The forage seed crop provisions for the 2015 and succeeding crop years are as follows:
FCIC POLICIES: UNITED STATES DEPARTMENT OF AGRICULTURE, FEDERAL CROP INSURANCE CORPORATION
FORAGE SEED CROP PROVISIONS
Actual value. The dollar value received, or that could be received, for the forage seed if the forage seed production is properly handled in accordance with the requirements in the forage seed contract or the applicable certifying agency's requirements.
Adequate stand. A population of live plants that equals or exceeds the minimum required number of plants per square foot as shown in the actuarial documents.
Amount of insurance. The amount obtained by multiplying the production guarantee per acre for each type and practice in the unit by the insured acreage of that type and practice, by the applicable base price, and by the percentage of base price you elected. The total of these results will be the amount of insurance for the unit.
Base price. For seed under a forage seed contract, the price per pound (excluding any discounts or incentives that may apply) stated in the forage seed contract. For certified forage seed not under a forage seed contract, and for forage seed producers who are also forage seed companies, the price contained in the actuarial documents.
Certification application. The form used to request certification of forage seed by the certifying agency.
Certification standards. The standards and procedures of the certification agency to assure genetic purity and identity of the seed certified.
Certified forage seed. Forage seed that meets the certification standards administered by a certifying agency at the time of harvest and that has been grown under a certification application accepted by the certifying agency on or before the acreage reporting date or as otherwise specified in the Special Provisions.
Certifying agency. An agency authorized under the laws of a State, Territory, or possession, to officially certify seed, which has standards and procedures to assure the genetic purity and identity of the seed certified, and approves certification applications for the certified forage seed that meets the certification standards at time of harvest.
Established stand. An adequate stand of live plants for crop years after the seed-to-seed year.
Fall planted. Forage seed crop planted after May 31 of the previous crop year.
Forage seed company. A business enterprise that possesses all licenses for marketing forage seed required by the state in which it is domiciled or operates, and which possesses facilities with enough storage and capacity to accept and process the insured crop timely.
Forage seed contract. A written contract executed between the forage seed crop producer and a forage seed company containing, at a minimum:
Forage seed crop. Small-seeded legume plants grown for seed (e.g., alfalfa, clovers, etc.), including those grown for the production of hybrid seed, as shown in the actuarial documents.
Harvest. Removal of seed from the windrow or field.
Pound. Sixteen (16) ounces avoirdupois.
Price election. In lieu of the definition in section 1 of the Basic Provisions, the price election will be the base price and will be used for the purposes of determining premium and indemnity under the policy.
Qualified seed testing laboratory. Laboratory qualified by the State to test the forage seed to determine whether it qualifies as certified forage seed.
Seed-to-seed year. The calendar year in which planting occurs for spring planted forage seed and the subsequent calendar year for fall planted forage seed.
Spring planted. Forage seed crop planted before June 1 of the current crop year.
In lieu of the optional unit provisions in section 34 of the Basic Provisions, you may select optional units by forage seed contract or variety if permitted by the Special Provisions.
In addition to the requirements of section 3 of the Basic Provisions:
In accordance with section 4 of the Basic Provisions, the contract change date is June 30 preceding the cancellation date.
In accordance with section 2 of the Basic Provisions, the cancellation and termination dates are:
California, Nevada and Utah. October 31;
All Other States. September 30.
Example: You have a 100 percent share and 100 acres of forage seed in the unit, with a guarantee of 600 pounds per acre on 75 acres of an established stand of forage seed and a guarantee of 300 pounds per acre on 25 acres of a spring planted seed-to-seed year stand. All acreage is contracted with a base price of $1.20 per pound and you have selected 100 percent of the base price. Losses due to insured causes of loss have reduced production and quality and you only harvested 37,000 pounds of seed. A portion of the total production was of poor quality; 10,000 pounds of seed failed to achieve the contract minimum germination requirement; and the salvaged production was valued at $0.80 per pound. Your indemnity would be calculated as follows:
25 acres * 300 pounds = 7,500-pound guarantee;
7,500 pounds * $1.20 per pound price election = $9,000 value guarantee;
27,000 pounds * $1.20 per pound = $32,400 10,000 pounds * ($0.80 per pound/$1.20 per pound) = 6,667 pounds production to count
6,667 pounds * $1.20 per pound = $8,000;
The late and prevented planting provisions of the Basic Provisions are not applicable for forage seed.
7 C.F.R. §457.174