irrigated
practice,'' ``planted acreage,'' ``pound,'' ``practical to replant,''
``production guarantee,'' ``replanting,'' ``tobacco bed,'' ``USDA,''
and ``written agreement'' for clarification. The definition of
``harvest'' was revised to remove the requirement that 20 percent of
the production guarantee per acre for the unit of the tobacco had to be
cut per acre from the unit in order for the unit to be considered
harvested. Since the harvest incentive of 35 percent of the guarantee
has been deleted, this provision is no longer necessary. Added the
definition of ``hydroponic plants'' to identify seedlings grown in a
liquid nutrient solution.
3. Section 3--Delete the six cents per pound warehouse charge
deduction for the purpose of determining the amount of insurance. This
provides the producer the full value of the tobacco sold without the
warehouse charge. It also allows the use of gross sales to establish
the value of production to count without the warehouse charge
deduction. Allow the use of actual production history to determine the
approved yield for insurance purposes. The most accurate determination
of the yield for the unit uses insured's records of production.
4. Section 4--Change the contract date from December 31 to November
30 in order to maintain an adequate time period between this date and
the earliest cancellation date.
5. Section 5--Change the cancellation and termination dates from
April 15 to March 15. This conforms to a statutory change that moved
spring planted crop sales closing dates 30 days earlier.
6. Section 6(a)--Clarify that insurance coverage will only apply to
the effective poundage marketing quota as defined in these regulations.
7. Section 6(b)(c)--Require that a copy of any written lease
agreement between the landlord and tenant be provided to the insurance
provider. This will allow the farm's effective poundage marketing quota
to be distributed between two or more insureds based on a written lease
agreement between the landlord and the insured. This provision was
added because the present method of distributing the farm's effective
marketing quota between two or more insureds does not provide equitable
treatment for all insureds.
8. Section 8(d)--Clarify that any acreage damaged prior to the
final planting date must be replanted unless replanting is not
practical.
9. Section 10(c)(d)--Clarify that insects and plant disease are
insurable causes of loss, but they are not insurable causes of loss if
damage was due to insufficient or improper application of pest or
disease control measures.
10. Section 12(g)--Add a provision for a requirement that once the
insurance provider agrees that any current year's or carryover tobacco
has no market value, the insured must destroy it. This provision
eliminates the adjustment of next year's quota when the crop is still
saleable at the time of the loss. It also eliminates the opportunity to
falsely report carryover and current year's tobacco as of no value to
increase indemnity payments. This provision is consistent with FSA's
requirement that tobacco having no value must be destroyed.
11. Section 13--Add provisions for providing insurance coverage by
written agreement. FCIC has a long standing policy of permitting
certain modifications of the insurance contract by written agreement
for some policies. This amendment allows FCIC to tailor the policy to a
specific insured in certain instances. The new section will cover the
procedures for and duration of written agreements.
List of Subjects in 7 CFR Parts 435 and 457
Crop insurance, Quota tobacco, Tobacco (quota plan) crop insurance
regulations. Proposed Rule
Accordingly, for reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 435 and
457, as follows:
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PART 435--TOBACCO (QUOTA PLAN) CROP INSURANCE REGULATIONS FOR THE
1985 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 435 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. The part heading is revised to read as set forth above.
3. The subpart heading ``Subpart--Regulations for the 1985 through
1997 Crop Years'' is removed.
4. Section 435.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
* * * * *
(d) The application for the 1985 and subsequent crop years is found
at subpart D of part 400--General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Tobacco (Quota Plan) Insurance
Policy for the 1985 through 1997 crop years are as follows:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 1994
AND SUBSEQUENT CONTRACT YEARS
4. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
5. Section 457.156 is added to read as follows:
Sec. 457.156 Quota tobacco crop insurance provisions.
The Quota Tobacco Crop 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:
Quota Tobacco 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
Amount of insurance. The dollar amount determined by multiplying
the insured poundage quota by the current year's support price.
Approved yield. The yield calculated in accordance with 7 CFR
part 400, subpart G.
Carryover tobacco. Any tobacco produced on the FSA Farm Serial
Number in previous years that remained unsold at the end of the most
recent marketing year.
County. In lieu of the provisions of section 1 (Definitions) of
the Basic Provisions (Sec. 457.8), county is defined as the county
or other political subdivision of a state shown on your accepted
application including any land identified by an FSA Farm Serial
Number for such county but physically located in another county.
Days. Calendar days.
Discount variety. Tobacco defined as such under the provisions
of the United States Department of Agriculture tobacco price support
program.
