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United States Code (Last Updated: May 24, 2014) |
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Title 7. AGRICULTURE |
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Chapter 36. CROP INSURANCE |
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SubChapter I. FEDERAL CROP INSURANCE |
§ 1508a. Double insurance and prevented planting
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(a) Definitions In this section: (1) First crop The term “first crop” means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this subchapter.
(2) Second crop The term “second crop” means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop.
(3) Replanted crop The term “replanted crop” means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop.
(b) Double insurance (1) Options on loss to first crop Except as provided in subsections (d) and (e) of this section, if a first crop insured under this subchapter in a crop year has a total or partial insurable loss, the producer of the first crop may elect one of the following options: (A) No second crop planted The producer may— (i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and (ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. (B) Second crop planted The producer may— (i) plant a second crop on the same acreage for harvest in the same crop year; and (ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. (2) Effect of no loss to second crop If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to— (A) 100 percent of the insurable loss for the first crop; less (B) the amount previously collected under paragraph (1)(B)(ii). (3) Premium for first crop if second crop planted (A) Initial premium If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity.
(B) Effect of no loss to second crop If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to— (i) the full premium owed by the producer for the first crop; less (ii) the amount of premium previously paid under subparagraph (A). (c) Prevented planting coverage (1) Options on loss to first crop Except as provided in subsections (d) and (e) of this section, if a first crop insured under this subchapter in a crop year is prevented from being planted, the producer of the first crop may elect one of the following options: (A) No second crop planted The producer may— (i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and (ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. (B) Second crop planted The producer may— (i) plant a second crop on the same acreage for harvest in the same crop year; and (ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. (2) Premium for first crop if second planted If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity.
(3) Effect on actual production history Except in the case of double cropping described in subsection (d) of this section, if a producer make an election under paragraph (1)(B) for a crop year, the Corporation shall assign the producer a recorded yield for that crop year for the first crop equal to 60 percent of the producer’s actual production history for the agricultural commodity involved, for purposes of determining the producer’s actual production history for subsequent crop years.
(4) Area conditions required for payment The Corporation shall limit prevented planting payments for producers to those situations in which other producers, in the area where a first crop is prevented from being planted is located, are also generally affected by the conditions that prevented the first crop from being planted.
(5) Planting date If a producer plants the second crop before the latest planting date established by the Corporation for the first crop, the Corporation shall not make a prevented planting payment with regard to the first crop.
(d) Exception for established double cropping practices A producer may receive full indemnity payments on two or more crops planted for harvest in the same crop year and insured under this subchapter if each of the following conditions are met: (1) There is an established practice of planting two or more crops for harvest in the same crop year in the area, as determined by the Corporation. (2) An additional coverage policy or plan of insurance is offered with respect to the agricultural commodities planted on the same acreage for harvest in the same crop year in the area. (3) The producer has a history of planting two or more crops for harvest in the same crop year or the applicable acreage has historically had two or more crops planted for harvest in the same crop year. (4) The second or more crops are customarily planted after the first crop for harvest on the same acreage in the same year in the area. (e) Subsequent crops Except in the case of double cropping described in subsection (d) of this section, if a producer elects to plant a crop (other than a replanted crop) subsequent to a second crop on the same acreage as the first crop and second crop for harvest in the same crop year, the producer shall not be eligible for insurance under this subchapter, or noninsured crop assistance under section 7333 of this title, for the subsequent crop.
Codification
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Prior Provisions
A prior section 1508a, act Feb. 16, 1938, ch. 30, title V, § 508A, as added
Amendments
2008—Pub. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter” wherever appearing.
Effective Date Of Amendment
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective
Effective Date
Section applicable beginning with the 2001 crop of an agricultural commodity, see section 171(b)(2)(F) of Pub. L. 106–224, set out as an Effective Date of 2000 Amendment note under section 1501 of this title.