[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Proposed Rules]
[Pages 52717-52727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25640]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 61, No. 196 / Tuesday, October 8, 1996 /
Proposed Rules
[[Page 52717]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 407
RIN 0563-AB06
Group Risk Plan of Insurance
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to add
regulations to provide for the operation of an alternative risk
management tool to be known as the Group Risk Plan of Insurance (GRP).
This plan will insure against the widespread loss of production of
certain crops in a county. It is intended primarily for use by those
producers whose yields tend to follow the county average yield. GRP
pays only when the average yield of the entire county drops below the
expected county yield for the insured crop as set by the FCIC. Payment
is based on the percentage of decline in a county or area wide yield
below the insured's trigger yield. The insured need not have a loss to
collect an indemnity. Alternately, the insured may have a loss and not
collect an indemnity.
DATES: Written comments, data, and opinions on this proposed rule will
be accepted until close of business November 22, 1996, 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 December 6, 1996.
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, USDA, 14th and
Independence Avenue, S.W., Washington D.C., 8:15 am to 4:45 pm, EST,
Monday through Friday, except holidays.
FOR FURTHER INFORMATION CONTACT: William Klein, Program Analyst,
Research and Development Division, Product Development Branch, FCIC, at
the Kansas City, MO address listed above. Telephone (816) 926-7730. For
a copy of the Cost-Benefit Analysis to the GRP, contact David
Winningham, Advisory and Corporate Operations Staff, Regulatory Review
Group, Farm Service Agency, P.O. Box 2415, AG Box 0570, United States
Department of Agriculture, Washington, D.C. 20250, telephone (202) 720-
5457.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be significant for the purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget (OMB). The sunset review date established for
these regulations is January 1, 2001.
Cost Benefit Analysis
A Cost Benefit Analysis has been completed and is available to
interested persons at the address listed above. In summary, the
analysis finds that the expected benefits associated with this proposed
regulation outweigh the costs. Producers have a risk management program
available in GRP, which offers lower deductibles and in many cases,
requires lower premiums. GRP provides benefits to the Government,
taxpayers, and producers because it costs less to administer. Program
costs are dependent on the total premium (premium per acre multiplied
by the number of acres), and the premium per acre for GRP is lower than
it is for APH-MPCI. In addition, under the GRP plan expense
reimbursement to private companies is lower than under APH-MPCI because
GRP does not require individual yield histories or individual loss
adjustments. For the 1997 crop year the expense reimbursement is 27
percent of the total premium for GRP and 29 percent for APH-MPCI.
These regulations eliminate preliminary payments, a feature of the
pilot program, which will further reduce FCIC's administrative costs
and the additional costs incurred when NASS is required to provide
early yield estimates. GRP Basic and Crop Provisions do not contain
APH, prevented planting, or loss adjustment requirements. A loss
situation is triggered only when the NASS county yield for the crop
year is less than the expected county average yield, regardless of
whether or not the individual producer experiences a loss of
production. Because adverse selection and moral hazard are not
significant problems with GRP, FCIC losses will likely be minimal over
the long run.
Paperwork Reduction Act of 1995
A Paperwork Reduction Package has been prepared to add the GRP
Provisions to the Catastrophic Risk Plan (CAT) and Related
Requirements. The CAT regulations were previously approved by OMB
pursuant to the predecessor of the Paperwork Reduction Act of 1995 (44
U.S.C., chapter 35) under OMB control number 0563-0003 through
September 30, 1998.
The information to be collected includes: a crop insurance acreage
report, an insurance application and continuous contract. Information
collected from the acreage report and application is electronically
submitted to FCIC by the reinsured companies. Potential respondents to
this information collection are producers of GRP crops that are
eligible for Federal crop insurance.
The information requested is necessary for the insurance company
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. For this rule, the reporting
burden for collection of information is estimated to average 16.9
minutes per response for each of the 2.0 responses from approximately
15,637 respondents. The total annual burden on the public for this
information collection is 25,760 hours.
The comment period for information collections under the Paperwork
Reduction Act of 1995 continues 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)
[[Page 52718]]
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 should be submitted to the Desk Officer for Agriculture,
Office of Information and Regulatory Affairs, Office of Management and
Budget, Washington, D.C. 20503 and to Bonnie Hart, USDA, FSA, Advisory
and Corporate Operations Staff, Regulatory Review Group, P.O. Box 2415,
Ag Box 0572, Washington, D.C. 20013-2415, telephone (202) 690-2857.
Copies of the information collection may be obtained from Bonnie Hart
at the above address.
The Office of Management and Budget (OMB) is required to make a
decision concerning the collection(s) 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 its 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 Mandate Reform Act of 1995
Title II of the Unfunded Mandate 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 12612
It has been determined under section 6(a) of Executive Order 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 provisions in this rule will not impact
small entities to a greater extent than large entities. The amount of
work required of the insurance companies and the FSA offices delivering
these policies and the procedures therein will not increase from the
amount of work currently required to deliver previous policies to which
this regulation applies. In fact, this action reduces the paperwork
burden on the producer and the reinsured company because the yield is
based on National Agricultural Statistics Service (NASS) yields rather
than individual producer's yields. 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 12372
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.
Executive Order 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 in 7 CFR parts 11 and 780 must be exhausted before
action for judicial review may be brought against FCIC.
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.
Background
The GRP program was established as a pilot program to test the
market acceptance of a crop insurance product that establishes coverage
using NASS county average yields rather than individual yields. It was
designed to provide greater coverage for the insured's premium dollar.
This product is less costly to administer than traditional crop
insurance, and as a result, it helped to solve the problem of a costly
administrative burden to the government. The Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66) and the Federal Crop
Insurance Reform Act of 1994 (Public Law 103-354) amended the Federal
Crop Insurance Act to authorize full implementation of the program.
The Agricultural Market Transition Act (AMTA) of 1995 set in motion
the phase out of traditional agricultural programs by the year 2002.
GRP is an alternative risk management product designed to provide a
safety net for agricultural producers. During the pilot phase, we
determined that the preliminary payment concept did not provide a
significant benefit to a large number of insureds and was costly to
administer. Consequently we have eliminated preliminary payments in the
draft proposed rule. In addition, we determined that the GRP forage
policy was deficient in that it did not provided coverage for producers
whose forage was harvested through ``rotational grazing''. Our
evaluation revealed that adding the practice of rotational grazing was
an appropriate risk, and we included it as an insurable practice.
FCIC welcomes comments from the public, particularly from producers
and the industry who are affected by GRP provisions on a daily basis.
Ideas which were brought to our attention during the GRP pilot program,
such as adding rotational grazing to the GRP Forage Crop Provisions,
have contributed toward making GRP a better and more user friendly
product.
