[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: 7CFR457.142]

[Page 241-245]
 
                          TITLE 7--AGRICULTURE
 
     CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF 
                               AGRICULTURE
 
PART 457--COMMON CROP INSURANCE REGULATIONS--Table of Contents
 
Sec. 457.142  Northern potato crop insurance provisions.

    The Northern Potato Crop Insurance Provisions for the 1998 and 
succeeding crop years are as follows:
    FCIC Policies

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                           Reinsured Policies

(Appropriate title for insurance provider)
    Both FCIC and reinsured policies:

                     Northern Potato Crop Provisions

    These provisions will be applicable in: Alaska; Humboldt, Modoc, and 
Siskiyou Counties, California; Colorado; Connecticut; Idaho; Indiana; 
Iowa; Maine; Massachusetts; Michigan; Minnesota; Montana; Nebraska; 
Nevada; New York; North Dakota; Ohio; Oregon; Pennsylvania; Rhode 
Island; South Dakota; Utah; Washington; Wisconsin; and Wyoming.
    If a conflict exists among the policy provisions, the order of 
priority is as follows: (1) The Catastrophic Risk Protection 
Endorsement, as applicable; (2) the Special Provisions; (3) these Crop 
Provisions; and (4) the Basic Provisions, with (1) controlling (2), etc.

                             1. Definitions

    Buyer. A business entity in the business of buying or processing 
potatoes, that possesses all the licenses and permits required by the 
state in which it operates, and has the facilities to accept the 
potatoes purchased.
    Certified seed. Potatoes for planting a potato crop in a subsequent 
crop year that have been found to meet the standards of the public 
agency that is responsible for the seed

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certification process within the state in which they were grown.
    Discard. Disposal of production by you, or a person acting for you, 
without receiving any value for it.
    Disposed. Any disposition of the crop including but not limited to 
sale or discard.
    Grade inspection. An inspection in which samples of production are 
obtained by us, or a party approved by us, prior to the sale, storage, 
or disposal of any lot of potatoes, or any portion of a lot and the 
potatoes are evaluated and quality (grade) determinations are made by 
us, a laboratory approved by us, or a potato grader licensed or 
certified by the applicable State or the United States Department of 
Agriculture, in accordance with the United States Standards for Grades 
of Potatoes.
    Harvest. Lifting potatoes from within the soil to the soil surface.
    Hundredweight. One hundred (100) pounds avoirdupois.
    Local market. The area in which the insured potatoes are normally 
sold.
    Lot. A quantity of production that can be separated from other 
quantities of production by grade characteristics, load, location or 
other distinctive features.
    Processor contract. A written agreement between the producer and a 
processor, containing at a minimum:
    (a) The producer's commitment to plant and grow potatoes, and to 
deliver the potato production to the processor;
    (b) The processor's commitment to purchase the production stated in 
the contract; and
    (c) A price that will be paid to the producer for the production 
stated in the contract.
    Reduction percentage. A factor determined based on the weight of 
only freeze damaged production in a sample of potatoes in relationship 
to the total weight of the sample, and the provisions in section 
11(g)(1) of these crop provisions; and that is used to determine a 
quantity of potatoes that will not be included as production to count.
    Tuber rot. Any soft, mushy, or leaky condition of potato tissue 
(soft rot or wet breakdown as defined in the United States Standards for 
Grades of Potatoes), including, but not limited to, breakdown caused by 
Southern Bacterial Wilt, Ring Rot, or Late Blight.

  2. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election for all the potatoes 
in the county insured under this policy unless the Special Provisions 
provide different price elections by type. If the Special Provisions 
provide for different price elections by type, you may select one price 
election for each potato type designated in the Special Provisions. The 
price elections you choose for each type must have the same percentage 
relationship to the maximum price election offered by us for each type. 
For example, if you choose 100 percent of the maximum price election for 
one type, you must also choose 100 percent of the maximum price election 
for all other types.
    (b) If the production from any acreage of the insured crop is not 
harvested, the price used to determine your indemnity will be 80 percent 
of your price election.
    (c) Any acreage of potatoes damaged to the extent that similarly 
situated producers in the area would not normally further care for the 
potatoes will be deemed to have been destroyed even though you may 
continue to care for the potatoes. The price election for unharvested 
acreage will apply to such acreage.

