43236 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563–AB03

Common Crop Insurance Regulations;

Basic Provisions; and Various Crop

Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes to amend

the Common Crop Insurance

Regulations to delete the late and

prevented planting provisions currently

contained in many Crop Provisions,

incorporate revised late and prevented

planting provisions into the Common

Crop Insurance Policy Basic Provisions,

and add definitions and provisions that

are common to most crops. The

intended effect of this action is to

provide policy changes that meet the

needs of the insured, are easier to

administer, and to delete repetitive

provisions contained in various Crop

Provisions.

DATES: Written comments and opinions

on this proposed rule will be accepted

until close of business September 11,

1997, and will be considered when the

rule is to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget

(OMB) has determined this rule to be

significant, and therefore, this rule has

been reviewed by OMB.

Cost-Benefit Analysis

A Cost-Benefit Analysis has been

completed and is available to interested

persons at the Kansas City address listed

above. In summary, the analysis finds

that the proposed rule makes several

major changes in the implementation of

prevented planting provisions.

Specifically, the proposed rule: (1)

eliminates substitute crop benefits,

largely to reduce the likelihood of moral

hazard; (2) increases prevented planting

for cover crop or black dirt situations,

providing better protection to producers

who are truly unable to plant a crop for

harvest; and (3) simplifies the payment

method, making payments on an acreby-acre basis in all cover crop/black dirt

situations. These provisions are

designed to improve the protection

provided to producers in adverse

prevented planting situations, and to

simplify program operation.

Because this proposed rule is

expected to be implemented in an

actuarially sound manner, there are no

associated excess losses that will be

incurred by the Federal government in

the aggregate. Two provisions—the

increase in coverage in black dirt/cover

crop situations provision and the

‘‘separate payment’’ provision—are

expected to result in an increase in

indemnities and, thus, an increase in

rates. The elimination in substitute crop

provisions results in reduced

indemnities, and a rate decline in the

aggregate. The net effect of these

changes is likely to be small in terms of

the rate impact, and will vary according

to crop and location. Because of the

small expected average rate impact, any

changes in reimbursements to private

companies for delivery or any

underwriting gains are also expected to

be small. The amendments made to

these regulations will simplify program

operations, benefit producers, FCIC, and

reinsured companies, and conform with

the Federal Crop Insurance Reform and

Department of Agriculture

Reorganization Act of 1994.

Paperwork Reduction Act of 1995

The information collection

requirements contained in these

regulations are being reviewed by OMB

pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. chapter 35) under

OMB control number 0563–0053. The

Basic Provisions and Various Crop

Insurance Provisions are described in

the background.

The title of this information collection

is ‘‘Multiple Peril Crop Insurance.’’ The

information to be collected includes a

crop insurance application and an

acreage report. Information collected

from the application and an acreage

report is electronically submitted to

FCIC by the reinsured companies.

Potential respondents to this

information collection are producers

that are eligible for Federal crop

insurance.

The information requested is

necessary for the insurance company

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

The burden associated with the Basic

Provisions and Various Crop Insurance

Provisions is estimated at 19.5 minutes

per response for each of the 2.2

responses from approximately 1,610,629

respondents each year for a total of

1,127,407 hours.

FCIC is requesting comments on the

following: (a) Whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after submission to OMB.

Therefore, a comment to OMB is best

assured of having full effect if OMB

receives it within 30 days of

publication. This does not affect the

deadline for the public to comment on

the proposed regulation.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Pub. L.

104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) for

State, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order 12612

It has been determined under section

6(a) of Executive Order 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43237

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on States or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant economic impact on a

substantial number of small entities.

New provisions included in this rule

will not impact small entities to a

greater extent than large entities.

Therefore, this action is determined to

be exempt from the provisions of the

Regulatory Flexibility Act (5 U.S.C.

605), and no Regulatory Flexibility

Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance Under

No. 10.450.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12988

This proposed rule has been reviewed

in accordance with Executive Order

12988 on civil justice reform. The

provisions of this rule will not have

retroactive effect prior to the effective

date. The provisions of this rule will

preempt State and local laws to the

extent such State and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR part 11 must be

exhausted before action against FCIC for

judicial review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

FCIC proposes to amend the Common

Crop Insurance Regulations Basic

Provisions (Basic Provisions) (7 CFR

part 457) and the Crop Provisions (7

CFR 457.101–457.157) effective for the:

1998 and succeeding crop years for

wheat, barley and oats in counties with

a December 31 contract change date,

flax, cotton, ELS cotton, sunflowers,

sugar beets in counties with a November

30 contract change date, corn, grain

sorghum, soybeans, raisins, fresh market

tomatoes (guaranteed production plan),

rice, and dry beans; 1999 and

succeeding crop years for wheat, barley

and oats in counties with a June 30

contract change date, rye, Texas citrus

tree, Florida citrus fruit, sugar beets in

counties with an April 30 contract

change date, figs, pears, nursery,

sugarcane, forage production, walnuts,

almonds, safflowers, fresh market sweet

corn, macadamia trees, cranberry,

onion, grapes, fresh market tomatoes

(dollar plan), peppers, forage seeding,

peaches, and plums; and 2000 and

succeeding crop years for Texas citrus

fruit, Arizona—California citrus, and

macadamia nuts. This rule proposes to

delete the late and prevented planting

provisions, certain definitions and other

provisions that are applicable to most

crops and are currently contained in the

Crop Provisions and incorporate these

definitions and provisions into the Basic

Provisions to better meet the needs of

the insured. Those Crop Provisions

which will not be final until after this

rule has been published as a proposed

rule will be similarly revised when this

rule is finalized. This rule also proposes

to make substantive changes as follows:

1. 7 CFR 457.2 (b), (c), and (d)—

Specify that FCIC may offer the

catastrophic level of coverage directly to

the insured through local Farm Service

Agency (FSA) offices. Also specify that

a person may not have more than one

contract in force on the same crop, for

the same crop year, in the same county

except as specified in the Catastrophic

Risk Protection Endorsement and 7 CFR

part 400, subpart T, whether insured by

FCIC through local FSA offices or

insured by a company which is

reinsured by FCIC. Also, clarify that if

multiple contracts of insurance are

shown to be inadvertent and without

the fault of the insured, the contract

with the earliest signature date on the

application will be in effect.

2. 7 CFR 457.8 (Basic Provisions) are

revised as follows:

a. Section 457.8(b) is revised by

deleting the provisions that authorize

the Manager of FCIC to extend any sales

closing date.

b. The ‘‘Agreement to Insure’’

provision is amended to include

provisions regarding conflicts between

the Basic Provisions, Crop Provisions,

Special Provisions, and Catastrophic

Risk Protection Endorsement. Current

provisions regarding conflicts between

policy forms were contained in both the

Basic and Crop provisions.

c. Section 1—Delete all paragraph

designations to avoid confusion in case

of any future revision. Delete the

definitions of ‘‘ASCS’’ and ‘‘ASCS Farm

Serial Number’’ and replace with ‘‘FSA’’

and ‘‘FSA farm serial number.’’ These

changes are necessary to bring these

regulations into conformance with the

Department of Agriculture

Reorganization Act of 1994. Delete the

definition of ‘‘Late Planting Agreement

Option’’ (LPAO) because the provisions

for late planted crops are now

incorporated into the Basic Provisions

and those crops for which such coverage

is not available will be designated in the

Crop Provisions. Late planting will

automatically be available and will not

require a separate option. Delete the

definition of ‘‘reporting date’’ because

‘‘acreage reporting date’’ is defined and

this definition refers to the same date.

Revise the definition of ‘‘abandon’’ to

clarify that failure to continue providing

sufficient care or failure to harvest in a

timely manner is not considered

abandonment if such failures are due to

an insurable cause of loss. Revise the

definition of ‘‘acreage report’’ and

‘‘acreage reporting date’’ to clarify that

the final acreage reporting date may be

determined in accordance with section

6 (Report of Acreage) of the Basic

Provisions rather than the acreage

reporting date contained in the Special

Provisions. Define the term ‘‘basic unit’’

rather than ‘‘unit’’ to be consistent with

the language contained in the current

Crop Provisions. The definition of

‘‘unit’’ amended to ‘‘basic unit’’ is

revised to remove provisions regarding

the determination of share. These

provisions will now be covered in

section 10 (Share Insured). Delete

duplicative provisions contained in the

definition of ‘‘contract.’’ Clarify that the

definition of ‘‘contract’’ is synonymous

with ‘‘policy.’’ Revise the definition of

‘‘county’’ to include acreage in a field

that extends into an adjoining county if

the county boundary is not readily

discernible. Revise the definition of

‘‘insured’’ to delete the reference

subsection designation. Revise the

definition of ‘‘loss, notice of’’ by adding

‘‘whichever is earlier’’ after the two

specific times notice of loss must be

given. Revise the definition of ‘‘person’’

to clarify that the United States

government or any agency thereof is not

considered a ‘‘person.’’ Revise the

definition of ‘‘policy’’ to indicate that

the Catastrophic Risk Protection

Endorsement may also be applicable.

Revise the definition of ‘‘premium
43238 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

billing date’’ to indicate that the date is

contained in the Special Provisions.

Revise the definition of ‘‘practical to

replant’’ to add marketing window as an

additional factor that must be

considered when determining whether

or not it is practical to replant; remove

the reference to the LPAO; and specify

that the unavailability of seed or plants

will not be considered a valid reason for

failure to replant. Revise the definition

of ‘‘price election’’ to specify that price

elections will be contained in the

Special Provisions. Revise the definition

of ‘‘share’’ to remove provisions

regarding how the share is determined.

Add definitions for the terms ‘‘Act,’’

‘‘days,’’ ‘‘deductible,’’ ‘‘final planting

date,’’ ‘‘FSA,’’ ‘‘FSA farm serial

number,’’ ‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘late planted,’’ ‘‘late planting period,’’

‘‘non-contiguous,’’ ‘‘Palmer Drought

Severity Index,’’ ‘‘planted acreage,’’

‘‘prevented planting,’’ ‘‘prevented

planting, notice of,’’ ‘‘production

guarantee (per acre),’’ ‘‘replanting,’’

‘‘timely planted,’’ ‘‘USDA,’’ ‘‘void,’’ and

‘‘written agreement.’’

d. Section 2—Reformat this section

and add a provision in section 2(b)

stating that an application is not

acceptable unless it contains all material

information, including all social

security numbers and employer

identification numbers, as applicable,

coverage level, price election, etc. If a

producer with a substantial beneficial

interest in an insured crop refuses to

provide a social security number or

employer identification number, the

share insurable under the policy will be

reduced commensurately by that

producer’s share, unless the producer

has been placed on the nonstandard

classification system list in which case

insurance will not be available to that

entity.

e. Section 2(e)—Specify that a person

who is ineligible for crop insurance

because of a delinquent debt may

become eligible if the person repays the

debt, executes an agreement to repay the

debt and makes all payments in

accordance with the agreement, or has

the debt discharged in bankruptcy. If the

repayment, execution of the agreement,

or discharge occurs after the sales

closing date for the crop, the person is

not eligible for crop insurance until the

next crop year. This is to conform with

the ineligible file regulations.

f. Section 3(b)—Remove the

provisions that authorize the insurance

provider to assign a coverage level if the

producer does not elect one. These

provisions are no longer necessary

because an application will not be

accepted if it is not complete.

g. Section 3(c)—Specify that if the

producer filed a claim for any crop year,

the amount of production used to

complete the claim for indemnity will

be the production report for that crop

year unless otherwise specified by FCIC.

Also, specify that production and

acreage for the prior crop year must be

reported for each proposed optional unit

on or before the production reporting

date.

h. Section 3(e)—Add a provision to

indicate that an updated price election

or amount of insurance may be

announced not later than 15 days prior

to the sales closing date to allow FCIC

the flexibility to adjust these amounts to

more accurately reflect market

conditions.

i. Section 4—Add a provision

allowing additional price elections to be

announced after the contract change

date to conform with section 3(e).

j. Section 6—Reformat this section

and change the date by which an

insured must submit an annual acreage

report by allowing the insured until the

latest applicable spring or fall acreage

reporting date when multiple crops are

insured in a county. However, if the

Special Provisions designate separate

planting periods, the insured must

submit an acreage report on or before

the acreage reporting date contained in

the Special Provisions for the planting

period. Specify that instead of the

production guarantee or amount of

insurance being reduced

proportionately when the actual share,

acreage, practice, type or other material

information results in a lower premium

than determined under the reported

information, only the production

guarantee or amount of insurance will

be reduced to conform to the correct

information. Specify that, if liability is

denied for unreported units, the

producer’s share of any production from

the unreported units will be allocated as

production to count to the reported

units in proportion to the liability on

each reported unit. The production

allocated in this manner will not be

used to compute the producer’s yield for

actual production history (7 CFR part

400, subpart G). Also, add a provision

to specify that if information reported

by the producer is incorrect and results

in an overstatement of liability, in the

subsequent crop years that the producer

is insured, the producer may be

required to provide documentation to

substantiate the report of acreage in

those subsequent years, including but

not limited to an acreage measurement

service at the producer’s expense.

k. Section 7—Clarify that any amount

owed by the producer to the insurance

provider related to any crop insured

under the Act will be deducted from

any replant payment, prevented

planting payment or indemnity due the

insured for any crop insured under the

authority of the Act with the same

insurance provider. Specify that the

premium will be computed using the

price election or amount of insurance

the producer elects or the insurance

provider assigns.

l. Section 8—Delete section 8(b)(2)

since crops planted during the late

planting period will be insured unless

otherwise specified in the Crop

Provisions and redesignate the

following sections. Replace ‘‘Special

Provisions’’ with ‘‘policy provisions’’ in

redesignated section 8(b)(2). Replace

‘‘unless we agree, in writing, to insure

such crop’’ with ‘‘written agreement’’ in

redesignated section 8(b)(5).

m. Section 9(a)(1)—Specify that

acreage will not be insurable if it has not

been planted and harvested within one

of the 3 previous calendar years, unless

such acreage was not planted to comply

with any other United States

Department of Agriculture (USDA)

program or because of crop rotation,

(e.g., corn, soybeans, alfalfa; and the

alfalfa remained for 4 years before the

acreage was planted to corn again),

unless the crop provisions specifically

allow insurance for such acreage.

n. Section 9(a)(2)—Specify that

acreage that has been strip mined will

be insurable only by written agreement,

unless crops produced for food or fiber

have been harvested from the acreage

for at least 5 consecutive crop years after

it was strip mined.

o. Section 9(a)(6)—A new section is

added to clarify that acreage planted in

any manner other than as specified in

the policy provisions for the crop is not

insurable unless otherwise specified by

a written agreement, if applicable.

p. Section 10—Add provisions to

clarify that 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; and a

lease containing provisions for EITHER

a minimum payment OR a crop share

(e.g., a lease provides for a 50/50 share

or 100 dollars, whichever is greater) will

be considered a cash lease.

q. Section 11—Add provisions to

clarify the date at which insurance

attaches and redesignate the following

provisions.

r. Section 13(d)—Delete section 13(d)

and redesignate section 13(e) as 13(d).

