[Federal Register Volume 64, Number 165 (Thursday, August 26, 1999)]
[Proposed Rules]
[Pages 46599-46603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21991]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 64, No. 165 / Thursday, August 26, 1999 /
Proposed Rules
[[Page 46599]]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Forage Production Crop
Provisions; and Forage Seeding Crop Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Forage Production Crop Insurance Provisions and Forage
Seeding Crop Insurance Provisions, and delete Forage Production Winter
Coverage Endorsement. The intended effect of this action is to provide
policy changes to better meet the needs of the insureds, and to
restrict the effect of the current Forage Production and Forage Seeding
Crop Insurance Regulations to the 2000 and prior crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business September 27, 1999 and will be
considered when the rule is to be made final. The comment period for
information collection under the Paperwork Reduction Act of 1995
continues through October 25, 1999.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131. (Comments may be sent via Internet to
pddirector@rm.fcic.usda.gov). A copy of each response will be available
for public inspection and copying from 7 a.m. to 4:30 p.m., CDT, Monday
through Friday except holidays, at the above address.
FOR FURTHER INFORMATION CONTACT: Richard Brayton, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, at the Kansas City, MO, address
listed above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be exempt for the purpose of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
In accordance with section 3507(j) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501), the information collection and recordkeeping
requirements included in the proposed rule have been submitted for
approval to the Office of Management and Budget (OMB). Please send your
written comments to the Clearance Officer, OCIO, USDA, room 404-W, 14th
Street and Independence Avenue SW, Washington DC 20250. A comment to
OMB is best assured of having its full effect if OMB receives it within
30 days of publication of this proposed rule.
We are soliciting comments from the public concerning our proposed
information collection and record keeping requirements. We need this
outside input to help us:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information has practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond (such as through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g. permitting electronic
submission responses.)
The collections of information for this rule revise the Multiple
Peril Crop Insurance Collections of Information 0563-0053 which expires
April 30, 2001.
Title: Multiple Peril Crop Insurance (Forage Production and Forage
Seeding).
Abstract: This rule improves the existing forage production and
forage seeding policies. Forage production is revised by: allowing
optional units; changing the cancellation and termination dates in
California, Nevada and Utah; requiring the insured to report all forage
acreage on or before each date specified in the Special Provisions;
changing dates when insurance attaches and when insurance ends;
extending dates in some counties in California to allow year round
coverage; clarifying that insurance is not available for damage or loss
of production that occurs after removal from windrow; allowing forage
to be direct marketed; and including optional unit procedures in the
event of a loss.
Forage seeding is revised by: adding cancellation and termination
dates for California and South Dakota; requiring the insured to report
all insurable forage seeding acreage on or before each acreage
reporting date specified in the Special Provisions; specifying in all
states and in California, unless otherwise specified in the Special
Provisions, forage damaged before the final planting date must be
replanted to the extent that the forage has less than a 75 percent
stand; allowing a replant payment in California, unless otherwise
specified in the Special Provisions, on any acreage planted to the
insured crop that is damaged by an insurable cause of loss occurring
within the insurance period to the extent that less than 75 percent of
normal stand remains; allowing increased replanting payments if
specified in the Special Provisions; and removed the 10 percent planted
acreage requirements. The revisions are effective for the 2001 and
succeeding crop years.
Purpose: The purposes of this proposed rule are to clarify existing
crop provisions and methodology for calculating losses and provide
additional coverage benefits and an improved risk management tool for
forage producers in all regions of the country.
Burden statement: The information that FCIC collects on the
specified forms will be used in offering crop insurance coverage,
determining program eligibility, establishing a production guarantee or
amount of insurance, calculating losses qualifying for a payment, etc.
The burden hours have decreased because many forage
[[Page 46600]]
producers have canceled their forage coverage.
Estimate of Burden: We estimate that it will take insured
producers, a loss adjuster, and an insurance agent an average of .6 of
an hour to provide the information required by the forage provisions.
Respondents: Insureds, insurance agents, and loss adjusters.
Estimated annual number of respondents: 9,276.
Estimated annual number of responses per respondent: 2.1.
Estimated annual number of responses: 19,250.
Estimated total annual burden of respondents: The total public
burden for this proposed rule is estimated at 5,941 hours.
