[Federal Register: January 18, 2008 (Volume 73, Number 13)]
[Proposed Rules]
[Page 3411-3417]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja08-12]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC14
Common Crop Insurance Regulations; Dry Pea Crop Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Common Crop Insurance Regulations; Dry Pea Crop Insurance
Provisions to include the insurability of additional types of dry peas,
to offer winter coverage, to allow replanting payments, and to make
chickpeas insurable under the Dry Pea Crop Provisions rather than the
Dry Bean Crop Provisions. The intended effect of this action is to
provide policy changes, to clarify existing policy provisions to better
meet the needs of the producers, and to reduce vulnerability to program
fraud, waste, and abuse. The changes will apply for the 2009 and
succeeding crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business March 18, 2008 and will be considered
when the rule is to be made final.
ADDRESSES: Interested persons are invited to submit written comments,
titled ``Dry Pea Crop Provisions'', by any of the following methods:
By Mail to: Director, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, Beacon Facility, Stop 0812, Room 421, PO Box 419205,
Kansas City, MO 64141-6205.
By Express Mail to: Director, Product Administration and
Standards Division, Risk Management Agency, United States Department of
Agriculture, Beacon Facility, Stop 0812, 9240 Troost Avenue, Kansas
City, MO 64131-3055.
E-mail: DirectorPDD@rma.usda.gov.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
A copy of each response will be available for public inspection and
copying from 7 a.m. to 4:30 p.m., CST,
[[Page 3412]]
Monday through Friday, except holidays, at the above address.
FOR FURTHER INFORMATION CONTACT: Claire Elsea, Economist, Product
Management, Product Administration and Standards Division, Risk
Management Agency, at the Kansas City, MO, address listed above,
telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
rule is non-significant for the purpose of Executive Order 12866 and,
therefore, it has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Pursuant to the provisions of the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35), the collections of information in this rule
have been approved by OMB under control number 0563-0053 through June
30, 2008.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
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. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of UMRA.
Executive Order 13132
It has been determined under section 1(a) of Executive Order 13132,
Federalism, that this rule does not have sufficient implications to
warrant consultation with the States. The provisions contained in this
rule will not have a substantial direct effect on States, or on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation. For
instance, all producers are required to submit an application and
acreage report to establish their insurance guarantees and compute
premium amounts, and all producers are required to submit a notice of
loss and production information to determine the amount of an indemnity
payment in the event of an insured cause of crop loss. Whether a
producer has 10 acres or 1000 acres, there is no difference in the kind
of information collected. To ensure crop insurance is available to
small entities, the Federal Crop Insurance Act authorizes FCIC to waive
collection of administrative fees from limited resource farmers. FCIC
believes this waiver helps to ensure that small entities are given the
same opportunities as large entities to manage their risks through the
use of crop insurance. A Regulatory Flexibility Analysis has not been
prepared since this regulation does not have an impact on small
entities, and therefore, this regulation is exempt from the provisions
of the Regulatory Flexibility Act (5 U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988 on civil justice reform. The provisions of this rule will
not have a retroactive effect. The provisions of this rule will preempt
State and local laws to the extent such State and local laws are
inconsistent herewith. With respect to any direct action taken by FCIC
or to require the insurance provider to take specific action under the
terms of the crop insurance policy, the administrative appeal
provisions published at 7 CFR part 11 must be exhausted before any
action against FCIC for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, or safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
FCIC proposes to revise 7 CFR part 457, Common Crop Insurance
Regulations, by amending Sec. 457.140 Dry Pea Crop Insurance
Provisions, to be effective for the 2009 and succeeding crop years.
Several requests have been made for changes to improve the coverage
offered, address program integrity issues, simplify program
administration, and improve clarity of the policy provisions.
The proposed changes are as follows:
1. Section 1--FCIC proposes to revise the definition of ``base
price'' to delete the word ``processor'' and add ``seed company'' since
the contract is with a seed company, not a processor.
FCIC also proposes to revise the definition of ``contract seed
peas.'' Proposed language makes coverage available to fall and spring
planted acreage. FCIC now proposes to insure fall planted acreage.
