[Federal Register Volume 60, Number 216 (Wednesday, November 8, 1995)]
[Proposed Rules]
[Pages 56257-56268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27711]
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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. 60, No. 216 / Wednesday, November 8, 1995 /
Proposed Rules
[[Page 56257]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 401, 443, and 457
RIN 0563-AB43
General Crop Insurance Regulations, Various Endorsements; Hybrid
Seed Crop Insurance Regulations; and Common Crop Insurance Regulations,
Various Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby
proposes to amend the General Crop Insurance Regulations, Hybrid
Sorghum Seed and Rice Endorsements; the Hybrid Seed Crop Insurance
Regulations; and the Common Crop Insurance Regulations, Small Grains,
Cotton, Extra Long Staple Cotton, Sunflower Seed and Coarse Grains Crop
Insurance Provisions; applicable beginning with the 1996 crop year for
spring crops with contract change dates after the effective date of
this rule, by revising prevented planting coverage. The intended effect
of this regulation is to expand prevented planting benefits available
under the various policies being amended.
DATES: Written comments, data, and opinions on this proposed rule must
be submitted by the close of business November 20, 1995 to be
considered when the rule is to be made final.
ADDRESSES: Written comments, data, and opinions on this proposed rule
should be sent to Diana Moslak, Regulatory and Procedural Development
Staff, Federal Crop Insurance Corporation, USDA, Washington, D.C.
20250. Hand or messenger delivery should be made to 2101 L Street,
N.W., Suite 500, Washington D.C. Written comments will be available for
public inspection and copying in the Office of the Manager, 2101 L
Street, N.W., 5th Floor, Washington, D.C., during regular business
hours, Monday through Friday.
FOR FURTHER INFORMATION CONTACT: For further information and a copy of
the Cost-Benefit Analysis and Regulatory Flexibility Analysis to the
General Crop Insurance Regulations; Hybrid Seed Crop Insurance
Regulations; and Common Crop Insurance Regulations for prevented
planting provisions, contact Diana Moslak, Regulatory and Procedural
Development Staff, Federal Crop Insurance Corporation, U.S. Department
of Agriculture, Washington, D.C. 20250. Telephone (202) 254-8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under United
States Department of Agriculture (``USDA'') procedures established by
Executive Order 12866 and Departmental Regulation 1512-1. This action
does not constitute a review as to the need, currency, clarity, and
effectiveness of these regulations under those procedures. The sunset
review date established for small grains is July 1, 1998; coarse
grains, cotton, Extra Long Staple cotton and Sunflower Seed is March 1,
1999; Hybrid Seed is October 1, 1997; Hybrid Sorghum Seed is May 1,
2000; and Rice is August 29, 1998.
This rule has been determined to be ``economically significant''
for the purposes of Executive Order 12866, and therefore, has been
reviewed by the Office of Management and Budget (``OMB'').
A Cost-Benefit Analysis has been completed and is available to
interested persons at the address listed above. In summary, the
analysis finds that the expected Treasury costs of these changes are
expected to range between $2.1 and $20.8 million. Added costs are due
to higher reimbursements to reinsured companies and for premium
subsidies for producers. The estimates assume the majority of farmers
will decline the coverage for the substitute crop, opting instead for a
reduced premium on the intended crop. Nationwide, premium rates will
increase 6 to 7 percent for the added coverage. As examples of monetary
impacts, this means average increases in the farmer paid premium of 20-
25 cents per acre for wheat in the Northern Plains; 30 cents for corn
in Iowa; and 60-90 cents per acre for upland cotton. However, the
premium rate increases will not be uniform. Instead, the highest risk
areas (such as lowlands along rivers and similar conditions) can expect
greater increases in premium to cover the added risk. Producers who
farm such lands are expected to be the primary group that will retain
this added coverage and elect to pay the additional premium. The
changes to the prevented planting rules are expected to provide farmers
with added assistance in extreme weather conditions, but do so in a
manner that maintains the actuarial integrity of the Federal crop
insurance program.
Paperwork Reduction Act of 1995
The information collection requirements contained in these
regulations have been submitted to OMB for their approval under section
3507(d) of the Paperwork Reduction Act of 1995. These requirements were
previously approved by OMB under OMB control number 0563-0003 through
September 30, 1998. The amendments set forth in this rule do not revise
the content or alter the frequency of reporting for any of the forms
cleared under the above-referenced docket.
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including General Crop
Insurance Regulations, Hybrid Seed Crop Insurance Regulations and
Common Crop Insurance Regulations.'' The information to be collected
includes: a crop insurance acreage report, an insurance application and
continuous contract. Information collected from the acreage report and
application is electronically transmitted to FCIC by the reinsured
companies. Some respondents may provide additional information for the
purpose of selecting insurance options that apply to specific crops or
specific areas in which a crop is produced. Potential respondents to
this information collection are growers of crops that are eligible for
Federal Crop Insurance.
The information requested is necessary for the insurance company
and FCIC to provide insurance, provide reinsurance, determine
eligibility, determine the correct parties to the agreement, determine
and collect premiums or other monetary amounts (or fees), 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 1,750,015
respondents. The total annual burden on the public for this
[[Page 56258]]
information collection is 2,668,750 hours. The total annual burden has
increased from the 1995 requirements to reflect the paperwork burden on
the reinsured companies.
Comments are invited on: (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 technology.
Comments should be submitted to the Desk Officer for Agriculture,
Office of Information and Regulatory Affairs, Office of Management and
Budget (OMB), Washington, D.C 20503 and to Bonnie Hart, Information
Management Branch, Consolidated Farm Service Agency, U.S. Department of
Agriculture, Washington, D.C. 20250. Copies of the information
collection may be obtained from Bonnie Hart at the above address.
Telephone (202) 690-2857.
It has been determined under section 6(a) of Executive Order 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.
The amount of work required of the insurance companies and CFSA
offices delivering the policies and the procedures therein may increase
significantly from the amount of work currently required to deliver
previous policies to which this regulation applies. Therefore, this
action has been reviewed under the provisions of the Regulatory
Flexibility Act (5 U.S.C. Sec. 605) and a Regulatory Flexibility
Analysis is available to interested persons at the address listed
above.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
This program is not subject to the provisions of Executive Order
12372 which 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.
