[Federal Register Volume 61, Number 155 (Friday, August 9, 1996)]
[Proposed Rules]
[Pages 41527-41531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20194]
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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. 61, No. 155 / Friday, August 9, 1996 /
Proposed Rules
[[Page 41527]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Walnut Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes
specific crop provisions for the insurance of walnuts. 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 and to combine the current
Walnut Crop Insurance Regulations with the Common Crop Insurance Policy
for ease of use and consistency of terms.
DATES: Written comments, data, and opinions on this proposed rule will
be accepted until close of business October 8, 1996, and will be
considered when the rule is to be made final. The comment period for
information collections under the Paperwork Reduction Act of 1995
continues through October 7, 1996.
ADDRESSES: Interested persons are invited to submit written comments to
the Chief, Product Development Branch, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131. Written comments will be available for public
inspection and copying in room 0324, South Building, USDA, 14th and
Independence Avenue, SW., Washington, DC, 8:15 a.m.-4:45 p.m., EDT
Monday through Friday. For addresses see the Paperwork Reduction Act
paragraph under SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT: Arden Routh, Program Analyst, Research
and Development Division, Product Development Branch, FCIC, at the
Kansas City, MO address listed above. Telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866 and Departmental Regulation 1512-1
This action has been reviewed under United States Department of
Agriculture (USDA) procedures established by Executive Order No. 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 April 30, 2001.
This rule has been determined to be not significant for the
purposes of Executive Order No. 12866 and, therefore, has not been
reviewed by the Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
The information collection requirements contained in the Walnut
Crop Insurance Provisions have been submitted to OMB for approval under
section 3507(j) of the Paperwork Reduction Act of 1995. This proposed
rule will amend the information collection requirements under OMB
control number 0563-0003 through September 30, 1998. The Federal Crop
Insurance Corporation will be amending the information collection to
adjust the estimated reporting hours and revising the usage of FCI-12-
P, Pre-Acceptance Perennial Crop Inspection Report as it applies to the
Walnut Crop Insurance Provisions.
Section 7 of the 1997 Walnut Crop Provisions adds interplanting as
an insurable farming practice as long as it is interplanted with
another perennial crop. This practice was not insurable under the
previous Walnut Crop Insurance Regulations. Consequently, interplanting
information will need to be collected using the FCI-12-P Pre-Acceptance
Perennial Crop Inspection Report form for approximately 3 percent (3%)
of the walnuts insureds who interplant their walnut crop. Standard
interplanting language has been added to most perennial crops.
Interplanting is an insurable practice as long as it does not adversely
affect the insured crop. This is a benefit to agriculture because
insurance is now available for more perennial crop producers and, as a
result, less acreage will need to be placed into the noninsured crop
disaster assistance program (NAP).
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Walnut Crop Insurance Provisions.'' The
information to be collected includes a crop insurance acreage report,
insurance application, and a continuous contract. Information collected
from the acreage report and application is electronically submitted to
FCIC by the reinsured companies. Potential respondents to this
information collection are producers of walnuts that are eligible for
Federal crop insurance.
The information requested is necessary for the reinsured companies
and FCIC to provide insurance and reinsurance, determine eligibility,
determine the correct parties to the agreement or contract, determine
and collect premiums or other monetary amounts, and pay benefits.
All information is reported annually. The reporting burden for this
collection of information is estimated to average 25 minutes per
response for each of the 3.6 responses from approximately 1,755,015
respondents. The total annual burden on the public for this information
collection is 2,669,970.
FCIC is requesting comments for the following: (a) whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the proposed collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; and (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
gathering technology.
Comments regarding paperwork reduction should be submitted to the
Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503 and to
Bonnie Hart, Advisory and Corporate Operations Staff, Regulatory Review
Group, Farm Service Agency, P.O. Box 2415, Ag Box 0572, U.S. Department
of
[[Page 41528]]
Agriculture, Washington, D.C. 20013-2415. Copies of the information
collection may be obtained from Bonnie Hart at the above address,
telephone (202) 690-2857.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Pub. L.
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. Under section 202 of the UMRA, FCIC
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, or tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
1 year. When such a statement is needed for a rule, section 205 of the
UMRA generally requires FCIC to identify and consider a reasonable
number of regulatory alternatives and adopt the least costly, more
cost-effective or least burdensome alternative that achieves the
objectives of the rule.
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
implication 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. 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 insured must certify to the number of acres and
production on an annual basis or receive a transitional yield. The
producer must maintain the records to support the certified information
for at least 3 years. This regulation does not alter those
requirements. Therefore, the amount of work required of the insurance
companies and FSA offices delivering and servicing these policies will
not increase significantly from the amount of work currently required.
