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United States Department of Agriculture Federal Crop Insurance Corporation Risk Management Agency Product Administration & Standards Division FCIC 18010 (06-2013) 2014 CROP INSURANCE HANDBOOK Underwriting and Actual Production History Standards for FCIC Programs Administered under the Common Crop Insurance Policy Basic Provisions and APH Administrative Regulations for 2014 and Succeeding Crop Years.

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  • United States

    Department of

    Agriculture

    Federal Crop

    Insurance

    Corporation

    Risk

    Management

    Agency

    Product

    Administration

    & Standards

    Division

    FCIC 18010

    (06-2013)

    2014

    CROP INSURANCE

    HANDBOOK

    Underwriting and Actual Production History Standards for

    FCIC Programs Administered under the Common Crop

    Insurance Policy Basic Provisions and APH Administrative

    Regulations for 2014 and Succeeding Crop Years.

  • United States Department of Agriculture

    Risk Management Agency

    Washington, D.C. 20250

    June 2013 FCIC 18010 TP-1

    TITLE: 2014 Crop Insurance Handbook NUMBER: FCIC 18010

    EFFECTIVE DATE: 2014 and

    Succeeding Crop Years ISSUE DATE: 6/21/13

    SUBJECT:

    Underwriting and Actual Production

    History standards for FCIC programs

    administered under the Common Crop

    Insurance Policy Basic Provisions and

    APH administrative regulations.

    OPI: Product Administration and Standards Division

    APPROVED:

    /s/ Tim B. Witt

    Deputy Administrator for Product Management

    REASON FOR ISSUANCE

    This handbook is being issued to provide the official FCIC approved underwriting standards for policies

    administered by AIPs under the Common Crop Insurance Policy Basic Provisions, 7 CFR Part 457 including

    the Catastrophic Risk Protection Endorsement, 7 CFR Part 402, and the Actual Production History

    Regulation 7 CFR Part 400 Subpart G for the 2014 and succeeding crop years.

  • June 2013 FCIC 18010 TP-2

  • June 2013 FCIC 18010 TC-1

    TABLE OF CONTENTS

    PART 1 GENERAL INFORMATION AND RESPONSIBILITIES

    1 General Information ............................................................................................................................ 1

    2 Responsibilities ................................................................................................................................... 3

    3 Title VI of the Civil Rights Act of 1964 ............................................................................................. 3

    4-200 (Reserved) ............................................................................................................................................ 4

    PART 2 ADMINISTRATIVE AND SERVICING REQUIREMENTS

    Section 1 General Program Requirements

    201 Insurance Availability ......................................................................................................................... 5

    202 Eligible Crops .................................................................................................................................... 5

    203 Duplicate Policies ............................................................................................................................... 8

    204 Other Insurance ................................................................................................................................... 9

    205 Insured Cause(s) of Loss ..................................................................................................................... 10

    206 USDA Program Linkage ..................................................................................................................... 10

    207 USDA Program Benefit Limitations ................................................................................................... 10

    208 Administrative Fees ............................................................................................................................ 10

    209 Third-Party Prohibition Regarding Administrative Fees .................................................................... 11

    210 Waiver of Administrative Fees ........................................................................................................... 12

    211 Deadlines............................................................................................................................................. 13

    212 Document Origination ........................................................................................................................ 13

    213-230 (Reserved) ........................................................................................................................................ 13

    Section 2 Application for Insurance

    231 General Information ............................................................................................................................ 14

    232 Sales Closing Date (SCD) ................................................................................................................... 14

    233 The Policy Term ................................................................................................................................. 14

    234 Insurance Choices ............................................................................................................................... 17

    235 Plans of Insurance ............................................................................................................................... 18

    236 Levels of Coverage ............................................................................................................................. 18

    237 Price .................................................................................................................................................... 19

    238 Premium Rates .................................................................................................................................... 21

    239 Added County Election ....................................................................................................................... 21

    240 Application Acceptance ...................................................................................................................... 23

    241 Rejected Applications ......................................................................................................................... 23

  • June 2013 FCIC 18010 TC-2

    242 Transfer of Policies to Another AIP ................................................................................................... 24

    243 Good Experience Discount ................................................................................................................. 25

    244-250 (Reserved) ........................................................................................................................................ 27

    Section 3 Policy Servicing Requirements

    251 Policy Change ..................................................................................................................................... 28

    252 Assignment of Indemnity .................................................................................................................... 28

    253 Transfer of Coverage and Right to an Indemnity ............................................................................... 30

    254 Power of Attorney ............................................................................................................................... 31

    255 Signatures ............................................................................................................................................ 32

    256-300 (Reserved) ........................................................................................................................................ 32

    PART 3 ADVERSE DECISIONS

    301 General Information ............................................................................................................................ 33

    302 Mediation ............................................................................................................................................ 36

    303 Arbitration ........................................................................................................................................... 37

    304 Judicial Review ................................................................................................................................... 39

    305 GFP Disputes ...................................................................................................................................... 40

    306-400 (Reserved) ........................................................................................................................................ 42

    PART 4 PERSONS

    Section 1 Eligibility

    401 Eligible Persons .................................................................................................................................. 43

    402 Ineligible Persons ................................................................................................................................ 44

    403-410 (Reserved) ........................................................................................................................................ 45

    Section 2 Reporting and Verification Requirements

    411 Identification Number(s) ..................................................................................................................... 46

    412 Substantial Beneficial Interest (SBI) .................................................................................................. 52

    413 Unreported or Incorrect Identification Numbers ................................................................................ 53