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in subsections 2(a)
and 2(b)(2) of Executive Order 12778. The provisions of this rule will
preempt state and local laws to the extent such state and local laws
are inconsistent herewith. The administrative appeal provisions
promulgated by the National Appeals Division under Pub. L. No. 103-354
must be exhausted before judicial action may be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
Current regulations do not allow an insured producer to obtain a
prevented planting guarantee for one crop and plant a substitute crop
intended for harvest in the same crop year on the same land. By this
rule, an insured who purchases limited or additional coverage beginning
with the 1996 crop year for spring crops with contract change dates
after the effective date of this rule, will be eligible to: (1) receive
a prevented planting guarantee equal to 25 percent of the guarantee for
timely planted acreage (20 percent for hybrid seed and 17.5 percent for
cotton, ELS cotton, and rice) when acreage that is prevented from being
planted is planted to a substitute crop and, as applicable, a 0/92 or
50/92 program benefit; (2) exclude eligibility for prevented planting
coverage when a substitute crop is planted in return for a reduction in
the premium; and (3) receive prevented planting coverage on double
cropped acreage (except for ELS cotton) if the producer can provide
proof that planting of a second crop (double crop) following the
harvest of an initial crop in the same crop year is a farming practice
normally followed by that producer. By this rule, the prevented
planting provisions also: (1) allow all insured producers to receive a
0/92 or 50/92 program benefit, as applicable, and a crop insurance
prevented planting guarantee equal to 50 percent of the guarantee for
timely planted acreage (40 percent for hybrid seed and 35 percent for
cotton, ELS cotton, and rice) when acreage that is prevented from being
planted is not planted to a substitute crop; (2) eliminate the
provisions that require acreage eligible for a prevented planting
guarantee to be prorated to all units that could have been planted in
the crop year; (3) change the date that notice of loss is required,
from 3 days after the final planting date or the date the producer
discovers that planting will not be possible within the late planting
period, to the acreage reporting date; and (4) allow prevented planted
acreage planted with a conserving use cover crop to be hayed and grazed
without limitation.
This rule defines prevented planting as ``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
or the end of the late planting period. You must have been unable to
plant the insured crop due to an insured cause of loss that has
prevented most producers in the surrounding area from planting.'' This
definition was designed to accommodate extremely varied production
areas and farming practices; including those in which growers do not
plant after the final planting date and those in which growers often do
plant a crop within the late planting period. Some farming areas have
relatively short growing seasons which make the prospect of a
successful crop doubtful if planted much beyond the final planting
date. Other areas have much longer growing seasons and often allow a
successful crop to be grown even if planted well after the final
planting date. In both long and short growing areas some farming
practices, such as the production of silage, allow a grower to plant
after the final planting date and still produce an acceptable crop.
FCIC is specifically requesting comments and recommendations regarding
this definition.
List of Subjects
7 CFR Part 401
Crop insurance, Hybrid sorghum seed, Rice.
7 CFR Part 443
Crop insurance, hybrid seed.
7 CFR Part 457
Crop insurance, small grains, cotton, ELS cotton, sunflower seed
and coarse grains.
Proposed Rule
In this document, 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 General
Crop Insurance Regulations (7 CFR part 401) by amending the Hybrid
Sorghum Seed (Sec. 401.109) and Rice (Sec. 401.120) Endorsements; the
Hybrid Seed Crop Insurance Policy (7 CFR 443.7(d)); and the Common Crop
Insurance Regulations (7 CFR part 457) by amending the Small Grains
(Sec. 457.101), Cotton (Sec. 457.104), Extra Long Staple
[[Page 56259]]
Cotton (Sec. 457.105), Sunflower Seed (Sec. 457.108), and Coarse Grains
(Sec. 457.113) Crop Insurance Provisions; applicable beginning with the
1996 crop year for spring crops with contract change dates after the
effective date of the final rule. Accordingly, 7 CFR parts 401, 443,
and 457 are proposed to be amended as follows:
PART 401--[AMENDED]
1. The authority citation for 7 CFR part 401 continues to read as
follows:
Authority: 7 U.S.C. 1506(1).
2. Section 401.109 is amended by revising paragraphs 12(a)(3),
12(b), and 12(d) of the Hybrid Sorghum Seed Endorsement to read as
follows:
Sec. 401.109 Hybrid sorghum seed endorsement.
* * * * *
12. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre amount
of insurance for timely planted acreage by:
(i) Fifty percent (0.50) and multiply the result by the 50 acres
you were prevented from planting, if the acreage is eligible for
prevented planting coverage, and if the acreage is left idle for the
crop year, or if a cover crop is planted not for harvest. Prevented
planting compensation hereunder will not be denied because the cover
crop is hayed or grazed; or
(ii) Twenty-five percent (0.25) and multiply the result by the
50 acres you were prevented from planting, if the acreage is
eligible for prevented planting coverage, and if you elect to plant
a substitute crop for harvest after the intended crop was prevented
from being planted. (This subparagraph (ii) is not applicable, and
prevented planting coverage is not available hereunder, if you
elected the Catastrophic Risk Protection Endorsement or you elected
to exclude prevented planting coverage when a substitute crop is
planted (see subparagraph 12(d)(1)(iii))).
The total of the three calculations will be the amount of
insurance for the unit. Your premium will be based on the result of
multiplying the per acre amount of insurance for timely planted
acreage by the 150 insured crop acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period).
(1) If you were prevented from planting the insured crop (see
subsection 13(o)), you may elect:
(i) To plant the insured crop during the late planting period.
The amount of insurance for such acreage will be determined in
accordance with paragraph 12(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the amount of insurance
for such acreage will be fifty percent (50%) of the amount of
insurance for timely planted acres. For example, if your amount of
insurance for timely planted acreage is 200 dollars per acre, your
prevented planting amount of insurance would be 100 dollars per acre
(200 dollars multiplied by 0.50). If you elect to plant the insured
crop after the late planting period, production to count for such
acreage will be determined in accordance with subsections 8b through
e; or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the amount of insurance for such acreage
will be twenty-five percent (25%) of the amount of insurance for
timely planted acres. If you elected the Catastrophic Risk
Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your amount of insurance for timely planted acreage
is 200 dollars per acre, your prevented planting amount of insurance
would be 50 dollars per acre (200 dollars multiplied by 0.25). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
yield upon which your amount of insurance is based may be required.
