[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR457.101]

[Page 145-153]
 
                          TITLE 7--AGRICULTURE
 
     CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF 
                               AGRICULTURE
 
PART 457_COMMON CROP INSURANCE REGULATIONS--Table of Contents
 
Sec. 457.101  Small grains crop insurance.

    The small grains crop insurance provisions for the 2004 and 
succeeding crop years are as follows:

[[Page 146]]

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                      Small Grains 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

    Adequate stand--A population of live plants per unit of acreage 
which will produce at least the yield used to establish your production 
guarantee.
    Harvest--Combining or threshing the insured crop for grain or 
cutting for hay or silage on any acreage. A crop which is swathed prior 
to combining is not considered harvested.
    Initially planted--The first occurrence of planting the insured crop 
on insurable acreage for the crop year.
    Khorasan. The common name for a variety of wheat (Triticum 
turanicum) that is marketed under trademarks such as Kamut. Khorasan is 
considered to be spring wheat for the purposes of this policy.
    Latest final planting date--
    (1) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for spring-planted acreage only;
    (2) The final planting date for fall-planted acreage in all counties 
for which the Special Provisions designate a final planting date for 
fall-planted acreage only; or
    (3) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate final planting dates 
for both spring-planted and fall-planted acreage.
    Local market price. The cash grain price per bushel for the 
applicable quality level indicated below and offered by buyers in the 
area in which you normally market the insured crop. The local market 
price will reflect the maximum limits of quality deficiencies allowable 
for the applicable quality level indicated below. Factors not associated 
with the specified quality levels, including but not limited to protein, 
oil or moisture content, or milling quality will not be considered.
    (1) U.S. No. 2 for Wheat (subclass hard amber durum for durum wheat 
and subclass northern spring for hard red spring wheat), except 
Khorasan; barley (including hull-less barley); oats (including hull-less 
oats); rye; and flax.
    (2) The quality factor levels required for durum wheat to grade U.S. 
No. 2 for Khorasan.
    (3) No. 2 grade buckwheat determined in accordance with the 
applicable state grading standards.
    Nurse crop (companion crop)--A crop planted into the same acreage as 
another crop, that is intended to be harvested separately, and which is 
planted to improve growing conditions for the crop with which it is 
grown.
    Planted acreage--In addition to the definition contained in the 
Basic Provisions, except for flax, land on which seed is initially 
spread onto the soil surface by any method and subsequently is 
mechanically incorporated into the soil in a timely manner and at the 
proper depth will be considered planted. Flax seed must initially be 
planted in rows to be considered planted, unless otherwise provided by 
the Special Provisions, actuarial documents, or by written agreement.
    Prevented planting. In lieu of the definition contained in the Basic 
Provisions, failure to plant the insured crop with proper equipment by 
the latest final planting date designated in the Special Provisions for 
the insured crop in the county. You may also be eligible for a prevented 
planting payment if you failed to plant the insured crop with the proper 
equipment within the applicable late planting period following the 
latest final planting date. You must have been prevented from planting 
the insured crop due to an insured cause of loss that is general in the 
surrounding area and that prevents other producers from planting acreage 
with similar characteristics.
    Sales closing date--In lieu of the definition contained in the Basic 
Provisions, a date contained in the Special Provisions by which an 
application must be filed and by which you may change your crop 
insurance coverage for a crop year. If the Special Provisions provide a 
sales closing date for both winter and spring types of the insured crop 
and you plant any insurable acreage of the winter type, you may not 
change your crop insurance coverage after the sales closing date for the 
winter type.
    Small grains. Wheat, including only common wheat (Triticum 
aestivum), club wheat (T. compactum), durum wheat (T. durum) and 
Khorasan (T. turanicum); barley (Hordeum vulgare), including hull-less 
barley and excluding black barley; oats (Avena sativa, and A. 
byzantina), and hull-less oats (A. Nuda); rye (Secale cereale); flax 
(Linum usitatissimum); and buckwheat (Fagopyrum esculentum).
    Swathed-- Severance of the stem and grain head from the ground 
without removal of the seed from the head and placing into a windrow.

