General Crop Insurance Regulations, Canola and Rapeseed Endorsement; and Common Crop Insurance Regulations, Canola and Rapeseed Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

General Crop Insurance Regulations, Canola and Rapeseed

Endorsement; and Common Crop Insurance Regulations, Canola and Rapeseed

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 canola and rapeseed. 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 convert

the canola and rapeseed pilot insurance program to a permanent

insurance program for the 1998 and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be

accepted until close of business October 20, 1997 and will be

considered when the rule is to be made final.

ADDRESSES: Interested persons are invited to submit written comments to

the Director, Product Development Division, Federal Crop Insurance

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

Kansas City, MO 64131.

FOR FURTHER INFORMATION CONTACT: Gary Johnson, Insurance Management

Specialist, Product Development Division, Research and Development,

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

listed above, telephone (816) 926-3826.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

to be not significant for the purposes of Executive Order 12866, and,

therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

The information collection requirements contained in these

regulations are being reviewed by OMB pursuant to the Paperwork

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

0563-0053. The canola and rapeseed crop insurance provisions are

described in the ``Background'' section of this document.

The title of this information collection is ``Multiple Peril Crop

Insurance.''

The burden associated with the canola and rapeseed crop insurance

provisions is estimated at 18 minutes per response from approximately

8,060 respondents each year for a total number of 2,574 hours. The

information to be collected includes a crop insurance application and

an 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 canola and rapeseed 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.

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.

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 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 economic impact on a

substantial number of small entities. The availability of insurance for

the current population of canola and rapeseed entities is limited to

the six pilot states that have the majority of the canola and rapeseed

production. Under the current pilot program 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 if

adequate records are available to support the certification. The

producer must maintain the production records to support the certified

information for at least three

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years. This regulation does not alter those requirements but extends it

to the national population of canola and rapeseed producers. New

provisions included in this rule will not impact small entities to a

greater extent than large entities. 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

because the information used to determine eligibility is already

maintained in their office. 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 12372

This program is not subject to the provisions of Executive Order

12372, which require intergovernmental consultation with state and

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

published at 48 FR 29115, June 24, 1983.

Executive Order 12988

This proposed rule has been reviewed in accordance with Executive

Order No. 12988 Civil Justice Reform. 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 part 11 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.

Background

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

CFR part 457), a new section, 7 CFR 457.141, Canola and Rapeseed Crop

Insurance Provisions. The canola and rapeseed pilot program is an

Actual Production History (APH) plan of multiple peril crop insurance.

The Canola and Rapeseed Crop Provisions are very similar to other small

grain crop provisions. They allow for a variable late planting period

by region, however which is different from other crop provisions.

The pilot program for canola and rapeseed has generally worked

well. Over 2,000 producers and approximately a quarter million acres

from the selected pilot counties in Idaho, Minnesota, Montana, North

Dakota, and Washington were covered by the pilot program for both the

1995 and 1996 crop years. Prevented planting losses, however, were high

primarily due to poor planting conditions. To address this concern,

this proposed rule provides that the late planting period and

associated production guarantee reduction may be varied in the Special

Provisions. Variance will be on a county-by-county basis, and producers

will be notified by copy of the Special Provisions. Also, final

planting dates were changed in some counties to reduce prevented

planting losses.

Prevented planting provisions will be included in the Basic

Provisions (Sec. 457.8) which are in the proposed rule process. Those

provisions also have been adopted in this proposed rule. When the Basic

Provisions (Sec. 457.8) become final, however, the provisions will be

removed from the crop provisions as necessary. Prevented planting

coverage will be provided for canola and rapeseed if the actuarial

table contains levels of prevented planted coverage for canola and

rapeseed.

The proposed provisions will be effective for the 1998 and

succeeding crop years. These provisions will replace the current

unpublished provisions that insure canola and rapeseed under pilot

program status.

List of Subjects in 7 CFR Part 457

Crop insurance, Canola and rapeseed crop provisions.