This provision required the insurance

provider to measure the total acres in

the unit for the crop that is replanted

even if only a small portion of the acres

were replanted. Without this provision
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43239

only the replanted acres need to be

determined.

s. Section 14(a)—Add a new

paragraph to clarify that producers must

cooperate in the investigation or

settlement of a claim.

t. Section 15(c)—Amend the provision

to delete a reference to the FCI–78A

form since it is no longer in use.

u. Section 16—Add a new section

which incorporates the coverage for

acreage that is planted after the final

planting date previously included in the

Crop Provisions. This section will

amend the late planting provisions to:

(1) Differentiate between the production

guarantees or amounts of insurance for

acreage planted to the insured crop

during the late planting period and

acreage planted to the insured crop after

the late planting period; and (2) amend

the reductions in production guarantees

or amounts of insurance for acreage

planted to the insured crop during the

late planting period. The production

guarantee or amount of insurance for

acreage planted to the insured crop

during the twenty-five day late planting

period will be reduced one percent per

day for each day the acreage is planted

after the final planting date. The

maximum reduction for acreage planted

during the late planting period will be

25 percent. Current late planting

provisions contained in the Crop

Provisions reduce the production

guarantee or amount of insurance for

each acre for each day planted after the

final planting date by one percent for

the first through the tenth day and two

percent for the eleventh through the

twenty-fifth day, resulting in a

maximum reduction of 40 percent. This

change provides increased coverage for

acreage planted in the last 15 days of the

late planting period and therefore

should maintain an incentive to plant

the insured crop during the late planting

period. A strong incentive to plant

should reduce the number of prevented

planting claims and related expenses.

v. Section 17—Add a new section to

incorporate the prevented planting

coverage previously included in the

Crop Provisions. FCIC proposes to

remove the substitute crop provisions

contained in the current prevented

planting provisions. These provisions

allow insureds with limited or

additional coverage to receive a

prevented planting production

guarantee for acreage planted to a

substitute crop. Removal of these

provisions will eliminate problems

associated with determining the crop

originally intended to be planted and

increase incentives to plant in response

to market signals.

w. Section 17(a)(2)—Require the

insured to notify the insurance provider

within 72 hours after the final planting

date if the insured is prevented from

planting by such date, regardless of

whether or not the insured intends to

plant any acreage of the insured crop

after the final planting date. Under

current prevented planting provisions,

the first notice the insurance provider

receives of prevented planting is when

prevented planting acreage is listed on

the acreage report. In some cases, this

may be nearly two months after the final

planting date due to the change in the

acreage reporting date. This change

provides the insurance provider a better

opportunity to verify that the insured

was prevented from planting due to an

insured cause of loss.

x. Section 17(b)—Specify that the

Crop Provisions will contain a

prevented planting coverage level

percentage that will automatically apply

to the insured’s crop policy if the

insured does not elect an available

prevented planting coverage level

percentage on or before the sales closing

date. The Actuarial Table will provide

the additional prevented planting

coverage elections available to the

producer for an additional premium.

FCIC proposes to offer producers with

limited or additional coverage a 60

percent prevented planting coverage

level (60 percent of the insured

production guarantee for timely planted

acreage) for coarse grains (corn, grain

sorghum, and soybeans), small grains

(barley, flax, oats, rye, and wheat), dry

beans, and sunflower seed, with an

option for the insured to increase the

coverage to 65 or 70 percent; and a 45

percent prevented planting coverage

level for cotton, ELS cotton, sugar beets,

onions, and rice with an option for the

insured to increase the coverage to 50 or

55 percent. Insureds who have a

Catastrophic Risk Protection

Endorsement will be limited to the

lowest prevented planting coverage

level percentage available for the crop.

Placing prevented planting coverage

level percentages in the Crop Provisions

and Actuarial Table allows FCIC to

establish prevented planting coverage

levels that are appropriate on a crop-bycrop basis.

y. Section 17(e)(1)—Specify that the

maximum number of acres eligible for a

prevented planting payment will be: (1)

For crops with production guarantees

based on the actual production history

(APH) or crops that do not require yield

certification (except those for which the

crop provisions require a processor

contract), the greatest number of acres of

the insured crop included in the APH

data base or insured in any one of the

4 most recent crop years, excluding any

acreage of the insured crop for which a

prevented planting production

guarantee was established and was

planted to a substitute crop; and (2) For

any crop for which the Crop Provisions

require a contract to be executed with a

processor, the number of acres required

to be grown in the current crop year

under the processor contract if such

contract stipulates a specific number of

acres from which all production is to be

delivered. If the contract stipulates a

specific amount of production to be

delivered, the maximum eligible acreage

will be determined by dividing the

amount of production to be delivered

under the processor contract by the

approved yield, without recognition of

reductions to transitional yields due to

failure to certify production for a prior

year, using the same unit of measure for

both amounts. This section is also

amended to allow an insured who did

not plant any crop that is insurable in

the county in the 4 most recent crop

years, to request a written agreement to

establish the maximum number of acres

that will be eligible for prevented

planting coverage.

z. Section 17(e)(2)—Specify the

timing and contents of a request for a

written agreement.

aa. Section 17(e)(3)—Specify that the

total number of acres requested for all

crops insured under the authority of the

Federal Crop Insurance Act cannot

exceed the number of acres of cropland

in the insured’s farming operation for

the crop year.

bb. Section 17(e)(4)—Amend the

provisions to allow the maximum

eligible number of prevented planting

acres for certain crops to be increased

under certain conditions, if the number

of acres in an insured’s farming

operation is greater than the number of

acres farmed the previous year to avoid

penalizing insureds who expand their

farming operations.

cc. Section 17(e)(5)—Clarify that any

acreage of the crop that is planted will

be subtracted from eligible prevented

planting acreage. Previous provisions

provided that only insured crop acreage

would be subtracted.

dd. Section 17(f)(1)—Clarify that

prevented planting coverage will not be

provided for any acreage that does not

constitute at least 20 acres or 20 percent

of the insurable crop acreage in the unit,

whichever is less. Current provisions

specify that the 20/20 rule applies to the

acreage in the unit, which could include

both insurable and uninsurable acreage.

This provision also specifies that the

insurance provider will assume that any

prevented planting acreage within a

field that contains planted acreage
43240 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

would have been planted to the same

crop that is planted in the field, unless

the prevented planting acreage

constitutes at least 20 acres or 20

percent of the insurable acreage in the

field and the insured provides proof of

the intent to plant such acreage to

another crop.

ee. Section 17(f)(4)—Clarify that

prevented planting coverage will not be

provided if the insured or any other

person receives a prevented planting

payment for any crop for the same unit

in the same crop year, except in the case

of double cropped acreage if the insured

has coverage greater than that applicable

to the catastrophic risk protection plan

of insurance. Also, clarify that in order

to qualify for prevented planting

coverage for double-cropped acreage,

the insured must have records of

acreage and production to prove that the

acreage was double-cropped in each of

the last four years in which the insured

crop was grown on the acreage.

ff. Section 17(f)(5)—Clarify that a

cover crop may be hayed or grazed after

the final planting date for the insured

crop without affecting prevented

planting eligibility. Current provisions

do not specify the date after which the

cover crop may be hayed or grazed.

Also, amend the provisions to clarify

that prevented planting coverage is not

allowed for acreage that is prevented

from being planted, if any crop from

which the insured derives any benefit

under any program administered by the

USDA is planted and fails. This

clarification is intended to prevent a

producer from receiving a benefit for a

failed crop or income from a harvested

crop, and an additional benefit for any

crop that is prevented from being

planted, unless the insured has coverage

greater than that applicable to the

catastrophic risk protection plan of

insurance and can prove a history of

double cropping.

gg. Section 17(f)(6)—Add a provision

specifying that prevented planting

coverage will not be provided if a cash

lease payment is also received for use of

the same acreage in the same crop year

(not applicable if acreage is leased for

haying or grazing only).

hh. Section 17(f)(9)—Specify that

prevented planting coverage will not be

provided for any acreage for which the

producer cannot provide proof that he

or she had the inputs available to plant

and produce a crop with the expectation

of at least producing the yield used to

determine the production guarantee or

amount of insurance. Current provisions

state ‘‘. . . with the expectation of at

least producing the production

guarantee or amount of insurance.’’

ii. Section 17(f)(10)—Clarify that

prevented planting coverage will not be

provided for any acreage 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 the insured from

planting.

jj. Section 17(f)(11)—Specify that

prevented planting coverage will not be

provided on any acreage based on a

price election, amount of insurance or

production guarantee for a crop type

that the producer did not plant in at

least one of the four most recent years

unless allowed by the policy provisions

so that producers receive benefits

commensurate with their actual

planting practices.

kk. Section 17(g)—Amend the

provisions to allow prevented planting

payments on a per acre basis once the

specified minimum number of acres has

been prevented from being planted. Per

acre payment recognizes a producer’s

loss on each acre that is prevented from

being planted. Current provisions

combine production guarantees for

planted and prevented planting acreage

and provides no payment when

production from planted acreage

exceeds this combined guarantee.

ll. Section 18—Add a new section 18

that provides the requirements for

insurance coverage by written

agreement previously included in the

Crop Provisions. FCIC has a longstanding policy of permitting

modification of certain provisions of the

insurance contract by written

agreement. This new section will cover

the application for, and duration of,

written agreements.

mm. Sections 17 (redesignated as

section 20)—For FCIC policies, amend

the reference to the appeals provisions

to specify 7 CFR part 11 since FCIC does

not currently have an informal appeals

process. For reinsured policies, amend

the provisions to specify that failure to

agree with any factual determination

made by the FCIC must be resolved

through the FCIC appeal provisions

published at 7 CFR part 11. Also, clarify

that any award determined by

arbitration cannot exceed the amount of

liability established or which should

have been established under the policy.

nn. Section 20 (redesignated as

section 23)—Remove the provision that

authorizes FCIC to cancel a policy for

violation of the conservation provisions

of the Food Security Act of 1985 to

conform to the Federal Agriculture

Improvement and Reform Act of 1996.

Add a provision to allow the insurance

provider to retain up to 20 percent of

the premium to defray expenses and

handling since most violations will not

be discovered until loss adjustment and

the insurance provider will have already

incurred costs associated with the

delivery of the policy.

oo. Section 21 (redesignated as

section 24)—For FCIC policies, revise to

specify that any amount illegally or

erroneously paid to the producer, or that

is owed to the insurance provider and

is delinquent, may be recovered by the

insurance provider through offset or

other collection action. Also specify

that, if the insurance provider

determines that it is necessary to refer

the debt to government collection

centers or the Department of Treasury

Offset Program, the producer agrees to

pay all of the expenses of collection.

pp. Section 24 (redesignated as

section 27)—Clarify that the policy will

be voided if the producer commits fraud

or misrepresents a material fact. Such

voidance will be effective with the

beginning of the crop year in which

such acts occurred. Voidance will have

no effect on subsequent crop years

unless a violation also occurred in that

subsequent crop year or the producer is

otherwise suspended, debarred or

disqualified. The producer will be

required to pay up to 20 percent of the

premium owed to defray costs already

incurred in the service of the policy.

qq. Section 25 (redesignated as

section 28)—Revise by adding a

provision that states that liability under

the policy cannot be increased by a

transfer of coverage. Also revise by

adding a provision stating that the

transferee must be eligible for crop

insurance.

rr. Section 26 (redesignated as section

29)—Clarify that no cause of action will

lie against FCIC arising from any

assignment. Also specify that if the

insured suffered a loss from an

insurable cause and failed to file a claim

for indemnity within 60 days after the

end of the insurance period, the

assignee may submit the claim for

indemnity not later than 15 days after

the 60 day period has expired.

ss. Add a new section 34 to

incorporate the optional unit structure

requirements previously included in the

Crop Provisions.

3. Section 457.101 (Small Grains Crop

Insurance Provisions); § 457.104 (Cotton

Crop Insurance Provisions); § 457.105

(Extra Long Staple Cotton Crop

Insurance Provisions); § 457.110 (Fig

Crop Insurance Provisions); and

§ 457.113 (Coarse Grains Crop Insurance

Provisions)—Delete all references to the

‘‘Common Crop Insurance Policy’’ and

replace them with ‘‘Basic Provisions.’’
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43241

4. Section 457.101 (Small Grains Crop

Insurance Provisions); § 457.104 (Cotton

Crop Insurance Provisions); § 457.105

(Extra Long Staple Cotton Crop

Insurance Provisions); § 457.106 (Texas

Citrus Tree Crop Insurance Provisions);

§ 457.107 (Florida Citrus Fruit Crop

Provisions); § 457.108 (Sunflower Seed

Crop Insurance Provisions); § 457.109

(Sugar Beet Crop Insurance Provisions);

§ 457.110 (Fig Crop Insurance

Provisions); § 457.111 (Pear Crop

Insurance Provisions); § 457.113 (Coarse

Grains Crop Insurance Provisions);

§ 457.114 (Nursery Crop Insurance

Provisions); § 457.116 (Sugar Cane Crop

Insurance Provisions); § 457.117 (Forage

Production Crop Insurance Provisions);

§ 457.119 (Texas Citrus Fruit Crop

Insurance Provisions); § 457.121

(Arizona-California Citrus Crop

Insurance Provisions); § 457.122

(Walnut Crop Insurance Provisions);

§ 457.123 (Almond Crop Insurance

Provisions); § 457.124 (Raisin Crop

Insurance Provisions); § 457.125

(Safflower Crop Insurance Provisions);

§ 457.128 (Guaranteed Production Plan

of Fresh Market Tomato Crop Insurance

Provisions); § 457.129 (Fresh Market

Sweet Corn Crop Insurance Provisions);

§ 457.130 (Macadamia Tree Crop

Insurance Provisions); § 457.131

(Macadamia Nut Crop Insurance

Provisions); § 457.132 (Cranberry Crop

Insurance Provisions); § 457.135 (Onion

Crop Insurance Provisions); § 457.138

(Grape Crop Insurance Provisions);

§ 457.139 (Fresh Market Tomato (Dollar

Plan) Crop Insurance Provisions);

§ 457.141 (Rice Crop Insurance

Provisions); § 457.148 (Fresh Market

Pepper Crop Insurance Provisions);

§ 457.150 (Dry Beans Crop Insurance

Provisions); § 457.151 (Forage Seeding

Crop Insurance Provisions); § 457.153

(Peach Crop Insurance Provisions) and

§ 457.157 (Plum Crop Insurance

Provisions)—

(a) Delete definitions that are added to

the Basic Provisions (§ 457.8) by this

rule. This allows FCIC to remove

duplicative provisions from the Crop

Provisions.