Therefore, it must be included in the definition of ``contract seed
peas.'' FCIC also proposes to remove the requirement that acreage must
be enrolled in the seed certification program administered by the state
in which the peas are produced because some states no longer administer
seed certification programs. Therefore, enforcing this requirement
could limit the availability of crop insurance for contract seed pea
producers.
FCIC proposes to revise the definition of ``dry peas'' to allow
insurability of additional types of dry peas. Currently, only spring
planted smooth green and yellow types of commercial dry peas, peas
grown for seed, fall planted types of Austrian Winter peas if provided
for in the Special Provisions, all spring planted types of lentils, and
all types of contract seed peas are insurable. FCIC proposes to amend
these provisions to remove the specific types that are insurable and to
specify that the insurable types will be contained in the Special
Provisions. FCIC also proposes to insure chickpeas (a.k.a. garbanzo
beans) under the Dry Pea Crop Provisions. Chickpeas are currently
insurable under the Dry Bean Crop Provisions only. However, the
agronomical and physiological traits of chickpeas are more similar to
dry peas and lentils than dry beans. This change will also simplify the
crop insurance program by allowing producers of dry peas, lentils and
chickpeas to purchase coverage for these crops under one policy.
[[Page 3413]]
FCIC proposes to clarify the definition of ``harvest'' by adding
the following sentence ``Dry peas that are swathed prior to combining
are not considered harvested.'' Swathing is a step in the harvest
process but the seed is not removed from the plant until the crop is
combined.
FCIC proposes to revise the definition of ``local market price'' to
specify that factors not associated with grading under United States
Standards for Whole Dry Peas, Split Peas and the Lentils will not be
considered unless otherwise specified on the Special Provisions. The
intent of this change is to standardize the grading standards to be
used in quality adjustment, recognizing that there may be circumstances
where it may be necessary to deviate from such standards. If such
circumstances arise, the proposed change provides the flexibility to
make changes through the Special Provisions, if necessary.
FCIC proposes to revise the definition of ``nurse crop (companion
crop)'' for clarity and to be consistent with the definition of ``nurse
crop (companion crop)'' in the Small Grains Crop Provisions.
FCIC proposes to revise the definition of ``practical to replant''
to reference the addition of fall planted dry peas. As stated above,
insurance coverage will now be provided for fall planted dry peas.
Therefore, the conditions under which it will not be considered
practical to replant fall planted dry peas must be specified because
the conditions are not the same as for spring planted dry peas.
FCIC proposes to revise the definition of ``price election'' to
provide clarification that the price election is used to determine
premium and any indemnity for contract seed peas under this policy.
FCIC proposes to revise the definition of ``seed company contract''
to remove the word ``varieties'' and add the word ``types'' in both
places. This change is necessary because FCIC has proposed to insure
categories of dry peas that will be contained in the Special Provisions
to allow the flexibility to add new types as appropriate.
FCIC proposes to add a definition of ``swathed'' to describe the
process that is used by producers prior to combining the crop because a
crop that has only been swathed is not considered harvested.
FCIC proposes to add a definition of ``type'' because FCIC has
proposed to refer to the categories that may be insured as ``types,''
and specify that the insured types will be contained in the Special
Provisions, which will allow additional types to be quickly added as
appropriate.
FCIC proposed to add a definition of ``windrow'' because the term
is used in the definition of ``swathed.''
2. Section 2--FCIC proposes to revise the language in section 2 to
specify optional units may be established for each type specified in
the Special Provisions because different types may have significantly
different characteristics and risks, making it more appropriate to have
separate guarantees, premium, and loss adjustment for each type.
3. Section 3--FCIC proposes to revise section 3 to allow the
insured to select a separate coverage level and price percentage for
each insurable type listed on the Special Provisions. Previously, only
coverage levels could be selected by type but because the types may
have significantly different characteristics with different risks,
allowing separate price elections is appropriate.
4. Section 7--FCIC proposes to revise section 7 to add provisions
that state dry peas planted to plow down, graze, harvest as hay or to
otherwise not harvest as a mature dry pea crop are not insurable. The
Dry Pea Crop Provisions allow coverage for dry peas that have reached
maturity. These practices do not commonly take place when the dry peas
have reached maturity. Also, FCIC has not established premium rates for
dry peas that are plowed down, grazed or harvested as hay. Therefore,
dry peas that are planted to plow down, graze, harvest as hay or to
otherwise not harvest as a mature crop are not insurable under the Dry
Pea Crop Provisions.