                            2. Unit Division

    In addition to the requirements of section 34(b) of the Basic 
Provisions, for wheat only, in addition to, or instead of, establishing 
optional units by section, section equivalent or FSA farm serial number 
and by irrigated and non-irrigated practices, optional units may

[[Page 147]]

be established if each optional unit contains only initially planted 
winter wheat, only initially planted spring wheat, only initially 
planted club wheat or only initially planted durum wheat. Separate 
optional units for initially planted winter wheat and initially planted 
spring wheat may be established only in counties having both winter and 
spring type final planting dates as designated in the Special 
Provisions. A separate optional unit for club wheat may be established 
only in counties for which the Special Provisions designate club wheat 
as a wheat type (separate optional units may be established for 
initially planted winter club and initially planted spring club wheat if 
the Special Provisions specify both as wheat types). A separate optional 
unit for durum wheat may be established only in counties for which the 
Special Provisions designate durum wheat as a separate wheat type 
(separate optional units may be established for initially planted winter 
durum wheat and initially planted spring durum wheat if the Special 
Provisions specify both as wheat types).

  3. 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 each crop in the 
county insured under this policy unless the Special Provisions provide 
different price elections by type, in which case each type must be 
insured using the price election for the respective type. The price 
elections you choose for each type must have the same percentage 
relationship to the maximum price 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) In addition to the requirements of section 3 of the Basic 
Provisions, in counties with both fall and spring sales closing dates 
for the insured crop, you may only change your coverage level or price 
election until the spring sales closing date if you do not have any 
insured fall planted acreage of the insured crop. If you have any 
insured fall planted acreage of the insured crop, you may not change 
your coverage level or price election after the fall sales closing date.

                           4. Contract Changes

    In accordance with section 4 of the Basic Provisions, the contract 
change date is November 30 preceding the cancellation date for counties 
with a March 15 cancellation date and June 30 preceding the cancellation 
date for all other counties.

                  5. Cancellation and Termination Dates

    The cancellation and termination dates are:

----------------------------------------------------------------------------------------------------------------
         Crop, state and county                     Cancellation date                   Termination date
----------------------------------------------------------------------------------------------------------------
Wheat:
    All Colorado counties except          September 30........................  September 30.
     Alamosa, Archuleta, Conejos,
     Costilla, Custer, Delta, Dolores,
     Eagle, Garfield, Grand, La Plata,
     Mesa, Moffat, Montezuma, Montrose,
     Ouray, Pitkin, Rio Blanco, Rio
     Grande, Routt, Saguache, and San
     Miguel; all Iowa counties except
     Plymouth, Cherokee, Buena Vista,
     Pocahontas, Humbolt, Wright,
     Franklin, Butler, Black Hawk,
     Buchanan, Delaware, Dubuque and all
     Iowa counties north thereof; all
     Wisconsin counties except Buffalo,
     Trempealeau, Jackson, Wood,
     Portage, Waupaca, Outagamie, Brown,
     Kewaunee and all Wisconsin counties
     north thereof; all other states
     except Alaska, Arizona, California,
     Connecticut, Idaho, Maine,
     Massachusetts, Minnesota, Montana,
     Nevada, New Hampshire, New York,
     North Dakota, Oregon, Rhode Island,
     South Dakota, Utah, Vermont,
     Washington, and Wyoming.
    Del Norte, Humboldt, Lassen, Modoc,   September 30........................  November 30.
     Plumas, Shasta, Siskiyou and
     Trinity Counties, California;
     Archuleta, Custer, Delta, Dolores,
     Eagle, Garfield, Grand, La Plata,
     Mesa, Moffat, Montezuma, Montrose,
     Ouray, Pitkin, Rio Blanco, Routt
     and San Miguel Counties, Colorado;
     Connecticut; Idaho; Plymouth,
     Cherokee, Buena Vista, Pocahontas,
     Humbolt, Wright, Franklin, Butler,
     Black Hawk, Buchanan, Delaware and
     Dubuque Counties, Iowa, and all
     Iowa counties north thereof;
     Massachusetts; all Montana counties
     except Daniels and Sheridan; New
     York; Oregon; Rhode Island; all
     South Dakota counties except
     Corson, Walworth, Edmunds, Faulk,
     Spink, Beadle, Kingsbury, Miner,
     McCook, Turner, Yankton and all
     South Dakota counties north and
     east thereof; Washington; Buffalo,
     Trempealeau, Jackson, Wood,
     Portage, Waupaca, Outagamie, Brown
     and Kewaunee Counties, Wisconsin,
     and all Wisconsin counties north
     thereof; all Wyoming counties
     except Big Horn, Fremont, Hot
     Springs, Park, and Washakie.
    Arizona; all California counties      October 31..........................  November 30.
     except Del Norte, Humboldt, Lassen,
     Modoc, Plumas, Shasta, Siskiyou and
     Trinity; Nevada; and Utah.