(3) In addition to the provisions of section 7 (Insurance
Period) of the General Crop Insurance Policy (Sec. 401.8), the
insurance period for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase a hybrid sorghum seed crop
insurance policy for the 1996 crop year, prevented planting coverage
will begin on the 1996 sales closing date for the insured crop in
the county. If the hybrid sorghum seed coverage remains in effect
for the 1997 crop year (is not terminated or cancelled during or
after the 1996 crop year, except the policy may have been cancelled
to transfer the policy to a different insurance provider, if there
is no lapse in coverage), prevented planting coverage for the 1997
crop year began on the 1996 sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to the insured crop during the
previous crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to the insured crop for previous years for
which you have continuous records of planted acreage.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
[[Page 56260]]
were prevented from planting in the same crop year, even if you have a
history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of acres of the insured crop timely
planted and late planted. For example, assume you have 100 acres
eligible for prevented planting coverage in which you have a 100
percent (100%) share. The acreage is located in a single CFSA Farm
Serial Number which you insure as two separate optional units
consisting of 50 acres each. If you planted 60 acres of the insured
crop on one optional unit and 40 acres of the insured crop on the
second optional unit, your prevented planting eligible acreage would
be reduced to zero (i.e., 100 acres eligible for prevented planting
coverage minus 100 acres planted equals zero).
(5) In accordance with the provisions of section 3 (Report of
Acreage, Share, and Practice (Acreage Report) of the General Crop
Insurance Policy (Sec. 401.8), you must report by unit any insurable
acreage that you were prevented from planting. This report must be
submitted on or before the acreage reporting date. The total amount
of prevented planting and planted acres cannot exceed the maximum
number of acres eligible for prevented planting coverage. Any
acreage you report in excess of the number of acres eligible for
prevented planting coverage, or that exceeds the number of eligible
acres physically located in a unit, will be deleted from your
acreage report.
(6) If the amount of premium you are required to pay (gross
premium less our subsidy) for the prevented planting acreage exceeds
the prevented planting liability on a unit, prevented planting
coverage will not be provided for that unit (no premium will be due
and no indemnity will be paid for such acreage).
Sec. 401.109 [Amended]
3. Section 401.109 is amended by revising paragraph 13(o) to read
as follows:
* * * * *
13. Meaning of Terms
* * * * *
(o) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
4. Section 401.120 is amended by revising paragraphs 10(a)(3),
10(b), and 10(d) of the Rice Endorsement to read as follows:
Sec. 401.120 Rice endorsement.
* * * * *
10. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Thirty-five percent (0.35) and multiply the result by the 50
acres you were prevented from planting, if the acreage is eligible
for prevented planting coverage, and if the acreage is left idle for
the crop year, or if a cover crop is planted not for harvest.
Prevented planting compensation hereunder will not be denied because
the cover crop is hayed or grazed; or
(ii) Seventeen and five tenths percent (0.175) and multiply the
result by the 50 acres you were prevented from planting, if the
acreage is eligible for prevented planting coverage, and if you
elect to plant a substitute crop for harvest after the intended crop
was prevented from being planted. (This subparagraph (ii) is not
applicable, and prevented planting coverage is not available
hereunder, if you elected the Catastrophic Risk Protection
Endorsement or you elected to exclude prevented planting coverage
when a substitute crop is planted (see subparagraph 10(d)(1)(iii))).
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period).
(1) If you were prevented from planting rice (see subsection
11(h)), you may elect:
(i) To plant rice during the late planting period. The
production guarantee for such acreage will be determined in
accordance with paragraph 10(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be thirty-five percent (35%) of the production
guarantee for timely planted acres. For example, if your production
guarantee for timely planted acreage is 2000 pounds per acre, your
prevented planting production guarantee would be 700 pounds per acre
(2000 pounds multiplied by 0.35). If you elect to plant the insured
crop after the late planting period, production to count for such
acreage will be determined in accordance with subsections 7 b and c;
or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be seventeen and five tenths percent (17.5%) of the production
guarantee for timely planted acres. If you elected the Catastrophic
Risk Protection Endorsement or excluded this coverage and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 2000 pounds per acre, your prevented planting production
guarantee would be 350 pounds per acre (2000 pounds multiplied by
0.175). You may elect to exclude prevented planting coverage when a
substitute crop is planted for harvest and receive a reduction in
the applicable premium rate. If you wish to exclude this coverage,
you must so indicate on your application or on a form approved by
us. Your election to exclude this coverage will remain in effect
from year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(3) In addition to the provisions of section 7 (Insurance
Period) of the General Crop Insurance Policy (Sec. 401.8), the
insurance period for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for rice in the county for the crop year the application
for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase a rice crop insurance policy
for the 1996 crop year, prevented planting coverage will begin on
the 1996 sales closing date for the insured crop in the county. If
the rice coverage remains in effect for the 1997 crop year (is not
terminated or cancelled during or after the 1996 crop year, except
the policy may have been cancelled to transfer the policy to a
different insurance provider, if there is no lapse in coverage),
prevented planting coverage for the 1997 crop year began on the 1996
sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
[[Page 56261]]
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to rice during the previous crop
year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to rice during the crop years that you
certified to determine your yield.
(iii) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year, even if you have
a history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received.
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(iv) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of rice acres timely planted and late
planted. For example, assume you have 100 acres eligible for
prevented planting coverage in which you have a 100 percent (100%)
share. The acreage is located in a single CFSA Farm Serial Number
which you insure as two separate optional units consisting of 50
acres each. If you planted 60 acres of rice on one optional unit and
40 acres of rice on the second optional unit, your prevented
planting eligible acreage would be reduced to zero (i.e., 100 acres
eligible for prevented planting coverage minus 100 acres planted
equals zero).
(5) In accordance with the provisions of section 3 (Report of
Acreage, Share, and Practice (Acreage Report) of the General Crop
Insurance Policy (Sec. 401.8), you must report by unit any insurable
acreage that you were prevented from planting. This report must be
submitted on or before the acreage reporting date. The total amount
of prevented planting and planted acres cannot exceed the maximum
number of acres eligible for prevented planting coverage. Any
acreage you report in excess of the number of acres eligible for
prevented planting coverage, or that exceeds the number of eligible
acres physically located in a unit, will be deleted from your
acreage report.
