Common Crop Insurance Regulations; Raisin Crop Insurance Provisions

Proposed Rules

Federal Register

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Proposed Rules

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

Common Crop Insurance Regulations; Raisin Crop Insurance

Provisions

AGENCY: Federal Crop Insurance Corporation.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes

specific crop provisions for the insurance of raisins. 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 and to include the current

Raisin Endorsement with the Common Crop Insurance Policy for ease of

use and consistency of terms.

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

be accepted until close of business November 29, 1996 and will be

considered when the rule is to be made final. The comment period for

information collections under the Paperwork Reduction Act of 1995

continues through December 30, 1996.

ADDRESSES: Interested persons are invited to submit written comments to

the Chief, Product Development Branch, Federal Crop Insurance

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

Kansas City, MO 64131. Written comments will be available for public

inspection and copying in room 0324, South Building, USDA, 14th and

Independence Avenue, S.W., Washington, D.C., 8:15 a.m. to 4:45 p.m.,

est Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: John Meyer, Program Analyst, Research

and Development Division, Product Development Branch, FCIC, at the

Kansas City, MO, address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

Building, USDA, 14th and

Independence Avenue, S.W., Washington, D.C., 8:15 a.m. to 4:45 p.m.,

est Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: John Meyer, Program Analyst, Research

and Development Division, Product Development Branch, FCIC, at the

Kansas City, MO, address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

This action has been reviewed under United States Department of

Agriculture (USDA) procedures established by Executive Order No. 12866.

This action constitutes a review as to the need, currency, clarity, and

effectiveness of these regulations under those procedures. The sunset

review date established for these regulations is April 30, 2001.

This rule has been determined to be not significant for the

purposes of Executive Order No. 12866 and, therefore, has not been

reviewed by the Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

The information collection requirements contained in these

regulations were previously approved by OMB pursuant to the Paperwork

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

0563-0003 through September 30, 1998.

The title of this information collection is ``Catastrophic Risk

Protection Plan and Related Requirements including, Common Crop

Insurance Regulations; Raisin Crop Insurance Provisions.'' Information

previously collected includes a crop insurance application and a raisin

tonnage report. This rule also requires the insured to file a location

and unit report to indicate an insured's acreage prior to the time

insurance attaches. Submitting this report before insurance attaches

will protect the integrity of the program by reducing the opportunity

to inflate losses after damage occurs. Information collected from the

location and unit reports, tonnage reports, and application is

electronically submitted to FCIC by the reinsured companies

unit report to indicate an insured's acreage prior to the time

insurance attaches. Submitting this report before insurance attaches

will protect the integrity of the program by reducing the opportunity

to inflate losses after damage occurs. Information collected from the

location and unit reports, tonnage reports, and application is

electronically submitted to FCIC by the reinsured companies. Potential

respondents to this information collection are producers of raisins

that are eligible for Federal crop insurance.

The information requested is necessary for the reinsured companies

and FCIC to provide insurance and reinsurance, determine eligibility,

determine the correct parties to the agreement or contract, determine

and collect premiums or other monetary amounts, and pay benefits.

All information is reported annually. The reporting burden for this

collection of information is estimated to average 16.9 minutes per

response for each of the 3.6 responses from approximately 1,755,015

respondents. The total annual burden on the public for this information

collection is 2,669,970 hours.

FCIC is requesting comments for 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

cted; 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 and to

Bonnie Hart, USDA, FSA, Advisory and Corporate Operations Staff,

Regulatory Review Group, P.O. Box 2415, STOP 0572, Washington, D.C.

20013-2415, telephone (202) 690-2857. Copies of the information

collection may be obtained from Bonnie Hart at the above address.

Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandate 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

implication 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

ive Order No.

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

implication 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 or treat small and large entities

disproportionately. Under the current regulations, a producer is

required to complete an application and tonnage 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. These requirements apply to all insureds regardless of size,

and this regulation does not alter these requirements. Although this

rule requires each insured to file an additional report (a location and

unit report), the required information is readily available. Further,

the benefit of protecting program integrity outweighs any impact on the

insured or insurance provider. 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

ram

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

preempt State and local laws to the extent such State and local laws

are inconsistent herewith. The administrative appeal provisions

published at 7 CFR parts 11 and 780 must be exhausted before any action

for judicial review may be brought.

Environmental Evaluation

This action is not expected to have a significant impact on the

quality of the human environment, health, and safety. Therefore,

neither an Environmental Assessment nor an Environmental Impact

Statement is needed.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review Initiative to eliminate unnecessary or duplicative

regulations and improve those that remain in force.

