[Code of Federal Regulations] [Title 7, Volume 6] [Revised as of January 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR457.106] [Page 125-128] TITLE 7--AGRICULTURE CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF AGRICULTURE PART 457--COMMON CROP INSURANCE REGULATIONS--Table of Contents Sec. 457.106 Texas citrus tree crop insurance provisions. The Texas Citrus Tree Crop Insurance Provisions for the 1999 and succeeding crop years are as follows: United States Department of Agriculture Federal Crop Insurance Corporation Reinsured policies (Appropriate title for insurance provider) Both FCIC and Reinsured Policies Texas Citrus Tree Crop Provisions If a conflict exists among the policy provisions, the order of priority is as follows: (1) The Catastrophic Risk Protection Endorsement, if applicable; (2) the Special Provisions; (3) these Crop Provisions; and (4) the Basic Provisions with (1) controlling (2), etc. 1. Definitions Bud union--The location on the tree trunk where a bud from one tree variety is grafted onto root stock of another variety. Crop--Specific groups of citrus fruit trees as listed in the Special Provisions. Crop year--For the 1998 crop year only, a period of time that begins on June 1, 1997, [[Page 126]] and ends on November 20, 1998. For all other crop years, a period of time that begins on November 21 of the calendar year prior to the year the trees normally bloom, and ends on November 20 of the following calendar year. The crop year is designated by the year in which the insurance period ends. Dehorning--Cutting all scaffold limbs to a length not longer than \1/4\ the height of the tree before such cutting. Destroyed--Trees damaged to the extent that removal is necessary. Excess precipitation--An amount of precipitation sufficient to directly damage the tree. Excess wind--A natural movement of air that has sustained speeds in excess of 58 miles per hour recorded at the U.S. Weather Service reporting station nearest to the crop at the time of crop damage. Freeze--The formation of ice in the cells of the trees caused by low air temperatures. Good farming practices--The cultural practices generally in use in the county for the trees to have normal growth and vigor and recognized by the Cooperative State Research, Education, and Extension Service as compatible with agronomic and weather conditions in the county. Interplanted--Acreage on which two or more crops are planted in any form of alternating or mixed pattern. Irrigated practice--A method by which the normal growth and vigor of the insured trees is maintained by artificially applying adequate quantities of water during the growing season using the appropriate irrigation systems at the proper times. Root stock--A root or a piece of a root of one tree variety onto which a bud from another tree variety is grafted. Scaffold limbs--Major limbs attached directly to the trunk. Set out--Transplanting the tree into the grove. 2. Unit Division (a) A basic unit, as defined in section 1 of the Basic Provisions, will be divided into additional basic units by each citrus crop designated in the Special Provisions. (b) Sections 34(a) (1), (3), and (4) of the Basic Provisions are not applicable. (c) Provisions in the Basic Provisions that allow optional units by irrigated and non-irrigated practices are not applicable. (d)Instead of establishing optional units by section, section equivalent, or FSA farm serial number optional units may be established if each optional unit is located on non-contiguous land. 3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities (a) In lieu of the requirement of section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Basic Provisions (Sec. 457.8), that prohibits you from selecting more than one coverage level for each insured crop, you may select a different coverage level for each crop designated in the Special Provisions that you elect to insure. (b) In addition to the requirements of section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Basic Provisions (Sec. 457.8): (1) If you insure trees within a crop which are either of a different variety or are planted at a different population density, the per acre amount of insurance for each variety or population density for the crop must bear the same relationship to the maximum amount of insurance available for each variety and population density of the crop as specified in the Actuarial documents. For example, if you elect 100 percent of the maximum amount of insurance for a variety within a population density for the crop, you must select 100 percent of the maximum amount of insurance for that variety for all population densities for the crop. The amount of insurance for each variety and population density must be multiplied by any applicable factor contained in section 3(b)(2). (2) The amount of insurance per acre will be the product obtained by multiplying the reference maximum dollar amount of insurance that is shown in the actuarial documents for the applicable population density by the percentage for the level of coverage you select and