Hudson Insurance Company v. Bruce Gamble Farms, Jim Gamble Farms, Brian Jones Farms, & Crop Guard Group, Inc.

• Court: Court of Appeals of Texas
• Decided: June 5, 2015
• Docket: 13-15-00098-CV
• Status: Published

Opinion

ACCEPTED 13-15-00098-CV THIRTEENTH COURT OF APPEALS CORPUS CHRISTI, TEXAS 6/5/2015 3:24:11 PM CECILE FOY GSANGER CLERK

CAUSE NO. 13-15-00098-CV

IN THE THIRTEENTH COURT OF APPEALS FILED IN 13th COURT OF APPEALS CORPUS CHRISTI/EDINBURG, TEXAS 6/5/2015 3:24:11 PM HUDSON INSURANCE COMPANY, Appellant CECILE FOY GSANGER Clerk v. BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, BRIAN JONES FARMS, AND CROPGUARD GROUP, INC., Appellees

Appealed from the 357th Judicial District Court of Cameron County, Texas Cause No.: 2014-DCL-03489-E

BRIEF OF APPELLEES

BRUCE GAMBLE FARMS, JIM GAMBLE· FARMS;· AND BRIAN JONES FARMS

ADOLFO E. CORDOVA, JR. State Bar No. 00787287 711 N. Sam Houston San Benito, Texas 78586 Telephone: (956) 399-1299 Facsimile: (956) 399-4484

ATTORNEY FOR APPELLEES BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, AND BRIAN JONES FARMS

ORAL ARGUMENT REQUESTED IDENTITY OF PARTIES AND COUNSEL

Pursuant to Tex. R. App. P. 38.1(a), Appellees, Bruce Gamble Farms,

Jim Gamble Farms and Brian Jones Farms, submit the following list of names

of all parties to the case, as well as the names and addresses of their

respective counsel.

1. Defendant/Appellant: Hudson Insurance Company

Counsel: Steve E. Couch State Bar No. 04875650 Ken E. Kendrick State Bar No. 11278500 Kelly, Sutter & Kendrick, P.C. 3050 Post Oak Blvd., Suite 200 Houston, Texas 77056-6570 Telephone: (713) 595-6000 Facsimile: (713) 595-6001

2. Plaintiffs/Appellees: Bruce Gamble Farms, Jim Gamble Farms, and Brian Jones Farms

Counsel: Adolfo E. Cordova, Jr. State Bar No.: 00787287 Law Office of Adolfo E. Cordova, Jr. 711 North Sam Houston San Benito, Texas 78586 Telephone: (956) 399-1299 Facsimile: (956) 399-4484 3. Defendant/ Third Party Plaintiff I Appellee: Cropguard Group, · Inc.

Counsel: Norton A. Colvin, Jr. State Bar No. 04632100 Victor Rodriguez State Bar No. 24041809 Colvin, Chaney, Saenz& Rodriguez, L.L.P. 1201 East Van Buren Post Office Box 2155 Brownsville, Texas 78522 Telephone: (956) 542-7441 Facsimile: (956) 541-2170

ii TABLE OF CONTENTS

Page

IDENTITY OF PARTIES AND COUNSEL ......................................... i

TABLE OF CONTENTS. ......................................................................iii

INDEX OF AUTHORITIES........................................................................iv

RECORD REFERENCES AND PARTY ABBREVIATION .......................ix

STATEMENT OF THE CASE ............................................................x

STATEMENT OF JURISDICTION........................................................... xi

STATEMENT REGARDING ORAL ARGUMENT.................................... xii

PREAMBLE AND PRELIMINARY STATEMENT.................................... xiii

ISSUES PRESENTED ............................................................................ xiv

STATEMENT OF FACTS ........................................................................ 2

SUMMARY OF ARGUMENT............................................................... 4

ARGUMENT AND AUTHORITIES .......·............:.........·...................................................6

CONCLUSION AND PRAYER ................................................................ 23

CERTIFICATE OF SERVICE .................................................................. 26

iii INDEX OF AUTHORITIES

CASES:

United States Supreme Court

AT&T Tech., Inc. v. Commc'ns Workers of Am., 475 U.S. 643, 648, 106 S.Ct. 1415 89 L.Ed.2d 648 (1986)............................................................ 16

First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 at 944, 115 S.Ct. (1920) ........................ 4, 10, 14, 16

Gilmer v. Interstate/Johnson Lane Crop., 500 U.S.20, 111 S.Ct. 1647, 114 LED2d 26 (1991) ..........12

Mitsubishi Motors Corp v. Soler Chrysler-Plymouth, 473 U.S. 614 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985) .................................................... ........................ 12

Perry v. Thomas, 482 U.S. 483, 493 n. 9, 107 S.Ct.2620 96 LEd2nd 426 (1987)........................................................................ 4

United Steelworkers v. Warrior & Gulf Nav. Co.-, 363 U.S. 574, 582, 80 S.Ct. 1347, 4 L.Ed.2dn 1409 (1960)................................................ ..................... 16

Volt Information Sciences, Inc. v. Board of Trustees of Leland Stanford Junior University 489 U.S. 468, 109 S.Ct. 1238, 103 L.Ed.32d 488 (1989)............................................................................... 11

iv Federal Appellate Courts

Fleetwood Enters., Inc. v. Gaskamp, 280 F.3d 1069, 1073 (5th Cir. 2002)..................................... 16

Texaco Exploration & Prod. Co. v. AmC/yde Engineered Prods., Co., 243 F3d 906 (5th Cir. 2001) .................................................. 11

Federal District Courts

Mark Newby, et a/. v. Enron Corporation, et a/., 391 F.Supp.2d 541 (S.D. Tex. 2005)....................................11

Texas Supreme Court

Frankiewicz v. Nat'/ Comp. Assoc., 633 S.W.2d 505 (Tex. 1982) ................................................19

Hanks v. GAB Bus. Servs., Inc., 644 S.W.2d 707 (Tex. 1982)................................................ 22

Hoover Slovacek LLP v. Walton, 206 S.W.3d 557 (Tex. 2006) .................................................10

In Re Advance PCS Health L.P., 172, S.W.3d, 603 (Tex. 2005) ........................................... 4, ·10, 14

In Re FirstMerit Bank, 52 S.W.3d 749 (Tex. 2001)............................................... 10

In Re Halliburton, 80 S.W.3d at 566 (Tex. 2002) ...............................................12

In Re Merrill Lynch & Co., Inc., 315 S.W.3d 888, n. 3 (Tex. 2010) (original proceeding)............................................................. xi

v In Re Poly America, L.P., 262 S.W.3d 337 (Tex. 2008) (original proceeding) ..... 4, 10, 12, 14

In Re Rubiola, 334 S.W.3d 220 (Tex. 2011) (original proceeding) ........... 16

J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) ............................................ 14, 16

Meyer v. WMCO-GP, LLC, 211 S.W.3d 302 (Tex. 2006) ............................................. 14

Olshan Foundation Repair Co. v. Ayala, 180 S.W.3d 212 .............................................................. 6, 10

Patrizi v. McAninch, 269 S.W.2d 343 (Tex.1954) .............................................. 18

Williams v. Williams, 569 S.W.2d 867 (Tex. 1979) ............................................ 18, 21, 22

Texas Court of Appeals

A/'s Formal Wear of Houston, Inc. v. David Sun, 869 S.W.2d 442 (Tex.App.-Houston ]1st Dist] 1993) ........ 17

American Physicians Serv. Group, Inc. v. Port Lavaca Clinic Assoc., 843 S.W.2d 675 (Tex.App.-Corpus Christi 1992, writ denied)............................................................................ 18

Ameriprise Financial Services, Inc. v. Farias, 2013 WL 6175330 at *2 (Tex.App.-Corpus Christi-Edinburg 2012, pet. denied) ......................................xi

vi Cappadonna Elec. Mgmt. v. Cameron Cnty., 180 S.W.3d 364 (Tex.App.-Corpus Christi 2005, no pet) .................................................................................. 14

City of Beaumont v. lnt'l Ass'n of Firefighters, Local Union No. 399, 241 S.W3d 208 (Tex.App.-Beaumont 2007, no pet.) .......... 19

Jenkens & Gilchrist v. Riggs, 87 S.W.3d 198, 201 (Tex.App.-Dallas 2002, no pet) .......... 16

John R. Ray & Sons, Inc. v. Stroman, 923 S.W.2d 80 (Tex.App.-Houston [14th Dist.] 1996, writ denied)....................................................................... 19, 22

NCR Corp. v. Mr. Penguin Tuxedo Rental & Sales, Inc., 663 S.W2d 107 (Tex.App.-Eastland 1983, writ ref d n.r.e) ......................................................................... 18

Pepe Inti's Dev. Co. v. Pub Brewing Co., 915 S.W.2d 985, 930 (Tex.App.-Houston [1st Dist.] 1996, no writ) ........................................................................ 16

Roe v. Ladymon, 318 S.W.3d 502 (Tex.App.-Dallas 2010, writ denied) ......... 16

Rogers v. Wolfson, 763 S.W.2d 922 (Tex.App.-Dallas 1989, writ denied) .........19

Withers-Busby Group v. Surety lndust., Inc., 538 S.W.3d 189 (Tex. Civ.App.-Dallas 1976, no writ).........18

STATUTES:

9 U.S.C. § 2 .............................................................................. 4, 10

9 U.S.C. § 16 ............................................................................. xi

vii Federal Arbitration Act Section 51.016 ..........................................xi

Tex. Bus & Com. Code§ 1.201(b)(10) ...................................... 14, 17

Tex. Civ. Prac. & Rem. Code §51.016 ...........................................xi

Texas General Arbitration Act ................................................... 17, 18

RULES:

Texas Rules of Appellate Procedure 28......................................... 1

Texas Rules of Appellate Procedure 38......................................... 1

REGULATIONS:

None

viii RECORD REFERENCES AND PARTY ABBREVIATIONS

References in Appelees' Brief are shown as follows:

Appendix: References to Appendix are by notation "App."

Clerk's Record: References to the Clerk's Record fro the Cameron County 357th District Court filings and proceedings are by noting "CR".

Supplemental Clerk's Record: References to the Supplemental Clerk's Records from the Cameron County District Court fiHngs and proceedings are by noting "Supp. CR"

Reporter's Record: Reference to the Reporter's Record reflecting hearings held in the Cameron County 357th District Court are by noting "RR"

The Order: Reference to "the Order", unless otherwise noted, shall refer to the Trial Court's February 23, 2015 Order which denied Hudson Insurance Company's Motion to Compel Arbitration and Motion to Stay; and Hudson Insurance Company's Motion to Compel Arbitration of CropGuard Group, Inc.'s Alleged Third-Party Claims.

"Hudson": References to "Hudson" shall mean Appellant Hudson Insurance Company.

"Plaintiffs": References to "Plaintiffs", unless otherwise noted shall refer to Plaintiffs, Bruce Gamble Farms, Jim Gamble Farms and Brian Jones Farms collectively.

"CropGuard": References to "CropGuard", unless otherwise noted, shall refer to Defendant and Third-Party Plaintiff CropGuard Group, Inc.

ix STATEMENT OF THE CASE

This case involves claims brought by Plaintiffs Bruce Gamble Farms,

Jim Gamble Farms and Brian Jones Farms against Defendants CropGuard

Group, Inc. and Hudson Insurance Group which resulted from what Plaintiffs

claim was an overcharge of premiums for crop insurance they had with

Defendant Hudson Insurance Company for Crop Year 2013. (CR: 13-22)

Defendant CropGuard Group, Inc. was the agent for the Plaintiffs and for

Defendant Hudson Insurance Company. (CR: 185-188) Defendant Hudson

Insurance Company urged arbitration as per an arbitration provision contained

on Page 31 of its 40 page crop insurance policy. (CR: 27-170 and Exhibit "A")

Plaintiffs objected to the motion claiming that the arbitration provision was

un onscionable and that the Plaintiffs had not been provided with the

insurance polices which contained said .arbitration provision. (CR: 231-299

and 332-409). Appellees further contend that the subject matter of their claim·

is not covered by the terms of the arbitration clause. The trial court denied

Defendant Hudson Insurance Company's motion to compel arbitration and

this appeal ensued. (CR: 505-506)

X STATEMENT OF JURISDICTION

This Court has jurisdiction pursuant to Texas Civil Practice and

Remedies Code Section 51.016 and 9 U.S.C. § 16. Specifically, with regard

to the Federal Arbitration {"FAA") Section 51.016 authorizes appeals of

interlocutory orders in matters subject to the FAA "under the same

circumstances that an appeal from a federal district court's order or decision

would be permitted by 9 U.S.C. Section 16.". Tex. Civ. Prac. & Rem. Code

§ 51.016; 9 U.S.C. § 16; In ReMerri/1 Lynch & Co., Inc., 315S.W.3d 888,891,

n. 3 {Tex. 2010) (orig. proceeding); Ameriprise Financial Services, Inc. v.

Farias, 2013 WL 6175330 at *2 (Tex. App.-Corpus Christi-Edinburg 2012,

pet. denied).

xi STATEMENT REGARDING ORAL ARGUMENT

Appellees believe that oral argument would be beneficial to the Court

in resolving any questions which it may have. At the same time, Appellees

believe that, in view of applicable and controlling law and the evidence of

record, it is clear that the Trial Court properly ruled on Hudson's Motion to

Compel Arbitration.

xii PREAMBLE AND PRELIMINARY STATEMENT

Appellees, after reviewing the crop insurance policy in question,

acknowledge that an arbitration clause is contained within the policy.

Appellees claim, however, that they did not receive the insurance policy prior

to entering the agreement and thus did not contractually agree to said clause.

Appellees further state that the clause, as written into the policy, is

unconscionable and against public policy; therefore not a "valid" clause

(emphasis added) (See Exhibits "8", "C", and "D"). (CR: 231-299 and 332-

409). In support of their claims, Appellees note that the policy contains an

arbitration clause which limits Appellees statute of limitations time from four

years to one year and precludes judicial review until after the parties have

submitted to arbitration. (Exhibit "A"). Finally, Appellees believe that the

subject matter in controversy does not fall within the purview of the arbitration

clause.

xiii ISSUES PRESENTED

I. The Trial Court correctly ruled in denying Hudson Insurance Company's Motion to Compel Arbitration of Plaintiffs' claims because Hudson Insurance Company failed to establish that a valid arbitration agreement existed wh'ich was not against public policy and which was not unconscionable.

II. The Trial Court did not abuse its discretion in failing to compel arbitration under the direct benefits estoppel doctrine.

Ill. The Trial Court did not abuse its discretion in failing to compel arbitration against the three Plaintiffs in this case as they did not agree to the terms of the insurance policy contract, specifically, the arbitration provision contained therein.

xiv CAUSE NO. 13-15-00098-CV

IN THE THIRTEENTH COURT OF APPEALS

HUDSON INSURANCE COMPANY, Appellant

v. BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, BRIAN JONES FARMS, AND CROPGUARD GROUP, INC., Appellees

Appealed from the 357th Judicial District Court of Cameron County, Texas Cause No.: 2014-DCL-03489-E

BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, AND BRIAN JONES FARMS

TO THE HONORABLE THIRTEENTH COURT OF APPEALS:

Pursuant to Texas Rules of Appellate Procedure 28 and 38, Appellees,

Bruce Gamble Farms, Jim Gable Farms and Brian Jones Farms, now file their

Appellees' Brief.

Page 1 STATEMENT OF FACTS

Appellees agree that policies for Plaintiffs' crops for year 2013 were

issued by Appellant Hudson Insurance Company and that said policies

purport to contain an arbitration provision that required the parties to submit

to arbitration within one year of a dispute arising from the determination of

what Appellees believe was Optional Units planting. (CR: 54-56)

Appellees further agree that Cropguard Group, Inc. was their insurance

·agent with respect to the polices in question and that suit was filed against

Hudson Insurance Company and CropGuard Group, Inc. within one year from

the date a question arose regarding the premiums charged for insurance by

Hudson Insurance Company. (CR: 185-188) .Said suit was for breach of

contract, breach of warranties, breach of duty of good faith and fair dealings

as well as violations of the Texas Insurance code and DTPA. (CR: 13-22)

Appellees claims are based on a procedural dispute regarding

preventive planting for Enterprise Unit type of planting and what procedures

were required to fall within said category. (CR: 13-22) The necessary

procedures were discussed with CropGuard Group, Inc. prior to the 2013

planting season and Appellees contend they followed said procedures (CR:

13-22) Appellant, Hudson, however, believes that the Appellees failed to

Page2 follow the procedures of the plan to qualify as a preventive planting Enterprise

Unit which requires one billing method and instead qualified as an Optional

Unit type of planting thus allowing them to charge a higher rate for the policy

coverage. (CR: 23-26)

Appellees filed suit to determine whether Appellant wrongfully charged

a higher amount (CR: 13-22) and Appellant eventually sought to have this

issue referred to arbitration. (CR: 27-170) The trial court denied said request

and this appeal ensued. (CR: 505).

Page 3 SUMMARY OF ARGUMENT It is Appellees position that the trial court had sufficient information

necessary to rule against Hudson's Motion to Compel Arbitration.

Section 2 of the FAA provides in part that arbitration agreements "shall

be valid, irrevocable, and enforceable, save upon such grounds as exist at

law or in equity for the revocation of any contract." 9. U.S.C § 2 (emphasis

added). As such, a contract/agreement will be valid if it meets the criteria of

contract law for its state. In Re Poly-America, L.P., 262 S.W.3d 337 (Tex.

2008) (original proceeding) citing In Re Advance PCS Health L.P., 172,

S.W.3d. In First Options of Chicago, Inc. V. Kaplan, 514 U.S. 938, at 944,

115 S.Ct. 1920 and 9 U.S.C. §2 it was determined that courts must first apply

state law with regard to contract formation in determining the validity of an

arbitration agreement under FAA. Furthermore,·in Perryv. Thomas, 482 U.S.

483, 493 n. 9, 107 S.Ct.2620 96 L.Ed2d 426 (1987) the United States

Supreme Court opined that state law is applicable in determining the validity

of an agreement to arbitrate. In Re Poly-America, L.P., 262 S.W.3d 337

(Tex. 2008) (original proceeding)

Appellees contend that they were never provided with the insurance

policies until after a dispute arose as to the amount of premiums charged by

Page4 Appellant. (CR: 231-299 and 332-409). Furthermore, Appellees claim that the

controversy in question is not the result of a claim for a loss, but rather a claim

based on the calculation of the premium for the type of planting they followed.

(CR: 13-22) This type of claim falls outside of the parameters of the arbitration

agreement contained in the crop insurance policies. (Exhibit "A")

Additionally, Appellees claim that the arbitration clause contained in the

crop policy falls short on conspicuousness and fair notice to them of said

clause. (CR: 231-299 and 332-409).

Lastly, Appellees claim that arbitration clause itself is unconscionable

in that it shortens Appellees statute of limitations to one year from a four-year

statute of limitations.

Page 5 ARGUMENT AND AUTHORITIES

The Standard of Review

Appellees agree with Appellant that the trial court's denial of a motion

to compel arbitration is reviewed for an abuse of discretion and that all

questions of law are reviewed de novo. Olshan Foundation Repair Co. v.

Ayala, 180 S.W.3d 212 at 214.

Appellees contend that the arbitration provision contained in Hudson

Insurance Company's crop insurance policy does not apply to them.

Appellees filed their suit against both Appellant Hudson Insurance

Company and .against the Agent, Casey Clipson with CropGuard Group, Inc.

(CR: 13-22) Prior to planting their 2013 crops, Appellees, in an attempt to

follow proper procedure, inquired from the Agent CropGuard Group, Inc.

about the specific requirements for planting a prevented planting Enterprise

Unit System. (CR: 13-22) After clarification was obtained from the Agent, the

Appellees proceeded to plant based on the specific requirements for

prevented planting Enterprise Unit System of planting. (CR: 13-22) The vague

language in the policy for planting under a prevented planting Enterprise Unit

System is found on pages 23-28, 36 and 37 of the policy under Sections 27

and 34a(4). (Exhibit "A")

Page6 After Appellees planted their 2013 crop with the prevented planting

Enterprise Unit System requirements, the Appellant Hudson Insurance

Company, charged the Appellees a premium based on what appears to be

Optional Units planting. (CR: 13-22) Therefore, by not charging the Appellees

the preventive planting Enterprise Unity System of planting premium, Hudson

charged almost double the premium for insurance. {CR: 13-22) Appellees

noticed the error made by Hudson and immediately contacted Agent Casey

Clipson with CropGuard Group, Inc. and apprised him of the "mistake". (CR:

13-22) At this point, the Appellees were told by the Agent that Hudson

Insurance Company claimed that they had not followed the proper procedure

to qualify for the prevented planting Enterprise Unit System and as such were

charged a different premium. (CR: 13-22) Appellants, Bruce Gamble Farms,

Brian Jones Farms, and Jim Gamble Farms were charged an additional

amount of $40,000.00, $84,000.00, and $80,000.00 respectively on their

premiums. (CR: 13-22)

The issue, therefore is whether the "procedure", as it pertains to the

prevented planting Enterprise Unit System of planting, was properly followed

by the Appellees. (CR: 13-22) Appellees contend that they did, however,

Appellant Hudson Insurance Company disagreed. (CR: 23-26)

Page7 The issue in controversy, therefore, that needs to be resolved is

addressed on Page 32 of the policy under Section 20a(1) which states as

follows:

"(1) All disputes involving determinations made by us, except those specified in Section 20(d) or (e), are subject to mediation or arbitration. However. if the dispute in any way involves a policy or procedure interpretation. regarding whether a specific policy provision or procedure is applicable to the situation. how it is applicable. or the meaning of any policy provision or procedure. either you or we must obtain an interpretation from FCIC in accordance with 7 CFR part 400. subpart X or such other procedures as established by FCIC." See copy of insurance policy attached hereto as Exhibit "A". (emphasis added)

The issue at hand involves a "policy or procedure interpretation" i.e.

whether the proper method of planting was used by the Appellees in order to

qualify for the preventive planting Enterprise Unit system of planting. It

appears that the parties have a difference of opinion of what is contained in

the policy in this respect, therefore, an interpretation should be sought from

FCIC instead of arbitration. (See Exhibit "A" Page 32 § 20a(1))

In pursuing and attempting to compel arbitration, the Appellant has

failed to follow its own policy provisions since arbitration is not the proper

avenue to follow as per the terms of its policy. Had the Appellant followed

the proper procedure called for in the policy based on the specifics of

Appellees' complaints, arbitration would not be invoked as a means to resolve

Page 8 the pending dispute. Instead, at best, an interpretation should have been

obtained fro the FCIC. (Exhibit "A" at Pg. 32 Section 20a(1))

In the event this Honorable Court decides that Section 20a(1) does not

apply to the controversy in question, and that the FCIC does not need to

make any determination, Appellees offer the following response to Appellant's

Brief.

After Appellant filed its Motion to Compel Arbitration with the trial court,

Appellees replied claiming that they were not given a copy of the crop

insurance policy in question and that one of them (Bruce Gamble Farms) only

received a copy after a dispute arose between the parties. (CR: 496-500)

Appellees also contend that having reviewed the arbitration provision, the

same is unconscionable and against public policy because it limits Appellees'

statutory right to file suit within to one year. (Exhibit "A") Appellees also claim

that the inconspicuousness of the arbitration clause also renders the same

unconscionable. (CR: 332-409)

Issue No.1

I.

The Trial Court Correctly Ruled in Denying Hudson Insurance Company's Motion to Compel Arbitration of Plaintiffs' Claims Because Hudson Insurance Company Failed to Establish that a Valid Arbitration Agreement Existed Which Was Not Against Public Policy and Which Was Not Unconscionable

Page9 The FAA (Federal Arbitration Act) provides that arbitration agreements

"shall be valid, irrevocable, and enforceable, save upon such grounds as exist

at law or in equity for the revocation of any contract." 9 U.S.C. § 2. In other

words; in order for it to be enforceable, the arbitration agreement must meet

the requirements applicable to the state law where the agreement is being

enforced. In Re Poly-America, L.P., 262 S.W.3d 337 {Tex. 2008) (original

proceeding) citing In Re AdvancePCS Health L.P., 172 SW3d 603, 606

(Tex.2005) (citing First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944,

115 S.Ct. 1920, 131 LED.2d 985 (1995)).

Whether a contract is unconscionable or contrary to public policy is a

question of law. In Re Poly-America, L.P., 262 S.W.3d 337 (Tex. 2008)

(original proceeding) citing Hoover Slovacek LLPv. Walton, 206 S.W.3d 557,

562 (Tex.2006). Unconscionability is a defense to an arbitration agreement.

In Re FirstMerit Bank, 52 S.W.3d 749, 756 (Tex.2001). The·defense of

substantive unconscionability, in particular, must relate to the arbitration

portion of the contract not the entire contract or the contract as a whole in

order to defeat arbitration. /d. at 757. The court in Olshan Found Repair Co.

v. Ayala, 180 S.W.3d 212, 215 (Tex.App.-San Antonio 2005, pet. denied)

stated that unconscionability refers to an agreement that is unfair because its

so one-sided on its term(s). Appellees claim that the arbitration agreement

Page 10 contained in the crop insurance policy is substantive unconscionable and

against public policy because it limits Appellees statutory right to file suit

against the Appellant to among other things one year. Furthermore, it allows

Appellant to sit back, as in the case at bar, and ignore or put off any claims

by Appellees until after the one year lapses, thereby precluding any claims by

wronged parties.

In Volt Information Sciences, Inc. v. Board of Trustees of Leland

Stanford JuniorUniv., 489 U.S. 468,479,476, 109 S.Ct. 1248, 103 L.Ed.32d

488 (1989)and Mark Newby, eta/. v. Enron Corporation, eta/., 391 F.Supp.2d

541 (S.D.Tex. 2005) the courts cited the Supreme Court stating that the

federal policy that favors arbitration does not override the contractual choices

of the parties and no party can be required to submit to arbitration any dispute

to which he has not agreed to submit since Arbitration under the FAA is a

matter of consent,. not coercion, and parties are generally ·free to structure

their arbitration agreements as they see fit". ld at 555. Furthermore, the court

in Newby ruled that even though there is strong federal policy that favors the

enforcement of arbitration, arbitration ultimately is a matter of contract that the

parties must have expressly agreed to arbitrate before a court can compel

said arbitration. Jd at Page 561. Citing Texaco Exploration & Prod. Co. v.

AmC/yde Engineered Prods. Co., 243 F.3d 906, 909 (5th Cir. 2001). In the

Page 11 case at bar, the Appellees claim that they did not negotiate the inclusion of an

arbitration clause into the contract. The Appellees claim that they were not

even provided with a copy of the policy. See Affidavits of Appellees attached

hereto as Exhibits "8", "C", and "D" attached hereto and therefore, the most

fundamental requirements of a valid contract are not present and therefore

the arbitration does not apply.

In In re Halliburton, 80 S.W.3d at 572, the court held that an arbitration

agreement covering statutory claims is valid as long as it does not waive the

substantive rights and remedies that the statute affords and so long as the

arbitration procedures are fair. ld at 572 Federal courts have noted that

contracts are not enforceable when a party is forced to give up substantive

rights afforded by statute. Mitsubishi Motors Corp. v. Soler Chrysler-

Plymouth, Inc., 473 U.S. 614, 628, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985).