    414 Reported, Unreported or Incorrect SBI Identification Numbers ........................................................ 54

    415 Correction After Discovery ................................................................................................................. 55

    416-430 (Reserved) ........................................................................................................................................ 55

  • June 2013 FCIC 18010 TC-3

    Section 3 Person Types

    431 Death, Disappearance or Judicial Declaration of Incompetence ........................................................ 56

    432 Other Causes ....................................................................................................................................... 58

    433-450 (Reserved) ....................................................................................................................................... 59

    451 Individuals........................................................................................................................................... 60

    452 Landlord-Tenant ................................................................................................................................. 63

    453 Partnerships ......................................................................................................................................... 64

    454 Joint Ventures ..................................................................................................................................... 64

    455 Corporations ........................................................................................................................................ 66

    456 Limited Liability Companies (LLC) ................................................................................................... 66

    457 Estates ................................................................................................................................................. 67

    458 Trusts................................................................................................................................................... 67

    459 Other Persons ...................................................................................................................................... 69

    460-500 (Reserved) ........................................................................................................................................ 70

    PART 5 ENDORSEMENTS AND OPTIONS

    501 General Information ............................................................................................................................ 71

    502 Catastrophic Risk Protection Endorsement ........................................................................................ 71

    503 High-Risk Land Exclusion Option...................................................................................................... 72

    504 Hail and Fire Exclusion Option .......................................................................................................... 74

    505 Apple Fresh Fruit Quality Adjustment Option ................................................................................... 76

    506 Wheat or Barley Winter Coverage Endorsement................................................................................ 76

    507 Dry Pea WCO ..................................................................................................................................... 78

    508 Fresh Market Sweet Corn Minimum Value Option ........................................................................... 79

    509 Fresh Market Pepper Minimum Value Option ................................................................................... 80

    510 Fresh Market Tomato (Dollar Plan) Minimum Value Option ............................................................ 82

    511 Mint Winter Coverage Option ............................................................................................................ 82

    512 Northern Potato Policy Endorsements ................................................................................................ 84

    513 Pear Quality Adjustment Endorsement ............................................................................................... 89

    514 Table Grape Protective Cover Option ................................................................................................ 90

    515 MBPQE ............................................................................................................................................... 91

    516 Option A of the MBPQE..................................................................................................................... 93

    517 Option B of the MBPQE ..................................................................................................................... 97

    518 Contract Price Addendum (CPA) ....................................................................................................... 102

  • June 2013 FCIC 18010 TC-4

    519-600 (Reserved) ........................................................................................................................................ 106

    PART 6 PLANTING PROVISIONS

    Section 1 Replanting

    601 General Information ............................................................................................................................ 107

    602 Replanting Payments .......................................................................................................................... 107

    603 Limitations .......................................................................................................................................... 107

    604 Eligible Crops ..................................................................................................................................... 108

    Section 2 Late Planting

    605 General LP Provisions ........................................................................................................................ 109

    606 Crop LP Guidelines............................................................................................................................. 110

    Section 3 Prevented Planting

    607 General PP Information ...................................................................................................................... 112

    608 PP Coverage Levels ............................................................................................................................ 113

    609 PP Payment Limitations ...................................................................................................................... 113

    610 Double Cropped .................................................................................................................................. 115

    611 Double Cropped Qualifications .......................................................................................................... 116

    612 Second Crop ........................................................................................................................................ 117

    613 Reporting PP Acreage ......................................................................................................................... 117

    614 Eligible PP Acreage ............................................................................................................................ 117

    615 Crops Without an Adequate PP Base.................................................................................................. 120

    616 PP Payments........................................................................................................................................ 121

    617 Acreage for which PP Coverage is Not Provided ............................................................................... 123

    618-700 (Reserved) ........................................................................................................................................ 126

    PART 7 UNITS

    Section 1 Basic Unit

    701 Availability ......................................................................................................................................... 127

    702 Premium Discount .............................................................................................................................. 127

    703 Tobacco ............................................................................................................................................... 127

    704 CAT Endorsement .............................................................................................................................. 128

    705 APH Database Establishment ............................................................................................................. 128

    706 APH Databases Below BU Level ....................................................................................................... 128

    707 Commingled Acres and Production .................................................................................................... 128

    708-720 (Reserved) ........................................................................................................................................ 129

  • June 2013 FCIC 18010 TC-5

    Section 2 Optional Unit

    721 Availability ......................................................................................................................................... 130

    722 APH Database Below OU Level......................................................................................................... 134

    723 Combination of OUs ........................................................................................................................... 134

    724 OU Qualifications ............................................................................................................................... 135

    725 Production Evidence ........................................................................................................................... 136

    726 Assigned Yields .................................................................................................................................. 138

    727 Determining OUs ................................................................................................................................ 138

    728-730 (Reserved) ........................................................................................................................................ 138

    Section 3 Enterprise Unit

    731 Availability ......................................................................................................................................... 139

    732 EU Election ......................................................................................................................................... 139

    733 EU Qualifications................................................................................................................................ 139

    734 Reporting Requirements ..................................................................................................................... 140

    735 Discounts............................................................................................................................................. 141

    736 Added Land and New Crop P/T.......................................................................................................... 142

    737 Assigned Unit Structure ...................................................................................................................... 142

    738 Assigned Yields .................................................................................................................................. 142

    739 Cups .................................................................................................................................................... 142

    740-744 (Reserved) ........................................................................................................................................ 142

    Section 4 Whole Farm Unit

    745 Availability ......................................................................................................................................... 143

    746 WU Election........................................................................................................................................ 143

