[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13128]
[[Page Unknown]]
[Federal Register: May 31, 1994]
VOL. 59, NO. 103
Tuesday, May 31, 1994
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Coarse Grains Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes
to establish provisions to insure coarse grains (corn, grain sorghum,
and soybeans). The provisions will supplement the Common Crop Insurance
Policy which contains standard terms and conditions common to most
crops. This rule consolidates the provisions of insuring coarse grains
into one policy and provides automatic coverage for late and prevented
planting. The intended effect of this proposed rule is to move these
individual crops to the Common Crop Insurance Policy for ease of use by
the public and conformance among policy languages.
DATES: Written comments, data, and opinions on this proposed rule must
be submitted no later than June 30, 1994, to be sure of consideration.
ADDRESSES: Written comments on this proposed rule should be sent to
Mari Dunleavy, Regulatory and Procedural Development Staff, Federal
Crop Insurance Corporation, USDA, Washington, DC 20250. Hand or
messenger delivery may be made to suite 500, 2101 L St. NW.,
Washington, DC 20250.
FOR FURTHER INFORMATION CONTACT:
Mari L. Dunleavy, Regulatory and Procedural Development Staff, Federal
Crop Insurance Corporation, USDA, Washington, DC 20250. Telephone (202)
254-8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under USDA
procedures established by Executive Order 12866 and Departmental
Regulation 1512-1. This action constitutes a review as to the need,
currency, clarity, and effectiveness of these regulations under those
procedures. The sunset review date established for these regulations is
March 1, 1999.
This rule has been determined to be not significant for purposes of
Executive Order 12866 and therefore, has not been reviewed by the
Office of Management and Budget (OMB).
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501 et seq.), the information collection or record-keeping
requirements included in this proposed rule can be found in 7 CFR part
400 subpart H.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this proposal does not have sufficient federalism
implications to warrant the preparation of a federalism assessment. The
policies and procedures contained in this rule will not have
substantial direct effects on states or their political subdivisions,
or on the distribution of power and responsibilities among the various
levels of government.
This action would not have a significant impact on a substantial
number of small businesses. The insurance companies delivering these
policies will not increase the amount of work required over the
previous policy delivery. The combination of a number of previously
independent policies into one policy should reduce confusion and
increase efficiency. Therefore, this action is determined to be exempt
from the provisions of the Regulatory Flexibility Act and no Regulatory
Flexibility Analysis was prepared.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
This program is not subject to the provisions of Executive Order
12372 which requires intergovernmental consultation with state and
local officials. See the notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
The Office of General Counsel has determined that these regulations
meet the applicable standards provided in subsections 2(a) and 2(b)(2)
of Executive Order 12778. The provisions of this rule will preempt
state and local laws to the extent such state and local laws are
inconsistent herewith. The administrative appeal provisions located at
7 CFR part 400, subpart J must be exhausted before judicial action may
be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
By separate rule, FCIC will limit the effect of the present
policies covered by current crop endorsements to a period before the
crop year for which this rule will be effective.
The coarse grains crop provisions were developed to provide one
policy form for insuring corn, grain sorghum, and soybeans. Using one
policy for these three crops will:
(1) Substantially reduce paperwork by issuing one policy rather
than the three separate policies presently used;
(2) Reduce the time required to amend or revise the provisions by
eliminating the repetitious review process; and
(3) Continue to allow insureds the flexibility to elect any of the
three coarse grain crops they wish to insure.
The principle proposed differences between the previous provisions
for corn, grain sorghum, and soybeans and the new coarse grain
provisions are as follows:
1. FCIC has received numerous requests to revise the corn crop
insurance provisions to allow producers to insure corn acreage intended
to be harvested as grain on a grain basis, and corn acreage intended to
be harvested as silage on a silage basis. The present corn provisions
require all insurable corn acreage in a county to be insured on either
a grain basis under the corn endorsement or a silage basis if the corn
silage option is elected by the insured. FCIC proposes a change to the
corn provisions to eliminate the corn silage option and permit the
insured to separately designate acreage intended for harvest as grain
and as silage.
2. Subsection 1.(k) specifies that the local market price for corn
will be the cash grain price per bushel for U.S. No. 2 yellow corn and
is intended to clarify the quality adjustment standard. Current
regulations state that this price will be for U.S. No. 2 corn.
3. Subsection 1.(l) requires that acreage be initially planted in
rows far enough apart to permit mechanical cultivation in order to be
insurable under published rates and coverages unless otherwise allowed
by the Special Provisions or by written agreement.
4. Subsection 3.(a) requires that an insured may select only one
price election for all the grain sorghum insured under this policy,
only one price election for all the soybeans insured under this policy,
only one price election for all the corn insured as silage under this
policy, and only one price election for all the corn insured as grain
under this policy.
5. Subsection 3.(b) provides that when the insured harvests insured
corn in a manner other than the manner initially reported (for example,
reported grain but harvested as silage) and has not selected a price
election for the type harvested, the insurer will assign a price
election for the type harvested that bears the same percentage
relationship to the maximum price election for the type harvested
specified in the Special Provisions as does the price election selected
by the insured for the reported type. This assigned price election will
be used to determine the dollar value of production to count for
indemnity purposes.
