[Federal Register Volume 62, Number 84 (Thursday, May 1, 1997)]
[Proposed Rules]
[Pages 23690-23695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11251]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 437 and 457
Sweet Corn Insurance Regulations; and Common Crop Insurance
Regulations, Processing Sweet Corn 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 processing sweet corn.
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 sweet corn 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 sweet corn crop insurance
regulations to the 1997 and prior crop year.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business June 2, 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: Stephen Hoy, 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 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
The amendments set forth in this proposed rule contain information
collections that require clearance by OMB under the provisions of 44
USC chapter 35.
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Processing Sweet Corn 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 sweet corn that are eligible for Federal
crop insurance.
[[Page 23691]]
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. For the crop insurance
program as a whole, the reporting burden for this collection of
information is estimated to average 16.9 minutes per response for each
of the 3.6 responses from approximately 1,755,015 respondents. The
total annual burden on the public for this information collection is
2,676,932 hours.
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), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order No. 12612
It has been determined under section 6(a) of Executive Order No.
12612, Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on states or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. Under
the current regulations, 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 number of acres and the previous
years production, if adequate records are available to support the
certification, or receive a transitional yield. 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 USC 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. 12988
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
FCIC proposes to add to the Common Crop Insurance Regulations (7
CFR part 457), a new section, 7 CFR Sec. 457.154, Processing Sweet Corn
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 sweet corn found at 7 CFR
part 437 (Sweet Corn Crop Insurance Regulations). FCIC also proposes to
amend 7 CFR part 437 to limit its effect to the 1997 and prior crop
years.
This rule makes minor editorial and format changes to improve the
Sweet Corn Crop Insurance regulations' compatibility with the Common
Crop Insurance Policy. In addition, FCIC is proposing substantive
changes in the provisions for insuring sweet corn as follows:
1. Add the word ``processing'' to the title of this policy to
eliminate confusion with the fresh market sweet corn policy.
2. Section 1--Add definitions for the terms `` base contract
price,'' ``bypassed acreage,'' ``days,'' ``FSA,'' ``final planting
date,'' ``good farming practice,'' ``interplanted,'' ``irrigated
practice,'' ``planted acreage,'' ``practical to replant,''
``processor,'' ``processor contract,'' ``production guarantee (per
acre),'' ``replanting,'' ``timely planted,'' ``ton,'' ``unhusked ear
weight,'' and ``written agreement'' for clarification. The
definition of ``bypassed acreage'' provides that loss because of
bypass will be factored in the Actual Production History as zero
production.
3. Section 2--Describe the guidelines under which basic units
may be divided into optional units to be consistent with most other
crop provisions.
4. Section 3(a)--Specify that the insured may select only one
price election for all the processing sweet corn in the county
insured under the policy, unless the Special Provisions provide
different price elections by type, in which case the producer may
select one price election for each sweet corn type designated in the
Special Provisions.
[[Page 23692]]
The price election the producer chooses for each type must have the
same percentage relationship to the maximum price available.
5. Section 3(b)--Clarify that the insurance guarantee is
expressed as unhusked ear weight.
6. Section 4--Change the contract change date from December 31
to November 30 to allow adequate time for producers to become aware
of contract changes and make informed decisions before the sales
closing date which has been moved up 30 days to comply with the
Federal Crop Insurance Reform Act of 1994.
7. Section 5--Change the cancellation and termination dates of
April 15 to March 15 to coincide with the statutorily required
movement of the sales closing date.
8. Section 6--Require the producer to provide a copy of the
processor contract to the insurance provider on or before the
acreage reporting date to establish liability and insurability
before a loss is likely to occur.
9. Section 7(a)(3)--Specify that the crop insured will be sweet
corn that is grown under a processor contract executed before the
acreage reporting date since only that portion of the crop grown
under a processor contract is marketable.