(6) If the amount of premium you are required to pay (gross
premium less our subsidy) for the prevented planting acreage exceeds
the prevented planting liability on a unit, prevented planting
coverage will not be provided for that unit (no premium will be due
and no indemnity will be paid for such acreage).
5. Section 401.120 is amended by revising paragraph 11(h) to read
as follows:
* * * * *
11. Meaning of Terms
* * * * *
(h) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
PART 443--[AMENDED]
6. The authority citation for 7 CFR part 443 continues to read as
follows:
Authority: 7 U.S.C. 1506(1).
7. Section 443.7(d) is amended by revising paragraphs 17(a)(3),
17(b), and 17(d) of the Hybrid Seed Crop Insurance Policy to read as
follows:
Sec. 443.7 The application and policy.
* * * * *
(d) * * *
17. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre amount
of insurance for timely planted acreage by:
(i) Forty percent (0.40) and multiply the result by the 50 acres
you were prevented from planting, if the acreage is eligible for
prevented planting coverage, and if the acreage is left idle for the
crop year, or if a cover crop is planted not for harvest. Prevented
planting compensation hereunder will not be denied because the cover
crop is hayed or grazed; or
(ii) Twenty percent (0.20) and multiply the result by the 50
acres you were prevented from planting, if the acreage is eligible
for prevented planting coverage, and if you elect to plant a
substitute crop for harvest after the intended crop was prevented
from being planted. (This subparagraph (ii) is not applicable, and
prevented planting coverage is not available hereunder, if you
elected the Catastrophic Risk Protection Endorsement or you elected
to exclude prevented planting coverage when a substitute crop is
planted (see subparagraph 17(d)(1)(iii))).
The total of the three calculations will be the amount of
insurance for the unit. Your premium will be based on the result of
multiplying the per acre amount of insurance for timely planted
acreage by the 150 insured crop acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period)
(1) If you were prevented from planting the insured crop (see
subsection 18(w)), you may elect:
(i) To plant the insured crop during the late planting period.
The amount of insurance for such acreage will be determined in
accordance with paragraph 17(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the amount of insurance
for such acreage will be forty percent (40%) of the amount of
insurance for timely planted acres. For example, if your amount of
insurance for timely planted acreage is 200 dollars per acre, your
prevented planting amount of insurance would be 80 dollars per acre
(200 dollars multiplied by 0.40). If you elect to plant the insured
crop after the late planting period, production to count for such
acreage will be determined in accordance with subsection 9e.; or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the amount of insurance for such acreage
will be twenty percent (20%) of the amount of insurance for timely
planted acres. If you elected the Catastrophic Risk Protection
Endorsement or excluded this coverage, and plant a substitute crop,
no prevented planting coverage will be provided. For example, if
your amount of insurance for timely planted acreage is 200 dollars
per acre, your prevented planting amount of insurance would be 40
dollars per acre (200 dollars multiplied by 0.20). You may elect to
exclude prevented planting coverage when a substitute crop is
planted for harvest and receive a reduction in the applicable
premium rate. If you wish to exclude this coverage, you must so
indicate on your application or on a form approved by us. Your
election to exclude this coverage will remain in effect from year to
year unless you notify us in writing on our form by the applicable
sales closing date for the crop year for which you wish to include
this coverage.
[[Page 56262]]
All acreage of the crop insured under this policy will be subject to
this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
yield upon which your amount of insurance is based may be required.
(3) In addition to the provisions of section 7 (Insurance
Period), the insurance period for prevented planting coverage
begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase a hybrid seed crop insurance
policy for the 1996 crop year, prevented planting coverage will
begin on the 1996 sales closing date for the insured crop in the
county. If the hybrid seed coverage remains in effect for the 1997
crop year (is not terminated or cancelled during or after the 1996
crop year, except the policy may have been cancelled to transfer the
policy to a different insurance provider, if there is no lapse in
coverage), prevented planting coverage for the 1997 crop year began
on the 1996 sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to the insured crop during the
previous crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to the insured crop for previous years for
which you have continuous records of planted acreage.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (acreage that is
less than 20 acres or 20 percent (20%) of the acreage in the unit
will be presumed to have been intended to be planted to the insured
crop planted on the adjoining acreage, unless you can show that you
had the inputs available to plant and produce another insured crop
on the acreage before the final planting date);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from being planted, if
you have already received a prevented planting indemnity, guarantee
or amount of insurance for such acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four crop years;
(E) On which the insured crop is prevented from being planted,
if any other crop is planted and fails, or is planted and harvested,
hayed or grazed on such acreage in the same crop year, (other than a
cover crop as specified in paragraph (a)(3)(i) of this section, or a
substitute crop allowed in paragraph (a)(3)(ii) of this section),
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(F) Insured under the Catastrophic Risk Protection Endorsement
if you:
(1) Have already received a prevented planting indemnity,
guarantee or amount of insurance for such acreage in the same crop
year, even if the acreage has a history of double-cropping; or
(2) Plant any other crop on the acreage for harvest, haying or
grazing in the same crop year (other than a cover crop as specified
in paragraph (a)(3)(i) of this section), even if such crop fails;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of acres of the insured crop timely
planted and late planted. For example, assume you have 100 acres
eligible for prevented planting coverage in which you have a 100
percent (100%) share. The acreage is located in a single CFSA Farm
Serial Number which you insure as two separate optional units
consisting of 50 acres each. If you planted 60 acres of the insured
crop on one optional unit and 40 acres of the insured crop on the
second optional unit, your prevented planting eligible acreage would
be reduced to zero (i.e., 100 acres eligible for prevented planting
coverage minus 100 acres planted equals zero).
(5) In accordance with the provisions of section 3 (Report of
Acreage, Share, Type and Practice), you must report by unit any
insurable acreage that you were prevented from planting. This report
must be submitted on or before the acreage reporting date. The total
amount of prevented planting and planted acres cannot exceed the
maximum number of acres eligible for prevented planting coverage.
Any acreage you report in excess of the number of acres eligible for
prevented planting coverage, or that exceeds the number of eligible
acres physically located in a unit, will be deleted from your
acreage report.
