Common Crop Insurance Regulations; Sunflower Seed Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AA77

Common Crop Insurance Regulations; Sunflower Seed Crop Insurance

Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby adopts

specific crop provisions for the insurance of sunflower seed. The

provisions will be used in conjunction with the Common Crop Insurance

Policy which contains standard terms and conditions common to most

crops. The intended effect of this rule is to move specific crop

provisions for insuring sunflower seed from the General Crop Insurance

Policy to the Common Crop Insurance Policy for ease of use by the

public and conformance among policy terms.

EFFECTIVE DATE: December 29, 1994.

FOR FURTHER INFORMATION CONTACT: Diana Moslak, Regulatory and

Procedural Development, Federal Crop Insurance Corporation, U.S.

Department of Agriculture, Washington, DC 20250, telephone (202) 254-

8314.

SUPPLEMENTARY INFORMATION: This action has been reviewed under USDA

procedures established by Executive Order 12866 and Departmental

Regulation 1512-1. This action constitutes a review as to the need,

currency, clarity, and effectiveness of these regulations under those

procedures. The sunset review date established for these regulations is

March 1, 1999.

This rule has been determined to be ``not significant'' for

purposes of Executive Order 12866, and therefore has not been reviewed

by the Office of Management and Budget (OMB).

In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.

3501 et seq.), the information collection or record-keeping

requirements included in this final rule have been approved by OMB and

assigned OMB No. 0563-0016.

It has been determined under section 6(a) of Executive Order 12612,

Federalism, that this final rule does not have sufficient federalism

implications to warrant the preparation of a federalism assessment. The

policies and procedures contained in this rule will not have

substantial direct effects on states or their political subdivisions,

or on the distribution of power and responsibilities among the various

levels of government.

This action will not have a significant impact on a substantial

number of small entities. The amount of work required of the insurance

companies delivering these policies and the procedures therein will not

increase from the amount required to deliver previous policies. This

rule does not have any greater or lesser impact on the insured.

Therefore, this action is determined to be exempt from the provisions

of the Regulatory Flexibility Act and no Regulatory Flexibility

Analysis was prepared.

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

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.

The Office of the General Counsel has determined that these

regulations meet the applicable standards provided in subsections 2(a)

and 2(b)(2) of Executive Order 12778. 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 located

at 7 CFR part 400, subpart J must be exhausted before judicial action

may be brought.

This action is not expected to have any significant impact on the

quality of the human environment, health, and safety. Therefore,

neither an Environmental Assessment or an Environmental Impact

Statement is needed.

Upon publication of the rule, the provisions for insuring sunflower

seed contained herein will supersede the provisions contained in 7 CFR

401.124. The provisions of 7 CFR 401.124 will be amended to restrict

their effect to the crop years prior to 1995.

On Friday, September 23, 1994, FCIC published a proposed rule in

the Federal Register at 59 FR 48827 proposing to revise the Common Crop

Insurance Regulations by adding new provisions for Sunflower Seed crop

insurance.

Following publication of the proposed rule, the public was afforded

30 days to submit written comments, data, and opinions. The comments

received and FCIC responses are as follows:

Comment: One comment received from an insurance association

recommended changing the language in the opening paragraph from

``Common Crop Insurance Provisions'', to ``Basic Provisions'', since

the document the insured receives is entitled ``Basic Provisions'', not

``Common Crop Insurance Policy''.

Response: FCIC agrees with the comment and has changed the proposed

language to read ``Basic Provisions''.

Comment: One comment received from an insurance company questioned

why the sales closing date was not contained in the Sunflower Seed Crop

Insurance Provisions.

Response: Consistent with the other crops which have attached to

the Basic Provisions of the Common Crop Insurance Policy, the

cancellation and termination dates are listed in the Crop Provisions.

The sales closing dates are contained in the crop's Special Provisions.

This allows the Manager of the FCIC greater latitude in extending the

sales closing date when circumstances warrant such a change.

