This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

14283

Vol. 62, No. 58

Wednesday, March 26, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 415 and 457

General Crop Insurance Regulations;

Forage Production Crop Insurance

Regulations, and Common Crop

Insurance Regulations; Forage

Production Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes specific

crop provisions for the insurance of

forage production. The provisions will

be used in conjunction with the

Common Crop Insurance Policy Basic

Provisions, which contain standard

terms and conditions common to most

crops. The intended effect of this action

is to provide policy changes to better

meet the needs of the insured, include

the current forage production crop

insurance regulations with the Common

Crop Insurance Policy for ease of use

and consistency of terms, add an

optional forage production winter

coverage endorsement, and to restrict

the effect of the current forage

production crop insurance regulations

to the 1997 and prior crop years.

EFFECTIVE DATE: April 25, 1997.

FOR FURTHER INFORMATION CONTACT:

Richard Brayton, Insurance

Management Specialist, Research and

Development, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131, telephone (816)

926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order No. 12866, and, therefore, this

rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments, data, and

opinions on information collection

requirements previously approved by

OMB under OMB control number 0563–

0003 through September 30, 1998. No

public comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) for

State, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on States or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant impact on a substantial

number of small entities. The effect of

this regulation on small entities will be

no greater than on larger entities. Under

the current regulations, a producer is

required to complete an application and

acreage report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity.

The insured must also annually

certify to the previous years production

if adequate records are available to

support the certification. The producer

must maintain the production records to

support the certified information for at

least three years. This regulation does

not alter those requirements.

The amount of work required of the

insurance companies delivering and

servicing these policies will not increase

significantly from the amount of work

currently required. This rule does not

have any greater or lesser impact on the

producer. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 605), and no Regulatory

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order No. 12372

This program is not subject to the

provisions of Executive Order No.

12372, which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

sections 2(a) and 2(b)(2) of Executive

Order No. 12778. The provisions of this

rule will not have a retroactive effect

prior to the effective date. The

provisions of this rule will preempt

State and local laws to the extent such

State and local laws are inconsistent

herewith. The administrative appeal

provisions published at 7 CFR part 11

must be exhausted before any action for

judicial review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

On Friday, September 13, 1996, FCIC

published a proposed rule in the

Federal Register at 61 FR 48416–48420
14284 Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 / Rules and Regulations

to add to the Common Crop Insurance

Regulations (7 CFR part 457), two new

sections: 7 CFR 457.117, Forage

Production Crop Insurance Provisions;

and 457.127, Forage Production Winter

Coverage Endorsement. The new

provisions will be effective for the 1998

and succeeding crop years. These

provisions will replace and supersede

the current provisions for insuring

forage production found at 7 CFR part

415 (Forage Production Crop Insurance

Regulations). FCIC also amends 7 CFR

part 415 to limit its effect to the 1997

and prior crop years.

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments, data, and

opinions. A total of 19 comments were

received from the crop insurance

industry and FCIC. The comments

received, and FCIC’s responses, are as

follows:

Comment: A representative of FCIC

and the crop insurance industry

questioned the definition of ‘‘Air-dry

forage’’, which references eighteen

percent moisture as the basis for

converting forage to an air-dry

equivalent. The commenters

recommended that this adjustment

should be based on thirteen percent

moisture as specified in the current loss

adjustment procedure.

Response: FCIC agrees with the

comments and has amended the

provisions accordingly.

Comment: A representative of FCIC

recommended changing the definition

of ‘‘Forage’’ to allow insurance coverage

for non-grass forage species other than

alfalfa and red clover (e.g., birdsfoot

trefoil).

Response: FCIC agrees with the

comment and has amended the

definition to allow insurance coverage

for other species listed in the Actuarial

Table.

Comment: The crop insurance

industry recommended adding the

words ‘‘and quality’’ after the words

‘‘providing the quantity’’ in the

definition of ‘‘Irrigated practice.’’

Response: FCIC agrees water quality is

an important issue. However, since no

standards or procedures have been

developed to measure water quality for

insurance purposes, quality cannot be

included in the definition. Therefore, no

change has been made.

