INFORMATIONAL MEMORANDUM: R&D-96-080 TO: All Reinsured Companies All Risk Management Field Offices FSA Headquarters, Program Delivery and Field Operations FROM: Tim B. Witt /s/ Tim B. Witt 12/12/96 Acting Deputy Administrator SUBJECT: Sugar Beet Crop Insurance Provisions Attached is a copy of the Sugar Beet Crop Provisions, effective for the 1997 and succeeding crop years in all States except Arizona and California, and for 1998 and succeeding crop years in Arizona and California. Following is a brief description of the significant changes to these provisions. Please refer to the provisions for more complete information. - Section 1 clarifies that the definition of "county" (contained in the Basic Provisions of the Common Crop Insurance Policy) no longer will include land identified by an FSA Farm Serial Number for the county but that is physically located in another county. Such land will be insured using the actuarial materials for the county in which it is physically located. - Section 2 provides unit division provisions that have been expanded to include the insured's reporting responsibilities to qualify for optional units and the breakdown of units by irrigated and non- irrigated acreage. - Section 5 specifies that the cancellation and termination dates are changed from April 15 to March 15 for all States except California and Arizona. The cancellation and termination dates have been changed from March 31 to February 28 for Lassen, Modoc, Shasta, and Siskiyou Counties, California. The cancellation date has been changed from March 31 to July 15 for all remaining California counties. The termination date for these California counties has been changed to November 30 immediately following the last final planting date for the crop year. The changes (except California counties with a July 15 cancellation date) are intended to minimize program vulnerabilities that may exist under current program dates by reducing the chances that insureds may be able to anticipate below normal yields and to implement amendments to the Federal Crop Insurance Act made by the Federal Crop Insurance Reform Act of 1994. The change to July 15 in the California counties specified above is made to allow FCIC to return to the use of a single final planting date in counties where sugar beets are planted year round. Changes in planting times in these counties made establishment of multiple final planting dates extremely difficult to administer. - Section 6 specifies that the premium is based on the final stage production guarantee. - Section 7(b) specifies insurance eligibility requirements for sugar beet producers who are also the processing company. - Section 8(a)(2) provides that acreage is uninsurable in any crop year following the discovery of rhizomania unless insurance is allowed by the Special Provisions or by written agreement. - Section 8(b) clarifies that any acreage damaged prior to the final planting date must be replanted unless replanting is not practical. This provision applies to all counties with an established final planting date. - Section 8(c) specifies that any acreage damaged within 30 days of the initial planting must be replanted unless replanting is not practical. This provision applies to all counties that do not have an established final planting date. - Section 9(a)(2) specifies that the end of the insurance period is the last day of the 12th month after the crop initially was planted in all California counties except Imperial, Lassen, Modoc, Shasta, and Siskiyou. - Section 9(a)(3) specifies that the end of the insurance period for Lassen, Modoc, Shasta and Siskiyou Counties, California, and Klamath County, Oregon, is October 31. - Section 10(c) and (d) specifies that damage or loss of production due to disease or insect infestation will not be insurable unless an insured cause of loss prevents the proper application of control measures. - Section 10(h) specifies that failure of the irrigation water supply must be caused by an insured peril that occurs during the insurance period. - Section 11(b) specifies that the maximum amount of a replanting payment will be the lesser of 10 percent of the final stage guarantee or 1 ton, multiplied by the price election and the share. - Section 13 clarifies the calculations used to settle a claim. - Section 14 grants protection for acreage planted within 25 days after the final planting date, and for acreage that cannot be planted due to any insurable cause of loss. If the insured is prevented from planting by the final planting date, or intends to plant within the late planting period and is prevented from doing so, insurance protection is provided at a specified percent of the production guarantee for timely planted acreage. Reductions are made to recognize increasingly lower yield potential as planting is delayed. Late and prevented planting coverages are not available in any California counties except Imperial, Lassen, Modoc, Shasta, and Siskiyou. Year round planting in these counties precludes the use of current prevented planting provisions. - Section 15 adds provisions for providing insurance coverage by written agreement. If you have any questions, please contact Dave Clauser at 926-7730. Attachment - NOTE: ENTIRE BULLETIN WITH ATTACHMENTS WILL BE MAILED