FCIC hereby proposes regulations for a risk management product to
be known as the Group Risk Plan. The Group Risk Plan Common Policy
Basic Provisions and Crop Provisions for Barley, Corn, Cotton, Forage,
Grain Sorghum, Peanuts, Soybeans and Wheat are proposed to be effective
beginning with the 1998 and succeeding crop years. Group Risk Plan is a
plan of insurance that indemnifies an insured whenever the NASS county
yield for the crop year is less than the expected county average yield
by more than a specified amount. Group Risk Plan provides protection
against loss of crop production that affects a high percentage of the
planted acreage in a county. It was developed for producers whose
average yield from all the fields they farm in a county tends to
increase or decrease in the same manner as the NASS county average
yield. If the relationship of the yields is perfect, both the NASS
county yield and the producer's yields would rise and fall by the same
percentage each year. This is an insurance product for producers who
want protection against catastrophic losses with minimal record
[[Page 52719]]
requirements to establish insurance protection.
List of Subjects in 7 CFR Part 407
Crop insurance, Group Risk Plan, Barley, Corn, Cotton, Forage,
Grain sorghum, Peanut, Soybean, Wheat.
Proposed Rule
For the reasons set out in the preamble, the Federal Crop Insurance
Corporation proposes to add a new part 407 to chapter IV of title 7 of
the Code of Federal Regulations, effective for the 1998 and succeeding
crop years, to read as follows.
PART 407--GROUP RISK PLAN OF INSURANCE; REGULATIONS FOR THE 1998
AND SUCCEEDING CROP YEARS
Sec.
407.1 Applicability.
407.2 Availability of Federal crop insurance.
407.3 Premium rates, amounts of protection, and coverage levels.
407.4 OMB control numbers.
407.5 Creditors.
407.6 Good faith reliance on misrepresentation.
407.7 The contract.
407.8 The application and policy.
407.9 Group Risk Plan Common Policy.
407.10 Group risk plan for barley.
407.11 Group risk plan for corn.
407.12 Group risk plan for cotton.
407.13 Group risk plan for forage.
407.14 Group risk plan for grain sorghum.
407.15 Group risk plan for peanut.
407.16 Group risk plan for soybean.
407.17 Group risk plan for wheat.
Authority: 7 U.S.C. 1506(1), 1506(p).
Sec. 407.1 Applicability.
The provisions of this part are applicable only to those crops and
crop years for which a Crop Provision is contained in this part.
Sec. 407.2 Availability of Federal Crop insurance.
(a) Insurance shall be offered under the provisions of this part on
the insured crop in counties within the limits prescribed by and in
accordance with the provisions of the Federal Crop Insurance Act, as
amended (7 U.S.C. 1501 et seq.) (the Act). The crops and counties shall
be designated by the Manager of the Federal Crop Insurance Corporation
(Corporation) from those approved by the Board of Directors of the
Corporation.
(b) The insurance may be offered through companies reinsured by the
Corporation under the same terms and conditions as the contract
contained in this part. These contracts are clearly identified as being
reinsured by the Corporation. Additionally, this provision may be
offered by means other than through reinsured companies. The contract
contained in this part may be offered directly to producers through
agents of the Farm Service Agency (FSA). Those contracts are
specifically identified as being offered by the Corporation.
(c) No person may have in force more than one insurance policy
issued or reinsured by the Corporation on the same crop for the same
crop year, in the same county, unless specifically approved in writing
by the Corporation.
(d) If a person has more than one contract under the Act
outstanding on the same crop for the same crop year, in the same
county, that have not been properly approved by the Corporation, all
such contracts shall be voided for that crop year and the person will
be liable for the premium on all contracts, unless the person can show
to the satisfaction of the Corporation that the two policies of
insurance were inadvertent and without the fault of the person.
(e) If the unapproved multiple contracts of insurance are shown to
be inadvertent, and without the fault of the insured, the contract with
the earliest application will be valid and all other contracts on that
crop in the county for that crop year will be canceled. No liability
for indemnity or premium will attach to the contracts so canceled.
(f) The person must repay all amounts received in violation of this
section with interest at the rate contained in the contract (see
Sec. 407.8, paragraph 21).
(g) A person whose contract with the Corporation or with a company
reinsured by the Corporation under the Act has been terminated because
of violation of the terms of the contract is not eligible to obtain
crop insurance under the Act with the Corporation or with a company
reinsured by the Corporation unless the person can show that the
termination was improper and should not result in subsequent
ineligibility.
(h) All applicants for insurance under the Act must advise the
insurance provider, in writing, at the time of application, of any
previous applications for insurance or policies of insurance under the
Act and the present status of any such applications or insurance.
Sec. 407.3 Premium rates, amounts of protection, and coverage levels.
(a) The Manager of the Corporation shall establish premium rates,
amounts of protection, and coverage levels for the insured crop that
will be included in the actuarial table on file in the insurance
provider's office for the county. Premium rates, amounts of protection,
and coverage levels may be changed from year to year.
(b) At the time the application for insurance is made, the person
must elect an amount of protection and a coverage level from among
those contained in the actuarial table for the crop year.
Sec. 407.4 OMB control numbers.
The information collection activity associated with this rule has
been previously approved by the Office of Management and Budget (OMB)
under control number 0563-0003.
Sec. 407.5 Creditors.
An interest of a person in an insured crop existing by virtue of a
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary
transfer or other similar interest shall not entitle the holder of the
interest to any benefit under the contract.
Sec. 407.6 Good faith reliance on misrepresentation.
(a) Notwithstanding any other provision of the crop insurance
contract, whenever:
(1) A person entering into a contract of crop insurance under these
regulations who, as a result of a misrepresentation or other erroneous
action or advice by an agent or employee of the Corporation:
(i) Is indebted to the Corporation for additional premiums; or
(ii) Has suffered a loss to a crop which is not insured or for
which the person is not entitled to an indemnity because of failure to
comply with the terms of the insurance contract, but which the person
believed to be insured, or believed the terms of the insurance contract
to have been complied with or waived; and
(2) The Board of Directors of the Corporation, or the Manager in
cases involving not more than $100,000.00, finds that:
(i) An agent or employee of the Corporation made such
misrepresentation or took other erroneous action or gave erroneous
advice;
(ii) Said person relied thereon in good faith and acted thereon to
the person's detriment; and
(iii) To require the payment of the additional premiums or to deny
such person's entitlement to the indemnity would not be fair and
equitable, such insured shall be granted relief the same as if
otherwise entitled thereto.
(b) The following apply to FCIC Policy only: Requests for relief
under this section must be submitted to the Corporation in writing. The
[[Page 52720]]
Corporation's reviewing officers must refer such application for relief
to the Manager or Board of Directors of the Corporation for
determination as to whether to grant relief. The Corporation's
reviewing officers do not have authority to grant relief under this
section.
(c) The following apply to Reinsured Policy only: The reinsured
companies shall use arbitration, in accordance with the rules of the
American Arbitration Association, under contracts for insurance issued
by them under the Act to grant relief under the same terms and
conditions as contained in this section or may establish procedures to
administratively handle relief in accordance with such terms and
conditions. Granting relief under this section does not absolve the
reinsured company from liability to the Corporation for any
unauthorized acts of its agents.
Sec. 407.7 The contract.
