General Crop Insurance Regulations, Various Endorsements; Hybrid Seed Crop Insurance Regulations; and Common Crop Insurance Regulations, Various Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401, 443, and 457

RIN 0563-AB43

General Crop Insurance Regulations, Various Endorsements; Hybrid

Seed Crop Insurance Regulations; and Common Crop Insurance Regulations,

Various Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby

amends the General Crop Insurance Regulations, Hybrid Sorghum Seed and

Rice Endorsements; the Hybrid Seed Crop Insurance Regulations; and the

Common Crop Insurance Regulations, Small Grains, Cotton, Extra Long

Staple Cotton, Sunflower Seed and Coarse Grains Crop Insurance

Provisions, applicable beginning with the 1996 crop year for spring

planted crops with contract change dates on or after the effective date

of this rule, by revising prevented planting coverage. The intended

effect of this regulation is to expand prevented planting benefits

available under the various policies being amended.

DATES: The effective date of this rule is November 30, 1995. The

comment period for information collections under the Paperwork

Reduction Act of 1995 continues through January 8, 1996.

ADDRESSES: For information collection comments submission, see

SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT: For further information and a copy of

the

[[Page 62711]]

Cost-Benefit Analysis and Regulatory Flexibility Analysis to the

General Crop Insurance Regulations; Hybrid Seed Crop Insurance

Regulations; and Common Crop Insurance Regulations for implementation

of the prevented planting provisions, contact Diana Moslak, Regulatory

and Procedural Development Staff, Federal Crop Insurance Corporation,

U.S. Department of Agriculture, Washington, D.C. 20250. Telephone (202)

254-8314.

SUPPLEMENTARY INFORMATION: This action has been reviewed under United

States Department of Agriculture (``USDA'') procedures established by

Executive Order 12866 and Departmental Regulation 1512-1. This action

does not constitute a review as to the need, currency, clarity, and

effectiveness of these regulations under those procedures. The sunset

review date established for Small Grains is July 1, 1998; Coarse

Grains, Cotton, Extra Long Staple Cotton and Sunflower Seed is March 1,

1999; Hybrid Seed is October 1, 1997; Hybrid Sorghum Seed is May 1,

2000; and Rice is August 29, 1998.

This rule has been determined to be ``economically significant''

for the purposes of Executive Order 12866 and, therefore, has been

reviewed by the Office of Management and Budget (``OMB'').

A Cost-Benefit Analysis is completed and is available to interested

persons at the address listed above. In summary, the analysis finds

that the expected Treasury costs of these changes are expected to range

between $2.1 and $20.8 million. Added costs are due to higher

reimbursements to reinsured companies and for premium subsidies for

producers. The estimates assume the majority of producers will decline

the coverage for the substitute crop, opting instead for a reduced

premium on the intended crop. Nationwide, premium rates will increase 6

to 7 percent for the added coverage. As examples of monetary impacts,

this means an average increase in the producer paid premium of 20-25

cents per acre for wheat in the Northern Plains; 30 cents for corn in

Iowa; and 60-90 cents per acre for upland cotton. However, the premium

rate increases will not be uniform. Instead, the highest risk areas

(such as lowlands along rivers and similar conditions) can expect

greater increases in premium to cover the added risk. Producers who

farm such lands are expected to be the primary group that will retain

this added coverage and elect to pay the additional premium. The

changes to the prevented planting rules will provide producers with

added assistance in extreme weather conditions in a manner that

maintains the actuarial integrity of the Federal crop insurance

program.

Paperwork Reduction Act of 1995

The information collection requirements contained in these

regulations were submitted to OMB for their approval under section

3507(j) of the Paperwork Reduction Act of 1995, and received emergency

approval through February 28, 1996. The agency is also seeking a valid

approval for 3 years under section 3507(d). Public comments are due by

January 8, 1996.

The title of this information collection is ``Catastrophic Risk

Protection Plan and Related Requirements including General Crop

Insurance Regulations, Hybrid Seed Crop Insurance Regulations and

Common Crop Insurance Regulations.'' The information to be collected

includes: a crop insurance acreage report, an insurance application and

continuous contract. Information collected from the acreage report and

application is electronically submitted to FCIC by the reinsured

companies. Some respondents may provide additional information for the

purpose of selecting insurance options that apply to specific crops or

specific areas in which a crop is produced. Potential respondents to

this information collection are growers of crops that are eligible for

Federal Crop Insurance.

The information requested is necessary for the insurance company

and FCIC to provide insurance, provide reinsurance, determine

eligibility, determine the correct parties to the agreement, determine

and collect premiums or other monetary amounts (or fees), and pay

benefits.

All information is reported annually. The reporting burden for this

collection of information is estimated to average 16.9 minutes per

response for each of the 3.6 responses from approximately 1,750,015

respondents. The total annual burden on the public for this information

collection is 2,668,750 hours. The total annual burden has increased

from the 1995 requirements to reflect the paperwork burden on the

reinsured companies.

Comments were invited on the information collection requirements

during the proposed rule stage. The comment period for information

collections under the Paperwork Reduction Act of 1995 continues through

January 8, 1996, 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 technology.

Comments should be submitted to the Desk Officer for Agriculture,

Office of Information and Regulatory Affairs, Office of Management and

Budget (OMB), Washington, D.C. 20503 and to Bonnie Hart, Information

Management Branch, Consolidated Farm Service Agency, U.S. Department of

Agriculture, Washington, D.C. 20250. Copies of the information

collection may be obtained from Bonnie Hart at the above address.

Telephone (202) 690-2857.

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

Federalism, that this rule does not have sufficient federalism

implication 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.

The amount of work required of the insurance companies and FSA

offices delivering the policies and the procedures therein may increase

significantly from the amount of work currently required to deliver

previous policies to which this regulation applies. Therefore, this

action has been reviewed under the provisions of the Regulatory

Flexibility Act (5 U.S.C. 605) and a Regulatory Flexibility Analysis is

available to interested persons at the address listed above.

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

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

requirements of the National Appeals Division under

[[Page 62712]]

Public Law 103-354 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 nor an Environmental Impact

Statement is needed.

Background

Current regulations do not allow an insured producer to obtain a

prevented planting guarantee for one crop and plant a substitute crop

intended for harvest in the same crop year on the same land. By this

rule a producer who purchases limited or additional coverage beginning

with the 1996 crop year for spring crops with contract change dates on

or after the effective date of this rule, will be eligible to: (1)

Receive a prevented planting guarantee equal to 25 percent of the

guarantee for timely planted acreage (20 percent for hybrid seed (corn)

and 17.5 percent for cotton, ELS cotton, and rice) when acreage that is

prevented from being planted is planted to a substitute crop after the

10th day after the final planting date for the intended crop (10th day

after the latest final planting date for each specific crop insured

under the Small Grains Crop Provisions) and, as applicable, a 0/92 or

50/92 program benefit; (2) exclude eligibility for prevented planting

coverage when a substitute crop is planted in return for a reduction in

the premium; and (3) receive prevented planting coverage on double

cropped acreage (except for ELS cotton) if the producer can provide

proof that planting of a second crop (double crop) following the

harvest of an initial crop in the same crop year is a farming practice

normally followed by that producer.

By this rule, the prevented planting provisions will also: (1)

Allow all insured producers to receive a 0/92 or 50/92 program benefit,

as applicable, and a crop insurance prevented planting guarantee equal

to 50 percent of the guarantee for timely planted acreage (40 percent

for hybrid seed (corn) and 35 percent for cotton, ELS cotton, and rice)

when acreage that is prevented from being planted is not planted to a

substitute crop; (2) eliminate the provisions that require acreage

eligible for a prevented planting guarantee to be prorated to all units

that could have been planted in the crop year; (3) change the date that

notice of loss is required from 3 days after the final planting date,

or the date the producer discovers that planting will not be possible

within the late planting period, to the acreage reporting date; and (4)

allow prevented planted acreage planted with a conserving use cover

crop to be hayed and grazed without affecting prevented planting

benefits.

On Wednesday, November 8, 1995, FCIC published a proposed rule in

the Federal Register at 60 FR 56257 to revise prevented planting

coverage under various policies. Following publication of that proposed

rule, the public was afforded 15 days to submit written comments, data,

and opinions. A total of 14 comments were received: 3 from Regional

Service Offices; 5 from reinsured companies; 4 from crop insurance

trade associations; 1 from a grower association; and 1 from a

congressional office. The comments received and FCIC responses are as

follows:

Comment: One comment received from the crop insurance industry

indicated that the proposed changes for 1996 are less than timely, as

1996 training and marketing activities have already begun for the crops

affected by the proposed rule. The comment recommends that FCIC move to

process the final rule as soon as practical to minimize confusion in

the 1996 crop year.

Response: FCIC agrees that the 1996 prevented planting regulations

need to be published and implemented as quickly as possible.

Comment: Two comments received from the crop insurance industry

recommended that whatever the final prevented planting provisions are,

they should stand for the crop year without further change.

Response: FCIC agrees with the comment and is committed to limit

changes unless deemed essential.

Comment: One comment received from the FSA stated that canola crop

provisions need to be included and amended to conform to the 1996

prevented planting changes since the canola policy has prevented

planting provisions.

Response: FCIC disagrees because canola is a pilot policy that has

not been published in the Federal Register. No change will be made.

Comment: One comment received from the crop insurance industry

noted that the term ``Consolidated Farm Service Agency'' is used in the

provisions and that the term used should now be ``Farm Service

Agency.''

Response: FCIC agrees and has made the necessary changes.

Comment: One comment received from the legal counsel of a reinsured

company stated that FCIC's proposed rulemaking is in violation of the

Administrative Procedure Act.

Response: The Office of General Counsel approved FCIC's proposed

regulation for legal sufficiency. The short comment period was

necessary due to pressure to provide an adequate program to producers

by the applicable contract change dates. FCIC believes that adequate

time was given for the public to comment, based on the number and

length of comments received.

Comment: One comment received from the crop insurance industry

indicated that administrative costs and errors and omission exposure

will increase at the point of sale to the extent the provisions must be

explained adequately.

Response: FCIC agrees that the provisions must be clearly

communicated to avoid the exposures indicated in the comment. FCIC is

making every effort to provide the new provisions as early as possible

to allow adequate time for training, etc.

Comment: Four comments received from the crop insurance industry

indicated the need to allow modification of the already approved 1996

Standard Reinsurance Agreement to recognize the increased

administrative and underwriting costs associated with the increased

benefits and potential adverse selection associated with this rule.

This modification, in the form of an optional amendment, would allow

the reinsured company the option of assigning policies with prevented

planting losses to FCIC or to pre-designate that such policies will

fall to a different fund and/or have a different retention percentage

than that designated in the reinsured company's plan of operation. In

addition, one of the comments proposes that provisions regarding excess

loss adjustment expense that are being considered for the 1995 crop

year be adopted for the 1996 Standard Reinsurance Agreement. One

comment indicates that the proposal may be characterized as

implementing into the subject policies the prevented planting benefits

that were administratively adopted during the 1995 crop year, and that

the changes made in 1995 appear to have significantly increased

administrative and underwriting costs. One comment stated that

reinsured companies must be provided with a means under the Standard

Reinsurance Agreement to either cede the entire premium and losses

associated with prevented planting to FCIC or to cede the premium and

losses to a risk fund other than that in which the rest of a policy is

placed. Until the adequacy of the rating can be tested, FCIC must bear

all or substantially all of the risk of loss

[[Page 62713]]

(and any gain) associated with these policies if a company is unwilling

or unable to. One comment stated that FCIC has failed to minimize moral

hazard and has proposed a program that it expects will be adversely

selected against and will therefore damage the integrity and actuarial

soundness of the crop insurance program. Without providing private

insured companies with a means to cede the increased risk associated

with the proposed provisions entirely or almost entirely to FCIC, the

proposed rule would force private companies to bear losses due to

programmatic decisions which they had no control over.

