7 CFR 457.109 – Sugar Beet Crop Insurance Provisions
The Sugar Beet Crop Insurance Provisions for effective effective for the 2024 and succeeding crop years in states with a November 30 contract change date and for the 2025 and succeeding crop years in all other states, are as follows:
Terms Used In 7 CFR 457.109
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
Both FCIC and Reinsured Policies
Crop year. The period within which the sugar beets are normally grown, which is designated by the calendar year in which the sugar beets are normally harvested.
Early harvest. Harvest of sugar beets prior to full maturity.
Full maturity (date of). The date the sugar beets would have reached full maturity is 45 days prior to the calendar date for the end of the insurance period, unless otherwise specified in the Special Provisions.
Harvest. Topping and lifting of sugar beets in the field.
Percentage of raw sugar. Quantity of sugar determined from analytical tests of samples performed by the processor or other laboratories approved by us.
Planted acreage. In addition to the definition contained in the Basic Provisions, sugar beets must initially be planted in rows, unless otherwise provided by the Special Provisions, actuarial documents, or by written agreement.
Pound. Sixteen (16) ounces avoirdupois.
Practical to replant. In addition to the definition in section 1 of the Basic Provisions, it will not be considered practical to replant if production from the replanted acreage cannot be delivered under the terms of the production agreement, or 30 days after the initial planting date for all counties where a late planting period is not applicable, unless replanting is generally occurring in the area.
Processor. Any business enterprise regularly engaged in processing sugar beets for sugar that possesses all licenses and permits for processing sugar beets required by the State in which it operates, and that possesses facilities, or has contractual access to such facilities, with enough equipment to accept and process the contracted sugar beets within a reasonable amount of time after harvest.
Production agreement. A written contract between you and the processor, executed on or before the acreage reporting date, which is in effect for the crop year, containing at a minimum:
(1) Your commitment to plant, grow, and deliver the sugar beet production to the processor; and
(2) The processor’s commitment to purchase the production stated in the contract.
Production guarantee (per acre):
(1) First stage production guarantee—The final stage production guarantee multiplied by 60 percent.
(2) Final stage production guarantee—The number of pounds of raw sugar determined by multiplying the approved yield per acre by the coverage level percentage you elect.
Raw sugar. Sugar that has not been extracted from the sugar beet.
Ton. Two thousand (2,000) pounds avoirdupois.
In addition to the requirements of section 34 of the Basic Provisions, basic units may be divided into optional units only if you have a production agreement that requires the processor to accept all production from a number of acres specified in the production agreement. Acreage insured to fulfill a production agreement which provides that the processor will accept a designated amount of production or a combination of acreage and production will not be eligible for optional units.
(a) In addition to the requirements of section 3 of the Basic Provisions, you may select only one price election for all the sugar beets in the county insured under this policy.
(b) The production guarantees are progressive by stages and increase at specified intervals to the final stage. The stages are:
(1) First stage, with a guarantee of 60 percent (60%) of the final stage production guarantee, extends from planting until:
(i) The earlier of thinning or 90 days after planting in California; and
(ii) July 1 in all other States.
(2) Final stage, with a guarantee of 100 percent (100%) of the final stage production guarantee, applies to all insured sugar beets that complete the first stage.
(c) The production guarantee will be expressed in pounds of raw sugar.
(d) Any acreage of sugar beets damaged in the first stage to the extent that growers in the area would not normally further care for the sugar beets will be deemed to have been destroyed, even though you may continue to care for it. The production guarantee for such acreage will not exceed the first stage production guarantee.
In accordance with the provisions of section 4 of the Basic Provisions, the contract change date is April 30 preceding the cancellation date for California and November 30 preceding the cancellation date for all other states.
In accordance with section 2 of the Basic Provisions, the cancellation and termination dates are August 31 for California and March 15 for all other states.
In addition to the requirements of section 6 of the Basic Provisions, you must provide a copy of all production agreements to us on or before the acreage reporting date.
In lieu of the premium computation method contained in section 7 of the Basic Provisions, the annual premium amount is computed by multiplying the final stage production guarantee by the price election, the premium rate, the insured acreage, your share at the time of planting, and any applicable premium adjustment factors contained in the actuarial documents.
(a) In accordance with section 8 of the Basic Provisions (§ 457.8), the crop insured will be all the sugar beets in the county for which a premium rate is provided by the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvest as sugar beets;
(3) That are grown under a production agreement and are not excluded from the production agreement at any time during the crop year; and
(4) That are not (unless allowed by the Special Provisions or by written agreement):
(i) Interplanted with another crop;
(ii) Planted into an established grass or legume; or
(iii) Planted prior to submitting a properly completed application.
(b) Sugar beet growers who are also processors may establish an insurable interest if they meet the following requirements:
(1) The processor must meet the definition of a “processor” in section 1 of these Crop Provisions and have a valid insurable interest in the sugar beet crop;
(2) The Board of Directors or officers of the processor must have adopted and executed a corporate resolution that contains essentially the same terms as a production agreement. Such corporate resolution will be considered a production agreement under the terms of the sugar beet crop insurance policy;
(3) The sales records of the processor showing the amount of sugar produced the previous year must be supplied to us to confirm the processor has produced and sold sugar in the past; and
(4) Our inspection of the processing facilities determines that they conform to the definition of “processor” contained in section 1 of these Crop Provisions.