The insurance contract shall become effective upon the acceptance
by the Corporation or the reinsured company of a duly executed
application for insurance on a form prescribed or approved by the
Corporation. The contract shall consist of the accepted application,
policy, crop provisions, Special Provisions, Actuarial Table, and any
amendments, endorsements, or options thereto. Changes made in the
contract shall not affect its continuity from year to year. Except as
may be allowed under Sec. 407.6, and at the sole discretion of the
Corporation, no indemnity shall be paid unless the person complies with
all terms and conditions of the contract. The forms required under this
part and by the contract are available at the office of the insurance
provider.
Sec. 407.8 The application and policy.
(a) Application for insurance, on a form prescribed or approved by
the Corporation, must be made by any person who wishes to participate
in the program in order to cover such person's share in the insured
crop as landlord, owner-operator, crop ownership interest, or tenant.
No other person's interest in the crop may be insured under the
application. The application must be submitted to the Corporation or
the reinsured company through a crop insurance provider, and must be
submitted on or before the applicable sales closing date on file in the
insurance provider's local office.
(b) The Corporation or the reinsured company may reject or no
longer accept applications upon the Corporation's determination that
the insurance risk is excessive. The Manager of the Corporation is
authorized in any crop year to extend the sales closing date for
submitting applications, unless prohibited by law, upon determining
that the probability and severity of claims will not increase because
of the extension, by placing the extended date on file in the insurance
provider's office and publishing a notice in the Federal Register. If
adverse conditions should develop during the extended period, the
Corporation will require the insurance provider to immediately
discontinue acceptance of applications.
(c) Since this Group Risk Plan differs significantly from
traditional multiple peril crop insurance (MPCI), persons who purchase
the Group Risk Plan and their insurance providers will be required to
execute a disclaimer explaining that: the final Group Risk Plan
indemnity payment, if any, will be made after the Group Risk Plan
premium is received; a person may have a low yield on his or her
individual farm and still not receive a payment under Group Risk Plan;
and a person may not have any loss of production and still collect
under the policy if a loss of production is general in the area. By
executing this disclaimer, the insured certifies that he or she
understands:
(1) The Terms of the Group Risk Plan;
(2) A MPCI policy is available in the county; and
(3) A separate Group Risk Plan and MPCI policy cannot be purchased
on the same crop by the same person in the same county for the same
crop year.
Sec. 407.9 Group Risk Plan Common Policy.
United States Department of Agriculture Group Risk Plan Common Policy
(This is a continuous policy. Refer to Provision 16.)
[FCIC Policies]
This insurance policy establishes a risk management program
developed by the Federal Crop Insurance Corporation (FCIC), an
agency of the United States Government, under the authority of the
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.)
(Act). All terms of the policy and rights and responsibilities of
the parties hereto are subject to the Act and all regulations under
the Act published in chapter IV of 7 CFR, and may not be waived or
varied in any way by the crop insurance agent, or any other agent or
employee of FCIC or the Farm Service Agency (FSA).
Throughout this policy, ``you'' and ``your'' refer to the person
shown on the accepted application and ``we,'' ``us'' and ``our''
refer to the Federal Crop Insurance Corporation. Unless the context
indicates otherwise, the use of the plural form of a word includes
the singular use and the singular form of the word includes the
plural.
[Reinsured Policies]
This insurance policy establishes a risk management program
created by the Federal Crop Insurance Corporation (FCIC), an agency
of the United States Government under the authority of the Federal
Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.)
This insurance policy is reinsured by FCIC under the provisions
of the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et
seq.) (Act). All terms of the policy and rights and responsibilities
of the parties are subject to the Act and all regulations under the
Act published in chapter IV of 7 CFR, and may not be waived or
varied in any way by the crop insurance agent, or any other agent or
employee of the company.
Throughout this policy, ``you'' and ``your'' refer to the person
shown on the accepted application and ``we,'' ``us'' and ``our''
refer to the reinsured company issuing this policy. Unless the
context indicates otherwise, the use of the plural form of a word
includes the singular use and the singular form of the word includes
the plural.
[Both Policies]
The Group Risk Plan of Insurance (GRP) is designed as a risk
management tool to insure against widespread loss of production of
the insured crop in a county. It is primarily intended for use by
those producers whose farm yields tend to follow the average county
yield. It is possible for you to have a low yield on the acreage
that you farm and still not receive a payment under this plan.
For limited or additional coverage you may select any percent
coverage level shown on the Actuarial Table. Multiplying your
coverage level percent by the expected county yield shown on the
Actuarial Table gives your trigger yield. If the payment yield that
FCIC publishes for the insured crop year falls below your trigger
yield, you will receive a payment.
You may select any dollar amount of protection between 60 and
100 percent of the maximum dollar amount of protection shown on the
Actuarial Table. This protection will be provided for each acre of
the crop planted (unless otherwise provided in the crop provisions)
in which you have a share, by the acreage reporting date.
In accordance with the Act, the Government will pay a portion of
your premium, as published in the Actuarial Table. The premium
rates, practices, types, maximum protection per acre, and maximum
subsidy per acre are also shown on the Actuarial Table.
FCIC will issue the payment yield in the calendar year following
the crop year insured. This yield will be the official estimated
yield published by the National Agricultural Statistics Service
(NASS), or successor agency. You will be paid if the payment yield
falls below your trigger yield. The amount of your payment per net
insured acre will be calculated by subtracting the payment yield
from the trigger yield, dividing that quantity by the trigger yield,
and multiplying that result by your protection per acre for each net
acre that you have insured.
To be eligible to participate in the Group Risk Plan of
Insurance for any crop in any
[[Page 52721]]
county, and to receive an indemnity thereunder, you must have an
insurable interest in an insured crop that is planted in the county
shown on the approved application. The crop must be planted for
harvest and be reported to us by the acreage reporting date. You may
only purchase coverage under the Group Risk Plan of Insurance on
your net acres of the insured crop.
The insurance contract shall become effective upon the
acceptance by us of a duly executed application for insurance on our
form. Acceptance occurs when we issue a Summary of Protection to
you. The policy shall consist of the accepted application, Group
Risk Plan of Insurance Common Policy Basic Provisions, Crop
Provisions, Special Provisions, Actuarial Table, and any amendments,
endorsements, or options.
Agreement To Insure
In return for your payment of the premium and your compliance
with all applicable provisions, we agree to provide risk protection
as stated in this policy. If a conflict exists among the Group Risk
Plan Basic Provisions, the Crop Provisions, and the Special
Provisions, the Special Provisions will control the Crop Provisions
and the Group Risk Plan Basic Provisions; and the Crop Provisions
will control the Group Risk Plan Basic Provisions.
Terms and Conditions--Group Risk Plan of Insurance Basic Provisions
1. Definitions
Acreage report--A document that you must submit annually by the
acreage reporting date, which contains the acreage planted to each
insured crop, whether or not insurable, your report of your share of
the insured crop, and any other information required by your
insurance provider.