Background

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

CFR part 457), a new section, 7 CFR Sec. 457.124, Raisin Crop Insurance

Provisions. The new provisions will be effective for the 1997 and

succeeding crop years. These provisions will replace and supersede the

current provisions for insuring raisins found at 7 CFR Sec. 401.142

Raisin Endorsement. By separate rule, FCIC will revise 7 CFR

Sec. 401.142 to restrict its effect through the 1996 crop year and

later remove that section.

This rule makes minor editorial and format changes to improve the

Raisin Endorsement's compatibility with the Common Crop Insurance

Policy

will replace and supersede the

current provisions for insuring raisins found at 7 CFR Sec. 401.142

Raisin Endorsement. By separate rule, FCIC will revise 7 CFR

Sec. 401.142 to restrict its effect through the 1996 crop year and

later remove that section.

This rule makes minor editorial and format changes to improve the

Raisin Endorsement's compatibility with the Common Crop Insurance

Policy. In addition, FCIC is proposing substantive changes in the

provisions for insuring raisins as follows:

1. Section 1--Add the definition of ``days,'' ``RAC,'' and

``written agreement'' for clarification. A definition of ``location and

unit report'' is also added to describe the form to be used to report

acreage information prior to the time insurance attaches. Delete the

definition of ``USDA Inspection'' because the term is no longer used.

2. Section 3(c)(2)--Provisions allowing the use of tray weights to

establish the number of insured tons when production is not removed

from the vineyard have been deleted. Experience has proven that tray

weights and counts may not be accurate indicators of production

amounts. Instead, when appraisals are required, the amount of raisin

tonnage lost will be determined in sample areas. These amounts will

then be used to determine the total amount lost in the vineyard.

3. Section 3(c)(3)--Add a provision indicating that raisins used

for a purpose other than dry edible fruit will be considered to contain

24.3 percent moisture if they contain greater than that amount at the

time of delivery. Currently, available measurement techniques can not

measure moisture amounts greater than this.

4. Section 6--Add provisions that require the insured to report

raisin acreage prior to the time insurance attaches. This will prevent

adverse selection that is possible when insureds do not report any

information until the end of the insurance period.

5

than that amount at the

time of delivery. Currently, available measurement techniques can not

measure moisture amounts greater than this.

4. Section 6--Add provisions that require the insured to report

raisin acreage prior to the time insurance attaches. This will prevent

adverse selection that is possible when insureds do not report any

information until the end of the insurance period.

5. Section 9--Add provisions adding total destruction of all

raisins in the unit, final adjustment of the loss, and abandonment of

the raisins as events that end the insurance period to be consistent

with other crop policies.

6. Section 11--Add provisions that authorize a reconditioning

payment to be made when raisins are damaged by rain and are found to

contain mold, embedded sand, micro-contamination in excess of Raisin

Administrative Committee standards, or moisture in excess of 18

percent. Previous provisions allowed a reduction in the value of raisin

tonnage to count when production was reconditioned, but did not provide

any benefit unless the value of delivered tonnage minus the

reconditioning allowance was less than the amount of insurance for the

unit. This payment, like replant payments on certain annual crops, is

intended to mitigate potentially larger insurance benefit payments.

7. Section 12--Add provisions indicating the specific information

required from the insured when providing a notice of damage. Previous

provisions did not specify what information was needed.

8. Section 13(f)--Add provisions indicating that raisins discarded

from trays or that are lost from trays scattered in the vineyard as

part of normal handling will not have a value to count against the

amount of insurance. These raisins cannot be salvaged and should not be

considered as production to count.

9. Section 14--Add provisions for providing insurance coverage by

written agreement. FCIC has a long-standing policy of permitting

certain modifications of the insurance contract by written agreement

for some policies

s

part of normal handling will not have a value to count against the

amount of insurance. These raisins cannot be salvaged and should not be

considered as production to count.

9. Section 14--Add provisions for providing insurance coverage by

written agreement. FCIC has a long-standing policy of permitting

certain modifications of the insurance contract by written agreement

for some policies. This amendment allows FCIC to tailor the policy to a

specific insured in certain instances. The new section will cover the

procedures for, and duration of, written agreements.

List of Subjects in 7 CFR Part 457

Crop insurance, Raisins, Reporting and recordkeeping requirements.

Pursuant to the authority contained in the Federal Crop Insurance

Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance

Corporation hereby proposes to amend the Common Crop Insurance

Regulations (7 CFR part 457), effective for the 1997 and succeeding

crop years, as follows:

PART 457--[AMENDED]

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

follows:

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

2. 7 CFR part 457 is amended by adding a new Sec. 457.124 to read

as follows:

Sec. 457.124 Raisin crop insurance provisions.

