Common Crop Insurance Regulations; Guaranteed Production Plan of Fresh Market Tomato Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

7 CFR Part 457

Common Crop Insurance Regulations; Guaranteed Production Plan of

Fresh Market Tomato Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes

specific crop provisions for the insurance of fresh market tomatoes.

The provisions will be used in conjunction with the Common Crop

Insurance Policy Basic Provisions, which contain standard terms and

conditions common to most crops. The intended effect of this action is

to provide policy changes to better meet the needs of the insured and

combine the current Fresh Market Tomato (Guaranteed Production Plan)

Crop Insurance Regulations with the Common Crop Insurance Policy for

ease of use and consistency of terms.

[[Page 48424]]

DATES: Written comments, data, and opinions on this proposed rule will

be accepted until close of business October 15, 1996, and will be

considered when the rule is to be made final. The comment period for

information collections under the Paperwork Reduction Act of 1995

continues through November 12, 1996.

ADDRESSES: Interested persons are invited to submit written comments to

the Chief, Product Development Branch, Federal Crop Insurance

Corporation, United States Department of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131. Written comments will be available for public

inspection and copying in room 0324, South Building, United States

Department of Agriculture, 14th and Independence Avenue, SW.,

Washington, DC, 8:15 a.m.-4:45 p.m., est Monday through Friday, except

holidays.

FOR FURTHER INFORMATION CONTACT: Louise Narber, Program Analyst,

Research and Development Division, Product Development Branch, Federal

Crop Insurance Corporation, at the Kansas City, MO, address listed

above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

This action has been reviewed under United States Department of

Agriculture (USDA) procedures established by Executive Order No. 12866.

This action constitutes a review as to the need, currency, clarity, and

effectiveness of these regulations under those procedures. The sunset

review date established for these regulations is May 15, 2001.

This rule has been determined to be not significant for the

purposes of Executive Order No. 12866 and, therefore, has not been

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

Paperwork Reduction Act of 1995

The information collection requirements contained in these

regulations were previously approved by OMB pursuant to the Paperwork

Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number

0563-0003 through September 30, 1998.

The amendments set forth in this proposed rule do not contain

additional information collections that require clearance by the OMB

under the provisions of 44 U.S.C. chapter 35.

The title of this information collection is ``Catastrophic Risk

Protection Plan and Related Requirements including, Common Crop

Insurance Regulations; Guaranteed Production Plan of Fresh Market

Tomato Crop Insurance Provisions.'' The information to be collected

includes: a crop insurance application and an acreage report.

Information collected from the application and acreage report and is

electronically submitted to FCIC by the reinsured companies. Potential

respondents to this information collection are producers of fresh

market tomatoes that are eligible for Federal crop insurance.

The information requested is necessary for the reinsured companies

and FCIC to provide insurance and reinsurance, determine eligibility,

determine the correct parties to the agreement or contract, determine

and collect premiums or other monetary amounts, and pay benefits.

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 1,755,015

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

collection is 2,676,932 hours.

Comments should be submitted for 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 of respondents, including through the use

of automated collection techniques or other forms of information

gathering technology.

Comments regarding paperwork reduction should be submitted to the

Desk Officer for Agriculture, Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, D.C. 20503 and to

Bonnie Hart, United States Department of Agriculture, Farm Service

Agency, Advisory and Corporate Operations Staff, Regulatory Review

Group, P.O. Box 2145, STOP 0572, Washington, D.C. 20013-2415, telephone

(202) 690-2857. Copies of the information collection may be obtained

from Bonnie Hart at the above address.

Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public

Law 104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on State, local, and tribal

governments and the private sector. This rule contains no Federal

mandates (under the regulatory provisions of title II of the UMRA) for

State, local, and tribal governments or the private sector. Thus, this

rule is not subject to the requirements of sections 202 and 205 of the

UMRA.

Executive Order No. 12612

It has been determined under section 6(a) of Executive Order No.

12612, Federalism, that this rule does not have sufficient Federalism

implications to warrant the preparation of a Federalism Assessment. The

provisions contained in this rule will not have a substantial direct

effect on States or their political subdivisions, or on the

distribution of power and responsibilities among various levels of

Government.