Effective poundage marketing quota. The farm marketing quota as
established and recorded by the FSA office for the county plus any
additional poundage you intend to produce for each unit in that crop
year, minus the amount of any carryover tobacco.
FSA. The Farm Service Agency, an agency of the United States
Department of Agriculture, or a successor agency.
Fair market value. The current year's tobacco growing season
average price for the applicable type of tobacco obtained from the
sale of the tobacco through market other than an auction warehouse.
Farm yield. The yield per acre used by FSA to establish the
effective poundage marketing quota for a FSA Farm Serial Number,
unless we have established a yield for that FSA Farm Serial Number
in the actuarial table.
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.
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 amount of
insurance, and are those recognized by the Cooperative State
Research, Education, and Extension Service as compatible with
agronomic and weather conditions in the county.
Harvest. Cutting and removing all insured tobacco from the field
in which it was grown.
Hydroponic plants. Seedlings grown in liquid nutrient solutions.
Insured poundage quota. The lesser of:
(1) the product (in pounds) obtained by multiplying the
effective poundage marketing quota for the FSA Farm Serial Number by
your selected coverage level; or
(2) the farm yield or approved yield, as applicable multiplied
by the insured acres and by your selected coverage level.
Market price. The previous years' season average price published
by National Agricultural Statistics Service for the applicable type
of tobacco in the area.
Marketing year. The marketing year published by National
Agricultural Statistics Service for the applicable type of tobacco
in the area.
Planted acreage. Land in which tobacco seedlings, including
hydroponic plants, have been transplanted by hand or machine from
the tobacco bed to the field.
Pound. Sixteen ounces avoirdupois.
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, time to crop maturity, and marketing window, that replanting
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 final planting date.
Replanting. Performing the cultural practices necessary to
replace the tobacco plant, and then replacing the tobacco plant in
the insured acreage with the expectation of growing a successful
crop.
Support price. The average price per pound for the type of
tobacco as announced by the USDA under its tobacco price support
program.
Tobacco bed. An area protected from adverse weather, in which
tobacco seeds are sown and seedlings are grown until transplanted
into the tobacco field by hand or machine.
Unit. In lien of the provision of section 1 (Definition) of the
Basic Provisions (Sec. 457.8), a unit is all insurable acreage of an
insurable type of tobacco in the county in which you have an insured
share on the date of planting for the crop year and which is
identified by a single FSA Farm Serial Number at the time insurance
first attaches under these provisions for the crop year.
USDA. United States Department of Agriculture.
Written agreement. A written document that alters designated
terms of this policy in accordance with section 13.
2. Unit Division
A unit will be determined in accordance with the definition of
unit contained in section 1 of these Crop Provisions and may not be
subdivided on any basis, unless specified by the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In lieu of section 3(c) (Insurance Guarantees, Coverage Levels,
and Prices for Determining Indemnities) of the Basic Provisions
(Sec. 457.8), you will only be required to file an annual production
report to us if required by the Special Provisions to establish an
approved yield in lieu of the farm yield or yield shown by us on the
actuarial table. If required by the Special Provisions, you must
file an annual production report in accordance with section 3(c)
(Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities) of the Common Crop Insurance Policy (Sec. 457.8).
4. Contract Changes.
In accordance with section 4 (Contract Changes) in the Basic
Provisions (Sec. 457.8), the contract change date is November 30
preceding the cancellation date.
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 March 15.
6. Report of Acreage
In addition to the requirements of section 6 (Report of Acreage)
of the Basic Provisions (Sec. 457.8):
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(a) You must report the effective poundage marketing quota, any
additional poundage that you intend to produce for each unit in the
crop year, and the quantity of carryover tobacco on hand at the time
the acreage report is submitted. Once submitted, you may not revise
the acreage report.
(b) You must provide a copy of any written lease agreement
between you and any landlord or tenant showing the amount of the
effective poundage marketing quota allocated to you. The total
amount of the effective poundage marketing quota allocated to all
persons holding a share may not differ from the effective poundage
marketing quota designation made to FSA. The written lease agreement
must:
(1) Identify all other persons sharing in the effective poundage
marketing quota; and
(2) Be submitted to your local office by the acreage reporting
date.
(c) In the event of a loss, if the written lease agreement has
been submitted timely, we will distribute the effective poundage
marketing quota in accordance with the terms of the written lease
agreement. If the written lease agreement is not submitted timely,
we will prorate the effective poundage marketing quota across the
FSA Farm Serial Number to all insured and uninsured persons based on
planted acres within the FSA Farm Serial Number.