Proposed Rule

Accordingly, as set forth in the preamble, the Federal Crop

Insurance Corporation proposes to amend 7 CFR part 457 as follows:

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

1994 AND SUBSEQUENT CONTRACT YEARS

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

follows:

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

2. Section 457.161 is added to read as follows:

Sec. 457.161 Canola and rapeseed crop insurance provisions.

The Canola and Rapeseed 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:

Canola and Rapeseed Crop Provisions

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

these Crop Provisions, the Special Provisions, and the Catastrophic

Risk Protection Endorsement, if applicable, the Special Provisions

will control these Crop Provisions and the Basic Provisions; and

these Crop Provisions will control the Basic Provisions and the

Catastrophic Risk Protection Endorsement, if applicable, will

control all provisions.

1. Definitions.

Canola. A crop of the genus Brassica as defined in accordance

with the Official United States Standards for Grain--Subpart C--U.S.

Standards for Canola.

Days. Calendar days.

Final planting date. The date contained in the Special

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

planted in order to be insured for the full production guarantee.

FSA. The Farm Service Agency an agency of the United States

Department of Agriculture, or any 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 are those generally recognized by the Cooperative

State Research, Education, and Extension Service as compatible with

agronomic and weather conditions in the county.

Harvest. Combining or threshing for seed. A crop that is swathed

prior to combining is not considered harvested.

Interplanted. Acreage on which two or more crops or types are

planted in a manner that does 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 production guarantee on the irrigated

acreage planted to the insured crop.

Late planted. Acreage planted to the insured crop during the

late planting period.

Late planting period. The period that begins the day after the

final planting date for the insured crop type and ends 25 days after

the final planting date, unless otherwise provided by the Special

Provisions.

Local market price (Canola). The cash price per pound for U.S.

No. 2 grade canola that reflects the maximum limits of quality

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deficiencies allowable for the U.S. No. 2 grade canola.

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

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

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

planting method and production practice. 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 will be considered planted. Acreage

planted 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,

condition of the field, marketing window, and time to crop maturity,

that replanting to the insured crop will allow the crop to attain

maturity prior to the calendar date for the end of the insurance

period. It will not be considered practical to replant after the end

of the late planting period unless replanting is generally occurring

in the area.

Price of damaged production. The cash price per pound for canola

that qualifies for quality adjustment in accordance with section 12

of these crop provisions.

Production guarantee (per acre). The number of pounds determined

by multiplying the approved Actual Production History (APH) yield

per acre by the coverage level percentage you elect.

Rapeseed. A crop of the genus Brassica that contains at least 30

percent of an industrial type of oil as shown on the Special

Provisions and that is measured on a basis free from foreign

material.

Replanting. Performing the cultural practices necessary to

replace the insured crop and then replacing the insured crop in the

insured acreage with the expectation of growing a successful crop.

Swathed. Severance of the stem and seed pods from the ground and

placing into windrows without removal of the seed from the pod.

Timely planted. Planted on or before the final planting date

designated in the Special Provisions for the insured crop type in

the county.

Written Agreement. A written document that alters designated

terms of a policy in accordance with section 15.

2. Unit Division.

(a) Unless limited by the Special Provisions, a unit as defined

in section 1 of the Basic Provisions (Sec. 457.8) (basic unit) may

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

all the conditions of this section.

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

basis other than as described under this section.

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

combine all optional units which are not in compliance with these

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

additional premium paid on the optional units that have been

combined will be refunded to you.

(d) All optional units you selected for the crop must be

identified on the acreage report for that crop year.

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

unit:

(1) You must have provided records by the production reporting

date, 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;

(3) For each crop year, 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 after loss adjustment under the policy is completed; and

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

criteria, as applicable, unless otherwise specified by written

agreement:

(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 which have not been surveyed using the systems identified

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

systems exist but boundaries are not readily discernable, each

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

single 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 your 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 record 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 optional unit,

they will be a part of the unit containing the irrigated acreage.

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.