Recordkeeping requirements: FCIC requires records to be kept for
three years, and all records required by FCIC are retained as part of
the normal business practice. Therefore, FCIC is not estimating
additional burden related to recordkeeping.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
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. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 12612
It has been determined under section 6(a) of the Executive Order
12612, Federalism, that this rule does not have sufficient 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 economic 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, every 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. 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. Therefore, this action is determined to be exempt
from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605),
and no Regulatory Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic Assistance
under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which 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.
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988 on civil justice reform. The provisions of this rule will
not have a retroactive effect. 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 against FCIC for
judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR
part 457) by amending 7 CFR 457.117 Forage Production Crop Insurance
Provisions effective for the 2001 and succeeding crop years. The
changes to the provisions for insuring forage production are as
follows:
1. Add definitions for ``direct-marketing'' and ``windrow'' for
clarification. Revise the definition of ``cutting'' to eliminate
reference to livestock feed. This change allows forage production
coverage on forage grown for any use. For example, in some areas of the
country, forage processing plants will process the leaves for high
value animal feed and use the stems as fuel to generate electricity.
Revise the definition of ``crop year'' for simplification. Delete the
definitions for fall planted and spring planted as unnecessary because
forage is insurable after the year of establishment not after planting
and is designated by the calendar year is which the forage is normally
harvested.
2. Remove provisions which state that optional units are not
applicable and redesignated the following sections. This change will
allow optional units in accordance with the provisions in the Basic
Provisions. This change is being made to increase participation in the
insurance program.
3. Redesignated section 4--Revise the cancellation and termination
dates from September 30 to October 31 in California, Nevada, and Utah.
This change was made to be consistent with actuarial filing and
contract change dates that are similar to other crop policies in the
region.
4. Redesignated section 5--Require the insured to report all forage
acreage on or before each date specified in the Special Provisions.
Currently, insureds with multiple crops can report forage production
acreage on the last acreage reporting date in accordance with 6(a) of
the Basic Provisions. In some cases, this is after the billing date for
forage production insurance coverage.
5. Redesignated section 6--Deleted the provisions that required
that forage crop be grown for livestock feed only. Currently, only
forage grown for livestock feed is insurable but there are other
commercial uses for forage.
6. Redesignated section 7--Revise the dates insurance attaches and
ends because the Forage Production Winter Coverage Endorsement is
eliminated and winterkill is now allowed as an insurable cause of loss.
Extended dates in California counties except for Lassen, Modoc, Mono,
Shasta, and Siskiyou to allow year round coverage. Forage is planted
year round in these California counties, and the current policy does
not reflect standard farming practices in these areas.
7. Redesignated section 8(b)--Clarify that insurance is not
available for damage or loss of production that occurs after the
removal from windrow.
8. Redesignated section 9--Added provisions that require the
producer to give notification if the crop is going to be direct
marketed so production to count can be established. These notices are
consistent with other crop policies that permit direct marketing.
9. Redesignated section 10--Revise provisions to include optional
unit procedures in the event of a loss. These
[[Page 46601]]
changes are consistent with other crop policies that allow optional
units. Added examples of settlement of claim to section (b).
10. FCIC also proposes to eliminate the Forage Production Winter
Coverage Endorsement (7 CFR 457.127) effective for the 2001 and
succeeding crop years. Winterkill will be an insurable cause of loss
under the proposed Forage Production Crop Insurance Provisions.
FCIC also proposes to amend the Common Crop Insurance Regulations
(7 CFR part 457) by amending 7 CFR 457.151 Forage Seeding Crop
Insurance Provisions effective for the 2001 and succeeding crop years.
The changes to provisions for insuring forage seeding are as follows:
1. Section 1--Revise the definition of ``harvest'' to eliminate the
reference ``with the intention of using it for livestock feed.'' This
change allows forage seeding coverage on forage seeded for any use. For
example, in some areas of the country, forage processing plants will
process the leaves for high value animal feed and use the stems as fuel
to generate electricity.
2. Section 5--Add cancellation and termination dates for California
and South Dakota in response to producer requests to make insurance
available in these states. Currently, forage seeding insurance is not
offered in these states.
3. Add a new section 6 to require the insured to report all
insurable forage seeding acreage on or before each date specified in
the Special Provisions and redesignated the following sections.
Currently, insureds with multiple crops can report forage seeding
acreage on the last acreage reporting date, which, in some cases, is
after the spring billing date for forage seeding.
4. Redesignated section 7(b)--Delete the reference to ``intended
for harvest as livestock feed.'' Currently, only forage that was
intended for harvest as livestock feed was insurable but there are
other commercial uses for forage. This change makes coverage available
for forage regardless of its intended use.