[[Page 148]]

 
    Alaska; Alamosa, Conejos, Costilla,   March 15............................  March 15.
     Rio Grande and Saguache Counties,
     Colorado; Maine; Minnesota; Daniels
     and Sheridan Counties, Montana; New
     Hampshire; North Dakota; Corson,
     Walworth, Edmunds, Faulk, Spink,
     Beadle, Kingsbury, Miner, McCook,
     Turner, and Yankton Counties, South
     Dakota, and all South Dakota
     counties north and east thereof;
     Vermont; and Big Horn, Fremont, Hot
     Springs, Park, and Washakie
     Counties, Wyoming.
Barley:
    All New Mexico counties except Taos;  September 30........................  September 30.
     Texas, Oklahoma, Missouri,
     Illinois, Indiana, Ohio,
     Pennsylvania, New Jersey and all
     states south and east thereof.
    Kit Carson, Lincoln, Elbert, El       September 30........................  November 30.
     Paso, Pueblo and Las Animas
     Counties, Colorado, and all
     Colorado counties south and east
     thereof; Connecticut; Kansas;
     Massachusetts; New York; and Rhode
     Island.
    Arizona; all California counties      October 31..........................  November 30.
     except Del Norte, Humboldt, Lassen,
     Modoc, Plumas, Shasta, Siskiyou and
     Trinity; Clark, Humboldt, Nye and
     Pershing Counties, Nevada; and Box
     Elder, Millard and Utah Counties,
     Utah.
    Del Norte, Humboldt, Lassen, Modoc,   March 15............................  March 15.
     Plumas, Shasta, Siskiyou and
     Trinity Counties, California; All
     Colorado counties except Kit
     Carson, Lincoln, Elbert, El Paso,
     Pueblo and Las Animas, and all
     Colorado counties south and east
     thereof; all Nevada counties except
     Clark, Humboldt, Nye and Pershing;
     Taos County, New Mexico; all Utah
     counties except Box Elder, Millard
     and Utah; and all other states
     except Arizona, and (except) Texas,
     Oklahoma, Missouri, Illinois,
     Indiana, Ohio, Pennsylvania, New
     Jersey and all states south and
     east thereof.
Oats:
    Alabama; Arkansas; Florida; Georgia;  September 30........................  September 30.
     Louisiana; Mississippi; All New
     Mexico counties except Taos County;
     North Carolina; Oklahoma; South
     Carolina; Tennessee; Texas; and
     Patrick, Franklin, Pittsylvania,
     Campbell, Appomattox, Fluvanna,
     Buckingham, Louisa, Spotsylvania,
     Caroline, Essex, and Westmoreland
     Counties, Virginia, and all
     Virginia counties east thereof.
    Arizona; All California counties      October 31..........................  October 31.
     except Del Norte, Humboldt, Lassen,
     Modoc, Plumas, Shasta, Siskiyou and
     Trinity.
    Del Norte, Humbolt, Lassen, Modoc,    March 15............................  March 15.
     Plumas, Shasta, Siskiyou, and
     Trinity Counties, California; Taos
     County, New Mexico; all Virginia
     counties except Patrick, Franklin,
     Pittsylvania, Campbell, Attomattox,
     Fluvanna, Buckingham, Louisa,
     Spotsylvania, Caroline, Essex, and
     Westmoreland, and all Virginia
     counties east thereof; and all
     other states except Alabama,
     Arizona, Arkansas, Florida,
     Georgia, Louisiana, Mississippi,
     North Carolina, Oklahoma, South
     Carolina, Tennessee, and Texas.
Rye:
    All states..........................  September 30........................  September 30.
Flax:
    All states..........................  March 15............................  March 15.
Buckwheat:
    All states..........................  March 15............................  March 15.
----------------------------------------------------------------------------------------------------------------