                           3. Contract Changes

    In accordance with section 4 of the Basic Provisions, the contract 
change date is November 30 preceding the cancellation date.

                  4. Cancellation and Termination Dates

    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are March 15.

                            5. Annual Premium

    In lieu of the premium computation method contained in section 7 of 
the Basic Provisions, the annual premium amount (y) is computed by 
multiplying (a) the production guarantee by (b) the price election for 
harvested acreage, by (c) the premium rate, by (d) the insured acreage, 
by (e) your share at the time of planting, and by (f) any applicable 
premium adjustment factors contained in the actuarial documents 
(axbxcxdxexf=y).

                             6. Insured Crop

    In accordance with section 8 of the Basic Provisions, the crop 
insured will be all the potatoes in the county for which a premium rate 
is provided by the actuarial documents:
    (a) In which you have a share;
    (b) Planted with certified seed (unless otherwise permitted by the 
Special Provisions);
    (c) Planted for harvest as certified seed stock, or for human 
consumption, (unless specified otherwise in the Special Provisions);
    (d) That are not (unless allowed by the Special Provision or by 
written agreement):
    (1) Interplanted with another crop; or
    (2) Planted into an established grass or legume.

                          7. Insurable Acreage

    In addition to the provisions of section 9 of the Basic Provisions, 
we will not insure any acreage that:

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    (a) Does not meet the rotation requirements contained in the Special 
Provisions for the crop; or
    (b) Is damaged before the final planting date to the extent that 
similarly situated producers in the area would normally not further care 
for the crop, unless it is replanted or we agree that it is not 
practical to replant.

                           8. Insurance Period

    In accordance with the provisions of section 11 of the Basic 
Provisions, the calendar date for the end of the insurance period is the 
date immediately following planting as follows (exceptions, if any, for 
specific counties, varieties or types are contained in the Special 
Provisions):
    (a) October 1, in Alaska;
    (b) October 10 in Nebraska and Wyoming;
    (c) October 15 in Colorado; Indiana; Iowa; Michigan; Minnesota; 
Montana; Nevada; North Dakota; South Dakota; Utah; and Wisconsin;
    (d) October 20 in Maine; and
    (e) October 31 in Humboldt, Modoc, and Siskiyou Counties, 
California; Connecticut; Idaho; Massachusetts; New York; Ohio; Oregon; 
Pennsylvania; Rhode Island; and Washington.

                            9. Causes of Loss

    (a) In accordance with the provisions of section 12 of the Basic 
Provisions, insurance is provided only against the following causes of 
loss that occur within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects, but only if sufficient and proper pest control measures 
are used;
    (4) Plant disease, but only if sufficient and proper disease control 
measures are used;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply, if caused by an insured 
peril that occurs during the insurance period (see section 9(a)(1) 
through (7)).
    (b) In addition to the causes of loss not insured against as 
contained in section 12 of the Basic Provisions, we will not insure 
against any loss of production due to:
    (1) Damage that occurs or becomes evident after the end of the 
insurance period, including, but not limited to, damage that occurs or 
becomes evident in storage; or
    (2) Causes, such as freeze after certain dates, as limited by the 
Special Provisions.

