[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: 7CFR457.121] [Page 173-176] TITLE 7--AGRICULTURE CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF AGRICULTURE PART 457--COMMON CROP INSURANCE REGULATIONS--Table of Contents Sec. 457.121 Arizona-California citrus crop insurance provisions. The Arizona-California citrus crop insurance provisions for the 2000 and succeeding crop years are as follows: United States Department of Agriculture Federal Crop Insurance Corporation Arizona-California Citrus 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 Carton. The standard container for marketing the fresh packed citrus fruit crop as shown below. In the absence of marketing records on a carton basis, production will be converted to cartons on the basis of the following average net pounds of packed fruit in a standard packed carton. ------------------------------------------------------------------------ Container size Fruit crop Pounds ------------------------------------------------------------------------ Container 58................ Navel oranges, Valencia 38 oranges & Sweet oranges. Container 58................ Lemons................. 40 Container 59................ Grapefruit............. 32 Container 63................ Tangerines (including 25 Tangelos) & Mandarin oranges. ------------------------------------------------------------------------ Crop. Citrus fruit as listed in the Special Provisions. Crop year. The period beginning with the date insurance attaches to the citrus crop and extending through normal harvest time. It is designated by the calendar year following the year in which the bloom is normally set. Dehorning. Cutting of any scaffold limb to a length that is not greater than one-fourth (\1/4\) the height of the tree before cutting. Direct marketing. Sale of the insured crop directly to consumers without the intervention of an intermediary such as a wholesaler, retailer, packer, processor, shipper or buyer. Examples of direct marketing include selling through an on-farm or roadside stand, farmer's market, and permitting the general public to enter the field for the purpose of picking all or a portion of the crop. Harvest. The severance of mature citrus from the tree by pulling, picking, or any other means, or by collecting marketable fruit from the ground. Interplanted. Acreage on which two or more crops are planted in any form of alternating or mixed pattern. Scaffold limb. A major limb attached directly to the trunk. Set out. Transplanting a tree into the grove. Variety. Subclass of crop as listed in the Special Provisions. 2. Unit Division (a) A basic unit, as defined in section 1 of the Basic Provisions, will also be divided into additional basic units by each citrus crop designated in the Special Provisions. (b) Provisions in the Basic Provisions that allow optional units by section, section equivalent, or FSA farm serial number and by irrigated and non-irrigated practices are not applicable. Optional units may be established only if each optional unit is located on non-contiguous land, unless otherwise allowed by written agreement. 3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities (a) In addition to the requirements of section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Basic Provisions (Sec. 457.8), you may select only one price election and coverage level for each citrus fruit crop designated in the Special Provisions that you elect to insure. The price election you choose for each crop need not bear the same percentage relationship to the maximum price offered by us for each crop. For example, if you choose one hundred percent (100%) of the maximum price election for sweet oranges, you may choose seventy-five percent (75%) of the maximum price election for grapefruit. However, if separate price elections are available by variety within each crop, the price elections you choose for each variety must have the same percentage relationship to the maximum price offered by us for each variety within the crop. (b) In lieu of reporting your citrus production of marketable fresh fruit for the previous crop year, as required by section 3 of the Basic Provisions (Sec. 457.8), there is a lag period of one year. Each crop year, you must report your production from two crop years ago, e.g., on the 1998 crop year production report, you will provide your 1996 crop year production. (c) In addition, you must report, by the production reporting date designated in section 3 (Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities) of the Basic Provisions (Sec. 457.8), by type, if applicable: (1) The number of trees damaged, dehorned or removed; any change in practices or any other circumstance that may reduce the expected yield below the yield upon which the insurance guarantee is based; and the number of affected acres; [[Page 174]] (2) The number of bearing trees on insurable and uninsurable acreage; (3) The age of the trees and the planting pattern; and (4) For the first year of insurance for acreage interplanted with another perennial crop, and anytime the planting pattern of such acreage is changed: (i) The age of the interplanted crop, and type, if applicable; (ii) The planting pattern; and (iii) Any other information that we request in order to establish your approved yield. We will reduce the yield used to establish your production guarantee as necessary, based on our estimate of the effect of the following: interplanted perennial crop; damage; dehorning; removal of trees; change in practices and any other circumstance on the yield potential of the insured crop. If you fail to notify us of any circumstance that may reduce your yields from previous levels, we will reduce your production guarantee 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. Insured Crop In accordance with section 8 (Insured Crop) of the Basic Provisions (Sec. 457.8), the crop insured will be all the acreage in the county of each citrus crop designated in the Special Provisions that you elect to insure and for which a premium rate is provided by the actuarial documents: (a) In which you have a share; (b) That is adapted to the area; (c) That is irrigated; (d) That is grown in a grove that, if inspected, is considered acceptable by us; (e) That is not sold by direct marketing, unless allowed by the Special Provisions or by written agreement; and (f) That has reached at least the sixth growing season after being set out. However, we may agree to insure acreage that has not reached this age if we inspect and approve a written agreement to insure such acreage. 7. 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 interplanted with another perennial crop is insurable unless we inspect the acreage and determine it does not meet the requirements contained in your policy. 