[Federal Register Volume 62, Number 27 (Monday, February 10, 1997)]
[Rules and Regulations]
[Pages 5903-5907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3130]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 62, No. 27 / Monday, February 10, 1997 /
Rules and Regulations
[[Page 5903]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 401 and 457
RIN 0563-AB54
General Crop Insurance Regulations; Cranberry Endorsement and
Common Crop Insurance Regulations; Cranberry Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
specific crop provisions for the insurance of cranberries. The
provisions will be used in conjunction with the Common Crop Insurance
Policy Basic Provisions, which contain standard terms and conditions
common to most crops. The intended effect of this action is to provide
policy changes to better meet the needs of the insured, include the
current cranberry endorsement under the Common Crop Insurance Policy
for ease of use and consistency of terms, and to restrict the effect of
the current cranberry endorsement to the 1997 and prior crop years.
EFFECTIVE DATE: March 12, 1997.
FOR FURTHER INFORMATION CONTACT: Richard Brayton, Program Analyst,
Research and Development Division, Product Development Branch, Federal
Crop Insurance Corporation, United States Department of Agriculture,
9435 Holmes Road, Kansas City, MO 64131, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION
Executive Order No. 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order No. 12866, and,
therefore, this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Following publication of the proposed rule, the public was afforded
60 days to submit written comments, data, and opinions on information
collection requirements previously approved by OMB under OMB control
number 0563-0003 through September 30, 1998. No public comments were
received.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on States or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. Under
the current regulations, a producer is required to complete an
application and an acreage report. If the crop is damaged or destroyed,
the insured is required to give notice of loss and provide the
necessary information to complete a claim for indemnity.
The insured must also annually certify to the previous years
production if adequate records are available to support the
certification. The producer must maintain the production records to
support the certified information for at least 3 years. This regulation
does not alter those requirements. The amount of work required of the
insurance companies delivering and servicing these policies will not
increase significantly from the amount of work currently required. This
rule does not have any greater or lesser impact on the producer.
Therefore, this action is determined to be exempt from the provisions
of the Regulatory Flexibility Act (5 U.S.C. 605), and no Regulatory
Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order No. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. The provisions of this rule will
not have a retroactive effect prior to the effective date. The
provisions of this rule will preempt State and local laws to the extent
such State and local laws are inconsistent herewith. The administrative
appeal provisions published at 7 CFR parts 11 and 780 must be exhausted
before any action for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
On Friday, September 13, 1996, FCIC published a proposed rule in
the Federal Register at 61 FR 48420-48423 to add to the Common Crop
Insurance Regulations (7 CFR part 457), a new
[[Page 5904]]
section, 7 CFR 457.132, Cranberry Crop Insurance Provisions. The new
provisions will be effective for the 1998 and succeeding crop years.
These provisions will replace and supersede the current provisions for
insuring cranberries found at 7 CFR 401.127 (Cranberry Endorsement).
This rule also amends the Cranberry Endorsement found at 7 CFR 401.127
to limit the effect of the current provisions to the 1997 and prior
crop years. FCIC will later publish a regulation to remove and reserve
Sec. 401.127.
Following publication of that proposed rule, the public was
afforded 60 days to submit written comments, data, and opinions. A
total of 20 comments were received from the crop insurance industry and
FCIC Regional Service Offices (RSO). The comments received, and FCIC's
responses, are as follows:
Comment: One comment received from an FCIC RSO recommended changing
the definition of ``Harvest'' in section 1 to read, ``Removal of the
cranberries from the bog.'' Cranberries can be picked from the vine but
remain in the bog, and be susceptible to an insured peril which can
cause cranberry fruit damage or loss.
Response: To be consistent with other crop policies, FCIC agrees
with the comment and has amended the definition accordingly.
Comment: Three comments received from the crop insurance industry
recommended changing the definition of ``Irrigated practice'' in
section 1 to delete the references to overhead solid set irrigation
systems and frost prevention. The commenters stated that overhead solid
irrigation systems are not applicable to all areas and that frost
prevention is not a policy requirement.
Response: FCIC agrees with the comment and has amended the
definition accordingly.
Comment: One comment received from the crop insurance industry
recommended adding the words ``and quality'' after the word
``quantity'' in the definition of ``Irrigated practice.'
Response: FCIC agrees that water quality is an important issue.
However, there are no established criteria regarding the quality of
water necessary to produce a crop. Such criteria would be difficult to
develop and administer due to the complexity of the factors included.
Therefore, no change will be made.
Comment: One comment received from the crop insurance industry
recommended changing the definition of ``Non-contiguous land'' in
section 1 to clarify whether land ownership is a factor in the
determination.
