[Federal Register Volume 62, Number 101 (Tuesday, May 27, 1997)]
[Rules and Regulations]
[Pages 28609-28618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13801]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 401 and 457
General Crop Insurance Regulations, Onion Endorsement; and Common
Crop Insurance Regulations, Onion 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 onions. 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 Onion
Endorsement under the Common Crop Insurance Policy for ease of use and
consistency of terms, and to restrict the effect of the current Onion
Endorsement to the 1997 and prior crop years.
EFFECTIVE DATE: May 27, 1997.
FOR FURTHER INFORMATION CONTACT: Bill Klein, Insurance Management
Specialist, Research and Development, Product Development Division,
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 on information collection
requirements previously approved by OMB under OMB control number 0563-
0003 through September 30, 1998. No public comments were received.
[[Page 28610]]
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 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 producer must also annually certify to the number of acres and
the previous years production, if adequate records are available to
support the certification, or receive a transitional yield. The
producer must maintain the production records to support the
certification information for at least three 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. 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988 on civil justice reforms. The provisions of this rule will
not have 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 part 11 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 Thursday, February 13, 1997, FCIC published a proposed rule, in
the Federal Register at 62 FR 6739-6746 to add to the Common Crop
Insurance Regulations (7 CFR part 457) a new section, 7 CFR 457.135,
Onion 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 onions found at 7 CFR
401.126 (Onion Endorsement). This rule also amends Sec. 401.126 to
limit its effect to the 1997 and prior crop years.
Following publication of the proposed rule, the public was afforded
30 days to submit written comments, data and opinions. A total of 28
comments were received from reinsured companies, an insurance service
organization, and FCIC Regional Service Offices (RSO). The comments
received, and FCIC's responses, are as follows:
Comment: An insurance service organization recommended that FCIC
consider defining in section 1 the term ``onion'' or ``bulb onion'' to
clarify that green (bunch) and seed onions are not insurable types.
Response: Insurable types of onions are clearly identified in
section 7 (Insured Crop). The provision states in part ``* * * the crop
insured will be all the onions (excluding green (bunch) or seed onions,
chives, garlic, leeks, and scallions) in the county * * *''. Therefore,
no change will be made in the definitions.
Comment: A reinsured company recommended deleting the definition
for ``FSA'' in section 1 of the provisions because they do not see a
need for this definition.
Response: FCIC disagrees with the recommendation. The term ``FSA''
is used numerous times in section 14, Late planting and Prevented
Planting. Therefore, the definition has not been deleted.
Comment: A reinsured company recommended adding in section 1 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, since no standards or procedures have been developed to
measure water quality for insurance purposes, FCIC has elected not to
include quality in the definition. Therefore, no change has been made.
Comment: A reinsured company recommended that either the master
yield concept be incorporated or that onions be insured solely for
production loss with a quality option endorsement to cover quality
concerns.
Response: FCIC disagrees with the recommendations. The ``master
yield'' is used by FCIC to establish an actual production history yield
for crops that require several years between plantings in the same
field to avoid buildup of insects, disease, or both. It is useful
principally when optional units are authorized by section or section
equivalent. For onions, however, location of land within a county is
not a factor in determining eligibility for optional units. Therefore,
each year's production is considered in establishing the APH yield
regardless of the field in which the onions are planted. This differs
materially from the conditions that necessitate the use of a master
yield. Use of a master yield in the circumstances surrounding onion
insurance would only complicate the onion insurance program needlessly.
FCIC considered a ``straight production'' policy but circumstances
do not support the concept. In general, onions that do not meet U.S.
No. 1 standards for storage onions or the applicable marketing order
for non-
[[Page 28611]]
storage onions are not marketable. Furthermore, only a small
percentage of onions normally fail to meet marketing requirements due
to factors such as doubles, seeders, off color, or hand or machine
damage. Thus, FCIC determined that adjustment for deficient quality
best meets the risk management needs of onion producers.
Comment: A reinsured company and an insurance service organization
recommended that optional units be made available by legal description
(sections, etc), as is the case with similar crops.
Response: The rule authorizes optional units by irrigated and non-
irrigated practice and by type. The only types allowed to be separated
into optional units are those identified in the Special Provisions and
include white, yellow, and red storage onions and two or more types of
non-storage onions based on regional differences. Additional unit
division by section or legal description would require further record
keeping that may not be readily available based on past practices,
increase producer premium, and further complicate the insurance program
for onions. Therefore, the recommendation is not adopted in the final
rule.
Comment: A reinsured company recommended that the percent of
coverage for each stage be uniform nationwide and that it be included
in section 3 of the crop provisions rather than being placed in the
Special Provisions.
Response: The percentage of coverage for each stage is uniform
nationwide. The term ``production guarantee'' is defined in section 1
and includes the percentages for each stage. The definition will remain
in section 1. However, for clarity purposes the percentages have been
added to the stages defined in section 3.
