[Federal Register Volume 62, Number 2 (Friday, January 3, 1997)]
[Proposed Rules]
[Pages 338-343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-61]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 445 and 457
Pepper Crop Insurance Regulations; and Common Crop Insurance
Regulations, Fresh Market Pepper 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 fresh market peppers. 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 Pepper Crop Insurance Regulations under the Common Crop
Insurance Policy for ease of use and consistency of terms, and to
restrict the effect of the current Pepper Crop Insurance Regulations to
the 1997 and prior crop years.
DATES: Written comments, data and opinions on this proposed rule will
be accepted until close of business February 3, 1997 and will be
considered when the rule is to be made final. The comment period for
information collections under the Paperwork Reduction Act of 1995
continues through March 3, 1997.
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. Written comments will be available for public
inspection and copying in room 0324, South Building, United States
Department of Agriculture, 14th and Independence Avenue, S.W.,
Washington, D.C., 8:15 a.m. to 4:45 p.m., est, Monday through Friday,
except holidays.
FOR FURTHER INFORMATION CONTACT: Linda Williams, Program Analyst,
Research and Development Division, Product Development Branch, Federal
Crop Insurance Corporation, at the Kansas City, MO, address listed
above, 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
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Fresh Market Pepper Crop Insurance Provisions.''
The information to be collected includes a crop insurance application
and an 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 fresh market peppers 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
[[Page 339]]
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. 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 parts 11 and 780 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 Sec. 457.148, Fresh Market Pepper
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 peppers
found at 7 CFR part 445 (Pepper Crop Insurance Regulations). FCIC also
proposes to amend 7 CFR part 445 to limit its effect to the 1997 and
prior crop years. FCIC will later publish a regulation to remove and
reserve part 445.
This rule makes minor editorial and format changes to improve the
Fresh Market Pepper Crop Insurance Regulations compatibility with the
Common Crop Insurance Policy. In addition, FCIC is proposing
substantive changes in the provisions for insuring peppers as follows:
1. Section 1--Add definitions for the terms ``bell pepper,''
``box,'' ``days,'' ``FSA,'' ``good farming practices,''
``interplanted,'' ``irrigated practice,'' ``mature bell pepper,''
``planted acreage,'' ``practical to replant,'' ``row width,'' and
``written agreement'' for clarification.
The definition of ``county'' contained in the Common Crop Insurance
Policy (Sec. 457.8), will be used to conform with other fresh market
crop policies. This change will require acreage located in a local
producing area bordering the county to be insured using the actuarial
materials for the county where the land is physically located.
Clarify the definition of crop year to specify that the crop year
begins on the first day of the earliest planting period for fall-
planted peppers and continues through the end of the insurance period
for spring-planted peppers.
Clarify the definition of excess rain to specify that it is an
amount of precipitation that is sufficient to directly damage the crop.
Previous regulations defined excessive rain as a minimum of 10 inches
of rain within a 24-hour period. This change will provide coverage for
crop damage that occurs when a lesser amount of precipitation is
received.
Change the definition of freeze to specify that freeze occurs when
low air temperatures cause ice to form in the cells of the plant or its
fruit to encompass conditions found in both frost and freeze.
Change the definition of harvest to clarify and remove the term
marketable. Peppers picked from the plant are considered harvested
whether marketable or not.
2. Section 3(a)--Clarify that an insured 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 fresh market peppers in the county insured under the
policy.
3. Section 3(b)--Clarify that the amounts of insurance the insured
chooses for each planting period and practice must have the same
percentage relationship to the maximum amount of insurance offered by
FCIC for each planting period and practice.
4. Section 3(e)--Add language listing three stages of coverage for
direct seeded and transplanted acreage. This language was previously
contained in the actuarial documents.
[[Page 340]]
5. Section 9(a)--Add a provision that provides coverage on newly
cleared land or former pasture land that is planted to fresh market
peppers. It is a recognized practice to plant the insured crop on
tilled acreage that has been newly cleared or that has been pasture
land to eliminate some of the risk of disease and insect damage. This
change also will standardize current regulations for the fresh market
vegetable crops.
6. Section 9(b)(2)--Allow an insured to elect not to replant
damaged peppers that were initially planted within the fall or winter
planting periods, provided the final planting date for the planting
period has passed and damage occurs after 30 days of transplanting or
after 60 days of direct seeding. With this election, the insured may
collect an indemnity and that particular acreage will be uninsurable
for the next planting period. The insured may also elect to replant
such pepper acreage, collect a replanting payment under section 12, and
maintain the initial planting period coverage. This change incorporates
and standardizes procedures utilized in the fresh market vegetable
crops.