Comment: One comment received from an insurance company questioned

why the 20 acre or 20 percent of a unit requirement was not addressed

in section 10 of the Sunflower Seed Crop Provisions, ``Replanting

Payments''.

Response: These requirements are contained in section 13 of the

Basic Provisions of the Common Crop Insurance Policy, to which the

Sunflower Seed Crop Provisions attach, and therefore, do not need to be

repeated in the Sunflower Seed Crop Provisions.

Comment: One comment received from an insurance association

expressed concern that leaving representative strips solely because the

insured disagrees with the appraisal may subject the program to

possible abuse. In many situations, samples are more susceptible to

loss and do not accurately represent what the entire unit would have

produced.

Response: FCIC disagrees with the comment and believes that the

language in subparagraph 12.(c)(1)(iv)(A) allows the insurer to

determine those situations in which it is reasonable to leave

representative samples to determine the amount of production to be

counted. In cases where it is necessary to defer determinations, the

insured must be advised how production to count will ultimately be

determined, and the consequences of failure to leave or care for the

samples.

Comment: One comment received from an insurance association

questioned whether or not the Special Provisions provide separate

prices for oil and non-oil types of sunflowers, and if so, is the

insured required to select the same percentage of each price?

Response: The Special Provisions indicate that both oil and non-oil

types are insurable but do not contain separate prices by type. This

matter is under consideration and the crop provisions have been

modified.

Comment: One comment received from an insurance company questioned

why test weight pounds are listed in subparagraph 12.(d)(2)(i)(B) for

quality adjustment of non-oil type sunflower seed, but pounds are not

listed for quality adjustment of oil-type sunflower seed in

subparagraph 12.(d)(2)(i)(A).

Response: The Official United States Standards for Grain lists the

minimum test weight for U.S. No. 2 ``sunflower seed'' but does not

differentiate between oil or non-oil types. The FCIC has further

defined minimum test weight for oil and non-oil types. The policy

language refers to the Official United States Grain Standard

requirements for U.S. No. 2 oil type sunflowers, and specifically lists

the minimum pounds per bushel for non-oil types as 22 pounds. Listing

the specific test weight pounds for non-oil sunflowers clearly

identifies the differences in quality adjustment requirements.

Comment: One comment received from an insurance association

suggested that the language in paragraph 12.(d)(3)(iii) regarding the

determination of test weight for quality adjustment be modified. The

sentence presently reads, ``Test weight for quality adjustment purposes

may be determined by our loss adjustor.'' The sentence could give the

indication that only the loss adjuster can determine test weight.

Response: FCIC agrees with the comment and has changed the sentence

to read: ``Test weight for quality adjustment purposes may also be

determined by our loss adjuster.''

In addition to the changes indicated in the responses to comments,

FCIC has made the following changes:

1. Subsection 12.(b) has been modified to allow for settlement of a

claim based on a separate price by type. FCIC has received requests

from interested parties recommending a separate price for

``confectionery type'' sunflowers. The proposed policy language allows

a separate price election by type if the Special Provisions contain

that option.

2. Paragraph 12.(d)(4) has been revised to allow the use of

predetermined quality adjustment discount factors. The use of the

factors will:

(a) Minimize vulnerability to bid-price and local market price

manipulation (and reliance on a third party who is not disinterested)

in establishing quality adjustment factors;

(b) Increase the uniformity of loss adjustment of grain eligible

for quality adjustment; and

(c) Simplify establishing the amount of production in the event

grain is eligible for quality adjustment.

3. Subparagraph 13. (d)(2)(ii) has been revised to extend the

insurance period for prevented planting coverage as required by the

Federal Crop Insurance Reform Act of 1994. The new provisions extend,

for carry-over insureds, the prevented planting coverage to insured

causes occurring in the period from the sales closing date for the crop

year immediately preceding the insured crop year.

