[Federal Register Volume 62, Number 58 (Wednesday, March 26, 1997)]
[Rules and Regulations]
[Pages 14283-14287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7655]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 /
Rules and Regulations
[[Page 14283]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 415 and 457
General Crop Insurance Regulations; Forage Production Crop
Insurance Regulations, and Common Crop Insurance Regulations; Forage
Production Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
specific crop provisions for the insurance of forage production. The
provisions will be used in conjunction with the Common Crop Insurance
Policy Basic Provisions, which contain standard terms and conditions
common to most crops. The intended effect of this action is to provide
policy changes to better meet the needs of the insured, include the
current forage production crop insurance regulations with the Common
Crop Insurance Policy for ease of use and consistency of terms, add an
optional forage production winter coverage endorsement, and to restrict
the effect of the current forage production crop insurance regulations
to the 1997 and prior crop years.
EFFECTIVE DATE: April 25, 1997.
FOR FURTHER INFORMATION CONTACT: Richard Brayton, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, United States Department of
Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816)
926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order No. 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order No. 12866, and,
therefore, this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Following publication of the proposed rule, the public was afforded
60 days to submit written comments, data, and opinions on information
collection requirements previously approved by OMB under OMB control
number 0563-0003 through September 30, 1998. No public comments were
received.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on States or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. The effect of this regulation on small
entities will be no greater than on larger entities. Under the current
regulations, a producer is required to complete an application and
acreage report. If the crop is damaged or destroyed, the insured is
required to give notice of loss and provide the necessary information
to complete a claim for indemnity.
The insured must also annually certify to the previous years
production if adequate records are available to support the
certification. The producer must maintain the production records to
support the certified information for at least three years. This
regulation does not alter those requirements.
The amount of work required of the insurance companies delivering
and servicing these policies will not increase significantly from the
amount of work currently required. This rule does not have any greater
or lesser impact on the producer. Therefore, this action is determined
to be exempt from the provisions of the Regulatory Flexibility Act (5
U.S.C. 605), and no Regulatory Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order No. 12372
This program is not subject to the provisions of Executive Order
No. 12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order No. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. The provisions of this rule will
not have a retroactive effect prior to the effective date. The
provisions of this rule will preempt State and local laws to the extent
such State and local laws are inconsistent herewith. The administrative
appeal provisions published at 7 CFR part 11 must be exhausted before
any action for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
On Friday, September 13, 1996, FCIC published a proposed rule in
the Federal Register at 61 FR 48416-48420
[[Page 14284]]
to add to the Common Crop Insurance Regulations (7 CFR part 457), two
new sections: 7 CFR 457.117, Forage Production Crop Insurance
Provisions; and 457.127, Forage Production Winter Coverage Endorsement.
The new provisions will be effective for the 1998 and succeeding crop
years. These provisions will replace and supersede the current
provisions for insuring forage production found at 7 CFR part 415
(Forage Production Crop Insurance Regulations). FCIC also amends 7 CFR
part 415 to limit its effect to the 1997 and prior crop years.
Following publication of the proposed rule, the public was afforded
60 days to submit written comments, data, and opinions. A total of 19
comments were received from the crop insurance industry and FCIC. The
comments received, and FCIC's responses, are as follows:
Comment: A representative of FCIC and the crop insurance industry
questioned the definition of ``Air-dry forage'', which references
eighteen percent moisture as the basis for converting forage to an air-
dry equivalent. The commenters recommended that this adjustment should
be based on thirteen percent moisture as specified in the current loss
adjustment procedure.
Response: FCIC agrees with the comments and has amended the
provisions accordingly.
Comment: A representative of FCIC recommended changing the
definition of ``Forage'' to allow insurance coverage for non-grass
forage species other than alfalfa and red clover (e.g., birdsfoot
trefoil).
Response: FCIC agrees with the comment and has amended the
definition to allow insurance coverage for other species listed in the
Actuarial Table.
Comment: The crop insurance industry recommended adding the words
``and quality'' after the words ``providing the quantity'' in the
definition of ``Irrigated practice.''
Response: FCIC agrees water quality is an important issue. However,
since no standards or procedures have been developed to measure water
quality for insurance purposes, quality cannot be included in the
definition. Therefore, no change has been made.
Comment: The crop insurance industry recommended that section 3
``Insurance Guarantees, Coverage Levels, and Prices,'' be changed to
read, ``* * * select only one price percentage * * *''. The commenter
stated this change would shorten the provision because language
regarding varieties having different maximum prices would no longer be
necessary.
