Sweet Corn Insurance Regulations; and Common Crop Insurance Regulations, Processing Sweet Corn Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 437 and 457

Sweet Corn Insurance Regulations; and Common Crop Insurance

Regulations, Processing Sweet Corn Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes

specific crop provisions for the insurance of processing 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 sweet corn crop insurance regulations with the

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

and to restrict the effect of the current sweet corn crop insurance

regulations to the 1997 and prior crop year.

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

accepted until close of business June 2, 1997 and will be considered

when the rule is to be made final.

ADDRESSES: Interested persons are invited to submit written comments to

the Director, Product Development Division, Federal Crop Insurance

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

Kansas City, MO 64131.

FOR FURTHER INFORMATION CONTACT: Stephen Hoy, Insurance Management

Specialist, Research and Development, Product Development Division,

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

listed above, 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

lopment Division,

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

listed above, 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

The amendments set forth in this proposed rule contain information

collections that require clearance by OMB under the provisions of 44

USC chapter 35.

The title of this information collection is ``Catastrophic Risk

Protection Plan and Related Requirements including, Common Crop

Insurance Regulations; Processing Sweet Corn Crop Insurance

Provisions.'' The information to be collected includes a crop insurance

application and an acreage report. Information collected from the

application and acreage report is electronically submitted to FCIC by

the reinsured companies. Potential respondents to this information

collection are producers of sweet corn 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. For the crop insurance

program as a whole, 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

2,676,932 hours

s or other monetary amounts, and pay benefits.

All information is reported annually. For the crop insurance

program as a whole, 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

2,676,932 hours.

FCIC is requesting comments on the following: (a) Whether the

proposed collection of information is necessary for the proper

performance of the functions of the agency, including whether the

information shall have practical utility; (b) the accuracy of the

agency's estimate of the burden of the proposed collection of

information; (c) ways to enhance the quality, utility, and clarity of

the information to be collected; and (d) ways to minimize the burden of

the collection of information on respondents, including through the use

of automated collection techniques or other forms of information

gathering technology.

Comments regarding paperwork reduction should be submitted to the

Desk Officer for Agriculture, Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, D.C. 20503.

OMB is required to make a decision concerning the collections of

information contained in these proposed regulations between 30 and 60

days after submission to OMB. Therefore, a comment to OMB is best

assured of having full effect if OMB receives it within 30 days of

publication. This does not affect the deadline for the public to

comment on the proposed regulation.

Unfunded Mandates Reform Act of 1995

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 number of acres and the previous

years production, if adequate records are available to support the

certification, or receive a transitional yield. 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 USC 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.

sistent 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

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

CFR part 457), a new section, 7 CFR Sec. 457.154, Processing 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 sweet corn found at 7 CFR

part 437 (Sweet Corn Crop Insurance Regulations). FCIC also proposes to

amend 7 CFR part 437 to limit its effect to the 1997 and prior crop

years.

This rule makes minor editorial and format changes to improve the

Sweet Corn Crop Insurance regulations' compatibility with the Common

Crop Insurance Policy. In addition, FCIC is proposing substantive

changes in the provisions for insuring sweet corn as follows:

1. Add the word ``processing'' to the title of this policy to

eliminate confusion with the fresh market sweet corn policy.

2. Section 1--Add definitions for the terms `` base contract

price,'' ``bypassed acreage,'' ``days,'' ``FSA,'' ``final planting

date,'' ``good farming practice,'' ``interplanted,'' ``irrigated

practice,'' ``planted acreage,'' ``practical to replant,''

``processor,'' ``processor contract,'' ``production guarantee (per

acre),'' ``replanting,'' ``timely planted,'' ``ton,'' ``unhusked ear

weight,'' and ``written agreement'' for clarification

base contract

price,'' ``bypassed acreage,'' ``days,'' ``FSA,'' ``final planting

date,'' ``good farming practice,'' ``interplanted,'' ``irrigated

practice,'' ``planted acreage,'' ``practical to replant,''

``processor,'' ``processor contract,'' ``production guarantee (per

acre),'' ``replanting,'' ``timely planted,'' ``ton,'' ``unhusked ear

weight,'' and ``written agreement'' for clarification. The

definition of ``bypassed acreage'' provides that loss because of

bypass will be factored in the Actual Production History as zero

production.

