[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32021]
[[Page Unknown]]
[Federal Register: December 29, 1994]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AA77
Common Crop Insurance Regulations; Sunflower Seed Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby adopts
specific crop provisions for the insurance of sunflower seed. The
provisions will be used in conjunction with the Common Crop Insurance
Policy which contains standard terms and conditions common to most
crops. The intended effect of this rule is to move specific crop
provisions for insuring sunflower seed from the General Crop Insurance
Policy to the Common Crop Insurance Policy for ease of use by the
public and conformance among policy terms.
EFFECTIVE DATE: December 29, 1994.
FOR FURTHER INFORMATION CONTACT: Diana Moslak, Regulatory and
Procedural Development, Federal Crop Insurance Corporation, U.S.
Department of Agriculture, Washington, DC 20250, telephone (202) 254-
8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under 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
March 1, 1999.
This rule has been determined to be ``not significant'' for
purposes of Executive Order 12866, and therefore has not been reviewed
by the Office of Management and Budget (OMB).
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501 et seq.), the information collection or record-keeping
requirements included in this final rule have been approved by OMB and
assigned OMB No. 0563-0016.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this final rule does not have sufficient federalism
implications to warrant the preparation of a federalism assessment. The
policies and procedures contained in this rule will not have
substantial direct effects on states or their political subdivisions,
or on the distribution of power and responsibilities among the various
levels of government.
This action will not have a significant impact on a substantial
number of small entities. The amount of work required of the insurance
companies delivering these policies and the procedures therein will not
increase from the amount required to deliver previous policies. This
rule does not have any greater or lesser impact on the insured.
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 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 or an Environmental Impact
Statement is needed.
Upon publication of the rule, the provisions for insuring sunflower
seed contained herein will supersede the provisions contained in 7 CFR
401.124. The provisions of 7 CFR 401.124 will be amended to restrict
their effect to the crop years prior to 1995.
On Friday, September 23, 1994, FCIC published a proposed rule in
the Federal Register at 59 FR 48827 proposing to revise the Common Crop
Insurance Regulations by adding new provisions for Sunflower Seed crop
insurance.
Following publication of the proposed rule, the public was afforded
30 days to submit written comments, data, and opinions. The comments
received and FCIC responses are as follows:
Comment: One comment received from an insurance association
recommended changing the language in the opening paragraph from
``Common Crop Insurance Provisions'', to ``Basic Provisions'', since
the document the insured receives is entitled ``Basic Provisions'', not
``Common Crop Insurance Policy''.
Response: FCIC agrees with the comment and has changed the proposed
language to read ``Basic Provisions''.
Comment: One comment received from an insurance company questioned
why the sales closing date was not contained in the Sunflower Seed Crop
Insurance Provisions.
Response: Consistent with the other crops which have attached to
the Basic Provisions of the Common Crop Insurance Policy, the
cancellation and termination dates are listed in the Crop Provisions.
The sales closing dates are contained in the crop's Special Provisions.
This allows the Manager of the FCIC greater latitude in extending the
sales closing date when circumstances warrant such a change.
Comment: One comment received from an insurance company questioned
why the 20 acre or 20 percent of a unit requirement was not addressed
in section 10 of the Sunflower Seed Crop Provisions, ``Replanting
Payments''.
Response: These requirements are contained in section 13 of the
Basic Provisions of the Common Crop Insurance Policy, to which the
Sunflower Seed Crop Provisions attach, and therefore, do not need to be
repeated in the Sunflower Seed Crop Provisions.
Comment: One comment received from an insurance association
expressed concern that leaving representative strips solely because the
insured disagrees with the appraisal may subject the program to
possible abuse. In many situations, samples are more susceptible to
loss and do not accurately represent what the entire unit would have
produced.
Response: FCIC disagrees with the comment and believes that the
language in subparagraph 12.(c)(1)(iv)(A) allows the insurer to
determine those situations in which it is reasonable to leave
representative samples to determine the amount of production to be
counted. In cases where it is necessary to defer determinations, the
insured must be advised how production to count will ultimately be
determined, and the consequences of failure to leave or care for the
samples.
Comment: One comment received from an insurance association
questioned whether or not the Special Provisions provide separate
prices for oil and non-oil types of sunflowers, and if so, is the
insured required to select the same percentage of each price?