6. Section 4 provides that the contract change date is November 30
for all counties so as to maintain an adequate time period between this
date and the revised cancellation dates (see item 7 below).
7. Section 5 provides that cancellation and termination dates for
coarse grains be changed to February 15 for Texas counties that
currently have March 31 dates, to February 28 for states that currently
have March 31 dates, and to March 15 in states and counties that
currently have April 15 dates. The cancellation and termination dates
for corn and grain sorghum have been changed to January 15 for Texas
counties that currently have February 15 dates. These changes are
intended to reduce the probability that the insured may make a
determination of whether to buy insurance on the probability that a
loss may occur or has already occurred.
8. Paragraph 6.(a)(2) requires that the grain variety planted must
be adapted to the area based on days to maturity and compatibility with
agronomic and weather conditions.
9. Paragraph 6.(a)(3) permits requests to insure coarse grains
planted into an established grass or legume or interplanted with
another crop. This provision makes insurance available by written
agreement for crops grown with a production practice that is not
normally followed in an area. The guarantee and premium rate will be
based on the specific production practice.
10. Paragraph 6.(b)(2) and subparagraph 6.(b)(2)(i) specify the
types of field corn (e.g., yellow dent corn, white corn, mixed yellow
and white corn, waxy corn, and high-lysine corn) that are insurable at
standard premium rates. If a written agreement allows, the insured may
insure special purpose corn, including high-amylose, high-oil, high-
protein, flint, flour, Indian, and blue corn, a variety genetically
adapted to provide forage for wildlife or any other open pollinated
corn. The special purpose written agreement will contain a premium rate
based on the specific type. This provision makes insurance available by
written agreement for kinds of field corn that are less commonly
produced.
11. Paragraph 6.(b)(2)(ii) provides that a variety of corn adapted
for use as silage only is not insurable when the corn is reported as
grain. This change prevents standard grain insurance guarantees from
attaching to silage varieties which may not produce as high as grain
varieties.
12. Subsection 6.(c) permits consideration for requests to insure
corn on a silage basis when the actuarial table does not provide a
premium rate for silage, and for requests to insure corn on a grain
basis when the actuarial table does not provide a premium rate for
grain. This provision makes insurance available by written agreement
for a type which may not normally be grown in the area and which must
have a guarantee and premium rate based on the specific grain type and
production practice.
13. Paragraph 6.(d)(3) permits consideration for requests to insure
a dual-purpose type of grain sorghum (a type used for both grain and
forage). This provision makes insurance available by written agreement
for a type of grain which may not normally be grown in the area and
which must have a guarantee and premium rate based on the specific
grain type and production practice.
14. Current provisions for corn and grain sorghum that state that
any acreage destroyed to comply with United States Department of
Agriculture programs will not be insured have been deleted from the
proposed coarse grains crop provisions. Under those provisions
insurance was provided on a crop until it was destroyed without any
premium being paid.
15. Section 7 provides that any acreage damaged prior to the final
planting date, to the extent that the remaining stand will not produce
at least 90 percent of the production guarantee, must be replanted
unless the insurer agrees that replanting is not practical. This
requirement to replant is currently in effect, but fails to clearly
indicate the percent of damage that requires replanting.
16. Subsections 8.(a) and (b) specify different end of insurance
period dates for corn acreage insured as grain and for corn acreage
insured as silage. These provisions allow the insurance period to be
based on the type reported since this is the basis for the premium
charged, not the type harvested, and the insurance risk changes by type
after a specific period.
17. Subsection 10.(a) does not allow a replanting payment for any
acreage replanted more than 25 days after the final planting date since
it could be generally impractical to replant.
18. Subsection 10.(b) limits the replanting payment per acre to the
lesser of 20 percent of the production guarantee or eight bushels for
corn insured as grain, one tone for corn insured as silage, seven
bushels for grain sorghum, and three bushels for soybeans, multiplied
by the insured's price election multiplied by the insured's share.
Current provisions do not contain the 20 percent limitation. It was
added to prevent insureds, who elect a lower coverage level, from
receiving a replanting payment that exceeds the original liability.
19. Subsection 10.(c) allows replanting payments in excess of the
insured share to be made to insureds if there is an agreement between
the shareholders that:
(1) Requires one person to incur the entire cost of replanting; or
(2) Gives the right to any replanting payment to a single insured
person, who incurred the cost of replanting.
20. Subsection 10.(d) requires that the liability for the unit be
reduced by the amount of the replanting payment attributable to the
insured's share if the acreage is replanted with a method that is not
insurable for an original planting.
21. Paragraphs 11.(b)(1) and 11.(b)(2) require that for any corn
unit that has two different dates for the end of the insurance period
(a separate end of insurance period date for grain and for silage), the
insured is required to:
(1) Give notice of damage within 72 hours of initial discovery of
damage (but not later than 15 days after the earliest end of the
insurance period for the unit) if damage occurs before the earliest end
of the insurance period for the unit; and
(2) Submit a claim for indemnity declaring the amount of loss not
later than 60 days after the latest date for the end of insurance
period for the unit.