FCIC also proposes to revise section 7 to allow insurability of
fall planted acreage of dry peas, and to allow for coverage for fall
seeded acreage of dry peas between the time coverage begins and the
spring final planting date under the Winter Coverage Option. More
producers are planting in the fall and FCIC has sufficient data to
assess the risks and provide appropriate coverage. Without the
availability of such coverage, producers who plant in the fall are at
risk until the spring coverage takes affect.
5. Section 9--FCIC proposes to add provisions to specify the
criteria for insurance coverage when the Special Provisions designate
only a spring final planting date or both a fall and spring final
planting date. This change is necessary because fall planted acreage is
now insurable under the Dry Pea Crop Provisions.
6. Section 11--FCIC proposes to add a new section 11 authorizing
replanting payments for dry peas. Adding replanting payments for dry
peas makes the Dry Pea Crop Provisions consistent with the coverage
available for other similar crops.
7. Redesignated section 13--FCIC proposes to revise the
introductory text in 13(a) to be consistent with the provisions in the
Small Grain Crop Provisions.
FCIC also proposes to revise redesignated sections 13(c)(1) to add
the word ``mature.'' Adding the word ``mature'' is necessary because
only mature production is eligible for quality adjustments. FCIC also
proposes to specify measurable standards in the seed company contract
when discussing dry peas that meet or fail to meet the standards in the
seed company contract. FCIC has had problems in the past with contract
standards that contained standards that were not objective or
measurable, which made it very difficult to determine whether the
insured crop met such standards. This language will make it clear that
FCIC is only providing quality adjustments for dry peas that do not
meet the objective measurable standards in the seed company contract.
FCIC proposes to revise redesignated section (d)(1)(iii) to remove
the phrase ``excluding Austrian Winter Peas'' and add the phrase ``in
accordance with the following unless otherwise specified in the Special
Provisions.'' Adding the phrase ``in accordance with the following
unless otherwise specified in the Special Provisions'' is necessary
because there may be situations where other quality adjustment
procedures are more appropriate and this language provides the
flexibility to quickly make such changes.
FCIC proposes to revise the introductory text of redesignated
section 13(e) by removing the specifically listed types of dry peas.
The insured types will now be specified in the Special Provisions to
allow the flexibility to add new types, as applicable, more quickly.
FCIC also proposes to revise the introductory text of redesignated
section 13(e) by clarifying that seed peas that do not meet the
objective, measurable terms of the contract (e.g., size, germination
percentage) are eligible for quality adjustment. As stated above, there
had been problems in the past with subjective standards in these
contracts, which made quality adjustment difficult. This change will
clarify that only those objective, measurable standards in the contract
will be used to determine whether the dry peas meet the standards in
the contract.
FCIC proposes to revise the introductory text of redesignated
section 13(e)(1) by allowing deficiencies in
[[Page 3414]]
quality to be specified in the Special Provisions. This revision is
consistent with the proposed change in section 13(d)(1)(iii).
8. Section 15--FCIC proposes to add a new section 15 Winter
Coverage Option. This option allows optional coverage during the over-
wintering period for fall planted acreage. Currently, there is a period
during which the crop may be in the field and coverage is not
available. The Winter Coverage Option will permit coverage during this
risk period. FCIC proposes the Winter Coverage Option be available in
counties for which the actuarial table provides a premium rate. The
option provides coverage on fall planted dry peas from the time the
insurance attaches until the spring final planting date, unless
otherwise provided by a written agreement. This coverage will allow
insureds who have winter damage on their fall planted dry peas to
continue to care for the crop, replant the crop, or destroy the crop in
accordance with the provisions. FCIC proposes the Winter Coverage
Option also provides replant payments.
9. FCIC also proposes to remove those provisions that are now
duplicative of provisions contained in the Common Crop Insurance Policy
Basic Provisions and revise certain provisions for clarity. No
substantive changes are made to such provisions.
