[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Proposed Rules]
[Pages 17103-17107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9008]
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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. 62, No. 68 / Wednesday, April 9, 1997 /
Proposed Rules
[[Page 17103]]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 447 and 457
Popcorn Crop Insurance Regulations; and Common Crop Insurance
Regulations, Popcorn Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes
specific crop provisions for the insurance of popcorn. 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 Popcorn
Crop Insurance Regulations with the Common Crop Insurance Policy for
ease of use and consistency of terms, and to restrict the effect of the
current Popcorn Crop Insurance Regulations to the 1997 and prior crop
years.
DATES: Written comments on this proposed rule will be accepted until
close of business May 9, 1997 and will be considered when the rule is
to be made final.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131.
FOR FURTHER INFORMATION CONTACT: Linda Williams, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, at the Kansas City, MO, address
listed above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order 12866, and therefore,
this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
The amendments set forth in this proposed rule contains information
collection that requires clearance by the Office of Management and
Budget (OMB) under the provisions of 44 U.S.C. chapter 35.
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Popcorn Crop Insurance Provisions.'' The
information to be collected includes a crop insurance application and
an acreage report. Information collected from the application and
acreage report is electronically submitted to FCIC by the reinsured
companies. Potential respondents to this information collection are
producers of popcorn that are eligible for Federal crop insurance.
The information requested is necessary for the reinsured companies
and FCIC to provide insurance and reinsurance, determine eligibility,
determine the correct parties to the agreement or contract, determine
and collect premiums or other monetary amounts, and pay benefits.
All information is reported annually. The reporting burden for this
collection of information is estimated to average 16.9 minutes per
response for each of the 3.6 responses from approximately 1,755,015
respondents. The total annual burden on the public for this information
collection is 2,669,970 hours.
FCIC is requesting comments on the following: (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the proposed collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; and (d) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
gathering technology.
Comments regarding paperwork reduction should be submitted to the
Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
OMB is required to make a decision concerning the collections of
information contained in these proposed regulations between 30 and 60
days after submission to OMB. Therefore, a comment to OMB is best
assured of having full effect if OMB receives it within 30 days of
publication. This does not affect the deadline for the public to
comment on the proposed regulation.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments and the private sector.
This rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for state, local, and tribal
governments or the private sector. Thus, this rule is not subject to
the requirements of sections 202 and 205 of the UMRA.
Executive Order 12612
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.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than larger entities. Under
the current regulations, a producer is required to complete an
application and an 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
[[Page 17104]]
claim for indemnity. The insured also must 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 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 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
The provisions of this rule will not have retroactive effect prior
to the effective date. The provisions of this rule will preempt state
and local laws to the extent such state and local laws are inconsistent
herewith. The administrative appeal provisions 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
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR part 457), a new section, 7 CFR 457.126, Popcorn Crop Insurance
Provisions. The new provisions will be effective for the 1998 and
succeeding crop years. These provisions will replace and supersede the
current provisions for insuring popcorn found at 7 CFR part 447
(Popcorn Crop Insurance Regulations). FCIC also proposes to amend 7 CFR
part 447 to limit its effect to the 1997 and prior crop years. FCIC
will later publish a regulation to remove and reserve 7 CFR part 447.
This rule makes minor editorial and format changes to improve the
Popcorn Crop Insurance Regulations' compatibility with the Common Crop
Insurance Policy. In addition, FCIC is proposing substantive changes in
the provisions for insuring popcorn as follows:
1. Section 1--Add definitions for the terms ``base contract
price,'' ``days,'' ``FSA,'' ``final planting date,'' ``good farming
practices,'' ``interplanted,'' ``irrigated practice,'' ``merchantable
popcorn,'' ``planted acreage,'' ``pound,'' ``practical to replant,''
``processor,'' ``processor contract,'' ``production guarantee,''
``timely planted'' and ``written agreement'' for clarification.
2. Section 3--Clarify that an insured may select only one price
election for all the popcorn in the county insured under the policy,
unless the Special Provisions provide different price elections by
type, in which case the insured may select one price election for each
popcorn type designated in the Special Provisions.
