General Crop Insurance Regulations, Fresh Market Sweet Corn Endorsement; and Common Crop Insurance Regulations, Fresh Market Sweet Corn Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

7 CFR Parts 401 and 457

General Crop Insurance Regulations, Fresh Market Sweet Corn

Endorsement; and Common Crop Insurance Regulations, Fresh Market Sweet

Corn Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes

specific crop provisions for the insurance of fresh market sweet corn.

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 Fresh Market Sweet Corn Endorsement under the

Common Crop Insurance Policy for ease of use and consistency of terms,

and to restrict the effect of the current Fresh Market Sweet Corn

Endorsement to the 1997 and prior crop years.

EFFECTIVE DATE: March 28, 1997.

FOR FURTHER INFORMATION CONTACT: Linda Williams, 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 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. New provisions included in this rule will not

impact small entities to a greater extent than large entities. Under

the current regulations, a producer is required to complete an

application and acreage report. If the crop is damaged or destroyed,

the insured is required to give notice of loss and provide the

necessary information to complete a claim for indemnity. This

regulation does not alter those requirements.

The amount of work required of the insurance companies delivering

and servicing these policies will not increase significantly from the

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

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

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

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

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with state and

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

published at 48 FR 29115, June 24, 1983.

Executive Order No. 12988

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, January 3, 1997, FCIC published a proposed rule making,

in the Federal Register at 62 FR 333-338 to add to the Common Crop

Insurance Regulations (7 CFR part 457) a new section, 7 CFR 457.129,

Fresh Market Sweet Corn Crop Insurance Provisions. The new provisions

will be effective for the 1998 and succeeding crop years. These

provisions will replace and supersede the current provisions for

insuring fresh market sweet corn found at 7 CFR 401.138 (Fresh Market

Sweet Corn Endorsement). This rule also amends Sec. 401.138 to limit

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

regulation to remove and reserve Sec. 401.138.

Following publication of the proposed rule, the public was afforded

30 days to submit written comments, data and opinions. A total of 21

comments were received from the crop insurance industry and FCIC

Regional Service Offices (RSO). The comments received, and FCIC's

responses, are as follows:

Comment: A representative of FCIC recommended adding carton to the

definition of crate. To expand fresh market sweet corn insurance, the

method of measuring production to count must be applicable to other

areas. The commenter stated cartons containing 48 to 52 ears were used

in the midwest.

Response: FCIC agrees that revising the unit of measure would allow

expansion of fresh market sweet corn crop insurance into areas that

utilize units of measure other than the standard crate. The provisions

have been amended to replace the term ``crate'' with the term

``container''. The definition of ``container'' specifies the unit of

measure and the number of pounds or number of ears of the insured crop

will be specified in the Special Provisions.

Comment: A representative of FCIC recommended adding to the

definition

[[Page 14782]]

of excess wind, ``or an occurrence at a time that prevents adequate

pollination''.

Response: FCIC agrees with the comment and has amended the

provision contained in section 1 accordingly.

Comment: One comment from the crop insurance industry recommended

clarifying the language in section 2(a) by stating ``Basic units, as

defined in section 1 (Definitions) of the Basic Provisions, will be

established by planting period.''

Response: FCIC agrees with the comment and has amended section 2(a)

to indicate a basic unit will be established by planting period.

However, the definition of ``unit'' is contained in the Basic Provision

and no change will be made in that portion of the provision.

Comment: One comment received from the crop insurance industry

stated that the references to land measurements such as leagues and

labors was unnecessary. These type of land measurement were not

applicable to the Southeast and crop insurance for fresh market sweet

corn is only available in the Southeast.

Response: Fresh market sweet corn insurance may be expanded into

other areas where such measurements are applicable. Therefore, no

change will be made.

Comment: The crop insurance industry questioned if it was necessary

to specify in section 3(c) that the CAT amount of insurance will be in

the Actuarial Table when all available amounts of insurance are

specified in section 3(a).

Response: FCIC agrees section 3(a) states the coverage levels and

amounts of insurance are contained in the Actuarial Table. As section

3(c) provides no additional statements or requirements, FCIC has

deleted this provision and renumbered the remaining provisions.

