General Crop Insurance Regulations; Forage Production Crop Insurance Regulations, and Common Crop Insurance Regulations; Forage Production Crop Insurance Provisions

SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes

specific crop provisions for the insurance of forage production. The

provisions will be used in conjunction with the Common Crop Insurance

Policy Basic Provisions, which contain standard terms and conditions

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

policy changes to better meet the needs of the insured, include the

current forage production crop insurance regulations with the Common

Crop Insurance Policy for ease of use and consistency of terms, add an

optional forage production winter coverage endorsement, and to restrict

the effect of the current forage production crop insurance regulations

to the 1997 and prior crop years.

EFFECTIVE DATE: April 25, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Brayton, Insurance Management

Specialist, Research and Development, Product Development Division,

Federal Crop Insurance Corporation, United States Department of

Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816)

926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

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

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

therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed rule, the public was afforded

60 days to submit written comments, data, and opinions on information

collection requirements previously approved by OMB under OMB control

number 0563-0003 through September 30, 1998. No public comments were

received.

Unfunded Mandates Reform Act of 1995

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

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

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

governments and the private sector. This rule contains no Federal

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

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

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

UMRA.

Executive Order No. 12612

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

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

implications to warrant the preparation of a Federalism Assessment. The

provisions contained in this rule will not have a substantial direct

effect on States or their political subdivisions, or on the

distribution of power and responsibilities among the various levels of

government.

Regulatory Flexibility Act

This regulation will not have a significant impact on a substantial

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

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

regulations, a producer is required to complete an application and

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

required to give notice of loss and provide the necessary information

to complete a claim for indemnity.

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 years. This

regulation does not alter those requirements.

The amount of work required of the insurance companies delivering

and servicing these policies will not increase significantly from the

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

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

to be exempt from the provisions of the Regulatory Flexibility Act (5

U.S.C. 605), and no Regulatory Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with State and

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

published at 48 FR 29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has determined that these

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

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

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

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

such State and local laws are inconsistent herewith. The administrative

appeal provisions published at 7 CFR 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.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review Initiative to eliminate unnecessary or duplicative

regulations and improve those that remain in force.

Background

On Friday, September 13, 1996, FCIC published a proposed rule in

the Federal Register at 61 FR 48416-48420

[[Page 14284]]

to add to the Common Crop Insurance Regulations (7 CFR part 457), two

new sections: 7 CFR 457.117, Forage Production Crop Insurance

Provisions; and 457.127, Forage Production Winter Coverage Endorsement.

The new provisions will be effective for the 1998 and succeeding crop

years. These provisions will replace and supersede the current

provisions for insuring forage production found at 7 CFR part 415

(Forage Production Crop Insurance Regulations). FCIC also amends 7 CFR

part 415 to limit its effect to the 1997 and prior crop years.

Following publication of the proposed rule, the public was afforded

60 days to submit written comments, data, and opinions. A total of 19

comments were received from the crop insurance industry and FCIC. The

comments received, and FCIC's responses, are as follows:

Comment: A representative of FCIC and the crop insurance industry

questioned the definition of ``Air-dry forage'', which references

eighteen percent moisture as the basis for converting forage to an air-

dry equivalent. The commenters recommended that this adjustment should

be based on thirteen percent moisture as specified in the current loss

adjustment procedure.

Response: FCIC agrees with the comments and has amended the

provisions accordingly.

Comment: A representative of FCIC recommended changing the

definition of ``Forage'' to allow insurance coverage for non-grass

forage species other than alfalfa and red clover (e.g., birdsfoot

trefoil).

Response: FCIC agrees with the comment and has amended the

definition to allow insurance coverage for other species listed in the

Actuarial Table.

Comment: The crop insurance industry recommended adding the words

``and quality'' after the words ``providing the quantity'' in the

definition of ``Irrigated practice.''

Response: FCIC agrees water quality is an important issue. However,

since no standards or procedures have been developed to measure water

quality for insurance purposes, quality cannot be included in the

definition. Therefore, no change has been made.

Comment: The crop insurance industry recommended that section 3

``Insurance Guarantees, Coverage Levels, and Prices,'' be changed to

read, ``* * * select only one price percentage * * *''. The commenter

stated this change would shorten the provision because language

regarding varieties having different maximum prices would no longer be

necessary.

Response: The methods used to select price elections vary between

insurance providers. While some require selection of a percentage,

others require selection of a specific dollar amount. The suggested

change will not work in all circumstances. Therefore, no change has

been made.

Comment: A representative of FCIC and the crop insurance industry

stated that section 6 ``Report of Acreage'' should not require separate

acreage reports for acreage insured under the Forage Production Winter

Coverage Endorsement and for all other insurable forage acreage. The

commenter believes that only one acreage report should be required.

