SUMMARY OF CHANGES FOR THE COMMON CROP INSURANCE POLICY 

BASIC PROVISIONS – REINSURED VERSION (17-BR) 

(Released July 2016) 

The Common Crop Insurance Policy Basic Provisions were re-released in July 2016 to correct page 

numbers and a typographical error in the definition of “practical to replant.” 

The Common Crop Insurance Policy Basic Provisions will be effective for the 2017 crop year for all 

crops with a 2017 contract change date on or after June 30, 2016, and for the 2018 and crop year for 

all crops with a 2017 contract change date prior to June 30, 2016. 

The provisions have been revised to incorporate changes previously made in the Ineligibility 

Amendment (15-Ineligibility) and the Farm Bill Amendment (15-CCIP-Farm Bill). 

The following is a brief description of changes to the Common Crop Insurance Policy Basic 

Provisions that were made in a final rule published by FCIC on June 22, 2016, and a final rule 

published by FCIC on June 30, 2016. Please refer to the Basic Provisions for complete information. 

Section 1 – Revised the definitions of “approved yield,” “beginning farmer or rancher,” “enterprise 

unit,” and “practical to replant.” 

Sections 2(f)(2)(iii) – Revised to clarify provisions regarding reinstatement. 

Section 2(f)(2)(iv) – Revised to clarify appeal rights for determinations made under section 

2(f)(2)(iii)(B) and (C). 

Section 5 - Removed the phrase “per acre planted” and adding in its place the phrase “per planted 

acre.” 

Section 7(h)(2)(i) - Revised reference of beginning farming or rancher to reference producers who 

begin farming for the first time after June 1. 

Section 9(e) - Removed the phrase “and is planted to an annual crop.” 

Section 9(f) - Removed the phrase “areas of” and added in its place the word “cumulative.” 

Section 15 – Revised to allow the allocation of comingled first and second crop production to the 

associated crop acreage in proportion to the liability for the acreage that was and was not double 

cropped. Also revised to allow eligible double cropping acres to be based on either, (1) the greatest 

number of acres double cropped in two of the last four crop years in which the first insured crop was 

planted; or (2) the percentage of acres historically double cropped in two of the last four crop years in 

which the first insured crop was planted. 

Section 24(a) – Added the phrase “the issuance of the notice by us, provided that a minimum of 30 

days have passed from” after the phrase “interest will start to accrue on the first day of the month 

following.” 

Section 34(a)(5)(i)(A)(3) – Revised to allow separate units by irrigated and non-irrigated practices for 

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17-BR 

(Released July 2016) COMMON CROP INSURANCE POLICY 

(This is a continuous policy. Refer to section 2.) 

This insurance policy is reinsured by the Federal Crop Insurance Corporation (FCIC) under the provisions of the 

Federal Crop Insurance Act (Act) (7 U.S.C. 1501 et seq.). All provisions of the policy and rights and responsibilities of the parties 

are specifically subject to the Act. The provisions of the policy may not be waived or varied in any way by us, our insurance agent 

or any other contractor or employee of ours or any employee of USDA unless the policy specifically authorizes a waiver or 

modification by written agreement. We will use the procedures (handbooks, manuals, memoranda and bulletins), as issued by 

FCIC and published on RMA’s Web site at http://www.rma.usda.gov/ or a successor Web site, in the administration of this policy, 

including the adjustment of any loss or claim submitted hereunder. In the event that we cannot pay your loss because we are 

insolvent or are otherwise unable to perform our duties under our reinsurance agreement with FCIC, your claim will be settled in 

accordance with the provisions of this policy and FCIC will be responsible for any amounts owed. No state guarantee fund will be 

liable for your loss. 

Throughout this policy, “you” and “your” refer to the named insured shown on the accepted application and “we,” “us,” and “our” 

refer to the insurance company providing insurance. Unless the context indicates otherwise, use of the plural form of a word 

includes the singular and use of the singular form of the word includes the plural. 

AGREEMENT TO INSURE: In return for the payment of the premium, and subject to all of the provisions of this policy, we 

agree with you to provide the insurance as stated in this policy. If there is a conflict between the Act, the regulations published 

at 7 CFR chapter IV, and the procedures as issued by FCIC, the order of priority is: (1) the Act; (2) the regulations; and (3) the 

procedures as issued by FCIC, with (1) controlling (2), etc. If there is a conflict between the policy provisions published at 7 

CFR part 457 and the administrative regulations published at 7 CFR part 400, the policy provisions published at 7 CFR part 

457 control. If a conflict exists among the policy provisions, the order of priority is: (1) the Catastrophic Risk Protection 

Endorsement, as applicable; (2) the Special Provisions; (3) the Commodity Exchange Price Provisions, as applicable; (4) the 

Crop Provisions; and (5) these Basic Provisions, with (1) controlling (2), etc. 

TERMS AND CONDITIONS 

BASIC PROVISIONS 

1. Definitions. 

Abandon - Failure to continue to care for the crop, 

providing care so insignificant as to provide no benefit to 

the crop, or failure to harvest in a timely manner, unless 

an insured cause of loss prevents you from properly caring 

for or harvesting the crop or causes damage to it to the 

extent that most producers of the crop on acreage with 

similar characteristics in the area would not normally 

further care for or harvest it. 

Acreage report - A report required by section 6 of these 

Basic Provisions that contains, in addition to other 

required information, your report of your share of all 

acreage of an insured crop in the county, whether 

insurable or not insurable. 

Acreage reporting date - The date contained in the 

Special Provisions or as provided in section 6 by which 

you are required to submit your acreage report. 

Act - The Federal Crop Insurance Act (7 U.S.C. 1501 et 

seq.). 

Actual Production History (APH) - A process used to 

determine production guarantees in accordance with 7 

CFR part 400, subpart (G). 

Actual yield - The yield per acre for a crop year calculated 

from the production records or claims for indemnities. The 

actual yield is determined by dividing total production 

(which includes harvested and appraised production) by 

planted acres. 

Actuarial documents - The information for the crop year 

which is available for public inspection in your agent’s 

office and published on RMA’s Web site and which shows 

available crop insurance policies, coverage levels, 

information needed to determine amounts of insurance, 

prices, premium rates, premium adjustment percentages, 

practices, particular types or varieties of the insurable 

crop, insurable acreage, and other related information 

regarding crop insurance in the county. 

Additional coverage - A level of coverage greater than 

catastrophic risk protection. 

Administrative fee - An amount you must pay for 

catastrophic risk protection, and additional coverage for 

each crop year as specified in section 7 and the 

Catastrophic Risk Protection Endorsement. 

Agricultural commodity - Any crop or other commodity 

produced, regardless of whether or not it is insurable. 

Agricultural experts - Persons who are employed by the 

Cooperative Extension System or the agricultural 

departments of universities, or other persons approved by 

FCIC, whose research or occupation is related to the 

specific crop or practice for which such expertise is 

sought. 

Annual crop - An agricultural commodity that normally 

must be planted each year. 

Application - The form required to be completed by you 

and accepted by us before insurance coverage will 

commence. This form must be completed and filed in your 

agent’s office not later than the sales closing date of the 

initial insurance year for each crop for which insurance 

coverage is requested. If cancellation or termination of 

insurance coverage occurs for any reason, including but 

not limited to indebtedness, suspension, debarment, 

disqualification, cancellation by you or us or violation of 

the controlled substance provisions of the Food Security 

Act of 1985, a new application must be filed for the crop. 

Insurance coverage will not be provided if you are 

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ineligible under the contract or under any Federal statute 

or regulation. 

Approved yield - The actual production history (APH) 

yield, calculated and approved by the verifier, used to 

determine the production guarantee by summing the 

yearly actual, assigned, adjusted or unadjusted 

transitional yields and dividing the sum by the number of 

yields contained in the database, which will always contain 

at least four yields. The database may contain up to 10 

consecutive crop years of actual or assigned yields. The 

approved yield may have yield exclusions elected under 

section 5, yield adjustments elected under section 36, 

revisions according to section 3, or other limitations 

according to FCIC approved procedures applied when 

calculating the approved yield. 

Area - Land surrounding the insured acreage with 

geographic characteristics, topography, soil types and 

climatic conditions similar to the insured acreage. 

Assignment of indemnity - A transfer of policy rights, 

made on our form, and effective when approved by us in 

writing, whereby you assign your right to an indemnity 

payment for the crop year only to creditors or other 

persons to whom you have a financial debt or other 

pecuniary obligation. 

Average yield - The yield calculated by totaling the yearly 

actual yields, assigned yields in accordance with sections 

3(f)(1) (failure to provide production report), 3(h)(1) 

(excessive yields), and 3(i) (second crop planted without 

double cropping history on prevented planted acreage), 

and adjusted or unadjusted transitional yields, and 

dividing the total by the number of yields contained in the 

database. 

Basic unit - All insurable acreage of the insured crop in 

the county on the date coverage begins for the crop year: 

(1) In which you have 100 percent crop share; or

(2) Which is owned by one person and operated by

another person on a share basis. (Example: If, in

addition to the land you own, you rent land from five

landlords, three on a crop share basis and two on a

cash basis, you would be entitled to four units; one

for each crop share lease and one that combines the

two cash leases and the land you own.) Land which

would otherwise be one unit may, in certain

instances, be divided according to guidelines

contained in section 34 of these Basic Provisions

and in the applicable Crop Provisions.

Beginning farmer or rancher – An individual who has not 

actively operated and managed a farm or ranch in any 

state, with an insurable interest in a crop or livestock as 

an owner-operator, landlord, tenant, or sharecropper for 

more than five crop years, as determined in accordance 

with FCIC procedures. Any crop year’s insurable interest 

may, at your election, be excluded if earned while under 

the age of 18, while in full-time military service of the 

United States, or while in post-secondary education, in 

accordance with FCIC procedures. A person other than 

an individual may be eligible for beginning farmer or 

rancher benefits if there is at least one individual 

substantial beneficial interest holder and all individual 

substantial beneficial interest holders qualify as a 

beginning farmer or rancher. 

Buffer zone - A parcel of land, as designated in your 

organic plan, that separates agricultural commodities 

grown under organic practices from agricultural 

commodities grown under non-organic practices, and

used to minimize the possibility of unintended contact by

prohibited substances or organisms. 

Cancellation date - The calendar date specified in the 

Crop Provisions on which coverage for the crop will 

automatically renew unless canceled in writing by either 

you or us or terminated in accordance with the policy 

terms. 

Catastrophic risk protection - The minimum level of

coverage offered by FCIC. Catastrophic risk protection is 

not available with revenue protection. 

Catastrophic Risk Protection Endorsement - The part 

of the crop insurance policy that contains provisions of 

insurance that are specific to catastrophic risk protection. 

Certified organic acreage - Acreage in the certified 

organic farming operation that has been certified by a

certifying agent as conforming to organic standards in 

accordance with 7 CFR part 205. 

Certifying agent - A private or governmental entity 

accredited by the USDA Secretary of Agriculture for the 

purpose of certifying a production, processing or handling 

operation as organic. 

Claim for indemnity - A claim made on our form that 

contains the information necessary to pay the indemnity, 

as specified in the applicable FCIC issued procedures, 

and complies with the requirements in section 14. 

Code of Federal Regulations (CFR) - The codification of 

general and permanent rules published in the Federal 

Register by the Executive departments and agencies of

the Federal Government. Rules published in the Federal 

Register by FCIC are contained in 7 CFR chapter IV. The 

full text of the CFR is available in electronic format at 

https://www.ecfr.gov/ or a successor Web site. 

Commodity Exchange Price Provisions (CEPP) – A 

part of the policy that is used for all crops for which 

revenue protection is available, regardless of whether you 

elect revenue protection or yield protection for such crops. 

This document includes the information necessary to 

derive the projected price and the harvest price for the 

insured crop, as applicable. 

Consent - Approval in writing by us allowing you to take a 

specific action. 

Contract - (See “policy”). 

Contract change date - The calendar date by which 

changes to the policy, if any, will be made available in 

accordance with section 4 of these Basic Provisions. 

Conventional farming practice - A system or process 

that is necessary to produce an agricultural commodity, 

excluding organic farming practices. 

Cooperative Extension System – A nationwide network 

consisting of a State office located at each State’s landgrant university, and local or regional offices. These 

offices are staffed by one or more agricultural experts, who 

work in cooperation with the Cooperative State Research, 

Education and Extension Service, and who provide 

information to agricultural producers and others. 

County - Any county, parish, or other political subdivision 

of a state shown on your accepted application, including 

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acreage in a field that extends into an adjoining county if 

the county boundary is not readily discernible. 

Cover crop - A crop generally recognized by agricultural 

experts as agronomically sound for the area for erosion 

control or other purposes related to conservation or soil 

improvement. A cover crop may be considered to be a 

second crop (see the definition of “second crop”). 

Coverage - The insurance provided by this policy, against 

insured loss of production or value, by unit as shown on 

your summary of coverage. 

Coverage begins, date - The calendar date insurance 

begins on the insured crop, as contained in the Crop 

Provisions, or the date planting begins on the unit (see 

section 11 of these Basic Provisions for specific provisions 

relating to prevented planting). 

Crop Provisions - The part of the policy that contains the 

specific provisions of insurance for each insured crop. 

Crop year - The period within which the insured crop is 

normally grown, regardless of whether or not it is actually 

grown, and designated by the calendar year in which the 

insured crop is normally harvested, unless otherwise 

specified in the Crop Provisions. 

Damage - Injury, deterioration, or loss of production of the 

insured crop due to insured or uninsured causes. 

Days - Calendar days. 

Deductible - The amount determined by subtracting the 

coverage level percentage you choose from 100 percent. 

For example, if you elected a 65 percent coverage level, 

your deductible would be 35 percent (100% - 65% = 35%). 

Delinquent debt - Has the same meaning as the term 

defined in 7 CFR part 400, subpart U. 

Disinterested third party - A person that does not have 

any familial relationship (parents, brothers, sisters, 

children, spouse, grandchildren, aunts, uncles, nieces, 

nephews, first cousins, or grandparents, related by blood, 

adoption or marriage, are considered to have a familial 

relationship) with you or who will not benefit financially 

from the sale of the insured crop. Persons who are 

authorized to conduct quality analysis in accordance with 

the Crop Provisions are considered disinterested third 

parties unless there is a familial relationship. 

Double crop - Producing two or more crops for harvest 

on the same acreage in the same crop year. 

Earliest planting date - The initial planting date contained 

in the Special Provisions, which is the earliest date you 

may plant an insured agricultural commodity and qualify 

for a replanting payment if such payments are authorized 

by the Crop Provisions. 

End of insurance period, date of - The date upon which 

your crop insurance coverage ceases for the crop year 

(see Crop Provisions and section 11). 

Enterprise unit - All insurable acreage of the same 

insured crop or all insurable irrigated or non-irrigated 

acreage of the same insured crop in the county in which 

you have a share on the date coverage begins for the crop 

year, provided the requirements of section 34 are met. 

Field - All acreage of tillable land within a natural or 

artificial boundary (e.g., roads, waterways, fences, etc.). 

Different planting patterns or planting different crops do 

not create separate fields. 

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 or amount of insurance per acre. 

First insured crop - With respect to a single crop year 

and any specific crop acreage, the first instance that an 

agricultural commodity is planted for harvest or prevented 

from being planted and is insured under the authority of 

the Act. For example, if winter wheat that is not insured is 

planted on acreage that is later planted to soybeans that 

are insured, the first insured crop would be soybeans. If 

the winter wheat was insured, it would be the first insured 

crop. 

FSA - The Farm Service Agency, an agency of the USDA, 

or a successor agency. 

FSA farm serial number - The number assigned to the 

farm by the local FSA office. 

Generally recognized - When agricultural experts or 

organic agricultural experts, as applicable, are aware of 

the production method or practice and there is no genuine 

dispute regarding whether the production method or 

practice allows the crop to make normal progress toward 

maturity and produce at least the yield used to determine 

the production guarantee or amount of insurance. 

Good farming practices - The production methods 

utilized to produce the insured crop and allow it to make 

normal progress toward maturity and produce at least the 

yield used to determine the production guarantee or 

amount of insurance, including any adjustments for late 

planted acreage, which are: (1) For conventional or 

sustainable farming practices, those generally recognized 

by agricultural experts for the area; or (2) for organic 

farming practices, those generally recognized by organic 

agricultural experts for the area or contained in the organic 

plan. We may, or you may request us to, contact FCIC to 

determine whether or not production methods will be 

considered to be “good farming practices.” 

Harvest price - A price determined in accordance with the 

Commodity Exchange Price Provisions and used to value 

production to count for revenue protection. 

Harvest price exclusion - Revenue protection with the 

use of the harvest price excluded when determining your 

revenue protection guarantee. This election is continuous 

unless canceled by the cancellation date. 

Household - A domestic establishment including the 

members of a family (parents, brothers, sisters, children, 

spouse, grandchildren, aunts, uncles, nieces, nephews, 

first cousins, or grandparents, related by blood, adoption 

or marriage, are considered to be family members) and 

others who live under the same roof. 

Insurable interest - Your percentage of the insured crop 

that is at financial risk. 

Insurable loss - Damage for which coverage is provided 

under the terms of your policy, and for which you accept 

an indemnity payment. 

Insured - The named person as shown on the application 

accepted by us. This term does not extend to any other 

person having a share or interest in the crop (for example, 

a partnership, landlord, or any other person) unless 

specifically indicated on the accepted application. 

Insured crop - The crop in the county for which coverage 

is available under your policy as shown on the application 

accepted by us. 

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Intended acreage report - A report of the acreage you 

intend to plant, by crop, for the current crop year and used 

solely for the purpose of establishing eligible prevented 

planting acreage, as required in section 17. 

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 or amount of insurance on the 

irrigated acreage planted to the insured crop. 

Late planted - Acreage initially planted to the insured crop 

after the final planting date. 

Late planting period - The period that begins the day 

after the final planting date for the insured crop and ends 

25 days after the final planting date, unless otherwise 

specified in the Crop Provisions or Special Provisions. 

Liability - Your total amount of insurance, value of your 

production guarantee, or revenue protection guarantee for

the unit determined in accordance with the Settlement of 

Claim provisions of the applicable Crop Provisions. 

Limited resource farmer - Has the same meaning as the 

term defined by USDA at 

https://lrftool.sc.egov.usda.gov/LRP_Definition.aspx. 

Native sod - Acreage that has no record of being tilled 

(determined in accordance with information collected and 

maintained by an agency of the USDA or other verifiable 

records that you provide and are acceptable to us) for the 

production of an annual crop on or before February 7, 

2014, and on which the plant cover is composed 

principally of native grasses, grass-like plants, forbs, or 

shrubs suitable for grazing and browsing. 

Negligence - The failure to use such care as a reasonably 

prudent and careful person would use under similar 

circumstances. 

Non-contiguous - Acreage of an insured crop that is 

separated from other acreage of the same insured crop by 

land that is neither owned by you nor rented by you for 

cash or a crop share. However, acreage separated by 

only a public or private right-of-way, waterway, or an 

irrigation canal will be considered as contiguous. Offset -

The act of deducting one amount from another amount. 

Organic agricultural experts - Persons who are 

employed by the following organizations: Appropriate 

Technology Transfer for Rural Areas, Sustainable 

Agriculture Research and Education or the Cooperative 

Extension System, the agricultural departments of 

universities, or other persons approved by FCIC, whose 

research or occupation is related to the specific organic 

crop or practice for which such expertise is sought. 

Organic crop - An agricultural commodity that is 

organically produced consistent with section 2103 of the 

Organic Foods Production Act of 1990 (7 U.S.C. 6502). 

Organic farming practice - A system of plant production 

practices used to produce an organic crop that is 

approved by a certifying agent in accordance with 7 CFR 

part 205. 

Organic plan - A written plan, in accordance with the 

National Organic Program published in 7 CFR part 205, 

that describes the organic farming practices that you and 

a certifying agent agree upon annually or at such other 

times as prescribed by the certifying agent. 

Organic standards - Standards in accordance with the 

Organic Foods Production Act of 1990 (7 U.S.C. 6501 et 

seq.) and 7 CFR part 205. 

Perennial crop - A plant, bush, tree or vine crop that has 

a life span of more than one year. 

Person - An individual, partnership, association, 

corporation, estate, trust, or other legal entity, and 

wherever applicable, a State or a political subdivision or 

agency of a State. “Person” does not include the United 

States Government or any agency thereof. 

Planted acreage - Land in which seed, plants, or trees 

have been placed, 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. 

Policy - The agreement between you and us to insure an 

agricultural commodity and consisting of the accepted 

application, these Basic Provisions, the Crop Provisions, 

the Special Provisions, the Commodity Exchange Price 

Provisions, if applicable, other applicable endorsements 

or options, the actuarial documents for the insured 

agricultural commodity, the Catastrophic Risk Protection 

Endorsement, if applicable, and the applicable regulations 

published in 7 CFR chapter IV. Insurance for each 

agricultural commodity in each county will constitute a 

separate policy. 

Practical to replant - Our determination, after loss or 

damage to the insured crop, based on all factors, 

including, but not limited to moisture availability, marketing 

window, condition of the field, and time to crop maturity, 

that replanting the insured crop will allow the crop to attain 

maturity prior to the calendar date for the end of the 

insurance period. It will be considered to be practical to 

replant within or prior to the late planting period, or on or 

prior to the final planting date if no late planting period is 

applicable, unless we determine it is physically impossible 

to replant the acreage or there is no chance of seed 

germination, emergence, and formation of a healthy plant. 

Premium billing date - The earliest date upon which you 

will be billed for insurance coverage based on your 

acreage report. The premium billing date is contained in 

the Special Provisions. 

Prevented planting - Failure to plant the insured crop by 

the final planting date designated in the Special Provisions 

for the insured crop in the county, or within any applicable 

late planting period, due to an insured cause of loss that 

is general to the surrounding area and that prevents other 

producers from planting acreage with similar 

characteristics. Failure to plant because of uninsured 

causes such as lack of proper equipment or labor to plant 

acreage, or use of a particular production method, is not 

considered prevented planting. 

Price election - The amounts contained in the Special 

Provisions, or in an addendum thereto, that is the value 

per pound, bushel, ton, carton, or other applicable unit of 

measure for the purposes of determining premium and 

indemnity under the policy. A price election is not 

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applicable for crops for which revenue protection is 

available. 

Production guarantee (per acre) - The number of 

pounds, bushels, tons, cartons, or other applicable units 

of measure determined by multiplying the approved yield 

per acre by the coverage level percentage you elect. 