7. Section 10(f)(1)--Change the calendar date for the end of the
insurance period from 150 days to 165 days after the date of direct
seeding or replanting with seed. This change will allow expansion of
pepper crop insurance coverage into other areas.
8. Section 14(b)(2)--Modify claim for indemnity calculations by
providing calculations for catastrophic risk protection coverage and
for coverage other than catastrophic risk protection. This provision
includes the use of the catastrophic risk protection price election
equivalent to determine the total dollar of production to count for
indemnity purposes. This change is necessary to assure that producers
that are insured based on a dollar amount of insurance are indemnified
comparable to producers that are insured based on an actual production
history (APH) yield basis.
9. Section 14(c)(2)(iv)--Require the insured to continue to care
for acreage when the insured does not agree with the appraisal on that
acreage. Production to count for such acreage will be determined using
the harvested production if the crop is harvested, or our reappraisal
if the crop is not harvested.
10. Section 14(c)(3)--Change the value to count for harvested
production to the dollar amount obtained by subtracting the allowable
cost from the price received (this resulting price must not be less
than the minimum value shown in the Special Provisions), and
multiplying this result by the number of boxes harvested. Current
regulations allow the value of sold production to be as low as zero.
Also, clarify that harvested mature bell peppers that are damaged or
defective due to insurable causes and are not marketable will not be
counted as production. These changes are made to assure that the
minimum value specified in the Special Provisions will be the lowest
value considered for any marketable harvested production unless the
insured selected the minimum value option.
11. Section 15--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.
12. Section 16--A minimum value option is added. The option allows
the value of each harvested box to be as low as zero. This option is
selected on the insurance application. This change will provide
consistency in regulations found in other fresh market vegetable crops.
List of Subjects in 7 CFR Parts 445 and 457
Crop insurance, Pepper crop insurance regulations, Fresh market
peppers.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby proposes to amend 7 CFR parts 445 and 457
as follows:
PART 445--PEPPER CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 445 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. The subpart heading preceding Sec. 445.1 is revised to read as
follows:
Subpart--Regulations for the 1987 Through the 1997 Crop Years
3. Section 445.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 445.7 The application and policy.
* * * * *
(d) The application for the 1987 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 Pepper Crop Insurance Policy for
the 1987 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(l), 1506(p).
5. 7 CFR part 457 is amended by adding a new Sec. 457.148 to read
as follows:
Sec. 457.148 Fresh Market Pepper Crop Insurance Provisions.
The Fresh Market Pepper Crop Insurance Provisions for the 1998 and
succeeding crop years are as follows:
FCIC policies:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
FRESH MARKET PEPPER 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.
Acre--43,560 square feet of land when row widths do not exceed
six feet, or if row widths exceed six feet, the land area on which
at least 7,260 linear feet of rows are planted.
Bell pepper--An annual pepper (of the capsicum annuum species,
grossum group), widely cultivated for its large, crisp, edible
fruit.
Box--One and one-ninth (1\1/9\) bushels of the insured crop.
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 peppers and continues
through the last day of the insurance period for spring-planted
peppers. The crop year is designated by the calendar year in which
spring-planted peppers are 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.
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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 peppers 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.
Mature bell pepper--A pepper that has reached the stage of
development that will withstand normal handling and shipping.
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,
transplants or seed have been placed manually or by a machine
appropriate for the insured crop and planting method, at the correct
depth, into soil that has been properly prepared for the planting
method and production practice. For each planting period, peppers
must initially be planted in rows. 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 the peppers must be planted to be considered fall,
winter or spring-planted peppers.
Potential production--The number of boxes of mature bell peppers
that the pepper 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 plants or seed will not be considered when determining if it
is practical to replant).
Replanting--Performing the cultural practices necessary to
replace the pepper seed or transplants and then replacing the pepper
seed or transplants in the insured acreage with the expectation of
growing a successful crop.
Row width--The widest distance from the center of one row of
plants to the center of an adjacent row of plants.
Tropical depression--A system identified by the U.S. Weather
Service as a tropical depression, and for the period of time so
designated, including tropical storms, gales, and hurricanes.
Written agreement--A written document that alters designated
terms of a policy in accordance with section 15.
2. Unit Division.
(a) A unit as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), (basic unit) will be divided 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 insured 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 peppers 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 amount of insurance available under the catastrophic
risk protection plan of insurance will be specified in the Actuarial
Table.