5. Redesignated section 8--In California, unless otherwise
specified in the Special Provisions, add provisions to specify any
acreage damaged anytime during the crop year to the extent that acreage
has less than 75 percent of a normal stand must be replanted unless it
cannot be replanted and reach a normal stand within the insurance
period. Forage is planted year round and replanting provisions as
stated in the current policy do not reflect standard farming practices.
Therefore, any acreage damaged anytime must be replanted to the extent
it has less than 75 percent of a normal stand, unless it can not be
replanted and reaching a normal stand within the insurance period.
6. Redesignated section 11(a)--For California, unless otherwise
specified in the Special Provisions, add provisions to allow a
replanting payment on acreage planted to the insured crop that is
damaged by an insurable cause of loss occurring within the insurance
period to the extent that less than 75 percent of a normal stand
remains. This change makes replanting payments available anytime during
the insurance period due to year round planting. Currently, a
replanting payment is allowed only if the Special Provisions for the
county designate both fall and spring final planting dates.
7. Redesignated section 11(b)--Change the words ``liability'' to
``indemnity.'' This change is consistent with other crop policies.
Added provisions to allow a different calculation for replanting
payments if specified in the Special Provisions. This change will allow
FCIC to address higher costs of forage seed and replanting expenses in
certain areas of the country.
8. Redesignated section 13--Add an example of a claim for
indemnity. Removed as unnecessary from paragraph (a)(3) the addition of
10 percent of the planted acres for the insured acreage to the total
acres with an established stand.
List of Subjects in 7 CFR part 457
Crop insurance, Forage production, Forage seeding, Reporting and
recordkeeping requirements.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 457 as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. Amend Sec. 457.117 as follows:
a. Revise the heading.
b. Revise the introductory text.
c. Delete the definitions in Section 1 of ``Fall planted'' and
``Spring planted,'' add definitions of ``Direct marketing'' and
``Windrow,'' revise the definitions of ``Cutting'' and ``Crop year'' to
read as follows.
d. Delete Section 2 and redesignate sections 3 through 12 as 2
through 11.
e. Revise newly designated Section 4.
f. Revise newly designated Section 5.
g. Revise paragraph (a) of newly designated section 6.
h. Revise newly designated Section 7 introductory text, paragraph
(a), paragraph (b) introductory text, and paragraph (b)(6).
i. Revise newly designated Section 8 paragraph (b).
j. Revise newly designated Section 9.
k. Revise newly designated Section 10 paragraph (a) and add
``Example 1'' and ``Example 2'' following paragraph (b)(7).
The revisions and additions to section 457.117 read as follows:
Sec. 457.117 Forage production crop insurance provisions.
The Forage Production Crop Insurance Provisions for the 2001 and
succeeding crop years are as follows:
* * * * *
1. Definitions.
* * * * *
Crop year--The period within which the forage production is
normally grown, which is designated by the calendar year in which the
forage is normally harvested.
Cutting--The severance of the forage plant from its roots.
Direct marketing--Sale of the forage crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
shipper, buyer, or broker. An example of direct marketing is selling
directly to other producers.
* * * * *
Windrow--Forage that is cut and placed in a row.
* * * * *
4. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State and county Cancellation/termination date
------------------------------------------------------------------------
California, Nevada and Utah............. October 31.
All other states........................ September 30.
------------------------------------------------------------------------
5. Report of Acreage.
In lieu of the provisions of section 6(a) of the Basic Provisions,
a report of all insured acreage of forage production must be submitted
on or before each forage production acreage reporting date specified in
the Special Provisions.
6. Insured Crop.
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the forage in the county for which a premium rate
is provided by the actuarial documents:
(1) In which you have a share; and
(2) That is grown during one or more years after the year of
establishment.
* * * * *
[[Page 46602]]
7. Insurance Period.
In lieu of the provisions of section 11 of the Basic Provisions:
(a) Insurance attaches on acreage with an adequate stand for the
calendar year following the year of establishment for:
(1) All California counties except Lassen, Modoc, Mono, Shasta
and Siskiyou................................................December 1;
(2) Lassen, Modoc, Mono, Shasta and Siskiyou Counties California,
Colorado, Idaho, Nebraska, Nevada, Oregon, Utah
and Washington..............................................April 15;
(3) Iowa, Minnesota, Montana, New Hampshire, New York, North Dakota,
Pennsylvania, Wisconsin, Wyoming, and
all other states................................................May 22;
(4) Lassen, Modoc, Mono, Shasta and Siskiyou Counties California,
and all
other states..............................................October 16;
(5) All California counties except Lassen. Modoc, Mono, Shasta
and Siskiyou..............................................December 1.