Production report - A written record showing your annual 

production and used by us to determine your yield for 

insurance purposes in accordance with section 3. The 

report contains yield information for previous years, 

including planted acreage and production. This report 

must be supported by written verifiable records from a 

warehouseman or buyer of the insured crop, by 

measurement of farm-stored production, or by other 

records of production approved by us on an individual 

case basis in accordance with FCIC approved 

procedures. 

Prohibited substance - Any biological, chemical, or other 

agent that is prohibited from use or is not included in the 

organic standards for use on any certified organic, 

transitional or buffer zone acreage. Lists of such 

substances are contained at 7 CFR part 205. 

Projected price - The price for each crop determined in 

accordance with the Commodity Exchange Price 

Provisions. The applicable projected price is used for 

each crop for which revenue protection is available, 

regardless of whether you elect to obtain revenue 

protection or yield protection for such crop. 

Replanted crop - The same agricultural commodity 

replanted on the same acreage as the first insured crop 

for harvest in the same crop year if the replanting is 

specifically made optional by the policy and you elect to 

replant the crop and insure it under the policy covering the 

first insured crop, or replanting is required by the policy. 

Replanting - Performing the cultural practices necessary 

to prepare the land to replace the seed or plants of the 

damaged or destroyed insured crop and then replacing 

the seed or plants of the same crop in the same insured 

acreage. The same crop does not necessarily mean the 

same type or variety of the crop unless different types or 

varieties constitute separate crops or it is otherwise 

specified in the policy. 

Representative sample - Portions of the insured crop 

that must remain in the field for examination and review by 

our loss adjuster when making a crop appraisal, as 

specified in the Crop Provisions. In certain instances we 

may allow you to harvest the crop and require only that 

samples of the crop residue be left in the field. 

Revenue protection - A plan of insurance that provides 

protection against loss of revenue due to a production 

loss, price decline or increase, or a combination of both. 

If the harvest price exclusion is elected, the insurance 

coverage provides protection only against loss of revenue 

due to a production loss, price decline, or a combination 

of both. 

Revenue protection guarantee (per acre) - For revenue 

protection only, the amount determined by multiplying the 

production guarantee (per acre) by the greater of your 

projected price or your harvest price. If the harvest price 

exclusion is elected, the production guarantee (per acre) 

is only multiplied by your projected price. 

RMA’s Web site - A Web site hosted by RMA and located 

at http://www.rma.usda.gov/ or a successor Web site. 

Sales closing date - A date contained in the Special 

Provisions by which an application must be filed. The last 

date by which you may change your crop insurance 

coverage for a crop year. 

Second crop - With respect to a single crop year, the next 

occurrence of planting any agricultural commodity for 

harvest following a first insured crop on the same acreage. 

The second crop may be the same or a different 

agricultural commodity as the first insured crop, except the 

term does not include a replanted crop. A cover crop, 

planted after a first insured crop and planted for the 

purpose of haying, grazing or otherwise harvesting in any 

manner or that is hayed or grazed during the crop year, or 

that is otherwise harvested is considered to be a second 

crop. A cover crop that is covered by FSA’s noninsured 

crop disaster assistance program (NAP) or receives other 

USDA benefits associated with forage crops will be 

considered as planted for the purpose of haying, grazing 

or otherwise harvesting. A crop meeting the conditions 

stated herein will be considered to be a second crop 

regardless of whether or not it is insured. Notwithstanding 

the references to haying and grazing as harvesting in 

these Basic Provisions, for the purpose of determining the 

end of the insurance period, harvest of the crop will be as 

defined in the applicable Crop Provisions. 

Section - For the purposes of unit structure, a unit of 

measure under a rectangular survey system describing a 

tract of land usually one mile square and usually 

containing approximately 640 acres. 

Share - Your insurable interest in the insured crop as an 

owner, operator, or tenant at the time insurance attaches. 

However, only for the purpose of determining the amount 

of indemnity, your share will not exceed your share at the 

earlier of the time of loss or the beginning of harvest. 

Special Provisions - The part of the policy that contains 

specific provisions of insurance for each insured crop that 

may vary by geographic area. 

State - The state shown on your accepted application. 

Substantial beneficial interest - An interest held by any 

person of at least 10 percent in you (e.g., there are two 

partnerships that each have a 50 percent interest in you 

and each partnership is made up of two individuals, each 

with a 50 percent share in the partnership. In this case, 

each individual would be considered to have a 25 percent 

interest in you, and both the partnerships and the 

individuals would have a substantial beneficial interest in 

you. The spouses of the individuals would not be 

considered to have a substantial beneficial interest unless 

the spouse was one of the individuals that made up the 

partnership. However, if each partnership is made up of 

six individuals with equal interests, then each would only 

have an 8.33 percent interest in you and although the 

partnership would still have a substantial beneficial 

interest in you, the individuals would not for the purposes 

of reporting in section 2). The spouse of any individual 

applicant or individual insured will be presumed to have a 

substantial beneficial interest in the applicant or insured 

unless the spouses can prove they are legally separated 

or otherwise legally separate under the applicable State 

dissolution of marriage laws. Any child of an individual 

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applicant or individual insured will not be considered to 

have a substantial beneficial interest in the applicant or 

insured unless the child has a separate legal interest in 

such person. 

Summary of coverage - Our statement to you, based 

upon your acreage report, specifying the insured crop and 

the guarantee or amount of insurance coverage provided 

by unit. 

Sustainable farming practice - A system or process for 

producing an agricultural commodity, excluding organic 

farming practices, that is necessary to produce the crop 

and is generally recognized by agricultural experts for the 

area to conserve or enhance natural resources and the 

environment. 

Tenant - A person who rents land from another person for 

a share of the crop or a share of the proceeds of the crop 

(see the definition of “share” above). 

Termination date - The calendar date contained in the 

Crop Provisions upon which your insurance ceases to be 

in effect because of nonpayment of any amount due us 

under the policy, including premium. 

Tilled - The termination of existing plants by plowing, 

disking, burning, application of chemicals, or by other 

means to prepare acreage for the production of an annual 

crop. 

Timely planted - Planted on or before the final planting 

date designated in the Special Provisions for the insured 

crop in the county. 

Transitional acreage - Acreage on which organic farming 

practices are being followed that does not yet qualify to be 

designated as organic acreage. 

USDA - United States Department of Agriculture. 

Verifiable records - Has the same meaning as the term 

defined in 7 CFR part 400, subpart G. 

Void - When the policy is considered not to have existed 

for a crop year. 

Whole-farm unit - All insurable acreage of all the insured 

crops planted in the county in which you have a share on 

the date coverage begins for each crop for the crop year 

and for which the whole-farm unit structure is available in 

accordance with section 34. 

Written agreement - A document that alters designated 

terms of a policy as authorized under these Basic 

Provisions, the Crop Provisions, or the Special Provisions 

for the insured crop (see section 18). 

Yield protection - A plan of insurance that only provides 

protection against a production loss and is available only 

for crops for which revenue protection is available. 

Yield protection guarantee (per acre) - When yield 

protection is selected for a crop that has revenue 

protection available, the amount determined by multiplying 

the production guarantee by your projected price. 

2. Life of Policy, Cancellation, and Termination. 

(a) This is a continuous policy and will remain in effect for 

each crop year following the acceptance of the 

original application until canceled by you in 

accordance with the terms of the policy or terminated 

by operation of the terms of the policy or by us. In 

accordance with section 4, FCIC may change the 

coverage provided from year to year. 

(b) With respect to your application for insurance: 

(1) You must include your social security number 

(SSN) if you are an individual (if you are an 

individual applicant operating as a business, you 

may provide an employer identification number 

(EIN) but you must also provide your SSN); or 

(2) You must include your EIN if you are a person 

other than an individual; 

(3) In addition to the requirements of section 2(b)(1) 

or (2), you must include the following for all 

persons who have a substantial beneficial 

interest in you: 

(i) The SSN for individuals; or 

(ii) The EIN for persons other than individuals 

and the SSNs for all individuals that 

comprise the person with the EIN if such 

individuals also have a substantial 

beneficial interest in you; 

(4) You must include: 

(i) Your election of revenue protection, yield 

protection, or other available plan of 

insurance; coverage level; percentage of 

price election or percentage of projected 

price, as applicable; crop, type, variety, or 

class; and any other material information 

required on the application to insure the 

crop; and 

(ii) All the information required in section 

2(b)(4)(i) or your application will not be 

accepted and no coverage will be provided; 

(5) Your application will not be accepted and no 

insurance will be provided for the year of 

application if the application does not contain 

your SSN or EIN. If your application contains an 

incorrect SSN or EIN for you, your application will 

be considered not to have been accepted, no 

insurance will be provided for the year of 

application and for any subsequent crop years, as 

applicable, and such policies will be void if: 

(i) Such number is not corrected by you; or 

(ii) You correct the SSN or EIN but: 

(A) You cannot prove that any error was 

inadvertent (Simply stating the error 

was inadvertent is not sufficient to 

prove the error was inadvertent); or 

(B) It is determined that the incorrect 

number would have allowed you to 

obtain disproportionate benefits under 

the crop insurance program, you are 

determined to be ineligible for 

insurance or you could avoid an 

obligation or requirement under any 

State or Federal law; 

(6) With respect to persons with a substantial 

beneficial interest in you: 

(i) The insurance coverage for all crops 

included on your application will be reduced 

proportionately by the percentage interest in 

you of persons with a substantial beneficial 

interest in you (presumed to be 50 percent 

for spouses of individuals) if the SSNs or 

EINs of such persons are included on your 

application, the SSNs or EINs are correct, 

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and the persons with a substantial beneficial 

interest in you are ineligible for insurance; 

(ii) Your policies for all crops included on your 

application, and for all applicable crop 

years, will be void if the SSN or EIN of any 

person with a substantial beneficial interest 

in you is incorrect or is not included on your 

application and: 

(A) Such number is not corrected or 

provided by you, as applicable; 

(B) You cannot prove that any error or 

omission was inadvertent (Simply 

stating the error or omission was 

inadvertent is not sufficient to prove the 

error or omission was inadvertent); or 

(C) Even after the correct SSN or EIN is 

provided by you, it is determined that 

the incorrect or omitted SSN or EIN 

would have allowed you to obtain 

disproportionate benefits under the 

crop insurance program, the person 

with a substantial beneficial interest in 

you is determined to be ineligible for 

insurance, or you or the person with a 

substantial beneficial interest in you 

could avoid an obligation or 

requirement under any State or Federal 

law; or 

(iii) Except as provided in sections 2(b)(6)(ii)(B) 

and (C), your policies will not be voided if 

you subsequently provide the correct SSN 

or EIN for persons with a substantial 

beneficial interest in you and the persons 

are eligible for insurance; 

(7) When any of your policies are void under sections 

2(b)(5) or (6): 

(i) You must repay any indemnity, prevented 

planting payment or replant payment that 

may have been paid for all applicable crops 

and crop years; 

(ii) Even though the policies are void, you will 

still be required to pay an amount equal to 

20 percent of the premium that you would 

otherwise be required to pay; and 

(iii) If you previously paid premium or 

administrative fees, any amount in excess 

of the amount required in section 2(b)(7)(ii) 

will be returned to you; 

(8) Notwithstanding any of the provisions in this 

section, if you certify to an incorrect SSN or EIN, 

or receive an indemnity, prevented planting 

payment or replant payment and the SSN or EIN 

was not correct, you may be subject to civil, 

criminal or administrative sanctions; 

(9) If any of the information regarding persons with a 

substantial beneficial interest in you changes 

after the sales closing date for the previous crop 

year, you must revise your application by the 

sales closing date for the current crop year to 

reflect the correct information. However, if such 

information changed less than 30 days before the 

sales closing date for the current crop year, you 

must revise your application by the sales closing 

date for the next crop year. If you fail to provide 

the required revisions, the provisions in section 

2(b)(6) will apply; and 

(10)If you are, or a person with a substantial 

beneficial interest in you is, not eligible to obtain 

a SSN or EIN, whichever is required, you must 

request an assigned number for the purposes of 

this policy from us: 

(i) A number will be provided only if you can 

demonstrate you are, or a person with a 

substantial beneficial interest in you is, 

eligible to receive Federal benefits; 

(ii) If a number cannot be provided for you in 

accordance with section 2(b)(10)(i), your 

application will not be accepted; or 

(iii) If a number cannot be provided for any 

person with a substantial beneficial interest 

in you in accordance with section 

2(b)(10)(i), the amount of coverage for all 

crops on the application will be reduced 

proportionately by the percentage interest of 

such person in you. 

(c) After acceptance of the application, you may not 

cancel this policy for the initial crop year. Thereafter, 

the policy will continue in force for each succeeding 

crop year unless canceled or terminated as provided 

below. 

(d) Either you or we may cancel this policy after the initial 

crop year by providing written notice to the other on or 

before the cancellation date shown in the Crop 

Provisions. 

(e) Any amount due to us for any policy authorized under 

the Act will be offset from any indemnity or prevented 

planting payment due you for this or any other crop 

insured with us under the authority of the Act. 

(1) Even if your claim has not yet been paid, you 

must still pay the premium and administrative fee 

on or before the termination date for you to 

remain eligible for insurance. 

(2) If we offset any amount due us from an indemnity 

or prevented planting payment owed to you, the 

date of payment for the purpose of determining 

whether you have a delinquent debt will be the 

date that you submit the claim for indemnity in 

accordance with section 14(e) (Your Duties). 

(f) 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(f)(2). 

(1) With respect to ineligibility: 

(i) Ineligibility for crop insurance will be 

effective on: 

(A) The date that a policy was terminated in 

accordance with section 2(f)(2) for the 

crop for which you failed to pay 

premium, an administrative fee, or any 

related interest owed, as applicable; 

(B) The payment due date contained in any 

notification of indebtedness for any 

overpaid indemnity, prevented planting 

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(ii) 

payment or replanting payment, if you 

fail to pay the amount owed, including 

any related interest owed, as 

applicable, by such due date; or 

(C) 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. 

If you are ineligible and a policy has been 

terminated in accordance with section 

termination date immediately following 

the date you become ineligible; or 

(D) 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 

(2) Wit

(i) 

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). 

h respect to termination: 

Termination will be effective on: 

(A) For a policy with unpaid administrative 

fees or premiums, the termination date 

immediately subsequent to the billing 

date for the crop year (For policies for 

which the sales closing date is prior to 

the termination date, such policies will 

terminate for the current crop year even 

if insurance attached prior to the 

termination date. Such termination will 

be considered effective as of the sales 

closing date and no insurance will be 

considered to have attached for the 

crop year and no indemnity, prevented 

planting or replant payment will be 

owed); 

(B) For a policy with other amounts due, the 

termination date immediately following 

the date you have a delinquent debt 

(For policies for which the sales closing 

date is prior to the termination date, 

such policies will terminate for the 

current crop year even if insurance 

attached prior to the termination date. 

Such termination will be considered 

(ii) 

(iii) 

you fail to make a payment on 

November 15, 2011, your policy will 

terminate on November 30, 2010, for 

the 2011 crop year). 

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. 

Once the policy is terminated, it cannot be 

reinstated for the current crop year unless: 

(A) The termination was in error; 

(B) The Administrator of the Risk 

Management Agency, at his or her sole 

discretion, determines that the following 

are met: 

(1) In accordance with 7 CFR part 400, 

subpart U, and FCIC issued 

procedures, you provide 

documentation that your failure to 

pay your debt is due to an 

unforeseen or unavoidable event 

or an extraordinary weather event 

that created an impossible situation 

for you to make timely payment; 

(2) You remit full payment of the 

delinquent debt owed to us or FCIC 

with your request submitted in 

accordance with section 

2(f)(2)(iii)(B)(3); and 

(3) You submit a written request for 

reinstatement of your policy to us 

no later than 60 days after the 

termination date or the missed 

payment date of a previously 

executed written payment 

agreement, or in the case of 

overpaid indemnity or any amount 

that became due after the 

effective as of the sales closing date 

and no insurance will be considered to 

have attached for the crop year and no 

indemnity, prevented planting or replant 

payment will be owed); 

(C) For all other policies that are issued by 

us under the authority of the Act, the 

termination date that coincides with the 

termination date, the due date 

specified in the notice to you of the 

amount due, if applicable. 

(i) If authorization for 

reinstatement, as defined in 7 

CFR part 400, subpart U, is 

granted, your policies will be 

reinstated effective at the 

termination date for the policy with the 

delinquent debt or, if there is no 

coincidental termination date, the 

beginning of the crop year for 

which you were determined 

ineligible, and you will be 

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entitled to all applicable beginning of the crop year for which 

benefits under such policies, you were determined ineligible, 

provided you meet all and you will be entitled to all 

eligibility requirements and applicable benefits under such 

comply with the terms of the policies, provided you meet all 

policy; and eligibility requirements and comply 

(ii) There is no evidence of fraud with the terms of the policy; and 

or misrepresentation; or (5) There is no evidence of fraud or 

(C) We determine that, in accordance with misrepresentation. 

7 CFR part 400, subpart U, and FCIC (iv) A determination made under: 

issued procedures, the following are (A) Section 2(f)(2)(iii)(B) may only be 

met: appealed to the National Appeals 

(1) You can demonstrate: Division in accordance with 7 CFR part 

(i) You made timely payment for 11; and 

the amount of premium owed (B) Section 2(f)(2)(iii)(C) may only be 

but you inadvertently omitted appealed in accordance with section 

some small amount, such as 20. 

the most recent month’s (3) To regain eligibility, you must: 

interest or a small (i) Repay the delinquent debt in full; 

administrative fee; (ii) Execute a written payment agreement and 

(ii) The amount of the payment make payments in accordance with the 

was clearly transposed from agreement (We will not enter into a written 

the amount that was payment agreement with you if you have 

otherwise due (For example, previously failed to make a scheduled 

you owed $892 but you paid payment under the terms of any other 

$829); or payment agreement with us or any other 

(iii) You timely made the full insurance provider); or 

payment of the amount owed (iii) Have your debts discharged in bankruptcy. 

but the delivery of that (4) After you become eligible for crop insurance, if 

payment was delayed, and you want to obtain coverage for your crops, you 

was postmarked no more must submit a new application on or before the 

than seven calendar days sales closing date for the crop (Since applications 

after the termination date or for crop insurance cannot be accepted after the 

the missed payment date of a sales closing date, if you make any payment after 

previously executed written the sales closing date, you cannot apply for 

payment agreement, or in the insurance until the next crop year). 

case of overpaid indemnity or (5) For example, for the 2011 crop year, if crop A, 

any amount that became due with a termination date of October 31, 2010, and 

after the termination date, the crop B, with a termination date of March 15, 2011, 

due date specified in a notice are insured and you do not pay the premium for 

to you of an amount due, as crop A by the termination date, you are ineligible 

applicable. for crop insurance as of October 31, 2010, and 

(2) You remit full payment of the crop A’s policy is terminated as of that date. Crop 

delinquent debt owed to us; and B’s policy does not terminate until March 15, 

(3) You submit a written request for 2011, and an indemnity for the 2010 crop year 

reinstatement of your policy to us in may still be owed. If you enter into a written 

accordance with 7 CFR part 400, payment agreement on September 25, 2011, the 

subpart U, and applicable earliest date by which you can obtain crop 

procedures no later than 30 days insurance for crop A is to apply for crop insurance 

after the termination date or the by the October 31, 2011, sales closing date and 

missed payment date of a for crop B is to apply for crop insurance by the 

previously executed written March 15, 2012, sales closing date. If you fail to 

payment agreement, or in the case make a payment that was scheduled to be made 

of overpaid indemnity or any on April 1, 2012, your policy will terminate as of 

amount that became due after the October 31, 2011, for crop A, and March 15, 

termination date, the due date 2012, for crop B, and no indemnity, prevented 

specified in the notice to you of the planting payment or replant payment will be due 

amount due, if applicable; and for that crop year for either crop. You will not be 

(4) If authorization for reinstatement, eligible to apply for crop insurance for any crop 

as defined in 7 CFR part 400, until after the amounts owed are paid in full or you 

subpart U, is granted, your policies have your debts discharged in bankruptcy. 

will be reinstated effective at the 

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(6) If you are determined to be ineligible under (ii) On or after the cancellation date, the policy 

section 2(f), persons with a substantial beneficial will continue in effect through the crop year 

interest in you may also be ineligible until you immediately following the cancellation date 

become eligible again. and be automatically canceled as of the 

(g) In cases where there has been a death, cancellation date immediately following the 

disappearance, judicially declared incompetence, or end of the insurance period for the crop 

dissolution of any insured person: year, unless canceled by the cancellation 

(1) If any married individual insured dies, disappears, date prior to the start of the insurance 

or is judicially declared incompetent, the named period: 

insured on the policy will automatically convert to (A) A new application for insurance must be 

the name of the spouse if: submitted prior to the sales closing date 

(i) The spouse was included on the policy as for coverage for the subsequent crop 

having a substantial beneficial interest in the year; and 

named insured; and (B) Any indemnity, replant payment or 

(ii) The spouse has a share of the crop. prevented planting payment will be paid 

(2) The provisions in section 2(g)(3) will be to the person or persons determined to 

applicable if: be beneficially entitled to the payment 

(i) Any partner, member, shareholder, etc., of and such person or persons must 

an insured entity dies, disappears, or is comply with all policy provisions and 

judicially declared incompetent, and such pay the premium. 

event automatically dissolves the entity; or (5) If section 2(g)(2) or (4) applies, a remaining 

(ii) An individual, whose estate is left to a member of the insured person or the beneficiary 

beneficiary other than a spouse or left to the is required to report to us the death, 

spouse and the criteria in section 2(g)(1) are disappearance, judicial incompetence, or other 

not met, dies, disappears, or is judicially event that causes dissolution not later than the 

declared incompetent. next cancellation date, except if section 2(g)(3)(ii) 

(3) If section 2(g)(2) applies and the death, applies, notice must be provided by the 

disappearance, or judicially declared cancellation date for the next crop year. If notice 

incompetence occurred: is not provided timely, the provisions of section 

(i) More than 30 days before the cancellation 2(g)(2) or (4) will apply retroactive to the date 

date, the policy is automatically canceled as such notice should have been provided and any 

of the cancellation date and a new payments made after the date the policy should 

application must be submitted; or have been canceled must be returned. 