Comment: One comment from the crop insurance industry stated

section 3 contained a heading in the stage chart and a statement within

the chart was misleading. The chart heading suggested the percentages

represented coverage levels that the insured would select rather than

the amount of insurance that is selected by the insured and that the

chart statement ``until the acreage is harvested'' suggests there is a

stage after the final stage for after harvest. The commenter suggested

the chart heading should state. ``Percent in effect of your amount of

insurance.''

Response: FCIC believes the wording in the stage chart is clearly

stated. Therefore, no change will be made.

Comment: A representative of FCIC recommended the final stage

contained in Section 3(d) should be the harvested stage. The commenter

indicated they did not understand why the final stage would begin at

tasseling.

Response: Fresh market sweet corn insurance is structured to cover

most of the producer's pre-harvest costs in case of a crop failure. To

assure indemnities are paid based on the costs incurred at the time of

loss, the crop maturity stages and corresponding maximum dollar amount

of insurance represent the levels at which a producer has incurred the

pre-harvest cost. FCIC has determined that a producer has reached 100

percent of the pre-harvest costs when the sweet corn crop reaches

tasseling and, therefore, receives 100 percent of the per acre dollar

amount of insurance. FCIC believes the stage levels are representative

of the program objectives and no changes will be made.

Comment: A representative of FCIC recommended deleting from the

list of states with a contract change date of November 30, the specific

state names of Alabama and South Carolina. The provision already

specifies ``all other states''.

Response: FCIC agrees with the comment and has amended section 4

accordingly.

Comment: The crop insurance industry recommended a grammatical

change in section 7, to add a comma and hyphen in ``e.g., fall-planted

irrigated.''

Response: FCIC agrees with the comment and has amended the

provision in section 7 accordingly.

Comment: An FCIC representative recommended changing section

8(b)(3) to allow insurance on non-irrigated acreage. Production of

fresh market sweet corn on non-irrigated acreage is a recommended

farming practice in Iowa, Minnesota and Wisconsin.

Response: FCIC has amended the provision contained in section

8(b)(3) to state that the insured crop will be ``grown under an

irrigated practice, unless otherwise provided in the Special

Provisions'' to allow expansion into other areas as appropriate.

Comment: The crop insurance industry stated the provision in

section 9(a) that states we will insure newly cleared land or former

pasture land planted to fresh market sweet corn is new to the crop

provisions. The commenter questioned if a waiting period was required

before planting the insured crop on newly cleared or former pasture

land.

Response: To provide consistency among the fresh market vegetable

crops, FCIC incorporated provisions contained in other fresh market

crop endorsements and also clarified that former pasture land planted

to the insured crop is insurable. It is a recommended practice for the

fresh market vegetable crops to be planted on newly cleared and former

pasture land so no waiting period is required prior to planting the

insured crop.

Comment: The crop insurance industry questioned if the phrase

``coverage begins . . . the later of the date we accept your

application, or when the sweet corn is planted in each planting

period'' means that an application could be accepted after the sales

closing to have coverage for subsequent planting periods in the crop

year. If so, what is the purpose of having one sales closing date for

the crop?

Response: Section 10 of these provisions do not alter the

requirement contained in section 11 of the Basic Provisions, which

states the application must be submitted by the sales closing date. The

sales closing date corresponds to the earliest planting period so only

one application is filed for the crop year and covers all subsequent

planting periods. Since there are multiple planting periods in each

crop year, the date insurance attaches in each planting period must be

established. Provisions in section 10 simply clarify when insurance

will attach. Therefore, no change will be made.

Comment: Two comments from the crop insurance industry and two

comments from FCIC representatives recommended removing disease and

insect infestation as uninsured causes of loss. The commenters

suggested that disease and insects should be an insured cause of loss

if a producer exhausts all reasonable means to protect the crop. This

would provide coverage for new diseases and insects that cannot

presently be controlled by the chemicals that are available.

Response: FCIC agrees that coverage should be available for damage

due to disease and insect infestation for which no effective control

measure exists. Therefore, FCIC has amended the provisions contained in

section 11(b)(1) accordingly.

Comment: Two comments from the crop insurance industry recommended

raising the maximum amount of the replanting payment per acre. Both

commenters stated the maximum amount provided in the current policy is

not sufficient to cover actual costs.

Response: FCIC agrees there may be instances when replanting costs

exceed $65.00 per acre as provided in the current endorsement.