3. Section 2--Describe the guidelines under which basic units

may be divided into optional units to be consistent with most other

crop provisions.

4. Section 3(a)--Specify that the insured may select only one

price election for all the processing sweet corn in the county

insured under the policy, unless the Special Provisions provide

different price elections by type, in which case the producer may

select one price election for each sweet corn type designated in the

Special Provisions.

The price election the producer chooses for each type must have the

same percentage relationship to the maximum price available.

5. Section 3(b)--Clarify that the insurance guarantee is

expressed as unhusked ear weight.

6. Section 4--Change the contract change date from December 31

to November 30 to allow adequate time for producers to become aware

of contract changes and make informed decisions before the sales

closing date which has been moved up 30 days to comply with the

Federal Crop Insurance Reform Act of 1994.

7. Section 5--Change the cancellation and termination dates of

April 15 to March 15 to coincide with the statutorily required

movement of the sales closing date.

8. Section 6--Require the producer to provide a copy of the

processor contract to the insurance provider on or before the

acreage reporting date to establish liability and insurability

before a loss is likely to occur.

9

of 1994.

7. Section 5--Change the cancellation and termination dates of

April 15 to March 15 to coincide with the statutorily required

movement of the sales closing date.

8. Section 6--Require the producer to provide a copy of the

processor contract to the insurance provider on or before the

acreage reporting date to establish liability and insurability

before a loss is likely to occur.

9. Section 7(a)(3)--Specify that the crop insured will be sweet

corn that is grown under a processor contract executed before the

acreage reporting date since only that portion of the crop grown

under a processor contract is marketable.

10. Section 7(a)(4)--Permit consideration for requests for a

written agreement to insure sweet corn that is interplanted with

another crop or planted into an established grass or legume when

this practice would not adversely affect the yield and would permit

coverage of acreage that would otherwise be covered under the

noninsured crop disaster assistance program (NAP).

11. Section 7(b)--Specify that a processor contract under which

the insured is at risk of loss and retains control on the acreage on

which the sweet corn is grown and which provides for delivery of the

sweet corn under certain conditions and at a stipulated price will

be treated as a contract under which the insured has a share.

12. Section 7(c)--Specify the requirements under which a sweet

corn producer who is also a processor may establish an insurable

interest in the insured crop.

13. Section 8--Require that any acreage damaged prior to the

final planting date must be replanted unless the insurance provider

agrees that replanting is not practical. The current policy does not

specify that the damage must occur prior to the final planting date.

Also require that rotation requirements shown in the Special

Provisions be met for acreage to be insured.

14

the insured crop.

13. Section 8--Require that any acreage damaged prior to the

final planting date must be replanted unless the insurance provider

agrees that replanting is not practical. The current policy does not

specify that the damage must occur prior to the final planting date.

Also require that rotation requirements shown in the Special

Provisions be met for acreage to be insured.

14. Section 9(b)--Add provisions for the insurance period to end

when the amount of sweet corn delivered to the processor fulfills

the producer's processor contract. This requirement is consistent

with other crops produced under processor contracts.

15. Section 9(c)--Change the calendar date for the end of the

insurance period for Malheur County, Oregon, all Idaho counties, and

all Iowa counties to September 30 and all Washington and other

Oregon counties to October 20 to recognize extended contracting

periods in those areas.

16. Section 10(a)(1)--Clarify that insurable adverse weather

conditions include, but are not limited to: (1) excessive moisture

that prevents harvesting equipment from entering the field or that

prevents timely operation of harvesting equipment; and (2)

abnormally hot or cold temperatures that cause a large number of

acres to be ready for harvest at the same time when total production

is beyond the normal capacity of the processor to timely harvest or

process.