The Federal Crop Insurance Act as amended by the Federal Crop

Insurance Reform Act of 1994, is required to be in effect for the 1995

crop year. The contract change date in the policy requires that changes

be filed prior to December 31, 1994, to be effective for the 1995 crop

year. Therefore, good cause is shown to make the rule effective in less

than 30 days.

Accordingly, the rule, ``Common Crop Insurance Regulations;

Sunflower Seed Crop Insurance Provisions'' published at 59 FR 48827 as

revised and set out below is hereby adopted as a final rule.

List of Subjects in 7 CFR Part 457

Crop insurance, Sunflower seed.

Final Rule

For the reasons set out in the preamble, the Federal Crop Insurance

Corporation hereby amends the Common Crop Insurance Regulations, (7 CFR

Part 457), effective for the 1995 and succeeding crop years, as

follows:

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE

1995 AND SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR Part 457 is revised to read as

follows:

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

2. 7 CFR Part 457 is amended by adding a new Sec. 457.108,

Sunflower Seed Crop Insurance Provisions, to read as follows:

Sec. 457.108 Sunflower Seed Crop Insurance Provisions.

The Sunflower Seed Crop Insurance Provisions for the 1995 and

succeeding crop years are as follows:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Sunflower Seed Crop Provisions

If a conflict exists among the Basic Provisions (Sec. 457.8),

these crop provisions, and the Special Provisions, the Special

Provisions will control these crop provisions and the Basic

Provisions; and these crop provisions will control the Basic

Provisions.

1. Definitions

(a) Days--Calendar days.

(b) 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.

(c) 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

Extension Service as compatible with agronomic and weather

conditions in the area.

(d) Harvest--Combining or threshing the sunflowers for seed.

(e) 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.

(f) Irrigated practice--A method of producing a crop by which

water is artificially applied during the growing season by

appropriate systems and at the proper times, with the intention of

providing the quantity of water needed to produce at least the yield

used to establish the irrigated production guarantee on the

irrigated acreage planted to the insured crop.

(g) Late planted--Acreage planted to the insured crop during the

late planting period.

(h) Late planting period--The period that begins the day after

the final planting date for the insured crop and ends twenty-five

(25) days after the final planting date.

(i) Local market price--The cash seed price per pound for oil

type sunflower seed grading U.S. No. 2, or non-oil type sunflower

seed with a test weight of at least 22 pounds per bushel and less

than five percent (5%) kernel damage, offered by buyers in the area

in which you normally market the sunflower seed. The local market

price for oil type sunflower seed will reflect the maximum limits of

quality deficiencies allowable for the U.S. No. 2 grade of sunflower

seed. Factors not associated with grading of sunflower seed under

the Official United States Standards for Grain including, but not

limited to, oil or moisture content will not be considered.

(j) Planted acreage--Land in which seed has been placed by a

machine appropriate for the insured crop and planting method, at the

correct depth, into a seedbed which has been properly prepared for

the planting method and production practice. Sunflower seed must

initially be planted in rows far enough apart to permit cultivation

to be considered planted. Acreage planted in any other manner will

not be insurable unless otherwise provided by the Special Provisions

or by written agreement.

(k) Practical to replant--In lieu of subsection 1.(ff) of the

Basic Provisions (Sec. 457.8), practical to replant is defined as

our determination, after loss or damage to the insured crop, based

on factors, including but not limited to moisture availability,

condition of the field, and time to crop maturity, that replanting

to 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 unless replanting is generally occurring in the

area.

(l) Prevented planting--Inability to plant the insured crop with

proper equipment by:

(1) The final planting date designated in the Special Provisions

for the insured crop in the county; or

(2) The end of the late planting period.

You must have been unable to plant the insured crop due to an

insured cause of loss that has prevented most producers in the

surrounding area from planting due to similar insurable causes. The

insured cause of prevented planting must occur on or after the

beginning of the prevented planting insurance period specified in

paragraph 13.(d)(2).

(m) Production guarantee--The number of pounds determined by

multiplying the approved yield per acre by the coverage level

percentage you elect.