Comment: The crop insurance

industry recommended that section 3

‘‘Insurance Guarantees, Coverage Levels,

and Prices,’’ be changed to read,

‘‘* * * select only one price

percentage * * *’’. The commenter

stated this change would shorten the

provision because language regarding

varieties having different maximum

prices would no longer be necessary.

Response: The methods used to select

price elections vary between insurance

providers. While some require selection

of a percentage, others require selection

of a specific dollar amount. The

suggested change will not work in all

circumstances. Therefore, no change has

been made.

Comment: A representative of FCIC

and the crop insurance industry stated

that section 6 ‘‘Report of Acreage’’

should not require separate acreage

reports for acreage insured under the

Forage Production Winter Coverage

Endorsement and for all other insurable

forage acreage. The commenter believes

that only one acreage report should be

required.

Response: Fall planted acreage is

eligible for coverage under the Forage

Production Winter Coverage

Endorsement the first and subsequent

crop years following year of

establishment. Insurance attaches in the

fall for forage acreage insured under the

Forage Production Winter Coverage

Endorsement and in the spring for all

other forage acreage that is not eligible

for coverage under the endorsement.

Therefore, separate fall and spring

acreage reports are necessary to timely

determine the liability and premium

when insurance attaches. Therefore, no

change has been made.

Comment: The crop insurance

industry raised concern with the

provision contained in section 7(a)(2)

that requires the forage crop be planted

for harvest as livestock feed in order for

coverage to attach. The commenters

questioned the insurability of forage

being used for a purpose other than

livestock feed. For example, a new

biomass plant utilizes a portion of the

forage to burn for electrical energy

production in addition to producing

livestock feed. Producers may contract

part of their forage to be burned and use

the remainder of production for

livestock feed. They questioned whether

the acreage contracted to be burned

would be considered insurable and how

APH and loss adjustment procedure

would be affected.

Response: Any forage planted for

harvest other than for livestock feed is

not insurable. No procedures or

provisions have been developed to

provide coverage for forage intended to

be harvested as other than livestock

feed. FCIC will consider this issue for

future use. Therefore, no change has

been made.

Comment: The crop insurance

industry questioned the provisions

contained in section 7(a)(3) ‘‘Insured

Crop’’ regarding the insurability of fall

seeded forage. The commenters stated

that, in some areas, it is common for fall

seeded forage to establish a better stand

than forage seeded prior to July 1 of the

same year. They asked if such cases

could be insured by written agreement

(following a favorable crop inspection)

the next year (currently the ‘‘year of

establishment’’ by definition) instead of

having to wait until the following year.

Response: The forage production crop

insurance program is designed to

provide coverage the year following the

year the forage stand is established. In

general, forage planted after June 30

takes longer to establish an acceptable

stand than forage planted prior to June

30. Currently there are no procedures in

place to evaluate the quality or

adequacy of the stand during the year of

establishment to determine insurability

of the stand. Therefore, no change has

been made.

Comment: The crop insurance

industry questioned section 7(b)(3)

‘‘Insured Crop’’, why the ability to

insure an overage stand of forage by

written agreement is eliminated. The

commenter stated that many overage

fields have the ability to produce in

excess of the approved APH yield and

that not all producers keep separate

records of the overage stands, which

will be a problem if the overage stands

are no longer insurable. The commenter

suggested providing an option to insure

all forage, including overage acreage,

with a premium surcharge or a reduced

yield based on a factor multiplied by the

average APH yield.

Response: Research indicates that

overage forage stand density decreases

with time. As stand density decreases

forage production decreases

significantly. The Special Provisions

will specify at what age the forage stand

is no longer eligible for insurance

coverage. FCIC agrees that the concept

of insuring overage stands with a

premium surcharge or reduced yield

should be studied to determine if

premium surcharges or factors to reduce

the APH yield can be developed.

Therefore, no change has been made.

Comment: The crop insurance

industry recommended that section

12(d) ‘‘Written Agreements,’’ should not

state that written agreements are valid

for only one year (perhaps refer to the

date specified in the agreement instead).

