[Federal Register Volume 60, Number 4 (Friday, January 6, 1995)]
[Rules and Regulations]
[Pages 1996-2000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-358]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
Subpart T--Federal Crop Insurance Reform Act of 1994; Regulations
for Implementation
RIN 0563-AB11
AGENCY: Federal Crop Insurance Corporation.
ACTION: Interim rule.
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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby
amends its General Administrative Regulations located at 7 CFR part 400
by adding subpart T. The intended effect of this interim rule is to
provide noninsured producers, policyholders and insurance companies the
policies and regulations applicable to the Catastrophic Risk Protection
Program and provide other changes in FCIC insurance programs to comply
with the statutory mandates of the Federal Crop Insurance Act as
amended by the Federal Crop Insurance Reform Act of 1994.
DATES: This rule is effective January 6, 1995. Written comments, data,
and opinions on this rule will be accepted until close of business
March 7, 1995 and will be considered when the rule is to be made final.
ADDRESSES: Written comments, data, and opinion on this interim rule
should be sent to Diana Moslak, Regulatory and Procedural Development
Staff, Federal Crop Insurance Corporation, USDA, Washington, D.C.
20250. Hand or messenger delivery may be made to Suite 500, 2101 L
Street, N.W., Washington D.C. Written comments will be available for
public inspection and copying in the Office of the Manager, 2101 L
Street, N.W., 5th Floor, Washington, D.C., during regular business
hours, Monday through Friday.
FOR FURTHER INFORMATION CONTACT: For further information and a copy of
the Regulatory Impact Analysis to the regulations for implementation of
the Federal Crop Insurance Reform Act of 1994, contact Diana Moslak,
Federal Crop Insurance Corporation, U.S. Department of Agriculture,
Washington, D.C. 20250. Telephone (202) 254-8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under United
States Department of Agriculture (``USDA'') procedures established by
Executive Order 12866 and Departmental Regulation 1512-1. This action
constitutes a review as to the need, currency, clarity, and
effectiveness of these regulations under those procedures. The sunset
review date established for these regulations is December 1, 1999.
This rule has been determined to be ``economically significant''
for the purposes of Executive Order 12866, and therefore, has been
reviewed by the Office of Management and Budget (``OMB'').
A Regulatory Impact Analysis has been completed and is available to
interested persons at the address listed above. In summary, the
analysis finds that crop insurance reform generally is expected to
result in net positive benefits to producers, taxpayers, and society.
The effects on individual producers compared to payments under ad hoc
disaster programs depends primarily on the farm program payment yield
compared to the farm's actual yield and market prices. In general,
however, the reform is expected to result in less volatility of
producer's incomes and lesser risk of no income due to adverse weather
events. Rural communities and farmers will benefit from the certainty
of payments in times of catastrophic yield losses. The Government and
taxpayers will benefit from a single disaster protection program and
consequent reduced Federal outlays. Although some producers (previous
non-participants in crop insurance) will have an added burden to make
application and report yields and acreage, the benefits in terms of
greater risk protection outweigh the costs.
The information collection and record-keeping requirements set
forth in this interim rule have been submitted to OMB for emergency
clearance under 7 CFR part 402.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implication to warrant the preparation of a Federalism Assessment. The
provisions and procedures 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.
Under the Regulatory Flexibility Act (5 U.S.C. Sec. 605), this
regulation will not have a significant impact on a substantial number
of small entities. Producers will be able to certify to their
historical production levels at the time of application based on
existing records, or they may elect to base their insurance on assigned
yields, which will not require maintenance of production records by the
insurance agent. The [[Page 1997]] amount of data collected by the
agent for new insureds is not greater than the amount of data collected
for existing insureds. Insureds may elect to keep production records to
increase the amount of production covered by insurance but such
production is not required to participate in the program. The benefits
in terms of risk reduction and protection from severe losses will out-
weigh any record-keeping costs. Therefore, this action is determined to
be exempt from the provisions of the Regulatory Flexibility Act and no
Regulatory Flexibility Analysis was prepared.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
This program is not subject to the provisions of Executive Order
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.