(b) Delete or modify section 2 because

the requirements for optional units have

now been incorporated into section 34

of the Basic Provisions.

(c) Delete, modify, or add late and

prevented planting provisions since

these provisions are now included in

sections 16 and 17 of the Basic

Provisions.

(d) Revise section designations, as

necessary, to conform to changes made

in the Basic Provisions (§ 457.8), and

removal of unit division provisions in

some crop provisions.

(e) Delete the written agreement

provisions because they are now

incorporated into section 18 of the Basic

Provisions.

(f) Make minor style and conforming

changes.

5. Section 457.104 (Cotton Crop

Insurance Provisions); § 457.105 (Extra

Long Staple Cotton Crop Insurance

Provisions); § 457.108 (Sunflower Seed

Crop Insurance Provisions); and

§ 457.113 (Coarse Grains Crop Insurance

Provisions)—Revise the provisions in

the ‘‘Insurable Acreage’’ section to

specify that any acreage damaged to the

extent that a majority of the producers

in the area would not normally care for

the crop must be replanted unless the

insurance provider agrees that it is not

practical to replant. The current

provisions specify that damage must

exist such that the remaining stand will

not produce at least 90 percent of the

production guarantee. This change

removes the inequity caused by the

current language when a landlord and

tenant have different production

guarantees on the same acreage due to

different coverage levels that were

selected, and standardizes the language

among the various Crop Provisions.

6. A new provision is added in

section 11 of § 457.104 (Cotton Crop

Insurance Provisions) and section 12 of

§ 457.105 (Extra Long Staple Cotton

Crop Insurance Provisions) to indicate

that the prevented planting production

guarantee will be based on the approved

yield for solid-planted acreage.

List of Subjects in 7 CFR Part 457

Crop insurance, Common crop

insurance policy; Almonds; ArizonaCalifornia citrus; Coarse grains; Cotton;

Cranberry; Dry beans; Extra long staple

cotton; Figs; Florida citrus fruit; Forage

production; Forage seeding; Fresh

market pepper; Fresh market sweet

corn; Fresh market tomato (Dollar plan);

Fresh market tomato (Guaranteed

production plan); Grape; Macadamia

Nut; Macadamia Tree; Nursery; Onion;

Peach; Pears; Plum crop insurance

provisions; Raisin; Rice; Safflower;

Small grains; Sugar beet; Sugar cane;

Sunflower seed; Texas citrus fruit;

Walnut.

Proposed Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation hereby proposes to amend

7 CFR part 457, as follows:

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1998 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 457 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

2. Section 457.2 is amended by

removing paragraph (e), redesignating

paragraphs (f), (g), and (h) as paragraphs

(e), (f), and (g) respectively and revising

paragraphs (b), (c), and (d) to read as

follows:

§ 457.2 Availability of federal crop

insurance.

* * * * *

(b) The insurance is offered through

two methods. First, the Corporation may

offer the contract for the catastrophic

level of coverage contained in this part

and part 402 directly to the insured

through local offices of the Department

of Agriculture. Those contracts are

specifically identified as being offered

by the Federal Crop Insurance

Corporation (FCIC). Second, companies

reinsured by the Corporation may offer

contracts containing the same terms and

conditions as the contract set out in this

part. These contracts are clearly

identified as being reinsured by the

Corporation.

(c) Except as specified in the

Catastrophic Risk Protection

Endorsement (part 402 of this chapter)

and part 400, subpart T of this chapter,

no person may have in force more than

one contract on the same crop for the

same crop year, in the same county,

whether insured by the Corporation

through local offices of the Department

of Agriculture or insured by a company

reinsured by the Corporation.

(d) Except as specified in paragraph

(c) of this section if a person has more

than one contract under the Act that

provides coverage for the same loss on

the same crop for the same crop year in

the same county, all such contracts shall

be voided for that crop year and the

person will be liable for the premium on

all contracts, unless the person can

show to the satisfaction of the

Corporation that the multiple contracts

of insurance were inadvertent and

without the fault of the person. If the

multiple contracts of insurance are

shown to be inadvertent and without

the fault of the insured, the contract

with the earliest signature date on the

application will be valid and all other

contracts on that crop in the county for

that crop year will be canceled. No

liability for indemnity or premium will

attach to the contracts so canceled.

* * * * *
43242 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

3. Section 457.8 paragraph (b) is

revised to read as follows:

§ 457.8 The application and policy.

(a) * * *

(b) The Corporation or the reinsured

company may reject or discontinue the

acceptance of applications in any

county or of any individual application

upon the Corporation’s determination

that the insurance risk is excessive. If

the reinsured company rejects any

application and such rejection is not

required by the Corporation, the

applicant must be referred to an agent

authorized to sell the Corporation’s

policies of insurance.

4. Section 457.8 is amended by

revising the policy to read as follows:

DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE

CORPORATION

[or Policy Issuing Company Name]

Common Crop Insurance Policy

(This is a continuous policy. Refer to section

2.)

FCIC Policies

This is an insurance policy issued by the

Federal Crop Insurance Corporation (FCIC), a

United States government agency. The

provisions of the policy are published in the

Federal Register and in chapter IV of title 7

of the Code of Federal Regulations (CFR)

under the Federal Register Act (44 U.S.C.

1501 et seq.), and may not be waived or

varied in any way by the crop insurance

agent or any other agent or employee of FCIC.

Throughout this policy, ‘‘you’’ and ‘‘your’’

refer to the named insured shown on the

accepted application and ‘‘we,’’ ‘‘us,’’ and

‘‘our’’ refer to the Federal Crop Insurance

Corporation. 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.

Reinsured policies

This insurance policy is reinsured by the

Federal Crop Insurance Corporation (FCIC)

under the provisions of the Federal Crop

Insurance Act, as amended (7 U.S.C. 1501 et

seq.) (Act). All provisions of the policy and

rights and responsibilities of the parties are

specifically subject to the Act. The provisions

of the policy are published in the Federal

Register and in the chapter IV of title 7 of the

Code of Federal Regulations (CFR) under the

Federal Register Act (44 U.S.C. 1501 et seq.),

and may not be waived or varied in any way

by the crop insurance agent or any other

agent or employee of FCIC or the company.

In the event we cannot pay your loss, your

claim will be settled in accordance with the

provisions of this policy and paid by FCIC.

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 a conflict exists among these Basic

Provisions, the Crop Provisions, the Special

Provisions, and the Catastrophic Risk

Protection Endorsement, if applicable, the

Special Provisions will control the Crop

Provisions and these Basic Provisions; the

Crop Provisions will control these Basic

Provisions; and the Catastrophic Risk

Protection Endorsement, if applicable, will

control all provisions.

TERMS AND CONDITIONS

Basic Provisions

1. Definitions.

Abandon. Failure to continue providing

sufficient care (cultivation, irrigation,

fertilization, application of chemicals, etc.,

consistent with good farming practices) for

the insured crop to make normal progress

toward harvest or maturity, or failure to

harvest in a timely manner, unless such

failures are due to an insurable cause.

Acreage report. A report required by

paragraph 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, as

amended (7 U.S.C. 1501 et seq.).

Actuarial Table. The forms and related

material for the crop year which are available

for public inspection in your agent’s office,

and which show the amounts of insurance or

production guarantees, coverage levels,

premium rates, prices for computing

indemnities, practices, insurable acreage, and

other related information regarding crop

insurance in the county.

Another use, notice of. The written notice

required when you wish to put acreage to

another use (see section 14).

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 a break in insurance coverage

occurs for any reason, including but not

limited to suspension, debarment,

disqualification, placement on the

ineligibility list, violation of the controlled

substance provisions of the Food Security

Act of 1985, etc., a new application must be

filed.

Assignment of indemnity. A transfer of

policy rights, made on our form, and effective

when approved by us. It is the arrangement

whereby you assign your right to an

indemnity payment to any party of your

choice for the crop year.

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. 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.

Cancellation date. The calendar date

specified in each Crop Provision on which

that Crop Provision will automatically renew

unless canceled in writing by either you or

us.

Claim for indemnity. A claim made on our

form by you for damage or loss to an insured

crop and submitted to us not later than 60

days after the end of the insurance period

(see section 14).

Consent. Approval in writing by us

allowing you to take a specific action.

Contract. (See ‘‘policy’’).

Contract change date. The calendar date by

which we make any policy changes available

for inspection in the agent’s office (see

section 4).

County. The county, parish, or other

political subdivision of a state shown on your

accepted application and includes acreage in

a field that extends into an adjoining county

if the county boundary is not readily

discernible.

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

and the policy 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 and

designated by the calendar year in which the

insured crop is normally harvested.

Damage. Injury, deterioration, or loss of

production of the insured crop due to

insured or uninsured causes.

Damage, notice of. A written notice

required to be filed in your agent’s office

whenever you initially discover the insured

crop has been damaged to the extent that a

loss is probable (see section 14).

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 account. Any account you have

with us in which premiums and interest on
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43243

those premiums is not paid by the

termination date specified in the Crop

Provisions, or any other amounts due us,

such as indemnities found not to have been

earned, which are not paid within 30 days of

our mailing or other delivery of notification

to you of the amount due.

Earliest planting date. The earliest date

established for planting the insured crop and

qualifying for a replant payment if applicable

(see Special Provisions and section 13).

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).

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.

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.

Good farming practices. The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee or

amount of insurance, and are those

recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

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 defined under these

Basic Provisions and the applicable Crop

Provisions as shown on the application

accepted by us.

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 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 Special Provisions.

Loss, notice of. The notice required to be

given by you not later than 72 hours after

certain occurrences or 15 days after the end

of the insurance period, whichever is earlier

(see section 14).

Negligence. The failure to use such care as

a reasonably prudent and careful person

would use under similar circumstances.

Non-contiguous. Any two or more tracts of

land whose boundaries do not touch at any

point, except that land separated only by a

public or private right-of-way, waterway, or

an irrigation canal will be considered as

contiguous.

Palmer Drought Severity Index. A

meteorological index calculated by the

National Weather Service to indicate

prolonged and abnormal moisture deficiency

or excess.

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

consisting of the accepted application, these

Basic Provisions, the Crop Provisions, the

Special Provisions, other applicable

endorsements or options, the Actuarial Table

for the insured crop, the Catastrophic Risk

Protection Endorsement, if applicable, and

the applicable regulations published in 7

CFR chapter IV.

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 not be considered

practical to replant after the end of the late

planting period or the final planting date if

no late planting period is applicable, unless

replanting is generally occurring in the area.

Unavailability of seed or plants will not be

considered a valid reason for failure to

replant.

Premium billing date. The earliest date

upon which you will be billed for insurance

coverage based on your acreage report and

which generally falls at or near harvest time.

The premium billing date is contained in the

Special Provisions.

Prevented planting. Failure to plant the

insured crop with proper equipment by the

final planting date designated in the Special

Provisions for the insured crop in the county

or by the end of the late planting period. You

must have failed to plant the insured crop

due to an insured cause of loss that has

prevented the majority of producers in the

surrounding area from planting the same

crop.

Prevented planting, notice of. Notice

required within 72 hours of the final planting

date if you are prevented from planting.

Price election. The amounts determined by

FCIC and contained in the Special Provisions

or an addendum thereto, to be used as a basis

for computing the value per unit of

production for the purposes of determining

premium and indemnity under the policy.

Production guarantee (per acre). The

number of pounds, bushels, tons, cartons, or

other applicable units of measure determined

by multiplying the approved actual

production history (APH) yield per acre,

calculated in accordance with 7 CFR part

400, subpart G, 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 (see section 3). The report contains

previous years yield information including

planted acreage and harvested production.

This report must be supported by written

verifiable records from a warehouseman or

buyer of the insured crop or by measurement

of farm stored production, or by other records

of production approved by us on an

individual case basis.

Replanting. Performing the cultural

practices necessary to prepare the land to

replace the seed or plants of the damaged or

destroyed crop and then replacing the seed

or plants in the insured acreage.

Representative sample. Portions of the

insured crop which are required to remain in

the field for examination and review by our

loss adjusters 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.

Sales closing date. The date contained in

the Special Provisions which is the final date

when an application may be filed. This is the

last date for you to make changes in your

crop insurance coverage for the crop year.

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 percentage of 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.

Summary of coverage. Our statement to

you, based upon your acreage report, by unit,

specifying the insured crop and the guarantee

or amount of insurance coverage provided.

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 policy ceases to exist for nonpayment of

premium or any other amount due us under

the policy.

Timely planted. Planted on or before the

final planting date designated in the Special

Provisions for the insured crop in the county.

USDA. United States Department of

Agriculture.

Void. When the policy is considered not to

have existed for a crop year as a result of

concealment, fraud or misrepresentation (see

section 27).

Written agreement. A document that alters

designated terms of a policy and that is

authorized under these Basic Provisions, the

Crop Provisions, or the Special Provisions for

the insured crop (see section 18).
43244 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

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.

(b) Applications that do not contain all

social security numbers and employer

identification numbers, as applicable,

coverage level, price election, crop, type,

variety, or class, plan of insurance, and any

other material information required to insure

the crop, are not acceptable. If a person with

a substantial beneficial interest in the insured

crop and who is not on the non-standard

classification list refused to provide a social

security number or employer identification

number, the amount of coverage available

under the policy will be reduced

proportionately to that person’s share of the

crop. If the person refusing to supply a social

security number or employer identification

number is on the non-standard classification

system list the insurance will not be available

to that entity.

(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) All policies issued by us under the

authority of the Act will terminate as of the

coincidental or next termination date

contained in these policies if any amount due

us is not paid on or before the termination

date for the crop on which the amount is due.

Such unpaid debts will make you ineligible

for any crop insurance provided under the

Act until payment is made or you execute an

agreement to repay the debt and all payments

are made in accordance with the agreement,

or your debt is discharged in your

bankruptcy proceeding. If payment is made,

you execute an agreement to repay the debt

or are discharged in bankruptcy after the

sales closing date for the crop, you will not

be eligible for crop insurance until the next

crop year. If we deduct an amount due us

from an indemnity, the date of payment for

the purpose of this paragraph will be the date

you sign the properly completed claim for

indemnity.

(f) If you die, disappear, or are judicially

declared incompetent, or if you are an entity

other than an individual and such entity is

dissolved, the policy will terminate as of the

date of death, judicial declaration, or

dissolution. If such event occurs after

coverage begins for any crop year, the policy

will continue in force through the crop year

and terminate at the end of the insurance

period and any indemnity will be paid to the

person or persons determined to be

beneficially entitled to the indemnity. Death

of a partner in a partnership will dissolve the

partnership unless the partnership agreement

provides otherwise. If two or more persons

having a joint interest are insured jointly,

death of one of the persons will dissolve the

joint entity.

