[Federal Register Volume 62, Number 132 (Thursday, July 10, 1997)]
[Proposed Rules]
[Pages 37000-37004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18060]
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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. 132 / Thursday, July 10, 1997 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 450 and 457
Prune Crop Insurance Regulations; and Common Crop Insurance
Regulations, Prune 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 prunes. 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 Prune 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
Prune 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 August 11, 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 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 information collection requirements contained in these
regulations are being reviewed by OMB pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number
0563-0053.
Section 7 of the proposed 1998 Prune Crop Provisions adds
interplanting as an insurable farming practice as long as it is
interplanted with another perennial crop and does not adversely affect
the insured crop. This practice was not insurable under the previous
Prune Crop Insurance Policy. Consequently, interplanting information
will need to be collected using the FCI-12-P Pre-Acceptance Perennial
Crop Inspection Report form for approximately two percent of the
insureds who interplant their prune crop. Standard interplanting
language has been added to most perennial crops to make insurance
available for more perennial crop producers and reduce the acreage that
will need to be placed into the noninsured crop disaster assistance
program (NAP).
The title of this information collection is ``Multiple Peril Crop
Insurance.''
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 prunes 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.
The title of this information collection is ``Multiple Peril Crop
Insurance.''
The burden associated with the written agreement is estimated at 19
minutes per response from approximately 4,864 respondents each year for
a total number of 1,571 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 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
[[Page 37001]]
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.
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 12988
This proposed rule has been reviewed under the provisions of
Executive Order 12988 on civil justice reform. 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 against
FCIC.
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. 457.133, Prune 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 prunes found at 7 CFR part 450 (Prune
Crop Insurance Regulations). FCIC also proposed to amend 7 CFR part 450
to limit its effect to the 1997 and prior crop years. FCIC will later
publish a regulation to remove and reserve part 450.
This rule makes minor editorial and format changes to improve the
Prune Crop Insurance Regulations' compatibility with the Common Crop
Insurance Policy. In addition, FCIC is proposing substantive changes in
the provisions for insuring prunes as follows:
1. Section 1--Add the definition for the terms ``days,'' ``direct
marketing,'' ``FSA,'' ``good farming practices,'' ``interplanted,''
``irrigated practice,'' ``non-contiguous land,'' ``production
guarantee,'' ``ton,'' ``written agreement,'' and change the definition
of ``prunes'' for clarification.
2. Section 2(e)--Change provisions to allow optional units on non-
contiguous land and for land located in separate sections. Previous
regulations provided basic units for land located on contiguous land.
This change will standardize these provisions with the provisions
contained in other perennial crop policies.
3. Section 3(a)--Specify that the insured may select only one price
election for all the prunes in the county insured under the policy,
unless the Special Provisions provide different price elections by
varietal group, in which case the insured may select one price election
for each prune varietal group designated in the Special Provisions.
4. Section 3(b)--Specify that the insured must report damage,
removal of trees, change in practices or any other circumstance that
may reduce yields. The insured must also report, for the first year of
insurance for acreage interplanted with another perennial crop and
anytime the planting pattern of such acreage is changed, the age and
varietal group, if applicable, of any interplanted crop, its planting
pattern, and any other information that the insurer requests in order
to establish the yield upon which the production guarantee is based. If
the insured fails to notify the insurer of any circumstance that may
reduce yields from previous levels, the insurer will reduce the
production guarantee at any time the insurer becomes aware of the
circumstance. Current regulations provide that production guarantees
will be reduced when the number of bearing trees has been reduced by
more than 10 percent from the preceding year. This change will
standardize these provisions with provisions contained in other
perennial crop policies.
5. Section 6(c)--Clarify that the insured crop must be grown on
prune tree varieties that were commercially available when the trees
were set out and on rootstock that is adapted to the area.
6. Section 7--Add provisions to make interplanted prunes insurable
if planted with another perennial crop unless the insurance provider
inspects the acreage and determines it does not qualify to be accepted
for insurance coverage. This provision was added to provide insurance
coverage to the maximum extent to all prune producers, and to reduce
the number of acres that would require coverage under the Non-insured
Assistance Program (NAP).
7. Section 8--Add provisions to clarify the procedure when an
insurable share is acquired or relinquished on or before the acreage
reporting date.
8. Section 9(a)--Remove direct Mediterranean Fruit Fly damage as an
insured cause of loss. Effective control measures are now available;
therefore, damage due to Mediterranean Fruit Fly is no longer needed as
a separate cause of loss.
9. Section 9(b)(1)--Add disease and insect infestation to the
excluded causes of loss unless adverse weather prevents the proper
application of control measures, causes control measures to be
ineffective when properly applied, or no effective control mechanism is
available for such disease or insect infestation. These exclusions need
to be added for clarification so that insurance coverage is not
provided for causes of loss that could be prevented.