3. Section 4--Change the contract change date to November 30 for
all counties that currently have April 15 cancellation and termination
dates. This change is made to maintain an adequate time period between
this date and the cancellation dates revised to correspond to the
changes in the sales closing date to comply with the Federal Crop
Insurance Reform Act of 1994, for producers to make informed risk
management decisions.
4. Section 5--Change the cancellation and termination dates from
April 15 to January 15 for certain Texas counties. The cancellation and
termination dates for all other Texas counties and all other states are
changed from April 15 to March 15. These changes are made to
standardize the cancellation and termination dates with the sales
closing dates.
5. Section 6--Require the insured to provide a copy of the
processor contract to the insurance provider on or before on the
acreage reporting date to establish liability and insurability before a
loss is likely to occur.
6. Section 7(a)(4)--Permit consideration for requests for a written
agreement to insure popcorn that is interplanted with another crop or
planted into an established grass or legume.
7. Section 7(c)--Specify the requirements under which a popcorn
producer who is also a processor may establish an insurable interest in
the insured crop.
8. Section 8--Clarify that any acreage damaged prior to the final
planting date to the extent that the majority of growers in the area
would normally not further care for the crop must be replanted unless
the insurance provider agrees that it is not practical to replant.
9. Section 9(a)--Add provisions for the insurance period to end
when the popcorn should have been harvested or when enough popcorn is
delivered to fulfill the producer's processor contract. This
requirement is consistent with other crops produced under a processor
contract.
10. Section 12--Require that representative samples of the
unharvested crop must be 10 feet wide and extend the entire length of
each field in the unit and cannot be harvested or destroyed until the
earlier of our inspection or 15 days after harvest is completed.
11. Section 13(c)(1)(iv)--Require the insured to leave intact, and
provide sufficient care for, representative samples when the insured
does not agree with the appraisal on that acreage. Production to count
for such acreage will be determined using the harvested production if
the crop is harvested, or our reappraisal if the crop is not harvested.
12. Section 14--Add provisions for providing insurance coverage by
written agreement. FCIC has a long standing policy of permitting
certain modifications of the insurance contract by written agreement
for some policies. This amendment provides for individual written
agreements consistent with FCIC's usual policy.
List of Subjects in 7 CFR Parts 447 and 457
Crop insurance, Popcorn, Popcorn crop insurance regulations.
Proposed Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 447 and
457, as follows:
PART 447--POPCORN CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 447 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
[[Page 17105]]
2. The subpart heading preceding Section 447.1 is revised to read
as follows:
Subpart--Regulations for the 1987 Through the 1997 Crop Years
3. Section 447.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 447.7 The application and policy.
* * * * *
(d) The application for the 1987 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 Popcorn Insurance Policy for the
1987 through 1997 crop years are as follows:
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
4. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
5. Section 457.126 is added to read as follows:
Sec. 457.126 Popcorn crop insurance provisions.
The Popcorn 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:
Popcorn 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.
Base contract price--The price stipulated on the contract
executed between you and the processor before any adjustments for
quality.
Days--Calendar days.
FSA--The Farm Service Agency, an agency of the United States
Department of Agriculture or a successor agency.
Final planting date--The date contained in the Special
Provisions for the insured crop by which the crop must initially be
planted in order to be insured for the full production guarantee.
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 required by the popcorn processor contract
and recognized by the Cooperative State Research, Education and
Extension Service as compatible with agronomic and weather
conditions in the county.
Harvest--Removing the grain or ear from the stalk either by hand
or by machine.
Interplanted--Acreage on which two or more crops are planted in
a manner that does not permit separate agronomic maintenance or
harvest of the insured crop.
Irrigated practice--A method of producing a crop by which water
is artificially applied during the growing season by appropriate
systems and at the proper times, with the intention of providing the
quantity of water needed to produce at least the yield used to
establish the irrigated production guarantee on the irrigated
acreage planted to the insured crop.
Merchantable popcorn--Popcorn that meets the provisions of the
processor contract.