Therefore, provisions contained in section 12(b) have been revised to

state that the maximum amount of the replanting

[[Page 14783]]

payment per acre will be the lesser of your actual cost of replanting,

or the result obtained by multiplying the maximum amount of the

replanting payment contained in the applicable Special Provisions by

your insured share.

Comment: The crop insurance industry suggested combining the

provisions in section 15(e) with the provisions in 15(a).

Response: Approval of written agreements requested after the sales

closing date is the exception, not the rule. Therefore, these

provisions should be kept separate and no changes have been made.

Comment: The crop insurance industry recommended the requirement

for a written agreement to be renewed each year be removed. Terms of

the agreement should be stated in the agreement to fit the particular

situation for the policy, or if no substantive changes occur from one

year to the next, allow written agreements to be continuous.

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 year, they should be

incorporated into the policy or Special Provisions. It is important to

minimize exceptions to assure that the insured is well aware of the

specific terms of the policy. Therefore, no change will be made.

Comment: One comment from the crop insurance industry expressed

concerns regarding payment of additional premium under the provisions

of the minimum value option. In prior years, producers received an

allowable cost of $2.50 per crate for no additional premium charge.

Response: FCIC believes the commenter misunderstood the provisions

contained in the minimum value option. To provide consistency among the

fresh market vegetable crops, FCIC incorporated the minimum value

option into the sweet corn provisions. The minimum value option will,

for an additional premium, allow the total value of production to count

on a unit to be as low as zero. The additional premium charge will be

for those producers who elect the minimum value option. For those

producers who do not elect the minimum value option, section 14

provides that the total value of production to count will be the

greater of: (1) the price received for each container minus the

allowable cost; or (2) the minimum value per container. No changes will

be made.

Good cause is shown to make this rule effective upon publication in

the Federal Register. This rule improves the fresh market sweet corn

insurance coverage and brings it under the Common Crop Insurance Policy

Basic Provisions for consistency among policies. The earliest contract

change date that can be met for the 1998 crop year is April 30, 1997.

It is therefore, imperative that these provisions be made final before

that date so that the reinsured companies and insureds may have

sufficient time to implement these changes. Therefore, public interest

requires the agency to make the rules effective upon publication.

List of Subjects in 7 CFR Parts 401 and 457

Crop insurance, Fresh market sweet corn crop insurance regulations,

Fresh market sweet corn.

Final Rule

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

Crop Insurance Corporation hereby amends 7 CFR parts 401 and 457

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

PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE

1988 AND SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR part 401 continues to read as

follows:

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

2. In Sec. 401.138 the introductory paragraph is revised to read as

follows:

Sec. 401.138 Fresh market sweet corn endorsement.

The provisions of the Fresh Market Sweet Corn Endorsement for the

1991 through the 1997 crop years are as follows:

* * * * *

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

1994 AND SUBSEQUENT CONTRACT YEARS

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

follows:

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

4. Section 457.129 is added to read as follows:

Sec. 457.129 Fresh market sweet corn crop insurance provisions.

The Fresh Market Sweet Corn 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:

Fresh Market Sweet Corn Crop Provisions

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

these crop provisions, and the Special Provisions; the Special

Provisions will control these crop provisions and the Basic

Provisions; and these crop provisions will control the Basic

Provisions.

1. Definitions

Container--The unit for measurement of the insured crop as

specified in the Special Provisions.

Crop year--In lieu of the definition of ``crop year'' contained

in section 1 (Definitions) of the Basic Provisions (Sec. 457.8),

crop year is a period of time that begins on the first day of the

earliest planting period for fall planted sweet corn and continues

through the last day of the insurance period for spring planted

sweet corn. The crop year is designated by the calendar year in

which spring planted sweet corn is harvested.

Days--Calendar days.

Direct marketing--Sale of the insured crop directly to consumers

without the intervention of an intermediary such as a wholesaler,

retailer, packer, processor, shipper or buyer. Examples of direct

marketing include selling through an on-farm or roadside stand,

farmer's market, and permitting the general public to enter the

field for the purpose of picking all or a portion of the crop.

Excess rain--An amount of precipitation sufficient to directly

damage the crop.

Excess wind--Wind speed strong enough to prevent adequate

pollination or cause lodging of stalks and prevent a normal harvest.

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

Department of Agriculture or a successor agency.

Freeze--The formation of ice in the cells of the plant or its

fruit, caused by low air temperatures.