The Raisin Crop Insurance Provisions for the 1997 and succeeding

crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Raisin 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

ars are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

Raisin Crop Provisions

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

these crop provisions, and the Special Provisions; the Special

Provisions will control these crop provisions and the Basic

Provisions; and these crop provisions will control the Basic

Provisions.

1. Definitions

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

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

in which the raisins are placed on trays for drying.

Days--Calendar days.

Delivered ton--A ton of raisins delivered to a packer,

processor, buyer or a reconditioner, before any adjustment for U. S.

Grade B and better maturity standards, and after adjustments for

moisture over 16 percent and substandard raisins over 5 percent.

Location and Unit Report--A report that contains information

regarding the acreage in each unit on which you intend to produce

raisins for the crop year and your share.

Non-contiguous land--Any two or more tracts of land whose

boundaries do not touch at any point, except that land separated

only by a public or private right-of-way, waterway, or an irrigation

canal will be considered as contiguous.

RAC--The Raisin Administrative Committee, which operates under

an order of the United States Department of Agriculture (USDA).

Raisins--The sun-dried fruit of varieties of grapes designated

insurable by the Actuarial Table. These grapes will be considered

raisins for the purpose of this policy when laid on trays in the

vineyard to dry.

Substandard--Raisins that fail to meet the requirements of U.S.

Grade C, or layer (cluster) raisins with seeds that fail to meet the

requirements of U.S. Grade B.

Reference maximum dollar amount--The value per ton established

by FCIC and shown in the Actuarial Table.

Table grapes--Grapes grown for commercial sale as fresh fruit on

acreage where appropriate cultural practices were followed

.

Substandard--Raisins that fail to meet the requirements of U.S.

Grade C, or layer (cluster) raisins with seeds that fail to meet the

requirements of U.S. Grade B.

Reference maximum dollar amount--The value per ton established

by FCIC and shown in the Actuarial Table.

Table grapes--Grapes grown for commercial sale as fresh fruit on

acreage where appropriate cultural practices were followed.

Ton--Two thousand pounds avoirdupois.

Tonnage report--A report used to annually report, by unit, all

the tons of raisins produced in the county in which you have a

share.

Written agreement--A written document that alters designated

terms of this policy in accordance with section 14.

2. Unit Division

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

Provisions (Sec. 457.8), may be divided into additional basic units

by each grape variety you insure.

(b) Unless limited by the Special Provisions, a basic unit may

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

all the conditions of this section or if a written agreement to such

division exists.

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

basis including, but not limited to, production practice, type, and

variety, other than as described in this section.

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

combine all optional units that are not in compliance with these

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

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

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

these provisions is determined to be inadvertent, and the optional

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

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

you for the units combined.

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

identified on the location and unit report for that crop year.

these provisions. If failure to comply with

these provisions is determined to be inadvertent, and the optional

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

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

you for the units combined.

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

identified on the location and unit report for that crop year.

(f) The following requirements must be met to qualify for

separate optional units:

(1) 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

(2) Separate optional units must be located on non-contiguous

land.

3. Amounts of Insurance and Production Reporting

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 select only one coverage level percentage for all

the raisins in the county insured under this policy.

(b) The amount of insurance for the unit will be determined by

multiplying the insured tonnage by the reference maximum dollar

amount, times the coverage level percentage you elect, and times

your share.

(c) Insured tonnage is determined as follows:

(1) For units not damaged by rain--The delivered tons; or

(2) For units damaged by rain--By adding the delivered tons to

any verified loss of production due to rain damage. When production

from a portion of the acreage within a unit is removed from the

vineyard and production from the remaining acreage is lost in the

vineyard, the amount of production lost in the vineyard will be

determined based on the number of tons of raisin produced on the

acreage from which production was removed; and

he delivered tons to

any verified loss of production due to rain damage. When production

from a portion of the acreage within a unit is removed from the

vineyard and production from the remaining acreage is lost in the

vineyard, the amount of production lost in the vineyard will be

determined based on the number of tons of raisin produced on the

acreage from which production was removed; and

(3) Insured tonnage will be reduced 0.12 percent for each 0.10

percent of moisture in excess of 16.0 percent. When raisins contain

moisture in excess of 24.3 percent at the time of delivery and are

released for a use other than dry edible fruit (e.g. distillery

material), they will be considered to contain 24.3 percent moisture.