(6) If the amount of premium you are required to pay (gross
premium less our subsidy) for the prevented planting acreage exceeds
the prevented planting liability on a unit, prevented planting
coverage will not be provided for that unit (no premium will be due
and no indemnity will be paid for such acreage).
8. Section 443.7(d) is amended by revising paragraph 18(w) to read
as follows:
* * * * *
18. Meaning of Terms
* * * * *
(w) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
PART 457--[AMENDED]
9. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1).
10. Section 457.101 is amended by revising paragraph 1(p) of the
Small Grains Crop Provisions to read as follows:
Sec. 457.101 Small Grains Crop Insurance.
* * * * *
1. Definitions
* * * * *
(p) Prevented planting--Inability to plant the insured crop with
proper equipment by the latest final planting date designated in the
Special Provisions for the insured crop in the county or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
11. Section 457.101 is amended by revising paragraphs 12(a)(3),
12(b), and 12(d) to read as follows:
* * * * *
12. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Fifty percent (0.50) and multiply the result by the 50 acres
you were prevented
[[Page 56263]]
from planting, if the acreage is eligible for prevented planting
coverage, and if the acreage is left idle for the crop year, or if a
cover crop is planted not for harvest. Prevented planting
compensation hereunder will not be denied because the cover crop is
hayed or grazed; or
(ii) Twenty-five percent (0.25) and multiply the result by the
50 acres you were prevented from planting, if the acreage is
eligible for prevented planting coverage, and if you elect to plant
a substitute crop for harvest after the intended crop was prevented
from being planted. (This subparagraph (ii) is not applicable, and
prevented planting coverage is not available hereunder, if you
elected the Catastrophic Risk Protection Endorsement or you elected
to exclude prevented planting coverage when a substitute crop is
planted (see subparagraph 12(d)(1)(iii))).
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period).
(1) If you were prevented from planting the insured crop (see
subsection 1(p)), you may elect:
(i) To plant the insured crop during the late planting period.
The production guarantee for such acreage will be determined in
accordance with paragraph 12(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be 50 percent (50%) of the production
guarantee for timely planted acres. In counties for which the
Special Provisions designate a spring final planting date, the
prevented planting guarantee will be based on your approved yield
for spring-planted acreage of the insured crop. For example, if your
production guarantee for timely planted acreage is 30 bushels per
acre, your prevented planting production guarantee would be 15
bushels per acre (30 bushels multiplied by 0.50). If you elect to
plant the insured crop after the late planting period, production to
count for such acreage will be determined in accordance with
subsections 11(c) through (e); or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be twenty-five percent (25%) of the production guarantee for
timely planted acres. If you elected the Catastrophic Risk
Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 30 bushels per acre, your prevented planting production guarantee
would be 7.5 bushels per acre (30 bushels multiplied by 0.25). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(3) In addition to the provisions of section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
insurance period for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase insurance for wheat for the
1996 crop year, prevented planting coverage will begin on the 1996
sales closing date for the insured crop in the county. If the wheat
coverage remains in effect for the 1997 crop year (is not terminated
or canceled during or after the 1996 crop year, except the policy
may have been canceled to transfer the policy to a different
insurance provider, if there is no lapse in coverage), prevented
planting coverage for the 1997 crop year began on the 1996 sales
closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to the insured crop during the
previous crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to the insured crop during the crop years
that you certified to determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year, even if you have
a history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of acres of the insured crop that are
timely planted and late planted, if the late planting period is
applicable. For example, assume you have 100 acres eligible for
prevented planting coverage in which you have a 100 percent (100%)
share. The acreage is located in a single CFSA Farm Serial Number
which you insure as two separate optional units consisting of 50
acres each. If you planted 60
[[Page 56264]]
acres of the insured crop on one optional unit and 40 acres of the
insured crop on the second optional unit, your prevented planting
eligible acreage would be reduced to zero (i.e., 100 acres eligible
for prevented planting coverage minus 100 acres planted equals
zero).
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report by unit any insurable acreage that you were prevented from
planting. This report must be submitted on or before the acreage
reporting date for spring-planted acreage of the insured crop in
counties for which the Special Provisions designates a spring final
planting date, or the acreage reporting date for fall-planted
acreage of the insured crop in counties for which the Special
Provisions designates a fall final planting date only. The total
amount of prevented planting and planted acres cannot exceed the
maximum number of acres eligible for prevented planting coverage.
Any acreage you report in excess of the number of acres eligible for
prevented planting coverage, or that exceeds the number of eligible
acres physically located in a unit, will be deleted from your
acreage report.
12. Section 457.104 is amended by revising paragraph 1(n) of the
Cotton Crop Provisions to read as follows:
Sec. 457.104 Cotton crop insurance provisions.
* * * * *
1. Definitions
* * * * *
(n) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
13. Section 457.104 is amended by revising paragraphs 12(a)(3),
12(b), and 12(d) to read as follows:
* * * * *
12. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Thirty-five percent (0.35) and multiply the result by the 50
acres you were prevented from planting, if the acreage is eligible
for prevented planting coverage, and if the acreage is left idle for
the crop year, or if a cover crop is planted not for harvest.
Prevented planting compensation hereunder will not be denied because
the cover crop is hayed or grazed; or
(ii) Seventeen and five tenths percent (0.175) and multiply the
result by the 50 acres you were prevented from planting, if the
acreage is eligible for prevented planting coverage, and if you
elect to plant a substitute crop for harvest after the intended crop
was prevented from being planted. (This subparagraph (ii) is not
applicable, and prevented planting coverage is not available
hereunder, if you elected the Catastrophic Risk Protection
Endorsement or you elected to exclude prevented planting coverage
when a substitute crop is planted (see subparagraph 12(d)(1)(iii))).