List of Subjects in 7 CFR Part 457
Crop insurance, Dry peas, Reporting and recordkeeping requirements,
Proposed Rule.
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 457 effective for
the 2009 and succeeding crop years as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. Amend Sec. 457.140 as follows:
a. Revise the introductory text:
b. Remove the paragraph immediately preceding section 1;
c. Amend section 1 by revising the definitions of ``base price,''
``contract seed peas,'' ``dry peas,'' ``harvest,'' ``local market
price,'' ``nurse crop (companion crop),'' ``practical to replant,''
``price election,'' ``seed company contract,'' and add definitions of
``swathed,'' ``type,'' and ``windrow;''
d. Revise section 2;
e. Revise section 3;
f. Revise section 7;
g. Revise section 9;
h. Redesignate sections 11 through 13 as 12 through 14,
respectively, and add a new section 11;
i. Revise redesignated section 12;
j. Amend redesignated section 13 by removing the phrase ``section
12'' and adding the phrase ``section 13'' in its place everywhere it
appears;
k. Revise redesignated section 13(a) introductory text, (a)(1), and
(a)(2);
l. Revise the introductory text in redesignated section 13(c)(1);
m. Revise redesignated section 13(d)(1)(iii);
n. Revise the introductory text of redesignated sections 13(e) and
13(e)(1); and
o. Add a new section 15.
The revised and added text reads as follows:
Sec. 457.140 Dry Pea Crop Insurance Provisions.
The Dry Pea Crop Insurance Provisions for the 2009 and succeeding
crop years are as follows:
* * * * *
1. Definitions
* * * * *
Base contract price. The price per pound stipulated in the seed
company contract without regard to discounts or incentives that may
apply, and that will be paid to the producer for at least 50 percent of
the total production under contract with the seed company.
* * * * *
Contract seed peas. Dry peas grown under the terms of a seed
company contract for the purpose of producing seed to be used for
producing dry pea crops in a future crop year.
Dry peas. Peas (Pisum sativum L.), Austrian peas (Pisum sativum spp
arvense), lentils (Lens culinaris Medik.) and chickpeas (Cicer
arietinum L.) and those types listed on the Special Provisions.
Harvest. Combining of dry peas. Dry peas that are swathed prior to
combining are not considered harvested.
Local market price. The cash price per pound for the U.S. No. 1
grade of dry peas as determined by us. Such price will be the
prevailing dollar amount buyers are willing to pay for dry peas
containing the maximum limits of quality deficiencies allowable for the
U.S. No. 1 grade. Factors not associated with grading under the United
States Standards for Whole Dry Peas, Split Peas and Lentils will not be
considered, unless otherwise specified in the Special Provisions.
Nurse crop (companion crop). A crop planted into the same acreage
as another crop to improve the growing conditions for the crop with
which it is grown, and that is intended to be harvested separately.
* * * * *
Practical to replant. In addition to the definition contained in
the Basic Provisions, it will not be considered practical to replant
dry peas, except for seed peas and fall planted dry peas, more than 25
days after the final planting date unless replanting is generally
occurring in the area. For seed peas, it will not be considered
practical to replant unless the seed company will accept the production
under the terms of the seed company contract. For fall planted dry
peas, it will not be considered practical to replant more than 25 days
after the final planting date for the corresponding spring planted type
of dry pea.
Price election. In addition to the provisions of the definition
contained in the Basic Provisions, the price election for contract seed
peas will be the percentage you elect (not to exceed 100 percent) of
the base price and used for the purposes of determining premium and
indemnity for contract seed peas under this policy.
* * * * *
Seed company contract. A written agreement between the producer and
the seed company, executed by the acreage reporting date, containing at
a minimum:
(a) The producer's promise to plant and grow one or more specific
types of contract seed peas, and deliver the production from those
types to the seed company;
(b) The seed company's promise to purchase all the production
stated in the contract; and
(c) A fixed price, or a method to determine such price based on
published information compiled by a third party, that will be paid to
the producer for at least 50 percent of the production stated in the
contract.
Swathed. Severance of the stem and pods from the ground without
removal of the seeds from the pods and placing such into a windrow.
Type. A category of dry peas identified as a type in the Special
Provisions.
Windrow. Dry peas where the plants are cut and placed in a row.