Acreage reporting date--The date contained in the Special
Provisions by which you must submit your acreage report in order to
be eligible for Group Risk Insurance.
Act--Federal Crop Insurance Act, as amended.
Actuarial Table--The forms and related material approved by
FCIC, which are available for public inspection in your insurance
provider's local office. The Actuarial Table shows the maximum
protection per acre, expected county yield, coverage levels, premium
rates, program dates, Special Provisions, and other related
information with respect to the insured crop in the county for the
crop year.
Billing date--The date, contained in the Actuarial Table, by
which we will bill you for premium on the insured crop.
Cancellation date--The calendar date specified in each Crop
Provision on which insurance for the next crop year will
automatically renew unless the policy is canceled in writing by
either you or us prior to that date.
County--A political subdivision of a State (also may be known as
a parish or other name) that is stated on your accepted application.
Crop practice--The combination of inputs such as fertilizer,
herbicide, and pesticide, and operations such as planting,
cultivation, and irrigation, used to produce the insured crop. The
insurable practices are contained in the Actuarial Table.
Crop provisions--The part of the policy that contains the
specific terms of insurance for each insured crop.
Crop year--The period of time within which the insured crop is
normally grown, and is designated by the calendar year in which the
crop is normally harvested.
Expected county yield--The yield contained in the Actuarial
Table, on which your coverage for the crop year is based. This yield
is determined using historical NASS county average yields, adjusted
for long term yield trends.
FCIC--The Federal Crop Insurance Corporation, an agency of USDA.
FSA--The Farm Service Agency or successor agency, USDA.
GRP--Group Risk Plan of Insurance.
Insurance provider--A private insurance company approved by FCIC
which provides crop insurance coverage to producers participating in
any Federal crop insurance program administered under the Act.
MPCI--Multiple peril crop insurance offered under the authority
of the Act.
NASS--National Agricultural Statistics Service of the USDA or
its successor, which publishes the official United States Government
yield estimates.
Net acres--The planted acreage of the insured crop multiplied by
your share.
Payment yield--The yield determined by FCIC based on NASS yields
for each insurable crop's type and practice, and used to determine
whether an indemnity will be due.
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.
Protection per acre--The dollar amount per acre selected by you
for each insured crop practice and type specified in the Actuarial
Table. Your protection per acre is shown on your Summary of
Protection.
Sales closing date--The date contained in the Actuarial Table by
which you must file your signed application with us.
Share--Your percentage of interest in the insured crop, as an
owner, operator, or tenant. Premium will be determined on your share
as of the acreage reporting date. Any indemnity which may be due
will be determined based on your share on the acreage reporting date
or on the date of harvest, whichever is less. You may insure only
your share of the crop, which may include any share of your spouse
and dependent children unless it is demonstrated to our
satisfaction, prior to the sales closing date, that the farming
operations of you and your spouse are maintained completely separate
and apart from each other and that each spouse is the operator of
his or her own separate operation. Any commingling of any part of
the operations will cause shares of you and your spouse to be
combined.
Special Provisions--The part of the Actuarial Table that
contains specific provisions of insurance for each crop that may
vary by geographic area.
Subsidy--The portion of your premium, shown as minimum and
maximum amounts in the Actuarial Table, that the Government will pay
in accordance with the Act.
Summary of Protection--Our statement to you of the crop insured,
protection per acre, premiums, and other information obtained from
your accepted application, acreage report, and the Actuarial Table.
Termination date--The calendar date contained in the Crop
Provisions upon which insurance on your crop will cease due to your
failure to pay premiums or any other amount you owe us.
Trigger yield--The result of multiplying the expected county
yield by the coverage level percentage chosen by you. When the
payment yield falls below the trigger yield, a payment is made.
Type--Plants of the insured crop having common traits or
characteristics that distinguish them as a group or class, and which
are designated in the Actuarial Table.
USDA--United States Department of Agriculture.
2. Insured Crop
The insured crop will be the crop shown on your accepted
application and as specified in the applicable crop provisions, and
must be grown on insurable acreage.
3. Insured and Insurable Acreage
(a) The insurable acreage is all of the acreage of the insured
crop for which premium rates are provided by the Actuarial Table and
in which you have an interest and which acreage is in the county or
counties listed in your accepted application. The protection per
acre, amount of premium, and indemnity will be calculated separately
for each county, type, and practice.
(b) Only the acreage planted to the insured crop on or before
the acreage reporting date (except forage) and physically located in
the county or counties listed on your accepted application will be
insured. Crops grown on acreage physically located in another county
must be reported and insured separately.
(c) We will not insure any crop grown on any acreage where the
crop was destroyed or put to another use during the insurance period
for the purpose of conforming with, or obtaining a payment under,
any other program administered by the USDA.
(d) We will not insure any acreage where you have failed to
follow good farming practices for the insured crop.
4. Policy Protection
(a) For catastrophic risk protection GRP policies, the dollar
amount of protection per acre is shown on the Actuarial Table for
each insured crop, practice, and type. For limited and additional
coverage GRP policies, you may select any percentage of the maximum
amount of protection per acre shown on the Actuarial Table for the
crop, practice, and type.
(b) The dollar amount of protection per acre, multiplied by your
net insured acreage, is your policy protection for each insured
crop, practice, and type specified in the Actuarial Table.
5. Coverage Levels
(a) For catastrophic risk protection GRP policies, the coverage
level is shown on the Actuarial Table for each insured crop,
[[Page 52722]]
practice, and type. For limited and additional coverage GRP
policies, you may select any percentage of coverage shown on the
Actuarial Table for the crop, practice, and type.
(b) Your coverage level multiplied by the expected county yield
shown on the Actuarial Table is your trigger yield. If the payment
yield, published by FCIC for the insured crop, practice, and type
for the insured crop year falls below your trigger yield, you will
receive an indemnity payment.
6. Payment Calculation Factor
Your payment calculation factor will be ((your trigger yield--
payment yield)your trigger yield) for the purposes of
calculating the final payment.
7. Report of Acreage and Share
(a) You must report on our form all acreage for each insured
crop, practice, and type specified in the Actuarial Table in each
county listed on your accepted application in which you have a
share. This report must be submitted each year on or before the
acreage reporting date for the insured crop contained in the
Actuarial Table. If you do not submit an acreage report by the
acreage reporting date, we may determine your acreage and share or
deny liability on the policy.
(b) We will not insure any acreage of the insured crop planted
after the acreage reporting date.
(c) Your premium will be based on the acreage reported as of the
acreage reporting date or the acreage determined by us.
(d) The payment of an indemnity will be based on your insurable
acreage on the acreage reporting date or the date of harvest,
whichever is less. If the insurable acreage at the date of harvest
is less than the insurable acreage on the acreage report, a revised
acreage report will be required prior to the payment of an
indemnity. Neither the amount of acreage or your share may be
revised to increase your policy protection.
(e) If you misrepresent any information, we may revise the
premium or liability or both for each insured crop in the county, by
type and practice to the amount we determine to be correct.