Regulatory Flexibility Act

This regulation will not have a significant impact on a substantial

number of small entities. New provisions included in this rule will not

impact small entities to a greater extent than large entities. Under

the current regulations, a producer is required to complete an

application and acreage report. If the crop is damaged or destroyed,

the insured is required to give notice of loss and provide the

necessary information to complete a claim for indemnity. The insured

must also annually certify to the previous years production or receive

an assigned yield. The producer must maintain the production records to

support the certified information for at least 3 years. This regulation

does not alter those requirements. The amount of work required of the

insurance companies delivering and servicing these policies will not

increase significantly from the amount of work currently required. This

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

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

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

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with State and

local officials. See the Notice related to 7 CFR part 3015, subpart V,

published at 48 FR 29115, June 24, 1983.

[[Page 48425]]

Executive Order No. 12778

The Office of the General Counsel has determined that these

regulations meet the applicable standards provided in sections 2(a) and

2(b)(2) of Executive Order No. 12778. The provisions of this rule will

not have a retroactive effect prior to the effective date. The

provisions of this rule will preempt State and local laws to the extent

such State and local laws are inconsistent herewith. The administrative

appeal provisions published at 7 CFR parts 11 and 780 must be exhausted

before action for judicial review may be brought.

Environmental Evaluation

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

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

neither an Environmental Assessment nor an Environmental Impact

Statement is needed.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review initiative to eliminate unnecessary or duplicative

regulations and improve those that remain in force.

Background

FCIC proposes to add to the Common Crop Insurance Regulations (7

CFR part 457), a new section, 7 CFR 457.128, Guaranteed Production Plan

of Fresh Market Tomato Crop Insurance Provisions. The new provisions

will be effective for the 1997 and succeeding crop years. These

provisions will supersede and replace the current provisions for

insuring fresh market tomatoes found at 7 CFR part 454 (Fresh Market

Tomato (Guaranteed Production Plan) Crop Insurance Regulations).

By separate rule, FCIC will revise 7 CFR part 454 to restrict its

effect through the 1997 crop year and later remove that part.

This rule makes minor editorial and format changes to improve the

Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance

Regulations' compatibility with the Common Crop Insurance Policy. In

addition, FCIC is proposing substantive changes in the provisions for

insuring fresh market tomatoes as follows:

1. Section 1--Add definitions for the terms ``carton,'' ``days,''

``direct marketing,'' ``FSA,'' ``good farming practices,'' ``irrigated

practice,'' ``planting period,'' ``practical to replant,'' ``production

guarantee (per acre),'' ``row width,'' and ``written agreement'' for

clarification. Delete the definition of ``county'' so that the

definition of ``county'' contained in the Basic Provisions (Sec. 457.8)

will be applicable for fresh market tomatoes. The definition of county

in part 454 includes additional land located in a local producing area

bordering on the county. The current definition will require such land

to be insured using the actuarial materials for the county where the

land is located.

2. Section 2--Add a provision for dividing a basic unit by planting

period if spring and fall planting periods are provided in the Special

Provisions.

3. Section 3--Specify that the insured may select only one price

election for all the tomatoes in the county insured under the policy,

unless the Special Provisions provide different price elections by

type, in which case the insured may select one price election for each

tomato type designated in the Special Provisions. Each price election

chosen for each type must have the same percentage relationship to the

maximum price offered by the insurance provider.

4. Section 4--Change the contract change date from November 30 to

September 30 for counties with the new January 15 cancellation date to

assure adequate time for producers to become familiar with any policy

changes.

5. Section 5--Change the cancellation and termination dates from

February 15 to January 15 and from April 15 to March 15 to be

consistent with the movement of the sales closing dates as required by

the Federal Crop Insurance Reform Act.

6. Section 6--Add a provision to specify that the insured must

report all the information required in section 6 of the Basic

Provisions by the acreage reporting date for each planting period, if

spring and fall planting periods are allowed in the Special Provisions.

7. Section 7--Add a provision to specify that when computing the

premium, the share at the time of each planting will be used in the

premium calculation.

8. Section 8--Add a provision to specify that plum type tomatoes

are not insurable. Cherry type tomatoes are already excluded from

insurance coverage. The current provisions are not compatible with the

characteristics of these types of tomatoes. Also add a provision to

require that the tomato crop be planted within the applicable spring or

fall planting periods to be insurable.

9. Section 9(b)(4)--Add a provision to specify that we will not

require the soil to be fumigated or nematicide applied to acreage on

which tomatoes were planted within the last 2 years as long as the

tomatoes were destroyed prior to reaching the 2nd stage or if otherwise

specified in the Special Provisions. Fumigation or application of a

nematicide is not necessary if the crop was destroyed prior to reaching

the stage when such problems would be apparent.