(g) Your policy will terminate if no

premium is earned for 3 consecutive years.

(h) The cancellation and termination dates

are contained in the Crop Provisions.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities.

(a) For each crop year the production

guarantee or amount of insurance, coverage

level, and price at which an indemnity will

be determined for each unit will be those

used to calculate your summary of coverage.

The information necessary to determine

those factors will be contained in the Special

Provisions or in the Actuarial Table.

(b) You may select only one coverage level

offered by us for each insured crop. You may

change the coverage level, price election, or

amount of insurance for the following crop

year by giving written notice to us not later

than the sales closing date for the insured

crop. Since the price election or amount of

insurance may change each year, if you do

not select a new price election or amount of

insurance on or before the sales closing date,

we will assign a price election or amount of

insurance which bears the same relationship

to the price election schedule as the price

election or amount of insurance as was in

effect for the preceding year. (For example:

If you selected 100 percent of the market

price for the previous crop year and you do

not select a new price election for the current

crop year, we will assign 100 percent of the

market price for the current crop year.)

(c) You must report production to us for

the previous crop year by the earlier of the

acreage reporting date or 45 days after the

cancellation date. 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 production history for

the purpose of determining your coverage for

the current crop year. If you have filed a

claim for any crop year, the amount of

production used to complete the claim for

indemnity will be the production report for

that year unless otherwise specified by FCIC.

Production and acreage for the prior crop

year must be reported for each proposed

optional unit by the production reporting

date. If you did not provide the information

stated above, the optional units will be

combined into the basic unit.

(d) We may revise your production

guarantee for any farm unit, and revise any

indemnity paid based on that production

guarantee, if we find that your production

report under paragraph (c) of this section:

(1) Is not supported by written verifiable

records in accordance with the definition of

production report; or

(2) Fails to accurately report actual

production.

(e) In addition to the maximum 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. These additional amounts

will not be less than the maximum amounts

available on the contract change date. If you

elect this additional amount on or before the

sales closing date, any claim settlement and

amount of premium will be based on this

amount.

4. Contract Changes.

We may change the terms of your coverage

under this policy from year to year. Any

changes in policy provisions, price elections,

amounts of insurance, premium rates, and

program dates will be provided by us to your

crop insurance agent not later than the

contract change date contained in the Crop

Provisions except the price elections may be

offered after the contract change date in

accordance with section 3. You will be

notified, in writing, of these changes not later

than 30 days prior to the cancellation date for

the insured crop. Acceptance of changes will

be conclusively presumed in the absence of

notice from you to change or cancel your

insurance coverage.

5. Liberalization.

If we adopt any revisions which would

broaden the coverage under this policy

subsequent to the contract change date

without additional premium, the broadened

coverage will apply.

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 that have

fall 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 fall acreage

reporting date for such crops; and

(2) If you insure multiple crops that have

spring 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 spring

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 the acreage reporting date

contained in the Special Provisions or the

date determined in accordance with section

6(a)(2), or 5 days after the end of the late

planting period for the insured crop.

(b) If you do not have a share in any

insured crop in the county for the crop year,

you must submit an acreage report so

indicating.

(c) Your acreage report must include the

following information, if applicable:

(1) All acreage of the crop (insurable and

not insurable) in which you have a share;

(2) Your share at the time coverage begins;

(3) The practice;

(4) The type; and

(5) The date the insured crop was planted,

including the date for late planted acreage.

(d) Because incorrect reporting on the

acreage report may have the effect of
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43245

changing your premium and any indemnity

which may be due, you may not revise this

report after the acreage reporting date

without our consent.

(e) We may elect to determine all

premiums and indemnities based on the

information you submit on the acreage report

or upon the factual circumstances which we

determine to have actually existed.

(f) If you do not submit an acreage report

by the acreage reporting date, or if you fail

to report all units, we may elect to determine

by unit the insurable crop acreage, share,

type and practice or to deny liability on such

units. If we deny liability for the unreported

units, your share of any production from the

unreported units will be allocated as

production to count to the reported units in

proportion to the liability on each reported

unit if you file a claim for a loss. The

production allocated in this manner will not

be used to compute the yield for actual

production history (see 7 CFR part 400,

subpart G) for the purpose of determining

your coverage for subsequent crop years.

(g) If the information reported by you on

the acreage report for share, acreage, practice,

type or other material information is

inconsistent with the information that is

determined to actually exist for a unit and

results in:

(1) A lower premium than the actual

premium determined to be due, the

production guarantee or amount of insurance

on the unit will be reduced to an amount that

is consistent with the correct information. In

the event that insurable acreage is underreported for any unit, all production or value

from insurable acreage in that unit will be

considered production or value to count in

determining the indemnity; and

(2) Overstated liability, you may be

required to provide documentation in

subsequent crop years that support your

report of acreage for those crop years

including but not limited to an acreage

measurement service at your own expense.

(h) 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.

(a) The annual premium is earned and

payable at the time coverage begins. You will

be billed for premium due not earlier than

the billing date specified in the Special

Provisions. The premium due, plus any

accrued interest, will be considered

delinquent if any amount due us is not paid

on or before the termination date specified in

the Crop Provisions.

(b) Any amount you owe us related to any

crop insured with us under the authority of

the Act will be deducted from any replant

payment, prevented planting payment, or

indemnity due you for any crop insured with

us under the authority of the Act. Any

delinquent amount may be deducted from

any amount owed to you by any United

States Government agency or by us.

(c) The annual premium amount is

determined by either:

(1) Multiplying the production guarantee

per acre times the price election, 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 the 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 premium will be computed using

the price election or amount of insurance you

elect or that we assign.

8. Insured Crop.

(a) The insured crop will be that shown on

your accepted application and as specified in

the Crop Provisions and must be grown on

insurable acreage.

(b) A crop which will NOT be insured will

include, but will not be limited to, any crop:

(1) If the farming practices carried out are

not in accordance with the farming practices

for which the premium rates, production

guarantees or amounts of insurance have

been established;

(2) Of a type, class or variety established

as not adapted to the area or excluded by the

policy provisions;

(3) That is a volunteer crop;

(4) That is a second crop following the

same crop (insured or not insured) harvested

in the same crop year unless specifically

permitted by the Crop Provisions or the

Special Provisions;

(5) Which is planted for the development

or production of hybrid seed or for

experimental purposes, unless permitted by

the Crop Provisions or by a written

agreement to insure such crop; or

(6) Used for wildlife protection or

management.

9. Insurable Acreage.

(a) Acreage planted to the insured crop in

which you have a share is insurable except

for acreage:

(l) That has not been planted and harvested

within one of the 3 previous calendar years,

unless such acreage was not planted to

comply with any other USDA program or

because of crop rotation, (e.g., corn, soybean,

alfalfa; and the alfalfa remained for 4 years

before the acreage was planted to corn again),

or the crop provisions specifically allow

insurance for such acreage;

(2) That has been strip mined unless

otherwise approved by written agreement, or

unless crops produced for food or fiber have

been harvested from the acreage for at least

five consecutive crop years after it was strip

mined. Cover or forage crops will not qualify

as a food or fiber crop for the purpose of this

section.

(3) On which the insured crop is damaged

and it is practical to replant the insured crop,

but the insured crop is not replanted;

(4) Which is interplanted, unless allowed

by the Crop Provisions;

(5) Which is otherwise restricted by the

Crop Provisions or Special Provisions; or

(6) Planted in any manner other than as

specified in the policy provisions for the crop

unless a written agreement to such planting

exists.

(b) If insurance is provided for an irrigated

practice, you must report as irrigated only

that acreage for which you have adequate

facilities and water, at the time coverage

begins, to carry out a good irrigation practice.

(c) If acreage is irrigated and we do not

provide a premium rate for an irrigated

practice, you may either report and insure

the irrigated acreage as ‘‘non-irrigated,’’ or

report the irrigated acreage as not insured.

(d) We may restrict the amount of acreage

which 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.

10. Share Insured.

(a) You may only insure your share (see

section 1).

(b) You as a landlord (or tenant) may

insure your tenant’s (or landlord’s) share of

the crop if evidence of the other party’s

approval of that insurance is demonstrated

(Lease, Power of Attorney, etc.). The

respective shares must be clearly set out on

the Acreage Report and a copy of the other

party’s approval must be retained by us.

(c) Unless the accepted application clearly

indicates that insurance is requested for a

partnership or joint venture, or is intended to

cover the landlord’s, or tenant’s share of the

crop, insurance will cover only the crop

share of the person completing the

application. The share will not extend to any

other person having an interest in the crop

except as may otherwise be specifically

allowed in this policy.

(d) We may consider any acreage or

interest reported by or for your spouse, child

or any member of your household to be

included in your share.

(e) Acreage rented for a percentage of the

crop will be considered a crop share lease.

(f) 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. Acreage rented for cash will be

considered a cash lease. A lease containing

provisions for EITHER a minimum payment

OR a crop share (e.g. lease provides for a 50/

50 share or 100 dollars, 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;

(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 at the earliest of:

(1) Total destruction of the insured crop on

the unit;

(2) Harvest of the unit;
43246 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

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

(4) The calendar date contained in the Crop

Provisions for the end of the insurance

period;

(5) Abandonment of the crop on the unit;

or

(6) As otherwise specified in the Crop

Provisions.

12. Causes of Loss.

The insurance provided is against only

unavoidable loss of production directly

caused by specific causes of loss contained

in the Crop Provisions. All other causes of

loss, including but not limited to the

following, are NOT covered:

(a) Negligence, mismanagement, or

wrongdoing by you, any member of your

family or household, your tenants, or

employees;

(b) The failure to follow recognized good

farming practices for the insured crop;

(c) Water contained by any governmental,

public, or private dam or reservoir project;

(d) Failure or breakdown of irrigation

equipment or facilities; or

(e) Failure to carry out a good irrigation

practice for the insured crop if applicable.

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).

(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 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

your actual cost for replanting, but will not

exceed the amount determined in accordance

with the Crop Provisions.

(d) No replanting payment will be paid if

we determine it is not practical to replant.

14. Duties in the Event of Damage or Loss.

Your Duties—

(a) In case of damage to any insured crop

you must:

(1) Protect the crop from further damage by

providing sufficient care;

(2) Give us notice within 72 hours of your

initial discovery of damage (but not later than

15 days after the end of the insurance

period), by unit, for each insured crop; and

(3) Leave representative samples intact for

each field of the damaged unit as may be

required by the Crop Provisions.

(4) Cooperate with us in the investigation

or settlement of the claim, and, as often as

we reasonably require:

(i) Show us the damaged crop;

(ii) Allow us to remove samples of the

insured crop; and

(iii) Provide us with records and

documents we request and permit us to make

copies.

(b) You must obtain consent from us

before, and notify us after you:

(1) Destroy any of the insured crop which

is not harvested;

(2) Put the insured crop to an alternative

use;

(3) Put the acreage to another use; or

(4) Abandon any portion of the insured

crop. We will not give such consent if it is

practical to replant the crop or until we have

made an appraisal of the potential

production of the crop.

(c) In addition to complying with all other

notice requirements, you must submit a

claim for indemnity declaring the amount of

your loss not later than 60 days after the end

of the insurance period. This claim must

include all the information we require to

settle the claim.

(d) Upon our request, you must:

(1) Provide a complete harvesting and

marketing record of each insured crop by

unit including separate records showing the

same information for production from any

acreage not insured; and

(2) Submit to examination under oath.

(e) You must establish the total production

or value received for the insured crop on the

unit and that any loss of production or value

occurred during the insurance period and

was directly caused by one or more of the

insured causes specified in the Crop

Provisions.

(f) All notices required in this paragraph

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.

Our Duties—

(a) If you have complied with all the policy

provisions we will pay your loss within 30

days after:

(1) We reach agreement with you; or

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

of competent jurisdiction.

(b) 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.

(c) 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.

(d) We recognize and apply the loss

adjustment procedures established or

approved by the Federal Crop Insurance

Corporation.

15. Production Included in Determining

Indemnities.

(a) The total production to be counted for

a unit will include all production determined

in accordance with the policy.

(b) The amount of production of any

unharvested insured crop may be determined

on the basis of our field appraisals conducted

after the end of the insurance period.

(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 the applicable Form

FCI–78 ‘‘Request To Exclude Hail and Fire’’

or a form approved by the Federal Crop

Insurance Corporation that contains the same

terms.

16. Late Planting.

Unless limited by the Crop Provisions,

insurance will be provided for acreage

planted to the insured crop after the final

planting date in accordance with the

following:

(a) The production guarantee or amount of

insurance for each acre planted to the

insured crop during the late planting period

will be reduced by 1 percent per day for each

day planted after the final planting date.

(b) The production guarantee or amount of

insurance for each acre of the insured crop

that is planted to the insured crop after the

late planting period (or after the final

planting date for crops that do not have a late

planting period) will be the same as the

production guarantee or amount of insurance

that is provided for acreage of the insured

crop that is prevented from being planted

(see section 17). Such acreage must have

been prevented from being planted by an

insurable cause occurring within the

insurance period for prevented planting

coverage.

(c) The premium amount for insurable

acreage planted to the insured crop after the

final planting date 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 acreage

planted after the final planting date 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).

17. Prevented Planting.

(a) Unless limited by the Crop Provisions,

a prevented planting payment may be made

to you for eligible acreage you were

prevented from planting if:

(1) You were prevented from planting the

insured crop by an insured cause 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; and

(2) You notify us within 72 hours after the

final planting date if you are prevented from

planting by such date, whether or not you

intend to plant any acreage of the insured

crop after the final planting date. In addition

to this notice, you must include any acreage

of the insured crop that was prevented from

being planted on your acreage report.

(b) The Actuarial Table contains the levels

of prevented planting coverage that you may

elect for the crop on or before the sales

closing date. If you do not elect one of the

available coverages by the sales closing date,

you will receive the prevented planting

coverage specified in the Crop Provisions. If

you have a Catastrophic Risk Protection

Endorsement, you will receive the lowest

level of prevented planting coverage

available for the crop.

(c) The premium amount for acreage that

is prevented from being planted will be the
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43247

same as that for timely planted acreage. If the

amount of premium you are required to pay

(gross premium less our 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) Drought or failure of the irrigation

water supply will not be considered to be an

insurable cause of loss for the purposes of

prevented planting unless, on the final

planting date:

(1) For non-irrigated acreage, the area that

is prevented from being planted is classified

by the Palmer Drought Severity Index as

being in a severe or extreme drought; or

(2) For irrigated acreage, there is not a

reasonable probability of having adequate

water to carry out an irrigated practice.

(e) The maximum number of acres that

may be eligible for a prevented planting

payment for any crop will be determined as

follows:

(1) The base eligible acres for each insured

crop will be determined in accordance with

the following table.