17. Section 10(a)(3)--Clarify that insect damage as a cause of

loss does not include damage due to insufficient or improper

application of pest control measures.

18. Section 10(a)(4)--Clarify that plant disease as a cause of

loss does not include damage due to insufficient or improper

application of disease control measures.

19

normal capacity of the processor to timely harvest or

process.

17. Section 10(a)(3)--Clarify that insect damage as a cause of

loss does not include damage due to insufficient or improper

application of pest control measures.

18. Section 10(a)(4)--Clarify that plant disease as a cause of

loss does not include damage due to insufficient or improper

application of disease control measures.

19. Section 10(b)--Clarify that the insurance provider will not

cover loss of production: (1) on bypassed acreage if the acreage is

bypassed due to the breakdown or non-operation of equipment or

facilities; (2) on bypassed acreage if acreage to be bypassed is

selected based on the availability of a crop insurance payment; (3)

due to sweet corn not being timely harvested, unless the delay in

harvesting is directly due to an insured cause of loss; (4) due to

failure to follow the requirements contained in the processor

contract; and (5) due to damage that occurs to unharvested

production after the producer delivers the production required by

the processor contract.

20. Section 11--Require that the producer give us notice within

3 days of the date harvest should have started on any acreage that

will not be harvested and leave a representative sample of the

unharvested crop for our inspection, or at least 15 days prior to

the beginning of harvest if damage is discovered or immediately if

damage is discovered during harvest.

21. Section 12(a)--Clarify actions to be taken when acceptable

records of production are not provided regarding optional and basic

units to be consistent with other crop provisions.

22. Section 12(c)(1)(i)(E)--Clarify that total production to

count will include bypassed acreage unless adequate evidence is

provided to show the acreage was bypassed for insurable reasons.

23

ed during harvest.

21. Section 12(a)--Clarify actions to be taken when acceptable

records of production are not provided regarding optional and basic

units to be consistent with other crop provisions.

22. Section 12(c)(1)(i)(E)--Clarify that total production to

count will include bypassed acreage unless adequate evidence is

provided to show the acreage was bypassed for insurable reasons.

23. Section 12(c)(2)--Clarify that the amount of production for

harvested acreage will be determined by dividing the dollar amount

received from the processor for the quality and quantity of the

sweet corn received by the processor by the base contract price per

ton, and production to count of harvested production will be

expressed as unhusked ear weight.

24. Section 12(d)--Clarify determination of production to count

for acreage that is not timely harvested due to an uninsured cause

of loss.

25. Section 13--Clarify that a late planting provision, which

provides a reduced production guarantee on acreage initially planted

after the final planting date, is not available in these crop

provisions. A Late Planting Agreement Option was previously offered

on sweet corn; however, sweet corn must be grown under a processor

contract to be insurable. The processor may specify dates when the

sweet corn is to be planted to maintain a coordinated planting and

harvest schedule for all growers under contract. Therefore, offering

a late planting period may affect the processor's ability to timely

harvest and process the sweet corn.

26. Section 14--Add provisions for providing insurance coverage

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

certain modifications of the insurance contracts 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 application for, and duration of, written

agreements.

26. Section 14--Add provisions for providing insurance coverage

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

certain modifications of the insurance contracts 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 application for, and duration of, written

agreements.

Good cause is shown to allow 30 days for comments after this rule

is published in the Federal Register. This rule improves processing

sweet corn crop insurance coverage and brings it under the Common Crop

Insurance Policy Basic Provisions for consistency among policies.

Although the contract change date is December 31, 1997, the final rule

must be published by July 7, 1997. Publication is required by this date

to achieve revision and timely distribution of the actuarial documents

thereby allowing the reinsured companies and insureds sufficient time

to implement the new provisions. Therefore, public interest requires

the agency to act immediately to make these provisions available for

the 1998 crop year.

List of Subjects in 7 CFR Parts 437 and 457

Crop insurance, Corn, Reporting and recordkeeping.