10. Section 10--Add a provision to specify that coverage begins

when the tomatoes are planted in each planting period if spring and

fall planting periods are authorized in the Special Provisions.

11. Section 11(b)(2)--Amend the provision specifying that loss of

production due to disease or insect infestation is not insurable, to

make these causes of loss insurable if adverse weather prevents the

proper application of control measures; causes properly applied control

measures to be ineffective; or causes disease or insect infestation for

which no effective control mechanism is available in order to provide

coverage in those circumstances when such damage is legitimately beyond

the control of the insured.

12. Section 12--Add a provision permitting one replanting payment

per planting period instead of one replanting payment per crop year

since the crop planted in each planting season is effectively

considered as a separate crop.

13. Section 14--Add provisions for providing insurance coverage by

written agreement. FCIC has a long standing policy of permitting

certain modification of the insurance contract by written agreement for

some policies. This amendment allows FCIC to tailor the policy to a

specific insured in certain instances. The new section will cover the

procedures for, and duration of, written agreements.

List of Subjects in 7 CFR Part 457

Crop Insurance, tomato.

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 proposes to amend the Common Crop Insurance

Regulations, (7 CFR part 457), effective for the 1997 and succeeding

crop years, to read as follows:

PART 457--[AMENDED]

1. The authority citation for 7 CFR part 457 continues to read as

follows:

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

2. 7 CFR part 457 is amended by adding a new Sec. 457.128 to read

as follows:

[[Page 48426]]

Sec. 457.128 Guaranteed Production Plan of Fresh Market Tomato Crop

Insurance Provisions

The Guaranteed Production Plan of Fresh Market Tomato Crop

Insurance Provisions for the 1997 and succeeding crop years are as

follows:

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Guaranteed Production Plan of Fresh Market Tomato Crop Provisions

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

these crop provisions, and the Special Provisions; the Special

Provisions will control these crop provisions and the Basic

Provisions; and these crop provisions will control the Basic

Provisions.

1. Definitions

Acre--43,560 square feet of land on which the row width does not

exceed six feet, or; if the row width exceeds six feet, the land

area on which at least 7,260 linear feet of tomato plants are

planted.

Carton--A standard container that contains 25 pounds of fresh

tomatoes unless otherwise provided in the Special Provisions.

Days--Calendar days.

Direct marketing--Sale of the insured crop directly to consumers

without the intervention of an intermediary such as a wholesaler,

retailer, packer, processor, shipper or buyer. Examples of direct

marketing include selling through an on-farm or roadside stand,

farmer's market, and permitting the general public to enter the

field for the purpose of picking all or a portion of the crop.

FSA--The Farm Service Agency, an agency of the United States

Department of Agriculture, or a successor agency.

Good farming practices--The cultural practices generally in use

in the county for the crop to make normal progress toward maturity

and produce at least the yield used to determine the production

guarantee, and generally recognized by the Cooperative State

Research, Education, and Extension Service as compatible with

agronomic and weather conditions in the county.

Harvest--Picking of marketable tomatoes.

Irrigated practice--A method of producing a crop by which water

is artificially applied during the growing season by appropriate

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

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

establish the irrigated production guarantee on the irrigated

acreage planted to the insured crop.

Mature green tomato--A tomato that:

(a) Has a heightened gloss due to a waxy skin that cannot be

torn by scraping;

(b) Has well formed jelly-like substance in the locules;

(c) Has seeds that are sufficiently hard so they are pushed

aside and not cut by a sharp knife in slicing; and

(d) Shows no red color.

Planting--Transplanting the tomato plants into the field.

Planting period--The period of time designated in the Special

Provisions during which the tomatoes must be planted to be

considered spring or fall planted tomatoes.

Plant stand--The number of live plants per acre before any

damage occurs.

Potential Production--The number of cartons per acre of mature

green or ripe tomatoes with classification size of 6 x 7 (2\8/

32\inch minimum diameter) or larger which the tomato plants would

have produced by the end of the insurance period.

Practical to replant--In lieu of the definition of ``Practical

to replant'' contained in section 1 of the Basic Provisions

(Sec. 457.8), practical to replant is defined as our determination,

after loss or damage to the insured crop, based on factors,

including but not limited to moisture availability, condition of the

field, and time to crop maturity, that replanting the insured crop

will allow the crop to attain maturity prior to the calendar date

for the end of the insurance period. In counties that do not have

both spring and fall planting periods, it will not be considered

practical to replant after the final planting date unless replanting

is generally occurring in the area. In counties that have spring and

fall planting periods, it will not be considered practical to

replant after the final planting date for the planting period in

which the crop was initially planted.