Good farming practices--The cultural practices generally in use

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

and are those recognized by the Cooperative State Research,

Education and Extension Service as compatible with agronomic and

weather conditions in the county.

Harvest--The picking of sweet corn on the unit.

Interplanted--Acreage on which two or more crops 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 for the insured crop to make normal

progress toward maturity.

Marketable sweet corn--Sweet corn that meets the standards for

grading U.S. No. 1 or better and will withstand normal handling and

shipping.

[[Page 14784]]

Plant stand--The number of live plants per acre prior to the

occurrence of an insurable cause of loss.

Planted acreage--Land in which, for each planting period, seed

has been placed by a machine appropriate for the insured crop and

planting method, at the correct depth, into a seedbed that has been

properly prepared for the planting method and production practice.

For each planting period, fresh market sweet corn must initially

be planted in rows far enough apart to permit mechanical

cultivation. Acreage planted in any other manner will not be

insurable unless otherwise provided by the Special Provisions or by

written agreement.

Planting period--The period of time designated in the Actuarial

Table in which fresh market sweet corn must be planted to be

considered fall, winter, or spring-planted sweet corn.

Potential production--The number of containers of sweet corn

that the sweet corn plants will or would have produced per acre by

the end of the insurance period, assuming normal growing conditions

and practices.

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 windows, 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 (inability to

obtain seed will not be considered when determining if it is

practical to replant).

Replanting--Performing the cultural practices necessary to

replace the sweet corn seed and then replacing the sweet corn seed

in the insured acreage with the expectation of growing a successful

crop.

Sweet corn--A type of corn with kernels containing a high

percentage of sugar that is adapted for human consumption as a

vegetable.

Written agreement--A written document that alters designated

terms of a policy in accordance with section 15.

2. Unit Division

(a) In addition to the requirements contained in section 1

(Definitions) of the Basic Provisions (Sec. 457.8), (basic unit), a

basic unit will also be established by planting period.

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

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

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

agreement for such further division exists.

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

combine all optional units that are not in compliance with these

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

combine the optional units at any time we discover that you have

failed to comply with these provisions. If failure to comply with

these provisions is determined to be inadvertent, and the optional

units are combined into a basic unit, that portion of the premium

paid for the purpose of electing optional units will be refunded to

you for the units combined.

(d) All optional units established for a crop year 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 records, which can be independently verified,

of planted acreage and production for each optional unit for at

least the last crop year in which the crop was planted;

(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) You must have 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

loss adjustment is completed by us; and

(4) Each optional unit must be located in a separate legally

identified section. In the absence of sections, we may consider

parcels of land legally identified by other methods of measure

including, but not limited to Spanish grants, railroad surveys,

leagues, labors, or Virginia Military Lands, as the equivalent of

sections for unit purposes. In areas that have not been surveyed

using the systems identified above, or another system approved by

us, or in areas where such systems exist but boundaries are not

readily discernable, each optional unit must be located in a

separate farm identified by a single FSA Farm Serial Number.

3. Amounts of Insurance and Production Stages

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

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

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

coverage level (and the corresponding amount of insurance designated

in the Actuarial Table for the applicable planting period and

practice) for all the sweet corn in the county insured under this

policy.

(b) The amount of insurance you choose for each planting period

and practice must have the same percentage relationship to the

maximum price offered by us for each planting period and practice.

For example, if you choose 100 percent of the maximum amount of

insurance for a specific planting period and practice, you must also

choose 100 percent of the maximum amount of insurance for all other

planting periods and practices.

(c) The production reporting requirements contained in section 3

(Insurance Guarantees, Coverage Levels, and Prices for Determining

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

fresh market sweet corn.

(d) The amounts of insurance are progressive by stages as

follows:

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

Percent of

the amount

of

Stage insurance Length of time

per acre

that you

selected

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

1.................. 65 From planting through the beginning

of tasseling (which is when the

tassel becomes visible above the

whorl).

Final............... 100 From tasseling until the acreage is

harvested.

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

(e) Any acreage of sweet corn damaged in the first stage to the

extent that the majority of producers in the area would not normally

further care for it, will be deemed to have been destroyed. The

indemnity payable for such acreage will be based on the stage the

plants had achieved when the damage occurred.

