[Federal Register Volume 62, Number 54 (Thursday, March 20, 1997)]
[Rules and Regulations]
[Pages 13289-13293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7012]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 62, No. 54 / Thursday, March 20, 1997 / Rules
and Regulations
[[Page 13289]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 414 and 457
General Crop Insurance Regulations; Forage Seeding Crop Insurance
Regulations and Common Crop Insurance Regulations; Forage Seeding Crop
Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
specific crop provisions for the insurance of forage seeding. 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 forage seeding 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 forage seeding crop regulations to
the 1997 and prior crop years.
DATES: Effective: March 20, 1997.
FOR FURTHER INFORMATION CONTACT: Richard Brayton, 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, data, and opinions 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), P.L.
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. The effect of this regulation on small
entities will be no greater than on larger entities. Under the current
regulations, a producer is required to complete an application and an
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. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. 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 Wednesday, January 15, 1997, FCIC published a notice of proposed
rule making, in the Federal Register at 62 FR 2055-2059 to add to the
Common Crop Insurance Regulations (7 CFR part 457), a new section, 7
CFR 457.151, Forage Seeding 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 forage seeding
[[Page 13290]]
found at 7 CFR part 414 (Forage Seeding Crop Insurance Regulations).
FCIC also amends 7 CFR part 414 to limit its effect to the 1997 and
prior crop years. FCIC will later publish a regulation to remove and
reserve part 414.
Following publication of the proposed rule, the public was afforded
30 days to submit written comments, data, and opinions. A total of 17
comments were received from the crop insurance industry and FCIC. The
comments received, and FCIC's response, are as follows:
Comment: The crop insurance industry questioned the definition of
``FSA.'' They stated that with the passage of the Freedom to Farm Act,
references to FSA or FSA Farm Serial Numbers or reliance on either in
the crop insurance policies becomes questionable. They suggested that
any reliance on FSA information, structure or data be eliminated from
the policy given the farm bill provisions.
Response: FSA is still a viable agency and acreage can still be
divided by Farm Serial Number. Those producers who elect to maintain
their Farm Serial Number units will still be able to obtain optional
units by Farm Serial Numbers. FCIC sees no reason to change that unit
structure. Therefore, no change has been made.
Comment: A representative of FCIC recommended changing the
definition of ``Forage'' to allow insurance coverage for non-grass
forage species other than alfalfa and red clover (e.g., birdsfoot
trefoil).
Response: FCIC agrees with the comment and has amended the
definition to allow insurance coverage for other species listed in the
Actuarial Table.
Comment: The crop insurance industry recommended adding the words
``and quality'' after the word ``quantity'' in the definition of
``Irrigated practice'' in section 1.
Response: Water quality is an important issue. However, since no
standards or procedures have been developed to measure water quality
for insurance purposes, quality cannot be included in the definition.
Therefore, no change has been made.
Comment: The crop insurance industry recommended changing the
definition of ``Replanting'' in section 1. The commenter indicated that
the wording `` * * * replace the forage seed and then replacing the
forage seed * * * '' is duplicative.
Response: FCIC disagrees that the language is duplicative. The
provision is amended to clarify that both preparation of the land
necessary to replace the seed and replacement of the seed must be
accomplished to be considered replanted.
Comment: The crop insurance industry recommended changing the
wording in section 2(a) to read, ``A separate (basic) unit, as defined
in section 1 (Definitions) of the Basic Provisions, will be established
for spring and fall planted acreage.''
Response: FCIC agrees with the comment and has amended the
provisions accordingly.
Comment: The crop insurance industry recommended that the states in
section 5 ``Cancellation and Termination Dates'' be in alphabetical
order.
Response: FCIC agrees with the comment and has amended the
provisions accordingly.
Comment: The crop insurance industry recommended that the spring
seeded forage acreage reporting date, premium billing date, and
termination dates should be changed to allow the crop insurance
industry more time to process their documents within compliance of
their contract.