In addition to the provisions of section 9 of the Basic Provisions (§ 457.8):
(a) We will not insure any acreage planted to sugar beets:
(1) The preceding crop year, unless otherwise specified in the Special Provisions for the county;
(2) In any crop year following the discovery of rhizomania on the acreage, unless allowed by the Special Provisions or by written agreement; or
(3) That does not meet the rotation requirements shown in the Special Provisions;
(b) Any acreage of the insured crop damaged before the final planting date, to the extent that growers in the area would normally not further care for the crop, must be replanted unless we agree that replanting is not practical.
In accordance with section 11 of the Basic Provisions, the dates for the end of insurance period are contained in the Special Provisions.
In accordance with the provisions of section 12 of the Basic Provisions (§ 457.8), insurance is provided only against the following causes of loss that occur within the insurance period:
(a) Adverse weather conditions;
(b) Fire;
(c) Insects, but not damage due to insufficient or improper application of pest control measures;
(d) Plant disease, but not damage due to insufficient or improper application of disease control measures;
(e) Wildlife;
(f) Earthquake;
(g) Volcanic eruption; or
(h) Failure of the irrigation water supply, if caused by an insured peril that occurs during the insurance period.
(a) In accordance with section 13 of the Basic Provisions (§ 457.8), a replanting payment is allowed if the crop is damaged by an insurable cause of loss to the extent that the remaining stand will not produce at least 90 percent (90%) of the final stage production guarantee for the acreage and it is practical to replant.
(b) The dollar amount of the replant payment is specified in the Special Provisions.
(c) When sugar beets are replanted using a practice that is uninsurable for an original planting, our liability on the unit will be reduced by the amount of the replanting payment. The premium amount will not be reduced.
In accordance with the requirements of section 14 of the Basic Provisions, representative samples of the unharvested crop must be at least 10 feet wide and extend the entire length of each field in the unit. The samples must not be harvested or destroyed until the earlier of our inspection or 15 days after harvest of the balance of the unit is completed.
(a) We will determine your loss on a unit basis. In the event you are unable to provide separate acceptable production records:
(1) For any optional unit, we will combine all optional units for which acceptable production records were not provided; or
(2) For any basic unit, we will allocate any commingled production to such units in proportion to our liability on the harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we will settle your claim on any unit by:
(1) Multiplying the insured acreage by its respective production guarantee;
(2) Subtracting the total production to count from the result in paragraph (b)(1);
(3) Multiplying the result of paragraph (b)(2) by your price election; and
(4) Multiplying the result of paragraph (b)(3) by your share.
(c) The total production to count from all insurable acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) That is damaged solely by uninsured causes; or
(D) For which you fail to provide acceptable production records that are acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production;
(iv) Only appraised production in excess of the difference between the first and final stage production guarantee for acreage that does not qualify for the final stage guarantee will be counted, except that all production from acreage subject to paragraphs (c)(1)(i) and (ii) of this section will be counted; and
(v) Potential production on insured acreage that you intend to put to another use or abandon, if you and we agree on the appraised amount of production. Upon such agreement, the insurance period for that acreage will end if you put the acreage to another use or abandon the crop. If agreement on the appraised amount of production is not reached:
(A) If you do not elect to continue to care for the crop, we may give you consent to put the acreage to another use if you agree to leave intact, and provide sufficient care for, representative samples of the crop in locations acceptable to us (The amount of production to count for such acreage will be based on the harvested production or appraisals from the samples at the time harvest should have occurred. If you do not leave the required samples intact, or you fail to provide sufficient care for the samples, our appraisal made prior to giving you consent to put the acreage to another use will be used to determine the amount of production to count); or
(B) If you elect to continue to care for the crop, the amount of production to count for the acreage will be the harvested production, or our reappraisal if additional damage occurs and the crop is not harvested; and
(2) All harvested production from the insurable acreage.
(d) Harvested production or unharvested production that is appraised after the earliest delivery date that the processor accepts harvested production and that meets the minimum acceptable standards contained in the production agreement or corporate resolution will be converted to pounds of raw sugar by multiplying the tons of such production by 2,000 and by the average percentage of raw sugar to determine the production to count. The average percentage of raw sugar will be determined from tests performed by the processor or other laboratories approved by us at the time of delivery or sample acquisition (appraisal).
(1) If individual tests of raw sugar content are not made at the time of delivery, the average percent of raw sugar may be based on the results of your previous tests performed by the processor or other laboratories approved by us during the crop year if it is determined that such results are representative of the total production.
(2) If not representative, the average percent of raw sugar will equal the raw sugar content percent shown in the Special Provisions.