22. Paragraph 12.(b)(2) modifies calculations of corn claims for
indemnity. The production guarantee for each type reported will be
multiplied by the insured acreage for that type and further multiplied
by the appropriate price election. The guarantee for the unit will be
the sum of these calculations for each type. Production to count of
each type will be multiplied by the appropriate price election. The
total value of production to count is the sum of these calculations for
each type. An indemnity is payable if the guarantee exceeds the value
of production to count. This modification is necessary to accommodate
both grain and silage guarantees and grain and silage production to
count within a unit.
23. Subsection 12.(d) provides that all production to count will be
determined in bushels for grain and in tons for silage. Production to
count for harvested acreage will be according to the method of harvest
and for unharvested acreage according to the information contained on
the acreage report, except as otherwise provided.
24. Subsection 12.(e) allows adjustments to production for
excessive moisture to be made separately from any adjustments for
quality defenciencies. This change is made because wide variations in
charges associated with the drying and handling of high moisture
production has caused production of equal quality and moisture content
to be valued differently. These differences in value caused inequities
in indemnity payments under the current policy.
25. Subparagraph 12.(e)(1)(i) allows adjustment of production to
count when corn moisture exceeds 15.0 since this is the most commonly
used percentage in corn markets. Current corn provisions allow
production to be adjusted for moisture in excess of 15.5 percent but
not exceeding 40 percent.
26. Paragraph 12.(e)(4) provides that coarse grain production that
is eligible for quality adjustment will be reduced by the quality
adjustment factor contained in the Special Provisions.
List of Subjects in 7 CFR Part 457
Crop insurance, corn, grain sorghum, soybean.
Proposed Rule
Pursuant to the authority contained in the Federal Crop Insurance
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance
Corporation hereby proposes to amend the Common Crop Insurance
Regulations, (7 CFR part 457) to read as follows:
PART 457--COMMON CROP INSURANCE; REGULATIONS FOR THE 1994 AND
SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506, 1516.
2. 7 CFR part 457 is amended by adding a new section, 457.113
Coarse Grains Crop Insurance Provisions, to read as follows:
Sec. 457.113 Coarse grains crop insurance provisions.
The Coarse Grains Crop Insurance Provisions for the 1995 and
succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Coars Grains Crop Provisions
If a conflict exists between the Common Crop Insurance Policy
(Sec. 457.8) and the Special Provisions, the Special Provisions will
control. If a conflict exists between these Crop Provisions and the
Special Provisions, the Special Provisions will control.
1. Definitions
(a) Coarse grains--Corn, grain sorghum, and soybeans.
(b) Days--Calendar days.
(c) 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.
(d) Good farming practices--Good farming practices are the
cultural practices generally in use in the county for the insured
crop to make normal progress toward maturity and produce at least
the yield used to determine the production guarantee and are those
recognized by the Cooperative Extension Service as compatible with
agronomic and weather conditions in the area.
(e) Grain sorghum--The crop defined as sorghum under the United
States Grain Standards Act.
(f) Harvest--Combining, threshing, or picking the insured crop
for grain, or cutting for hay, silage, or fodder.
(g) 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.
(h) 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.
(i) Late planted--Acreage planted to the insured crop during the
late planting period.
(j) Late planting period--The period that begins the day after
the final planting date for the insured crop and ends twenty-five
(25) days after the final planting date.
(k) Local market price--The cash grain price per bushel for the
U.S. No. 2 yellow corn, U.S. No. 2 grain sorghum, or U.S. No. 1
soybeans, offered by buyers in the area in which you normally market
the insured crop. The local market price will reflect the maximum
limits of quality deficiencies allowable for the U.S. No. 2 grade
for yellow corn and grain sorghum, or U.S. No. 1 grade soybeans.
Factors not associated with grading under the Official United States
Standards for Grain, including but not limited to protein and oil
will not be considered.
(l) Planted acreage--Land in which seed has been placed by a
machine appropriate for the insured crop and planting method, at the
correct depth, into a seedbed which has been properly prepared for
the planting method and production practice. Coarse grains must
initially be planted in rows far enough apart to permit mechanical
cultivation to be considered planted. Planting in any other manner
will be considered as a failure to follow recognized good farming
practices and any loss of production will not be insured unless
otherwise provided by the Special Provisions or by written agreement
to insure such crop.
(m) Practical to replant--In lieu of subsection 1.(ff) of the
Common Crop Insurance Policy (Sec. 457.8) practical to replant is
defined as follows: Our determination, after loss or damage to the
insured crop, based on factors including, but not limited to
moisture availability, condition of the field, and time to crop
maturity that replanting to the insured crop will allow the crop to
attain maturity and to produce at least ninety percent (90%) of the
production guarantee 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.
(n) Prevented planting--Inability to plant the insured crop with
proper equipment by:
(1) The final planting date designated in the Special Provisions
for the insured crop in the country; or
(2) The end of the late planting period.
You must have been unable to plant the insured crop due to an
insured cause of loss that has prevented most producers in the
surrounding area from planting due to similar insurable causes. The
insured cause of prevented planting must occur between the sales
closing date and the final planting date for the insured crop in the
county or within the late planting period.