Planted acreage--Land in which seed has been placed by a machine
appropriate for the insured crop and planting method, at the correct
depth, into a seedbed that has been properly prepared for the
planting method and production practice. Popcorn must initially be
placed in rows far enough apart to permit mechanical cultivation.
Acreage planted in any other manner will not be insurable unless
otherwise provided by the Special Provisions or by written
agreement.
Pound--Sixteen (16) ounces avoirdupois.
Practical to replant--In lieu of the definition of ``Practical
to replant'' contained in section 1 of the Basic Provisions
(Sec. 457.8), practical to replant is defined as our determination,
after loss or damage to the insured crop, based on factors,
including but not limited to moisture availability, marketing
windows, condition of the field, and time to crop maturity, that
replanting the insured crop will allow the crop to attain maturity
prior to the calendar date for the end of the insurance period. It
will not be considered practical to replant unless production from
the replanted acreage can be delivered under the terms of the
processor contract.
Processor--Any business enterprise regularly engaged in
processing popcorn for human consumption, that possesses all
licenses, permits or approved inspections for processing popcorn
required by the state in which it operates, and that possesses
facilities, or has contractual access to such facilities, with
enough equipment to accept and process contracted popcorn within a
reasonable amount of time after harvest.
Processor contract--A written agreement between the producer and
a processor, containing at a minimum:
(a) The producer's commitment to plant and grow popcorn, and to
deliver the popcorn production to the processor;
(b) The processor's commitment to purchase all the production
stated in the contract;
(c) A date, if specified on the processor's contract, by which
the crop must be harvested to be accepted; and
(d) A base contract price.
Production guarantee (per acre)--The number of pounds determined
by multiplying the approved APH yield per acre by the coverage level
percentage you elect.
Replanting--Performing the cultural practices necessary to
replace the popcorn seed and then replacing the popcorn seed in the
insured acreage with the expectation of growing a successful crop.
Timely planted--Planted on or before the final planting date
designated in the Special Provisions for the insured crop in the
county.
Written agreement--A written document that alters designated
terms of a policy in accordance with section 15.
2. Unit Division.
(a) Unless limited by the Special Provisions, a unit as defined
in section 1 (Definitions) of the Basic Provisions (Sec. 457.8),
(basic unit) may be divided into optional units, if for each
optional unit you meet all the conditions of this section or if a
written agreement to such division exists.
(b) Basic units may not be divided into optional units on any
basis including, but not limited to, production practice, type,
variety, and planting period, other than as described in this
section.
(c) Optional units will be available only if the processor
contract stipulates the number of acres that are under contract and
not a specific amount of production.
(d) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined into a basic unit, that portion of the premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(e) All optional units must be identified on the acreage report
for each crop year.
(f) The following requirements must be met for each optional
unit:
(1) You must have records, which can be independently verified,
of planted acreage and production for each optional unit for at
least the last crop year used to determine your production
guarantee;
(2) You must plant the crop in a manner that results in a clear
and discernable break in the planting pattern at the boundaries of
each optional unit;
(3) For each crop year, records of marketed production or
measurement of stored production from each optional unit must be
maintained in such a manner that permits us to verify the production
from each optional unit, or the production from each unit must be
kept separate until loss adjustment is completed by us; and
(4) Each optional unit must meet one or more of the following
criteria, as applicable:
(i) Optional Units by Section, Section Equivalent, or FSA Farm
Serial Number: Optional units may be established if each optional
unit is located in a separate legally identified section. In the
absence of sections, we may consider parcels of land legally
identified by other methods of measure including, but not limited to
Spanish grants, railroad surveys, leagues, labors, or Virginia
Military Lands, as the equivalent of sections
[[Page 17106]]
for unit purposes. In areas that have not been surveyed using the
systems identified above, or another system approved by us, or in
areas where such systems exist but boundaries are not readily
discernable, each optional unit must be located in a separate farm
identified by a single FSA Farm Serial Number.