by: (i) Thirty-three percent (0.33) for the year of set out, the year following dehorning, or the year following grafting of a set out tree. (Insurance will be limited to this amount until trees that are set out are one year of age or older on the first day of the crop year); (ii) Sixty percent (0.60) for the first growing season after being set out, the second year following dehorning, or the second year following grafting of a set out tree; (iii) Eighty percent (0.80) for the second growing season after being set out, the third year following dehorning, or the third year following grafting of a set out tree; or (iv) Ninety percent (0.90) for the third growing season after being set out, the fourth year following dehorning, or the fourth year following grafting of a set out tree. (3) The amount of insurance per acre for each population density, or factor as appropriate, will be multiplied by the applicable number of insured acres. These results will then be added together to determine the amount of insurance for the unit. (4) The amount of insurance will be reduced proportionately for any unit on which the stand is less than 90 percent, based on the original planting pattern. For example, if the amount of insurance you selected is [[Page 127]] $2,000 and the remaining stand is 85 percent of the original stand, the amount of insurance on which the premium and any indemnity will be based is $1,700 ($2,000 multiplied by 0.85). (5) If any insurable acreage of trees is set out after the first day of the crop year, and you elect to insure such acreage during that crop year, you must report the acreage, practice, crop, number of trees, date set out is completed, and your share to us within 72 hours after set out is completed for the unit. (6) Production reporting requirements contained in section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Basic Provisions (Sec. 457.8), are not applicable. (7) You must report, by the sales closing date contained in the Special Provisions, by type if applicable: (i) Any damage, removal of trees, change in practices, or any other circumstance that may reduce the amount of insurance, and the number of affected acres; (ii) The number of trees on insurable and uninsurable acreage; (iii) The date of original set out and the planting pattern; (iv) The date of replacement or dehorning, if more than 10 percent of the trees on any unit have been replaced or dehorned in the previous 5 years; and (v) For the first year of insurance for acreage interplanted with another perennial crop, and anytime the planting pattern of such acreage is changed: (A) The age of the interplanted crop, and type if applicable; (B) The planting pattern; and (C) Any other information that we request in order to establish your amount of insurance. We will reduce the amount of insurance as necessary, based on our estimate of the effect of interplanting a perennial crop; removal of trees; damage; change in practices and any other circumstance on the potential of the insured crop. If you fail to notify us of any circumstance that may reduce the potential for the insured crop, we will reduce your amount of insurance as necessary at any time we become aware of the circumstance. 4. Contract Changes In accordance with section 4 (Contract Changes) of the Basic Provisions (Sec. 457.8), the contract change date is August 31 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 November 20. 6. Annual Premium In addition to the provisions of section 5 (Annual Premium) of the Basic Provisions (Sec. 457.8), for the 1998 crop year, the premium amount otherwise payable for the 1998 crop year will be increased by 46 percent as a result of the additional six months of coverage for that crop year. 7. Insured Crop (a) In accordance with section 8 (Insured Crop) of the Basic Provisions (Sec. 457.8), the crop insured will be all of each citrus tree crop designated in the Special Provisions in the county for which a premium rate is provided by the actuarial documents and that you elect to insure: (1) In which you have an ownership share; (2) That is adapted to the area; (3) That is set out for the purpose of growing fruit to be harvested for the commercial production of fresh fruit or for juice; (4) That is irrigated; and (5) That have the potential to produce at least 70 percent of the county average yield for the crop and age, unless a written agreement is approved to insure the trees with lesser potential. (b) In addition to section 8 (Insured Crop) of the Basic Provisions (Sec. 457.8), we do not insure any citrus trees: (1) During the crop year the application for insurance is filed, unless we inspect the acreage and consider it acceptable; or (2) That have been grafted onto existing root stock or nursery stock within the one-year period prior to the date insurance attaches. (c) We may exclude from insurance or limit the amount of insurance on any acreage that was not insured the previous year. 8. Insurable Acreage In lieu of the provisions in section 9 (Insurable Acreage) of the Basic Provisions (Sec. 457.8), that prohibit insurance attaching to a crop planted with another crop, citrus trees interplanted with another perennial crop are insurable, unless we inspect the acreage and determine that it does not meet the requirements contained in your policy. 