Response: FCIC has promulgated premium rates that reflect the 1996

prevented planting provisions; thus, FCIC is not compelled to provided

additional options to select among reinsurance funds or assume all the

risk associated with the program change. Promulgation of premium rates

prior to publication of this final rule was permissible because the

actuarial material also contained the premium rate that would be used

if this rule were not made final. The additional excess loss adjustment

expenses provided for the 1995 crop year were made to offset the

expense of loss adjustments when the Company had to re-open completed

claims, and to clear a considerable number of notices of loss to

determine if payable prevented planting claims existed. It was also

expected that additional expense was incurred to re-train agents and

loss adjusters on the prevented planting changes and loss procedures.

FCIC believes that administrative expense reimbursement and excess loss

adjustment expense provided under the Standard Reinsurance Agreement

effective for the 1996 reinsurance year are adequate to cover such

expenses for the 1996 crop year.

Comment: One comment received from the insurance industry indicated

concern over whether enough premium differential is included in the

prevented planting rates to adequately cover prevented planting

payments on so called 0/92 acres. The comment indicated that providing

both guaranteed deficiency payments and prevented planting payments

invites policyholders to make an economic decision not to plant, and

that these decisions will adversely impact the insurer. The comment

indicated reservation over whether enough rate could be charged to

counter this adverse selection opportunity.

Response: Guaranteed deficiency payments such as under the so

called 0/92 and 50/92 programs are independent of crop insurance

payments. Therefore, the risk of insurance against prevented planting

should be unaffected. However, farm management decisions can be and

should be made based on economics. The 0/92 and 50/92 benefits already

have a significant influence on producer reaction. There now is a moral

hazard that a producer may be influenced to collect a prevented

planting payment in addition to the 0/92 or 50/92 payment; however, the

extent of the moral hazard is unknown. That moral hazard is greatly

influenced by the assessment of the 0/92 and 50/92 program in any given

year. For example, if the guaranteed deficiency payments are decreased

or expected to decrease, then the 0/92 and 50/92 program payments are

also minimized and the moral hazard for additional prevented planting

payments are likely to disappear. The reverse is also true if the

guaranteed deficiency payments are expected to increase. Therefore, the

moral hazard can only be approximated by adding an additional rate to

counter the expected adverse selection potential of the dual payments.

County rates were increased based on the probability that some

additional losses will accrue given the influence of the so called 0/92

or 50/92 program.

Comment: One comment received from the legal counsel of a reinsured

company indicated an inconsistency with the coverage provided and the

Federal Crop Insurance Reform Act of 1994 (the ``Reform Act''). The

Reform Act indicates that for CAT coverage a prevented planting benefit

will be paid only if a producer is unable to plant another crop.

Current crop provisions and the proposed provisions provide a prevented

planting benefit if a producer is prevented from planting the insured

crop and elects not to plant a substitute crop.

Response: FCIC agrees that this issue must be analyzed and

modifications made if found necessary. However, the comment is not

germane to this rule because it applies to regulations already in

place.

Comment: One comment received from the legal counsel of a reinsured

company states that the proposed provisions are in conflict with

section 506(o) of the Federal Crop Insurance Act (the ``Act'') which

directs FCIC ``to take such actions as are necessary to improve the

actuarial soundness of the Federal multiperil crop insurance

coverage.'' Reasons cited include: (1) Increased moral hazard,

particularly if market prices (and/or yields) are expected to be low

and net returns for a substitute crop or 0-50/92 benefits are expected

to be high; (2) elimination of provisions that required prevented

planting acreage to be prorated to all units that could have been

planted to the insured crop; and (3) the addition of provisions that

provide prevented planting benefits for producers who follow a double-

cropping practice without sufficient premium to offset the risk.

Response: In addition to maintaining an actuarially sound insurance

program, FCIC is mandated to maintain fair and effective coverage for

agricultural producers. FCIC must also make the administration of its

programs efficient and practical. Virtually all insurance providers

have indicated that previous provisions requiring proration of eligible

acreage were complex, unmanageable, and not fair to producers in many

cases. Producers have been eligible to collect deficiency payments on

planted acres and certain prevented planting acreage. There is no

justification for denying those benefits when producers are eligible

for crop insurance benefits provided premium rates reflect the

increased risk of loss. FCIC has developed premium rates for prevented

planting based on sound rating principles, including those prevented

planting situations that may develop in double-cropping areas. If data

is available indicating that rates are insufficient to offset the risk,

FCIC requests submission of such data so that it can be reviewed and

any necessary changes can be made.

Comment: One comment received from a commodity group and one

comment received from the crop insurance industry stated that they have

concerns about projected premium increases. They request that producers

have the option of excluding prevented planting coverage in its

entirety. Producers need to be able to assess the rate increase before

purchasing crop insurance coverage to see if prevented planting

coverage is economically feasible for them. They stated that the

projected average cost increase is 6-8 percent and in some high rate

areas may be as much as 20 percent. Producers cannot afford another

premium increase.

Response: Prevented planting coverage was made an integral part of

the policy following the 1993 crop year to lessen the need for ad hoc

disaster assistance for growers who were prevented from planting. If

allowed to opt out of the coverage, FCIC believes that large numbers of

growers would exclude the coverage. This assessment is based on the

experience of 1993. This would result in a great deal of pressure

either to institute insurance coverage after a loss has occurred or a

great deal

[[Page 62714]]

of pressure for some other form of financial assistance.

Comment: One comment received from members of the House of

Representatives of the United States Congress stated that most of West

Texas has been given a large multiperil rate increase on cotton that

producers simply cannot afford. They have been informed that some

counties have suffered as much as a 20 percent rate increase for 1996.

They stated that the provisions suggest that the primary benefits

account for a 6-7 percent rate increase even if the secondary coverage

is rejected. The impact analysis estimates the majority of producers

will decline the coverage for the alternate crop, opting instead for a

reduced premium on the intended crop. They stated that the prevented

planting benefits appear to account for at least 13 percent of the 20

percent rate increase. They feel the prevented planting provisions

should be modified to allow producers to reject all prevented planting

coverage in return for an additional reduction in premium in the amount

of the 6-7 percent FCIC claims the primary coverage for prevented

planting is worth. They stated that producers cannot afford a premium

increase to pay for prevented planting coverage they do not need. In

1995, West Texas experienced a rate increase that was largely absorbed

by a 30-42.5 percent increase in subsidy payments. The 1996 rate

increase will be borne by producers alone. This increase is an

unnecessary burden on the agricultural community.

Response: The rate increase not associated with the 1996 prevented

planting program change is necessary to make the cotton crop insurance

program actuarially sound. Primary prevented planting benefits account

for only 0.2 percent to 0.4 percentage points of premium rate.

Therefore, growers opting out of the primary prevented planting

coverage would receive a very small credit. FCIC believes that basic

prevented planting coverage should remain an integral part of the

policy to ensure growers are covered in the event that prevented

planting occurs (also see response to comment above).

Comment: Seven comments received from the crop insurance industry

and one comment received from FSA recommended amending the definition

of prevented planting because: (1) The definition includes reference to

``most producers in the surrounding area'' and the term ``most'' is not

defined. As a result there is no way to apply the definition to any

particular policyholder when there is a dispute over whether or not

planting was actually prevented; (2) The day after the final planting

date, a producer could plant a substitute crop and receive a prevented

planting benefit; and (3) The provisions must require prevented

planting conditions to have to exist through the whole late planting

period before any prevented planting payment is due because: (a)

Prevented planting should never have been allowed for producers who

quit planting by the final planting date and made no effort to plant

within the late planting period; (b) allowing the producer to declare

prevented planting on the day after the final planting date defeats the

purpose of the late planting provision and submits the program to

unwarranted risk; (c) the producer may not plant an alternative crop or

enter into 0/92 until after the late planting period has expired for

the original crop and still collect a prevented planting payment (with

the obvious requirement that weather conditions continue to prevent

planting in the late planting period); (d) the prevented planting

payment payable when an alternative crop is planted must be reduced

from that level available if no alternative crop is planted; (e) in no

circumstance could the producer switch to an alternative crop prior to

the end of the late planting period and still collect a prevented

planting payment (they would be free to plant whatever crop they wanted

at any time, they just should not expect to collect a prevented

planting payment on the original crop if they do not go through the

late planting period of the original crop); and (f) moral hazards and

abuse are created when producers are allowed to collect a substitute

crop immediately after the final planting date. In most cases producers

will plant the crop into the late planting period as a normal practice,

but now we have created a disincentive to do so.

Response: FCIC agrees that a more definitive term than ``most''

should be used and has replaced it with the term ``majority'' to

reflect that more than 50 percent of the producers must have been

prevented from planting.

This definition was designed to accommodate extremely varied

production areas and farming practices; including those in which

growers do not plant after the final planting date and those in which

growers often do plant a crop within the late planting period. Some

farming areas have relatively short growing seasons which make the

prospect of a successful crop doubtful if planted much beyond the final

planting date. Other areas have much longer growing seasons and often

allow a successful crop to be grown even if planted after the final

planting date. In both long and short growing areas, some farming

practices, such as the production of silage, allow a grower to plant

after the final planting date and still produce an acceptable crop.

Changing the definition to require that prevented planting conditions

must have existed through the end of the late planting period before

any prevented planting coverage would be provided would not accommodate

growers who normally do not plant after the final planting date.

FCIC agrees producers should be encouraged to plant their initially

intended crop after the final planting date when it is practical to do

so. Therefore, FCIC has amended these regulations to specify that

prevented planting coverage will not be provided when a producer,

prevented from planting the initially intended crop, plants a

substitute crop within ten days after the final planting date for the

initially intended crop.

Comment: One comment received from the crop insurance industry

suggested that FCIC's actuaries re-evaluate: (1) When the late planting

period should start (i.e., final planting date); (2) whether the late

planting period should be shortened; and (3) whether or not eligibility

for a prevented planting payment should trigger at the time that

shortened period is exhausted.

Response: These evaluations are on-going. FCIC requests that any

person who has data affecting these matters make it available for

consideration.

Comment: One comment received from a commodity group stated that

they oppose the lower percentage level of insurance guarantee proposed

for prevented planted cotton compared to other commodities. They

contend the criteria that should be used to determine coverage for

prevented planting should be applied consistently among commodities.

Response: Data used by FCIC to determine prevented planting

benefits indicated cotton producers incur a larger percentage of total

production costs after planting than do producers of corn and other

grain crops. Additional post-plant costs incurred by cotton producers

include those for pest control and the costs associated with the

ginning and handling of cotton. Therefore, no change will be made. FCIC

is willing to work with producer groups and other interested parties to

review existing data to revise levels of benefits when analyses

indicate it is necessary.

Comment: One comment received from the crop insurance industry

recommended increasing the standard

[[Page 62715]]

prevented planting payment from the current 50 percent to 60 percent.

Response: The prevented planting payment of 50 percent adequately

compensates the producer for the loss of production, taking into

consideration cost, not incurred. FCIC has discovered that increasing

the standard prevented planting payment reduces the incentive for

producers to plant the intended crop by the end of the late planting

period when it is possible and increases the cost to the program.