The commenter recommended that

written agreements should be

continuous, unless there are significant

changes in the farming operation.

Response: Written agreements are

intended to change policy terms or

permit insurance in unusual situations

where such changes will not increase

risk. If such practices continue year to
Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 / Rules and Regulations 14285

year, they should be incorporated into

the policy or Special Provisions. It is

important to keep non-uniform

exceptions to the minimum and to

ensure that the insured is well aware of

the specific terms of the policy.

Therefore, no change has been made.

Comment: A representative of FCIC

questioned the addition of the Forage

Production Winter Coverage

Endorsement, stating that in areas with

little or no winter damage risk, it

increases the complexity of the program

by requiring further explanation to

producers, separate rates, acreage

reports and dates, which has no true

benefit to producers. The commenter

stated that Risk Management Agency

should be putting considerable efforts

into developing a program that truly

meets producers needs (i.e. quality

adjustment, etc.).

Response: The current regulations

allow winter coverage as part of the

basic policy, which affects the premium

rates for all insureds even though not all

insureds use this coverage. This

endorsement will allow winter

protection for only insureds who elect

the winter coverage and only those

electing the endorsement will pay

premium for the winter coverage. FCIC

agrees that the concept of developing a

program which fits all producer needs,

such as quality adjustment, etc., should

be studied to determine if procedures

for other program improvements can be

developed. Therefore, no change has

been made.

Comment: The crop insurance

industry stated that in many states the

acreage of forage is very small, resulting

in small premiums and expensive

administration costs. Producers who

choose not to purchase the winter

endorsement will have even smaller

premiums, making the policy less

attractive to deliver. The commenter

suggested that FCIC consider offering a

forage Group Risk Plan (GRP) program

in all states and counties, which has

been suggested by the crop insurance

industry and FCIC simplification work

groups.

Response: The GRP forage program is

currently offered in a few selected states

and counties. Expanding the GRP forage

program to all states and counties is

under consideration. However, no

decision has been rendered at this time.

If such expansion occurs, the forage

production producer will have the

option to be insured under the GRP plan

or the current forage production crop

provisions. Therefore, no change has

been made.

Comment: The crop insurance

industry stated that most forage

production policyholders purchased the

insurance because of the winter

coverage. They recommended that

insureds be allowed to exclude winter

coverage in return for a reduced

premium rate.

Response: The current regulations

allow winter coverage as part of the

basic policy, which affects the premium

rates for all persons who insure forage

production. Now, only those producers

who elect the Forage Production Winter

Coverage Endorsement will have to pay

the premium for such coverage.

Therefore, no change has been made.

Comment: The crop insurance

industry expressed concern with the

extra work and expense that would be

required to have winter coverage begin

in the fall. The commenter stated that

inspections should be required in the

spring because winter inspections are

difficult if there is snow on the ground.

Response: Crop inspections for fall

planted forage must be made in the fall

if the winter coverage endorsement is

elected to ensure that such acreage is

insurable before insurance attaches.

Therefore, no change has been made.

List of Subjects in 7 CFR Parts 415 and

457

Crop insurance, Forage production

crop insurance regulations, Forage

production.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 415 and 457 effective for the

1998 and succeeding crop years, to read

as follows:

PART 415—FORAGE PRODUCTION

CROP INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 415 is revised to read as follows:

Authority: 7 U.S.C. 1506(1), 1506(p).

2. The subpart heading preceding

§ 415.1 is revised to read as follows:

Subpart—Regulations for the 1986

Through 1997 Crop Years

3. Section 415.7 is amended by

revising the introductory text of

paragraph (d) to read as follows:

§ 415.7 The application and policy.

* * * * *

(d) The application for the 1986 and

succeeding crop years is found at

subpart D of part 400, General

Administrative Regulations (7 CFR

400.37, 400.38). The provisions of the

Forage Production Insurance Policy for

the 1986 through 1997 crop years are as

follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

4. The authority citation for 7 CFR

part 457 continues to read as follows:

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

5. Sections 457.117 and 457.127 are

added to read as follows:

§ 457.117 Forage production crop

insurance regulations.

