[Federal Register Volume 62, Number 10 (Wednesday, January 15, 1997)]
[Proposed Rules]
[Pages 2059-2064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1015]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 441 and 457
Common Crop Insurance Regulations; Table Grape Crop Insurance
Provisions, and Table Grape Crop Insurance Regulations
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 table grapes. The
provisions will be used in conjunction with the Common Crop Insurance
Policy Basic Provisions, which contain standard terms and conditions
common to most crops. The intended effect of this action is to provide
policy changes to better meet the needs of the insured, include the
current Table Grape crop insurance regulations under the Common Crop
Insurance Policy for ease of use and consistency of terms, and to
restrict the effect of the current Table Grape crop insurance
regulations to the 1997 and prior crop years.
DATES: Written comments, data, and opinions on this proposed rule will
be accepted until close of business March 17, 1997 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 is
through March 17, 1997.
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. to 4:45 p.m., est, Monday through Friday,
except holidays.
FOR FURTHER INFORMATION CONTACT: John Meyer, Insurance Management
Specialist, Research and Development Division, Product Development
Branch, Federal Crop Insurance Corporation, at the Kansas City, MO,
address listed above, telephone (816) 926-7730.
[[Page 2060]]
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order No. 12866, and,
therefore, this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Section 8 of the 1998 Table Grape Crop Provisions adds
interplanting as an insurable farming practice provided it does not
adversely affect the crop. This practice was not insurable under the
previous Table Grape 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
0.5 percent of the 341 insureds who interplant their table grape crop.
Standard interplanting language has been added to most perennial crops.
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; Table Grape 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 is electronically submitted to FCIC by the reinsured
companies. Potential respondents to this information collection are
producers of table grapes 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 2,669,970 hours.
FCIC requests 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.
The Office of Management and Budget (OMB) is required to make a
decision concerning the collection(s) of information contained in these
proposed regulations between 30 and 60 days after submission to OMB.
Therefore, a comment to OMB is best assured of having its full effect
if OMB receives it within 30 days of publication. This does not affect
the deadline for the public to comment on the proposed regulation.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
state, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on states or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. Under
the current regulations, all producers are required to complete an
application and acreage report. If the crop is damaged or destroyed,
all insureds are required to give notice of loss and provide the
necessary information to complete a claim for indemnity.
All insureds must also 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 three years. This regulation does not alter those
requirements. The amount of work required of the insurance companies
delivering and servicing these policies will not increase significantly
from the amount of work currently required. This rule does not have any
greater or lesser impact on the producer. Therefore, this action is
determined to be exempt from the provisions of the Regulatory
Flexibility Act (5 U.S.C. 605) and no Regulatory Flexibility Analysis
was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372, which require intergovernmental consultation with state and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order No. 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 any action for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate
[[Page 2061]]
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 457.149, Table Grape Crop Insurance
Provisions. The new provisions will be effective for the 1998 and
succeeding crop years. These provisions will replace and supersede the
current provisions for insuring table grapes found at 7 CFR part 441
and restrict the application of that part to the 1997 and prior crop
years. By separate rule, FCIC will later remove that part.
This rule makes minor editorial and format changes to improve the
Table Grape crop insurance regulations' compatibility with the Common
Crop Insurance Policy. In addition, FCIC is proposing substantive
changes in the provisions for insuring table grapes as follows:
1. Section 1--Add definitions for the terms ``days,'' ``direct
marketing,'' ``FSA,'' ``good farming practices,'' ``graft,''
``interplanted,'' ``irrigated practice,'' ``lug,'' ``non-contiguous
land,'' ``production guarantee, per acre,'' ``set out,'' and ``written
agreement,'' for clarification, and change the lug (box weight) from 22
pounds to 20 pounds in the Coachella Valley, California district, and
from 23 pounds to 21 pounds in all other California districts.
Provisions are also added indicating a box weight of 22 pounds for
Arizona. These changes were made by the California Table Grape
Commission.
2. Section 2--Change provisions to allow basic units by table grape
variety to be consistent with other policies which allow insurance for
crop varieties.
3. Section 3(b)--Specify that the insured must report damage,
removal of bearing vines, and change in practices that may reduce
yields. For the first year of insurance for acreage interplanted with
another perennial crop and anytime the planting pattern of such acreage
is changed, the insured must also report the age and variety, if
applicable, of any interplanted crop, its planting pattern, and any
other information needed to establish the approved yield. If the
insured fails to notify the insurer of factors that may reduce yields
from previous levels, the insurer will reduce the production guarantee
at any time the insurer becomes aware of damage, removal of vines, or
change in practices. This allows the insurance provider to limit
liability if necessary, before insurance attaches.
4. Section 7(a)--Clarify that the insured crop will be any insured
variety of grapes in the county. Previous provisions required that all
insurable table grape acreage in the county be insured. This change is
commensurate with previous changes made in the regulations for insuring
grapes.