While the FAA preempts state statutes that are inconsistent with its

requirement to compel arbitration when its provided for in contract,· it was

determined that if the agreement has a waiver of substantive remedies or any

part of the agreement is found unconscionable the contract will be declared

unenforceable. In re Poly-America, L.P., 262 S.W.3d 337 (Tex., 2008) citing

Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 26, 111 S.Ct. 1647,

114 LEd2d 26 (1991). The Gilmer court also mentioned that when a party

Page 12 agrees to arbitrate a claim he/she/it agrees to submit that claim to arbitral

resolution but doesn't necessarily give up his/her/its statutory rights. /d. at

628. Therefore, for the above stated reasons, Appellees believe the trial

court correctly denied Appellant's Motion to Compel Arbitration.

In addition to failing because fundamental contract requirements were

not present, Appellees contend that the arbitration clause found on pages 31-

33 of the 40 page policy (Exhibit "A") is unconscionable. The clause itself

requires the Appellees to arbitrate within one (1) year of the date Appellant

rendered the determination to which the Appellees disagree. Page 32

Section 20b(1) of the crop insurance policy (Exhibit "A"). Furthermore, section

20b(3) found of page 32 of the crop insurance policy goes on to say that after

arbitration is completed and if ..."judicial review is sought, suit must be filed

not later than one year after the date the arbitration decision was rendered".

Thereafter, Section 20e(3) the policy additionally states· "Under no

circumstances can you recover any attorney fees or other expenses, or any

punitive, compensatory or any other damages". (Exhibit "A" Page 23) Lastly,

in a section of the policy that is not contained within the arbitration clause,

Section 31 of the policy (Exhibit "A" Page 36) entitled Applicability of State

and Local Statutes the policy states "If the provisions of this policy conflict

with statutes of the State or locality in which this policy is issued, the policy

Page 13 provisions will prevail. State and local laws and regulations in conflict with

federal statutes, this policy, and the applicable regulations do not apply to this

policy." {Exhibit "A" Page 36). All of these sections of the crop insurance

policy, alone and in concert, are substantively unconscionable and should be

ruled unenforceable, unconscionable and contrary to public policy as they do

not conform with basic contract law of the State of Texas as required by In

Re Poly-America, L.P., 262 S.W.3d 337 {Tex. 2008) {original proceeding); In

Re AdvancePCS Health L.P., 172 SW3d 603, 606 {Tex.2005) {citing First

Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131

L.Ed.2d 985 {1995)).

A party that attempts to compel arbitration under the TAA must not only

establish the existence of a "valid" arbitration agreement, but also the fact that

the claim falls within the scope of the agreement. Meyerv. WMCO-GP, LLC,

211 S.W.3d 302, 305 (Tex. 2006). According to Cappadonna Elec. Mgmt. v..

Cameron Cnty., 180 S.W.3d 364, 370 (Tex.App.-Corpus Christi 2005, no pet)

A court may not order arbitration unless such "valid" agreement exists.

(emphasis added). /d. at 170 The strong presumption in Texas favoring

arbitration does not arise unless a valid arbitration agreement exists. J.M.

Davidson, Inc. v. Webster, 128 S.W.3d 223, 227 (Tex.2003).

Page 14 Appellant Hudson Insurance Company claims that it established that a

valid arbitration agreement existed between it and the Appellees. Appellant

makes this claim stating that the existence of the arbitration was not

contested therefore, since the Appellees did not deny the existence of the

arbitration agreement, a "valid" arbitration agreement exists. (CR: 27-170)

The fact that an arbitration agreement was contained within the policy is not

the issue. Appellees acknowledge that such clause is contained within the

2013 crop insurance policy. Appellees deny, however, that the arbitration

clause was agreed to by all parties and that the arbitration clause is "valid"

(emphasis added) since the policy in question was not provided to the parties

at the time the agreement was entered. (Exhibits "8", "C", and "D").

One of the defenses to the arbitration clause that the Appellees have

brought forth is that they were not provided a copy of the insurance policy.

(Exhibits "8", "C", and "D"). In Appellant's Motion to Compel Arbitration,

Hudson Insurance Company claims that it issued insurance polices to the

Plaintiffs which contained the arbitration provision pertinent to its Motion. (CR:

27-170) Plaintiff Bruce Gamble Farms was provided with a copy of the

policy, but only after he requested a copy from the local agent, Defendant

Crop Guard Group, Inc. (Exhibit "8"). Said request was made after a discord

arose as to the calculation of premiums and the method of calculation and this

Page 15 took place well after the purported policy was paid for and entered into by

Defendants. See copy of Bruce Gamble's Affidavit attached hereto as Exhibit

"B". The other two Plaintiffs did not get a copy of the insurance policy ever.

See Brian Jones' Affidavit and Jim Gamble's Affidavit attached hereto as

Exhibits "C" and "D" attached hereto. As a general rule, a person must sign

an arbitration agreement before he or she will be bound by it. In Re Rubiola,

334 S.W.3d 220, 224 (Tex. 2011). In Roe v. Ladymon, 318 S.W.3d 502 at

510 (Tex. App. 2010) the court, citing AT&T Tech., Inc. v. Commc'ns.

Workers of Am., 475 U.S.643, 648, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986)

(quoting United Steelworkers v. Warrior & Gulf Nav. Co., 363 U.S.574, 582,

80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960), stat s "arbitration is a matter of

contract and a party cannot be required to submit to arbitration any dispute

which he has not agreed so to submit." According to J.M. Davidson, Inc. v.

Webster, 128 S.W3d 223 citing Fleetwood Enters., Inc. v. Gaskamp, 280

F.3d 1069, 1073 (5th Cir.2002) federal policy that favors arbitration does not

apply in determining whether a valid agreement to arbitrate exists, but rather

ordinary contract principles apply. Furthermore, according to Jenkens &

Gilchrist v. Riggs, 87 S.W3d 198, 201 (Tex.App.-Dallas 2002, no pet); Pepe

Inti's Dev. Co. v. Pub Brewing Co., 915 S.W.2d 925, 930 (Tex.App.-Houston

[1st Dist.] 1996, no writ); and First Options of Chicago, Inc. v. Kaplan, 514 U.S.

Page 16 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995) which held that when

determining whether parties agreed to arbitrate "courts generally ...should

apply ordinary state-law principles that govern the formation of contracts". ld

at 228 Appellants did not agree to the arbitration provision contained in the

contract, they were not initially aware of the contract since they were not

provided with a copy of the policy containing the arbitration clause. (See

Appellants Affidavits attached hereto as Exhibits "8", "C", and "D"). As such,

they should not be bound to the arbitration provision o the contract.

Appellees contend that the arbitration provision Defendant Hudson

Insurance Company was attempting to enforce is found on Page 32 of a 40

page of a voluminous policy that has additional documents attached to it

making it a voluminous document. (A copy of said policy is attached hereto

as Exhibit "A"). The Arbitration Provision is not conspicuously depicted as

required by the Texas Business and Commerce Code Section 1.201(b)(10)

and the Texas General Arbitration Act. It is not identified nor does it appear

with a heading in capital letters, bold face, enlarged text, contrasting color,

neither underlined nor depicted in any manner so as to apprize the Plaintiffs

of the same. In A/'s Formal Wear of Houston, Inc. v. David Sun, 869,

S.W.2d 442, 444 (Tex.App.-Houston [1st Dist] 1993), the court, citing the

Texas General Arbitration Act, stated that the act specifically provides that an

Page 17 agreement shall not be arbitrated unless the notice that a particular contract

is subject to arbitration is "typed in underlined capital letters, or is rubber

stamped prominently, on the first page of the contracf'. ld at 444 Citing

Article 224-1, Texas General Arbitration Act (emphasis added). Therefore,

since the Texas General Arbitration Act provides the necessary form of an

arbitration clause in order for it to be enforceable, those contracts whose

clauses to not conform must be found unenforceable. ld at 445, citing

Withers-Busby Group v. Surety lndust., Inc., 538 S.W.2d 189, 199 (Tex.

Civ.App.-Dallas 1976, no writ); American Physicians Serv. Group, Inc. v.

Port Lavaca Clinic Assoc., 843 S.W.2d 675, 678 (Tex.App.-Corpus Christi

1992, writ denied); NCR Corp. v. Mr. Penguin Tuxedo Rental & Sales, Inc.,

663 S.W2d 107, 108 (Tex.App.-Eastland 1983, writ refd n.r.e.).

Appellees cite Williams v. Williams, 569, S.W.2d 867, 871 (Tex. 1979);

Hoover Slovacek, 206 S.W.3d at 565 (citing RESTATEMENT (SECOND) OF

CONTRACTS § 208 (1981)) where in it was determined that an

unconscionable provision of a contract can be severed from the contract and

not necessarily invalidate the entire contract if the provision being severed

does not constitute the essential purpose of the contract. ld at 555 In looking

at whether an unconscionable clause can be severed from a contract the

court in Patriziv. McAninch, 153 Tex. 389,269 S.W.2d 343, 348 (1954); also

Page 18 City of Beaumont v. lnt'l Ass'n of Firefighters, Local Union No. 399, 241

S.W.3d 208, 215 (Tex.App.-Beaumont 2007, no pet.) (citing Rogers v.

Wolfson, 763 S.W.2d 922, 925 (Tex.App.-Dallas 1989, writ denied)); John R.

Ray & Sons, Inc. v. Stroman, 923 S.W.2d 80, 86 (Tex.App.-Houston [14th

Dist.] 1996, writ denied) (citing Frankiewicz v. Nat'/ Comp. Assoc., 633

S.W.2d 505, 507-08 (Tex. 1982)) looked to determine whether or not the

parties would have entered into the contract absent the unenforceable

provisions. ld at 86 In this case, the answer is yes.

Appellees further contend, therefore that a finding of unconscionability

by this Honorable Court would not invalidate the entire agreement, but only

the arbitration clause.

Furthermore, aside from the unconscionability of the arbitration clause,

Appellees deny that their claims fall within the scope of the arbitration

provision in question. As mentioned herein above, Appellees believe that

their claim is not one that is to be arb!trable as per the provisions of the policy.

Section 20a( 1) found on Page 32 of the policy, (See copy of policy attached

hereto as Exhibit "A"), states that if a dispute arises which involves a policy

or procedure interpreting or whether a specific policy provision or procedure

is applicable to the situation and how it is applicable, either Appellant or

Appellees must obtain an interpretation from FCIC. Exhibit "A", Page 32

Page 19 Section 20a(1). This is what Appellees contend should have been the

avenue taken by the Appellant; not arbitration.

Issue No.2

II.

The Trial Court Did Not Abuse Its Discretion in Failing to Compel Arbitration Under the Direct Benefits Estoppel Doctrine

Appellees incorporate all arguments set out herein above and further

state that the policy in question insures against crop losses and when losses

are suffered, it pays claims to the insured. The gist of the claim under which

the Appellees sue the Appellant stems from Appellant's overcharge of

premiums for the policy. (CR: 13-22) Since the logistics of how crop

insurance policies work, the Appellees did not have the option of paying an

agreed upon premium up front. (Exhibit "A" Pg 4) The way crop insurance

works is that the premium is based ·on the type of planting chosen by the

insured and the premium is charged after the crops are harvested. (Exhibit

"A" Pg 4) A farmer can plant a Basic Unit, Enterprise Unit, Optional Unit,

Whole Farm Unit, etc. The method of planting can be preventive planting or

regular crop planting. In crop year 2013, the Appellees planted crops based

on preventive planting Enterprise Unit method of planting. The Appellant took

it upon itself to determine what the premium would be without regard to the

Page 20 method of planting employed by the Appellees. The Appellees attempted to

address the wrongfully charged premium, however, the Appellant refused to

discuss it and after a suit was filed, attempted to force Appellees into an

arbitration that was not agreed to by the Appellees. Appellees contend,

therefore, that the arbitration provision in question, even if found enforceable,

does not apply to this procedural determination and thus, the trial court

correctly denied Hudson's motion to compel arbitration.

Issue No.3

Ill.

The Trial Court Did Not Abuse Its Discretion in Failing to Compel Arbitration Against the Three Plaintiffs in this Case as They Did Not Agree to the Terms of the Insurance Policy Contract, Specifically, the Arbitration Provision Contained Therein

Appellees deny that they are bound by the arbitration provision simply

because they are suing on the contract (crop insurance policies) that contains

the arbitration provision. Appellees incorporate all arguments set out herein

above and further state that the arbitration provision in question is

unconscionable. As found in Williams v. Williams 569 S.W.2d 867, 871 (Tex.

1978) and Hoover Slovacek 206 S.W.3d at 565 (citing RESTATMENT

(SECOND) OF CONTRACTS §208 (1981)) an unconscionable provision of

a contract may be severed so long as it does not constitute the essential

Page 21 purpose of the agreement. ld at 871 The arbitration clause contained in the

insurance policies in question does not constitute the essential part of the

agreement. The essential part of the agreement is that the Appellees' crops

would be insured against loss by the policy issued by Appellant Hudson

Insurance Company. In order to determine whether the invalid provision of

a contract affects the rest of the contract the courts look to see if the

remaining provisions of the contract can stand alone and specifically look at

the language of the contract itself. John R. Ray & Sons, Inc. v. Stroman, 923 S.W.2d 80, 86 (Tex.App.-Houston [14th Dist.] 1996, writ denied) (citing Hanks

v. GAB Bus. Servs., Inc., 644 S.W.2d 707, 708 (Tex. 1982)). Basically the

bottom line is whether the parties would have entered in to the agreement

absent the invalid/unenforceable provision (in this case the arbitration clause).

In the case at bar, the answer is yes. In Williams, 569, S.W.3d at 871, the

court allowed the severance of invalid (unconscionable) provisions since they

were "only a part of the many reciprocal promises in the agreement" and "did

not constitute the main or essential purpose of the agreement" between the

parties. Therefore, Appellant's claim that the Appellees are bound by the

contract simply by suing on the contract itself must fail and this Honorable

Court should uphold the decision from the trial court.

Page 22 CONCLUSION AND PRAYER

Appellants, Bruce Gamble Farms, Brian Jones Farms, and Jim Gamble

Farms have established that there was no "valid" arbitration agreement and

they were not provided with a copy of the policy containing the agreement.

Even if they had been provided with copies of the policies, the Appellees have

shown that the arbitration clause contained within the policies is

unconscionable and against public policy and therefore not enforceable.

Appellees claim that even if the unconscionable provision were to be severed

from the remaining contract, the contract could stand alone and still meet its

essential purpose.

Respectfully submitted,

LAW OFFICE OF ADOLFO E. CORDOVA, JR. 711 N. SAM HOUSTON SAN BENITO, TEXAS 78586 coindarosignol@yahoo.com (956) 399-1299 (956) 399-4484- FAX

BY: /s/ Adolfo E. Cordova. Jr. ADOLFO E. CORDOVA, JR. STATE BAR #00787287 ATTORNEY FOR APPELLEES BRUCE GAMBLE FARMS, BRIAN JONES FARMS, AND JIM GAMBLE FARMS

Page 23 CERTIFICATE OF COMPLIANCE

Pursuant to Texas Rule of Appellate Procedure 9.4, Appellant's counsel, Adolfo E. Cordova, Jr., certifies that Appellees' Brief was computer- generated via a proportionally spaced typed-faces using WordPerfect in 14 pt Aria I. This will further certify that, per the computer program, the total word count is 4, 718. In accordance with Rule 9.4(1), the total word count does not include the identity of parties and counsel, table of contents, index of authorities, record references and party abbreviation, statement ofjurisdiction, statement of the case, statement regarding oral argument, preamble and preliminary statement, issues presented, this certificate of compliance, certificate/proof of service, and Appellant's appendix.

Is/ Adolfo E. Cordova. Jr. ADOLFO E. CORDOVA, JR.

Page 24 CERTIFICATE OF SERVICE

This is to certify that on the 4th day of June 2015, a true and correct copy of this pleading/documents/motion/instrument was served on counsel of record via as follows:

COLVIN, CHANEY, SAENZ & RODRIGUEZ, L.L.P. ATTN: NORTON A. COLVIN, JR. ATTORNEY AT LAW 1201 E. VAN BUREN BROWNSVILLE, TEXAS 78522

(VIAE-FILE AND CMRRR # 7012 1010 0003 3812 2205)

KELLY, SUTTER, & KENDRICK, P.C. ATTN: STEVE E. COUCH ATTORNEY AT LAW 3050 POST OAK BLVD., SUITE 200 HOUSTON, TEXAS 77056-6570

(VIAE-FILE AND CMRRR # 7012 1010 003 3812 2212)

SIGNED THIS THE 4TH DAY OF JUNE, 2015.

Is/ Adolfo E. Cordova. Jr. ADOLFO E. CORDOVA, JR. STATE BAR #00787287 ATTORNEY FOR APPELLEES

Page 25 CAUSE NO. 13-15-00098-CV

v. BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, BRIAN JONES FARMS, AND CROPGUARD GROUP, INC., Appellees

Appealed from the 357th Judicial District Court of Cameron County, Texas Cause No.: 2014-DCL-03489-E

APPENDIX TO BRIEF OF APPELLEES

ADOLFO E. CORDOVA, JR. State Bar No. 00787287 711 N. Sam Houston San Benito, Texas 78586 Telephone: (956) 399-1299 Facsimile: (956) 399-4484

ATTORNEY FOR APPELLEES BRUCE GAMBLE FARMS, JIM GAMBLE FARMS, AND BRIAN JONES FARMS

Page 26 CONTENTS

EXHIBIT I TAB

A. 2013 CROP INSURANCE POLICY

B. AFFIDAVIT OF BRUCE GAMBLE

C. AFFIDAVIT OF BRIAN JONES

D. AFFIDAVIT OF JIM GAMBLE

Page 27 . . .

EXHIBIT "A" •,. ,1> '. •• ; ·' ••

CROP INSURANCE POLICY:·::_:_:. ·.:·.··.-:.' ..·· ..· -- .-.: ':;·,.·. SUMMARY OF CHANGES FOR THE COMMON CROP INSURANCE POLICY BASIC PROVISIONS- REINSURED VERSION (11-BR) (Released April 2010)

The following is a brief description of the changes to the Common Crop Insurance Policy Basic Provisions that will be effective for the 2011 crop year for all crops with a 2011 crop year contract change date on or after April 30, 2010, and for the 2012 crop year for all crops with a 2011 crop year contract change date prior to April 30, 2010. Please refer to the Basic Provisions for complete information.

Provisions have been revised to provide either revenue protection or yield protection for barley, canola and rapeseed, com, cotton, grain sorghum, rice, soybeans, sunflowers, and wheat. Revenue protection provides protection against loss of revenue caused by price changes or low yields or a combination of both (for corn silage and rapeseed, protection is only provided for production losses). Yield protection provides protection for production losses only. Crop Revenue Coverage (CRC), Income Protection (IP), Indexed Income Protection (liP), Revenue Assurance (RA), and Actual Production History (APH) plans of insurance previously available have been discontinued for these crops. A new policyholder must select either revenue protection or yield protection for these crops on their application for insurance. A new application is not required for carry-over policyholders. Carry- over policyholders who insured these crops under any of the discontinued revenue plans of insurance will automatically have revenue protection for the 2011 crop year. Carry-over policyholders who insured these crops under the APH plan of insurance will automatically have yield protection for the 2011 crop year. However, if a carry-over policyholder wishes to change or cancel the coverage that is automatically provided, the change must be made by the sales closing date or the policy must be canceled by the cancellation date. For all other crops covered under these Basic Provisions,the plans of insurance previously available will continue to be available.

For crops for which revenue protection is available, a projected price and a harvest price will be determined in accordance with the Commodity Exchange Price Provisions (CEPP). The CEPP includes the information necessary to derive the projected price and the harvest price including the applicable Commodity Exchange and the relevant futures trading days, if applicable . The CEPP will be available for public inspection on RMA's Web site at http://www.rma .usda.gov/, or a successor Web site, by the contract change date and will also be available in the agent's office. Crops for which revenue protection is not available will continue to use a price election or dollar amount of insurance, as applicable .

For yield protection, the yield protection guarantee will be determined by multiplying the production guarantee by the projected price. The projected price is also used to determine the premium, any replant payment or prevented planting payment, and to value the production to count. The harvest price is not used for yield protection.

For revenue protection, the revenue protection guarantee will be determined by multiplying the production guarantee by the greater of the projected price or the harvest price (if the harvest price exclusion is in effect, the revenue protection guarantee will be determined by multiplying the production guarantee by the projected price). The projected price is used to determine the premium, and any replant payment or prevented planting payment. The harvest price is used to value the production to count. Written agreements will be available under all plans of insurance. However, a written agreement cannot be used to establish revenue protection for a crop where the actuarial documents do not provide coverage for the crop in that State.

An enterprise unit will be available for yield protection and revenue protection. Enterprise units will be available for other plans of insurance only if provided for in the Special Provisions. A whole-fann unit will be available for revenue protection unless limited by the Special Provisions. A whole-farm unit will be available for other plans of insurance only if provided for in the Special Provisions.

Hail and fire coverage may be excluded under all plans of insurance. However, if the policyholder elected a whole-farm unit, hail and fire coverage may only be excluded if allowed by the Special Provisions.

Section 1- Definitions

Added definitions of "Commodity Exchange Price Provisions (CEPP)," "Cooperative Extension System," "harvest price," "harvest price exclusion.'' "insurable interest," "Intended acreage report," "organic agricultural experts," "projected price," "revenue protection," "revenue protection guarantee (per acre),.. "RMA's Web site," "verifiable records," "yield protection," and "yield protection guarantee (per acre)."

Revised the definition of "actuarial documents" by removing RMA's Web site address because a new definition for RMA's Web site has been added which includes the Web site address. Also added references to "crop insurance policies" and "prices."

Revised the definition of "agricultural experts" "to reference the "Cooperative Extension System" rather than the "Cooperative State Research, Education and Extension Service."

Revised the definition of "assignment of indemnity" to specify producers may only assign their right to an indemnity to creditors or other persons to whom they have a financial debt or other pecuniary · obligation. The previous definition allowed producers to assign their right to an indemnity to any party of their choice. Revised the definition of "average yield" to clarify which assigned yields are included when calculating the "average yield." Only the assigned yields determined In accordance with sections 3(f)(1) (failure to provide production report), 3(h)(1) (excessive yields), and 3(i) (second crop planted without double- cropping history on prevented planting acreage) are included. ·

Revised the definition of "catastrophic risk protection" to remove the provision that specified catastrophic risk protection is required before the producer may qualify for certain other USDA program benefits unless they execute a waiver of any eligibility for emergency crop loss assistance in connection with the crop. Also added a provision to specify catastrophic risk protection Is not available with revenue protection.

Revised the definition of "claim for indemnity" to specify it is a form that contains the information necessary to pay the indemnity as specified in the applicable FCIC issued procedures, and complies with the requirements in section 14. Removed the information regarding when the claim must be submitted because this information is already contained in section 14. \

Revised the definition of "conventional farming practice" to remove the language referencing "generally recognized by agricultural experts for the area to conserve or enhance natural resources and the environment. n This language is included in the definition of "sustainable fanning practice."

Revised the definition of "delinquent debr to specify it will have the same meaning as the term contained in 7 CFR part 400. subpart U.

Revised the definition of "enterprise unir by removing the qualification requirements. These provisions are included in section 34. The definition requires all insurable acreage of the same insured crop in the county insured to be included in one enterprise unit; therefore, all fall or winter and spring types of a crop will be included in one enterprise unit.

Revised the definitions of "generally recognized" and "good farming practices" by removing the phrase "the organic agricultural industry" and adding the phrase "organic agricultural experts" in its place.

Revised the definition of "liability" to specify it is the producers total amount of insurance. value of the production guarantee, or revenue protection guarantee for the unit detennined in accordance with the Settlement of Claim provisions of the applicable Crop Provisions.

Revised the definition of "limited resource fanner" to specify it has the same meaning as the term defined by USDA at http://www.lrftool.sc.egov.usda.gov/LRP-D.htm. ·

Revised the definition of "policy" by adding the phrase "the Commodity Exchange Price Provisions, if applicable," since these provisions are part of the policy. ·

Revised the definition of "prevented planting" for clarification. Also added language specifying failure to plant because of uninsured causes such as lack of proper equipment or labor to plant acreage, or use of a particular production method, is not considered prevented planting. · ·

Revised the definition of aprice election" to specify that a price election is not applicable for crops for which revenue protection is available. · ·

Revised the definition of "production report" to specify supporting records must be in accordance with FCIC approved procedures.

Revised the definition of "share" to add the word "insurable" before the word "interest" and remove the word "percentage."' These changes make the terms in this definition consistent with the new definition of "insurable interest."

Revised the definition of "substantial beneficial interest" to refer to "the applicable State dissolution of marriage laws" rather than "State law" to detennine whether the spouse is considered to have a substantial beneficial Interest in the insured or applicant.

Revised the definition of "void" by removing the phrase "concealment, fraud or misrepresentation (see section 27) because a policy may be void for reasons other than those contained fn section 27.

Revised the definition of "whole-farm unit" by removing the qualification requirements. These provisions are included in section 34. The definition requires all insurable acreage of all the insured crops planted in the county for which whole-farm unit structure is available to be included in one whole-farm unit; therefore, all fall or winter and spring types of a crop will be included in one whole- farm unit.

Removed the definition of "economic significance" because this definition Is in 7 CFR part 400, Subpart T and in the CAT endorsement. Also replaced the definition of "organic agricultural industry" with the definition of "organic agricultural experts."

Section 2(b)(1)- Clarified that an individual applicant operating as a business may report an Employer Identification Number (EIN), but must also report their Social Security Number (SSN).

Section 2(b)(4)- Revised the provisions to include references to revenue protection, yield protection and percentage of projected price.

Section 2(b)(5) - Added provisions specifying the consequences when an applicant provides an incorrect identification number. The policy will be void if an incorrect SSN or EIN Is not corrected, the producer corrects the SSN or EIN but cannot prove the error was inadvertent, it is determined the incorrect number would have allowed the producer to obtain disproportionate benefits under the crop insurance program, or the producer is determined to be ineligible for insurance or could avoid an obligation or requirement under any State or Federal law.

Section 2(b)(6) - Revised the provisions to specify the substantial beneficial interest (SBI) of an individual's spouse is presumed to be 50 percent. The provisions also specify a policy will be void if the identification number of a person with a SBI was omitted and is not provided, Is incorrect and is not corrected, is corrected but there is no proof the error was inadvertent, it is determined the incorrect number would have allowed the producer to obtain disproportionate benefits under the crop insurance program, or the SBI holder is determined to be ineligible for insurance or it is determined there is an attempt to avoid an obligation or requirement under any State or Federal law.

Section 2(b){7) - Revised the provisions to specify if the policy is void the producer will be required to pay an amount equal to 20 percent of the premium that the producer would otherwise be required to pay.

Section 2(b)(9)- Revised the provisions to specify if SBI holders change after the sales closing date. the application must be revised by the sales closing date for next crop year. However. if the information changes less than 30 days before the sales closing date for the current crop year, the application must be revised by the sales closing date for the next crop year.

Section 2(b)(10)- Revised the provisions to specify if the producer or a person with a SBIIn the producer is not eligible to obtain an SSN or an EIN, the producer must request an assigned number from the insurance provider for the purposes of the policy. If a number cannot be provided for someone with a SBI in the producer, the amount of coverage for all crops on the application will be reduced proportionately by the percentage interest in the producer of such persons.

Section 2(f)(2){i)(A) and {B)- Revised the provisions to specify for policies for which the sales closing date is prior to the tennination date. the policy will terminate for debt for the current crop year even If insurance attached prior to the termination date. Such termination will be considered effective as of the sales closing date and no insurance will be considered to have attached for the crop year.