(ii) Thirty days or less before the cancellation (h) We may cancel your policy if no premium is earned 

date, or after the cancellation date, the for 3 consecutive years. 

policy will continue in effect through the crop (i) The cancellation and termination dates are contained 

year immediately following the cancellation in the Crop Provisions. 

date and be automatically canceled as of (j) When obtaining catastrophic, or additional coverage, 

the cancellation date immediately following you must provide information regarding crop 

the end of the insurance period for the crop insurance coverage on any crop previously obtained 

year, unless canceled by the cancellation at any other local FSA office or from an approved 

date prior to the start of the insurance insurance provider, including the date such insurance 

period: was obtained and the amount of the administrative 

(A) A new application for insurance must be fee. 

submitted prior to the sales closing date (k) Any person may sign any document relative to crop 

for coverage for the subsequent crop insurance coverage on behalf of any other person 

year; and covered by such a policy, provided that the person 

(B) Any indemnity, replant payment or has a properly executed power of attorney or such 

prevented planting payment will be paid other legally sufficient document authorizing such 

to the person or persons determined to person to sign. You are still responsible for the 

be beneficially entitled to the payment accuracy of all information provided on your behalf 

and such person or persons must and may be subject to the consequences in section 

comply with all policy provisions and 6(g), and any other applicable consequences, if any 

pay the premium. information has been misreported. 

(4) If any insured entity is dissolved for reasons other 

than death, disappearance, or judicially declared 

3. Insurance Guarantees, Coverage Levels, and Prices. 

(a) Unless adjusted or limited in accordance with your 

incompetence: policy, the production guarantee or amount of 

(i) Before the cancellation date, the policy is insurance, coverage level, and price at which an 

automatically canceled as of the indemnity will be determined for each unit will be 

cancellation date and a new application those used to calculate your summary of coverage for 

must be submitted; or each crop year. 

(b) With respect to the insurance choices: 

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(1) For all acreage of the insured crop in the county, (B) If the Crop Provisions allow the option 

unless one of the conditions in section 3(b)(2) to separately insure individual crop 

exists, you must select the same: 

(i) Plan of insurance (e.g., yield protection, 

types or varieties, and the actuarial 

documents provide for separate 

revenue protection, actual production coverage, you may select coverage 

history, amount of insurance, etc.); levels by irrigated and non-irrigated 

(ii) Level of coverage (all catastrophic risk practice for each separate type or 

protection or the same level of additional variety. 

coverage); and 

(iii) Percentage of the available price election, 

(c) With respect to revenue protection, if available for the 

crop: 

or projected price for yield protection. For (1) You may change to another plan of insurance and 

revenue protection, the percentage of price change your coverage level or elect the harvest 

is specified in section 3(c)(2). If different price exclusion by giving written notice to us not 

prices are provided by type or variety, later than the sales closing date for the insured 

insurance will be based on the price 

provided for each type or variety and the 

crop; 

(2) Your projected price and harvest price will be 100 

same price percentage will apply to all types percent of the projected price and harvest price 

or varieties. issued by FCIC; 

(2) You do not have to select the same plan of (3) If the harvest price exclusion is: 

insurance, level of coverage or percentage of (i) Not elected, your projected price is used to 

available price election or projected price if: 

(i) The applicable Crop Provisions allow you 

initially determine the revenue protection 

guarantee (per acre), and if the harvest 

the option to separately insure individual price is greater than the projected price, the 

crop types or varieties. In this case, each revenue protection guarantee (per acre) will 

individual type or variety insured by you will be recomputed using your harvest price; or 

be subject to separate administrative fees. (ii) Elected, your projected price is used to 

For example, if two grape varieties in 

California are insured under the 

compute your revenue protection guarantee 

(per acre); 

Catastrophic Risk Protection Endorsement (4) Your projected price is used to calculate your 

and two varieties are insured under an premium, any replant payment, and any 

additional coverage policy, a separate prevented planting payment; and 

administrative fee will be charged for each (5) If the projected price or harvest price cannot be 

of the four varieties; or 

(ii) You have additional coverage for the crop in 

calculated for the current crop year under the 

provisions contained in the Commodity Exchange 

the county and the acreage has been Price Provisions: 

designated as “high-risk” by FCIC. In such (i) For the projected price: 

case, you will be able to exclude coverage (A) Revenue protection will not be provided 

for the high-risk land under the additional and you will automatically be covered 

coverage policy and insure such acreage 

under a separate Catastrophic Risk 

under the yield protection plan of 

insurance for the current crop year 

Protection Endorsement, provided the unless you cancel your coverage by the 

Catastrophic Risk Protection Endorsement cancellation date or change your plan of 

is obtained from the same insurance insurance by the sales closing date; 

provider from which the additional coverage (B) Notice will be provided on RMA’s Web 

was obtained. If you have revenue 

protection and exclude high-risk land, the 

site by the date specified in the 

applicable projected price definition 

catastrophic risk protection coverage will be contained in the Commodity Exchange 

yield protection only for the excluded high- Price Provisions; 

risk land. (C) The projected price will be determined 

(iii) You have additional coverage for the crop in by FCIC and will be released by the 

the county, and the actuarial documents 

provide for separate coverage by irrigated 

date specified in the applicable 

projected price definition contained in 

and non-irrigated practices for the crop. the Commodity Exchange Price 

(A) You may select one coverage level for Provisions; and 

all irrigated acreage and one coverage (D) Your coverage will automatically revert 

level for all non-irrigated acreage. For to revenue protection for the next crop 

example: you may choose a 65 percent 

coverage level for all irrigated acreage 

year that revenue protection is available 

unless you cancel your coverage by the 

(corn irrigated practice) and an 80 cancellation date or change your 

percent coverage level for all non- coverage by the sales closing date; or 

irrigated acreage (corn non-irrigated (ii) For the harvest price: 

practice). 

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(A) Revenue protection will continue to be 

available; and 

(B) The harvest price will be determined 

and announced by FCIC. 

(d) With respect to yield protection, if available for the 

crop: 

(1) You may change to another plan of insurance and 

change your percentage of price and your 

coverage level by giving written notice to us not 

later than the sales closing date for the insured 

crop; 

(2) The percentage of the projected price selected by 

you multiplied by the projected price issued by 

FCIC is your projected price that is used to 

compute the value of your production guarantee 

(per acre) and the value of the production to 

count; and 

(3) Since the projected price may change each year, 

if you do not select a new percentage of the 

projected price on or before the sales closing 

date, we will assign a percentage which bears the 

same relationship to the percentage that was in 

effect for the preceding year (e.g., if you selected 

100 percent of the projected price for the previous 

crop year and you do not select a new percentage 

for the current crop year, we will assign 100 

percent for the current crop year). 

(e) With respect to all plans of insurance other than 

revenue protection and yield protection (e.g., APH, 

dollar amount plans of insurance, etc.): 

(1) In addition to the price election or amount of 

insurance available on the contract change date, 

we may provide an additional price election or 

amount of insurance no later than 15 days prior 

to the sales closing date. 

(i) You must select the additional price election 

or amount of insurance on or before the 

sales closing date for the insured crop. 

(ii) These additional price elections or amounts 

of insurance will not be less than those 

available on the contract change date. 

(iii) If you elect the additional price election or 

amount of insurance, any claim settlement 

and amount of premium will be based on 

your additional price election or amount of 

insurance. 

(2) You may change to another plan of insurance or 

change your coverage level, amount of insurance 

or percentage of the price election, as applicable, 

for the following crop year by giving written notice 

to us not later than the sales closing date for the 

insured crop. 

(3) Your amount of insurance will be the amount of 

insurance issued by FCIC multiplied by the 

coverage level percentage you elected. Your 

price election will be the price election issued by 

FCIC multiplied by the percentage of price you 

elected. 

(4) Since the amount of insurance or price election 

may change each year, if you do not select a new 

amount of insurance or percentage of the price 

election on or before the sales closing date, we 

will assign an amount of insurance or percentage 

of the price election which bears the same 

relationship to the amount of insurance or 

percentage of the price election that was in effect 

for the preceding year (e.g., if you selected 100 

percent of the price election for the previous crop 

year and you do not select a new percentage of 

the price election for the current crop year, we will 

assign 100 percent of the price election for the 

current crop year). 

(f) You must report all production of the crop (insured 

and uninsured) to us for the previous crop year by the 

earlier of the acreage reporting date or 45 days after 

the cancellation date, unless otherwise stated in the 

Special Provisions or as specified in section 18: 

(1) If you do not provide the required production 

report, we will assign a yield for the previous crop 

year. The yield assigned by us will not be more 

than 75 percent of the yield used by us to 

determine your coverage for the previous crop 

year. The production report or assigned yield will 

be used to compute your approved yield for the 

purpose of determining your coverage for the 

current crop year. 

(2) If you have filed a claim for any crop year, the 

documents signed by you which state the amount 

of production used to complete the claim for 

indemnity will be the production report for that 

year unless otherwise specified by FCIC. 

(3) Production and acreage for the prior crop year 

must be reported for each proposed optional unit 

by the production reporting date. If you do not 

provide the information stated above, the optional 

units will be combined into the basic unit. 

(4) Appraisals obtained from only a portion of the 

acreage in a field that remains unharvested after 

the remainder of the crop within the field has been 

destroyed or put to another use will not be used 

to establish your actual yield unless 

representative samples are required to be left by 

you in accordance with the Crop Provisions. 

(g) It is your responsibility to accurately report all 

information that is used to determine your approved 

yield. 

(1) You must certify to the accuracy of this 

information on your production report. 

(2) If you fail to accurately report any information or 

if you do not provide any required records, you 

will be subject to the provisions regarding 

misreporting contained in section 6(g), unless the 

information is corrected: 

(i) On or before the production reporting date; 

or 

(ii) Because the incorrect information was the 

result of our error or the error of someone 

from USDA. 

(3) If you do not have written verifiable records to 

support the information on your production report, 

you will receive an assigned yield in accordance 

with section 3(f)(1) and 7 CFR part 400, subpart 

G for those crop years for which you do not have 

such records. 

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(4) At any time we discover you have misreported actually carried out is likely to result in a yield 

any material information used to determine your lower than the average of your previous actual 

approved yield or your approved yield is not yields. The yield will be adjusted based on your 

correct, the following actions will be taken, as other units where such production methods were 

applicable: carried out or to the applicable county transitional 

(i) We will correct your approved yield for the yield for the production methods if other such 

crop year such information is not correct, units do not exist. You must notify us of changes 

and all subsequent crop years; in your production methods by the acreage 

(ii) We will correct the unit structure, if reporting date. If you fail to notify us, in addition 

necessary; to the reduction of your approved yield described 

(iii) Any overpaid or underpaid indemnity or herein, you will be considered to have 

premium must be repaid; and misreported information and you will be subject to 

(iv) You will be subject to the provisions the consequences in section 6(g). For example, 

regarding misreporting contained in section for a non-irrigated unit, your yield is based upon 

6(g)(1), unless the incorrect information was acreage of the crop that is watered once prior to 

the result of our error or the error of planting, and the crop is not watered prior to 

someone from USDA. planting for the current crop year. Your approved 

(h) In addition to any consequences in section 3(g), at APH yield will be reduced to an amount 

any time the circumstances described below are consistent with the actual production history of 

discovered, your approved yield will be adjusted: your other non-irrigated units where the crop has 

(1) By including an assigned yield determined in not been watered prior to planting or limited to the 

accordance with section 3(f)(1) and 7 CFR part non-irrigated transitional yield for the unit if other 

400, subpart G, if the actual yield reported in the such units do not exist. 

database is excessive for any crop year, as (i) Unless you meet the double cropping requirements 

determined by FCIC under its procedures, and contained in section 17(f)(4), if you elect to plant a 

you do not provide verifiable records to support second crop on acreage where the first insured crop 

the yield in the database (If there are verifiable was prevented from being planted, you will receive a 

records for the yield in your database, the yield is yield equal to 60 percent of the approved yield for the 

significantly different from the other yields in the first insured crop to calculate your average yield for 

county or your other yields for the crop and you subsequent crop years (Not applicable to crops if the 

cannot prove there is a valid basis to support the APH is not the basis for the insurance guarantee). If 

differences in the yields, the yield will be the the unit contains both prevented planting and planted 

average of the yields for the crop or the applicable acreage of the same crop, the yield for such acreage 

county transitional yield if you have no other will be determined by: 

yields for the crop); (1) Multiplying the number of insured prevented 

(2) By reducing it to an amount consistent with the planting acres by 60 percent of the approved yield 

average of the approved yields for other for the first insured crop; 

databases for your farming operation with the (2) Adding the totals from section 3(i)(1) to the 

same crop, type, and practice or the county amount of appraised or harvested production for 

transitional yield, as applicable, if: all of the insured planted acreage; and 

(i) The approved APH yield is greater than 115 (3) Dividing the total in section 3(i)(2) by the total 

percent of the average of the approved number of acres in the unit. 

yields of all applicable databases for your (j) Hail and fire coverage may be excluded from the 

farming operation that have actual yields in covered causes of loss for an insured crop only if you 

them or it is greater than 115 percent of the select additional coverage of not less than 65 percent 

county transitional yield if no applicable of the approved yield indemnified at the 100 percent 

databases exist for comparison; price election, or an equivalent coverage as 

(ii) The current year’s insurable acreage established by FCIC, and you have purchased the 

(including applicable prevented planting same or a higher dollar amount of coverage for hail 

acreage) is greater than 400 percent of the and fire from us or any other source. If you elected a 

average number of acres in the database or whole-farm unit, you may exclude hail and fire 

the acres contained in two or more coverage only if allowed by the Special Provisions. 

individual years in the database are each (k) The applicable premium rate, or formula to calculate 

less than 10 percent of the current year’s the premium rate, and transitional yield will be those 

insurable acreage in the unit (including contained in the actuarial documents except, in the 

applicable prevented planting acreage); and case of high-risk land, a written agreement may be 

(iii) We determine there is no valid agronomic requested to change such transitional yield or 

basis to support the approved yield; or premium rate. 

(3) To an amount consistent with the production (l) Notwithstanding any other provision, if you qualify as 

methods actually carried out for the crop year if a beginning farmer or rancher and were previously 

you use a different production method than was involved in a farming or ranching operation, including 

previously used and the production method involvement in the decision-making or physical 

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involvement in the production of the crop or livestock 

on the farm, for any acreage obtained by you, you 

may receive a yield that is the higher of: 

(1) The actual production history of the previous 

producer of the crop or livestock on the acreage 

you were previously involved with; or 

(2) Your actual production history. 

4. Contract Changes. 

(a) We may change the terms of your coverage under this 

policy from year to year. 

(b) Any changes in policy provisions, amounts of 

insurance, premium rates, program dates, price 

elections or the Commodity Exchange Price 

Provisions, if applicable, can be viewed on RMA’s 

Web site not later than the contract change date 

contained in the Crop Provisions (except as allowed 

herein or as specified in section 3). We may only 

revise this information after the contract change date 

to correct clear errors (e.g., the price for oats was 

announced at $25.00 per bushel instead of $2.50 per 

bushel or the final planting date should be May 10 but 

the final planting date in the Special Provisions states 

August 10). 

(c) After the contract change date, all changes specified 

in section 4(b) will also be available upon request from 

your crop insurance agent. You will be provided, in 

writing, a copy of the changes to the Basic Provisions, 

Crop Provisions, Commodity Exchange Price 

Provisions, if applicable, and Special Provisions not 

later than 30 days prior to the cancellation date for the 

insured crop. If available from us, you may elect to 

receive these documents and changes electronically. 

Acceptance of the changes will be conclusively 

presumed in the absence of notice from you to 

change or cancel your insurance coverage. 

5. Exclusion of Yields. 

If provided in the actuarial documents, you may elect to 

exclude any actual yield for any crop year when FCIC 

determines for a county, or its contiguous counties, the per 

planted acre yield was at least 50 percent below the 

simple average of the per planted acre yield for the crop 

in the county for the previous 10 consecutive crop years. 

6. Report of Acreage. 

(a) An annual acreage report must be submitted to us on 

our form for each insured crop in the county on or 

before the acreage reporting date contained in the 

Special Provisions, except as follows: 

(1) If you insure multiple crops with us that have final 

planting dates on or after August 15 but before 

December 31, you must submit an acreage report 

for all such crops on or before the latest 

applicable acreage reporting date for such crops; 

and 

(2) If you insure multiple crops with us that have final 

planting dates on or after December 31 but before 

August 15, you must submit an acreage report for 

all such crops on or before the latest applicable 

acreage reporting date for such crops. 

(3) Notwithstanding the provisions in sections 6(a)(1) 

and (2): 

(i) If the Special Provisions designate separate 

planting periods for a crop, you must submit 

an acreage report for each planting period 

on or before the acreage reporting date 

contained in the Special Provisions for the 

planting period; and 

(ii) If planting of the insured crop continues 

after the final planting date or you are 

prevented from planting during the late 

planting period, the acreage reporting date 

will be the later of: 

(A) The acreage reporting date contained 

in the Special Provisions; 

(B) The date determined in accordance 

with sections (a)(1) or (2); or 

(C) Five (5) days after the end of the late 

planting period for the insured crop, if 

applicable. 

(b) If you do not have a share in an insured crop in the 

county for the crop year, you must submit an acreage 

report, on or before the acreage reporting date, so 

indicating. 

(c) Your acreage report must include the following 

information, if applicable: 

(1) The amount of acreage of the crop in the county 

(insurable and not insurable) in which you have a 

share and the date the insured crop was planted 

on the unit as follows: 

(i) The last date any timely planted acreage 

was planted and the number of acres 

planted by such date; and 

(ii) The date of planting and the number of 

acres planted per day for acreage planted 

during the late planting period (If you fail to 

report the number of acres planted on a 

daily basis, all acreage planted in the late 

planting period will be presumed to have 

been planted on the last day planting took 

place in the late planting period for the 

purposes of section 16); 

(2) Your share at the time coverage begins; 

(3) The practice; 

(4) The type; and 

(5) The land identifier for the crop acreage (e.g., legal 

description, FSA farm serial number or common 

land unit number if provided to you by FSA, etc.) 

as required on our form. 

(d) Regarding the ability to revise an acreage report you 

have submitted to us: 

(1) For planted acreage, you cannot revise any 

information pertaining to the planted acreage 

after the acreage reporting date without our 

consent (Consent may only be provided when no 

cause of loss has occurred; our appraisal has 

determined that the insured crop will produce at 

least 90 percent of the yield used to determine 

your guarantee or the amount of insurance for the 

unit (including reported and unreported acreage), 

except when there are unreported units (see 

section 6(f)); the information on the acreage 

report is clearly transposed; you provide 

adequate evidence that we or someone from 

USDA have committed an error regarding the 

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information on your acreage report; or if expressly (iii) Premium will still be due in accordance with 

permitted by the policy); sections 2(e) and 7. If the acreage is not 

(2) For prevented planting acreage: 

(i) On or before the acreage reporting date, 

measured as specified in section 6(d)(3)(ii) 

and the acreage measurement is not 

you can change any information on any provided to us at least 15 days prior to the 

initially submitted acreage report, except as premium billing date, your premium will be 

provided in section 6(d)(2)(iii) (e.g., you can based on the estimated acreage and will be 

correct the reported share, add acreage of revised, if necessary, when the acreage 

the insured crop that was prevented from 

being planted, etc.); 

measurement is provided. If the acreage 

measurement is not provided by the 

(ii) After the acreage reporting date, you cannot termination date, you will be precluded from 

revise any information on the acreage report providing any estimated acreage for all 

(e.g., if you have failed to report prevented subsequent crop years. 

planting acreage on or before the acreage (4) If there is an irreconcilable difference between: 

reporting date, you cannot revise it after the 

acreage reporting date to include prevented 

(i) The acreage measured by FSA or a 

measuring service and our on-farm 

planting acreage) but we will revise measurement, our on-farm measurement 

information that is clearly transposed or you will be used; or 

provide adequate evidence that we or (ii) The acreage measured by a measuring 

someone from USDA have committed an service, other than our on-farm 

error regarding the information on your 

acreage report; and 

measurement, and FSA, the FSA 

measurement will be used; and 

(iii) You cannot revise your initially submitted (5) If the acreage report has been revised in 

acreage report at any time to change the accordance with section 6(d)(1), (2), or (3), the 

insured crop, or type, that was reported as information on the initial acreage report will not be 

prevented from being planted; considered misreported for the purposes of 

(3) You may request an acreage measurement from 

FSA or a business that provides such (e) 

section 6(g). 

We may elect to determine all premiums and 

measurement service prior to the acreage indemnities based on the information you submit on 

reporting date, submit documentation of such the acreage report or upon the factual circumstances 

request and an acreage report with estimated we determine to have existed, subject to the 

acreage by the acreage reporting date, and if the provisions contained in section 6(g). 

acreage measurement shows the estimated 

acreage was incorrect, we will revise your 

(f) If you do not submit an acreage report by the acreage 

reporting date, or if you fail to report all units, we may 

acreage report to reflect the correct acreage: elect to determine by unit the insurable crop acreage, 

(i) If an acreage measurement is only share, type and practice, or to deny liability on such 

requested for a portion of the acreage within units. If we deny liability for the unreported units, your 

a unit, you must separately designate the share of any production from the unreported units will 

acreage for which an acreage measurement 

has been requested; 

be allocated, for loss purposes only, as production to 

count to the reported units in proportion to the liability 

(ii) If an acreage measurement is not provided on each reported unit. However, such production will 

to us by the time we receive a notice of loss, not be allocated to prevented planting acreage or 

we may: otherwise affect any prevented planting payment. 

(A) Defer finalization of the claim until the (g) You must provide all required reports and you are 

measurement is completed, and: 

(1) Make all necessary loss 

responsible for the accuracy of all information 

contained in those reports. You should verify the 

determinations, except the acreage information on all such reports prior to submitting 

measurement; and them to us. 

(2) Finalize the claim in accordance (1) Except as provided in section 6(g)(2), if you 

with applicable policy provisions submit information on any report that is different 

after you provide the acreage 

measurement to us (If you fail to 

than what is determined to be correct and such 

information results in: 

provide the measurement, your (i) A lower liability than the actual liability 

claim will not be paid); or determined, the production guarantee or 

(B) Elect to measure the acreage, and: amount of insurance on the unit will be 

(1) Finalize your claim in accordance reduced to an amount consistent with the 

with applicable policy provisions; 

and 

reported information (In the event the 

insurable acreage is under-reported for any 

(2) Estimated acreage under this unit, all production or value from insurable 

section will not be accepted from acreage in that unit will be considered 

you for any subsequent acreage production or value to count in determining 

report; and the indemnity); or 

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(ii) A higher liability than the actual liability 

determined, the information contained in the 

acreage report will be revised to be 

consistent with the correct information. 

(2) If your share is misreported and the share is: 

(i) Under-reported, any claim will be 

determined using the share you reported; or 

(ii) Over-reported, any claim will be determined 

using the share we determine to be correct. 