5. Section 7(b)--Specify that at least 150 lugs per acre must have
been produced in at least one of the most recent three years of a
producer's actual production history base period. Previous provisions
required a minimum of 150 lugs per acre, but did not specify an
applicable time period.
6. Section 8--Allow insurance for table grapes interplanted with
another perennial crop in order to make insurance available for more
acreage and reduce reliance on the noninsured crop disaster assistance
program (NAP) for protection against crop losses. 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.
7. Section 9--Clarifies that for the year of application, if an
application is received after January 22 but prior to February 1,
insurance will attach on the 10th day after the properly completed
application is received in the insurance provider's local office,
unless we inspect the acreage during the 10 day period and determine
that it does not meet insurability requirements. Provisions were also
added to clarify insurability when an insurable share is acquired or
relinquished on or before the acreage reporting date.
8. Section 10(b)--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. Add
a provision that states that damage caused by phylloxera is not covered
regardless of cause.
9. Section 11(b)--Require the producer to give notice at least 15
days prior to harvest so a preharvest inspection can be made if the
insured intends to engage in direct marketing to consumers in order to
permit an accurate appraisal of production to count since it is
difficult to verify direct marketed production. Also removed provisions
regarding harvest prior to full maturity. Table grapes are not
harvested before the production reaches maturity.
10. Section 11(c)--Add provisions that the insured must give notice
prior to harvest so that any damaged production may be inspected.
Failure to do so may result in all such production being considered
undamaged and included as production to count.
11. Section 13--Add provisions for providing insurance coverage by
written agreement. FCIC has a long standing policy of permitting
certain modifications 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
application for and duration of written agreements.
List of Subjects in 7 CFR Parts 441 and 457
Crop insurance, Table grape.
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 441 and
457, effective for the 1998 and succeeding crop years, as follows:
PART 441--TABLE GRAPE CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 441 is amended to read as
follows:
Authority: 7 U.S.C. 1506(l),1506(p).
2. The subpart heading preceeding Sec. 441.1 is revised to read as
follows:
Subpart-Regulations for the 1987 through 1997 Crop Years.
3. Section 441.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 441.7 The application and policy.
* * * * *
(d) The application for the 1987 through 1997 crop years is found
at subpart D of part 400, General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Table Grape Insurance Policy for
the 1987 through 1997 crop years are as follows:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
4. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
5. A new Sec. 457.149 is added to read as follows:
Sec. 457.149 Table Grape Crop Insurance Provisions.
The Table Grape Crop Insurance Provisions for the 1998 and
succeeding crop years are as follows:
For FCIC policies:
[[Page 2062]]
Department of Agriculture
Federal Crop Insurance Corporation
For reinsured policies: (Insurance provider's name or other
appropriate heading).
For both FCIC and reinsured policies:
Table Grape 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
Cluster thinning and removal--Removing parts of an immature
cluster or the entire cluster of grapes.
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 recognized by the Cooperative State Research,
Education, and Extension Service as compatible with agronomic and
weather conditions in the county.
Graft--To unite a shoot or bud (scion) with a rootstock or an
existing vine in accordance with recommended practices to form a
living union.
Harvest--Severing the clusters of mature grapes from the vine.
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.
Lug--Twenty pounds of table grapes in the Coachella Valley,
California district; 21 pounds in all other California districts;
and 22 pounds in Arizona.
Non-contiguous--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.
Production guarantee (per acre)--The number of lugs of grapes
determined by multiplying the approved APH yield per acre by the
coverage level percentage you elect.
Set out--Physically planting the desired variety of grape plant
in the ground in a desired planting pattern.
Table grapes--Grapes that are grown for commercial sale for
human consumption as fresh fruit on acreage where the cultural
practices to produce fresh marketable grapes were carried out.
Written agreement--A written document that alters designated
terms of this policy in accordance with section 12.
2. Unit Division
(a) A unit as defined in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8), will be divided into basic units by each
table grape variety you insure.
(b) 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.
(c) 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.
(d) 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.
(e) All optional units that you elect must be identified on the
acreage report for that crop year.
(f) 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; and
(2) 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; 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 select only one price election and coverage level
for each table grape variety in the county insured under this
policy.
(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 if applicable:
(1) Any damage, removal of bearing vines, change in practices,
or any other circumstance 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 vines on insurable and uninsurable
acreage;
(3) The age of the vines 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
interplanting the perennial crop, removal of vines; damage; change
in practices and any other circumstance that may affect the yield
potential of the insured crop. If you fail to notify us of any
circumstance that may reduce your yields from previous levels, we
will reduce your production guarantee as necessary at any time we
become aware of the circumstance.
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. Report of Acreage
In addition to the requirements of section 6 (Report of Acreage)
of the Basic Provisions (Sec. 457.8), you must report the acreage of
table grapes in the county by variety.