(b) Insurance ends at the earliest of:
* * * * *
(6) The following dates of the crop year:
(i) California counties of Lassen, Modoc, Mono, Shasta and Siskiyou,
and all
other states..............................................October 15;
(ii) The last day of the 12th month after the insured crop initially
planted in all California counties except Lassen, Modoc, Mono,
Shasta and Siskiyou.
* * * * *
8. Causes of Loss.
* * * * *
(b) In addition to the causes of loss specifically excluded in
section 12 of the Basic Provisions, we will not insure against damage
of loss of production that occurs after removal from the windrow.
9. Duties in the event of Damage or Loss.
In addition to the requirements of section 14 of the Basic
Provisions, the following will apply:
(a) You must notify us within 3 days of the date harvest should
have started if the insured crop will not be harvested;
(b) You must notify us at least 15 days before any production from
any unit will be sold by direct marketing unless you have records
verifying that the forage was direct marketed. Failure to give timely
notice that production will be sold by direct marketing will result in
an appraised amount of production to count of not less than the
production guarantee per acre if such failure results in our inability
to make the required appraisal;
(c) If you intend to claim an indemnity on any unit, you must
notify us at least 15 days prior to the beginning of harvest if you
previously gave notice in accordance with section 14 of the Basic
Provisions so that we may inspect the damaged production. You must not
destroy the damaged crop until after we have given you written consent
to do so. If you fail to meet the requirements of this section, and
such failure results in our inability to inspect the damaged
production, all such production will be considered undamaged and will
be included as production to count; and
(d) You must notify us at least 5 days before grazing of insured
forage begins so we can conduct an appraisal to determine production to
count. Failure to give timely notice that the acreage will be grazed
will result in an appraised amount of production to count of not less
than the production guarantee per acre.
10. Settlement of Claim.
(a) We will determine your loss on a unit basis. In the event you
are unable to provide separate acceptable production records:
(1) For any optional units, we will combine all optional units for
which such 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) * * *
(7) * * *
Example 1:
Assume you have a 100 percent share in 100 acres of type A forage
in the unit, with a guarantee of 3.0 tons per acre and a price election
of $65.00 per ton. Due to adverse weather you were only able to harvest
50.0 tons. Your indemnity would be calculated as follows:
1. 100 acres type A x 3 tons = 300 ton guarantee;
2 and 3. 300 tons x $65 price election = $19,500 total value
guarantee;
4 and 5. 50 tons production to count x $65 price election = $3,250
total value of production to count;
6. $19,500 value guarantee -$3,250 = $16,250 loss; and
7. $16,250 x 100 percent share = $16,250 indemnity payment.
Example 2:
Assume you also have a 100 percent share in 100 acres of type B
forage in the same unit, with a guarantee of 1.0 ton per acre and a
price election of $50.00 per ton. Due to adverse weather you were only
able to harvest 5.0 tons. Your total indemnity for forage production
for both types A and B in the same unit would be calculated as follows:
1. 100 acres x 3 tons = 300 ton guarantee for type A; and
100 acres x 1 ton = 100 ton guarantee for type B;
2. 300 ton guarantee x $65 price election = $19,500 total value of
the guarantee for type A; and
100 ton guarantee x $50 price election = $5,000 total value of the
guarantee for type B;
3. $19,500 + $5,000 = $24,500 total value of the guarantee;
4. 50 tons x $65 price election = $3,250 total value of production to
count for type A; and
5 tons x $50 price election = $250 total value of production to count
for type B;
5. $3,250 + $250 = $3,500 total value of production to count for types
A and B;
6. $24,500 -$3,500 = $21,000 loss; and
7. $21,000 loss x 100 percent share = $21,000 indemnity payment.
* * * * *
Sec. 457.127 [Removed]
3. Section 457.127 is removed and reserved.
4. Amend 457.151 as follows:
a. Revise the introductory text.
b. Revise the definition in Section 1 of ``harvest''.
c. Revise Section 5.
d. Redesignate section 6 through 13 as 7 through 14.
e. Add a new Section 6 Report of Acreage.
f. Revise newly redesignated Section 7 paragraph (b).
g. Revise newly redesignated Section 8.
h. Revise newly designated Section 11 introductory text, paragraph
(a), and paragraph (b).
i. Revise newly designated Section 13 paragraph (a)(3) and add an
example following paragraph (a)(6).
