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15-Ineligibility

(April 2014)

UNITED STATES DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE CORPORATION

INELIGIBILITY AMENDMENT

____________________________________________________________________________________________

(This is a Continuous Amendment)

This amendment modifies the provisions of the Area Risk Protection Insurance Basic Provisions (ARPI), Common 

Crop Insurance Policy Basic Provisions (CCIP), Livestock Gross Margin for Cattle Insurance Policy Basic Provisions 

(LGM-Cattle), Livestock Gross Margin for Dairy Cattle Insurance Policy Basic Provisions (LGM-Dairy), Livestock 

Gross Margin for Swine Insurance Policy Basic Provisions (LGM-Swine), Livestock Risk Protection Insurance Policy 

Basic Provisions (LRP), Rainfall and Vegetation Index Plan of Insurance Basic Provisions (RIVI) for the 2015 and 

succeeding crop years for all crops with a 2015 contract change date on or after April 30, 2014, and for the 2016 and 

succeeding crop years for all crops with a 2015 contract change date prior to April 30, 2014.

The changes to the above policies are required as the result of changes made in the Final Rule to 7 CFR part 400 by 

revising Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act published in the Federal Register

on January 13, 2014. These technical changes apply to policyholders not being eligible for crop insurance on any 

crop until after all amounts owed are paid in full, a written payment agreement is executed, or policyholders have 

those debts discharged in bankruptcy.

The revised provisions are as follows:

In addition to section: The following provisions have been added:

1 – LGM Dairy

1 – LGM Swine

Delinquent debt - Has the same meaning as the term defined in 7 CFR part 400, subpart 

U.

In lieu of section: The following provisions will apply:

2(j) – LGM Dairy A delinquent debt for any policy will make you ineligible to obtain crop insurance 

authorized under the Act for any subsequent crop year and result in termination of all 

policies in accordance with section 2(j)(2).

2(j)(1)(i)(A) – LGM Dairy The date that a policy was terminated in accordance with section 2(j)(2) for the 

commodity for which you failed to pay premium, an administrative fee, or any related 

interest owed, as applicable;

2(f)(1)(i)(B) – CCIP

3(g)(1)(i)(B) – RIVI

2(j)(1)(i)(B) – LGM Dairy 

2(j)(1)(i)(B) – LGM Swine

The payment due date contained in any notification of indebtedness for any overpaid 

indemnity, prevented planting payment or replanting payment, if you fail to pay the 

amount owed, including any related interest owed, as applicable, by such due date; or

2(k)(1)(i)(B) – ARPI The payment due date contained in any notification of indebtedness for overpaid 

indemnity and any other amounts due, including but not limited to, premium billed with 

a due date after the termination date for the crop year in which premium is earned, if 

you fail to pay the amount owed, including any related interest owed, as applicable, by 

such due date; or

2(f)(1)(i)(C) – CCIP

2(k)(1)(i)(C) – ARPI 

3(g)(1)(i)(C) – RIVI

2(j)(1)(i)(C) – LGM Dairy

2(j)(1)(i)(C) – LGM Swine

The termination date for the crop year prior to the crop year in which a scheduled 

payment is due under a written payment agreement if you fail to pay the amount owed 

by any payment date in any agreement to pay the debt.

2(f)(1)(i)(D) – CCIP

2(k)(1)(i)(D) – ARPI

3(g)(1)(i)(D) – RIVI

2(j)(1)(i)(D) – LGM Dairy

2(j)(1)(i)(D) – LGM Swine

Paragraph (D) is removed.
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In lieu of section: The following provisions will apply:

2(f)(1)(ii) – CCIP If you are ineligible and a policy has been terminated in accordance with section 2(f)(2), 

you will not receive any indemnity, prevented planting payment or replanting payment, 

if applicable, and such ineligibility and termination of the policy may affect your 

eligibility for benefits under other USDA programs. Any indemnity, prevented planting 

payment or replanting payment that may be owed for the policy before it has been 

terminated will remain owed to you, but may be offset in accordance with section 2(e), 

unless your policy was terminated in accordance with sections 2(f)(2)(i)(A), (B), or (D).

2(k)(1)(ii) – ARPI If you are ineligible and a policy has been terminated in accordance with section 

2(k)(2), you will not receive any indemnity, and such ineligibility and termination of the 

policy may affect your eligibility for benefits under other USDA programs. Any 

indemnity that may be owed for the policy before it has been terminated will remain 

owed to you, but may be offset in accordance with section 2(j), unless your policy was 

terminated in accordance with sections 2(k)(2)(i)(A), (B), or (D).