(o) Production guarantee--The number of bushels (tons for corn
insured as silage) determined by multiplying the approved yield per
acre by the coverage level percentage you elect.
(p) Replanting--Performing the cultural practices necessary to
replace the seed of the same insured crop, and replacing the seed
for the same crop in the insured acreage with the expectation of
growing a successful crop.
(q) Silage--Severing the plant from the land and chopping it for
the purpose of livestock feed.
(r) Timely planted--Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the
county.
(s) Ton--Two thousand (2000) pounds avoirdupois.
(t) Written agreement--Designated terms of this policy may be
altered by written agreement. Any request for such written agreement
must be made at least fifteen (15) days prior to the sales closing
date and the terms of such agreement must be offered and accepted in
writing prior to the sales closing date. Each agreement is for one
year only and if not specifically renewed the following year
continuous insurance will be in accordance with the printed policy.
All variable terms including, but not limited to, crop variety,
guarantee, premium and price election must be set out in the written
agreement.
2. Unit Division
Unless limited by the Special Provisions, a unit as defined in
subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8),
may be divided into optional units if, for each optional unit you
meet all the conditions of this section or if a written agreement to
such division exists. All optional units must be reflected on the
acreage report for each crop year.
(a) You must have records, which can be independently verified,
of planted acreage and production for each optional unit for at
least the last crop year used to determine your production
guarantee.
(b) You must plant the crop in a manner that results in a clear
and discernable break in the planting pattern at the boundaries of
each optional unit.
(c) You must have records of measurement of stored or marketed
production from each optional unit maintained in such a manner that
we can verify the production from each optional unit or the
production from each unit must be kept separate until after loss
adjustment under the policy is completed.
(d) Each optional unit must meet one or more of the following
criteria as applicable:
(1) Optional Units by Section, Section Equivalent, or ASCS Farm
Serial Number: Optional units may be established if each optional
unit is located in a separate legally identified Section. In the
absence of Sections, we may consider parcels of land legally
identified by other methods of measure including, but not limited
to: Spanish grants, railroad surveys, leagues, labors, or Virginia
Military Lands as the equivalent of Sections for unit purposes. In
areas which have not been surveyed using the systems identified
above or another system approved by us, or in areas where such
systems exist but boundaries are not readily discernable, each
optional unit must be located in a separate farm identified by a
single ASCS Farm Serial Number.
(2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing
optional units by section, section equivalent, or ASCS Farm Serial
Number, optional units may be established based on irrigated acreage
or non-irrigated acreage if both are located in the same Section,
section equivalent, or ASCS Farm Serial Number. The irrigated
acreage may not extend beyond the point at which your irrigation
system can deliver the quantity of water needed to produce the yield
on which your guarantee is based and you may not continue into non-
irrigated acreage in the same rows or planting pattern. You must
plant, cultivate, fertilize, or otherwise care for the irrigated
acreage and the non-irrigated acreage in accordance with recognized
good irrigated farming practices.
Basic units may not be divided into optional units on any basis
(production practice, type, variety, planting period, etc.) other
than as described under this section. If you do not comply fully
with these provisions, we will combine all optional units which are
not in compliance with these provisions into the basic unit from
which they were formed. We may combine the optional units at any
time we discover that you have failed to comply with these
provisions. If failure to comply with these provisions is determined
to be inadvertent, and the optional units are combined, the premium
paid for the purpose of electing optional units will be refunded to
you.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements under section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Common Crop Insurance Policy (Sec. 457.8) you may select:
(1) For grain sorghum and soybeans, only one price election for
each crop in the county insured under this policy; and
(2) For corn, only one price election for all the corn in the
county insured as grain under this policy, and only one price
election for all the corn in the county insured as silage under this
policy.
(b) For corn only, to determine the dollar value of production
to count for indemnity purposes, if you harvest the crop in a manner
other than the manner you reported (for example, you reported grain
but harvested as silage) and you did not select a price election for
the type harvested, we will assign a price election for the type
harvested that bears the same percentage relationship to the maximum
price election you selected for the type reported (for example, if
you selected a grain price election in the amount of 80% of the
maximum price election for grain and you did not select a silage
price election, we will assign a silage price election in the amount
of 80% of the maximum price election for silage specified in the
Special Provisions if you harvest for silage).
4. Contract Changes
The contract change date is November 30 preceding the
cancellation date (see the provisions under section 4 (Contract
Changes) of the Common Crop Insurance Policy (Sec. 457.8)).
5. Cancellation and Termination Dates
In accordance with subsection 2.(f) of the Common Crop Insurance
Policy (Sec. 457.8), the cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation and
State and county termination
dates
------------------------------------------------------------------------
(a) For corn and grain sorghum:
Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, January 15.
Karnes, Golaid, Victoria, and Jackson Counties,
Texas, and all Texas counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves, Loving, February 15.