Comment: An insurance service organization commented that the
language in section 3 describes the first stage as being ``* * * until
the emergence of the third leaf * * *'', while the second stage is
described as ``* * * extends from emergence of the fourth leaf * * *''
Commenters believe that the language leaves a gap between stage 1 and
stage 2 and that the language in the first stage should be modified to
read ``* * * through emergence of the third leaf.''
Response: FCIC agrees with the comment, and has amended provisions
in section 3 accordingly.
Comment: An FCIC RSO suggested that the proposed three stages may
be difficult to distinguish and would require extra effort to
administer. The commenter recommended that two stages be used: (1)
Prior to topping and lifting or digging, and (2) From topping and
lifting or digging to the end of the insurance period.
Response: The three stages as defined in the proposed rule reflect
the inputs through each stage of crop development. Transplants, for
example, are immediately placed in the second stage based on producer
inputs. The leaf count method of appraisal for onions is similar to
appraisal methods for many other crops. Thus onion loss adjustment
should not require significantly greater time to administer or be
unduly difficult. Therefore, no change has been made.
Comment: An insurance service organization commented that it is
confusing to have no first stage for transplanted onions, only a second
and final stage. The industry suggested that it might be less confusing
to have separate stage definitions for direct-seeded and for
transplanted onions.
Response: Crops are divided into stages primarily to reflect
insured's expenses in producing the crop and appropriate insurer
liability. Transplanted onions are immediately placed in the second
stage due to the additional cost incurred in purchasing the
transplants, and the cost of transplanting. It would actually be more
confusing to have two different stages, one for seed onions and one for
transplanted onions. Therefore, no change has been made.
Comment: An insurance service organization commented that a
contract change date 60 days before the sales closing date, as shown in
section 4, may not provide sufficient time for producers to make
informed risk management decisions. They contend that the companies
will not have adequate time to make operational changes, to develop
training materials, or to train agents. Even a contract change date
three months ahead of the sales closing creates problems in getting
necessary information to insureds on a timely basis.
Response: While FCIC is sensitive to the industry's concerns for
timely information, FCIC believes that a contract change date 60 days
prior to the sales closing date allows the companies adequate time to
perform all required tasks in a timely manner. Furthermore, major
changes in the crop provisions are published in the Federal Register
prior to the contract change date. This provides companies additional
lead time to begin implementing changes. The June 30 and November 30
contract change dates contained in section 4 are consistent with other
crops. For these reasons, no change has been made.
Comment: One commenter from a reinsured company questioned if 70
days, as listed in section 7, provides sufficient time to harvest wheat
interplanted with onions to function as a windbreak in the Pacific
Northwest where this is a common practice.
Response: Wheat planted for this purpose is only a windbreak and is
not intended for harvest. Harvesting wheat grown with an insured onion
crop will violate the onion contract.
Comment: One commenter from a reinsured company suggested that FCIC
consider changing the provisions in section 8 which address crop
rotation requirements. They maintained that onion growers in the
Vidalia region plant onions following onions year after year,
apparently with no adverse effect on yields. Current language requires
producers to request written agreements every year unless the Special
Provisions provide different rotation requirements. The commenter noted
that they did not know what information will be provided in the Special
Provisions. However, for the Vidalia region FCIC must allow different
rotation requirements without requiring additional paperwork.
Response: In most areas of the country, rotating onion acreage to
control disease and insects is a good farming practice. Consequently,
standard rotation requirements were placed in the crop provisions. The
Special Provisions contain the requirements that are specific for the
county and are received by the insured with the other policy documents.
If a different rotation practice is appropriate for any area, FCIC will
allow that rotation practice in the Special Provisions. Therefore, no
change has been made.
Comment: An insurance service organization commented that the State
of Washington was listed in section 9 with a July 31 end of insurance
period, but was not listed in item 10 of the summary of changes. The
industry questioned whether Washington was inadvertently omitted from
the summary.
Response: FCIC inadvertently omitted the state of Washington from
item 10 of the summary. The reference in section 9 is correct.
Comment: An insurance service organization commented that, under
section 9, the end of the insurance period for Colorado would be
October 15. The summary of changes states that this is a date change
for Colorado, but the Automated Date Table already shows October 15 for
the 1997 crop year.
[[Page 28612]]
Response: The date table published for the 1997 crop year is
incorrect. The regulations at Sec. 401.126 specify the end of insurance
date for Colorado is September 30. Therefore, the summary of changes is
correct.
Comment: An FCIC RSO recommended two changes in section 9: (1) That
the term ``fall planted'' be changed to ``fall direct seeded'' or
``winter transplanted'', and (2) the end of the insurance period be
changed from June 15 to June 1 for the State of Georgia. The commenter
stated that the date change recommendation resulted from consultation
with extension personnel, and the commenter stated that the additional
14 days increases the risk of heat damage to Georgia onions not
harvested by June 1.
Response: FCIC has determined that the terms are production
practices that should properly be defined in the Special Provisions.
The recommended change to the end of insurance period for Georgia is
adopted.
Comment: An FCIC RSO commented that the time allowed after lifting
or digging of non-storage onions until the end of the insurance period
was too short. A maximum of 14 days was recommended versus the
presently allowed 2 days after lifting or digging.