                10. Duties in the Event of Damage or Loss

    (a) In accordance with the requirements of section 14 of the Basic 
Provisions, you must leave representative samples at least 10 feet wide 
and extending the entire length of each field in the unit if you are 
going to destroy any acreage of the insured crop that will not be 
harvested.
    (b) We must be given the opportunity to perform a grade inspection 
on the production from any unit for which you have given notice of 
damage.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional units, we will combine all optional units for 
which acceptable production records were not provided; and
    (2) For any basic units, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for the units.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the insured acreage by its respective production 
guarantee (If there is unharvested acreage in the unit, the harvested 
and unharvested acreage will be determined separately);
    (2) Multiplying each result in section 11(b)(1) by the respective 
price election (The price election may be limited as specified in 
section 3.);
    (3) Totaling the results of section 11(b)(2);
    (4) Multiplying the total production to be counted of each type, if 
applicable (see section 11(d)), by the respective price election;
    (5) Totaling the results of section 11(b)(4);
    (6) Subtracting the results of section 11(b)(5) from the result in 
section 11(b)(3); and
    (7) Multiplying the result of section 11(b)(6) by your share.
    For example:
    You have a 100 percent share in 100 harvested acres of potatoes in 
the unit, with a guarantee of 150 hundredweight per acre and a price 
election of $4.00 per hundredweight. You are only able to harvest 10,000 
hundredweight. Your indemnity would be calculated as follows:
    (1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee;
    (2) 15,000 hundredweight x $4.00 price election = $60,000.00 value 
of guarantee;
    (4) 10,000 hundredweight x $4.00 price election = $40,000.00 value 
of production to count;
    (6) $60,000.00 - $40,000.00 = $20,000.00 loss; and
    (7) $20,000.00 x 100 percent = $20,000.00 indemnity payment.
    You also have a 100 percent share in 100 unharvested acres of 
potatoes in the same unit, with a guarantee of 150 hundredweight per 
acre and a price election of $3.20 per hundredweight. The price election 
for unharvested acreage is 80.0 percent of your elected price election 
($4.00 x 0.80 = $3.20.) This unharvested acreage was appraised at 35 
hundredweight per acre for a total of 3500

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hundredweight as production to count. Your total indemnity for the 
harvested and unharvested acreage would be calculated as follows:
    (1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee 
for the harvested acreage, and 100 acres x 150 hundredweight = 15,000 
hundredweight guarantee for the unharvested acreage;
    (2) 15,000 hundredweight guarantee x $4.00 price election = 
$60,000.00 value of guarantee for the unharvested acreage, and 15,000 
hundredweight guarantee x $3.20 price election = $48,000.00 value of 
guarantee for the unharvested acreage;
    (3) $60,000.00 + $48,000.00 = $108,000.00 total value of guarantee;
    (4) 10,000 hundredweight x $4.00 price election = $40,000.00 value 
of production to count for the harvested acreage, and 3500 hundredweight 
x $3.20 = $11,200.00 value of production to count for the unharvested 
acreage;
    (5) $40,000.00 + $11,200.00 = $51,200.00 total value of production 
to count;
    (6) $108,000.00 - $51,200.00 = $56,800.00 loss; and
    (7) $56,800.00 loss x 100 percent = $56,800.00 indemnity payment.
    (c) The extent of any quality loss must be determined based on 
samples obtained no later than the time the potatoes are placed in 
storage, if the production is stored prior to sale, or the date they are 
delivered to a buyer, wholesaler, packer, broker, or other handler if 
production is not stored.
    (d) The total production to count (in hundredweight) 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) That is put to another use without our consent;
    (C) That is damaged solely by uninsured causes;
    (D) From which any production is disposed of without a grade 
inspection; or
    (E) For which you fail to provide acceptable production records;
    (ii) Production lost due to uninsured causes;
    (iii) Production lost due to harvest prior to full maturity. 
Production to count from such acreage will be determined by increasing 
the amount of harvested production by 2 percent per day for each day the 
potatoes were harvested prior to the date the potatoes would have 
reached full maturity. The date the potatoes would have reached full 
maturity will be considered to be 45 days prior to the calendar date for 
the end of the insurance period, unless otherwise specified in the 
Special Provisions. This adjustment will not be made if the potatoes are 
damaged by an insurable cause of loss, and leaving the crop in the field 
would either reduce production or decrease quality;
    (iv) Unharvested production (the value of unharvested production 
will be calculated using the reduced price election determined in 
section 2(b) and unharvested production may be adjusted in accordance 
with sections 11(e), (f), (g), and (h)); and
    (v) Potential production on insured acreage that you intend to put 
to another use or abandon, if you and we agree on the appraised amount 
of production. Upon such agreement, the insurance period for that 
acreage will end when you put the acreage to another use or abandon the 
crop. If agreement on the appraised amount of production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us (The price used to determine the 
amount of any indemnity will be limited as specified in section 2 even 
if the representative samples are harvested. The amount of production to 
count for such acreage will be based on the harvested production or 
appraisals from the samples at the time harvest should have occurred. If 
you do not leave the required samples intact, or fail to provide 
sufficient care for the samples, our appraisal made prior to giving you 
consent to put the acreage to another use will be used to determine the 
amount of production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage (the amount 
of production prior to the sorting or discarding of any production).
    (e) Potato production is eligible for quality adjustment if:
    (1) The potatoes have freeze damage or tuber rot that is evident at, 
or prior to, the end of the insurance period; and
    (2) A grade inspection is performed.
    (f) Potato production that is eligible for quality adjustment, as 
specified in section 11(e), with 5 percent damage or less (by weight) 
will be adjusted 0.1 percent for each 0.1 percent of damage through 5.0 
percent.
    (g) Potato production that is eligible for quality adjustment, as 
specified in section 11(e), with 5.1 percent damage or more (by weight) 
will be adjusted as follows:
    (1) For potatoes damaged by freeze, production will be reduced 0.1 
percent for each 0.1 percent of damage through 5.0 percent, 0.5 percent 
for each 0.1 percent of damage from 5.1 through 15.0 percent, and by 1.0 
percent for each 0.1 percent of damage from 15.1 through 19.5 percent. 
However, if you do not