Winkler, Ector, Upton, Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch, San Saba, Mills,
Hamilton, Bosque, Johnson, Tarrant, Wise, Cooke
Counties, Texas, and all Texas counties lying south
and east thereof to an including Terrell, Crockett,
Sutton, Kimble, Gillespie, Blanco, Comal,
Guadalupe, Gonzales, De Witt, Lavaca, Colorado,
Wharton, and Matagorda Counties, Texas.
Alabama; Arizona; Arkansas; California; Florida; February 28.
Georgia; Louisiana; Mississippi; Nevada; North
Carolina; and South Carolina.
All other Texas counties and all other states....... March 15.
(b) For soybeans:
Jackson, Victoria, Goliad, Bee, Live Oak, McMullen, February 15.
LaSalle, and Dimmit Couinties, Texas and all Texas
counties lying south thereof.
El Paso, Hudspeth, Culberson, Reeves, Loving, February 15.
Winkler, Ector, Upton, Reagan, Sterling, Coke, Tom
Green, Concho, McCulloch, San Saba, Mills,
Hamilton, Bosque, Johnson, Tarrant, Wise, Cooke
Counties, Texas, and all Texas counties lying south
and east thereof to and including Marverick,
Zavala, Frio, Atascosa, Karnes, De Witt, Lavaca,
Colorado, Wharton, and Matagorad Counties, Texas.
Alabama; Arizona; Arkansas; California; Florida; February 28.
Georgia; Louisiana; Mississippi; Nevada; North
Carolina; and South Carolina.
All other Texas counties and all other states....... March 15.
------------------------------------------------------------------------
6. Insured Crop
(a) In accordance with section 8 (Insured Crop) of the Common
Crop Insurance Policy (Sec. 457.8), the crop insured will be each
coarse grain crop you elect to insure for which premium rates are
provided by the actuarial table:
(1) In which you have a share;
(2) That is adapted to the area based on days to maturity and is
compatible with agronomic and weather conditions in the area; and
(3) That is not (unless a written agreement allows otherwise):
(i) Interplanted with another crop except as allowed in
paragraph 6.(b)(1); or
(ii) Planted into an established grass or legume.
(b) For corn only, in addition to the provisions of subsection
6.(a), the corn crop insured will be all of the field corn that is:
(1) Planted for harvest either as grain or as silage (see
subsection 6.(c)). A mixture of corn and sorghum (grain or forage-
type) will be insured as corn silage if the sorghum does not
constitute more than twenty percent (20%) of the plants;
(2) Yellow dent or white corn, including mixed yellow and white,
waxy or high-lysine corn, and excluding:
(i) High-amylose, high-oil, high-protein, flint, flour, Indian,
or blue corn, or a variety genetically adapted to provide forage for
wildlife or any other open pollinated corn, unless a written
agreement allows insurance of such excluded crops.
(ii) A ``silage variety'' of corn (a variety of corn adapted for
silage use only) when the corn is reported for insurance as grain.
(c) For corn only, if the actuarial table for the county
provides a premium rate for:
(1) Both grain and silage, all insurable acreage will be insured
as the type or types reported by you on or before the acreage
reporting date;
(2) Grain but not silage, all insurable acreage will be insured
as grain unless a written agreement allows insurance on all or a
portion of the insurable acreage as silage; or
(3) Silage but not grain, all insurable corn acreage will be
insured as silage unless a written agreement allows insurance on all
or a portion of the insurable acreage as grain.
(d) For grain sorghum only, in addition to the provisions of
subsection 6.(a), the grain sorghum crop insured will be all of the
grain sorghum in the county:
(1) That is planted for harvest as grain;
(2) That is combine-type hybrid grain sorghum (grown from hybrid
seed); and
(3) That is not a dual-purpose type of grain sorghum (a type
used for both grain and forage), unless a written agreement allows
insurance of such grain sorghum.
(e) For soybeans only, in addition to the provisions of
subsection 6.(a), the soybean crop insured will be all of the
soybeans in the county that are planted for harvest as beans.
7. Insurable Acreage
In addition to the provisions under section 9 (Insurable
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), any
acreage of the insured crop damaged before the final planting date,
to the extent that the remaining stand will not produce at least
ninety percent (90%) of the production guarantee, must be replanted
unless we agree that replanting is not practical (see subsection
1.(m)).
8. Insurance Period
In accordance with the provisions under section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
calendar date for the end of the insurance period is the date
immediately following planting as follows:
(a) For corn insured as grain:
(1) Val Verde, Edwards, Kerr, Kendall, Bexar, September 30;
Wilson, Karnes, Goliad, Victoria, and Jackson
Counties, Texas, and all Texas counties lying
south thereof.
(2) Clark, Cowlitz, Grays Harbor, Island, October 31;
Jefferson, King Kitsap, Lewis, Pierce, Skagit,
Snohomish, Thurston, Wahkiakum, and Whatcom
Counties, Washington.
and
(3) All other counties and states................. December 10;
(b) For corn insured as silage:
All states........................................ September 30;
(c) For grain sorghum:
(1) Val Verde, Edwards, Kerr, Kendall, Bexar, September 30; and
Wilson, Karnes, Goliad, Victoria, and Jackson
Counties, Texas, and all Texas counties lying
south thereof.
