[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Proposed Rules]
[Pages 48423-48428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23455]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 457
Common Crop Insurance Regulations; Guaranteed Production Plan of
Fresh Market Tomato 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 fresh market tomatoes.
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
combine the current Fresh Market Tomato (Guaranteed Production Plan)
Crop Insurance Regulations with the Common Crop Insurance Policy for
ease of use and consistency of terms.
[[Page 48424]]
DATES: Written comments, data, and opinions on this proposed rule will
be accepted until close of business October 15, 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 November 12, 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, United States
Department of Agriculture, 14th and Independence Avenue, SW.,
Washington, DC, 8:15 a.m.-4:45 p.m., est Monday through Friday, except
holidays.
FOR FURTHER INFORMATION CONTACT: Louise Narber, Program Analyst,
Research and Development Division, Product Development Branch, Federal
Crop Insurance Corporation, at the Kansas City, MO, address listed
above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866
This action has been reviewed under United States Department of
Agriculture (USDA) procedures established by Executive Order No. 12866.
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 May 15, 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 these
regulations were previously approved by OMB pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number
0563-0003 through September 30, 1998.
The amendments set forth in this proposed rule do not contain
additional information collections that require clearance by the OMB
under the provisions of 44 U.S.C. chapter 35.
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Guaranteed Production Plan of Fresh Market
Tomato Crop Insurance Provisions.'' The information to be collected
includes: a crop insurance application and an acreage report.
Information collected from the application and acreage report and is
electronically submitted to FCIC by the reinsured companies. Potential
respondents to this information collection are producers of fresh
market tomatoes 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 16.9 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 2,676,932 hours.
Comments should be submitted 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 of 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, United States Department of Agriculture, Farm Service
Agency, Advisory and Corporate Operations Staff, Regulatory Review
Group, P.O. Box 2145, STOP 0572, Washington, D.C. 20013-2415, telephone
(202) 690-2857. Copies of the information collection may be obtained
from Bonnie Hart at the above address.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient Federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on States or their political subdivisions, or on the
distribution of power and responsibilities among various levels of
Government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. Under
the current regulations, a producer is required to complete an
application and acreage report. If the crop is damaged or destroyed,
the insured is required to give notice of loss and provide the
necessary information to complete a claim for indemnity. The insured
must also annually certify to the previous years production or receive
an assigned yield. The producer must maintain the production records to
support the certified information for at least 3 years. This regulation
does not alter those requirements. The amount of work required of the
insurance companies delivering and servicing these policies will not
increase significantly from the amount of work currently required. This
rule does not have any greater or lesser impact on the producer.
Therefore, this action is determined to be exempt from the provisions
of the Regulatory Flexibility Act (5 U.S.C. 605), and no Regulatory
Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
[[Page 48425]]
Executive Order No. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. The provisions of this rule will
not have a retroactive effect prior to the effective date. The
provisions of this rule will preempt State and local laws to the extent
such State and local laws are inconsistent herewith. The administrative
appeal provisions published at 7 CFR parts 11 and 780 must be exhausted
before action for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR part 457), a new section, 7 CFR 457.128, Guaranteed Production Plan
of Fresh Market Tomato Crop Insurance Provisions. The new provisions
will be effective for the 1997 and succeeding crop years. These
provisions will supersede and replace the current provisions for
insuring fresh market tomatoes found at 7 CFR part 454 (Fresh Market
Tomato (Guaranteed Production Plan) Crop Insurance Regulations).
By separate rule, FCIC will revise 7 CFR part 454 to restrict its
effect through the 1997 crop year and later remove that part.
This rule makes minor editorial and format changes to improve the
Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance
Regulations' compatibility with the Common Crop Insurance Policy. In
addition, FCIC is proposing substantive changes in the provisions for
insuring fresh market tomatoes as follows:
1. Section 1--Add definitions for the terms ``carton,'' ``days,''
``direct marketing,'' ``FSA,'' ``good farming practices,'' ``irrigated
practice,'' ``planting period,'' ``practical to replant,'' ``production
guarantee (per acre),'' ``row width,'' and ``written agreement'' for
clarification. Delete the definition of ``county'' so that the
definition of ``county'' contained in the Basic Provisions (Sec. 457.8)
will be applicable for fresh market tomatoes. The definition of county
in part 454 includes additional land located in a local producing area
bordering on the county. The current definition will require such land
to be insured using the actuarial materials for the county where the
land is located.