(iii) Optional units by type as designated by the Special

Provisions: In addition to or instead of establishing optional units

by section, section equivalent, FSA Farm Serial Number, or non-

irrigated and irrigated acreage, optional units may be established

by type where authorized by the Special Provisions.

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

Indemnities.

In addition to the requirements of section 3 (Insurance

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

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

election for all the canola and rapeseed 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 canola and rapeseed 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 100 percent of the maximum

price election for a specific type, you must also choose 100 percent

of the maximum price election for all other types.

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 June 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

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All counties in Georgia................ September 30.

All other counties without fall planted March 15.

types specified on the actuarial

table..

All other counties with fall planted August 31.

types specified on the actuarial

table..

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6. Insured Crop.

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

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

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

actuarial table:

(a) In which you have a share;

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

(c) That is not, unless allowed by Special Provisions or by

written agreement:

(1) Interplanted with another crop; or

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(2) Planted into an established grass or legume.

7. Insurable Acreage.

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

of the Basic Provisions (Sec. 457.8):

(a) Any acreage of the insured crop that is 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; and;

(b) We will not insure any acreage that does not meet the

rotation requirements contained in the Special Provisions.

8. Insurance Period.

In accordance with the provisions of section 11 (Insurance

Period) of the Basic Provisions (Sec. 457.8), the end of the

insurance period is October 31 of the calendar year in which the

crop is normally harvested.

9. Causes of Loss.

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

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

against the following causes of loss which occur 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, unless proper measures to control wildlife have

not been taken;

(f) Earthquake;

(g) Volcanic eruption; or

(h) Failure of the irrigation water supply, if applicable,

caused by an insured cause of loss that occurs during the insurance

period.

10. Replanting Payment.

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

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

the insured crop is damaged by an insurable cause of loss to the

extent that the remaining stand will not produce at least 90 percent

of the production guarantee for the acreage, and it is practical to

replant or if we require you to replant in accordance with section

7(a).

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

be the lesser of 20 percent of the production guarantee or 175

pounds, multiplied by your price election, multiplied by your

insured share.

(c) When the canola and rapeseed is replanted using a practice

or type that is uninsurable as an original planting, the liability

for the unit will be reduced by the amount of the replanting payment

which is attributable to your share. The premium amount will not be

reduced.

11. Duties In The Event of Damage or Loss.

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

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

representative samples of the unharvested crop that we require must

be at least 10 feet wide and extend the entire length of each field

in the unit. The samples must not be harvested or destroyed until

the earlier of our inspection or 15 days after harvest of the

balance of the unit is completed.

12. Settlement of Claim.

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

you are unable to provide separate acceptable production records:

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

for which acceptable production records were not provided; or

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

production to such units in proportion to our liability on the

harvested acreage for the units.

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

will settle your claim by:

(1) Multiplying the insured acreage by its respective production

guarantee;

(2) Multiplying each result in section 12(b)(1) by the

respective price election for each type, if applicable;

(3) Totaling the results in section 12(b)(2);

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

if applicable, (see section 12(c)) by the respective price election;

(5) Totaling the results in section 12(b)(4);

(6) Subtracting the total in section 12(b)(5) from the total in

section 12(b)(3); and

(7) Multiplying the result in section 12(b)(6) by your share.

(c) The total production to count (pounds) 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) That is put to another use without our consent;

(C) That is damaged solely by uninsured causes; or

(D) For which you fail to provide acceptable production records;

(ii) Production lost due to uninsured causes;

(iii) Unharvested production (mature unharvested production may

be adjusted for quality deficiencies and excess moisture in

accordance with section 12(d)); and

(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

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

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

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

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

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested; and

(2) All harvested production from the insurable acreage.

(d) Mature canola and rapeseed may be adjusted for excess

moisture and quality deficiencies. If moisture adjustment is

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

(1) Canola and rapeseed production will be reduced by 0.12

percent for each 0.1 percentage point of moisture in excess of 8.5

percent. We must be permitted to obtain samples of the production to

determine the moisture content.