The Forage Production Crop Insurance

Provisions for the 1998 and succeeding crop

years are as follows:

FCIC policies:

Department of Agriculture

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Forage Production Crop Insurance Provisions

If a conflict exists among the Basic

Provisions (§ 457.8), these Crop Provisions,

and the Special Provisions; the Special

Provisions will control these Crop Provisions

and the Basic Provisions; and these Crop

Provisions will control the Basic Provisions.

1. Definitions.

Adequate stand—A population of live

forage plants that equals or exceeds the

minimum required number of plants per

square foot as shown in the Special

Provisions.

Air-dry forage—Forage that has dried in

windrows by natural means to less than 13

percent moisture before being put into stacks

or bales.

Crop year—The period from the date

insurance attaches until harvest is normally

completed, which is designated by the

calendar year in which the majority of the

forage is normally harvested.

Cutting—Severance of the forage plant

from the land for the purpose of livestock

feed.

Days—Calendar days.

Fall planted—A forage crop planted after

June 30.

Forage—Planted perennial alfalfa,

perennial red clover, perennial grasses, or a

mixture thereof, or other species as shown in

the Actuarial Table.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

are those recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Harvest—Removal of forage from the

windrow or field. Grazing will not be

considered harvested.

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
14286 Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 / Rules and Regulations

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Production guarantee (per acre)—The

number of tons determined by multiplying

the approved APH yield per acre times the

coverage level percentage you elect.

Spring planted—A forage crop planted

before July 1.

Ton—Two thousand (2,000) pounds

avoirdupois.

Written agreement—A written document

that alters designated terms of this policy in

accordance with section 12.

Year of establishment—The period

between seeding and when the forage crop

has developed an adequate stand. Insurance

during the year of establishment may be

available under the forage seeding policy.

Insurance under this policy does not attach

until after the year of establishment. The year

of establishment is determined by the date of

seeding. The year of establishment for spring

planted forage is designated by the calendar

year in which seeding occurred. The year of

establishment for fall planted forage is

designated by the calendar year after the year

in which the crop was planted.

2. Unit Division.

Optional units are not available for forage

production. See the definition of unit

contained in section 1 (Definitions) of the

Basic Provisions (§ 457.8).

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities.

In addition to the requirements of section

3 (Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities) of

the Basic Provisions (§ 457.8):

(a) You may only select one price election

for all the forage in the county insured under

this policy unless the Special Provisions

provide different price elections by type, in

which case you may select one price election

for each forage type designated in the Special

Provisions. The price elections you choose

for each type must have the same percentage

relationship to the maximum price offered by

us for each type. For example, if you choose

100 percent of the maximum price election

for a specific type, you must also choose 100

percent of the maximum price election for all

other types.

(b) You must report the total production

harvested from insurable acreage for all

cuttings for each unit by the production

reporting date.

(c) Separate guarantees will be determined

by forage type, as applicable.

4. Contract Changes.

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is June 30 preceding

the cancellation date.

5. Cancellation and Termination Dates.

In accordance with section 2 (Life of

Policy, Cancellation, and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are September 30.

6. Report of Acreage.

In addition to section 6 of the Basic

Provisions (§ 457.8), you must submit

separate acreage reports for acreage insured

under the Forage Production Winter

Coverage Endorsement and for all other

insurable forage acreage.

7. Insured Crop .

(a) In accordance with section 8 (Insured

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

crop insured will be all the forage in the

county for which a premium rate is provided

by the actuarial table:

(1) In which you have a share;

(2) That is planted for harvest as livestock

feed; and

(3) That is grown after the year of

establishment.

(b) In addition to the crop listed as not

insured in section 8 (Insured Crop) of the

Basic Provisions (§ 457.8), we will not insure

any forage that:

(1) Does not have an adequate stand at the

beginning of the insurance period;

(2) Is grown with a non-forage crop; or

(3) Exceeds the age limitations for forage

stands contained in the Special Provisions.