Section 2(f)(2)(i){D) - Revised to clarify the crop year for which a policy will be terminated for failure to make a payment under any written payment agreement and added an example. Section 2(g)(1) - Revised the provisions to specify if a married insured dies, disappears, or isjudicially declared incompetent. the policy will automatically convert to the name of the spouse if the spouse was listed as having a SBI in the insured and has a share of the crop.

Sections 2(g)(2) and (3)- Revised the provisions to specify if a partner, member, shareholder, etc., of an insured entity, dies, disappears, or is judicially declared incompetent more than 30 days before the cancellation date and such event automatically dissolves the entity, the policy is automatically canceled as of the cancellation date and a new application must be submitted. If such an event occurs 30 days or less before the cancellation date or after the cancellation date, the policy will continue In effect through the crop year, unless it Is canceled by the cancellation date. and will be automatically canceled as of the cancellation date immediately following the end of the insurance period for the crop year.

Section 2(g)(4) - Revised the provisions to specify if an insured entity is dissolved for reasons other than death. disappearance or judicially declared· incompetence, and such event occurs before the · cancellation date, the policy Is automatically canceled as of the cancellation date. If such event occurs on or after the cancellation date, the policy will continue in effect through the crop year immediately following the cancellation date and be automatically canceled as of the cancellation date · immediately following the end of the insurance period for the crop year.

Section 2(g)(5) - Added a provision requiring a remaining member of an insured person or a beneficiary to advise the insurance provider of a death, disappearance, judicial incompetence, or other event that causes dissolution of an entity.

Section 3 - Revised and refonnatted this section to include references to yield protection, revenue protection. and other plans of insurance.

Section 3(c)(2)- Added a provision specifying the producer's projected price and harvest price for revenue protection will be 100 percent of the projected price and harvest price issued by FCIC.

Section 3(c)(5)- Added provisions specifying what occurs when the projected price or harvest price cannot be calculated in accordance with the CEPP. ·· '

Section 4 - Revised the provisions to include references to the CEPP. Also, clarified that the producer may elect to receive documents and changes electronically, if available from the insurance provider.

Section 6(c)(1) - Revised the provisions to specify the acreage report must include the last date the crop was planted for all acreage in the unit planted by the final planting date and the date of planting and the amount of acreage planted per day for acreage planted during the late planting period. If the producer does not report the number of acres planted in the late planting period on a daily basis, all acres planted in the late planting period will be presumed to have been planted on the last day planting took place in the late planting period.

Section 6(c)(5)- Added provisions regarding inclusion of a land identifier (e.g. legal description, FSA farm serial number or common land unit number. etc.) on the acreage report.

Section 6(d)(3)- Revised provisions regarding acreage measurement requests. Sedion 6(g) - Removed the provisions that provided for a misreporting information factor when a producer misreported liability in excess of 10 percent of the correct liability. Also added provisions to specify if the producer's share is mlsreported and the share Is under-reported, any claim will be determined using the share the producer reported, or, if the share is over-reported, any claim will be determined using the share the Insurance provider determines to be correct.

Section 9(a) - Revised and reformatted the provisions. Added provisions to specify that insurable acreage must have been planted to an agricultural commodity other than a cover, hay • or forage crop (except com or sorghum silage), unless Insurance is for a hay or forage crop.

Section 10 - Revised and reformatted the provisions. Added provisions to clarify when the acreage or interest of the spouse, child, or household member will be included In the Insured's share. If it is determined that the spouse, child, or other member of the·household has a separate policy but does not have a separate fanning operation, the spouse's, child's, or other person's policy will be void and no premium will be due or no indemnity paid for those policies.

Section 11 - Clarified provisions regarding the end of the insurance period when insurance ends on a portion of a unit.

Section 12(a)- Added provisions to specify any act by any person that affects the yield, quality or price of the insured crop (e.g. chemical drift, fire, terrorism, etc.) is not an insured cause of loss.

Section 12(d)- Added provisions to clarify the inability to prepare the land for irrigation. using the producer's established irrigation method, is a covered cause of loss if the inability Is due to an insured cause of loss specified in the Crop Provisions.

Section 13(a) -Added provisions to specify if the crops to be replanted are in a whole-farm unit, the 20 acres or 20 percent requirement is to be applied separately to each crop to be replanted in the whole-farm unit.

Section 13(c)- Added provisions to specify the Special Provisions may indicate the amount per acre of a replant payment. Also added provisions to specify the Crop Provisions or Special Provisions may indicate actual costs will not be considered when detennining the amount of a replant payment.

Section 14- Reformatted the provisions to Improve readability and eliminate duplication.

Section 14(b) - Clarified that notice of damage or loss of production is required regardless of whether the producer has harvested the crop. Added provisions to specify for revenue protection, if there is no damage or loss of production, the producer must give notice of a revenue loss not later than 45 days after the latest date the last harvest price is released for any crop in the unit.

Section 14(e)- Added provisions specifying that for revenue protection, a claim must be submitted declaring the amount of the producer's loss by the later of 60 days after the latest date the harvest price is released for any crop in the unit or 60 days after the end of the insurance period.

Section 14(j) - Added a provision allowing preliminary indemnity payments to be made for revenue protection prior to the release of the harvest price, if the producer has not elected the harvest price exclusion. Section 15(b)(1)- Added provisions to specify if the producer fails to provide verifiable records of harvested production. no indemnity will be paid and the producer will be required to return any previously paid indemnity for the unit that was based on an appraised amount of production.

Section 15(1) - Added provisions regarding record requirements for double cropping. When a producer uses their own records of double cropping, the double cropping exemption may be used for any acreage in the producer•s farming operation. However, if another producers records are used. the exemption can only be used for the specific acreage that was previously double cropped. These same changes are included in section 17(f)(4). ·

Section 17(a)(1)- Moved the provisions regarding "failure to plant when other producers In the area were planting" from this section to section 17(d)(2). These provisions were moved to section 17(d)(2) so they only apply in cases where the cause of foss is not drought related. In a drought situation. some producers may elect to plant anticipating the retum of nonnal precipitation, even though all requirements for a prevented planting payment (extended period of drought. insufficient soil moisture. etc.) have been met.

Section 17(b)(4)- Revised the provisions to specify a producer cannot increase their elected or assigned prevented planting coverage level if a cause of foss that could prevent·planting (even though it is not known whether such cause will actually prevent planting) occurred during the prevented planting insurance period and prior to the time the increase was requested.

Section 17(e)- Reformatted the provisions to improve readability.

Section 17(e)(1)(i) and (ii)- Clarified that a producer will be considered to have planted a crop in one of the last four crop years if their APH database contains actual planted acres. ·

Section 17(e)(1)(i)(C)- Added provisions regarding increasing eligible irrigated acres when a producer adds irrigation facilities to their own acreage or obtains additional irrigated acreage.

Section 17(e)(1)(ii)(A)(2)- Added provisions allowing a producer to submit an intended acreage report within 10 days of obtaining acreage in a county if the producer did not have ny acreage in the county on or before the sales closing date. ·

Section 17(f)(1) -Added provisions specifying for a whole-fann unit. the rule requiring 20 acres or 20 percent of the insurable acreage be prevented from being planted is applied separately for each crop.

Section 17(f)(4)(ii) - Revised provisions to require double cropping records of the crop that was prevented from being planted. The previous provisions required double cropping records of the first insured crop.

Section 17(f)(6) - Added provisions to clarify that cover plants seeded. transplanted. or that volunteer more than 12 months prior to the final planting date will be considered pasture or forage that is in place.

Section 17(f)(9) - Clarified provisions regarding proof of inputs to produce the insured crop.

Section 17(h)- Revised provisions to limit prevented planting payments to the amount payable for the crop that was actually prevented from being planted. when there are insufficient eligible acres for the insured crop, but there are remaining eligible acres for a crop with a higher prevented planting payment amount.

Section 18(c)(3) and (4)- Added provisions indicating if a written agreement is for a county where revenue protection Is not available for the crop. but revenue protection is available for the crop in the State. the written agreement will contain the Information used to establish the projected price and harvest price. as applicable. If revenue protection is not available in the State, but Is available in another State, the written agreement will be for yield protection only and will contain the information needed to determine the projected price.

Section 18(1) - Added provisions specifying the written agreement will be denied unless the insurance provider accepts the written agreement offer.

Section 18(o) - Added provisions to clarify when producers may obtain administrative review or appeal when they disagree with determinations made by FCIC regarding written agreements.

Section 20(d) - Clarified provisions to specify insurance providers will make decisions regarding what constitutes a good farming practice. If a producer disagrees with the insurance provider's decision, they must request a determination from FCIC. If the determination is adverse to the producer. the producer may request reconsideration or file suit against FCIC. The provisions have also been changed to·allow a producer to file suit against FCIC without first seeking reconsideration of FCIC's adverse determination.

Section 20(k)- Moved and clarified provisions previously contained in section 20(a)(1)(iii) regarding any determination made by FCIC that Is a matter of general applicability is not subject to administrative review or appeal. Also added provisions stating the producer must request a determination of non-appealability from the Director of the·National Appeals Division before seeking judicial review.

Section 21 - Revised the example to clarify the length of time production records must be kept. Also added provisions to specify yields that are knowingly misreported may be adjusted. regardless of whether the record retention period has expired.

Section 27(b)- Revised provisions to specify the producer will still be required to pay 20 percent of the premium that the producer would otherwise be required to pay in the event the policy has been voided.

Section 29 - Reformatted the provisions to improve readability. Revised the provisions to specify the producer may assign the producer's right to an indemnity for the crop year only to creditors or other persons to whom the producer has a financial debt or other pecuniary obligation. The producer may be required to provide proof of the debt or other pecuniary obligation before the insurance provider will accept the assignment of indemnity. Each assignment form may contain more than one creditor or other person to whom the producer has a financial debt or other pecuniary obligation. The insurance provider will not be liable for any financial debt or other pecuniary obligation if the producer failed to include such lienholder on the assignment form nor to pay any amount greater than the total amount of indemnity owed under the policy. The assignee may submit the claim for indemnity not later than 30 days after the period for filing a claim has expired. Section 30 - Removed the provisions and reserved the section because there is no instance where the producer would have a right of subrogation against a third person where the loss would be covered under the policy.

Section 34(a)(1) and (2)- Added provisions to specify enterprise units may be elected only for crops for which revenue protection is available or if allowed by the Special Provisions. Also added provisions to specify whole-farm units may be elected only for crops for which revenue protection is elected and is In effect unless limited by the Special Provisions or if allowed by the Special Provisions.

Section 34(a)(3)(i) - Added provisions to allow a producer to elect an enterprise or whole-farm unit until the spring sales closing date in counties with fall or winter and spring sales closing dates, provided the producer does not have any insured fall planted acreage of the insured crop.

Section 34(a)(4)(i)- Revised the enterprise unit provisions to require at least two sections, section equivalents. FSA farm serial numbers. or units established by written agreement, whichever are the basis for optional units where the Insured acreage is located or are applicable to the Insured acreage. Added provisions to allow a combination of two or more sections, section equivalents, or FSA fann serial numbers, if more than one of these are the basis for optional units where the insured acreage is located or are applicable to the insured acreage (for example, a portion of the acreage is located In an area where sections are the basis for optional units and another portion of the acreage is located in an area where FSA farm serial numbers are the basis for optional units). Also added provisions to allow one section, section equivalent. or FSA farm serial number to qualify for an enterprise unit, based on whichever type of parcel is the basis for optional units where the Insured acreage is located, provided there are at least 660 planted acres of the insured crop in such section, section equivalent. or FSA farm serial number.

Section 34(a)(4)(ii) - Revised the provisions to specify that at least two of the sections, section equivalents, FSA farm serial numbers, or units established by written agreement,· whichever are the basis for optional units where the insured acreage is located or are applicable to the insured acreage, must each have planted acreage that constitutes at least the lesser of 20 acres or 20 percent of the Insured crop acreage in the enterpaise unit. Aleo sdded provisions that if there is planted acreage in more than two sections. section equivalents, FSA farm serial numbers or units established by written agreement, these parcels can be aggregated to form at least two parcels to meet this requirement.

Section 34(a)(4)(vii) - Revised the provisions to specify that if it is discovered on or before the acreage reporting date that the producer failed to qualify for an enterprise unit, basic or optional units will apply based on whichever unit structure the producer reported on their acreage report and qualifies for. If such discovery was made after the acreage reporting date. basic units will be assigned. Similar provisions were added to section 34(a)(5)(v) regarding unit structure that will apply when a producer fails to qualify for a whole-farm unit.

Section 34(a)(5)(i)(C) - Added provisions to specify planted acreage of at least two of the insured crops in a whole-farm unit must each constitute 10 percent or more of the total planted acreage liability of all insured crops in the whole-farm unit.

Section 35 - Restructured the provisions for clarity. Also added provisions specifying how to determine the amount of the actual loss for crops with and without revenue protection. 11-BR (Released April 2010) COMMON CROP INSURANCE POLICY (This is a continuous policy. Refer to section 2.) This insurance policy is reinsured by the Federal Crop Insurance Corporation (FCIC) under the provisions of the Federal Crop Insurance Act (Act) (7 U.S.C. 1501 et §!gJ. All provisions of the policy and rights and responsfbDftfes of the parties are specifically subject to the Act. The provisions of the polfcy may not be waived or varied In any way by us, our insurance agent or any other contractor or employee of ours or any employee of USDA unless the policy specifically authorizes a waiver or modification by written agreement. We will use the procedures (handbooks, manuals, memoranda and bulletins), as issued by FCIC and published on RMA's Web site at http:llwww.rrna.usda.gov/ or a successor Web site, in the administration of this policy, Including the adjustment of any loss or claim submitted hereunder. In the event that we cannot pay your loss because we are insolvent or are otherwise unable to perform our duties under our reinsurance agreement with FCIC, your claim will be settled in accordance with the provisions of this policy and FCIC will be responsible for any amounts owed. No state guarantee fund will be liable for your loss.

Throughout this policy, u·and )'our" refer to the named insured shown on the accepted application and 'We," "us,• and "our" refer to the insurance company providing Insurance. Unless the context indicates otherwise, use of the plural form of a word Includes the singular and use of the singular form of the word Includes the plural.

AGREEMENT TO INSURE: In return for the payment of the premium, and subject to all of the provisions of this policy, we agree with you to provide the insurance as stated In this policy. If there Is a conflict between the Act. the regulations published at 7 CFR chapter IV, and the procedures as issued by FCIC, the order of priority is: (1) the Act; (2) the regulations: and (3) the procedures as issued by FCIC, with (1) controlling (2), etc. If there is a conflict between the policy provisions published at 7 CFR part 457 and the administrative regulations published at 7 CFR part 400, the policy provisions published at 7 CFR part 457 control. If a conflict exists among the policy provisions. the order of priority is: (1) the Catastrophic Risk Protection Endorsement, as applicable; (2) the Special Provisions; (3) the Commodity Exchange Price Provisions, as applicable: (4).the Crop Provisi and15lthese Basic Provisions, with (1) controlfing12), etc.

TERMS AND CONDITIONS BASIC PROVISIONS

1. Definitions. prices, premium rates, premium adjustment percentages, Abandon - Failure to continue to care for the crop, practices. particular types or varieties of the Insurable providing care so Insignificant as to provide no benefit to crop, insurab!e acreage, and other related information the crop, or failure to harvest in a timely manner, unless regarding crop insurance in the county. an Insured cause of loss prevents you from properly Additional coverage - A level of coverage greater than caring for or harvesting the crop or causes damage to it catastrophic risk protection. to the extent that most producers of the crop on acreage Administrative fee - An amount you must pay for with similar characteristics in the area would not normally catastrophic risk protection, and additional coverage for further care for or harvest it. each crop year as specified in section 7 and the Acreage report - A report required by section 6 of these Catastrophic Risk Protection Endorsement. Basic Provisions that contains. in addition to other Agricultural commodity - Any crop or other commodity required. Information. your report of your share of an produced, regardless of whether or not it Is Insurable. acreage of an insured crop in the county, whether Agricultural experts - Persons who are employed by insurable or not Insurable. the Cooperative Extension System or the agricultural Acreage reporting date - The date contained in the departments of universities, or other persons approved Special Provisions or as provided In section 6 by which by FCIC, whose research or occupation is related to the you are required to submit your acreage report. specific crop or practice for which such expertise is Act- The Federal Crop Insurance Act (7 U.S.C. 1501 .§1 sought. i§gJ. Annual crop - An agricultural commodity that normally Actual Production History (APH) - A process used to must be planted each year. determine production guarantees in accordance with 7 Application - The form required to be completed by you CFR part 400, subpart (G). and accepted by us before insurance coverage will Actual yield - The yield per acre for a crop year commence. This form must be completed and filed In calculated from the production records or claims for your agenrs office not later than the sales closing date of indemnities. The actual yield Is determined by dividing the initial insurance year for each crop for which total production (which includes harvested and appraised insurance coverage is requested. If cancellation or production) by planted acres. termination of Insurance coverage occurs for any reason, Actuarial documents - The Information for the crop year including but not limited to Indebtedness, suspension, which is available for public inspection fn your agent's debarment, disqualification. cancellation by you or us or office and published on RMA's Web site and which violation of the controlled substance provisions of the shows available crop insurance policies, coverage revels, Food Security Act of 1985, a new application must be information needed to determine amounts of insurance, filed for the crop. Insurance coverage will not be (1 of40) provided if you are ineligible under the contract or under Certified organic acreage - Acreage in the certified any Federal statute or regulation. organic farming operation that has been certified by a Approved yield - The actual production history (APH) certifying agent as conforming to organic standards in yield, calculated and approved by the verifier, used to accordance with 7 CFR part 205. determine the production guarantee by summing the Certifying agent - A private or governmental entity yearly actual. assigned, adjusted or unadjusted accredited by the USDA Secretary of Agriculture for the transitional yfelds and dividing the sum by the number of purpose of certifying a production. processing or yields contained in the database, which will always handling operation as organic. contain at least four yields. The database may contain Claim for Indemnity - A claim made on our form that up to 10 consecutive crop years of actual or assigned contains the information necessary to pay the indemnity, yields. The approved yield may have yield adjustments as specified in the applicable FCIC issued procedures, elected under section 36, revisions according to section and complies with the requirements In section 14. 3, or other limitations according to FCIC approved Code of Federal Regulations (CFR) - The codification procedures applied when calculating the approved yield. of general and permanent rules published in the Federal Area - Land surrounding the Insured acreage with Register by the Executive departments and agencies of geographic characteristics, topography, son types and the Federal Government. Rules published in the Federal climatic conditions similar to the insured acreage. Register by FCIC are contained in 7 CFR chapter IV. Assignment of indemnity - A transfer of policy rights, The full text of the CFR is available In electronic format at made on our form, and effective when approved by us in http:/{www.access.gpo.gov/ or a successor Web site. writing, whereby you assign your right to an indemnity Commodity Exchange Price Provisions (CEPP) - A payment for the crop year only to creditors or other part of the policy that Is used for all crops for which persons to whom you have a financial debt or other revenue protection is available. regardless of whether pecuniary obligation. you elect revenue protection or yield protection for such Average yield - The yield calculated by totaling the crops. This document includes the information yearly actual yields, assigned yields in accordance wJth necessary to derive the projected price and the harvest sections 3{f)(1) (failure to provide production report), price for the tnsured crop, as applicable. 3(h)(1) (excessive yields). and 3(1) (second crop planted Consent - Approval in writing by us allowing you to take without double cropping history on pr$vented planted a specific action. acreage), and adjusted or unadjusted transitional yields, Contract- (See "policy•). and dividing the total by the number of yields contained Contract change date • The calendar date by which in the database. changes to the policy, if any, will be made available In Basic unit - All insurable acreage of the insured crop in accordance with section 4 of these Baste Provisions. the county on the date coverage begins for the crop year: Conventional fanning practice - A system or process (1) In which you have 100 percent crop share; or that is necessary to produce an agricultural commodity. (2) Which is owned by one person and operated by excluding organic farming practices. another person on a share basis. (Example: If, in Cooperative Extension System -A nationwide network addition to the land you own, you rent land from five consisting of a State office located at each State's land- landlords, three on a crop share basis and two on a grant university, and local or regional offices. These cash b Jsis, you would be entitled to four units; one offices are staffed by one or more agricultural experts, for each crop share lease and one that combines who work in cooperation with the Cooperative State the two cash leases and the land you own.) Land Research, Education and Extens£on Service, and who which would otherwise be one unit may. In certain provide infonnatfon to agricultural producers and others. instances, be divided according to guidelines County - Any county, parish, or other political contained in section 34 of these Basic Provisions subdivision of a state shown on your accepted and In the applicable Crop Provisions. application, including acreage In a field that extends into Buffer zone - A parcel of land, as designated in your an adjoining county if the county boundary Is not readily · organic plan, that separates agricultural commodities discermble. grown under organic practices from agricultural Cover crop - A crop generally recognized by agricultural commodities grown under non-organic practices, and experts as agronomically sound for the area for erosion used to minimize the possibility of unintended contact by control or other purposes related to conservation or soil prohibited substances or organisms. improvement A cover crop may be considered to be a Cancellation date - The calendar date specified in the second crop (see the definition of asecond crop•). Crop Provisions on which coverage for the crop will Coverage - The insurance provided by this policy. automatically renew unless canceled in writing by either against insured loss of production or value, by unit as you or us or terminated in accordance with the policy shown on your summary of coverage. terms. Coverage begins, date - The calendar date insurance Catastrophic risk protection - The minimum level of begins on the insured crop, as contained in the Crop coverage offered by FCIC. Catastrophic risk protection Provisions. or the date planting begins on the unit (see is not available with revenue protection. section 11 of these Basic Provisions for specific Catastrophic Risk Protection Endorsement - The part provisions relating to prevented planting). of the crop insurance policy that contains provisions of insurance that are specific to catastrophic risk protection.

(2 of40) Crop Provisions - The part of the policy that contains FSA farm serial number - The number assigned to the the specific provisions of insurance for each insured farm by the local FSA office. crop. Generally recognized - When agricultural experts or Crop year - The period within which the insured crop is organic agricultural experts, as applicable, are aware of nonnally grown, regardless of whether or not it is actually the production method or practice and there is no grown, and designated by the calendar year in which the genuine dispute regarding whether the production insured crop Is normally harvested, unless otherwise method or practice allows the crop to make normal specified in the Crop Provisions. progress toward maturity a d produce at least the yield Damage - Injury, deterioration, or loss of production of used to determine the production guarantee or amount of the Insured crop due to insured or uninsured causes. insurance. Days - Calendar days. Good farming practices - The production methods Deductible - The amount detennined by subtracting the utilized to produce the insured crop and allow it to make coverage level percentage you choose from 100 percent normal progress toward maturity and produce at least the For example, If you elected a 65 percent coverage level, yield used to determine the production guarantee or your deductible would be 35 percent (100% - 65% == amount of insurance, fnduding any adjustments for late 35%). planted acreage. which are: (1) For conventional or Delinquent debt - Has the same meaning as the term sustainable farming practices, those generally defined in 7 CFR part 400, subpart U. recognized by agricuHural experts for the area; or (2) for Disinterested third party - A person that does not have organic farming practices, those generally recognized by any familial relationship (parents. brothers, sisters, organic agricuHural experts for the area or contained in chifdren, spouse, grandchifdren, aunts, uncles, nieces, the organic plan. We may, or you may request us to, nephews, first cousins, or grandparents, related by contact FCIC to determine whether or not production blood, adoption or marriage, are considered to have a methods will be considered to be •good fanning familial relationship) with you or who will not benefit practices.• financially from the sale of the insured crop. Persons Harvest price - A price determined In accordance with who are authorized to conduct quality analysis In the Commod"lty Exchange Price Provisions and used to accordance with the Crop Provisions are considered value production to count for revenue protection. disinterested third parties unless there is a familial Harvest price exclusion - Revenue protection with the relationship. use of the harvest price excluded when determining your Double crop - Producing two or more crops for harvest revenue protection guarantee. This election is on the same acreage in the same crop year. continuous unless canceled by the cancellation date. Earliest planting date - The initial planting date Household - A domestic establishment including the contained in the Special Provisions, which Is the earliest members of a family (parents, brothers, sisters, chffdren. date you may plant an insured agricultural commodity spouse, grandchildren, aunts, uncles, nieces, nephews, and qualify for a replanting payment if such payments first cousins. or grandparents, related by blood, adoption are authorized by the Crop Provisions. or marriage, are considered to be family members) and End of Insurance period, date of - The date upon others who live under the same roof. which your crop insurance coverage ceases for the crop Insurable ln•rest - Your percentage of the Insured crop year (see Crop Provisions and section 11). that is at financial risk. Enterprise unit - AU insurable acreage of the same Insurable loss - Damage for which coverage is provided insured crop in the county in which you have a share on under the terms of your poDcy, and for which you accept the date coverage begins for the crop year, provided the an indemnity payment. requirements of section 34 are met. Insured - The named person as shown on the Field - All acreage of tillable land within a natural or application accepted by us. This term does not extend to artificial boundary roads, waterways, fences, etc.). any other person having a share ·or interest in the crop Different planting patterns or planting different crops do (for example, a partnership, landlord, or any other not create separate fields. person) unless specifically Indicated on the accepted Final planting date - The date contained in the Special application. Provisions for the insured crop by which the crop must Insured crop - The crop in the county for which initially be planted In order to be insured for the full coverage Is available under your policy as shown on the production guarantee or amount of insurance per acre. application accepted by us. First Insured crop - With respect to a single crop year Intended acreage report - A report of the acreage you and any specific crop acreage, the first instance that an intend to plant, by crop, for the current crop year and agricultural commodity is planted for harvest or used solely for the purpose of establishing eligible prevented from being planted and is insured under the prevented planting acreage, as required In section 17. authority of the Act. For example, if winter wheat that Is lnterplanted - Acreage on which two or more crops are not insured is planted on acreage that is later planted to planted In a manner that does not permit separate soybeans that are insured, the first insured crop would agronomic maintenance or harvest of the insured crop. be soybeans. If the winter wheat was insured, it would Irrigated practice - A method of producing a crop by be the first insured crop. which water is artificially applied during the growing FSA - The Farm Service Agency. an agency of the season by appropriate systems and at the proper times. USDA, or a successor agency. with the intention of providing the quantity of water

(3 of40) needed to produce at least the yield used to establish the agency of a State. •person• does not include the United irrigated production guarantee or amount of insurance on States Govemment or any agency thereof. the irrigated acreage planted to the insured crop. Planted acreage - Land In which seed, plants, or trees Late planted - Acreage initially planted to the insured have been placed, appropriate for the insured crop and crop after the final planting date. planting method, at the conect depth, into a seedbed that Late planting period - The period that begins the day has been properly prepared for the planting method and after the final planting date for the Insured crop and ends production practice. 25 days after the final planting date, unless otherwise Polley- The agreement between you and us to Insure an specified in the Crop Provisions or Special Provisions. agricultural commodity and consisting of the accepted Uablllty - Your total amount of Insurance, value of your application, these Basic Provisions, the Crop Provisions, production guarant e. or revenue protection guarantee the Special Provisions, the Commodity Exchange Price for the unit determined fn accordance with the Settlement Provisions, if applicable, other appficable endorsements of Claim provisions of the applicable Crop Provisions. or options, the actuarial documents for the insured Umited resource farmer - Has the same meaning as agricultural commodity. the Catastrophic Risk Protection the term defined by USDA at Endorsement, if applicable, and the appDcabfe htto:/fwww.lrftool.sc.egov.usda.gov/LRP-D.htm. regulations published In 7 CFR chapter IV. Insurance for Native sod - Acreage that has no record of being tilled each agricultural commodity in each county will (determined in accordance with FSA or other verifiable constitute a separate policy. records acceptable to us) for the production of an annual Practical to replant - Our detennfnation, after loss or crop on or before May 22, 2008, and on which the plant · damage to the insured crop, based on ·all factors, cover is composed principally of native grasses, grass- including, but not limited to moisture availabHity, like plants, forbs, or shrubs suitable for grazing and marketing window, condition of the field, and time to crop browsing. maturity. that replanting the insured crop wHI allow the Negligence - The failure to use such care as a crop to attain maturity prior to the calendar date for the reasonably prudent and careful person would use under end of the insurance period. It Will be considered to be similar circumstances. practical to replant regardless of availability of seed or Non-contiguous - Acreage of an Insured crop that is plants, or the input costs necessary to produce the separated from other acreage of the same insured crop insured crop such as those that would be incurred for by land that is neither owned by you nor rented by you seed or plants. irrigation water, etc. for cash or a crop share. However, acreage separated Prairie Pothole National Priority Area .. Consists of by only a public or private right-of-way, waterway, or an specific counties within the States of Iowa, Minnesota, irrigation canal will be considered as contiguous. Montana, North Dakota or South Dakota as specified on Offset - The act of dedudlng one amount from another the RMA Web site at htto:/fwww.rma.usda.gov/, or a · amount. successor Web site, or the Farm Service Agency, Organic agricultural experts - Persons who are Agricultural Resource Conservation Program 2-CRP employed by the following organizations: Appropriate (Revision 4), dated April 28, 2008, or a subsequent Technology Transfer for Rural Areas, Sustainable publication. Agriculture ReGearch and Education or the Cooperative Premium billing date ... The earliast date UJJOn which Extension System, the agricuHural departments of you will be blUed for insurance coverage based on your universities, or other persons approved by FCIC, whose acreage report. The premium billing date is contained fn research or occupation is related to the specific organic the Special Provisions. crop or practice for which such expertise is sought. Prevented planting - FaHure to plant the insured crop by Organic crop - An agricultural commodity that is the final planting date designated In the Special organically produced consistent with section 2103 of the Provisions for the insured crop in the county, or within Organic Foods Production Ad of 1990 (7 U.S.C. 6502). any applicable late planting period, due to an insured Organic farming practice - A system of plant production cause of loss that is general to the surrounding area and practices used to produce an organic crop that is that prevents other producers from planting acreage with approved by a certifying agent in accordance with 7 CFR similar characteristics. Failure to plant because of part205. uninsured causes such as lack of proper equipment or Organic plan - A written plan, in accordance with the labor to plant acreage, or use of a particular production National Organic Program published in 7 CFR part 205, method, is not considered prevented planting. that describes the organic farming practices that you and Price election - The amounts contained in the Special a certifying agent agree upon annually or at such other Provisions, or in an addendum thereto, that is the value times as prescribed by the certifying agent. per pound, bushel, ton. carton, or other applicable unit of Organic standards - Standards in accordance with the measure for the purposes of determining premium and Organic Foods Production Act of 1990 (7 U.S.C. 6501 !I indemnity under the policy. A price election is not seq.) and 7 CFR part 205. applicable for crops for which revenue protection is Perennial crop -A plant, bush, tree or vine crop that has available. a life span of more than one year. Production guarantee (per acre) - The number of Person - An individual, partnership, association, pounds, bushels. tons, cartons, or other applicable units corporation, estate, trust, or other legal entity, and of measure determined by multiplying the approved yield wherever applicable, a State or a poHtical subdivision or per acre by the coverage level percentage you elect.