Response: Fall planted acreage is eligible for coverage under the

Forage Production Winter Coverage Endorsement the first and subsequent

crop years following year of establishment. Insurance attaches in the

fall for forage acreage insured under the Forage Production Winter

Coverage Endorsement and in the spring for all other forage acreage

that is not eligible for coverage under the endorsement. Therefore,

separate fall and spring acreage reports are necessary to timely

determine the liability and premium when insurance attaches. Therefore,

no change has been made.

Comment: The crop insurance industry raised concern with the

provision contained in section 7(a)(2) that requires the forage crop be

planted for harvest as livestock feed in order for coverage to attach.

The commenters questioned the insurability of forage being used for a

purpose other than livestock feed. For example, a new biomass plant

utilizes a portion of the forage to burn for electrical energy

production in addition to producing livestock feed. Producers may

contract part of their forage to be burned and use the remainder of

production for livestock feed. They questioned whether the acreage

contracted to be burned would be considered insurable and how APH and

loss adjustment procedure would be affected.

Response: Any forage planted for harvest other than for livestock

feed is not insurable. No procedures or provisions have been developed

to provide coverage for forage intended to be harvested as other than

livestock feed. FCIC will consider this issue for future use.

Therefore, no change has been made.

Comment: The crop insurance industry questioned the provisions

contained in section 7(a)(3) ``Insured Crop'' regarding the

insurability of fall seeded forage. The commenters stated that, in some

areas, it is common for fall seeded forage to establish a better stand

than forage seeded prior to July 1 of the same year. They asked if such

cases could be insured by written agreement (following a favorable crop

inspection) the next year (currently the ``year of establishment'' by

definition) instead of having to wait until the following year.

Response: The forage production crop insurance program is designed

to provide coverage the year following the year the forage stand is

established. In general, forage planted after June 30 takes longer to

establish an acceptable stand than forage planted prior to June 30.

Currently there are no procedures in place to evaluate the quality or

adequacy of the stand during the year of establishment to determine

insurability of the stand. Therefore, no change has been made.

Comment: The crop insurance industry questioned section 7(b)(3)

``Insured Crop'', why the ability to insure an overage stand of forage

by written agreement is eliminated. The commenter stated that many

overage fields have the ability to produce in excess of the approved

APH yield and that not all producers keep separate records of the

overage stands, which will be a problem if the overage stands are no

longer insurable. The commenter suggested providing an option to insure

all forage, including overage acreage, with a premium surcharge or a

reduced yield based on a factor multiplied by the average APH yield.

Response: Research indicates that overage forage stand density

decreases with time. As stand density decreases forage production

decreases significantly. The Special Provisions will specify at what

age the forage stand is no longer eligible for insurance coverage. FCIC

agrees that the concept of insuring overage stands with a premium

surcharge or reduced yield should be studied to determine if premium

surcharges or factors to reduce the APH yield can be developed.

Therefore, no change has been made.

Comment: The crop insurance industry recommended that section 12(d)

``Written Agreements,'' should not state that written agreements are

valid for only one year (perhaps refer to the date specified in the

agreement instead). The commenter recommended that written agreements

should be continuous, unless there are significant changes in the

farming operation.

Response: Written agreements are intended to change policy terms or

permit insurance in unusual situations where such changes will not

increase risk. If such practices continue year to

[[Page 14285]]

year, they should be incorporated into the policy or Special

Provisions. It is important to keep non-uniform exceptions to the

minimum and to ensure that the insured is well aware of the specific

terms of the policy. Therefore, no change has been made.

Comment: A representative of FCIC questioned the addition of the

Forage Production Winter Coverage Endorsement, stating that in areas

with little or no winter damage risk, it increases the complexity of

the program by requiring further explanation to producers, separate

rates, acreage reports and dates, which has no true benefit to

producers. The commenter stated that Risk Management Agency should be

putting considerable efforts into developing a program that truly meets

producers needs (i.e. quality adjustment, etc.).

Response: The current regulations allow winter coverage as part of

the basic policy, which affects the premium rates for all insureds even

though not all insureds use this coverage. This endorsement will allow

winter protection for only insureds who elect the winter coverage and

only those electing the endorsement will pay premium for the winter

coverage. FCIC agrees that the concept of developing a program which

fits all producer needs, such as quality adjustment, etc., should be

studied to determine if procedures for other program improvements can

be developed. Therefore, no change has been made.

Comment: The crop insurance industry stated that in many states the

acreage of forage is very small, resulting in small premiums and

expensive administration costs. Producers who choose not to purchase

the winter endorsement will have even smaller premiums, making the

policy less attractive to deliver. The commenter suggested that FCIC

consider offering a forage Group Risk Plan (GRP) program in all states

and counties, which has been suggested by the crop insurance industry

and FCIC simplification work groups.