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.

Production guarantee (per acre)--The number of cartons

determined by multiplying the approved APH yield per acre by the

coverage level percentage you elect.

Replanting--Performing the cultural practices necessary to

replace the tomato plants and then replacing the tomato plants in

the insured acreage with the expectation of growing a successful

crop.

Ripe tomato--A tomato that meets the definition of a mature

green tomato, except that the tomato shows some red color.

Row width--The widest distance from the center of one row of

plants to the center of an adjacent row of plants.

Written agreement--A written document that alters designated

terms of this policy in accordance with section 14.

2. Unit Division

(a) A unit, as defined in section 1 (Definitions) of the Basic

Provisions (Sec. 457.8), may be divided into basic units by planting

period if spring and fall planting periods are provided for in the

Special Provisions. Unless limited by the Special Provisions, these

basic units may be divided into optional units if, for each optional

unit you meet all the conditions of this section or if a written

agreement to such division exists.

(b) Basic units may not be divided into optional units on any

basis including, but not limited to, production practice, type,

variety, and planting period, other than as described in this

section.

(c) If you do not comply fully with these provisions, we will

combine all optional units that are not in compliance with these

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

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

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

these provisions is determined to be inadvertent, and the optional

units are combined into a basic unit, that portion of the premium

paid for the purpose of electing optional units will be refunded to

you for the units combined.

(d) All optional units established for a crop year must be

identified on the acreage report for that crop year.

(a) The following requirements must be met for each optional

unit:

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

of planted acreage and production for each optional unit for at

least the last crop year used to determine your production

guarantee;

(2) You must plant the crop in a manner that results in a clear

and discernable break in the planting pattern at the boundaries of

each optional unit; and

(3) You must have records of marketed production or measurement

of stored production from each optional unit maintained in such a

manner that permits us to verify the production from each optional

unit, or the production from each unit must be kept separate until

loss adjustment is completed by us.

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

criteria, as applicable:

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

Serial Number: Optional units may be established if each optional

unit is located in a separate legally identified section. In the

absence of sections, we may consider parcels of land legally

identified by other methods of measure including, but not limited to

Spanish grants, railroad surveys, leagues, labors, or Virginia

Military Lands, as the equivalent of sections for unit purposes. In

areas that have not been surveyed using the systems identified

above, or another system approved by us, or in areas where such

systems exist but boundaries are not readily discernable, each

optional unit must be located in a separate farm identified by a

single FSA Farm Serial Number.

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

Irrigated Practices: In addition to, or instead of, establishing

optional units by section, section equivalent, or FSA Farm Serial

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

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

equivalent, or FSA Farm Serial Number. To qualify as separate

irrigated and non-irrigated optional units, the non-irrigated

acreage may not continue into the irrigated acreage in the same rows

or planting pattern. The irrigated acreage may not extend beyond the

point at which the irrigation system can deliver the quantity of

water needed to produce the yield on which the guarantee is based,

except the corners of a field in which a center-pivot irrigation

system is used will be considered as irrigated acreage if separate

acceptable records of production from the corners are not provided.

If the corners of a field in which a center-pivot irrigation system

is used do not qualify as a separate non-irrigated

[[Page 48427]]

optional unit, they will be a part of the unit containing the

irrigated acreage. However, non-irrigated acreage that is not a part

of a field in which a center-pivot irrigation system is used may

qualify as a separate optional unit provided that all requirements

of this section are met.

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

Indemnities

In addition to the requirements of section 3 (Insurance Guarantees,

Coverage Levels, and Prices for Determining Indemnities) of the Basic

Provisions (Sec. 457.8):

(a) You may select only one price election for all the tomatoes

in the county insured under this policy unless the Special

Provisions provide different price elections by type, in which case

you may select one price election for each tomato type designated in

the Special Provisions. The price elections you choose for each type

must have the same percentage relationship to the maximum price

offered by us for each type. For example, if you choose one hundred

percent (100%) of the maximum price election for one type, you must

also choose one hundred percent (100%) of the maximum price election

for all other types.

(b) The production guarantees per acre are progressive by stages

and increase, at specified intervals, to the final stage production

guarantee. The stages and production guarantees are as follows:

------------------------------------------------------------------------

Percent of

stage 4

(final

Stage stage) Length of time

production

guarantee

------------------------------------------------------------------------

1............................ 50 From planting until

qualifying for stage 2.