Response: The Special Provisions indicate that both oil and non-oil
types are insurable but do not contain separate prices by type. This
matter is under consideration and the crop provisions have been
modified.
Comment: One comment received from an insurance company questioned
why test weight pounds are listed in subparagraph 12.(d)(2)(i)(B) for
quality adjustment of non-oil type sunflower seed, but pounds are not
listed for quality adjustment of oil-type sunflower seed in
subparagraph 12.(d)(2)(i)(A).
Response: The Official United States Standards for Grain lists the
minimum test weight for U.S. No. 2 ``sunflower seed'' but does not
differentiate between oil or non-oil types. The FCIC has further
defined minimum test weight for oil and non-oil types. The policy
language refers to the Official United States Grain Standard
requirements for U.S. No. 2 oil type sunflowers, and specifically lists
the minimum pounds per bushel for non-oil types as 22 pounds. Listing
the specific test weight pounds for non-oil sunflowers clearly
identifies the differences in quality adjustment requirements.
Comment: One comment received from an insurance association
suggested that the language in paragraph 12.(d)(3)(iii) regarding the
determination of test weight for quality adjustment be modified. The
sentence presently reads, ``Test weight for quality adjustment purposes
may be determined by our loss adjustor.'' The sentence could give the
indication that only the loss adjuster can determine test weight.
Response: FCIC agrees with the comment and has changed the sentence
to read: ``Test weight for quality adjustment purposes may also be
determined by our loss adjuster.''
In addition to the changes indicated in the responses to comments,
FCIC has made the following changes:
1. Subsection 12.(b) has been modified to allow for settlement of a
claim based on a separate price by type. FCIC has received requests
from interested parties recommending a separate price for
``confectionery type'' sunflowers. The proposed policy language allows
a separate price election by type if the Special Provisions contain
that option.
2. Paragraph 12.(d)(4) has been revised to allow the use of
predetermined quality adjustment discount factors. The use of the
factors will:
(a) Minimize vulnerability to bid-price and local market price
manipulation (and reliance on a third party who is not disinterested)
in establishing quality adjustment factors;
(b) Increase the uniformity of loss adjustment of grain eligible
for quality adjustment; and
(c) Simplify establishing the amount of production in the event
grain is eligible for quality adjustment.
3. Subparagraph 13. (d)(2)(ii) has been revised to extend the
insurance period for prevented planting coverage as required by the
Federal Crop Insurance Reform Act of 1994. The new provisions extend,
for carry-over insureds, the prevented planting coverage to insured
causes occurring in the period from the sales closing date for the crop
year immediately preceding the insured crop year.
The Federal Crop Insurance Act as amended by the Federal Crop
Insurance Reform Act of 1994, is required to be in effect for the 1995
crop year. The contract change date in the policy requires that changes
be filed prior to December 31, 1994, to be effective for the 1995 crop
year. Therefore, good cause is shown to make the rule effective in less
than 30 days.
Accordingly, the rule, ``Common Crop Insurance Regulations;
Sunflower Seed Crop Insurance Provisions'' published at 59 FR 48827 as
revised and set out below is hereby adopted as a final rule.
List of Subjects in 7 CFR Part 457
Crop insurance, Sunflower seed.
Final Rule
For the reasons set out in the preamble, the Federal Crop Insurance
Corporation hereby amends the Common Crop Insurance Regulations, (7 CFR
Part 457), effective for the 1995 and succeeding crop years, as
follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1995 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR Part 457 is revised to read as
follows:
Authority: 7 U.S.C. 1506 (1)
2. 7 CFR Part 457 is amended by adding a new Sec. 457.108,
Sunflower Seed Crop Insurance Provisions, to read as follows:
Sec. 457.108 Sunflower Seed Crop Insurance Provisions.
The Sunflower Seed Crop Insurance Provisions for the 1995 and
succeeding crop years are as follows:
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Sunflower Seed Crop Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these crop provisions, and the Special Provisions, the Special
Provisions will control these crop provisions and the Basic
Provisions; and these crop provisions will control the Basic
Provisions.
1. Definitions
(a) Days--Calendar days.
(b) Final planting date--The date contained in the Special
Provisions for the insured crop by which the crop must initially be
planted in order to be insured for the full production guarantee.