Response: Based on additional research, FCIC agrees with the
recommendation and has made the change accordingly.
Comment: An insurance service organization recommended that the
words ``for the type'' be added to section 11 after the words ``by your
price election'' to clarify the price used in determining the maximum
amount of the replanting payment per acre.
Response: FCIC agrees with the recommendation and has amended the
language accordingly.
Comment: A reinsured company recommended that the maximum amount of
replant payment in section 11 be changed from ``* * * the lesser of 7
percent of the final stage production guarantee or 18 hundredweight * *
*'' to ``* * * the lesser of 10 percent of the final stage production
guarantee or 20 hundredweight.'' The commenter reasoned that since most
guarantees exceed 200 hundredweight, these recommendations will provide
a more equitable replant payment.
Response: A replanting payment equal to the lesser of 7 percent or
18 hundredweight was based on extensive research of the actual cost of
replanting. These costs do not differ materially if the crop yields 200
or 500 hundredweight. Therefore, no change has been made.
Comment: An insurance service organization stated that they did not
understand the intent of the language in section 13(c)(1)(vi)(C) and
how it related to items 13(c)(1)(vi)(A) and 13(c)(1)(vi)(B). They noted
that they previously took exception with allowing the insured to wait
for a later, probably lower appraisal. They did not believe that the
language in section 13(c)(1)(vi)(C) resolved the issue.
Response: After further review, FCIC agrees that the language in
section 13(c)(1)(vi)(C) does not relate well to sections
13(c)(1)(vi)(A) and 13(c)(1)(vi)(B) and does not further clarify
section 13(c)(1)(vi)(A) as was intended. Therefore, FCIC has been
deleted 13(c)(1)(vi)(C).
Comment: A reinsured company and an insurance service organization
expressed concern that the language in section 13(d) seemed to address
only unharvested production and questioned the meaning of the clause
``* * * no production will be counted if the appraised percent of
damage exceeds the percentage shown in the Special Provisions.''
Response: FCIC agrees that the language was unclear and has
modified the language to read ``If the percent of damaged onion
production, harvested or unharvested, is determined to exceed the
percentage shown by type in the Special Provisions * * *'' to clearly
specify both harvested and unharvested onion production that is
damaged. Thus, for example, if the percentage shown on the Special
Provisions is 50 percent for non-storage type onions, and the percent
of actual damage exceeds 50 percent, then the production to count would
be zero for that acreage. Onions with a high percent of damage
generally have no value.
Comment: An FCIC RSO recommended that the percentage factors
referenced in section 13(d) be uniform nationwide and be placed in the
Crop Provisions rather than in the Special Provisions. This person
recommended a graduated system in which an appraised percent of damage
between 0 and 30 percent resulted in no damage, but the amount of
production would be reduced by five percent for each 1 percent of
damage between 31 percent and 50 percent. Damage in excess of 50
percent would result in no production to count.
Response: Allowable damage differs by region and type. Listing the
percentage in the Special Provisions permits recognition of these
differences. Therefore, no change has been made.
Comment: An insurance service organization communicated an
anticipation that the substitute crop provision in section 14 under the
prevented planting coverage will be eliminated for the 1998 crop year.
Response: FCIC is currently working on a regulation that will
propose numerous revisions to the prevented planting coverage. The
substitute crop provision is among those revisions. Until that rule is
finalized, the current prevented planting coverage will continue.
Comment: An insurance service organization commented that some
recently revised crop provisions have deleted the reference to base
acres for non-program crops. Although the comment did not specifically
recommend removal of these provisions from the onion crop provisions,
this was clearly the intent.
Response: FCIC agrees with the comment and is currently working on
a regulation that proposes to delete reference to base acres.
Comment: A reinsured company recommended reducing the prevented
planting percentages in section 14 from 40 percent to 35 percent for
unplanted acreage, and from 20 percent to 17.5 percent for acreage
planted to a substitute crop. The commenter reasoned that the
recommended percentages would be more consistent with other policies
(such as cotton, rice, and sugar beets) that insure high-value crops.
Response: After additional study, FCIC agrees with the comment and
has amended section 14 to read 35 percent for unplanted acreage and
17.5 percent for acreage planted to a substitute crop.
Comment: An insurance service organization commented that the
language in section 14 refers to double-cropping in ``* * * each of the
last 4 years in which the insured crop was grown on the acreage.''
Earlier crop provisions required a history of double-cropping in each
of the last 4 years, which was interpreted to mean the last 4
consecutive calendar years, not APH crop years. The commenter observed
that this is a significant change and questioned if it had been
discussed in recent meetings where prevented planting was a topic.
Response: Initial crop policies converted to the Common Crop
Insurance Policy contained language appropriately interpreted to mean
the last 4 consecutive calendar years. More recent crop provisions
contain language that specifies each of the last 4 years in which the
insured crop was grown on the acreage. This issue has been discussed in
a number of recent prevented planting meetings at which industry
representatives were present. The restriction that limited eligibility
to
[[Page 28613]]
4 calendar years is unduly restrictive because it does not recognize
normal practices on a typical farm that employs a double-cropping
practice.