(4 of40) Production report - A written record showing your last date by which you may change your crop Insurance annual production and used by us to determine your coverage for a crop year. yield for Insurance purposes In accordance with section Second crop - WHh respect to a single crop year. the 3. The report contains yield infonnation for previous next occurrence of planting any agricultural commodity years, including planted acreage and production. This for hatvest following a first Insured crop on the same report must be supported by written verifiable records acreage. The second crop may be the same or a from a warehouseman or buyer of the insured crop, by different agricultural commodity as the first Insured crop, measurement of farm-stored production, or by other except the tenn does not include a replanted crop. A records of production approved by us on an Individual cover crop, planted after a first insured crop and planted case basis in accordance with FCIC approved for the purpose of haying, grazing or otherwise procedures. hatveSting In any manner or that is hayed or grazed Prohibited substance - Any biological, chemical, or during the crop year, or that is otherwise hatvested Is other agent that is prohibited from use or Is not included considered to be a second crop. A cover crop that is fn the organic standards for use on any certified organic. covered by FSA's nonfnsured crop disaster assistance transitional or buffer zone acreage. Lists of such program (NAP) or receives other USDA benefits substances are contained at 7 CFR part 205. associated with forage crops will be considered as Projected price - The price for each crop determined in planted for the purpose of haying. grazing or otherwise accordance with the Commodity Exchange Price hatvestfng. A crop meeting the conditions stated herein Provisions. The applicable projected price is used for will be considered to be a second crop regardless of each crop for which revenue protection is available, whether or not It Is · Insured. Notwithstanding the · regardless of whether you elect to obtain revenue references to haying and grazing as hatvesting fn these protection or yield protection for such crop. Basic Provisions. for the purpose of determining the end Replanted crop - The same agricultural commodity of the insurance period, hatvest of the crop will be as replanted on the same acreage as the first insured crop defined Inthe applicable Crop Provisions. for hatvest fn the same crop year if the replanting is Section - For the purposes of unit structure, a unit of specHically made optional by the policy and you elect to measure under a rectangular survey system describing a replant the crop and insure it under the policy covering tract of land usually one mile square and usually the first insured crop. or replanting is required by the containing approximately 640 acres. policy. Share - Your insurable interest in the insured crop as an Replanting - Performing the cultural practices necessary owner, operator, or tenant at the time insurance to prepare the rand to replace the seed or plants of the attaches. However, only for the purpose of determining damaged or destroyed insured crop and then replacing the amount of indemnity. your share will not exceed your the seed or plants of the same crop In the same insured share at the earlier of the time of loss or the beginning of acreage. The same crop does not necessarily mean the harvest. same type or variety of the crop unless different types or Special Provisions - The part of the poDcy that contains varieties constitute separate crops or It is otherwise specific provisions of Insurance for each Insured crop specified in the policy. that may vary by geographic area. Representative sample - Portions of the insured crop State -The state shown on your accepted appfication. that must remain In the field for examination and review Substantial beneficial Interest - An Interest held by any by our loss adjuster when making a crop appraisal. as person of at least 10 percent in you (!&. there are two specified in the Crop Provisions. In certain instances we ·partnerships that each have a 50 percent interest In you may allow you to harvest the crop and require only that and each partnership is made up of two individuals, each samples of the crop residue be left in the field. with a 50 percent share in the partnership. In this case, Revenue protection - A. plan of insurance that provides each individual would be considered to have a 25 protection agafnst loss of revenue due to a production percent interest in you, and both the partnerships and the Joss. price decline or increase, or a combination of both. individuals would have a substantial beneficial interest in If the harvest price exclusion Is elected, the insurance you. The spouses of the individuals would not be coverage provides protection only against loss of considered to have a substantial beneficial interest revenue due to a production loss. price decfine, or a unless the spouse was one of the Individuals that made combination of both. up the partnership. However. if each partnership is Revenue protection guarantee (per acre) - For made up of six individuals with equal interests. then each revenue protection only, the amount determined by would only have an 8.33 percent interest in you and multiplying the production guarantee (per acre) by the although the partnership would still have a substantial greater of your projected price or your harvest price. If beneficial interest in you, the individuals would not for the the harvest price exclusion is elected, the production purposes of reporting In section 2). The spouse of any guarantee (per acre) Is only multiplied by your projected individual apptrcant or individual Insured will be price. presumed to have a substantial beneficial interest in the RMA's Web site - A Web site hosted by RMA and applicant or insured unless the spouses can prove they located at http:/(www.rrna.usda.gov/ or a successor Web are legally separated or otheiWise legally separate under site. the applicable State dissolution of marriage laws. Any Sales closing date - A date contained in the Special child of an individual applicant or individual insured will Provisions by which an application must be filed. The not be considered to have a substantial beneficial

(5 of 40) interest In the appficant or insured unless the chHd has a individual applicant operating as a business, you separate legal interest in such person. may provide an employer Identification number Summary of coverage .. Our statement to you, based (EIN) but you must also provide your SSN); or upon your acreage report, specifying the insured crop (2) You must include your EIN if you are a person and the guarantee or amount of insurance coverage other than an Individual; provided by unit. (3) In addition to the requirements of section 2(b)(1) Sustainable fanning practice .. A system or process for or (2), you must Include the following for all producing an agricultural commodity, excluding organic persons who have a substantial beneficial farmfng practices, that Is necessary to produce the crop Interest in you: and is generally recognized by agricultural experts for the (I) The SSN for lndMduals; or area to conserve or enhance natural resources and the (II) The EIN for persons other than individuals environment. and the SSNs for all individuals that Tenant- A person who rents land from another person comprise the person wHh the EIN if such for a share of the crop or a share of the proceeds of the individuals also have a substantial crop (see the definition of ·share• above). beneficial interest In you: Termination date- The calendar date contained in the (4) You must include: Crop Provisions upon which your Insurance ceases to be (i) Your election of revenue protection, yield in effect because of nonpayment of any amount due us protection, or other available plan of under the policy, including premium. insurance; coverage level; percentage of nlled .. The termination of existing plants by plowing, price elecUon or percentage of projected disking, buming, application of chemicals. or by other price, as applicable; crop. ·type, variety, or means to prepare acreage for the production of an class; and any other material information annual crop. required on the application to insure the nmely planted - Planted on or before the final planting aop; and date designated fn the Special Provisions for the insured (ii) All the infonnatfon required in section crop in the county. 2(b)(4)(1) or your application will not be Transitional acreage - Acreage on which organic accepted and no coverage will be farming practices are being followed that does not yet provided; · qualify to be designated as organic acreage. (5) Your application will not be accepted and no USDA - United States Department of Agriculture. insurance wiD be provided for the year of Verifiable records - Has the same meaning as the term application if the applfcatfon does ·not contain defined in 7 CFR part 400, subpart G. your SSN or EIN. If your application contains an Void - When the policy is considered not to have existed incorrect SSN or EIN for you, your application for a crop year. will be considered not to have been accepted, Whole-farm unit - All insurable acreage of all the· no insurance will be provided for the year of insured crops planted in the county in which you have a application and for any subsequent' crop years, share on the date coverage begins for each crop for the as applicable, and such policies will be void if: crop year and for which the whole-farm unit structure is (i) Such r:aumber Is not corrected by you; or available ln accordance with section 34. (ii) .· You correct the SSN or EIN but: Written agreement - A document that alters designated (A) You cannot prove that any error was terms of a policy as authorized under these Basic inadvertent (Simply stating the error Provisions. the Crop Provisions. or the Special was inadvertent Is not sufficient to Provisions for the insured crop (see section 18). prove the error was inadvertent); or Yield protection - A plan of insurance that only provides (B) It Is determined that the incorrect protection against a production foss and is available only number would have allowed you to for crops for which revenue protection is available. obtain disproportionate benefits under Yield protection guarantee (per acre) - When yield the crop Insurance program, you are protection is selected for a crop that has revenue detennined to be ineligible for protection available, the amount determined by insurance or you could avoid an multiplying the production guarantee by your projected obligation or requirement under any price. State or Federal law: 2. Life of Polley, Cancellation, and Termination. (6) With respect to persons with a substantial (a) This is a continuous policy and will remain in effect beneficial interest in you: for each crop year following the acceptance of the (i) The insurance coverage for all crops original application until canceled by you in included on your application wm be accordance with the terms of the policy or terminated reduced proportionately by the percentage by operation of the terms of the poJicy or by us. In interest in you of persons wHh a substantial accordance with section 4, FCIC may change the beneficial interest In you (presumed to be coverage provided from year to year. 50 percent for spouses of individuals) if the (b) With respect to your application for insurance: SSNs or EINs of such persons are included (1) You must include your social security number on your application, the SSNs or EINs are (SSN) if you are an individual (if you are an correct. and the persons with a substantial

(6 of40) beneficial interest in you are ineligible for the sales closing date for the current crop year, insurance; you must revise your application by the sales (ii) Your policies for all crops included on your closing date for the next crop year. If you fail to application, and for all applicable crop provide the required revisions, the provisions in years, wm be void if the SSN or EIN of any section 2(b)(6) will apply; and person with a substantial beneficial Interest (10)1f you are, or a person with a substantial in you is incorrect or is not included on beneficial Interest in you is. not eligible to obtain your application and: a SSN or EIN, whichever Is required, you must (A) Such number is not corrected or request an assigned number for the purposes of provided by you, as appDcable; this policy from us: (B) You cannot prove that any error or (i) A number will be provided only If you can omission was inadvertent (Simply demonstrate you are, or a person with a stating the error or omission was substantial beneficial interest In you is, inadvertent is not sufficient to prove eligible to receive Federal benefits; the error or omission was inadvertent); Oi) If a number cannot be provided for you in or accordance with section 2(b)(10)(i), your (C) Even after the correct SSN or EIN is application wiD not be accepted; or provided by you, it Is determined that (iii) If a number cannot be provided for any the incorrect or omitted SSN or EIN person with a substantial beneficial Interest would have. allowed you to obtain in you fn · accordance with section disproportionate benefits under the 2(b)(10)0), the amount·of coverage for all crop insurance program, the person crops on the appUcation will be reduced with a substantial beneficial interest in proportionately by the percentage interest you Is determined to be ineligible for of such person in you. · insurance. or you or the person with a (c) After acceptance of the application,· you may not substantial beneficial interest In you cancel this policy for the initial aop year. Thereafter, could avoid an obDgation or the poffcy wfll continue in force for each succeeding requirement under any State or crop year unless canceled or terminated as provided Federal law; or below. (iii) Except as provided in sections 2(b)(6)(ii)(B) (d) Either you or we may cancel this policy after the and (C), your policies will not be voided if initial crop year by providing written notice to the you subsequently provide the correct SSN other on or before the cancellation date shown in the or EIN for persons with a substantial Crop Provisions. beneficial Interest In you and the persons (e) Any amount due to us for any policy authorized are eligible for insurance; under the Act will be offset from any indemnity or (7) When any of your policies are void under prevented planting payment due you for this or any sections 2(b)(5) or (6): other crop Insured with us under the authority of the (f) You must repay any indemnity, prevented Act. planting payment or aeplant payment that \1) Even if your daim has not yet been paid, you may have been paid for all applfcable must still pay the premium and administrative crops and crop years; fee on or before the termination date for you to 01) Even though the policies are void, you will remain eligible for Insurance. still be required to pay an amount equal to (2) If we offset any amount due us from an 20 percent of the premium that you would Indemnity or prevented planting payment owed otherwise be required to pay; and to you, the date of payment for the purpose of (Iii) If you previously paid premium or determining whether you have a delinquent debt administrative fees, any amount In excess will be the date that· you submit the daim for of the amount required in section 2(b)(7)0i) indemnity in accordance with section 14(e) will be returned to you; (Your Duties). (8) Notwithstanding any of the provisions in this (f) A delinquent debt for any policy will make you section. if you certify to an incorrect SSN or EIN, ineligible to obtain aop insurance authorized under or receive an Indemnity, prevented planting the Ad for any subsequent crop year and result in payment or replant payment and the SSN or EIN termination of all policies in accordance with section was not correct, you may be subject to civil, 2(f)(2). criminal or administrative sanctions; (1) With respect to Ineligibility: (9) If any of the information regarding persons with (i) Ineligibility for crop insurance will be a substantial beneficial interest in you changes effective on: after the sales closing date for the previous crop (A) The date that a policy was terminated year, you must revise your application by the In accordance with section 2(f)(2) for sales closing date for the current crop year to the crop for which you failed to pay reflect the correct information. However, If such premium, an administrative fee, or any information changed less than 30 days before related Interest owed, as applicable;

(7 of40) (B) The payment due date contained in considered to have attached for the any notification of indebtedness for crop year and no indemnity, prevented any overpaid indemnity, prevented planting or replant payment will be planting payment or replanting owed); payment. if you fail to pay the amount (C) For an other policies that are Issued by owed, including any related interest us under the authority of the Act, the owed, as applicable, by such due date: termination date that coincides with the (C) The termination date for the crop year termination date for the policy with the prior to the crop year In which a delinquent debt or, if there is no scheduled payment is due under a coincidental termination date, the written payment agreement if you fall termination date Immediately following to pay the amount owed by any the date you become inellgib!e; payment date in any agreement to pay (D) For execution of a written payment the debt; or agreement and failure to make any (D) The termination date the poficy was or scheduled payment, the termination would have been terminated under date for the crop year prior to the crop sections 2(f}(2)(i)(A), (B) or (C) if your year In which you failed to make the bankruptcy petition is dismissed before scheduled payment (for this purpose discharge. only, the crop year will start the day (D) If you are inefigible and a policy has been after the termination date and end on terminated in accordance with section the next termination date,· !dJu if the 2(f)(2), yeu will not receive any indemnity, termination date Is November 30 and prevented planting payment or replanting you fail to make a payment on payment, If applicable, and such ineligibility November 15, 2011, your policy will and termination of the policy may affect terminate on November 30, 2010, for your eligibility for benefits under other the 2011 crop year); or USDA programs. Any indemnity, (E) For dismissal of a bankruptcy petition prevented planting payment or replanting before discharge, the termination date payment that may be owed for the policy the policy was or would have been before it has been terminated will remain · terminated under sections 2(f)(2)Q)(A), owed to you, but may be offset in (B) or (C). · accordance with section 2(e), unless your (ii) For all porfcies terminated under sections policy was terminated in accordance with 2(f)(2)(i)(A), (B), (D) or (E), any sections 2(f)(2)(1)(A), (B), (D) or (E). indemnities, prevented planting payments (2) With respect to termination: or replanting payments paid subsequent to (i) Termination will be effective on: the termination date must be repaid. (A) For a policy with unpaid administrative (iii) Once the policy is terminated it cannot be fees or premiums, the termlnatiol'l data reinstated for the current crop year unless immediately subsequent to the billing the termination was in error. Failure to date for the crop year (For policies for timely pay because of illness, bad weather, which the sales closing date is prior to or other such extenuating circumstances Is the termination date, such policies will not grounds for reinstatement In the current terminate for the current crop year year. even if insurance attached prior to the (3) To regain eligibility, you must: termination date. Such termination will (i) Repay the delinquent debt In full; be considered effective as of the sales (ii) Execute a written payment agreement and closing date and no insurance will be make payments in accordance with the considered to have attached for the agreement rNe will not enter Into a written crop year and no indemnity, prevented payment agreement with you if you have planting or replant payment will be previously failed to make a scheduled owed); payment under the terms of any other (B) For a policy with other amounts due, payment agreement with us or any other the termination date Immediately insurance provider); or following the date you have a (Iii) Flte a petition to have your debts delinquent debt (For policies for which discharged in bankruptcy (Dismissal of the the sales closing date is prior to ·the bankruptcy petition before discharge wiD termination date, such policies will terminate all poflcies in effect retroactive to terminate for the current crop year the date your policy would have been even if insurance attached prior to the terminated in accordance with section termination date. Such termination will 2(f)(2)(i)). be considered effective as of the sales (4) After you become eligible for crop insurance, if closing date and no insurance will be you want to obtain coverage for your crops, you

(8 of40) must submit a new application on or before the (3) If section 2(g)(2) applies and the death, sales closing date for the crop (Since disappearance, or judicially declared applications for crop insurance cannot be incompetence occurred: accepted after the sales closing date, if you (i) More than 30 days before the cancellation make any payment after the sales closing date, date, the policy is automatically canceled you cannot apply for insurance until the next as of the cancellation date and a new crop year). application must be submitted; or (5) For example, for the 2011 crop year, if crop A, (II) Thirty days or less before the cancellation wHh a termination date of October 31, 2010, and date, or after the cancellation date, the crop B, with a termination date of March 15, polfcy wHI continue in effect through the 2011, are insured and you do not pay the crop year immediately following the premium for crop A by the termination date, you can.cellation date and be automatically are ineligible for crop insurance as of October canceled as of the cancellation date 31,2010, and crop A's policy is terminated as of Immediately following the end of the that date. Crop B's policy does not terminate Insurance period for the crop year, unless until March 15, 2011, and an indemnity for the canceled by the cancellation date prior to 2010 crop year may still be owed. If you enter the start of the insurance period: into a written payment agreement on September (A) A new application for insurance must 25, 2011, the earliest date by which you can be submitted prior to the sales dosing obtain crop insurance for crop A is to apply for date for coverage for the subsequent crop insurance by the Odober 31, 2011, sales crop year; and closing date and for crop B Is to apply for crop (B) Any fndetnnlty, replant payment or insurance by the March 15, 2012, sales closing prevented planting payment will be date. If you faD to make a payment that was paid to the person or persons scheduled to be made on April 1, 2012, your detennfned to be beneffciaDy entiUed policy will terminate as of October 31, 2011, for to the payment and such person or crop A, and March 15, 2012, for crop B, and no persons must comply with all policy Indemnity, prevented planting payment or provisions and pay the premium. replant payment will be due for that crop year for (4) If any insured entity fs dissolved for reasons either crop. You will not be eligible to apply for other than death, disappearance, or judicially crop insurance for any crop until after the declared incompetence: · amounts owed are paid in full or you file a (i) Before the cancellation date, the policy is petition to discharge the debt in bankruptcy. automatically canceled as of the (6) If you are determined to be ineligible under · cancellation date and a · new application section 2(f), persons with a substantial beneficial must be submitted; or interest in you may also be ineligible until you (ii) On or after the cancellation date, the policy become eligible again. will continue In effed through the crop year (g) In cases where there has been a death, immediately following the cancellation date disappearance, judicially declared incompetence, or and ba automatically canceled as of the dissolution of any insured person: cancellation date immediately following the (1) If any married indMdual insured dies, end of the insurance period for the crop disappears, or is judicially declared Incompetent, year, unless canceled by the· cancellation the named insured on the policy will date prior to the start of the · insurance automatically convert to the name of the spouse period: if: (A) A new application for Insurance must (i) The spouse was included on the policy as be submfUed prior to the sales closing having a substantial beneficial Interest in date for coverage for the subsequent the named insured; and crop year; and (ii) The spouse has a share of the crop. (B) Any indemnity, replant payment or (2) The provisions in section 2(g)(3) will be prevented planting payment will be applfcable if: paid to the person or persons (i) Any partner, member, shareholder, etc•• of determined to be beneficially entitled an Insured entity dies, disappears, or is to the payment and such person or judicially declared incompetent, and such persons must comply with all policy event automatically dissolves the entity; or provisions and pay the premium. (ii) An individual, whose estate is left to a (5) If secUon 2(g)(2) or (4) applies, a remaining beneficiary other than a spouse or left to member of the insured person or the beneficiary the spouse and the criteria in section is required to report to us the death, 2(g)(1) are not met, dies, disappears, or is disappearance, judicial incompetence, or other judicially declared incompetent. event that causes dissolution not later than the next cancellation date, except if section 2(g)(3)(ii) applies. notice must be provided by

(9of40) the cancellation date for the next crop year. If California are insured under the notice is not provided timely, the provisions of Catastrophic Risk Protection Endorsement section 2(g)(2) or (4) will apply retroactive to the and two varieties are Insured under an date such notice should have been provided and additional coverage policy, a separate any payments made after the date the policy administrative fee will be charged for each should have been canceled must be returned. of the four varieties; or (h) We may cancel your policy if no premium is eamed (ii) You have additional coverage for the crop for 3 consecutive years. in the county and the acreage has been Q) The cancellation and termination dates are designated as "high-risk• by FCIC. In such contained In the Crop Provisions. case, you Will be able to exclude coverage 0) When obtaining catastrophic, or additional coverage, for the hfgh-risk land under the additional you must provide information regarding crop coverage policy and insure such acreage insurance coverage on any crop previously obtained under a separate Catastrophic Risk at any other local FSA office or from an approved Protection Endorsement, · provided the insurance provider, including the date such Catastrophic Risk Protection Endorsement insurance was obtained and the amount of the is obtained from the same insurance administrative fee. provider from which the additional (k) Any person may sign any document relative to crop coverage was obtained. If you have insurance coverage on behalf of any other person revenue protection and exclude high-risk covered by such a policy, provided that the person land, the catastrophic risk protection has a properly executed power of attomey or such coverage will be yield protection only for other legally sufficient document authorizing such the excluded high-risk land. person to sign. You are still responsible for the (c) With respect to revenue protection, if available for accuracy of all Information provided on your behalf the crop: · and may be subject to the consequences in section (1) You may change to another plan of insurance 6(g), and any other applicable consequences, if any and change your coverage level or elect the information has been misreported. harvest price exclusion by giving written notice 3. Insurance Guarantees. Coverage Levels, and Prices. to us not later than the sales closing date for the (a) Unless adjusted or Umited fn accordance with your insured crop; policy, the production guarantee or amount of (2) Your ·projected price and harvest price will be insurance, coverage level, and price at which an 100 percent of the projected price and harvest indemnity will be determined for each unit will be price issued by FCIC; those used to calculate your summary of coverage (3) If the harvest price exclusion is: for each crop year. (i) Not elected, your projected price is used to (b) With respect to the insurance choices: initially determine the revenue protection (1) For all acreage of the insured crop in the county, guarantee (per acre). and if the harvest unless one of the conditions In section 3(b)(2) price is greater than the projected price, exists, you must seiad the same: the revenue protection guarantee (per (i) Plan of insurance (§.&. yield protection, acre) will· be recomputed· using your revenue protection, actual production hatvestprice;or history. amount of insurance, etc.); (ii) Elected, your · projected price is used to (ii) Level of coverage (all catastrophic risk compute your · revenue protection protection or the same level of additional guarantee (per acre); coverage); and (4) Your projected price is used to calculate your (iii) Percentage of the available price election, premium, any replant payment, and any or projected price for yield protection. For prevented planting payment; and revenue protection, the percentage of price (5) If the projected price or harvest price cannot be is specified in section 3(c)(2). If different calculated for the current crop year under the prices are provided by type or variety, provisions contained in the Commodity insurance will be based on the price Exchange Price Provisions: provided for each type or variety and the (i) For the projected price: same price percentage will apply to all (A) Revenue· protection will not be types or varieties. provided and you will automatically be (2) You do not have to select the same plan of cover-ed under the yield protection plan insurance, level of coverage or percentage of of insurance for the current crop year available price election or projected price if: unless you cancel your coverage by (i) The applicable Crop Provisions allow you the cancellation date or change your the option to separately insure individual plan of insurance by the sales closing crop types or varieties. In this case, each date; individual type or variety insured by you will (B) Notice wm be provided on RMA•s Web be subject to separate administrative fees. site by the date specified In the For example, if two grape varieties in applicable projected price definition