    747 WU Qualifications .............................................................................................................................. 143

    748 Separate Administrative Fees ............................................................................................................. 144

    749 Reporting Requirements ..................................................................................................................... 144

    750 Unit Structure Assignment .................................................................................................................. 146

    751-760 (Reserved) ........................................................................................................................................ 146

  • June 2013 FCIC 18010 TC-6

    Section 5 Unit Numbering

    761 General Information ............................................................................................................................ 147

    762 The Structure Code ............................................................................................................................. 147

    763 Unit Number ....................................................................................................................................... 147

    764 Unit Numbering Constancy ................................................................................................................ 149

    765 Unit Number Consistency ................................................................................................................... 149

    766 Master Yield Summary APH Database .............................................................................................. 149

    767-772 (Reserved) ........................................................................................................................................ 150

    Section 6 Sections, Section Equivalents, and FSA FNs

    773 Provisions ............................................................................................................................................ 151

    774 Unit Division Option Illinois, Indiana, Ohio, and Texas ................................................................. 153

    775-780 (Reserved) ........................................................................................................................................ 155

    Section 7 Combining and Dividing BUs, OUs, EUs, and WUs

    781 General Information ............................................................................................................................ 156

    782 Establishing Separate APH Databases ................................................................................................ 156

    783 Maintaining Separate APH Databases Within BUs, EUs, or WUs .................................................... 157

    784 Situations that Require Combining and Dividing APH Databases ..................................................... 158

    785 Agreements to Combine OUs for Category B Crops.......................................................................... 159

    786 Combining APH Databases ................................................................................................................ 162

    787 Dividing APH Yield History for Category B Crops ........................................................................... 164

    788 Dividing a BU into Additional BUs or OUs, or OUs into Further OUs for Category C Crops ......... 168

    789 Adding Land to an Existing Unit for Category B Crops .................................................................... 169

    790 Retaining Yield History for the Same Land ....................................................................................... 169

    791-800 (Reserved) ........................................................................................................................................ 170

    PART 8 UNDERWRITING RULES FOR SPECIFIC PRACTICES

    Section 1: IRR Practice

    801 IRR Practice Guidelines ...................................................................................................................... 171

    802 Insurable Acreage ............................................................................................................................... 171

    803 Applicable Terms ................................................................................................................................ 171

    804 Factors to Consider for IRR Practice Reporting and Coverage .......................................................... 172

    805 Failure to Carry Out Good IRR Practice............................................................................................. 173

    806 IRR Practice Guidelines for PP........................................................................................................... 173

    807 Determined IRR Yields....................................................................................................................... 174

  • June 2013 FCIC 18010 TC-7

    808 Reporting Production and Establishing APH Databases for IRR and NI Acreage ............................. 178

    809 Special Requirements for Center Pivot Irrigation Systems ................................................................ 178

    810-820 (Reserved) ........................................................................................................................................ 180

    Section 2 SF Practice

    821 General Information and Insurability.................................................................................................. 181

    822 SF APH Database Instructions............................................................................................................ 184

    823-844 (Reserved) ........................................................................................................................................ 185

    Section 3 Skip-Row Planted Crops

    845 Insurability .......................................................................................................................................... 186

    846 Skip-Row Planted Corn ...................................................................................................................... 186

    847 Skip-Row Planted Grain Sorghum...................................................................................................... 189

    848 Skip-Row Planted Cotton and ELS Cotton ......................................................................................... 190

    849 Percent Planted Factors ....................................................................................................................... 194

    850-860 (Reserved) ........................................................................................................................................ 194

    Section 4 Organic Practice

    861 Conditions of Insurance ...................................................................................................................... 195

    862 Organic Practice Requirements........................................................................................................... 197

    863 Maintaining Organic Records ............................................................................................................. 199

    864 Organic Certification and Accreditation Issues .................................................................................. 200

    865 Additional Policy Elements for Organic Acreage .............................................................................. 202

    866 MY Instructions .................................................................................................................................. 204

    867 APH Database Reporting Instructions for Acreage with an Organic Plan ......................................... 204

    868 APH Database Reporting Instructions for Acreage without an Organic Plan .................................... 208

    869-900 (Reserved) ........................................................................................................................................ 210

    PART 9 ACREAGE REPORT

    Section 1 General Requirements

    901 General Information ............................................................................................................................ 211

    902 Filing Requirements ............................................................................................................................ 211

    903 Verifying the Acreage Reported ......................................................................................................... 212

    904 Inaccurate Acreage Reports ................................................................................................................ 212

    905-910 (Reserved) ........................................................................................................................................ 212

    Section 2 Acreage Report Elements

    911 Required Elements .............................................................................................................................. 213

  • June 2013 FCIC 18010 TC-8

    912 Date the Insured Crop was Planted on the Unit .................................................................................. 214

    913 Prevented Planting Acreage ................................................................................................................ 215

    914 Insurable Acreage ............................................................................................................................... 215

    915 Uninsurable Acreage ........................................................................................................................... 216

    916 Uninsured Acreage of an Insured Crop .............................................................................................. 217

    917 Unreported Acreage or Units .............................................................................................................. 218

    918 Zero Acreage Report for Unit, or Zero Acreage Report for County .................................................. 218

    919 Preliminary Acreage Reports .............................................................................................................. 218

    920 Reporting Irrigated Practices .............................................................................................................. 218

    921-930 (Reserved) ........................................................................................................................................ 218

    Section 3 Acreage Report Revisions

    931 Acceptable Revisions .......................................................................................................................... 219