2. Unit Division
In addition to, or instead of, establishing optional units by
section, section equivalent, or FSA farm serial number and by irrigated
and non-irrigated acreage as provided in the unit division provisions
contained in the Basic Provisions, separate optional units may be
established for each dry pea type as specified on the Special
Provisions.
[[Page 3415]]
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In lieu of the requirements of section 3 of the Basic
Provisions, you may select only one coverage level for each type listed
on the Special Provisions.
(b) In addition to the requirements of section 3 of the Basic
Provisions, you may select only one price election for all dry peas in
the county insured under this policy unless the Special Provisions
provide different price elections for a particular type, in which case
you may select one price election for each dry pea type so designated
in the Special Provisions.
(1) If the Special Provisions designate different price elections
by type, the price elections you choose for each type are not required
to 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 for one type, you may also choose 75 percent of the
maximum price for another type;
(2) If you elect the Catastrophic Risk Protection level of
insurance for any of the above, the same level of coverage will be
applicable to all insured dry pea acreage in the county;
(3) If the Special Provisions do not designate different price
elections by type, the price election you choose for each type is
required to have the same percentage relationship to the maximum price
offered by us for each price. For example, if you choose 100 percent of
the maximum price election for one type, the 100 percent election will
apply to all other types you produce.
* * * * *
7. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the dry pea types in the county for which a premium
rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvesting once maturity is reached as:
(i) Dry peas; or
(ii) Contract seed peas, if a seed company contract is executed on
or before the acreage reporting date; and
(3) That are not (unless allowed by the Special Provisions or by
written agreement):
(i) Interplanted with another crop;
(ii) Planted into an established grass or legume;
(iii) Planted as a nurse crop; or
(iv) Planted to plow down, graze, harvest as hay, or to otherwise
not harvest as a mature dry pea crop.
(b) You will be considered to have a share in the insured crop if,
under the seed company contract, you retain control of the acreage on
which the dry peas are grown, you are at risk of loss (i.e., if there
is a reduction in quantity or quality of your dry pea production, you
will receive less income under the contract), and the seed company
contract is in effect for the entire insurance period.
(c) In counties for which the actuarial documents provide premium
rates for the Winter Coverage Option (see section 15), coverage is
available for dry peas between the time coverage begins and the spring
final planting date. Coverage under the option is effective only if you
qualify under the terms of the option and you elect the option by the
sales closing date.
* * * * *
9. Insurance Period
In accordance with the provisions of section 11 of the Basic
Provisions and subject to provisions provided by the Winter Coverage
Option (see section 15) if you elect such option, the insurance period
is as follows:
(a) Coverage for fall planted dry peas not covered by the Winter
Coverage Option will begin on the earlier of April 15 or the date we
agree to accept the acreage for insurance, but not before March 1,
unless otherwise specified on the Special Provisions.
(b) The calendar date for the end of the insurance period for all
insurable types of dry peas in the county is September 30 of the crop
year in which the crop is normally harvested, unless otherwise
specified in the Special Provisions.
(c) Any acreage of the insured crop damaged before the final
planting date, to the extent that producers in the surrounding area
would not further care for the crop, must be replanted unless we agree
that it is not practical to replant.
(d) Whenever the Special Provisions designate both fall and spring
final planting dates:
(1) Any fall planted dry peas that are damaged before the spring
final planting date, to the extent that growers in the area would
normally not further care for the crop, must be replanted to a fall
planted type of dry peas to maintain insurance based on the fall
planted type unless we agree that replanting is not practical. If it is
not practical to replant to a fall planted type of dry peas but it is
practical to replant to a spring planted type, you must replant to a
spring planted type to keep your insurance coverage based on the fall
planted type in force.
(2) Any fall planted dry pea acreage that is replanted to a spring
planted type when it was practical to replant the fall planted type
will be insured as the spring planted type and the production
guarantee, premium and price election applicable to the spring planted
type will be used. In this case, the acreage will be considered to be
initially planted to the spring planted type.
(3) Notwithstanding sections 9(d)(1) and (2), if you have elected
coverage under the Winter Coverage Option (if available in the county),
insurance will be in accordance with the option.