(10 of40) contained in the Commodity Exchange your additional price election or amount of Price Provisions; insurance. (C) The projected price will be determined (2) You may change to another plan of insurance or by FCIC and will be released by the change your coverage level, amount of date specified in the applicable insurance or percentage of the price election, as projected price definition contained in applicable, for .the following crop year by giving the Commodity Exchange Price written notice to us not later than the sales Provisions; and closing date for the insured aop. (D) Your coverage will automatically revert (3) Your amount of Insurance will be the amount to revenue protection for the next crop of insurance issued by FCIC multiplied by the year that revenue protection is coverage level percentage you elected. Your available unless you cancel your price election will be the price election issued by coverage by the cancellation date or FCIC multlplfed by the· percentage of price you change your coverage by the sales elected. closing date; or (4) Since the amount of insurance or price election (II) For the harvest price: may change each year, if you do not select a (A) Revenue protectfon will continue to be new amount of insurance or percentage of the available; and price election on or .before the safes closing (B) The harvest price will be determined date, we will assign an amount of Insurance or and announced by FCJC. percentage of the price el on which bears the (d) With respect to yield protection, if available for the same relationship to the amount of insurance or crop: percentage of the price election that was In (1) You may change to another plan of Insurance effect for the preceding year (!&, if you and change your percentage of price and your selected 100 percent of the price election for the coverage level by giving written notice to us not previous crop year and }tou do not select a new later than the sales closing date for the insured percentage of the price eleCtion for the current crop; crop year, we will assign 100 percent of the (2) The percentage of the projected price selected price election for the current crop year). by you multiplied by the projected price issued (f) You must report all production of the crop (insured by FCIC is your projected price that is used to and uninsured) to us for the previous crop year by compute the value· of your production guarantee the earlier of the acreage reporting date ·or 45 days (per acre) and the value of the production to after the cancellation date, unless otherwise stated count: and in the Special Provisions or as specified In section (3) Since the projected price may change each ·18: . . year. if you do not select a new percentage of (1) If you do not provide the required production the projected price on or before the sales closing report, we will assign a yield for th'e previous date, we will assign a percentage which bears crop year. The yield assigned by us will not be the same ·relationship to the percentage that was more than 75 percent of the yield used by us to in effact for the preceding year (!&b. If you · determine your coverage for the· previous crop selected 100 ·percent of the projected price for . year. The production report or assigned yield the previous crop year and you do not select a will be used to compute ·your approved yield for new percentage for the current crop year, we will the purpose· of determining your coverage for assign 100 pereent for the current crop year). 'the current crop year. (e) With respect· to all plans of Insurance other than (2) If you have filed a claim for any crop year, the revenue protection and yield protection (B&. APH, documents signed by you which state the dollar amount plans of insurance, etc.): amount of production used to complete the claim (1) In addJtlon to the price election or amount of for indemnity will be the production report for Insurance available on the contract change date, that year unless otherwise specified by FCIC. we may provide an additional price election or (3) Production and acreage for the prior crop year amount of insurance no later than 15 days prior must be reported for each proposed optional unit to the sales closing date. by the production reporting date. If you do not (i) You must select the additional price provide the information stated above. the election or amount of insurance on or optional units will be combined into the basic before the sales closing date for the unit. insured crop. (4) Appraisals obtained from only a portion of the (ii) These additional price elections or acreage in a field that remains unharvested after amounts of insurance will not be less than the remainder of the crop within the flefd has those available on the contract change been destroyed or put to another use will not be date. used to establish your actual yield unless (iii) If you elect the additional price election or representative samples are required to be left by amount of insurance, any claim settlement you in accordance with the Crop Provisions. and amount of premium will be based on

(11 of40) (g) It is your responsibility to accurately report all (i) The approved APH yield Is greater than information that Is used to determine your approved 115 percent of the average of the approved yield. yields of all applicable databases for your (1) You must certify to the accuracy of this farming operation that have actual yields in information on your production report. them or it Is greater than 115 percent of the (2) If you fail to accurately report any information or county transitional yield if no applicable if you do not provide any required records, you databases exist for comparison; will be subject to the provisions regarding (if) The current year's Insurable acreage misreporting contained fn section 6(g), unless (Including applfcabfe prevented planting the information Is corrected: acreage) Is greater than 400 percent of the (i) On or before the production reporting date; average number of acres In the database or or the acres contained In two or more 01) Because the incorrect information was the Individual years in the database are each result of our error or the error of someone less than 10 percent of the' current year's from USDA. insurable acreage in the unit (Including (3) If you do not have written verifiable records to applicable prevented planting acreage); support the information on your production and · report, you will receive an assigned yield in (iii) We determine there is no valid agronomic accordance with section 3(f)(1) and 7 CFR part basis to support the approved yield; or 400, subpart G for those crop years for which (3) To an amount consistent with the production you do not have such records. methods actually carried out for the crop year if (4) At any time we discover you have mfsreported you use a different production method than was any material Information used to determine your previously used and the production method approved yield or your approved yield is not actually carried out is likely to result 'In a yield correct, the foHowing actions will be taken, as lower than the average of your previous actual applicable: yields. The yield will be adjusted based on your (i) We will correct your approved yield for the other units where such production methods were crop year such information is not correct, carried out or tO the applicable county and all subsequent crop years; · transitional yield for 1h'e production methods If ·(ii) We will correct the unit structure, if other such units do not exist. You must notify us necessary; of changes in your production methods by the (Iii} Any overpaid or underpaid indemnity or acreage reporting date. If you fall to notify us, in premium must be repaid; and addition to the reduction of your approved yield (iv) You wlll be subject to the provisions described herein, you will be considered to have regarding misreporting contained In section misreported information and you will be subject 6(g)(1}, unless the incorrect information to the consequences in section 6(g). For was the result of our error or the error of example, for a non-irrigated unit, your yield is someone from USDA. based upon acreage of the crop that is watered (h) In addition to any consequences In section 3(g), at once prior to planting,· and the crop is not any time the circumstances described below are watered prior to planting for the current crop discovered, your approved yield will be adjusted: year. Your approved APH ·yield will be reduced (1) By including an assigned yield determined in to an amount consistent with the actual accordance with section 3(f)(1) and 7 CFR part production history of your other non-Irrigated 400, subpart G, if the actual yield reported in the units where the crop has not been watered prior database is excessive for any crop year, as to planting or limited to the non-irrigated determined by FCIC under its procedures, and transitional yield for the unit if other such units you do not provide verifiable records to support do not exist · the yield in the database (If there are verifiable (i) Unless you meet the double cropping requirements records for the yield in your database, the yield contained In section 17(f)(4), if you elect to plant a is significanUy different from the other yields in second crop on acreage where the first insured crop the county or your other yields for the crop and was prevented from being planted, you will receive a you cannot prove there is a valid basis to yield equal to 60 percent of the approved yield for support the differences in the yields, the yield the first insured crop to calculate your average yield will be the average of the yields for the crop or for subsequent crop years (Not appHcable to crops ff the applicable county transitional yield if you the APH is not the basis for the insurance have no other yields for the crop); guarantee). If the unit contains both prevented (2) By reducing it to an amount consistent with the planting and planted acreage of the same crop, the average of the approved yields for other yield for such acreage will be determined by: databases for your farming operation with the (1) Multiplying the number of insured prevented same crop, type, and practfce or the county planting acres by 60 percent of the approved transitional yield, as applicable, if: yield for the first insured crop;

(12 of40) (2) Adding the totals from section 3(i)(1) to the (2) If you Insure multiple crops with us that have amount of appraised or harvested productfon for final planting dates on or after December 31 but all of the insured planted acreage; and before August 15, you must submit an acreage (3) Dividing the total in section 3(1)(2) by the total report for all such crops on or before the latest number of acres in the unit applicable acreage reporting date for such 0) Hail and fire coverage may be excluded from the crops. covered causes of foss for an Insured crop only if (3) Notwithstanding the provisions In sections you select additional coverage of not less than 65 6(a)(1) and (2): percent of the approved yield indemnmed at the 100 (I) If the Special Provisions desfgnate percent price election, or an equivalent coverage as separate planting periods for a crop, you established by FCIC, and you have purchased the must submit an acreage report for each same or a higher dollar amount of coverage for hail planting period on or before the acreage and fire from us or any other source. If you elected a reporting date contained in the Special whole-fann unit, you may exclude hail and fire Provisions for the planting period; and coverage only if allowed by the Special Provisions. (ii) If planting of the insured crop continues (k) The appUcable premium rate, or formula to calculate after the final planting date or you are the premfum rate, and transitional yield will be those prevented from planting during the late contained In the actuarial documents except, in the planting period, the acreage reporting date case of high-risk land, a written agreement may be wr11 be the later of: · requested to change such transitional yield or (A) The acreage reporting date contained premium rate. fn the Special Provisions; 4. Contract Changes. (B) The date determined in accordance (a) We may change the terms of your coverage under With sections (a}(1) or (2); or this policy from year to year. (C) Rve (5) days after the end of the late (b) Any changes in policy provisions, amounts of planting period for the insured crop, if insurance, premium rates, program dates, price applicable. elections or the Commodity Exchange Price (b) If you do not have a share in an insured crop in the Provisions, if applicable, can be vfewed on RMA's county for the crop year, you must submit an Web site not later than the contract change date acreage report, on or before the acreage reporting contained in the Crop Provisions (except as allowed date, so indicating. herein or as specified In section 3). We may only (c) Your acreage report must include the following revise this information after the contract change date information, if applicable: to correct clear errors the price for oats was (1). The amount of acreage of the crop in the county announced at $25.00 per bushel instead of $2.50 per (insurable and not insurable) In which you have bushel or the final planting date shourd be May 10 a share and the date the Insured crop was but the final planting date in the Special Provisions · planted on the unit as follows: states August 10). (i) The last date any timely planted acreage (c) After the contract change date, all chRnges specified was planted and the number oi acres in section 4(b) will also be available upon request planted by such date; and from your crcip insurance agent You will be (ii) The date of planting and the number of provided, fn writing, a copy of the changes to the acres planted per day for acreage planted Basic Provisions, Crop Provisions, Commodity during the late planting period (If you fall to Exchange Price Provisions, if applicable, and report the number of acres planted on a Special Provisions not later than 30 days prior to the daily basis, all acreage planted in the late cancellation date for the insured crop. If available planting period will be presumed to have from us, you may elect to receive these documents been planted on the last day planting took and changes electronically. Acceptance of the place in the late planting period for the changes wDI be conclusively presumed In the purposes of ·section 16); absence of notice from you to change or cancel your (2) Your share at the time coverage begins; insurance coverage. (3) The practice; 5. [Reserved) (4) The type; and 6. Report of Acreage. (5) The land Identifier for the crop acreage (!Jb (a) An annual acreage report must be submitted to us legal description, FSA fann serial number or on our form for each insured crop in the county on or common land unit number if provided to you by before the acreage reporting date contained in the FSA, etc.) as required on our fonn. Special Provisions, except as follows: (d) Regarding the ability to revise an acreage report you (1) If you fnsure muHiple crops with us that have have submitted to us: final planting dates on or after August 15 but (1) For planted acreage, you cannot revise any before December 31, you must submit an information pertaining to the planted acreage acreage report for all such crops on or before after the acreage reporting date without our the latest applicable acreage reporting date for consent (Consent may only be provided when such crops; and no cause of foss has occurred; our appraisal has

(13 of 40) determined that the insured crop will produce at measurement to us (If you fail to least 90 percent of the yield used to detennine provide the measurement, your your guarantee or the amount of insurance for claim will not be paid); or the unit (including reported and unreported (B) Elect to measure the acreage, and: acreage), except when there are unreported (1) Analiza your claim in accordance units (see section 6(f)); the Information on the with applicab!e policy provisions; acreage report is clearly transposed: you and provide adequate evidence that we or someone (2) Estimated acreage under this from USDA have committed an error regarding section will not be accepted from the Information on your acreage report; or if you for any subsequent acreage expressly permitted by the policy); report; and (2) For prevented planting acreage: (iii) Premium will still be due in accordance 0) On or before the acreage reporting date, with sections 2(e) and 7. If the acreage is you can change any Information on any not measured as specified in section initially submitted acreage report, except 6(d)(3 )(li) and the acreage measurement Is as provided In section 6(d)(2)(111) (!&. you not ·provided to us at least 15 days prior to can correct the reported share, add the premium billing date, your premium will acreage of the insured crop that was be based on the estimated acreage and prevented from being planted, etc.); will be revised, if necessary, when the (ii) After the acreage reporting date, you acreage measurement Is provided. If the cannot revise any information on the acreage measurement is_ not provided by acreage report (!&, If you have failed to the termination date, you will be precluded report prevented planting acreage on or from providing any estimated acreage for before the acreage reporting date, you all subsequent crop years. cannot revise it after the acreage reporting (4) If there is an Irreconcilable difference between: date to include prevented planting 0) The acreage measured by FSA or a acreage) but we will revise Information that measuring service and· our on-farm Is clearly transposed or you provide measurement, our on-fann measurement adequate evidence that we or someone will be used; or from USDA have committed an error (ii) The acreage measured by a measuring regarding the information on your acreage service, other than our on-farm report; and measurement. and FSA, the . FSA (iii) You cannot revise your inHially submitted measurement will be used; and acreage report at any time to change the (5) If the acreage report has been revised In insured crop, or type, that was reported as accordance wHh section 6(d)(1), (2), or (3}, the prevented from being planted; Information on the initial acreage report will not (3) You may request an acreage measurement from be considered mfsreported for the purposes of FSA or a business that provides such sactJon 6(g). measurement service prior to the acreage (e) We may elect to determine all premiums and reporting date, submit documentation of such indemnities based on the information you submit on request and an acreage report with estimated the acreage report or upon the factual circumstances acreage by the acreage reporting date, and if we determine to have existed subject to the the acreage measurement shows the estimated provisions contained in section 6(g). acreage was incorrect, we wfll revise your (f) If you do not submit an acreage report by the acreage report to reflect the correct acreage: acreage reporting date, or if you fail to report all (I) If an acreage measurement is only units, we may e!ect to detennlne by unit the requested for a portion of the acreage insurable crop acreage, share, type and practice, or within a unit, you must separately to deny liability on such units. If we· deny liability for designate the acreage for which an the unreported units, your share of any production acreage measurement has been from the unreported units will be allocated, for loss requested; purposes only, as production to count to the reported (fi) If an acreage measurement is not provided units fn proportion to the liability on each reported to us by the time we receive a notice of unil However, such production will not be allocated loss, we may: to prevented planting acreage or otherwise affect (A) Defer finalization of the claim until the any prevented planting paymenl measurement is completed, and: (g) You must provide all required reports and you are (1) Make all necessary loss responsible for the accuracy of an information determinations. except the contained in those reports. You should verify the acreage measurement; and Information on all such reports prior to submitting (2) Finalize the claim in accordance them to us. with applicable policy provisions (1) Except as provided In section 6(g)(2), if you after you provide the acreage submit information on any report that Is different

(14 of40) than what is determined to be correct and such may apply are contained In the actuarial documents information results In: or an approved written agreement. (I) A lower liability than the actual liability (e) In addition to the premium charged: determined, the production guarantee or (1) You. unless otherwise authorized in 7 CFR part amount of Insurance on the unit will be 400, must pay an administrative fee each crop reduced to an amount consistent with the year of $30 per crop per county for all levels of reported Information (In the event the coverage In excess of catastrophic risk insurable acreage is under-reported for any protection. unH. all production or value from Insurable (2) The administrative fee must be paid no later acreage in that unit will be considered than the time premium Is due. production or value to count In determining (3) Payment of an administrative fee will not be the indemnity); or required if you fife a bona fide zero acreage (li) A higher liability than the actual llabDity report on or before the acreage reporting date determined, the information contained fn for the crop. If you falsely file a zero acreage the acreage report will be revised to be report you may be subject to criminal and consistent with the corred Information. administratiVe sanctions. (2) If your share Is misreported and the share Is: (4) The administrative fee will be waived if you (i) Under-reported, any claim will be request it and: ' determined using the share you reported; (i) You qualify as a limited resource fanner; or or (ii) You were insured prior to the 2005 crop (D) Over-reported, any claim will be year or for the 2005 crop year and your determined using the share we determine administrative fee was waived for one or to be correct. more of those crop years because you (h) If we discover you have fncorrectly reported any qualified as a limited resource farmer under Information on the acreage report for any crop year, a policy definition previously In effect. and you may be required to provide documentation In you remain qualified as a limited resource subsequent crop years substantiating your report of farmer under the definition that was in acreage for those crop years, Including. but not effect at the time the administrative fee was limited to. an acreage measurement service at your waived. own expense. If the correction of any misreported (5) Failure to pay the administrative fees when due information would affect an indemnity. prevented may make you fnelfgible ·for certain other USDA planting payment or replant payment that was paid in benefits. a prior crop year. such claim will be adjusted and (f) If the amount of premium (gross premium less you will be required to repay any overpaid amounts. premium subsidy paid on your behalf by FCIC) and (I) Errors in reporting units may be corrected by us at administrative fee you are required to pay for any the time of adjusting a loss to reduce our Dability and acreage exceeds the liability ·for the acreage. to conform to applicable unit divJsion guidelines. coverage for those acres wfll not be provided (no 7. Annual Premium and Administrative Fees. premium or administrative fee wlfl be due and no (a) The annual premium is eomed and pa -able at the indemnity will be paid foi such acreage). · time coverage begins. You will be billed for the 8. · Insured Crop. · premium and administrative fee not earlier than the (a) The insured crop will be ·that shown on your premium billing date specified in the Special accepted application and as specified In the Crop Provisions. Provisions or Special Provisions and must be grown (b) Premium or administrative fees owed by you wfll be on insurable acreage. offset from an indemnity or prevented planting (b) A crop which will NOT be insured will include. but wiD payment due you in accordance with section 2(e). not be limited to. any crop: (c) The annual premium amount is determined. as (1) That is not grown on planted acreage (except for applicable. by either. the purposes of prevented planting coverage). or (1) Multiplying the production guarantee per acre that is a type. class or variety or where the times your price election or your projected price. conditions under which the crop Is planted are as applicable. times the premium rate. times the not generafly recognized for the area (For insured acreage. times your share at the time example. where agricultural experts detennine coverage begins. and times any premium that planting a non-Irrigated com crop after a adjustment percentages that may apply; or failed small grain crop on the same acreage In (2) Multiplying your amount of Insurance per acre the same crop year is not appropriate for the times the premium rate. times the insured area); acreage. times your share at the time coverage (2) For which the information necessary for begins. and times any premium adjustment insurance (price election. amount of insurance. percentages that may apply. projected price and harvest price, as applicable. (d) The Information needed to determine the premium rate. etc.) is not included In the premium rate and any premium adjustment aduarial documents. unless such information is percentages that

(15 of40) provided by a written agreement in accordance (iii) Such acreage was not planted or with section 18; harvested because it was pasture or (3) That Is a volunteer crop; rangeland, the crop to be insured is also (4) Planted following the same crop on the same pasture or rangeland, and the Crop acreage and the first planting of the crop has Provisions, Special Provisions, or a written been harvested in the same crop year unless agreement specifically allow insurance for specifically permitted by the Crop Provisions or such acreage; or the Special Provisions (For example, the second (iv) The Crop Provisions, Special Provisions, or planting of grain sorghum would not be Insurable a written agreement specifically allow if grain sorghum had already been planted and insurance for such acreage; or harvested on the same acreage during the crop (2) Is not insurable if: year); (i) The only crop that has been planted and (5) That is planted for the development or harvested on the acreage in the three production of hybrid seed or for experimental previous crop years is a cover, hay (except purposes, unless permitted by the Crop wheat harvested for hay) or forage crop Provisions or by written agreement to Insure (except ·insurable sHage). However, such such crop; or acreage may be insurable only if: (6} That is used solely for wildlife protection or (A) The crop to be insured is a hay or management If the lease states that specific forage crop and the Crop Provisions, acreage must remain unharvested, only that Special Provisions, or · a written acreage is uninsurable. If the lease specifies agreement specifically allow insurance that a percentage of the crop must be left for such acreage; or unharvested, your share will be reduced by such (B) The hay or forage crop was part of a percentage. crop rotation; (c) Although certain policy documents may state that a' (ii) The acreage has been strip-mined. crop type, class, variety or practice is not insurable, It However, such acreage may be insurable does not mean all other crop types, classes. only if: varieties or practices are insurable. To be insurable (A) An agricultural commodity. other than the crop type, class, variety or practice must meet all a cover, hay (except wheat harvested the conditions in this section. for hay), or forage crop (except 9. Insurable Acreage. insurable silage) has been harvested (a} All acreage planted to the insured crop in the county · from the acreage for at least five crop in which you have a share: years after the strip-mined land was (1) Except as provided in section 9(a)(2), is reclaimed: ot insurable if the acreage has been planted and (B) A written agreement specifically allows harvested or insured (including insured acreage insurance for such acreage; that was prevented from being planted) in any (iii) The actuarial documents do not provide one of the three previous crop years. Acrea!]e the information necessary to determine the that has not been planted and harvested premium rate, unless Insurance Is allowed (grazing is not consic;tered harvested for the by a written agreement; purposes of section 9(a)(1)} or insured in at least (iv) The insured ·crop is damaged and It is one of the three previous CI'9P years may still be practical to replant the Insured crop, but insurable if: the insured crop is.not replanted; (i) Such acreage was not planted: (v) The acreage is interplanted, unless (A) In at least two of the three previous Insurance is allowed by the Crop crop years to comply with any other Provisions; · USDA program; (vi) The acreage is otherwise restricted by the (B) Due to the crop rotation, the acreage Crop Provisions or Special Provisions; would not have been planted In the (vii) The acreage is planted in any manner previous three years . a crop other than as specified in the policy rotation of com, soybeans, and alfalfa; provisions for the crop unless a written and the alfalfa remained for four years agreement specifically allows insurance for before the acreage was planted to such planting; com again); or (viii) The acreage is of a second crop, if you (C) Because a perennial tree, vine, or elect not to insure such acreage when an bush crop w s on the acreage in at indemnity for a first insured crop may be least two of the previous three crop subject to reduction in accordance with the years; provisions of section 15 and you intend to (ii) Such acreage constitutes five percent or collect an indemnity payment that is equal less of the insured planted acreage In the to 100 percent of the insurable loss for the unit; first insured crop acreage. This election must be made on a first Insured crop unit

(16 of40) basis if the first insured crop unit (2) The applicable acreage has had contains 40 planted acres that may be three or more crops produced and subject to an Indemnity reduction, then no harvested on it in the same crop second crop can be Insured on any of the year In at least two of the last four 40 acres). In this case: years in which the insured crop (A) If the first insured crop Is insured under was grown on the acreage; and this poHcy, you must provide written (B) The amount of insurable acreage will notice to us of your election not to not exceed 100 percent of the greatest insure acreage of a second crop at the number of acres for which you provide time the first Insured crop acreage is the records required in section released by us (if no acreage in the 9(a){2)(Jx)(A). first insured crop unit Is released, this (b) If insurance is provided for an Irrigated practice, you election must be made by the earlier of must report as Irrigated only that acreage for which the acreage reporting date for the you have adequate facilities and adequate water, or second crop or when you sign the the reasonable expectation of receMng adequate claim for indemnity for the first insured water at the time coverage begins, to carry out a crop) or, if the first Insured crop is good irrigation practice. If you knew or had reason insured under the Group Risk to know that your water may be reduced before Protection Plan of Insurance or coverage begins, no reasonable expectation exists. successor provisions (7 CFR part (c) Notwithstanding the provisions in section 8(b)(2), if 407), this election must be made acreage Is Irrigated and a premium rate is not before the second crop Insured under provided for an irrigated practice, you may either this policy is planted, and if you fall to report and insure the irrigated acreage as cnon- provide such notice, the second crop lrrigated,• or report the irrigated acreage as not acreage will be insured in accordance insured (If you elect to insure such acreage under a with the applicable policy provisions non-irrigated practice, your irrigated yield wnr only be and you must repay any overpaid used to detennfne your approved yield if you indemnity for the first insured crop; continue to use a good irrigation practice. If you do (B) In the event a second crop Is planted not use a good irrigation practice, you will receive a and insured with a different insurance yield detenninecf in accordance with section 3(h)(3)). provider, or planted and fnsured by a (d) We may restrict the amount of acreage that we will different person, you must provide Insure to the amount allowed under any acreage written notice to each Insurance limitation program established by the United States provider that a second crop was Department of Agriculture If we notify you of that planted on acreage on which you had restriction prior to the sales closing date. a first insured crop; and (e) Notwithstanding the provisions In section 9(a)(1), if (C) You must report the crop acreage that the Governor of a State designated within the Prairie will not be insured on the applicable Pothole NatJonal Priority Ar&a elects to make saction acreage report; or · 508(o) of the Act effective for the State, any native (ix) The acreage Is of a crop planted following sod acreage greater than ·five acres located In a a second crop or following an insured crop county contained. within the Prairie Pothole National that is prevented from being planted after a Priority Area that has been tiffed after May 22, 2008, first insured crop, unless it Is a practice that is not insurable for the first five crop years of planting is generally recognized by agricultural following the date the native sod acreage is tilled. experts or organic agricultural experts for (1) If the Govemor makes this election after you the area to plant three or more crops for have received an indemnity or other payment for harvest on the same acreage in the same native sod acreage, you will be required to repay crop year, and additional coverage the amount received and any premium for such Insurance provided under the authority of acreage will be refunded to you. the Act is offered for the third or (2) If we detennine you have tilled less than five subsequent crop in the same crop year. acres of native sOd a year for more than one Insurance will only be provided for a third crop year, we will add all the native sod acreage or subsequent crop as follows: tilled after May 22, 2008, and all such acreage (A) You must provide records acceptable will be ineligible for insurance for the first five to us that show: crop years of planting following the date the (1) You have produced and harvested cumulative native sod acreage tilled exceeds the insured crop following two five acres. other crops arvested on the 10. Share Insured. same acreage in the same crop (a) Insurance will attach: year in at feast two of the last four (1) Only if the person completing the application years In which you produced the has Insured crop; or a share in the insured crop; and

(17 of40) (2) Only to that person's share, except that (c) Acreage rented for a percentage of the crop, or insurance may attach to another person's share a lease containing provisions for BOTH a of the insured crop if the other person has a minimum payment (such as a specified amount share of the crop and: of cash, bushels, pounds. etc.,) AND a crop (i) The application clearly states the insurance share will be considered a crop share lease. is requested for a person other than an (d) Acreage rented for cash, or a lease individual (§JL. a partnership or a joint containing provisions for EITHER a minimum venture): or payment OR a crop share (such as a 50/50 (ii) The application clearly states you as share or $100.00 landlord will insure your tenanfs share, or per acre. whichever Is greater) will be you as tenant will Insure your landlord's considered a cash lease share. If you as a landlord will insure your 11. Insurance Period. tenant's share, or you as a tenant wifl (a) Except for prevented planting coverage (see section Insure your landlord's share, you must 17), coverage begins on each unit or part of a unit at provide evidence of the other parfYs the later of: approval Oease, power of attorney, etc.) (1) The date we accept your application (For the and such evidence will be retained by us: purposes of this paragraph, the date of (A) You also must clearly set forth the acceptance is the date that you submit a percentage shares of each person on property executed appHcatfon in accordance with the acreage report; and section 2): (B) For each landlord or tenant, you must (2) The date the insured crop is planted; or report the landlord's or tenant's social (3) The calendar date contained in the Crop security number, employer Provisions for the beginning of the insurance Identification number, or other periOd. .· . identification number we assigned for (b) Coverage· ends on each unH or part of a unit at the the purposes of this policy, as earliest of: applicable. (1) Total deStruction of the insured crop; (b) With respect to your share: (2) Harvest of the insured crop; (1) We will consider to be included in your share (3) Anal adjustment of a loss on a unit; under your policy, any acreage or interest (4) The calendar date contained in the Crop reported by or for. Provisions or Special Provisions for the end of (i) Your spouse, unless such spouse can the insurance period; prove he/she has a separate fanning (5) Abandonment of the insured crop; or operation, which includes, but is not limited (6) As otherwise specffted in the Crop Provisions. to, separate land (transfers of acreage (c) Except as provided In the Crop Provisions or from one spouse to another Is not applicable endorsement, In addition to the considered separate land), separate requirements of section 11(b), coverage ends on any capital, separate inputs, separate acreage within a unit once any event specffied in accounting, and saparate maintenance of section 11(b) occurs on· that acreage. ·Coverage proceeds; or onlY remains in effect ·on acreage that has not been (ii) Your child who resides fn your household affected by an event specified Insection 11(b). or any other member of your househo!d, 12. Causes of Loss. unless such chi!d or other member of the Insurance is provided only to protect against househo!d can demonstrate such person unavoidable, naturally occurring events. A fist of the has a separate share In the crop (Children covered naturally· occurring events is contafned In the who do not reside in your household are applicable Crop Provisions. AJI other causes of loss, not included in your share); and including but not limited to the following, are NOT (2) If It is determined that the spouse, child or other covered: member of the household has a separate policy (a) Any act by any person that affects the yield, quality but does not have a separate farming operation or price of the Insured crop (g&, chemical drift, fire, or share of the crop, as applicable: terrorism, etc.); (I) The policy for one spouse or child or other (b) Failure to follow recognized good farming practices member of the household will be void and for the fnsured crop; the policy remaining in effect will be (c) Water that is contained by or within structures that detennined in accordance with section are designed to contain a specffic amount of water, 22(a)(1) and (2); such as dams, locks or reservoir projects, etc., on (ii) The acreage or share reported under the any acreage when such water stays wHhin the policy that is voided will be included under designed limits (For example, a dam is designed to the remaining policy; and contain water to an elevation of 1,200 feet but you (iii) No premium wilt be due and no indemnity plant a aop on acreage at an elevation of 1,100 feet. will be paid for the voided policy. A storm causes the water behind the dam to rise to an elevation of 1,200 feel Under such circumstances, the resulting damage would not be