Type of crop

Base eligible acres (if you have produced any

crop for which insurance was available in any

of the 4 most recent crop years)

Base eligible acres (if you have not produced

any crop for which insurance is available in

any of the 4 most recent crop years)

(i) (A) The crop’s insurance guarantee is

based on APH or the crop does not require

yield certification and the crop is not required to be contracted with a processor to

be insured.

(B) The maximum number of acres certified

for APH purposes or reported for insurance

for the crop in any one of the 4 most recent

crop years (not including reported prevented

planting acreage that was planted to a substitute crop other than an approved cover

crop).

(C) The number of acres approved by written

agreement in accordance with the provisions in this section and section 18.

(ii) (A) The crop must be contracted with a

processor to be insured and the contract

specifies a number of acres contracted for

the crop year.

(B) The number of acres of the crop specified

in the processor contract.

(C) The number of acres of the crop specified

in the processor contract.

(iii) (A) The crop must be contracted with a

processor to be insured and the processor

contract specifies a quantity of production

that will be accepted.

(B) The result of dividing the quantity of production stated in the processor contract by

your approved yield (For the purposes of

establishing the base number of prevented

planting acres, any reductions applied to the

transitional yield for failure to certify acreage

and production for a prior year will not be

used.).

(C) The result of dividing the quantity of production stated in the processor contract by

your approved yield (For the purposes of

establishing the base number of prevented

planting acres, any reductions applied to the

transitional yield for failure to certify acreage

and production for a prior year will not be

used.).

(2) All requests for written agreement

under this section must be submitted to us

on or before the sales closing date and

include, by crop, the number of acres of all

crops for which insurance is offered under

the authority of the Act that you intend to

plant in the county.

(3) The total number of acres requested for

all crops cannot exceed the number of acres

of cropland in your farming operation for the

crop year.

(4) The number of acres determined in

section 17(e)(1)(i)(B) may be increased by

multiplying it by the ratio of the total

cropland acres that you are farming this year

(if greater) to the total cropland acres that you

farmed in the previous year, provided that

you submit proof to us on or before the sales

closing date for the insured crop that you

have purchased or leased additional land,

that acreage will be released from any USDA

program which prohibits harvest of a crop, or

that the additional acreage has not been

cropped in any of the four most recent crop

years. Such acreage must have been

purchased, leased, released from the USDA

program, or intended to be brought into

production in time to plant it for the current

crop year.

(5) The result of section 17(e)(1) or 17(e)(4),

whichever is applicable, will be reduced by

subtracting the number of acres of the crop

that are timely and late planted.

(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 (We

will assume that any prevented planting

acreage within a field that contains planted

acreage would have been planted to the same

crop that is planted in the field, unless the

prevented planting acreage constitutes at

least 20 acres or 20 percent of the insurable

acreage in the field and you can prove that

you intended to plant such acreage to another

crop);

(2) For which the Actuarial Table does not

designate a premium rate unless a written

agreement designates such premium rate;

(3) Used for conservation purposes or

intended to be left unplanted under any

program administered by the USDA;

(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, unless you have coverage

greater than that applicable to the

Catastrophic Risk Protection Plan of

Insurance and have records of acreage and

production that are used to determine your

approved yield that show the acreage was

double-cropped in each of the last 4 years in

which the insured crop was grown on the

acreage;

(5) On which the insured crop is prevented

from being planted, if any crop from which

any benefit is derived under any program

administered by the USDA is planted and

fails, or if any crop is planted and harvested,

hayed or grazed on the same acreage in the

same crop year (other than a cover crop

which may be hayed or grazed after the final

planting date for the insured crop), unless

you have coverage greater than that

applicable to the Catastrophic Risk Protection

Plan of Insurance and have records of acreage

and production that are used to determine

your approved yield that show the acreage

was double-cropped in each of the last 4

years in which the insured crop was grown

on the acreage;

(6) Of a crop that is prevented from being

planted if a cash lease payment is also

received for use of the same acreage in the

same crop year (not applicable if acreage is

leased for haying or grazing only);

(7) For which planting history or

conservation plans indicate that the acreage

would have remained fallow for crop rotation

purposes;

(8) That is in excess of the number of acres

eligible for a prevented planting payment or

the number of eligible acres physically

available for planting;

(9) For which you cannot provide proof

that you had the inputs available to plant and

produce a crop with the expectation of at

least producing the yield used to determine

the production guarantee or amount of

insurance;

(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; or

(11) Based on a price election, amount of

insurance or production guarantee for a crop

type that you did not plant in at least one of

the four most recent years. Types for which

separate price elections, amounts of

insurance, or production guarantees are

available must be included in your APH

database in at least one of the most recent

four years, or, crops that do not require yield

certification (crops for which the insurance
43248 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

guarantee is not based on APH) must be

reported on your acreage report in at least

one of the four most recent crop years.

(g) The prevented planting payment for any

eligible acreage within a unit will be

determined by:

(1) Multiplying the liability per acre for

timely planted acreage of the insured crop

(the amount of insurance per acre or the

production guarantee per acre multiplied by

the price election for the crop, or type if

applicable) 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) Multiplying the result of section

17(g)(1) by the number of eligible prevented

planting acres in the unit; and

(3) Multiplying the result of section

17(g)(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:

(a) You must apply in writing for each

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, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one crop year (If the written

agreement is not specifically renewed the

following year, insurance coverage for

subsequent crop years will be in accordance

with the printed policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

19. Crops as Payment.

You must not abandon any crop to us. We

will not accept any crop as compensation for

payments due us.

For FCIC policies

20. Appeals.

All determinations required by the policy

will be made by us. If you disagree with our

determinations, you may obtain

reconsideration of or appeal those

determinations in accordance with appeal

provisions published at 7 CFR part 11.

For reinsured policies

20. Arbitration.

(a) If you and we fail to agree on any

factual determination, the disagreement will

be resolved in accordance with the rules of

the American Arbitration Association.

Failure to agree with any factual

determination made by FCIC must be

resolved through the FCIC appeal provisions

published at 7 CFR part 11.

(b) No award determined by arbitration can

exceed the amount of liability established or

which should have been established under

the policy.

21. Access to Insured Crop and Record

Retention.

(a) We reserve the right to examine the

insured crop as often as we reasonably

require.

(b) For three years after the end of the crop

year, you must retain, and provide upon our

request, complete records of the harvesting,

storage, shipment, sale, or other disposition

of all the insured crop produced on each

unit. This requirement also applies to the

records used to establish the basis for the

production report for each unit. You must

also upon our request, provide separate

records showing the same information for

production from any acreage not insured. We

may extend the record retention period

beyond three years by notifying you of such

extension in writing. Your failure to keep and

maintain such records may, at our option,

result in:

(1) Cancellation of the policy;

(2) Assignment of production to the units

by us;

(3) Combination of the units; or

(4) A determination that no indemnity is

due;

(c) Any person designated by us will, at

any time during the record retention period,

have access:

(1) To any records relating to this

insurance at any location where such records

may be found or maintained; and

(2) To the farm.

(d) By applying for insurance under the

authority of the Act or by continuing

insurance for which you previously applied,

you authorize us, or any person acting for us,

to obtain records relating to the insured crop

from any person who may have custody of

those records including, but not limited to,

FSA offices, banks, warehouses, gins,

cooperatives, marketing associations, and

accountants. You must assist us in obtaining

all records which we request from third

parties.

22. Other Insurance.

(a) Other Like Insurance. You must not

obtain any other crop insurance issued under

the authority of the Act on your share of the

insured crop. If we determine that more than

one policy on your share is intentional, you

may be subject to the fraud provisions under

this policy. If we determine that the violation

was not intentional, the policy with the

earliest date of application will be in force

and all other policies will be void. Nothing

in this paragraph prevents you from

obtaining other insurance not issued under

the Act.

(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

only for the smaller of:

(1) The amount of indemnity determined

pursuant to this policy without regard to any

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.

(3) For the purpose of subsection (b) of this

section the amount of loss from fire will be

the difference between the fair market value

of the production of the insured crop on the

unit involved before the fire and after the

fire, as determined from appraisals made by

us.

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 and

your premium will be refunded, less a

reasonable amount for expenses and

handling not to exceed 20 percent of the

premium paid or to be paid by you.

For FCIC Policies

24. Amounts Due Us.

(a) Any amount illegally or erroneously

paid to you or that is owed to us but is

delinquent may be recovered by us through

offset by deducting it from any loan or

payment due you under any Act of Congress

or program administered by any United

States Government Agency, or by other

collection action.

(b) Interest will accrue at the rate of 11⁄4

percent simple interest per calendar month,

or any part thereof, on any unpaid premium

amount due us. With respect to any

premiums owed, interest will start to accrue

on the first day of the month following the

premium billing date specified in the Special

Provisions.

(c) For the purpose of any other amounts

due us, such as repayment of indemnities

found not to have been earned, interest will

start 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.

(d) Penalties and interest will be charged

in accordance with 31 U.S.C. 3717 and 4 CFR

part 102. The penalty for accounts more than

90 days delinquent is an additional 6 percent

per annum.

(e) Interest on any amount due us

found to have been received by you

because of fraud, misrepresentation or

presentation by you of a false claim will

start on the date you received the

amount with the additional 6 percent

penalty beginning on the 31st day after

the notice of amount due is issued to

you. This interest is in addition to any

other amount found to be due under any

other federal criminal or civil statute.

(f) If we determine that it is necessary

to contract with a collection agency,

refer the debt to government collection
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43249

centers, the Department of Treasury

Offset Program, or to employ an attorney

to assist in collection, you agree to pay

all the expenses of collection.

(g) All amounts paid will be applied

first to the payment of the expenses of

collection second to the reduction of

any penalties which may have been

assessed, then to reduction of accrued

interest, then to reduction of the

principal balance.

For Reinsured Policies

24. Amounts Due Us.

(a) Interest will accrue at the rate of 1.25

percent simple interest per calendar month

on any unpaid amount due us. For the

purpose of premium amounts due us, the

interest will start on the first day of the

month following the premium billing date

specified in the Special Provisions.

(b) For the purpose of any other amounts

due us, such as repayment of indemnities

found not to have been earned, interest will

start 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

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. Those expenses will be paid

before the application of any amounts to

interest or principal.

25. Legal Action Against Us.

(a) You may not bring legal action against

us unless you have complied with all of the

policy provisions.

(b) If you do take legal action against us

you must do so within 12 months of the date

of denial of the claim. Suit must be brought

in accordance with the provisions of 7 U.S.C.

1508(j).

(c) Your right to recover damages

(compensatory, punitive, or other), attorney’s

fees, or other charges is limited or excluded

by this contract or by Federal Regulations.

26. Payment and Interest Limitations.

(a) Under no circumstances will we be

liable for the payment of damages

(compensatory, punitive, or other), attorney’s

fees, or other charges in connection with any

claim for indemnity, whether we approve or

disapprove such claim.

(b) 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) This policy will be voided in the event

that you have falsely or fraudulently

concealed the fact that you are ineligible to

receive benefits under the Act. This policy

will also be voided if you or anyone assisting

you has intentionally concealed or

misrepresented any material fact relating to

this policy.

(b) Even though the policy is void, you

may still be required to pay 20 percent of the

premium due under the policy 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

during the crop year in which the violation

occurred.

(d) Voidance will be effective with 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 or you are disqualified or

suspended or debarred under 7 CFR part 400,

subpart R.

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. The transfer must be on our

form and approved by us. Both you and the

person to whom you transfer your interest are

jointly and severally liable for the payment

of the premium. The transferee has all rights

and responsibilities under this policy

consistent with the transferee’s interest. We

will not be liable for any more than the

liability determined in accordance with your

policy that existed before the transfer

occurred. The transferee must be eligible for

crop insurance.

29. Assignment of Indemnity.

You may assign to another party your right

to an indemnity for the crop year. The

assignment must be on our form and will not

be effective until approved in writing by us.

The assignee will have the right to submit all

loss notices and forms as required by the

policy. If you have suffered a loss from an

insurable cause and fail to file a claim for

indemnity within 60 days after the end of the

insurance period, the assignee may submit

the claim for indemnity not later than 15

days after the 60 day period has expired. We

will make a good faith effort to honor the

terms of this assignment but no action will

lie against us for failure to do so.

30. Subrogation (Recovery of Loss From A

Third Party).

Because you may be able to recover all or

a part of your loss from someone other than

us, you must do all you can to preserve this

right. If we pay you for your loss, your right

to recovery will, at our option, belong to us.

If we recover more than we paid you plus our

expenses, the excess will be paid to you.

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.

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. 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. Unit Division.

(a) Unless limited by the Crop Provisions

or Special Provisions, a basic unit as defined

in section 1 (Definitions) of the Basic

Provisions (§ 457.8) 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 discernable 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;

(3) You have records, which can be

independently verified, of planted acreage

and the production from each optional unit

for at least the last crop year used to

determine your production guarantee;

(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 must be kept separate until loss

adjustment is completed by us; and

(b) 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. In the absence of sections, we may

consider parcels of land legally identified by

other methods of measure including, but not

limited to: Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands. In
43250 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

areas which have not been surveyed using

the systems identified above or another

system approved by us, and in areas where

boundaries are not readily discernable, each

optional unit must be located in a separate

FSA farm serial number; and

(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 if both are located in

the same section, section equivalent or FSA

farm serial number. To qualify as separate

irrigated and non-irrigated optional units, the

non-irrigated acreage may not continue into

the irrigated acreage in the same rows or

planting pattern. The irrigated acreage may

not extend beyond the point at which the

irrigation system can deliver the quantity of

water needed to produce the yield on which

the guarantee is based, except the corners of

a field in which a center-pivot irrigation

system is used will be considered as irrigated

acreage if separate acceptable records of

production from the corners are not

provided. If the corners of a field in which

a center-pivot irrigation system is used do

not qualify as a separate non-irrigated

optional unit, they will be a part of the unit

containing the irrigated acreage. However,

non-irrigated acreage that is not a part of a

field in which a center-pivot irrigation

system is used may qualify as a separate

optional unit provided all requirements of

this section and the Crop Provisions are met.

(c) Optional units are not available for

crops insured under a Catastrophic Risk

Protection Endorsement.

(d) 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.

* * * * *

5. Section 457.101 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.101 Small grains crop insurance

provisions.