(e) Whenever the Special Provisions designate only a spring final
planting date, any acreage of a fall planted dry pea crop is not
insured unless you request such coverage on or before the spring sales
closing date, and we agree in writing that the acreage has an adequate
stand in the spring to produce the yield used to determine your
production guarantee.
(1) The fall planted dry pea crop will be insured as a spring
planted type for the purpose of the production guarantee, premium and
price election.
(2) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand prior to the spring final planting
date.
(3) Any acreage of such fall planted dry peas that is damaged after
it is accepted for insurance but before the spring final planting date,
to the extent that growers in the area would normally not further care
for the crop, must be replanted to a spring planted type of dry pea
unless we agree it is not practical to replant.
(4) If fall planted acreage is not to be insured it must be
recorded on the acreage report as uninsured fall planted acreage.
* * * * *
11. Replanting Payments
(a) A replanting payment is allowed as follows:
(1) In lieu of provisions in section 13 of the Basic Provisions
that limit the amount of a replant payment to the actual cost of
replanting, the amount of any replanting payment will be determined in
accordance with these Crop Provisions;
(2) You must comply with all requirements regarding replanting
payments contained in section 13 of the Basic Provisions (except as
allowed in section 11(a)(1)) and in the Winter Coverage Option for
which you are eligible and which you have elected;
(3) The insured crop must be damaged by an insurable cause of loss
to the
[[Page 3416]]
extent that the remaining stand will not produce at least 90 percent of
the production guarantee for the acreage.
(4) The acreage must have been initially planted to a spring type
of the insured crop in those counties with only a spring final planting
date;
(5) Damage must occur after the fall final planting date in those
counties where both a fall and spring final planting date is designated
(if the Special Provisions provide more than one fall final planting
date, the fall final planting date applicable to policies with the
Winter Coverage Option (see section 15) will be used for this purpose,
regardless of whether or not the option is actually in effect); and
(6) The replanted crop must be seeded at a rate sufficient to
achieve a total (undamaged and new seeding) plant population that will
produce at least the yield used to determine your production guarantee.
(b) The maximum amount of the replanting payment per acre will be
the lesser of 20.0 percent of the production guarantee or 200 pounds,
multiplied by your price election, multiplied by your share, unless
otherwise stated in the Special Provisions.
(c) When the crop is replanted using a practice that is uninsurable
for an original planting, the liability on the unit will be reduced by
the amount of the replanting payment. The premium amount will not be
reduced.
(d) Replanting payments will be calculated using the price election
and production guarantee for the dry pea type that is replanted and
insured. For example, if damaged smooth green and yellow pea acreage is
replanted to lentils, the price election and production guarantee
applicable to lentils will be used to calculate any replanting payment
that may be due. A revised acreage report will be required to reflect
the replanted type. Notwithstanding the previous two sentences, the
following will have a replanting payment based on the guarantee and
price election for the crop type initially planted:
(1) Any damaged fall planted crop type replanted to a spring
planted type that retains insurance based on the production guarantee
and price election for the fall planted type; and
(2) Any acreage replanted at a reduced seeding rate into a
partially damaged stand of the insured crop.
12. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14
of the Basic Provisions.
13. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event you
are unable to provide records of production that are acceptable to us
for any:
(1) Optional units, we will combine all optional units for which
acceptable records of production were not provided; or
(2) Basic units, we will allocate any commingled production to such
units in proportion to our liability on the harvested acreage for each
unit.
* * * * *
(c) * * *
(1) For mature production meeting the objective, measurable minimum
quality requirements (e.g., size, germination percentage) contained in
the seed company contract, and for production that does not meet such
requirements due to uninsured causes:
* * * * *
(d) * * *
(1) * * *
(iii) Unharvested production (mature unharvested production of dry
peas may be adjusted for quality deficiencies in accordance with
section 13I or (e), or as specified in the Special Provisions); and
* * * * *
(e) Mature dry pea production that does not qualify as contract
seed peas under the policy terms or does not meet the objective,
measurable terms of the contract (e.g., size, germination percentage),
may be adjusted for quality deficiencies.