(n) Replanting--Performing the cultural practices necessary to

replace the sunflower seed and then replacing the sunflower seed in

the insured acreage with the expectation of growing a successful

crop.

(o) Timely planted--Planted on or before the final planting date

designated in the Special Provisions for the insured crop in the

county.

(p) Written agreement--Designated terms of this policy may be

altered by written agreement. Each agreement must be applied for by

the insured in writing no later than the sales closing date and is

valid for one year only. If not specifically renewed the following

year, continuous insurance will be in accordance with the printed

policy. All variable terms including, but not limited to, crop

variety, guarantee, premium rate, and price election must be

contained in the written agreement. Notwithstanding the sales

closing date restriction contained herein, in specific instances a

written agreement may be applied for after the sales closing date,

and approved if, after physical inspection of the acreage, there is

a determination that the crop has the expectancy of making at least

the guaranteed yield. However, no prevented planting liability will

be established as a result of any request submitted after the sales

closing date. All applications for written agreements as submitted

by the insured must contain all variable terms of the contract

between the company and the insured that will be in effect if the

written agreement is disapproved.

2. Unit Division

Unless limited by the Special Provisions, a unit as defined in

subsection 1.(tt) of the Basic Provisions (Sec. 457.8), may be

divided into optional units if, for each optional unit you meet all

the conditions of this section or if a written agreement to such

division exists. Basic units may not be divided into optional units

on any basis including, but not limited to, production practice,

type, variety, and planting period other than as described under

this section. If you do not comply fully with these provisions, we

will combine all optional units which are not in compliance with

these provisions into the basic unit from which they were formed. We

may combine the optional units at any time we discover that you have

failed to comply with these provisions. If failure to comply with

these provisions is determined to be inadvertent, and the optional

units are combined, that portion of the premium paid for the purpose

of electing optional units will be refunded to you pro rata for the

units combined. All optional units must be reflected on the acreage

report for each crop year.

(a) You must have records, which can be independently verified,

of planted acreage and production for each optional unit for at

least the last crop year used to determine your production

guarantee.

(b) 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.

(c) You must have records of measurement of stored or marketed

production from each optional unit maintained in such a manner that

permits us to verify the production from each optional unit or the

production from each unit must be kept separate until after loss

adjustment under the policy is completed.

(d) Each optional unit must meet one or more of the following

criteria as applicable:

(1) Optional Units by Section, Section Equivalent, or

Consolidated Farm Service Agency (CFSA) Farm Serial Number: Optional

units may be established if each optional unit is located in a

separate, legally identified Section. In the absence of Sections, we

may consider parcels of land legally identified by other methods of

measure including, but not limited to: Spanish grants, railroad

surveys, leagues, labors, or Virginia Military Lands as the

equivalent of Sections for unit purposes. In areas which have not

been surveyed using the systems identified above, or another system

approved by us, or in areas where such systems exist but boundaries

are not readily discernable, each optional unit must be located in a

separate farm identified by a single CFSA Farm Serial Number.

(2) Optional Units on Acreage Including Both Irrigated and Non-

Irrigated Practices: In addition to or instead of establishing

optional units by Section, section equivalent or CFSA Farm Serial

Number, optional units may be based on irrigated acreage or non-

irrigated acreage if both are located in the same Section, section

equivalent or CFSA Farm Serial Number. The irrigated acreage may not

extend beyond the point at which your irrigation system can deliver

the quantity of water needed to produce the yield on which your

guarantee is based and you may not continue into non-irrigated

acreage in the same rows or planting pattern. You must plant,

cultivate, fertilize, or otherwise care for the irrigated acreage in

accordance with recognized good irrigated farming practices.

3. Insurance Guarantees, Coverage Levels, and Prices for Determining

Indemnities

In addition to the requirements of section 3 (Insurance

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

of the Basic Provisions (Sec. 457.8), you may select only one price

election for all the sunflower seed in the county insured under this

policy. Notwithstanding the preceding sentence, if the Special

Provisions provide different price elections by type, you may select

one price election for each sunflower seed type designated in the

Special Provisions.