(c) Good farming practices--The cultural practices generally in
use in the county for the crop to make normal progress toward
maturity and produce at least the yield used to determine the
production guarantee and are those recognized by the Cooperative
Extension Service as compatible with agronomic and weather
conditions in the area.
(d) Harvest--Combining or threshing the sunflowers for seed.
(e) Interplanted--Acreage on which two or more crops are planted
in a manner that does not permit separate agronomic maintenance or
harvest of the insured crop.
(f) Irrigated practice--A method of producing a crop by which
water is artificially applied during the growing season by
appropriate systems and at the proper times, with the intention of
providing the quantity of water needed to produce at least the yield
used to establish the irrigated production guarantee on the
irrigated acreage planted to the insured crop.
(g) Late planted--Acreage planted to the insured crop during the
late planting period.
(h) Late planting period--The period that begins the day after
the final planting date for the insured crop and ends twenty-five
(25) days after the final planting date.
(i) Local market price--The cash seed price per pound for oil
type sunflower seed grading U.S. No. 2, or non-oil type sunflower
seed with a test weight of at least 22 pounds per bushel and less
than five percent (5%) kernel damage, offered by buyers in the area
in which you normally market the sunflower seed. The local market
price for oil type sunflower seed will reflect the maximum limits of
quality deficiencies allowable for the U.S. No. 2 grade of sunflower
seed. Factors not associated with grading of sunflower seed under
the Official United States Standards for Grain including, but not
limited to, oil or moisture content will not be considered.
(j) Planted acreage--Land in which seed has been placed by a
machine appropriate for the insured crop and planting method, at the
correct depth, into a seedbed which has been properly prepared for
the planting method and production practice. Sunflower seed must
initially be planted in rows far enough apart to permit cultivation
to be considered planted. Acreage planted in any other manner will
not be insurable unless otherwise provided by the Special Provisions
or by written agreement.
(k) Practical to replant--In lieu of subsection 1.(ff) of the
Basic Provisions (Sec. 457.8), practical to replant is defined as
our determination, after loss or damage to the insured crop, based
on factors, including but not limited to moisture availability,
condition of the field, and time to crop maturity, that replanting
to the insured crop will allow the crop to attain maturity prior to
the calendar date for the end of the insurance period. It will not
be considered practical to replant after the end of the late
planting period unless replanting is generally occurring in the
area.
(l) Prevented planting--Inability to plant the insured crop with
proper equipment by:
(1) The final planting date designated in the Special Provisions
for the insured crop in the county; or
(2) The end of the late planting period.
You must have been unable to plant the insured crop due to an
insured cause of loss that has prevented most producers in the
surrounding area from planting due to similar insurable causes. The
insured cause of prevented planting must occur on or after the
beginning of the prevented planting insurance period specified in
paragraph 13.(d)(2).
(m) Production guarantee--The number of pounds determined by
multiplying the approved yield per acre by the coverage level
percentage you elect.
(n) Replanting--Performing the cultural practices necessary to
replace the sunflower seed and then replacing the sunflower seed in
the insured acreage with the expectation of growing a successful
crop.
(o) Timely planted--Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the
county.
(p) Written agreement--Designated terms of this policy may be
altered by written agreement. Each agreement must be applied for by
the insured in writing no later than 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 variable terms including, but not limited to, crop
variety, guarantee, premium rate, and price election must be
contained in the written agreement. Notwithstanding the sales
closing date restriction contained herein, in specific instances a
written agreement may be applied for after the sales closing date,
and approved if, after physical inspection of the acreage, there is
a determination that the crop has the expectancy of making at least
the guaranteed yield. However, no prevented planting liability will
be established as a result of any request submitted after the sales
closing date. All applications for written agreements as submitted
by the insured must contain all variable terms of the contract
between the company and the insured that will be in effect if the
written agreement is disapproved.
2. Unit Division
Unless limited by the Special Provisions, a unit as defined in
subsection 1.(tt) of the Basic Provisions (Sec. 457.8), may be
divided into optional units if, for each optional unit you meet all
the conditions of this section or if a written agreement to such
division exists. Basic units may not be divided into optional units
on any basis including, but not limited to, production practice,
type, variety, and planting period other than as described under
this section. If you do not comply fully with these provisions, we
will combine all optional units which are not in compliance with
these provisions into the basic unit from which they were formed. We
may combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined, that portion of the premium paid for the purpose
of electing optional units will be refunded to you pro rata for the
units combined. All optional units must be reflected on the acreage
report for each crop year.