Response: The methods used to select price elections vary between
insurance providers. While some require selection of a percentage,
others require selection of a specific dollar amount. The suggested
change will not work in all circumstances. Therefore, no change has
been made.
Comment: A representative of FCIC and the crop insurance industry
stated that section 6 ``Report of Acreage'' should not require separate
acreage reports for acreage insured under the Forage Production Winter
Coverage Endorsement and for all other insurable forage acreage. The
commenter believes that only one acreage report should be required.
Response: Fall planted acreage is eligible for coverage under the
Forage Production Winter Coverage Endorsement the first and subsequent
crop years following year of establishment. Insurance attaches in the
fall for forage acreage insured under the Forage Production Winter
Coverage Endorsement and in the spring for all other forage acreage
that is not eligible for coverage under the endorsement. Therefore,
separate fall and spring acreage reports are necessary to timely
determine the liability and premium when insurance attaches. Therefore,
no change has been made.
Comment: The crop insurance industry raised concern with the
provision contained in section 7(a)(2) that requires the forage crop be
planted for harvest as livestock feed in order for coverage to attach.
The commenters questioned the insurability of forage being used for a
purpose other than livestock feed. For example, a new biomass plant
utilizes a portion of the forage to burn for electrical energy
production in addition to producing livestock feed. Producers may
contract part of their forage to be burned and use the remainder of
production for livestock feed. They questioned whether the acreage
contracted to be burned would be considered insurable and how APH and
loss adjustment procedure would be affected.
Response: Any forage planted for harvest other than for livestock
feed is not insurable. No procedures or provisions have been developed
to provide coverage for forage intended to be harvested as other than
livestock feed. FCIC will consider this issue for future use.
Therefore, no change has been made.
Comment: The crop insurance industry questioned the provisions
contained in section 7(a)(3) ``Insured Crop'' regarding the
insurability of fall seeded forage. The commenters stated that, in some
areas, it is common for fall seeded forage to establish a better stand
than forage seeded prior to July 1 of the same year. They asked if such
cases could be insured by written agreement (following a favorable crop
inspection) the next year (currently the ``year of establishment'' by
definition) instead of having to wait until the following year.
Response: The forage production crop insurance program is designed
to provide coverage the year following the year the forage stand is
established. In general, forage planted after June 30 takes longer to
establish an acceptable stand than forage planted prior to June 30.
Currently there are no procedures in place to evaluate the quality or
adequacy of the stand during the year of establishment to determine
insurability of the stand. Therefore, no change has been made.
Comment: The crop insurance industry questioned section 7(b)(3)
``Insured Crop'', why the ability to insure an overage stand of forage
by written agreement is eliminated. The commenter stated that many
overage fields have the ability to produce in excess of the approved
APH yield and that not all producers keep separate records of the
overage stands, which will be a problem if the overage stands are no
longer insurable. The commenter suggested providing an option to insure
all forage, including overage acreage, with a premium surcharge or a
reduced yield based on a factor multiplied by the average APH yield.
Response: Research indicates that overage forage stand density
decreases with time. As stand density decreases forage production
decreases significantly. The Special Provisions will specify at what
age the forage stand is no longer eligible for insurance coverage. FCIC
agrees that the concept of insuring overage stands with a premium
surcharge or reduced yield should be studied to determine if premium
surcharges or factors to reduce the APH yield can be developed.
Therefore, no change has been made.
Comment: The crop insurance industry recommended that section 12(d)
``Written Agreements,'' should not state that written agreements are
valid for only one year (perhaps refer to the date specified in the
agreement instead). The commenter recommended that written agreements
should be continuous, unless there are significant changes in the
farming operation.
Response: Written agreements are intended to change policy terms or
permit insurance in unusual situations where such changes will not
increase risk. If such practices continue year to
[[Page 14285]]
year, they should be incorporated into the policy or Special
Provisions. It is important to keep non-uniform exceptions to the
minimum and to ensure that the insured is well aware of the specific
terms of the policy. Therefore, no change has been made.
Comment: A representative of FCIC questioned the addition of the
Forage Production Winter Coverage Endorsement, stating that in areas
with little or no winter damage risk, it increases the complexity of
the program by requiring further explanation to producers, separate
rates, acreage reports and dates, which has no true benefit to
producers. The commenter stated that Risk Management Agency should be
putting considerable efforts into developing a program that truly meets
producers needs (i.e. quality adjustment, etc.).