(h) If we discover you have incorrectly reported any 

information on the acreage report for any crop year, 

you may be required to provide documentation in 

subsequent crop years substantiating your report of 

acreage for those crop years, including, but not limited 

to, an acreage measurement service at your own 

expense. If the correction of any misreported 

information would affect an indemnity, prevented 

planting payment or replant payment that was paid in 

a prior crop year, such claim will be adjusted and you 

will be required to repay any overpaid amounts. 

(i) Errors in reporting units may be corrected by us at the 

time of adjusting a loss to reduce our liability and to 

conform to applicable unit division guidelines. 

7. Annual Premium and Administrative Fees. 

(a) The annual premium is earned and payable at the 

time coverage begins. You will be billed for the 

premium and administrative fee not earlier than the 

premium billing date specified in the Special 

Provisions. 

(b) Premium or administrative fees owed by you will be 

offset from an indemnity or prevented planting 

payment due you in accordance with section 2(e). 

(c) The annual premium amount is determined, as 

applicable, by either: 

(1) Multiplying the production guarantee per acre 

times your price election or your projected price, 

as applicable, times the premium rate, times the 

insured acreage, times your share at the time 

coverage begins, and times any premium 

adjustment percentages that may apply; or 

(2) Multiplying your amount of insurance per acre 

times the premium rate, times the insured 

acreage, times your share at the time coverage 

begins, and times any premium adjustment 

percentages that may apply. 

(d) The information needed to determine the premium 

rate and any premium adjustment percentages that 

may apply are contained in the actuarial documents 

or an approved written agreement. 

(e) In addition to the premium charged: 

(1) You, unless otherwise authorized in 7 CFR part 

400, must pay an administrative fee each crop 

year of $30 per crop per county for all levels of 

coverage in excess of catastrophic risk 

protection. 

(2) The administrative fee must be paid no later than 

the time premium is due. 

(3) Payment of an administrative fee will not be 

required if you file a bona fide zero acreage report 

on or before the acreage reporting date for the 

crop. If you falsely file a zero acreage report you 

may be subject to criminal and administrative 

sanctions. 

(4) The administrative fee will be waived if you 

request it and: 

(i) You qualify as a beginning farmer or 

rancher; 

(ii) You qualify as a limited resource farmer; or 

(iii) You were insured prior to the 2005 crop 

year or for the 2005 crop year and your 

administrative fee was waived for one or 

more of those crop years because you 

qualified as a limited resource farmer under 

a policy definition previously in effect, and 

you remain qualified as a limited resource 

farmer under the definition that was in effect 

at the time the administrative fee was 

waived. 

(5) Failure to pay the administrative fees when due 

may make you ineligible for certain other USDA 

benefits. 

(f) If the amount of premium (gross premium less 

premium subsidy paid on your behalf by FCIC) and 

administrative fee you are required to pay for any 

acreage exceeds the liability for the acreage, 

coverage for those acres will not be provided (no 

premium or administrative fee will be due and no 

indemnity will be paid for such acreage). 

(g) If you qualify as a beginning farmer or rancher, your 

premium subsidy will be 10 percentage points greater 

than the premium subsidy that you would otherwise 

receive, unless otherwise specified in the Special 

Provisions. 

(h) Effective for any policies with a sales closing date on 

or after July 1, 2015, you will be ineligible for any 

premium subsidy paid on your behalf by FCIC for any 

policy issued by us if: 

(1) USDA determines you have committed a violation 

of the highly erodible land conservation or 

wetland conservation provisions of 7 CFR part 12 

as amended by the Agricultural Act of 2014; or 

(2) You have not filed form AD-1026, or successor 

form, with FSA by June 1 prior to the sales closing 

date to be properly identified as in compliance 

with the applicable conservation provisions 

specified in section 7(h)(1). 

(i) Notwithstanding section 7(h)(2), if you 

demonstrate you began farming for the first 

time after June 1 but prior to the beginning 

of the reinsurance year (July 1), you may be 

eligible for premium subsidy the subsequent 

reinsurance year without having form AD1026 on file with FSA on or before June 1. 

For example, if you demonstrate you started 

farming for the first time on June 15, 2015, 

you may be eligible for premium subsidy for 

the 2016 reinsurance year without form AD1026 on file with FSA. 

(ii) To be eligible for premium subsidy paid on 

your behalf by FCIC, it is your responsibility 

to assure you meet all the requirements for: 

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(A) Compliance with the conservation (1) Except as provided in section 9(a)(2), is insurable 

provisions specified in section 7(h)(1) of if the acreage has been planted and harvested or 

this section; and insured (including insured acreage that was 

(B) Filing form AD-1026, or successor form, prevented from being planted) in any one of the 

to be properly identified as in three previous crop years. Acreage that has not 

compliance with the conservation been planted and harvested (grazing is not 

provisions specified in section 7(h)(1) of considered harvested for the purposes of section 

this section. 9(a)(1)) or insured in at least one of the three 

8. Insured Crop. 

(a) The insured crop will be that shown on your accepted 

previous crop years may still be insurable if: 

(i) Such acreage was not planted: 

application and as specified in the Crop Provisions or (A) In at least two of the three previous crop 

Special Provisions and must be grown on insurable years to comply with any other USDA 

acreage. program; 

(b) A crop which will NOT be insured will include, but will (B) Due to the crop rotation, the acreage 

not be limited to, any crop: would not have been planted in the 

(1) That is not grown on planted acreage (except for previous three years (e.g., a crop 

the purposes of prevented planting coverage), or rotation of corn, soybeans, and alfalfa; 

that is a type, class or variety or where the and the alfalfa remained for four years 

conditions under which the crop is planted are not before the acreage was planted to corn 

generally recognized for the area (For example, again); or 

where agricultural experts determine that planting (C) Because a perennial tree, vine, or bush 

a non-irrigated corn crop after a failed small grain crop was on the acreage in at least two 

crop on the same acreage in the same crop year of the previous three crop years; 

is not appropriate for the area); (ii) Such acreage constitutes five percent or 

(2) For which the information necessary for less of the insured planted acreage in the 

insurance (price election, amount of insurance, unit; 

projected price and harvest price, as applicable, (iii) Such acreage was not planted or harvested 

premium rate, etc.) is not included in the actuarial because it was pasture or rangeland, the 

documents, unless such information is provided crop to be insured is also pasture or 

by a written agreement in accordance with rangeland, and the Crop Provisions, Special 

section 18; Provisions, or a written agreement 

(3) That is a volunteer crop; specifically allow insurance for such 

(4) Planted following the same crop on the same acreage; or 

acreage and the first planting of the crop has (iv) The Crop Provisions, Special Provisions, or 

been harvested in the same crop year unless a written agreement specifically allow 

specifically permitted by the Crop Provisions or insurance for such acreage; or 

the Special Provisions (For example, the second (2) Is not insurable if: 

planting of grain sorghum would not be insurable (i) The only crop that has been planted and 

if grain sorghum had already been planted and harvested on the acreage in the three 

harvested on the same acreage during the crop previous crop years is a cover, hay (except 

year); wheat harvested for hay) or forage crop 

(5) That is planted for the development or production (except insurable silage). However, such 

of hybrid seed or for experimental purposes, acreage may be insurable only if: 

unless permitted by the Crop Provisions or by (A) The crop to be insured is a hay or 

written agreement to insure such crop; or forage crop and the Crop Provisions, 

(6) That is used solely for wildlife protection or Special Provisions, or a written 

management. If the lease states that specific agreement specifically allow insurance 

acreage must remain unharvested, only that for such acreage; or 

acreage is uninsurable. If the lease specifies that (B) The hay or forage crop was part of a 

a percentage of the crop must be left crop rotation; 

unharvested, your share will be reduced by such (ii) The acreage has been strip-mined. 

percentage. However, such acreage may be insurable 

(c) Although certain policy documents may state that a only if: 

crop type, class, variety or practice is not insurable, it (A) An agricultural commodity, other than a 

does not mean all other crop types, classes, varieties cover, hay (except wheat harvested for 

or practices are insurable. To be insurable the crop hay), or forage crop (except insurable 

type, class, variety or practice must meet all the silage) has been harvested from the 

conditions in this section. acreage for at least five crop years after 

9. Insurable Acreage. 

(a) All acreage planted to the insured crop in the county 

the strip-mined land was reclaimed; or 

(B) A written agreement specifically allows 

in which you have a share: insurance for such acreage; 

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(iii) The actuarial documents do not provide the 

information necessary to determine the 

premium rate, unless insurance is allowed 

by a written agreement; 

(iv) The insured crop is damaged and it is 

practical to replant the insured crop, but the 

insured crop is not replanted; 

(v) The acreage is interplanted, unless 

insurance is allowed by the Crop Provisions; 

(vi) The acreage is otherwise restricted by the 

Crop Provisions or Special Provisions; 

(vii) The acreage is planted in any manner other 

than as specified in the policy provisions for 

the crop unless a written agreement 

specifically allows insurance for such 

planting; 

(viii) The acreage is of a second crop, if you elect 

not to insure such acreage when an 

indemnity for a first insured crop may be 

subject to reduction in accordance with the 

provisions of section 15 and you intend to 

collect an indemnity payment that is equal 

to 100 percent of the insurable loss for the 

first insured crop acreage. This election 

must be made on a first insured crop unit 

basis (e.g., if the first insured crop unit 

contains 40 planted acres that may be 

subject to an indemnity reduction, then no 

second crop can be insured on any of the 

40 acres). In this case: 

(A) If the first insured crop is insured under 

this policy, you must provide written 

notice to us of your election not to 

insure acreage of a second crop at the 

time the first insured crop acreage is 

released by us (if no acreage in the first 

insured crop unit is released, this 

election must be made by the earlier of 

the acreage reporting date for the 

second crop or when you sign the claim 

for indemnity for the first insured crop) 

or, if the first insured crop is insured 

under the Group Risk Protection Plan of 

Insurance or successor provisions (7 

CFR part 407), this election must be 

made before the second crop insured 

under this policy is planted, and if you 

fail to provide such notice, the second 

crop acreage will be insured in 

accordance with the applicable policy 

provisions and you must repay any 

overpaid indemnity for the first insured 

crop; 

(B) In the event a second crop is planted 

and insured with a different insurance 

provider, or planted and insured by a 

different person, you must provide 

written notice to each insurance 

provider that a second crop was planted 

on acreage on which you had a first 

insured crop; and 

(C) You must report the crop acreage that 

will not be insured on the applicable 

acreage report; or 

(ix) The acreage is of a crop planted following a 

second crop or following an insured crop 

that is prevented from being planted after a 

first insured crop, unless it is a practice that 

is generally recognized by agricultural 

experts or organic agricultural experts for 

the area to plant three or more crops for 

harvest on the same acreage in the same 

crop year, and additional coverage 

insurance provided under the authority of 

the Act is offered for the third or subsequent 

crop in the same crop year. Insurance will 

only be provided for a third or subsequent 

crop as follows: 

(A) You must provide records acceptable to 

us that show: 

(1) You have produced and harvested 

the insured crop following two other 

crops harvested on the same 

acreage in the same crop year in at 

least two of the last four years in 

which you produced the insured 

crop; or 

(2) The applicable acreage has had 

three or more crops produced and 

harvested on it in the same crop 

year in at least two of the last four 

years in which the insured crop was 

grown on the acreage; and 

(B) The amount of insurable acreage will 

not exceed 100 percent of the greatest 

number of acres for which you provide 

the records required in section 

9(a)(2)(ix)(A). 

(b) If insurance is provided for an irrigated practice, you 

must report as irrigated only that acreage for which 

you have adequate facilities and adequate water, or 

the reasonable expectation of receiving adequate 

water at the time coverage begins, to carry out a good 

irrigation practice. If you knew or had reason to know 

that your water may be reduced before coverage 

begins, no reasonable expectation exists. 

(c) Notwithstanding the provisions in section 8(b)(2), if 

acreage is irrigated and a premium rate is not 

provided for an irrigated practice, you may either 

report and insure the irrigated acreage as “nonirrigated,” or report the irrigated acreage as not 

insured (If you elect to insure such acreage under a 

non-irrigated practice, your irrigated yield will only be 

used to determine your approved yield if you continue 

to use a good irrigation practice. If you do not use a 

good irrigation practice, you will receive a yield 

determined in accordance with section 3(h)(3)). 

(d) We may restrict the amount of acreage that we will 

insure to the amount allowed under any acreage 

limitation program established by the United States 

Department of Agriculture if we notify you of that 

restriction prior to the sales closing date. 

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(e) Except as provided in section 9(f), in the states of 

Iowa, Minnesota, Montana, Nebraska, North Dakota, 

or South Dakota, during the first four crop years of 

planting on native sod acreage that has been tilled 

after February 7, 2014, such acreage may be insured 

if the requirements of section 9(a) have been met but 

will: 

(1) Notwithstanding the provisions in section 3 

regarding your production guarantee, receive a 

production guarantee (per acre) that is based on 

65 percent of the transitional yield for the county; 

and 

(2) For additional coverage policies, receive a 

premium subsidy that is 50 percentage points 

less than would otherwise be provided on 

acreage not qualifying as native sod. If the 

premium subsidy applicable to these acres is less 

than 50 percent before the reduction, you will 

receive no premium subsidy. 

(f) Section 9(e) is not applicable to cumulative native sod 

acreage that is five acres or less in the county. 

10. Share Insured. 

(a) Insurance will attach: 

(1) Only if the person completing the application has 

a share in the insured crop; and 

(2) Only to that person’s share, except that insurance 

may attach to another person’s share of the 

insured crop if the other person has a share of the 

crop and: 

(i) The application clearly states the insurance 

is requested for a person other than an 

individual (e.g., a partnership or a joint 

venture); or 

(ii) The application clearly states you as 

landlord will insure your tenant’s share, or 

you as tenant will insure your landlord’s 

share. If you as a landlord will insure your 

tenant’s share, or you as a tenant will insure 

your landlord’s share, you must provide 

evidence of the other party’s approval 

(lease, power of attorney, etc.) and such 

evidence will be retained by us: 

(A) You also must clearly set forth the 

percentage shares of each person on 

the acreage report; and 

(B) For each landlord or tenant, you must 

report the landlord’s or tenant’s social 

security number, employer 

identification number, or other 

identification number we assigned for 

the purposes of this policy, as 

applicable. 

(b) With respect to your share: 

(1) We will consider to be included in your share 

under your policy, any acreage or interest 

reported by or for: 

(i) Your spouse, unless such spouse can prove 

he/she has a separate farming operation, 

which includes, but is not limited to, 

separate land (transfers of acreage from 

one spouse to another is not considered 

separate land), separate capital, separate 

inputs, separate accounting, and separate 

maintenance of proceeds; or 

(ii) Your child who resides in your household or 

any other member of your household, 

unless such child or other member of the 

household can demonstrate such person 

has a separate share in the crop (Children 

who do not reside in your household are not 

included in your share); and 

(2) If it is determined that the spouse, child or other 

member of the household has a separate policy 

but does not have a separate farming operation 

or share of the crop, as applicable: 

(i) The policy for one spouse or child or other 

member of the household will be void and 

the policy remaining in effect will be 

determined in accordance with section 

22(a)(1) and (2); 

(ii) The acreage or share reported under the 

policy that is voided will be included under 

the remaining policy; and 

(iii) No premium will be due and no indemnity 

will be paid for the voided policy. 

(c) Acreage rented for a percentage of the crop, or a 

lease containing provisions for BOTH a minimum 

payment (such as a specified amount of cash, 

bushels, pounds, etc.,) AND a crop share will be 

considered a crop share lease. 

(d) Acreage rented for cash, or a lease containing 

provisions for EITHER a minimum payment OR a 

crop share (such as a 50/50 share or $100.00 per 

acre, whichever is greater) will be considered a 

cash lease. 

11. Insurance Period. 

(a) Except for prevented planting coverage (see section 

17), coverage begins on each unit or part of a unit at 

the later of: 

(1) The date we accept your application (For the 

purposes of this paragraph, the date of 

acceptance is the date that you submit a properly 

executed application in accordance with section 

2); 

(2) The date the insured crop is planted; or 

(3) The calendar date contained in the Crop 

Provisions for the beginning of the insurance 

period. 

(b) Coverage ends on each unit or part of a unit at the 

earliest of: 

(1) Total destruction of the insured crop; 

(2) Harvest of the insured crop; 

(3) Final adjustment of a loss on a unit; 

(4) The calendar date contained in the Crop 

Provisions or Special Provisions for the end of the 

insurance period; 

(5) Abandonment of the insured crop; or 

(6) As otherwise specified in the Crop Provisions. 

(c) Except as provided in the Crop Provisions or 

applicable endorsement, in addition to the 

requirements of section 11(b), coverage ends on any 

acreage within a unit once any event specified in 

section 11(b) occurs on that acreage. Coverage only 

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remains in effect on acreage that has not been 

affected by an event specified in section 11(b). 

12. Causes of Loss. 

Insurance is provided only to protect against unavoidable, 

naturally occurring events. A list of the covered naturally 

occurring events is contained in the applicable Crop 

Provisions. All other causes of loss, including but not 

limited to the following, are NOT covered: 

(a) Any act by any person that affects the yield, quality or 

price of the insured crop (e.g., chemical drift, fire, 

terrorism, etc.); 

(b) Failure to follow recognized good farming practices 

for the insured crop; 

(c) Water that is contained by or within structures that are 

designed to contain a specific amount of water, such 

as dams, locks or reservoir projects, etc., on any 

acreage when such water stays within the designed 

limits (For example, a dam is designed to contain 

water to an elevation of 1,200 feet but you plant a crop 

on acreage at an elevation of 1,100 feet. A storm 

causes the water behind the dam to rise to an 

elevation of 1,200 feet. Under such circumstances, 

the resulting damage would not be caused by an 

insurable cause of loss. However, if you planted on 

acreage that was above 1,200 feet elevation, any 

damage caused by water that exceeded that elevation 

would be caused by an insurable cause of loss); 

(d) Failure or breakdown of the irrigation equipment or 

facilities, or the inability to prepare the land for 

irrigation using your established irrigation method 

(e.g., furrow irrigation), unless the failure, breakdown 

or inability is due to a cause of loss specified in the 

Crop Provisions. 

(1) You must make all reasonable efforts to restore 

the equipment or facilities to proper working order 

within a reasonable amount of time unless we 

determine it is not practical to do so. 

(2) Cost will not be considered when determining 

whether it is practical to restore the equipment or 

facilities; 

(e) Failure to carry out a good irrigation practice for the 

insured crop, if applicable; or 

(f) Any cause of loss that results in damage that is not 

evident or would not have been evident during the 

insurance period, including, but not limited to, damage 

that only becomes evident after the end of the 

insurance period unless expressly authorized in the 

Crop Provisions. Even though we may not inspect the 

damaged crop until after the end of the insurance 

period, damage due to insured causes that would 

have been evident during the insurance period will be 

covered. 

13. Replanting Payment. 

(a) If allowed by the Crop Provisions, a replanting 

payment may be made on an insured crop replanted 

after we have given consent and the acreage 

replanted is at least the lesser of 20 acres or 20 

percent of the insured planted acreage for the unit (as 

determined on the final planting date or within the late 

planting period if a late planting period is applicable). 

If the crops to be replanted are in a whole-farm unit, 

the 20 acres or 20 percent requirement is to be 

applied separately to each crop to be replanted in the 

whole-farm unit. 

(b) No replanting payment will be made on acreage: 

(1) On which our appraisal establishes that 

production will exceed the level set by the Crop 

Provisions; 

(2) Initially planted prior to the earliest planting date 

established by the Special Provisions; or 

(3) On which one replanting payment has already 

been allowed for the crop year. 

(c) The replanting payment per acre will be: 

(1) The lesser of your actual cost for replanting or the 

amount specified in the Crop Provisions or 

Special Provisions; or 

(2) If the Crop Provisions or Special Provisions 

specify that your actual cost will not be used to 

determine your replant payment, the amount 

determined in accordance with the Crop 

Provisions or Special Provisions. 

(d) No replanting payment will be paid if we determine it 

is not practical to replant. 

14. Duties in the Event of Damage, Loss, Abandonment, 

Destruction, or Alternative Use of Crop or Acreage. 

Your Duties: 

(a) In case of damage or loss of production or revenue to 

any insured crop, you must protect the crop from 

further damage by providing sufficient care. 

(b) Notice provisions: 

(1) For a planted crop, when there is damage or loss 

of production, you must give us notice, by unit, 

within 72 hours of your initial discovery of damage 

or loss of production (but not later than 15 days 

after the end of the insurance period, even if you 

have not harvested the crop). 

(2) For crops for which revenue protection is elected, 

if there is no damage or loss of production, you 

must give us notice not later than 45 days after 

the latest date the harvest price is released for 

any crop in the unit where there is a revenue loss. 

(3) In the event you are prevented from planting an 

insured crop that has prevented planting 

coverage, you must notify us within 72 hours 

after: 

(i) The final planting date, if you do not intend 

to plant the insured crop during the late 

planting period or if a late planting period is 

not applicable; or 

(ii) You determine you will not be able to plant 

the insured crop within any applicable late 

planting period. 

(4) All notices required in this section that must be 

received by us within 72 hours may be made by 

telephone or in person to your crop insurance 

agent but must be confirmed in writing within 15 

days. 

(5) If you fail to comply with these notice 

requirements, any loss or prevented planting 

claim will be considered solely due to an 

uninsured cause of loss for the acreage for which 

such failure occurred, unless we determine that 

we have the ability to accurately adjust the loss. 

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If we determine that we do not have the ability to production and settlement of any potential 

accurately adjust the loss: associated claim for indemnity (Extensions 

(i) For any prevented planting claim, no will be granted for this purpose up to 180 

prevented planting coverage will be days after the end of the insurance period). 

provided and no premium will be owed or (A) For policies that require APH, if such 

prevented planting payment will be paid; or extension continues beyond the date 

(ii) For any claim for indemnity, no indemnity you are required to submit your 

will be paid but you will still be required to production report, you will be assigned 

pay all premiums owed. the previous year’s approved yield as a 

(c) Representative samples: temporary yield in accordance with 

(1) If representative samples are required by the applicable procedures. 

Crop Provisions, you must leave representative (B) Any extension does not extend any 

samples of the unharvested crop intact: date specified in the policy by which 

(i) If you report damage less than 15 days premiums, administrative fees, or other 

before the time you will begin harvest or debts owed must be paid. 

during harvest of the damaged unit; or (C) Damage that occurs after the end of the 

(ii) At any time when required by us. insurance period (for example, while 

(2) The samples must be left intact until we inspect the harvested crop production is in 

them or until 15 days after completion of harvest storage) is not covered; and 

on the remainder of the unit, whichever is earlier. (2) Failure to timely submit a claim or provide the 

(3) Unless otherwise specified in the Crop Provisions required information necessary to determine the 

or Special Provisions, the samples of the crop in amount of the claim will result in no indemnity, 

each field in the unit must be 10 feet wide and prevented planting payment or replant payment: 

extend the entire length of the rows, if the crop is (i) Even though no indemnity or replant 

planted in rows, or if the crop is not planted in payment is due, you will still be required to 

rows, the longest dimension of the field. pay the premium due under the policy for 

(4) The period to retain representative samples may the unit; or 

be extended if it is necessary to accurately (ii) Failure to timely submit a prevented planting 

determine the loss. You will be notified in writing claim will result in no prevented planting 

of any such extension. coverage and no premium will be due. 