2. Section 2--Add a provision for dividing a basic unit by planting
period if spring and fall planting periods are provided in the Special
Provisions.
3. Section 3--Specify that the insured may select only one price
election for all the tomatoes in the county insured under the policy,
unless the Special Provisions provide different price elections by
type, in which case the insured may select one price election for each
tomato type designated in the Special Provisions. Each price election
chosen for each type must have the same percentage relationship to the
maximum price offered by the insurance provider.
4. Section 4--Change the contract change date from November 30 to
September 30 for counties with the new January 15 cancellation date to
assure adequate time for producers to become familiar with any policy
changes.
5. Section 5--Change the cancellation and termination dates from
February 15 to January 15 and from April 15 to March 15 to be
consistent with the movement of the sales closing dates as required by
the Federal Crop Insurance Reform Act.
6. Section 6--Add a provision to specify that the insured must
report all the information required in section 6 of the Basic
Provisions by the acreage reporting date for each planting period, if
spring and fall planting periods are allowed in the Special Provisions.
7. Section 7--Add a provision to specify that when computing the
premium, the share at the time of each planting will be used in the
premium calculation.
8. Section 8--Add a provision to specify that plum type tomatoes
are not insurable. Cherry type tomatoes are already excluded from
insurance coverage. The current provisions are not compatible with the
characteristics of these types of tomatoes. Also add a provision to
require that the tomato crop be planted within the applicable spring or
fall planting periods to be insurable.
9. Section 9(b)(4)--Add a provision to specify that we will not
require the soil to be fumigated or nematicide applied to acreage on
which tomatoes were planted within the last 2 years as long as the
tomatoes were destroyed prior to reaching the 2nd stage or if otherwise
specified in the Special Provisions. Fumigation or application of a
nematicide is not necessary if the crop was destroyed prior to reaching
the stage when such problems would be apparent.
10. Section 10--Add a provision to specify that coverage begins
when the tomatoes are planted in each planting period if spring and
fall planting periods are authorized in the Special Provisions.
11. Section 11(b)(2)--Amend the provision specifying that loss of
production due to disease or insect infestation is not insurable, to
make these causes of loss insurable if adverse weather prevents the
proper application of control measures; causes properly applied control
measures to be ineffective; or causes disease or insect infestation for
which no effective control mechanism is available in order to provide
coverage in those circumstances when such damage is legitimately beyond
the control of the insured.
12. Section 12--Add a provision permitting one replanting payment
per planting period instead of one replanting payment per crop year
since the crop planted in each planting season is effectively
considered as a separate crop.
13. Section 14--Add provisions for providing insurance coverage by
written agreement. FCIC has a long standing policy of permitting
certain modification of the insurance contract by written agreement for
some policies. This amendment allows FCIC to tailor the policy to a
specific insured in certain instances. The new section will cover the
procedures for, and duration of, written agreements.
List of Subjects in 7 CFR Part 457
Crop Insurance, tomato.
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, to read as follows:
PART 457--[AMENDED]
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(p)
2. 7 CFR part 457 is amended by adding a new Sec. 457.128 to read
as follows:
[[Page 48426]]
Sec. 457.128 Guaranteed Production Plan of Fresh Market Tomato Crop
Insurance Provisions
The Guaranteed Production Plan of Fresh Market Tomato Crop
Insurance Provisions for the 1997 and succeeding crop years are as
follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Guaranteed Production Plan of Fresh Market Tomato 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
Acre--43,560 square feet of land on which the row width does not
exceed six feet, or; if the row width exceeds six feet, the land
area on which at least 7,260 linear feet of tomato plants are
planted.
Carton--A standard container that contains 25 pounds of fresh
tomatoes unless otherwise provided in the Special Provisions.
Days--Calendar days.
