[Federal Register Volume 62, Number 10 (Wednesday, January 15, 1997)]
[Proposed Rules]
[Pages 2055-2059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1014]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 414 and 457
Forage Seeding Crop Insurance Regulations and Common Crop
Insurance Regulations; Forage Seeding 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 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, to 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 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 14, 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. Written comments will be available for public
inspection and copying in room 0324, South Building, United States
Department of Agriculture, 14th and Independence Avenue, SW.,
Washington, DC, 8:15 a.m. to 4:45 p.m., est, Monday through Friday,
except holidays.
FOR FURTHER INFORMATION CONTACT: Richard Brayton, 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 amendments set forth in this information collections that
require clearance by OMB is ``Catastrophic Risk Protection Plan and
Related Requirements including, Common Crop Insurance Regulations;
Forage Seeding Crop Insurance Provisions.'' 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 forage
seeding 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
[[Page 2056]]
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
2,669,970 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.
The Office of Management and Budget (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. 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
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 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 found at 7 CFR part
414 (Forage Seeding Crop Insurance Regulations), for the 1998 and
succeeding crop years. FCIC also proposes to amend 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.
This rule makes minor editorial and format changes to improve the
Forage Seeding Crop Insurance Regulations compatibility with the Common
Crop Insurance Policy. In addition, FCIC is proposing substantive
changes in the provisions for insuring forage seeding as follows:
1. The current premium adjustment table contained in the Forage
Seeding Crop Insurance Policy has been omitted from the proposed Forage
Seeding Crop Provisions. Information regarding good experience
discounts is now contained in the Special Provisions. The adverse
experience premium adjustment has been removed. These changes provide
consistency with all other crops containing premium experience
discounts.
2. Section 1--Add definitions for the terms ``days,'' ``FSA,''
``fall planted,'' ``final planting date,'' ``forage,'' ``good farming
practices,'' ``interplanted,'' ``irrigated practice,'' ``late
harvest,'' ``normal stand,'' ``nurse crop,'' ``planted acreage,''
``practical to replant,'' ``spring planted,'' and ``written agreement''
for clarification purposes. Revise the definition for the term
``harvest'' to specify that acreage that is grazed will not be
considered harvested because it is impossible to determine the
production for grazed acreage so insurance coverage is not provided for
acreage that is grown for the purpose of grazing. The term ``reseed''
has been changed to ``replant'' and made consistent with other annual
crop provisions. Current regulations allow an insured to reseed at not
less than 50 percent (50%) of the original seeding rate. The revised
definition specifies
[[Page 2057]]
that 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. This change provides consistency with the
replanting provisions of other annual crop provisions.
3. Section 2--Provides guidelines for optional unit division of
forage seeding basic units that are consistent with other annual crop
provisions.
4. 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 type and practice for all the
forage seeding planted in the county that is insured under the policy.
The amounts of insurance the insured chooses for each type and practice
must have the same percentage relationship to the maximum amount of
insurance offered by FCIC for each type and practice.
5. Section 4--The contract change date has been changed to November
30 for all counties that currently have April 15 cancellation and
termination dates. This change is made to maintain an adequate time
period between this date and the revised cancellation dates to permit
the insured to make informed insurance decisions.
6. Section 5--The cancellation and termination dates have been
changed to March 15 in states and counties that currently have April 15
dates. These changes are made to standardize the cancellation and
termination dates with the sales closing dates. The sales closing dates
were amended to comply with the requirement of the Federal Crop
Insurance Reform Act of 1994 that spring seeded crop sales closing
dates be 30 days earlier than previously. Also added Nevada to the
forage seeding crop provisions for both spring and fall planted forage.
7. Section 6(c)--Clarify that any forage seeding crop that is grown
with the intent to be grazed, or grazed at any time during the
insurance period, will not be insured.
8. Section 6(d)--Add provisions to allow coverage for forage
seeding that is interplanted with another crop if allowed by the
Special Provisions or by written agreement. The provisions provide
coverage for more acreage and may reduce the need for protection under
the non-insured disaster assistance program.
9. Section 7--Clarify that any acreage damaged prior to the final
planting date, to the extent that such acreage has less than a normal
stand, must be replanted unless the insurer agrees that it is not
practical to replant.
10. Section 8--State that harvest is one event that ends the
insurance period, unless the Special Provisions contain a late harvest
date, or if harvest occurs after the late harvest date, shown in the
Special Provisions. Also the date grazing commences and abandonment of
the insured crop were added as events that end the insurance period.
11. Section 9(h)--Add failure of the irrigation water supply as an
insurable cause of loss, if such failure was caused by an insured peril
that occurs during the insurance period. This change standardizes these
crop provisions with other crop provisions.
12. Section 12--Modify claim for indemnity calculations to
recognize separate amounts of insurance for each type and practice
within the same unit.
13. 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
application for and duration of written agreements.
List of Subjects in 7 CFR Parts 414 and 457
Crop insurance, Forage seeding regulations, Forage seeding.
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 414 and
457, effective for the 1998 and succeeding crop years, as follows:
PART 414--FORAGE SEEDING CROP INSURANCE REGULATIONS--REGULATIONS
FOR THE 1981 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 414 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(p).
2. The subpart heading preceeding Sec. 414.1 is revised to read as
follows:
Subpart--Regulations for the 1981 through 1997 Crop Year
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: 7 U.S.C. 1501(l) and 1506(p).
5. 7 CFR part 457 is amended by adding a new Sec. 457.151 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 any 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--Seeded perennial alfalfa, perennial red clover,
perennial grasses, or a mixture thereof, 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 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
[[Page 2058]]
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.
Late harvest--Harvest that occurs after the date listed in the
Special Provisions.
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
replace 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) A unit as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), a (basic unit), will be divided 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 premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(e) All optional units established for a 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 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 (100%) of the maximum amount of insurance for
a specific type and practice, you must also choose 100 percent
(100%) 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
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New Hampshire, New York, Pennsylvania, July 31
Vermont, Nevada.
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
seeding 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, or replanted the calendar year following
planting to establish a 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) 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;
[[Page 2059]]
(c) Final adjustment of a loss on a unit;
(d) Abandonment of the insured crop;
(e) The date grazing commences on the insured crop; or
(f) 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 (75%) 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 (50%) of the amount of indemnity determined in accordance
with section 12(a).
(c) No replanting payment will be made on acreage for which one
replanting payment has already been allowed for the crop year.
(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 of section 12(a)(1);
(3) Multiplying the total of the acres with an established stand
plus 10 percent (10%) of the planted acres for the insured acreage
of each type and practice in the unit by the amount of insurance for
the applicable type and practice;
(4) Totaling the results of section 12(a)(3);
(5) Subtracting the result of section 12(a)(4) from the result
of section 12(a)(2); and
(6) Multiplying the result of section 12(a)(5) by your share.
(b) The acres with an established stand will include:
(1) Acreage that has at least 75 percent (75%) 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 (50%) if the stand is less than 75 percent (75%) but more
than 55 percent (55%) 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 January 10, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-1014 Filed 1-14-97; 8:45 am]
BILLING CODE 3410-FA-P
