[Federal Register Volume 62, Number 84 (Thursday, May 1, 1997)]
[Proposed Rules]
[Pages 23680-23685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11255]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 416 and 457
Pea Crop Insurance Regulations; and Common Crop Insurance
Regulations, Green Pea 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 green peas. 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, separate green
peas and dry peas into separate crop insurance provisions, include the
current pea 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 pea crop insurance regulations to the 1997 and
prior crop years.
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: Louise Narber, 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
U.S.C. chapter 35.
The title of this information collection is ``Catastrophic Risk
Protection Plan and Related Requirements including, Common Crop
Insurance Regulations; Green Pea 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 green peas 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. 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, DC 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.
[[Page 23681]]
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 3 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. 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 457.137, Green Pea Crop Insurance
Provisions. The new provisions will be effective for the 1998 and
succeeding crop years. These provisions will replace and supercede the
current provisions for insuring green peas found at 7 CFR part 416 (Pea
Crop Insurance Regulations). FCIC also proposes to amend 7 CFR part 416
to limit its effect to the 1997 and prior crop years.
This rule makes minor editorial and format changes to improve the
Pea Crop Insurance Regulations' compatibility with the Common Crop
Insurance Policy. In addition, FCIC is proposing substantive changes in
the provisions for insuring green peas as follows:
1. Provisions were added to make pod type peas insurable if
authorized in the Special Provisions.
2. Section 1--Add definitions for ``base contract price,''
``bypassed acreage,'' ``days,'' ``dry peas,'' ``FSA,'' ``final planting
date,'' ``good farming practices,'' ``green pea,'' ``interplanted,''
``irrigated practice,'' ``nurse crop (companion crop),'' ``planted
acreage,'' ``pod type,'' ``practical to replant,'' ``price election,''
``processor,'' ``processor contract,'' ``production guarantee (per
acre),'' ``replanting,'' ``shell type,'' ``timely planted,'' 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. Also revise the
definitions for ``combining,'' ``harvest,'' and ``peas'' for
clarification.
3. Section 2--Eliminate unit division by green pea type to remove
the inequity between regions and producers. Also, shell peas and pod
peas will qualify for separate basic units if specified in the Special
Provisions.
4. Section 3--Specify that the insured may select only one price
election for all the green peas 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
green pea type designated in the Special Provisions. The price election
the producer chooses for each type must have the same percentage
relationship to the maximum price available. Also, add a provision
requiring shell type peas to be weighed after the peas are shelled for
the purpose of establishing the approved APH yield, insurance
guarantee, and production to count.
5. 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 choices before the sales closing
date, which was moved back 30 days to comply with the Federal Crop
Insurance Reform Act of 1994.
6. Section 5--Change the cancellation and termination dates from
April 15 to February 15 for Delaware and Maryland and from April 15 to
March 15 for all other states to coincide with the statutory movement
of the sales closing date.
7. 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.
8. Section 7--Specify that peas interplanted with another crop are
not insurable unless allowed by the Special Provisions or by written
agreement. Specify that a producer will be considered to have a share
in the insured crop if under the processor contract the producer
retains possession of the acreage on which the peas are grown, is at
risk of loss, and the processor contract provides for delivery of the
peas under specified conditions and at a stipulated base contract price
per unit of delivery. Also specify the requirements under which a green
pea producer who is also a processor may establish an insurable
interest in the insured crop.
9. 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 on the Special Provisions be
met for acreage to be insured.
[[Page 23682]]
10. Section 9--Add a provision for the insurance period to end when
the amount of green peas delivered to the processor fulfills the
producer's processor contract. This change is consistent with other
policies for crops under a processor contract. Also, extend the date
for the end of the insurance period to September 30 if the producer
provides timely notice of the intent to harvest the crop as dry peas.
11. Section 10(a)--Clarify that loss of production due to adverse
weather conditions is an insurable cause of loss when excessive
moisture prevents harvesting equipment from entering the field or
prevents the timely operation of harvesting equipment; and when
abnormally hot or cold temperatures causes 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. Clarify that insect damage is an insurable cause of loss if
sufficient and proper applications of pest control measures are used.