9. Insurance Period In lieu of the provisions of section 11 (Insurance Period) of the Basic Provisions (Sec. 457.8): (a) The insurance period is as follows: (1) For the 1998 crop year only, coverage will begin on June 1, 1997, and will end on November 20, 1998. (2) For all subsequent crop years, coverage begins on November 21 of the calendar year prior to the year the insured crop normally [[Page 128]] blooms, except that for the year of application, if your application is received after November 11 but prior to November 21, insurance will attach on the 10th day after your properly completed application is received in our local office, unless we inspect the acreage during the 10 day period and determine that it does not meet the requirements for insurability contained in your policy. You must provide any information that we require for the crop or to determine the condition of the grove. (3) The calendar date for the end of the insurance period for each crop year is November 20. (b) If you acquire an insurable share in any insurable acreage after coverage begins but on or before the acreage reporting date for the crop year, and after an inspection we consider the acreage acceptable, insurance will be considered to have attached to such acreage on the calendar date for the beginning of the insurance period. (c) If you relinquish your insurable share on any insurable acreage of citrus trees on or before the acreage reporting date for the crop year, insurance will not be considered to have attached to and no premium or indemnity will be due for such acreage for that crop year unless: (1) A transfer of coverage and right to an indemnity, or a similar form approved by us, is completed by all affected parties; (2) We are notified by you or the transferee in writing of such transfer on or before the acreage reporting date; and (3) The transferee is eligible for crop insurance. 10. Causes of Loss In accordance with the provisions of section 12 (Causes of Loss) of the Basic Provisions (Sec. 457.8), insurance is provided only against the following causes of loss that occur within the insurance period: (a) Excess precipitation; (b) Excess wind; (c) Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the grove; (d) Freeze; (e) Hail; (f) Tornado; or (g) Failure of the irrigation water supply if caused by an insured peril or drought that occurs during the insurance period. 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), in case of damage or probable loss, if you intend to claim an indemnity on any unit, you must allow us to inspect all insured acreage before pruning, dehorning, or removal of any damaged trees. 12. Settlement of Claim (a) In the event of damage covered by this policy, we will settle your claim on a unit basis by: (1) Determining the actual percent of damage for the unit in accordance with sections 12 (b), (c), and (d); (2) Subtracting your deductible from the percent of damage for the unit (this result must be greater than zero to receive an indemnity); (3) Dividing the result of section 12(a)(2) by your coverage level percentage; (4) Multiplying the result of section 12(a)(3) by the amount of insurance per acre determined in accordance with section 3(b)(2); (5) Multiplying the result of section 12(a)(4) by the number of insured acres; and (6) Multiplying the result of section 12(a)(5) by your share. (b) The percent of damage for any tree will be determined as follows: (1) For damage occurring during the year of set out (trees that have not been set out for at least one year at the time insurance attaches): (i) One-hundred percent (100%) whenever there is no live wood above the bud union; (ii) Ninety percent (90%) whenever there is less than 12 inches of live wood above the bud union; or (iii) The tree will be considered undamaged whenever there is more than 12 inches of live wood above the bud union; or (2) For damage occurring in any year following the year of set out: (i) The percentage of damage will be determined by dividing the number of scaffold limbs damaged in an area from the trunk to a length equal to one-fourth (\1/4\) the height of the tree, by the total number of scaffold limbs before damage occurred. Whenever this percentage exceeds 80 percent, the tree will be considered as 100 percent damaged. (ii) The percent of damage for the unit will be determined by computing the average of the determinations made for the individual trees. If this percent of damage exceeds 80 percent, the unit will be considered 100 percent damaged. (c) The percent of damage on the unit will be reduced by the percentage of damage due to uninsured causes. 13. Late and Prevented Planting The late and prevented planting provisions of the Basic Provisions are not applicable. [62 FR 4117, Jan. 29, 1997, as amended at 62 FR 65166, Dec. 10, 1997; 63 FR 55779, Oct. 19, 1998] [[Page 129]]