Direct marketing--Sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper or buyer. Examples of direct
marketing include selling through an on-farm or roadside stand,
farmer's market, and permitting the general public to enter the
field for the purpose of picking all or a portion of the crop.
FSA--The Farm Service Agency, an agency of the United States
Department of Agriculture, or a successor agency.
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 generally recognized by the Cooperative State
Research, Education, and Extension Service as compatible with
agronomic and weather conditions in the county.
Harvest--Picking of marketable tomatoes.
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.
Mature green tomato--A tomato that:
(a) Has a heightened gloss due to a waxy skin that cannot be
torn by scraping;
(b) Has well formed jelly-like substance in the locules;
(c) Has seeds that are sufficiently hard so they are pushed
aside and not cut by a sharp knife in slicing; and
(d) Shows no red color.
Planting--Transplanting the tomato plants into the field.
Planting period--The period of time designated in the Special
Provisions during which the tomatoes must be planted to be
considered spring or fall planted tomatoes.
Plant stand--The number of live plants per acre before any
damage occurs.
Potential Production--The number of cartons per acre of mature
green or ripe tomatoes with classification size of 6 x 7 (2\8/
32\inch minimum diameter) or larger which the tomato plants would
have produced by the end of the insurance period.
Practical to replant--In lieu of the definition of ``Practical
to replant'' contained in section 1 of the Basic Provisions
(Sec. 457.8), practical to replant is defined as our determination,
after loss or damage to the insured crop, based on factors,
including but not limited to moisture availability, condition of the
field, and time to crop maturity, that replanting the insured crop
will allow the crop to attain maturity prior to the calendar date
for the end of the insurance period. In counties that do not have
both spring and fall planting periods, it will not be considered
practical to replant after the final planting date unless replanting
is generally occurring in the area. In counties that have spring and
fall planting periods, it will not be considered practical to
replant after the final planting date for the planting period in
which the crop was initially planted.
Prevented planting--Inability to plant the insured crop with
proper equipment by the final planting date designated in the
Special Provisions for the insured crop in the county. You must have
been unable to plant the insured crop due to an insured cause of
loss that has prevented the majority of producers in the surrounding
area from planting the same crop.
Production guarantee (per acre)--The number of cartons
determined by multiplying the approved APH yield per acre by the
coverage level percentage you elect.
Replanting--Performing the cultural practices necessary to
replace the tomato plants and then replacing the tomato plants in
the insured acreage with the expectation of growing a successful
crop.
Ripe tomato--A tomato that meets the definition of a mature
green tomato, except that the tomato shows some red color.
Row width--The widest distance from the center of one row of
plants to the center of an adjacent row of plants.
Written agreement--A written document that alters designated
terms of this policy in accordance with section 14.
2. Unit Division
(a) A unit, as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), may be divided into basic units by planting
period if spring and fall planting periods are provided for in the
Special Provisions. Unless limited by the Special Provisions, these
basic units 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,
variety, and planting period, other than as described in this
section.
(c) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined into a basic unit, that portion of the premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(d) All optional units established for a crop year must be
identified on the acreage report for that crop year.
(a) The following requirements must be met for each optional
unit:
(1) You must have records, which can be independently verified,
of planted acreage and production for each optional unit for at
least the last crop year used to determine your production
guarantee;
(2) You must plant the crop in a manner that results in a clear
and discernable break in the planting pattern at the boundaries of
each optional unit; and
(3) You must have records of marketed production or measurement
of stored production from each optional unit maintained in such a
manner that permits us to verify the production from each optional
unit, or the production from each unit must be kept separate until
loss adjustment is completed by us.
(b) Each optional unit must meet one or more of the following
criteria, as applicable:
(1) Optional Units by Section, Section Equivalent, or FSA 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 that 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 FSA 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 FSA Farm Serial
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same section, section
equivalent, or FSA Farm Serial Number. To qualify as separate
irrigated and non-irrigated optional units, the non-irrigated
acreage may not continue into the irrigated acreage in the same rows
or planting pattern. The irrigated acreage may not extend beyond the
point at which the irrigation system can deliver the quantity of
water needed to produce the yield on which the guarantee is based,
except the corners of a field in which a center-pivot irrigation
system is used will be considered as irrigated acreage if separate
acceptable records of production from the corners are not provided.