                             6. Insured Crop

    (a) The crop insured will be each small grain you elect to insure, 
that is grown in the county on insurable acreage, and for which premium 
rates are provided by the actuarial documents:
    (1) In which you have a share;
    (2) That is planted for harvest as grain (a grain mixture in which 
barley or oats is the predominate grain may also be insured if allowed 
by the Barley or Oat Special Provisions, or if we agree in writing to 
insure such mixture. The crop insured will be the grain which is 
predominate in the mixture. The production from such mixture will be 
considered as the predominate grain on a weight basis);
    (3) That is not:
    (i) Interplanted with another crop except as allowed in paragraph 
6.(a)(2);
    (ii) Planted into an established grass or legume; or
    (iii) Planted as a nurse crop, unless planted as a nurse crop for 
new forage seeding, but only if seeded at a normal rate and intended for 
harvest as grain.
    (4) We may agree, in writing, to insure a crop prohibited under 
paragraph 6.(a)(3) if you so request. Your request to insure such crop 
must be in writing, and submitted to

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your agent not later than 15 days after the acreage reporting date.
    (b) If you anticipate destroying any acreage prior to harvest you:
    (1) May report all planted acreage when you report your acreage for 
the crop year and specify any acreage to be destroyed as uninsurable 
acreage (By doing so, no coverage will be considered to have attached on 
the specified acreage and no premium will be due for such acreage. If 
you do not destroy such acreage, you will be subject to the under-
reporting provisions contained in section 6 of the Basic Provisions); or
    (2) May report all planted acreage as insurable when you report your 
acreage for the crop year. Premium will be due on all the acreage except 
as set forth herein. If the Special Provisions allow a reduced premium 
amount for acreage intentionally destroyed prior to harvest, you may 
qualify for such reduction only if you notify us in writing on or before 
the date designated in the Special Provisions of the intended 
destruction, and do not claim an indemnity on the acreage. No premium 
reduction will be allowed if the required notice is not given or if you 
claim an indemnity for the acreage. Upon receiving timely notice, 
insurance coverage on the acreage you do not intend to harvest will 
cease and we will revise your acreage report to indicate the applicable 
reduction in premium. If you do not destroy the crop as intended, you 
will be subject to the under-reporting provisions contained in section 6 
of the Basic Provisions.
    (c) In counties for which the actuarial table provides premium rates 
for the Wheat or Barley Winter Coverage Endorsement (7 CFR 457.102), 
additional coverage is available for wheat or barley damaged between the 
time coverage begins and the spring final planting date. Coverage under 
the endorsement is effective only if you qualify under the terms of the 
endorsement and you execute the endorsement by the sales closing date.
    (d) In counties for which the actuarial table provides premium rates 
for malting barley coverage, an endorsement is available (7 CFR 457.118) 
that provides additional insurance protection for malting barley. This 
endorsement provides coverage for producers who grow malting barley 
under contract and for those who do not have a contract. Coverage under 
the endorsement is effective only if you qualify under the terms of the 
endorsement and you execute the endorsement by the sales closing date.