For example, 10.0 tons of raisins containing 18.0 percent moisture

will be reduced to 9.760 tons of raisins. In addition, raisin

tonnage used for dry edible fruit will be reduced by 0.10 percent

for each 0.10 percent of substandard raisins in excess of 5.0

percent.

(d) Section 3(c) of the Basic Provisions is not applicable to

this crop.

4. Contract Changes

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

Provisions (Sec. 457.8), the contract change date is April 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 July 31.

6. Location and Unit Report and Tonnage Report

with section 4 (Contract Changes) of the Basic

Provisions (Sec. 457.8), the contract change date is April 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 July 31.

6. Location and Unit Report and Tonnage Report

(a) In lieu of the provisions contained in section 6(a) of the

Basic Provisions (Sec. 457.8) you must report by unit, and on our

form, the acreage on which you intend to produce raisins for the

crop year. This location and unit report must be submitted to us on

or before the sales closing date, unless otherwise agreed to in

writing, and contain the following information:

(1) All acreage of the crop (insurable and not insurable) in

which you will have a share by unit;

(2) Your anticipated share at the time coverage will begin;

(3) The variety; and

(4) The location of each vineyard;

(b) If you fail to file a location and unit report in a timely

manner, or if the information reported is incorrect, we may elect to

deny liability on any unit.

(c) In addition to the location and unit report, you must

annually report by unit, and on our form, the number of delivered

tons of raisins, and if damage has occurred, the amount of any

tonnage we determined was lost due to rain damage in the vineyard

for each unit designated in the location and unit report.

the information reported is incorrect, we may elect to

deny liability on any unit.

(c) In addition to the location and unit report, you must

annually report by unit, and on our form, the number of delivered

tons of raisins, and if damage has occurred, the amount of any

tonnage we determined was lost due to rain damage in the vineyard

for each unit designated in the location and unit report.

(d) The report of tonnage must be submitted to us as soon as the

information is available, but no later than March 1 of the year

following the crop year. Indemnities may be determined on the basis

of information you submitted on this report. If you do not submit

this report by the reporting date, we may, at our option, either

determine the insured tonnage and share by unit or we may deny

liability on any unit. This report may be revised only upon our

approval. Errors in reporting units may be corrected by us at any

time we discover the error.

7. Annual Premium

In lieu of the premium computation method contained in section 7

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

premium amount is determined by multiplying the amount of insurance

for the unit at the time insurance attaches by the premium rate and

then multiplying that result by any applicable premium adjustment

factors that may apply.

8. Insured Crop

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

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

the county of grape varieties for which a premium rate is provided

by the Actuarial Table and in which you have a share.

(b) For the purpose of determining the amount of indemnity, your

share will not exceed the lower of your share at either the time

that the raisins are first placed on trays for drying or are removed

from the vineyard.

ec. 457.8), the crop insured will be all the raisins in

the county of grape varieties for which a premium rate is provided

by the Actuarial Table and in which you have a share.

(b) For the purpose of determining the amount of indemnity, your

share will not exceed the lower of your share at either the time

that the raisins are first placed on trays for drying or are removed

from the vineyard.

(c) In addition to the raisins not insurable under section 8

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

insure any raisins:

(1) Laid on trays after September 8 in vineyards with north-

south rows in Merced or Stanislaus Counties, or after September 20

in all other instances;

(2) From table grape strippings; or

(3) From vines that have had manual, mechanical, or chemical

treatment to produce table grape sizing.

9. Insurance Period

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

the Basic Provisions (Sec. 457.8), insurance attaches at the time

the raisins are placed on trays for drying and ends the earlier of:

(a) October 20;

(b) The date the raisins are removed from the trays;

(c) The date the raisins are removed from the vineyard;

(d) Total destruction of all raisins on a unit;

(e) Final adjustment of a loss on a unit; or

(f) Abandonment of the raisins.

10. 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 unavoidable loss of production resulting from rain that

occurs during the insurance period and while the raisins are on

trays or in rolls in the vineyard for drying.

justment of a loss on a unit; or

(f) Abandonment of the raisins.

10. 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 unavoidable loss of production resulting from rain that

occurs during the insurance period and while the raisins are on

trays or in rolls in the vineyard for drying.

(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 damage or loss of production due to inability to

market the raisins for any reason other than actual physical damage

from an insurable cause specified in this section. For example, we

will not pay you an indemnity if you are unable to market due to

quarantine, boycott, or refusal of a person to accept production.