This rule does not have any greater or lesser impact on the producer.
Therefore, this action is determined to be exempt from the provisions
of the Regulatory Flexibility Act ( 5 U.S.C. 605), and no Regulatory
Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372 which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order No. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. The provisions of this rule will
not have 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 in 7 CFR parts 11 and 780 must be exhausted before action
for judicial review may be brought.
Environmental Evaluation
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.
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
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR part 457), a new section 7 CFR 457.122, Walnut Crop Insurance
Provisions. The provisions will be effective for the 1997 and
succeeding crop years. The proposed provisions will supersede and
replace those found at 7 CFR part 446 (Walnut Crop Insurance
Regulations). By separate rule, FCIC will revise 7 CFR part 446 to
restrict its effect through the 1996 crop year and later remove that
part.
This rule makes minor editorial and format changes to improve the
Walnut Crop Insurance Regulations' compatibility with the Common Crop
Insurance Policy. In addition, FCIC is proposing substantive changes in
the provisions for insuring walnuts as follows:
1. Section 1--Add definitions for the terms ``days,'' ``good
farming practices,'' ``interplanted,'' ``irrigated practice,'' ``net
delivered weight,'' ``non-contiguous land,'' ``pound,'' ``production
guarantee (per acre),'' and ``written agreement'' for the purpose of
clarification.
2. Section 2--Describe the guidelines under which basic units may
be divided into optional units. The definition of ``unit'' under
section 1 (tt) of the Basic Provisions (Sec. 457.8), provides for the
division of units in accordance with applicable crop provisions. The
current Walnut Crop Insurance Regulations does not provide guidelines
for determining optional units. Section 2 of these crop provisions
provides guidelines for optional unit division of walnut basic units
that are consistent with many other perennial crop provisions.
Consistent with the definition of ``unit'' in the Basic Provisions
(Sec. 457.8), section 11 of the Walnut Crop Provisions will provide
that, in settling a claim, loss will be determined on a unit basis and
all optional units for which acceptable production records were not
provided will be combined.
3. Section 2(b)--Add provision that clarifies optional units must
be on non-contiguous land. This does not change the walnut unit
structure currently in effect.
4. Section 3(a)--Specify that the insured may choose only one price
election for all the walnuts in the county insured under the policy,
unless the Special Provisions provide different price elections by
variety or varietal group, in which case the insured may choose one
price election for each walnut variety or varietal group designated in
the Special Provisions. The price election the insured chooses for each
walnut variety or varietal group must have the same percentage
relationship to the maximum price offered. This helps protect against
program abuse and simplifies administration of the program.
5. Section 3(b)--Specify that the insured must report any damage,
removal of trees, and any change in
[[Page 41529]]
practice that may reduce yields. For the first year of acreage
interplanted with another crop or anytime the planting pattern of such
acreage is changed, the insured must also report the age of any
interplanted crop, the planting pattern, and any other information
needed to establish the approved yield. The acreage or the yield used
to establish the production guarantee, or both, may be adjusted by us
when the insurance provider becomes aware of the situation if the
insured has not previously reported it. Interplanting is not provided
under the current Walnut Crop Insurance Regulations. The change in
policy language is based on FCIC's desire to insure the maximum amount
of acreage.
6. Section 7--Allow insurance for walnuts interplanted with another
perennial crop in order to make insurance available on more acreage and
reduce reliance on the noninsured crop disaster assistance program
(NAP) for protection for crop losses.
7. Section 8(a)--Clarify that if an application is accepted by us
after February 1, insurance will attach on the 10th day after the
application is received in the insurance provider's local office.
However, full premium will be due for the partial year.
8. Section 8(b)--Add provisions to clarify the procedures for
insuring acreage when an insurable share is acquired or relinquished on
or before the acreage reporting date.
9. Section 9(b)(1)--Clarify that disease and insect infestation are
excluded causes of loss unless adverse weather prevents the proper
application of control measures, causes control measures to be
ineffective when properly applied, or causes disease or insect
infestation for which no effective control mechanism is available.
10. Section 10--Add provisions that require an insured to notify
the insurer of damage prior to harvest so that an inspection can be
made in order to permit a timely appraisal. The provisions also
prohibit the insured from selling or otherwise disposing of any damaged
production until consent to do so is provided by the insurer.
11. Section 11(d)--Add provisions for providing quality adjustment
for mold damaged walnuts based on net delivered weight. This
incorporated recommendations from producers, walnut industry, insurance
industry, and FSA field offices. Mold damage is the primary cause of
loss in quality and significantly reduces the value of the walnuts.