(d) Consent: (3) You must submit a claim not later than: 

(1) You must obtain consent from us before, and (i) For policies other than revenue protection, 

notify us after you: 60 days after the date the insurance period 

(i) Destroy any of the insured crop that is not ends for all acreage in the unit (When there 

harvested; is acreage in the unit where the insurance 

(ii) Put the insured crop to an alternative use; period ended on different dates, it is the last 

(iii) Put the acreage to another use; or date the insurance period ends on the unit. 

(iv) Abandon any portion of the insured crop. For example, if a unit has corn acreage that 

(2) We will not give consent for any of the actions in was put to another use on July 15 and corn 

section 14(d)(1)(i) through (iv) if it is practical to acreage where harvest was completed on 

replant the crop or until we have made an September 30, the claim must be submitted 

appraisal of the potential production of the crop. not later than 60 days after September 30); 

(3) Failure to obtain our consent will result in the or 

assignment of an amount of production or value (ii) For revenue protection, the later of: 

to count in accordance with the Settlement of (A) 60 days after the last date the harvest 

Claim provisions of the applicable Crop price is released for any crop in the unit; 

Provisions. or 

(e) Claims: (B) The date determined in accordance 

(1) Except as otherwise provided in your policy, you with section 14(e)(3)(i). 

must submit a claim declaring the amount of your (4) To receive any indemnity (or receive the rest of 

loss by the dates shown in section 14(e)(3), an indemnity in the case of acreage that is 

unless you: planted to a second crop), prevented planting 

(i) Request an extension in writing by such payment or replant payment, you must, if 

date and we agree to such request applicable: 

(Extensions will only be granted if the (i) Provide: 

amount of the loss cannot be determined (A) A complete harvesting, production, and 

within such time period because the marketing record of each insured crop 

information needed to determine the by unit including separate records 

amount of the loss is not available); or showing the same information for 

(ii) Have harvested farm-stored grain production from any acreage not 

production and elect, in writing, to delay insured. 

measurement of your farm-stored 

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(B) Records as indicated below if you 

insure any acreage that may be subject 

to an indemnity reduction as specified 

in section 15(e)(2): 

(1) Separate records of production 

from such acreage for all insured 

crops planted on the acreage (e.g., 

if you have an insurable loss on 10 

acres of wheat and subsequently 

plant cotton on the same 10 acres, 

you must provide records of the 

wheat and cotton production on the 

10 acres separate from any other 

wheat and cotton production that 

may be planted in the same unit). 

If you fail to provide separate 

records for such acreage, we will 

allocate the production of each 

crop to the acreage in proportion to 

our liability for the acreage; or 

(2) If there is no loss on the unit that 

includes acreage of the second 

crop, no separate records need to 

be submitted for the second crop 

and you can receive the rest of the 

indemnity for the first insured crop. 

(C) Any other information we may require to 

settle the claim. 

(ii) Cooperate with us in the investigation or 

settlement of the claim, and, as often as we 

reasonably require: 

(A) Show us the damaged crop; 

(B) Allow us to remove samples of the 

insured crop; and 

(C) Provide us with records and documents 

we request and permit us to make 

copies. 

(iii) Establish: 

(A) The total production or value received 

for the insured crop on the unit; 

(B) That any loss occurred during the 

insurance period; 

(C) That the loss was caused by one or 

more of the insured causes specified in 

the Crop Provisions; and 

(D) That you have complied with all 

provisions of this policy. 

(iv) Upon our request, or that of any USDA 

employee authorized to conduct 

investigations of the crop insurance program, 

submit to an examination under oath. 

(5) Failure to comply with any requirement contained 

in section 14(e)(4) will result in denial of the claim 

and any premium will still be owed, unless the 

claim denied is for prevented planting. 

Our Duties: 

(f) If you have complied with all the policy provisions, we 

will pay your loss within 30 days after the later of: 

(1) We reach agreement with you; 

(2) Completion of arbitration, reconsideration of 

determinations regarding good farming practices 

or any other appeal that results in an award in 

your favor, unless we exercise our right to appeal 

such decision; 

(3) Completion of any investigation by USDA, if 

applicable, of your current or any past claim for 

indemnity if no evidence of wrongdoing has been 

found (If any evidence of wrongdoing has been 

discovered, the amount of any indemnity, 

prevented planting or replant overpayment as a 

result of such wrongdoing may be offset from any 

indemnity or prevented planting payment owed to 

you); or 

(4) The entry of a final judgment by a court of 

competent jurisdiction. 

(g) In the event we are unable to pay your loss within 30 

days, we will give you notice of our intentions within 

the 30-day period. 

(h) We may defer the adjustment of a loss until the 

amount of loss can be accurately determined. We will 

not pay for additional damage resulting from your 

failure to provide sufficient care for the crop during the 

deferral period. 

(i) We recognize and apply the loss adjustment 

procedures established or approved by the Federal 

Crop Insurance Corporation. 

(j) For revenue protection, we may make preliminary 

indemnity payments for crop production losses prior 

to the release of the harvest price if you have not 

elected the harvest price exclusion. 

(1) First, we may pay an initial indemnity based upon 

your projected price, in accordance with the 

applicable Crop Provisions provided that your 

production to count and share have been 

established; and 

(2) Second, after the harvest price is released, and if 

it is not equal to the projected price, we will 

recalculate the indemnity payment and pay any 

additional indemnity that may be due. 

15. Production Included in Determining an Indemnity and 

Payment Reductions. 

(a) The total production to be counted for a unit will 

include all production determined in accordance with 

the policy. 

(b) Appraised production will be used to calculate your 

claim if you are not going to harvest your acreage. 

Such appraisals may be conducted after the end of 

the insurance period. If you harvest the crop after the 

crop has been appraised: 

(1) You must provide us with the amount of 

harvested production (If you fail to provide 

verifiable records of harvested production, no 

indemnity will be paid and you will be required to 

return any previously paid indemnity for the unit 

that was based on an appraised amount of 

production); and 

(2) If the harvested production exceeds the 

appraised production, claims will be adjusted 

using the harvested production, and you will be 

required to repay any overpaid indemnity; or 

(3) If the harvested production is less than the 

appraised production, and: 

(i) You harvest after the end of the insurance 

period, your appraised production will be 

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used to adjust the loss unless you can prove 

that no additional causes of loss or 

deterioration of the crop occurred after the 

end of the insurance period; or 

(ii) You harvest before the end of the insurance

period, your harvested production will be

used to adjust the loss.

(c) If you elect to exclude hail and fire as insured causes

of loss and the insured crop is damaged by hail or fire,

appraisals will be made as described in our form used

to exclude hail and fire.

(d) The amount of an indemnity that may be determined

under the applicable provisions of your policy may be

reduced by an amount, determined in accordance

with the Crop Provisions or Special Provisions, to

reflect out-of-pocket expenses that were not incurred

by you as a result of not planting, caring for, or

harvesting the crop. Indemnities paid for acreage

prevented from being planted will be based on a

reduced guarantee as provided for in the policy and

will not be further reduced to reflect expenses not

incurred.

(e) With respect to acreage where you have suffered an

insurable loss to planted acreage of your first insured

crop in the crop year, except in the case of double

cropping described in section 15(h):

(1) You may elect to not plant or to plant and not

insure a second crop on the same acreage for

harvest in the same crop year and collect an

indemnity payment that is equal to 100 percent of

the insurable loss for the first insured crop; or

(2) You may elect to plant and insure a second crop

on the same acreage for harvest in the same crop

year (you will pay the full premium and, if there is

an insurable loss to the second crop, receive the

full amount of indemnity that may be due for the

second crop, regardless of whether there is a

subsequent crop planted on the same acreage)

and:

(i) Collect an indemnity payment that is 35

percent of the insurable loss for the first

insured crop;

(ii) Be responsible for premium that is 35

percent of the premium that you would

otherwise owe for the first insured crop; and

(iii) If the second crop does not suffer an

insurable loss:

(A) Collect an indemnity payment for the

other 65 percent of insurable loss that

was not previously paid under section

15(e)(2)(i); and

(B) Be responsible for the remainder of the

premium for the first insured crop that

you did not pay under section

15(e)(2)(ii).

(f) With respect to acreage where you were prevented

from planting the first insured crop in the crop year,

except in the case of double cropping described in

section 15(h):

(1) If a second crop is not planted on the same

acreage for harvest in the same crop year, you

may collect a prevented planting payment that is

equal to 100 percent of the prevented planting 

payment for the acreage for the first insured crop; 

or 

(2) If a second crop is planted on the same acreage

for harvest in the same crop year (you will pay the

full premium and, if there is an insurable loss to

the second crop, receive the full amount of

indemnity that may be due for the second crop,

regardless of whether there is a subsequent crop

planted on the same acreage) and:

(i) Provided the second crop is not planted on

or before the final planting date or during the

late planting period (as applicable) for the

first insured crop, you may collect a

prevented planting payment that is 35

percent of the prevented planting payment

for the first insured crop; and

(ii) Be responsible for premium that is 35

percent of the premium that you would

otherwise owe for the first insured crop.

(g) The reduction in the amount of indemnity or prevented

planting payment and premium specified in sections

15(e) and 15(f), as applicable, will apply:

(1) Notwithstanding the priority contained in the

Agreement to Insure section, which states that

the Crop Provisions have priority over the Basic

Provisions when a conflict exists, to any premium

owed or indemnity or prevented planting payment

made in accordance with the Crop Provisions,

and any applicable endorsement.

(2) Even if another person plants the second crop on

any acreage where the first insured crop was

planted or was prevented from being planted, as

applicable.

(3) For prevented planting only:

(i) If a volunteer crop or cover crop is hayed or

grazed from the same acreage, after the

late planting period (or after the final

planting date if a late planting period is not

applicable) for the first insured crop in the

same crop year, or is otherwise harvested

anytime after the late planting period (or

after the final planting date if a late planting

period is not applicable); or

(ii) If you receive cash rent for any acreage on

which you were prevented from planting.

(h) You may receive a full indemnity, or a full prevented

planting payment for a first insured crop when a

second crop is planted on the same acreage in the

same crop year, if each of the following conditions are

met, regardless of whether or not the second crop is

insured or sustains an insurable loss:

(1) Planting two or more crops for harvest in the

same crop year in the area is generally

recognized by agricultural experts or organic

agricultural experts;

(2) The second or more crops are customarily

planted after the first insured crop for harvest on

the same acreage in the same crop year in the

area;

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(3) Additional coverage insurance offered under the allocate the first and second crop production to 

authority of the Act is available in the county on the specific acreage in proportion to the liability 

the two or more crops that are double cropped; for the acreage that was and was not double 

(4) In the case of prevented planting, the second cropped. 

crop is not planted on or prior to the final planting (i) If you provided acceptable records in accordance with 

date or, if applicable, prior to the end of the late section 15(h), your double cropping history is based 

planting period for the first insured crop; on the acres historically cropped: 

(5) You provide records, acceptable to us, of acreage (1) If the records you provided are from acreage you 

and production specific to the double cropped double cropped in at least two of the last four crop 

acreage proving that: years, you may apply your history of double 

(i) You have double cropped acreage in at cropping to any acreage of the insured crop in the 

least two of the last four crop years in which county (e.g., if you have double cropped 100 

the first insured crop was planted; if you acres of wheat and soybeans in the county and 

acquired additional acreage, you may apply you acquire an additional 100 acres in the county, 

the percentage of acres that you have you can apply that history of double cropped 

previously double cropped to the total acreage to any of the 200 acres in the county as 

acreage now in your operation using the long as it does not exceed 100 acres); or 

following calculation: (2) If the records you provided are from acreage that 

(A) Determine the number of acres of the one or more other producers double cropped in 

first insured crop that were double at least two of the last four crop years, you may 

cropped in each of the years for which only use the history of double cropping for the 

records are provided (For example, same physical acres from which double cropping 

records are provided showing: 100 records were provided (e.g., if a neighbor has 

acres of wheat planted in 2015 and 50 double cropped 100 acres of wheat and 

of those acres were double cropped soybeans in the county and you acquire your 

with soybeans; and 100 acres of wheat neighbor’s 100 double cropped acres and an 

planted in 2016 and 70 of those acres additional 100 acres in the county, you can only 

were double cropped with soybeans); apply your neighbor’s history of double cropped 

(B) Divide each result of section acreage to the same 100 acres that your neighbor 

15(h)(5)(i)(A) by the number of acres of double cropped). 

the first insured crop that were planted (j) If any Federal or State agency requires destruction of 

in each respective year (In the example any insured crop or crop production, as applicable, 

above, 50 divided by 100 equals 50 because it contains levels of a substance, or has a 

percent of the first insured crop acres condition, that is injurious to human or animal health 

were double cropped in 2015 and 70 in excess of the maximum amounts allowed by the 

divided by 100 equals 70 percent were Food and Drug Administration, other public health 

double cropped in 2016); organizations of the United States or an agency of the 

(C) Add the results of section 15(h)(5)(i)(B) applicable State, you must destroy the insured crop or 

and divide by the number of years the crop production, as applicable, and certify that such 

first insured crop was double cropped insured crop or crop production has been destroyed 

(In the example above, 50 plus 70 prior to receiving an indemnity payment. Failure to 

equals 120 divided by 2 equals 60 destroy the insured crop or crop production, as 

percent); and applicable, will result in you having to repay any 

(D) Multiply the result of 15(h)(5)(i)(C) by indemnity paid and you may be subject to 

the number of insured acres of the first administrative sanctions in accordance with section 

insured crop (In the example above, 60 515(h) of the Act and 7 CFR part 400, subpart R, and 

percent of the wheat acres insured in any applicable civil or criminal sanctions. 

2017 and 60 percent of the second crop 16. Late Planting. 

acres insured in 2017 are eligible for Unless limited by the Crop Provisions, insurance will be 

double cropping history); or provided for acreage planted to the insured crop after the 

(ii) The applicable acreage was double final planting date in accordance with the following: 

cropped (by one or more other producers, (a) The production guarantee or amount of insurance for 

and the producer(s) will allow you to use each acre planted to the insured crop during the late 

their records) for at least two of the last four planting period will be reduced by 1 percent per day 

crop years in which the first insured crop for each day planted after the final planting date. 

was grown on it; and (b) Acreage planted after the late planting period (or after 

(6) If you do not have records of acreage and the final planting date for crops that do not have a late 

production specific to the double cropped planting period) may be insured as follows: 

acreage, as required in section 15(h)(5), but (1) The production guarantee or amount of insurance 

instead have records that combine production for each acre planted as specified in this 

from acreage you double cropped with records of subsection will be determined by multiplying the 

production you did not double crop, we will production guarantee or amount of insurance that 

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is provided for acreage of the insured crop that is 

timely planted by the prevented planting 

coverage level percentage you elected, or that is 

contained in the Crop Provisions if you did not 

elect a prevented planting coverage level 

percentage; 

(2) Planting on such acreage must have been 

prevented by the final planting date (or during the 

late planting period, if applicable) by an insurable 

cause occurring within the insurance period for 

prevented planting coverage; and 

(3) All production from insured acreage as specified 

in this section will be included as production to 

count for the unit. 

(c) The premium amount for insurable acreage specified 

in this section will be the same as that for timely 

planted acreage. If the amount of premium you are 

required to pay (gross premium less our subsidy) for 

such acreage exceeds the liability, coverage for those 

acres will not be provided (no premium will be due and 

no indemnity will be paid). 

(d) Any acreage on which an insured cause of loss is a 

material factor in preventing completion of planting, as 

specified in the definition of “planted acreage” (e.g., 

seed is broadcast on the soil surface but cannot be 

incorporated) will be considered as acreage planted 

after the final planting date and the production 

guarantee will be calculated in accordance with 

section 16(b)(1). 

17. Prevented Planting. 

(a) Unless limited by the policy provisions, a prevented 

planting payment may be made to you for eligible 

acreage if: 

(1) You are prevented from planting the insured crop 

on insurable acreage by an insured cause of loss 

that occurs: 

(i) On or after the sales closing date contained 

in the Special Provisions for the insured 

crop in the county for the crop year the 

application for insurance is accepted; or 

(ii) For any subsequent crop year, on or after 

the sales closing date for the previous crop 

year for the insured crop in the county, 

provided insurance has been in force 

continuously since that date. Cancellation 

for the purpose of transferring the policy to 

a different insurance provider for the 

subsequent crop year will not be considered 

a break in continuity for the purpose of the 

preceding sentence; 

(2) You include on your acreage report any insurable 

acreage of the insured crop that was prevented 

from being planted; and 

(3) You did not plant the insured crop during or after 

the late planting period. Acreage planted to the 

insured crop during or after the late planting 

period is covered under the late planting 

provisions. 

(b) The actuarial documents may contain additional 

levels of prevented planting coverage that you may 

purchase for the insured crop: 

(1) Such purchase must be made on or before the 

sales closing date. 

(2) If you do not purchase one of those additional 

levels by the sales closing date, you will receive 

the prevented planting coverage specified in the 

Crop Provisions. 

(3) If you have a Catastrophic Risk Protection 

Endorsement for any crop, the additional levels of 

prevented planting coverage will not be available 

for that crop. 

(4) You cannot increase your elected or assigned 

prevented planting coverage level for any crop 

year if a cause of loss that could prevent planting 

(even though it is not known whether such cause 

will actually prevent planting) has occurred during 

the prevented planting insurance period specified 

in section 17(a)(1)(i) or (ii) and prior to your 

request to change your prevented planting 

coverage level. 

(c) The premium amount for acreage that is prevented 

from being planted will be the same as that for timely 

planted acreage except as specified in section 15(f). 

If the amount of premium you are required to pay 

(gross premium less the subsidy) for acreage that is 

prevented from being planted exceeds the liability on 

such acreage, coverage for those acres will not be 

provided (no premium will be due and no indemnity 

will be paid for such acreage). 

(d) Prevented planting coverage will be provided against: 

(1) Drought, failure of the irrigation water supply, 

failure or breakdown of irrigation equipment or 

facilities, or the inability to prepare the land for 

irrigation using your established irrigation 

method, due to an insured cause of loss only if, 

on the final planting date (or within the late 

planting period if you elect to try to plant the crop), 

you provide documentation acceptable to us to 

establish: 

(i) For non-irrigated acreage, the area that is 

prevented from being planted has 

insufficient soil moisture for germination of 

seed or progress toward crop maturity due 

to a prolonged period of dry weather. The 

documentation for prolonged period of dry 

weather must be verifiable using information 

collected by sources whose business it is to 

record and study the weather, including, but 

not limited to, local weather reporting 

stations of the National Weather Service; or 

(ii) For irrigated acreage: 

(A) Due to an insured cause of loss, there 

is not a reasonable expectation of 

having adequate water to carry out an 

irrigated practice or you are unable to 

prepare the land for irrigation using your 

established irrigation method: 

(1) If you knew or had reason to know 

on the final planting date or during 

the late planting period that your 

water will be reduced, no 

reasonable expectation exists; and 

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(2) Available water resources will be farming this year (if greater) to the total 

verified using information from cropland acres that you farmed in the 

State Departments of Water 

Resources, U.S. Bureau of 

previous year, provided that: 

(1) You submit proof to us that you 

Reclamation, Natural Resources acquired additional acreage for the 

Conservation Service or other current crop year by any of the 

sources whose business includes methods specified in section 

collection of water data or 17(f)(12); 

regulation of water resources; or 

(B) The irrigation equipment or facilities 

(2) The additional acreage was 

acquired in time to plant it for the 

have failed or broken down if such current crop year using good 

failure or breakdown is due to an farming practices; and 

insured cause of loss specified in (3) No cause of loss has occurred at 

section 12(d). the time you acquire the acreage 

(2) Causes other than drought, failure of the irrigation 

water supply, failure or breakdown of the 

that may prevent planting (except 

acreage you leased the previous 

irrigation equipment or facilities, or your inability year and continue to lease in the 

to prepare the land for irrigation using your current crop year). 

established irrigation method, provided the cause (C) If you add adequate irrigation facilities 

of loss is specified in the Crop Provisions. to your existing non-irrigated acreage or 

However, if it is possible for you to plant on or 

prior to the final planting date when other 

if you acquire additional land for the 

current crop year that has adequate 

producers in the area are planting and you fail to irrigation facilities, the number of 

plant, no prevented planting payment will be eligible acres determined in section 

made. 17(e)(1)(i)(A) for irrigated acreage of a 

(e) The maximum number of acres that may be eligible crop may be increased by multiplying it 

for a prevented planting payment for any crop will be 

determined as follows: 

by the ratio of the total irrigated acres 

that you are farming this year (if 

(1) The total number of acres eligible for prevented greater) to the total irrigated acres that 

planting coverage for all crops cannot exceed the you farmed in the previous year, 

number of acres of cropland in your farming provided the conditions in sections 

operation for the crop year, unless you are 17(e)(1)(i)(B)(1), (2) and (3) are met. If 

eligible for prevented planting coverage on 

double cropped acreage in accordance with 

there were no irrigated acres in the 

previous year, the eligible irrigated 

section 17(f)(4). The eligible acres for each acres for a crop will be limited to the 

insured crop will be determined as follows: lesser of the number of eligible non-

(i) If you have planted any crop in the county irrigated acres of the crop or the 

for which prevented planting insurance was number of acres on which adequate 

available (you will be considered to have 

planted if your APH database contains (ii) 

irrigation facilities were added. 

If you have not planted any crop in the 

actual planted acres) or have received a county for which prevented planting 

prevented planting insurance guarantee in insurance was available (you will be 

any one or more of the four most recent crop considered to have planted if your APH 

years, and the insured crop is not required database contains actual planted acres) or 

to be contracted with a processor to be 

insured: 

have not received a prevented planting 

insurance guarantee in all of the four most 

(A) The number of eligible acres will be the recent crop years, and the insured crop is 

maximum number of acres certified for not required to be contracted with a 

APH purposes, or insured acres processor to be insured: 

reported, for the crop in any one of the (A) The number of eligible acres will be: 

four most recent crop years (not 

including reported prevented planting 

(1) The number of acres specified on 

your intended acreage report, 

acreage that was planted to a second which must be submitted to us by 

crop unless you meet the double the sales closing date for all crops 

cropping requirements in section you insure for the crop year and 

17(f)(4)). that is accepted by us; or 

(B) If you acquire additional land for the 

current crop year, the number of eligible 

(2) The number of acres specified on 

your intended acreage report, 

acres determined in section which must be submitted to us 

17(e)(1)(i)(A) for a crop may be within 10 days of the time you 

increased by multiplying it by the ratio acquire the acreage and that is 

of the total cropland acres that you are accepted by us, if, on the sales 

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closing date, you do not have any 

acreage in a county and you 

subsequently acquire acreage 

through a method described in 

section 17(f)(12) in time to plant it 

using good farming practices. 