Therefore, FCIC will not change the standard prevented planting

payment.

Comment: One comment received from counsel for a reinsured company

on behalf of the crop insurance industry stated that the Reform Act

contains a provision that allows a reduction in the benefit amount paid

to a producer to reflect out-of-pocket expenses not incurred by a

producer as a result of not planting, growing, or harvesting the crop

for which a prevented claim is made. The comment indicates that this

proposed rule is silent regarding this requirement for limited and

additional coverage, but that FCIC is required by the Reform Act to

include this provision for CAT coverage.

Response: Prior to enactment of the Reform Act, prevented planting

production guarantees for all coverages and crops were at least 50

percent lower than the guarantee for a timely planted crop to avoid

compensating producers in excess of their actual losses and provide

actuarially sound coverage. This has not changed.

Comment: One comment received from the crop insurance industry

stated that the inclusion of drought as an insurable peril and lack of

any firm definitions or procedural guidelines subjects the Company and

FCIC to abuse and fraud.

Response: FCIC does not believe that inclusion of drought as an

insurable peril substantially subjects the company and FCIC to abuse

and fraud. The burden is on the producer to prove that drought

prevented a producer from planting. Further, the Soil Conservation and

Extension Services have advised producers on occasion not to plant

because it was so dry that planting the ground could result in severe

wind erosion. The rule also requires a majority of producers to be

affected by the cause of loss.

Comment: One comment received from the crop insurance industry

recommended that in an effort to increase the incentive to plant the

original crop as opposed to simply collecting insurance and farm

program benefits, it might be advisable to consider reducing the late

planting period from 25 to 20 days, with the reductions in guarantees

over the 20 days totalling 25 percent, to leave the person with a

guarantee equal to 75 percent of their original level--( i.e. 1 percent

per day for the first 10 days and 1.5 percent per day for the second 10

days).

Response: Under the current formula, the production guarantee is

reduced only 1 percent for each of the first ten days and 2 percent for

days 11-25. FCIC believes this formula provides adequate incentive for

producers to plant crops early in the late planting period to keep

their insurance production guarantee at the highest level possible.

Changing the length of the late planting period and the percents of

reduction could result in over insurance and increased crop insurance

indemnities. Therefore, no change will be made.

Comment: One comment received from FSA recommended that acreage

that is planted to the insured crop after the late planting period be

designated as late planted with a 50 percent reduction in guarantee.

They stated that it is very confusing to have this acreage designated

as prevented planting.

Response: If acreage is prevented from being planted through the

late planting period due to an insurable cause of loss, and is planted

to the insured crop after the late planting period, the acreage will

receive a 50 percent reduction in guarantee and must be reported as

prevented planting acreage. This information is needed by FCIC for

analytical purposes in reviewing crop insurance premium rates.

Therefore, no change will be made.

Comment: One comment received from the crop insurance industry

recommended that the cover crop planted on prevented planting acres

could only be hayed or grazed by the producer's own livestock. The

producer could not sell hay or charge others to let livestock graze.

Response: FCIC disagrees because it increases costs, is

administratively difficult to enforce, and is contrary to legislative

directives to simplify procedures. Therefore, no change will be made.

Comment: One comment received from the crop insurance industry

indicated that the ``background'' section of the proposal indicates

that prevented planting acreage may be planted to a conserving use

cover crop that may be hayed and grazed without limitation, but that

the actual policy language indicates only that a cover crop not for

harvest may be planted. The comment suggests modifying the policy

language to indicate that haying and grazing is permissible if this is

the intent.

Response: Paragraph 12(a)(3)(i) of the Hybrid Sorghum Seed

Endorsement states that prevented planting coverage is available ``if

the acreage is left idle for the crop year, or if a cover crop is

planted not for harvest. Prevented planting compensation hereunder will

not be denied because the cover crop is hayed or grazed * * *'' This

provision is also contained in a similar location in the proposed

regulations for other crop policies. Therefore, no change is required.

However, the ``background'' section will be amended to reflect that a

conserving use cover crop may be hayed or grazed without affecting

prevented planting benefits.

Comment: One comment received from FSA stated that under the

provision allowing for a production guarantee of 50 percent (40 percent

for hybrid seed (corn) and 35 percent for cotton, ELS cotton and rice)

of the timely planted guarantee, prevented planting compensation should

not be allowed when the cover crop is hayed or grazed because the

producer is receiving a benefit from that crop.

Response: FCIC agrees that some value is gained when a cover crop

is hayed or grazed. However, this benefit is of limited value in

comparison with the income that would be gained if the intended crop

could have been planted. In addition, the feed value obtained varies

widely and may be negligible in some situations. It is FCIC's opinion

that the administrative costs associated with keeping track of the

disposition of feed production outweigh any benefit that could be

derived.

Comment: Eleven comments received from FSA and the crop insurance

industry recommended eliminating the provision which provides a

prevented planting guarantee equal to 25 percent of the production

guarantee for timely planted acres (20 percent for hybrid seed (corn)

and 17.5 percent for cotton, ELS cotton, and rice) when acreage that is

prevented from being planted is planted to a substitute crop for

harvest. The following reasons were given: (1) This protection was not

intended or mandated by the Reform Act; (2) the previous disaster

programs never provided this type of protection; (3) there is no budget

to cover the subsidy or administrative expense for this protection; (4)

the indemnity would be paid even if the substitute crop provided more

economic value than the intended crop that was prevented from planting;

(5) the moral risk is high; (6) there has been little demand for this

kind of protection from producers, insurance companies or agents and

if, or when, the demand occurs a ``pilot program'' should be developed

and

[[Page 62716]]

implemented; (7) if a plan like this is offered it should be offered as

a separate policy without government subsidy and delivered by the

private insurance industry without any cost to the government; (8) the

premium for the 25 percent protection (20 percent for hybrid seed

(corn) and 17.5 percent for cotton, ELS cotton, and rice) has been

increased as much as 30 percent in some counties. This protection

should be offered as an option or a separate endorsement that does not

affect the cost of the basic protection or require the producer to sign

an exclusion; (9) the rating varies within a state from 5 percent to 30

percent for no apparent reason; (10) it puts extreme pressure on the

final planting date. For example, producers contemplating switching

from corn to soybeans would normally plant whenever they thought they

were better off with a normal soybean yield versus a reduced corn

yield, but now some producers will want to wait until the final

planting date for corn so they can have the prevented planting

guarantee when planting a substitute crop; (11) intended acres are very

hard to administer; (12) every crop could potentially show one crop as

prevented planting with a substitute crop planted (i.e. a producer

could report prevented planting corn with planted soybeans on field A

and prevented planting soybeans with planted corn on field B when the

producers intentions were to plant half of the fields to soybeans and

half to corn); (13) it encourages producers to manipulate the program

to the detriment of the American taxpayer; (14) acreage on which the

producer is able to plant a crop for harvest is not acreage that is

prevented from being planted; (15) the definition of ``indemnity'' in

the Basic Insurance Principles states, ``For insurance purposes, it

means that the producer is restored to approximately the same position

from an economic standpoint that was occupied before the loss occurred.

* * * Never, under any circumstances, would a gain be permitted.''

Under this provision, a gain is almost a given; (16) a producer would

not plant two crops on the same acreage in the same crop year, except

for a producer who normally double crops. That is unfair to producers

in areas without excessive moisture who plant only one crop and may

receive an indemnity on only that crop, not an additional 25 percent on

an imaginary crop; (17) any time a producer can opt out of automatic

coverage, adverse selection is assured; (18) the more endorsements,

options, and exclusions that are added to a policy, the greater the

likelihood of producers being unaware of all of their policy provisions

and obligations which increases the appeals, litigation cases, agent

error and omissions occurrences, and Congressional referrals; (19) the

rate increases and factors that were used are inaccurate; (20) factors

used to decrease premium if a producer opts out of this coverage are

excessive; (21) the prevented planting provisions must increase the

incentive to plant the original crop and decrease any incentive to

simply not plant and collect insurance benefits; (22) adverse selection

will also occur as producers will be able to opt out of prevented

planting for a reduced charge; and (23) the most recent GAO report

addresses the inadequacy of the current premium rates and that the

programs rate structure was undermined when the Department provided

more benefits in 1995 under the prevented planting provision and, if

history is any indication, then premium rates will remain inadequate.

Response: FCIC understands the concerns of the crop insurance

industry, government employees, and others. Although the Reform Act did

not mandate this protection, FCIC's decision to develop the proposed

regulations for prevented planting was based on broad policy concerns

that had to be considered along with actuarial concerns.

When the present prevented planting provisions were developed for

the 1994 crop year, FCIC knew that changes would be needed in future

years as experience was gained. Many producers were prevented from

planting in the 1995 crop year and voiced discontent with those

provisions. It was concluded that there was an inconsistency in

coverage that resulted in three different levels of claims payments for

producers similarly affected by excessive moisture. Specifically,

producers who planted an insured crop that failed were eligible for

crop insurance indemnities for a loss in production; producers who were

prevented from planting an insured crop and did not plant a subsequent

crop were eligible for a crop insurance prevented planting payments,

but producers who were prevented from planting an insured crop and

planted a substitute crop were not eligible for any crop insurance

payments. FCIC believes that this third group should be eligible for

crop insurance payments to make them whole.

To maintain actuarial integrity 1996 crop insurance premium rates

were recalculated to reflect the prevented planting coverage changes.

FCIC believes the coverage changes merely give producers another

insurance choice when they are prevented from planting their initially

intended crops. FCIC agrees producers should be encouraged to plant

their initially intended crop after the final planting date when it is

practical to do so. Therefore, FCIC is amending this regulation so that

when Producers are prevented from planting their initially intended

crop and plant a substitute crop within ten days after the final

planting date for the initially intended crop, a prevented planting

production guarantee will not be provided for such acreage. In

addition, FCIC believes producers will make every effort to plant the

crop of the greatest economic value as soon as possible. It would make

little sense to delay planting to receive the 25 percent prevented

planting payment and run the risk of not getting any crop planted. FCIC

believes this amendment will help maintain the actuarial soundness of

the prevented planting coverage.

The proposed regulations do not provide the option to delete the

primary prevented planting coverage. They do provide producers the

option of declining eligibility for a prevented planting production

guarantee when a substitute crop is planted. Producers may wish to

delete this coverage in return for a reduction in the premium they are

required to pay. Based on the forgoing reasons, no change will be made.

Comment: One comment received from the crop insurance industry

suggested that the option to receive prevented planting benefits and

plant a substitute crop should be continuous until cancelled and should

only be completed for producers who want the additional coverage, not

for producers declining the coverage.

Response: FCIC has determined that all producers should have

complete prevented planting coverage unless they elect to exclude such

coverage when a substitute crop is planted for harvest. Experience in

1993 indicates that most producers were unaware of the availability of

prevented planting coverage when it was a separately purchased

coverage. Therefore, no change will be made.

Comment: One comment received from counsel of a reinsured company

stated that the policy provisions should be amended to read, ``Proof

that you had the inputs available to plant and produce a crop other

than a crop you planted the past year or a crop that is part of a

regular rotation of the acres planted and for which you had insurance

with the expectation of at least producing * * *.''

[[Page 62717]]

Response: FCIC does not agree. The intent of prevented planting

coverage is to provide coverage for the intended crop for the current

crop year. FCIC does not intend to interfere with producers' responses

to market signals. Therefore, no change will be made.