4. Contract Changes

The contract change date is November 30 preceding the

cancellation date (see the provisions of section 4 (Contract

Changes) of the Basic Provisions (Sec. 457.8)).

5. Cancellation and Termination Dates

In accordance with subsection 2.(f) of the Basic Provisions

(Sec. 457.8), the cancellation and termination dates are March 15.

6. Insured Crop

In accordance with section 8 (Insured Crop) of the Basic

Provisions (Sec. 457.8), the crop insured will be all the oil and

non-oil type sunflower seed in the county for which a premium rate

is provided by the actuarial table:

(a) In which you have a share;

(b) That is planted for harvest as sunflower seed; and

(c) That is not (unless a written agreement allows otherwise):

(1) Interplanted with another crop; or

(2) Planted into an established grass or legume.

7. Insurable Acreage

In addition to the provisions of section 9 (Insurable Acreage)

of the Basic Provisions (Sec. 457.8):

(a) We will not insure any acreage which does not meet the

rotation requirements shown in the Special Provisions; and

(b) Any acreage of the insured crop damaged before the final

planting date, to the extent that the remaining stand will not

produce at least ninety percent (90%) of the production guarantee,

must be replanted unless we agree that replanting is not practical

(see subsection 1.(k)).

8. Insurance Period

In accordance with the provisions of section 11 (Insurance

Period) of the Basic Provisions (Sec. 457.8), the calendar date for

the end of the insurance period is November 30, immediately

following planting.

9. Causes of Loss

In accordance with the provisions of section 12 (Causes of Loss)

of the Basic Provisions (Sec. 457.8), insurance is provided only

against the following causes of loss which occur within the

insurance period:

(a) Adverse weather conditions;

(b) Fire;

(c) Insects, but not damage due to insufficient or improper

application of pest control measures;

(d) Plant disease, but not damage due to insufficient or

improper application of disease control measures;

(e) Wildlife;

(f) Earthquake;

(g) Volcanic eruption; or

(h) If applicable, failure of the irrigation water supply due to

an unavoidable cause of loss occurring after the beginning of

planting.

10. Replanting Payments

(a) In accordance with section 13 (Replanting Payment) of the

Basic Provisions (Sec. 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 (see subsection 1.(k)).

(b) The maximum amount of the replanting payment per acre will

be the lesser of twenty percent (20%) of the production guarantee or

175 (pounds of seed), multiplied by your price election, multiplied

by your insured share or the share determined in accordance with

subsection 10.(c), if applicable.

(c) When more than one person insures the same crop on a share

basis, a replanting payment based on the total shares insured by us

may be made to the insured person who incurs the total cost of

replanting. Payment will be made in this manner only if an agreement

exists between the insured persons which:

(1) Requires one person to incur the entire cost of replanting;

or

(2) Gives the right to all replanting payments to one person.

(d) When sunflower seed is replanted using a practice that is

uninsurable as an original planting, the liability for the unit will

be reduced by the amount of the replanting payment which is

attributable to your share. The premium amount will not be reduced.

11. Duties in the Event of Damage or Loss

In accordance with the requirements of section 14 (Duties in the

Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), the

representative samples of the unharvested crop must be at least 10

feet wide and extend the entire length of each field in the unit.

The samples must not be harvested or destroyed until the earlier of

our inspection or 15 days after harvest of the balance of the unit

is completed.

12. Settlement of Claim

(a) We will determine your loss on a unit basis. In the event

you are unable to provide records of production:

(1) For any optional unit, we will combine all optional units

for which acceptable records of production were not provided; or

(2) For any basic 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 on any unit by:

(1) Multiplying the insured acreage of each type of sunflower

seed by the production guarantee for the applicable type;

(2) Multiplying each result by the price election for the

applicable type;

(3) Adding these values;

(4) Multiplying the production to count of each type of

sunflower seed by the price election for that type;

(5) Adding these dollar values;

(6) Subtracting the result of step (5) from the result of step

(3); and

(7) Multiplying the result by your share.

