Forage Seeding Crop Insurance Regulations and Common Crop Insurance Regulations; Forage Seeding Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

7 CFR Parts 414 and 457

Forage Seeding Crop Insurance Regulations and Common Crop

Insurance Regulations; Forage Seeding Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes

specific crop provisions for the insurance of forage seeding. 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, to include the

current forage seeding crop insurance regulations with the Common Crop

Insurance Policy for ease of use and consistency of terms, and to

restrict the effect of the current forage seeding crop insurance

regulations to the 1997 and prior crop years.

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

be accepted until close of business February 14, 1997 and will be

considered when the rule is to be made final.

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. to 4:45 p.m., est, Monday through Friday,

except holidays.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, 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

The Office of Management and Budget (OMB) has determined this rule

to be exempt for the purposes of Executive Order No. 12866, and,

therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

The amendments set forth in this information collections that

require clearance by OMB is ``Catastrophic Risk Protection Plan and

Related Requirements including, Common Crop Insurance Regulations;

Forage Seeding Crop Insurance Provisions.'' The information to be

collected includes: A crop insurance application and acreage report.

Information collected from the application and acreage report is

electronically submitted to FCIC by the reinsured companies. Potential

respondents to this information collection are producers of forage

seeding 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

[[Page 2056]]

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.

FCIC is requesting comments 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

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.

The Office of Management and Budget (OMB) is required to make a

decision concerning the collections of information contained in these

proposed regulations between 30 and 60 days after submission to OMB.

Therefore, a comment to OMB is best assured of having full effect if

OMB receives it within 30 days of publication. This does not affect the

deadline for the public to comment on the proposed regulation.

Unfunded Mandates Reform Act of 1995

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

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

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

governments and the private sector. This rule contains no Federal

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

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

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

UMRA.

Executive Order No. 12612

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

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

implications to warrant the preparation of a Federalism Assessment. The

provisions contained in this rule will not have a substantial direct

effect on states or their political subdivisions, or on the

distribution of power and responsibilities among the various levels of

government.

Regulatory Flexibility Act

This regulation will not have a significant impact on a substantial

number of small entities. The effect of this regulation on small

entities will be no greater than on larger entities. Under the current

regulations, a producer is required to complete an application and

acreage report. If the crop is damaged or destroyed, the insured is

required to give notice of loss and provide the necessary information

to complete a claim for indemnity. This regulation does not alter those

requirements. The amount of work required of the insurance companies

delivering and servicing these policies will not increase significantly

from the amount of work currently required. This rule does not have any

greater or lesser impact on the producer. Therefore, this action is

determined to be exempt from the provisions of the Regulatory

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

was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with state and

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

published at 48 FR 29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has determined that these

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

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

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

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

such state and local laws are inconsistent herewith. The administrative

appeal provisions published at 7 CFR 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), a new section, 7 CFR 457.151, Forage Seeding Crop

Insurance Provisions. The new provisions will be effective for the 1998

and succeeding crop years. These provisions will replace and supersede

the current provisions for insuring forage seeding found at 7 CFR part

414 (Forage Seeding Crop Insurance Regulations), for the 1998 and

succeeding crop years. FCIC also proposes to amend 7 CFR part 414 to

limit its effect to the 1997 and prior crop years. FCIC will later

publish a regulation to remove and reserve part 414.

This rule makes minor editorial and format changes to improve the

Forage Seeding Crop Insurance Regulations compatibility with the Common

Crop Insurance Policy. In addition, FCIC is proposing substantive

changes in the provisions for insuring forage seeding as follows:

1. The current premium adjustment table contained in the Forage

Seeding Crop Insurance Policy has been omitted from the proposed Forage

Seeding Crop Provisions. Information regarding good experience

discounts is now contained in the Special Provisions. The adverse

experience premium adjustment has been removed. These changes provide

consistency with all other crops containing premium experience

discounts.