(2) Canola production will be eligible for quality adjustment

if:

(i) Deficiencies in quality, in accordance with the Official

United States Standards for Grain, result in the canola not meeting

the grade requirements for U.S. No. 3 or better (U.S. Sample grade)

because of kernel damage (excluding heat damage), or has a musty,

sour, or commercially objectionable foreign odor; or

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

the Food and Drug Administration or other public health

organizations of the United States as being injurious to human or

animal health.

(3) Quality will be a factor in determining your loss in canola

production only if:

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

cause of loss against which insurance is provided under these crop

provisions and which occurs within the insurance period;

(ii) The deficiencies, substances, or conditions result in a net

price for the damaged production that is less than the local market

price;

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

conditions are made using samples of the production obtained by us

or by a disinterested third party approved by us; and

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

canola under the authority of the United States Grain Standards Act

or the United States Warehouse Act with regard to deficiencies in

quality, or by a laboratory approved by us with regard to substances

or conditions injurious to human or animal health.

(4) Canola production that is eligible for quality adjustment,

as specified in sections 12(d) (2) and (3), will be reduced:

(i) In accordance with the quality adjustment factors contained

in the Special Provisions; or

(ii) If quality adjustment factors are not contained in the

Special Provisions, quality adjustment factors will be determined as

follows:

(A) Divide the price of damaged production by the local market

price to determine the quality adjustment factor.

(B) The price of damaged production and the local market price

will be determined at the earlier of the date such quality adjusted

production is sold or the date of final inspection for the unit.

(C) Discounts used to establish the price of damaged production

will be limited to those that are usual, customary, and reasonable.

(D) The price of damaged production will not be reduced for:

(1) Moisture content;

[[Page 48960]]

(2) Damage due to uninsured causes;

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

with normal harvesting, handling, and marketing of the canola;

except, if the price of damaged production can be increased by

conditioning, we may reduce the price of damaged production after

the production has been conditioned by the cost of conditioning but

not lower than the price of damaged production before conditioning.

We may obtain prices of damaged production from any buyer of our

choice. If we obtain prices of damaged production from one or more

buyers located outside your local market area, we will reduce such

price of damaged production by the additional costs required to

deliver the canola to those buyers; or

(4) Erucic acid or glucosinolates in excess of the amount

allowed under the definition of canola contained in the Official

United States Standards for Grain.

(E) Factors not associated with grading under the Official

United States Standards for Grain including, but not limited to

protein and oil, will not be considered; and

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

excessive moisture (the moisture-adjusted gross pounds) of the

damaged or conditioned production will then be multiplied by the

quality adjustment factor to determine the net production to count.

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

crop may be counted as production of the insured crop on an

unadjusted weight basis.

13. Late Planting.

Insurance will be provided for acreage planted to the insured

crop after the final planting date in accordance with the following:

(a) The production guarantee or amount of insurance for each

acre planted to the insured crop during the late planting period

will be reduced by each day planted after the final planting date

by:

(1) One percent (1%) for the 1st through the 10th day; and

(2) Two percent (2%) for the 11th through the 25th day; or

(3) Unless otherwise provided by the Special Provisions.

(b) The production guarantee or amount of insurance for each

acre of the insured crop that is planted to the insured crop after

the late planting period (or after the final planting date for crops

that do not have a late planting period) will be the same as the

production guarantee or amount of insurance that is provided for

acreage of the insured crop that is prevented from being planted

(see section 14). Such acreage must have been prevented from being

planted by an insurable cause occurring within the insurance period

for prevented planting coverage.

(c) The premium amount for insurable acreage planted to the

insured crop after the final planting date will be the same as that

for timely planted acreage. If the amount of premium you are

required to pay (gross premium less our subsidy) for acreage planted

after the final planting date exceeds the liability on such acreage,

coverage for those acres will not be provided (no premium will be

due and no indemnity will be paid for such acreage).