8. Insurance Period.

In lieu of the provisions of section 11

(Insurance Period) of the Basic Provisions

(§ 457.8):

(a) Insurance attaches on acreage with an

adequate stand on the later of the date we

accept your application or the applicable

calendar dates listed below:

(1) For the first and subsequent calendar

years following the year of establishment, for

acreage not insured under the Forage

Production Winter Coverage Endorsement

for:

(i) California—February 1;

(ii) Colorado, Idaho, Nebraska, Nevada,

Oregon, Utah, and Washington—April 15;

(iii) Iowa, Minnesota, Montana, New

Hampshire, New York, North Dakota,

Pennsylvania, Wisconsin, Wyoming, and all

other states—May 22;

(2) The calendar date specified in the

Forage Production Winter Coverage

Endorsement for acreage insured under such

endorsement.

(b) Insurance ends at the earliest of:

(1) Total destruction of the forage crop;

(2) Removal from the windrow or the field

for each cutting;

(3) Final adjustment of a loss;

(4) The date grazing commences on the

forage crop;

(5) Abandonment of the forage crop; or

(6) The following dates of the crop year:

(i) All states except California—October 15;

(ii) California—December 31.

(c) In order to obtain year-round coverage

for a calendar year, you must purchase the

Forage Production Winter Coverage

Endorsement (§ 457.127).

9. Causes of Loss.

(a) In accordance with the provisions of

section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur during the insurance period:

(1) Adverse weather conditions;

(2) Fire;

(3) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(4) Plant disease, but not damage due to

insufficient or improper application of

disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of the irrigation water supply,

if caused by an insured peril that occurs

during the insurance period.

(b) In addition to the causes of loss not

covered in section 12 (Causes of Loss) of the

Basic Provisions (§ 457.8), we will not insure

against damage that occurs after removal

from the windrow.

10. Duties in the Event of Damage or Loss.

In addition to your duties contained in

section 14 (Duties in the Event of Damage or

Loss) of the Basic Provisions (§ 457.8), if you

discover any insured forage is damaged, or if

you intend to claim an indemnity on any

unit, you must give notice:

(a) Of probable loss at least 15 days before

the beginning of any cutting or immediately

if probable loss is discovered after cutting has

begun; and

(b) At least 5 days before grazing of insured

forage begins. Such notice must include the

number of acres harvested and tons produced

from each unit.

11. Settlement of Claim.

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

production records for any unit, we will

allocate any commingled production to such

units in proportion to our liability on the

harvested acreage for each unit.

(b) In the event of loss or damage covered

by this policy, we will settle your claim by:

(1) Multiplying the insured acreage for

each type, by its respective production

guarantee;

(2) Multiplying each result in section

11(b)(1) by the respective price election you

selected;

(3) Totaling the results of each crop type

in section 11(b)(2);

(4) Multiplying the total production to be

counted of each type, if applicable, (see

section 11(c)) by the respective price election

you selected;

(5) Totaling the results of each crop type

in section 11(b)(4);

(6) Subtracting the result in section 11(b)(5)

from the result in section 11(b)(3); and

(7) Multiplying the result in section

11(b)(6) by your share.

(c) The total production to count (in tons)

from all insurable acreage on the unit will

include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

per acre for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

(D) For which you fail to provide

production records that are acceptable to us;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production;

(iv) Potential production on insured

acreage that you intend to put to another use

or abandon, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached and:

(A) You do not elect to continue to care for

the crop, we may give you consent to put the

acreage to another use if you agree to leave
Federal Register / Vol. 62, No. 58 / Wednesday, March 26, 1997 / Rules and Regulations 14287

intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us (The amount of

production to count for such acreage will be

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or fail to

provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) You elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested; and

(2) All harvested production from the

insurable acreage.

(d) When forage is harvested as other than

air-dry forage, the production to count will

be adjusted to the equivalent of air-dry

forage.

(e) Any harvested production from plants

growing in the forage will be counted as

forage on a weight basis.