12. Section 12--Add provisions for providing insurance coverage by
written agreement. FCIC has a long-standing policy of permitting
modification of certain provisions of insurance contracts by written
agreement. Written agreements are not available under the current
Walnut Crop Insurance Regulations. The new section will cover
application for and duration of written agreements.
List of Subjects in 7 CFR Part 457
Crop insurance, Walnuts.
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), effective for the 1997 and succeeding
crop years, as follows:
PART 457--[AMENDED]
1. The authority citation for 7 CFR part 457 continues as follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. 7 CFR part 457 is amended by adding a new Sec. 457.122 to read
as follows:
Sec. 457.122 Walnut crop insurance provisions.
The Walnut Crop Insurance Provisions for the 1997 and succeeding
crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Walnut 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
Days--Calendar days.
Good farming practices--The cultural practices generally in use
in the county for the crop to make normal progress toward maturity
and produce at least the yield used to determine the production
guarantee, and are those generally recognized by the Cooperative
Extension Service as compatible with agronomic and weather
conditions in the county.
Harvest--Removal of the walnuts from the orchard.
Interplanted--Acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
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.
Net delivered weight--Delivered weight of dry, hulled, in-shell
walnuts, excluding foreign material.
Non-contiguous land--Any two or more tracts of land whose
boundaries do not touch at any point, except that land separated
only by a public or private right-of-way, waterway, or an irrigation
canal will be considered as contiguous.
Pound--A unit of weight equal to 16 ounces avoirdupois.
Production guarantee (per acre)--The number of pounds (whole in-
shell walnuts), determined by multiplying the approved yield per
acre by the coverage level percentage you elect.
Written agreement--A written document that alters designated
terms of a policy in accordance with section 12.
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), may
be divided into optional units if, for each optional unit, you meet
all the conditions of this section or if a written agreement to such
division exists.
(b) Basic units may not be divided into optional units on any
basis including, but not limited to, production practice, type, and
variety, other than as described in this section.
(c) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined, that portion of the premium paid for the purpose
of electing optional units will be refunded to you pro rata for the
units combined.
(d) All optional units must be identified on the acreage report
for each crop year.
(e) The following requirements must be met for each optional
unit:
(1) You must have records, which can be independently verified,
of acreage and production for each optional unit for at least the
last crop year used to determine your production guarantee;
(2) You must have records of marketed or 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 loss adjustment is
completed by us; and
(3) Each optional unit must be located on non-contiguous land.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8):
(a) You may choose only one price election for all the walnuts
in the county insured under this policy unless the Special
Provisions provide different price elections by variety or varietal
group, in which case you may choose one price election for each
[[Page 41530]]
walnut variety or varietal group designated in the Special
Provisions. The price elections you choose for each variety or
varietal group must have the same percentage relationship to the
maximum price offered by us for each variety or varietal group. For
example, if you choose 100 percent (100%) of the maximum price
election for a specific variety or varietal group, you must also
choose 100 percent (100%) of the maximum price election for all
other varieties or varietal groups.
(b) You must report, by the production reporting date designated
in section 3 (Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities) of the Basic Provisions (Sec. 457.8), by
variety or varietal group if applicable:
(1) Any damage, removal of trees, or change in practices that
may reduce the expected yield below the yield upon which the
insurance guarantee is based, and the number of affected acres;
(2) The number of bearing trees on insurable and uninsurable
acreage;
(3) The age of the trees and the planting pattern; and
(4) For the first year of insurance for acreage interplanted
with another perennial crop, and anytime the planting pattern of
such acreage is changed:
(i) The age of the interplanted crop, and type if applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to
establish your approved yield.
We will reduce the yield used to establish your production
guarantee as necessary, based on our estimate of the effect of the
interplanted perennial crop, removal of trees, damage, or change in
practices on the yield potential of the insured crop. If you fail to
notify us of any circumstances that may reduce yields from previous
levels, we will reduce your production guarantee as necessary at any
time we become aware of the circumstances.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is October 31
preceding the cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 (Life of Policy, Cancellation, and
Termination) of the Basic Provisions (Sec. 457.8), the cancellation
and termination dates are January 31.
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the
commercially grown English Walnuts (excluding black walnuts) in the
county for which a premium rate is provided by the actuarial table:
(a) In which you have a share;
(b) That are grown on tree varieties that:
(1) Were commercially available when the trees were set out;
(2) Are adapted to the area; and
(3) Are grown on a root stock that is adapted to the area;
(c) That are grown on trees in an orchard that, if inspected,
are considered acceptable by us;
(d) That are grown on trees that have reached at least the ninth
growing season after being set out, unless we agree in writing to
insure such trees; and
(e) That are in a unit that consists of at least five (5.0)
acres, unless we agree in writing to insure a smaller unit.