14. Prevented Planting.

(a) A prevented planting payment may be made to you for eligible

acreage you were prevented from planting if:

(1) You were prevented from planting the insured crop by an

insured cause that occurs:

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

Provisions for the insured crop in the county for the crop year the

application for insurance is accepted; or

(ii) For any subsequent crop year, on or after the sales closing

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

provided insurance has been in force continuously since that date.

Cancellation for the purpose of transferring the policy to a

different insurance provider for the subsequent crop year will not

be considered a break in continuity for the purpose of the preceding

sentence; and

(2) You notify us within 72 hours after the final planting date

if you are prevented from planting by such date, whether or not you

intend to plant any acreage of the insured crop after the final

planting date. In addition to this notice, you must include any

acreage of the insured crop that was prevented from being planted on

your acreage report.

(b) The Actuarial Table contains the levels of prevented

planting coverage that you may elect for the crop on or before the

sales closing date. If you do not elect one of the available

coverages by the sales closing date, you will receive the prevented

planting coverage specified in the Crop Provisions. If you have a

Catastrophic Risk Protection Endorsement, you will receive the

lowest level of prevented planting coverage available for the crop.

(c) The premium amount for acreage that is prevented from being

planted will be the same as that for timely planted acreage. If the

amount of premium you are required to pay (gross premium less our

subsidy) for acreage that is prevented from being planted exceeds

the liability on such acreage, coverage for those acres will not be

provided (no premium will be due and no indemnity will be paid for

such acreage).

(d) Drought or failure of the irrigation water supply will not

be considered to be an insurable cause of loss for the purposes of

prevented planting unless, on the final planting date:

(1) For non-irrigated acreage, the area that is prevented from

being planted is classified by the Palmer Drought Severity Index as

being in a severe or extreme drought; or

(2) For irrigated acreage, there is not a reasonable probability

of having adequate water to carry out an irrigated practice.

(e) The maximum number of acres that may be eligible for a

prevented planting payment for the crop will be determined as

follows:

(1) The base eligible acres for the insured crop will be

determined in accordance with the following table.

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

Base eligible acres Base eligible acres

(if you have (if you have not

produced the crop produced the crop

Type of crop for which insurance for which insurance

was available in any is available in any

of the 4 most recent of the 4 most recent

crop years) crop years)

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

(i)(A) The crop's insurance (B) The maximum (C) The number of

guarantee is based on APH number of acres acres approved by

or the crop does not certified for APH written agreement

require yield certification purposes or in accordance with

and the crop is not reported for the provisions in

required to be contracted insurance for the this section and

with a processor to be crop in any one of section 15.

insured. the 4 most recent

crop years (not

including reported

prevented planting

acreage that was

planted to a

substitute crop

other than an

approved cover

crop).

(ii)(A) The crop must be (B) The number of (C) The number of

contracted with a processor acres of the crop acres of the crop

to be insured and the specified in the specified in the

contract specifies a number processor contract.. processor contract.

of acres contracted for the

crop year..

(iii)(A) The crop must be (B) The result of (C) The result of

contracted with a processor dividing the dividing the

to be insured and the quantity of quantity of

processor contract production stated production stated

specifies a quantity of in the processor in the processor

production that will be contract by your contract by your

accepted.. approved yield (For approved yield (For

the purposes of the purposes of

establishing the establishing the

base number of base number of

prevented planting prevented planting

acres, any acres, any

reductions applied reductions applied

to the transitional to the transitional

yield for failure yield for failure

to certify acreage to certify acreage

and production for and production for

a prior year will a prior year will

not be used.). not be used.)

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

[[Page 48961]]

(2) All requests for written agreement under this section must

be submitted to us on or before the sales closing date and include,

by crop, the number of acres of all crops for which insurance is

offered under the authority of the Act that you intend to plant in

the county.

(3) The total number of acres requested for all crops cannot

exceed the number of acres of cropland in your farming operation for

the crop year.