3(g)(1)(ii) – RIVI If you are ineligible and a policy has been terminated in accordance with section 

3(g)(2), you will not receive any indemnity payment, prevented planting payment or 

replanting payment, if applicable, and such ineligibility and termination of a policy may 

affect your eligibility for benefits under other USDA programs. Any indemnity payment, 

prevented planting payment or replanting payment, if applicable, that may be owed for 

the policy before it has been terminated will remain owed to you, but may be offset in 

accordance with section 3(f), unless your policy was terminated in accordance with 

sections 3(g)(2)(i), (ii), or (iv).

2(j)(1)(ii) – LGM Dairy

2(j)(1)(ii) – LGM Swine

If you are ineligible and a policy has been terminated in accordance with section 2(j)(2), 

you will not receive any indemnity, prevented planting payment or replanting payment, 

if applicable, and such ineligibility and termination of the policy may affect your 

eligibility for benefits under other USDA programs. Any indemnity, prevented planting 

payment or replanting payment that may be owed for the policy before it has been 

terminated will remain owed to you, but may be offset in accordance with section 2(i), 

unless your policy was terminated in accordance with sections 2(j)(2)(i)(A), (B), or (D).

2(f)(2)(i)(C) – CCIP

2(j)(2)(i)(C) – LGM Dairy

2(j)(2)(i)(C) – LGM Swine

For all other policies that are issued by us under the authority of the Act, the 

termination date that coincides with the termination date for the policy with the 

delinquent debt or, if there is no coincidental termination date, the termination date 

immediately following the date you become ineligible; or

2(k)(2)(i)(C) – ARPI For all other policies that are issued by us under the authority of the Act, the 

termination date that coincides with the termination date for the policy with the 

delinquent debt, or if there is no coincidental termination date, the termination date 

immediately following the date you become ineligible; or

3(g)(2)(iii) – RIVI For your other policies for which a debt is not delinquent but are terminated because of 

a policy terminated under sections 3(g)(i) or (ii), termination will be effective on the 

termination date that coincides with the termination date for the policy with the 

delinquent debt or, if there is no coincidental termination date, the termination date 

immediately following the date you become ineligible; or

2(f)(2)(i)(D) – CCIP

2(k)(2)(i)(D) – ARPI

2(j)(2)(i)(D) – LGM Dairy

2(j)(2)(i)(D) – LGM Swine 

For execution of a written payment agreement and failure to make any scheduled 

payment, the termination date for the crop year prior to the crop year in which you 

failed to make the scheduled payment (for this purpose only, the crop year will start the 

day after the termination date and end on the next termination date, e.g., if the 

termination date is November 30 and you fail to make a payment on November 15, 

2011, your policy will terminate on November 30, 2010, for the 2011 crop year).

3(g)(2)(iv) – RIVI For execution of a written payment agreement and failure to make any scheduled 

payment, termination will be effective on the termination date for the crop year prior to 

the crop year in which you failed to make the scheduled payment:

(A) For this purpose only, the crop year will start the day after the termination date and 

end on the next termination date.

(B) For example, if the termination date is November 30 and you fail to make a 

payment on November 15, 2012, your policy will terminate on November 30, 2011, 

for the 2012 crop year.
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In lieu of section: The following provisions will apply:

2(f)(2)(i)(E) – CCIP

2(k)(2)(i)(E) – ARPI

2(j)(2)(i)(E) – LGM Dairy

2(j)(2)(i)(E) – LGM Swine

Paragraph (E) is removed.

3(g)(2)(v) – RIVI Paragraph (v) is removed.

2(f)(2)(ii) - CCIP For all policies terminated under sections 2(f)(2)(i)(A), (B), or (D), any indemnities, 

prevented planting payments or replanting payments paid subsequent to the 

termination date must be repaid.

2(k)(2)(ii) – ARPI For all policies terminated under section 2(k)(2)(i)(A), (B), or (D), any indemnities paid 

subsequent to the termination date must be repaid.

3(g)(3) – RIVI For all policies terminated under sections 3(g)(2)(i), (ii), or (iv), any indemnity, 

prevented planting or replanting payments paid subsequent to the termination date 

must be repaid.

2(j)(2)(ii) – LGM Dairy

2(j)(2)(ii) – LGM Swine 

For all policies terminated under sections 2(j)(2)(i)(A), (B), or (D), any indemnities paid 

subsequent to the termination date must be repaid.

2(f)(3)(iii) – CCIP

2(k)(3)(iii) – ARPI

3(g)(5)(iii) – RIVI 

2(j)(3)(iii) – LGM Dairy

2(j)(3)(iii) – LGM Swine

Have your debts discharged in bankruptcy.