Comment: Two comments received from the crop insurance industry

expressed concern regarding how insurers will police provisions dealing

with a substitute crop and recommended clarifying the following issues

in the final rule. The comments state that it is difficult if not

impossible to determine the crop and acreage originally intended to be

planted and that the provisions will provide an opportunity for

producers to claim prevented planting on acreage originally intended to

be planted to a substitute crop. One of the comments further questioned

whether a minor oilseed crop planted by a grower participating in the

so called 0/92 program would be considered a substitute crop or not.

Response: The acreage reporting provisions rely on the producer to

indicate the specific acreage and crop that were prevented from being

planted. On the surface these provisions would indicate a significant

vulnerability, especially with regard to the substitute crop

provisions. However, other provisions, including those that limit

maximum eligible acreage and those that reduce eligible acreage by the

amount of any timely and late planted acreage substantially reduce this

vulnerability. For example, if a producer indicates acreage is

prevented from being planted to corn and plants grain sorghum as a

substitute crop, any other acreage planted to corn on the farm would

reduce the amount of corn acreage eligible for a prevented planting

production guarantee. Likewise, the acreage planted to grain sorghum

would reduce the amount of any grain sorghum acreage that may have

originally been eligible to receive a prevented planting production

guarantee. Other provisions that give the insurer the right to require

a producer to provide proof that the inputs were available to plant and

produce the crop will also reduce vulnerabilities that might otherwise

be associated with this coverage. A minor oilseed crop may be

considered a substitute crop if it is planted after the originally

intended crop was prevented from being planted. Growers qualifying for

prevented planting coverage in this situation may qualify for the so

called 0/92 program if the minor oilseed can be planted as a substitute

crop under that program. Participation in the so called 0/92 program is

not required to be eligible for crop insurance prevented planting

benefits.

Comment: One comment received from the crop insurance industry

expresses concern that the wording that advises the producer of the

choice to exclude prevented planting coverage is not prominent enough

in the policy. The comment also suggests, concurrent with the final

rule, that guidelines meeting Standard Reinsurance Agreement

requirements be issued addressing the form ``approved by us'' that is

required to opt out of prevented planting coverage when a substitute

crop is planted.

Response: Provisions indicating a producer's choice to exclude this

coverage are contained in appropriate locations within the policy. On

or before the sales closing date for the intended crop, a producer may

``opt out'' of prevented planting coverage when a substitute crop is

planted by entering the appropriate option code on the crop insurance

application or contract change form.

Comment: One comment received from the crop insurance industry and

one comment received from FSA stated that the provision that requires a

producer to provide proof that they had the inputs available to plant

and produce a crop adds complication to the loss adjustment process and

likely adds little to the ability to determine the producer's intent.

If the provision is not eliminated, one of the comments recommends

issuance, concurrent with the final rule, of procedure addressing what

constitutes proof that the inputs were available.

Response: Proof that the producer had the available inputes is not

mandatory in all cases. Such proof should be required when producers

are claiming they are prevented from planting a crop which they have

never historically planted or there are other suspicious circumstances.

Procedure is being drafted in the loss adjustment handbooks to include

what constitutes such proof. Therefore, no change is necessary.

Comment: One comment received from FSA indicated that they did not

understand why producers would request deleting the prevented planting

provisions from a policy.

Response: The producers would not have the option of deleting the

prevented planting provisions from the policy, instead they would be

allowed only to exclude eligibility for that portion of the prevented

planting coverage available when a substitute crop is planted in return

for a reduction in the premium rate attributed to such coverage.

Comment: One comment received from FSA stated that it seems

pointless to add a requirement for producers to provide proof that they

had inputs available to plant and produce the intended crop because

seed and chemical receipts are too easily obtained by persons willing

to manipulate FCIC's procedures.

Response: FCIC disagrees with the comment. Falsifying such records

could subject the producer, seed or chemical distributor to criminal or

civil sanctions. Further, inputs such as seed and chemical receipts

verify the intentions to plant and produce the insured crop. The

producer who provides false documentation is, of course, open to

substantial criminal and civil liability. Failure to produce this

evidence when requested is cause for FCIC to deny prevented planting

coverage. Therefore, no change will be made.

Comment: One comment received from the crop insurance industry

recommended deletion of the extended insurance period provisions for

carry-over insureds. The comment indicated that the current sales

closing date of March 15 in an area with normal planting times during

April and May makes the likelihood of a prevented planting cause prior

to March 15 very remote. If the provision is not deleted, it was

recommended that the provision be clarified to address whether or not

buying up from the CAT level for 1996 falls under the first year or the

subsequent year provisions.

Response: The Reform Act requires prevented planting coverage be

provided for the period between the sales closing date of the previous

crop year and the sales closing date of the current crop year.

Therefore, no change will be made.

Comment: One comment received from the crop insurance industry

recommended that acreage of hybrid seed crops (and any other crop grown

under a contract) eligible for prevented planting coverage be limited

to the same number of acres under contract for the crop year.

Response: FCIC agrees with the comment and has revised the hybrid

corn and hybrid sorghum seed crop provisions accordingly.

Comment: One comment received from the crop insurance industry

recommended clarification of provisions that limit the eligible acreage

to the number of acres planted to the insured crop during the previous

crop year. Specifically, the comment asked if this provision means the

number of acres the producer planted the previous year or the number of

acres planted on the land in question; and what happens if the

[[Page 62718]]

land changes hands from one year to the next or the producer farms

different land from one year to the next.

Response: FCIC agrees that the provision may be interpreted

incorrectly. The intent is to limit eligible acreage within a FSA farm

serial number to the total number of acres planted to the insured crop

on the FSA farm serial number the previous crop year unless we agree to

a greater number. The crop provisions have been clarified accordingly.

Comment: One comment received from the crop insurance industry and

two comments received from FSA question how the insurance provider was

to agree in writing to insure eligible acreage. They also recommended

that procedure be issued, concurrently with the final rule, to indicate

the parameters and required elements of an ``agreement in writing'' to

increase the number of acres that would be eligible for prevented

planting coverage.

Response: Presently, it is up to the insurance provider to develop

a process by which they agree in writing when the producer requests to

increase their eligible prevented planting acreage. FCIC agrees that

further instructions are needed and will incorporate such instructions

into the 1996 Catastrophic Risk Protection Handbook and the Crop

Insurance Handbook.

Comment: One comment received from the crop insurance industry

recommended adding language to provisions regarding determination of

eligible acreage that limits the eligible acreage to that indicated on

a ``report of intended acreage.'' The comment further suggests that

language be added to indicate that such report meets the criteria for

the agreement in writing that is necessary to exceed the printed policy

limitations for eligible acreage.

Response: FCIC does not require nor prohibit the use of a ``report

of intended acreage.'' However, coverage and premium are based on the

actual acreage report filed by the producer, not the report of intended

acreage. Therefore, no change is made. FCIC will consider the use of

the ``report of intended acreage'' as an ``agreement in writing'' to

exceed the printed policy limitations for eligible acreage.

Comment: One comment received from the crop insurance industry

stated that reference to the final planting date in the paragraph which

states, ``prevented planting coverage will not be provided for any

acreage * * * that does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit'' must be clarified. They did not

understand if it applied to the final planting date for the planted

crop or the final planting date for the other crop which the producer

wants to declare as prevented planting.

Response: In FCIC's opinion, this provision does not require

clarification. This provision requires information regarding inputs

only for the originally intended crop. Therefore, no change is made.

Comment: One comment received from the crop insurance industry

recommended deletion of the provision that states ``Any acreage you

report in excess of the number of acres eligible for prevented planting

coverage, or that exceeds the number of eligible acres physically

located in a unit, will be deleted from your acreage report.'' The

comment suggests replacing this provision with the following: ``Any

acreage you report that does not qualify for prevented planting will be

deleted from your acreage report.''

Response: FCIC disagrees with the comment. The recommended

replacement language that states ``does not qualify for prevented

planting'' is not specific enough regarding the eligible acres for

prevented planting. Producers need to understand that acreage deleted

from the acreage report consists of both the acreage in excess of the

number of acres eligible for prevented planting coverage and acres in

excess of the number of eligible acres physically located in a unit.

Comment: One comment received from FSA suggested that if the

``Freedom to Farm'' concept is adopted and the producer is not

restricted to a required number of acres of a crop, it will be

difficult to believe the acreage reported as ``intended to be

planted.''

Response: At this time legislative changes in the farm bill are

uncertain and it would be premature for FCIC to make changes based on

assumptions. FCIC will make the necessary changes based on the law

ultimately enacted. The restriction with regard to prior year's planted

acreage continues regardless of changes in acreage bases.

Comment: One comment received from FSA stated that the following

phrase ``acreage that is less than 20 acres or 20 percent of the

acreage in the unit will be considered intended to be planted to the

insured crop planted on the adjoining acreage, unless you can show that

you had the inputs available to plant and produce another insured crop

on the acreage before the final planting date,'' will allow prevented

planting coverage on less than 20 acres or 20 percent of the acreage in

the unit if a producer could prove he was going to plant that to

another crop. This scenario is unlikely and we are just allowing a

loophole for producers to get prevented planting coverage on their

potholes.

Response: The proposed provisions state that, ``Prevented planting

coverage will not be provided for any acreage that does not constitute

at least 20 acres or 20 percent (20%) of the acreage in the unit,

whichever is less * * *'' was intended to be used only to verify the

crop intended to be planted on the acreage. For example, assume that a

producer has one section of land comprised of three separate adjacent

fields. The first field consists of the east \1/3\ of the section (100

insurable acres), the second field consists of the central \1/3\ of the

section (100 acres of which 85 acres are not insurable), and the third

field consists of the west \1/3\ of the section (100 insurable acres).

If the producer planted corn on the first and the third fields and is

prevented from planting the 15 insurable acres in the second (middle/

adjacent) field, the 15 acres will be considered to have been intended

to be planted to corn, unless the producer can show that inputs were

available to plant and produce another crop on those 15 acres. If

inputs are not available for another crop, the 15 acres would not be

eligible for prevented planting because at least 20 acres in the unit

were not prevented from planting.

Comment: One comment received from the crop insurance industry

stated that the language should be modified (subsection 13(d)(4)(iv)(D)

of the Coarse Grains Provisions) to read: On which another crop is

prevented from being planted, if you have already received a prevented

planting indemnity, guarantee or amount of insurance for such acreage

in the same crop year, unless you provide adequate records of acreage

and production showing that the acreage has a history of double-

cropping in each of the last four crop years;

Response: FCIC agrees with the comment and has revised the

provisions accordingly.

Comment: One comment received from the crop insurance industry

stated that the language should be modified (subsection 13(d)(4)(iv)(E)

of the Coarse Grains Provisions) to read: On which the insured crop is

prevented from being planted, if any other crop is planted and fails,

or is planted and harvested, hayed or grazed on such acreage in the

same crop year (other than a cover crop as specified in paragraph

(a)(3)(i) of this section, or a substitute crop allowed in paragraph

(a)(3)(ii) of this section), unless you provide adequate records of

acreage and production showing that the acreage has a history of

double-cropping in each of the last four years;

[[Page 62719]]

Response: FCIC agrees with the comment and has revised the

provisions accordingly.

Comment: One comment received from the crop insurance industry

stated that it is currently impossible to monitor the requirement that

all acreage prevented from being planted be reported, especially when

it is small acreage and production from planted acreage will likely

exceed the combined guarantee. If this reporting requirement is

retained, guidelines must be established to be able to enforce and

possibly penalize, if not reported completely. Now may be the time to

initiate reporting of intended acreage to be planted the following year

at the same time that production is reported for the current crop year.