Response: The GRP forage program is currently offered in a few

selected states and counties. Expanding the GRP forage program to all

states and counties is under consideration. However, no decision has

been rendered at this time. If such expansion occurs, the forage

production producer will have the option to be insured under the GRP

plan or the current forage production crop provisions. Therefore, no

change has been made.

Comment: The crop insurance industry stated that most forage

production policyholders purchased the insurance because of the winter

coverage. They recommended that insureds be allowed to exclude winter

coverage in return for a reduced premium rate.

Response: The current regulations allow winter coverage as part of

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

insure forage production. Now, only those producers who elect the

Forage Production Winter Coverage Endorsement will have to pay the

premium for such coverage. Therefore, no change has been made.

Comment: The crop insurance industry expressed concern with the

extra work and expense that would be required to have winter coverage

begin in the fall. The commenter stated that inspections should be

required in the spring because winter inspections are difficult if

there is snow on the ground.

Response: Crop inspections for fall planted forage must be made in

the fall if the winter coverage endorsement is elected to ensure that

such acreage is insurable before insurance attaches. Therefore, no

change has been made.

List of Subjects in 7 CFR Parts 415 and 457

Crop insurance, Forage production crop insurance regulations,

Forage production.

Final Rule

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

Crop Insurance Corporation hereby amends 7 CFR parts 415 and 457

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

PART 415--FORAGE PRODUCTION CROP INSURANCE REGULATIONS

1. The authority citation for 7 CFR part 415 is revised to read as

follows:

Authority: 7 U.S.C. 1506(1), 1506(p).

2. The subpart heading preceding Sec. 415.1 is revised to read as

follows:

Subpart--Regulations for the 1986 Through 1997 Crop Years

3. Section 415.7 is amended by revising the introductory text of

paragraph (d) to read as follows:

Sec. 415.7 The application and policy.

* * * * *

(d) The application for the 1986 and succeeding crop years is found

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

400.37, 400.38). The provisions of the Forage Production Insurance

Policy for the 1986 through 1997 crop years are as follows:

* * * * *

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

1994 AND SUBSEQUENT CONTRACT YEARS

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

follows:

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

5. Sections 457.117 and 457.127 are added to read as follows:

Sec. 457.117 Forage production crop insurance regulations.

The Forage Production Crop Insurance Provisions for the 1998 and

succeeding crop years are as follows:

FCIC policies:

Department of Agriculture

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Forage Production Crop Insurance Provisions

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

these Crop Provisions, and the Special Provisions; the Special

Provisions will control these Crop Provisions and the Basic

Provisions; and these Crop Provisions will control the Basic

Provisions.

1. Definitions.

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

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

shown in the Special Provisions.

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

means to less than 13 percent moisture before being put into stacks

or bales.

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

harvest is normally completed, which is designated by the calendar

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

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

purpose of livestock feed.

Days--Calendar days.

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

Forage--Planted perennial alfalfa, perennial red clover,

perennial grasses, or a mixture thereof, or other species as shown

in the Actuarial Table.

Good farming practices--The cultural practices generally in use

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

and produce at least the yield used to determine the production

guarantee, and are those recognized by the Cooperative State

Research, Education, and Extension Service as compatible with

agronomic and weather conditions in the county.

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

will not be considered harvested.

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

is artificially applied during the growing season by appropriate

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

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

[[Page 14286]]

establish the irrigated production guarantee on the irrigated

acreage planted to the insured crop.

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

by multiplying the approved APH yield per acre times the coverage

level percentage you elect.

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

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

Written agreement--A written document that alters designated

terms of this policy in accordance with section 12.

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

forage crop has developed an adequate stand. Insurance during the

year of establishment may be available under the forage seeding

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

year of establishment. The year of establishment is determined by

the date of seeding. The year of establishment for spring planted

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

The year of establishment for fall planted forage is designated by

the calendar year after the year in which the crop was planted.

2. Unit Division.

Optional units are not available for forage production. See the

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

Provisions (Sec. 457.8).

3. Insurance Guarantees, Coverage Levels, and Prices for

Determining Indemnities.

In addition to the requirements of section 3 (Insurance

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

of the Basic Provisions (Sec. 457.8):

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

the county insured under this policy unless the Special Provisions

provide different price elections by type, in which case you may

select one price election for each forage 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.

(b) You must report the total production harvested from

insurable acreage for all cuttings for each unit by the production

reporting date.

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

applicable.

4. Contract Changes.

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

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

preceding the cancellation date.

5. Cancellation and Termination Dates.

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

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

and termination dates are September 30.

6. Report of Acreage.

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

you must submit separate acreage reports for acreage insured under

the Forage Production Winter Coverage Endorsement and for all other

insurable forage acreage.