(a) You must have records, which can be independently verified,
of planted acreage and production for each optional unit for at
least the last crop year used to determine your production
guarantee.
(b) You must plant the crop in a manner that results in a clear
and discernable break in the planting pattern at the boundaries of
each optional unit.
(c) You must have records of measurement of stored or marketed
production from each optional unit maintained in such a manner that
permits us to verify the production from each optional unit or the
production from each unit must be kept separate until after loss
adjustment under the policy is completed.
(d) Each optional unit must meet one or more of the following
criteria as applicable:
(1) Optional Units by Section, Section Equivalent, or
Consolidated Farm Service Agency (CFSA) Farm Serial Number: Optional
units may be established if each optional unit is located in a
separate, legally identified Section. In the absence of Sections, we
may consider parcels of land legally identified by other methods of
measure including, but not limited to: Spanish grants, railroad
surveys, leagues, labors, or Virginia Military Lands as the
equivalent of Sections for unit purposes. In areas which have not
been surveyed using the systems identified above, or another system
approved by us, or in areas where such systems exist but boundaries
are not readily discernable, each optional unit must be located in a
separate farm identified by a single CFSA Farm Serial Number.
(2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing
optional units by Section, section equivalent or CFSA Farm Serial
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same Section, section
equivalent or CFSA Farm Serial Number. The irrigated acreage may not
extend beyond the point at which your irrigation system can deliver
the quantity of water needed to produce the yield on which your
guarantee is based and you may not continue into non-irrigated
acreage in the same rows or planting pattern. You must plant,
cultivate, fertilize, or otherwise care for the irrigated acreage in
accordance with recognized good irrigated farming practices.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8), you may select only one price
election for all the sunflower seed in the county insured under this
policy. Notwithstanding the preceding sentence, if the Special
Provisions provide different price elections by type, you may select
one price election for each sunflower seed type designated in the
Special Provisions.
4. Contract Changes
The contract change date is November 30 preceding the
cancellation date (see the provisions of section 4 (Contract
Changes) of the Basic Provisions (Sec. 457.8)).
5. Cancellation and Termination Dates
In accordance with subsection 2.(f) of the Basic Provisions
(Sec. 457.8), the cancellation and termination dates are March 15.
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the oil and
non-oil type sunflower seed in the county for which a premium rate
is provided by the actuarial table:
(a) In which you have a share;
(b) That is planted for harvest as sunflower seed; and
(c) That is not (unless a written agreement allows otherwise):
(1) Interplanted with another crop; or
(2) Planted into an established grass or legume.
7. Insurable Acreage
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8):
(a) We will not insure any acreage which does not meet the
rotation requirements shown in the Special Provisions; and
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that the remaining stand will not
produce at least ninety percent (90%) of the production guarantee,
must be replanted unless we agree that replanting is not practical
(see subsection 1.(k)).
8. Insurance Period
In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), the calendar date for
the end of the insurance period is November 30, immediately
following planting.
9. Causes of Loss
In accordance with the provisions of section 12 (Causes of Loss)
of the Basic Provisions (Sec. 457.8), insurance is provided only
against the following causes of loss which occur within the
insurance period:
(a) Adverse weather conditions;
(b) Fire;
(c) Insects, but not damage due to insufficient or improper
application of pest control measures;
(d) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(e) Wildlife;
(f) Earthquake;
(g) Volcanic eruption; or
(h) If applicable, failure of the irrigation water supply due to
an unavoidable cause of loss occurring after the beginning of
planting.
10. Replanting Payments
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment for sunflower
seed is allowed if the sunflowers are damaged by an insurable cause
of loss to the extent that the remaining stand will not produce at
least ninety percent (90%) of the production guarantee for the
acreage and it is practical to replant (see subsection 1.(k)).
(b) The maximum amount of the replanting payment per acre will
be the lesser of twenty percent (20%) of the production guarantee or
175 (pounds of seed), multiplied by your price election, multiplied
by your insured share or the share determined in accordance with
subsection 10.(c), if applicable.