Response: Land ownership is not a factor to determine non-
contiguous land. Non-contiguous land is land on which a producer has or
will have an insurable interest in the crop, and whose boundaries do
not touch at any point. FCIC believes the provision is clearly stated.
Therefore, no change will be made.
Comment: Two comments received from the crop insurance industry
suggested the provisions contained in section 2(d), which specify that
``all optional units must be identified on the acreage report for each
crop year,'' be changed. The commenters stated that as written, the
language appears to allow optional units to be established at acreage
reporting time, when in fact, optional units depend on acceptable
production reports being submitted by the production reporting date,
which is often earlier than the acreage reporting date.
Response: FCIC has clarified this provision to indicate that only
those optional units ``established for the crop year'' need to be
identified on the acreage report.
Comment: One comment received from an RSO recommended that section
6(d) be changed to read, ``that are grown on vines that have completed
four growing seasons after set out, unless otherwise provided by the
actuarial table or by written agreement.''
Response: FCIC agrees with the statement and has amended the
provisions accordingly.
Comment: One comment received from the crop insurance industry
stated that the provision contained in the current cranberry
endorsement that restricts insurance on vines that are being renovated
and are not likely to produce a full crop for the current year was
omitted from section 3(b).
Response: The current provisions have been replaced by the
provisions contained in section 3(b) that require the insured to report
any damage, removal of vines, changes in practices, or any other
circumstance that may reduce the expected yield below the yield upon
which the insurance guarantee is based. The insurance provider will
inspect the bog to determine the appropriate production guarantee based
on the effect of the circumstances that actually exist. This allows
insurance for such acres based on the actual expected yield, which will
increase the number of insurable acres and provide yield protection for
producers. Therefore, no change will be made.
Comment: One comment received from the crop insurance industry
questioned why the requirement for a 90 percent stand for insurability
was removed. The commenter stated that insurability of bogs with less
than 90 percent stand of bearing vines should be subject to inspection
and provided by written agreement.
Response: As stated above, such acreage will now be insurable at
yields commensurate with the production capabilities of the acreage.
Therefore, no change will be made.
Comment: One comment received from an RSO recommended that section
6(d) ``Insured Crop'' be change to read, ``that are grown in a bog with
at least a 90 percent stand of bearing vines based on the original
planting density unless otherwise provided by the actuarial table or by
written agreement.''
Response: FCIC disagrees with the comment. No change will be made
for the reasons stated above.
Comment: Two comments received, one from an RSO and one from the
crop insurance industry, recommended adding a subparagraph to section 8
``Causes of Loss'' to read, ``failure or breakdown of irrigation
equipment or facilities due to direct damage to it from an insurable
cause of loss if the cranberry crop is damaged by freezing temperatures
within 72 hours of such failure or breakdown and repair or replacement
was not possible before damage occurred.''
Response: FCIC agrees with the comment and has amended the
provisions accordingly.
Comment: One comment received from an RSO recommended that section
10(c)(1)(i)(D) ``Settlement of Claim'', be revised by adding
``destroyed or put to another use without our consent'' as in other
crop provisions.
Response: FCIC agrees with the comment and has amended the
provisions accordingly.
Comment: One comment was received from the crop insurance industry
stating that section 10(c)(1)(iv) ``Settlement of Claim'' should not
allow the insured to defer settlement and wait for a later, generally
lower, appraisal on insured acreage the producer intends to abandon or
no longer care for.
Response: A later appraisal will only be necessary if the insurance
provider agrees that such an appraisal would result in a more accurate
determination and if the producer continues to care for the crop. If
the producer does not care for the crop, the original appraisal will be
used. No change will be made to these provisions.
Comment: One comment received from an RSO recommended changing the
proposed quality adjustment requirements which state, ``due to
insurable causes, does not meet, or
[[Page 5905]]
would not if properly handled meet, the United States Standards for
Fresh Cranberries for Processing'' in section 10(c)(3) ``Settlement of
Claim.'' The RSO recommended that the quality adjustment provisions
contained in the current cranberry endorsement should be used.
Response: FCIC agrees with the comment for those areas where the
U.S. Standards for Fresh Cranberries for processing may not be
available. The provisions have been amended accordingly.
Comment: Three comments received from the crop insurance industry
recommended in section 11(d) ``Written Agreements,'' that the
requirement for a written agreement to be renewed each year should be
removed. Terms of the agreement should be stated in the agreement to
fit the particular situation for the policy, or if no substantive
changes occur from one year to the next, allow the written agreement to
be continuous.
Response: Written agreements by design are temporary and intended
to address unusual situations. If the condition for which written
agreement is needed continue year to year, they should be incorporated
into the policy or Special Provisions. Therefore, no change will be
made.