Comment: An FCIC RSO recommended deleting language in section 14
that refers to participation in USDA programs that limit the number of
acres planted for the crop year to base acres, and to nonparticipation
in USDA programs, because these provisions do not apply to onions.
Response: FCIC agrees with the comment and is currently working on
a regulation that proposes to delete these references. However, this
language will not be deleted from Crop Provisions until that regulation
has become a final rule. This provides consistency among policies.
Therefore, no change has been made.
Comment: An insurance service organization suggested combining the
provisions contained in section 15(e) with the provisions in section
15(a).
Response: The requirement that a written agreement be requested on
or before the sales closing date is intended to be the rule. The
exception provided in section 15(e) is only available in specific
limited circumstances. Therefore, no change will be made.
Comment: A reinsured company and an insurance service organization
recommended removal of the requirement in section 15 that a written
agreement be renewed each year. The terms should be stated in the
agreement to fit the particular situation for the policy, and, if no
substantive changes occur from one year to the next, the written
agreement should be continuous. Limiting written agreements to one year
only increases administrative cost, complexity, and the opportunities
for misunderstanding and error.
Response: Written agreements are intended to supplement policy
terms or permit insurance in unusual situations that require
modification of the otherwise standard insurance provisions. If such
practices continue year to year, they should be incorporated into the
policy or Special Provisions. It is not intended that written
agreements be so numerous that they would significantly increase
administrative costs and cause producer misunderstanding. It is
important to minimize written agreement exceptions to assure that the
insured is well aware of the specific terms of the policy. Therefore,
no change will be made.
In addition to the changes described above, and minor reformatting
and word changes for clarity, FCIC has made the following changes:
1. Changed the term ``third stage'' to ``final stage'' throughout
the text for clarification.
2. Section 1--Amend the terms ``onion production'' and production
guarantee (per acre) and added the term ``damaged onion production'' in
order to standardize the guidelines to be used in determining damaged
onions.
3. Section 3(b)--Modified the language to read ``the stages are for
any acreage in the unit * * *'' that qualify for a specific stage.
Previously the language describing stages 2 and 3 read ``* * * 25
percent of the acreage in the unit * * * .'' Stages are now on an acre
basis rather than a unit basis.
4. Section 13--Deleted section 13(c)(1)(vi)(C) based on proposed
rule comments that the provision did not relate well to sections
13(c)(1)(vi)(A) and 13(c)(1)(vi)(B) and that it did not further clarify
section 13(c)(1)(vi)(A) as was intended.
Good cause is shown to make this rule effective upon publication in
the Federal Register. This rule improves the onion insurance coverage
and brings it under the Common Crop Insurance Policy Basic Provisions
for consistency among the policies. The earliest contract change date
that can be met for the 1998 crop years is June 30, 1997. It is
therefore, imperative that these provisions be made final before that
date so that the reinsured companies and insureds may have sufficient
time to implement these changes. Therefore, public interest requires
the agency to make the rules effective upon publication.
List of Subjects in 7 CFR Parts 401 and 457
Crop insurance, Onion crop insurance regulations, Onions.
Final Rule
Accordingly, for the reasons 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 to read as follows:
PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE
1988 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. In Sec. 401.126 the introductory paragraph is revised to read as
follows:
Sec. 401.126 Onion endorsement.
The provisions of the Onion Endorsement for the 1988 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(l), 1506(p).
4. Section 457.135 is added to read as follows:
Sec. 457.135 Onion Crop Insurance Provisions.
The Onion Crop Insurance Provisions for the 1998 and succeeding
crop years are as follows:
FCIC policies:
United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Onion Crop Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these Crop Provisions, and the Special Provisions; the Special
Provisions will control these Crop Provisions and the Basic
Provisions; and these Crop Provisions will control the Basic
Provisions.
1. Definitions.
Crop year. The period of time in which the onions are normally
grown and designated by the calendar year in which the onions are
normally harvested.
Damaged onion production. Storage type onions that do not grade
U.S. No. 1 or do not satisfy any other standards that may be
contained in the Special Provisions; or non-storage type onions
which do not satisfy standards contained in any applicable marketing
order or other standards that may be contained in the Special
Provisions.
Days. Calendar days.
Direct Marketing. Sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper or buyer. Examples of direct
marketing include selling through an on-farm or roadside stand,
farmer's market, and permitting the general public to enter the
field for the purpose of harvesting all or a portion of the crop.
FSA. The Farm Service Agency, an agency of the United States
Department of Agriculture, or a successor Agency.
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.
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
[[Page 28614]]
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 onions from the field after topping and
lifting or digging.
Hundredweight. 100 pounds avoirdupois.
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.
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.
Late planted. Acreage planted to the insured crop during the
late planting period.
Late planting period--The period that begins the day after the
final planting date for the insured crop and ends 25 days after the
final planting date.