(c) When more than one person insures the same crop on a share
basis, a replanting payment based on the total shares insured by us
may be made to the insured person who incurs the total cost of
replanting. Payment will be made in this manner only if an agreement
exists between the insured persons which:
(1) Requires one person to incur the entire cost of replanting;
or
(2) Gives the right to all replanting payments to one person.
(d) When sunflower seed is replanted using a practice that is
uninsurable as an original planting, the liability for the unit will
be reduced by the amount of the replanting payment which is
attributable to your share. The premium amount will not be reduced.
11. Duties in the Event of Damage or Loss
In accordance with the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), the
representative samples of the unharvested crop must be at least 10
feet wide and extend the entire length of each field in the unit.
The samples must not be harvested or destroyed until the earlier of
our inspection or 15 days after harvest of the balance of the unit
is completed.
12. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide records of production:
(1) For any optional unit, we will combine all optional units
for which acceptable records of production were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim on any unit by:
(1) Multiplying the insured acreage of each type of sunflower
seed by the production guarantee for the applicable type;
(2) Multiplying each result by the price election for the
applicable type;
(3) Adding these values;
(4) Multiplying the production to count of each type of
sunflower seed by the price election for that type;
(5) Adding these dollar values;
(6) Subtracting the result of step (5) from the result of step
(3); and
(7) Multiplying the result by your share.
(c) The total production (pounds) to count from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) Damaged solely by uninsured causes; or
(D) For which you fail to provide records of production that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested production may
be adjusted for quality deficiencies and excess moisture in
accordance with subsection 12.(d)); and
(iv) Potential production on insured acreage you want to put to
another use or you wish to abandon and no longer care for, if you
and we agree on the appraised amount of production. Upon such
agreement, the insurance period for that acreage will end if you put
the acreage to another use or abandon the crop. If agreement on the
appraised amount of production is not reached:
(A) If you do not elect to continue to care for the crop, we may
give you consent to put the acreage to another use if you agree to
leave intact, and provide sufficient care for, representative
samples of the crop in locations acceptable to us, (The amount of
production to count for such acreage will be based on the harvested
production or appraisals from the samples at the time harvest should
have occurred. If you do not leave the required samples intact, or
you fail to provide sufficient care for the samples, our appraisal
made prior to giving you consent to put the acreage to another use
will be used to determine the amount of production to count.); or
(B) If you elect to continue to care for the crop, the amount of
production to count for the acreage will be the harvested
production, or our reappraisal if additional damage occurs and the
crop is not harvested; and
(2) All harvested production from the insurable acreage.
(d) Mature sunflower seed production may be adjusted for excess
moisture and quality deficiencies. If moisture adjustment is
applicable, it will be made prior to any adjustment for quality.
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of ten percent (10%). We may
obtain samples of the production to determine the moisture content.
(2) Production will be eligible for quality adjustment if:
(i) Deficiencies in quality result in:
(A) Oil type sunflower seed not meeting the grade requirements
for U.S. No. 2 (grades U.S. sample grade) because of test weight,
kernel damage (excluding heat damage), or a musty, sour or
commercially objectionable foreign odor; or
(B) Non-oil type sunflower seed having a test weight below 22
pounds per bushel or kernel damage (excluding heat damage) in excess
of five percent (5%) or a musty, sour or commercially objectionable
foreign odor; or
(ii) Substances or conditions are present that are identified by
the Food and Drug Administration or other public health
organizations of the United States as being injurious to human or
animal health.
(3) Quality will be a factor in determining your loss only if:
(i) The deficiencies, substances, or conditions, resulted from a
cause of loss against which insurance is provided under these crop
provisions and within the insurance period ;
(ii) All determinations of these deficiencies, substances, or
conditions are made using samples of the production obtained by us
or by a disinterested third party approved by us; and
(iii) The samples are analyzed by a grader licensed to grade
sunflower seed under the authority of the United States Grain
Standards Act or the United States Warehouse Act with regard to
deficiencies in quality, or by a laboratory approved by us with
regard to substances or conditions injurious to human or animal
health. (Test weight for quality adjustment purposes may also be
determined by our loss adjuster.)