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in subsections 2(a)
and 2(b)(2) of Executive Order 12778. 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 located
at 7 CFR part 400, subpart J, and for catastrophic risk protection
contracts of insurance delivered through local USDA offices, the
National Appeal Division administrative appeal provisions under the
Department of Agriculture Reorganization Act of 1994 must be exhausted
before judicial action may be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
This interim rule implements programs mandated by the amendments to
the Federal Crop Insurance Act by the Federal Crop Insurance Reform Act
of 1994. Those amendments required that the statutory changes be
implemented for the 1995 crop year. All of the contract change dates
and many of the sales closing dates for 1995 insured crops have passed
or will soon pass. Many of the changes contained in these regulations
are mandated by statute. Planting decisions for 1995 crops have been or
will shortly be made and it is necessary that producers, lenders, and
suppliers know the parameters and requirements of the program.
Therefore, it is impractical and contrary to the public interest to
publish this rule for notice and comment prior to making the rule
effective. However, comments are solicited for 60 days after the date
of publication in the Federal Register and will be considered by FCIC
before this rule is made final.
On October 13, 1994, the amendments to the Federal Crop Insurance
Act made by the Federal Crop Insurance Reform Act of 1994, were
effective. This regulation will provide the policy and procedures to
carry out the insurance requirements of the Reform Act. A separate part
will be issued to address noninsured assistance.
List of Subjects in 7 CFR Part 400, Subpart T
General administrative regulations, Federal Crop Insurance Reform
Act of 1994, Insurance.
Interim Rule
For the reasons set out in the preamble, a new subpart T is added
to 7 CFR part 400, effective for the 1995 and succeeding crop years, to
read as follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
Subpart T--Federal Crop Insurance Reform Act of 1994, Insurance
Implementation; Regulations for the 1995 and Subsequent Crop Years
Sec.
400.650 Purpose.
400.651 Definitions.
400.652 Insurance availability.
400.653 Application and acreage report.
400.654 Coverage provided.
400.655 Administrative fees and waivers.
400.656 Eligibility for other program benefits.
400.657 Coverage for acreage that is prevented from being planted.
400.658 Transitional yield for forage or feed crops, 1995-1997 crop
years.
Authority: 7 U.S.C. 1506(l).
Sec. 400.650 Purpose.
The Federal Crop Insurance Act as amended by the Federal Crop
Insurance Reform Act of 1994 (the ``Act'') requires the Federal Crop
Insurance Corporation (``FCIC'') to implement a crop insurance program
which offers several levels of insurance coverage for producers. These
levels of protection include catastrophic risk protection, limited
coverage and additional coverage insurance. This subpart provides
notice of the availability of these new crop insurance options and
establishes provisions and requirements for implementation of the
insurance provisions of the Act. The regulations for the noninsured
assistance provisions of the Act will be published elsewhere in chapter
IV.
Sec. 400.651 Definitions.
(a) Additional coverage--A plan of crop insurance providing a level
of coverage equal to or greater than sixty-five percent (65%) of the
approved yield indemnified at one-hundred percent (100%) of the
expected market price or comparable coverage as established by FCIC.
(b) Approved insurance provider--A private insurance company,
including their agents, that has been approved and reinsured by FCIC to
provide insurance coverage to producers participating in the Federal
crop insurance program.
(c) Approved yield--The average amount of production per acre
obtained under FCIC's Actual Production History Program (7 CFR part
400, subpart G) using production records of the insured or yields
assigned by FCIC. At least four crop years of yields must be averaged
to obtain the approved yield.
(d) Catastrophic risk protection endorsement--The part of the crop
insurance policy that contains provisions of insurance that are
specific to catastrophic risk protection.
(e) Catastrophic risk protection--The minimal level of coverage
offered by FCIC, which is required before a person may qualify for
certain other United States Department of Agriculture (``USDA'')
program benefits. For the 1995 through 1998 crop years, such coverage
will be equal to fifty percent (50%) of the approved yield indemnified
at sixty percent (60%) of the expected market price, or a comparable
coverage as established by FCIC. For the 1999 and subsequent crop
years, such coverage will be equal to fifty percent (50%) of the
approved yield indemnified at fifty-five percent (55%) of the expected
market price, or a comparable coverage as established by FCIC.
(f) Crop of economic significance--A crop that has either
contributed in the previous crop year, or is expected to contribute in
the current crop year, ten percent (10%) or more of the total expected
value of your share of all crops grown by the producer in the county.