2............................ 75 From the earlier of stakes

driven, one tie and

pruning, or 30 days after

planting until qualifying

for stage 3.

3............................ 90 From the earlier of the end

of stage 2 or 60 days after

planting until qualifying

for stage 4.

4............................ 100 From the earlier of 75 days

after planting or the

beginning of harvest.

------------------------------------------------------------------------

(c) Any acreage of tomatoes damaged to the extent that producers

in the area generally would not further care for the tomatoes will

be deemed to have been destroyed even though you continue to care

for the tomatoes. The production guarantee for such acreage will be

the guarantee for the stage in which such damage occurs.

4. Contract Changes

In accordance with section 4 (Contract Changes) of the Basic

Provisions (Sec. 457.8), the contract change date is September 30

preceding the cancellation date for counties with a January 15

cancellation date and December 31 preceding the cancellation date

for all other counties.

5. Cancellation and Termination Dates

In accordance with section 2 (Life of Policy, Cancellation, and

Termination) of the Basic Provisions (Sec. 457.8), the cancellation

and termination dates are:

------------------------------------------------------------------------

Cancellation and termination

State date

------------------------------------------------------------------------

California, Florida, Georgia, and January 15.

South Carolina.

All other states..................... March 15.

------------------------------------------------------------------------

6. Report of Acreage

(a) In addition to the provisions of section 6 (Report of

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

row width of all the tomatoes grown in the county.

(b) If spring and fall planting periods are allowed in the

Special Provisions you must report all the information required by

section 6 of the Basic Provisions (Sec. 457.8) by the acreage

reporting date for each planting period.

7. Annual Premium

In lieu of provisions contained in the Basic Provisions

(Sec. 457.8), for determining premium amounts, the annual premium is

determined by multiplying the final stage production guarantee by

the price election, by the premium rate, by the insured acreage, by

your share at the time coverage begins, and by any applicable

premium adjustment factor contained in the Special Provisions.

8. Insured Crop

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

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

in the county for which a premium rate is provided by the actuarial

table:

(a) In which you have a share;

(b) That are transplanted tomatoes planted for harvest as fresh

market tomatoes (cherry and plum types are excluded);

(c) That are planted within the spring or fall planting dates,

as applicable, specified in the Special Provisions; and

(d) That are not (unless allowed by the Special Provisions or by

written agreement):

(1) Interplanted with another crop; or

(2) Planted into an established grass or legume.

9. Insurable Acreage

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

of the Basic Provisions (Sec. 457.8):

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

planting date, to the extent that the majority of growers in the

area would normally not further care for the crop, must be replanted

unless we agree that it is not practical to replant. Unavailability

of plants will not be considered a valid reason for failure to

replant.

(b) We do not insure any acreage of tomatoes:

(1) Grown by any person if the person had not previously:

(i) Grown fresh market tomatoes for commercial sales; or

(ii) Participated in the management of a fresh market tomato

farming operation, in at least one of the three previous years.

(2) Grown for direct marketing;

(3) That does not meet the rotation requirements contained in

the Special Provisions;

(4) On which tomatoes, peppers, eggplants, or tobacco have been

grown within the previous two years unless the soil was fumigated or

nematicide was applied before planting the tomatoes, except that

this limitation does not apply in Pennsylvania, to acreage planted

to tomatoes within the last 2 years when the tomatoes were destroyed

prior to reaching the 2nd stage, or if otherwise specified in the

Special Provisions;

(5) That are not subject to an agreement (packing contract)

between you and a packer unless you have access to packing

facilities. Such agreement must be executed before the acreage

reporting date.

10. Insurance Period

In lieu of the provisions of section 11 (Insurance Period) of

the Basic Provisions (Sec. 457.8):

(a) Coverage begins on each unit, or part of a unit for units

with spring and fall planting periods, when the tomatoes are

planted.

(b) Coverage will end on any insured acreage at the earliest of:

(1) Total destruction of the tomatoes;

(2) Discontinuance of harvest;

(3) The date harvest should have started on any acreage which

was not harvested;

(4) 120 days after the date of transplanting or replanting;

(5) Completion of harvest; or

(6) Final adjustment of a loss.