(4) Sunflower seed production that is eligible for quality
adjustment, as specified in paragraphs 12.(d)(2) and (3), will be
reduced:
(i) In accordance with quality adjustment factor provisions
contained in the Special Provisions; or
(ii) As follows, if quality adjustment factor provisions are not
contained in the Special Provisions:
(A) The market price of the qualifying damaged production and
the local market price will be determined on the earlier of the date
such quality adjusted production is sold or the date of final
inspection for the unit. The price for the qualifying damaged
production will be the market price for the local area to the extent
feasible. Discounts used to establish the net price of the damaged
production will be limited to those which are usual, customary, and
reasonable. The price will not be reduced for:
(1) Moisture content;
(2) Damage due to uninsured causes; or
(3) Drying, handling, processing, or any other costs associated
with normal harvesting, handling, and marketing of the sunflower
seed; except, if the price of the damaged production can be
increased by conditioning, we may reduce the price of the production
after it has been conditioned by the cost of conditioning but not
lower than the value of the production before conditioning. (We may
obtain prices from any buyer of our choice. If we obtain prices from
one or more buyers located outside your local market area, we will
reduce such prices by the additional costs required to deliver the
sunflower seed to those buyers.);
(B) The value of the damaged or conditioned production will be
divided by the local market price to determine the quality
adjustment factor; and
(C) The number of pounds remaining after any reduction due to
excessive moisture (the moisture-adjusted gross pounds (if
appropriate)) of the damaged or conditioned production will then be
multiplied by the quality adjustment factor to determine the net
production to count.
(e) Any production harvested from plants growing in the insured
crop may be counted as production of the insured crop on a weight
basis.
13. Late Planting and Prevented Planting
(a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the
Basic Provisions (Sec. 457.8), insurance will be provided for
acreage planted to the insured crop during the late planting period
(see subsection 13.(c)), and acreage you were prevented from
planting (see subsection 13.(d)). These coverages provide reduced
production guarantees. The reduced guarantees will be combined with
the production guarantee for timely planted acreage for each unit.
The premium amount for late planted acreage and eligible prevented
planting acreage will be the same as that for timely planted
acreage. If the amount of premium you are required to pay (gross
premium less our subsidy) for late planted acreage or prevented
planting acreage exceeds the liability on such acreage, coverage for
those acres will not be provided (no premium will be due and no
indemnity will be paid for such acreage), (For example, assume you
insure one unit in which you have a 100 percent (100%) share. The
unit consists of 150 acres, of which 50 acres were planted timely,
50 acres were planted seven (7) days after the final planting date
(late planted), and 50 acres are unplanted and eligible for
prevented planting coverage. To calculate the amount of any
indemnity which may be due to you, the production guarantee for the
unit will be computed as follows:
(1) For timely planted acreage, multiply the per acre production
guarantee for timely planted acreage by the 50 acres planted timely;
(2) For late planted acreage, multiply the per acre production
guarantee for timely planted acreage by ninety-three percent (0.93)
and multiply the result by the 50 acres planted late; and
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by fifty percent
(0.5) and multiply the result by the 50 acres eligible for prevented
planting coverage.
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit).
(b) You must provide written notice to us if you were prevented
from planting (see subsection 1.(l)). This notice must be given not
later than three (3) days after:
(1) The final planting date for acreage you were prevented from
planting by the final planting date if you have unplanted acreage
that may be eligible for prevented planting coverage; and
(2) The date you discover that planting will not be possible
within the late planting period for any acreage that may be eligible
for prevented planting coverage, if you were not prevented from
planting such acreage by the final planting date but were prevented
from planting such acreage during the late planting period.
(c) Late Planting
(1) For sunflower acreage planted after the final planting date
but on or before 25 days after the final planting date, the
production guarantee for each acre will be reduced for each day
planted after the final planting date by:
(i) One percent (.01) for the first through the tenth day; and
(ii) Two percent (.02) for the eleventh through the twenty-fifth
day.
(2) In addition to the requirements of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), you must report the
dates the acreage is planted within the late planting period.
(3) If planting of sunflower seed continues after the final
planting date, or you are prevented from planting during the late
planting period, the acreage reporting date will be the later of:
(i) The acreage reporting date contained in the Special
Provisions for the insured crop; or
(ii) Five (5) days after the end of the late planting period.