10. Section 7(a)(4)--Permit consideration for requests for a
written agreement to insure sweet corn that is interplanted with
another crop or planted into an established grass or legume when
this practice would not adversely affect the yield and would permit
coverage of acreage that would otherwise be covered under the
noninsured crop disaster assistance program (NAP).
11. Section 7(b)--Specify that a processor contract under which
the insured is at risk of loss and retains control on the acreage on
which the sweet corn is grown and which provides for delivery of the
sweet corn under certain conditions and at a stipulated price will
be treated as a contract under which the insured has a share.
12. Section 7(c)--Specify the requirements under which a sweet
corn producer who is also a processor may establish an insurable
interest in the insured crop.
13. Section 8--Require that any acreage damaged prior to the
final planting date must be replanted unless the insurance provider
agrees that replanting is not practical. The current policy does not
specify that the damage must occur prior to the final planting date.
Also require that rotation requirements shown in the Special
Provisions be met for acreage to be insured.
14. Section 9(b)--Add provisions for the insurance period to end
when the amount of sweet corn delivered to the processor fulfills
the producer's processor contract. This requirement is consistent
with other crops produced under processor contracts.
15. Section 9(c)--Change the calendar date for the end of the
insurance period for Malheur County, Oregon, all Idaho counties, and
all Iowa counties to September 30 and all Washington and other
Oregon counties to October 20 to recognize extended contracting
periods in those areas.
16. Section 10(a)(1)--Clarify that insurable adverse weather
conditions include, but are not limited to: (1) excessive moisture
that prevents harvesting equipment from entering the field or that
prevents timely operation of harvesting equipment; and (2)
abnormally hot or cold temperatures that cause a large number of
acres to be ready for harvest at the same time when total production
is beyond the normal capacity of the processor to timely harvest or
process.
17. Section 10(a)(3)--Clarify that insect damage as a cause of
loss does not include damage due to insufficient or improper
application of pest control measures.
18. Section 10(a)(4)--Clarify that plant disease as a cause of
loss does not include damage due to insufficient or improper
application of disease control measures.
19. Section 10(b)--Clarify that the insurance provider will not
cover loss of production: (1) on bypassed acreage if the acreage is
bypassed due to the breakdown or non-operation of equipment or
facilities; (2) on bypassed acreage if acreage to be bypassed is
selected based on the availability of a crop insurance payment; (3)
due to sweet corn not being timely harvested, unless the delay in
harvesting is directly due to an insured cause of loss; (4) due to
failure to follow the requirements contained in the processor
contract; and (5) due to damage that occurs to unharvested
production after the producer delivers the production required by
the processor contract.
20. Section 11--Require that the producer give us notice within
3 days of the date harvest should have started on any acreage that
will not be harvested and leave a representative sample of the
unharvested crop for our inspection, or at least 15 days prior to
the beginning of harvest if damage is discovered or immediately if
damage is discovered during harvest.
21. Section 12(a)--Clarify actions to be taken when acceptable
records of production are not provided regarding optional and basic
units to be consistent with other crop provisions.
22. Section 12(c)(1)(i)(E)--Clarify that total production to
count will include bypassed acreage unless adequate evidence is
provided to show the acreage was bypassed for insurable reasons.
23. Section 12(c)(2)--Clarify that the amount of production for
harvested acreage will be determined by dividing the dollar amount
received from the processor for the quality and quantity of the
sweet corn received by the processor by the base contract price per
ton, and production to count of harvested production will be
expressed as unhusked ear weight.
24. Section 12(d)--Clarify determination of production to count
for acreage that is not timely harvested due to an uninsured cause
of loss.
25. Section 13--Clarify that a late planting provision, which
provides a reduced production guarantee on acreage initially planted
after the final planting date, is not available in these crop
provisions. A Late Planting Agreement Option was previously offered
on sweet corn; however, sweet corn must be grown under a processor
contract to be insurable. The processor may specify dates when the
sweet corn is to be planted to maintain a coordinated planting and
harvest schedule for all growers under contract. Therefore, offering
a late planting period may affect the processor's ability to timely
harvest and process the sweet corn.