7. Insured Crop
(a) In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be any insurable
variety of grapes in the county that you elect and for which a
premium rate is provided by the actuarial table:
(1) In which you have a share;
(2) That are grown for harvest as table grapes;
(3) That are adapted to the area; and
(4) That are grown in a vineyard that, if inspected, is
considered acceptable by us.
(b) In addition to table grapes not insurable under section 8
(Insured Crop) of the Basic Provisions (Sec. 457.8), we do not
insure any grapes grown on vines:
(1) That, after being set out or grafted, have not reached the
number of growing seasons designated by the Special Provisions; or
(2) That have not produced an average of at least 150 lugs of
table grapes per acre in at least one of the most recent three crop
years in your actual production history base period. However, we may
inspect and agree in writing to insure acreage that has not produced
this amount.
8. Insurable Acreage
In lieu of the provisions in section 9 (Insurable Acreage) of
the Basic Provisions
[[Page 2063]]
(Sec. 457.8) that prohibit insurance attaching to a crop planted
with another crop, table grapes interplanted with another perennial
crop are insurable unless we inspect the acreage and determine that
it does not meet the requirements contained in your policy.
9. 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 year of application, if your application is received after
January 22 but prior to February 1, insurance will attach on the
10th day after your properly completed application is received in
our local office, unless we inspect the acreage during the 10 day
period and determine that it does not meet insurability
requirements. You must provide any information that we require for
the crop or to determine the condition of the vineyard.
(2) The calendar date for the end of the insurance period for
each crop year is the date during the calendar year in which the
grapes are normally harvested, as follows:
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Variety Date
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Arizona:
All counties............................... Perlette.......................... June 15.
Flame Seedless.................... July 15.
All others........................ July 31.
California:
Fresno, Kern, Kings, Madera, and Tulare Perlette.......................... August 15.
counties.
Cardinal.......................... August 15.
Exotic............................ August 31.
Flame Seedless.................... September 15.
Superior Seedless................. August 31.
Red Malaga........................ September 15.
Queen............................. September 15.
Thompson Seedless................. September 15.
Black Rose........................ September 30.
Italia............................ September 30.
White Malaga...................... October 15.
Ribier............................ October 15.
Ruby Seedless..................... October 15.
All others........................ October 31.
Merced, Stanislaus, and San Joaquin Flame Seedless.................... September 15.
counties.
Thompson Seedless................. September 30.
Ribier............................ October 15.
Flame Tokay....................... October 15.
All others........................ October 31.
Imperial, Riverside, and San Bernardino Beauty Seedless................... July 15.
counties.
Perlette.......................... July 15.
All others........................ July 31.
----------------------------------------------------------------------------------------------------------------
(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
for the 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 table grapes on or before the acreage reporting date for
the crop year, insurance will not be considered to have attached to,
and no premium will be due or indemnity paid 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;
(ii) We are notified by you or the transferee in writing of such
transfer on or before the acreage reporting date; and
(iii) The transferee is eligible for crop insurance.
10. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur 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
vineyard;
(3) Wildlife;
(4) Earthquake;
(5) Volanic 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 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;
(2) Phylloxera, regardless of cause; or
(3) Inability to market the table grapes 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.
11. 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), the
following will apply:
(a) You must notify us within 3 days of the date harvest should
have started if the 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. We will conduct an
appraisal that will be used to determine your production to count
for production that is sold by direct marketing. If damage occurs
after this appraisal, we will conduct an additional appraisal. These
appraisals, and any acceptable records provided by you, will be used
to determine your production to count. Failure to give timely notice
that production will be sold by direct marketing will result in an
appraised amount of production to count 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 (Sec. 457.8) so that we may inspect any damaged
production. If you fail to notify us, we may
[[Page 2064]]
consider all such production to be undamaged and include it as
production to count.
12. 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 by its respective production
guarantee;
(2) Multiplying the result in section 12(b)(1) by the respective
price election for the variety;
(3) Totaling the results in section 12(b)(2);
(4) Multiplying the total production to be counted of the
variety (see section 12(c)) by the respective price election;
(5) Totaling the results in section 12(b)(4);
(6) Subtracting the result of section 12(b)(5) from the result
in section 12(b)(3); and
(7) Multiplying the result of section 12(b)(6) by your share.
(c) The total production to count (in lugs) 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) That is sold by direct marketing if you fail to meet the
requirements in section 11(b);
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production that meets, or would meet if
properly handled, the California Department of Food and Agriculture
minimum standards for table grapes; 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 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 insurable acreage regardless
of condition or disposition.
(d) The quantity of production to count for table grape
production damaged by insurable causes within the insurance period
and that is marketed for any use other than table grapes will be
determined by multiplying the greater of (1) the value of the table
grapes per ton or (2) $50, by the number of tons and dividing that
result by the highest price election available for the insured unit.
This result will be the number of lugs to count.
13. Written Agreement
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
13(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, DC, on January 10, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-1015 Filed 1-14-97; 8:45 am]
BILLING CODE 3410-FA-P