Response: This rule moves the termination dates from April 15 to
March 15 for all states except Nevada, New Hampshire, New York,
Pennsylvania and Vermont to coincide with the March 15 sales closing
date that has been set in accordance with section 508(f)(2) of the
Federal Crop Insurance Act. The acreage reporting and premium billing
dates are not contained in this rule. However, FCIC has determined that
the insurance provider has sufficient time to process the documents and
comply with all provisions of the reinsurance agreement. Therefore, no
change has been made.
Comment: The crop insurance industry stated that the provisions
specify that the crop insured is ``forage seeding'', but the term is
not included in the definitions. Either ``forage seeding'' should be
defined, or the provisions should refer to ``all the forage seeded in
the county''.
Response: FCIC agrees that use of the term ``forage seeding'' is
confusing. The provisions have been amended to remove the word
``seeding'' since the provisions require the forage to be planted
during the current crop year.
Comment: The crop insurance industry recommended that section 6(b)
``Insured Crop'' should clarify that insurance coverage is provided for
forage ``that is initially planted this crop year, or replanted the
calendar year following planting'' to distinguish between forage
seeding (first year) and forage production (subsequent years).
Response: FCIC has clarified that the forage must be planted during
the current crop year.
Comment The crop insurance industry stated that the language
contained in section 8(b), ``Harvest of the unit, unless a late harvest
date is listed in the Special Provisions, or late harvest on the unit
if a late harvest date is listed in the Special Provisions'' is
confusing and should be clarified.
Response: FCIC agrees with the comment and has amended the
provisions for clarification.
Comment: A representative of FCIC questioned why in section 10
``Replanting payment'' that replant payments are only allowed for fall
seeded forage in counties that have both fall and spring final planting
dates. The commenter stated that the policy should be changed to allow
replant payments for damage that also occurs in the spring.
Response: When FCIC started the forage seeding program, the policy
was written for fall forage producers. It was determined that spring
forage seeding producers would not replant the forage until the
following spring. However, FCIC agrees that, with the expansion of
spring planted forage in the country, a spring replanting payment
should be studied for future implementation. However, no change has
been made in this rule.
Comment: The crop insurance industry recommended changing the
wording in section 12(a)(3) that provides for a 10 percent deductible.
The commenter questioned if it would be better to provide for a minimum
qualifier rather than a deductible.
Response: FCIC disagrees with comment. The 10 percent deductible
recognizes that when forage is seeded, it is expected 10 percent of the
new seed will not mature and produce a crop. Therefore, no change has
been made.
Comment: The crop insurance industry recommended that the
requirement contained in section 13(d) for a written agreement to be
renewed each year be removed. The commenters said that 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 agreement to be continuous.
Response: FCIC disagrees with the comments. Written agreements by
design are temporary and intended to address unusual situations. If the
conditions for which a written agreement is needed continue year to
year, they should be incorporated into the policy or Special
Provisions. Therefore, no change has been made.
[[Page 13291]]
Good cause is shown to make this rule effective upon publication in
the Federal Register. This rule improves the forage seeding insurance
coverage and brings it under the Common Crop Insurance Policy Basic
Provisions for consistency among policies. The earliest contract change
date for the 1998 crop year for forage seeding 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 act immediately to make these provisions available for
the 1998 crop year.
List of Subjects 7 CFR Parts 414 and 457
Crop insurance, Forage seeding, Forage seeding crop insurance
regulations.
Final Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby amends 7 CFR parts 414 and 457
effective for the 1998 and succeeding crop years, as follows:
PART 414--FORAGE SEEDING CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 414 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. The subpart heading preceding Sec. 414.1 is revised to read as
follows:
Subpart--Regulations for the 1981 Through 1997 Crop Years
3. Section 414.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 414.7 The application and policy.
* * * *
(d) The application for the 1984 and succeeding crop years is found
at Subpart D of part 400, General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Forage Seeding Insurance Policy
for the 1984 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: U.S.C. 1506(1), 1506(p).