(18 of40) caused by an insurable cause of loss. However, if 14. Duties In the Event of Damage, Loss, Abandonment, you planted on acreage that was above 1,200 feet Destruction, or Alternative Use of Crop or Acreage. elevation, any damage caused by water that Your Duties: exceeded that elevation would be caused by an (a} In case of damage or loss of production or revenue insurable cause of loss); to any insured crop, you must protect the crop from (d) Failure or breakdown of the Irrigation equipment or further damage by providing sufficient care. facilities, or the inability to prepare the land for (b} Notice provisions: Irrigation using your established irrigation method (1) For a planted crop, when there is damage or (!&. furrow irrigation), unless the failure, breakdown loss of production, you must give us notice, by or JnabHity is due to a cause of loss specified In the unit, within 72 hours of your Initial discovery of Crop Provisions. damage or foss of production (but not later than (1) You must make all reasonable efforts to restore 15 days after the end of the insurance period, the equipment or f cilities to proper working even if you have not harvested the crop). order within a reasonable amount of time unless (2) For crops for which revenue protection is we detennlne it Is not practical to do so. elected, if there is no damage or loss of (2) Cost wiD not be considered when detennfning production, you must give us notice not later whether it is practical to restore the equipment than 45 days after the latest date the harvest or facHities: price is released for any crop in the unit where (e) Failure to carry out a good irrigation practice for the there is a revenue loss. Insured crop, if applicable; or (3) In the event you are prevented from planting an (f) Any cause of loss that results In damage that Is not insured crop that has prevented planting evident or would not have been evident during the coverage, you must notify us within 72 hours Insurance period, including. but not limited to, after: damage that only becomes evident after the end of (i) The final planting date,' if you do not intend the insurance period unless expressly authorized in to plant the ·Insured crop during the late the Crop Provisions. Even though we may not planting period or if a late planting period is inspect the damaged crop until after the end of the not applicable; or insurance period, damage due to insured causes (il} You de,errnine you will not be able to plant that would have been evident during the insurance the insured crop within any applicable late period will be covered. planting period. 13. Replanting Payment. (4) All notices required In this section that must be (a) If allowed by the Crop Provisions, a replanting received by us within 72 hours may be made by payment may be made on an insured crop replanted telephone or In person to your crop Insurance after we have given consent· and the acreage agent but must be confirmed in writing within 15 replanted is at least the lesser of 20 acres or 20 days. percent of the insured planted acreage for the unit (5) If you fail to comply with these notice (as detennfned on the final planting date or within · requirements, any loss or prevented planting the late planting period if a late planting period is claim will be considered solely due to an applicable). If the crops to be replanted are In a uninsured cause of loss _for f!le acreage for whole-fann .unit, the 20 acres or 20 percent which such failure occurred, ·unless we requirement is to be applied separately to each crop determine that we have the ability to accurately to be replanted in the whole-farm unit. adjust the loss. If we determine that we do not (b) No replanting payment will be made on acreage: have the abUity to accurately adjust the foss: (1) On which our appraisal establishes that (i) For any prevented planting claim, no production will exceed the level set by the Crop prevented planting coverage will be Provisions; provided and no premium will be owed or (2) lnitiaUy planted prior to the earliest planting date prevented planting payment will be paid; or established by the Special Provisions; or (ii) For any claim for Indemnity, no Indemnity (3) On which one replanting payment has already will be paid but you will still be required to been allowed for the crop year. pay all premiums owed. (c) The replanting payment per acre will be: (c) Representative samples: (1) The lesser of your actual cost for replanting or (1) If representative samples are required by the the amount specified in the Crop Provisions or Crop Provisions. you must leave representative Special Provisions; or samples of the unharvested crop intact (2) If the Crop Provisions or Special Provisions (i) If you report damage less than 15 days specify that your actual cost will not be used to before the time you will begin harvest or determine your replant payment, the amount during harvest of the damaged unit; or determined in accordance with the Crop (ii) At any time when required by us. Provisions or Special Provisions. (2) The samples must be left intact until we inspect (d) No replanting payment will be paid if we determine it them or until 15 days after completion of harvest is not practical to replant. on the remainder of the unit, whichever is earlier.

(19 of40) (3) Unless otherwise specified in the Crop (2) Failure to timely submit a claim or provide the Provisions or Special Provisions. the samples of required Information necessary to determine the the crop in each field in the unit must be 10 feet amount of the dalm will result In no Indemnity, wide and extend the entire rength of the rows, if prevented planting payment or replant payment the crop is planted in rows, or if the crop is not (i) Even though no indemnity or replant planted in rows, the longest dimension of the payment is due, you will still be required to field. pay the premium due under the policy for (4) The period to retain representative samples may the unit; or be extended if it is necessary to accurately (ii) Failure to timely submit a prevented determine the loss. You will be notified In writing planting claim will result In no prevented of any such extension. planting coverage and no premium will be (d) Consent: due. (1) You must obtain consent from us before, and (3) You must submit a claim not later than: notify us after you: (i) For policies other than revenue protection, (i) Destroy any of the insured crop that Is not 60 days after the date the Insurance period haiVested; ends for aD acreage in the unit (When there (H) Put the insured crop to an alternative use; is acreage fn the unit where the insurance (iff) Put the acreage to another use; or ·period ended on different dates, It is the (iv) Abandon any portion of the Insured crop. last date the insurance period ends on the (2) We will not give consent for any of the actions fn unit For example, if a unit has com section 14(d}(1)Q) through (iv) If it is practical to acreage that was put to another use on replant ·the crop or until we have made an · July 15 and com acreage where haiVest appraisal of the potential production of the crop. was completed on September 30, the claim (3) Failure to obtain our consent will result In the must be submitted not later than 60 days assfgnment of an amount of production or value after·September 30); or to count in accordance with the Settlement of (ii) For revenue protection. the later of: Claim provisions of the applicable Crop (A) 60 days after the last date the haiVest Provisions. price is released for any aop in the (e) Claims: unit; or (1) Except as otherwise provided in your policy, you (B) The date detennined in accordance must submit a claim declaring the amount of with section 14(e}(3}(i). your loss by the dates shown in section 14(e}(3), (4) To receive any Indemnity (or receive the rest of unless you: an Indemnity In the case of acreage that is (i) Request an extension In writing by such planted to a second crop), prevented planting date and we agree to such request payment or replant payment, you must, if (Extensions will only be granted if the applicable: amount of the loss cannot be determined (i) Provide: wi'.hfn such time period because the (A) A complete harvasting. information needed to determine the production, and marketing record of amount of the loss is not available); or each insured crop by unit fncludfng (ii) Have haiVested farm-stored grain separate records showing the same production and elect, in writing. to delay information for production from any measurement of your farm-stored acreage not insured. production and settlement of any potential (B) Records as indicated below if you associated claim for indemnity (Extensions Insure any acreage that may be will be granted for this purpose up to 180 subject to an indemnity reduction as days after the end of the insurance period). specified in section 15(e)(2): (A) For policies that require APH. if such (1) Separate records of production extension continues beyond the date from such acreage for all insured you are required to submit your crops planted on the acreage production report. you will be assigned (1&. if you have an fnsurabfe toss the previous year's approved yield as on 10 acres of wheat and a temporary yield In accordance with subsequently plant cotton on the applicable procedures. same 10 acres, you must provide (B) Any extension does not extend any records of the wheat and cotton date specified in the policy by which production on the 10 acres premiums, administrative fees. or other separate from any other wheat debts owed must be paid. and cotton production that may be (C) Damage that occurs after the end of planted in the same unit). If you the insurance period (for example. fail to provide separate records for while the haiVested crop production is such acreage, we will allocate the In storage) is not covered; and production of each crop to the

(20 of40) acreage in proportion to our (h) We may defer the adjustment of a loss until the Hability for the acreage; or amount of loss can be accurately determined. We (2) If there is no loss on the unit that will not pay for additional damage resufting from your includes acreage of the second failure to provide sufficient care for the crop during crop. no separate records need to the deferral period. be submitted for the second crop (i) We recognize and apply the loss adjustment and you can receive the rest of the procedures established or approved by the Federal Indemnity for the first insured crop. Crop Insurance Corporation. (C) Any other information we may require (j) For revenue protection, we may make preHminary to settJe the claim. Indemnity payments for crop production losses prior (ii) Cooperate with us in the investigation or to the release of the harvest price if you have not settlement of the claim, and, as often as elected the harvest price exclusion. we reasonably require: (1) First, we may pay an Initial indemnity based (A) Show us the damaged crop; upon your projected price, in accordance with (B) Allow us to remove samples of the the applicable Crop Provisions provided that insured crop; and your production to count and share have been (C) Provide us with records and established; and documents we request and permit us (2) Second, after the harvest price is released, and to make copies. if it is not equal to the projected price, we will Oil) Establish: recalculate the Indemnity payment and pay any (A) The total production or value received additional indemnity that may be due. for the Insured crop on the unit; 15. Production Included In Detennlnlng an Indemnity (B) That any loss occurred during the and Payment Reductions. insurance period; (a) The total production to be counted for a unit wDI (C) That the loss was caused by one or include all production determined In accordance with more of the Insured causes specified the policy. In the Crop Provisions: and (b) Appraised production will be used to calculate your (D) That you have complied with all claim if you are riot going to harvest your acreage. provisions of this policy. Such appraisals may be conducted after the end of (iv) Upon our request, or that of any USDA the Insurance period. If you harvest the crop after employee authorized to conduct the crop has been appraised: Investigations of the crop Insurance (1) You must provide us with the amount of program, submit to an examination under harvested produCtion (If you fail to provide oath. verifiable records of harvested production, no (5) Failure to comply with any requirement indemnity will be paid and you will be required to contained In section 14(e)(4) will result in denial retum any previously paid indemnity for the unit of the claim and any premJum will still be owed, that was based on an appraised amount of unless the claim denied is for prevented production): and . planting. (2) !f the harvested productlun exceeds the Our Duties: appraised production, claims will be adjusted (f) If you have complied with all the policy provisions,. using ·the harvested production, and you will be we will pay your loss within 30 days after the later of: required to repay any overpaid Indemnity; or . (1) We reach agreement with you; (3) If the harvested production is less than the (2) Completion of arbitration, reconsideration of appraised production, and: determinations regarding good farming practices (i) You harvest after the end of the insurance or any other appeal that results In an award In period, your appraised production will be your favor, unless we exercise our right to used to adjust the loss unless you can appeal such decision; prove that no additional causes of loss or (3) Completion of any Investigation by USDA, if deterioration of the crop occurred after the applicable, of your current or any past claim for end of the Insurance period; or indemnity if no evidence of wrongdoing has (if) You harvest before the end of the been found (If any evidence of wrongdoing has insurance pe od, your harvested been discovered, the amount of any Indemnity, production will be used to adjust the loss. prevented planting or replant overpayment as a (c) If you elect to exdude hail and fire as insured causes result of such wrongdoing may be offset from of foss and the insured crop Is damaged by hail or any indemnity or prevented planting payment fire, appraisals will be made as described in our form owed to you); or used to exclude hall and fire. (4) The entry of a final judgment by a court of (d) The amount of an Indemnity that may be determined · competent jurisdiction. under the applicable provisions of your policy may (g) In the event we are unable to pay your loss within 30 be reduced by an amount, determined in accordance days, we will give you notice of our Intentions within with the Crop Provisions or Special Provisions, to the 30-day period. reflect out-of-pocket expenses that were not incurred

(21 of40) by you as a result of not planting, caring for, or percent of the prevented planting payment harvesting the crop. lndemnitfes paid for acreage for the first insured crop; and prevented from being planted will be based on a (ii) Be responsible for premium that is 35 reduced guarantee as provided for in the policy and percent of the premium that you would will not be further reduced to reflect expenses not otherwise owe for the first insured aop. incurred. (g) The reduction In the amount of indemnity or (e) With respect to acreage where you have suffered an prevented planting payment and premium specified insurable ross to planted acreage of your first insured in sections 15(e) and 15(f), as applicable, will apply: crop in the crop year, except in the case of double (1) Notwithstanding the priority contained in the cropping described In section 15(h): Agreement to Insure section, which states that (1) You may elect to not plant or to plant and not the Crop Provisions have priority over the Basic insure a second crop on the same acreage for Provisions when a conflict exists, to any harvest In the same crop year and collect an premium owed or · indemnity or prevented indemnity payment that is equal to 100 percent planting payment made In accordance with the of the Insurable ross for the first Insured crop; or Crop Provisions, and any applicable (2) You may elect to plant and insure a second crop endorsement. on the same acreage for harvest in the same (2) Even if another person plants the second crop crop year (you will pay the full premium and, if on any -acreage where the first insured crop was there is an insurable loss to the second crop, planted or was prevented from being planted, as receive the full amount of indemnity that may be applicable. due for the second crop, regardless of whether (3) 'For prevented planting only: there Is a subsequent crop planted on the same (i) · · If a volunteer aop or cover crop is hayed acreage) and: or grazed from the same acreage, after the (I) Collect an indemnity payment that is 35 late planting period (or after the final percent of the insurable foss for the first planting date if a late planting period is not insured crop; applicable) for the first Insured crop In the (li) Be responsible for premium that is 35 same crop year, or is otherwise harvested percent of the premium that you would anytime after the late planting period (or otherwise owe for the first insured crop; after the final planting date if a late planting and period is not applicable); or (iii) If the second crop does not suffer an (li) If you receive cash rent for any acreage on insurable loss: which you were prevented from planting. (A) Collect an indemnity payment for the (h) You may receive a full indemnity, or a full prevented other 65 percent of insurable loss that planting payment for a first insured crop when a was not previously paid under section second crop Is planted on the same·acreage ln the 15(e)(2)(i); and same crop year, regardless of whether or not the (B) Be responsible for the remainder of the second crop Is insured or sustains an Insurable loss, premium for the first insured crop that if each of the follo·wing conditions are met: you did not pay under section (1) It is a practice that is generally recognized by 15(e)(2)(ii). agricultural experts or organic agricultural (f) With respect to acreage where you were prevented experts for the area to plant two or more crops from planting the first insured crop in the crop year, for harvest in the same crop year; except in the case of double cropping described in (2) The second· or more crops are customarily sectlon 15(h): planted after the first insured crop for harvest on (1) If a second crop is not planted on the same the same acreage in the same crop year in the acreage for harvest fn the same crop year. you area; may collect a prevented planting payment that is (3) Additional coverage insurance offered under the equal to 100 percent of the prevented planting authority of the Act Is available in the county on payment for the acreage for the first insured the two or more·crops that are double cropped; crop; or (4) You provide records acceptable to us of acreage (2) If a second crop is planted on the same acreage and production that show you have double for harvest in the same crop year (you will pay cropped acreage in at least two of·the last four the full premium and, if there is an insurable loss crop years in which the first insured crop was to the second crop, receive the full amount of planted, or that show the applicable acreage indemnity that may be due for the second crop. was double cropped in at least two of the last regardless of whether there is a subsequent four crop years in which the first insured crop crop planted on the same acreage) and: was grown on it; and (I) Provided the second crop is not planted on (5) In the case of prevented planting, the second or before the final planting date or during crop is not planted on or prior to the final the late planting period (as applicable) for planting date or, if applicable, prior to the end of the first insured crop, you may conect a the late planting period for the first insured crop. prevented planting payment that is 35

(22 of40) (i) The receipt of a full indemnity or prevented planting the production guarantee or amount of payment on both crops that are double cropped is insurance that is provided for acreage of the limited to the number of acres for which you can insured crop that is timely planted by the demonstrate you have double cropped or that have prevented planting coverage level percentage been historically double cropped as specffied In you elected, or that is contained in the Crop section 15(h). Provisions If you dfd not elect a prevented (1) If the records you provided are from acreage planting coverage level percentage; you double cropped in at least two of the last (2) Planting on such acreage must have been four crop years, you may apply your history of prevented by the final planting date (or during double cropping to any acreage of the insured the late planting period, if applicable) by an crop in the county (§&b if you have double insurable· cause occurring within the insurance cropped 100 acres of wheat and soybeans in the period for J)revented planting coverage; and county and you acquire an additional 100 acres (3) All production from Insured acreage as specified in the county, you can apply that histoty of In this section will be lnduded as production to double cropped acreage to any of the 200 acres count for the unit. in the county as long as it does not exceed 100 (c) The premium amount for Insurable acreage specified acres); or in this section will be the same. as that for timely (2) If the records you provided are from acreage planted acreage. If the amount of premium you are that another producer double cropped in at least required to pay (gross premium less our subsidy) for two of the last four crop years, you may only use such acreage exceeds the liability, coverage for the history of double cropping for the same those acres will not be provided (no premium will be physical acres from which double cropping due and no Indemnity will be paid). records were provided if a neighbor has (d) Any acreage on which an insured cause of loss is a double cropped 100 acres of wheat and material factor In preventing completion of planting, soybeans in the county and you acquire your as specified In the definition of •planted acreage• neighbor's 100 double cropped acres and an (§&. seed is broadcast on the soil surface but additional100 acres in the county, you can only cannot be incorporated) will be considered as apply your neighbor's history of double cropped acreage planted after the final planting date and the acreage to the same 100 acres that your ·production guarantee will be calculated In neighbor double cropped). accordance with section 16(b)(1). 0) If any Federal or State agency requires destruction 17. Prevented Planting. · of any insured crop or crop production, as (a) Unless limited by the policy provisions, a prevented applicable, because it contains levels of a planting payment may be made to you for eligible substance, or has a condition, that is injurious to acreage if: · human or animal health in excess of the maximum (1) You are prevented from planting the insured amounts allowed by the Food and Drug crop on insurable acreage by an insured cause Administration, other public health organizations of of loss that occurs: the UnHed States or an agency of the appUcable (i) On or after the sales closing date State, you must destroy the insured crop or crop contained In the Special Provisions for the production, as applicable, and certify that such insured crop In the county for the crop year Insured crop or crop production has been destroyed the application for insurance is accepted; prior to receiving an Indemnity payment Failure to or destroy the Insured crop or crop production, as (ii) · For any subsequent crop year, on or after applicable, will result In you having to repay any the sales closing date for the previous crop Indemnity paid and you may be subject to year for the Insured crop In the county, administrative sanctions in accordance with section · provided Insurance has been in force 515(h) of the Act and 7 CFR part 400, subpart R, continuously since that date. cancellation and any applicable civil or criminal sanctions. for the purpose of transferring the policy to 16. Late Planting. a different Insurance provider for the Unless limHed by the Crop Provisions, insurance will be subsequent crop year will not be provided for acreage planted to the insured crop after the considered a break in continuity for the final planting date in accordance with the following: purpose of the preceding sentence; (a) The production guarantee or amount of Insurance for (2) You include on your acreage report any each acre planted to the insured crop during the late insurable acreage of the insured crop that was planting period will be reduced by 1 percent per day prevented from being planted; and for each day planted after the final planting date. (3) You did not plant the insured crop during or after (b) Acreage planted after the late planting period (or the late planting period. Acreage planted to the after the final planting date for crops that do not have insured crop during or after the late planting a late planting period) may be insured as follows: period is covered under the late planting (1) The production guarantee or amount of provisions. Insurance for each acre planted as specified in this subsection will be determined by multiplying

(23 of40) (b) The actuarial documents may contain additional (f) If you knew or had reason to know levels of prevented planting coverage that you may on the final planting date or during purchase for the Insured crop: the late planting period that your (1) Such purchase must be made on or before the water will be reduced, no sales closing date. reasonable expectation exists; and (2) If you do not purchase one of those additional (2) Available water resources will be revels by the sales closing date, you wffl receive verified using information from the prevented planting coverage specified In the State Departments of Water Crop Provisions. Resources, U.S. Bureau of (3) If you have a Catastrophic Risk Protection Reclamation, Natural Resources Endorsement for any crop, the additional levels Conservation Service or other of prevented planting coverage will not be sources whose business includes available for that crop. collection of water data or (4) You cannot increase your elected or assigned regulation of water resources; or prevented planting coverage level for any crop (B) The irrigation equipment or facilities year if a cause of foss that could prevent have failed or broken down if such planting (even though it is not known whether failure or breakdown is due to an such cause will actually prevent planting) has insured cause of loss specified in occurred during the prevented planting section 12(d). insurance period specified in section 17(a)(1)(i) (2) Causes other than ·drought, failure of the or I) and prior to your request to change your irrigation water supply, failure or breakdown of prevented planting coverage level. the irrigation equipment or facilities, or your (c) The premium amount for acreage that is prevented inability to prepare the land for Irrigation using from befng planted will be the same as that for timely your established Irrigation method, provided the planted acreage except as specified in section 15(1). cause of loss is specified In the Crop Provisions. If the amount of premium you are required to pay However if it is possible for you to plant on or (gross premium less the subsidy) for acreage that Is prior to the final planting date when other prevented f m befng planted exceeds the liability on producers in the area are planting and you faD to such acreage. coverage for those acres will not be plant, no prevented planting payment will be provided (no premium will be due and no indemnity made. wiU be paid for such acreage). (e) The maximum·number of acres that may be eligible (d) Prevented planting coverage will be provided . for a prevented planting payment for any crop wm be against: determined as follows: (1) Drought, failure of the irrigation water supply, (1) The total number of acres eligible for prevented faHure or breakdown of irrigation equipment or planting coverage for all crops cannot exceed facilities, or the Inability to prepare the land for the number of acres of cropland In your farming irrigation using your established Irrigation operation for the crop year, unless you are method, due to an insured cause of loss only if, eligible for prevented planting coverage on on the final planting date (or within the late double cropped acr age in accordance with planting period if you elect to try to plant the section 17(f)(4): ·The· eligible· acres for each crop), you provide documentation acceptable to insured crop wiD be determined as follows: us to establish: (i) If you have planted any crop in the county (i) For non-irrigated acreage, the area that is for·Which prevented planting Insurance was preve ted from being planted has available (you will be considered to have Insufficient soil moisture for germination of · planted if your APH database contains seed or progress toward crop maturity due actual planted acres) or have received a to a prolonged period of dry weather. The prevented planting Insurance guarantee in documentation for prolonged period of dry any one or more of the four most recent weather must be verifiable using crop years. and the Insured crop is not information collected by sources whose required to be contracted with a processor business it is to record and study the to be insured: weather, including. but not limited to. focal (A) The number of eligible acres will be weather reporting stations of the National the maximum number of acres certified Weather Service; or for APH purposes, or insured acres (ii) For Irrigated acreage: reported. for the crop In any one of the (A) Due to an insured cause of loss, there four most recent crop years (not is not a reasonable expectation of Including reported prevented planting having adequate water to carry out an acreage that was planted to a second irrigated practice or you are unable to crop unless you meet the double prepare the land for irrigation using cropping requirements in section your established irrigation method: 17(f)(4)).