10. Section 9(b)(2)--Clarify that insurance is not provided against
damage or loss of production due to the inability to market the prunes
for any reason other than actual physical damage to the prunes from an
insurable cause.
11. Section 10(a)--Require that the insured give notice of loss
within 3 days of the date harvest should have started if the crop is
not to be harvested. Previous regulations required written notice if
during the period before harvest, any prunes would not be harvested or
further cared for. This change will standardize the notice of loss
requirements utilized in other perennial crops.
12. Section 10(b)--Require notice of loss be provided at least 15
days prior to harvest if production will be sold by direct marketing or
sold as fresh fruit. This change will assure that a timely notice of
loss is provided so that a pre-harvest inspection can be made to
determine the total amount of production to count when the prunes
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will be harvested for direct marketing or fresh fruit.
13. Section 10(c)--Change the notice of loss requirements when the
insured intends to claim an indemnity. Require that notice of loss be
provided at least 15 days prior to the beginning of harvest or
immediately if damage is discovered during harvest. Previous prune
regulations required notice of loss not later than 10 days after
harvest or the end of the insurance period. This change will
incorporate and standardize the notice of loss requirements utilized
for other perennial crops.
14. Section 10(d)--Specifies that the insured cannot destroy the
damaged crop until we have given written consent to do so. However, the
insured may sell or dispose of the damaged crop if there is a market
for it. Previous regulations required written consent before the
insured destroyed any of the prunes which were not to be harvested.
This change conforms with the requirements contained in other crop
policies.
15. Section 11(c)(1)(i)(B)--Specify that production to count will
not be less than the production guarantee per acre for any acreage that
is marketed directly to consumers or sold as fresh fruit if the
producer fails to meet the notification requirements contained in
section 10.
16. Section 11(c)(1)(iv)--Require the insured to continue to
provide sufficient care for the insured crop 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.
17. Section 11(d)--Clarify that the total harvested production to
count will include prune production harvested for fresh fruit. Such
fresh fruit production will be converted to a dried prune weight basis
by dividing the total amount of fresh fruit production by 3.1.
18. Section 12--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 the
procedures for, and duration of, written agreements.
19. Remove the date for submitting an acreage report. In accordance
with the Common Crop Insurance Policy, Basic Provisions, the acreage
reporting date instead will be contained in the Special Provisions.
This change conforms the prune crop provisions to other crop
provisions.
List of Subjects in 7 CFR Parts 450 and 457
Crop insurance, Prunes.
Proposed Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby proposes to amend 7 CFR parts 450 and
457 as follows:
PART 450--PRUNE CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 450 is revised 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 through the
1997 Crop Years'' is removed.
4. Section 450.7 is amended by revising the introductory text of
paragraph (d) to read as follows:
Sec. 450.7 The application and policy.
* * * * *
(d) The application for the 1986 and succeeding crop years is found
at subpart D of part 400-General Administrative Regulations (7 CFR
400.37, 400.38). The provisions of the Prune 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(1), 1506(p).
5. Section 457.133 is added to read as follows:
Sec. 457.133 Prune crop insurance provisions.
The Prune 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:
Prune 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
Days. Calendar days.
Direct marketing. Sale of the insured crop directly to consumers
without the intervention of an intermediary such as a wholesaler,
retailer, packer, processor, shipper or buyer. Examples of direct
marketing include: selling through an on-farm or roadside stand,
farmer's market, and permitting the general public to enter the
field for the purpose of picking all or a portion of the crop.
FSA. The Farm Service Agency, an agency of the United States
Department of Agriculture, or a successor agency.
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 recognized by the Cooperative State Research,
Education, and Extension Service as compatible with agronomic and
weather conditions in the county.
Harvest. Picking of mature prunes from the trees or ground
either by hand or machine.
Interplanted. Acreage on which two or more crops are planted in
any form of alternating or mixed pattern.
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.
Market price for standard prunes. The price per ton shown on the
processor's settlement sheet for each size count of standard prunes.
Natural condition prunes. The condition of prunes in which they
are normally delivered from a dehydrator or dry yard.
Non-contiguous land. Any two or more tracts of land whose
boundaries do not touch at any point, except that land separated
only by a public or private right-of-way, waterway, or an irrigation
canal will be considered as contiguous.
Production guarantee (per acre). The number of tons determined
by multiplying the approved APH yield per acre by the coverage level
percentage you elect.
Prunes. Any type or variety of plums that are grown in the area
for the production of prunes and that meets the requirements defined
in the applicable Federal Marketing Agreement Dried Prune Order.
Standard prunes. Any natural condition prunes:
(a) That grade ``C'' or better in accordance with the United
States Standards for grades of prunes; or
(b) That meet or exceed the grading standards in effect for the
crop year, if a Federal Marketing Agreement Dried Prune Order has
been established for the area in which the insured crop is grown.