Proposed Rule

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

Insurance Corporation hereby proposes to amend 7 CFR parts 437 and 457

as follows:

PART 437--SWEET CORN CROP INSURANCE REGULATIONS FOR THE 1985

THROUGH 1997 CROP YEARS

1. The authority citation for 7 CFR part 437 continues to read as

follows:

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

2. The part heading is revised to read as set forth above.

3. Subpart heading ``Subpart--Regulations for the 1985 through 1997

Crop Years'' is removed.

3. Section 437.7 is amended by revising the introductory text of

paragraph (d) to read as follows:

Sec. 437.7 The application and policy.

* * * * *

on for 7 CFR part 437 continues to read as

follows:

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

2. The part heading is revised to read as set forth above.

3. Subpart heading ``Subpart--Regulations for the 1985 through 1997

Crop Years'' is removed.

3. Section 437.7 is amended by revising the introductory text of

paragraph (d) to read as follows:

Sec. 437.7 The application and policy.

* * * * *

(d) The application for the 1985 through 1997 crop years is found

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

400.37, 400.38). The provisions of the Sweet Corn Insurance Policy for

the

1985 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. Section 457.154 is added to read as follows:

Sec. 457.154 Processing Sweet Corn Crop Insurance Provisions.

The Processing Sweet Corn Crop Insurance Provisions for the 1998

and succeeding crop years are as follows:

FCIC policies:

Department of Argibulture

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Processing 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

s:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Processing 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

Base contract price. The price stipulated on the contract

executed between you and the processor without regard to discounts

or incentives that may apply.

Bypassed acreage. Land on which production is ready for harvest

but is not harvested. Bypassed acreage on which an indemnity is

payable will be considered to have a zero yield for Actual

Production History (APH) purposes.

Days. Calendar days.

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

Department of Agriculture, or a successor agency.

Final planting date. The date contained in the Special

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

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

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 required by the sweet corn processor

contract with the processing company and recognized by the

Cooperative State Research, Education, and Extension Service as

compatible with agronomic and weather conditions in the county.

Harvest. The removal of the ears from the stalks for the purpose

of delivery to the processor.

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

rative State Research, Education, and Extension Service as

compatible with agronomic and weather conditions in the county.

Harvest. The removal of the ears from the stalks for the purpose

of delivery to the processor.

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 to produce at least the yield used to

establish the irrigated production guarantee on the irrigated

acreage planted to the insured crop.

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

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

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

planting method and production practice. Sweet corn must initially

be placed 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.

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, time to crop maturity, and marketing window, that replanting

the insured crop will allow the crop to attain maturity prior to the

calendar date for the end of the insurance period. It will not be

considered practical to replant unless production from the replanted

acreage can be delivered under the terms of the processor contract.

Processor

d to moisture availability, condition of the

field, time to crop maturity, and marketing window, that replanting

the insured crop will allow the crop to attain maturity prior to the

calendar date for the end of the insurance period. It will not be

considered practical to replant unless production from the replanted

acreage can be delivered under the terms of the processor contract.

Processor. Any business enterprise regularly engaged in

processing sweet corn for human consumption, that possesses all

licenses and permits for processing sweet corn required by the state

in which it operates, and that possesses facilities, or has

contractual access to such facilities, with enough equipment to

accept and process contracted sweet corn within a reasonable amount

of time after harvest.

Processor contract. A written agreement between the producer and

a processor, containing at a minimum:

(a) The producer's commitment to plant and grow sweet corn, and

to deliver the sweet corn production to the processor;

(b) The processor's commitment to purchase all the production

stated in the contract; and

(c) A base contract price.

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

by multiplying the approved APH yield per acre by the coverage level

percentage you elect.

Replanting. Performing the cultural practices necessary to

prepare the land 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.

Timely planted. Planted on or before the final planting date

designated in the Special Provisions for the insured crop in the

county.

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

Unhusked ear weight. Weight of the seed bearing spike of sweet

corn including the membranous or green outer envelope.

Written agreement. A written document that alters designated

terms of this policy in accordance with section 14.