(2) All other Texas counties and all other states. December 10;
and
(d) For soybeans: all states...................... December 10.
9. Causes of Loss
In accordance with the provisions of section 12 (Causes of Loss)
of the Common Crop Insurance Policy (Sec. 457.8), insurance is
provide only against the following causes of loss which occur within
the insurance period:
(a) Adverse weather conditions;
(b) Fire;
(c) Insects, but not damage due to insufficient or improper
application of pest control measures;
(d) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(e) Wildlife;
(f) Earthquake;
(g) Volcanic eruption; or
(h) Failure of the irrigation water supply.
10. Replanting Payments.
(a) In accordance with section 13 (Replanting Payment) of the
Common Crop Insurance Policy (Sec. 457.8), replanting payments for
coarse grains are allowed if the coarse grains are damaged by an
insurable cause of loss to the extent that the remaining stand will
not produce at least ninety percent (90%) of the production
guarantee for the acreage and replanting takes place not later than
25 days after the final planting date.
(b) The maximum amount of the replanting payment per acre will
be the lesser of twenty percent (20%) of the production guarantee or
the number of bushels (tons for corn insured as silage) shown below,
multiplied by your price election multiplied by your share:
(1) Corn:
(i) Grain--8 bushels;
(ii) Silage--1 ton;
(2) Grain sorghum--7 bushels; and
(3) Soybeans--3 bushels.
(c) When more than one person insures the same crop on a share
basis, a replanting payment based on the total shares insured may be
made to the insured person who incurs the total cost of replanting.
Payment will be made in this manner only if an agreement exists
between the insured persons which:
(1) Requires one person to incur the entire cost of replanting;
or
(2) Gives the right to all replanting payments to one person.
(d) When the insured crop is replanted using a practice that is
uninsurable as an original planting, the liability for the unit will
be reduced by the amount of the replanting payment which is
attributable to your share. The premium amount will not be reduced.
11. Duties in the Event of Damage or Loss
(a) In accordance with the requirements of section 14 (Duties in
the Event of Damage or Loss) of the Common Crop Insurance Policy
(Sec. 457.8), if you initially discover damage to any insured crop
within 15 days of or during harvest, you must leave representative
samples of the unharvested crop for our inspection. The samples must
be at least 10 feet wide and extend the entire length of each field
in the unit, and 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) For any corn unit that has separate dates for the end of the
insurance period (grain and silage):
(1) In lieu of paragraph 14.(a)(2) of the Common Crop Insurance
Policy (Sec. 457.8), if damage occurs before the earliest date
(grain or silage) for the end of the insurance period, you must give
us notice within 72 hours of your initial discovery of damage (but
not later than 15 days after that earliest date); and
(2) In lieu of subsection 14.(c) of the Common Crop Insurance
Policy (Sec. 457.8), in addition to complying with all other notice
requirements, you must submit a claim for indemnity declaring the
amount of your loss not later than 60 days after the latest date for
the end of insurance period for the unit. This claim must include
all the information we require to settle the claim.
12. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide records of production.
(1) For any optional unit, we will combine all optional units
for which acceptable records of production were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim:
(1) For grain sorghum and soybeans by:
(i) Multiplying the lesser of the reported or determined acreage
by the production guarantee;
(ii) Subtracting from this the total production to count;
(iii) Multiplying the remainder by your price election; and
(iv) Multiplying this result by your share.
(2) For corn by:
(i) Multiplying the lesser of the reported or determined acres
of each type grain/silage) by the production guarantee for that
type;
(ii) Multiplying each result by the price election for each
type;
(iii) Adding these values;
(iv) Multiplying the production to count of each type (see
subsection 12.(d)) by the price election for that type (see the
provisions under section 3 (Insurance Guarantees, Coverage Levels,
and Prices for Determining Indemnities));
(v) adding these dollar values;
(vi) subtracting the results of step (v) from the results of
step (iii); and
(vii) multiplying the result by your share.
(c) The total production in bushels (tons for corn silage) (see
subsection 12.(d)) to count from all insurable acreage on the unit
will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) Damaged solely by uninsured causes; or
(D) For which you fail to provide records of production that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested production may
be adjusted for quality deficiencies and excess moisture in
accordance with subsection 12.(e));
(iv) Potential production on insured acreage you want to put to
another use or you wish to abandon and no longer care for, if you
and we agree on the appraised amount of production. Upon such
agreement the insurance period for that acreage will end if you put
the acreage to another use or abandon the crop. If agreement on the
appraised amount of production is not reached:
(A) If you do not elect to continue to care for the crop we will
give you consent to put the acreage to another use if you agree to
leave intact, and provide sufficient care for, representative
samples of the crop in locations acceptable to us (The amount of
production to count for such acreage will be based on the harvested
production or appraisals from the samples at the time harvest should
have occurred. If you do not leave the required samples intact, or
you fail to provide sufficient care for the samples, our appraisal
made prior to giving you consent to put the acreage to another use
will be used to determine the amount of production to count.); or
(B) If you elect to continue to care for the crop, the amount of
production to count for the acreage will be the harvested
production, or our reappraisal if additional damage occurs and the
crop is not harvested; and
(2) All harvested production from the insurable acreage.