(c) The total production (pounds) to count from all insurable

acreage on the unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee 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 records of production that are

acceptable to us;

(ii) Production lost due to uninsured causes;

(iii) Unharvested production (mature unharvested production may

be adjusted for quality deficiencies and excess moisture in

accordance with subsection 12.(d)); and

(iv) Potential production on insured acreage you want to put to

another use or you wish to abandon and no longer care for, if you

and we agree on the appraised amount of production. Upon such

agreement, the insurance period for that acreage will end if you put

the acreage to another use or abandon the crop. If agreement on the

appraised amount of production is not reached:

(A) If 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 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

you 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) If 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) Mature sunflower seed production may be adjusted for excess

moisture and quality deficiencies. If moisture adjustment is

applicable, it will be made prior to any adjustment for quality.

(1) Production will be reduced by 0.12 percent for each 0.1

percentage point of moisture in excess of ten percent (10%). We may

obtain samples of the production to determine the moisture content.

(2) Production will be eligible for quality adjustment if:

(i) Deficiencies in quality result in:

(A) Oil type sunflower seed not meeting the grade requirements

for U.S. No. 2 (grades U.S. sample grade) because of test weight,

kernel damage (excluding heat damage), or a musty, sour or

commercially objectionable foreign odor; or

(B) Non-oil type sunflower seed having a test weight below 22

pounds per bushel or kernel damage (excluding heat damage) in excess

of five percent (5%) or a musty, sour or commercially objectionable

foreign odor; or

(ii) Substances or conditions are present that are identified by

the Food and Drug Administration or other public health

organizations of the United States as being injurious to human or

animal health.

(3) Quality will be a factor in determining your loss only if:

(i) The deficiencies, substances, or conditions, resulted from a

cause of loss against which insurance is provided under these crop

provisions and within the insurance period ;

(ii) All determinations of these deficiencies, substances, or

conditions are made using samples of the production obtained by us

or by a disinterested third party approved by us; and

(iii) The samples are analyzed by a grader licensed to grade

sunflower seed under the authority of the United States Grain

Standards Act or the United States Warehouse Act with regard to

deficiencies in quality, or by a laboratory approved by us with

regard to substances or conditions injurious to human or animal

health. (Test weight for quality adjustment purposes may also be

determined by our loss adjuster.)

(4) Sunflower seed production that is eligible for quality

adjustment, as specified in paragraphs 12.(d)(2) and (3), will be

reduced:

(i) In accordance with quality adjustment factor provisions

contained in the Special Provisions; or

(ii) As follows, if quality adjustment factor provisions are not

contained in the Special Provisions:

(A) The market price of the qualifying damaged production and

the local market price will be determined on the earlier of the date

such quality adjusted production is sold or the date of final

inspection for the unit. The price for the qualifying damaged

production will be the market price for the local area to the extent

feasible. Discounts used to establish the net price of the damaged

production will be limited to those which are usual, customary, and

reasonable. The price will not be reduced for:

(1) Moisture content;

(2) Damage due to uninsured causes; or

(3) Drying, handling, processing, or any other costs associated

with normal harvesting, handling, and marketing of the sunflower

seed; except, if the price of the damaged production can be

increased by conditioning, we may reduce the price of the production

after it has been conditioned by the cost of conditioning but not

lower than the value of the production before conditioning. (We may

obtain prices from any buyer of our choice. If we obtain prices from

one or more buyers located outside your local market area, we will

reduce such prices by the additional costs required to deliver the

sunflower seed to those buyers.);

(B) The value of the damaged or conditioned production will be

divided by the local market price to determine the quality

adjustment factor; and

(C) The number of pounds remaining after any reduction due to

excessive moisture (the moisture-adjusted gross pounds (if

appropriate)) of the damaged or conditioned production will then be

multiplied by the quality adjustment factor to determine the net

production to count.