2. Unit Division

e the final planting date

designated in the Special Provisions for the insured crop in the

county.

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

Unhusked ear weight. Weight of the seed bearing spike of sweet

corn including the membranous or green outer envelope.

Written agreement. A written document that alters designated

terms of this policy in accordance with section 14.

2. Unit Division

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

in section 1 (Definitions) of the Basic Provisions (Sec. 457.8), (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. Basic units may not be divided

into optional units on any basis other than as described in this

section.

(b) Optional units will be available only if the processor

contract stipulates the number of acres that are under contract and

not a specific amount of production. This provision may not be

changed by written agreement.

(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 additional

premium paid for the optional units that have been combined will be

refunded to you.

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

identified on the acreage report for that crop year.

to comply with these provisions. If failure to comply with

these provisions is determined to be inadvertent, and the optional

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

premium paid for the optional units that have been combined will be

refunded to you.

(d) All optional units you selected for the 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 used to determine your production

guarantee;

(2) You must plant the crop in a manner that results in a clear

and discernable break in the planting pattern at the boundaries of

each optional unit;

(3) 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 meet one or more of the following

criteria, as applicable:

(i) Optional Units by Section, Section Equivalent, or FSA Farm

Serial Number. Optional units may be established if each optional

unit is located in a separate legally identified section. In the

absence of sections, we may consider parcels of land legally

identified by other methods of measure including, but not limited to

Spanish grants, railroad surveys, leagues, labors, or Virginia

Military Lands, as the equivalent of sections for unit purposes. In

areas 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.

ad 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.

(ii) Optional Units on Acreage Including Both Irrigated and Non-

irrigated Practices. In addition to, or instead of, establishing

optional units by section, section equivalent, or FSA Farm Serial

Number, optional units

may be based on irrigated acreage or non-irrigated acreage if both

are located in the same section, section equivalent, or FSA Farm

Serial Number. To qualify as separate irrigated and non-irrigated

optional units, the non-irrigated acreage may not continue into the

irrigated acreage in the same rows or planting pattern. The

irrigated acreage may not extend beyond the point at which the

irrigation system can deliver the quantity of water needed to

produce the yield on which the guarantee is based, except the

corners of a field in which a center-pivot irrigation system is used

will be considered as irrigated acreage if separate acceptable

records of production from the corners are not provided. If the

corners of a field in which a center-pivot irrigation system is used

do not qualify as a separate non-irrigated optional unit, they will

be a part of the unit containing the irrigated acreage. However,

non-irrigated acreage that is not a part of a field in which a

center-pivot irrigation system is used may qualify as a separate

optional unit provided that all requirements of this section are

met.

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):

d in which a

center-pivot irrigation system is used may qualify as a separate

optional unit provided that all requirements of this section are

met.

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 select only one price election for all the

processing sweet corn 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 processing

sweet corn 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

one type, you must also choose 100 percent of the maximum price

election for all other types; and

(b) The insurance guarantee per acre is expressed as tons of

unhusked ears. Any other measured production will be converted to an

unhusked ear weight equivalent.

4. Contract Changes

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

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

preceding the cancellation date.

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 March 15.

6. Report of Acreage

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

of the Basic Provisions (Sec. 457.8), you must provide a copy of all

processor contracts to us on or before the acreage reporting date.

7. Insured Crop

ce with section 2 (Life of Policy, Cancellation, and

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

and termination dates are March 15.

6. Report of Acreage

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

of the Basic Provisions (Sec. 457.8), you must provide a copy of all

processor contracts to us on or before the acreage reporting date.

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 sweet corn

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 to be canned or frozen;

(3) That is grown under, and in accordance with, the

requirements of a processor contract executed on or before the

acreage reporting date and not excluded from the processor contract

at any time during the crop year; and

(4) That is not (unless allowed by the Special Provisions or by

written agreement):

(i) Interplanted with another crop; or

(ii) Planted into an established grass or legume.