5. Section 457.151 is added to read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
The Forage Seeding 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:
Forage seeding 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
Crop year--The period within which the planting is or normally
would become established and shall be designated by the calendar
year in which the planting is made for spring planted acreage and
the next succeeding calendar year for fall planted acreage.
Days--Calendar days.
FSA--The Farm Service Agency, an agency of the United States
Department of Agriculture, or a successor agency.
Fall planted--A forage crop seeded after June 30.
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 amount of insurance.
Forage--Planted perennial alfalfa, perennial red clover,
perennial grasses, or a mixture thereof, or other species, as shown
in the actuarial table.
Good farming practices--The cultural practices generally in use
in the county for the crop to make normal progress toward maturity
and produce a normal stand, and are those recognized by the
Cooperative State Research, Education, and Extension Service as
compatible with agronomic and weather conditions in the county.
Harvest--Severance of the forage plant from the land with the
intention of using it as livestock feed. Grazing will not be
considered harvested.
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 to produce at least the yield used to
establish the irrigated amount of insurance on the irrigated acreage
planted to the insured crop.
Normal stand--A population of live plants per square foot that
meets the minimum required number of plants as shown in the Special
Provisions.
Nurse Crop (companion crop)--A crop seeded into the same acreage
as another crop, that is intended to be harvested separately, and
that is planted to improve growing conditions for the crop with
which it is grown.
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 that has been properly prepared for the
planting method and production practice. Land on which seed is
initially spread onto the soil surface by any method and
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth. Acreage seeded in any other manner
will not be insurable unless otherwise provided by the Special
Provisions or by written agreement.
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, marketing
window, condition of the field, and time to crop maturity, 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, unless replanting is generally occurring in the area.
Replanting--Performing the cultural practices necessary to
prepare the land for replacing of the forage seed and then replacing
the forage seed in the insured acreage with the expectation of
producing a normal stand. Replacing new seed into an existing
damaged stand, which results in a reduced seeding rate from the
original seeding rate, will not be considered replanting.
Spring planted--A forage crop seeded before July 1.
Written agreement--A written document that alters designated
terms of this policy in accordance with section 13.
2. Unit Division
(a) In addition to the provisions of section 1 (Definitions) of
the Basic Provisions (Sec. 457.8) (basic unit), a separate basic
unit will be established for spring and fall planted acreage.
(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 a written
agreement to such division exists.
(c) 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 in this
section.
(d) 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 additional
premium paid for the optional units will that have been combined be
refunded to you.
[[Page 13292]]
(e) All optional units you selected for the crop year must be
identified on the acreage report for that crop year.
(f) The following requirements must be met for each optional
unit:
(1) You must have 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; and
(2) Each optional unit must meet one or more of the following
criteria as applicable:
(i) Optional Units by Section, Section Equivalent, or FSA 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 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.
(ii) 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 FSA 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 FSA Farm Serial Number. To qualify as separate
irrigated and non-irrigated optional units, the non-irrigated
acreage may not continue into the irrigated acreage in the same rows
or planting pattern. The irrigated acreage may not extend beyond the
point at which the irrigated system can deliver the quantity of
water needed to produce a normal stand.
3. Amounts of Insurance
(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 only select one
coverage level and the corresponding amount of insurance designated
in the Actuarial Table for the applicable type and practice for all
the forage seeding in the county that is insured under this policy.
The amount of insurance you choose for each type and practice must
have the same percentage relationship to the maximum amount of
insurance offered by us for each type and practice. For example, if
you choose 100 percent of the maximum amount of insurance for a
specific type and practice, you must also choose 100 percent of the
maximum amount of insurance for all other types and practices.
(b) 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
forage seeding.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is November 30
preceding the cancellation date for counties with a March 15
cancellation date and April 30 preceding the cancellation date for
all other counties.
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:
------------------------------------------------------------------------
Cancellation and termination
State and County dates
------------------------------------------------------------------------
Nevada, New Hampshire, New York, July 31.