Substandard prunes. Any natural condition prunes failing to meet
the applicable grading specifications for standard prunes.
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Ton. Two thousand (2000) pounds avoirdupois.
Written agreement. A written document that alters designated
terms of this policy in accordance with section 12.
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.
(b) Basic units may not be divided into optional units on any
basis other than as described in this section.
(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 premium
paid for the purpose of electing optional units will be refunded to
you for the units combined.
(d) All optional units established for a 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 provided records by the production reporting
date, that can be independently verified, of acreage and production
for each optional unit for at least the last crop year used to
determine your production guarantee;
(2) For each crop year, 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;
(3) Each optional unit must also meet one or more of the
following criteria as applicable unless otherwise allowed by a
written agreement:
(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 exists but boundaries are not readily discernable, each
optional unit must be located in a separate farm identified by a
single FSA Farm Serial Number; or
(ii) Optional Units on Acreage Located on Non-Contiguous Land:
In lieu of establishing optional units by section, section
equivalent or FSA Farm Serial Number, optional units may be
established if each optional unit is located on non-contiguous land.
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 prunes in
the county insured under this policy unless the Special Provisions
provide different price elections by varietal group, in which case
you may select one price election for each prune varietal group
designated in the Special Provisions. The price elections you choose
for each varietal group must have the same percentage relationship
to the maximum price offered by us for each varietal group. For
example, if you choose 100 percent of the maximum price election for
one varietal group, you must also choose 100 percent of the maximum
price election for all other varietal groups.
(b) You must report, by the production reporting date designated
in section 3 (Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities) of the Basic Provisions (Sec. 457.8), by
varietal group if applicable:
(1) Any damage, removal of trees, change in practices, or any
other circumstance that may reduce the expected yields below the
yield upon which the insurance guarantee is based, and the number of
affected acres;
(2) The number of bearing trees on insurable and uninsurable
acreage;
(3) The age of the trees and the planting pattern; and
(4) For the first year of insurance for acreage interplanted
with another perennial crop, and anytime the planting pattern of
such acreage is changed:
(i) The age of the interplanted crop, and varietal group if
applicable;
(ii) The planting pattern; and
(iii) Any other information that we request in order to
establish your approved yield.
We will reduce the yield used to establish your production
guarantee as necessary, based on our estimate of the effect of the
following: interplanted perennial crop; removal of trees; damage;
change in practices and any other circumstance that may affect the
yield potential of the insured crop. If you fail to notify us of any
circumstance that may reduce your yields from previous levels, we
will reduce your production guarantee at any time we become aware of
the circumstance.
4. Contract Changes
In accordance with section 4 (Contract Changes) of the Basic
Provisions (Sec. 457.8), the contract change date is October 31
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 January 31.
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the prunes in
the county for which a premium rate is provided by the actuarial
table:
(a) In which you have a share;
(b) That are grown for the production of natural condition
prunes;
(c) That are grown on tree varieties that:
(1) Were commercially available when the trees were set out;
(2) Are adapted to the area;
(3) Are grown on rootstock that is adapted to the area; and
(4) Are irrigated (except where otherwise provided in the
Special Provisions);
(d) That are grown in an orchard that, if inspected, is
considered acceptable by us; and
(e) That are grown on trees that have reached at least the
seventh growing season after being set out.
7. Insurable Acreage
As an exception to the provisions in section 9 (Insurable
Acreage) of the Basic Provisions (Sec. 457.8), that prohibit
insurance attaching to a crop planted with another crop, prunes
interplanted with another perennial crop are insurable unless we
inspect the acreage and determine that it does not meet the
insurability requirements contained in your policy.
8. Insurance Period
(a) In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) Coverage begins for each crop year on March 1.
(2) The calendar date for the end of the insurance period for
each crop year is:
(i) October 1 for California; or
(ii) October 15 for Oregon.
(b) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8):
(1) If you acquire an insurable share in any insurable acreage
after coverage begins but on or before the acreage reporting date
for the crop year, and after an inspection we consider the acreage
acceptable, insurance will be considered to have attached to such
acreage on the calendar date for the beginning of the insurance
period.
(2) If you relinquish your insurable share on any insurable
acreage of prunes on or before the acreage reporting date for the
crop year and if the acreage was insured by you the previous crop
year, insurance will not be considered to have attached to, and no
premium or indemnity will be due for such acreage for that crop year
unless:
(i) A transfer of coverage and right to an indemnity, or a
similar form approved by us, is completed by all affected parties;
(ii) We are notified by you or the transferee in writing of such
transfer on or before the acreage reporting date; and
(iii) The transferee is eligible for crop insurance.