(ii) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to, or instead of, establishing
optional units by section, section equivalent, or FSA Farm Serial
Number, optional units may be based on irrigated acreage and non-
irrigated acreage if both are located in the same section, section
equivalent, or FSA Farm Serial Number. To qualify as separate
irrigated and non-irrigated optional units, the non-irrigated
acreage may not continue into the irrigated acreage in the same rows
or planting pattern. The irrigated acreage may not extend beyond the
point at which the irrigation system can deliver the quantity of
water needed to produce the yield on which the guarantee is based,
except the corners of a field in which a center-pivot irrigation
system is used will be considered as irrigated acreage if separate
acceptable records of production from the corners are not provided.
If the corners of a field in which a center-pivot irrigation system
is used do not qualify as a separate non-irrigated optional unit,
they will be a part of the unit containing the irrigated acreage.
Non-irrigated acreage that is not a part of a field in which a
center-pivot irrigation system is used may qualify as a separate
optional unit provided that all requirements of this section are
met.
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8), you may select only one price
election for all the popcorn 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
popcorn 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 (100%) of the maximum price
election for one type, you must also choose 100 percent (100%) of
the maximum price election for all other types.
4. Contract Changes.
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is November 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:
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Cancellation and
State and county termination dates
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Val Verde, Edwards, Kerr, Kendall, Bexar, Jan. 15.
Wilson, Karnes, Goliad, Victoria, and
Jackson Counties Texas, and all Texas
counties lying south thereof.
All other Texas counties and all other Mar. 15.
states.
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6. Report of Acreage.
In addition to the provisions of section 6 (Report of Acreage)
of the Basic Provisions (Sec. 457.8), you must provide a copy of the
processor contract to us on or before the acreage reporting date.
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 popcorn 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 popcorn;
(3) That is grown under, and in accordance with the requirements
of, a processor contract executed before the acreage reporting date
and is not excluded from the processor contract at anytime during
the crop year; and
(4) That is not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop; or
(ii) Planted into an established grass or legume.
(b) You will be considered to have a share in the insured crop
if, under the processor contract, you retain possession of the
acreage on which the popcorn is grown, and the processor contract
provides for delivery of popcorn under specified conditions and at a
stipulated base contract price, and you retain an insurable interest
in the crop.
(c) A popcorn producer who is also a processor may be able to
establish an insurable interest if the following requirements are
met:
(1) The processor must meet the requirements as defined in these
crop provisions and have an insurable interest in the popcorn crop;
(2) The Board of Directors or officers of the processor must
have instituted a resolution that sets forth essentially the same
terms as a processor contract. Such resolution will be considered a
contract under the terms of the popcorn crop insurance policy; and
(3) Our inspection of the processing facilities determines that
they satisfy the definition of a processor contained in these crop
provisions.
8. Insurable Acreage.
In addition to the provisions of section 9 (Insurable Acreage)
of the Basic Provisions (Sec. 457.8), any acreage of the insured
crop damaged before the final planting date, to the extent that the
majority of growers in the area would normally not further care for
the crop, must be replanted unless we agree that it is not practical
to replant.
9. Insurance Period.
In lieu of the provisions contained in section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), regarding the end of
the insurance period, insurance ceases on each unit or part of a
unit at the earliest of:
(a) The date the popcorn:
(1) Was destroyed;
(2) Should have been harvested;
(3) Was abandoned; or
(4) Was harvested;
(b) The date you have harvested sufficient production to fulfill
your processor contract;
(c) Final adjustment of a loss; or
(d) December 10 immediately following planting.
10. Causes of Loss.
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Adverse weather conditions;
(2) Fire;
(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 cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we do not
insure against any loss of production due to:
(1) Damage resulting from frost or freeze after the date
designated by the Special Provisions;
(2) Failure to follow the requirements contained in the
processor contract; or
(3) Damage that occurs to unharvested production after you
deliver the production required by the processor contract.
11. Replanting Payment.
(a) In accordance with section 13 (Replanting Payment) of the
Basic Provisions (Sec. 457.8), a replanting payment is allowed if
the crop is damaged by an insurable cause of loss to the extent that
the remaining stand will not produce at least 90 percent (90%) of
the production guarantee for the acreage and it is practical to
replant.