8. Insurance Period (a) In accordance with the provisions of section 11 (Insurance Period) of the Basic Provisions (Sec. 457.8): (1) Coverage begins on November 21 of each crop year, 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 insurability requirements. You must provide any information that we require for the crop or to determine the condition of the grove. (2) The calendar date for the end of the insurance period for each crop year is: (i) August 31 for Navel oranges and Southern California lemons; (ii) November 20 for Valencia oranges; and (iii) July 31 for all other citrus crops. (b) In addition to the provisions of section 11 (Insurance Period) of the Basic Provisions (Sec. 457.8): (1) 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. (2) If you relinquish your insurable share on any insurable acreage of citrus on or before the acreage reporting date for the crop year, insurance will not be considered to have attached to and no premium will be due, and no indemnity paid, for such acreage for that crop year unless: (i) A transfer of coverage and right to an indemnity, or a similar form approved by us, is completed by all affected parties; (ii) We are notified by you or the transferee in writing of such transfer on or before the acreage reporting date; and (iii) The transferee is eligible for crop insurance. 9. Causes of Loss (a) 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 during the insurance period: (1) Adverse weather conditions; (2) Fire, unless weeds and other forms of undergrowth have not been controlled or pruning debris has not been removed from the grove; (3) Wildlife; (4) Earthquake; [[Page 175]] (5) Volcanic eruption; or (6) Failure of irrigation water supply, if caused by an insured peril 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 against damage or loss of production due to: (1) Disease or insect infestation, unless adverse weather conditions: (i) Prevents the proper application of control measures or causes properly applied control measures to be ineffective; or (ii) Causes disease or insect infestation for which no effective control mechanism is available; (2) Inability to market the citrus for any reason other than actual physical damage from an insurable cause specified in this section. For example, we will not pay you an indemnity if you are unable to market due to quarantine, boycott, or refusal of any person to accept production. 10. 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), the following will apply: (a) If the Special Provisions permit or a written agreement authorizing direct marketing exists, you must notify us at least 15 days before any production from any unit will be sold by direct marketing. We will conduct an appraisal that will be used to determine your production to count for production that is sold by direct marketing. If damage occurs after this appraisal, we will conduct an additional appraisal. These appraisals, and any acceptable records provided by you, will be used to determine your production to count. Failure to give timely notice that production will be sold by direct marketing will result in an appraised amount of production to count of not less than the production guarantee per acre if such failure results in our inability to make the required appraisal. (b) If you intend to claim an indemnity on any unit, you must notify us before beginning to harvest any damaged production so that we may have an opportunity to inspect it. You must not sell or dispose of the damaged crop until after we have given you written consent to do so. If you fail to meet the requirements of this section, all such production will be considered undamaged and included as production to count. 11. Settlement of Claim (a) We will determine your loss on a unit basis. In the event you are unable to provide acceptable production records: (1) For any optional unit, we will combine all optional units for which such production records were not provided; or (2) For any basic unit, we will allocate any commingled production to such units in proportion to our liability on the harvested acreage for each unit. (b) In the event of loss or damage covered by this policy, we will settle your claim by: (1) Multiplying the insured acreage for each crop, or variety if applicable, by its respective production guarantee; (2) Multiplying the results of section 11(b)(1) by the respective price election for each crop, or variety, if applicable; (3) Totaling the results of section 11(b)(2); (4) Multiplying the total production to be counted of each variety, if applicable (see section 11(c)), by the respective price election; (5) Totaling the results of section 11(b)(4); (6) Subtracting this result of section 11(b)(5) from the result of section 11(b)(3); and (7) Multiplying the result of section 11(b)(6) by your share; (c) The total production to count (in cartons) from all insurable acreage on the unit will include: (1) All appraised production as follows: (i) Not less than the production guarantee per acre for acreage: (A) That is abandoned; (B) For which you fail to provide acceptable production records; (C) That is damaged solely by uninsured causes; or (D) From which production is sold by direct marketing, if direct marketing is specifically permitted by the Special Provisions or a written agreement, and you fail to meet the requirements contained in section 10; (ii) Production lost due to uninsured causes; (iii) Unharvested production determined to be marketable as fresh packed fruit; and (iv) Potential production on insured acreage that you intend to abandon or no longer care for, if you and we agree on the appraised amount of production. Upon such agreement, the insurance period for that acreage will end. If you do not agree with our appraisal, we may defer the claim only if you agree to continue to care for the crop. We will then make another appraisal when you notify us of further damage or that harvest is general in the area unless you harvested the crop, in which case we will use the harvested production. If you do not continue to care for the crop, our appraisal made prior to deferring the claim will be used to determine the production to count; (2) All harvested production marketed as fresh packed fruit from the insurable acreage; and (3) All citrus that was disposed of or sold without an inspection or written consent. (d) Any production will be considered marketed or marketable as fresh packed fruit unless, due solely to insured causes, such [[Page 176]] production was not marketed or marketable as fresh packed fruit. (e) Citrus that cannot be marketed as fresh packed fruit due to insurable causes will not be considered production to count. (f) If we determine that frost protection equipment was not properly utilized or not properly reported, the indemnity for the unit will be reduced by the percentage of premium reduction allowed for frost protection equipment. You must, at our request, provide us records showing the start-stop times by date for each period the frost protection equipment was used. 12. Late and Prevented Planting The late and prevented planting provisions of the Basic Provisions are not applicable. [61 FR 44147, Aug. 28, 1996, as amended at 62 FR 65170, Dec. 10, 1997]