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period)
(1) If you were prevented from planting cotton (see subsection
1(n)), you may elect:
(i) To plant cotton during the late planting period. The
production guarantee for such acreage will be determined in
accordance with paragraph 12(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be thirty-five percent (35%) of the production
guarantee for timely planted acres. For example, if your production
guarantee for timely planted acreage is 700 pounds per acre, your
prevented planting production guarantee would be 245 pounds per acre
(700 pounds multiplied by 0.35). If you elect to plant the insured
crop after the late planting period, production to count for such
acreage will be determined in accordance with subsections 11 (c) and
(d); or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be seventeen and five tenths percent (17.5%) of the production
guarantee for timely planted acres. If you elected the Catastrophic
Risk Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 700 pounds per acre, your prevented planting production guarantee
would be 122.5 pounds per acre (700 pounds multiplied by 0.175). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(3) In addition to the provisions of section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
insurance period for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase a cotton crop insurance policy
for the 1996 crop year, prevented planting coverage will begin on
the 1996 sales closing date for the cotton crop in the county. If
the cotton coverage remains in effect for the 1997 crop year (is not
terminated or cancelled during or after the 1996 crop year, except
the policy may have been cancelled to transfer the policy to a
different insurance provider, if there is no lapse in coverage),
prevented planting coverage for the 1997 crop year began on the 1996
sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed to another crop, if applicable;
(B) The number of acres planted to cotton during the previous
crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to cotton during the crop years that you
certified to determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any
[[Page 56265]]
program administered by the United States Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year, even if you have
a history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of cotton acres timely planted and late
planted. For example, assume you have 100 acres eligible for
prevented planting coverage in which you have a 100 percent (100%)
share. The acreage is located in a single CFSA Farm Serial Number
which you insure as two separate optional units consisting of 50
acres each. If you planted 60 acres of cotton on one optional unit
and 40 acres of cotton on the second optional unit, your prevented
planting eligible acreage would be reduced to zero (i.e., 100 acres
eligible for prevented planting coverage minus 100 acres planted
equals zero).
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report by unit any insurable acreage that you were prevented from
planting. This report must be submitted on or before the acreage
reporting date. The total amount of prevented planting and planted
acres cannot exceed the maximum number of acres eligible for
prevented planting coverage. Any acreage you report in excess of the
number of acres eligible for prevented planting coverage, or that
exceeds the number of eligible acres physically located in a unit,
will be deleted from your acreage report.
14. Section 457.105 is amended by revising paragraph 1(l) of the
ELS Cotton Crop Provisions to read as follows:
Sec. 457.105 Extra long staple cotton crop insurance provisions.
* * * * *
1. Definitions
* * * * *
(l) 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 most producers in the surrounding area from
planting.
* * * * *
15. Section 457.105 is amended by revising paragraphs 12(a)(2) and
12(b) through (h) to read as follows:
* * * * *
12. Prevented Planting
(a) * * *
(2) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Thirty-five percent (0.35) and multiply the result by the 50
acres you were prevented from planting, if the acreage is eligible
for prevented planting coverage, and if the acreage is left idle for
the crop year, or if a cover crop is planted not for harvest.
Prevented planting compensation hereunder will not be denied because
the cover crop is hayed or grazed; or
(ii) Seventeen and five tenths percent (0.175) and multiply the
result by the 50 acres you were prevented from planting, if the
acreage is eligible for prevented planting coverage, and if you
elect to plant a substitute crop for harvest after the intended crop
was prevented from being planted. (This subparagraph (ii) is not
applicable, and prevented planting coverage is not available
hereunder, if you elected the Catastrophic Risk Protection
Endorsement or you elected to exclude prevented planting coverage
when a substitute crop is planted (see subsection 12(b)(2))).
The total of the two calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 100 acres in the unit.
(b) If you were prevented from planting ELS cotton (see
subsection 1(l)), you may elect:
(1) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the final planting date. In either case, the production guarantee
for such acreage will be thirty-five percent (35%) of the production
guarantee for timely planted acres. For example, if your production
guarantee for timely planted acreage is 600 pounds per acre, your
prevented planting production guarantee would be 210 pounds per acre
(600 pounds multiplied by 0.35). If you elect to plant the insured
crop after the final planting date, production to count for such
acreage will be determined in accordance with subsections 11(c)
through (f); or
(2) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be seventeen and five tenths percent (17.5%) of the production
guarantee for timely planted acres. If you elected the Catastrophic
Risk Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 700 pounds per acre, your prevented planting production guarantee
would be 122.5 pounds per acre (700 pounds multiplied by 0.175). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(c) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(d) In addition to the provisions of section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
insurance period for prevented planting coverage begins:
(1) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(2) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase an ELS cotton crop insurance
policy for the 1996 crop year, prevented planting coverage will
begin on the 1996 sales closing date for the insured crop in the
county. If the ELS cotton coverage remains in effect for the 1997
crop year (is not terminated or cancelled during or after the 1996
crop year, except the policy may have been cancelled to transfer the
policy to a different insurance provider, if there is no lapse in
coverage), prevented planting coverage for the 1997 crop year began
on the 1996 sales closing date.
(e) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
(f) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(1) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(2) If you do not participate in any program administered by the
United States
[[Page 56266]]
Department of Agriculture that limits the number of acres that may be
planted, and unless we agree in writing before the sales closing
date, eligible acreage will not exceed the greater of:
(i) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(ii) The number of acres planted to ELS cotton during the
previous crop year; or
(iii) One hundred percent (100%) of the simple average of the
number of acres planted to ELS cotton during the crop years that you
certified to determine your yield.
(3) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(4) Prevented planting coverage will not be provided for any
acreage:
(i) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(ii) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(iii) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(iv) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year;
(v) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year;
(vi) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year. If you have a
Catastrophic Risk Endorsement and receive a prevented planting
indemnity, guarantee, or amount of insurance for a crop and are
prevented from planting another crop on the same acreage, you may
only receive the prevented planting indemnity, guarantee, or amount
of insurance for the crop on which the prevented planting indemnity,
guarantee, or amount of insurance is received;
(vii) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(5) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of ELS cotton acres timely planted. For
example, assume you have 100 acres eligible for prevented planting
coverage in which you have a 100 percent (100%) share. The acreage
is located in a single CFSA Farm Serial Number which you insure as
two separate optional units consisting of 50 acres each. If you
planted 60 acres of ELS cotton on one optional unit and 40 acres of
ELS cotton on the second optional unit, your prevented planting
eligible acreage would be reduced to zero. (i.e., 100 acres eligible
for prevented planting coverage minus 100 acres planted equals
zero).