    932 Revisions to Reduce Premium for Acreage Destroyed Prior to Harvest (Short Rate) ....................... 220

    933 Measurement Services Requested for Acreage Reports ..................................................................... 220

    934-1000 (Reserved) ..................................................................................................................................... 222

    PART 10 PRODUCTION REPORT

    1001 General Information ............................................................................................................................ 223

    1002 Acceptable Production Report ............................................................................................................ 224

    1003 Production Reporting Requirements ................................................................................................... 225

    1004 Production Included on Production Report and in the APH Database ............................................... 227

    1005 Production Included on Production Report but not in the APH Database .......................................... 229

    1006 Continuity ........................................................................................................................................... 231

    1007 Break in Continuity ............................................................................................................................. 232

    1008 Required Elements of Production Report ........................................................................................... 233

    1009 Acceptable Production Evidence and Record Maintenance ............................................................... 235

    1010 Verification, Review and Correction .................................................................................................. 235

    1011 Production ........................................................................................................................................... 236

    1012 Multi-Year Production Report ............................................................................................................ 238

    1013-1100 (Reserved) .................................................................................................................................... 238

  • June 2013 FCIC 18010 TC-9

    PART 11 PRODUCTION EVIDENCE

    Section 1 General Information

    1101 Acceptable Production Evidence ........................................................................................................ 239

    1102 Certifying Production.......................................................................................................................... 239

    1103 Unit of Measure and Production Adjustments .................................................................................... 240

    1104 Record Retention Period ..................................................................................................................... 241

    1105-1114 (Reserved) ................................................................................................................................... 241

    Section 2 Acceptable Verifable Records

    1115 Crops Requiring Verifiable Records ................................................................................................... 242

    1116 Records of Production Commercially Sold To or Stored By a Disinterested Third-Party ................. 242

    1117 Claim for Indemnity ............................................................................................................................ 243

    1118 FSA or CCC Verified Documents ...................................................................................................... 243

    1119 Authorized AIP or FSA Personnel Appraisals of Unharvested Acreage ............................................ 243

    1120 Authorized AIP or FSA Personnel Measurement of Farm Stored Production ................................... 245

    1121 Pre-harvest Appraisal and Other Record Types.................................................................................. 245

    1122-1130 (Reserved) ................................................................................................................................... 247

    Section 3 Acceptable Farm Management Records

    1131 Crops that Qualify for Farm Management Records ............................................................................ 248

    1132 Measurement of Farm Stored Production by Insured ......................................................................... 248

    1133 Automated Yield Monitoring Systems ............................................................................................... 249

    1134 Livestock Feeding Records ................................................................................................................. 250

    1135 Field Harvest Records ......................................................................................................................... 251

    Section 4 Records from Vertically Integrated Producers

    1136 Vertically Integrated Producer Defined .............................................................................................. 252

    1137 Acceptable Records for Vertically Integrated Producers .................................................................... 252

    1138 Required Documentation .................................................................................................................... 252

    1139-1200 (Reserved) ................................................................................................................................... 252

    PART 12 APH DATABASES

    Section 1 General Information

    1201 APH Database Requirements .............................................................................................................. 253

    1202 The Base Period ................................................................................................................................... 254

    1203 Types of Yields ................................................................................................................................... 254

    1204 Yield Descriptors ................................................................................................................................ 255

  • June 2013 FCIC 18010 TC-10

    1205 Required Separate APH Database ...................................................................................................... 256

    1206 Production or Acreage Not to be Included ......................................................................................... 258

    1207 Transfer of APH Data ......................................................................................................................... 258

    1208 Use of Another Persons Acreage and Production History ................................................................ 260

    1209 Use of APH When Insureds Change or Land is Transferred to Another Person ................................ 262

    1210 APH Database Instructions ................................................................................................................. 265

    1211 Impact of Combining and Dividing .................................................................................................... 266

    1212-1220 (Reserved) ................................................................................................................................... 266

    Section 2 APH Databases and Yield Determinations Combined and Divided

    1221 General Rules for Combining and Dividing APH Databases ............................................................. 267

    1222 Combining APH Databases ................................................................................................................ 268

    1223 Dividing APH Databases .................................................................................................................... 269

    1224 No Actual or Assigned Yields ............................................................................................................ 274

    1225-1240 (Reserved) ................................................................................................................................... 274

    Section 3 APH Yield Adjustment

    1241 Yield Adjustment General Information .............................................................................................. 275

    1242 Election of APH Yield Adjustment .................................................................................................... 275

    1243 Cancelling APH Yield Adjustments ................................................................................................... 275

    1244 T-Yields Used for YA ......................................................................................................................... 276

    1245 Calculating Approved APH Yields When YA is Elected ................................................................... 277

    1246 Determining Premium Rates ............................................................................................................... 280

    1247-1250 (Reserved) ................................................................................................................................... 280

    Section 4 Yield Reductions

    1251 General Information ............................................................................................................................ 281

    1252 General Rules ...................................................................................................................................... 282

    1253 Excessive Actual Yields ..................................................................................................................... 284

    1254 Inconsistent Approved APH Yields and Insured Acreage Limitations .............................................. 287

    1255 Different Production Methods ............................................................................................................ 292

    1256-1260 (Reserved) ................................................................................................................................... 294

    Section 5 Reviewing and Correcting APH Yields

    1261 Review Requirements ......................................................................................................................... 295

    1262 Correcting APH Yields ....................................................................................................................... 295

    1263 Tolerances ........................................................................................................................................... 296