Response: The current regulations allow winter coverage as part of
the basic policy, which affects the premium rates for all insureds even
though not all insureds use this coverage. This endorsement will allow
winter protection for only insureds who elect the winter coverage and
only those electing the endorsement will pay premium for the winter
coverage. FCIC agrees that the concept of developing a program which
fits all producer needs, such as quality adjustment, etc., should be
studied to determine if procedures for other program improvements can
be developed. Therefore, no change has been made.
Comment: The crop insurance industry stated that in many states the
acreage of forage is very small, resulting in small premiums and
expensive administration costs. Producers who choose not to purchase
the winter endorsement will have even smaller premiums, making the
policy less attractive to deliver. The commenter suggested that FCIC
consider offering a forage Group Risk Plan (GRP) program in all states
and counties, which has been suggested by the crop insurance industry
and FCIC simplification work groups.
Response: The GRP forage program is currently offered in a few
selected states and counties. Expanding the GRP forage program to all
states and counties is under consideration. However, no decision has
been rendered at this time. If such expansion occurs, the forage
production producer will have the option to be insured under the GRP
plan or the current forage production crop provisions. Therefore, no
change has been made.
Comment: The crop insurance industry stated that most forage
production policyholders purchased the insurance because of the winter
coverage. They recommended that insureds be allowed to exclude winter
coverage in return for a reduced premium rate.
Response: The current regulations allow winter coverage as part of
the basic policy, which affects the premium rates for all persons who
insure forage production. Now, only those producers who elect the
Forage Production Winter Coverage Endorsement will have to pay the
premium for such coverage. Therefore, no change has been made.
Comment: The crop insurance industry expressed concern with the
extra work and expense that would be required to have winter coverage
begin in the fall. The commenter stated that inspections should be
required in the spring because winter inspections are difficult if
there is snow on the ground.
Response: Crop inspections for fall planted forage must be made in
the fall if the winter coverage endorsement is elected to ensure that
such acreage is insurable before insurance attaches. Therefore, no
change has been made.
List of Subjects in 7 CFR Parts 415 and 457
Crop insurance, Forage production crop insurance regulations,
Forage production.
Final Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby amends 7 CFR parts 415 and 457
effective for the 1998 and succeeding crop years, to read as follows:
PART 415--FORAGE PRODUCTION CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 415 is revised to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. The subpart heading preceding Sec. 415.1 is revised to read as
follows:
Subpart--Regulations for the 1986 Through 1997 Crop Years
3. Section 415.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 415.7 The application and policy.
* * * * *
(d) The application for the 1986 and succeeding crop years is found
at subpart D of part 400, General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Forage Production Insurance
Policy for the 1986 through 1997 crop years are as follows:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
4. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
5. Sections 457.117 and 457.127 are added to read as follows:
Sec. 457.117 Forage production crop insurance regulations.
The Forage Production Crop Insurance Provisions for the 1998 and
succeeding crop years are as follows:
FCIC policies:
Department of Agriculture
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Forage Production Crop Insurance Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these Crop Provisions, and the Special Provisions; the Special
Provisions will control these Crop Provisions and the Basic
Provisions; and these Crop Provisions will control the Basic
Provisions.
1. Definitions.
Adequate stand--A population of live forage plants that equals
or exceeds the minimum required number of plants per square foot as
shown in the Special Provisions.
Air-dry forage--Forage that has dried in windrows by natural
means to less than 13 percent moisture before being put into stacks
or bales.
Crop year--The period from the date insurance attaches until
harvest is normally completed, which is designated by the calendar
year in which the majority of the forage is normally harvested.
Cutting--Severance of the forage plant from the land for the
purpose of livestock feed.
Days--Calendar days.
Fall planted--A forage crop planted after June 30.
Forage--Planted perennial alfalfa, perennial red clover,
perennial grasses, or a mixture thereof, or other species as shown
in the Actuarial Table.
Good farming practices--The cultural practices generally in use
in the county for the crop to make normal progress toward maturity
and produce at least the yield used to determine the production
guarantee, and are those recognized by the Cooperative State
Research, Education, and Extension Service as compatible with
agronomic and weather conditions in the county.
Harvest--Removal of forage from the windrow or field. Grazing
will not be considered harvested.
Irrigated practice--A method of producing a crop by which water
is artificially applied during the growing season by appropriate
systems and at the proper times, with the intention of providing the
quantity of water needed to produce at least the yield used to
[[Page 14286]]
establish the irrigated production guarantee on the irrigated
acreage planted to the insured crop.
Production guarantee (per acre)--The number of tons determined
by multiplying the approved APH yield per acre times the coverage
level percentage you elect.
Spring planted--A forage crop planted before July 1.
Ton--Two thousand (2,000) pounds avoirdupois.