26. Section 14--Add provisions for providing insurance coverage
by written agreement. FCIC has a long standing policy of permitting
certain modifications of the insurance contracts by written
agreement for some policies. This amendment allows FCIC to tailor
the policy to a specific insured in certain instances. The new
section will cover application for, and duration of, written
agreements.
Good cause is shown to allow 30 days for comments after this rule
is published in the Federal Register. This rule improves processing
sweet corn crop insurance coverage and brings it under the Common Crop
Insurance Policy Basic Provisions for consistency among policies.
Although the contract change date is December 31, 1997, the final rule
must be published by July 7, 1997. Publication is required by this date
to achieve revision and timely distribution of the actuarial documents
thereby allowing the reinsured companies and insureds sufficient time
to implement the new provisions. Therefore, public interest requires
the agency to act immediately to make these provisions available for
the 1998 crop year.
List of Subjects in 7 CFR Parts 437 and 457
Crop insurance, Corn, Reporting and recordkeeping.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby proposes to amend 7 CFR parts 437 and 457
as follows:
PART 437--SWEET CORN CROP INSURANCE REGULATIONS FOR THE 1985
THROUGH 1997 CROP YEARS
1. The authority citation for 7 CFR part 437 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. The part heading is revised to read as set forth above.
3. Subpart heading ``Subpart--Regulations for the 1985 through 1997
Crop Years'' is removed.
3. Section 437.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 437.7 The application and policy.
* * * * *
(d) The application for the 1985 through 1997 crop years is found
at subpart D of part 400-General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Sweet Corn Insurance Policy for
the
[[Page 23693]]
1985 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 457.154 is added to read as follows:
Sec. 457.154 Processing Sweet Corn Crop Insurance Provisions.
The Processing Sweet Corn Crop Insurance Provisions for the 1998
and succeeding crop years are as follows:
FCIC policies:
Department of Argibulture
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate title for insurance provider)
Both FCIC and reinsured policies:
Processing Sweet Corn Crop Provisions
If a conflict exists among the Basic Provisions (Sec. 457.8),
these crop provisions, and the Special Provisions; the Special
Provisions will control these crop provisions and the Basic
Provisions; and these crop provisions will control the Basic
Provisions.
1. Definitions
Base contract price. The price stipulated on the contract
executed between you and the processor without regard to discounts
or incentives that may apply.
Bypassed acreage. Land on which production is ready for harvest
but is not harvested. Bypassed acreage on which an indemnity is
payable will be considered to have a zero yield for Actual
Production History (APH) purposes.
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 sweet corn processor
contract with the processing company and recognized by the
Cooperative State Research, Education, and Extension Service as
compatible with agronomic and weather conditions in the county.
Harvest. The removal of the ears from the stalks for the purpose
of delivery to the processor.
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.
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. Sweet corn 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.
Practical to replant. In lieu of the definition of ``Practical
to replant'' contained in section 1 of the Basic Provisions
(Sec. 457.8), practical to replant is defined as our determination,
after loss or damage to the insured crop, based on factors,
including but not limited to moisture availability, condition of the
field, time to crop maturity, and marketing window, 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 sweet corn for human consumption, that possesses all
licenses and permits for processing sweet corn 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 sweet corn 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 sweet corn, and
to deliver the sweet corn production to the processor;
(b) The processor's commitment to purchase all the production
stated in the contract; and
(c) A base contract price.
Production guarantee (per acre). The number of tons determined
by multiplying the approved APH yield per acre by the coverage level
percentage you elect.
Replanting. Performing the cultural practices necessary to
prepare the land to replace the sweet corn seed and then replacing
the sweet corn 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.
Ton. Two thousand (2,000) pounds avoirdupois.
Unhusked ear weight. Weight of the seed bearing spike of sweet
corn including the membranous or green outer envelope.