(d) The production to count for corn will be in bushels for
grain and in tons for silage as follows:
(1) For harvested acreage, according to the method of harvest;
and
(2) For unharvested acreage, according to the information
contained on your acreage report; except as otherwise provided in
paragraph 12.(c)(1).
(e) Mature coarse grain production (excluding corn insured or
harvested as silage) may be adjusted for excess moisture and quality
deficiencies. Corn insured or harvested as silage will be adjusted
for excess moisture and quality only as specified in subsection
12.(f).
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point of moisture in excess of:
(i) Fifteen percent (15%) for corn (If moisture exceeds 30
percent (30%), production will be reduced 0.2 percent for each 0.1
percentage point above 30 percent (30%));
(ii) Fourteen percent (14%) for grain sorghum; and
(iii) Thirteen percent (13%) for soybeans.
We may obtain samples of the production to determine the
moisture content.
(2) Production will be eligible for quality adjustment if:
(i) Deficiencies in quality, in accordance with the Official
United States Standards for Grain, result in:
(A) Corn not meeting the grade requirements for U.S. No. 4
(grades U.S. No. 5 or worse) because of test weight or kernel damage
(excluding heat damage), or having a musty, sour, or commercially
objectionable foreign odor;
(B) Grain sorghum not meeting the grade requirements for U.S.
No. 4 (grades U.S. Sample grade) because of test weight or kernel
damage (excluding heat damage), or having a musty, sour, or
commercially objectionable foreign odor (except smut odor), or meets
the special grade requirements for smutty grain sorghum; or
(C) Soybeans not meeting the grade requirements for U.S. No. 4
(grade U.S. Sample grade) because of test weight, kernel damage
(excluding heat damage), or having a musty, sour, or commercially
objectionable foreign odor (except garlic odor), or which meet the
special grade requirements for garlicky soybeans; or
(ii) Substances or conditions are present that are identified by
the Food and Drug Administration or other public health
organizations of the United States as being injurious to human or
animal health.
(3) Quality will be a factor in determining your loss only if:
(i) The deficiencies, substances, or conditions resulted from a
cause of loss against which insurance is provided under these crop
provisions;
(ii) The deficiencies, substances, or conditions result in a net
price for the damaged production that is less than the local market
price;
(iii) All determinations of these deficiencies, substances, or
conditions are made using samples of the production obtained by us
or by a disinterested third party approved by us; and
(iv) The samples are analyzed by a grader licensed under the
authority of the United States Grain Standards Act or the United
States Warehouse Act with regard to deficiencies in quality, or by a
laboratory approved by us with regard to substances or conditions
injurious to human or animal health. (Test weight for quality
adjustment purposes may be determined by our loss adjuster.)
(4) Coarse grain production that is eligible for quality
adjustment, as specified in paragraphs 12.(e)(2) and (3), will be
reduced by the quality adjustment factor contained in the Special
Provisions.
(f) For corn insured or harvested as silage:
(1) Whenever our appraisal of grain content is less than 4.5
bushels of grain per ton of silage, the silage production will be
reduced by 1 percentage point for each 0.1(1/10) of a bushel less
than 4.5 bushels per ton, (If we cannot make a grain appraisal
before harvest and you do not leave a representative unharvested
sample, no reduction for grain-deficient silage will be made.); and
(2) If the normal silage harvesting period has ended, or for any
acreage harvested as silage or appraised as silage prior to October
1, we may increase the silage production to count to 65 percent
(65%) moisture equivalent to reflect the normal moisture content of
silage harvested during the normal silage harvesting period.
(g) Any production harvested from plants growing in the insured
crop may be counted as production of the insured crop on a weight
basis.
13. Late Planting and Prevented Planting
(a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the
Common Crop Insurance Policy (Sec. 457.8), insurance will be
provided for acreage planted to the insured crop during the late
planting period (see subsection 13.(c)), and acreage you were
prevented from planting (see subsection 13.(d)). These coverages
provide reduced production guarantees. The reduced guarantees will
be combined with the production guarantee for timely planted acreage
for each unit. The premium amount for late planted acreage and
eligible prevented planting acreage will be the same as that for
timely planted acreage. If the amount of premium you are required to
pay (gross premium less our subsidy) for late planted acreage or
prevented planting acreage exceeds the liability on such acreage,
coverage for those acres will not be provided (no premium will be
due and no indemnity will be paid for such acreage). (For example,
assume you insure one unit in which you have a 100 percent (100%)
share. The unit consists of 150 acres, of which 50 acres were
planted timely, 50 acres were planted 7 days after the final
planting date (late planted), and 50 acres are unplanted and
eligible for prevented planting coverage. To calculate the amount of
any indemnity which may be due to you, the production guarantee for
the unit will be computed as follows:
(1) For timely planted acreage, multiply the per acre production
guarantee for timely planted acreage by the 50 acres planted timely;
(2) For late planted acreage, multiply the per acre production
guarantee for timely planted acreage by 93 percent (0.93) and
multiply the result by the 50 acres planted late; and
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by 50 percent (0.5)
and multiply the result by the 50 acres eligible for prevented
planting coverage.