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

``fall planted,'' ``final planting date,'' ``forage,'' ``good farming

practices,'' ``interplanted,'' ``irrigated practice,'' ``late

harvest,'' ``normal stand,'' ``nurse crop,'' ``planted acreage,''

``practical to replant,'' ``spring planted,'' and ``written agreement''

for clarification purposes. Revise the definition for the term

``harvest'' to specify that acreage that is grazed will not be

considered harvested because it is impossible to determine the

production for grazed acreage so insurance coverage is not provided for

acreage that is grown for the purpose of grazing. The term ``reseed''

has been changed to ``replant'' and made consistent with other annual

crop provisions. Current regulations allow an insured to reseed at not

less than 50 percent (50%) of the original seeding rate. The revised

definition specifies

[[Page 2057]]

that replacing new seed into an existing damaged stand, which results

in a reduced seeding rate from the original seeding rate, will not be

considered replanting. This change provides consistency with the

replanting provisions of other annual crop provisions.

3. Section 2--Provides guidelines for optional unit division of

forage seeding basic units that are consistent with other annual crop

provisions.

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

coverage level and the corresponding amount of insurance designated in

the actuarial table for the applicable type and practice for all the

forage seeding planted in the county that is insured under the policy.

The amounts of insurance the insured chooses for each type and practice

must have the same percentage relationship to the maximum amount of

insurance offered by FCIC for each type and practice.

5. Section 4--The contract change date has been changed to November

30 for all counties that currently have April 15 cancellation and

termination dates. This change is made to maintain an adequate time

period between this date and the revised cancellation dates to permit

the insured to make informed insurance decisions.

6. Section 5--The cancellation and termination dates have been

changed to March 15 in states and counties that currently have April 15

dates. These changes are made to standardize the cancellation and

termination dates with the sales closing dates. The sales closing dates

were amended to comply with the requirement of the Federal Crop

Insurance Reform Act of 1994 that spring seeded crop sales closing

dates be 30 days earlier than previously. Also added Nevada to the

forage seeding crop provisions for both spring and fall planted forage.

7. Section 6(c)--Clarify that any forage seeding crop that is grown

with the intent to be grazed, or grazed at any time during the

insurance period, will not be insured.

8. Section 6(d)--Add provisions to allow coverage for forage

seeding that is interplanted with another crop if allowed by the

Special Provisions or by written agreement. The provisions provide

coverage for more acreage and may reduce the need for protection under

the non-insured disaster assistance program.

9. Section 7--Clarify that any acreage damaged prior to the final

planting date, to the extent that such acreage has less than a normal

stand, must be replanted unless the insurer agrees that it is not

practical to replant.

10. Section 8--State that harvest is one event that ends the

insurance period, unless the Special Provisions contain a late harvest

date, or if harvest occurs after the late harvest date, shown in the

Special Provisions. Also the date grazing commences and abandonment of

the insured crop were added as events that end the insurance period.

11. Section 9(h)--Add failure of the irrigation water supply as an

insurable cause of loss, if such failure was caused by an insured peril

that occurs during the insurance period. This change standardizes these

crop provisions with other crop provisions.

12. Section 12--Modify claim for indemnity calculations to

recognize separate amounts of insurance for each type and practice

within the same unit.

13. Section 13--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.

List of Subjects in 7 CFR Parts 414 and 457

Crop insurance, Forage seeding regulations, Forage seeding.

Accordingly, for the reasons set forth in the preamble, the Federal

Crop Insurance Corporation hereby proposes to amend 7 CFR parts 414 and

457, effective for the 1998 and succeeding crop years, as follows:

PART 414--FORAGE SEEDING CROP INSURANCE REGULATIONS--REGULATIONS

FOR THE 1981 AND SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR part 414 is revised to read as

follows:

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

2. The subpart heading preceeding Sec. 414.1 is revised to read as

follows:

Subpart--Regulations for the 1981 through 1997 Crop Year

3. Section 414.7 is amended by revising the introductory text of

paragraph (d) to read as follows:

Sec. 414.7 The application and policy.

* * * * *

(d) The application for the 1984 and succeeding crop years is found

at subpart D of part 400, General Administrative Regulations (7 CFR

400.37, 400.38). The provisions of the Forage Seeding Insurance Policy

for the 1984 through 1997 crop years are as follows:

* * * * *

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

1994 AND SUBSEQUENT CONTRACT YEARS

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

follows:

Authority: 7 U.S.C. 1501(l) and 1506(p).