Response: FCIC agrees that this potential exists and will continue

to monitor this problem and to work on a solution. However, no change

will be made at this time.

Comment: One comment received from FSA suggested deleting the

following sentence because it is repetitious, ``If you have a

Catastrophic Risk Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may only

receive the prevented planting indemnity, guarantee, or amount of

insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received.''

Response: FCIC disagrees that the provision is repetitious. For CAT

policies only, this provision specifically disallows more than one

prevented planting benefit per acre for a crop year regardless of a

past history of double cropping. It also prohibits a prevented planting

production guarantee on acreage if another crop is planted for the

insured crop year. Both of these benefits may be provided in certain

situations under limited and additional coverage. Therefore, no change

is made.

Comment: One comment received from an attorney on behalf of the

crop insurance industry indicated that allowing both a so called 0/92

or 50/92 payment and a crop insurance prevented planting benefit is

contrary to law. The comment states that the interim rule allowing both

payments (published at 60 FR 35832 (July 12, 1995)) was a move back to

ad hoc disaster payments.

Response: The so called 0/92 and 50/92 payments are not payments

for prevented planting. Producers do not have to have been prevented

from planting to collect 0/92 or 50/92 payments. Payments under these

programs are intended to compensate producers for price deficiencies

(i.e. the difference between the target price and the market price.

Since payments under the 0/92 and 50/92 programs are available for

producers with crop failure, it would be inconsistent to deny the same

benefit to producers who are prevented from planting.

Comment: One comment received from the crop insurance industry

suggested that additional definitions and clarifications need to be

made that spell out the qualifications for double-cropped acreage such

as what proof is needed and how many years of records are needed.

Otherwise, they recommend excluding double cropped acreage.

Response: The prevented planting provisions specify that the

producer must provide adequate records of acreage and production that

show the acreage has been double-cropped for each of the last four

years. Therefore, no change is necessary.

Comment: Two comments received from the crop insurance industry

regarding allowing prevented planting payments on double-crop

situations stated that: (1) It will generate additional prevented

planting claims on acreage that would otherwise not be double-cropped.

If these provisions are retained, ``adequate records of acreage and

production in each of the last four years'' must be clearly defined to

assure that the specific acreage has a definite history of double-

cropping; and (2) two prevented planting payments in double cropping

situations may add unwanted incentives to encourage the farming of

fragile and marginal lands in more arid regions.

Response: FCIC does not believe that additional claims will be made

for acreage that would not normally be double-cropped. The crop

provisions clearly indicate that records of both acreage and production

for the previous four crop years must be provided to qualify for

benefits for more than one crop in a crop year. This provision should

discourage claims on acreage that has not been double-cropped in the

past. FCIC does not believe this benefit will encourage tillage of

fragile and marginal lands in more arid regions. Growers will not

double-crop this land for four consecutive years to qualify for

prevented planting benefits in the fifth year.

So that these policy changes can take effect beginning with 1996

spring-planted crops, good cause is shown to make this rule effective

immediately upon filing with the Federal Register and without the 30-

day period required by the Administrative Procedure's Act to avoid the

pressures on FCIC to make changes after the contract change date as a

result of a large number of producers being prevented from planting

such as occurred during the 1995 crop year which resulted in confusion

among producers, insurance companies, and FSA with respect to the

program changes and increased losses.

Prevented planting changes to these policies were made by interim

rule for the 1995 crop year. Experience with those modifications

require certain changes which have been made by this rule. However, the

present policy effective for crop year 1995 fall-planted crops and

scheduled to be effective for 1996 spring-planted crops do not

adequately protect the producer who suffers a prevented planting loss.

The contract change date for 1996 spring-planted crops is November 30,

1995, and this rule must be effective for those crops. Therefore, good

cause is shown to make this rule effective in less than 30 days after

publication.

List of Subjects

7 CFR Part 401

Crop insurance, Hybrid sorghum seed, Reporting and recordkeeping

requirements, Rice.

7 CFR Part 443

Crop insurance, Hybrid seed, Reporting and recordkeeping

requirements.

7 CFR Part 457

Crop insurance, Reporting and recordkeeping requirements, Small

grains, Cotton, ELS cotton, Sunflower seed and coarse grains.

Final Rule

In this document, pursuant to the authority contained in the

Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), the

Federal Crop Insurance Corporation hereby amends the General Crop

Insurance Regulations (7 CFR part 401) by amending the Hybrid Sorghum

Seed (Sec. 401.109) and Rice (Sec. 401.120) Endorsements; the Hybrid

Seed Crop Insurance Policy (7 CFR 443.7(d)); and the Common Crop

Insurance Regulations (7 CFR part 457) by amending the Small Grains

(Sec. 457.101), Cotton (Sec. 457.104), Extra Long Staple Cotton

(Sec. 457.105), Sunflower Seed (Sec. 457.108), and Coarse Grains

(Sec. 457.113) Crop Insurance Provisions; applicable beginning with the

1996 crop year for spring crops with contract change dates on or after

November 30, 1995.

Accordingly, 7 CFR parts 401, 443, and 457 are amended as follows:

[[Page 62720]]

PART 401--[AMENDED]

1. The authority citation for 7 CFR part 401 is revised to read as

follows:

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

2. Section 401.109 is amended by revising paragraphs 12(a)(3),

12(b), and 12(d) of the Hybrid Sorghum Seed Endorsement to read as

follows:

Sec. 401.109 Hybrid sorghum seed endorsement.

* * * * *

12. Late Planting and Prevented Planting

(a) * * *

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

of insurance for timely planted acreage by:

(i) Fifty percent (0.50) and multiply the result by the 50 acres

you were prevented from planting, if the acreage is eligible for

prevented planting coverage, and if the acreage is left idle for the

crop year, or if a cover crop is planted not for harvest. Prevented

planting compensation hereunder will not be denied because the cover

crop is hayed or grazed; or

(ii) Twenty-five percent (0.25) and multiply the result by the

50 acres you were prevented from planting, if the acreage is

eligible for prevented planting coverage, and if you elect to plant

a substitute crop for harvest after the 10th day following the final

planting date for the insured crop. (This subparagraph (ii) is not

applicable, and prevented planting coverage is not available

hereunder, if you elected the Catastrophic Risk Protection

Endorsement or you elected to exclude prevented planting coverage

when a substitute crop is planted (see subparagraph 12(d)(1)(iii))).

The total of the three calculations will be the amount of

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

multiplying the per acre amount of insurance for timely planted

acreage by the 150 insured crop acres in the unit.

(b) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting the insured crop (see

subsection 13(o)), you may elect:

(i) To plant the insured crop during the late planting period.

The amount of insurance for such acreage will be determined in

accordance with paragraph 12(c)(1);

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, the amount of insurance

for such acreage will be fifty percent (50%) of the amount of

insurance for timely planted acres. For example, if your amount of

insurance for timely planted acreage is 200 dollars per acre, your

prevented planting amount of insurance would be 100 dollars per acre

(200 dollars multiplied by 0.50). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsections 8b through

e; or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting amount of insurance will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) An amount of insurance equal to twenty-five percent (25%) of

the amount of insurance for timely planted acres will be provided

for such acreage, if the substitute crop is planted after the tenth

day following the final planting date for the insured crop. If you

elected the Catastrophic Risk Protection Endorsement or excluded

this coverage, and plant a substitute crop, no prevented planting

coverage will be provided. For example, if your amount of insurance

for timely planted acreage is 200 dollars per acre, your prevented

planting amount of insurance would be 50 dollars per acre (200

dollars multiplied by 0.25). You may elect to exclude prevented

planting coverage when a substitute crop is planted for harvest and

receive a reduction in the applicable premium rate. If you wish to

exclude this coverage, you must so indicate, on or before the sales

closing date, on your application or on a form approved by us. Your

election to exclude this coverage will remain in effect from year to

year unless you notify us in writing on our form by the applicable

sales closing date for the crop year for which you wish to include

this coverage. All acreage of the crop insured under this policy

will be subject to this exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the yield upon which your amount of insurance is based.

(3) In addition to the provisions of section 7 (Insurance

Period) of the General Crop Insurance Policy (Sec. 401.8), the

insurance period for prevented planting coverage begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase a hybrid sorghum seed crop

insurance policy for the 1996 crop year, prevented planting coverage

will begin on the 1996 sales closing date for the insured crop in

the county. If the hybrid sorghum seed coverage remains in effect

for the 1997 crop year (is not terminated or cancelled during or

after the 1996 crop year, except the policy may have been cancelled

to transfer the policy to a different insurance provider, if there

is no lapse in coverage), prevented planting coverage for the 1997

crop year began on the 1996 sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

(i) Eligible acreage will not exceed the number of acres

required to be grown in the current crop year under a contract

executed with a seed company prior to the acreage reporting date.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iii) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section) unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes.

(iv) For the purpose of determining eligible acreage for

prevented planting coverage, acreage for all units will be combined

and be

[[Page 62721]]

reduced by the number of acres of the insured crop 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 FSA Farm Serial Number

which you insure as two separate optional units consisting of 50

acres each. If you planted 60 acres of the insured crop on one

optional unit and 40 acres of the insured crop on the second

optional unit, your prevented planting eligible acreage would be

reduced to zero (i.e., 100 acres eligible for prevented planting

coverage minus 100 acres planted equals zero).

(5) In accordance with the provisions of section 3 (Report of

Acreage, Share, and Practice (Acreage Report)) of the General Crop

Insurance Policy (Sec. 401.8), you must report by unit any insurable

acreage that you were prevented from planting. This report must be

submitted on or before the acreage reporting date. For the purpose

of determining acreage eligible for a prevented planting amount of

insurance the total amount of prevented planting and planted acres

cannot exceed the maximum number of acres eligible for prevented

planting coverage. Any acreage you report in excess of the number of

acres eligible for prevented planting coverage, or that exceeds the

number of eligible acres physically located in a unit, will be

deleted from your acreage report.

(6) If the amount of premium you are required to pay (gross

premium less our subsidy) for the prevented planting acreage exceeds

the prevented planting liability on a unit, prevented planting

coverage will not be provided for that unit (no premium will be due

and no indemnity will be paid for such acreage).

* * * * *

Sec. 401.109 [Amended].

3. Section 401.109 is amended by revising paragraph 13(o) to read

as follows:

* * * * *

13. Meaning of Terms

* * * * *

(o) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

4. Section 401.120 is amended by revising paragraphs 10(a)(3),

10(b), and 10(d) of the Rice Endorsement to read as follows:

Sec. 401.120 Rice endorsement.

* * * * *

10. Late Planting and Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Thirty-five percent (0.35) and multiply the result by the 50

acres you were prevented from planting, if the acreage is eligible

for prevented planting coverage, and if the acreage is left idle for

the crop year, or if a cover crop is planted not for harvest.

Prevented planting compensation hereunder will not be denied because

the cover crop is hayed or grazed; or

(ii) Seventeen and five tenths percent (0.175) and multiply the

result by the 50 acres you were prevented from planting, if the

acreage is eligible for prevented planting coverage, and if you

elect to plant a substitute crop for harvest after the 10th day

following the final planting date for the insured crop. (This

subparagraph (ii) is not applicable, and prevented planting coverage

is not available hereunder, if you elected the Catastrophic Risk

Protection Endorsement or you elected to exclude prevented planting

coverage when a substitute crop is planted (see subparagraph

10(d)(1)(iii))).