4. Contract Changes

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

Provisions (Sec. 457.8), the contract change date shown below is the

date preceding the cancellation date:

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

State and county Date

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

All Florida counties; and all Georgia April 30.

counties for which the Special

Provisions designate a fall planting

period.

All Georgia counties for which the November 30.

Special Provisions do not designate a

fall planting period; and all other

States.

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

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:

[[Page 14785]]

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

Cancellation and termination

State and county Dates

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

Florida; Atkinson, Baker, Berrien, July 31.

Brantley, Camden, Colquitt, Cook,

Early, Mitchell, and Ware Counties

Georgia and all counties south thereof

for which the Special Provisions

designate a fall planting period.

Alabama; South Carolina; and all Georgia February 15.

Counties for which the Special

Provisions do not designate a fall

planting period.

All other States........................ March 15.

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

6. Report of Acreage

In addition to the requirements of section 6 (Report of Acreage)

of the Basic Provisions (Sec. 457.8), you must report on or before

the acreage reporting date contained in the Special Provisions for

each planting period, all the acreage of sweet corn in the county

insured under this policy in which you have a share.

7. Annual Premium

In lieu of the premium amount determinations contained in

section 7 (Annual Premium) of the Basic Provisions (Sec. 457.8), the

annual premium amount for each cultural practice (e.g., fall-planted

irrigated) is determined by multiplying the final stage amount of

insurance per acre by the premium rate for the cultural practice as

established in the Actuarial Table, by the insured acreage, by your

share at the time coverage begins, and by any applicable premium

adjustment factors contained in the Actuarial Table.

8. Insured Crop

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

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

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

Table:

(a) In which you have a share;

(b) That is:

(1) Planted to be harvested and sold as fresh market sweet corn;

(2) Planted within the planting periods designated in the

Actuarial Table;

(3) Grown under an irrigated practice, unless otherwise provided

in the Special Provisions;

(4) Grown by a person who in at least one of the three previous

crop years:

(i) Grew sweet corn for commercial sale; or

(ii) Participated in managing a sweet corn farming operation;

(c) That is not:

(1) Interplanted with another crop;

(2) Planted into an established grass or legume; or

(3) Grown for direct marketing.

9. Insurable Acreage

(a) In lieu of the provisions of section 9 (Insurable Acreage)

of the Basic Provisions (Sec. 457.8), that prohibit insurance

attaching if a crop has not been planted in at least one of the

three previous crop years, we will insure newly cleared land or

former pasture land planted to fresh market sweet corn.

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

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

(1) You must replant any acreage of sweet corn damaged during

the planting period in which initial planting took place whenever

less than 75 percent of the plant stand remains: and

(i) It is practical to replant: and

(ii) If, at the time the crop was damaged, the final day of the

planting period has not passed.

(2) Whenever sweet corn initially is planted during the fall or

winter planting periods and the condition specified in section

9(b)(1)(ii) is not satisfied, you may elect:

(i) To replant such acreage and collect any replant payment due

as specified in section 12. The initial planting period coverage

will continue for such replanted acreage.

(ii) Not to replant such acreage and receive an indemnity based

on the stage of growth the plants had attained at the time of

damage. However, such an election will result in the acreage being

uninsurable in the subsequent planting period.

10. Insurance Period

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

the Basic Provisions (Sec. 457.8), coverage begins on each unit or

part of a unit the later of the date we accept your application, or

when the sweet corn is planted in each planting period. Coverage

ends at the earliest of:

(a) Total destruction of the sweet corn on the unit;

(b) Abandonment of the sweet corn on the unit;

(c) The date harvest should have started on the unit on any

acreage which will not be harvested;

(d) Final adjustment of a loss on the unit;

(e) Final harvest; or

(f) 100 days after the date of planting or replanting.

11. 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) Excess rain;

(2) Excess wind;

(3) Fire;

(4) Freeze;

(5) Hail;

(6) Tornado; or

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

insured cause of loss that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12

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

insure against any loss of production due to:

(1) Disease or insect infestation, unless no effective control

measure exists for such disease or insect infestation; or

(2) Failure to market the sweet corn, unless such failure is due

to actual physical damage caused by an insured cause of loss that

occurs during the insurance period.

12. Replanting Payments

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

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

due to an insured cause of loss, more than 25 percent of the plant

stand will not produce sweet corn and it is practical to replant.