The revisions and additions to section 457.151 read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
The Forage Seeding Crop Insurance Provisions for the 2001 and
succeeding crop years are as follows:
* * * * *
1. Definitions.
* * * * *
Harvest--Severance of the forage plant from its roots. However,
acreage that is grazed will not be considered harvested.
* * * * *
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
[[Page 46603]]
------------------------------------------------------------------------
State & county Cancellation/termination dates
------------------------------------------------------------------------
California, Nevada, New Hampshire, New July 31;
York, Pennsylvania and Vermont.
Montana, Minnesota, North Dakota, South March 15.
Dakota and Wyoming.
------------------------------------------------------------------------
6. Report of Acreage.
In lieu of the provisions of section 6(a) of the Basic Provisions,
a report of all insured acreage of forage seeding must be submitted on
or before each forage seeding acreage report date specified in the
Special Provisions.
7. Insured Crop.
* * * * *
(b) That is planted during the current crop year, or replanted
during the calendar year following planting, to establish a normal
stand of forage;
* * * * *
8. Insurable Acreage.
In addition to the provisions of section 9 of the Basic Provisions:
(a) In California counties Lassen, Modoc, Mono, Shasta, Siskiyou
and all other states, any acreage of the insured crop damaged before
the final planting date, to the extent that such acreage has less than
75 percent of a normal stand, must be replanted unless we agree that it
is not practical to replant; and
(b) In California, unless otherwise specified in the Special
Provisions, any acreage of the insured crop damaged anytime during the
crop year to the extent that such acreage has less than 75 percent of a
normal stand must be replanted unless it cannot be replanted and reach
a normal stand within the insurance period.
* * * * *
11. Replanting Payment.
In lieu of the provisions contained in section 13 of the Basic
Provisions:
(a) A replanting payment is allowed if:
(1) In California, unless specified otherwise in the Special
Provisions, acreage planted to the insured crop is damaged by an
insurable cause of loss occurring within the insurance period to the
extent that less than 75 percent of a normal stand remains and the crop
can reach maturity before the end of the insurance period;
(2) In Lassen, Modoc, Mono, Shasta, Siskiyou Counties California,
and all other states:
(i) A replanting payment is allowed only whenever the Special
Provisions designate both fall and spring final planting dates;
(ii) The insured fall planted acreage is damaged by an insurable
cause of loss to the extent that less than 75 percent of a normal stand
remains;
(iii) It is practical to replant;
(iv) We give written consent to replant; and
(v) Such acreage is replanted the following spring by the spring
planting date.
(b) The amount of the replanting payment will be equal to 50
percent of the amount of indemnity determined in accordance with
section 13 unless otherwise specified in the Special Provisions.
* * * * *
13. Settlement of Claim.
(a) * * *
(1) * * *
(2) * * *
(3) Multiplying the total acres with an established stand for the
insured acreage of each type and practice in the unit by the amount of
insurance for the applicable type and practice;
(4) * * *
(5) * * *
(6) * * *
Example:
Assume you have 100 percent share in 30 acres of type A forage in
the unit, with an amount of insurance of $100.00 per acre. At the time
of loss, the following findings are established: 10 acres had a
remaining stand of 75 percent or greater. You also have 20 acres of
type B forage in the unit, with an amount of insurance of $90.00 per
acre. 10 acres had with a remaining stand of 75 percent or greater.
Your indemnity would be calculated as follows:
1. 30 acres x $100.00 = $3,000 amount of insurance for type A
20 acres x $90.00 = $1,800 amount of insurance for type B;
2. $3,000 + $1,800 = $4,800 total amount of insurance;
3. 10 acres with 75% stand or greater x $100 = $1,000 production to
count for type A
10 acres with 75% stand or greater x $90 = $900 production to count
for type B;
4. $1,000 + $900 = $1,900 total production to count;
5. $4,800 -$1,900 = $2,900 loss;
6. $2,900 x 100 percent share = $2,900 indemnity payment.
* * * * *
Signed in Washington, D.C., on August 11, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-21991 Filed 8-25-99; 8:45 am]
BILLING CODE 3410-08-P