5. 7 CFR part 457 is amended by adding a new Sec. 457.151 to read

as follows:

Sec. 457.151 Forage seeding crop insurance provisions.

The Forage Seeding Crop Insurance Provisions for the 1998 and

succeeding crop years are as follows:

FCIC policies:

DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE CORPORATION

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Forage Seeding 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

Crop year--The period within which the planting is or normally

would become established and shall be designated by the calendar

year in which the planting is made for spring planted acreage and

the next succeeding calendar year for fall planted acreage.

Days--Calendar days.

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

Department of Agriculture, or any successor agency.

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

Final planting date--The date contained in the Special

Provisions for the insured crop by which the crop must initially be

planted in order to be insured for the full amount of insurance.

Forage--Seeded 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 a normal stand, and recognized by the Cooperative State

Research, Education, and Extension Service as compatible with

agronomic and weather conditions in the county.

Harvest--Severance of the forage plant from the land with the

intention of using it as livestock feed. Grazing will not be

considered harvested.

Interplanted--Acreage on which two or more crops are planted in

a manner that does

[[Page 2058]]

not permit separate agronomic maintenance or harvest of the insured

crop.

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 amount of insurance on the irrigated acreage

planted to the insured crop.

Late harvest--Harvest that occurs after the date listed in the

Special Provisions.

Normal stand--A population of live plants per square foot that

meets the minimum required number of plants as shown in the Special

Provisions.

Nurse crop (companion crop)--A crop seeded into the same acreage

as another crop, that is intended to be harvested separately, and

that is planted to improve growing conditions for the crop with

which it is grown.

Planted acreage--Land in which seed has been placed by a machine

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

depth, into a seedbed that has been properly prepared for the

planting method and production practice. Land on which seed is

initially spread onto the soil surface by any method and

subsequently is mechanically incorporated into the soil in a timely

manner and at the proper depth. Acreage seeded in any other manner

will not be insurable unless otherwise provided by the Special

Provisions or by written agreement.

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, marketing

window, 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. It

will not be considered practical to replant after the final planting

date, unless replanting is generally occurring in the area.

Replanting--Performing the cultural practices necessary to

replace the forage seed and then replacing the forage seed in the

insured acreage with the expectation of producing a normal stand.

Replacing new seed into an existing damaged stand, which results in

a reduced seeding rate from the original seeding rate, will not be

considered replanting.

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

Written agreement--A written document that alters designated

terms of this policy in accordance with section 13.

2. Unit Division

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

Provisions (Sec. 457.8), a (basic unit), will be divided for spring

and fall planted acreage.

(b) Unless limited by the Special Provisions, these basic units

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

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

agreement to such division exists.

(c) 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.

(d) 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.

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

identified on the acreage report for that crop year.

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

unit:

(1) 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

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

criteria as applicable:

(i) 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.

(ii) 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 irrigated system can deliver the quantity of

water needed to produce a normal stand.

3. Amounts of Insurance

(a) In addition to the requirements of section 3 (Insurance

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

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

coverage level and the corresponding amount of insurance designated

in the actuarial table for the applicable type and practice for all

the forage seeding in the county that is insured under this policy.

The amount of insurance you choose for each type and practice must

have the same percentage relationship to the maximum amount of

insurance offered by us for each type and practice. For example, if

you choose 100 percent (100%) of the maximum amount of insurance for

a specific type and practice, you must also choose 100 percent

(100%) of the maximum amount of insurance for all other types and

practices.

(b) The production reporting requirements contained in section 3

(Insurance Guarantees, Coverage Levels, and Prices for Determining

Indemnities) of the Basic Provisions (Sec. 457.8), do not apply to

forage seeding.

4. Contract Changes

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

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

preceding the cancellation date for counties with a March 15

cancellation date and April 30 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 and county dates

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

New Hampshire, New York, Pennsylvania, July 31

Vermont, Nevada.

