federal register - U.S. Government Printing Office

6106 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulationsin section 1 of the Basic Provisions (§ 457.8),practical to replant is defined as ourdetermination, after loss or damage to theinsured crop, based on factors, including butnot limited to moisture availability,condition of the field, time to crop maturity,and marketing window, that replanting theinsured crop will allow the crop to attainmaturity prior to the calendar date for theend of the insurance period. It will not beconsidered practical to replant after the endof the late planting period unless replantingis generally occurring in the area. Forcontract seed beans, it will not be consideredpractical to replant unless production fromthe replanted acreage can be delivered underthe terms of the seed bean processor contractor the seed company agrees to accept suchproduction.Prevented planting—Inability to plant theinsured crop with proper equipment by thefinal planting date designated in the SpecialProvisions for the insured crop in the countyor the end of the late planting period. Youmust have been unable to plant the insuredcrop due to an insured cause of loss that hasprevented the majority of producers in thesurrounding area from planting the samecrop.Production guarantee (per acre)—Thenumber of pounds determined bymultiplying the approved yield per acre bythe coverage level percentage you elect, andmultiplying the result by any applicableadjustment factor specified in the ActuarialTable.Replanting—Performing the culturalpractices necessary to prepare the land toreplace the bean seed and then replacing thebean seed in the insured acreage with theexpectation of growing a successful crop.Seed bean processor contract—A writtenagreement between the contract seed beanproducer and the seed company, containingat a minimum:(a) The contract seed bean producer’spromise to plant and grow one or morespecific varieties of contract seed beans, anddeliver the production from those varieties tothe seed company;(b) The seed company’s promise topurchase all the production stated in thecontract; and(c) A base price, or a method to determinesuch price based on published independentinformation, that will be paid to the contractseed bean producer for the production statedin the contract.Seed company—Any business enterpriseregularly engaged in the processing of seedbeans, that possesses all licenses and permitsfor marketing seed beans required by theState in which it operates, and that possessesor has contracted for facilities, with enoughdrying, screening and bagging or packagingequipment to accept and process the seedbeans within a reasonable amount of timeafter harvest.Swathing or knifing—Severance of thebean plant from the ground, including thepods and beans, and placing them intowindrows.Timely planted—Planted on or before thefinal planting date designated in the SpecialProvisions for the insured crop in the county.Type—A category of beans identified as atype in the Special Provisions.Written agreement—A written documentthat alters designated terms of this policy inaccordance with section 15.2. Unit Division(a) In addition to section 1 (Definitions) ofthe Basic Provisions (§ 457.8), (basic unit) allacreage of contract seed beans qualifies as aseparate basic unit. For production basedseed bean processor contracts, the unit willconsist of all the acreage needed to producethe amount of production under contract,based on the actual production history of theacreage. For acreage based seed beanprocessor contracts, the unit will consist ofall acreage specified in the contract.(b) Unless limited by the SpecialProvisions, a unit as defined in section 1(Definitions) of the Basic Provisions (§ 457.8),(basic unit) and section 2(a) of these cropprovisions, may be divided into optionalunits if, for each optional unit, you meet allthe conditions of this section or if a writtenagreement to such division exists.(c) Basic units may not be divided intooptional units on any basis including, but notlimited to, production practice, variety, andplanting period, other than as described inthis section.(d) Contract seed beans may only qualifyfor optional units as specified in section 2(g)of these Crop Provisions if the seed beanprocessor contract specifies the number ofacres under contract. Contract seed beansproduced under a seed bean processorcontract that specifies only an amount ofproduction are not eligible for optional units.(e) If you do not comply fully with theseprovisions, we will combine all optionalunits that are not in compliance with theseprovisions into the basic unit from whichthey were formed. We will combine theoptional units at any time we discover thatyou have failed to comply with theseprovisions. If failure to comply with theseprovisions is determined to be inadvertent,and the optional units are combined into abasic unit, that portion of the additionalpremium paid for the optional units thathave been combined will be refunded to you.(f) All optional units you selected for thecrop year must be identified on the acreagereport for that crop year.(g) The following requirements must bemet for each optional unit:(1) You must have records, which can beindependently verified, of planted acreageand production for each optional unit for atleast the last crop year used to determineyour production guarantee;(2) You must plant the crop in a mannerthat results in a clear and discernable breakin the planting pattern at the boundaries ofeach optional unit;(3) You must have records of marketedproduction or measurement of storedproduction from each optional unitmaintained in such a manner that permits usto verify the production from each optionalunit, or the production from each unit mustbe kept separate until loss adjustment iscompleted by us; and(4) Subject to section 2(d) each optionalunit must meet one or more of the followingcriteria, as applicable:(i) Optional Units by bean type: A separateoptional unit may be established for eachbean type shown in the Special Provisions.(ii) Optional Units by Section, SectionEquivalent, or FSA Farm Serial Number: Inaddition to, or instead of, establishingoptional units by type, optional units may beestablished if each optional unit is located ina separate legally identified section. In theabsence of sections, we may consider parcelsof land legally identified by other methods ofmeasure including, but not limited toSpanish grants, railroad surveys, leagues,labors, or Virginia Military Lands, as theequivalent of sections for unit purposes. Inareas that have not been surveyed using thesystems identified above, or another systemapproved by us, or in areas where suchsystems exist but boundaries are not readilydiscernable, each optional unit must belocated in a separate farm identified by asingle FSA Farm Serial Number.(iii) Optional Units on Acreage IncludingBoth Irrigated and Non-irrigated Practices: Inaddition to, or instead of, establishingoptional units by type, section, sectionequivalent, or FSA Farm Serial Number,optional units may be based on irrigatedacreage or non-irrigated acreage if both arelocated in the same section, sectionequivalent, or FSA Farm Serial Number. Toqualify as separate irrigated and non-irrigatedoptional units, the non-irrigated acreage maynot continue into the irrigated acreage in thesame rows or planting pattern. The irrigatedacreage may not extend beyond the point atwhich your irrigation system can deliver thequantity of water needed to produce the yieldon which the guarantee is based, except thecorners of a field in which a center-pivotirrigation system is used will be consideredas irrigated acreage if separate acceptablerecords of production from the corners arenot provided. If the corners of a field inwhich a center-pivot irrigation system is useddo not qualify as a separate non-irrigatedoptional unit, they will be a part of the unitcontaining the irrigated acreage. However,non-irrigated acreage that is not a part of afield in which a center-pivot irrigationsystem is used may qualify as a separateoptional unit provided that all requirementsof this section are met.3. Insurance Guarantees, Coverage Levels,and Prices for Determining Indemnities(a) In addition to the requirements ofsection 3(b) (Insurance Guarantees, CoverageLevels, and Prices for DeterminingIndemnities) of the Basic Provisions (§ 457.8),you may select only one price election for allthe dry beans in the county insured underthis policy unless the Special Provisionsprovide different price elections by type, inwhich case you may select one price electionfor each dry bean type designated in theSpecial Provisions. The price elections youchoose for each type are not required to havethe same percentage relationship to themaximum price offered by us for each type.For example, if you choose 100 percent of themaximum price election for one type, youmay also choose 75 percent of the maximumprice election for another type.(b) For contract seed beans only, the dollaramount of insurance is obtained bymultiplying the production guarantee per