[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1437.9]

[Page 594-595]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1437_NONINSURED CROP DISASTER ASSISTANCE PROGRAM--Table of Contents
 
                      Subpart A_General Provisions
 
Sec.  1437.9  Causes of loss.

    (a) To be eligible for benefits under this part, an eligible cause 
of loss must result in:
    (1) A loss of production greater than 50 percent of the approved 
yield in accordance with subpart B of this part;
    (2) Prevented planting of greater than 35 percent of the intended 
crop acreage according to subpart C of this part;
    (3) A value loss of greater than 50 percent of the pre-disaster 
value according to subpart D of this part, or

[[Page 595]]

    (4) An AUD loss of greater than 50 percent of the expected AUD 
according to subpart E of this part.
    (b) The quantity of the crop or commodity will not be reduced for 
any quality consideration unless a zero value is established.
    (c) Eligible causes of loss include:
    (1) Damaging weather occurring before or during harvest, including 
but not limited to drought, hail, excessive moisture, freeze, tornado, 
hurricane, excessive wind, or any combination thereof;
    (2) Adverse natural occurrence before or during harvest, such as 
earthquake, flood, or volcanic eruption; and
    (3) A related condition, including but not limited to heat, insect 
infestation, or disease, which occurs as a result of an adverse natural 
occurrence or damaging weather occurring before or during harvest that 
directly causes, accelerates, or exacerbates the destruction or 
deterioration of an eligible crop, as determined by CCC.
    (d) Due to the unique requirements, such as controlled environments, 
necessary for successful production of some crops and commodities; not 
all eligible causes of loss will apply to all crops and commodities.
    (e) Ineligible causes of loss include but are not limited to:
    (1) Negligence or malfeasance of the producer;
    (2) Failure of the producer to reseed to the same crop during the 
same planting period in those areas and under such circumstances where 
it is customary;
    (3) Failure of the producer to follow good farming practices, as 
determined by CCC;
    (4) Water contained or released by any governmental, public, or 
private dam or reservoir project, if an easement exists on the acreage 
affected for the containment or release of the water;
    (5) Failure or breakdown of irrigation equipment or facilities;
    (6) Except for tree crops and perennials and as provided for in 
Sec.  1437.201, inadequate irrigation resources at the beginning of the 
crop year;
    (7) A loss of inventory or yield of aquaculture (including 
ornamental fish), floriculture or ornamental nursery stemming from 
drought or any failure to provide water, soil, or growing media to such 
crop for any reason; or
    (8) Any failure to provide a controlled environment or exercise good 
nursery practices when such controlled environment or practices are a 
condition of eligibility under this part.

[71 FR 13743, Mar. 17, 2006]