(B) The total number of acres listed on the 

intended acreage report may not 

exceed the number of acres of cropland 

in your farming operation at the time 

you submit the intended acreage report. 

(C) If you acquire additional acreage after 

we accept your intended acreage 

report, the number of acres determined 

in section 17(e)(1)(ii)(A) may be 

increased in accordance with section 

17(e)(1)(i)(B) and (C). 

(D) Prevented planting coverage will not be 

provided for any acreage included on 

the intended acreage report or any 

increased amount of acreage 

determined in accordance with section 

17(e)(1)(ii)(C) if a cause of loss that 

may prevent planting occurred before 

the acreage was acquired, as 

determined by us. 

(iii) For any crop that must be contracted with a 

processor to be insured: 

(A) The number of eligible acres will be: 

(1) The number of acres of the crop 

specified in the processor contract, 

if the contract specifies a number of 

acres contracted for the crop year; 

(2) The result of dividing the quantity of 

production stated in the processor 

contract by your approved yield, if 

the processor contract specifies a 

quantity of production that will be 

accepted (for the purposes of 

establishing the number of 

prevented planting acres, any 

reductions applied to the 

transitional yield for failure to certify 

acreage and production for four 

prior years will not be used); or 

(3) Notwithstanding sections 

17(e)(1)(iii)(A)(1) and (2), if a 

minimum number of acres or 

amount of production is specified in 

the processor contract, this amount 

will be used to determine the 

eligible acres. 

(B) If a processor cancels or does not 

provide contracts, or reduces the 

contracted acreage or production from 

what would have otherwise been 

allowed, solely because the acreage 

was prevented from being planted due 

to an insured cause of loss, we will 

determine the number of eligible acres 

based on the number of acres or 

amount of production you had 

contracted in the county in the previous 

crop year. If the applicable Crop 

Provisions require that the price 

election be based on a contract price, 

and a contract is not in force for the 

current year, the price election will be 

based on the contract price in place for 

the previous crop year. If you did not 

have a processor contract in place for 

the previous crop year, you will not 

have any eligible prevented planting 

acreage for the applicable processor 

crop. The total eligible prevented 

planting acres in all counties cannot 

exceed the total number of acres or 

amount of production contracted in all 

counties in the previous crop year. 

(2) Any eligible acreage determined in accordance 

with section 17(e)(1) will be reduced by

subtracting the number of acres of the crop 

(insured and uninsured) that are timely and late 

planted, including acreage specified in section 

16(b). 

(f) Regardless of the number of eligible acres 

determined in section 17(e), prevented planting 

coverage will not be provided for any acreage: 

(1) That does not constitute at least 20 acres or 20 

percent of the insurable crop acreage in the unit,

whichever is less (If the crop is in a whole-farm 

unit, the 20 acre or 20 percent requirement will be 

applied separately to each crop in the whole-farm

unit). Any prevented planting acreage within a 

field that contains planted acreage will be 

considered to be acreage of the same crop, type,

and practice that is planted in the field unless: 

(i) The acreage that was prevented from being

planted constitutes at least 20 acres or 20 

percent of the total insurable acreage in the 

field and you produced both crops, crop 

types, or followed both practices in the 

same field in the same crop year within any 

one of the four most recent crop years; 

(ii) You were prevented from planting a first 

insured crop and you planted a second crop 

in the field (There can only be one first 

insured crop in a field unless the 

requirements in section 17(f)(1)(i) or (iii) are

met); or 

(iii) The insured crop planted in the field would 

not have been planted on the remaining 

prevented planting acreage (e.g., where 

rotation requirements would not be met or 

you already planted the total number of 

acres specified in the processor contract); 

(2) For which the actuarial documents do not provide 

the information needed to determine the premium 

rate, unless a written agreement designates such 

premium rate; 

(3) Used for conservation purposes, intended to be 

left unplanted under any program administered 

by the USDA or other government agency, or 

required to be left unharvested under the terms of 

the lease or any other agreement (The number of 

acres eligible for prevented planting will be limited 

to the number of acres specified in the lease for 

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which you are required to pay either cash or 

share rent); 

(4) On which the insured crop is prevented from 

being planted, if you or any other person receives 

a prevented planting payment for any crop for the 

same acreage in the same crop year, excluding 

share arrangements, unless: 

(i) It is a practice that is generally recognized 

by agricultural experts or organic 

agricultural experts in the area to plant the 

insured crop for harvest following harvest of 

the first insured crop, and additional 

coverage insurance offered under the 

authority of the Act is available in the county 

for both crops in the same crop year; 

(ii) For the insured crop that is prevented from 

being planted, you provide records 

acceptable to us of acreage and production 

that show, in at least two of the last four crop 

years: 

(A) You have double cropped acreage on 

which the insured crop that is prevented 

from being planted in the current crop 

year was grown (You may apply your 

history of double cropping to any 

acreage of the insured crop in the 

county (e.g., if you have double 

cropped 100 acres of wheat and 

soybeans in the county and you acquire 

an additional 100 acres in the county, 

you can apply that history of double 

cropped acreage to any of the 200 

acres in the county as long as it does 

not exceed 100 acres)); or 

(B) The acreage you are prevented from 

planting in the current crop year was 

double cropped with the insured crop 

that is prevented from being planted 

(You may only use the history of double 

cropping for the same physical acres 

from which double cropping records 

were provided (e.g., if a neighbor has 

double cropped 100 acres of wheat and 

soybeans in the county and you acquire 

your neighbor’s 100 double cropped 

acres and an additional 100 acres in the 

county, you can only apply your 

neighbor’s history of double cropped 

acreage to the same 100 acres that 

your neighbor double cropped)); and 

(iii) The amount of acreage you are double 

cropping in the current crop year does not 

exceed the number of acres for which you 

provided the records required in section 

17(f)(4)(ii); 

(5) On which the insured crop is prevented from 

being planted, if: 

(i) Any crop is planted within or prior to the late 

planting period or on or prior to the final 

planting date if no late planting period is 

applicable, unless: 

(A) You meet the double cropping 

requirements in section 17(f)(4); 

(B) The crop planted was a cover crop; or 

(C) No benefit, including any benefit under 

any USDA program, was derived from 

the crop; or 

(ii) Any volunteer or cover crop is hayed, 

grazed or otherwise harvested within or 

prior to the late planting period or on or prior 

to the final planting date if no late planting 

period is applicable; 

(6) For which planting history or conservation plans 

indicate the acreage would have remained fallow 

for crop rotation purposes or on which any 

pasture or forage crop is in place on the acreage 

during the time planting of the insured crop 

generally occurs in the area. Cover plants that 

are seeded, transplanted, or that volunteer: 

(i) More than 12 months prior to the final 

planting date for the insured crop that was 

prevented from being planted will be 

considered pasture or a forage crop that is 

in place (e.g., the cover crop is planted 15 

months prior to the final planting date and 

remains in place during the time the insured 

crop would normally be planted); or 

(ii) Less than 12 months prior to the final 

planting date for the insured crop that was 

prevented from being planted will not be 

considered pasture or a forage crop that is 

in place; 

(7) That exceeds the number of acres eligible for a 

prevented planting payment; 

(8) That exceeds the number of eligible acres 

physically available for planting; 

(9) For which you cannot provide proof that you had 

the inputs (including, but not limited to, sufficient 

equipment and manpower) available to plant and 

produce a crop with the expectation of producing 

at least the yield used to determine your 

production guarantee or amount of insurance. 

Evidence that you previously had planted the 

crop on the unit will be considered adequate proof 

unless: 

(i) There has been a change in the availability 

of inputs since the crop was last planted that 

could affect your ability to plant and produce 

the insured crop; 

(ii) We determine you have insufficient inputs to 

plant the total number of insured crop acres 

(e.g., you will not receive a prevented 

planting payment if you have sufficient 

inputs to plant only 80 acres but you have 

already planted 80 acres and are claiming 

prevented planting on an additional 100 

acres); or 

(iii) Your planting practices or rotational 

requirements show the acreage would have 

remained fallow or been planted to another 

crop; 

(10)Based on an irrigated practice production 

guarantee or amount of insurance unless 

adequate irrigation facilities were in place to carry 

out an irrigated practice on the acreage prior to 

the insured cause of loss that prevented you from 

planting. Acreage with an irrigated practice 

production guarantee will be limited to the 

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number of acres allowed for that practice under 

sections 17(e) and (f); 

(11)Based on a crop type that you did not plant, or did 

not receive a prevented planting insurance 

guarantee for, in at least one of the four most 

recent crop years: 

(i) Types for which separate projected prices 

or price elections, as applicable, amounts of 

insurance, or production guarantees are 

available must be included in your APH 

database in at least one of the four most 

recent crop years (Crops for which the 

insurance guarantee is not based on APH 

must be reported on your acreage report in 

at least one of the four most recent crop 

years) except as allowed in section 

17(e)(1)(ii) or (iii); and 

(ii) We will limit prevented planting payments 

based on a specific crop type to the number 

of acres allowed for that crop type as 

specified in sections 17(e) and (f); or 

(12)If a cause of loss has occurred that may prevent 

planting at the time: 

(i) You lease the acreage (except acreage you 

leased the previous crop year and continue 

to lease in the current crop year); 

(ii) You buy the acreage; 

(iii) The acreage is released from a USDA 

program which prohibits harvest of a crop; 

(iv) You request a written agreement to insure 

the acreage; or 

(v) You acquire the acreage through means 

other than lease or purchase (such as 

inherited or gifted acreage). 

(g) If you purchased an additional coverage policy for a 

crop, and you executed a High-Risk Land Exclusion 

Option that separately insures acreage which has 

been designated as “high-risk” land by FCIC under a 

Catastrophic Risk Protection Endorsement for that 

crop, the maximum number of acres eligible for a 

prevented planting payment will be limited for each 

policy as specified in sections 17(e) and (f). 

(h) If you are prevented from planting a crop for which 

you do not have an adequate base of eligible 

prevented planting acreage, as determined in 

accordance with section 17(e)(1), we will use acreage 

from another crop insured for the current crop year for 

which you have remaining eligible prevented planting 

acreage. 

(1) The crop first used for this purpose will be the 

insured crop that would have a prevented 

planting payment most similar to the payment for 

the crop that was prevented from being planted. 

(i) If there are still insufficient eligible 

prevented planting acres, the next crop 

used will be the insured crop that would 

have the next closest prevented planting 

payment. 

(ii) In the event payment amounts based on 

other crops are an equal amount above and 

below the payment amount for the crop that 

was prevented from being planted, eligible 

acres for the crop with the higher payment 

amount will be used first. 

(2) The prevented planting payment and premium 

will be based on: 

(i) The crop that was prevented from being 

planted if the insured crop with remaining 

eligible acreage would have resulted in a 

higher prevented planting payment than 

would have been paid for the crop that was 

prevented from being planted; or 

(ii) The crop from which eligible acres are being 

used if the insured crop with remaining 

eligible acreage will result in a lower 

prevented planting payment than would 

have been paid for the crop that was 

prevented from being planted. 

(3) For example, assume you were prevented from 

planting 200 acres of corn and have 100 acres 

eligible for a corn prevented planting guarantee 

that would result in a payment of $40 per acre. 

You also had 50 acres of potato eligibility that 

would result in a $100 per acre payment and 90 

acres of grain sorghum eligibility that would result 

in a $30 per acre payment. Your prevented 

planting coverage will be based on 100 acres of 

corn ($40 per acre), 90 acres of grain sorghum 

($30 per acre), and an additional 10 acres of corn 

(using potato eligible acres and paid as corn at 

$40 per acre). Your prevented planting payment 

would be $7,100 ($4,000 + $2,700 + $400). 

(4) Prevented planting coverage will be allowed as 

specified in section 17(h) only if the crop that was 

prevented from being planted meets all policy 

provisions, except for having an adequate base 

of eligible prevented planting acreage. Payment 

may be made based on crops other than those 

that were prevented from being planted even 

though other policy provisions, including but not 

limited to, processor contract and rotation 

requirements, have not been met for the crop 

whose eligible acres are being used. 

(5) An additional administrative fee will not be due as 

a result of using eligible prevented planting 

acreage as specified in section 17(h). 

(i) The prevented planting payment for any eligible 

acreage within a unit will be determined by: 

(1) Multiplying the prevented planting coverage level 

percentage you elected, or that is contained in the 

Crop Provisions if you did not elect a prevented 

planting coverage level percentage, by: 

(i) Your amount of insurance per acre; or 

(ii) The amount determined by multiplying the 

production guarantee (per acre) for timely 

planted acreage of the insured crop (or type, 

if applicable) by your price election or your 

projected price, whichever is applicable; 

(2) Multiplying the result of section 17(i)(1) by the 

number of eligible prevented planting acres in the 

unit; and 

(3) Multiplying the result of section 17(i)(2) by your 

share. 

18. 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: 

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(a) You must apply in writing for each written agreement 

(including renewal of a written agreement) no later 

than the sales closing date, except as provided in 

section 18(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 by FCIC, the written agreement will 

include all variable terms of the contract, including, 

but not limited to, the crop; practice, type or variety; 

guarantee; premium rate; and projected price, harvest 

price, price election or amount of insurance, as 

applicable, or the information needed to determine 

such variable terms. If the written agreement is for a 

county: 

(1) That has a price election or amount of insurance 

stated in the Special Provisions, or an addendum 

thereto, for the crop, practice, type or variety, the 

written agreement will contain the price election 

or amount of insurance stated in the Special 

Provisions or an addendum thereto, for the crop, 

practice, type or variety; 

(2) That does not have price elections or amounts of 

insurance stated in the Special Provisions, or an 

addendum thereto, for the crop, practice, type or 

variety, the written agreement will contain a price 

election or amount of insurance that does not 

exceed the price election or amount of insurance 

contained in the Special Provisions, or an 

addendum thereto, for the county that is used to 

establish the other terms of the written 

agreement, unless otherwise authorized by the 

Crop Provisions; 

(3) For which revenue protection is not available for 

the crop, but revenue protection is available in the 

State for the crop, the written agreement will 

contain the information used to establish the 

projected price and harvest price, as applicable, 

for that State; or 

(4) In a State for which revenue protection is not 

available for the crop, but revenue protection is 

available for the crop in another State, the written 

agreement is available for yield protection only, 

and will contain the information needed to 

determine the projected price for the crop from 

another State as determined by FCIC; 

(d) Each written agreement will only be valid for the 

number of crop years specified in the written 

agreement, and a multi-year written agreement: 

(1) Will only apply for any particular crop year 

designated in the written agreement if all terms 

and conditions in the written agreement are still 

applicable for the crop year and the conditions 

under which the written agreement has been 

provided have not changed prior to the beginning 

of the insurance period (If conditions change 

during or prior to the crop year, the written 

agreement will not be effective for that crop year 

but may still be effective for a subsequent crop 

year if conditions under which the written 

agreement has been provided exist for such 

year); 

(2) May be canceled in writing by: 

(i) FCIC not less than 30 days before the 

cancellation date if it discovers that any term 

or condition of the written agreement, 

including the premium rate, is not 

appropriate for the crop; or 

(ii) You or us on or before the cancellation date; 

(3) That is not renewed in writing after it expires, is 

not applicable for a crop year, or is canceled, then 

insurance coverage will be in accordance with the 

terms and conditions stated in this policy, without 

regard to the written agreement; and 

(4) Will be automatically canceled if you transfer your 

policy to another insurance provider (No notice 

will be provided to you and for any subsequent 

crop year, for a written agreement to be effective, 

you must timely request renewal of the written 

agreement in accordance with this section); 

(e) A request for a written agreement may be submitted: 

(1) After the sales closing date, but on or before the 

acreage reporting date, if you demonstrate your 

physical inability to submit the request on or 

before the sales closing date (e.g., you have been 

hospitalized or a blizzard has made it impossible 

to submit the written agreement request in person 

or by mail); 

(2) For the first year the written agreement is 

requested: 

(i) On or before the acreage reporting date to: 

(A) Insure unrated land, or an unrated 

practice, type or variety of a crop; 

although, if required by FCIC, such 

written agreements may be approved 

only after appraisal of the acreage by us 

and: 

(1) The crop’s potential is equal to or 

exceeds 90 percent of the yield 

used to determine your production 

guarantee or amount of insurance; 

and 

(2) You sign the written agreement no 

later than the date the first field is 

appraised or by the expiration date 

for you to accept the offer, 

whichever comes first; or 

(B) Establish optional units in accordance 

with FCIC procedures that otherwise 

would not be allowed, change the 

premium rate or transitional yield for 

designated high-risk land, or insure 

acreage that is greater than five percent 

of the planted acreage in the unit where 

the acreage has not been planted and 

harvested or insured in any of the three 

previous crop years; 

(ii) On or before the cancellation date to insure 

a crop in a county that does not have 

actuarial documents for the crop (If the Crop 

Provisions do not provide a cancellation 

date for the county, the cancellation date for 

other insurable crops in the same State that 

have similar final planting and harvesting 

dates will be applicable); or 

(iii) On or before the date specified in the Crop 

Provisions or Special Provisions; or 

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(3) For adding land or a crop to either an existing 

written agreement or a request for a written 

agreement, provided the request is submitted by 

the applicable deadline specified in section 18; 

(f) A request for a written agreement must contain: 

(1) For all written agreement requests: 

(i) A completed “Request for Actuarial 

Change” form; 

(ii) An APH form (except for policies that do not 

require APH) containing all the information 

needed to determine the approved yield for 

the current crop year (completed APH 

form), signed by you, or an unsigned, 

completed APH form with the applicable 

production reports signed and dated by you 

that are based on verifiable records of 

actual yields for the crop and county for 

which the written agreement is being 

requested (the actual yields do not 

necessarily have to be from the same 

physical acreage for which you are 

requesting a written agreement) for at least 

the most recent crop year in which the crop 

was planted during the base period and 

verifiable records of actual yields if required 

by FCIC; 

(iii) Evidence from agricultural experts or 

organic agricultural experts, as applicable, 

that the crop can be produced in the area if 

the request is to provide insurance for 

practices, types, or varieties that are not 

insurable, unless we are notified in writing 

by FCIC that such evidence is not required 

by FCIC; 

(iv) The legal description of the land (in areas 

where legal descriptions are available) and 

the FSA farm serial number including tract 

and field numbers, if available. The 

submission must also include an FSA aerial 

photograph, or field boundaries derived by 

a Geographic Information System or Global 

Positioning System, or other legible maps 

delineating field boundaries where you 

intend to plant the crop for which insurance 

is requested; 

(v) For any perennial crop, an inspection report 

completed by us; and 

(vi) All other information that supports your 

request for a written agreement (including 

but not limited to records pertaining to 

levees, drainage systems, flood frequency 

data, soil types, elevation, etc.); 

(2) For written agreement requests for counties 

without actuarial documents for the crop, the 

requirements in section 18(f)(1) (except section 

18(f)(1)(ii)) and: 

(i) For a crop you have previously planted in 

the county or area for at least three years: 

(A) A completed APH form signed by you 

(only for crop policies that require APH) 

based on verifiable production records 

for at least the three most recent crop 

years in which the crop was planted; 

and 

(B) Verifiable production records for at least 

the three most recent crop years in 

which the crop was planted: 

(1) The verifiable production records 

do not necessarily have to be from 

the same physical acreage for 

which you are requesting a written 

agreement; and 

(2) Verifiable production records do 

not have to be submitted if you 

have insured the crop in the county 

or area for at least the previous 

three crop years and have certified 

the yields on the applicable 

production reports or the yields are 

based on your insurance claim 

(although you are not required to 

submit production records, you still 

must maintain production records 

in accordance with section 21); 

(ii) For a crop you have not previously planted 

in the county or area for at least three years: 

(A) A completed APH form signed by you 

(only for crop policies that require APH) 

based on verifiable production records 

for at least the three most recent crop 

years for a similar crop from acreage: 

(1) In the county; or 

(2) In the area if you have not 

produced the crop in the county; 

and 

(B) Verifiable production records for at least 

the three most recent crop years in 

which the similar crop was planted: 

(1) The verifiable production records 

for the similar crop do not 

necessarily have to be from the 

same physical acreage for which 

you are requesting a written 

agreement; and 

(2) Verifiable production records do 

not have to be submitted if you 

have insured the similar crop for at 

least the three previous crop years 

and have certified the yields on the 

applicable production reports or the 

yields are based on your insurance 

claim (although you are not 

required to submit production 

records, you still must maintain 

production records in accordance 

with section 21); 

(C) If you have at least one year of 

production records, but less than three 

years of production records, for the crop 

in the county or area but have 

production records for a similar crop in 

the county or area such that the 

combination of both sets of records 

results in at least three years of 

production records, you must provide 

the information required in sections 

18(f)(2)(i)(A) & (B) for the years you 

grew the crop in the county or area and 

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the information required in sections 

18(f)(2)(ii)(A) & (B) regarding the similar 

crop for the remaining years; and 

(D) A similar crop to the crop for which a 

written agreement is being requested 

must: 

(1) Be included in the same category 

of crops, e.g., row crops (including, 

but not limited to, small grains, 

coarse grains, and oil seed crops), 

vegetable crops grown in rows, tree 

crops, vine crops, bush crops, etc., 

as defined by FCIC; 

(2) Have substantially the same 

growing season (i.e., normally 

planted around the same dates and 

harvested around the same dates); 

(3) Require comparable agronomic 

conditions (e.g., comparable needs 

for water, soil, etc.); and 

(4) Be subject to substantially the 

same risks (frequency and severity 

of loss would be expected to be 

comparable from the same cause 

of loss); 

(iii) The dates you and other growers in the area 

normally plant and harvest the crop, if 

applicable; 

(iv) The name, location of, and approximate 

distance to the place the crop will be sold or 

used by you; 

(v) For any irrigated practice, the water source, 

method of irrigation, and the amount of 

water needed for an irrigated practice for the 

crop; and 

(vi) All other information that supports your 

request for a written agreement (such as 

publications regarding yields, practices, 

risks, climatic data, etc.); and 

(3) Such other information as specified in the Special 

Provisions or required by FCIC; 