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.)
(b) You must provide written notice to us if you were prevented
from planting (see subsection 1.(n)). This notice must be given not
later than three (3) days after:
(1) The final planting date if you have unplanted acreage that
may be eligible for prevented planting coverage; and
(2) The date you stop planting within the late planting period
on any unit that may have acreage eligible for prevented planting
coverage.
(c) Late Planting.
(1) For acreage planted to the insured crop after the final
planting date but on or before 25 days after the final planting
date, the production guarantee for each acre will be reduced for
each day planted after the final planting date by:
(i) One percent (.01) for the first through the tenth day; and
(ii) Two percent (.02) for the eleventh through the twenty-fifth
day.
(2) In addition to the requirements of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report the dates the acreage is planted within the late planting
period.
(3) If planting of the insured crop continues after the final
planting date, or you are prevented from planting during the late
planting period, the acreage reporting date will be the later of:
(i) The acreage reporting date contained in the Special
Provisions for the insured crop; or
(ii) Five (5) days after the end of the late planting period.
(d) Prevented Planting (Including Planting After the Late
Planting Period)
(1) If you were prevented from planting the insured crop (see
subsection 1.(n)), you may elect:
(i) To plant the insured crop during the late planting period
(the production guarantee for such acreage will be determined in
accordance with paragraph 13.(c)(1));
(ii) Not to plant this acreage to any crop that is intended for
harvest in the same crop year, (the production guarantee for such
acreage will be fifty percent (0.5) of the production guarantee for
timely planted acres, (For example, if your production guarantee for
timely planted acreage is 30 bushels per acre, your prevented
planting production guarantee would be equivalent to 15 bushels per
acre (30 bushels multiplied by 0.5). This paragraph does not
prohibit the preparation and care of the acreage for conservation
practices, such as planting a cover crop, as long as such crop is
not intended for harvest.); or
(iii) To plant the insured crop after the late planting period,
(the production guarantee for such acreage will be fifty percent
(0.5) of the production guarantee for timely planted acres, (For
example, if your production guarantee for timely planted acreage is
30 bushels per acre, your prevented planting production guarantee
would be equivalent to 15 bushels per acre (30 bushels multiplied by
0.5). Production to count for such acreage will be determined in
accordance with subsections 12.(c) through (g)).
(2) In addition to the provisions of section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
beginning of the insurance period for prevented planting coverage is
the sales closing date designated in the Special Provisions for the
insured crop in the county.
(3) Unless a written agreement is in place to the contrary, the
acreage to which prevented planting coverage applies will be limited
as follows:
(i) Eligible acreage will not exceed the greater of:
(A) The number of acres planted to the insured crop on each ASCS
Farm Serial Number during the previous crop year (adjusted for any
reconstitution which may have occurred prior to the sales closing
date);
(B) The ASCS base acreage for the insured crop, if applicable,
reduced by any acreage reduction applicable to the farm under any
program administered by the United States Department of Agriculture;
or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to the insured crop during the crop years
that were used to determine your yield.
(ii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres properly prepared to carry
out an irrigated practice.
(iii) A prevented planting production guarantee will not be
provided for:
(A) Any acreage that does not constitute at least 20 acres or 20
percent (20%) of the acres in the unit, whichever is less;
(B) Land for which the actuarial table does not designate a
premium rate unless a written agreement is in place designating such
premium rate;
(C) Land used for conservation purposes or intended to be or
considered to have been left unplanted under any program
administered by the United States Department of Agriculture;
(D) Land on which any crop, other than the insured crop, has
been planted and is intended for harvest, or has been harvested in
the same crop year; or
(E) Land which planting history or conservation plans indicate
would remain fallow for crop rotation purposes.
(iv) 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 acres of the insured crop timely
planted and planted after the final planting date. (For example,
assume you have 100 acres eligible for prevented planting coverage
in which you have a 100 percent (100%) share. The acreage is located
in a single ASCS Farm Serial Number which you insure as two separate
optional units consisting of 50 acres each. If you planted 60 acres
of the insured crop on one optional unit and 40 acres of the insured
crop on the second optional unit, your prevented planting eligible
acreage would be reduced to zero. (100 acres eligible for prevented
planting coverage minus 100 acres planted equals zero). If you
report more insured crop acreage under this contract than is
eligible for prevented planting coverage, we will allocate the
eligible acreage to insured units based on the number of prevented
planting acres and share you reported for each unit.)
(4) When the ASCS Farm Serial Number covers more than one unit,
or a unit consists of more than one ASCS Farm Serial Number, the
covered acres will be pro-rated based on the number of acres in each
unit or ASCS Farm Serial Number that could have been planted to the
insured crop in the crop year.
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report any insurable acreage you were prevented from planting. This
report must be submitted on or before the acreage reporting date,
even though you may elect to plant the acreage after the late
planting period. Any acreage you report as eligible for prevented
planting coverage which is not eligible will be deleted from
prevented planting coverage.
Done in Washington, DC, on May 24, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-13128 Filed 5-27-94; 8:45 am]
BILLING CODE 3410-08-M