(24 of40) (B) If you acquire additional land for the (2) The number of acres specified on current crop year, the number of your Intended acreage report, eligible acres determined In section which must be submitted to us 17(e)(1)(i)(A) for a crop may be within 10 days of the time you Increased by multiplying it by the ratio acquire the acreage and that is of the total cropland acres that you are accepted by us, if, on the sales farming this year (if greater) to the total closing date, you do not have any cropland acres that you fanned in the acreage In a county and you previous year, provided that: subsequently acquire acreage (1) You submit proof to us that you through a method desaibed In acquired additional acreage for the section 17(f)(12) in time to plant it current crop year by any of the usfng good farming practices. methods specified In section (B) The total number of acres listed on the 17(f)(12); intended acreage report may not (2) The additional acreage was exceed the number of acres of acquired fn time to plant it for the cropland in your fanning operation at current crop year using good the time you submit the intended farming practices; and acreage report. (3) No cause of foss has occurred at (C) If you acquire additional acreage after the time you acquire the acreage we accept your Intended acreage that may prevent planting (except report, the number of acres acreage you leased the previous determined in section 17(e)(1)01)(A) year and continue to lease in the may be increased in accordance with current crop year). section 17(e)(1)(1)(B) and (C). (C) If you add adequate irrigation facilitieS (D) Prevented planting coverage wUI not to your existing non-irrigated acreage be provided for any acreage included or if you acquire additional land for the on the intended acreage report or any current crop year that has adequate increased amount of acreage irrigation facilities, the number of deterrnJned in accordance with section eligible acres determined in section 17(e)(1)(ft)(C) if a cause of loss that 17(e)(1)(1}(A) for irrigated acreage of a may prevent planting occurred before crop may be increased by multiplying it the acreage was acquired, as by the ratio of the total irrigated acres determined by us. that you are farming this year (if (Iii) For any crop that must be contracted with a greater) to the total irrigated acres that processor to be insured: you fanned in the previous year, (A) The number of eligible acres will be: provided the conditions in sections (1} The number of acres of the crop 17(e}(1)Q)(B)(1}, (2) and (3) are met. If · speciflsd in the processor there were no irrigated acres in the contract, if the contract specifies a previous year, the eligible Irrigated . number of acres contracted for the acres for a crop will be limited to the crop year; lesser of the num r ·of eligible non- (2) The result of dividing the quantity . Irrigated acres of the crop or the of production stated in the number of acres on which adequate processor contract by your irrigation facilities were added. approved yield, If the processor (ii) If you have not planted any crop in the contract specifies a quantity of county for which prevented planting production that will be accepted insurance was available (you will be (for the purposes of establishing considered to have planted if your APH the number of prevented planting database contains actual planted acres) or acres, any reductions applied to have not received a prevented planting the transitional yield for failure to insurance guarantee in all of the four most certify acreage and production for recent crop years, and the insured crop is four prior years will not be used); not required to be contracted with a or processor to be insured: (3) Notwithstanding sections (A) The number of eligible acres will be: 17(e)(1)(iii)(A)(1) and (2), if a (1) The number of acres specified on minimum number of acres or your intended acreage report, amount of production is specified which must be submitted to us by in the processor contract, this the sales closing date for all crops amount will be used to determine you insure for the crop year and the eligible acres. that is accepted by us; or

(25 of40) (B) If a processor cancels or does not (2) For which the actuarial documents do not provide contracts, or reduces the provide the Information needed to determine the contracted acreage or production from premium rate. unless a written agreement what would have otherwise been designates such premium rate; allowed, solely because the acreage (3) Used for conservation purposes, Intended to be was prevented from being planted due left unplanted under any program administered to an insured cause of loss, we will by the USDA or other government agency. or determine the number of eligible acres required to be left unharvested under the terms based on the number of acres or of the lease or any other agreement (The amount of production you had number of acres eligible for prevented planting contracted in the county In the will be limited to the number of acres specified in previous crop year. If the applicable the lease for which you are required to pay Crop Provisions require that the price either cash or share rent); election be based on a contract price, (4) On which the Insured crop is prevented from and a contract is not in force for the being planted, If you or any other person current year, the price election will be receives a prevented planting payment for any based on the contract price in place for crop for the same acreage in the same crop the previous crop year. If you did not year. excluding share arrangements. unless: have a processor contract in place for (i) It is a practice that is generally recognized the previous crop year. you will not by agricultural experts · or organic have any eligible prevented planting agricultural experts in the area- to plant the acreage for the applicable processor insured crop for harvest following harvest crop. The total eligible prevented of the first insured crop, and additional coverage Insurance offered under the planting acres In afl counties cannot authority of the Ad Is available In the exceed the total number of acres or county for both crops In the same crop amount of production contracted in all year; counties in the previous crop year. (ii) For the insured crop that is prevented from (2) Any eligible acreage determined in accordance being planted. you provide records with section 17(e)(1) will be reduced by subtracting the number of acres of the crop acceptable to us of acreage and production (insured and uninsured) that are timely and late that show. In at least two of the last four planted, Including acreage specified in section crop years: 16(b). (A) You have double cropped acreage on (f) Regardless of the number of eligible acres which the insured crop· that is detennined in section· 17(e), prevented planting prevented from being planted in the coverage will not be provided for any acreage: current crop year was grown (You may (1) That does not constitute at least 20 acres or 20 apply your history of douple cropping percent of the Insurable crop acreage in the unit, to any acreage of the Insured crop in whichever Is less (If the crop is In a whole-farm the county (!&, if YOtl have double unit. the 20 acre -or 20 percen: requirement will pped 100 acres of Vlheat and be applied separately to each crop In the whole- · soybeans In the county and you fann unit). Any prevented planting acreage acquire an additional 100 acres in the wHhin a field that contains planted acreage wm county, you can apply that history of be considered to be acreage of the same crop, double cropped acreage to any of the type. and practice that Is planted in the field 200 acres in the county as long as it unless: does not exceed 100 acres)); or (i) The acreage that was prevented from (B) The acreage you are prevented from being planted constitutes at least 20 acres or 20 percent of the total insurable acreage planting in the current crop year was in the field and you produced both crops. double cropped with the insured crop crop types. or followed both practices In that Is prevented from being planted the same field in the same crop year within (You may only use the history of any one of the four most recent crop years; double cropping for the same physical (ii) You were prevented from planting a first acres from which double cropping insured crop and you planted a second records were provided (!&. if a crop in the field (There can only be one neighbor has double cropped 100 first insured crop in a field unless the acres of wheat and soybeans in the requirements in section 17(f)(1)(i) or (iii) county and you acquire your are met); or neighbor's 100 double cropped acres (iii) The insured crop planted in the field would and an additional 100 acres in the not have been planted on the remaining county. you can only apply your prevented planting acreage C!:9u where neighbor's history of double cropped rotation requirements would not be met or acreage to the same 100 acres that you already planted the total number of your neighbor double cropped)): and acres specified in the processor contract);

(26 of40) QH) The amount of acreage you are double you have already planted 80 acres and are cropping In the current crop year does not claiming prevented planting on an exceed the number of acres for which you additional 100 acres); or provided the records required in section (ifi) Your planting pradlces or rotational 17(f)(4)(il); requirements show the acreage would (5) On which the Insured crop is prevented from have remained fallow or been planted to being planted, if: another aop; Q) Any crop is planted within or prior to the (10) Based on an irrigated practice late planting period or on or prior to the production guarantee or amount of final planting date if no late planting period Insurance unless Is applicable, unless: adequate irrigation facilities were In place to (A) You meet the double cropping carry out an irrigated practice on the acreage requirements in section 17(f)(4); prior to the insured cause of foss that prevented (B) The crop planted was a cover crop; or you from ·planting. · Acreage with an Irrigated (C) No benefit, including any benefit under practice production guarantee will be limited to any USDA program, was derived from the number of acres allowed for that practice the crop; or under sections 17(e) and (f); (ii) Any volunteer or cover crop is hayed, (11) Based on a crop type that you did not plant, or grazed or otherwise harvested within or did not receive a prevented planting insurance prior to the late planting .period or on or guarantee for, In at least one of the four most prior to the final planting date if no late recent crop years: planting period is applicable; (J) Types for which separate projected prices (6) For which planting history or conservation plans or price elections, as applicable, amounts indicate the acreage would have remained of insurance, or production guarantees are fallow for crop rotation purposes or on which any available must be· Included ·In your APH pasture or forage crop is in place on the acreage database in·at least one of the four most during the time planting of the insured crop · recent crop years (Crops for which the generally occurs in the area. Cover plants that insurance guarantee is not based on APH are seeded, transplanted, or that volunteer: must be reported on your acreage report in (i} More than 12 months prior to the final at least one of the four most recent crop planting date for the insured crop that was years} except as allowed in section prevented from being planted will be 17(e)(1)(H) or (iii); and considered pasture or a forage crop that is (II} We will llmH prevented planting payments in place the cover crop is planted 15 based on a specific crop · type to the months prior to the final planting date and number of acres allowed for that crop type remains In place during the time the as specified in sections 17(e} and (f); or insured crop would nonnally be planted); or (12)1f a cause of Joss has occurred·that may prevent (ii) Less than 12 months prior to the final planting at the time: planting date for the insured crop that was (i) You lease the acreage (except acreage prevented from being planted will not be · ·you leesed the previous crop year and considered. pasture or a forage crop that is . contlnue·to lease In the current crop year); in place; . (il) · ·You buy the acreage; (7} That exceeds the number of acres eligible for a (lli) The. acreage is released from a USDA prevented planting payment; program which prohibits harvest of a crop; (8) That exceeds the number of eHgible acres (iv) You request a written agreement to insure .physically available for planting; the acreage; or (9) For which you cannot provide proof that you had (v) You acquire the acreage through means the Inputs Qncluding. but not Hmited to, sufficient other than lease or purchase (such as equipment and manpower) available to plant Inherited or gifted acreage). and produce a crop with the expectation of (g) If you purchased an additional coverage policy for a producing at least the yield used to determine crop, and you executed a High-Risk Land Exclusion your production guarantee or amount of Option that separately Insures acreage which has insurance. Evidence that you previously had been designated as 1ligh-rlsl( land by FCIC under a planted the crop on the unit w111 be considered Catastrophic Risk Protection Endorsement for that adequate proof unless: crop, the maximum number of acres eligible for a Q) There has been a change in the availability prevented planting payment will be limited for each of inputs since the crop was last planted policy as specified in sections 17(e) and (f). that could affect your ability to plant and (h) If you are prevented from planting a crop for which produce the insured crop; you do not have an adequate base of eligible (ii) We determine you have insufficient inputs prevented planting acreage, as determined in to plant the total number of insured crop accordance with section 17(e)(1), we will use acres (!&b. you will not receive a acreage from another crop insured for the current prevented planting payment if you have crop year for which you have remaining eligible sufficient inputs to plant only 80 acres but prevented planting aaeage.

(27 of40) (1) The crop first used for this purpose will be the elect a prevented planting coverage level insured crop that would have a prevented percentage, by: planting payment most similar to the payment for (i) Your amount of insurance per acre; or the crop that was prevented from being planted. (ii) The amount determined by multiplying the (i) If there are still insufficient eligible production guarantee (per acre) for timely prevented planting acres, the next crop planted acreage of the insured crop (or · used will be the insured crop that would type, if applicable) by your price election or have the next closest prevented planting your projected price, whichever is payment. applicable; (II) In the event payment amounts based on (2) Multiplying the result of section 17(1)(1) by the other crops are an equal amount above number of eligible prevented planting acres in and below the payment amount for the the unH; and crop that was prevented from being (3) Multiplying the result of section 17(i)(2) by your planted, eligible aaes for the crop with the share. · higher payment amount will be used first. 18. Written Agreements. (2) The prevented planting payment and premium Terms of this policy which are specifically designated for will be based on: the use of written agreements may be altered by written (i) The crop that was prevented from being agreement in accordance with the following: planted if the insured crop with remaining (a) You must apply In writing for each written agreement eligible acreage would have resulted in a (induding· renewal of ·a written agreement) no later higher prevented .planting payment than than the sales closing 'date, except as provided In would have been paid for the crop that was section 1'8(e); · prevented from being.planted; or (b) The application for a written·agreement must contain (ii) The crop from which eligible acres are all variable terms of the contract between you and us being used if the insured crop with that will be In effect if the· written agreement Is not remaining eligible acreage will result in a approved; lower prevented planting payment than (c) If ·approved by FCIC, the written agreement will would have been pafd for the crop that was indude all variable terms of the cantract, including, prevented from being planted. but not limHed to, the crop; practice, type or variety; (3) For example, assume you were prevented from guarantee; premium rate; and projected price, planting 200 acres of com andJtave 100 acres harvest price, price election or amount of insurance, eligible for a com prevented planting guarantee as applicable, or the Information needed to that would result in a payment of $40 per acre. determine such variable terms. If the written You also had 50 acres of potato eligibility that agreement is for a county: would result in a $100 per acre payment and 90 (1) That has a price election or amount of insurance acres of grain sorghum eligibility that would stated in the Special Provisions, or an result In a $30 per acre payment. Your addendum thereto, for the crop, practice, type or prevented planting coverage will be based on variety, .the written agreement will contain the 1OQ acres of com ($40 per acre), 90 acres of pries election or· amount of.insurance stated In grain sorghum ($30 per acre), and an additional · · ·the Special Provisions or an addendum thereto, 10 acres of com (using potato effgible acres and for the crop, practice, type or variety; paid as com at $40 per acre). Your prevented · (2) That does not have price elections ·or amounts planting. payment would be $7,100 ($4,000 + of Insurance stated in the Special Provisions, or $2,700 + $400). an addendum thereto, for the crop, practice, (4) Prevented planting coverage will be allowed as ,· type or variety, the written agreement will specified in section 17(h) only if the crop that contain a price election or amount of insurance was prevented from being planted meets all that does not exceed the price election or policy provisions, except for having an adequate amount of insurance contained in the Special base of eligible prevented planting acreage. Provisions, or an addendum thereto, for the Payment may be made based on crops other county that is used to establish the other terms than those that were prevented from being of the written agreement, unless otherwise planted even though other policy provisions, authorized by the Crop Provisions; including but not limited to, processor contract (3) For which revenue protection is not available for and rotation requirements, have not been met the crop, but revenue protection is available in for the crop whose eligible acres are being used. the State for the crop, the written agreement will (5) An additional administrative fee will not be due contain the information used to establish the as a result of using eligible prevented planting projected price and harvest price, as appUcable, acreage as specified in section 17(h). for that State; or (i) The prevented planting payment for any eligible (4) In a State for which revenue protection is not acreage within a unit wiU be detennined by: available for the crop, but revenue protection is (1) Multiplying the prevented planting coverage available for the crop in another State, the level percentage you elected, or that is written agreement Is available for yield contained in the Crop Provisions if you did not protection only, and will contain the information

(28 of40) needed to determine the projected price for the for you to accept the offer, crop from another State as determined by FCIC; whichever comes first; or (d) Each written agreement will only be valid for the (B) Establish optional units in accordance number of crop years specified in the written with FCIC procedures that otherwise agreement, and a multi-year written agreement would not be allowed, change the (1) WIIJ only apply for any particular crop year premium rate or transitional yield for designated in the written agreement if an terms designated high-risk land, or insure and conditions in the written agreement are still acreage that is greater than five applicable for the crop year and the conditions percent of the planted acreage in the under which the written agreement has been unit where the acreage has not been provided have not changed prior to the planted and harvested or insured in beginning of the insurance period (If conditions any of the three previous crop years; change during or prior to the crop year, the (ii) On or before the cancellation date to insure written agreement will not be effective for that a crop in a county that does not have crop year but may still be effective for a actuarial documents for the crop (If the subsequent crop year if conditions under which Crop Provisions do not provide a the written agreement has been provided exist cancellation date for the county. the for such year); cancellation date for other insurable crops (2) May be canceled in writing by: in the same State that have similar final (i) FCIC not Jess than 30 days before the planting and harvesting dates will be cancellation date If it discovers that any applicable); or term or condition of the written agreement. Oil) On·or before ttie date specified In the Crop including the premium rate, is not Provisions or Special Provisions; or appropriate for the crop; or (3) For adding land or a crop to either an existing (ii) You or us on or before the cancellation written agreement or· a request for a written date; agreement, provided the request is submitted by (3) That is not renewed in writing after it expires, is th& applicable deadline specffied In section 18; not applicable for a crop year, or is canceled. (f) A request for a written agreement must contain: then insurance coverage will be in accordance (1) For all written agreement requests: with the terms and conditions stated in this (I) A completed "Request for Actuarial Change• form; 0

policy, without regard to the written agreement; 0

•

and (ii) An APH form (except for polfcies that do (4) Will be automatically canceled if you transfer not require APH) containing all the your policy to another insurance provider (No information needed to determine the notice will be provided to you and for any approved· yield for the current crop year subsequent crop year, for a written agreement to (completed APH form). signed by you, or be effective, you must timely request renewal of an unsigned, completed APH form with the the written agreement in accordance with this applicable production reports sfgned and section); dated by you that are based on verifiable (e) A request for a written agreement may be submitted:· records of actual yields for the crop and (1) After the sales closing date, but on or before the county for which the written agreement Is acreage reporting date, if you demonstrate your being requested ·(the actual yields do not physical fnabinty to submit the request on or necessarily have to be from the same before the sales closing date (ft&. you have physical · acreage for which you are been hospitalized or a blizzard has made it requesting a written agreement) for at least impossible to submit the written agreement the most recent crop year In which the crop request in person or by mail); was planted during the base period and (2) For the first year the written agreement is verifiable records of actual yields if required requested: byFCIC; (i) On or before the acreage reporting date to: (iii) Evidence from agricultural experts or (A) Insure unrated land, or an unrated organic agricultural experts, as applfcable, practice, type or variety of a crop; that the crop can be produced fn the area if although, if required by FCIC, such the request is to provide insurance for written agreements may be approved practices. types. or varieties that are not only after appraisal of the acreage by insurable, unless we are notified in writing us and: by FCJC that such evidence Is not required (1) The crop's potential is equal to or byFCIC; exceeds 90 percent of the yield (iv) The legal description of the land (In areas used to determine your production where legal descriptions are available) and guarantee or amount of insurance; the FSA farm serial number including tract and and fiefd numbers, if available. The (2) You sign the written agreement no submission must also Include an FSA later than the date the first field is aerial photograph, or field boundaries appraised or by the expiration date derived by a Geographic Information (29 of40) System or Global Positioning System, or you are requesting a written other legible maps delineating field agreement; and boundaries where you intend to plant the (2) Verifiable production records do crop for which insurance is requested; not have to be submitted if you (v) For any perennial crop, an inspection have insured the similar crop for at report completed by us; and least the three previous crop years (vi) All other information that supports your and have certified the yields on request for a written agreement (including the appficable production reports but not limited to records pertaining to or the yields are based on your levees, drainage systems, flood frequency insurance claim (although you are data, soil types, elevation, etc.); not required to submit production (2) For written agreement requests for counties records, you still must maintain without actuarial documents for the crop, the production records in accordance requirements in section 18(f)(1) (except section with section 21); 18(f)(1)(il)) and: (C) If you have at feast one year of (i) For a crop you have previously planted in production records, but less than three the county or area for at least three years: years of production records, for the (A) A completed APH form signed by you crop In the county or area but have (only for crop policies that require production records for a similar crop in APH) based on verifiable production the county ·or area suCh that the records for at least the three most combination of both sets of records recent crop years in which the crop results In at leasf three years of was planted; and production records, you must provide (B) Verifiable production records for at · the information required in sections least the three most recent crop years 18(f)(2Xi)(A) &. (B) for the years you in which the crop was planted: grew the crop in the county or area (1) The verifiable production records and the infonnation required in do not necessarily have to be from sections 18(f)(2)(iiXA) & (B) regardfng the same physical acreage for the similar crop for the remaining which you are requesting a written years; and · agreement; and (D) A similar crop to the crop for which (2) Verifiable production records do a written agreement is being not have to be submitted if you requested must: have Insured the crop in the (1) Be included in the same category county or area for at least the · of crops, !Jb row crops previous three crop years and (including, but not limited to, small have certified the yields on the grains,·coarse grains, and oil seed applicable production reports or crops),· vegetable· crops grown in th3 yields are based on your rows, tree crops, vine crops. bush insurance claim (although you are crops etc... as defined by FCIC; not required. to submit production (2) Have ·substantially the same records, you still must maintain growing· season .·(i.e., normally production records In accordance planted around the same dates with section 21); and harvested around the same (ii) For a crop you have not previously planted dates); in the county or area .for at least three (3) Require comparable agronomic years: conditions (Mb comparable (A) A completed APH form signed by you needs for water, soil, etc.); and (only for crop policies that require (4) Be subject to substantially the APH) based on verifiable production same risks (frequency and records for at feast the three most severity of loss would be expected recent crop years for a similar crop to be comparable from the same from acreage: cause of toss); (1) Inthe county; or (iii) The dates you and other growers in the (2) In the area if you have not area normally plant and harvest the crop, if produced the crop in the county; applicable; and (iv) The name, location of, and approximate (B) Verifiable production records for at distance to the place the crop will be sold least the three most recent crop years or used by you; in which the similar crop was planted: (v) For any irrigated practice, the water (1) The verifiable production records source. method of Irrigation, and the for the similar crop do not amount of water needed for an irrigated necessarily have to be from the practice for the crop; and same physical acreage for which

(30 of40) (vi) All other information that supports your you and we can only accept or reject the written request for a written agreement (such as agreement fn its entirety (you cannot reject publications regarding yiefds, practices, specific terms of the written agreement and risks, climatic data, etc.); and accept others); (3) Such other information as specified in the (2) When multiple Request for Actuarial Change Special Provisions or required by FCIC; forms are submitted, regardless of when the (g) A request for a written agreement will not be forms are submitted, for the same condition or accepted if: for the same crop (I.e.. to insure com on ten (1) The request is submitted to us after the legal descriptions where there are no actuarial applicable deadline contained In sections 18(a) documents in the county or the request Is to or (e); change the premium rates from the high-risk (2) All the information required in section 18(f) is not rates) all these forms may be treated as one submitted to us with the request for a written request and you and we will only have the option agreement (The request for a written agreement of accepting or rejecting the written agreement may be accepted if any missing Information is in its entirety (you cannot reject specific terms of available from other acceptable sources); the written agreement and aceept others); (3) The request is to add land to an existing (3) When multiple Request for Actuarial Change written agreement or to add land to a forms are submitted, regardless of when the request for a forms are submitted, for the cfrfferent conditions written agreement and the request to add the or for different crops. separate agreements may land is not submitted by the applicable deadfine be issued and you and we wiD have the option to specified in sections 18(a) or (e); or · accept or reject each written agreement; and (4) The request is not authorized by the policy; (4) If we reject an offer for a written agreement (h) A request for a written agreement will be denied if: approved by FCIC, you may seek arbitration or (1) FCIC determines the risk Is excessive; mediation f our decision to reject the offer In (2) Your APH history demonstrates you have not accordance with section 20; produced at least 50 percent of the transitional (I) Any information that Is submitted by ·you after the yield for the crop. type. and practice obtained applicable deadrtnes in sections 18(a) and (e) will not from a county with similar agronomic conditions be considered, unless such lnformatio is specifically and risk exposure; . requested In acCordance with section 1'8(f)(3); (3) There is not adequate information available to (m) If the written agreement or the policy is canceled for establish an actuarially sound premium rate and any· reason, or the period for which an existing insurance coverage for the crop .and acreage; written agreement Is in effect ends, a request for (4) The crop was not previously grown in the county renewal of the written agreement must contain all the or there is no evidence of a market for the crop information required by this secUon and· be submitted based on sales receipts, contemporaneous in accordance with section 18(a), unless otherwise feeding records or. a contract for the crop specified by FCIC; (applicable only. for counties without actuarial (n) If a request for a written agreement is not approved documents); or by FCIC · a request f r a. written agreement for any (5) Agricultural experts or. organic agricultural subsequent crop year that fails to address"the stated experts determin ·ttte crop is not adapted to the basis for the · denial will not be accepted (If the county; request for a wrltten agreement contains the same (i) A written agreement will be denied unless: information that was previously rejected or denied, (1) FCIC approv the written agreement; you will not have :any right to arbitrate. mediate or (2) The original written. agr ement is·signed by you appeal the non-acceptance of yOur request); and and delivered· to. us. or postmarked. not later (o) If you disagree With any· determination made by than the expiration date for you to accept the FCIC under section 18, you may obtain offer; administrative review in accordance with 7 CFR part (3) We accept the written agreement offer; and 400, subpart J or appeal in accordance with 7 CFR (4) The crop meets the minimum appraisal amount part 11. unless· you have failed to comply with the specffied in section 18(e)(2)(i)(A)(1). if provisions contained in section 18(g) or section applicable; 18(i)(2) or (4). 0) Multi-year written agreements may be canceled and 19. Crops as Payment. requests for renewal may be rejected if the severity You must not abandon any crop to us. We will not or frequency of your loss experience under the accept any crop as compensation for payments due us. written agreement is significanUy worse than 20. Mediation, Arbitration, Appeal, Reconsideration, and expected based on the information provided by you Administrative and Judicial Review. or used to establish your premium rate and the loss (a) If you and we fail to agree on any determination experience of other crops with similar risks in the made by us except those specified in section 20(d) area; or (e). the disagreement may be resolved through (k) With respect to your and our ability to reject an offer mediation in accordance with section 20(g). If for a written agreement: resolution cannot be reached through mediation, or (1) When a sfngle Request for Actuarial Change you and we do not agree to mediation, the form is submitted, regardless of how many disagreement must be resolved through arbitration in requests for changes are contained on the form. (31 of40) accordance with the rules of the American Arbitration procedure, an interpretation must be obtained Association (AAA), except as provided in sections from FCIC in JCCOrdance with 7 CFR part 400, 20(c) and (f), and unless rules are established by subpart X or such other procedures as FCIC for this purpose. Any mediator or arbitrator established by FCIC. Such interpretation will be with a familial, financial or other business binding. relationship to you or us. or our agent or loss (c) Any decision rendered In arbitration is binding on adjuster, is disqualified from hearing the dispute. you and us unless judicial review is sought in (1) All disputes involving detennlnations made by accordance with section 20(b)(3). Notwithstanding us, except those specified in section 20(d) or (e), any provision in the rules of the AAA, you and we are subject to mediatlon or arbitration. However, · have the right to judicial review of any decision if the dispute In any way Involves a policy or rendered in arbitration. procedure interpretation. regarding whether a (d) With respect to good farming practices: specific policy provision or procedure Is (1) We wHI make decisions regarding what applicable to the situation, how it is applicable, · constitutes a good fanning practice and or the meaning of any policy provision or detenninatlons of assigned ·production for procedure, either you or we must obtain an uninsured causes for your failure to use good interpretation from FCIC in accordance with 7 fanning practices. CFR part 400, subpart X or such other ·(i) If you disagree with our decision of what procedures as established by FCIC. constitutes a good fanning practice, you ) Any interpretation by FCIC will be binding must request a determination from FCIC of in any mediation or arbitration. what constitutes a good fanning practice (ii) Failure to obtain any required interpretation before filing any·suit against FCIC. from FCIC will result In the nullification of (ii) If you disagree with our detennlnation of any agreement or award. the amount of assigned production, you (iii) An Interpretation by FCIC of a policy must use the arbitration or mediation provision is considered a determination process contained Inthis section. that is a matter of general applicability. (iH) You may not sue us for our decisions (iv) An interpretation by FCIC of a procedure regarding whether good fanning practices may be appealed to the National Appeals · were used by you. · Division in accordance with 7 CFR part 11. (2) FCJC will make determinations regarding what (2) Unless the dispute Is resolved through constitutes a good farming practice. If you do mediation, the arbitrator must provide to you and not agree with any determination made by FCIC: us a written statement describing the issues in (i) You may request reconsideration by FCIC dispute, the factual findings. the determinations ·of this detennlnation in accordance with and the amount and basis for any award and the recensfderatfon process established for breakdown by claim for any award. The this purpose and published at 7 CFR part statement must also include any amounts 400, subpart J; or awarded for interest. Failure of the arbitrator to (ii) You may file.suit against FCIC. provide such written .statement will result in the (A)· You. are not required to request nullification of all detennlnations of the arbitrator. reconsideration from FCIC before filing All agreements reached through settlement, suit. · including those resulting from mediation, must (B) Any suit must be brought against FCIC be in writing and · contain at a minimum a in the United States district court for statement of the . issues fn dispute and the ·· the district in which the insured amount of the setuement. ·acreage is located. (b) Regardless of whether mediation is elected: (C) Suit must be filed against FCIC not (1) The initiation of arbitration proceedings must later than one year after the date: occur within one year of the date we denied your (1) Of the determination; or claim or rendered the determination with which (2) Reconsideration is completed, if you disagree, whichever is later; · reconsideration was requested (2) If you fall to inJtiate arbitration in accordance with under section 20(d)(2)(i). section 20(b)(1) and complete the process, you (e) Except as provided in sections 18(n) or (o), or 20(d) wfll not be able to resolve the dispute through or (k), if you disagree with any other detenninatlon judicial review; made by FCIC or any claim where FCIC is directly (3) If arbitration has been initiated in accordance involved In the claims process· or directs us In the with section 20(b)(1) and completed, and judicial resolution of the claim, you may obtain an review is sought, suit must be filed not later than administrative review in accordanee with 7 CFR part one year after the date the arbitration decision 400, subpart J (administrative review) or appeal in was rendered; and accordance with 7 CFR part 11 (appeal). (4) In any suit, if the dispute in any way involves a (1) If you elect to bring suit after completion of any policy or procedure Interpretation, regarding appear, such suit must be filed against FCIC not whether a specific policy provision or procedure tater than one year after the date of the decision is applicable to the situation, how it Is applicable, rendered in such appeal. or the meaning of any pollcy provision or (2) Such suit must be brought in the United States