Lifting or digging. A pre-harvest process in which the onion
roots are severed from the soil and the onion bulbs laid on the
surface of the soil for drying in the field.
Non-storage onions. Generally of a Bermuda, Granex, or Grano
variety, or hybrids developed from these varieties, that are
harvested as a bulb and dried only a short time, and consequently
have a higher moisture content. They are thinner skinned, contain a
higher sugar content, and are generally milder in flavor than
storage onions. Due to a higher moisture and sugar content, they are
subject to deterioration both on the surface and internally if not
used shortly after harvest.
Onion production. Onions of recoverable size and condition, with
excess dirt and foliage material removed and that are not considered
damaged onion production.
Planted acreage. Land in which onion seed has been placed by a
machine appropriate for the insured crop and planting method, or in
which onion plants or sets have been transplanted by machine or by
hand, at the correct depth, into a seedbed that has been properly
prepared for the planting method and production practice. Onions
must initially be planted in rows to be considered planted.
Practical to replant. In lieu of the definition of ``Practical
to replant'' contained in section 1 of the Basic Provisions
(Sec. 457.8), practical to replant is defined as our determination,
after loss or damage to the insured crop, based on factors including
but not limited to moisture availability, condition of the field,
time to crop maturity, and marketing window, that replanting the
insured crop will allow the crop to attain maturity prior to the
calendar date for the end of the insurance period. It will not be
considered practical to replant after the end of the late planting
period unless replanting is generally occurring in the area.
Prevented planting. Inability to plant the insured crop with
proper equipment by the final planting date designated in the
Special Provisions for the insured crop in the county or 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 the
majority of producers in the surrounding area from planting the same
crop.
Production guarantee (per acre):
(a) First stage production guarantee--Thirty-five percent (35%)
of the final stage production guarantee.
(b) Second stage production guarantee--Sixty percent (60%) of
the final stage production guarantee.
(c) Final stage production guarantee--The quantity of onions (in
hundredweight) determined by multiplying the approved yield per acre
by the coverage level percentage you elect.
Replanting. Performing the cultural practices necessary to
replace the onion seed or onion transplants, and then replacing the
onion seed or onion transplants in the insured acreage with the
expectation of growing a crop that will produce at least the yield
used to determine the production guarantee.
Storage onions. Onions other than a Bermuda, Granex, or Grano
variety, or hybrids developed from these varieties that are
harvested as a bulb and dried to a lower moisture content, are
firmer, have more outer layers of paper-like skin, and are darker in
color than non-storage onions. They are generally more pungent, have
a lower sugar content, and can normally be stored for several months
under proper conditions prior to use without deterioration.
Timely planted. Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the
county.
Topping. A pre-harvest process to initiate curing, in which
onion foliage is removed or bent over.
Type. A category of onions as identified in the Special
Provisions.
Written agreement. A written document that alters designated
terms of this policy in accordance with section 15.
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.
(b) Basic units may not be divided into optional units on any
basis 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 additional
premium paid for the optional units that have been combined will be
refunded to you.
(d) All optional units you selected 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 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;
(3) 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 be kept separate until
after loss adjustment is completed by us; and
(4) Optional units meet one or more of the following, as
applicable, unless otherwise provided by written agreement:
(i) Optional Units Based on Irrigated Acreage or Non-Irrigated
Acreage: To qualify as separate irrigated and non-irrigated optional
units, the non-irrigated acreage may not continue into the irrigated
acreage in the same rows or planting pattern. The irrigated acreage
may not extend beyond the point at which the irrigation system can
deliver the quantity of water needed to produce the yield on which
your guarantee is based, except the corners of a field in which a
center-pivot irrigation system is used will be considered as
irrigated acreage if separate acceptable records of production from
the corners are not provided. If the corners of a field in which the
center pivot irrigation system is used do not qualify as a separate
non-irrigated optional unit, they will be a part of the unit
containing the irrigated acreage. However, non-irrigated acreage
that is not a part of a field in which a center pivot irrigation
system is used may qualify as a separate optional unit provided all
requirements of this section are met; or
(ii) Optional Units Based on Onion Type: To qualify for a
separate optional unit by type, that type of onion must be
designated in the Special Provisions.
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
(a) In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8), you may select only one price
election for all the onions in the county insured under this policy
unless the Special Provisions provide different price elections by
type, in which case you may select one price election for each onion
type designated in the Special Provisions. The price elections you
choose for each type must have the same percentage relationship to
the maximum price offered by us for each type. For example, if you
choose 100 percent of the maximum price election for one type, you
must also choose 100 percent of the maximum price election for all
other types.
(b) Your production guarantee progresses, in stages, to the
final stage production guarantee. Stages will be determined on an
acre basis and at least 75% of the plants on such acreage must be at
the same stage to qualify for the applicable stage guarantee. The
stages are as follows:
(1) First stage extends from planting through the emergence of
the third leaf for
[[Page 28615]]
direct seeded onions, and has a guarantee of 35 percent of the final
stage production guarantee.