                           7. Insurance Period

    In lieu of the requirements under section 11 (Insurance Period) of 
the Basic Provisions (Sec. 457.8), and subject to any provisions 
provided by the Wheat or Barley Winter Coverage Endorsement (Sec. 
457.102) if you have elected such endorsement, the insurance period is 
as follows:
    (a) Insurance attaches on each unit or part thereof on the later of 
the date we accept your application or the date the insured crop is 
planted.
    (1) For oats, rye, flax and buckwheat, the following limitations 
apply:
    (i) The acreage must be planted on or before the final planting date 
designated in the Special Provisions for the insured crop except as 
allowed in section 12 of these Crop Provisions and section 16 of the 
Basic Provisions.
    (ii) Any acreage of the insured crop damaged before the final 
planting date, to the extent that producers in the surrounding area 
would not normally further care for the crop, must be replanted unless 
we agree that it is not practical to replant.
    (2) For barley and wheat, the following limitations apply:
    (i) The acreage must be planted on or before the final planting date 
designated in the Special Provisions for the type (winter or spring) 
except as allowed in section 12 of these Crop Provisions and section 16 
of the Basic Provisions.
    (ii) Whenever the Special Provisions designate only a fall final 
planting date, any acreage of winter barley or wheat damaged before such 
final planting date, to the extent that growers in the area would 
normally not further care for the crop, must be replanted to a winter 
type of the insured crop unless we agree that replanting is not 
practical.
    (iii) Whenever the Special Provisions designate both fall and spring 
final planting dates, any winter barley or winter wheat that is damaged 
before the spring final planting date, to the extent that growers in the 
area would normally not further care for the crop, must be replanted to 
a winter type of the insured crop to maintain insurance based on the 
winter type unless we agree that replanting is not practical. If it is 
not practical to replant to the winter type of wheat or barley but is 
practical to replant to a spring type, you must replant to a spring type 
to keep your insurance based on the winter type in force. Any winter 
barley or winter wheat acreage that is replanted to a spring type of the 
same crop when it was practical to replant the winter type will be 
insured as the spring type and the production guarantee, premium and 
price election applicable to the spring type will be used. In this case, 
the acreage will be considered to be initially planted to the spring 
type. If you have elected coverage under a barley or wheat winter 
coverage endorsement (if available in the county), insurance will be in 
accordance with the option.
    (iv) Whenever the Special Provisions designate a spring final 
planting date, any acreage of spring barley or wheat damaged before such 
final planting date, to the extent that

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growers in the area would normally not further care for the crop, must 
be replanted to a spring type of the insured crop unless we agree that 
replanting is not practical.
    (v) Whenever the Special Provisions designate only a spring final 
planting date, any acreage of fall planted barley or fall planted wheat 
is not insured unless you request such coverage on or before the spring 
sales closing date, and we agree in writing that the acreage has an 
adequate stand in the spring to produce the yield used to determine your 
production guarantee. The fall planted barley or fall planted wheat will 
be insured as a spring type for the purpose of the production guarantee, 
premium and price election. Insurance will attach to such acreage on the 
date we determine an adequate stand exists or on the spring final 
planting date if we do not determine adequacy of the stand by the spring 
final planting date. Any acreage of such fall planted barley or fall 
planted wheat that is damaged after it is accepted for insurance but 
before the spring final planting date, to the extent that growers in the 
area would normally not further care for the crop, must be replanted to 
a spring type of the insured crop unless we agree it is not practical to 
replant. If fall planted acreage is not to be insured it must be 
recorded on the acreage report as uninsured fall planted acreage.
    (b) Insurance ends on each unit at the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit;
    (3) Final adjustment of a loss on the unit;
    (4) The following applicable date of the calendar year in which the 
crop is normally harvested:
    (i) September 25 following planting in Alaska;
    (ii) July 31 in Alabama, Arizona, Arkansas, Connecticut, Delaware, 
Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New 
Jersey, North Carolina, South Carolina and Tennessee; or
    (iii) October 31 in all other states; or
    (5) Abandonment of the crop on the unit.