(b) You will be considered to have a share in the insured crop

if, under the processor contract, you retain possession of the

acreage on which the sweet corn is grown, you are at risk of loss,

and the processor contract provides for delivery of sweet corn under

specified conditions and at a stipulated base contract price per

unit of delivery.

(ii) Planted into an established grass or legume.

(b) You will be considered to have a share in the insured crop

if, under the processor contract, you retain possession of the

acreage on which the sweet corn is grown, you are at risk of loss,

and the processor contract provides for delivery of sweet corn under

specified conditions and at a stipulated base contract price per

unit of delivery.

(c) A commercial sweet corn producer who is also a processor may

establish an insurable interest if the following requirements are

met:

(1) The processor must meet the requirements as defined in these

crop provisions;

(2) The Board of Directors or officers of the processor must

have executed a resolution that sets forth essentially the same

terms as a processor contract. Such resolution will be considered a

contract under the terms of the processing sweet corn crop insurance

policy; and

(3) Our inspection of the processing facilities determines that

they satisfy the definition of a processor contained in these crop

provisions.

8. Insurable Acreage

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

of the Basic Provisions (Sec. 457.8):

(a) Any acreage of the insured crop that is damaged before the

final planting date, to the extent that the majority of growers in

the area would normally not further care for the crop, must be

replanted unless we agree that it is not practical to replant; and

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

rotation requirements contained in the Special Provisions.

9. Insurance Period

In lieu of the provisions contained in section 11 (Insurance

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

the insurance period, insurance ceases at the earlier of:

(a) The date the sweet corn:

(1) Was destroyed;

(2) Should have been harvested;

(3) Was abandoned; or

(4) Was harvested;

(b) The date you harvested sufficient production to fulfill your

processor contract;

(c) Final adjustment of a loss; or

in section 11 (Insurance

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

the insurance period, insurance ceases at the earlier of:

(a) The date the sweet corn:

(1) Was destroyed;

(2) Should have been harvested;

(3) Was abandoned; or

(4) Was harvested;

(b) The date you harvested sufficient production to fulfill your

processor contract;

(c) Final adjustment of a loss; or

(d) Unless otherwise agreed to in writing, the calendar date for

the end of the insurance period in which the sweet corn would

normally be harvested as follows:

(1) September 30 in Malheur County, Oregon, all Idaho counties,

and all Iowa counties;

(2) October 20 in all other Oregon counties, and in all

Washington counties; or

(3) September 20 in all other states.

10. Causes of Loss

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

of the Basic Provisions (Sec. 457.8):

(a) Insurance is provided only against the following causes of

loss that occur during the insurance period:

(1) Adverse weather conditions, including but not limited to:

(i) Excessive moisture that prevents harvesting equipment from

entering the field or that prevents the timely operation of

harvesting equipment; and

(ii) Abnormally hot or cold temperatures as determined by us

that cause insured acreage to be bypassed because an unexpected

number of acres over a large producing area are ready for harvest at

the same time, and the total production is beyond the normal

capacity of the processor to timely harvest or process;

(2) Fire;

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

application of pest control measures;

(4) Plant disease on acreage not planted to sweet corn the

previous crop year, but not damage due to insufficient or improper

application of disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

mal

capacity of the processor to timely harvest or process;

(2) Fire;

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

application of pest control measures;

(4) Plant disease on acreage not planted to sweet corn the

previous crop year, 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 due to a cause of

loss referred to in section 10(a) (1) through (7) above 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 any loss of production:

(1) On bypassed acreage if the acreage is bypassed due to the

breakdown or non-operation of equipment or facilities;

(2) On bypassed acreage if acreage to be bypassed is selected

based on the availability of a crop insurance payment;

(3) Due to processing sweet corn not being timely harvested

unless such delay in harvesting is solely and directly due to an

insured cause of loss;

(4) Due to your failure to follow the requirements contained in

the processor contract; or

(5) Due to damage that occurs to unharvested production after

you deliver the production required by the processor contract.