11. Reconditioning Requirements and Payment

(a) We may require you to recondition a representative sample of

not more than 10 tons of damaged raisins to determine if they meet

standards established by the RAC once reconditioned. If such

standards are met, we may require you to recondition all the damaged

production. If we require you to recondition any damaged production

and if you do not do so, we will value the damaged production at the

reference maximum dollar amount.

(b) If the representative sample of raisins that we require you

to recondition does not meet RAC standards for marketable raisins

after reconditioning, the reconditioning payment will be the actual

cost you incur to recondition the sample, not to exceed an amount

that is reasonable and customary for such reconditioning, regardless

of the coverage level selected.

(c) A reconditioning payment, based on the actual (unadjusted)

weight of the raisins, will be made if:

(1) Insured raisin production:

s for marketable raisins

after reconditioning, the reconditioning payment will be the actual

cost you incur to recondition the sample, not to exceed an amount

that is reasonable and customary for such reconditioning, regardless

of the coverage level selected.

(c) A reconditioning payment, based on the actual (unadjusted)

weight of the raisins, will be made if:

(1) Insured raisin production:

(i) Is damaged by rain within the insurance period;

(ii) Is reconditioned by washing with water and then drying;

(iii) Is insured at a coverage level greater than that

applicable to the Catastrophic Risk Protection Plan of Insurance;

and

(2) The damaged production undergoes an inspection by USDA and

is found to contain mold, embedded sand, or micro-contamination in

excess of standards established by the RAC, or is found to contain

moisture in excess of 18 percent; or

(3) We give you consent to recondition the damaged production.

(d) Your request for consent to any wash-and-dry reconditioning

must identify the acreage on which the production to be

reconditioned was damaged in order to be eligible for a

reconditioning payment.

(e) The reconditioning payment for raisins that meet RAC

standards for marketable raisins after reconditioning will be the

lesser of your actual cost for reconditioning or the amount

determined by:

(1) Multiplying the greater of $125.00 or the reconditioning

dollar amount per ton contained in the Special Provisions by your

coverage level;

(2) Multiplying the result of 11(e)(1) by the actual number of

tons of raisins (unadjusted weight) that are wash-and-dry

reconditioned; and

(3) Multiplying the result of 11(e)(2) by your share.

(f) Only one reconditioning payment will be made for any lot of

raisins damaged during the crop year. Multiple reconditioning

payments for the same production will not be made.

12. Duties In The Event of Damage or Loss

duction.

(b) In lieu of the provisions in section 14 (Duties in the Event

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

require you to submit a claim for indemnity not later than 60 days

after the end of the insurance period, any claim for indemnity must

be submitted to us not later than March 31 following the date for

the end of the insurance period.

13. 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

acreage from which raisins were removed 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 tonnage of raisins by the reference

maximum dollar amount and your coverage level percentage;

(2) Subtracting from the total in paragraph (1) the total value

of all insured damaged and undamaged raisins; and

(3) Multiplying the result of paragraph (2) by your share.

(c) Undamaged raisins or raisins damaged solely by uninsured

causes will be valued at the reference maximum dollar amount.

(d) Raisins damaged partially by rain and partially by uninsured

causes will be valued at the highest prices obtainable, adjusted for

any reduction in value due to uninsured causes.

(e) Raisins that are damaged by rain, but that are reconditioned

and meet RAC standards for raisins, will be valued at the reference

maximum dollar amount.

s will be valued at the reference maximum dollar amount.

(d) Raisins damaged partially by rain and partially by uninsured

causes will be valued at the highest prices obtainable, adjusted for

any reduction in value due to uninsured causes.

(e) Raisins that are damaged by rain, but that are reconditioned

and meet RAC standards for raisins, will be valued at the reference

maximum dollar amount.

(f) The value to count for any raisins produced on the unit that

are damaged by rain and not removed from the vineyard will be the

larger of the appraised salvage value or $35.00 per ton, except that

any raisins that are damaged and discarded from trays or are lost

from trays scattered in the vineyard as part of normal handling will

not be considered to have any value. You must box and deliver any

raisins that can be removed from the vineyard.

(g) At our sole option, we may acquire all the rights and title

to your share of any raisins damaged by rain. In such event, the

raisins will be valued at zero in determining the amount of loss and

we will have the right of ingress and egress to the extent necessary

to take possession, care for, and remove such raisins.

(h) Raisins destroyed or put to another use without our consent

will be valued at the reference maximum dollar amount.

14. 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 14(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 amount of insurance per ton, and premium rate;

cept as provided in 14(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 amount of insurance per ton, 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.

Signed in Washington, DC, on October 21, 1996.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 96-27769 Filed 10-29-96; 8:45 am]

BILLING CODE 3410-FA-P