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) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting rice (see subsection

11(h)), you may elect:

(i) To plant rice during the late planting period. The

production guarantee for such acreage will be determined in

accordance with paragraph 10(c)(1);

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, the production guarantee

for such acreage will be thirty-five percent (35%) of the production

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

guarantee for timely planted acreage is 2000 pounds per acre, your

prevented planting production guarantee would be 700 pounds per acre

(2000 pounds multiplied by 0.35). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsections 7b and c;

or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) A production guarantee equal to seventeen and five tenths

percent (17.5%) of the production guarantee for timely planted acres

will be provided for such acreage, if the substitute crop is planted

after the tenth day following the final planting date for the

insured crop. If you elected the Catastrophic Risk Protection

Endorsement or excluded this coverage and plant a substitute crop,

no prevented planting coverage will be provided. For example, if

your production guarantee for timely planted acreage is 2000 pounds

per acre, your prevented planting production guarantee would be 350

pounds per acre (2000 pounds multiplied by 0.175). You may elect to

exclude prevented planting coverage when a substitute crop is

planted for harvest and receive a reduction in the applicable

premium rate. If you wish to exclude this coverage, you must so

indicate, on or before the sales closing date, on your application

or on a form approved by us. Your election to exclude this coverage

will remain in effect from year to year unless you notify us in

writing on our form by the applicable sales closing date for the

crop year for which you wish to include this coverage. All acreage

of the crop insured under this policy will be subject to this

exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

(3) In addition to the provisions of section 7 (Insurance

Period) of the General Crop Insurance Policy (Sec. 401.8), the

insurance period for prevented planting coverage begins:

(i) On the sales closing date contained in the Special

Provisions for rice in the county for the crop year the application

for insurance is accepted; or

(ii) For any subsequent crop year, on the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase a rice crop insurance policy

for the 1996 crop year, prevented planting coverage will begin on

the 1996 sales closing date for the insured crop in the county. If

the rice coverage remains in effect for the 1997 crop year (is not

terminated or cancelled during or after the 1996 crop year, except

the policy may have been cancelled to transfer the policy to a

different insurance provider, if there is no lapse in coverage),

prevented planting coverage for the 1997 crop year began on the 1996

sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

the United States Department of Agriculture that limits the number

of acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(A) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

[[Page 62722]]

(B) The number of acres planted to rice on the FSA Farm Serial

Number during the previous crop year; or

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

number of acres planted to rice during the crop years that you

certified to determine your yield.

(iii) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section) unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes.

(iv) 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 rice 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 FSA Farm Serial Number

which you insure as two separate optional units consisting of 50

acres each. If you planted 60 acres of rice on one optional unit and

40 acres of rice on the second optional unit, your prevented

planting eligible acreage would be reduced to zero (i.e., 100 acres

eligible for prevented planting coverage minus 100 acres planted

equals zero).

(5) In accordance with the provisions of section 3 (Report of

Acreage, Share, and Practice (Acreage Report) of the General Crop

Insurance Policy (Sec. 401.8), you must report by unit any insurable

acreage that you were prevented from planting. This report must be

submitted on or before the acreage reporting date. For the purpose

of determining acreage eligible for a prevented planting production

guarantee the total amount of prevented planting and planted acres

cannot exceed the maximum number of acres eligible for prevented

planting coverage. Any acreage you report in excess of the number of

acres eligible for prevented planting coverage, or that exceeds the

number of eligible acres physically located in a unit, will be

deleted from your acreage report.

(6) If the amount of premium you are required to pay (gross

premium less our subsidy) for the prevented planting acreage exceeds

the prevented planting liability on a unit, prevented planting

coverage will not be provided for that unit (no premium will be due

and no indemnity will be paid for such acreage).

* * * * *

5. Section 401.120 is amended by revising paragraph 11(h) to read

as follows:

* * * * *

11. Meaning of Terms

* * * * *

(h) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

PART 443--[AMENDED]

6. The authority citation for 7 CFR part 443 is revised to read as

follows:

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

7. Section 443.7(d) is amended by revising paragraphs 17(a)(3),

17(b), and 17(d) of the Hybrid Seed Crop Insurance Policy to read as

follows:

Sec. 443.7 The application and policy.

* * * * *

(d) * * *

17. Late Planting and Prevented Planting

(a) * * *

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

of insurance for timely planted acreage by:

(i) Forty percent (0.40) and multiply the result by the 50 acres

you were prevented from planting, if the acreage is eligible for

prevented planting coverage, and if the acreage is left idle for the

crop year, or if a cover crop is planted not for harvest. Prevented

planting compensation hereunder will not be denied because the cover

crop is hayed or grazed; or

(ii) Twenty percent (0.20) and multiply the result by the 50

acres you were prevented from planting, if the acreage is eligible

for prevented planting coverage, and if you elect to plant a

substitute crop for harvest after the 10th day following the final

planting date for the insured crop. (This subparagraph (ii) is not

applicable, and prevented planting coverage is not available

hereunder, if you elected the Catastrophic Risk Protection

Endorsement or you elected to exclude prevented planting coverage

when a substitute crop is planted (see subparagraph 17(d)(1)(iii))).

The total of the three calculations will be the amount of

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

multiplying the per acre amount of insurance for timely planted

acreage by the 150 insured crop acres in the unit.

(b) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting the insured crop (see

subsection 18(w)), you may elect:

(i) To plant the insured crop during the late planting period.

The amount of insurance for such acreage will be determined in

accordance with paragraph 17(c)(1);

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, the amount of insurance

for such acreage will be forty percent (40%) of the amount of

insurance for timely planted acres. For example, if your amount of

insurance for timely planted acreage is 200 dollars per acre, your

prevented planting amount of insurance would be 80 dollars per acre

(200 dollars multiplied by 0.40). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsection 9e.; or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting amount of insurance will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) An amount of insurance equal to twenty percent (20%) of the

amount of insurance for timely planted acres will be provided for

such acreage, if the substitute crop is planted after the tenth day

following the final planting date for the insured crop. If you

elected the Catastrophic Risk Protection Endorsement or excluded

this coverage, and plant a substitute crop, no prevented planting

coverage will be provided. For example, if your amount of insurance

for timely planted acreage is 200

[[Page 62723]]

dollars per acre, your prevented planting amount of insurance would be

40 dollars per acre (200 dollars multiplied by 0.20). You may elect

to exclude prevented planting coverage when a substitute crop is

planted for harvest and receive a reduction in the applicable

premium rate. If you wish to exclude this coverage, you must so

indicate, on or before the sales closing date, on your application

or on a form approved by us. Your election to exclude this coverage

will remain in effect from year to year unless you notify us in

writing on our form by the applicable sales closing date for the

crop year for which you wish to include this coverage. All acreage

of the crop insured under this policy will be subject to this

exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the yield upon which your amount of insurance is based.

(3) In addition to the provisions of section 7 (Insurance

Period), the insurance period for prevented planting coverage

begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase a hybrid seed crop insurance

policy for the 1996 crop year, prevented planting coverage will

begin on the 1996 sales closing date for the insured crop in the

county. If the hybrid seed coverage remains in effect for the 1997

crop year (is not terminated or canceled during or after the 1996

crop year, except the policy may have been canceled to transfer the

policy to a different insurance provider, if there is no lapse in

coverage), prevented planting coverage for the 1997 crop year began

on the 1996 sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

(i) Eligible acreage will not exceed the number of acres

required to be grown in the current crop year under a contract

executed with a seed company prior to the acreage reporting date.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iii) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section) unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes.

(iv) 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 acres of the insured crop 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 FSA Farm

Serial Number which you insure as two separate optional units

consisting of 50 acres each. If you planted 60 acres of the insured

crop on one optional unit and 40 acres of the insured crop on the

second optional unit, your prevented planting eligible acreage would

be reduced to zero (i.e., 100 acres eligible for prevented planting

coverage minus 100 acres planted equals zero).

(5) In accordance with the provisions of section 3 (Report of

Acreage, Share, Type and Practice), you must report by unit any

insurable acreage that you were prevented from planting. This report

must be submitted on or before the acreage reporting date. For the

purpose of determining acreage eligible for a prevented planting

amount of insurance the total amount of prevented planting and

planted acres cannot exceed the maximum number of acres eligible for

prevented planting coverage. Any acreage you report in excess of the

number of acres eligible for prevented planting coverage, or that

exceeds the number of eligible acres physically located in a unit,

will be deleted from your acreage report.

(6) If the amount of premium you are required to pay (gross

premium less our subsidy) for the prevented planting acreage exceeds

the prevented planting liability on a unit, prevented planting

coverage will not be provided for that unit (no premium will be due

and no indemnity will be paid for such acreage).

* * * * *

8. Section 443.7(d) is amended by revising paragraph 18(w) to read

as follows:

* * * * *

18. Meaning of Terms

* * * * *

(w) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

PART 457--[AMENDED]

9. The authority citation for 7 CFR part 457 is revised to read as

follows:

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

10. Section 457.101 is amended by revising paragraph l(p) of the

Small Grains Crop Provisions to read as follows:

Sec. 457.101 Small Grains Crop Insurance.

* * * * *

1. Definitions

* * * * *

(p) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

11. Section 457.101 is amended by revising paragraphs 12(a)(3),

12(b), and 12(d) to read as follows:

* * * * *

12. Late Planting and Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Fifty percent (0.50) and multiply the result by the 50 acres

you were prevented

[[Page 62724]]

from planting, if the acreage is eligible for prevented planting

coverage, and if the acreage is left idle for the crop year, or if a

cover crop is planted not for harvest. Prevented planting

compensation hereunder will not be denied because the cover crop is

hayed or grazed; or

(ii) Twenty-five percent (0.25) and multiply the result by the

50 acres you were prevented from planting, if the acreage is

eligible for prevented planting coverage, and if you elect to plant

a substitute crop for harvest after the 10th day following the

latest final planting date for the insured crop. (This subparagraph

(ii) is not applicable, and prevented planting coverage is not

available hereunder, if you elected the Catastrophic Risk Protection

Endorsement or you elected to exclude prevented planting coverage

when a substitute crop is planted (see subparagraph 12(d)(1)(iii))).

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) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting the insured crop (see

subsection 1(p)), you may elect:

(i) To plant the insured crop during the late planting period.

The production guarantee for such acreage will be determined in

accordance with paragraph 12(c)(1);

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, the production guarantee

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

guarantee for timely planted acres. In counties for which the

Special Provisions designate a spring final planting date, the

prevented planting guarantee will be based on your approved yield

for spring-planted acreage of the insured crop. For example, if your

production guarantee for timely planted acreage is 30 bushels per

acre, your prevented planting production guarantee would be 15

bushels per acre (30 bushels multiplied by 0.50). If you elect to

plant the insured crop after the late planting period, production to

count for such acreage will be determined in accordance with

subsections 11(c) through (e); or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the latest final planting date for the insured

crop; or

(B) A production guarantee equal to twenty-five percent (25%) of

the production guarantee for timely planted acres will be provided

for such acreage, if the substitute crop is planted after the tenth

day following the latest final planting date for the insured crop.