8. Administrative Fees and Annual Premium
(a) If you obtain a catastrophic risk protection GRP policy, you
will pay an administrative fee of $50 per crop per county, not to
exceed $200 per producer per county up to a maximum of $600 per
producer, at the time of application. For continuous catastrophic
risk protection policies in effect, the administrative fee will be
paid on or before the acreage reporting date.
(b) If you obtain a limited coverage GRP policy, you will pay an
administrative fee of $50 per crop per county, not to exceed $200
per county up to a maximum of $600 per producer. The administrative
fee will be payable under the same terms and conditions as the
premium for the policy.
(c) If you obtain an additional coverage GRP policy, you will
pay an administrative fee of $10 for each crop. The administrative
fee will be payable under the same terms and conditions as the
premium for the policy.
(d) For limited and additional coverage GRP policies, your
premium is determined by multiplying your policy protection times
the premium rate per hundred dollars of protection for your coverage
level, times 0.01, less the applicable subsidy.
(e) The annual premium is earned and payable at the time the
insured crop is planted. For each insured crop, you will be billed
for premium by the billing date specified in the Special Provisions.
Premium is due on the billing date and interest will accrue if the
premium is not received by us before the first day of the month
following the premium billing date.
(f) The premium due, plus any accrued interest, will be
considered delinquent if any amount due us is not received by us on
or before the termination date listed in the crop provisions. This
may affect your eligibility for benefits under other USDA programs.
A debt for any crop insured with us under the authority of the Act
will be deducted from any replant payment, indemnity due you for any
other crop insured with us.
(g) Failure to pay the premium due, plus any accrued interest
and penalties, by the termination date will make you ineligible for
any crop insurance under the Act for subsequent crop years until the
debt, including interest and penalties, is paid.
9. Written Agreements
As specified in the Crop Provisions, designated terms of the
policy may be altered by written agreement. Each written agreement
must be applied for by the producer in writing prior to the sales
closing date and is valid for one year only. If not specifically
renewed the following year, continuous insurance will be in
accordance with the printed policy. All applications for written
agreements as submitted by the producer must contain all variable
terms of the contract between the insurance provider and the
producer that will be in effect if the written agreement is not
approved.
10. Access to Insured Crop and Record Retention
We may examine the insured crop and any records relating to the
crop and this insurance at any location where such crop or such
records may be found or maintained, as often as we reasonably
require. Records relating to the planting of the insured crop and
your net acres must be retained for three years after the end of the
crop year or three years after the date of payment of the final
indemnity, whichever is later. Failure to maintain such records may,
at our option, result in cancellation of the policy or determination
that no indemnity is due.
11. Transfer of Right to Indemnity
If you transfer any part of your share during the crop year, you
also may transfer the equivalent part of your right to payment under
this policy. Any transfer must be on our form and is effective upon
our written approval. Both you and the person to whom you transfer
your right are jointly and severally liable for payment of the
premium.
12. Assignment of Indemnity
You may assign your right to an indemnity payment to another
person for the current crop year. The assignment must be on our form
and is effective upon our written approval.
13. Other Insurance
You may not obtain any other crop insurance product subsidized
under the Act for the insured crop in the counties listed on your
accepted application. If we determine that there is more than one
policy in effect that covers your share, the policy with the
earliest application date will be in effect and all later policies
will be void.
[FCIC Policy]
14. Suit Against Us
You cannot bring suit against us unless you have complied with
all of the policy provisions and exhausted all administrative
remedies. Any suit based on denial of a claim must be brought within
one year after the date on which final notice of denial of the claim
is provided to you. Any suit brought against us based on the denial
of a claim must be brought in the United States district court in
the district where your insured farm is located.
[Reinsured Policy]
14. Suit Against Us
You cannot bring suit against us unless you have complied with
all of the policy provisions. If you do file suit against us based
on the denial of a claim, you must do so within one (1) year of the
final notice of denial of the claim.
[FCIC Policy]
15. Restrictions, Limitations, and Amounts Due Us
(a) We may restrict the amount of acreage we will insure to the
amount allowed under any acreage limitation program established by
the USDA.
(b) Violation of Federal statutes including, but not limited to,
the Act; the Food Security Act of 1985; the Food, Agriculture,
Conservation, and Trade Act of 1990; and the Omnibus Budget
Reconciliation Act of 1993, and any regulation promulgated
thereunder, will result in cancellation, termination, or voidance of
your crop insurance contract. You must repay any and all monies paid
to you or received by you, and the amount of premium you paid less
up to 30 percent for administrative expenses will be refunded to
you.
(c) Our maximum liability under this policy will be limited to
the policy protection specified in section 4 of this policy. Under
no circumstances will we be liable for the payment of damages
(compensatory, punitive, or other), attorney's fees, or other
charges in connection with any claim for indemnity, whether we
approve or disapprove such indemnity.
(d) Any delinquent amount due us may be deducted from any loan
or payment due you under any Act of Congress or program administered
by the USDA or its agencies or from any amount due you from any
other United States Government agency.
(e) Interest will accrue at the rate not to exceed one and one-
quarter percent (1\1/4\%) simple interest per calendar month, or any
part thereof, on any unpaid premium
[[Page 52723]]
balance. Interest will begin to accrue on the first day of the month
following the billing date.
(f) We will pay simple interest computed on the net indemnity
ultimately found to be due by us or determined by a final judgment
of a court of competent jurisdiction or a final administrative
determination from, and including, the 61st day after the date we
receive the NASS county yield estimates for the insured crop year.
Interest will be paid only if the reason for our failure to timely
pay is not due to your failure to provide information or other
material necessary for the computation or payment of the indemnity.
The interest rate will be that established by the Secretary of the
Treasury under section 12 of the Contract Disputes Act of 1978 (41
U.S.C. 611), and published in the Federal Register.
(g) For repayment of indemnities found not to have been earned,
interest will start to accrue on the date that notice for the
collection of the unearned amount is issued to you. Interest on the
unearned amount will not be charged if payment is made in full
within 30 days after the date shown on the notice issued to you.
Interest and penalties will be charged in accordance with 31 U.S.C.
3717 and 4 CFR part 102. The penalty for accounts more than 90 days
past due is six percent (6%) per annum. See 31 U.S.C. 3717(e)(2) and
4 CFR 122.13(e). Interest on any amount due us found to have been
received by you because of fraud, misrepresentation, or presentation
of a false claim by you will start on the date you received the
amount, with the 6 percent (6%) penalty beginning 31days after the
notice of amount due. This interest is in addition to any other
amount found to be due under any other Federal criminal or civil
statute.
(h) If we determine that it is necessary to contract with a
collection agency or to employ an attorney to assist in collection,
you agree to pay all of the expenses of collection.
(i) All amounts paid will be applied first to the expenses of
collection, second to any penalties which may have been assessed,
then to accrued interest, and finally, to reduction of the principal
balance.
[Reinsured Policy]
15. Restrictions, Limitations, and Amounts Due Us
(a) We may restrict the amount of acreage we will insure to the
amount allowed under any acreage limitation program established by
the USDA.