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

be the lesser of your actual cost of replanting or the result

obtained by multiplying the per acre replanting payment amount

contained in the Special Provisions by your insured share.

(c) In lieu of the provisions contained in section 13

(Replanting Payment) of the Basic Provisions (Sec. 457.8), limiting

a replanting payment to one each crop year, only one replanting

payment will be made for acreage planted during each planting period

within the crop year.

13. Duties In The Event of Damage or Loss

In addition to the requirements contained in section 14 (Duties

In The Event of Damage or Loss) of the Basic Provisions

(Sec. 457.8), if you intend to claim an indemnity on any unit you

also must give us notice not later than 72 hours after the earliest

of:

(a) The time you discontinue harvest of any acreage on the unit;

(b) The date harvest normally would start if any acreage on the

unit will not be harvested; or

(c) The calendar date for the end of the insurance period.

14. 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 unit, we will combine all optional units

for which such production records were not provided; or

(2) For any basic 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 in each stage by the amount

of insurance per acre for the final stage;

(2) Multiplying each result in section 14(b)(1) by the

percentage for the applicable stage (see section 3(e));

(3) Total the results of section 14(b)(2);

(4) Subtracting either of the following values from the result

of section 14(b)(3):

(i) For other than catastrophic risk protection coverage, the

total value of production to be counted (see section 14(c)); or

(ii) For catastrophic risk protection coverage, the result of

multiplying the total value of production to be counted (see section

14(c)) times:

(A) Sixty percent for the 1998 crop year; or

(B) Fifty-five percent for 1999 and subsequent crop years; and

(5) Multiplying the result of section 14(b)(4) by your share.

(c) The total value of production to count from all insurable

acreage on the unit will include:

(1) Not less than the amount of insurance per acre for the stage

for any acreage:

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(i) That is abandoned;

(ii) Put to another use without our consent;

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

(iv) For which you fail to provide acceptable production

records;

(2) The value of the following appraised production will not be

less than the dollar amount obtained by multiplying the number of

containers of appraised sweet corn times the minimum value per

container shown in the Special Provisions for the planting period:

(i) Unharvested production (unharvested production that is

damaged or defective due to insurable causes and is not marketable

will not be counted as production to count);

(ii) Production lost due to uninsured causes; and

(iii) 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) We may require you to continue to care for the crop so that

a subsequent appraisal may be made or the crop harvested to

determine actual production (If we require you to continue to care

for the crop and you do not do so, the original appraisal will be

used); or

(B) You may elect to continue to care for the crop, in which

case the amount of production to count for the acreage will be the

harvested production, or our reappraisal if the crop is not

harvested.

(3) The total value of all harvested production from the

insurable acreage will be the dollar amount obtained by subtracting

the allowable cost contained in the Special Provisions from the

price received for each container of sweet corn (this result may not

be less than the minimum value shown in the Special Provisions for

any container of sweet corn), and multiplying this result by the

number of containers of sweet corn harvested. Harvested mature sweet

corn that is damaged or defective due to insurable causes and is not

marketable, will not be counted as production to count.

15. 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

15(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, and premium rate;

(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.

16. Minimum Value Option

(a) The provisions of this option are continuous and will be

attached to and made a part of your insurance policy, if:

(1) You elect the Minimum Value Option on your application, or

on a form approved by us, on or before the sales closing date for

the initial crop year in which you wish to insure fresh market sweet

corn under this option, and pay the additional premium indicated in

the Actuarial Table for this optional coverage; and

(2) You have not elected coverage under the Catastrophic Risk

Protection Endorsement.

(b) In lieu of the provisions contained in section 14(c)(3), the

total value of harvested production will be determined as follows:

(1) For sold production, the dollar amount obtained by

subtracting the allowable cost contained in the Special Provisions

from the price received for each container of sweet corn (this

result may not be less than zero for any container of sweet corn),

and multiplying this result by the number of containers of sweet

corn sold; and

(2) For marketable production that is not sold, the dollar

amount obtained by multiplying the number of containers of such

sweet corn on the unit by the minimum value shown in the Special

Provisions for the planting period (harvested production that is

damaged or defective due to insurable causes and is not marketable

will not be counted as production).

(c) This option 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 option is to be effective.

Signed in Washington, DC, on March 24, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-7943 Filed 3-27-97; 8:45 am]

BILLING CODE 3410-FA-P