Clarify that plant disease on acreage not planted to peas the previous
crop year is an insurable cause of loss if sufficient and proper
applications of disease control measures are used.
12. Section 10(b)--Clarify that the insurance provider will not
cover loss of production due to: (1) bypassed acreage if the acreage is
bypassed due to the breakdown or non-operation of equipment or
facilities; (2) bypassed acreage if acreage to be bypassed is selected
based on the availability of a crop insurance payment; (3) peas not
being timely harvested, unless the delay in harvesting is directly due
to an insured cause of loss; (4) failure to follow the requirements
contained in the processor contract; and (5) damage that occurs to
unharvested production after the producer delivers the production
required by the processor contract.
13. Section 11--Require that the producer give notice of loss
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 may result in the insurance
provider's determination that the acreage was bypassed due to an
uninsured cause of loss. If the crop will not be harvested, the
producer must leave representative samples of the unharvested crop for
the insurance provider's 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 the insurance provider's
inspection or 15 days after notice of loss is given. The producer must
also give notice prior to the time the green peas would normally be
harvested if the producer wants to harvest green peas as dry peas.
14. Section 12--Clarify that the total production to count will
include bypassed acreage unless adequate evidence is provided to show
the acreage was bypassed for reasons specified in section 10(a). Change
the way the green pea equivalent is determined when the peas are
harvested as dry peas so that the converted amount of production would
reflect any loss that may have occurred. The amount of production to
count will be calculated by multiplying all the dry pea production by
1.667 for shell type peas and by 3.000 for pod type peas. Previously
the green pea equivalent was calculated by reducing the guarantee by 40
percent. Also, clarify how production to count is determined for
acreage that is not timely harvested due to an uninsured cause of loss.
15. 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
green peas; however, green peas must be grown under a processor
contract to be insurable. The processor may specify dates when the
green peas are to be planted so the processor can maintain a
coordinated planting and harvest schedule for all growers. Therefore,
offering a late planting period may affect the processor's ability to
timely harvest and process the green peas.
16. 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 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 green pea 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 416 and 457
Crop insurance, Green peas, Reporting and recordkeeping
requirements.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby proposes to amend 7 CFR parts 416 and 457
as follows:
PART 416--PEA CROP INSURANCE REGULATIONS FOR THE 1986 THROUGH 1997
CROP YEARS
1. The authority citation for 7 CFR part 416 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 1986 and
Succeeding Crop Years'' is removed.
4. Section 416.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 416.7 The application and policy.
* * * * *
(d) The application for the 1986 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 Pea 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. Section 457.137 is added to read as follows:
Sec. 457.137 Green pea crop insurance provisions.
The Green Pea 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:
[[Page 23683]]
Green Pea 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 in the contract
executed between you and the processor for the tenderometer reading,
grade factor, or sieve size that is designated in the Special
Provisions 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 upon which an indemnity is
payable will be considered to have a zero yield for Actual
Production History (APH) purposes.
Combining (vining). Separating pods from the vines and in the
case of shell peas separating the peas from the pod for delivery to
the canner or processor.
Days. Calendar days.
Dry peas. Peas of the following types:
(a) Spring-planted smooth green and yellow varieties of
commercial dry edible peas, and peas that are grown for the purpose
of producing seed to be planted at a future date;
(b) Fall-planted varieties of Austrian Winter Peas;
(c) Spring-planted varieties of lentils; and
(d) Spring-planted varieties of contract seed peas.
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 green pea 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.
Green pea. Shell type and pod type peas that are grown under a
processor contract to be canned or frozen and sold for human
consumption.
Harvest. Combining (vining) of the peas.
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.
Nurse crop (companion crop). A crop planted into the same
acreage as another crop, that is intended to be harvested
separately, and which is planted to improve growing conditions for
the crop with which it is grown.
Peas. Either shell or pod type peas.
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. Peas must initially be
placed in rows. Acreage planted in any other manner will not be
insurable unless otherwise provided by the Special Provisions or by
written agreement.