Pennsylvania, Vermont.
All other states......................... March 15.
------------------------------------------------------------------------
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the forage in
the county for which a premium rate is provided by the actuarial
table:
(a) In which you have a share;
(b) That is planted during the current crop year, or replanted
the calendar year following planting, to establish a normal stand of
forage intended for harvest as livestock feed;
(c) That is not grown with the intent to be grazed, or not
grazed at any time during the insurance period; and
(d) That is not interplanted with another crop, except nurse
crops, unless allowed by the Special Provisions or by written
agreement.
7. Insurable Acreage
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), any acreage of the insured
crop damaged before the final planting date, to the extent that such
acreage has less than a normal stand, must be replanted unless we
agree that it is not practical to replant.
8. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of
the Basic Provisions (Sec. 457.8) regarding when insurance ends,
forage seeding insurance will end at the earliest of:
(a) Total destruction of the insured crop on the unit;
(b) The initial harvest of the unit, if a late harvest date is
not listed in the Special Provisions;
(c) The first harvest after the late harvest date, if a late
harvest date is specified in the Special Provisions. You may harvest
the crop as often as practical in accordance with good farming
practices on or before the late harvest date.
(d) Final adjustment of a loss on a unit;
(e) Abandonment of the insured crop;
(f) The date grazing commences on the insured crop; or
(g) May 21 of the calendar year following seeding for spring-
planted forage; or October 15 of the calendar year following seeding
for fall-planted forage.
9. 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 that result in loss of, or failure to
establish, a stand of forage 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.
10. Replanting Payment.
In lieu of the provisions contained in section 13 (Replanting
Payment) of the Basic Provisions (Sec. 457.8):
(a) A replanting payment is allowed only in counties for which
the Special Provisions designate both fall and spring final planting
dates if:
(1) The insured fall planted acreage is damaged by an insurable
cause of loss to the extent that less than 75 percent of a normal
stand remains;
(2) It is practical to replant;
(3) We give written consent to replant; and
(4) Such acreage is replanted the following spring by the spring
final planting date.
(b) The amount of the replanting payment will be equal to 50
percent of the amount of the liability determined in accordance with
section 12(a).
(c) No replanting payment will be made on acreage for which one
replanting payment has been allowed.
(d) If the information reported by you on the acreage report
results in a lower premium than the actual premium determined to be
due based on the acreage, share, practice, or type determined
actually to have existed, the replanting payment will be reduced
proportionately.
11. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 (Duties in
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8),
the representative samples of the crop must be at least 10 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 tilling of the balance of the unit is
completed.
(b) In addition to the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), you
must give us written notice if, during the period before destroying
the crop on any fall planted acreage that is damaged, you decide to
replant the acreage by the spring final planting date.
12. Settlement of Claim
(a) 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 of each type and practice by
the amount of insurance for the applicable type and practice;
(2) Totaling the results in section 12(a)(1);
(3) Multiplying the total of the acres with an established stand
plus 10 percent of the planted acres for the insured acreage of each
[[Page 13293]]
type and practice in the unit by the amount of insurance for the
applicable type and practice;
(4) Totaling the results in section 12(a)(3);
(5) Subtracting the result in section 12(a)(4) from the result
in section 12(a)(2); and
(6) Multiplying the result in section 12(a)(5) by your share.
(b) The acres with an established stand will include:
(1) Acreage that has at least 75 percent of a normal stand;
(2) Acreage abandoned or put to another use without our prior
written consent;
(3) Acreage damaged solely by an uninsured cause; or
(4) Acreage that is harvested and not reseeded.
(c) The amount of indemnity on any spring planted acreage
determined in accordance with section 12(a) will be reduced 50
percent if the stand is less than 75 percent but more than 55
percent of a normal stand.
13. 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
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, practice, premium rate, and amount of insurance;
(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 March 14, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-7012 Filed 3-19-97; 8:45 am]
BILLING CODE 3410-FA-P