(g) In accordance with the provisions of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report by unit any insurable acreage that you were prevented from
planting. This report must be submitted on or before the acreage
reporting date. The total amount of prevented planting and planted
acres cannot exceed the maximum number of acres eligible for
prevented planting coverage. Any acreage you report in excess of the
number of acres eligible for prevented planting coverage, or that
exceeds the number of eligible acres physically located in a unit,
will be deleted from your acreage report.
(h) Late planting provisions are not available under these crop
provisions.
16. Section 457.108 is amended by revising paragraph 1(l) of the
Sunflower Seed Crop Provisions to read as follows:
Sec. 457.108 Sunflower seed crop insurance provisions.
* * * * *
1. Definitions
* * * * *
(l) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
17. Section 457.108 is amended by revising paragraphs 13(a)(3),
13(b), and 13(d) to read as follows:
* * * * *
13. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Fifty percent (0.50) and multiply the result by the 50 acres
you were prevented from planting, if the acreage is eligible for
prevented planting coverage, and if the acreage is left idle for the
crop year, or if a cover crop is planted not for harvest. Prevented
planting compensation hereunder will not be denied because the cover
crop is hayed or grazed; or
(ii) Twenty-five percent (0.25) and multiply the result by the
50 acres you were prevented from planting, if the acreage is
eligible for prevented planting coverage, and if you elect to plant
a substitute crop for harvest after the intended crop was prevented
from being planted. (This subparagraph (ii) is not applicable, and
prevented planting coverage is not available hereunder, if you
elected the Catastrophic Risk Protection Endorsement or you elected
to exclude prevented planting coverage when a substitute crop is
planted (see subsection 13(d)(1)(iii))).
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period)
(1) If you were prevented from planting sunflowers (see
subsection 1(l)), you may elect:
(i) To plant sunflower seed during the late planting period. The
production guarantee for such acreage will be determined in
accordance with paragraph 13(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be fifty percent (50%) of the production
guarantee for timely planted acres. For example, if your production
guarantee for timely planted acreage is 900 pounds per acre, your
prevented planting production guarantee would be 450 pounds per acre
(900 pounds multiplied by 0.50). If you elect to plant the insured
crop after the late planting period, production to count for such
acreage will be determined in accordance with subsections 12(c)
through (e); or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be twenty-five percent (25%) of the production guarantee for
timely planted acres. If you elected the Catastrophic Risk
Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 900 pounds per acre, your prevented planting production guarantee
would be 225 pounds per acre (900 pounds multiplied by 0.25). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(3) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), the insurance period
for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
[[Page 56267]]
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase a sunflower seed crop insurance
policy for the 1996 crop year, prevented planting coverage will
begin on the 1996 sales closing date for the insured crop in the
county. If the sunflower seed coverage remains in effect for the
1997 crop year (is not terminated or cancelled during or after the
1996 crop year, except the policy may have been cancelled to
transfer the policy to a different insurance provider, if there is
no lapse in coverage), prevented planting coverage for the 1997 crop
year began on the 1996 sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to sunflower seed during the
previous crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to sunflower seed during the crop years that
you certified to determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year, even if you have
a history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of sunflower acres timely planted and
late planted. For example, assume you have 100 acres eligible for
prevented planting coverage in which you have a 100 percent (100%)
share. The acreage is located in a single CFSA Farm Serial Number
which you insure as two separate optional units consisting of 50
acres each. If you planted 60 acres of sunflower seed on one
optional unit and 40 acres of sunflower seed on the second optional
unit, your prevented planting eligible acreage would be reduced to
zero (i.e.,100 acres eligible for prevented planting coverage minus
100 acres planted equals zero).
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Basic Provisions (Sec. 457.8), you must report by
unit any insurable acreage that you were prevented from planting.
This report must be submitted on or before the acreage reporting
date. The total amount of prevented planting and planted acres
cannot exceed the maximum number of acres eligible for prevented
planting coverage. Any acreage you report in excess of the number of
acres eligible for prevented planting coverage, or that exceeds the
number of eligible acres physically located in a unit, will be
deleted from your acreage report.
18. Section 457.113 is amended by revising paragraph 1(n) of the
Coarse Grains Crop Insurance Provisions to read as follows:
Sec. 457.113 Coarse Grains Crop Insurance Provisions.
* * * * *
1. Definitions
* * * * *
(n) 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 or the end of
the late planting period. You must have been unable to plant the
insured crop due to an insured cause of loss that has prevented most
producers in the surrounding area from planting.
* * * * *
19. Section 457.113 is amended by revising paragraphs 13(a)(3),
13(b), and 13(d) to read as follows:
* * * * *
13. Late Planting and Prevented Planting
(a) * * *
(3) For prevented planting acreage, multiply the per acre
production guarantee for timely planted acreage by:
(i) Fifty percent (0.50) and multiply the result by the 50 acres
you were prevented from planting, if the acreage is eligible for
prevented planting coverage, and if the acreage is left idle for the
crop year, or if a cover crop is planted not for harvest. Prevented
planting compensation hereunder will not be denied because the cover
crop is hayed or grazed; or
(ii) Twenty-five percent (0.25) and multiply the result by the
50 acres you were prevented from planting, if the acreage is
eligible for prevented planting coverage, and if you elect to plant
a substitute crop for harvest after the intended crop was prevented
from being planted. (This subparagraph (ii) is not applicable, and
prevented planting coverage is not available hereunder, if you
elected the Catastrophic Risk Protection Endorsement or you elected
to exclude prevented planting coverage when a substitute crop is
planted (see subsection 13(d)(1)(iii))).
The total of the three calculations will be the production
guarantee for the unit. Your premium will be based on the result of
multiplying the per acre production guarantee for timely planted
acreage by the 150 acres in the unit.
(b) If you were prevented from planting, you must provide
written notice to us not later than the acreage reporting date.
* * * * *
(d) Prevented Planting (Including Planting After the Late
Planting Period).
(1) If you were prevented from planting the insured crop (see
subsection 1(n)), you may elect:
(i) To plant the insured crop during the late planting period.
The production guarantee for such acreage will be determined in
accordance with paragraph 13(c)(1);
(ii) Not to plant this acreage to any crop except a cover crop
not for harvest. You may also elect to plant the insured crop after
the late planting period. In either case, the production guarantee
for such acreage will be fifty percent (50%) of the production
guarantee for timely planted acres. For
[[Page 56268]]
example, if your production guarantee for timely planted acreage is 30
bushels per acre, your prevented planting production guarantee would
be 15 bushels per acre (30 bushels multiplied by 0.50). If you elect
to plant the insured crop after the late planting period, production
to count for such acreage will be determined in accordance with
subsections 12(c) through (g); or
(iii) Not to plant the intended crop but plant a substitute crop
for harvest, in which case the production guarantee for such acreage
will be twenty-five percent (25%) of the production guarantee for
timely planted acres. If you elected the Catastrophic Risk
Protection Endorsement or excluded this coverage, and plant a
substitute crop, no prevented planting coverage will be provided.
For example, if your production guarantee for timely planted acreage
is 30 bushels per acre, your prevented planting production guarantee
would be 7.5 bushels per acre (30 bushels multiplied by 0.25). You
may elect to exclude prevented planting coverage when a substitute
crop is planted for harvest and receive a reduction in the
applicable premium rate. If you wish to exclude this coverage, you
must so indicate on your application or on a form approved by us.
Your election to exclude this coverage will remain in effect from
year to year unless you notify us in writing on our form by the
applicable sales closing date for the crop year for which you wish
to include this coverage. All acreage of the crop insured under this
policy will be subject to this exclusion.
(2) Proof that you had the inputs available to plant and produce
the intended crop with the expectation of at least producing the
production guarantee may be required.
(3) In addition to the provisions of section 11 (Insurance
Period) of the Common Crop Insurance Policy (Sec. 457.8), the
insurance period for prevented planting coverage begins:
(i) On the sales closing date contained in the Special
Provisions for the insured crop in the county for the crop year the
application for insurance is accepted; or
(ii) For any subsequent crop year, on the sales closing date for
the insured crop in the county for the previous crop year, provided
continuous coverage has been in effect since that date. For example:
If you make application and purchase insurance for corn for the 1996
crop year, prevented planting coverage will begin on the 1996 sales
closing date for corn in the county. If the corn coverage remains in
effect for the 1997 crop year (is not terminated or cancelled during
or after the 1996 crop year, except the policy may have been
cancelled to transfer the policy to a different insurance provider,
if there is no lapse in coverage), prevented planting coverage for
the 1997 crop year began on the 1996 sales closing date.
(4) The acreage to which prevented planting coverage applies
will not exceed the total eligible acreage on all Consolidated Farm
Service Agency (CFSA) Farm Serial Numbers in which you have a share,
adjusted for any reconstitution that may have occurred before the
sales closing date. Eligible acreage for each CFSA Farm Serial
Number is determined as follows:
(i) If you participate in any program administered by the United
States Department of Agriculture that limits the number of acres
that may be planted for the crop year, the acreage eligible for
prevented planting coverage will not exceed the total acreage
permitted to be planted to the insured crop.
(ii) If you do not participate in any program administered by
the United States Department of Agriculture that limits the number
of acres that may be planted, and unless we agree in writing before
the sales closing date, eligible acreage will not exceed the greater
of:
(A) The CFSA base acreage for the insured crop, including acres
that could be flexed from another crop, if applicable;
(B) The number of acres planted to the insured crop during the
previous crop year; or
(C) One hundred percent (100%) of the simple average of the
number of acres planted to the insured crop during the crop years
that you certified to determine your yield.
(iii) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres for which you had adequate
irrigation facilities prior to the insured cause of loss which
prevented you from planting.
(iv) Prevented planting coverage will not be provided for any
acreage:
(A) That does not constitute at least 20 acres or 20 percent
(20%) of the acreage in the unit, whichever is less (Acreage that is
less than 20 acres or 20 percent of the acreage in the unit will be
presumed to have been intended to be planted to the insured crop
planted in the unit, unless you can show that you had the inputs
available before the final planting date to plant and produce
another insured crop on the acreage);
(B) For which the actuarial table does not designate a premium
rate unless a written agreement designates such premium rate;
(C) Used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture;
(D) On which another crop is prevented from planting, if any
crop has already received a prevented planting indemnity, guarantee
or amount of insurance on the same acreage in the same crop year,
unless you provide adequate records of acreage and production
showing that the acreage has a history of double-cropping in each of
the last four years;
(E) On which another crop is prevented from planting, if any
crop was planted and failed, or was planted and harvested (including
hayed or grazed) on the same acreage in the same crop year, unless
you provide adequate records of acreage and production showing that
the acreage has a history of double-cropping in each of the last
four years;
(F) When coverage is provided under the Catastrophic Risk
Endorsement if you plant another crop for harvest on any acreage you
were prevented from planting in the same crop year, even if you have
a history of double cropping. If you have a Catastrophic Risk
Endorsement and receive a prevented planting indemnity, guarantee,
or amount of insurance for a crop and are prevented from planting
another crop on the same acreage, you may only receive the prevented
planting indemnity, guarantee, or amount of insurance for the crop
on which the prevented planting indemnity, guarantee, or amount of
insurance is received;
(G) For which planting history or conservation plans indicate
that the acreage would have remained fallow for crop rotation
purposes.
(v) For the purpose of determining eligible acreage for
prevented planting coverage, acreage for all units will be combined
and be reduced by the number of acres of the insured crop timely
planted and late planted. For example, assume you have 100 acres
eligible for prevented planting coverage in which you have a 100
percent (100%) share. The acreage is located in a single CFSA Farm
Serial Number which you insure as two separate optional units
consisting of 50 acres each. If you planted 60 acres of the insured
crop on one optional unit and 40 acres of the insured crop on the
second optional unit, your prevented planting eligible acreage would
be reduced to zero (i.e.,100 acres eligible for prevented planting
coverage minus 100 acres planted equals zero).
(5) In accordance with the provisions of section 6 (Report of
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must
report by unit any insurable acreage that you were prevented from
planting. This report must be submitted on or before the acreage
reporting date. The total amount of prevented planting and planted
acres cannot exceed the maximum number of acres eligible for
prevented planting coverage. Any acreage you report in excess of the
number of acres eligible for prevented planting coverage, or that
exceeds the number of eligible acres physically located in a unit,
will be deleted from your acreage report.
Done in Washington, D.C., November 3, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-27711 Filed 11-3-95; 4:27 pm]
BILLING CODE 3410-FA-P