(2) Second stage extends from emergence of the fourth leaf for
direct seeded onions, or from transplanting of onion plants or sets,
until the acreage has been subjected to topping and lifting or
digging, and has a guarantee of 60 percent of the final stage
production guarantee.
(3) Final stage extends from the completion of topping and
lifting or digging on the acreage until the end of the insurance
period, and is the quantity of onions (in hundredweight) determined
by multiplying the approved yield per acre by the coverage level
percentage elected.
(c) Any acreage of onions damaged in the first or second stage,
to the extent that producers in the area would not normally further
care for the onions, will be deemed to have been destroyed even
though you may continue to care for the onions. The production
guarantee for such acreage will not exceed the production guarantee
for the stage in which the damage occurred.
4. Contract Changes.
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is June 30
preceding the cancellation date for counties with an August 31
cancellation date, and November 30 preceding the cancellation date
for all other counties.
5. Cancellation and Termination Dates.
In accordance with section 2 (Life of the Policy, Cancellation,
and Termination) of the Basic Provisions (Sec. 457.8), the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and
State and county termination date
------------------------------------------------------------------------
All Georgia Counties; Umatilla County, Oregon; Aug. 31.
Kinney, Uvalde, Medina, Bexar, Wilson, Karnes,
Bee, and San Patricio, Counties, Texas, and all
Texas Counties lying south thereof; Walla Walla
County, Washington.
All other states and counties.................... Feb. 1.
------------------------------------------------------------------------
6. Annual Premium.
In lieu of the provisions of section 7(c) (Annual Premium) of
the Basic Provisions (Sec. 457.8), the annual premium amount is
computed by multiplying the final stage production guarantee by the
price election, the premium rate, the insured acreage, your share at
the time of planting, and any applicable premium adjustment factors
contained in the Actuarial Table.
7. Insured Crop.
In accordance with section 8 (Insured Crop of the Basic
Provisions (Sec. 457.8), the crop insured will be all the storage
and non-storage onions (excluding green (bunch) or seed onions,
chives, garlic, leeks, and scallions) in the county for which a
premium rate is provided by the Actuarial Table:
(a) In which you have a share;
(b) That are planted for harvest as either storage onions or
non-storage onions;
(c) That are not (unless allowed by the Special Provisions or by
written agreement):
(1) Interplanted with another crop, unless the onions are
interplanted with a windbreak crop and the windbreak crop is
destroyed within 70 days after completion of seeding or
transplanting; or
(2) Planted into an established grass or legume.
8. Insurable Acreage.
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), we will not insure any acreage
of the insured crop that:
(a) Was planted the previous year to storage or non-storage
onions, green (bunch) onions, seed onions, chives, garlic, leeks,
shallots, or scallions unless different rotation requirements are
specified in the Special Provisions or we agree in writing to insure
such acreage; or
(b) Is damaged before the final planting date to the extent that
the majority of producers in the area would normally not further
care for the crop and is not replanted, unless we agree that it is
not practical to replant.
9. Insurance Period.
(a) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), the acreage must be
planted on or before the final planting date designated in the
Special Provisions except as allowed in section 14(c).
(b) The insurance period ends at the earliest of:
(1) The calendar date for the end of the insurance period as
follows:
(i) June 1 for Vidalia, and any other non-storage onions planted
in the State of Georgia;
(ii) July 15 for 1015 Super Sweets, and any other non-storage
onions in the State of Texas;
(iii) July 31 for Walla Walla Sweets, and any other non-storage
onions in the states of Oregon and Washington;
(iv) August 31 for all non-storage onions in any other state;
and
(v) October 15 for all storage onions; or
(2) The following event for each unit or portion of a unit:
(i) Removal of the onions from the field; or
(ii) Fourteen days after lifting or digging.
10. 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 within the
insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(5) Wildlife, unless control measures have not been taken;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if caused by an
insured peril that occurs during the insurance period.
(b) In addition to the causes of loss not insured against as
listed in section 12 (Causes of Loss) of the Basic Provisions
(Sec. 457.8), we will not insure against any loss of production due
to damage that occurs or becomes evident after the end of the
insurance period, including, but not limited to, loss of production
that occurs after onions have been placed in storage.
11. Replanting Payment.
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment is allowed if
the crop is damaged by an insurable cause of loss to the extent that
the remaining stand will not produce at least 90 percent of the
final stage production guarantee for the acreage and we determine
that it is practical to replant.
(b) The maximum amount of the replanting payment per acre will
be the lesser of 7 percent of the final stage production guarantee
or 18 hundredweight multiplied by your price election for the type
and by your insured share.
(c) When onions are 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. The premium
amount will not be reduced.
12. Duties in the Event of Damage or Loss.
(a) In accordance with the requirements of section 14 (Duties in
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8),
any representative samples of the unharvested crop that may be
required 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.