11. Duties in the Event of Damage or Loss

In addition to the requirements of section 14 (Duties in the

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

must give us notice:

(a) Not later than 48 hours after:

(1) Total destruction of the sweet corn on the unit; or

(2) Discontinuance of harvest on a unit.

after

you deliver the production required by the processor contract.

11. Duties in the Event of Damage or Loss

In addition to the requirements of section 14 (Duties in the

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

must give us notice:

(a) Not later than 48 hours after:

(1) Total destruction of the sweet corn on the unit; or

(2) Discontinuance of harvest on a unit.

(b) Within 3 days of the date harvest should have started on any

acreage that will not be harvested and document why the acreage was

bypassed. Failure to provide such information will result in our

determination that the acreage was bypassed due to an uninsured

cause of loss. If the crop will not be harvested and you wish to

destroy

the crop, you must leave representative samples of the unharvested

crop for our inspection. The samples must be at least 10 feet wide

and extend the entire length of each field in each unit and must not

be destroyed until the earlier of our inspection or 15 days after

notice is given to us; and

(c) At least 15 days prior to the beginning of harvest if you

intend to claim an indemnity on any unit, or immediately if damage

is discovered during harvest, so that we may inspect any damaged

production. If you fail to notify us and such failure results in our

inability to inspect the damaged production, we will consider all

such production to be undamaged and include it as production to

count. You do not have to delay harvest if notification is timely

given.

12. Settlement of Claim

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

you are unable to provide separate acceptable production records:

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

for which such production records were not provided; or

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

production to such units in proportion to our liability on the

harvested acreage for the units.

e will determine your loss on a unit basis. In the event

you are unable to provide separate acceptable production records:

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

for which such production records were not provided; or

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

production to such units in proportion to our liability on the

harvested acreage for the units.

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

will settle your claim by:

(1) Multiplying the insured acreage by its respective production

guarantee, by type if applicable;

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

respective price election, by type if applicable;

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

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

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

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

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

in section 12 (b)(3); and

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

(c) The total production to count, specified in tons of unhusked

ear weight, from all insurable acreage on the unit will include:

(1) All appraised production as follows:

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

(A) That is abandoned;

(B) That is put to another use without our consent;

(C) That is damaged solely by uninsured causes;

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

acceptable to us; or

(E) That is bypassed unless the acreage was bypassed due to a

cause of loss stated in section 10(a).

(ii) Production lost due to uninsured causes;

n the production guarantee for acreage:

(A) That is abandoned;

(B) That is put to another use without our consent;

(C) That is damaged solely by uninsured causes;

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

acceptable to us; or

(E) That is bypassed unless the acreage was bypassed due to a

cause of loss stated in section 10(a).

(ii) Production lost due to uninsured causes;

(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) If you do not elect to continue to care for the crop, we may

give you consent to put the acreage to another use if you agree to

leave intact, and provide sufficient care for, representative

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

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

production or appraisals from the samples at the time harvest should

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

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

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

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

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

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested.

de sufficient care for the samples, our appraisal made

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

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

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

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested.

(2) All harvested sweet corn production from the insurable

acreage. The amount of such production will be determined by

dividing the dollar amount as required by the contract for the

quality and quantity of the sweet corn delivered to the processor by

the base contract price per ton. The total production to count will

be expressed as an unhusked ear weight. Any other measure of

production will be converted to an unhusked ear weight equivalent.

(d) If any acreage is not timely harvested due to an uninsured

cause of loss but is later harvested, the production to count will

be the greater of:

(1) The harvested amount of production with no adjustment for

quality; or

(2) The amount determined by dividing the dollar amount as

required by the contract for the quality and quantity of the sweet

corn delivered to the processor for the production by the base

contract price per ton.

13. Late Planting

Late planting provisions are not applicable to processing sweet

corn.

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 section

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 guarantee, premium rate, and price election;

provided in section

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 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.

Signed in Washington, DC, on April 25, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-11251 Filed 4-30-97; 8:45 am]

BILLING CODE 3410-FA-P