7. Insured Crop
(a) In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be one or more of
tobacco types designated in the Special Provisions, in which you
have a share, that you elect to insure, and for which a premium rate
is provided by the actuarial table.
(b) The effective poundage marketing quota may not include any
tobacco that would be subject to a marketing quota penalty under
USDA Tobacco Marketing Quota Regulations.
(c) Unless otherwise provided by the actuarial table, for any
crop year in which USDA does not promulgate Tobacco Marketing Quota
Regulations, the effective poundage marketing quota will be the
pounds obtained by multiplying the applicable approved yield per
acre by the lower of the reported or insured acreage on the unit.
8. Insurable Acreage
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), we will not insure any
acreage:
(a) Planted to a discount variety;
(b) Planted to a tobacco type for which no premium rate is
provided by the actuarial table;
(c) Planted in any manner other than as provided in the
definition of ``planted acreage'' in section 1 of these Crop
Provisions (Such acreage is not insurable unless otherwise provided
by the Special Provisions or by written agreement); or
(d) Damaged before the final planting date to the extent that
the majority of producers in the area would normally not further
care for the crop, unless such crop is replanted or we agree that
replanting is not practical.
9. Insurance Period
In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), insurance ceases the
earliest of:
(a) Destruction of the tobacco;
(b) Weighing-in at the tobacco warehouse;
(c) Removal of the tobacco from the field where grown except for
curing, grading, packing, or immediate delivery to the tobacco
warehouse; or
(d) The February 28 immediately following the normal harvest
period.
10. Causes of Loss
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:
(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 caused by an
insured peril that occurs during the insurance period.
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 Basic Provisions (Sec. 457.8), any
representative samples we may require of each unharvested tobacco
type must be at least 5 feet wide and extend the entire length of
each field in the unit. The samples 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 separate acceptable production records, 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 poundage quota by the current year's
support price;
(2) Subtracting the value of the total production to be counted
in (see section 12(c)) from the amount of insurance in section
12(b)(1); and
(3) Multiplying the result in section 12(b)(2) by your share;
(c) The value of the total production to count (pounds of
production that is appraised or harvested multiplied by the
applicable price) for all insurable acreage on the unit will
include:
(1) All appraised production as follows:
(i) Not less than the amount of insurance per insured acre for
the unit for any acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Potential production on unharvested insured acreage that
you intend to put to another use with our consent, if you and we
agree on the appraised amount of production multiplied by the
current year's support price. 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) If you do not elect to continue to care for the crop, we may
consent to allow you 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 multiplied by the current year's support
price 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 multiplied by the
current year's support price); 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 multiplied by the current year's
support price if additional damage occurs and the crop is not
harvested;
(iv) If a current year's support price is not in effect,
appraised production will be valued at the market price;
(2) All harvested production from insurable acreage multiplied
by:
(i) Gross sale receipts for the tobacco sold on a warehouse
floor;
(ii) Fair market value for tobacco sold other than on the
warehouse floor; and
(iii) Fair market value for tobacco not sold.
(d) Mature tobacco production that is damaged by insurable
causes will be adjusted for quality, based on the USDA Official
Standard Grades, Burley Tobacco, U.S. Type 31, and will receive a
price based on the following:
(1) Gross sale receipts for the tobacco sold on a warehouse
floor;
(2) Fair market value for tobacco sold other than on the
warehouse floor; and
(3) Fair market value for tobacco not sold.
(e) Production that is damaged by uninsurable causes will not be
adjusted for quality, but will receive a price based on the current
year's support price.
(f) To enable us to determine the fair market value of tobacco
not sold through auction warehouses, you must give us the
opportunity to inspect such tobacco before it is sold, contracted to
be sold, or otherwise disposed; failure to provide us the
opportunity to inspect such tobacco may result in rejection of any
claim for indemnity.
(g) If we consider the best offer you receive for such tobacco
to be inadequate, we may obtain additional offers on your behalf.
(h) Once we agree that any carryover or current year's tobacco
has no market value due to insured causes, you must destroy it. If
you refuse to destroy the tobacco with no value, we will determine
the value and count it as production to count.
[[Page 26252]]
13. Written Agreements
Terms of this policy which are specifically designated for the
use of written agreements may be altered by written agreement in
accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
13(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, the guarantee, premium rate, and price election;
(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.
Signed in Washington, D.C., on May 7, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-12436 Filed 5-12-97; 8:45 am]
BILLING CODE 3410-08-P