(b) You must notify us at least 15 days before any production
from any unit will be sold by direct marketing. We will conduct an
appraisal that will be used to determine your production to count
for production that is sold by direct marketing. If damage occurs
after this appraisal, we will conduct an additional appraisal. These
appraisals, and any acceptable records provided by you, will be used
to determine your production to count. Failure to give timely notice
that production will be sold by direct marketing will result in an
appraised amount of production to count that is not less than the
production guarantee per acre if such failure results in our
inability to make the required appraisal.
[[Page 28616]]
13. Settlement of Claim.
(a) We will determine your loss on a unit basis. In the event
you are unable to provide production records:
(1) For any optional units, we will combine all optional units
for which acceptable production records were not provided; or
(2) For any basic units, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for the units.
(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 each result of section 13(b)(1) by the
respective price election;
(3) Totaling the results in section 13(b)(2);
(4) Multiplying the total production to be counted (see section
13(c)) by the respective price elections you chose;
(5) Totaling the results of section 13(b)(4);
(6) Subtracting the result in section 13(b)(5) from the result
in 13(b)(3); and
(7) Multiplying the result in section 13(b)(6) by your share.
(c) The total production (in hundredweight) 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) That is direct marketed to consumers if you fail to meet the
requirements contained in section 12;
(C) Put to another use without our consent;
(D) That is damaged solely by uninsured causes; or
(E) For which you fail to provide production records that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested onion production (mature unharvested
production may be adjusted based on the percent of damaged onion
production in accordance with section 13(d));
(iv) The appraised production that exceeds the difference
between the first or second stage (as applicable) and the final
stage production guarantee for acreage that does not qualify for the
final stage guarantee, if such acreage is not subject to section
13(c)(1) (i) and (ii); and
(v) Potential production on insured acreage that you intend to
put to another use or abandon, 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.
(vi) 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
onion production or appraisals from the samples at the time harvest
should have occurred. If you do not leave the required samples
intact, or 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 onion
production, or our reappraisal if additional damage occurs and the
crop is not harvested.
(2) All harvested onion production from the insurable acreage.
(d) If the damage to onion production (harvested or unharvested)
exceeds the percentage shown by type in the Special Provisions, no
production will be counted for that unit or portion of a unit unless
the damaged onion production from that acreage is subsequently sold.
(e) The extent of any damaged onion production must be
determined not later than the time onions are placed in storage if
the production is stored prior to sale, or the date the onions are
delivered to a packer, processor, or other handler if production is
not stored.
14. Late Planting and Prevented Planting.
(a) In lieu of provisions contained in the Basic Provisions
(Sec. 457.8) regarding acreage initially planted after the final
planting date and the applicability of a Late Planting Agreement
Option, insurance will be provided for acreage planted to the
insured crop during the late planting period (see section 14(c)) and
you were prevented from planting (see section 14(d)). These
coverages provide reduced production guarantees. 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.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
(c) Late Planting
(1) For onion acreage planted during the late planting period,
the production guarantee for each acre will be reduced for each day
planted after the final planting date by:
(i) One percent (1%) per day for the 1st through the 10th day;
and
(ii) Two percent (2%) per day for the 11th through the 25th 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 onions 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 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 timely planting onions, you may
elect:
(i) To plant onions during the late planting period. The
production guarantee for such acreage will be determined in
accordance with section 14(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be 35 percent of the final stage production
guarantee for timely planted acres. For example, if your production
guarantee for timely planted acreage is 300 hundredweight per acre,
your prevented planting production guarantee would be 105
hundredweight per acre (300 hundredweight multiplied by 0.35). If
you elect to plant the insured crop after the late planting period,
production to count for such acreage will be determined in
accordance with section 13; or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case:
(A) No prevented planting production guarantee will be provided
for such acreage if the substitute crop is planted on or before the
10th day following the final planting date for the insured crop; or
(B) A production guarantee equal to 17.5 percent of the final
stage production guarantee for timely planted acres will be provided
for such acreage, if the substitute crop is planted after the 10th
day following the final planting date for the insured crop. If you
elected the Catastrophic Risk Protection Endorsement or excluded
this coverage, and plant a substitute crop, no prevented planting
coverage will be provided. For example, if your production guarantee
for timely planted acreage is 300 hundredweight per acre, your
prevented planting production guarantee would be 52.5 hundredweight
per acre (300 hundredweight multiplied by 0.17.5). You may elect to
exclude prevented planting coverage when a substitute crop is
planted for harvest and receive a reduction in the applicable
premium rate. If you wish to exclude this coverage, you must so
indicate, on or before the sales closing date, on your application
or on a form approved by us. Your election to exclude this coverage
will remain in effect from year to year unless you notify us in
writing on our form by the applicable sales closing date for the
crop year for which you wish to include this coverage. All acreage
of the crop insured under this policy will be subject to this
exclusion.