However, notwithstanding the preceding sentence, if the total expected
liability under the catastrophic risk protection endorsement is equal
to or less than the administrative fee required for the crop, such crop
will not be considered a crop of economic significance.
(g) FCIC--The Federal Crop Insurance Corporation, a wholly owned
Government Corporation within the [[Page 1998]] Consolidated Farm
Services Agency, USDA.
(h) Limited coverage--A plan of insurance offering coverage that is
equal to or greater than fifty percent (50%) of the approved yield
indemnified at one hundred percent (100%) of the expected market price,
or a comparable coverage as established by FCIC, but less than sixty-
five percent (65%) of the approved yield indemnified at one hundred
percent (100%) of the expected market price, or a comparable coverage
as established by FCIC.
(i) Limited resource farmer--A producer or operator of a small or
family farm, including a new producer or operator, with an annual gross
income of less than $20,000 derived from all sources of revenue for
each of the prior two years and who demonstrates a need to maximize
farm income. Notwithstanding the preceding sentence, a producer on a
farm of less than 25 acres aggregated for all crops, where the producer
derives a majority of the producer's gross income from the farm, but
the producer's gross income from farming operations does not exceed
$20,000, will be considered a limited resource farmer.
(j) Person--An individual, partnership, association, corporation,
estate, trust, or other legal entity, and wherever applicable, a state
or a political subdivision or agency of a state.
(k) Secretary--The Secretary of the United States Department of
Agriculture.
Sec. 400.652 Insurance availability.
(a) If sufficient actuarial data are available FCIC will offer
catastrophic risk protection, limited, and additional coverage plans of
insurance to indemnify persons for FCIC insured or reinsured crop loss
due to loss of yield or prevented planting, if the crop loss or
prevented planting is due to an insured cause of loss specified in the
applicable crop insurance policy.
(b) Catastrophic risk protection coverage will be offered through
approved insurance providers and through local offices of the
Consolidated Farm Service Agency, USDA. Limited and additional coverage
will only be offered through approved insurance providers unless
approved insurance providers are not available.
(c) To obtain catastrophic risk protection coverage on a crop, a
person must obtain catastrophic risk protection coverage for the crop
on all insurable acreage in the county. Catastrophic risk protection
coverage must be obtained on or before the sales closing date
designated by FCIC for the crop in the county.
(d) Effective for the 1995 crop year only, and only for
catastrophic risk protection, notwithstanding any provision in any crop
insurance policy, reinsured by FCIC, the sales closing dates will be as
follows:
(1) For those crops for which insurance attached before January 1,
1995, the sales closing date will be the latest sales closing date for
spring planted crops in the county as long as such sales closing date
is not later than April 12, 1995;
(2) For those crops for which insurance attached after January 1,
1995, and have a sales closing date prior to February 15, 1995, the
sales closing date will be February 15, 1995; and
(3) For all other spring planted crops, the sales closing date will
remain as specified in the policy.
(e) For limited and additional coverage, in areas where insurance
is not available for a particular agricultural commodity, FCIC may
offer to enter into a written agreement with a person to insure the
commodity, if the person has actuarially sound data relating to the
production of the commodity that is acceptable to FCIC and if such
written agreement is specifically allowed by the crop insurance
regulations applicable to the crop.
(f) A person who made timely purchase of a crop insurance policy on
a 1995 or subsequent crop before October 13, 1994, the date of
enactment of the Federal Crop Insurance Reform Act of 1994, may
continue with the purchased policy under the terms and conditions of
that policy but will receive whatever benefits would be available under
that policy if it had been purchased subsequent to the date of
enactment. However, if the level of coverage is less than the coverage
under the catastrophic risk protection coverage, the insured must
either upgrade that coverage to at least catastrophic risk protection
coverage or lose eligibility for certain farm program benefits as set
out in Sec. 400.656.
Sec. 400.653 Application and acreage report.
(a) To participate in catastrophic risk protection, limited, or
additional coverage plans of insurance, a person must submit an
application for insurance on or before the applicable sales closing
date.