If you elected the Catastrophic Risk Protection Endorsement or

excluded this coverage, and plant a substitute crop, no prevented

planting coverage will be provided. For example, if your production

guarantee for timely planted acreage is 30 bushels per acre, your

prevented planting production guarantee would be 7.5 bushels per

acre (30 bushels multiplied by 0.25). You may elect to exclude

prevented planting coverage when a substitute crop is planted for

harvest and receive a reduction in the applicable premium rate. If

you wish to exclude this coverage, you must so indicate, on or

before the sales closing date, on your application or on a form

approved by us. Your election to exclude this coverage will remain

in effect from year to year unless you notify us in writing on our

form by the applicable sales closing date for the crop year for

which you wish to include this coverage. All acreage of the crop

insured under this policy will be subject to this exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

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

Period) of the Common Crop Insurance Policy (Sec. 457.8), the

insurance period for prevented planting coverage begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase insurance for wheat for the

1996 crop year, prevented planting coverage will begin on the 1996

sales closing date for the insured crop in the county. If the wheat

coverage remains in effect for the 1997 crop year (is not terminated

or cancelled during or after the 1996 crop year, except the policy

may have been cancelled to transfer the policy to a different

insurance provider, if there is no lapse in coverage), prevented

planting coverage for the 1997 crop year began on the 1996 sales

closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

the United States Department of Agriculture that limits the number

of acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(A) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

(B) The number of acres planted to the insured crop on the FSA

Farm Serial Number during the previous crop year; or

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

number of acres planted to the insured crop during the crop years

that you certified to determine your yield.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iv) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section) unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes.

(v) For the purpose of determining eligible acreage for

prevented planting coverage,

[[Page 62725]]

acreage for all units will be combined and be reduced by the number of

acres of the insured crop that are timely planted and late planted,

if the late planting period is applicable. 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

FSA Farm Serial Number which you insure as two separate optional

units consisting of 50 acres each. If you planted 60 acres of the

insured crop on one optional unit and 40 acres of the insured crop

on the second optional unit, your prevented planting eligible

acreage would be reduced to zero (i.e., 100 acres eligible for

prevented planting coverage minus 100 acres planted equals zero).

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

Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must

report by unit any insurable acreage that you were prevented from

planting. This report must be submitted on or before the acreage

reporting date for spring-planted acreage of the insured crop in

counties for which the Special Provisions designates a spring final

planting date, or the acreage reporting date for fall-planted

acreage of the insured crop in counties for which the Special

Provisions designates a fall final planting date only. For the

purpose of determining acreage eligible for a prevented planting

production guarantee the total amount of prevented planting and

planted acres cannot exceed the maximum number of acres eligible for

prevented planting coverage. Any acreage you report in excess of the

number of acres eligible for prevented planting coverage, or that

exceeds the number of eligible acres physically located in a unit,

will be deleted from your acreage report.

* * * * *

12. Section 457.104 is amended by revising paragraph 1(n) of the

Cotton Crop Provisions to read as follows:

Sec. 457.104 Cotton crop insurance provisions.

* * * * *

1. Definitions

* * * * *

(n) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

13. Section 457.104 is amended by revising paragraphs 12(a)(3),

12(b), and 12(d) to read as follows:

* * * * *

12. Late Planting and Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Thirty-five percent (0.35) and multiply the result by the 50

acres you were prevented from planting, if the acreage is eligible

for prevented planting coverage, and if the acreage is left idle for

the crop year, or if a cover crop is planted not for harvest.

Prevented planting compensation hereunder will not be denied because

the cover crop is hayed or grazed; or

(ii) Seventeen and five tenths percent (0.175) and multiply the

result by the 50 acres you were prevented from planting, if the

acreage is eligible for prevented planting coverage, and if you

elect to plant a substitute crop for harvest after the 10th day

following the final planting date for the insured crop. (This

subparagraph (ii) is not applicable, and prevented planting coverage

is not available hereunder, if you elected the Catastrophic Risk

Protection Endorsement or you elected to exclude prevented planting

coverage when a substitute crop is planted (see subparagraph

12(d)(1)(iii))).

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) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting cotton (see subsection

1(n)), you may elect:

(i) To plant cotton during the late planting period. The

production guarantee for such acreage will be determined in

accordance with paragraph 12(c)(1);

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, the production guarantee

for such acreage will be thirty-five percent (35%) of the production

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

guarantee for timely planted acreage is 700 pounds per acre, your

prevented planting production guarantee would be 245 pounds per acre

(700 pounds multiplied by 0.35). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsections 11 (c) and

(d); or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) A production guarantee equal to seventeen and five tenths

percent (17.5%) of the production guarantee for timely planted acres

will be provided for such acreage, if the substitute crop is planted

after the tenth day following the final planting date for the

insured crop. If you elected the Catastrophic Risk Protection

Endorsement or excluded this coverage, and plant a substitute crop,

no prevented planting coverage will be provided. For example, if

your production guarantee for timely planted acreage is 700 pounds

per acre, your prevented planting production guarantee would be

122.5 pounds per acre (700 pounds multiplied by 0.175). You may

elect to exclude prevented planting coverage when a substitute crop

is planted for harvest and receive a reduction in the applicable

premium rate. If you wish to exclude this coverage, you must so

indicate, on or before the sales closing date, on your application

or on a form approved by us. Your election to exclude this coverage

will remain in effect from year to year unless you notify us in

writing on our form by the applicable sales closing date for the

crop year for which you wish to include this coverage. All acreage

of the crop insured under this policy will be subject to this

exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

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

Period) of the Common Crop Insurance Policy (Sec. 457.8), the

insurance period for prevented planting coverage begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase a cotton crop insurance policy

for the 1996 crop year, prevented planting coverage will begin on

the 1996 sales closing date for the cotton crop in the county. If

the cotton coverage remains in effect for the 1997 crop year (is not

terminated or cancelled during or after the 1996 crop year, except

the policy may have been cancelled to transfer the policy to a

different insurance provider, if there is no lapse in coverage),

prevented planting coverage for the 1997 crop year began on the 1996

sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

the United States Department of Agriculture that limits the number

of acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(A) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

(B) The number of acres planted to cotton on the FSA Farm Serial

Number during the previous crop year; or

[[Page 62726]]

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

number of acres planted to cotton during the crop years that you

certified to determine your yield.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iv) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section) unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained 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 cotton 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 FSA Farm Serial Number

which you insure as two separate optional units consisting of 50

acres each. If you planted 60 acres of cotton on one optional unit

and 40 acres of cotton on the second optional unit, your prevented

planting eligible acreage would be reduced to zero (i.e., 100 acres

eligible for prevented planting coverage minus 100 acres planted

equals zero).

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

Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must

report by unit any insurable acreage that you were prevented from

planting. This report must be submitted on or before the acreage

reporting date. For the purpose of determining acreage eligible for

a prevented planting production guarantee the total amount of

prevented planting and planted acres cannot exceed the maximum

number of acres eligible for prevented planting coverage. Any

acreage you report in excess of the number of acres eligible for

prevented planting coverage, or that exceeds the number of eligible

acres physically located in a unit, will be deleted from your

acreage report.

* * * * *

14. Section 457.105 is amended by revising paragraph 1(l) of the

ELS Cotton Crop Provisions to read as follows:

Sec. 457.105 Extra long staple cotton crop insurance provisions.

* * * * *

1. Definitions

* * * * *

(l) Prevented planting--Inability 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. You must have

been unable 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.

* * * * *

15. Section 457.105 is amended by revising paragraphs 12(a)(2) and

12 (b) through (h) to read as follows:

* * * * *

12. Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Thirty-five percent (0.35) and multiply the result by the 50

acres you were prevented from planting, if the acreage is eligible

for prevented planting coverage, and if the acreage is left idle for

the crop year, or if a cover crop is planted not for harvest.

Prevented planting compensation hereunder will not be denied because

the cover crop is hayed or grazed; or

(ii) Seventeen and five tenths percent (0.175) and multiply the

result by the 50 acres you were prevented from planting, if the

acreage is eligible for prevented planting coverage, and if you

elect to plant a substitute crop for harvest after the 10th day

following the final planting date for the insured crop. (This

subparagraph (ii) is not applicable, and prevented planting coverage

is not available hereunder, if you elected the Catastrophic Risk

Protection Endorsement or you elected to exclude prevented planting

coverage when a substitute crop is planted (see subsection

12(b)(2))).

The total of the two 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 100 acres in the unit.

(b) If you were prevented from planting ELS cotton (see

subsection 1(l)), you may elect:

(1) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the final planting date. In either case, the production guarantee

for such acreage will be thirty-five percent (35%) of the production

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

guarantee for timely planted acreage is 600 pounds per acre, your

prevented planting production guarantee would be 210 pounds per acre

(600 pounds multiplied by 0.35). If you elect to plant the insured

crop after the final planting date, production to count for such

acreage will be determined in accordance with subsections 11(c)

through (f); or

(2) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) A production guarantee equal to seventeen and five tenths

percent (17.5%) of the production guarantee for timely planted acres

will be provided for such acreage, if the substitute crop is planted

after the tenth day following the final planting date for the

insured crop. If you elected the Catastrophic Risk Protection

Endorsement or excluded this coverage, and plant a substitute crop,

no prevented planting coverage will be provided. For example, if

your production guarantee for timely planted acreage is 700 pounds

per acre, your prevented planting production guarantee would be

122.5 pounds per acre (700 pounds multiplied by 0.175). You may

elect to exclude prevented planting coverage when a substitute crop

is planted for harvest and receive a reduction in the applicable

premium rate. If you wish to exclude this coverage, you must so

indicate, on or before the sales closing date, on your application

or on a form approved by us. Your election to exclude this coverage

will remain in effect from year to year unless you notify us in

writing on our form by the applicable sales closing date for the

crop year for which you wish to include this coverage. All acreage

of the crop insured under this policy will be subject to this

exclusion.

(c) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

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

Period) of the Common Crop Insurance Policy (Sec. 457.8), the

insurance

[[Page 62727]]

period for prevented planting coverage begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase an ELS cotton crop insurance

policy for the 1996 crop year, prevented planting coverage will

begin on the 1996 sales closing date for the insured crop in the

county. If the ELS cotton coverage remains in effect for the 1997

crop year (is not terminated or cancelled during or after the 1996

crop year, except the policy may have been cancelled to transfer the

policy to a different insurance provider, if there is no lapse in

coverage), prevented planting coverage for the 1997 crop year began

on the 1996 sales closing date.

(e) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

(f) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

United States Department of Agriculture that limits the number of

acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(i) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

(ii) The number of acres planted to ELS cotton on the FSA Farm

Serial Number during the previous crop year; or

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

number of acres planted to ELS cotton during the crop years that you

certified to determine your yield.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(4) Prevented planting coverage will not be provided for any

acreage:

(i) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(ii) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(iii) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(iv) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year;

(v) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(2)(i) of this

section, or a substitute crop allowed in paragraph (a)(2)(ii) of

this section);

(vi) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year. If

you have a Catastrophic Risk Protection Endorsement and receive a

prevented planting indemnity, guarantee, or amount of insurance for

a crop and are prevented from planting another crop on the same

acreage, you may only receive the prevented planting indemnity,

guarantee, or amount of insurance for the crop on which the

prevented planting indemnity, guarantee, or amount of insurance is

received; or

(vii) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes.

(5) 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 ELS cotton acres timely 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 FSA Farm Serial Number which you insure as

two separate optional units consisting of 50 acres each. If you

planted 60 acres of ELS cotton on one optional unit and 40 acres of

ELS cotton on the second optional unit, your prevented planting

eligible acreage would be reduced to zero. (i.e., 100 acres eligible

for prevented planting coverage minus 100 acres planted equals

zero).

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

Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must

report by unit any insurable acreage that you were prevented from

planting. This report must be submitted on or before the acreage

reporting date. For the purpose of determining acreage eligible for

a prevented planting production guarantee the total amount of

prevented planting and planted acres cannot exceed the maximum

number of acres eligible for prevented planting coverage. Any

acreage you report in excess of the number of acres eligible for

prevented planting coverage, or that exceeds the number of eligible

acres physically located in a unit, will be deleted from your

acreage report.