7. Insurable Acreage
In lieu of the provisions in section 9 (Insurable Acreage) of
the Basic Provisions (Sec. 457.8) that prohibit insurance attaching
to a crop planted with another crop, walnuts interplanted with
another perennial crop are insurable unless we inspect the acreage
and determine it does not meet insurability requirements.
8. Insurance Period
(a) In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) Coverage begins on February 1 of each crop year, except that
for the first crop year, if the application is accepted by us after
January 31, insurance will attach on the 10th day after the
application is received in your insurance provider's local office.
(2) The calendar date for the end of the insurance period for
each crop year is November 15.
(b) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) If you acquire an insurable share in any insurable acreage
after coverage begins, but on or before the acreage reporting date
of any crop year and after an inspection we consider the acreage
acceptable, insurance will be considered to have attached to such
acreage on the calendar date for the beginning of the insurance
period.
(2) If you relinquish your insurable share on any insurable
acreage of walnuts on or before the acreage reporting date of any
crop year, insurance will not be considered to have attached to, and
no premium or indemnity will be due for, such acreage for that crop
year unless:
(i) A transfer of coverage and right to an indemnity or a
similar form approved by us is completed by all affected parties;
and
(ii) We are notified by you or the transferee in writing of such
transfer on or before the acreage reporting date.
9. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Adverse weather conditions;
(2) Fire, unless weeds and other forms of undergrowth have not
been controlled or pruning debris has not been removed from the
orchard;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption; or
(6) Failure of irrigation water supply, if caused by an insured
peril that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure against any damage or loss of production due to:
(1) Disease or insect infestation, unless adverse weather:
(i) Prevents the proper application of control measures or
causes properly applied control measures to be ineffective; or
(ii) Causes disease or insect infestation for which no effective
control mechanism is available; or
(2) Inability to market the walnuts for any reason other than
actual physical damage from an insurable cause specified in this
section. For example, we will not pay you an indemnity if you are
unable to market due to quarantine, boycott, or refusal of any
person to accept production.
10. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), if
you intend to claim an indemnity on any unit, you must notify us
prior to the beginning of harvest so that we may inspect the damaged
production. You must not sell or dispose of the damaged crop until
after we have given you written consent to do so. If you fail to
meet the requirements of this subsection, all such production will
be considered undamaged and included as production to count.
11. 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 unit, we will combine all optional units
for which acceptable production records were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage by the respective production
guarantee;
(2) Multiplying each result in paragraph (1) by the respective
price election for each variety or varietal group;
(3) Totaling the results in paragraph (2);
(4) Multiplying the total production to be counted of each
variety or varietal group if applicable, (see subsection 11(c)) by
the respective price election;
(5) Totaling the results in paragraph (4);
(6) Subtracting the total in paragraph (5) from the total in
paragraph (3); and
(7) Multiplying the result in paragraph (6) by your share.
(c) The total production to count (whole in-shell pounds) from
all insurable acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee per acre for acreage:
(A) That is abandoned;
(B) Damaged solely by uninsured causes; or
(C) For which you fail to provide production records that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production; and
(iv) Potential production on insured acreage that you intend to
abandon or no longer care for, if you and we agree on the appraised
amount of production. Upon such agreement, the insurance period for
that acreage will end. If you do not agree with our appraisal, we
may defer the claim only if you
[[Page 41531]]
agree to continue to care for the crop. We will then make another
appraisal when you notify us of further damage or that harvest is
general in the area unless you harvested the crop, in which case we
will use the harvested production. If you do not continue to care
for the crop, our appraisal made prior to deferring the claim will
be used to determine the production to count; and
(2) All harvested production from the insurable acreage.
(d) Mature walnut production damaged due to an insurable cause
of loss which occurs within the insurance period may be adjusted for
quality based on an inspection by the Dried Fruit Association or as
determined by us. Walnut production that has mold damage greater
than 8 percent (8%), based on the net delivered weight, will be
reduced by the factor contained in the Special Provisions. Walnut
production that has mold damage greater than 30 percent (30%), based
on the net delivered weight, will not be considered as production to
count.
12. Written Agreements
Designated terms of this policy may be altered by written
agreement. The following conditions will apply:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in subsection
12(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, 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 1 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.
(e) An application for written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy provisions.
Signed in Washington D.C., on August 1, 1996.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 96-20194 Filed 8-8-96; 8:45 am]
BILLING CODE 3410-FA-P