(b) Violation of Federal statutes including, but not limited to,
the Act; the Food Security Act of 1985; the Food, Agriculture,
Conservation, and Trade Act of 1990; and the Omnibus Budget
Reconciliation Act of 1993, and any regulation promulgated
thereunder, will result in cancellation, termination, or voidance of
your insurance contract. You must repay any and all monies paid to
you or received by you, and the amount of premium you paid less 30
percent for administrative expenses will be refunded.
(c) Our maximum liability under this policy will be limited to
the policy protection specified in section 4 of this policy. Under
no circumstances will we be liable for the payment of other amounts
including compensatory, punitive, or other damages, attorney's fees,
or other charges in connection with any claim for indemnity, whether
we approve or disapprove such indemnity.
(d) For repayment of amounts found not to have been earned, such
as overpaid indemnities, interest will start to accrue on the date
notice for the collection of the unearned amount is issued to you.
Interest on unearned amounts will not be charged if payment in full
is made within 30 days after the date shown on the notice issued to
you. For premium amounts due us, interest will start to accrue on
the first day of the month following the premium billing date
specified in the Special Provisions. Interest not to exceed one and
one-quarter percent (1\1/4\%) simple interest per calendar month,
will be charged on unearned indemnities and on past-due premium.
(e) If we determine that it is necessary to contract with a
collection agency or to employ an attorney to assist in collection,
you agree to pay all of the expenses of collection.
(f) All amounts paid will be applied first to the payment of
expenses of collection, second to reduction of any penalties which
may have been assessed, then to reduction of accrued interest, and,
finally, to reduction of the principal balance.
[Both Policies]
16. Death, Disappearance, or Incompetence of the Insured
If, after insurance attaches, you die, disappear, or are
judicially declared incompetent, or if you are a person other than
an individual and such person is dissolved, any payment due will be
paid to the person legally determined to be beneficially entitled to
it. If such events occur prior to the attachment of insurance, the
policy will terminate as of the date of death, judicial declaration,
or dissolution.
[FCIC Policy]
17. Determinations
All determinations required by the policy will be made by us. If
you disagree with our determinations, you may obtain reconsideration
or you may appeal our determinations in accordance with 7 CFR parts
11 and 780.
[Reinsured Policy]
17. Determinations
If a dispute arises out of or relates to this policy, at the
election of either of us, such dispute shall be settled by
arbitration in accordance with the rules of the American Arbitration
Association. If arbitration is elected by either party, no suit at
law or in equity based on such disputes shall be instituted by
either party, other than to enforce the decision in arbitration.
[Both Policies]
18. Holidays and Weekends
If any date specified in this program falls on Saturday, Sunday,
or a legal Federal holiday, then the date will be extended to the
next business day.
19. Life of Policy and Policy Renewal
(a) This is a continuous policy that remains in effect unless it
is canceled in writing by either you or us on or before the
cancellation date.
(b) This policy will automatically terminate for the subsequent
crop year if you have not paid any amount due us by the termination
date.
(c) You may change the coverage level or amount of protection
for each insured crop on or before the sales closing date. Changes
must be in writing and received by us by the sales closing date.
(d) The cancellation and termination dates are contained in the
Crop Provisions for each insured crop.
20. Policy Changes
We may change any terms and conditions of this policy from year
to year. All policy changes will be filed in your insurance
provider's office before the contract change date for the insured
crop contained in the Crop Provisions. You will be advised of policy
changes by written notice mailed to the address of record contained
in your insurance provider's office. This notice will be mailed as
soon after the contract change date as practical.
An Example To Demonstrate How GRP Works
Producer A buys ninety percent (90%) coverage and selects $160
protection per acre. Producer B buys seventy-five percent (75%)
coverage and selects $185 protection per acre. Both producers have
one-hundred percent (100%) share and both plant 200 acres of a crop
in the county. The expected county yield is 45 bushels. The premium
rate for ninety percent (90%) coverage is $6.14 per hundred dollars
of protection and the premium rate for seventy-five percent (75%)
coverage is $3.30 per hundred dollars of protection. The maximum
subsidy amount per acre is $3.07 and the limited subsidy amount is
$2.21 per acre.
A's trigger yield is 40.5 bushels per acre (90% of 45), and the
total premium due is $1,965 ($160 multiplied by $6.14 multiplied by
200 acres multiplied by 0.01). Of that amount, FCIC pays $614 (200
acres multiplied by the maximum subsidy of $3.07 per acre). A's
policy protection is $32,000 ($160 multiplied by 200 acres). B's
trigger yield is 33.8 bushels per acre (75% of 45), and the total
premium due is $1,221 ($185 multiplied by $3.30 multiplied by 200
acres multiplied by 0.01). Of that amount, FCIC pays $442 (200 acres
multiplied by the limited subsidy amount of $2.21 per acre). B's
policy protection is $37,000 ( $185 multiplied by 200 acres).
Scenario 1 (Likely)
FCIC issues a payment yield of 46 bushels per acre. This is
above both producers' trigger yields, so no indemnity payment is
made, even if one or both of them have low individual yields.
Scenario 2 (Less Likely)
FCIC issues a payment yield of 38 bushels per acre. A's payment
calculation factor is 0.062 ((40.5-38)40.5)). This number
[[Page 52724]]
multiplied by the policy protection yields an indemnity payment of
$1,984 (.062 multiplied by $32,000). B's trigger yield is below the
payment yield, so no indemnity payment is made.
Scenario 3 (Least Likely)
FCIC issues a payment yield of 22 bushels per acre. A's payment
calculation-factor of 0.457 ((40.5-22)40.5). The payment is
$14,624 (0.457 multiplied by $32,000). B's payment calculation
factor is 0.349 ((33.8-22)33.8), and the final indemnity
payment is $12,913 (0.349 multiplied by $37,000).
[Both Policies]
21. Eligibility for Other Farm Program Benefits
If GRP, or any other plan of insurance, is available in the
county, to remain eligible for benefits under the Agriculture
Marketing Transition Act, the conservation reserve program, or
certain farm loans, you are required to obtain at least the
catastrophic level of either GRP or such other insurance for all
crops of economic significance or execute a waiver of your rights to
any emergency crop assistance on or before the sales closing date
for the crop.
Sec. 407.10 Group Risk Plan for Barley.
1. Definitions
Harvest--Combining or threshing the barley for grain.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of barley in the county by the NASS estimate of
the acres of barley for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of barley are used to establish the expected county
yield and calculate indemnities.
Planted Acreage--Land in which the barley 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 which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth, will also be considered planted.
2. Crop Insured
The insured crop will be all barley:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested as grain; and
(d) Not planted into an established grass or legume,
interplanted with another crop, or planted as a nurse crop, unless
seeded at the normal rate and intended for harvest as grain.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to the April 1
following the crop year.
(c) We will issue any payment to you prior to the May 1
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Kit Carson, Lincoln, Elbert, El Paso, September 30............................ June 30.