(e) Harvested production or unharvested production that is appraised after the earliest delivery date that the processor accepts harvested production and that does not meet the minimum acceptable standards contained in the production agreement or corporate resolution due to an insured peril will be converted to pounds of raw sugar by multiplying the tons of such damaged production by 2,000 and by the average percent of raw sugar contained in such production. The average percentage of raw sugar will be determined from tests performed by the processor or other laboratories approved by us at the time of crop delivery or sample acquisition (appraisal).
(1) If individual tests of raw sugar content are not made at the time of delivery, the average percent of raw sugar may be based on the results of your previous tests performed by the processor or other laboratories approved by us during the crop year if it is determined that such results are representative of the total production.
(2) If not representative, the average percent of raw sugar will equal the raw sugar content percent shown in the Special Provisions.
(f) If harvested production is damaged due to an insurable cause of loss and is rejected by the processor but is sold to a salvage buyer at a reduced price: Compute the pounds of raw sugar of the sold production by dividing the gross dollar amount paid by the salvage buyer by the established price.
(g) If production is damaged due to an insurable cause of loss to the extent that the processor will not accept the production, such as the production did not meet the standards contained in the production agreement; and there are no salvage markets for the production, then there would be no value for production and there would be no production to count provided the production is destroyed in a manner acceptable to us.
Your prevented planting coverage will be a percentage specified in the actuarial documents of your production guarantee for timely planted acreage. If you have additional levels of coverage and pay an additional premium, you may increase your prevented planting coverage if such additional coverage is specified in the actuarial documents.
(a) Applicability:
(1) If provided in the actuarial documents, you may elect the Stage Removal Option.
(2) You must have an additional coverage policy to elect this option.
(3) You must elect this option in writing on or before the sales closing date for the first year it is in effect.
(4) This election is continuous, in accordance with section 2 of the Basic Provisions, unless canceled by the cancellation date. Your election of the Catastrophic Risk Protection Endorsement for your sugar beets in any crop year will be deemed to be cancellation of this option by you.
(5) All insurable acreage of sugar beets in the county will be included under this option unless any acreage is specifically excluded by the Special Provisions.
(b) Insurance Guarantees:
(1) The production guarantee (per acre) will be the final stage guarantee.
(2) The terms and conditions contained in sections 3(b) and 3(d) do not apply under this option.
(c) Premium Adjustment Factor: The premium adjustment factor in the actuarial documents for the stage removal option will apply to the premium computation method in section 7.
(d) Settlement of Claim:
(1) The “respective production guarantee” referenced in section 14(b) will be the final stage guarantee.
(2) The terms and conditions of section 14(c)(1)(iv) do not apply under this option.
(a) Applicability:
(1) If provided in the actuarial documents, you may elect the Early Harvest Adjustment Option to adjust your actual yield(s) for early harvested production.
(2) You must have additional coverage to elect this option.
(3) You must elect this option in writing on or before the sales closing date.
(4) This election is continuous, in accordance with section 2 of the Basic Provisions, unless canceled by the cancellation date. Your election of the Catastrophic Risk Protection Endorsement for your sugar beets will cancel this option.
(b) Insurance Guarantees:
(1) APH database—On or before the production reporting date, you may replace actual yields with early harvest adjusted yields in your APH database, if this option is elected.
(i) The early harvest adjusted yields will be used in the same manner as actual yields for the purpose of calculating the approved yield.
(ii) Once an early harvest adjusted yield replaces an actual yield, the early harvest adjusted yield will remain in effect until such time as that crop year is no longer included in the APH database, this option is canceled in accordance with section 18(a)(4), or the insured chooses to no longer replace that actual yield(s) by the production reporting date.
(iii) If you cancel the option, the actual yield will be used in the APH database.
(2) Premium—Your approved yield will be used to determine your amount of premium owed. The premium will be increased to cover the additional risk associated with the resulting higher yields.
(3) Adjustment—The adjustment will equal an increase of your actual yield by 1 percent per day for each day the sugar beets were harvested prior to full maturity.
(4) Threshold—The adjustment will only be made if the early harvested percentage of insured acreage in the unit meets or exceeds 15 percent, unless otherwise specified in the Special Provisions.
(5) Cap—The adjustment cannot result in a yield greater than the higher of:
(i) Your approved yield from the unit;
(ii) The actual yield of the acreage harvested after full maturity from the unit; or
(iii) The unadjusted actual yield of the early harvested acreage from the unit.
(6) Processor requirement—The adjustment will only be made if:
(i) Early harvest is required in the production agreement; or
(ii) The processor requests early harvest.
(c) Settlement of Claim—If this option is elected, production to count from the unit will be determined by:
(1) The adjustment will be made for any early harvested production if the threshold is exceeded for the unit.
(2) The adjustment will not be made if the sugar beets are damaged by an insurable cause of loss and leaving the crop in the field would reduce production.
(3) If the production agreement does not require early harvest and the processor has not requested early harvest, and the processor:
(i) Accepts the early harvested production, the early harvested production will be counted but no adjustment will apply.
(ii) Does not accept the early harvested production, the production to count will be the production guarantee for the acreage harvested early.