The small grains crop insurance

provisions for the 1998 and succeeding

crop years in counties with a contract

change date of December 31, and for the

1999 and succeeding crop years in

counties with a contract change date of

June 30, are as follows:

* * * * *

6. In § 457.101, 1. Definitions, remove

alphabetic paragraph designations and

the definitions of ‘‘days,’’ ‘‘final

planting date,’’ ‘‘good farming

practices,’’ ‘‘interplanted,’’ ‘‘irrigated

practice,’’ ‘‘late planted,’’ ‘‘practical to

replant,’’ ‘‘production guarantee,’’

‘‘replanting,’’ and ‘‘timely planted’’ and

revise the definitions of ‘‘planted

acreage’’ and ‘‘prevented planting’’ to

read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), except for flax, land on which seed

is initially spread onto the soil surface by any

method and subsequently is mechanically

incorporated into the soil in a timely manner

and at the proper depth. Flax seed must

initially be planted in rows to be considered

planted, unless otherwise provided by the

Special Provisions, Actuarial Table, or by

written agreement.

Prevented planting—(In lieu of the

definition contained in the Basic Provisions

(§ 457.8)) Failure to plant the insured crop

with proper equipment by the latest final

planting date designated in the Special

Provisions for the insured crop in the county

or by the end of the late planting period. You

must have failed to plant the insured crop

due to an insured cause of loss that has

prevented the majority of producers in the

surrounding area from planting the same

crop.

* * * * *

7. In Section 457.101, remove the

words ‘‘Common Crop Insurance

Policy’’ and add in their place, the

words ‘‘Basic Provisions’’ in the

following places:

a. Section 3 Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities;

b. Section 4 Contract Changes;

c. Section 6 Insured Crop paragraphs

(b)(1) and (b)(2);

d. Section 7 Insurance Period

introductory text;

e. Section 8 Causes of Loss,

introductory text;

f. Section 9 Replanting Payments,

paragraphs (a)(1) and (c); and

g. Section 10 Duties in the Event of

Damage or Loss.

8. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

In addition to the requirements of section

34.(b) of the Basic Provisions (§ 457.8), for

wheat only, in addition to, or instead of,

optional units by section, section equivalent

or FSA farm serial number and by irrigated

and non-irrigated practices, optional units

may be established if each optional unit

contains only initially planted winter wheat

or initially planted spring wheat. Optional

units may be established in this manner only

in counties having both fall and spring final

planting dates as designated in the Special

Provisions.

9. In Section 6. Insured Crop,

paragraph (b)(1) is revised to read as

follows:

6. Insured Crop.

(a) * * *

(b) * * *

(1) May report all planted acreage when

you report your acreage for the crop year and

specify any acreage to be destroyed as

uninsurable acreage. (By doing so, no

coverage will be considered to have attached

on the specified acreage and no premium

will be due for such acreage. If you do not

destroy such acreage, you will be subject to

the under-reporting provisions contained in

section 6 of the Basic Provisions (§ 457.8)); or

* * * * *

10. In Section 7. Insurance Period,

paragraphs (a)(1)(i), (a)(1)(ii), and

(a)(2)(i) are revised to read as follows:

7. Insurance Period.

* * * * *

(a) * * *

(1) * * *

(i) The acreage must be planted on or

before the final planting date designated in

the Special Provisions for the insured crop

except as allowed in section 12 of these crop

provisions and section 16 of the Basic

Provisions (§ 457.8).

(ii) Any acreage of the insured crop

damaged before the final planting date, to the

extent that growers in the area would not

normally further care for the crop, must be

replanted unless we agree that replanting is

not practical.

(2) * * *

(i) The acreage must be planted on or

before the final planting date designated in

the Special Provisions for the type (winter or

spring) except as allowed in section 12 of

these crop provisions and section 16 of the

Basic Provisions (§ 457.8).

* * * * *

11. In Section 12. Late Planting and

Prevented Planting is revised to read as

follows:

12. Late Planting.

A late planting period is not applicable to

fall-planted wheat. Any winter wheat that is

planted after the fall final planting date in

counties for which the Special Provisions

also contain a final planting date for spring

wheat will not be insured. Any winter wheat

that is planted after the fall final planting

date in counties for which the Special

Provisions contain only a fall final planting

date will not be insured unless you were

prevented from planting the winter wheat by

the fall final planting date. Such acreage will

be insurable, and the production guarantee

and premium for the acreage will be

determined in accordance with sections 16

(b) and (c) of the Basic Provisions (§ 457.8).

12. Section 13 is added to read as

follows:

13. Prevented Planting.

(a) In addition to the provisions contained

in section 17 of the Basic Provisions

(§ 457.8), in counties for which the Special

Provisions designate a spring final planting

date, your prevented planting production

guarantee will be based on your approved

yield for spring-planted acreage of the

insured crop.

(b) Your prevented planting coverage will

be 60 percent of your production guarantee

for timely planted acreage. If you have
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43251

limited or additional levels of coverage, as

specified in 7 CFR part 400 subpart T, and

pay an additional premium, you may

increase your prevented planting coverage to

the levels specified in the Actuarial Table.

13. Section 457.104 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.104 Cotton crop insurance

provisions.

The cotton crop insurance provisions

for the 1998 and succeeding crop years

are as follows:

* * * * *

14. In § 457.104, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘days,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘late planted,’’

‘‘late planting period,’’ ‘‘practical to

replant,’’ ‘‘prevented planting,’’

‘‘replanting,’’ ‘‘timely planted,’’ and

‘‘written agreement’’ and revise the

definition of ‘‘planted acreage’’ to read

as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), cotton must be planted in rows,

unless otherwise provided by the Special

Provisions, Actuarial Table, or by written

agreement. The yield conversion factor

normally applied to non-irrigated skip-row

cotton acreage will not be used if the land

between the rows of cotton is planted to any

other spring planted crop.

* * * * *

15. In § 457.104, remove the words

‘‘Common Crop Insurance Policy’’ and

add in their place, the words ‘‘Basic

Provisions’’ in the following places:

a. Section 3 Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities;

b. Section 4 Contract Changes;

c. Section 5 Cancellation and

Termination Dates, introductory text;

d. Section 6 Insured Crop,

introductory text;

e. Section 7 Insurable Acreage,

introductory text;

f. Section 8 Insurance Period,

paragraphs (a) and (b);

g. Section 9 Causes of Loss,

introductory text; and

h. Section 10 Duties in the Event of

Damage or Loss, paragraph (a).

* * * * *

16. Section 2. Unit Division is

removed.

§ 457.104, Sections 3 through 13

[Redesignated as sections 2 through 12]

17. In § 457.104, Sections 3 through

13 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

Section 13 ............................... Section 12.

18. Redesignated Section 6(b) is

revised to read as follows:

6. Insurable Acreage.

* * * * *

(a) * * *

(b) Any acreage of the insured crop

damaged before the final planting date, to the

extent that a majority of producers in the area

would not normally further care for the crop,

must be replanted unless we agree that it is

not practical to replant.

* * * * *

19. Redesignated Section 7(a) is

revised to read as follows:

7. Insurance Period.

(a) In lieu of Section 11(b)(2) of the Basic

Provisions (§ 457.8) (Harvest of the unit),

insurance will end upon the removal of the

cotton from the field.

* * * * *

20. Redesignated Section 10(c)(1)(i)(E)

is amended by changing the section

reference therein from 10 to 9.

* * * * *

21. Redesignated Section 10(c)(1)(iii)

is amended by changing the section

reference therein from 11.(d) to 10(d).

* * * * *

22. Redesignated Section 11 is revised

to read as follows:

11. Prevented Planting.

(a) In addition to the provisions contained

in section 17 of the Basic Provisions

(§ 457.8), your prevented planting production

guarantee will be based on your approved

yield for solid planted acreage.

(b) Your prevented planting coverage will

be 45 percent of your production guarantee

for timely planted acreage. If you have

limited or additional levels of coverage, as

specified in 7 CFR part 400 subpart T, and

pay an additional premium, you may

increase your prevented planting coverage to

the levels specified in the Actuarial Table.

* * * * *

23. Redesignated Section 12 is

removed.

24. Section 457.105 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.105 Extra long staple cotton crop

insurance provisions.

The extra long staple cotton crop

insurance provisions for the 1998 and

succeeding crop years are as follows:

* * * * *

25. In § 457.105, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘days,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘practical to

replant,’’ ‘‘prevented planting,’’ ‘‘timely

planted,’’ and ‘‘written agreement’’ and

revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), cotton must be planted in rows,

unless otherwise provided by the Special

Provisions, Actuarial Table, or by written

agreement. The yield conversion factor

normally applied to non-irrigated skip-row

cotton acreage will not be used if the land

between the rows of cotton is planted to any

other spring planted crop.

* * * * *

26. In § 457.105, remove the words

‘‘Common Crop Insurance Policy’’ and

add in their place, the words ‘‘Basic

Provisions’’ in the following places:

a. Section 3 Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities;

b. Section 4 Contract Changes;

c. Section 5 Cancellation and

Termination Dates;

d. Section 6 Insured Crop,

introductory text;

e. Section 7 Insurable Acreage,

introductory text;

f. Section 8 Insurance Period,

paragraphs (a) and (b);

g. Section 9 Causes of Loss,

introductory text; and

h. Section 10 Duties in the Event of

Damage or Loss, paragraph (a).

27. Section 2. Unit Division is

removed.

§ 457.105, Sections 3 through 13

[Redesignated as sections 2 through 12]

28. In § 457.105, Sections 3 through

13 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

Section 13 ............................... Section 12.
43252 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

29. Redesignated Section 6(b) is

revised to read as follows:

6. Insurable Acreage.

* * * * *

(a) * * *

(b) Any acreage of the insured crop

damaged before the final planting date, to the

extent that a majority of producers in the area

would not normally further care for the crop,

must be replanted unless we agree that it is

not practical to replant.

* * * * *

30. Redesignated Section 7(a) is

revised to read as follows:

7. Insurance Period.

(a) In lieu of Section 11(b)(2) of the Basic

Provisions (§ 457.8) (Harvest of the unit),

insurance will end upon the removal of the

cotton from the field.

* * * * *

31. Redesignated Section 10(c)(1)(i)(E)

is amended by changing the section

reference therein from 10 to 9.

* * * * *

32. Redesignated Section

10(c)(1)(iii)(A) is amended by changing

the section reference therein from 11.(d)

and (e) to 10(d) and (e).

* * * * *

33. Redesignated Section

10(c)(1)(iii)(B) is amended by changing

the section reference therein from 11.(f)

to 10(f).

* * * * *

34. Redesignated Section 10(e) is

amended by changing the section

reference therein from 11(d) to 10(d).

35. Redesignated Section 11 is revised

to read as follows:

11. Late Planting.

A late planting period is not applicable to

ELS cotton. Any ELS cotton that is planted

after the final planting date will not be

insured unless you were prevented from

planting it by the final planting date. Such

acreage will be insurable, and the production

guarantee and premium for the acreage will

be determined in accordance with sections

16(b) and (c) of the Basic Provisions (§ 457.8).

36. Redesignated Section 12 is revised

to read as follows:

12. Prevented Planting.

(a) In addition to the provisions contained

in section 17 of the Basic Provisions

(§ 457.8), your prevented planting production

guarantee will be based on your approved

yield for solid planted acreage.

(b) Your prevented planting coverage will

be 45 percent of your production guarantee

for timely planted acreage. If you have

limited or additional levels of coverage, as

specified in 7 CFR part 400 subpart T, and

pay an additional premium, you may

increase your prevented planting coverage to

the levels specified in the Actuarial Table.

37. Section 457.106 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.106 Texas citrus tree crop insurance

provisions.

The Texas citrus tree crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

38. In § 457.106, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘deductible,’’ ‘‘FSA,’’ ‘‘non-contiguous

land,’’ and ‘‘written agreement.’’

39. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

each citrus crop designated in the Special

Provisions.

(b) Provisions in the Basic Provisions

(§ 457.8), that allow optional units by

irrigated and non-irrigated practices are not

applicable. Each optional unit must meet one

of the following, unless otherwise allowed by

written agreement:

(1) Optional units may be established if

each optional unit is located in a separate

section. In the absence of sections, we may

consider parcels of land legally identified by

other methods of measure including, but not

limited to: Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, and in areas where such

systems exist but boundaries are not readily

discernible, each optional unit must be

located in a separate FSA farm serial number;

or

(2) Instead of establishing optional units by

section, section equivalent, or FSA Farm

Serial Number optional units may be

established if each optional unit is located on

non-contiguous land.

40. Section 13 is revised to read as

follows:

13. Late and prevented planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

41. Section 457.107 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.107 Florida citrus fruit crop

insurance provisions.

The Florida citrus fruit crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

42. In § 457.107, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘non-contiguous land,’’ and

‘‘written agreement.’’

43. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

each citrus crop designated in the Special

Provisions.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by

irrigated and non-irrigated practices are not

applicable. Each optional unit must meet one

of the following, unless otherwise allowed by

written agreement:

(1) Optional units may be established if

each optional unit is located in a separate

section. In the absence of sections, we may

consider parcels of land legally identified by

other methods of measure including, but not

limited to: Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, and in areas where such

systems exist but boundaries are not readily

discernible, each optional unit must be

located in a separate FSA farm serial number;

or

(2) Instead of establishing optional units by

section, section equivalent, or FSA farm

serial number, optional units may be

established if each optional unit is located on

non-contiguous land.

44. Section 6(d) is amended by

changing the section reference therein

from 6(f) to 6.

45. Section 11 is revised to read as

follows:

11. Late and prevented planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

46. Section 457.108 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.108 Sunflower seed crop insurance

provisions.

The sunflower seed crop insurance

provisions for the 1998 and succeeding

crop years are as follows:

* * * * *

47. In § 457.108, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘days,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘late planted,’’

‘‘late planting period,’’ ‘‘practical to

replant,’’ ‘‘prevented planting,’’

‘‘production guarantee,’’ ‘‘replanting,’’

‘‘timely planted,’’ and ‘‘written

agreement’’ and revise the definition of

‘‘planted acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), sunflower seed must initially be

planted in rows far enough apart to permit

mechanical cultivation, unless otherwise

provided by the Special Provisions, Actuarial

Table, or by written agreement.

* * * * *

48. Section 2. Unit Division is

removed.
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43253

§ 457.108, Sections 3 through 13

[Redesignated as Sections 2 through 12]

49. In § 457.108, Sections 3 through

13 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

Section 13 ............................... Section 12.

50. Redesignated Section 4 is

amended by changing the section

reference therein from 2(f) to 2.

51. Redesignated Section 6(b) is

revised to read as follows:

6. Insurable Acreage.

* * * * *

(a) * * *

(b) Any acreage of the insured crop

damaged before the final planting date, to the

extent that a majority of growers in the area

would not normally further care for the crop,

must be replanted unless we agree that

replanting is not practical.

52. Redesignated Section 9(a) is

revised to read as follows:

9. Replanting Payments.

(a) In accordance with Section 13

(Replanting Payment) of the Basic Provisions

(§ 457.8), a replanting payment for sunflower

seed is allowed if the sunflowers are

damaged by an insurable cause of loss to the

extent that the remaining stand will not

produce at least ninety percent (90%) of the

production guarantee for the acreage and it

is practical to replant.