                            8. Causes of Loss

    In addition to the provisions under section 12 (Causes of Loss) of 
the Basic Provisions, any loss covered by this policy must occur within 
the insurance period.
    The specific causes of loss for small grains are:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage allowed because of insufficient or 
improper application of pest control measures;
    (d) Plant disease, but not damage allowed because of insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply.

                         9. Replanting Payments

    (a) A replanting payment is allowed as follows:
    (1) In lieu of provisions in section 13 of the Basic Provisions that 
limit the amount of a replant payment to the actual cost of replanting, 
the amount of any replanting payment will be determined in accordance 
with these crop provisions;
    (2) You must comply with all requirements regarding replanting 
payments contained in section 13 of the Basic Provisions (except as 
allowed in section 9(a)(1)) and in any winter coverage endorsement for 
which you are eligible and which you have elected;
    (3) The insured crop must be damaged by an insurable cause of loss 
to the extent that the remaining stand will not produce at least 90 
percent of the production guarantee for the acreage;
    (4) The acreage must have been initially planted to a spring type of 
the insured crop in those counties with only a spring final planting 
date;
    (5) Damage must occur after the fall final planting date in those 
counties where both a fall and spring final planting date are designated 
(If the Special Provisions provide more than one fall final planting 
date, the fall final planting date applicable to policies with the Wheat 
or Barley Winter Coverage Endorsement will be used for this purpose, 
regardless of whether or not the endorsement is actually in effect.); 
and
    (6) The replanted crop must be seeded at a rate sufficient to 
achieve a total (undamaged and new seeding) plant population that will 
produce at least the yield used to determine your production guarantee.
    (b) No replanting payment will be made for acreage initially planted 
to a winter type of the insured crop (including rye) in any county for 
which the Special Provisions contain only a fall final planting date 
(including final planting dates in December, January and February).
    (c) The maximum amount of the replanting payment per acre will be 
the lesser of 20.0 percent of the production guarantee or the number of 
bushels for the applicable crop specified below, multiplied by your 
price election and your share:
    (1) 2 bushels for flax or buckwheat;
    (2) 4 bushels for wheat; or
    (3) 5 bushels for barley or oats.
    (d) When the crop is replanted using a practice that is uninsurable 
for an original planting, the liability on the unit will be reduced by 
the amount of the replanting payment. The premium amount will not be 
reduced.
    (e) Replanting payments will be calculated using the price election 
and production guarantee for the crop type that is replanted and

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insured. For example, if damaged spring wheat is replanted to durum 
wheat, the price election applicable to durum wheat will be used to 
calculate any replanting payment that may be due. A revised acreage 
report will be required to reflect the replanted type. Notwithstanding 
the previous two sentences, the following will have a replanting payment 
based on the guarantee and price election for the crop type initially 
planted:
    (1) Any damaged winter crop type that is replanted to a spring crop 
type, but that retains insurance based on the winter crop type guarantee 
and price election; and
    (2) Any acreage replanted at a reduced seeding rate into a partially 
damaged stand of the insured crop.