(h) Late planting provisions are not available under these crop

provisions.

* * * * *

16. Section 457.108 is amended by revising paragraph 1(l) of the

Sunflower Seed Crop Provisions to read as follows:

Sec. 457.108 Sunflower seed crop insurance provisions.

* * * * *

1. Definitions

* * * * *

(1) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

17. Section 457.108 is amended by revising paragraphs 13(a)(3),

13(b), and 13(d) to read as follows:

* * * * *

13. Late Planting and Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Fifty percent (0.50) and multiply the result by the 50 acres

you were prevented from planting, if the acreage is eligible for

prevented planting coverage, and if the acreage is left idle for the

crop year, or if a cover crop is planted not for harvest. Prevented

planting compensation hereunder will not be denied because the cover

crop is hayed or grazed; or

(ii) Twenty-five percent (0.25) and multiply the result by the

50 acres you were prevented from planting, if the acreage is

eligible for prevented planting coverage, and if you elect to plant

a substitute crop for harvest after the 10th day following the final

planting date for the insured crop. (This subparagraph (ii) is not

applicable, and prevented planting coverage is not available

hereunder, if you elected the Catastrophic Risk Protection

Endorsement or you elected to exclude prevented planting coverage

when a substitute crop is planted (see subsection 13(d)(1)(iii))).

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) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date .

* * * * *

(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);

[[Page 62728]]

(ii) Not to plant this acreage to any crop except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, 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 450 pounds per acre

(900 pounds multiplied by 0.50). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsections 12 (c)

through (e); or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) A production guarantee equal to twenty-five percent (25%) of

the production guarantee for timely planted acres will be provided

for such acreage, if the substitute crop is planted after the tenth

day following the final planting date for the insured crop. If you

elected the Catastrophic Risk Protection Endorsement or excluded

this coverage, and plant a substitute crop, no prevented planting

coverage will be provided. For example, if your production guarantee

for timely planted acreage is 900 pounds per acre, your prevented

planting production guarantee would be 225 pounds per acre (900

pounds multiplied by 0.25). You may elect to exclude prevented

planting coverage when a substitute crop is planted for harvest and

receive a reduction in the applicable premium rate. If you wish to

exclude this coverage, you must so indicate, on or before the sales

closing date, on your application or on a form approved by us. Your

election to exclude this coverage will remain in effect from year to

year unless you notify us in writing on our form by the applicable

sales closing date for the crop year for which you wish to include

this coverage. All acreage of the crop insured under this policy

will be subject to this exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

(3) 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) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase a sunflower seed crop insurance

policy for the 1996 crop year, prevented planting coverage will

begin on the 1996 sales closing date for the insured crop in the

county. If the sunflower seed coverage remains in effect for the

1997 crop year (is not terminated or cancelled during or after the

1996 crop year, except the policy may have been cancelled to

transfer the policy to a different insurance provider, if there is

no lapse in coverage), prevented planting coverage for the 1997 crop

year began on the 1996 sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

the United States Department of Agriculture that limits the number

of acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(A) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

(B) The number of acres planted to sunflower seed on the FSA

Farm Serial Number during the previous crop year; or

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

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

you certified to determine your yield.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iv) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section), unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if you plant another crop for harvest on any

acreage you were prevented from planting in the same crop year, even

if you have a history of double cropping. If you have a Catastrophic

Risk Protection Endorsement and receive a prevented planting

indemnity, guarantee, or amount of insurance for a crop and are

prevented from planting another crop on the same acreage, you may

only receive the prevented planting indemnity, guarantee, or amount

of insurance for the crop on which the prevented planting indemnity,

guarantee, or amount of insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained 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 FSA 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 (i.e.,100 acres eligible for prevented planting coverage minus

100 acres planted equals zero).

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

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

unit any insurable acreage that you were prevented from planting.

This report must be submitted on or before the acreage reporting

date. For the purpose of determining acreage eligible for a

prevented planting production guarantee the total amount of

prevented planting and planted acres cannot exceed the maximum

number of acres eligible for prevented planting coverage. Any

acreage you report in excess of the number of acres eligible for

prevented planting coverage, or that exceeds the number of eligible

acres physically located in a unit, will be deleted from your

acreage report.

* * * * *

18. Section 457.113 is amended by revising paragraph 1(n) of the

Coarse Grains Crop Provisions to read as follows:

Sec. 457.113 Coarse grains crop insurance provisions.

* * * * *

1. Definitions

* * * * *

[[Page 62729]]

(n) Prevented planting--Inability 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 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 the

majority of producers in the surrounding area from planting the same

crop.

* * * * *

19. Section 457.113 is amended by revising paragraphs 13(a)(3),

13(b), and 13(d) to read as follows:

* * * * *

13. Late Planting and Prevented Planting

(a) * * *

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

production guarantee for timely planted acreage by:

(i) Fifty percent (0.50) and multiply the result by the 50 acres

you were prevented from planting, if the acreage is eligible for

prevented planting coverage, and if the acreage is left idle for the

crop year, or if a cover crop is planted not for harvest. Prevented

planting compensation hereunder will not be denied because the cover

crop is hayed or grazed; or

(ii) Twenty-five percent (0.25) and multiply the result by the

50 acres you were prevented from planting, if the acreage is

eligible for prevented planting coverage, and if you elect to plant

a substitute crop for harvest after the 10th day following the final

planting date for the insured crop. (This subparagraph (ii) is not

applicable, and prevented planting coverage is not available

hereunder, if you elected the Catastrophic Risk Protection

Endorsement or you elected to exclude prevented planting coverage

when a substitute crop is planted (see subsection 13(d)(1)(iii)).)

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) If you were prevented from planting, you must provide

written notice to us not later than the acreage reporting date.

* * * * *

(d) Prevented Planting (Including Planting After the Late

Planting Period).

(1) If you were prevented from planting the insured crop (see

subsection 1(n)), you may elect:

(i) To plant the insured crop 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 except a cover crop

not for harvest. You may also elect to plant the insured crop after

the late planting period. In either case, 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 30 bushels per acre, your

prevented planting production guarantee would be 15 bushels per acre

(30 bushels multiplied by 0.50). If you elect to plant the insured

crop after the late planting period, production to count for such

acreage will be determined in accordance with subsections 12(c)

through (g); or

(iii) Not to plant the intended crop but plant a substitute crop

for harvest, in which case:

(A) No prevented planting production guarantee will be provided

for such acreage if the substitute crop is planted on or before the

tenth day following the final planting date for the insured crop; or

(B) A production guarantee equal to twenty-five percent (25%) of

the production guarantee for timely planted acres will be provided

for such acreage, if the substitute crop is planted after the tenth

day following the final planting date for the insured crop. If you

elected the Catastrophic Risk Protection Endorsement or excluded

this coverage, and plant a substitute crop, no prevented planting

coverage will be provided. For example, if your production guarantee

for timely planted acreage is 30 bushels per acre, your prevented

planting production guarantee would be 7.5 bushels per acre (30

bushels multiplied by 0.25). You may elect to exclude prevented

planting coverage when a substitute crop is planted for harvest and

receive a reduction in the applicable premium rate. If you wish to

exclude this coverage, you must so indicate, on or before the sales

closing date, on your application or on a form approved by us. Your

election to exclude this coverage will remain in effect from year to

year unless you notify us in writing on our form by the applicable

sales closing date for the crop year for which you wish to include

this coverage. All acreage of the crop insured under this policy

will be subject to this exclusion.

(2) Proof may be required that you had the inputs available to

plant and produce the intended crop with the expectation of at least

producing the production guarantee.

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

Period) of the Common Crop Insurance Policy (Sec. 457.8), the

insurance period for prevented planting coverage begins:

(i) On 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 the sales closing date for

the insured crop in the county for the previous crop year, provided

continuous coverage has been in effect since that date. For example:

If you make application and purchase insurance for corn for the 1996

crop year, prevented planting coverage will begin on the 1996 sales

closing date for corn in the county. If the corn coverage remains in

effect for the 1997 crop year (is not terminated or canceled during

or after the 1996 crop year, except the policy may have been

canceled to transfer the policy to a different insurance provider,

if there is no lapse in coverage), prevented planting coverage for

the 1997 crop year began on the 1996 sales closing date.

(4) The acreage to which prevented planting coverage applies

will not exceed the total eligible acreage on all Farm Service

Agency (FSA) Farm Serial Numbers in which you have a share, adjusted

for any reconstitution that may have occurred on or before the sales

closing date. Eligible acreage for each FSA Farm Serial Number is

determined as follows:

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

States Department of Agriculture that limits the number of acres

that may be planted for the crop year, the acreage eligible for

prevented planting coverage will not exceed the total acreage

permitted to be planted to the insured crop.

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

the United States Department of Agriculture that limits the number

of acres that may be planted, and unless we agree in writing on or

before the sales closing date, eligible acreage will not exceed the

greater of:

(A) The FSA base acreage for the insured crop, including acres

that could be flexed from another crop, if applicable;

(B) The number of acres planted to the insured crop on the FSA

Farm Serial Number during the previous crop year; or

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

number of acres planted to the insured crop during the crop years

that you certified to determine your yield.

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

will be limited to the number of acres for which you had adequate

irrigation facilities prior to the insured cause of loss which

prevented you from planting.

(iv) Prevented planting coverage will not be provided for any

acreage:

(A) That does not constitute at least 20 acres or 20 percent

(20%) of the acreage in the unit, whichever is less (Acreage that is

less than 20 acres or 20 percent of the acreage in the unit will be

presumed to have been intended to be planted to the insured crop

planted in the unit, unless you can show that you had the inputs

available before the final planting date to plant and produce

another insured crop on the acreage);

(B) For which the actuarial table does not designate a premium

rate unless a written agreement designates such premium rate;

(C) Used for conservation purposes or intended to be left

unplanted under any program administered by the United States

Department of Agriculture;

(D) On which another crop is prevented from being planted, if

you have already received a prevented planting indemnity, guarantee

or amount of insurance for the same acreage in the same crop year,

unless you provide adequate records of acreage and production

showing that the acreage has a history of double-cropping in each of

the last four years;

(E) On which the insured crop is prevented from being planted,

if any other crop is planted and fails, or is planted and harvested,

hayed or grazed on the same acreage in the same crop year, (other

than a cover crop as specified in paragraph (a)(3)(i) of this

section, or a substitute crop allowed in paragraph (a)(3)(ii) of

this section), unless you provide adequate records of acreage and

production showing that the acreage has a history of double-cropping

in each of the last four years;

(F) When coverage is provided under the Catastrophic Risk

Protection Endorsement if

[[Page 62730]]

you plant another crop for harvest on any acreage you were prevented

from planting in the same crop year, even if you have a history of

double cropping. If you have a Catastrophic Risk Protection

Endorsement and receive a prevented planting indemnity, guarantee,

or amount of insurance for a crop and are prevented from planting

another crop on the same acreage, you may only receive the prevented

planting indemnity, guarantee, or amount of insurance for the crop

on which the prevented planting indemnity, guarantee, or amount of

insurance is received; or

(G) For which planting history or conservation plans indicate

that the acreage would have remained 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 acres of the insured crop 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 FSA Farm

Serial Number which you insure as two separate optional units

consisting of 50 acres each. If you planted 60 acres of the insured

crop on one optional u

This text is long and has been trimmed here. Open the source document for the complete record.