(e) Any production harvested from plants growing in the insured

crop may be counted as production of the insured crop on a weight

basis.

13. Late Planting and Prevented Planting

(a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the

Basic Provisions (Sec. 457.8), insurance will be provided for

acreage planted to the insured crop during the late planting period

(see subsection 13.(c)), and acreage you were prevented from

planting (see subsection 13.(d)). These coverages provide reduced

production guarantees. The reduced guarantees will be combined with

the production guarantee for timely planted acreage for each unit.

The premium amount for late planted acreage and eligible prevented

planting acreage 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 late planted acreage or prevented

planting acreage 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), (For example, assume you

insure one unit in which you have a 100 percent (100%) share. The

unit consists of 150 acres, of which 50 acres were planted timely,

50 acres were planted seven (7) days after the final planting date

(late planted), and 50 acres are unplanted and eligible for

prevented planting coverage. To calculate the amount of any

indemnity which may be due to you, the production guarantee for the

unit will be computed as follows:

(1) For timely planted acreage, multiply the per acre production

guarantee for timely planted acreage by the 50 acres planted timely;

(2) For late planted acreage, multiply the per acre production

guarantee for timely planted acreage by ninety-three percent (0.93)

and multiply the result by the 50 acres planted late; and

(3) For prevented planting acreage, multiply the per acre

production guarantee for timely planted acreage by fifty percent

(0.5) and multiply the result by the 50 acres eligible for prevented

planting coverage.

The total of the three calculations will be the production

guarantee for the unit. Your premium will be based on the result of

multiplying the per acre production guarantee for timely planted

acreage by the 150 acres in the unit).

(b) You must provide written notice to us if you were prevented

from planting (see subsection 1.(l)). This notice must be given not

later than three (3) days after:

(1) The final planting date for acreage you were prevented from

planting by the final planting date if you have unplanted acreage

that may be eligible for prevented planting coverage; and

(2) The date you discover that planting will not be possible

within the late planting period for any acreage that may be eligible

for prevented planting coverage, if you were not prevented from

planting such acreage by the final planting date but were prevented

from planting such acreage during the late planting period.

(c) Late Planting

(1) For sunflower acreage planted after the final planting date

but on or before 25 days after the final planting date, the

production guarantee for each acre will be reduced for each day

planted after the final planting date by:

(i) One percent (.01) for the first through the tenth day; and

(ii) Two percent (.02) for the eleventh through the twenty-fifth

day.

(2) In addition to the requirements of section 6 (Report of

Acreage) of the Basic Provisions (Sec. 457.8), you must report the

dates the acreage is planted within the late planting period.

(3) If planting of sunflower seed 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:

(i) The acreage reporting date contained in the Special

Provisions for the insured crop; or

(ii) Five (5) days after the end of the late planting period.

(d) Prevented Planting (Including Planting After the Late

Planting Period)

(1) If you were prevented from planting sunflowers (see

subsection 1.(l)), you may elect:

(i) To plant sunflower seed during the late planting period,

(The production guarantee for such acreage will be determined in

accordance with paragraph 13.(c)(1));

(ii) Not to plant this acreage to any crop that is intended for

harvest in the same crop year, (The production guarantee for such

acreage will be fifty percent (50%) of the production guarantee for

timely planted acres, (For example, if your production guarantee for

timely planted acreage is 900 pounds per acre, your prevented

planting production guarantee would be equivalent to 450 pounds per

acre (900 pounds multiplied by 0.5)). This subparagraph does not

prohibit the preparation and care of the acreage for conservation

practices, such as planting a cover crop, as long as such crop is

not intended for harvest; or

(iii) To plant sunflower seed after the late planting period,

(The production guarantee for such acreage will be fifty percent

(50%) of the production guarantee for timely planted acres, (For

example, if your production guarantee for timely planted acreage is

900 pounds per acre, your prevented planting production guarantee

would be equivalent to 450 pounds per acre (900 pounds multiplied by

0.5)). Production to count for such acreage will be determined in

accordance with subsections 12.(c) through (e).