(b) The maximum amount of the replanting payment per acre will
be the lesser of 20 percent (20%) of the production guarantee or 150
pounds, multiplied by your price election, multiplied by your
insured share.
(c) When popcorn is replanted using a practice that is
uninsurable as an original planting, the liability for the unit will
be reduced by the amount of the replanting payment. The premium
amount will not be reduced.
12. Duties In The Event of Damage or Loss.
In accordance with the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), the
representative samples of the unharvested crop must be at least 10
feet wide and extend the entire length of each field in the unit.
The samples must not be destroyed until the earlier of our
inspection or 15 days after harvest of the balance of the unit is
completed.
[[Page 17107]]
13. Settlement of Claim.
(a) We will determine your loss on a unit basis. In the event
you are unable to provide acceptable production records:
(1) For any optional unit, we will combine all optional units
for which such production records were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage by its respective production
guarantee, by type if applicable;
(2) Multiplying each result of section 13(b)(1) by the
respective price election, by type if applicable;
(3) Totaling the results of section 13(b)(2);
(4) Multiplying the total production to be counted of each type,
if applicable, (see subsection 13(c)) by the respective price
election;
(5) Totaling the results of section 13(b)(4);
(6) Subtracting the result of section 13(b)(5) from the result
in section 13(b)(3); and
(7) Multiplying the result of section 13(b)(6) by your share.
(c) The total production to count (in pounds) from all insurable
acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) Damaged solely by uninsured causes; or
(D) For which you fail to provide production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested production may
be adjusted for quality deficiencies and excess moisture in
accordance with section 13(d));
(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:
(A) If you do not elect to continue to care for the crop, we may
give you consent to put the acreage to another use if you agree to
leave intact, and provide sufficient care for, representative
samples of the crop in locations acceptable to us, (The amount of
production to count for such acreage will be based on the harvested
production or appraisals from the samples at the time harvest should
have occurred. If you do not leave the required samples intact, or
fail to provide sufficient care for the samples, our appraisal made
prior to giving you consent to put the acreage to another use will
be used to determine the amount of production to count); or
(B) If you elect to continue to care for the crop, the amount of
production to count for the acreage will be the harvested
production, or our reappraisal if additional damage occurs and the
crop is not harvested; and
(2) All harvested production from the insurable acreage.
(3) Any production from yellow or white dent corn will be
counted as popcorn on a weight basis and any production harvested
from plants growing in the insured crop may be counted as popcorn
production on a weight basis.
(4) Any ear production for which we cannot determine a shelling
factor will be considered to have an 80 percent (80%) shelling
factor.
(d) Mature popcorn may be adjusted for excess moisture and
quality deficiencies. If moisture adjustment is applicable, it will
be made prior to any adjustment for quality.
(1) Production will be reduced by 0.12 percent for each 0.1
percentage point for moisture in excess of 15 percent (15%). We may
obtain samples of the production to determine the moisture content.
(2) Popcorn production will be eligible for quality adjustment
if, due to an insurable cause of loss that occurs within the
insurance period, it is not merchantable popcorn and is rejected by
the processor. The production will be adjusted by:
(i) Dividing the value per pound of the damaged popcorn by the
base contract price per pound for undamaged popcorn; and
(ii) Multiplying the result by the number of pounds of such
popcorn.
14. Written Agreements.
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
14(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
variety, the guarantee, premium rate, and price election;
(d) Each written agreement will only be valid for one year (If
the written agreement is not specifically renewed the following
year, insurance coverage for subsequent crop years will be in
accordance with the printed policy); and
(e) An application for a written agreement submitted after the
sales closing date may be approved if, after a physical inspection
of the acreage, it is determined that no loss has occurred and the
crop is insurable in accordance with the policy and written
agreement provisions.
Signed in Washington, D.C., on April 2, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-9008 Filed 4-8-97; 8:45 am]
BILLING CODE 3410-FA-P