Written agreement. A written document that alters designated
terms of this policy in accordance with section 14.
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), (a
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. Basic units may not be divided
into optional units on any basis other than as described in this
section.
(b) 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. This provision may not be
changed by written agreement.
(c) If you do not comply fully with these provisions, we will
combine all optional units that are not in compliance with these
provisions into the basic unit from which they were formed. We will
combine the optional units at any time we discover that you have
failed to comply with these provisions. If failure to comply with
these provisions is determined to be inadvertent, and the optional
units are combined into a basic unit, that portion of the additional
premium paid for the optional units that have been combined will be
refunded to you.
(d) All optional units you selected for the crop year must be
identified on the acreage report for that crop year.
(e) 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) You must have records of marketed production or measurement
of stored production from each optional unit maintained in such a
manner that permits us to verify the production from each optional
unit, or the production from each unit must be kept separate until
loss adjustment is completed by us; and
(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 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
[[Page 23694]]
may be based on irrigated acreage or non-irrigated acreage if both
are located in the same section, section equivalent, or FSA Farm
Serial Number. To qualify as separate irrigated and non-irrigated
optional units, the non-irrigated acreage may not continue into the
irrigated acreage in the same rows or planting pattern. The
irrigated acreage may not extend beyond the point at which the
irrigation system can deliver the quantity of water needed to
produce the yield on which the guarantee is based, except the
corners of a field in which a center-pivot irrigation system is used
will be considered as irrigated acreage if separate acceptable
records of production from the corners are not provided. If the
corners of a field in which a center-pivot irrigation system is used
do not qualify as a separate non-irrigated optional unit, they will
be a part of the unit containing the irrigated acreage. However,
non-irrigated acreage that is not a part of a field in which a
center-pivot irrigation system is used may qualify as a separate
optional unit provided that all requirements of this section are
met.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8):
(a) You may select only one price election for all the
processing sweet corn 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 processing
sweet corn 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
one type, you must also choose 100 percent of the maximum price
election for all other types; and
(b) The insurance guarantee per acre is expressed as tons of
unhusked ears. Any other measured production will be converted to an
unhusked ear weight equivalent.
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 March 15.
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 all
processor contracts 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 sweet corn
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 to be canned or frozen;
(3) That is grown under, and in accordance with, the
requirements of a processor contract executed on or before the
acreage reporting date and not excluded from the processor contract
at any time 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 sweet corn is grown, you are at risk of loss,
and the processor contract provides for delivery of sweet corn under
specified conditions and at a stipulated base contract price per
unit of delivery.
(c) A commercial sweet corn producer who is also a processor may
establish an insurable interest if the following requirements are
met:
(1) The processor must meet the requirements as defined in these
crop provisions;
(2) The Board of Directors or officers of the processor must
have executed 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 processing sweet corn 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):
(a) Any acreage of the insured crop that is 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; and
(b) We will not insure any acreage that does not meet the
rotation requirements contained in the Special Provisions.
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 at the earlier of:
(a) The date the sweet corn:
(1) Was destroyed;
(2) Should have been harvested;
(3) Was abandoned; or
(4) Was harvested;
(b) The date you harvested sufficient production to fulfill your
processor contract;
(c) Final adjustment of a loss; or
(d) Unless otherwise agreed to in writing, the calendar date for
the end of the insurance period in which the sweet corn would
normally be harvested as follows:
(1) September 30 in Malheur County, Oregon, all Idaho counties,
and all Iowa counties;
(2) October 20 in all other Oregon counties, and in all
Washington counties; or
(3) September 20 in all other states.