In addition to the changes described above, FCIC has made editorial
changes for clarification on the following changes to the Cranberry
Crop Provisions:
1. Section 1--Added the term ``market price'' to the definitions
for clarification.
2. Section 3--Clarified that the insurance provider will adjust
yields in response to removal of vines, damage, other changes in
practices, or any other circumstance that will affect the yield.
3. Section 7(a)(1)--Clarified that an application will not be
accepted after the November 21 sales closing date. For applications
submitted within 10 days of the sales closing date, coverage will not
attach until 10 days after the date of application.
4. Section 7(b)(2)(iii)--Added a requirement to clarify that the
transferee must be eligible for crop insurance to be consistent with
other crop provisions.
5. Section 9(b)--Clarify that damaged production must not be sold
or disposed of until the earlier of 15 days from the date of notice of
loss or when the insurer gives consent to do so.
6. Section 9(c)--Clarify that the failure to meet the requirements
of this section result in the insurance providers inability to inspect
the damaged production, for all such production to be considered
undamaged and included as production to count.
List of Subjects in 7 CFR Parts 401 and 457
Cranberry, Cranberry endorsement, Crop insurance.
Final Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby amends 7 CFR parts 401 and 457 effective
for the 1998 and succeeding crop years, as follows:
PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE
1998 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 401 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. The introductory text of Sec. 401.127 is amended to read as
follows:
Sec. 401.127 Cranberry endorsement.
The provisions of the Cranberry Crop Insurance Endorsement for the
1990 through the 1997 crop years are as follows:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS: REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
3. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
4. Section 457.132 is added to read as follows:
Sec. 457.132 Cranberry crop insurance provisions.
The Cranberry Crop Insurance Provisions for the 1998 and succeeding
crop years are as follows:
FCIC policies:
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
CRANBERRY 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
Barrel--100 pounds of cranberries.
Days--Calendar days.
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 State
Research, Education, and Extension Service as compatible with
agronomic and weather conditions in the county.
Harvest--Removal of the cranberries from the bog.
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.
Market price--The cash price per barrel of cranberries offered
by buyers in the area in which you normally market the cranberries.
Non-contiguous land--Any two or more tracts of land whose
boundaries do not touch at any point, except that land separated
only by a public or private right-of-way, waterway, or an irrigation
canal will be considered as contiguous.
Production guarantee (per acre)--The number of barrels
determined by multiplying the approved actual production history
(APH) yield per acre by the coverage level percentage you elect.
Written agreement--A written document that alters designated
terms of this policy in accordance with section 11.
2. Unit Division
(a) Unless limited by the Special Provisions, a unit as defined
in section 1 (Definitions) of the Basic Provisions (Sec. 457.8),
(basic unit) 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.
(b) Basic units may not be divided into optional units on any
basis including, but not limited to, production practice, type, and
variety, other than as described in this section.
(c) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined into a basic unit, that portion of the premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(d) All optional units established for the crop year must be
identified on the acreage report for that crop year.
(e) The following requirements must be met for each optional
unit:
(1) You must have records, which can be independently verified,
of planted acreage and production for each optional unit for at
least the last crop year used to determine your production
guarantee;
(2) You must have records of marketed production or measurement
of stored production from each optional unit maintained in such a
manner that permits us to verify the production from each optional
unit, or the production from each unit must
[[Page 5906]]
be kept separate until loss adjustment is completed by us; and
(3) Each optional unit must be located on non-contiguous land.
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):
(a) You may select only one price election for all the
cranberries in the county insured under this policy.
(b) You must report, by the production reporting date designated
in section 3 (Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities) of the Basic Provisions (Sec. 457.8):
(1) Any damage, removal of vines, change in practices, or any
other circumstance that may reduce the expected yield below the
yield upon which the insurance guarantee is based, and the number of
affected acres;
(2) The age of the vines; and
(3) Any other information that we request in order to establish
your approved yield.
We will adjust the yield used to establish your production
guarantee as necessary, based on our estimate of the effect of the
removal of vines, damage, change in practices, and any other
circumstance that may affect the yield potential of the insured
crop. If you fail to notify us of any circumstance that may affect
your yields from previous levels, we will adjust your production
guarantee as necessary at any time we become aware of the
circumstance.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is August 31
preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 (Life of Policy, Cancellation, and
Termination) of the Basic Provisions (Sec. 457.8), the cancellation
and termination dates are November 20.
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the
cranberries in the county for which a premium rate is provided by
the actuarial table:
(a) In which you have a share;
(b) That are grown for harvest as cranberries;
(c) That are grown in a bog that, if inspected, is considered
acceptable by us; and
(d) That are grown on vines that have completed four growing
seasons after the vines were set out, unless otherwise provided by
the actuarial table or by written agreement.
