federal register - U.S. Government Printing Office

6108 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations(9) Multiplying the total production to becounted of each dry bean type if applicable,(see section 13(d)) by the respective priceelection;(10) Totaling the value of all contract seedbean production (see section 13(c));(11) Totaling the results in section 13(b)(9)and section 13(b)(10);(12) Subtracting the total in section13(b)(11) from the total in section 13(b)(8);and(13) Multiplying the result by your share.(c) The value of contract seed beanproduction to count for each type in the unitwill be determined as follows:(1) For production meeting the minimumquality requirements contained in the seedbean processor contract and for productionthat does not meet such requirements due touninsured causes:(i) Multiplying the actual value or baseprice per pound, whichever is greater, by theprice election percentage you selected; and(ii) Multiplying the result by the number ofpounds of such production.(2) For production not meeting theminimum quality requirements contained inthe seed bean processor contract due toinsurable causes:(i) Multiplying the actual value by theprice election percentage you selected; and(ii) Multiplying the result by the number ofpounds of such production.(d) The total bean production to count (inpounds) from all insurable acreage on theunit will include:(1) All appraised production as follows:(i) Not less than the production guaranteeper acre for acreage:(A) That is abandoned;(B) That is put to another use without ourconsent;(C) That is damaged solely by uninsuredcauses; or(D) For which you fail to provideproduction records that are acceptable to us;(ii) Production lost due to uninsuredcauses;(iii) Unharvested production (matureunharvested production of dry beans may beadjusted for quality deficiencies and excessmoisture in accordance with section 13(e));and(iv) Potential production on insuredacreage that you intend to put to another useor abandon, if you and we agree on theappraised amount of production. Upon suchagreement, the insurance period for thatacreage will end when you put the acreageto another use or abandon the crop. Ifagreement on the appraised amount ofproduction is not reached:(A) If you do not elect to continue to carefor the crop, we may give you consent to putthe acreage to another use if you agree toleave intact, and provide sufficient care for,representative samples of the crop inlocations acceptable to us (The amount ofproduction to count for such acreage will bebased on the harvested production orappraisals from the samples at the timeharvest should have occurred. If you do notleave the required samples intact, or fail toprovide sufficient care for the samples, ourappraisal made prior to giving you consent toput the acreage to another use will be usedto determine the amount of production tocount); or(B) If you elect to continue to care for thecrop, the amount of production to count forthe acreage will be the harvested production,or our reappraisal if additional damageoccurs and the crop is not harvested; and(2) All harvested production from theinsurable acreage.(e) Mature dry bean production to countmay be adjusted for excess moisture andquality deficiencies. If moisture adjustment isapplicable, it will be made prior to anyadjustment for quality. Adjustment for excessmoisture and quality deficiencies will not beapplicable to contract seed beans.(1) Production will be reduced by 0.12percent for each 0.1 percentage point ofmoisture in excess of 18 percent. We mayobtain samples of the production todetermine the moisture content.(2) Production will be eligible for qualityadjustment if:(i) A pick is designated in the SpecialProvisions and the pick of the damagedproduction exceeds this designation; or(ii) A pick is not designated in the SpecialProvisions and deficiencies in quality, inaccordance with the United States Standardsfor Beans, result in dry beans not meeting thegrade requirements for U.S. No. 2 (gradesU.S. No. 3 or worse) because the beans aredamaged or badly damaged; or(iii) Substances or conditions are presentthat are identified by the Food and DrugAdministration or other public healthorganizations of the United States as beinginjurious to human or animal health.(3) Quality will be a factor in determiningyour loss only if:(i) The deficiencies, substances, orconditions resulted from a cause of lossagainst which insurance is provided underthese crop provisions and which occurswithin the insurance period;(ii) The deficiencies, substances, orconditions result in a net price for thedamaged production that is less than thelocal market price;(iii) All determinations of thesedeficiencies, substances, or conditions aremade using samples of the productionobtained by us or by a disinterested thirdparty approved by us; and(iv) The samples are analyzed by a graderlicensed to grade dry beans under theauthority of the United States AgriculturalMarketing Act or the United StatesWarehouse Act with regard to deficiencies inquality, or by a laboratory approved by uswith regard to substances or conditionsinjurious to human or animal health. (Testweight for quality adjustment purposes maybe determined by our loss adjuster.)(4) Dry bean production that is eligible forquality adjustment, as specified in sections13(e) (2) and (3), will be reduced:(i) If a conversion factor is designated bythe Special Provisions, by multiplying thenumber of pounds of eligible production bythe conversion factor designated in theSpecial Provisions for the applicable grade orpick; or(ii) If a conversion factor is not designatedby the Special Provisions as follows:(A) The market price of the qualifyingdamaged production and the local marketprice will be determined on the earlier of thedate such quality adjusted production is soldor the date of final inspection for the unit.If a local market price is not available for theinsured crop year, the current years’maximum price election available for theapplicable type will be used. The price forthe qualifying damaged production will bethe market price for the local area to theextent feasible. We may obtain prices fromany buyer of our choice. If we obtain pricesfrom one or more buyers located outside yourlocal market area, we will reduce such pricesby the additional costs required to deliver thedry beans to those buyers. Discounts used toestablish the net price of the damagedproduction will be limited to those that areusual, customary, and reasonable. The priceof the damaged production will not bereduced for:(1) Moisture content;(2) Damage due to uninsured causes; or(3) Drying, handling, processing, includingtrading tare for grade to obtain a higher gradeand price, or any other costs associated withnormal harvesting, handling, and marketingof the dry beans; except, if the price of thedamaged production can be increased byconditioning, we may reduce the price of theproduction after it has been conditioned bythe cost of conditioning but not lower thanthe value of the production beforeconditioning;(B) The value per pound of the damagedor conditioned production will be divided bythe local market price to determine thequality adjustment factor; and(C) The number of pounds remaining afterany reduction due to excessive moisture (themoisture-adjusted gross pounds (ifappropriate)) of the damaged or conditionedproduction will then be multiplied by thequality adjustment factor to determine thenet production to count.(f) Any production harvested from plantsgrowing in the insured crop may be countedas production of the insured crop on a weightbasis.14. Late Planting and Prevented Planting(a) In lieu of provisions contained in theBasic Provisions (§ 457.8), regarding acreageinitially planted after the final planting dateand the applicability of a Late PlantingAgreement Option, insurance will beprovided for acreage planted to the insuredcrop during the late planting period (seesection 14(c)), and acreage you wereprevented from planting (see section 14(d)).These coverages provide reduced productionguarantees. The premium amount for lateplanted acreage and eligible preventedplanting acreage will be the same as that fortimely planted. If the amount of premiumyou are required to pay (gross premium lessour subsidy) for late planted acreage orprevented planting acreage exceeds theliability on such acreage, coverage for thoseacres will not be provided, no premium willbe due, and no indemnity will be paid forsuch acreage.(b) You must provide written notice to usnot later than the acreage reporting date ifyou were prevented from planting.(c) Late Planting(1) For bean acreage planted during the lateplanting period, the production guarantee or