10. Causes of Loss
In accordance with the provisions of section 12 (Causes of Loss)
of the Basic Provisions (Sec. 457.8):
(a) Insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions, including but not limited to:
(i) Excessive moisture that prevents harvesting equipment from
entering the field or that prevents the timely operation of
harvesting equipment; and
(ii) Abnormally hot or cold temperatures as determined by us
that cause insured acreage to be bypassed because an unexpected
number of acres over a large producing area are ready for harvest at
the same time, and the total production is beyond the normal
capacity of the processor to timely harvest or process;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease on acreage not planted to sweet corn the
previous crop year, 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 due to a cause of
loss referred to in section 10(a) (1) through (7) above that occurs
during the insurance period.
(b) In addition to the causes of loss excluded in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure any loss of production:
(1) On bypassed acreage if the acreage is bypassed due to the
breakdown or non-operation of equipment or facilities;
(2) On bypassed acreage if acreage to be bypassed is selected
based on the availability of a crop insurance payment;
(3) Due to processing sweet corn not being timely harvested
unless such delay in harvesting is solely and directly due to an
insured cause of loss;
(4) Due to your failure to follow the requirements contained in
the processor contract; or
(5) Due to damage that occurs to unharvested production after
you deliver the production required by the processor contract.
11. Duties in the Event of Damage or Loss
In addition to the requirements of section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), you
must give us notice:
(a) Not later than 48 hours after:
(1) Total destruction of the sweet corn on the unit; or
(2) Discontinuance of harvest on a unit.
(b) Within 3 days of the date harvest should have started on any
acreage that will not be harvested and document why the acreage was
bypassed. Failure to provide such information will result in our
determination that the acreage was bypassed due to an uninsured
cause of loss. If the crop will not be harvested and you wish to
destroy
[[Page 23695]]
the crop, you must leave representative samples of the unharvested
crop for our inspection. The samples must be at least 10 feet wide
and extend the entire length of each field in each unit and must not
be destroyed until the earlier of our inspection or 15 days after
notice is given to us; and
(c) At least 15 days prior to the beginning of harvest if you
intend to claim an indemnity on any unit, or immediately if damage
is discovered during harvest, so that we may inspect any damaged
production. If you fail to notify us and such failure results in our
inability to inspect the damaged production, we will consider all
such production to be undamaged and include it as production to
count. You do not have to delay harvest if notification is timely
given.
12. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide separate acceptable production records:
(1) For any optional units, we will combine all optional units
for which such production records were not provided; or
(2) For any basic units, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for the units.
(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 in section 12(b)(1) by the
respective price election, by type if applicable;
(3) Totaling the results in section 12(b)(2);
(4) Multiplying the total production to be counted of each type,
if applicable, (see section 12(c)) by the respective price election;
(5) Totaling the results in section 12(b)(4);
(6) Subtracting the results in section 12(b)(5) from the results
in section 12 (b)(3); and
(7) Multiplying the result in section 12(b)(6) by your share.
(c) The total production to count, specified in tons of unhusked
ear weight, 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) That is put to another use without our consent;
(C) That is damaged solely by uninsured causes;
(D) For which you fail to provide production records that are
acceptable to us; or
(E) That is bypassed unless the acreage was bypassed due to a
cause of loss stated in section 10(a).
(ii) Production lost due to uninsured causes;
(iii) 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.
(2) All harvested sweet corn production from the insurable
acreage. The amount of such production will be determined by
dividing the dollar amount as required by the contract for the
quality and quantity of the sweet corn delivered to the processor by
the base contract price per ton. The total production to count will
be expressed as an unhusked ear weight. Any other measure of
production will be converted to an unhusked ear weight equivalent.
(d) If any acreage is not timely harvested due to an uninsured
cause of loss but is later harvested, the production to count will
be the greater of:
(1) The harvested amount of production with no adjustment for
quality; or
(2) The amount determined by dividing the dollar amount as
required by the contract for the quality and quantity of the sweet
corn delivered to the processor for the production by the base
contract price per ton.
13. Late Planting
Late planting provisions are not applicable to processing sweet
corn.
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, DC, on April 25, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-11251 Filed 4-30-97; 8:45 am]
BILLING CODE 3410-FA-P