2(f)(5) – CCIP 

2(j)(5) – LGM Dairy

2(j)(5) – LGM Swine

For example, for the 2011 crop year, if crop A, with a termination date of October 31, 

2010, and crop B, with a termination date of March 15, 2011, are insured and you do 

not pay the premium for crop A by the termination date, you are ineligible for crop 

insurance as of October 31, 2010, and crop A’s policy is terminated as of that date. 

Crop B’s policy does not terminate until March 15, 2011, and an indemnity for the 2010 

crop year may still be owed. If you enter into a written payment agreement on 

September 25, 2011, the earliest date by which you can obtain crop insurance for crop 

A is to apply for crop insurance by the October 31, 2011, sales closing date and for 

crop B is to apply for crop insurance by the March 15, 2012, sales closing date. If you 

fail to make a payment that was scheduled to be made on April 1, 2012, your policy will 

terminate as of October 31, 2011, for crop A, and March 15, 2012, for crop B, and no 

indemnity, prevented planting payment or replant payment will be due for that crop year 

for either crop. You will not be eligible to apply for crop insurance for any crop until 

after the amounts owed are paid in full or you have your debts discharged in 

bankruptcy.

2(p)(2) – ARPI Since applications for crop insurance cannot be accepted after the sales closing date, if 

you make any payment, or you otherwise become eligible, after the sales closing date, 

you cannot apply for insurance until the next crop year. For example, for the 2012 crop 

year, if crop A, with a termination date of October 31, 2012, and crop B, with a 

termination date of March 15, 2013, are insured and you do not pay the premium for 

crop A by the termination date, you are ineligible for crop insurance as of October 31, 

2012, and crop A’s policy is terminated as of that date. Crop B’s policy does not 

terminate until March 15, 2013, and an indemnity for the 2012 crop year may still be 

owed. You will not be eligible to apply for crop insurance for any crop until after the 

amounts owed are paid in full or have your debts discharged in bankruptcy.
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In lieu of section: The following provisions will apply:

2(g)(7) – RIVI For example, for the 2013 crop year, if crop A, with a termination date of October 31, 

2013, and crop B, with a termination date of March 15, 2014, are insured and you do 

not pay the premium for crop A by the termination date, you are ineligible for crop 

insurance as of October 31, 2013, and crop A's policy is terminated as of that date. 

Crop B's policy does not terminate until March 15, 2014, and an indemnity for the 2013 

crop year may still be owed. If you enter into a written payment agreement on 

September 25, 2014, the earliest date by which you can obtain crop insurance for crop 

A is to apply for crop insurance by the October 31, 2014, sales closing date and for 

crop B is to apply for crop insurance by the March 15, 2015, sales closing date. If you 

fail to make a payment that was scheduled to be made on April 1, 2015, your policy will 

terminate as of October 31, 2014, for crop A, and March 15, 2015, for crop B, and no 

indemnity, prevented planting payment or replant payment will be due for that crop year 

for either crop. You will not be eligible for crop insurance for any crop until after the 

amounts owed are paid in full or have your debts discharged in bankruptcy.

2(j)(8) – LGM Cattle A policy already in effect at the time you become ineligible will not be affected until the 

termination date for that policy, and if you are ineligible, you may not obtain any 

insurance under the Act for any crop or livestock until payment is made in full, you 

execute an agreement to repay the debt and make payments in accordance with the 

agreement, or have your debts discharged in bankruptcy;

2(j)(9)(C) – LGM Cattle You will be ineligible for insurance under the Act until the debt is paid in full or you have 

your debts discharged in bankruptcy;

1 – LRP definition of 

“delinquent account”

The definition of “delinquent account” is removed.

3(j)(5) – LRP A crop insurance or livestock policy already in effect at the time you become ineligible 

will not be affected until the termination date for that policy (If you are ineligible, you 

may not obtain any insurance under the Act until payment is made, you execute an 

agreement to repay the debt and make payments in accordance with the agreement, or 

you have your debts discharged in bankruptcy);

3(j)(6) - LRP If you execute an agreement to pay the debt and fail to make any scheduled payment, 

all of your policies, including all crop insurance policies, will be terminated effective on 

the termination date for the crop year prior to the crop year in which you failed to make 

the scheduled payment and no indemnity will be due for that year (You will no longer 

be eligible to obtain insurance under the Act by execution of an agreement to pay the 

debt. You will be ineligible for insurance under the Act until the debt is paid in full or 

you have your debts discharged in bankruptcy);