  • June 2013 FCIC 18010 TC-11

    1264-1300 (Reserved) .................................................................................................................................... 298

    PART 13 RESERVED

    1301-1400 (Reserved) .................................................................................................................................... 299

    PART 14 CATEGORY B CROP PROCEDURES

    Section 1 APH Database

    1401 General Information ............................................................................................................................ 301

    1402 Methods to Establish an APH Database ............................................................................................. 301

    1403-1406 (Reserved) .................................................................................................................................... 305

    Section 2 T-Yields

    1407 General Information ............................................................................................................................ 306

    1408 T-Yield Methods ................................................................................................................................. 306

    1409-1412 (Reserved) .................................................................................................................................... 307

    Section 3 Reporting Production for P/T/TMAs

    1413 Applicability ....................................................................................................................................... 308

    1414 Separate Production ............................................................................................................................ 308

    1415 Separating Commingled Production ................................................................................................... 308

    1416-1420 (Reserved) ................................................................................................................................... 309

    Section 4 Yield Limitations

    1421 General Information ............................................................................................................................ 310

    1422 Cups .................................................................................................................................................... 310

    1423 Yield Floors ........................................................................................................................................ 311

    1424 Yield Limitation Calculations ............................................................................................................. 311

    1425 Determining Premium Rates ............................................................................................................... 312

    1426-1430 (Reserved) .................................................................................................................................... 312

    Section 5 New Producer

    1431 New Producer Qualifications .............................................................................................................. 313

    1432 Deadline .............................................................................................................................................. 317

    1433 Verification ......................................................................................................................................... 317

    1434 Documentation .................................................................................................................................... 317

    1435 Approved APH Yield Determination.................................................................................................. 318

    1436 Added Land and New Crop P/T APH Database ................................................................................. 319

    1437 For Subsequent Crop Years ................................................................................................................ 319

  • June 2013 FCIC 18010 TC-12

    Section 6 RO Determined Yields

    1438 General Information ............................................................................................................................ 320

    1439 Verifier Responsibilities ..................................................................................................................... 320

    1440-1446 (Reserved) ................................................................................................................................... 320

    Section 7 MYs

    1447 General Information ............................................................................................................................ 321

    1448 Initial MY Approval Authorities ........................................................................................................ 321

    1449 Deadlines............................................................................................................................................. 322

    1450 General Information ............................................................................................................................ 323

    1451 Cancelling MYs .................................................................................................................................. 323

    1452 Requirements for Establishing Initial MY(s) ...................................................................................... 323

    1453 Production Reporting Requirements ................................................................................................... 325

    1454 Establishing a MY............................................................................................................................... 326

    1455 MY Summary APH Database Unit Number ....................................................................................... 329

    1456 Updating Established MY(s)............................................................................................................... 329

    1457 Yield Limitation Provisions (Cup Only)............................................................................................. 330

    1458 Yield Adjustment ................................................................................................................................ 330

    1459-1462 (Reserved) ................................................................................................................................... 330

    Section 8 Acreage Emerging from a USDA Program and New Breaking

    1463 Acreage Emerging From a USDA Program ....................................................................................... 331

    1464 New Breaking Acreage ....................................................................................................................... 333

    1465-1470 (Reserved) ................................................................................................................................... 335

    Section 9 Added Land

    1471 General Information ............................................................................................................................ 336

    1472 AIP Responsibilities............................................................................................................................ 336

    1473 APH Databases for Added Land ......................................................................................................... 336

    1474 Methods for Determining Approved APH Yields for Added Land .................................................... 337

    1475 Crop Land Acreage Limitations.......................................................................................................... 343

    1476 Submission of Added land/New Crop/P/T Request for RO Underwriting Review ............................ 350

    1477 Added Land/New Crop/P/T Request and Supporting Documentation ............................................... 350

    1478 AIP Review and Submission of Added Land/New Crop/P/T Request ............................................... 351

    1479 AIP Review and Verification Prior to Payment of Indemnity ............................................................ 352

    1480 Added Land Yield Descriptors and Indicators.................................................................................... 352

  • June 2013 FCIC 18010 TC-13

    1481-1486 (Reserved) ................................................................................................................................... 352

    Section 10 Yield Determination that do not Qualify as Added Land

    1487 Added Crop/P/T/ APH Databases ....................................................................................................... 353

    1488 New Crop/P/T APH Databases ........................................................................................................... 353

    1489-1500 (Reserved) ................................................................................................................................... 354

    PART 15 CATEGORY C CROP PROCEDURES

    Section 1 General Information

    1501 Background ......................................................................................................................................... 355

    1502 Insured Crop........................................................................................................................................ 355

    1503 Crops with Minimum Age and/or Production Requirements ............................................................. 356

    1504-1506 (Reserved) ................................................................................................................................... 359

    Section 2 Acreage

    1507 General Information ............................................................................................................................ 360

    1508 Acceptable Forms of Acreage Measurement ...................................................................................... 360

    1509 Acreage Measurement Methods ......................................................................................................... 361

    1510 Acreage Adjustments .......................................................................................................................... 361

    1511 Prior Acreage Removed ...................................................................................................................... 363

    1512-1516 (Reserved) .................................................................................................................................... 364

    Section 3 Age/Leaf Year Determinations

    1517 All Crops, except Citrus and Macadamia ........................................................................................... 365

    1518 Arizona-California Citrus and Texas Citrus Fruit .............................................................................. 365

    1519 Macadamia Nuts ................................................................................................................................. 366

    Section 4 Producer's Pre-Acceptance Worksheet (PAW)

    1520 General Information ............................................................................................................................ 367

