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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-24769

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** September 18, 1997
- **Citation:** 62 FR 48956

## Text

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

[[Page 48957]]

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

[[Page 48958]]

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
------------------------------------------------------------------------
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..
------------------------------------------------------------------------

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

[[Page 48959]]

(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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-24769. Public record. Not legal advice.