* * * * *

53. Redesignated Section 9(b) is

amended by changing the section

reference therein from 10.(c) to 9(c).

54. Redesignated Section 11(c)(1)(iii)

is amended by changing the section

reference therein from 12.(d) to 11(d).

55. Redesignated Section 11(d)(4) is

amended by changing the section

reference therein from 12.(d)(2) and (3)

to 11(d)(2) and (3).

56. Redesignated Section 12 is revised

to read as follows:

12. Prevented Planting.

Your prevented planting coverage will be

60 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

57. Section 457.109 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.109 Sugar beet crop insurance

provisions.

The sugar beet crop insurance

provisions for the 1998 and succeeding

crop years in counties with a contract

change date of November 30, and for the

1999 and succeeding crop years in

counties with a contract change date of

April 30, are as follows:

* * * * *

58. In § 457.109, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘late planted,’’

‘‘late planting period,’’ ‘‘prevented

planting,’’ ‘‘replanting,’’ ‘‘timely

planted,’’ and ‘‘written agreement’’ and

revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), sugar beets must initially be

planted in rows, unless otherwise provided

by the Special Provisions, Actuarial Table, or

by written agreement.

* * * * *

59. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

In addition to the requirements of section

34 of the Basic Provisions (§ 457.8), basic

units may be divided into optional units only

if you have a sugar beet processor contract

that requires the processor to accept all

production from a number of acres specified

in the sugar beet processor contract. Acreage

insured to fulfill a sugar beet processor

contract which provides that the processor

will accept a designated amount of

production or a combination of acreage and

production will not be eligible for optional

units.

60. Section 14 is revised to read as

follows:

14. Late Planting.

The late planting provisions contained in

section 16 of the Basic Provisions (§ 457.8),

are not applicable in California counties with

a July 15 cancellation date.

61. Section 15 is revised to read as

follows:

15. Prevented Planting.

(a) The prevented planting provisions

contained in section 17 of the Basic

Provisions (§ 457.8), are not applicable in

California counties with a July 15

cancellation date.

(b) Except in those counties indicated in

section 15(a), your prevented planting

coverage will be 45 percent of your

production guarantee for timely planted

acreage. If you have limited or additional

levels of coverage, as specified in 7 CFR part

400 subpart T, and pay an additional

premium, you may increase your prevented

planting coverage to the levels specified in

the Actuarial Table.

62. Section 457.110 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.110 Fig crop insurance provisions.

The fig crop insurance provisions for

the 1999 and succeeding crop years are

as follows:

* * * * *

63. In § 457.110, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘good farming practices,’’ ‘‘irrigated

practices,’’ ‘‘non-contiguous land,’’ and

‘‘production guarantee.’’

64. In § 457.110, remove the words

‘‘Common Crop Insurance Policy’’ and

add in their place, the words ‘‘Basic

Provisions’’ in the following places:

a. Section 3 Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities;

b. Section 4 Contract Changes;

c. Section 8 Insurance Period,

introductory text; and

d. Section 9 Causes of Loss,

paragraphs (a) and (b).

* * * * *

65. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Optional units

may be established only if each optional unit

is located on non-contiguous land, unless

otherwise allowed by written agreement.

66. Section 11 is added to read as

follows:

11. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

67. Section 457.111 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.111 Pear crop insurance provisions.

The pear crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

68. In § 457.111, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,

‘‘irrigated practice,’’ ‘‘non-contiguous,’’

‘‘production guarantee (per acre),’’ and

‘‘written agreement.’’

69. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

Provisions in the Basic Provisions (§ 457.8)

that allow optional units by irrigated and

non-irrigated practices are not applicable.

Each optional unit must meet one of the
43254 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

following, unless otherwise allowed by

written agreement:

(a) Optional units may be established if

each optional unit is located in a separate

section. In the absence of sections, we may

consider parcels of land legally identified by

other methods of measure including, but not

limited to: Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, and in areas where such

systems exist but boundaries are not readily

discernible, each optional unit must be

located in a separate FSA farm serial number;

or

(b) Instead of establishing optional units by

section, section equivalent, or FSA farm

serial number optional units may be

established if each optional unit is located on

non-contiguous land.

(c) In addition to, or instead of,

establishing optional units by section, section

equivalent, FSA farm serial number, or on

non-contiguous land, optional units may be

established by varietal group when provided

for in the Special Provisions.

70. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

71. Section 457.113 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.113 Coarse grains crop insurance

provisions.

The coarse grains crop insurance

provisions for the 1998 and succeeding

crop years are as follows:

* * * * *

72. In § 457.113, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘days,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘late planted,’’

‘‘late planting period,’’ ‘‘practical to

replant,’’ ‘‘prevented planting,’’

‘‘replanting,’’ ‘‘timely planted,’’ and

‘‘written agreement’’ and revise the

definitions of ‘‘planted acreage’’ and

‘‘production guarantee’’ to read as

follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), coarse grains must initially be

planted in rows (corn must be planted in

rows far enough apart to permit mechanical

cultivation), unless otherwise provided by

the Special Provisions, Actuarial Table, or by

written agreement.

Production guarantee (per acre)—In lieu to

the definition contained in the Basic

Provisions (§ 457.8), the number of bushels

(tons for corn insured as silage) determined

by multiplying the approved actual

production history (APH) yield per acre,

calculated in accordance with 7 CFR part

400, subpart G, by the coverage level

percentage you elect.

* * * * *

73. In § 457.113, remove the words

‘‘Common Crop Insurance Policy’’ and

add in their place, the words ‘‘Basic

Provisions’’ in the following places: a.

Section 3 Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities, paragraph (a);

b. Section 4 Contract Changes;

c. Section 5 Cancellation and

Termination Dates;

d. Section 6 Insured Crop, paragraph

(a);

e. Section 7 Insurable Acreage;

f. Section 8 Insurance Period,

introductory text;

g. Section 9 Causes of Loss,

introductory text;

h. Section 10 Replanting Payments,

paragraph (a); and

i. Section 11 Duties in the Event of

Damage or Loss, paragraphs (a), (b)(1),

and (b)(2).

* * * * *

74. Section 2. Unit Division is

removed.

§ 457.113, Sections 3 through 13

[Redesignated as Sections 2 through 12]

75. In § 457.113, Sections 3 through

13 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

Section 13 ............................... Section 12.

76. Redesignated Section 4 is

amended by changing the section

reference therein from 2.(f) to 2.

77. Redesignated Section 5(a)(3)(i) is

amended by changing the section

reference therein from 6.(b)(1) to 5(b)(1).

78. Redesignated Section 5(b) is

amended by changing the section

reference therein from 6.(a) to 5(a).

79. Redesignated Section 5(b)(1) is

amended by changing the section

reference therein from 6.(c) to 5(c).

80. Redesignated Sections 5(d) and (e)

are amended by changing the section

references therein from 6.(a) to 5(a).

81. Redesignated Section 6 is revised

to read as follows:

6. Insurable Acreage.

In addition to the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), any acreage of the insured crop

damaged before the final planting date, to the

extent that a majority of growers in the area

would not normally further care for the crop,

must be replanted unless we agree that

replanting is not practical.

82. Redesignated Section 9(a) is

revised to read as follows:

9. Replanting Payments.

(a) In accordance with section 13

(Replanting Payment) of the Basic Provisions

(§ 457.8), replanting payments for coarse

grains are allowed if the coarse grains are

damaged by an insurable cause of loss to the

extent that the remaining stand will not

produce at least ninety percent (90%) of the

production guarantee for the acreage and it

is practical to replant.

83. Redesignated Sections 11(b)(2)(iv)

and 11(c) are amended by changing the

section references therein from 12.(d) to

11(d).

84. Redesignated Section 11(c)(1)(iii)

is amended by changing the section

reference therein from 12.(e) to 11(e).

85. Redesignated Section 11(d)(2) is

amended by changing the section

reference therein from 12.(c)(1) to

11(c)(1).

86. Redesignated Section 11(e) is

amended by changing the section

reference therein from 12.(f) to 11(f).

87. Redesignated Section 11(e)(4) is

amended by changing the section

reference therein from 12.(e)(2) and (3)

to 11(e)(2) and (3).

88. Redesignated Section 12 is revised

to read as follows:

12. Prevented Planting.

Your prevented planting coverage will be

60 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

89. Section 457.114 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.114 Nursery crop insurance

provisions.

The nursery crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

90. In § 457.114, 1. Definitions,

remove alphabetic paragraph

designations and the definition of

‘‘written agreement’’ and revise the

definition of ‘‘irrigated practice’’ to read

as follows:

1. Definitions.

* * * * *

Irrigated practice—(In lieu of the definition

contained in the Basic Provisions (§ 457.8).)

A method of producing a crop by which
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43255

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

maintain the amount of insurance on the

nursery plant inventory.

* * * * *

91. Section 2. Unit Division is revised

to read as follows:

2. Unit Division.

In lieu of the definition of ‘‘basic unit’’ and

section 34 of the Basic Provisions (§ 457.8),

a unit consists of all growing locations in the

county within a five mile radius of the

named insured locations designated on your

nursery plant inventory summary. Any

growing location more than five miles from

any other growing location, but within the

county, may be designated as a separate basic

unit or be included in the closest unit listed

on your nursery plant inventory summary.

92. Section 13 is added to read as

follows:

13. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

93. Section 457.116 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.116 Sugar cane crop insurance

provisions.

The sugar cane crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

94. In § 457.116, 1. Definitions,

remove alphabetic paragraph

designations and the definitions of

‘‘CFSA,’’ ‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘production guarantee,’’ and ‘‘written

agreement.’’

95. Section 2. Unit Division is

removed.

§ 457.116, Sections 3 through 11

[Redesignated as sections 2 through 10]

96. In § 457.116, Sections 3 through

11 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

97. Redesignated Section 4 is

amended by changing the section

reference therein from 2.(f) to 2.

98. Redesignated Section 7(a)(2) is

amended by changing the section

reference therein from 8.(a)(3) to 7(a)(3).

99. Redesignated Section 10(c)(1)(v) is

amended by changing the section

reference therein from 10.(a)(2) to

9(a)(2).

100. Section 11 is added to read as

follows:

11. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

101. Section 457.117 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.117 Forage production crop

insurance provisions.

The forage production crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

102. In § 457.117, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘production guarantee (per acre),’’ and

‘‘written agreement.’’

103. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

The optional unit provisions in section 34

of the Basic Provisions (§ 457.8) are not

applicable.

104. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

105. Section 457.119 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.119 Texas citrus fruit crop insurance

provisions.

The Texas citrus fruit crop insurance

provisions for the 2000 and succeeding

crop years are as follows:

* * * * *

106. In § 457.119, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘irrigated practice,’’ ‘‘non-contiguous

land’’ and ‘‘written agreement.’’

107. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

each citrus crop designated in the Special

Provisions.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by

irrigated and non-irrigated practices are not

applicable. Each optional unit must meet one

of the following, unless otherwise allowed by

written agreement:

(1) Optional units may be established if

each optional unit is located in a separate

section. In the absence of sections, we may

consider parcels of land legally identified by

other methods of measure including, but not

limited to: Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, and in areas where such

systems exist but boundaries are not readily

discernible, each optional unit must be

located in a separate FSA farm serial number;

or

(2) Instead of establishing optional units by

section, section equivalent, or FSA farm

serial number, optional units may be

established if each optional unit is located on

non-contiguous land.

108. Section 13 is revised to read as

follows:

13. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

109. Section 457.121 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.121 Arizona-California citrus crop

insurance provisions.

The Arizona-California citrus crop

insurance provisions for the 2000 and

succeeding crop years are as follows:

* * * * *

110. In § 457.121, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous land,’’ ‘‘production

guarantee (per acre),’’ and ‘‘written

agreement.’’

111. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

each citrus crop designated in the Special

Provisions.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Optional units

may be established only if each optional unit

is located on non-contiguous land, unless

otherwise allowed by written agreement.

112. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

113. Section 457.122 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:
43256 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

§ 457.122 Walnut crop insurance

provisions.

The walnut crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

114. In § 457.122, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous land,’’ and ‘‘written

agreement.’’

115. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions (§ 457.8)

that allow optional units by section, section

equivalent, or FSA farm serial number and by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located on noncontiguous land, unless otherwise allowed by

written agreement.

116. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

117. Section 457.123 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.123 Almond crop insurance

provisions.

The almond crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

118. In § 457.123, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous land,’’ and ‘‘written

agreement.’’

119. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions (§ 457.8)

that allow optional units by section, section

equivalent, or FSA farm serial number and by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located on noncontiguous land, unless otherwise allowed by

written agreement.

120. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

121. Section 457.124 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.124 Raisin crop insurance

provisions.

The raisin crop insurance provisions

for the 1998 and succeeding crop years

are as follows:

* * * * *

122. In § 457.124, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘noncontiguous land,’’ and ‘‘written

agreement.’’

123. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit as defined in section 1 of

the Basic Provisions (§ 457.8), will be divided

into additional basic units by grape variety.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Optional units

may be established only if each optional unit

is located on non-contiguous land, unless

otherwise allowed by written agreement.

124. Section 14 is revised to read as

follows:

14. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

125. Section 457.125 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.125 Safflower crop insurance

provisions.

The safflower crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

126. In § 457.125, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘practical to

replant,’’ ‘‘production guarantee (per

acre),’’ ‘‘replanting,’’ and ‘‘written

agreement’’ and revise the definition of

‘‘planted acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), safflowers must initially be planted

in rows, unless otherwise provided by the

Special Provisions, Actuarial Table, or by

written agreement.

* * * * *

127. Section 2. Unit Division is

removed.

§ 457.125, Sections 3 through 13

[Redesignated as Sections 2 through

section 12.]

128. In § 457.125, Sections 3 through

13 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

Section 13 ............................... Section 12.

129. Redesignated Section 11(b)(2) is

amended by changing the section

reference therein from 12(b)(1) to

11(b)(1).

130. Redesignated Section 11(b)(3) is

amended by changing the section

reference therein from 12(b)(2) to

11(b)(2).

131. Redesignated Section (11)(b)(4) is

amended by changing the section

reference therein from 12(c) to 11(c).

132. Redesignated Section 11(b)(5) is

amended by changing the section

reference therein from 12(b)(4) to

11(b)(4).

133. Redesignated Section 11(b)(6) is

amended by changing the section

references therein from 12(b)(5) to

11(b)(5) and 12(b)(3) to 11(b)(3).

134. Redesignated Section 11(b)(7) is

amended by changing the section

reference therein from 12(b)(6) to

11(b)(6).

135. Redesignated Section 11(c)(1)(iii)

is amended by changing the section

reference therein from Section 12(d) to

Section 11(d).