    1521 PAW Elements .................................................................................................................................... 367

    1522 AIP PAW Review ............................................................................................................................... 371

    1523 PAW Triggers a PAIR ........................................................................................................................ 372

    1524-1536 (Reserved) ................................................................................................................................... 372

  • June 2013 FCIC 18010 TC-14

    Section 5 Perennial Crop Pre-Acceptance Inspection Report (PAIR)

    1537 General Information ............................................................................................................................ 373

    1538 PAIR Requirement .............................................................................................................................. 373

    1539 PAIR Waivers ..................................................................................................................................... 374

    1540 PAIR Deadline .................................................................................................................................... 374

    1541 PAIR Completion Requirements ........................................................................................................ 374

    1542 PAIR Elements.................................................................................................................................... 375

    Section 6 Crop Addendum Worksheet(s) (CAW)

    1543 General Information ............................................................................................................................ 381

    1544-1549 (Reserved) ................................................................................................................................... 381

    Section 7 APH Database

    1550 APH Database Establishment ............................................................................................................. 382

    1551 Block Reporting .................................................................................................................................. 382

    1552 Separate P/T/TMA/Other Characteristics ........................................................................................... 382

    1553 Commingled Production ..................................................................................................................... 383

    1554 Organic Perennials .............................................................................................................................. 384

    1555 Acreage Less than a Tenth of an Acre ................................................................................................ 384

    1556 APH Database Establishment Methods .............................................................................................. 384

    1557 Multi-Purpose Production and Yield Worksheet ................................................................................ 386

    1558 T-Yield Instructions ............................................................................................................................ 387

    1559 Weighted Average Age/Density ......................................................................................................... 387

    1560 Added Insurable Acreage .................................................................................................................... 388

    1561 Added Land/New Producers ............................................................................................................... 391

    1562 APH Database Tests for High Variability of Actual Yields ............................................................... 392

    1563 Approved APH Yield .......................................................................................................................... 398

    1564-1570 (Reserved) ................................................................................................................................... 398

    Section 8 Yield Information

    1571 Yield Indicators ................................................................................................................................... 399

    1572 Yield Adjustments .............................................................................................................................. 399

    1573 Yield Limitations ................................................................................................................................ 399

    1574-1580 (Reserved) ................................................................................................................................... 401

    Section 9 RO Determined Yields

    1581 Situations for a RO Determined Yield Request .................................................................................. 402

  • June 2013 FCIC 18010 TC-15

    1582 Verifier Responsibilities ..................................................................................................................... 403

    1583-1600 (Reserved) ................................................................................................................................... 404

    PART 16 ADDITIONAL PROVISIONS BY CROP

    Section 1 Category B Crops

    1601 General Information ............................................................................................................................ 405

    1602 Cabbage (Fresh Market and Processing) ............................................................................................ 405

    1603 Course Grains: Corn, Soybeans, and Grain Sorghum........................................................................ 407

    1604 Cotton and ELS Cotton ....................................................................................................................... 413

    1605 Cultivated Wild Rice........................................................................................................................... 414

    1606 Dry Beans............................................................................................................................................ 415

    1607 Dry Peas .............................................................................................................................................. 418

    1608 Forage Production ............................................................................................................................... 420

    1609 Green Peas .......................................................................................................................................... 422

    1610 Mint ..................................................................................................................................................... 423

    1611 Millet ................................................................................................................................................... 423

    1612 Mustard ............................................................................................................................................... 424

    1613 Onions ................................................................................................................................................. 424

    1614 Peanuts ................................................................................................................................................ 425

    1615 Popcorn ............................................................................................................................................... 426

    1616 Potatoes ............................................................................................................................................... 427

    1617 Processing Beans ................................................................................................................................ 428

    1618 Processing Sweet Corn ....................................................................................................................... 429

    1619 Rice ..................................................................................................................................................... 429

    1620 Safflower, Sunflower Seed, and Canola/Rapeseed ............................................................................. 430

    1621 Small Grains: Wheat, Barley, Oats, Rye, Buckwheat, and Flax ........................................................ 432

    1622 Sugar Beets ......................................................................................................................................... 436

    1623 Sugarcane ............................................................................................................................................ 437

    1624 Tobacco ............................................................................................................................................... 439

    1625 Tomatoes, Fresh Market Guaranteed Production ............................................................................... 441

    1626 Tomatoes Processing .......................................................................................................................... 441

    1627-1640 (Reserved) ................................................................................................................................... 441

  • June 2013 FCIC 18010 TC-16

    Section 2 Category C Crops

    1641 General Information ............................................................................................................................ 442

    1642 Almonds .............................................................................................................................................. 442

    1643 Apples ................................................................................................................................................. 442

    1644 Avocados, Florida ............................................................................................................................... 443

    1645 Blueberries .......................................................................................................................................... 444

    1646 Citrus ................................................................................................................................................... 444

    1647 Cranberries .......................................................................................................................................... 446

    1648 Figs ...................................................................................................................................................... 446

    1649 Grapes ................................................................................................................................................. 447

    1650 Table Grapes ....................................................................................................................................... 447

    1651 Macadamia Nuts ................................................................................................................................. 448

    1652 Peaches ................................................................................................................................................ 448

    1653 Pears .................................................................................................................................................... 449

    1654 Prunes .................................................................................................................................................. 449

    1655 Stonefruit............................................................................................................................................. 450

    1656 Walnuts ............................................................................................................................................... 451

    1657-1700 (Reserved) ................................................................................................................................... 452