Pod type. Peas genetically developed to be eaten without
shelling (e.g., snap peas, snow peas, and Chinese peas).
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.
Price election. In lieu of the definition of ``Price election''
contained in section 1 of the Basic Provisions (Sec. 457.8), price
election is defined as the price per pound stated in the processor
contract (contracted price) for the tenderometer reading, grade
factor, or sieve size contained in the Special Provisions; or a
percentage of such price if you elect less than 100 percent of the
price in the processor contract.
Processor. Any business enterprise regularly engaged in
processing peas for human consumption, that possesses all licenses
and permits for processing peas 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 peas 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 peas, and to
deliver the pea 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 pounds determined
by multiplying the approved APH yield per acre by the coverage level
percentage you elect. For shell type peas the weight will be
determined after shelling.
Replanting. Performing the cultural practices necessary to
prepare the land to replace the pea seed and then replacing the pea
seed in the insured acreage with the expectation of growing a
successful crop.
Shell type. Peas that were genetically developed to be shelled
prior to eating, canning or freezing.
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 this policy in accordance with section 14.
2. Unit Division
(a) In addition to the criteria stated in the definition of unit
in section 1 (Definitions) of the Basic Provisions (Sec. 457.8), and
if provided for in the Special Provisions shell type peas will form
a basic unit and pod type peas will form a basic unit.
(b) Unless limited by the Special Provisions, these basic units
may be divided into optional units if, for each optional unit, you
meet all the conditions of this section or if a written agreement to
such division exists. Basic units may not be divided into optional
units on any basis 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. This provision may not be
changed by written agreement.
(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 additional
premium paid for the optional units that have been combined will be
refunded to you.
(e) All optional units you selected for the crop year must be
identified on the acreage report for that crop year.
(f) The following requirements must be met for each optional
unit:
(1) You must have records, which can be independently verified,
of 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
[[Page 23684]]
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 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 green
peas 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 green pea 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) For the purpose of establishing the approved APH yield,
insurance guarantee, and production to count, the weight of the
shell type peas will be determined after the peas are shelled.
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:
Cancellation and Termination
State and Dates
Delaware and Maryland--February 15
All other states--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 shell type
or pod type green peas in the county for which a premium rate is
provided by the actuarial table:
(1) In which you have a share;
(2) That are planted for harvest to be canned or frozen;
(3) That are 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 are not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop;
(ii) Planted into an established grass or legume; or
(iii) Planted as a nurse crop.
(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 green peas are grown, you are at risk of loss,
and the processor contract provides for delivery of green peas under
specified conditions and at a stipulated base contract price per
unit of delivery.
(c) A commercial green pea 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 green pea 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 green peas:
(1) Were destroyed;
(2) Should have been harvested;
(3) Were abandoned; or
(4) Were harvested;
(b) The date you harvested sufficient production to fulfill your
processor contract;
(c) Final adjustment of a loss;
(d) September 15 of the calendar year in which the insured green
peas would normally be harvested; or
(e) September 30 of the calendar year in which the insured peas
would normally be harvested if you provide notice to us in
accordance with section 11(d) that the insured crop will be
harvested as dry peas.
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 peas 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 green peas 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.
[[Page 23685]]
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 green peas 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 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;
(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; and
(d) Prior to the time the green peas would normally be harvested
if you want to harvest green peas as dry peas.
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 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) 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 green pea 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 peas delivered to the processor by the
base contract price per pound; and
(3) All dry pea production from the insurable acreage if we have
given consent for any acreage to be harvested as dry peas. The
harvested or appraised dry pea production will be multiplied by
1.667 for shell types and 3.000 for pod types to determine the green
pea production equivalent. No adjustment for quality deficiencies
will be allowed for such production.
(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 peas
delivered to the processor by the base contract price per pound.
13. Late Planting
Late planting provisions are not applicable to green peas.
14. Written Agreement
Designated terms of this policy may be altered by written
agreement in accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
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 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 25, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-11255 Filed 4-30-97; 8:45 am]
BILLING CODE 3410-FA-P