7. Insurance Period
(a) In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) Coverage begins on November 21 of each crop year, except
that for the year of application, if your application is received
after November 11, but prior to November 21, insurance will attach
on the 10th day after your properly completed application is
received in our local office, unless we inspect the acreage during
the 10 day period and determine that it does not meet insurability
requirements. You must provide any information that we require for
the crop or to determine the condition of the bog.
(2) The calendar date for the end of the insurance period for
each crop year is November 20.
(b) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) If you acquire an insurable share in any insurable acreage
after coverage begins but on or before the acreage reporting date
for the crop year, and after an inspection we consider the acreage
acceptable, insurance will be considered to have attached to such
acreage on the calendar date for the beginning of the insurance
period.
(2) If you relinquish your insurable share on any insurable
acreage of cranberries on or before the acreage reporting date for
the crop year, insurance will not be considered to have attached to,
and no premium or indemnity will be due for, such acreage for that
crop year unless:
(i) A transfer of coverage and right to an indemnity, or a
similar form approved by us, is completed by all affected parties;
(ii) We are notified by you or the transferee in writing of such
transfer on or before the acreage reporting date; and
(iii) The transferee is eligible for crop insurance.
8. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Adverse weather conditions;
(2) Fire, unless weeds and other forms of undergrowth have not
been controlled or pruning debris has not been removed from the bog;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption;
(6) Failure of irrigation water supply, if caused by an insured
peril that occurs during the insurance period; or
(7) Failure or breakdown of irrigation equipment or facilities
due to direct damage to the irrigation equipment or facilities from
an insurable cause of loss if the cranberry crop is damaged by
freezing temperatures within 72 hours of such failure or breakdown
and repair or replacement was not possible before damage occurred.
(b) In addition to the causes of loss excluded in section 12
(Cause of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure against damage or loss of production due to:
(1) Disease or insect infestation, unless adverse weather:
(i) Prevents the proper application of control measures or
causes properly applied control measures to be ineffective; or
(ii) Causes disease or insect infestation for which no effective
control mechanism is available; or
(2) Inability to market the cranberries for any reason other
than actual physical damage from an insurable cause of loss
specified in this section. For example, we will not pay you an
indemnity if you are unable to market due to quarantine, boycott, or
refusal of any person to accept production.
9. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8):
(a) If you discover damage, or if you intend to claim an
indemnity on any insured unit, you must give us notice of probable
loss:
(1) At least 15 days before the beginning of any harvesting, or
(2) Immediately if probable loss is discovered after harvesting
has begun.
(b) You must not sell or dispose of any damaged production until
the earlier of 15 days from the date of notice of loss or when we
give you written consent to do so.
(c) If you fail to meet the requirements of this section, and
such failure results in our inability to inspect the damaged
production, all such production will be considered undamaged and
included as production to count.
10. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide separate acceptable production records:
(1) For any optional unit, we will combine all optional units
for which such production records were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying the result of section 10(b)(1) by the price
election;
(3) Multiplying the total production to be counted, (see section
10(c)) by the price election;
(4) Subtracting the total in section 10(b)(3) from the total in
section 10(b)(2); and
(5) Multiplying the result in section 10(b)(4) by your share.
(c) The total production to count (in barrels) from all
insurable acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee per acre for acreage:
(A) That is abandoned;
(B) Damaged solely by uninsured causes;
(C) For which you fail to provide acceptable production records;
or
(D) Destroyed or put to another use without our consent;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production; and
(iv) Potential production on insured acreage that you intend to
abandon or 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 do not agree with our appraisal, we
will use the appraised amount of production or defer the claim if
you agree to continue to care for the crop. We will then make
another appraisal when you notify us of further damage or that
harvest is general
[[Page 5907]]
to the area unless you harvested the crop, in which case we will use
the harvested production. If you do not continue to care for the
crop, our appraisal made prior to deferring the claim will be used
to determine the production to count; and
(2) All harvested production from the insurable acreage.
(3) Harvested production which, due to insurable causes, is
determined not to meet the United States Standards for Fresh
Cranberries if available, or would not meet those standards if
properly handled, or does not meet the quality requirements of the
receiving handler if the United States Standards for Fresh
Cranberries, if not available, and such harvested production has a
value less than 75 percent of the market price for cranberries
meeting the minimum requirements will be adjusted by:
(i) Dividing the value per barrel of such cranberries by the
market price per barrel for cranberries meeting the minimum
requirements; and
(ii) Multiplying the result by the number of barrels of such
cranberries.
11. Written Agreements
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
11(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, the guarantee, premium rate, and price election;
(d) Each written agreement will only be valid for one year (If
the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
Signed in Washington, DC, on January 31, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-3130 Filed 2-7-97; 8:45 am]
BILLING CODE 3410-FA-P