(b) In order to remain eligible for certain farm programs, as set
out in Sec. 400.656, a producer must obtain at least catastrophic risk
protection coverage on all crops of economic significance if
catastrophic risk protection is available. Notwithstanding the
requirement contained in Sec. 400.653 (a), if the insured is not able
to plant a crop for which coverage has been obtained, FCIC may, at its
discretion, determine that conditions exist that would permit the
person to insure alternative crops to those specified on the
application. If FCIC determines that such conditions exist, the insured
may insure the alternative crops by making application for catastrophic
risk protection coverage on the alternative crops after the sales
closing date but before the acreage reporting date for the alternative
crops and paying the appropriate administrative fee. Limited or
additional coverage is not available after the sales closing date.
(c) For catastrophic risk protection, limited, and additional
coverage, FCIC may allow the insured to certify the insured's actual
production history (``APH'') yield. If FCIC permits certification of
the APH yield by the insured, the insured must, at the request of FCIC
or the approved insurance provider, provide verifiable records of
acreage and production acceptable to FCIC for the years for which
production and acreage were certified. If FCIC or the approved
insurance provider determine that inadequate records exist to
substantiate the certified yield, FCIC will, in addition to any civil
fraud or criminal penalties which may exist for false certification,
recalculate the APH yield using assigned yields for the crop years
represented by the inadequate records.
(d) For all coverages including catastrophic risk protection,
limited, and additional coverages, the insured must file a signed
acreage report on or before the acreage reporting date.
Sec. 400.654 Coverage provided.
(a) The specific causes of loss insured against are designated in
the crop insurance policy for the applicable crop.
(b) An indemnity paid to a producer may be reduced to reflect out-
of-pocket expenses that were not incurred by the producer as a result
of not planting, caring for, or harvesting the crop.
(c) Catastrophic risk protection.
(1) A person who is eligible to receive an indemnity under a
catastrophic risk protection plan of insurance and is also eligible to
receive benefits for the same loss under other USDA programs must elect
the program from which they wish to receive benefits. Only one payment
or program benefit will be allowed.
(2) Catastrophic risk protection must be elected on a crop basis
unless the Catastrophic Risk Protection Endorsement allows individual
crop types or varieties to be considered separate crops. However, any
acreage of [[Page 1999]] an insured crop that is designated by FCIC as
``high risk land'' may be insured under catastrophic risk protection if
limited or additional coverage is obtained for all insurable acreage of
the insured crop in the county that is not designated as ``high risk
land''; Provided that, the insured executes the High Risk Land
Exclusion Option under the limited or additional coverage policy. The
catastrophic risk protection policy must be obtained from the same
insurance provider from which the limited or additional coverage is
obtained.
(3) Catastrophic risk protection may, on a commodity-by-commodity
basis, be elected on an individual yield and loss basis, or, where
offered, may be elected on an area yield and loss basis.
(4) Any person who has a bona fide insurable interest in a crop as
an owner-operator, landlord, tenant, or share-cropper, will be eligible
for catastrophic risk protection coverage.
(5) The Catastrophic Risk Protection Endorsement contains coverage
limitations and exclusions, including but not limited to:
(i) Coverage is available by basic units only. A basic unit is all
the acreage of the crop in the county in which the insured has a one-
hundred percent (100%) crop share or all the acreage of the crop in the
county owned by one person and operated by another person on a share
basis (unless otherwise provided by the Catastrophic Risk Protection
Endorsement);
(ii) No replant payments will be paid whether or not replanting of
the crop is required under the policy;
(iii) No policy options or endorsements providing increased
coverage over that provided under the catastrophic risk plan for that
crop will be available unless such option or endorsement is
specifically made applicable to catastrophic coverage by its terms;
(iv) The insured may not exclude coverage for hail and fire or High
Risk Land; and
(v) Written Agreements are not available unless specifically
allowed by the Catastrophic Risk Protection Endorsement.
(d) Limited and additional coverage.
(1) An insured who is eligible to receive an indemnity under a
limited or an additional coverage plan of insurance and who is also
eligible to receive benefits for the same loss under any other USDA
program may receive benefits under both programs unless specifically
limited by the crop insurance policy. However, the total amount
received for the loss will not exceed the amount of the actual loss
sustained by the insured. The amount of the actual loss will be the
difference between the fair market value of the production before and
after the loss, as determined by the approved insurance provider based
upon the insureds production records.
(2) Limited and additional coverage must be elected on a crop basis
and cover all insurable acreage of the crop in the county in which the
insured has a share unless:
(i) The applicable crop insurance policy allows the insured to
purchase separate policies of insurance covering individual crop types
or varieties. In such instances, protection may be elected on a crop
type (as designated in the crop insurance policy) or variety basis.