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

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

6. Insured Crop

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

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

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

actuarial table:

(a) In which you have a share;

(b) That is planted, or replanted the calendar year following

planting to establish a stand of forage intended for harvest as

livestock feed;

(c) That is not grown with the intent to be grazed, or not

grazed at any time during the insurance period; and

(d) That is not interplanted with another crop, except nurse

crops, unless allowed by the Special Provisions or by written

agreement.

7. Insurable Acreage

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

of the Basic Provisions (Sec. 457.8), any acreage of the insured

crop damaged before the final planting date, to the extent that such

acreage has less than a normal stand, must be replanted unless we

agree that it is not practical to replant.

8. Insurance Period

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

the Basic Provisions (Sec. 457.8) regarding when insurance ends,

forage seeding insurance will end at the earliest of:

(a) Total destruction of the insured crop on the unit;

(b) Harvest of the unit, unless a late harvest date is listed in

the Special Provisions, or late harvest on the unit if a late

harvest date is listed in the Special Provisions;

[[Page 2059]]

(c) Final adjustment of a loss on a unit;

(d) Abandonment of the insured crop;

(e) The date grazing commences on the insured crop; or

(f) May 21 of the calendar year following seeding for spring-

planted forage; or October 15 of the calendar year following seeding

for fall-planted forage.

9. Causes of Loss

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

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

against the following causes that result in loss of, or failure to

establish, a stand of forage that occur during the insurance period:

(a) Adverse weather conditions;

(b) Fire;

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

application of pest control measures;

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

improper application of disease control measures;

(e) Wildlife;

(f) Earthquake;

(g) Volcanic eruption; or

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

insured peril that occurs during the insurance period.

10. Replanting Payment

In lieu of the provisions contained in section 13 (Replanting

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

(a) A replanting payment is allowed only in counties for which

the Special Provisions designate both fall and spring final planting

dates if:

(1) The insured fall-planted acreage is damaged by an insurable

cause of loss to the extent that less than 75 percent (75%) of a

normal stand remains;

(2) It is practical to replant;

(3) We give written consent to replant; and

(4) Such acreage is replanted the following spring by the spring

final planting date.

(b) The amount of the replanting payment will be equal to 50

percent (50%) of the amount of indemnity determined in accordance

with section 12(a).

(c) No replanting payment will be made on acreage for which one

replanting payment has already been allowed for the crop year.

(d) If the information reported by you on the acreage report

results in a lower premium than the actual premium determined to be

due based on the acreage, share, practice, or type determined

actually to have existed, the replanting payment will be reduced

proportionately.

11. Duties In The Event of Damage or Loss

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

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

the representative samples of the crop must be at least 10 feet wide

and extend the entire length of each field in the unit. The samples

must not be harvested or destroyed until the earlier of our

inspection or 15 days after tilling of the balance of the unit is

completed.

(b) In addition to the requirements of section 14 (Duties in the

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

must give us written notice if, during the period before destroying

the crop on any fall planted acreage that is damaged, you decide to

replant the acreage by the spring final planting date.

12. Settlement of Claim

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

will settle your claim on any unit by:

(1) Multiplying the insured acreage of each type and practice by

the amount of insurance for the applicable type and practice;

(2) Totaling the results of section 12(a)(1);

(3) Multiplying the total of the acres with an established stand

plus 10 percent (10%) of the planted acres for the insured acreage

of each type and practice in the unit by the amount of insurance for

the applicable type and practice;

(4) Totaling the results of section 12(a)(3);

(5) Subtracting the result of section 12(a)(4) from the result

of section 12(a)(2); and

(6) Multiplying the result of section 12(a)(5) by your share.

(b) The acres with an established stand will include:

(1) Acreage that has at least 75 percent (75%) of a normal

stand;

(2) Acreage abandoned or put to another use without our prior

written consent;

(3) Acreage damaged solely by an uninsured cause; or

(4) Acreage that is harvested and not reseeded.

(c) The amount of indemnity on any spring-planted acreage

determined in accordance with section 12(a) will be reduced 50

percent (50%) if the stand is less than 75 percent (75%) but more

than 55 percent (55%) of a normal stand.

13. 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

13(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, practice, premium rate, and amount of insurance;

(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 January 10, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-1014 Filed 1-14-97; 8:45 am]

BILLING CODE 3410-FA-P