(d) 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 peppers.
(e) The amounts of insurance per acre are progressive by stages
as follows:
------------------------------------------------------------------------
Percent
of amount
of
Stage insurance Length of time if direct Length of time if
per acre seeded transplanted
that you
selected
------------------------------------------------------------------------
1..... 65 From planting through the From planting through the
74th day after planting. 44th day after planting.
2..... 85 From the 75th day after From the 45th day after
planting until the planting until the
beginning of stage 3. beginning of stage 3.
3..... 100 Begins the earlier of 110 Begins the earlier of 80
days after planting, or days after planting, or
the beginning of harvest. the beginning of
harvest.
------------------------------------------------------------------------
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(f) Any acreage of peppers damaged in the first or second 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 is April 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 July 31.
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:
(a) All the acreage of peppers in the county insured under this
policy in which you have a share; and
(b) The row width.
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 direct
seeded irrigated) is determined by multiplying the third 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 bell
peppers in the county for which a premium rate is provided by the
Actuarial Table:
(a) In which you have a share;
(b) That are:
(1) Planted to be harvested and sold as mature fresh market bell
peppers;
(2) Planted within the planting periods designated in the
Actuarial Table;
(3) Grown under an irrigated practice;
(4) Grown on acreage covered by plastic mulch except where the
Special Provisions allow otherwise;
(5) Grown by a person who in at least one of the three previous
crop years:
(i) Grew bell peppers for commercial sale; or
(ii) Participated in managing a bell pepper farming operation;
(c) That are not:
(1) Interplanted with another crop;
(2) Planted into an established grass or legume;
(3) Pimento peppers; or
(4) 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 peppers.
(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 peppers damaged during the
planting period in which initial planting took place whenever less
than 50 percent of the plant stand remains: and
(i) It is practical to replant;
(ii) If, at the time the crop was damaged, the final day of the
planting period has not passed; and
(iii) The damage occurs within 30 days of transplanting or 60
days of direct seeding.
(2) Whenever peppers initially are planted during the fall or
winter planting periods and the conditions specified in sections
9(b)(1)(ii) and (iii) are 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.
(3) We will not insure any acreage which, in the preceding
planting period was planted to peppers (except as allowed in
sections 9(b)(1) and (2)), tomatoes, eggplants, or tobacco unless
the soil has been fumigated or otherwise properly treated.
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 peppers
are planted in each planting period. Coverage ends at the earliest
of:
(a) Total destruction of the peppers on the unit;
(b) Abandonment of the peppers 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) The calendar date for the end of the insurance period as
follows:
(1) 165 days after the date of direct seeding or replanting with
seed; and
(2) 150 days after the date of transplanting or replanting with
transplants.
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) Fire;
(3) Freeze;
(4) Hail;
(5) Tornado;
(6) Tropical depression; 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;
(2) Insect infestation; or
(3) Failure to market the peppers, 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 50 percent of the plant
stand will not produce peppers and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will
be the result obtained by multiplying $300.00 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)) by:
(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.
[[Page 343]]
(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:
(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
boxes of appraised peppers times the minimum value per box shown in
the Special Provisions for the planting period:
(i) Potential production on any acreage that has not been
harvested the third time;
(ii) Unharvested mature bell peppers (unharvested production
that is damaged or defective due to insurable causes and is not
marketable will not be counted as production to count);
(iii) Production lost due to uninsured causes; and
(iv) 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 box of peppers (this result may not be less
than the minimum value shown in the Special Provisions for any box
of peppers), and multiplying this result by the number of boxes of
peppers harvested. Harvested production 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 either Option I or Option II of 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 peppers 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) If you selected Option I of the Minimum Value Option, the
total value of harvested production will be as follows:
(i) For sold production, the dollar amount obtained by
subtracting the allowable cost contained in the Special Provisions
from the price received for each box of peppers (this result may not
be less than $2.75 for any box of peppers), and multiplying this
result by the number of boxes of peppers sold; and
(ii) For marketable production that is not sold, the dollar
amount obtained by multiplying the number of boxes of such peppers
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).
(2) If you selected Option II of the Minimum Value Option, the
total value of harvested production will be as provided in section
16(b)(1), except that the dollar amount specified in section
16(b)(1)(i) may not be less than zero.
(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, D.C., on December 24, 1996.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance.
[FR Doc. 97-61 Filed 1-2-97; 8:45 am]
BILLING CODE 3410-FA-P