    PART 17 CATEGORY D CROPS

    Section 1 Insurability

    1701 General Information ............................................................................................................................ 453

    1702 Production Reports.............................................................................................................................. 453

    1703 OU for Raisins .................................................................................................................................... 453

    1704-1706 (Reserved) ................................................................................................................................... 453

    Section 2 Dollar Plans of Insurance

    1707 PAW .................................................................................................................................................... 454

    1708 Block Map ........................................................................................................................................... 458

    1709 PAIR Information ............................................................................................................................... 458

    1710 Macadamia Orchard PAIR and Plat Map ........................................................................................... 469

    1711-1720 (Reserved) .................................................................................................................................... 472

    Section 3 RO Determined Yield Request

    1721 Florida Citrus RO Determined Yield Request .................................................................................... 473

    1722-1724 (Reserved) .................................................................................................................................... 473

  • June 2013 FCIC 18010 TC-17

    Section 4 Dollar Plans of Insurance Age or Leaf Determinations

    1725 General Information ............................................................................................................................ 474

    1726-1730 (Reserved) .................................................................................................................................... 475

    Section 5 Dollar Plans of Insurance Acreage Information

    1731 General Information ............................................................................................................................ 476

    1732 Excluded Acreage ............................................................................................................................... 478

    1733 Florida Citrus Fruit Liability Adjustment Determination ................................................................... 479

    1734 Macadamia Trees Liability Adjustment Determination ..................................................................... 480

    1735-1740 (Reserved) .................................................................................................................................... 480

    Section 6 Dollar Plans of Insurance Additional Records and Provisions

    1741 General Information ............................................................................................................................ 481

    1742 Florida Citrus Fruit Commodities 2014 Conversion .......................................................................... 481

    Section 7 Yield Based Dollar Amount of Insurance Plans

    1743 General Information ............................................................................................................................ 483

    1744 Different Coverage Levels .................................................................................................................. 483

    1745 Units .................................................................................................................................................... 483

    1746 County Yields for Hybrid Seeds ......................................................................................................... 483

    1747 Amount of Insurance........................................................................................................................... 483

    1748 Minimum Contract Payment ............................................................................................................... 484

    1749 Yield Based Factor for Seed Companies ............................................................................................ 484

    1750 Approved Yields ................................................................................................................................. 484

    1751 Value per Bushel ................................................................................................................................. 485

    1752 Hybrid Seed Corn or Hybrid Sorghum Seed Approved Yield Requests ............................................ 485

    1753-1800 (Reserved) .................................................................................................................................... 486

    PART 18 RESERVED

    1801-1900 (Reserved) .................................................................................................................................... 487

    PART 19 RESERVED

    1901-2000 (Reserved) .................................................................................................................................... 489

  • June 2013 FCIC 18010 TC-18

    PART 20 RO UNDERWRITING

    Section 1 Determined Yields, MY and UG

    2001 Category B Crops ................................................................................................................................ 491

    2002 Category C Crops ................................................................................................................................ 493

    2003 Category D Crops ............................................................................................................................... 495

    2004-2010 (Reserved) .................................................................................................................................... 496

    Section 2 Added Land/New Crop/P/T

    2011 When RMA RO Will Perform an Underwriting Review.................................................................... 497

    2012 RO Responsibilities ............................................................................................................................ 497

    2013 RMA RO Review ................................................................................................................................ 497

    2014-3000 (Reserved) .................................................................................................................................... 498

    EXHIBITS

    EXHIBIT 1 ACRONYMS AND ABBREVIATIONS

    A. Acronyms and Abbreviations ............................................................................................................. 499

    EXHIBIT 2 DEFINITIONS AND ADMINISTRATIVE SERVICING REQUIREMENTS

    A. Definitions........................................................................................................................................... 503

    B. Crop Policy Information ..................................................................................................................... 521

    C. Rounding Rules Pertaining to Program Administration ..................................................................... 533

    D. Written Agreement Deadlines and Required Documentation ............................................................ 534

    E. Premium Adjustment Table ................................................................................................................ 539

    EXHIBIT 3 ADVERSE DECISIONS

    (Reserved) ...................................................................................................................................................... 541

    EXHIBIT 4 PERSONS

    A. Person Types and Documentation ...................................................................................................... 543

    B. Qualified Alien Status Documentation ............................................................................................... 545

    EXHIBIT 5 ENDORSEMENTS AND OPTIONS

    A. Endorsements and Options Chart........................................................................................................ 551

    B. Malting Barley Option A and Option B Worksheet Purpose ............................................................. 558

    C. Malting Barley Option A and Option B Worksheet Data Elements and Required Entries ................ 558

    D. Additional Value Malt Barley Price Election ..................................................................................... 559

    E. Malting Barley Option A and B APH/Bushel Factor and Weighted Average Price Example ........... 559

    F. Wheat or Barley and Dry Pea Winter Coverage Endorsement Flow Chart ........................................ 559

  • June 2013 FCIC 18010 TC-19

    EXHIBIT 6 PLANTING PROVISIONS

    (Reserved) ...................................................................................................................................................... 562

    EXHIBIT 7 UNITS

    A. Examples of Unit Numbering when Units Change ............................................................................. 563

    B. Combining Units and APH Databases ................................................................................................ 564

    C. Dividing Units Examples .................................................................................................................... 570

    D. Additional Bean Procedure for Units and Yields by Types ................................................................ 573

    EXHIBIT 8 UNDERWRITING RULES FOR SPECIFIC PRACTICES

    A. Summerfallow Database ..................................................................................................................... 575