(g) A request for a written agreement will not be accepted 

if: 

(1) The request is submitted to us after the applicable 

deadline contained in sections 18(a) or (e); 

(2) All the information required in section 18(f) is not 

submitted to us with the request for a written 

agreement (The request for a written agreement 

may be accepted if any missing information is 

available from other acceptable sources); 

(3) The request is to add land to an existing written 

agreement or to add land to a request for a written 

agreement and the request to add the land is not 

submitted by the applicable deadline specified in 

sections 18(a) or (e); or 

(4) The request is not authorized by the policy; 

(h) A request for a written agreement will be denied if: 

(1) FCIC determines the risk is excessive; 

(2) Your APH history demonstrates you have not 

produced at least 50 percent of the transitional 

yield for the crop, type, and practice obtained 

from a county with similar agronomic conditions 

and risk exposure; 

(3) There is not adequate information available to 

establish an actuarially sound premium rate and 

insurance coverage for the crop and acreage; 

(4) The crop was not previously grown in the county 

or there is no evidence of a market for the crop 

based on sales receipts, contemporaneous 

feeding records or a contract for the crop 

(applicable only for counties without actuarial 

documents); or 

(5) Agricultural experts or organic agricultural 

experts determine the crop is not adapted to the 

county; 

(i) A written agreement will be denied unless: 

(1) FCIC approves the written agreement; 

(2) The original written agreement is signed by you 

and delivered to us, or postmarked, not later than 

the expiration date for you to accept the offer; 

(3) We accept the written agreement offer; and 

(4) The crop meets the minimum appraisal amount 

specified in section 18(e)(2)(i)(A)(1), if applicable; 

(j) Multi-year written agreements may be canceled and 

requests for renewal may be rejected if the severity or 

frequency of your loss experience under the written 

agreement is significantly worse than expected based 

on the information provided by you or used to 

establish your premium rate and the loss experience 

of other crops with similar risks in the area; 

(k) With respect to your and our ability to reject an offer 

for a written agreement: 

(1) When a single Request for Actuarial Change form 

is submitted, regardless of how many requests for 

changes are contained on the form, you and we 

can only accept or reject the written agreement in 

its entirety (you cannot reject specific terms of the 

written agreement and accept others); 

(2) When multiple Request for Actuarial Change 

forms are submitted, regardless of when the 

forms are submitted, for the same condition or for 

the same crop (i.e., to insure corn on ten legal 

descriptions where there are no actuarial 

documents in the county or the request is to 

change the premium rates from the high-risk 

rates) all these forms may be treated as one 

request and you and we will only have the option 

of accepting or rejecting the written agreement in 

its entirety (you cannot reject specific terms of the 

written agreement and accept others); 

(3) When multiple Request for Actuarial Change 

forms are submitted, regardless of when the 

forms are submitted, for the different conditions 

or for different crops, separate agreements may 

be issued and you and we will have the option to 

accept or reject each written agreement; and 

(4) If we reject an offer for a written agreement 

approved by FCIC, you may seek arbitration or 

mediation of our decision to reject the offer in 

accordance with section 20; 

(l) Any information that is submitted by you after the 

applicable deadlines in sections 18(a) and (e) will not 

be considered, unless such information is specifically 

requested in accordance with section 18(f)(3); 

(m) If the written agreement or the policy is canceled for 

any reason, or the period for which an existing written 

agreement is in effect ends, a request for renewal of 

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the written agreement must contain all the information 

required by this section and be submitted in 

accordance with section 18(a), unless otherwise 

specified by FCIC; 

(n) If a request for a written agreement is not approved 

by FCIC, a request for a written agreement for any 

subsequent crop year that fails to address the stated 

basis for the denial will not be accepted (If the request 

for a written agreement contains the same information 

that was previously rejected or denied, you will not 

have any right to arbitrate, mediate or appeal the nonacceptance of your request); and 

(o) If you disagree with any determination made by FCIC 

under section 18, you may obtain administrative 

review in accordance with 7 CFR part 400, subpart J 

or appeal in accordance with 7 CFR part 11, unless 

you have failed to comply with the provisions 

contained in section 18(g) or section 18(i)(2) or (4). 

19. Crops as Payment. 

You must not abandon any crop to us. We will not accept 

any crop as compensation for payments due us. 

20. Mediation, Arbitration, Appeal, Reconsideration, and 

Administrative and Judicial Review. 

(a) If you and we fail to agree on any determination made 

by us except those specified in section 20(d) or (e), 

the disagreement may be resolved through mediation 

in accordance with section 20(g). If resolution cannot 

be reached through mediation, or you and we do not 

agree to mediation, the disagreement must be 

resolved through arbitration in accordance with the 

rules of the American Arbitration Association (AAA), 

except as provided in sections 20(c) and (f), and 

unless rules are established by FCIC for this purpose. 

Any mediator or arbitrator with a familial, financial or 

other business relationship to you or us, or our agent 

or loss adjuster, is disqualified from hearing the 

dispute. 

(1) All disputes involving determinations made by us, 

except those specified in section 20(d) or (e), are 

subject to mediation or arbitration. However, if 

the dispute in any way involves a policy or 

procedure interpretation, regarding whether a 

specific policy provision or procedure is 

applicable to the situation, how it is applicable, or 

the meaning of any policy provision or procedure, 

either you or we must obtain an interpretation 

from FCIC in accordance with 7 CFR part 400, 

subpart X or such other procedures as 

established by FCIC. 

(i) Any interpretation by FCIC will be binding in 

any mediation or arbitration. 

(ii) Failure to obtain any required interpretation 

from FCIC will result in the nullification of 

any agreement or award. 

(iii) An interpretation by FCIC of a policy 

provision is considered a determination that 

is a matter of general applicability. 

(iv) An interpretation by FCIC of a procedure 

may be appealed to the National Appeals 

Division in accordance with 7 CFR part 11. 

(2) Unless the dispute is resolved through mediation, 

the arbitrator must provide to you and us a written 

statement describing the issues in dispute, the 

factual findings, the determinations and the 

amount and basis for any award and breakdown 

by claim for any award. The statement must also 

include any amounts awarded for interest. 

Failure of the arbitrator to provide such written 

statement will result in the nullification of all 

determinations of the arbitrator. All agreements 

reached through settlement, including those 

resulting from mediation, must be in writing and 

contain at a minimum a statement of the issues in 

dispute and the amount of the settlement. 

(b) Regardless of whether mediation is elected: 

(1) The initiation of arbitration proceedings must 

occur within one year of the date we denied your 

claim or rendered the determination with which 

you disagree, whichever is later; 

(2) If you fail to initiate arbitration in accordance with 

section 20(b)(1) and complete the process, you 

will not be able to resolve the dispute through 

judicial review; 

(3) If arbitration has been initiated in accordance with 

section 20(b)(1) and completed, and judicial 

review is sought, suit must be filed not later than 

one year after the date the arbitration decision 

was rendered; and 

(4) In any suit, if the dispute in any way involves a 

policy or procedure interpretation, regarding 

whether a specific policy provision or procedure 

is applicable to the situation, how it is applicable, 

or the meaning of any policy provision or 

procedure, an interpretation must be obtained 

from FCIC in accordance with 7 CFR part 400, 

subpart X or such other procedures as 

established by FCIC. Such interpretation will be 

binding. 

(c) Any decision rendered in arbitration is binding on you 

and us unless judicial review is sought in accordance 

with section 20(b)(3). Notwithstanding any provision 

in the rules of the AAA, you and we have the right to 

judicial review of any decision rendered in arbitration. 

(d) With respect to good farming practices: 

(1) We will make decisions regarding what 

constitutes a good farming practice and 

determinations of assigned production for 

uninsured causes for your failure to use good 

farming practices. 

(i) If you disagree with our decision of what 

constitutes a good farming practice, you 

must request a determination from FCIC of 

what constitutes a good farming practice 

before filing any suit against FCIC. 

(ii) If you disagree with our determination of the 

amount of assigned production, you must 

use the arbitration or mediation process 

contained in this section. 

(iii) You may not sue us for our decisions 

regarding whether good farming practices 

were used by you. 

(2) FCIC will make determinations regarding what 

constitutes a good farming practice. If you do not 

agree with any determination made by FCIC: 

(i) You may request reconsideration by FCIC 

of this determination in accordance with the 

reconsideration process established for this 

purpose and published at 7 CFR part 400, 

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subpart J; or 

(ii) You may file suit against FCIC. 

(A) You are not required to request 

reconsideration from FCIC before filing 

suit. 

(B) Any suit must be brought against FCIC 

in the United States district court for the 

district in which the insured acreage is 

located. 

(C) Suit must be filed against FCIC not later 

than one year after the date: 

(1) Of the determination; or 

(2) Reconsideration is completed, if 

reconsideration was requested 

under section 20(d)(2)(i). 

(e) Except as provided in sections 18(n) or (o), or 20(d) 

or (k), if you disagree with any other determination 

made by FCIC or any claim where FCIC is directly 

involved in the claims process or directs us in the 

resolution of the claim, you may obtain an 

administrative review in accordance with 7 CFR part 

400, subpart J (administrative review) or appeal in 

accordance with 7 CFR part 11 (appeal). 

(1) If you elect to bring suit after completion of any 

appeal, such suit must be filed against FCIC not 

later than one year after the date of the decision 

rendered in such appeal. 

(2) Such suit must be brought in the United States 

district court for the district in which the insured 

acreage is located. 

(3) Under no circumstances can you recover any 

attorney fees or other expenses, or any punitive, 

compensatory or any other damages from FCIC. 

(f) In any mediation, arbitration, appeal, administrative 

review, reconsideration or judicial process, the terms 

of this policy, the Act, and the regulations published 

at 7 CFR chapter IV, including the provisions of 7 CFR 

part 400, subpart P, are binding. Conflicts between 

this policy and any state or local laws will be resolved 

in accordance with section 31. If there are conflicts 

between any rules of the AAA and the provisions of 

your policy, the provisions of your policy will control. 

(g) To resolve any dispute through mediation, you and we 

must both: 

(1) Agree to mediate the dispute; 

(2) Agree on a mediator; and 

(3) Be present, or have a designated representative 

who has authority to settle the case present, at 

the mediation. 

(h) Except as provided in section 20(i), no award or 

settlement in mediation, arbitration, appeal, 

administrative review or reconsideration process or 

judicial review can exceed the amount of liability 

established or which should have been established 

under the policy, except for interest awarded in 

accordance with section 26. 

(i) In a judicial review only, you may recover attorneys 

fees or other expenses, or any punitive, 

compensatory or any other damages from us only if 

you obtain a determination from FCIC that we, our 

agent or loss adjuster failed to comply with the terms 

of this policy or procedures issued by FCIC and such 

failure resulted in you receiving a payment in an 

amount that is less than the amount to which you were 

entitled. Requests for such a determination should be 

addressed to the following: USDA/RMA/Deputy 

Administrator of Compliance/ Stop 0806, 1400 

Independence Avenue, SW., Washington, D.C. 

20250-0806. 

(j) If FCIC elects to participate in the adjustment of your 

claim, or modifies, revises or corrects your claim, prior 

to payment, you may not bring an arbitration, 

mediation or litigation action against us. You must 

request administrative review or appeal in accordance 

with section 20(e). 

(k) Any determination made by FCIC that is a matter of 

general applicability is not subject to administrative 

review under 7 CFR part 400, subpart J or appeal 

under 7 CFR part 11. If you want to seek judicial 

review of any FCIC determination that is a matter of 

general applicability, you must request a 

determination of non-appealability from the Director of 

the National Appeals Division in accordance with 7 

CFR 11.6 before seeking judicial review. 

21. Access to Insured Crop and Records, and Record 

Retention. 

(a) We, and any employee of USDA authorized to 

investigate or review any matter relating to crop 

insurance, have the right to examine the insured crop 

and all records related to the insured crop and any 

mediation, arbitration or litigation involving the insured 

crop as often as reasonably required during the 

record retention period. 

(b) You must retain, and provide upon our request, or the 

request of any employee of USDA authorized to 

investigate or review any matter relating to crop 

insurance: 

(1) Complete records of the planting, replanting, 

inputs, production, harvesting, and disposition of 

the insured crop on each unit for three years after 

the end of the crop year (This requirement also 

applies to all such records for acreage that is not 

insured); 

(2) All records used to establish the amount of 

production you certified on your production 

reports used to compute your approved yield for 

three years after the calendar date for the end of 

the insurance period for the crop year for which 

you initially certified such records, unless such 

records have already been provided to us (e.g., if 

you are a new insured and you certify 2007 

through 2010 crop year production records in 

2011 to determine your approved yield for the 

2011 crop year, you must retain all records from 

the 2007 through 2010 crop years through the 

2014 crop year. If you subsequently certify 

records of the 2011 crop year in 2012 to 

determine your approved yield for the 2012 crop 

year, you must retain the 2011 crop year records 

through the 2015 crop year and so forth for each 

subsequent year of production records certified); 

and 

(3) While you are not required to maintain records 

beyond the record retention period specified in 

section 21(b)(2), at any time, if we or FCIC have 

evidence that you, or anyone assisting you, 

knowingly misreported any information related to 

any yield you have certified, we or FCIC will 

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replace all yields in your APH database 

determined to be incorrect with the lesser of an 

assigned yield determined in accordance with 

section 3 or the yield determined to be correct: 

(i) If an overpayment has been made to you, 

you will be required to repay the overpaid 

amount; and 

(ii) Replacement of yields in accordance with 

section 21(b)(3) does not exempt you from 

other sanctions applicable under the terms 

of the policy or any applicable law. 

(c) We, or any employee of USDA authorized to 

investigate or review any matter relating to crop 

insurance, may extend the record retention period 

beyond three years by notifying you of such extension 

in writing. 

(d) By signing the application for insurance authorized 

under the Act or by continuing insurance for which you 

have previously applied, you authorize us or USDA, 

or any person acting for us or USDA authorized to 

investigate or review any matter relating to crop 

insurance, to obtain records relating to the planting, 

replanting, inputs, production, harvesting, and 

disposition of the insured crop from any person who 

may have custody of such records, including but not 

limited to, FSA offices, banks, warehouses, gins, 

cooperatives, marketing associations, and 

accountants. You must assist in obtaining all records 

we or any employee of USDA authorized to 

investigate or review any matter relating to crop 

insurance request from third parties. 

(e) Failure to provide access to the insured crop or the 

farm, authorize access to the records maintained by 

third parties or assist in obtaining such records will 

result in a determination that no indemnity is due for 

the crop year in which such failure occurred. 

(f) Failure to maintain or provide records will result in: 

(1) The imposition of an assigned yield in 

accordance with section 3(f)(1) and 7 CFR part 

400, subpart G for those crop years for which you 

do not have the required production records to 

support a certified yield; 

(2) A determination that no indemnity is due if you fail 

to provide records necessary to determine your 

loss; 

(3) Combination of the optional units into the 

applicable basic unit; 

(4) Assignment of production to the units by us if you 

fail to maintain separate records: 

(i) For your basic units; or 

(ii) For any uninsurable acreage; and 

(5) The imposition of consequences specified in 

section 6(g), as applicable. 

(g) If the imposition of an assigned yield under section 

21(f)(1) would affect an indemnity, prevented planting 

payment or replant payment that was paid in a prior 

crop year, such claim will be adjusted and you will be 

required to repay any overpaid amounts. 

22. Other Insurance. 

(a) Other Like Insurance - Nothing in this section 

prevents you from obtaining other insurance not 

authorized under the Act. However, unless 

specifically required by policy provisions, you must 

not obtain any other crop insurance authorized under 

the Act on your share of the insured crop. If you 

cannot demonstrate that you did not intend to have 

more than one policy in effect, you may be subject to 

the consequences authorized under this policy, the 

Act, or any other applicable statute. If you can 

demonstrate that you did not intend to have more than 

one policy in effect (For example, an application to 

transfer your policy or written notification to an 

insurance provider that states you want to purchase, 

or transfer, insurance and you want any other policies 

for the crop canceled would demonstrate you did not 

intend to have duplicate policies), and: 

(1) One is an additional coverage policy and the 

other is a Catastrophic Risk Protection policy: 

(i) The additional coverage policy will apply if 

both policies are with the same insurance 

provider or, if not, both insurance providers 

agree; or 

(ii) The policy with the earliest date of 

application will be in force if both insurance 

providers do not agree; or 

(2) Both are additional coverage policies or both are 

Catastrophic Risk Protection policies, the policy 

with the earliest date of application will be in force 

and the other policy will be void, unless both 

policies are with: 

(i) The same insurance provider and the 

insurance provider agrees otherwise; or 

(ii) Different insurance providers and both 

insurance providers agree otherwise. 

(b) Other Insurance Against Fire - If you have other 

insurance, whether valid or not, against damage to 

the insured crop by fire during the insurance period, 

and you have not excluded coverage for fire from this 

policy, we will be liable for loss due to fire caused by 

a naturally occurring event only for the smaller of: 

(1) The amount of indemnity determined pursuant to 

this policy without regard to such other insurance; 

or 

(2) The amount by which the loss from fire is 

determined to exceed the indemnity paid or 

payable under such other insurance. 

(c) For the purpose of section 22(b), the amount of loss 

from fire will be the difference between the total value 

of the insured crop before the fire and the total value 

of the insured crop after the fire. This amount will be 

determined in accordance with the provisions in 

section 35. 

23. Conformity to Food Security Act. 

Although your violation of a number of federal statutes, 

including the Act, may cause cancellation, termination, or 

voidance of your insurance contract, you should be 

specifically aware that your policy will be canceled if you 

are determined to be ineligible to receive benefits under 

the Act due to violation of the controlled substance 

provisions (title XVII) of the Food Security Act of 1985 

(Pub. L. 99-198) and the regulations promulgated under 

the Act by USDA. Your insurance policy will be canceled 

if you are determined, by the appropriate Agency, to be in 

violation of these provisions. We will recover any and all 

monies paid to you or received by you during your period 

of ineligibility, and your premium will be refunded, less an 

amount for expenses and handling equal to 20 percent of 

the premium paid or to be paid by you. 

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24. Amounts Due Us. 

(a) Interest will accrue at the rate of 1.25 percent simple 

interest per calendar month on any unpaid amount 

owed to us or on any unpaid administrative fees owed 

to FCIC. For the purpose of premium amounts owed 

to us or administrative fees owed to FCIC, interest will 

start to accrue on the first day of the month following 

the issuance of the notice by us, provided that a 

minimum of 30 days have passed from the premium 

billing date specified in the Special Provisions. We 

will collect any unpaid amounts owed to us and any 

interest owed thereon and, prior to the termination 

date, we will collect any administrative fees and 

interest owed thereon to FCIC. After the termination 

date, FCIC will collect any unpaid administrative fees 

and any interest owed thereon for any catastrophic 

risk protection policy and we will collect any unpaid 

administrative fees and any interest owed thereon for 

additional coverage policies. 

(b) For the purpose of any other amounts due us, such 

as repayment of indemnities found not to have been 

earned, interest will start to accrue on the date that 

notice is issued to you for the collection of the 

unearned amount. Amounts found due under this 

paragraph will not be charged interest if payment is 

made within 30 days of issuance of the notice by us. 

The amount will be considered delinquent if not paid 

within 30 days of the date the notice is issued by us. 

(c) All amounts paid will be applied first to expenses of 

collection (see subsection (d) of this section) if any, 

second to the reduction of accrued interest, and then 

to the reduction of the principal balance. 

(d) If we determine that it is necessary to contract with a 

collection agency or to employ an attorney to assist in 

collection, you agree to pay all of the expenses of 

collection. 

(e) The portion of the amounts owed by you for a policy 

authorized under the Act that are owed to FCIC may 

be collected in part through administrative offset from 

payments you receive from United States government 

agencies in accordance with 31 U.S.C. chapter 37. 

Such amounts include all administrative fees, and the 

share of the overpaid indemnities and premiums 

retained by FCIC plus any interest owed thereon. 

25. Correction of Errors 

(a) In addition to any other corrections allowed in your 

policy subject to section 25(b), we may correct: 

(1) Within 60 days after the sales closing date, any 

incorrect information on your application or 

provided by the sales closing date, including 

identification numbers for you and any person 

with an substantial beneficial interest in you, to 

ensure that the eligibility information is correct 

and consistent with information reported by you 

to any USDA agency; 

(2) Within 30 days after the acreage reporting date, 

information reported to reconcile errors in the 

information with correct information that has been 

determined by any USDA agency; 

(3) Within 30 days of any subsequent correction of 

data by FSA, erroneous information corrected as 

a result of verification of information; and 

(4) At any time, any incorrect information if the 

incorrect information was caused by electronic 

transmission errors by us or errors made by any 

agency within USDA in transmitting the 

information provided by you for purposes of other 

USDA programs. 

(b) Corrections may be made but will not take effect for 

the current crop year if the correction would allow you 

to: 

(1) Avoid ineligibility requirements for insurance or 

obtain a disproportionate benefit under the crop 

insurance program or any related program 

administered by the Secretary; 

(2) Obtain, enhance, or increase an insurance 

guarantee or indemnity if a cause of loss exists or 

has occurred before any correction has been 

made, or avoid premium owed if no loss is likely 

to occur; or 

(3) Avoid an obligation or requirement under any 

Federal or State law. 

26. Interest Limitations. 

We will pay simple interest computed on the net indemnity 

ultimately found to be due by us or by a final judgment of 

a court of competent jurisdiction, from and including the 

61st day after the date you sign, date, and submit to us 

the properly completed claim on our form. Interest will be 

paid only if the reason for our failure to timely pay is NOT 

due to your failure to provide information or other material 

necessary for the computation or payment of the 

indemnity. The interest rate will be that established by the 

Secretary of the Treasury under section 12 of the Contract 

Disputes Act of 1978 (41 U.S.C. 611) and published in the 

Federal Register semiannually on or about January 1 and 

July 1 of each year, and may vary with each publication. 

27. Concealment, Misrepresentation or Fraud. 

(a) If you have falsely or fraudulently concealed the fact 

that you are ineligible to receive benefits under the Act 

or if you or anyone assisting you has intentionally 

concealed or misrepresented any material fact 

relating to this policy: 

(1) This policy will be voided; and 

(2) You may be subject to remedial sanctions in 

accordance with 7 CFR part 400, subpart R. 

(b) Even though the policy is void, you will still be required 

to pay 20 percent of the premium that you would 

otherwise be required to pay to offset costs incurred 

by us in the service of this policy. If previously paid, 

the balance of the premium will be returned. 

(c) Voidance of this policy will result in you having to 

reimburse all indemnities paid for the crop year in 

which the voidance was effective. 