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discard any harvested production within 21 days of the end of the 
insurance period that has freeze damage in excess of 17.9 percent, we 
will include 15 percent of such production when determining the amount 
of production to count.
    (2) For potatoes that have tuber rot due to an insurable cause other 
than freeze, production to count will be determined as follows:
    (i) For potatoes for which a price is agreed upon between you and a 
buyer within 21 days (60 days if the Northern Potato Crop Insurance 
Storage Coverage Endorsement is applicable) if the end of the insurance 
period, or that are delivered to a buyer within 21 days (60 days if the 
Northern Potato Crop Insurance Storage Coverage Endorsement is 
applicable) of the end of the insurance period, by dividing the price 
received or that will be received per hundredweight by the highest price 
election designated in the Special Provisions for the insured potato 
type, and multiplying the result (not to exceed 1.0) by the number of 
hundredweight of sold production. If production is sold for a price 
lower than the value appropriate to and representative of the local 
market, we will determine the value of the production based on the price 
you could have received in the local market;
    (ii) For harvested potatoes discarded within 21 days (60 days if the 
Northern Potato Crop Insurance Storage Coverage Endorsement is 
applicable) of the end of the insurance period and appraised unharvested 
production that could:
    (A) Not have been sold, the production to count will be zero; or
    (B) Have been sold, the production will be reduced as follows (all 
percentage points of damage will be rounded to the nearest 0.1 percent):
    (1) 0.1 percent for each 0.1 percent of damage through 5.0 percent;
    (2) 05. percent for each 0.1 percent of damage from 5.1 percent 
through 6.0 percent;
    (3) 1.0 percent for each 0.1 percent of damage from 6.1 through 8.0 
percent;
    (4) 2.0 percent for each 0.1 percent of damage from 8.1 through 9.0 
percent; and
    (5) 2.5 percent for each 0.1 percent of damage from 9.1 through 10.4 
percent.
    (iii) For potatoes for which a price is not agreed upon between you 
and a buyer within 21 days (60 days if the Northern Potato Crop 
Insurance Storage Coverage Endorsement is applicable) of the end of the 
insurance period and that remain in storage 22 or more days (61 or more 
days if the Northern Potato Crop Insurance Storage Coverage Endorsement 
is applicable) after the end of the insurance period, adjustment will be 
made in accordance with section 11(g)(2)(ii)(B).
    (h) When a combination of freeze damage or a tuber rot condition is 
5.1 percent (by weight) or greater, the amount of production to count 
for production affected by tuber rot will first be determined in 
accordance with section 11(g)(2). If production is not sold within the 
time frame specified in section 11(g)(2), this amount will be further 
adjusted as follows:
    (1) The percentage of potatoes with freeze damage will be determined 
by dividing the weight of potatoes with only freeze damage in 
representatives samples of the production by the total weight of the 
samples;
    (2) The reduction percentage will be determined based on the result 
of section 11(h)(1) and section 11(g)(1); and
    (3) The reduction percentage determined in section 11(h)(2) will be 
multiplied by the amount of production determined in accordance with 
section 11(g)(2).

                         12. Prevented Planting

    Your prevented planting coverage will be 25 percent of your 
production guarantee for timely planted acreage. If you have limited or 
additional coverage, as specified in 7 CFR part 400, subpart T, and pay 
an additional premium, you may increase your prevented planting coverage 
to a level specified in the actuarial documents.

[62 FR 65331, Dec. 12, 1997]