    B. Skip-Row Planted Cotton and ELS Cotton Overview ........................................................................ 577

    C. FSA Determination for 30/50 Planting Pattern ................................................................................... 577

    D. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to Arkansas,

    Louisiana, Missouri, and All States East of those States .................................................................... 577

    E. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to New Mexico

    and the Following Counties in Texas: Baylor, Concho, Runnels, Schleicher, Shackleford, Sutton, Taylor,

    Throckmorton, Valverde, Wilbarger and All Counties West of Those Counties579

    F. Percent Planted Factor, Yield Conversion Factor, and PASS Skip-Row Code Applicable to Kansas,

    Oklahoma, and All Counties in Texas for Which Table 2 Does Not Apply ...................................... 580

    G. Determining Planted Acres Using FSA Percent Planted Factor and Calculating Per Acre Yield Using

    Skip-Row Yield Conversion Factor .................................................................................................... 583

    H. Commingled Production from Irrigated Solid-Planted and Non-Irrigated Skip-Row Planted Cotton

    ............................................................................................................................................................. 584

    I. Category B Crop APH Database Examples for Transitioning under an Organic Plan ....................... 587

    J. Example for Initial Year of Certified Organic APH Database ........................................................... 601

    K. APH Databases for Transitional and Certified Organic-Drift ............................................................ 603

    L. Examples of Transitioning without an Organic Plan and Other Exceptions ...................................... 605

    M. 2014 Carryover APH Databases Organic Determined Yield Examples ............................................. 614

    EXHIBIT 9 ACREAGE REPORT

    (Reserved) ...................................................................................................................................................... 617

    EXHIBIT 10 PRODUCTION REPORT

    A. Soybeans Example of Completed Production Report for Production Reporting Requirements ........ 619

    B. Corn Example of Completed Production Report for Production Reporting Requirements ................ 620

  • June 2013 FCIC 18010 TC-20

    EXHIBIT 11 PRODUCTION EVIDENCE

    (Reserved) ...................................................................................................................................................... 621

    EXHIBIT 12 APH DATABASE

    A. Examples of Completed APH Databases-New Insured ...................................................................... 623

    B. Examples of Completed APH Databases-New Producer ................................................................... 624

    C. Examples of Completed APH Databases Carryover Insured ........................................................... 625

    D. Examples of Completed APH Databases-Zero-Acreage Reported .................................................... 626

    E. Examples of Completed APH Databases-Assigned Yield.................................................................. 627

    F. Examples of Completed APH Databases-Category C Crops ............................................................. 628

    G. Yield Determinations--Converting an Existing Practice to a New Practice ....................................... 629

    H. Yield DeterminationsCombining Two Practices into a New Practice ............................................ 630

    I. Yield Determinations-Dividing a Practice into Two Practices Using Apportionment ....................... 631

    J. Yield Determinations-Dividing a Practice into Two Practices Using Attribution ............................. 633

    K. Yield Determinations-Dividing a Practice into Two Practice Using Recertification ......................... 634

    L. Yield Determinations-Dividing APH Databases by Recertification .................................................. 635

    M. Yield Determinations-Dividing APH Databases by Apportioning Commingled Production ............ 639

    N. Yield Determinations-Dividing APH Databases by Attributing Acres and Production ..................... 644

    O. Yield Determinations-Dividing APH Databases Using All 3 Methods ............................................. 645

    P. Yield Determinations-Dividing an Added Land APH Database ........................................................ 647

    Q. Dividing an APH Database when a Type is Divided into More than Two Types .............................. 650

    R. Dividing an APH Database When Only One Type has been Produced ............................................. 656

    S. Retaining 10 Crop Years of APH History .......................................................................................... 657

    T. Dividing Previously Established APH Databases for P/Ts with the Same T-Yield ........................... 658

    U. Yield Indicators ................................................................................................................................... 660

    V. Yield Descriptors ................................................................................................................................ 662

    W. APH Yield Limitations/Adjustments- Carryover Insured with Actual Yields ................................... 668

    X. APH Yield Limitations/Adjustments- No Production Records Initially ............................................ 672

    Y. APH Yield Limitations/Adjustments- Assigned Yield ....................................................................... 672

    Z. Carryover Insured Provided a Production Report Applicable for the 2013 Crop Year ...................... 672

    AA. Yield Adjustment Examples ............................................................................................................... 673

    BB. Yield Reductions- Excessive Actual Yield (Without Verifiable Records) ......................................... 674

    CC. Inconsistent Approved APH Yield and Insured Acreage Limitation ................................................. 675

    DD. Determining Tolerance and Corrective Action ................................................................................... 677

  • June 2013 FCIC 18010 TC-21

    EXHIBIT 13 RESERVED

    (Reserved) ...................................................................................................................................................... 682

    EXHIBIT 14 CATEGORY B CROP PROCEDURES

    A. Category B Crops- Multi-Purpose Production and Yield Worksheet ................................................. 684

    B. Category B Crops-Master Yields ........................................................................................................ 686

    C. Category B Crops-Acreage Emerging from USDA Programs and New Breaking Examples ........... 686

    D. CUP Applicability Chart ..................................................................................................................... 698

    E. Recording and Maintaining SA T-Yields ........................................................................................... 699

    F. Special APH Instructions for Contract Seed Beans and Contract Seed Peas ..................................... 701

    G. Green Pea Example ............................................................................................................................. 708

    H. Potato Example ................................................................................................................................... 710

    I. Forage Production Underwriting Report ............................................................................................ 711

    J. Elements and Information Required for Forage Production Underwriting Repor