(4) The number of acres determined in section 14(e)(1)(i)(B) may

be increased by multiplying it by the ratio of the total cropland

acres that you are farming this year (if greater) to the total

cropland acres that you farmed in the previous year, provided that

you submit proof to us on or before the sales closing date for the

insured crop that you have purchased or leased additional land, that

acreage will be released from any USDA program which prohibits

harvest of a crop, or that the additional acreage has not been

cropped in any of the four most recent crop years. Such acreage must

have been purchased, leased, released from the USDA program, or

intended to be brought into production in time to plant it for the

current crop year.

(5) The result of section 14(e)(1) or 14(e)(4), whichever is

applicable, will be reduced by subtracting the number of acres of

the crop that are timely and late planted.

(f) Regardless of the number of eligible acres determined in

section 14(e), prevented planting coverage will not be provided for

any acreage:

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

the insurable crop acreage in the unit, whichever is less (We will

assume that any prevented planting acreage within a field that

contains planted acreage would have been planted to the same crop

that is planted in the field, unless the prevented planting acreage

constitutes at least 20 acres or 20 percent of the insurable acreage

in the field and you can prove that you intended to plant such

acreage to another crop);

(2) For which the Actuarial Table does not designate a premium

rate unless a written agreement designates such premium rate;

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

unplanted under any program administered by the USDA;

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

if you or any other person receives a prevented planting payment for

any crop for the same acreage in the same crop year, unless you have

coverage greater than that applicable to the Catastrophic Risk

Protection Plan of Insurance and have records of acreage and

production that are used to determine your approved yield that show

the acreage was double-cropped in each of the last 4 years in which

the insured crop was grown on the acreage;

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

if any crop from which any benefit is derived under any program

administered by the USDA is planted and fails, or if any crop is

planted and harvested, hayed or grazed on the same acreage in the

same crop year (other than a cover crop which may be hayed or grazed

after the final planting date for the insured crop), unless you have

coverage greater than that applicable to the Catastrophic Risk

Protection Plan of Insurance and have records of acreage and

production that are used to determine your approved yield that show

the acreage was double-cropped in each of the last 4 years in which

the insured crop was grown on the acreage;

(6) Of a crop that is prevented from being planted if a cash

lease payment is also received for use of the same acreage in the

same crop year (not applicable if acreage is leased for haying or

grazing only);

(7) For which planting history or conservation plans indicate

that the acreage would have remained fallow for crop rotation

purposes;

(8) That is in excess of the number of acres eligible for a

prevented planting payment or the number of eligible acres

physically available for planting;

(9) For which you cannot provide proof that you had the inputs

available to plant and produce a crop with the expectation of at

least producing the yield used to determine the production guarantee

or amount of insurance;

(10) Based on an irrigated practice production guarantee or

amount of insurance unless adequate irrigation facilities were in

place to carry out an irrigated practice on the acreage prior to the

insured cause of loss that prevented you from planting; or

(11) Based on a price election, amount of insurance or

production guarantee for a crop type that you did not plant in at

least one of the four most recent years. Types for which separate

price elections, amounts of insurance, or production guarantees are

available must be included in your APH database in at least one of

the most recent four years, or, crops that do not require yield

certification (crops for which the insurance guarantee is not based

on APH) must be reported on your acreage report in at least one of

the four most recent crop years.

(g) The prevented planting payment for any eligible acreage

within a unit will be determined by:

(1) Multiplying the liability per acre for timely planted

acreage of the insured crop (the amount of insurance per acre or the

production guarantee per acre multiplied by the price election for

the crop, or type if applicable) by the prevented planting coverage

level percentage you elected, or that is contained in the Crop

Provisions if you did not elect a prevented planting coverage level

percentage;

(2) Multiplying the result of section 14(g)(1) by the number of

eligible prevented planting acres in the unit; and

(3) Multiplying the result of section 14(g)(2) by your share.

15. Written Agreements.

Terms of this policy which are specifically designated for the

use of written agreements 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

15(e);

(b) The application for written agreement must contain all 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 crops years will be in

accordance with printed policy); and

(e) An application for 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 11, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-24769 Filed 9-17-97; 8:45 am]

BILLING CODE 3410-08-P