7. Insured Crop .

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

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

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

table:

(1) In which you have a share;

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

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

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

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

insure any forage that:

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

insurance period;

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

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

the Special Provisions.

8. Insurance Period.

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

the Basic Provisions (Sec. 457.8):

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

later of the date we accept your application or the applicable

calendar dates listed below:

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

year of establishment, for acreage not insured under the Forage

Production Winter Coverage Endorsement for:

(i) California--February 1;

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

Washington--April 15;

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

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

22;

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

Coverage Endorsement for acreage insured under such endorsement.

(b) Insurance ends at the earliest of:

(1) Total destruction of the forage crop;

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

(3) Final adjustment of a loss;

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

(5) Abandonment of the forage crop; or

(6) The following dates of the crop year:

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

(ii) California--December 31.

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

you must purchase the Forage Production Winter Coverage Endorsement

(Sec. 457.127).

9. Causes of Loss.

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

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

only against the following causes of loss that occur during the

insurance period:

(1) Adverse weather conditions;

(2) Fire;

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

application of pest control measures;

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

improper application of disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

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

insured peril that occurs during the insurance period.

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

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

insure against damage that occurs after removal from the windrow.

10. Duties in the Event of Damage or Loss.

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

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

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

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

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

any cutting or immediately if probable loss is discovered after

cutting has begun; and

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

Such notice must include the number of acres harvested and tons

produced from each unit.

11. Settlement of Claim.

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

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

allocate any commingled production to such units in proportion to

our liability on the harvested acreage for each unit.

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

will settle your claim by:

(1) Multiplying the insured acreage for each type, by its

respective production guarantee;

(2) Multiplying each result in section 11(b)(1) by the

respective price election you selected;

(3) Totaling the results of each crop type in section 11(b)(2);

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

if applicable, (see section 11(c)) by the respective price election

you selected;

(5) Totaling the results of each crop type in section 11(b)(4);

(6) Subtracting the result in section 11(b)(5) from the result

in section 11(b)(3); and

(7) Multiplying the result in section 11(b)(6) by your share.

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

acreage on the unit will include:

(1) All appraised production as follows:

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

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

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

acceptable to us;

(ii) Production lost due to uninsured causes;

(iii) Unharvested production;

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

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

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

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

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

is not reached and:

(A) 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

[[Page 14287]]

intact, and provide sufficient care for, representative samples of

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

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

appraisals from the samples at the time harvest should have

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

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

to giving you consent to put the acreage to another use will be used

to determine the amount of production to count); or

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

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested; and

(2) All harvested production from the insurable acreage.

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

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

forage.

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

will be counted as forage on a weight basis.

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

Included in Determining Indemnities) of the Basic Provisions

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

unharvested forage on the basis of our field appraisals conducted

after the normal time for each cutting for the area.

12. Written Agreements.

Designated terms of this policy may be altered by written

agreement in accordance with the following:

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

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

12(e);

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

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

effect if the written agreement is not approved;

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

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

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

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

the written agreement is not specifically renewed the following

year, insurance coverage for subsequent crop years will be in

accordance with the printed policy); and

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

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

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

crop is insurable in accordance with the policy and written

agreement provisions.

* * * * *

Sec. 457.127 Forage Production Winter Coverage Endorsement.

The provisions of the Forage Production Winter Coverage Endorsement

for the 1998 and succeeding crop years are as follows:

Department of Agriculture

Federal Crop Insurance Corporation

Forage Production Winter Coverage Endorsement

In return for payment of the additional premium designated in

the actuarial table, the Common Crop Insurance Policy Basic

Provisions (Sec. 457.8) and the Forage Production Crop Insurance

Provisions (Sec. 457.117) are amended to incorporate the following

terms and conditions:

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

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

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

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

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

under a Catastrophic Risk Protection Endorsement.

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

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

before the sales closing date specified in the Special Provisions

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

Endorsement.

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

all counties for which the actuarial table designates forage

production premium rates:

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

years following the year of establishment; and

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

years following the year of establishment.

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

follows:

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

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

calendar dates following the end of the insurance period for the

previous crop year as listed below:

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

(ii) For California--January 1;

(2) Insurance will end on the earliest of:

(i) Total destruction of the forage crop;

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

(iii) Final adjustment of the loss;

(iv) Abandonment of the forage crop;

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

(vi) The following dates of the crop year:

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

(B) California--December 31.

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

effect for as long as your forage production policy remains in

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

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

succeeding crop year by giving written notice on or before the

cancellation date preceding the crop year for which the cancellation

of this Endorsement is to be effective.

Signed in Washington, D.C., on March 19, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-7655 Filed 3-25-97; 8:45 am]

BILLING CODE 3410-FA-P