(1) Production will be eligible for quality adjustment in
accordance with the following, unless otherwise specified in the
Special Provisions:
* * * * *
15. Winter Coverage Option
(This is a continuous endorsement)
(a) In the event of a conflict between this section and sections 1-
14 of these Crop Provisions, this section will control.
(b) Catastrophic Risk Protection Coverage is not available under
this option.
(c) In return for payment of the additional premium designated in
the actuarial documents, this option is available in counties for which
the actuarial documents provide premium rates for the winter coverage
option, coverage is available for dry peas between the time coverage
begins and the spring final planting date.
(d) You must have a Dry Pea Crop Insurance Policy in effect and
elect to insure the dry pea type under such policy.
(e) You must select this coverage on your application for insurance
on or before the sales closing date. Failure to do so means you have
rejected this coverage for the dry pea crop planted in the fall and
this option is void.
(f) Coverage under this option begins on the later of the date we
accept your application for coverage or on the fall final planting date
designated in the Special Provisions. Coverage ends on the spring final
planting date designated in the Special Provisions.
(g) In addition to the provisions of section 34(b) of the Basic
Provisions and section 2 of the Dry Pea Crop Provisions, optional units
may be established for dry peas if each optional unit contains only dry
peas initially planted in the fall or only dry peas initially planted
in the spring.
(h) In lieu of sections 4 and 5 of these Crop Provisions, if you
elect this option for the dry pea crop initially planted in the fall,
the following dates will be applicable to all your fall planted and
spring planted dry pea crop in the county:
(1) Contract change date is June 30 preceding the cancellation
date;
(2) Cancellation date is September 30; and
(3) Termination date is November 30.
(i) In lieu of the provisions in section 14 of the Basic
Provisions, all notices of damage must be provided to us not later than
15 days after the spring final planting date designated in the Special
Provisions.
(j) All insurable acreage of each fall planted dry pea type covered
under this option must be insured.
(k) The amount of any indemnity paid under the terms of this option
will be subject to any reduction specified in the Basic Provisions for
multiple crop benefits in the same crop year.
(l) Whenever any acreage of a dry pea crop planted in the fall is
damaged during the insurance period and at least 20 acres or 20 percent
of the insured planted acreage in the unit, whichever is less, does not
have an adequate stand to produce at least 90 percent of the production
guarantee for the acreage, you may, at your option, take one of the
following actions:
(1) Continue to care for the damaged crop. By doing so, coverage
will continue under the terms of the Basic Provisions, the Dry Pea Crop
Insurance Provisions and this option;
(2) Replant the acreage to an appropriate type of the insured crop,
if it is practical, and receive a replanting payment in accordance with
the terms of section 11. By doing so, coverage will continue under the
terms of the Basic Provisions, the Dry Pea Crop Insurance Provisions
and this option, and the production guarantee for the dry pea
[[Page 3417]]
type planted in the fall will remain in effect; or
(3) Destroy the remaining crop on such acreage:
(i) By destroying the remaining crop, you agree to accept an
appraised amount of production determined in accordance with section
13(d)(1) of the Dry Pea Crop Insurance Provisions to count against the
unit production guarantee. This amount will be considered production to
count in determining any final indemnity on the unit and will be used
to settle your claim as described in section 13.
(ii) You may use such acreage for any purpose, including planting
and separately insuring any other crop if such insurance is available.
(iii) If you elect to plant and elect to insure spring planted
acreage of the same dry pea type (you must elect whether or not you
want insurance on the spring planted acreage of the same dry pea type
at the time we release the fall planted acreage), you must pay
additional premium for the insurance. Such acreage will be insured in
accordance with the policy provisions that are applicable to acreage
that is initially planted in the spring to the same dry pea type, and
you must:
(A) Plant the spring planted acreage in a manner which results in a
clear and discernible break in the planting pattern at the boundary
between it and any remaining acreage of the fall planted dry pea
acreage; and
(B) Store or market the production in a manner which permits us to
verify the amount of spring planted production separately from any fall
planted production. In the event you are unable to provide records of
production that are acceptable to us, the spring planted acreage will
be considered to be a part of the original fall planted unit.
* * * * *
Signed in Washington, DC, on January 7, 2008.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E8-321 Filed 1-17-08; 8:45 am]
BILLING CODE 3410-08-P