136. Redesignated Section 11(d)(4) is

amended by changing the section

reference therein from 12(d)(2) and (3)

to 11(d)(2) and (3).

137. Redesignated Section 12 is

amended to read as follows:

12. Prevented Planting.

Your prevented planting coverage will be

60 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

* * * * *

§ 457.128 Guaranteed production plan of

fresh market tomato.

138. Section 457.128 is amended by

removing the paragraph preceding

Definitions.

139. In § 457.128, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘irrigated practice,’’ ‘‘production

guarantee (per acre),’’ ‘‘replanting,’’ and

‘‘written agreement.’’

140. Section 2. Unit Division is

amended to read as follows:
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43257

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

planting period, if separate planting periods

are provided for in the Special Provisions.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located in a

separate section, section equivalent, or FSA

farm serial number, unless otherwise allowed

by written agreement.

141. Section 14 is amended to read as

follows:

14. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

142. Section 457.129 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.129 Fresh market sweet corn crop

insurance provisions.

The fresh market sweet corn crop

insurance provisions for the 1999 and

succeeding crop years are as follows:

* * * * *

143. In § 457.129, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘replanting,’’ and ‘‘written agreement’’

and revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), sweet corn seed must be planted in

rows far enough apart to permit mechanical

cultivation, unless otherwise provided by the

Special Provisions, Actuarial Table, or by

written agreement.

* * * * *

144. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1 of

the Basic Provisions (§ 457.8), will be divided

into additional basic units by planting

period.

(b) Provisions in the Basic Provisions

(§ 457.8), that allow optional units by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located in a

separate section, section equivalent, or FSA

farm serial number as provided in the unit

division provisions contained in the Basic

Provisions (§ 457.8), unless otherwise

allowed by written agreement.

145. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

146. Section 457.130 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.130 Macadamia tree crop insurance

provisions.

The macadamia tree crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

147. In § 457.130, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘noncontiguous,’’ and ‘‘written agreement.’’

148. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Unless

otherwise allowed by written agreement,

optional units may be established only if

each optional unit:

(a) Contains at least 80 acres of insurable

age macadamia trees; or

(b) Is located on non-contiguous land.

149. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

150. Section 457.131 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.131 Macadamia nut crop insurance

provisions.

The macadamia nut crop insurance

provisions for the 2000 and succeeding

crop years are as follows:

* * * * *

151. In § 457.131, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous,’’ and ‘‘written

agreement.’’

152. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Unless

otherwise allowed by written agreement,

optional units may be established only if

each optional unit:

(a) Contains at least 80 acres of bearing

macadamia trees; or

(b) Is located on non-contiguous land.

153. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

154. Section 457.132 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.132 Cranberry crop insurance

provisions.

The cranberry crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

155. In § 457.132, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous land,’’ ‘‘production

guarantee (per acre),’’ and ‘‘written

agreement.’’

156. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions (§ 457.8)

that allow optional units by section, section

equivalent, or FSA farm serial number and by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located on noncontiguous land, unless otherwise allowed by

written agreement.

157. Section 11 is revised to read as

follows:

11. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

158. Section 457.135 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.135 Onion crop insurance

provisions.

The onion crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

159. In § 457.135, 1. Definitions,

remove the definitions of ‘‘crop year,’’

‘‘days,’’ ‘‘FSA,’’ ‘‘final planting date,’’

‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘late planted,’’ ‘‘late planting period,’’

‘‘practical to replant,’’ ‘‘prevented

planting,’’ ‘‘replanting,’’ ‘‘timely

planted,’’ and ‘‘written agreement.’’

160. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by section,

section equivalent, or FSA farm serial

number are not applicable. Optional units

must meet one or more of the following, as

applicable, unless otherwise provided by

written agreement:

(a) Optional units may be based on

irrigated acreage or non-irrigated acreage as

provided in the unit division provisions

contained in the Basic Provisions (§ 457.8); or

(b) In addition to, or instead of,

establishing optional units by irrigated
43258 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

acreage or non-irrigated acreage, optional

units may be established by type, if the

specific type is designated in the Special

Provisions.

161. Section 14 is revised to read as

follows:

14. Prevented Planting.

Your prevented planting coverage will be

45 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

162. Section 15 is removed.

163. Section 457.138 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.138 Grape crop insurance

provisions.

The grape crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

164. In § 457.138, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘irrigated practice,’’ ‘‘non-contiguous,’’

‘‘production guarantee (per acre)’’

‘‘USDA,’’ and ‘‘written agreement.’’

165. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) In California only, a basic unit, as

defined in section 1 (Definitions) of the Basic

Provisions (§ 457.8), will be divided into

additional basic units by each variety that

you insure.

(b) In California only, provisions in the

Basic Provisions (§ 457.8), that provide for

optional units by section, section equivalent,

or FSA farm serial number and by irrigated

and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located on noncontiguous land, unless otherwise allowed by

written agreement.

(c) In all states except California, in

addition to, or instead of, establishing

optional units by section, section equivalent,

or FSA farm serial number and by irrigated

and non-irrigated acreage as provided in the

unit division provisions contained in the

Basic Provisions (§ 457.8), a separate optional

unit may be established if each optional unit:

(1) Is located on non-contiguous land; or

(2) Consists of a separate varietal group

when separate varietal groups are specified

in the Special Provisions.

166. Section 13 is revised to read as

follows:

13. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

167. Section 457.139 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.139 Fresh market tomato (dollar

plan) crop insurance provisions.

The fresh market tomato (dollar plan)

crop insurance provisions for the 1999

and succeeding crop years are as

follows:

* * * * *

168. In § 457.139, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘replanting,’’ and ‘‘written agreement’’

and revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), tomato seed must initially be

planted in rows far enough apart to permit

mechanical cultivation, unless otherwise

provided by the Special Provisions, Actuarial

Table, or by written agreement.

* * * * *

169. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1 of

the Basic Provisions (§ 457.8), will be divided

into additional basic units by planting

period.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located in a

separate section, section equivalent, or FSA

farm serial number as provided in the unit

division provisions contained in the Basic

Provisions (§ 457.8), unless otherwise

allowed by written agreement.

170. Section 15 is revised to read as

follows:

15. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

§ 457.141 Rice crop insurance provisions.

171. Section 457.141 is amended by

removing the paragraph preceding

Definitions.

172. In Section 457.141, 1.

Definitions, remove the definitions of

‘‘days,’’ ‘‘FSA,’’ ‘‘final planting date,’’

‘‘good farming practices,’’ ‘‘irrigated

practice,’’ ‘‘late planted,’’ ‘‘late planting

period,’’ ‘‘practical to replant,’’

‘‘prevented planting,’’ ‘‘production

guarantee (per acre),’’ ‘‘replanting,’’

‘‘timely planted,’’ and ‘‘written

agreement.’’

* * * * *

173. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located in a

separate section, section equivalent, or FSA

farm serial number as provided in the unit

division provisions contained in the Basic

Provisions (§ 457.8), unless otherwise

allowed by written agreement.

174. Section 13 is revised to read as

follows:

13. Prevented Planting.

Your prevented planting coverage will be

45 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

175. Section 14 is removed.

176. Section 457.148 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.148 Fresh market pepper crop

insurance provisions.

The fresh market pepper crop

insurance provisions for the 1999 and

succeeding crop years are as follows:

* * * * *

177. In § 457.148, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘replanting,’’ and ‘‘written agreement’’

and revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), peppers must initially be planted in

rows, unless otherwise provided by the

Special Provisions, Actuarial Table, or by

written agreement.

178. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

planting period.

(b) Provisions in the Basic Provisions

(§ 457.8) that allow optional units by

irrigated and non-irrigated practices are not

applicable. Optional units may be established

only if each optional unit is located in a

separate section, section equivalent, or FSA

farm serial number as provided in the unit

division provisions contained in the Basic

Provisions (§ 457.8), unless otherwise

allowed by written agreement.

179. Section 15 is revised to read as

follows:

15. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.
Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules 43259

180. Section 457.150 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.150 Dry bean crop insurance

provisions.

The dry bean crop insurance

provisions for the 1998 and succeeding

crop years are as follows:

* * * * *

181. In § 457.150, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘late planted,’’

‘‘late planting period,’’ ‘‘prevented

planting,’’ ‘‘replanting,’’ ‘‘timely

planted,’’ and ‘‘written agreement’’ and

revise the definition of ‘‘planted

acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

definition contained in the Basic Provisions

(§ 457.8), beans must initially be planted in

rows far enough apart to permit mechanical

cultivation, unless otherwise provided by the

Special Provisions, Actuarial Table, or by

written agreement.

* * * * *

182. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

(a) In addition to section 1 (Definitions) of

the Basic Provisions (§ 457.8), (basic unit) all

acreage of contract seed beans qualifies as a

separate basic unit. For production based

seed bean processor contracts, the unit will

consist of all the acreage needed to produce

the amount of production under contract,

based on the actual production history of the

acreage. For acreage based seed bean

processor contracts, the unit will consist of

all acreage specified in the contract.

(b) In addition to, or instead of,

establishing optional units by section, section

equivalent, or FSA farm serial number and by

irrigated and non-irrigated acreage as

provided in the unit division provisions

contained in the Basic Provisions (§ 457.8), a

separate optional unit may be established for

each bean type shown in the Special

Provisions.

(c) Contract seed beans may qualify for

optional units only if the seed bean processor

contract specifies the number of acres under

contract. Contract seed beans produced

under a seed bean processor contract that

specifies only an amount of production or a

combination of acreage and production, are

not eligible for optional units.

183. Section 7(c)(3) is revised to read

as follows:

7. Insured Crop.

* * * * *

(c) * * *

(3) Both parties (you and us) enter into a

written agreement allowing insurance on the

type in accordance with section 18 of the

Basic Provisions (§ 457.8).

* * * * *

184. Section 14 is revised to read as

follows:

14. Prevented Planting.

Your prevented planting coverage will be

60 percent of your production guarantee for

timely planted acreage. If you have limited or

additional levels of coverage, as specified in

7 CFR part 400 subpart T, and pay an

additional premium, you may increase your

prevented planting coverage to the levels

specified in the Actuarial Table.

185. Section 15 is removed.

186. Section 457.151 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.151 Forage seeding crop insurance

provisions.

The forage seeding crop insurance

provisions for the 1999 and succeeding

crop years are as follows:

* * * * *

187. In § 457.151, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘final planting date,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘practical to replant,’’ and ‘‘written

agreement’’ and revise the definition of

‘‘planted acreage’’ to read as follows:

1. Definitions.

* * * * *

Planted acreage—In addition to the

provisions in section 1 of the Basic

Provisions (§ 457.8), land on which seed is

initially spread onto the soil surface by any

method and subsequently is mechanically

incorporated into the soil in a timely manner

and at the proper depth will be considered

planted, unless otherwise provided by the

Special Provisions, Actuarial Table, or

written agreement.

* * * * *

188. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

A basic unit, as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

spring planted and fall planted acreage.

189. Section 13 is revised to read as

follows:

13. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

190. Section 457.153 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.153 Peach crop insurance

provisions.

The peach crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

191. In § 457.153, 1. Definitions,

remove the definitions of ‘‘days,’’

‘‘FSA,’’ ‘‘good farming practices,’’

‘‘irrigated practice,’’ ‘‘production

guarantee (per acre),’’ and ‘‘written

agreement.’’

192. Section 2. Unit Division is

removed.

§ 457.153, Sections 3 through 12

[Redesignated as sections 2 through 11]

193. In § 457.153 Sections 3 through

12 are redesignated as follows:

Old section New section

Section 3 ................................. Section 2.

Section 4 ................................. Section 3.

Section 5 ................................. Section 4.

Section 6 ................................. Section 5.

Section 7 ................................. Section 6.

Section 8 ................................. Section 7.

Section 9 ................................. Section 8.

Section 10 ............................... Section 9.

Section 11 ............................... Section 10.

Section 12 ............................... Section 11.

194. Redesignated Section 10(b)(2) is

amended by changing the section

reference therein from 11(b)(1) to

10(b)(1).

195. Redesignated Section 10(b)(3) is

amended by changing the section

reference therein from 11(b)(2) to

10(b)(2).

196. Redesignated Section 10(b)(4) is

amended by changing the section

reference therein from 11(c) to 10(c).

197. Redesignated Section 10(b)(5) is

amended by changing the section

reference therein from 11(b)(4) to

10(b)(4).

198. Redesignated Section 10(b)(6) is

amended by changing the section

references therein from 11(b)(5) to

10(b)(5) and 11(b)(3) to 10(b)(3).

199. Redesignated Section 10(b)(7) is

amended by changing the section

reference therein from 11(b)(6) to

10(b)(6).

200. Redesignated Section

10(c)(1)(i)(B) is amended by changing

the section reference therein from

section 10 to section 9.

201. Redesignated Section

10(c)(3)(i)(B) is amended by changing

the section reference therein from

11(c)(3)(i)(A) to 10(c)(3)(i)(A).

202. Redesignated Section

10(c)(3)(ii)(B) is amended by changing

the section reference therein from

11(c)(3)(ii)(A) to 10(c)(3)(ii)(A).

203. Redesignated Section 11 is

revised to read as follows:
43260 Federal Register / Vol. 62, No. 155 / Tuesday, August 12, 1997 / Proposed Rules

11. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

* * * * *

204. Section 457.157 is amended by

revising the introductory text and

removing the paragraph preceding

Definitions to read as follows:

§ 457.157 Plum crop insurance provisions.

The plum crop insurance provisions

for the 1999 and succeeding crop years

are as follows:

* * * * *

205. In § 457.157, 1. Definitions,

remove the definitions of ‘‘days,’’ ‘‘good

farming practices,’’ ‘‘irrigated practice,’’

‘‘non-contiguous,’’ ‘‘production

guarantee (per acre)’’ and ‘‘written

agreement.’’

206. Section 2. Unit Division is

revised to read as follows:

2. Unit Division.

Provisions in the Basic Provisions

(§ 457.8), that allow optional units by section,

section equivalent, or FSA farm serial

number and by irrigated and non-irrigated

practices are not applicable. Optional units

must meet one or more of the following, as

applicable, unless otherwise provided by the

Special Provisions, Actuarial Table, or

written agreement:

(a) Optional units may be established if

each optional unit is located on noncontiguous land.

(b) In addition to, or instead of,

establishing optional units for noncontiguous land, optional units may be

established by varietal group when provided

for in the Special Provisions.

207. Section 12 is revised to read as

follows:

12. Late and Prevented Planting.

The late and prevented planting provisions

of the Basic Provisions (§ 457.8) are not

applicable.

Signed in Washington, DC, on August 7,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–21303 Filed 8–8–97; 12:46 pm]

BILLING CODE 3410–08–P