(2) Production guarantees for timely, late, and prevented
planting acreage within a unit will be combined to determine the
production guarantee for the unit. For example, assume you insure
one unit in which you have a 100 percent share. The unit consists of
150 acres, of which 50 acres were planted timely, 50 acres were
planted 7 days after the final planting date (late planted), and 50
acres were not planted but are eligible for a prevented planting
production guarantee. The production guarantee for the unit will be
computed as follows:
(i) For the timely planted acreage, multiply the per acre
production guarantee for timely planted acreage by the 50 acres
planted timely;
(ii) For the late planted acreage, multiply the per acre
production guarantee for timely
[[Page 28617]]
planted acreage by 93 percent and multiply the result by the 50
acres planted late; and
(iii) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(A) Thirty-five percent and multiply the result by the 50 acres
you were prevented from planting, if the acreage is eligible for
prevented planting coverage, and if the acreage is left idle for the
crop year, or if a cover crop is planted not for harvest. Prevented
planting compensation hereunder will not be denied because the cover
crop is hayed or grazed; or
(B) Seventeen and one-half percent and multiply the result by
the 50 acres you were prevented from planting, if the acreage is
eligible for prevented planting coverage, and if you elect to plant
a substitute crop for harvest after the 10th day following the final
planting date for the insured crop (This paragraph (B) is not
applicable, and prevented planting coverage is not available under
these crop provisions, if you elected the Catastrophic Risk
Protection Endorsement or you elected to exclude prevented planting
coverage when a substitute crop is planted (see section
14(d)(1)(iii)).)
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.
(3) You must have the inputs available to plant and produce the
intended crop with the expectation of at least producing the
production guarantee. Proof that these inputs were available may be
required.
(4) 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) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase insurance for onions for the
1998 crop year, prevented planting coverage will begin on the 1998
sales closing date for onions in the county. If the onion coverage
remains in effect for the 1999 crop year (is not terminated or
canceled during or after the 1998 crop year) prevented planting
coverage for the 1999 crop year began on the 1998 sales closing
date. Cancellation for the purposes of transferring the policy to a
different insurance provider when there is no lapse in coverage will
not be considered terminated or canceled coverage for the purpose of
the preceding sentence.
(5) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all FSA Farm Serial
Numbers in which you have a share, adjusted for any reconstitution
that may have occurred on or before the sales closing date. Eligible
acreage for each FSA Farm Serial Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing on or
before the sales closing date, eligible acreage will not exceed the
greater of:
(A) The FSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to onions on the FSA Farm Serial
Number during the previous crop year; or
(C) One-hundred percent of the simple average of the number of
acres planted to onions during the crop years that you certified to
determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) A prevented planting production guarantee will not be
provided for any acreage:
(A) That does not constitute at least 20 acres or 20 percent of
the acreage in the unit, whichever is less (Acreage that is less
than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from being planted, if
you have already received a prevented planting indemnity, guarantee
or amount of insurance for the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last 4 years in which the insured crop was grown on the acreage;
(E) On which the insured crop is prevented from being planted,
if any other crop is planted and fails, or is planted and harvested,
hayed or grazed on the same acreage in the same crop year (other
than a cover crop as specified in section 14 (d)(2)(iii)(A) or a
substitute crop allowed in section 14 (d)(2)(iii)(B)), unless you
provide adequate records of acreage and production showing that the
acreage has a history of double-cropping in each of the last 4 years
in which the insured crop was grown on the acreage;
(F) When coverage is provided under the Catastrophic Risk
Protection Endorsement if you plant another crop for harvest on any
acreage you were prevented from planting in the same crop year, even
if you have a history of double-cropping. If you have a Catastrophic
Risk Protection Endorsement and receive a prevented planting
indemnity, guarantee, or amount of insurance for a crop and are
prevented from planting another crop on the same acreage, you may
only receive the prevented planting indemnity, guarantee, or amount
of insurance for the crop on which the prevented planting indemnity,
guarantee, or amount of insurance is received; or
(G) For which planting history or conservation plans indicate
that the acreage would have remained 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 onion 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 share.
The acreage is located in a single FSA Farm Serial Number which you
insure as two separate optional units consisting of 50 acres each.
If you planted 60 acres of onions on one optional unit and 40 acres
of onions on the second optional unit, your prevented planting
eligible acreage would be reduced to zero (i.e., 100 acres eligible
for prevented planting coverage minus 100 acres planted equals
zero).
(6) In accordance with the provisions of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), you must report by
unit any insurable acreage that you were prevented from planting.
This report must be submitted on or before the acreage reporting
date. For the purpose of determining acreage eligible for a
prevented planting production guarantee, the total amount of
prevented planting and planted acres cannot exceed the maximum
number of acres eligible for prevented planting coverage. Any
acreage you report in excess of the number of acres eligible for
prevented planting coverage, or that exceeds the number of eligible
acres physically located in a unit, will be deleted from your
acreage report.
15. 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
15(e);
(b) The application for written agreement must contain all terms
of the contract between the insurance provider and the insured that
will be in effect if the written agreement is not approved;
(c) If approved by us, 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 written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the
[[Page 28618]]
acreage, it is determined that no loss has occurred and the crop is
insurable in accordance with the policy and written agreement
provisions.
Signed in Washington, D.C., on. May 19, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-13801 Filed 5-23-97; 8:45 am]
BILLING CODE 3410-08-P