These individual crop types or varieties will be considered separate
crops for insurance purposes, including the payment of administrative
fees. (For example, if two grape varieties grown in California are
insured under a catastrophic risk protection policy and two varieties
are insured under an additional coverage policy, an administrative fee
will be charged for each of the two (2) varieties under the
catastrophic risk protection policy and an administrative fee will be
charged for each of the two (2) varieties under the additional coverage
policy. The same rationale would allow the insured the option to not
insure a crop type or variety. However, failure of the insured to
insure a crop type or variety which is determined to be a crop of
economic significance would make the insured ineligible for certain
other USDA programs.)
(ii) The insured executes the High Risk Land Exclusion Option for a
limited or additional coverage policy. In such cases the insured may
elect to insure the ``high risk land'' under a catastrophic risk
protection policy. If both policies are in force, that acreage of the
crop covered under the limited or additional coverage policy and the
acreage of the crop covered under the catastrophic risk protection
policy will be considered as separate crops for insurance purposes,
including the payment of administrative fees.
(3) Limited or additional coverage may, on a commodity-by-commodity
basis, be elected on an individual yield and loss basis, or, where
offered, on an area yield and loss basis.
(4) Hail and fire coverage may be excluded from the covered causes
of loss in a crop policy if additional coverage is elected.
(5) If a person purchases limited or additional coverage for a
crop, the insured must purchase limited or additional coverage for all
insurable acreage of that crop in the county unless otherwise provided
in this part or in the crop insurance contract.
Sec. 400.655 Administrative fees and waivers.
(a) Catastrophic risk protection and limited coverage.
(1) If the insured elects to obtain catastrophic risk protection or
limited coverage, the insured must pay an administrative fee each year
of fifty dollars ($50.00) per crop, per county, not to exceed two
hundred dollars ($200.00) per county, and six hundred dollars ($600)
for all counties in which the insured has coverage. The insured must
pay this administrative fee at the time of application for the first
year, and by the acreage reporting date for all subsequent years that
crop insurance coverage is in effect. Payment of an administrative fee
will not be required if the insured files a bona fide zero acreage
report on or prior to the acreage reporting date for any year except
the year of application. If the administrative fee is not paid at the
time of application, or by the acreage reporting date, whichever is
applicable, the crop insurance contract will not be in effect for the
crop year for which the fee is due and will terminate, and the person
will not be eligible for certain USDA programs as set out in
Sec. 400.656.
(2) The administrative fee may not be waived unless the insured
qualifies as a limited resource farmer.
(3) The administrative fee will be refunded if the insured has
previously obtained catastrophic risk protection, or limited coverage,
paid the administrative fee, and subsequently purchases additional
coverage for that same crop in the same county on or before the sales
closing date. Administrative fees will be refunded only if the insured
has not purchased catastrophic risk protection and limited coverage in
excess of the maximum administrative fee to be paid in the applicable
situation.
(4) The administrative fee will not be refunded for the year of
application even if the insured files a zero acreage report for that
year.
(5) For limited coverage, the administrative fee is in addition to
the premium amount.
(b) Additional Coverage.
(1) If additional coverage is elected, the insured must pay, in
addition to the premium, an administrative fee of ten dollars ($10) per
crop, per county, each year in which crop insurance coverage remains in
effect. The administrative fee is payable at the time insurance
attaches. If the administrative fee is not paid by the termination date
set out in the crop insurance contract, the crop
[[Page 2000]] insurance contract will be voided and not have been in
effect for the crop year for which the fee is due and will terminate,
and the person failing to pay the fee will not be or have been eligible
for certain other USDA program benefits as set out in Sec. 400.656 and
any of those benefits received for the crop year must be refunded.
(2) The administrative fee for additional coverage is not
refundable and may not be waived.
(c) When obtaining catastrophic risk protection, limited, or
additional coverage, an insured must provide information regarding crop
insurance coverage on any crop previously obtained at any other local
USDA office or from an approved insurance provider, including the date
such insurance was obtained, and the amount paid in administrative
fees. If the insured has paid in excess of the maximum allowable amount
in administrative fees, the insured will receive a refund of the excess
fees paid from the local USDA office or from the approved insurance
provider that collected the excess amount.