If the corners of a field in which a center-pivot irrigation system
is used do not qualify as a separate non-irrigated
[[Page 48427]]
optional unit, they will be a part of the unit containing the
irrigated acreage. However, non-irrigated acreage that is not a part
of a field in which a center-pivot irrigation system is used may
qualify as a separate optional unit provided that all requirements
of this section are met.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 (Insurance Guarantees,
Coverage Levels, and Prices for Determining Indemnities) of the Basic
Provisions (Sec. 457.8):
(a) You may select only one price election for all the tomatoes
in the county insured under this policy unless the Special
Provisions provide different price elections by type, in which case
you may select one price election for each tomato type designated in
the Special Provisions. The price elections you choose for each type
must have the same percentage relationship to the maximum price
offered by us for each type. For example, if you choose one hundred
percent (100%) of the maximum price election for one type, you must
also choose one hundred percent (100%) of the maximum price election
for all other types.
(b) The production guarantees per acre are progressive by stages
and increase, at specified intervals, to the final stage production
guarantee. The stages and production guarantees are as follows:
------------------------------------------------------------------------
Percent of
stage 4
(final
Stage stage) Length of time
production
guarantee
------------------------------------------------------------------------
1............................ 50 From planting until
qualifying for stage 2.
2............................ 75 From the earlier of stakes
driven, one tie and
pruning, or 30 days after
planting until qualifying
for stage 3.
3............................ 90 From the earlier of the end
of stage 2 or 60 days after
planting until qualifying
for stage 4.
4............................ 100 From the earlier of 75 days
after planting or the
beginning of harvest.
------------------------------------------------------------------------
(c) Any acreage of tomatoes damaged to the extent that producers
in the area generally would not further care for the tomatoes will
be deemed to have been destroyed even though you continue to care
for the tomatoes. The production guarantee for such acreage will be
the guarantee for the stage in which such damage occurs.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is September 30
preceding the cancellation date for counties with a January 15
cancellation date and December 31 preceding the cancellation date
for all other counties.
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:
------------------------------------------------------------------------
Cancellation and termination
State date
------------------------------------------------------------------------
California, Florida, Georgia, and January 15.
South Carolina.
All other states..................... March 15.
------------------------------------------------------------------------
6. Report of Acreage
(a) In addition to the provisions of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), you must report the
row width of all the tomatoes grown in the county.
(b) If spring and fall planting periods are allowed in the
Special Provisions you must report all the information required by
section 6 of the Basic Provisions (Sec. 457.8) by the acreage
reporting date for each planting period.
7. Annual Premium
In lieu of provisions contained in the Basic Provisions
(Sec. 457.8), for determining premium amounts, the annual premium is
determined by multiplying the final stage production guarantee by
the price election, by the premium rate, by the insured acreage, by
your share at the time coverage begins, and by any applicable
premium adjustment factor contained in the Special Provisions.
8. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the tomatoes
in the county for which a premium rate is provided by the actuarial
table:
(a) In which you have a share;
(b) That are transplanted tomatoes planted for harvest as fresh
market tomatoes (cherry and plum types are excluded);
(c) That are planted within the spring or fall planting dates,
as applicable, specified in the Special Provisions; and
(d) That are not (unless allowed by the Special Provisions or by
written agreement):
(1) Interplanted with another crop; or
(2) Planted into an established grass or legume.
9. Insurable Acreage
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8):
(a) Any acreage of the insured crop damaged before the final
planting date, to the extent that the majority of growers in the
area would normally not further care for the crop, must be replanted
unless we agree that it is not practical to replant. Unavailability
of plants will not be considered a valid reason for failure to
replant.
(b) We do not insure any acreage of tomatoes:
(1) Grown by any person if the person had not previously:
(i) Grown fresh market tomatoes for commercial sales; or
(ii) Participated in the management of a fresh market tomato
farming operation, in at least one of the three previous years.