(f) In addition to the provisions of section

15 (Production Included in Determining

Indemnities) of the Basic Provisions (§ 457.8),

we may determine the amount of production

of any unharvested forage on the basis of our

field appraisals conducted after the normal

time for each cutting for the area.

12. Written Agreements.

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

12(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for 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.

* * * * *

§ 457.127 Forage Production Winter

Coverage Endorsement.

The provisions of the Forage

Production Winter Coverage

Endorsement for the 1998 and

succeeding crop years are as follows:

Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Winter Coverage

Endorsement

In return for payment of the additional

premium designated in the actuarial table,

the Common Crop Insurance Policy Basic

Provisions (§ 457.8) and the Forage

Production Crop Insurance Provisions

(§ 457.117) are amended to incorporate the

following terms and conditions:

(a) For this Endorsement to be effective,

you must have the Common Crop Insurance

Policy Basic Provisions (§ 457.8) and the

Forage Production Crop Insurance Provisions

(§ 457.117) in force and you must comply

with all terms and conditions contained

therein.

(b) This Endorsement is not available for

forage crops insured under a Catastrophic

Risk Protection Endorsement.

(c) You must elect this Endorsement on

your application or on a form approved by

us, for coverage under this Endorsement, on

or before the sales closing date specified in

the Special Provisions for the crop year in

which you wish to insure your forage under

this Endorsement.

(d) This Endorsement is available for the

following acreage in all counties for which

the actuarial table designates forage

production premium rates:

(1) Fall planted acreage, for the first and

subsequent crop years following the year of

establishment; and

(2) Spring planted acreage, for the second

and subsequent crop years following the year

of establishment.

(e) Under this Endorsement, the insurance

period will be as follows:

(1) Insurance will attach on acreage with

an adequate stand on the later of the date we

accept your application or the applicable

calendar dates following the end of the

insurance period for the previous crop year

as listed below:

(i) For all states except California—October

16;

(ii) For California—January 1;

(2) Insurance will end on the earliest of:

(i) Total destruction of the forage crop;

(ii) Removal from the windrow or the field

for each cutting;

(iii) Final adjustment of the loss;

(iv) Abandonment of the forage crop;

(v) The date grazing commences on the

forage crop; or

(vi) The following dates of the crop year:

(A) All states except California—October

15;

(B) California—December 31.

(f) This is a continuous Endorsement and

it will remain in effect for as long as your

forage production policy remains in effect or

you cancel this coverage in accordance with

paragraph (g).

(g) This Endorsement may be canceled by

either you or us for any succeeding crop year

by giving written notice on or before the

cancellation date preceding the crop year for

which the cancellation of this Endorsement

is to be effective.

Signed in Washington, D.C., on March 19,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–7655 Filed 3–25–97; 8:45 am]

BILLING CODE 3410–FA–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 95–ANE–41; Amendment 39–

9972; AD 97–06–15]

RIN 2120–AA64

Airworthiness Directives; General

Electric Company CF34 Series

Turbofan Engines

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to General Electric Company

CF34 series turbofan engines, that

reduces the allowable operating cyclic

life limit for affected high pressure

compressor (HPC) stage 1 rotor disks.

This amendment is prompted by an

updated stress and life analysis. The

actions specified by this AD are

intended to prevent HPC stage 1 rotor

disk rupture, engine failure, and damage

to the aircraft.

DATES: Effective May 27, 1997.

FOR FURTHER INFORMATION CONTACT:

Eugene Triozzi, Aerospace Engineer,

Engine Certification Office, FAA, Engine

and Propeller Directorate, 12 New

England Executive Park, Burlington, MA

01803–5299; telephone (617) 238–7148,

fax (617) 238–7199.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to General Electric

Company (GE) CF34 series turbofan

engines was published in the Federal

Register on December 18, 1995, (60 FR

65035). That action proposed to reduce

the allowable operating cyclic life limit

for affected high pressure compressor

(HPC) stage 1 rotor disks.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposal or the FAA’s determination of

the cost to the public. The FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed.