Common Crop Insurance Regulations; Forage Production Crop Insurance Provisions

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes

specific crop provisions for the insurance of forage production. The

provisions will be used in conjunction with the Common Crop Insurance

Policy Basic Provisions, which contain standard terms and conditions

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

policy changes to better meet the needs of producers, add an optional

Forage Production Winter Coverage Endorsement, and combine the current

Forage Production Crop Insurance Regulations with the Common Crop

Insurance Policy for ease of use and consistency of terms.

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

be accepted until close of business November 12, 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, USDA, 14th and

Independence Avenue, S.W., Washington, D.C., 8:15 a.m.-4:45 p.m.,

Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Program Analyst,

Research and Development Division, Product Development Branch, FCIC, at

the Kansas City, MO, address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866 and Departmental Regulation 1512-1

This action has been reviewed under United States Department of

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

and Departmental Regulation 1512-1. This action constitutes a review as

to the need, currency, clarity, and effectiveness of these regulations

under those procedures. The sunset review date established for these

regulations is October 5, 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 sent forth in this proposed rule do not contain

additional information collections that require clearance by 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; Forage Production Crop Insurance Provisions; and

Forage Production Winter Coverage Endorsement.'' The information to be

collected includes: a crop insurance application and acreage report.

Information collected from the acreage report and application is

electronically submitted to FCIC by the reinsured companies. Potential

respondents to this information collection are producers of forage

production 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 2,669,970 hours.

The comment period for information collections under the Paperwork

Reduction Act of 1995 continues 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 on respondents, including through the use

of automated collection techniques or other forms of information

gathering technology.

Comments regarding paperwork reduction should be submitted to the

Desk Officer for Agriculture, Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, DC 20503 and to

Bonnie Hart, Advisory and Corporate Operations Staff, Regulatory Review

Group, Farm Service Agency, PO Box 2415, STOP 0572, U.S. Department of

Agriculture, Washington, DC 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. Under section 202 of the UMRA, FCIC

generally must prepare a written statement, including a cost-benefit

analysis, for proposed and final rules with ``Federal mandates'' that

may result in expenditures of State, local, or tribal governments, in

the aggregate, or to the private sector, of $100 million or more in any

1 year. When such a

[[Page 48417]]

statement is needed for a rule, section 205 of the UMRA generally

requires FCIC to identify and consider a reasonable number of

regulatory alternatives and adopt the least costly, more cost-effective

or least burdensome alternative that achieves the objectives of the

rule.

This rule contains no Federal mandates (under the regulatory

provisions of title II of the UMRA) for State, local, and tribal

governments or the private sector. Thus, this rule is not subject to

the requirements of sections 202 and 205 of the UMRA.

Executive Order No. 12612

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

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

implications to warrant the preparation of a Federalism Assessment. The

provisions contained in this rule will not have a substantial direct

effect on States or their political subdivisions, or on the

distribution of power and responsibilities among the various levels of

government.

Regulatory Flexibility Act

This regulation will not have a significant impact on a substantial

number of small entities. 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 may use actual records of production or receive

a transitional yield which does not require the maintenance of

production records. If the insured elects to use actual records of

acreage and production as the basis for the production guarantee, the

insured must report this information on a yearly basis. This regulation

does not alter those requirements. Therefore, the amount of work

required of the insurance companies and Farm Service Agency (FSA)

offices delivering and servicing these policies will not increase

significantly from the amount of work currently required. This rule

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

this action is determined to be exempt from the provisions of the

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

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with State and

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

published at 48 FR 29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has determined that these

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

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

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

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

such State and local laws are inconsistent herewith. The administrative

appeal provisions in 7 CFR parts 11 and 780 must be exhausted before

any action for judicial review may be brought.

Environmental Evaluation

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

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

neither an Environmental Assessment nor an Environmental Impact

Statement is needed.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review Initiative to eliminate unnecessary or duplicative

regulations and improve those that remain in force.

Background

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

CFR part 457), two new sections: 7 CFR 457.117, Forage Production Crop

Insurance Provisions; and 457.127, Forage Production Winter Coverage

Endorsement. The new provisions will be effective for the 1998 and

succeeding crop years. These provisions will replace the current

provisions for insuring forage production found at 7 CFR part 415. Upon

publication of the Forage Production Crop Provisions and the Forage

Production Winter Coverage Endorsement as a final rule, the current

provisions for insuring forage production will be removed from 7 CFR

part 415 and that part will be reserved.

This rule makes minor editorial and format changes to improve the

Forage Production Crop Insurance Regulations' compatibility with the

Common Crop Insurance Policy. In addition, FCIC is proposing

substantive changes in the provisions for insuring forage production as

follows:

1. Section 1--Add definitions for the terms ``air-dry forage,''

``days,'' ``good farming practices,'' ``irrigated practice,''

``production guarantee (per acre),'' ``ton,'' ``written agreement,''

and ``year of establishment'' for clarification purposes. Add a

definition for the term ``adequate stand'' to specify that the minimum

number of plants required for insurance to attach will be contained in

the Special Provisions. The definition also allows for regional

differences in plant populations. Add a definition for the term ``fall-

planted'' to specify that a forage crop planted after June 30 will be

considered fall-planted. Add a definition for the term ``spring-

planted'' to specify that forage planted before July 1 year will be

considered spring-planted. Revise the definition for the term

``forage'' to recognize the various types or mixtures of forage grown

throughout the United States. Revise the definition for the term

``harvest'' to specify that grazing will not be considered harvested

because insurance coverage is not provided for forage that is grown for

the purpose of grazing.

2. Section 2--Clarify that optional units are not available for

forage production.

3. Section 3(a)--Clarify that an insured may select only one price

election for all the forage production 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 forage type designated in the Special Provisions.

4. Section 3(b)--Clarify that an insured must report, by the

production reporting date, the total production harvested from

insurable acreage for all cuttings for each unit.

5. Section 4--Change the contract change date from August 15 to

June 30. This change eliminates the distribution of actuarial materials

separately for this crop, thereby simplifying the crop insurance

program and reducing administrative overhead costs.

6. Section 5--Change the cancellation and terminations dates from

November 30 to September 30. The sales closing date for the 1998 crop

year is also changed to September 30. This change will allow the

insurer the opportunity to inspect any forage acreage under more

favorable weather conditions to determine that an adequate stand exists

prior to accepting an application.

7. Section 6--Specify that an insured must submit separate acreage

reports for acreage insured under the Forage Production Winter Coverage

Endorsement and for all other forage acreage on or before the acreage

reporting dates contained in the Special Provisions. Separate fall and

spring acreage reports are necessary because

[[Page 48418]]

insurance attaches in the fall for forage acreage insured under the

Forage Production Winter Coverage Endorsement and in the spring for all

other forage acreage.

8. Section 7(b)--Clarify that forage must have an adequate stand

before insurance will attach. Eliminate the provision that allows

overage stands of forage to be insured by written agreement. This

change eliminates coverage on overage forage acreage that has

significantly lower production yields.

9. Section 8--Provide different calendar dates for the beginning of

the insurance period for acreage covered under the Forage Production

Winter Coverage Endorsement. This change is necessary due to the

addition of the new Forage Production Winter Coverage Endorsement.

10. Section 12--Add provisions for providing insurance coverage by

written agreement. FCIC has a long standing policy of permitting

certain modifications 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

application for and duration of written agreements.

11. Section 457.127--Add a new Forage Production Winter Coverage

Endorsement. This endorsement will provide optional winter coverage in

any county for which the actuarial table designates forage production

premium rates when the insured elects the endorsement by the sales

closing date. Current regulations allow winter coverage as a part of

the basic policy, which affects the premium rates for all persons who

insure forage production. Allowing winter protection only when the

insured elects the Forage Production Winter Coverage Endorsement will

result in separate premium rates for insureds who elect winter

coverage.

List of Subjects in 7 CFR Part 457

Crop insurance, Forage production.

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 1998 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 new Secs. 457.117 and

457.127 to read as follows:

Sec. 457.117 Forage Production Crop Insurance Provisions.

The Forage Production Crop Insurance Provisions for the 1998 and

succeeding crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Forage Production 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

Adequate stand--A population of live forage plants that equals

or exceeds the minimum required number of plants per square foot as

shown in the Special Provisions.

Air-dry forage--Forage that has dried in windrows by natural

means to less than eighteen percent (18%) moisture before being put

into stacks or bales.

Crop year--The period from the date insurance attaches until

harvest is normally completed, which is designated by the calendar

year in which the majority of the forage is normally harvested.

Cutting--Severance of the forage plant from the land for the

purpose of livestock feed.

Days--Calendar days.

Fall planted--A forage crop planted after June 30.

Forage --Planted perennial alfalfa, perennial red clover,

perennial grasses, or a mixture thereof, as shown in the actuarial

table.

Good farming practices--The cultural practices generally in use

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

and produce at least the yield used to determine the production

guarantee, and generally recognized by the Cooperative Extension

Service as compatible with agronomic and weather conditions in the

county.

Harvest--Removal of forage from the windrow or field. Grazing

will not be considered harvested.

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

is artificially applied during the growing season by appropriate

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

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

establish the irrigated production guarantee on the irrigated

acreage planted to the insured crop.

Production guarantee (per acre)--The number of tons determined

by multiplying the approved yield per acre times the coverage level

percentage you elect.

Spring planted--A forage crop planted before July 1.

Ton--Two thousand (2,000) pounds avoirdupois.

Written agreement--A written document that alters designated

terms of a policy in accordance with section 12.

Year of establishment--The period between seeding and when the

forage crop has developed an adequate stand. Insurance during the

year of establishment may be available under the forage seeding

policy. Insurance under this policy does not attach until after the

year of establishment. The year of establishment is determined by

the date of seeding. A forage crop planted before July 1 is

considered as spring planted and the year of establishment is

designated by the calendar year in which seeding occurred. A forage

crop planted after June 30 is considered as fall planted and the

year of establishment is designated by the calendar year after the

year in which the crop was planted.

2. Unit Division

Optional units are not available for forage production. See the

definition of unit contained in section 1 (Definitions) of the Basic

Provisions (Sec. 457.8).

3. Insurance Guarantees, Coverage Levels, and Prices for

Determining Indemnities In addition to the requirements of section 3

(Insurance Guarantees, Coverage Levels, and Prices for Determining

Indemnities) of the Basic Provisions (Sec. 457.8):

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

the county insured under this policy unless the Special Provisions

provide different price elections by type. If the Special Provisions

provide different price elections by type, you may select one price

election for each forage type. The price elections you choose for

each type must have the same percentage relationship to the maximum

price offered by us for each type. For example, if you choose 100

percent (100%) of the maximum price election for a specific type,

you must also choose 100 percent (100%) of the maximum price

election for all other types.

(b) You must report the total production harvested from

insurable acreage for all cuttings for each unit by the production

reporting date.

(c) Separate guarantees will be determined by forage type, as

applicable.

4. Contract Changes

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

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

preceding the cancellation date.

5. Cancellation and Termination Dates

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

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

and termination dates are September 30.

6. Report of Acreage

In addition to section 6 of the Basic Provisions (Sec. 457.8),

you must submit separate acreage reports for acreage insured under

the Forage Production Winter Coverage Endorsement and for all other

insurable forage acreage.

7. Insured Crop

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

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

the

[[Page 48419]]

county for which a premium rate is provided by the actuarial table:

(1) In which you have a share;

(2) That is planted for harvest as livestock feed; and

(3) That is grown after the year of establishment.

(b) In addition to the crop listed as not insured in section 8

(Insured Crop) of the Basic Provisions (Sec. 457.8), we will not

insure any forage that:

(1) Does not have an adequate stand at the beginning of the

insurance period;

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

(3) Exceeds the age limitations for forage stands contained in

the Special Provisions.

8. Insurance Period

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

the Basic Provisions (Sec. 457.8):

(a) Insurance attaches on acreage with an adequate stand on the

later of the date we accept your application or the applicable

calendar dates listed below:

(1) For the first and subsequent calendar years following the

year of establishment, except as otherwise provided in subsection

(a)(2) for:

(i) California--February 1;

(ii) Colorado, Idaho, Nebraska, Nevada, Oregon, Utah, and

Washington--April 15;

(iii) Iowa, Minnesota, Montana, New Hampshire, New York, North

Dakota, Pennsylvania, Wisconsin, Wyoming, and all other states--May

22;

(2) The calendar date specified in the Forage Production Winter

Coverage Endorsement for acreage insured under such endorsement.

(b) Insurance ends at the earliest of:

(1) Total destruction of the forage crop;

(2) Removal from the windrow or the field for each cutting;

(3) Final adjustment of a loss;

(4) The date grazing commences on the forage crop;

(5) Abandonment of the forage crop; or

(6) The following dates of the crop year:

(i) All states except California--October 15;

(ii) California--December 31.

(c) In order to obtain year round coverage for a calendar year,

you must purchase the Forage Production Winter Coverage Endorsement

(Sec. 457.127).

9. 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) Insects, but not damage due to insufficient or improper

application of pest control measures;

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

improper application of disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of the irrigation water supply, if caused by an

insured peril that occurs during the insurance period.

(b) In addition to the causes of loss not covered in section 12

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

insure against damage that occurs after removal from the windrow.

10. Duties in the Event of Damage or Loss

In addition to your duties contained in section 14 (Duties in

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

if you discover any insured forage is damaged, or if you intend to

claim an indemnity on any unit, you must give notice:

(a) Of probable loss at least 15 days before the beginning of

any cutting or immediately if probable loss is discovered after

cutting has begun; and

(b) At least 5 days before grazing of insured forage begins.

Such notice must include the number of acres harvested and tons

produced from each unit.

11. Settlement of Claim

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

you are unable to provide production records for any unit, we will

allocate any commingled production to such units in proportion to

our liability on the harvested acreage for each unit.

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

will settle your claim by:

(1) Multiplying the acreage for each type, as provided in the

Special Provisions, times its respective production guarantee;

(2) Multiplying each product of paragraph (1) times the

respective price election;

(3) Totaling the results of each crop type from paragraph (2);

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

if applicable, (see section 11(c)) times its respective price

election;

(5) Totaling the results of each crop type from paragraph (4);

(6) Subtracting the result of paragraph (5) from the total in

paragraph (3); and

(7) Multiplying the result in paragraph (6) by your share.

(c) The total production to count (in tons) from all insurable

acreage on the unit will include:

(1) All appraised production as follows:

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

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

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

acceptable to us;

(ii) Production lost due to uninsured causes;

(iii) Unharvested production;

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

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

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

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

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

is not reached:

(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

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

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

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

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

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested; and

(2) All harvested production from the insurable acreage.

(d) When forage is harvested as other than air-dry forage, the

production to count will be adjusted to the equivalent of air-dry

forage.

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

will be counted as forage on a weight basis.

(f) In addition to the provisions of section 15 (Production

Included in Determining Indemnities) of the Basic Provisions

(Sec. 457.8), we may determine the amount of production of any

unharvested forage on the basis of our field appraisals conducted

after the normal time for each cutting for the area.

12. Written Agreements

Designated terms of this policy may be altered by written

agreement in accordance with the following:

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

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

12(e);

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

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

effect if the written agreement is not approved;

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

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

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

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

the written agreement is not specifically renewed the following

year, insurance coverage for subsequent crop years will be in

accordance with the printed policy); and

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

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

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

crop is insurable in accordance with the policy and written

agreement provisions.

Sec. 457.127 Forage Production Winter Coverage Endorsement.

The provisions of the Forage Production Winter Coverage Endorsement

for the 1998 and succeeding crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Winter Coverage Endorsement

In return for payment of the additional premium designated in

the actuarial table,

[[Page 48420]]

the Common Crop Insurance Policy Basic Provisions (Sec. 457.8) and

the Forage Production Crop Insurance Provisions (Sec. 457.117) are

amended to incorporate the following terms and conditions:

(a) For this Endorsement to be effective, you must have the

Common Crop Insurance Policy Basic Provisions (Sec. 457.8) and the

Forage Production Crop Insurance Provisions (Sec. 457.117) in force

and you must comply with all terms and conditions contained therein.

(b) This Endorsement is not available for forage crops insured

under a Catastrophic Risk Protection Endorsement.

(c) You must elect this Endorsement on your application or on a

form approved by us, for coverage under this Endorsement, on or

before the sales closing date specified in the Special Provisions

for the crop year in which you wish to insure your forage under this

Endorsement.

(d) This Endorsement is available for the following acreage in

all counties for which the actuarial table designates forage

production premium rates:

(1) Fall planted acreage, for the first and subsequent crop

years following the year of establishment; and

(2) Spring planted acreage, for the second and subsequent crop

years following the year of establishment.

(e) Under this Endorsement, the insurance period will be as

follows:

(1) Insurance will attach on acreage with an adequate stand on

the later of the date we accept your application or the applicable

calendar dates following the end of the insurance period for the

previous crop year as listed below:

(i) For all states except California--October 16;

(ii) For California--January 1.

(2) Insurance will end on the earliest of:

(i) Total destruction of the forage crop;

(ii) Removal from the windrow or the field for each cutting;

(iii) Final adjustment of the loss;

(iv) Abandonment of the forage crop;

(v) The date grazing commences on the forage crop; or

(vi) The following dates of the crop year:

(A) All states except California--October 15;

(B) California--December 31.

(f) This is a continuous Endorsement and it will remain in

effect for as long as your forage production policy remains in

effect or you cancel this coverage in accordance with paragraph (g).

(g) This Endorsement may be canceled by either you or us for any

succeeding crop year by giving written notice on or before the

cancellation date preceding the crop year for which the cancellation

of this Endorsement is to be effective.

Signed in Washington, DC, on September 5, 1996.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 96-23497 Filed 9-12-96; 8:45 am]

BILLING CODE 3410-FA-P