                10. Duties in the Event of Damage or Loss

    In addition to your duties under section 14 of the Basic Provisions 
(Sec. 457.8), if you initially discover damage to any insured crop 
within 15 days of, or during harvest, you must leave representative 
samples of the unharvested crop for our inspection. The samples must be 
at least 10 feet wide and the entire length of each field in the unit, 
and must not be harvested or destroyed until the earlier of our 
inspection or 15 days after harvest of the balance of the unit is 
completed.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production that are acceptable to us 
for any:
    (1) Optional unit, we will combine all optional units for which 
acceptable records of production were not provided; or for any
    (2) 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 by its respective production 
guarantee;
    (2) Multiplying each result in section 11(b)(1) by the respective 
price election;
    (3) Totaling the results of section 11(b)(2);
    (4) Multiplying the total production to be counted of each type, if 
applicable (see sections 11(c), (d), and (e)), by the respective price 
election;
    (5) Totaling the results of section 11(b)(4);
    (6) Subtracting the result 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.
    (c) The total production (bushels) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) Which is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance with 
subsection 11.(d));
    (iv) 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 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 you 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
    (d) Mature wheat, barley, oat, rye, and buckwheat production may be 
adjusted for excess moisture and quality deficiencies. Flax production 
may be adjusted for quality deficiencies only. If a moisture adjustment 
is applicable, it will be made prior to any adjustment for quality.
    (1) Production will be reduced by .12 percent for each .1 percentage 
point of moisture in excess of:
    (i) 13.5 percent for wheat;
    (ii) 14.5 percent for barley;
    (iii) 14.0 percent for oats; and
    (iv) 16.0 percent for rye and buckwheat.
    We may obtain samples of the production to determine the moisture 
content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain including the definition of terms used in 
section 11(d), result in:
    (A) Wheat, except Khorasan, not meeting the grade requirements for 
U.S. No. 4 (grades U.S. No. 5 or worse) because of test weight;

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total damaged kernels (heat-damaged kernels will not be considered to be 
damaged); shrunken or broken kernels; defects (foreign material and heat 
damage will not be considered to be defects); a musty, sour, or 
commercially objectionable foreign odor (except smut odor); or grading 
garlicky, light smutty, smutty or ergoty;
    (B) Barley, except hull-less barley, not meeting the grade 
requirements for U.S. No. 4 (grades U.S. No. 5 or worse) because of test 
weight; percentage of sound barley (heat-damaged kernels will be 
considered to be sound barley); damaged kernels (heat-damaged kernels 
will not be considered to be damaged); thin barley; black barley; a 
musty, sour, or commercially objectionable foreign odor (except smut or 
garlic odor); or grading blighted, smutty, garlicky or ergoty;
    (C) Oats, except hull-less oats, not meeting the grade requirements 
for U.S. No. 4 (grade U.S. sample grade) because of test weight; 
percentage of sound oats (heat-damaged kernels will be considered to be 
sound oats); a musty, sour, or commercially objectionable foreign odor 
(except smut or garlic odor); or grading smutty, thin, garlicky or 
ergoty;
    (D) Rye not meeting the grade requirements for U.S. No. 3 (grades 
U.S. No. 4 or worse) because of test weight; percent damaged kernels 
(heat-damaged kernels will not be considered to be damaged); thin rye; a 
musty, sour, or commercially objectionable foreign odor (except smut or 
garlic odor); or grading light smutty, smutty, light garlicky, garlicky, 
or ergoty;
    (E) Flaxseed not meeting the grade requirements for U.S. No. 2 
(grades U.S. sample grade) due to test weight; damaged kernels (heat-
damaged kernels will not be considered to be damaged); or a musty, sour, 
or commercially objectionable foreign odor (except smut or garlic odor);
    (ii) Deficiencies in the quality of buckwheat, determined in 
accordance with applicable state grading standards, result in it not 
meeting No. 3 grade requirements due to test weight; a musty, sour or 
commercially objectionable foreign odor (except smut or garlic odor); or 
grading garlicky, smutty or ergoty if such grades are provided for by 
the applicable state grading standards;
    (iii) Quality factors for Khorasan fall below the levels contained 
in the Official United States Standards for Grain that cause durum wheat 
to grade less than U.S. No. 4. For example, if durum wheat grades less 
than U.S. No. 4 when its test weight falls below 54.0 pounds per bushel, 
Khorasan would be eligible for quality adjustment if its test weight 
falls below 54.0 pounds per bushel. The same quality factors considered 
for quality adjustment of durum wheat will be applicable and 
determination of deficiencies will be made in accordance with the 
Federal Grain Inspection Service directive that establishes procedures 
for quality factor analysis of Khorasan seed. Quality adjustment 
discount factors for U.S. grades specified in the Special Provisions 
will also apply to Khorasan at the same levels applicable to durum 
wheat;
    (iv) Quality factors for hull-less barley fall below the levels 
contained in the Official United States Standards for Grain that cause 
barley to grade less than U.S. No. 4. For example, if barley grades less 
than U.S. No. 4 when its test weight falls below 40.0 pounds per bushel, 
hull-less barley would be eligible for quality adjustment if its test 
weight falls below 40.0 pounds per bushel. The same quality factors 
considered for quality adjustment of barley will be applicable and 
determination of deficiencies will be made in accordance with the 
Federal Grain Inspection Service directive that establishes procedures 
for quality factor analysis of hull-less barley. Quality adjustment 
discount factors for U.S. grades specified in the Special Provisions 
will also apply to hull-less barley at the same levels applicable to 
barley;
    (v) Quality factors for hull-less oats fall below the levels 
contained in the Official United States Standards for Grain that cause 
oats to grade less than U.S. No. 4. For example, if oats grade less than 
U.S. No. 4 when its test weight falls below 27.0 pounds per bushel, 
hull-less oats would be eligible for quality adjustment if the test 
weight falls below 27.0 pounds per bushel. The same quality factors 
considered for quality adjustment of oats will be applicable and 
determination of deficiencies will be made in accordance with the 
Federal Grain Inspection Service directive that establishes procedures 
for quality factor analysis of hull-less oats. Quality adjustment 
discount factors for U.S. grades specified in the Special Provisions 
will also apply to hull-less oats at the same levels applicable to oats; 
or
    (vi) Substances or conditions are present, including mycotoxins, 
that are identified by the Food and Drug Administration or other public 
health organizations of the United States as being injurious to human or 
animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or by 
a disinterested third party approved by us;
    (iii) With regard to deficiencies in quality (except test weight, 
which may be determined by our loss adjustor), the samples are analyzed 
by:

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    (A) A grain grader licensed under the United States Grain Standards 
Act or the United States Warehouse Act;
    (B) A grain grader licensed under State law and employed by a 
warehouse operator who has a commodity storage agreement with the 
Commodity Credit Corporation; or
    (C) A grain grader not licensed under State law, but who is employed 
by a warehouse operator who has a commodity storage agreement with the 
Commodity Credit Corporation and is in compliance with State law 
regarding warehouses; and
    (iv) With regard to substances or conditions injurious to human or 
animal health, the samples are analyzed by a laboratory approved by us.
    (4) Small grain production that is eligible for quality adjustment, 
as specified in sections 11(d)(2) and (3), will be reduced by the 
quality adjustment factor contained in the Special Provisions.
    (e) Any production harvested from plants growing in the insured crop 
may be counted as production of the insured crop on a weight basis.

                            12. Late Planting

    A late planting period is applicable to small grains, except to any 
barley or wheat acreage covered under the terms of the Wheat or Barley 
Winter Coverage Endorsement. Barley or wheat covered under the terms of 
the Winter Coverage Endorsement must be planted on or prior to the 
applicable final planting date specified in the Special Provisions. In 
counties having one fall final planting date for acreage covered under 
the Wheat or Barley Winter Coverage Endorsement and another fall final 
planting date for acreage not covered under the endorsement, the fall 
late planting period will begin after the final planting date for 
acreage not covered under the endorsement.

                         13. Prevented Planting

    (a) In addition to the provisions contained in section 17 of the 
Basic Provisions, in counties for which the Special Provisions designate 
a spring final planting date, your prevented planting production 
guarantee will be based on your approved yield for spring-planted 
acreage of the insured crop.
    (b) Your prevented planting coverage will be 60 percent of your 
production guarantee for timely planted acreage. If you have limited or 
additional levels of 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.

[59 FR 9391, Feb. 28, 1994, as amended at 60 FR 62723, Dec. 7, 1995; 62 
FR 65164, Dec. 10, 1997; 67 FR 43526, June 28, 2002; 68 FR 34268, June 
9, 2003]