Pueblo, Las Animas Counties, Colorado
and all Colorado Counties south and
east thereof; all New Mexico counties
except Taos County; Kansas; Missouri;
Illinois; Indiana; Ohio; Pennsylvania;
New York; Massachusetts; and all states
south and east thereof.
Arizona; California; and Clark and Nye October 31.............................. June 30.
Counties, Nevada.
All Colorado counties except Kit Carson, March 15................................ November 30.
Lincoln, Elbert, EL Paso, Pueblo, and
Las Animas Counties and all Colorado
counties south and east thereof; all
Nevada counties except Clark and Nye
Counties; Taos County, New Mexico; and
all other states except: Arizona,
California, and (except) Kansas,
Missouri, Illinois, Indiana, Ohio,
Pennsylvania, New York, and
Massachusetts and all States south and
east thereof.
----------------------------------------------------------------------------------------------------------------
Sec. 407.11 Group Risk Plan for Corn.
1. Definitions
Harvest--Combining or picking corn for grain, or severing the
stalk from the land and chopping the stalk and ear for the purpose
of livestock feed.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of corn in the county by the NASS estimate of the
acres of corn, for each type and practice contained in the Actuarial
Table. The Actuarial Table states whether harvested or planted acres
of corn are used to establish the expected county yield and
calculate indemnities.
Planted acreage--Land in which the corn 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.
2. Crop Insured
The insured crop will be all field corn:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested as grain or silage;
and
(d) Not planted into an established grass or legume or
interplanted with another crop.
Hybrid seed corn, popcorn, sweet corn, and other specialty corn
may be insured only if a written agreement exists between you and
us. Your request to insure such crop must be in writing and
submitted to your agent not later than the sales closing date.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to April 16
following the crop year.
(c) We will issue any payment to you prior to the May 16
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, January 15.............................. November 30.
Bexar, Wilson, Karnes, Goliad,
Victoria, and Jackson Counties, Texas,
and all Texas counties lying south
thereof.
El Paso, Hudspeth, Culberson, Reeves, February 15............................. November 30.
Loving, Winkler, Ector, Upton, Reagan,
Sterling, Coke, Tom Green, Concho,
McCulloch, San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant, Wise, and
Cooke Counties, Texas, and all Texas
Counties lying south and east thereof
to and including Terrell, Crockett,
Sutton, Kimble, Gillespie, Blanco,
Comal, Guadalupe, Gonzales, De Witt,
Lavaca, Colorado, Wharton, and
Matagorda Counties, Texas.
[[Page 52725]]
Alabama; Arizona; Arkansas; California; February 28............................. November 30.
Florida; Georgia; Louisiana;
Mississippi; Nevada; North Carolina;
South Carolina.
All other Texas counties and all other March 15................................ November 30.
states.
----------------------------------------------------------------------------------------------------------------
Sec. 407.12 Group Risk Plan for Cotton.
1. Definitions
Harvest--Removal of the seed cotton from the stalk.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of cotton in the county by the NASS estimate of
the acres of cotton, for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of cotton are used to establish the expected county
yield and calculate indemnities.
Planted acreage--Land in which the cotton 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.
2. Crop Insured
The insured crop will be all cotton:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested; and
(d) Not colored lint cotton planted into an established grass or
legume, interplanted with another spring planted crop, grown on
acreage where hay was harvested in the same calendar year unless
irrigated, grown on acreage where a small grain crop reached the
heading stage unless irrigated.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to July 16 following
the crop year.
(c) We will issue any payment to you prior to the August 16
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, January 15.............................. November 30.
Bexar, Wilson, Karnes, Goliad,
Victoria, and Jackson Counties, Texas,
and all Texas counties lying south
thereof.
Alabama; Arizona; Arkansas; California; February 28............................. November 30.
Florida; Georgia; Louisiana;
Mississippi; Nevada; North Carolina;
South Carolina; El Paso, Hudspeth,
Culberson, Reeves, Loving, Winkler,
Ector, Upton, Reagan, Sterling, Coke,
Tom Green, Concho, McCulloch, San Saba,
Mills, Hamilton, Bosque, Johnson,
Tarrant, Wise, and Cooke Counties,
Texas, and all Texas counties lying
south and east thereof to and including
Terrell, Crockett, Sutton, Kimble,
Gillespie, Blanco, Comal, Guadalupe,
Gonzales, De Witt, Lavaca, Colorado,
Wharton, and Matagorda Counties, Texas.
All other Texas counties and all other March 15................................ November 30.
States.
----------------------------------------------------------------------------------------------------------------
Sec. 407.13 Group Risk Plan for Forage.
1. Definitions
Harvest--Removal of the forage from the field, and rotational
grazing.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of the crop practice and type shown on the
Actuarial Table for this purpose by the NASS estimate of the acres
of such crop harvested that year in the county, for each practice
and type contained in the Actuarial Table.
Planted acreage--Land seeded to forage, by a planting method
appropriate for forage, into a properly prepared seedbed.
Rotational grazing--The defoliation of the insured forage by
livestock, within a pasturing system where the forage field is
subdivided into smaller parcels and livestock are moved from one
area to another, allowing a period of grazing followed by a period
for forage regrowth.
2. Crop Insured
The insured crop will be the forage types shown on the Special
Provisions:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Intended for harvest; and
(d) Not grown with another crop.
3. Insurable Acreage
In lieu of section 3. (Insured and Insurable Acreage) of the
Basic Provisions of the Group Risk Plan Common Policy (Sec. 407.9),
only acreage seeded to forage on or before July 1 of the previous
crop year and physically located in the counties listed on your
application will be insurable. Acreage physically located in another
county not listed on the accepted application is not insured under
this policy.
4. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to May 1 following
the crop year.
(c) We will issue any payment to you prior to the May 31
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
5. Program Dates
November 30 is the Cancellation and Termination Date for all
States. The Contract Change Date is June 30 for all States.
6. Annual Premium
In lieu of Provision 6(b) of the Basic Provisions of the Group
Risk Plan Common Policy, the annual premium is earned and payable on
the acreage reporting date. You will be billed for premium due on
the date shown in the Special Provisions. The premium will be
determined based on the rate shown on the Actuarial Table.
Sec. 407.14 Group Risk Plan for Sorghum.
1. Definitions
Harvest--Combining or threshing the sorghum for grain, or
severing the stalk from the land and chopping the stalk and head for
the purpose of livestock feed.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of sorghum in the county by the NASS estimate of
the acres of sorghum, for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of sorghum are used to establish the expected county
yield and calculate indemnities.
Planted acreage--Land in which the sorghum seed has been placed
by a machine
[[Page 52726]]
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.
2. Crop Insured
The insured crop will be all sorghum:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested as grain or silage;
and
(d) Not interplanted with an established grass or legume or
interplanted with another crop.
Hybrid sorghum seed may be insured only if a written agreement
exists between you and us. Your request to insure such crop must be
in writing and submitted to your agent not later than the sales
closing date.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to April 16
following the crop year.