(2) In addition to the provisions of section 11 (Insurance

Period) of the Basic Provisions (Sec. 457.8), the insurance period

for prevented planting coverage begins:

(i) For the crop year your application is accepted, on the sales

closing date contained in the Special Provisions for the insured

crop in the county; or

(ii) For any continuous crop year following the crop year your

application is accepted, or for any crop year this insurance policy

is transferred to a different insurance provider, on the sales

closing date for the crop year immediately preceding the current

crop year, provided continuous coverage has been in effect since

that date.

(3) The acreage to which prevented planting coverage applies

will be limited as follows:

(i) If you participate in any program administered by the United

States Department of Agriculture for the crop year which limits the

number of acres that may be planted, prevented planting acreage will

not exceed the CFSA base acreage for the insured crop, reduced by

any acreage reduction applicable to the farm under such program.

(ii) If you do not participate in any program administered by

the United States Department of Agriculture which limits the number

of acres that may be planted, unless a written agreement exists to

the contrary, eligible acreage will not exceed the greater of:

(A) The CFSA base acreage for the insured crop, if applicable;

(B) The number of acres planted to sunflower seed on each CFSA

Farm Serial Number during the previous crop year (adjusted for any

reconstitution which may have occurred prior to the sales closing

date); or

(C) One hundred percent (100%) of the simple average of the

number of acres planted to sunflower seed during the crop years that

were used to determine your yield.

(iii) Acreage intended to be planted under an irrigated practice

will be limited to the number of acres properly prepared to carry

out an irrigated practice.

(iv) A prevented planting production guarantee will not be

provided for:

(A) Any acreage that does not constitute at least 20 acres or 20

percent (20%) of the acres in the unit, whichever is less;

(B) Land for which the actuarial table does not designate a

premium rate unless a written agreement exists designating such

premium rate;

(C) Land used for conservation purposes or intended to be or

considered to have been left unplanted under any program

administered by the United States Department of Agriculture;

(D) Land on which any crop, other than sunflower seed has been

planted and is intended for harvest, or has been harvested in the

same crop year; or

(E) Land which planting history or conservation plans indicate

would remain fallow for crop rotation purposes;

(v) For the purpose of determining eligible acreage for

prevented planting coverage, acreage for all units will be combined

and be reduced by the number of sunflower acres timely planted and

late planted, (For example, assume you have 100 acres eligible for

prevented planting coverage in which you have a 100 percent (100%)

share. The acreage is located in a single CFSA Farm Serial Number

which you insure as two separate optional units consisting of 50

acres each. If you planted 60 acres of sunflower seed on one

optional unit and 40 acres of sunflower seed on the second optional

unit, your prevented planting eligible acreage would be reduced to

zero, (100 acres eligible for prevented planting coverage less 100

acres planted equals zero)). If you report more sunflower acreage

under this contract than is eligible for prevented planting

coverage, we will allocate the eligible acreage to insured units

based on the number of prevented planting acres and share you

reported for each unit.

(4) When the CFSA Farm Serial Number covers more than one unit,

or a unit consists of more than one CFSA Farm Serial Number, the

covered acres will be pro-rated based on the number of acres in each

unit or CFSA Farm Serial Number that could have been planted to

sunflowers in the crop year.

(5) In accordance with the provisions of section 6 (Report of

Acreage) of the Basic Provisions (Sec. 457.8), you must report any

insurable acreage you were prevented from planting. This report must

be submitted on or before the acreage reporting date, even though

you may elect to plant the acreage after the late planting period.

Any acreage you report as eligible for prevented planting coverage

which is not eligible will be deleted from prevented planting

coverage.

Done in Washington D.C., on December 22, 1994.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 94-32021 Filed 12-28-94; 8:45 am]

BILLING CODE 3410-08-P