Written agreement--A written document that alters designated
terms of this policy in accordance with section 12.
Year of establishment--The period between seeding and when the
forage crop has developed an adequate stand. Insurance during the
year of establishment may be available under the forage seeding
policy. Insurance under this policy does not attach until after the
year of establishment. The year of establishment is determined by
the date of seeding. The year of establishment for spring planted
forage is designated by the calendar year in which seeding occurred.
The year of establishment for fall planted forage is designated by
the calendar year after the year in which the crop was planted.
2. Unit Division.
Optional units are not available for forage production. See the
definition of unit contained in section 1 (Definitions) of the Basic
Provisions (Sec. 457.8).
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8):
(a) You may only select one price election for all the forage in
the county insured under this policy unless the Special Provisions
provide different price elections by type, in which case you may
select one price election for each forage type designated in the
Special Provisions. The price elections you choose for each type
must have the same percentage relationship to the maximum price
offered by us for each type. For example, if you choose 100 percent
of the maximum price election for a specific type, you must also
choose 100 percent of the maximum price election for all other
types.
(b) You must report the total production harvested from
insurable acreage for all cuttings for each unit by the production
reporting date.
(c) Separate guarantees will be determined by forage type, as
applicable.
4. Contract Changes.
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is June 30
preceding the cancellation date.
5. Cancellation and Termination Dates.
In accordance with section 2 (Life of Policy, Cancellation, and
Termination) of the Basic Provisions (Sec. 457.8), the cancellation
and termination dates are September 30.
6. Report of Acreage.
In addition to section 6 of the Basic Provisions (Sec. 457.8),
you must submit separate acreage reports for acreage insured under
the Forage Production Winter Coverage Endorsement and for all other
insurable forage acreage.
7. Insured Crop .
(a) In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the forage in
the county for which a premium rate is provided by the actuarial
table:
(1) In which you have a share;
(2) That is planted for harvest as livestock feed; and
(3) That is grown after the year of establishment.
(b) In addition to the crop listed as not insured in section 8
(Insured Crop) of the Basic Provisions (Sec. 457.8), we will not
insure any forage that:
(1) Does not have an adequate stand at the beginning of the
insurance period;
(2) Is grown with a non-forage crop; or
(3) Exceeds the age limitations for forage stands contained in
the Special Provisions.
8. Insurance Period.
In lieu of the provisions of section 11 (Insurance Period) of
the Basic Provisions (Sec. 457.8):
(a) Insurance attaches on acreage with an adequate stand on the
later of the date we accept your application or the applicable
calendar dates listed below:
(1) For the first and subsequent calendar years following the
year of establishment, for acreage not insured under the Forage
Production Winter Coverage Endorsement for:
(i) California--February 1;
(ii) Colorado, Idaho, Nebraska, Nevada, Oregon, Utah, and
Washington--April 15;
(iii) Iowa, Minnesota, Montana, New Hampshire, New York, North
Dakota, Pennsylvania, Wisconsin, Wyoming, and all other states--May
22;
(2) The calendar date specified in the Forage Production Winter
Coverage Endorsement for acreage insured under such endorsement.
(b) Insurance ends at the earliest of:
(1) Total destruction of the forage crop;
(2) Removal from the windrow or the field for each cutting;
(3) Final adjustment of a loss;
(4) The date grazing commences on the forage crop;
(5) Abandonment of the forage crop; or
(6) The following dates of the crop year:
(i) All states except California--October 15;
(ii) California--December 31.
(c) In order to obtain year-round coverage for a calendar year,
you must purchase the Forage Production Winter Coverage Endorsement
(Sec. 457.127).
9. Causes of Loss.
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if caused by an
insured peril that occurs during the insurance period.
(b) In addition to the causes of loss not covered in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure against damage that occurs after removal from the windrow.
10. Duties in the Event of Damage or Loss.
In addition to your duties contained in section 14 (Duties in
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8),
if you discover any insured forage is damaged, or if you intend to
claim an indemnity on any unit, you must give notice:
(a) Of probable loss at least 15 days before the beginning of
any cutting or immediately if probable loss is discovered after
cutting has begun; and
(b) At least 5 days before grazing of insured forage begins.
Such notice must include the number of acres harvested and tons
produced from each unit.
11. Settlement of Claim.
(a) We will determine your loss on a unit basis. In the event
you are unable to provide production records for any unit, we will
allocate any commingled production to such units in proportion to
our liability on the harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage for each type, by its
respective production guarantee;
(2) Multiplying each result in section 11(b)(1) by the
respective price election you selected;
(3) Totaling the results of each crop type in section 11(b)(2);
(4) Multiplying the total production to be counted of each type,
if applicable, (see section 11(c)) by the respective price election
you selected;
(5) Totaling the results of each crop type in section 11(b)(4);
(6) Subtracting the result in section 11(b)(5) from the result
in section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
(c) The total production to count (in tons) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee per acre for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) Damaged solely by uninsured causes; or
(D) For which you fail to provide production records that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production;
(iv) Potential production on insured acreage that you intend to
put to another use or abandon, if you and we agree on the appraised
amount of production. Upon such agreement, the insurance period for
that acreage will end when you put the acreage to another use or
abandon the crop. If agreement on the appraised amount of production
is not reached and:
(A) You do not elect to continue to care for the crop, we may
give you consent to put the acreage to another use if you agree to
leave
[[Page 14287]]
intact, and provide sufficient care for, representative samples of
the crop in locations acceptable to us (The amount of production to
count for such acreage will be based on the harvested production or
appraisals from the samples at the time harvest should have
occurred. If you do not leave the required samples intact, or fail
to provide sufficient care for the samples, our appraisal made prior
to giving you consent to put the acreage to another use will be used
to determine the amount of production to count); or
(B) You elect to continue to care for the crop, the amount of
production to count for the acreage will be the harvested
production, or our reappraisal if additional damage occurs and the
crop is not harvested; and
(2) All harvested production from the insurable acreage.
(d) When forage is harvested as other than air-dry forage, the
production to count will be adjusted to the equivalent of air-dry
forage.
(e) Any harvested production from plants growing in the forage
will be counted as forage on a weight basis.
(f) In addition to the provisions of section 15 (Production
Included in Determining Indemnities) of the Basic Provisions
(Sec. 457.8), we may determine the amount of production of any
unharvested forage on the basis of our field appraisals conducted
after the normal time for each cutting for the area.
12. Written Agreements.
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
12(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, the guarantee, premium rate, and price election;
(d) Each written agreement will only be valid for one year (If
the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
* * * * *
Sec. 457.127 Forage Production Winter Coverage Endorsement.
The provisions of the Forage Production Winter Coverage Endorsement
for the 1998 and succeeding crop years are as follows:
Department of Agriculture
Federal Crop Insurance Corporation
Forage Production Winter Coverage Endorsement
In return for payment of the additional premium designated in
the actuarial table, the Common Crop Insurance Policy Basic
Provisions (Sec. 457.8) and the Forage Production Crop Insurance
Provisions (Sec. 457.117) are amended to incorporate the following
terms and conditions:
(a) For this Endorsement to be effective, you must have the
Common Crop Insurance Policy Basic Provisions (Sec. 457.8) and the
Forage Production Crop Insurance Provisions (Sec. 457.117) in force
and you must comply with all terms and conditions contained therein.
(b) This Endorsement is not available for forage crops insured
under a Catastrophic Risk Protection Endorsement.
(c) You must elect this Endorsement on your application or on a
form approved by us, for coverage under this Endorsement, on or
before the sales closing date specified in the Special Provisions
for the crop year in which you wish to insure your forage under this
Endorsement.
(d) This Endorsement is available for the following acreage in
all counties for which the actuarial table designates forage
production premium rates:
(1) Fall planted acreage, for the first and subsequent crop
years following the year of establishment; and
(2) Spring planted acreage, for the second and subsequent crop
years following the year of establishment.
(e) Under this Endorsement, the insurance period will be as
follows:
(1) Insurance will attach on acreage with an adequate stand on
the later of the date we accept your application or the applicable
calendar dates following the end of the insurance period for the
previous crop year as listed below:
(i) For all states except California--October 16;
(ii) For California--January 1;
(2) Insurance will end on the earliest of:
(i) Total destruction of the forage crop;
(ii) Removal from the windrow or the field for each cutting;
(iii) Final adjustment of the loss;
(iv) Abandonment of the forage crop;
(v) The date grazing commences on the forage crop; or
(vi) The following dates of the crop year:
(A) All states except California--October 15;
(B) California--December 31.
(f) This is a continuous Endorsement and it will remain in
effect for as long as your forage production policy remains in
effect or you cancel this coverage in accordance with paragraph (g).
(g) This Endorsement may be canceled by either you or us for any
succeeding crop year by giving written notice on or before the
cancellation date preceding the crop year for which the cancellation
of this Endorsement is to be effective.
Signed in Washington, D.C., on March 19, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-7655 Filed 3-25-97; 8:45 am]
BILLING CODE 3410-FA-P