(c) We will issue any payment to you prior to the May 16
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, January 15.............................. November 30.
Bexar, Wilson, Karnes, Goliad,
Victoria, and Jackson Counties, Texas,
and all Texas counties lying south
thereof.
El Paso, Hudspeth, Culberson, Reeves, February 15............................. November 30.
Loving, Winkler, Ector, Upton, Reagan,
Sterling, Coke, Tom Green, Concho,
McCulloch, San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant, Wise, Cooke
Counties, Texas, and all Texas counties
south and east thereof to and including
Terrell, Crockett, Sutton, Kimble,
Gillespie, Blanco, Comal, Guadalupe,
Gonzales, De Witt, Lavaca, Colorado,
Wharton, and Matagorda Counties, Texas.
Alabama; Arizona; Arkansas; California; February 28............................. November 30.
Florida; Georgia; Louisiana;
Mississippi; Nevada; North Carolina;
and South Carolina.
All other Texas counties and all other March 15................................ November 30.
states.
----------------------------------------------------------------------------------------------------------------
Sec. 407.15 Group Risk Plan for Peanuts.
1. Definitions
Harvest--Combining or threshing the peanuts.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of peanuts in the county by the NASS estimate of
the acres of peanuts, for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of peanuts are used to establish the expected county
yield and calculate indemnities.
Planted acreage--Land in which the peanut 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.
2. Crop Insured
The insured crop will be all peanuts:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
and
(c) Planted with the intent to be harvested as peanuts.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to June 16 following
the crop year.
(c) We will issue any payment to you prior to the July 16
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and County Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live January 15.............................. November 30.
Oak, McMullen, La Salle, and Dimmit
Counties, Texas and all Texas Counties
lying south thereof..
El Paso, Hudspeth, Culberson, Reeves, February 28............................. November 30.
Loving, Winkler, Ector, Upton, Reagan,
Sterling, Coke, Tom Green, Concho,
McCulloch, San Saba, Mills, Hamilton,
Bosque, Johnson, Tarrant, Wise, Cooke
Counties, Texas, and all Texas counties
south and east thereof; and all other
states.
New Mexico; Oklahoma; and all other March 15................................ November 30.
Texas Counties.
----------------------------------------------------------------------------------------------------------------
Sec. 407.16 Group Risk Plan for Soybeans.
1. Definitions
Harvest--Combining or threshing the soybeans.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of soybeans in the county by the NASS estimate of
the acres of soybeans, for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of soybeans are used to establish the expected county
yield and calculate the indemnities.
Planted acreage--Land in which the soybean 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 which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth, will also be considered planted.
2. Crop Insured
The insured crop will be all soybeans:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested as soybeans; and
[[Page 52727]]
(d) Not planted into an established grass or legume or
interplanted with another crop.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to April 16
following the crop year.
(c) We will issue any payment to you prior to the May 16
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified on the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live February 15............................. November 30.
Oak, McMullen, La Salle, and Dimmit
Counties, Texas and all Texas counties
lying south thereof.
Alabama; Arizona; Arkansas; California; February 28............................. November 30.
Florida; Georgia; Louisiana;
Mississippi; Nevada; North Carolina;
South Carolina; and El Paso, Hudspeth,
Culberson, Reeves, Loving, Winkler,
Ector, Upton, Reagan, Sterling, Coke,
Tom Green, Concho, McCulloch, San Saba,
Mills, Hamilton, Bosque, Johnson,
Tarrant, Wise, and Cooke Counties,
Texas, and all Texas counties lying
south and east thereof to and including
Maverick, Zavala, Frio, Atascosa,
Karnes, De Witt, Lavaca, Colorado,
Wharton, and Matagorda Counties, Texas.
All other Texas counties and all other March 15................................ November 30.
states.
----------------------------------------------------------------------------------------------------------------
Sec. 407.17 Group Risk Plan For Wheat.
1. Definitions
Harvest--Combining or threshing the wheat for grain.
NASS yield--The yield calculated by dividing the NASS estimate
of the production of wheat in the county by the NASS estimate of the
acres of wheat, for each type and practice contained in the
Actuarial Table. The Actuarial Table states whether harvested or
planted acres of wheat are used to establish the expected county
yield and calculate indemnities.
Planted acreage--Land in which the wheat seed has been planted
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 which
subsequently is mechanically incorporated into the soil in a timely
manner and at the proper depth, will also be considered planted.
2. Crop Insured
The insured crop will be all wheat:
(a) Grown on insurable acreage in the county or counties listed
in the accepted application;
(b) Properly planted and reported by the acreage reporting date;
(c) Planted with the intent to be harvested as grain; and
(d) Not planted into an established grass or legume,
interplanted with another crop, or planted as a nurse crop, unless
seeded at the normal rate and intended for harvest as grain.
3. Payment
(a) A payment will not be made unless your trigger yield is less
than the payment yield for the insured crop year.
(b) Payment yields will be determined prior to April 1 following
the crop year.
(c) We will issue any payment to you prior to the May 1
immediately following our determination of the payment yield.
(d) The payment is equal to the payment calculation factor
multiplied by your policy protection for each insured crop practice
and type specified in the Actuarial Table.
(e) The payment will not be revised even though the NASS yield
may be subsequently revised.
4. Program Dates
----------------------------------------------------------------------------------------------------------------
State and county Cancellation and termination dates Contract change date
----------------------------------------------------------------------------------------------------------------
All Colorado counties except Alamosa, September 30............................ June 30.
Conejos, Costilla, Rio Grande, and
Saguache; all Montana counties except
Daniels, Roosevelt, Sheridan, and
Valley Counties; all South Dakota
counties except Harding, Perkins,
Corson, Walworth, Edmunds, Faulk,
Spink, Beadle, Kingsbury, Miner,
McCook, Turner, and Yankton Counties
and all South Dakota counties north and
east thereof; all Wyoming counties
except Big Horn, Fremont, Hot Springs,
Park, and Washakie Counties; and all
other states except Alaska, Arizona,
California, Maine, Minnesota, Nevada,
New Hampshire, North Dakota, Utah, and
Vermont.
Arizona; California; Nevada; and Utah... October 31.............................. June 30.
Alaska; Alamosa, Conejos, Costilla, Rio March 15................................ November 30.
Grande, and Saguache Counties,
Colorado; Maine; Minnesota; Daniels,
Roosevelt, Sheridan, and Valley
Counties, Montana; New Hampshire; North
Dakota; Harding, Perkins, Corson,
Walworth, Edmunds, Faulk, Spink,
Beadle, Kingsbury, Miner, McCook,
Turner, and Yankton Counties South
Dakota, and all South Dakota counties
north and east thereof; Vermont; and
Big Horn, Fremont, Hot Springs, Park,
and Washakie Counties, Wyoming.
----------------------------------------------------------------------------------------------------------------
Signed in Washington, DC, on October 1, 1996.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 96-25640 Filed 10-07-96; 8:45 am]
BILLING CODE 3410-FA-P