(2) Grown for direct marketing;
(3) That does not meet the rotation requirements contained in
the Special Provisions;
(4) On which tomatoes, peppers, eggplants, or tobacco have been
grown within the previous two years unless the soil was fumigated or
nematicide was applied before planting the tomatoes, except that
this limitation does not apply in Pennsylvania, to acreage planted
to tomatoes within the last 2 years when the tomatoes were destroyed
prior to reaching the 2nd stage, or if otherwise specified in the
Special Provisions;
(5) That are not subject to an agreement (packing contract)
between you and a packer unless you have access to packing
facilities. Such agreement must be executed before the acreage
reporting date.
10. Insurance Period
In lieu of the provisions of section 11 (Insurance Period) of
the Basic Provisions (Sec. 457.8):
(a) Coverage begins on each unit, or part of a unit for units
with spring and fall planting periods, when the tomatoes are
planted.
(b) Coverage will end on any insured acreage at the earliest of:
(1) Total destruction of the tomatoes;
(2) Discontinuance of harvest;
(3) The date harvest should have started on any acreage which
was not harvested;
(4) 120 days after the date of transplanting or replanting;
(5) Completion of harvest; or
(6) Final adjustment of a loss.
11. 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;
(3) Wildlife;
(4) Earthquake;
(5) Volcanic eruption;
(6) Failure of irrigation water supply, if caused by an insured
peril that occurs during the insurance period.
(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 damage or loss of production due to:
(1) Damage that occurs or becomes evident after the tomatoes
have been harvested; or
(2) Disease or insect infestation, unless adverse weather:
[[Page 48428]]
(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.
12. Replanting Payment
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment is allowed if
the crop is damaged by an insurable cause of loss and the acreage to
be replanted has sustained a loss in excess of fifty percent (50%)
of the plant stand.
(b) The maximum amount of the replanting payment per acre will
be 70 cartons multiplied by your price election, and by your insured
share.
(c) In lieu of the provisions contained in section 13
(Replanting Payment) of the Basic Provisions (Sec. 457.8) that
permit only one replanting payment each crop year, when spring and
fall planting periods are contained in the Special Provisions, you
may be eligible for one replanting payment for acreage planted
during each planting period within the crop year.
13. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide separate, acceptable production records:
(1) For any optional unit, we will combine all optional units
for which such production records were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage for each type, if applicable
by its respective production guarantee and by the factor for the
applicable stage;
(2) Multiplying the results of section 13(b)(1) by the
respective price election for each type, if applicable;
(3) Totaling the results of section 13(b)(2);
(4) Multiplying the total production to be counted of each type,
if applicable, (see section 13(c)) by the respective price election;
(5) Totaling the results of section 13(b)(4);
(6) Subtracting this result of section 13(b)(5) from the results
in section 13(b)(3); and
(7) Multiplying the result of section 13(b)(6) by your share.
(c) The total production to count (in cartons) 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 production records that are
acceptable to us;
(ii) Potential production lost due to uninsured causes;
(iii) Unharvested production of mature green and ripe tomatoes
with classification size of 6 x 7 (2\8/32\ inch minimum diameter)
or larger remaining after harvest is discontinued;
(iv) Potential production on unharvested acreage and potential
production on acreage when harvest has not been completed;
(v) Potential production on insured acreage that you intend to
put to another use or abandon, if you and we agree on the appraised
amount of production. Upon such agreement, the insurance period for
that acreage will end when 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 may
give you consent to put the acreage to another use if you agree to
leave intact, and provide sufficient care for, representative
samples of the crop in locations acceptable to us (The amount of
production to count for such acreage will be based on the harvested
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:
(i) That is marketed, regardless of grade; and
(ii) That is unmarketed and grades eighty-five percent (85%) or
better U.S. No. 1 with classification size of 6 x 7 (2\8/32\ inch
minimum diameter) or larger.
14. Written Agreements
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
14(e);.
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, the guarantee, premium rate, and price election;
(d) Each written agreement will only be valid for one year (If
the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
Signed in Washington, D.C., on September 4, 1996.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 96-23455 Filed 9-12-96; 8:45 am]
BILLING CODE 3410-FA-P