Sec. 400.656 Eligibility for other program benefits.
The insured must obtain at least the catastrophic risk protection
level of coverage for each crop of economic significance in the county
in which the insured has an interest, if insurance is available in the
county for the crop, to be eligible for:
(a) Price support and production adjustment programs, including
tobacco, rice, extra long staple cotton, upland cotton, feed grains,
wheat, peanuts, oilseeds, and sugar;
(b) Loans or any other USDA-provided farm credit including
guaranteed and direct farm ownership loans, operating loans, and
emergency loans under the Consolidated Farm and Rural Development Act;
and
(c) The Conservation Reserve Program.
Sec. 400.657 Coverage for acreage that is prevented from being
planted.
(a) 1994 crop year prevented planting for all crops of wheat, feed
grain, cotton, and rice:
(1) For the 1994 crop year only, an insured may receive
compensation for acreage that was prevented from being planted due to
major, widespread flooding in the Midwest, or excessive ground
moisture, that occurred prior to the spring sales closing date for the
1994 crop year.
(2) To be eligible for compensation the insured must have:
(i) Purchased a crop insurance policy containing prevented planting
provisions prior to the spring sales closing date for the 1994 crop
year;
(ii) Had a reasonable expectation of planting the insured crop on
acreage that was eligible for prevented planting coverage under the
terms of the crop insurance contract, (if it is determined that the
acreage eligible for the prevented planting coverage under the terms of
the crop insurance policy would have drained sufficiently to plant the
crop except for additional moisture that occurred in the spring, the
insured will be assumed to have had a reasonable expectation of
planting the crop absent some other intervening cause); and
(iii) Participated in a conserving use program established for the
1994 crop of wheat, feed grains, upland cotton, or rice established
under the Agricultural Act of 1949, whichever is applicable.
(3) FCIC will pay as compensation under the prevented planting
provisions of the crop insurance policy, the difference between:
(i) The amount of any prevented planting payment that would have
been due under the prevented planting provision of the 1994 crop year
crop insurance policy (prevented planting indemnity less premium); and
(ii) The amount paid under the conserving use program for the same
crop and acreage.
(b) 1994 crop year prevented planting for oilseeds:
(1) If the insured satisfies the requirements of section (a)(2) (i)
and (ii), the insured will be eligible for a prevented planting payment
on the oil seed crop.
(2) FCIC will pay as compensation under this prevented planting
provision the amount payable under the prevented planting provision of
the applicable 1994 crop year crop insurance policy (prevented planting
indemnity less premium).
(c) 1995 and succeeding crop year prevented planting coverage:
Effective for the 1995 and subsequent crop years, the insurance
period for prevented planting for those crop insurance policies
containing prevented planting coverage shall be extended so that
prevented planting coverage begins:
(1) On the sales closing date for the insured crop in the county
for the crop year the application for insurance is accepted; or
(2) For any crop year following the crop year the application for
insurance is accepted, or for any crop year the insurance policy is
transferred to a different insurance provider, on the sales closing for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example: If
the insured makes application and purchases a corn crop insurance
policy for the 1995 crop year, prevented planting coverage will begin
on the 1995 sales closing date for corn in the county. If the corn
policy remains in effect for the 1996 crop year (is not terminated or
cancelled during or after the 1995 crop year), or is transferred to a
different insurance provider, prevented planting coverage for the 1996
crop began on the 1995 sales closing date.
Sec. 400.658 Transitional yields for forage or feed crops for the 1995
through 1997 crop years
(a) For the 1995 through the 1997 crop year, insureds who produce
feed or forage may be eligible for an adjustment in the assigned yield
available under Sec. 400.55(b)(1) if:
(1) The feed or forage is primarily for on-farm use in a livestock,
dairy, or poultry operation; and
(2) The insured derives at least fifty percent (50%) of the
insured's net farm income from the livestock, dairy, or poultry
operation.
(b) Insureds that qualify under (a) of this section will receive an
assigned yield, if required, under Sec. 400.55(b)(1) of 80 percent of
the T or D-Yield.
Done in Washington, D.C., on December 21, 1994.
Suzette Dittrich,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-358 Filed 1-3-95; 3:38 pm]
BILLING CODE 3410-08-U