9. Causes of Loss
(a) In accordance with the provisions of section 12 (Causes of
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided
only against the following causes of loss that occur during the
insurance period:
(1) Adverse weather conditions;
(2) Fire, unless weeds and undergrowth have not been controlled
or pruning debris has not been removed from the orchard;
(3) Wildlife, unless control measures have not been taken;
[[Page 37004]]
(4) Earthquake;
(5) Volcanic eruption; or
(6) Failure of the irrigation water supply, if caused by an
insured peril that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not
insure against damage or loss of production due to:
(1) Disease or insect infestation, unless adverse weather:
(i) Prevents the proper application of control measures or
causes properly applied control measures to be ineffective; or
(ii) Causes disease or insect infestation for which no effective
control mechanism is available; or
(2) Inability to market the prunes for any reason other than
actual physical damage from an insurable cause specified in this
section. For example, we will not pay you an indemnity if you are
unable to market due to quarantine, boycott, or refusal of any
person to accept production.
10. 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), the
following will apply:
(a) You must notify us within 3 days of the date harvest should
have started if the crop will not be harvested.
(b) You must notify us at least 15 days before any production
from any unit will be sold by direct marketing or sold as fresh
fruit. We will conduct an appraisal that will be used to determine
your production to count for production that is sold by direct
marketing or is sold as fresh fruit production. If damage occurs
after this appraisal, we will conduct an additional appraisal. These
appraisals, and any acceptable records provided by you, will be used
to determine your production to count. Failure to give timely notice
that production will be sold by direct marketing or sold as fresh
fruit will result in an appraised amount of production to count of
not less than the production guarantee per acre if such failure
results in our inability to make the required appraisal.
(c) If you intend to claim an indemnity on any unit, you must
notify us at least 15 days prior to the beginning of harvest or
immediately if damage is discovered during harvest, so that we may
inspect the damaged production.
(d) You must not destroy the damaged crop until after we have
given you written consent to do so. If you fail to meet the
requirements of this section and such failure results in our
inability to inspect the damaged production, all such production
will be considered undamaged and included as production to count.
11. 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 unit, 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 each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim by:
(1) Multiplying the insured acreage for each varietal group, if
applicable, by its respective production guarantee;
(2) Multiplying the result in 11(b)(1) by the respective price
election for each varietal group, if applicable;
(3) Totaling the results in section 11(b)(2);
(4) Multiplying the total production to be counted of each
varietal group, if applicable, (see sections 11 (c) through (e)) by
the respective price election;
(5) Totaling the results in section 11(b)(4);
(6) Subtracting the result in section 11(b)(5) from the result
in section 11(b)(3); and
(7) Multiplying the result in section 11(b)(6) by your share.
(c) The total production to count (in tons) from all insurable
acreage on the unit will include all harvested and appraised
production of natural condition prunes that grade substandard or
better and any production that is harvested and intended for use as
fresh fruit. The total production to count will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee per acre for acreage:
(A) That is abandoned;
(B) That is sold by direct marketing or sold as fresh fruit if
you fail to meet the requirements contained in section 10;
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide acceptable production records;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production; and
(iv) Potential production on insured acreage you intend to
abandon or no longer care for, if you and we agree on the appraised
amount of production. Upon such agreement, the insurance period for
that acreage will end. If you do not agree with our appraisal, we
may defer the claim only if you agree to continue to care for the
crop. We will then make another appraisal when you notify us of
further damage or that harvest is general in the area unless you
harvested the crop, in which case we will use the harvested
production. If you do not continue to care for the crop, our
appraisal made prior to deferring the claim will be used to
determine the production to count; and
(2) All harvested production from the insurable acreage.
(d) Any prune production harvested for fresh fruit will be
converted to a dried prune weight basis by dividing the total amount
(in tons) of fresh fruit production by 3.1.
(e) Any production of substandard prunes resulting from damage
by insurable causes will be adjusted based on the average size count
as indicated on the applicable Dried Fruit Association (DFA)
Inspection Report and Certification Form. Any insurable damage will
be adjusted by:
(i) Dividing the value per ton of such substandard prunes by the
market price per ton for standard prunes (of the same size count);
and
(ii) Multiplying the result by the number of tons of such
prunes.
12. Written Agreements
Terms of this policy which are specifically designated for the
use of written agreements may be altered by written agreement in
accordance with the following:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
12(e);
(b) The application for a written agreement must contain all
variable terms of the contract between you and us that will be in
effect if the written agreement is not approved;
(c) If approved, the written agreement will include all variable
terms of the contract, including, but not limited to, crop type or
varietal group, 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 July 3, 1997.
Suzette Dittrich,
Deputy Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-18060 Filed 7-9-97; 8:45 am]
BILLING CODE 3410-08-P