11. Causes of Loss

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

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

only against the following causes of loss that occur during the

insurance period:

(1) Adverse weather conditions;

(2) Fire;

(3) Wildlife;

(4) Earthquake;

(5) Volcanic eruption;

(6) Failure of irrigation water supply, if caused by an insured

peril that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12

(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not

insure against damage or loss of production due to:

(1) Damage that occurs or becomes evident after the tomatoes

have been harvested; or

(2) Disease or insect infestation, unless adverse weather:

[[Page 48428]]

(i) Prevents the proper application of control measures or

causes properly applied control measures to be ineffective; or

(ii) Causes disease or insect infestation for which no effective

control mechanism is available.

12. Replanting Payment

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

Basic Provisions (Sec. 457.8), a replanting payment is allowed if

the crop is damaged by an insurable cause of loss and the acreage to

be replanted has sustained a loss in excess of fifty percent (50%)

of the plant stand.

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

be 70 cartons multiplied by your price election, and by your insured

share.

(c) In lieu of the provisions contained in section 13

(Replanting Payment) of the Basic Provisions (Sec. 457.8) that

permit only one replanting payment each crop year, when spring and

fall planting periods are contained in the Special Provisions, you

may be eligible for one replanting payment for acreage planted

during each planting period within the crop year.

13. Settlement of Claim

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

you are unable to provide separate, acceptable production records:

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

for which such production records were not provided; or

(2) For any basic unit, we will allocate any commingled

production to such units in proportion to our liability on the

harvested acreage for each unit.

(b) In the event of loss or damage covered by this policy, we

will settle your claim by:

(1) Multiplying the insured acreage for each type, if applicable

by its respective production guarantee and by the factor for the

applicable stage;

(2) Multiplying the results of section 13(b)(1) by the

respective price election for each type, if applicable;

(3) Totaling the results of section 13(b)(2);

(4) Multiplying the total production to be counted of each type,

if applicable, (see section 13(c)) by the respective price election;

(5) Totaling the results of section 13(b)(4);

(6) Subtracting this result of section 13(b)(5) from the results

in section 13(b)(3); and

(7) Multiplying the result of section 13(b)(6) by your share.

(c) The total production to count (in cartons) from all

insurable acreage on the unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

(D) For which you fail to provide production records that are

acceptable to us;

(ii) Potential production lost due to uninsured causes;

(iii) Unharvested production of mature green and ripe tomatoes

with classification size of 6 x 7 (2\8/32\ inch minimum diameter)

or larger remaining after harvest is discontinued;

(iv) Potential production on unharvested acreage and potential

production on acreage when harvest has not been completed;

(v) Potential production on insured acreage that you intend to

put to another use or abandon, if you and we agree on the appraised

amount of production. Upon such agreement, the insurance period for

that acreage will end when you put the acreage to another use or

abandon the crop. If agreement on the appraised amount of production

is not reached:

(A) If you do not elect to continue to care for the crop, we may

give you consent to put the acreage to another use if you agree to

leave intact, and provide sufficient care for, representative

samples of the crop in locations acceptable to us (The amount of

production to count for such acreage will be based on the harvested

production or appraisals from the samples at the time harvest should

have occurred. If you do not leave the required samples intact, or

you fail to provide sufficient care for the samples, our appraisal

made prior to giving you consent to put the acreage to another use

will be used to determine the amount of production to count); or

(B) If you elect to continue to care for the crop, the amount of

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested; and

(2) All harvested production from the insurable acreage:

(i) That is marketed, regardless of grade; and

(ii) That is unmarketed and grades eighty-five percent (85%) or

better U.S. No. 1 with classification size of 6 x 7 (2\8/32\ inch

minimum diameter) or larger.

14. Written Agreements

Designated terms of this policy may be altered by written

agreement in accordance with the following:

(a) You must apply in writing for each written agreement no

later than the sales closing date, except as provided in section

14(e);.

(b) The application for a written agreement must contain all

variable terms of the contract between you and us that will be in

effect if the written agreement is not approved;

(c) If approved, the written agreement will include all variable

terms of the contract, including, but not limited to, crop type or

variety, the guarantee, premium rate, and price election;

(d) Each written agreement will only be valid for one year (If

the written agreement is not specifically renewed the following

year, insurance coverage for subsequent crop years will be in

accordance with the printed policy); and

(e) An application for a written agreement submitted after the

sales closing date may be approved if, after a physical inspection

of the acreage, it is determined that no loss has occurred and the

crop is insurable in accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on September 4, 1996.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 96-23455 Filed 9-12-96; 8:45 am]

BILLING CODE 3410-FA-P