(d) Prevented Planting (Including Planting After the Late
Planting Period)
(1) If you were prevented from planting sunflowers (see
subsection 1.(l)), you may elect:
(i) To plant sunflower seed during the late planting period,
(The production guarantee for such acreage will be determined in
accordance with paragraph 13.(c)(1));
(ii) Not to plant this acreage to any crop that is intended for
harvest in the same crop year, (The production guarantee for such
acreage will be fifty percent (50%) of the production guarantee for
timely planted acres, (For example, if your production guarantee for
timely planted acreage is 900 pounds per acre, your prevented
planting production guarantee would be equivalent to 450 pounds per
acre (900 pounds multiplied by 0.5)). This subparagraph does not
prohibit the preparation and care of the acreage for conservation
practices, such as planting a cover crop, as long as such crop is
not intended for harvest; or
(iii) To plant sunflower seed after the late planting period,
(The production guarantee for such acreage will be fifty percent
(50%) of the production guarantee for timely planted acres, (For
example, if your production guarantee for timely planted acreage is
900 pounds per acre, your prevented planting production guarantee
would be equivalent to 450 pounds per acre (900 pounds multiplied by
0.5)). Production to count for such acreage will be determined in
accordance with subsections 12.(c) through (e).
(2) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), the insurance period
for prevented planting coverage begins:
(i) For the crop year your application is accepted, on the sales
closing date contained in the Special Provisions for the insured
crop in the county; or
(ii) For any continuous crop year following the crop year your
application is accepted, or for any crop year this insurance policy
is transferred to a different insurance provider, on the sales
closing date for the crop year immediately preceding the current
crop year, provided continuous coverage has been in effect since
that date.
(3) The acreage to which prevented planting coverage applies
will be limited as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture for the crop year which limits the
number of acres that may be planted, prevented planting acreage will
not exceed the CFSA base acreage for the insured crop, reduced by
any acreage reduction applicable to the farm under such program.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture which limits the number
of acres that may be planted, unless a written agreement exists to
the contrary, eligible acreage will not exceed the greater of:
(A) The CFSA base acreage for the insured crop, if applicable;
(B) The number of acres planted to sunflower seed on each CFSA
Farm Serial Number during the previous crop year (adjusted for any
reconstitution which may have occurred prior to the sales closing
date); or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to sunflower seed during the crop years that
were used to determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres properly prepared to carry
out an irrigated practice.
(iv) A prevented planting production guarantee will not be
provided for:
(A) Any acreage that does not constitute at least 20 acres or 20
percent (20%) of the acres in the unit, whichever is less;
(B) Land for which the actuarial table does not designate a
premium rate unless a written agreement exists designating such
premium rate;
(C) Land used for conservation purposes or intended to be or
considered to have been left unplanted under any program
administered by the United States Department of Agriculture;
(D) Land on which any crop, other than sunflower seed has been
planted and is intended for harvest, or has been harvested in the
same crop year; or
(E) Land which planting history or conservation plans indicate
would remain fallow for crop rotation purposes;
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of sunflower acres timely planted and
late planted, (For example, assume you have 100 acres eligible for
prevented planting coverage in which you have a 100 percent (100%)
share. The acreage is located in a single CFSA Farm Serial Number
which you insure as two separate optional units consisting of 50
acres each. If you planted 60 acres of sunflower seed on one
optional unit and 40 acres of sunflower seed on the second optional
unit, your prevented planting eligible acreage would be reduced to
zero, (100 acres eligible for prevented planting coverage less 100
acres planted equals zero)). If you report more sunflower acreage
under this contract than is eligible for prevented planting
coverage, we will allocate the eligible acreage to insured units
based on the number of prevented planting acres and share you
reported for each unit.
(4) When the CFSA Farm Serial Number covers more than one unit,
or a unit consists of more than one CFSA Farm Serial Number, the
covered acres will be pro-rated based on the number of acres in each
unit or CFSA Farm Serial Number that could have been planted to
sunflowers in the crop year.
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), you must report any
insurable acreage you were prevented from planting. This report must
be submitted on or before the acreage reporting date, even though
you may elect to plant the acreage after the late planting period.
Any acreage you report as eligible for prevented planting coverage
which is not eligible will be deleted from prevented planting
coverage.
Done in Washington D.C., on December 22, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-32021 Filed 12-28-94; 8:45 am]
BILLING CODE 3410-08-P