(d) Voidance will be effective on the first day of the 

insurance period for the crop year in which the act 

occurred and will not affect the policy for subsequent 

crop years unless a violation of this section also 

occurred in such crop years. 

(e) If you willfully and intentionally provide false or 

inaccurate information to us or FCIC or you fail to 

comply with a requirement of FCIC, in accordance 

with 7 CFR part 400, subpart R, FCIC may impose on 

you: 

(1) A civil fine for each violation in an amount not to 

exceed the greater of: 

(i) The amount of the pecuniary gain obtained 

as a result of the false or inaccurate 

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information provided or the noncompliance 

with a requirement of FCIC; or 

(ii) $10,000; and 

(2) A disqualification for a period of up to 5 years from 

receiving any monetary or non-monetary benefit 

provided under each of the following: 

(i) Any crop insurance policy offered under the 

Act; 

(ii) The Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 7333 et seq.); 

(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 

et seq.); 

(iv) The Commodity Credit Corporation Charter 

Act (15 U.S.C. 714 et seq.); 

(v) The Agricultural Adjustment Act of 1938 (7 

U.S.C. 1281 et seq.); 

(vi) Title XII of the Food Security Act of 1985 (16 

U.S.C. 3801 et seq.); 

(vii) The Consolidated Farm and Rural 

Development Act (7 U.S.C. 1921 et seq.); 

and 

(viii) Any federal law that provides assistance to 

a producer of an agricultural commodity 

affected by a crop loss or a decline in the 

prices of agricultural commodities. 

28. Transfer of Coverage and Right to Indemnity.

If you transfer any part of your share during the crop year, 

you may transfer your coverage rights, if the transferee is 

eligible for crop insurance. We will not be liable for any 

more than the liability determined in accordance with your 

policy that existed before the transfer occurred. The 

transfer of coverage rights must be on our form and will 

not be effective until approved by us in writing. Both you 

and the transferee are jointly and severally liable for the 

payment of the premium and administrative fees. The 

transferee has all rights and responsibilities under this 

policy consistent with the transferee’s interest. 

29. Assignment of Indemnity. 

(a) You may assign your right to an indemnity for the crop 

year only to creditors or other persons to whom you 

have a financial debt or other pecuniary obligation. 

You may be required to provide proof of the debt or 

other pecuniary obligation before we will accept the 

assignment of indemnity. 

(b) All assignments must be on our form and must be 

provided to us. Each assignment form may contain 

more than one creditor or other person to whom you 

have a financial debt or other pecuniary obligation. 

(c) Unless you have provided us with a properly executed 

assignment of indemnity, we will not make any 

payment to a lienholder or other person to whom you 

have a financial debt or other pecuniary obligation 

even if you may have a lien or other assignment 

recorded elsewhere. Under no circumstances will we 

be liable: 

(1) To any lienholder or other person to whom you 

have a financial debt or other pecuniary obligation 

where you have failed to include such lienholder 

or person on a properly executed assignment of 

indemnity provided to us; or 

(2) To pay to all lienholders or other persons to whom 

you have a financial debt or other pecuniary 

obligation any amount greater than the total 

amount of indemnity owed under the policy. 

(d) If we have received the properly executed assignment 

of indemnity form: 

(1) Only one payment will be issued jointly in the 

names of all assignees and you; and 

(2) Any assignee will have the right to submit all loss 

notices and forms as required by the policy. 

(e) If you have suffered a loss from an insurable cause 

and fail to file a claim for indemnity within the period 

specified in section 14(e), the assignee may submit 

the claim for indemnity not later than 30 days after the 

period for filing a claim has expired. We will honor the 

terms of the assignment only if we can accurately 

determine the amount of the claim. However, no 

action will lie against us for failure to do so. 

30. [Reserved] 

31. Applicability of State and Local Statutes. 

If the provisions of this policy conflict with statutes of the 

State or locality in which this policy is issued, the policy 

provisions will prevail. State and local laws and 

regulations in conflict with federal statutes, this policy, and 

the applicable regulations do not apply to this policy. 

32. Descriptive Headings. 

The descriptive headings of the various policy provisions 

are formulated for convenience only and are not intended 

to affect the construction or meaning of any of the policy 

provisions. 

33. Notices. 

(a) All notices required to be given by you must be in 

writing and received by your crop insurance agent 

within the designated time unless otherwise provided 

by the notice requirement. Notices required to be 

given immediately may be by telephone or in person 

and confirmed in writing. Time of the notice will be 

determined by the time of our receipt of the written 

notice. If the date by which you are required to submit 

a report or notice falls on Saturday, Sunday, or a 

Federal holiday, or if your agent’s office is, for any 

reason, not open for business on the date you are 

required to submit such notice or report, such notice 

or report must be submitted on the next business day. 

(b) All notices and communications required to be sent by 

us to you will be mailed to the address contained in 

your records located with your crop insurance agent. 

Notice sent to such address will be conclusively 

presumed to have been received by you. You should 

advise us immediately of any change of address. 

34. Units. 

(a) You may elect an enterprise unit or whole-farm unit in 

accordance with the following: 

(1) For crops for which revenue protection is 

available, you may elect: 

(i) An enterprise unit if you elected revenue 

protection or yield protection; or 

(ii) A whole-farm unit if you elected: 

(A) Revenue protection and revenue 

protection is provided unless limited by 

the Special Provisions; or 

(B) Yield protection only if whole-farm units 

are allowed by the Special Provisions; 

(2) For crops for which revenue protection is not 

available, enterprise units or whole-farm units are 

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available only if allowed by the Special 

Provisions; 

(3) You must make such election on or before the 

earliest sales closing date for the insured crops in 

the unit and report such unit structure on your 

acreage report: 

(i) For counties in which the actuarial 

documents specify a fall or winter sales 

closing date and a spring sales closing date, 

you may change your unit election on or 

before the spring sales closing date (earliest 

spring sales closing date for crops in the unit 

if electing a whole-farm unit) if you do not 

have any insured fall planted acreage of the 

insured crop; 

(ii) Your unit selection will remain in effect from 

year to year unless you notify us in writing 

by the earliest sales closing date for the 

crop year for which you wish to change this 

election; and 

(iii) These units may not be further divided 

except as specified herein; 

(4) For an enterprise unit: 

(i) To qualify, an enterprise unit must contain 

all of the insurable acreage of the same 

insured crop in: 

(A) Two or more sections, if sections are 

the basis for optional units where the 

insured acreage is located; 

(B) Two or more section equivalents 

determined in accordance with FCIC 

issued procedures, if section 

equivalents are the basis for optional 

units where the insured acreage is 

located or are applicable to the insured 

acreage; 

(C) Two or more FSA farm serial numbers, 

if FSA farm serial numbers are the 

basis for optional units where the 

insured acreage is located; 

(D) Any combination of two or more 

sections, section equivalents, or FSA 

farm serial numbers, if more than one of 

these are the basis for optional units 

where the acreage is located or are 

applicable to the insured acreage (e.g., 

if a portion of your acreage is located 

where sections are the basis for 

optional units and another portion of 

your acreage is located where FSA 

farm serial numbers are the basis for 

optional units, you may qualify for an 

enterprise unit based on a combination 

of these two parcels); 

(E) One section, section equivalent, or FSA 

farm serial number that contains at 

least 660 planted acres of the insured 

crop. You may qualify under this 

paragraph based only on the type of 

parcel that is utilized to establish 

optional units where your insured 

acreage is located (e.g., if having two or 

more sections is the basis for optional 

units where the insured acreage is 

located, you may qualify for an 

enterprise unit if you have at least 660 

planted acres of the insured crop in one 

section); or 

(F) Two or more units established by 

written agreement; and 

(ii) At least two of the sections, section 

equivalents, FSA farm serial numbers, or 

units established by written agreement in 

section 34(a)(4)(i)(A), (B), (C), (D), or (F) 

must each have planted acreage that 

constitutes at least the lesser of 20 acres or 

20 percent of the insured crop acreage in 

the enterprise unit. If there is planted 

acreage in more than two sections, section 

equivalents, FSA farm serial numbers or 

units established by written agreement in 

section 34(a)(4)(i)(A), (B), (C), (D), or (F), 

these can be aggregated to form at least 

two parcels to meet this requirement. For 

example, if sections are the basis for 

optional units where the insured acreage is 

located and you have 80 planted acres in 

section one, 10 planted acres in section two, 

and 10 planted acres in section three, you 

may aggregate sections two and three to 

meet this requirement. 

(iii) The crop must be insured under revenue 

protection or yield protection, unless 

otherwise specified in the Special 

Provisions; 

(iv) If you want to change your unit structure 

from enterprise units to basic or optional 

units in any subsequent crop year, you must 

maintain separate records of acreage and 

production: 

(A) For each basic unit, to be eligible to use 

records to establish the production 

guarantee for the basic unit; or 

(B) For optional units, to qualify for optional 

units and to be eligible to use such 

records to establish the production 

guarantee for the optional units; 

(v) If you do not comply with the production 

reporting provisions in section 3(f) for the 

enterprise unit, your yield for the enterprise 

unit will be determined in accordance with 

section 3(f)(1); 

(vi) You must separately designate on the 

acreage report each section or other basis 

in section 34(a)(4)(i) you used to qualify for 

an enterprise unit; and 

(vii) If we discover you do not qualify for an 

enterprise unit and such discovery is made: 

(A) On or before the acreage reporting 

date, your unit division will be based on 

the basic or optional units, whichever 

you report on your acreage report and 

qualify for; or 

(B) At any time after the acreage reporting 

date, we will assign the basic unit 

structure; and 

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(viii) If allowed by the actuarial documents, you 

may elect separate enterprise units for 

irrigated and non-irrigated practices. 

(A) You may elect one enterprise unit for all 

irrigated practices and one enterprise 

unit for all non-irrigated practices. 

(B) You must separately meet the 

requirements in section 34(a)(4) for 

each enterprise unit. 

(C) If we discover you do not qualify for an 

enterprise unit for the irrigated and nonirrigated practices and such discovery 

is made: 

(1) On or before the acreage reporting 

date, you may elect to insure all 

acreage of the crop in the county in 

one enterprise unit provided you 

meet the requirements in section 

34(a)(4), or your unit division will be 

based on basic or optional units, 

whichever you report on your 

acreage report and qualify for; or 

(2) At any time after the acreage 

reporting date, your unit structure 

will be one enterprise unit provided 

you meet the requirements in 

section 34(a)(4). Otherwise, we 

will assign the basic unit structure. 

(5) For a whole-farm unit: 

(i) To qualify: 

(A) All crops in the whole-farm unit must be 

insured: 

(1) Under revenue protection (if you 

elected the harvest price exclusion 

for any crop, you must elect it for all 

crops in the whole-farm unit), 

unless the Special Provisions allow 

whole-farm units for another plan of 

insurance and you insure all crops 

in the whole-farm unit under such 

plan (e.g., if you plant corn and 

soybeans for which you have 

elected revenue protection and you 

plant canola for which you have 

elected yield protection, the corn, 

soybeans and canola would be 

assigned the unit structure in 

accordance with section 

34(a)(5)(v)); 

(2) With us (e.g., if you insure your 

corn and canola with us and your 

soybeans with a different insurance 

provider, the corn, soybeans and 

canola would be assigned the unit 

structure in accordance with 

section 34(a)(5)(v)); and 

(3) At the same coverage level (e.g., if 

you elect to insure your corn and 

canola at the 65 percent coverage 

level and your soybeans at the 75 

percent coverage level, the corn, 

soybeans and canola would be 

assigned the unit structure in 

accordance with section 

34(a)(5)(v)) unless you can elect 

separate coverage levels for all 

irrigated and all non-irrigated crops 

in accordance with section 

3(b)(2)(iii) (e.g., if you elect to 

insure your irrigated corn at the 65 

percent coverage level you must 

insure your irrigated canola at the 

65 percent coverage level. If you 

elect to insure your non-irrigated 

corn at the 70 percent coverage 

level you must insure your nonirrigated canola at the 70 percent 

coverage level. If you elect to 

insure your irrigated corn at the 65 

percent coverage level and your 

irrigated canola at the 70 percent 

coverage level your unit structure 

will be assigned in accordance with 

section 34(a)(5)(v)); 

(B) A whole-farm unit must contain all of the 

insurable acreage of at least two crops; 

and 

(C) At least two of the insured crops must 

each have planted acreage that 

constitutes 10 percent or more of the 

total planted acreage liability of all 

insured crops in the whole-farm unit 

(For crops for which revenue protection 

is available, liability will be based on the 

applicable projected price only for the 

purpose of section 34(a)(5)(i)(C)); 

(ii) You will be required to pay separate 

administrative fees for each crop included in 

the whole-farm unit; 

(iii) You must separately designate on the 

acreage report each basic unit for each crop 

in the whole-farm unit; 

(iv) If you want to change your unit structure 

from a whole-farm unit to basic or optional 

units in any subsequent crop year, you must 

maintain separate records of acreage and 

production: 

(A) For each basic unit, to be eligible to use 

such records to establish the production 

guarantee for the basic units; or 

(B) For optional units, to qualify for optional 

units and to be eligible to use such 

records to establish the production 

guarantee for the optional units; and 

(v) If we discover you do not qualify for a wholefarm unit for at least one insured crop 

because, even though you elected revenue 

protection for all your crops: 

(A) You do not meet all of the other 

requirements in section 34(a)(5)(i), and 

such discovery is made: 

(1) On or before the acreage reporting 

date, your unit division for all crops 

for which you elected a whole-farm 

unit will be based on basic or 

optional units, whichever you 

report on your acreage report and 

qualify for; or 

(2) At any time after the acreage 

reporting date, we will assign the 

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basic unit structure for all crops for 

which you elected a whole-farm 

unit; or 

(B) It was not possible to establish a 

projected price for at least one of your 

crops, your unit division will be based 

on the unit structure you report on your 

acreage report and qualify for only for 

the crop for which a projected price 

could not be established unless the 

remaining crop in the unit would no 

longer qualify for a whole-farm unit, in 

such case your unit division for the 

remaining crops will be based on the 

unit structure you report on your 

acreage report and qualify for. 

(b) Unless limited by the Crop Provisions or Special 

Provisions, a basic unit as defined in section 1 of the 

Basic Provisions may be divided into optional units if, 

for each optional unit, you meet the following: 

(1) You must plant the crop in a manner that results 

in a clear and discernible break in the planting 

pattern at the boundaries of each optional unit; 

(2) All optional units you select for the crop year are 

identified on the acreage report for that crop year 

(Units will be determined when the acreage is 

reported but may be adjusted or combined to 

reflect the actual unit structure when adjusting a 

loss. No further unit division may be made after 

the acreage reporting date for any reason); 

(3) You have records, that are acceptable to us, for 

at least the previous crop year for all optional 

units that you will report in the current crop year 

(You may be required to produce the records for 

all optional units for the previous crop year); and 

(4) You have records of marketed or 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 optional unit is kept 

separate until loss adjustment is completed by us. 

(c) Each optional unit must meet one or more of the 

following, unless otherwise specified in the Crop 

Provisions or allowed by written agreement: 

(1) Optional units may be established if each optional 

unit is located in a separate section where the 

boundaries are readily discernible: 

(i) In the absence of sections, we may consider 

parcels of land legally identified by other 

methods of measure, such as Spanish 

grants, provided the boundaries are readily 

discernible, if such parcels can be 

considered as the equivalent of sections for 

unit purposes in accordance with FCIC 

issued procedures; or 

(ii) In the absence of sections as described in 

section 34(c)(1) or other methods of 

measure used to establish section 

equivalents as described in section 

34(c)(1)(i), optional units may be 

established if each optional unit is located in 

a separate FSA farm serial number in 

accordance with FCIC issued procedure; 

(2) 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 and non-irrigated acreage. 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 may be 

considered as irrigated acreage 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. In this case, production from both 

practices will be used to determine your approved 

yield; and 

(3) In addition to, or instead of, establishing optional 

units by section, section equivalent or FSA farm 

serial number, or irrigated and non-irrigated 

acreage, separate optional units may be 

established for acreage of the insured crop grown 

and insured under an organic farming practice. 

Certified organic, transitional and buffer zone 

acreages do not individually qualify as separate 

units. (See section 37 for additional provisions 

regarding acreage insured under an organic 

farming practice). 

(d) Optional units are not available for crops insured 

under a Catastrophic Risk Protection Endorsement. 

(e) If you do not comply fully with the provisions in this 

section, 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 by us 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 for the units combined. 

35. Multiple Benefits. 

(a) If you are eligible to receive an indemnity and are also 

eligible to receive benefits for the same loss under 

any other USDA program, you may receive benefits 

under both programs, unless specifically limited by 

the crop insurance contract or by law. 

(b) Any amount received for the same loss from any 

USDA program, in addition to the crop insurance 

payment, will not exceed the difference between the 

crop insurance payment and the actual amount of the 

loss, unless otherwise provided by law. The amount 

of the actual loss is the difference between the total 

value of the insured crop before the loss and the total 

value of the insured crop after the loss. 

(1) For crops for which revenue protection is not 

available: 

(i) If you have an approved yield, the total 

value of the crop before the loss is your 

approved yield times the highest price 

election for the crop; and 

(ii) If you have an approved yield, the total 

value of the crop after the loss is your 

production to count times the highest price 

election for the crop; or 

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(iii) If you have an amount of insurance, the total 

value of the crop before the loss is the 

highest amount of insurance available for 

the crop; and 

(iv) If you have an amount of insurance, the total 

value of the crop after the loss is your 

production to count times the price 

contained in the Crop Provisions for valuing 

production to count. 

(2) For crops for which revenue protection is 

available and: 

(i) You elect yield protection: 

(A) The total value of the crop before the 

loss is your approved yield times the 

applicable projected price (at the 100 

percent price level) for the crop; and 

(B) The total value of the crop after the loss 

is your production to count times the 

applicable projected price (at the 100 

percent price level) for the crop; or 

(ii) You elect revenue protection: 

(A) The total value of the crop before the 

loss is your approved yield times the 

higher of the applicable projected price 

or harvest price for the crop (If you have 

elected the harvest price exclusion, the 

applicable projected price for the crop 

will be used); and 

(B) The total value of the crop after the loss 

is your production to count times the 

harvest price for the crop. 

(c) FSA or another USDA agency, as applicable, will 

determine and pay the additional amount due you for 

any applicable USDA program, after first considering 

the amount of any crop insurance indemnity. 

36. Substitution of Yields. 

(a) When you have actual yields in your production 

history database that, due to an insurable cause of 

loss, are less than 60 percent of the applicable 

transitional yield you may elect, on an individual 

actual yield basis, to exclude and replace one or more 

of any such yields within each database. 

(b) Each election made in section 36(a) must be made on 

or before the production reporting date for the insured 

crop and each such election will remain in effect for 

succeeding years unless canceled by the production 

reporting date for the succeeding crop year. If you 

cancel an election, the actual yield will be used in the 

database. For example, if you elected to substitute 

yields in your database for the 1998 and 2000 crop 

year, for any subsequent crop year, you can elect to 

cancel the substitution for either or both years. 

(c) Each excluded actual yield will be replaced with a 

yield equal to 60 percent of the applicable transitional 

yield for the crop year in which the yield is being 

replaced, unless you qualify as a beginning farmer or 

rancher, in which case the excluded actual yield will 

be replaced with a yield equal to 80 percent of the 

applicable transitional yield for the crop year in which 

the yield is being replaced. (For example, if you elect 

to exclude a 2001 crop year actual yield, the 

transitional yield in effect for the 2001 crop year in the 

county will be used. If you also elect to exclude a 

2002 crop year actual yield, the transitional yield in 

effect for the 2002 crop year in the county will be 

used). The replacement yields will be used in the 

same manner as actual yields for the purpose of 

calculating the approved yield. 

(d) Once you have elected to exclude an actual yield from 

the database, the replacement yield will remain in 

effect until such time as that crop year is no longer 

included in the database unless this election is 

canceled in accordance with section 36(b). 

(e) Although your approved yield will be used to 

determine your amount of premium owed, the 

premium rate will be increased to cover the additional 

risk associated with the substitution of higher yields. 

37. Organic Farming Practices. 

(a) In accordance with section 8(b)(2), insurance will not 

be provided for any crop grown using an organic 

farming practice, unless the information needed to 

determine a premium rate for an organic farming 

practice is specified on the actuarial table, or 

insurance is allowed by a written agreement. 

(b) If insurance is provided for an organic farming 

practice as specified in section 37(a), only the 

following acreage will be insured under such practice: 

(1) Certified organic acreage; 

(2) Transitional acreage being converted to certified 

organic acreage in accordance with an organic 

plan; and 

(3) Buffer zone acreage. 

(c) On the date you report your acreage, you must have: 

(1) For certified organic acreage, a written 

certification in effect from a certifying agent 

indicating the name of the entity certified, 

effective date of certification, certificate number, 

types of commodities certified, and name and 

address of the certifying agent (A certificate 

issued to a tenant may be used to qualify a 

landlord or other similar arrangement); 

(2) For transitional acreage, a certificate as 

described in section 37(c)(1), or written 

documentation from a certifying agent indicating 

an organic plan is in effect for the acreage; and 

(3) Records from the certifying agent showing the 

specific location of each field of certified organic, 

transitional, buffer zone, and acreage not 

maintained under organic management. 

(d) If you claim a loss on any acreage insured under an 

organic farming practice, you must provide us with 

copies of the records required in section 37(c). 

(e) If any acreage qualifies as certified organic or 

transitional acreage on the date you report such 

acreage, and such certification is subsequently 

revoked by the certifying agent, or the certifying agent 

no longer considers the acreage as transitional 

acreage for the remainder of the crop year, that 

acreage will remain insured under the reported 

practice for which it qualified at the time the acreage 

was reported. Any loss due to failure to comply with 

organic standards will be considered an uninsured 

cause of loss. 

(f) Contamination by application or drift of prohibited 

substances onto land on which crops are grown using 

organic farming practices will not be an insured peril 

on any certified organic, transitional or buffer zone 

acreage. 

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(g) In addition to the provisions contained in section 17(f), 

prevented planting coverage will not be provided for 

any acreage based on an organic farming practice in 

excess of the number of acres that will be grown 

under an organic farming practice and shown as such 

in the records required in section 37(c). 

(h) In lieu of the provisions contained in section 17(f)(1) 

that specify prevented planting acreage within a field 

that contains planted acreage will be considered to be 

acreage of the same practice that is planted in the 

field, prevented planting acreage will be considered 

as organic practice acreage if it is identified as 

certified organic, transitional, or buffer zone acreage 

in the organic plan. 

(42 of 42)