(32 of40) district court for the district in which the insured insured crop as often as reasonably required during acreage is located. the record retention period. (3) Under no circumstances can you recover any (b) You must retain, and provide upon our request, or attorney fees or other expenses, or any punitive, the request of any employee of USDA authorized to compensatory or any other damages from FCIC. investigate or review any matter relating to crop (f) In any mediation, arbitration, appeal, administrative insurance: review, reconsideration or judicial process, the terms (1) Complete records of the planting, replanting, of this policy, the Act, and the regulations published Inputs, production, harvesting, and disposition of at 7 CFR chapter IV, including the provisions of 7 the Insured crop on each unit for three years CFR part 400, subpart P, are binding. Conflicts after the end of the crop year (This requirement between this polfcy and any state or local laws will also applies to all such records for acreage that be resolved In accordance with section 31. If there Is not Insured); are conflicts between any rules of the AAA and the (2) All records used to establish the amount of provisions of your policy, the provisions of your production you certified on your production policy will control. reports used to compute your approved yield for (g) To resolve any dispute through mediation, you and three years after the calendar date for the end of · we must both: · the Insurance period for the crop year for which (1) Agree to mediate the dispute; you initially certified such records, unless such (2) ·Agree on a mediator; and records have already been provided to us {M, (3) • Be present, or have a designated representative if you are a new Insured and you certify 2007 who has authority to settle the case present, at through 2010 crop year production records in . the· mediation. 2011 to detennlne your approved yield for the · (h) ·Except as provided In section 20(i), no award or 2011 crop year, you must retain all records from setUement In mediation, arbitration, appeal, the 2007 through 2010 crop years through the administrative review or reconsideration process or 2014 crop year.· If you subsequenUy certify judicial ·review can exceed the amount of liability records of the 2011 crop year in 2012 to established or which should have been established determine your approved yield for the 2012 crop under the polfcy, except for interest awarded in year, you must retain the 2011 crop year records aecordance with section 26. through the 2015 crop year and so forth for each (i) In a judicial review only, you may recover attorneys subsequent year of production records certified); fees or other expenses, or any punitive. and compensatory or any other damages from us only if (3) While you are not required to maintain records you obtain a determination from FCIC that we, our beyond the record retention period specified in agent or loss adjuster failed to comply with the terms section 21(b)(2), at any time, ifwe·or FCIC have of this policy or procedures issued by FCIC and such evidence that you, or anyone assisting you, failure resulted in you receiving a payment in an knowingly misreported any information related to amount that is less than the amount to which you any yield you have certified, we or FCIC will were entitled. Requests for such a determin tion replace all yields fn your APH database should be addressed to the following: determined to be incorrect with the lesser of an USDAIRMA/Deputy Administrator of Compliance/ assigned yield determined in accordance with Stop 0806, 1400 Independence Avenue,· SW., section 3 or the yield determined to be correct: Washington, D.C. 20250.0806. 0) If an overpayment has been made to you, · · 0> If FCIC elects to participate in the adjustment of your you will be· required to repay the overpaid claim, or modifies, revises or corrects your claim, amount; and prior to payment, you may not bring an arbitration, (li) Replacement of yields in accordance with mediation or litigation action against us. You must section 21(b)(3) does not exempt you from request administrative review or appeal in other sanctions applicable under the terms accordance with section 20(e). of the policy or any applicabfe law. (k) Any determination made by FCIC that is a matter of (c) We, or any employee of USDA authorized to general applfcabflity is not subject to administrative Investigate or review any matter relating to crop review under 7 CFR part 400, subpart J or appeal insurance, may extend the record retention period under 7 CFR part 11. If you want to seek judicial beyond three years by notifying you of such review of any FCIC determination that is a matter of extension in writing. general appllcabifity, you must request a (d) By signing the application for insurance authorized determination of non-appealability from the Director under the Act or by continuing insurance for which of the National Appeals Division in accordance with you have previously applied, you authorize us or 7 CFR 11.6 before seeking judicial review. USDA, or any person acting for us or USDA 21. Access to Insured Crop and Records, and Record authorized to investigate or review any matter Retention. relating to crop insurance, to obtain records relating (a) We, and any emproyee of USDA authorized to to the planting, replanting, Inputs, production, investigate or review any matter relating to crop harvesting, and disposition of the insured aop from insurance, have the right to examine the insured any person who may have custody of such records, crop and aU records related to the insured crop and including but not limited to, FSA offices. banks, any mediation, arbitration or litigation invoMng the warehouses, gins. cooperatives, marketing

(33 of40) associations, and accountants. You must assist in 0) The same insurance provider and the obtaining all records we or any employee of USDA insurance provider agrees otherwise; or authorized to investigate or review any matter (ii) Different insurance providers and both relating to crop insurance request from third parties. insurance providers agree otherwise. (e) Failure to provide access to the insured crop or the (b) Other Insurance Against Fire - If you have other farm, authorize access to the records maintained by insurance, whether valid or not, against damage to third parties or assist in obtaining such records will the insured crop by fire during the ·insurance period, result in a determination that no Indemnity is due for and you have not excluded coverage for fire from the crop year fn which such failure occurred. this policy, we will be liable for loss due to fire (f) Failure to maintain or provide records will result in: caused by a naturally occurring event only for the (1) The imposition of an assigned yield in smaller of: accordance with section 3(f)(1) and 7 CFR part (1) The amount of indemnity detennined pursuant to 400, subpart G for those crop years for which this poJJcy without regard to such other you do not have the required production records insurance; or to support a certified yield; (2) The amount by which the loss from fire is (2) A determination that no indemnity is due if you determined to exceed the indemnity paid or fail to provide records necessary to determine payable under such other insurance. your loss; (c) For the purpose of section 22(b), the amount of foss (3) Combination of the optional units into the from fire will be the difference between the total applicable basic unit; value of the insured crop before the fire and the total (4) Assignment of production to the units by us if value of the insured crop after the fire. This amount you fail to maintain separate records: will· be· determined In accordance with the provisions (I) For your basic units; or in section 35. .(H) For any uninsurable acreage; and 23. · Conformity to Food Security Act. (5) The imposition of consequences specified in Although ·your violation of a number of federal statutes, section 6(g), as applicable. including the Act, may cause cancellation, termination, or (g) If the imposition of an assigned yield under section voidance of your insurance contract, you should be 21(f)(1) would affect an indemnity, prevented specificaUy aware that your policy will be canceled if you planting payment or replant payment that was paid in are determined to be ineUgible to receive benefits under a prior crop year, such claim will be adjusted and the Act due to violation of the controlled substance you will be required to repay any overpaid amounts. provisions (title XVII) of the Food Security Act of 1985 22. other Insurance. (Pub. L. 99-198) and the regulations promulgated under (a) Other Like Insurance - Nothing in this section the Act by USDA. Your insurance policy will be canceled prevents you from obtaining other insurance not if you are determined, by the appropriate Agency, to be authorized under the Act. However, unless in violation of these provisions. We will recover any and specifically required by policy provisions, you must all monies paid to you or received by you during your not obtain any other crop insurance authorized under period of Ineligibility, and your premium will be refunded, the Act on your share of the Insured crop. If you less an amount for expenses and handling equal to 20 cannot dsmonstrate that yo!J did not intend to have percent of the premium paid or to be paid by you. more than one policy in effect, you may be subject to 24. Amounts Due Us. the ponsequences authorized under this policy, the (a) Interest will accrue at the rate of 1.25 percent simple Act, or any other applicable statute. If you can Interest per calendar month. or any portion thereof, demonstrate that you did not Intend to have more on any unpaid amount owed to us or on any unpaid than one policy in effect (For example, an application administrative fees owed to FCIC. For the purpose to transfer your policy or written notification to an of premium amounts ·owed to us or administrative insurance provider that states you want to purchase, fees owed to FCIC, interest Will start to accrue on the or transfer, insurance and you want any other first day of the month following the premium billing polldes for the crop canceled would demonstrate date specified in the Special Provisions. We wiD you did not intend to have duplicate policies), and: collect any unpaid amounts owed to us and any (1) One is an additional coverage policy and the interest owed thereon and, prior to the termination other is a Catastrophic Risk Protection policy: date, we will collect any administrative fees and (i) The additional coverage policy will apply if interest owed thereon to FCIC. After the termination both policies are with the same Insurance date, FCIC will collect any unpaid administrative fees provider or, if not, both insurance providers and any interest owed thereon for any catastrophic agree; or risk protection polfcy and we will collect any unpaid (ii) The policy with the earliest date of administrative fees and any interest owed thereon application will be in force if both insurance for additional coverage polldes providers do not agree: or (b) For the purpose of any other amounts due us, such (2) Both are additional coverage policies or both are as repayment of indemnities found not to have been Catastrophic Risk Protection policies, the policy earned, interest will start to accrue on the date that with the earliest date of applfcation will be in notice is issued to you for the collection of the force and the other policy will be void, unless unearned amount. Amounts found due under this both policies are with: paragraph will not be charged interest if payment is made within 30 days of issuance of the notice by us.

(34 of40) The amount will be considered delinquent if not pafd (1) A civil fine for each violation in an amount not to within 30 days of the date the notice is issued by us. exceed the greater of: (c) All amounts paid wifl be applied first to expenses of (i) The amount of the pecuniary gain obtained collection (see subsection (d) of this section) if any. as a result of the false or inaccurate second to the reduction of accrued interest. and then information provided or the noncompliance to the reduction of the principal balance. with a requirement of FCIC; or (d) If we determine that H Is necessary to contract with a 01) $10,000; and collection agency or to employ an aHomey to assist (2) A disqualification for a period of up to 5 years in collection. you agree to pay all of the expenses of from receiving any monetary or non-monetary collection. benefit provided under each of the following: (e)· The portion of the amounts owed by you for a policy (I) Any crop insurance polfcy offered under authorized under the Act that are owed to FCIC may the Act; be collected In part through administrative offset (II) The Farm Security and Rural Investment from payments you receive from United States Act of 2002 (7 U.S.C. 7333 et seq.); government agencies In accordance with 31 U.S.C. (llf) The Agricultural Ad of 1949 (7 U.S.C. chapter 37. Such amounts include all administrative 1421 .); fees. and the share of the overpaid indemnities and (iv) The Commodity CredH Corporation Charter premiums retained by FCIC plus any interest owed Ad (15 U.S.C. 714 .); thereon. (v) The Agricultural Adjustment Act of 1938 (7 25. (Reserved] 26. Interest Umltatfons. u.s.c. 1281 ftl.Hg.); (vi) Title XII of the Food Security Act of 1985 We wifl pay simple interest computed on the net indemnity ultimately found to be due by us or by a final (16 u.s.c. 3801 §!.Bg.); judgment of a court of competent jurisdiction. from and (vii) The ConsoUdated Farm and Rural including the 61st day after the date you sign. date. and Development Act (7 U.S.C. 1921 m...ug.); and submit to us the properly completed claim on our form. (viii) Any federal law that provides assistance to Interest will be paid only if the reason for our failure to timely pay is NOT due to your failure to provide a producer of an agricultural commodity infonnation or other material necessary for the affected by a crop loss or a decline in the computation or payment of the indemnity. The interest prices of agricultural commodities. rate wifl be that established by the Secretary of the 28. Transfer of Coverage and Right to Indemnity. Treasury under section 12 of the Contract Disputes Ad If you transfer any part of your share during the crop of 1978 (41 U.S.C. 611) and published in the Federal year. you may transfer your coverage rights. if the Reaister semiannually on or about January 1 and July 1 transferee is eligible for crop insurance. We will not be of each year. and may vary with each publication. liable for any more than the liablnty determined in 27. Concealment, Misrepresentation or Fraud. accordance with your policy that existed before the (a) If you have falsely or fraudulently concealed the fact transfer occurred. The transfer of coverage rights must that you are ineligible to receive benefits under the be on our form and will not be effective untal approved by Ad or if you or anyone assisting you has us in writing. Both you and the transferee are jointly and intentionally concealed or misrepresented any severally liable for the payment of the premium and material fad relating to this policy: administrative fees. The transferee has all rights and (1) This policy will be voided; and responsibilities under this · policy consistent with the (2) You may be subject to remedial sanctions in transferee's Interest. accordance with 7 CFR part 400. subpart R. 29. Assignment of Indemnity. · (b) Even though the policy is void. you will still be (a) You may assign your right to an indemnity for the crop year only to creditors or other persons to whom required to pay 20 percent of the premium that you you have a financial debt or other pecuniary would otherwise be required to pay to offset costs incurred by us in the service of this policy. If obligation. You may be required to provide proof of previously paid, the balance of the premium will be the debt or other pecuniary obligation before we wm retumed. accept the assignment of Indemnity. (c) Voidance of this policy will result in you having to (b) All assignments must be on our form and must be provided to us. Each assignment form may contain reimburse all indemnHies paid for the crop year In which the voidance was effective. more than one creditor or other person to whom you (d) Voidance will be effective on the first day of the have a financial debt or other pecuniary obligation. insurance period for the crop year In which the act (c) Unless you have provided us wHh a properly occurred and will not affect the policy for subsequent executed assignment of lndemnlty. we will not make any payment to a lienholder or other person to w om crop years unless a violation of this section also you have a financial debt or other pecumary occurred in such crop years. obligation even if you may have a lien or other (e) If you willfully and intentionally provide false or assignment recorded elsewhere. Under no Inaccurate information to us or FCIC or you fail to circumstances will we be liable: comply with a requirement of FCIC. in accordance (1) To any lienholder or other person to whom you with 7 CFR part 400, subpart R. FCIC may impose have a financial debt or other pecunaary on you: obligation where you have failed to include such

(35 of40) lienholder or person on a properly executed (A) Revenue protection and revenue assignment of indemnity provided to us; or protection is provided unless limited by (2) To pay to all lienholders or other persons to the Special Provisions; or whom you have a financial debt or other (B) Yield protection only if whole-farm pecuniary obligation any amount greater than units are allowed by the Special the total amount of indemnity owed under the Provisions; policy. (2) For crops for which revenue protection is not (d) If we have received the properly executed available, enterprise units or whole-farm units assignment of indemnity form: are available only if allowed by the Special (1) Only one payment will be issued jofnUy in the Provisions; names of all assignees and you; and (3) You must make such election on or before the (2) Any assignee will have the right to submit all earliest sales closing date for the Insured crops loss notices and forms as required by the policy. in the unit and report such unit structure on your (e) If you have suffered a loss from an Insurable cause acreage report: and fail to file a claim for indemnity within the period (i) For counties in which the actuarial specified in section 14(e). the assignee may submit documents specify ·a fall or winter sales the claim for indemnity not later than 30 days after closing date and a spring sales closing the period for filing a claim has expired. We will date, you may change your unit erection on honor the terms of the assignment only if we can or before the· spring safes closing date accurately determine the amount of the claim. (earliest spring sales dosing date for crops However. no action will lie against us for faUure to do in the urift if eJecting ·a· whole-farm unit) if so. you do not have any insured fall planted 30. (Reserved] acreage of the insured crop; 31. Applicability of State and Local Statutes. (ii) .Your unit se!ection will remain in effect If the provisions of this policy conmct with statutes of the from year to year unless·you· notify us in State or locality in which this policy is issued, the policy writing by the earliest sales closing date for provisions will prevail. State and local laws and the crop year for which you wish to change regulations in conflict with federal statutes. this policy. this election; and and the applicable regulations do not apply to this policy. (iii) These units may not be further divided 32. Descriptive Headings. except as specified herein; The descriptive headings of the various policy provisions (4) For an enterprise unit are formulated for convenience only and are not Intended (f) To qualify, an enterprise unit must to affect the construction or meaning of any of the policy contain all of the insurable acreage of provisions. the same Insured crop in: 33. Notices. (A) Two or more sections, if sections are (a) All notices required to be given by you must be in the basis for optional units where the writing and received by your crop insurance agent insured acreage is located; within the designated time unless otherwise provided (B) Two or more section equivalents by the notice requirement. Notices required to be determined in accordance with FCIC given Immediately· may be by telephone or in person issued · procedures. if section and confirmed in writing. Time of the notice will be equivalents are the basis for optional determined by the time of our receipt of the written units where ·the insured acreage is notice. If the date by which you are required to located or are applicable to the insured submit a report or notice falls on Saturday, Sunday, acreage; or a Federal holiday. or if your agenfs office Is. for ·(C) Two or more FSA farm serial numbers. any reason. not open for business on the date you if FSA farm serial numbers are the are required to submit such notice or report. such basis for optional units where the notice or report must be submitted on the next insured acreage is located; business day. (D) Any combination of two or more (b) All notices and communications required to be sent sections, section equivalents. or FSA by us to you will be mailed to the address contained farm serial numbers, if more than one in your records located with your crop Insurance of these are the basis for optional units agent. Notice sent to such address will be where the acreage is located or are conclusively presumed to have been received by applicable to the Insured acreage (.§&, you. You should advise us immediately of any if a portion of your acreage is located change of address. where sections are the basis for 34. Units. optional units and another portion of (a) You may elect an enterprise unit or whole-farm unit your acreage is located where FSA in accordance with the following: farm serial numbers are the basis for (1) For crops for which revenue protection Is optional units, you may qualify for an available. you may elect: enterprise unit based on a combination (I) An enterprise unit if you elected revenue of these two parcels); protection or yield protection: or (E) One section. section equivalent, or (ii) A whole-farm unit If you elected: FSA farm serial number that contains

(36 of40} at least 660 planted acres of the (A) On or before the acreage reporting insured crop. Ycu may qualify under date, your unit division will be based this paragraph based only on the type on the basic or optional units, of parcel that is utilized to estabUsh whichever you report on ycur acreage cpticnal units where ycur insured report and qualify for; or acreage is located (!&. if having two (8) At any time after the acreage reporting cr mere sections is the basis for date, we will assign the basic unit optional units where the insured structure; and acreage is located, you may quartfy for (5) For a whole-farm unit: an enterprise unit if you have at least (i) To qualify: 660 planted acres of the insured crop (A) All crops In the whole-farm unit must in one section); or be insured: (F) Two or more units established by (1) Under revenue protection Qf you written agreement; and elected the harvest price exclusion (II) At least two of the sections. section for any crop, ycu must elect it for equivalents, FSA farm serial numbers, or all crops in the whole-farm unit), units established by written agreement in unless the Special Provisions section 34(a)(4)(i)(A), (B), (C), (D), or (F) allow whole-farm units for another must each have planted acreage that plan of insurance and you insure constitutes at least the lesser of 20 acres · all· crops in the whole-fann unit under. such plan (!&. if you plant or 20 ·percent of the insured crop acreage in the enterprise unit. If there is planted com and soybeans for. which ycu h ve elected revenue protection acreage In more than two sections, section and you plant-canola for which you equivalents; FSA farm. serial numbers or have elected yield protection, the units established· by written agreement in com, .soybeans and canota would section 34(a)(4)(i)(A), (B), (C), (D), or (F), b ssfgned the unit structure fn these can ·be aggregated to form at least accordance with section two parcels to meet this requirement For 34(a)(5)(v)); example, if sections are the basis for (2) With us (!&. if you insure your optional units where the insured acreage is located and you have 80 planted aaes in com and canola with us and your section one, 10 planted acres in section soybeans with a cflfferent insurance provider, the com, two, and 10 planted acres in section three, soybeans and canola would be you may aggregate sections two and three assigned the unit structure in to meet this requirement accordance with section (ifi) The crop must be insured under revenue 34(a)(5)(v)); and protection or yield protection, unless (3) At the same coverage level (!&. if otherwise specified in the Special you elect to insure ycur com and Provisions; canola at the 65 percent coveraae (iv) If ycu want to ·change your unit structure level and your soybeans at the 75 from enterprise units to basic or optional percent coverage level, the com, units in any subsequent crop year, you soybeans and canola ··would be must maintain separate records of acreage· assigned the · unit ·structure in and production: accordance with section (A) For each basic uni" to be eligible to 34(a)(5)(v)); use records to establish the production (B) A whole-farm unit must contain all of guarantee for the basic unit; or the insurable acreage of at least two (B) For optional units, to qualify for crops; and optional units and to be eligible to use (C) At least two of the insured crops must such records to establish the each have planted acreage that production guarantee for the optional constitutes 10 percent or more of the units; total planted acreage liability of all (v) If ycu do not comply with the productfon insured crops in the whole-farm unit reporting provisions in section 3(f) for the (For crops for which revenue enterprise unit, your yield for the enterprise protection is available, liability will be unit will be determined in accordance with based on the applicable projected section 3(f)(1); price only for the purpose of section (vi) You must separately designate on the 34(a)(5)(i)(C)); acreage report each section or other basis (ii) You will be required to pay separate in section 34(a)(4)(i) you used to quanfy for administrative fees for each crop included an enterprise unit; and in the whole-farm unit; (vii) If we discover ycu do not qualify for an (iii) You must separately designate on the enterprise unit and such discovery is acreage report each basic unit for each made: crop in the whole-fann unit;

(37 of40) (iv) If you want to change your unit structure (4) You have records of marketed or stored from a who!e-farm unit to basic or optional production from each optfonal unit maintained in units in any subsequent aop year. you such a manner that permits us to verify the must maintain separate records of acreage production from each optional unit. or the and production: production from each optional unit is kept (A) For each baste uni to be eligible to separate until !oss adjustment is completed by use such records to establish the us. production guarantee for the basic (c) Each optional unit must meet one or more of the units; or following, unless otherwise specified In the Crop (8) For optional units, to qualify for Provisions or flowed by written agreement: optional units and to be eligible to use (1) Optional units may be established if each such records to establish the optional unit Is rocated In a separate section production guarantee for the optional where the boundaries are readily discernible: units; and (i) In the absence of sections, we may (v) If we discover you do not qualify for a consider parcels of land legally fdentffied whole-farm unit for at least one Insured by other methods of measure, such as crop because, even though you elected Spanish· grants, · provided the boundaries revenue protection for all your crops: are readily discemibfe, if such parcels can (A) You do not meet all of the other be considered as the equivalent of sections requirements in section 34(a)(5)(i), and for unit purposes in accordance with FCIC such discovery is made: Issued procedures; or (1) On or before the acreage reporting (ii) In the absence of sections as described in date, your unit division for all crops section 34(c)(1) or other methods of for which you elected a whole- measure used to establish section farm unit will be based on basic or equivalents as described in section optional units, whichever you 34(c)(1)(i); optional units may be report on your acreage report and established if each optional unit is located quaflfy for; or in a separate FSA farm serial number in (2) At any time after the acreage accordance with FCtc·issued ·procedure; reporting date, we will assign the (2) In addition to, or instead of, establishing optional basic unit structure for all crops for units by section. section equivalent or FSA farm which you elected a whole-farm serial number, optional units may be based on unit; or irrigated and non-Irrigated acreage. To qualify (B) It was not possible to establish a as separate irrigated and non-irrigated optional projected price for at least one of your units, · the non-irrigated acreage· may not crops, your unit division will be based continue into the irrigated acreage in·the same on the unit structure you report on your rows or planting pattern. ·The irrigated acreage acreage report and qualify for only for may not extend beyond the point at which the the crop for which a projected price irrigation system can · dellvet the quantity of could not b& established unless the water needed to produce ·the yield on which the remaining crop In the unit would no guarantee is based,·excepfthe comers of a field longer qualify for a whole-farm unit, in in which a center-pivot irrigation ·system is used such case your unit division for the may be considered as irrigated ·acreage if the remaining crops will be based on the comers of a field in which a center-pivot unit structure you report on your irrigation system is used do not. qualify as a acreage report and qualify for. separate non-irrigated optional unil In this (b) Unless fimited by the Crop Provisions or Special case, ·production from both practices will be Provisions, a basic unit as defined in section 1 of the used to determine your approved yield; and Basic Provisions may be divided into optional units if, (3) In addition to, or Instead of, establishing optional for each optional unit, you meet the following: units by section, section equivalent or FSA farm (1) You must plant the crop in a manner that results serial number, or irrigated and non-Irrigated in a clear and discernible break in the planting acreage, separate optional units may be pattern at the boundaries of each optional unit; established for acreage of the insured crop (2) All optional units you select for the crop year are grown and insured under an organic farming identified on the acreage report for that crop practice. Certified organic, transitional and year (Units will be determined when the acreage buffer zone acreages do not individually qualify is reported but may be adjusted or combined to as separate units. (See section 37 for additional reflect the actual unit structure when adjusting a provisions regarding acreage insured under an foss. No further unit division may be made after organic farming practice). the acreage reporting date for any reason); (d) Optional units are not availab!e for crops insured (3) You have records. that are acceptable to us, for under a Catastrophic Risk Protection Endorsement. at least the previous crop year for all optional (e) If you do not comply fully with the provisions in this units that you will report in the current crop year section, we will combine all optional units that are (You may be required to produce the records for not in compUance with these provisions into the all optional units for the previous crop year); and basic unit from which they were formed. We will

(38 of40) combine the optionaJ units at any time we discover any applicable USDA program. after first considering that you have failed to comply with these provisions. the amount of any crop Insurance Indemnity. If failure to comply with these provisions fs 36. Substitution of Yields. detennined by us to be Inadvertent. and the optional (a) When you have actual yields in your production units are combined into a basic unit, that portion of history database that, due to an insurable cause of the additional premium paid for the optional units loss, are less than eo percent of the applicable that have been combined wiU be refunded to you for transitional yield you may elect, on an individual the units combined. actual yield basis, to exclude and replace one or 35. Multiple Benefits. more of any such yields within each database. (a) If you are eligible to receive an indemnity and are (b) Each election made In section 36(a) must be made also eligible to receive benefits for the same loss on or before the p uctfon reporting date for the under any other USDA program, you may receive insured crop and each such electiol'l will remain in benefits under both programs. unless specffically ffect for succeeding years unless canceled by the limited by the crop insurance contract or by law. production reporting date for the succeedfng crop (b) Any amount received for the same loss from any · year. If you cancel an election, the actual yield will USDA program, in addition to the crop Insurance be used In the database. For example. if you payment. wrll not exceed the difference between the elected to substitute yields fn your database for the crop insurance payment and the actual amount of 1998 and 2000 crop year, for any subsequent crop the foss, unless otherwise provided by law. The year.· you can elect to cancel the substitution for amount of the actual loss is the difference between either or both years. the total value of the insured crop before the Joss (c) Each excluded actual yield Will be replaced with a and the total value of the insured crop after the loss. yield equal ·to 60 percen of the applicable (1) For crops for which revenue protection Is not f:!ansHional yield for the crop year in which the yield available: is being replaced (For example, if you elect to (i) If you have an approved yield, the total exclude a 2001 crop year actual 'yield, the value of the crop before the foss is your transitional 'yield in effect for the 200 crop year In . approved yield times the highest price the county will be used. If you also elect to exclude election for the crop; and a 2002 crop year actual yield, the transitional yield in (ii) If you have an approved yield, the total effect fot the 2002 crop year in the county wm be value of the crop after the foss Is your used). The· replacement yields will be used In the production to count times the highest price same mann r as actual yields for the purpose of election for the crop; or calculating the approved yield. (iii) If you have an amount of insurance. the (d) Once you have elected to exclude an actual yield total value of the crop before the loss is the from e database. the replacement yield will remain highest amount of insurance available for in effect until such time as that crop year IS no longer the crop; and il1cluded in the database unless this election is (iv) If you have an. amount of insurance. the canceled in accordance section 36(b). total value of the crop after the loss is your (e) Although your· approved yield will be used to production to count times . the price determine your . amount of premium owed. the contained in the · Crop Provisions for premium rate will be increased to cover !he valuing production to. count. : additional risk associated wHh the· substitution of (2) For crops for ·which revenue protection is higher yields. · · ·. · available and: 37. Organic Farming Practices. (i) You elect yield protection: (a) In accordance With se9flon 8(b)(2), insurance will not (A) The total value· of the crop before the be provided for any crop grown using an organic loss is your approved yield times the farming practice, unless 'the Information needed to applicable· projected price (at the 100 determine a premium rate for an ,organic farming percent price level) for the crop; and practice is specified on the actuarial table. or (B) The total value of the crop after the insurance is allowed by a written agreement. loss is your production to count times (b) If insurance is provided for an organic farming the applicable projected price (at the practice as specified ln section 37(a), only the 100 percent price level) for the crop; or following acreage will be insured under such (li) You elect revenue protection: practice: (A) The total value of the crop before the (1) Certified organic acreage; loss is your approved yield times the (2) Transitional acreage being converted to certified higher of the applicable projected price organic acreage In accordance with an organic or harvest price for the crop (If you plan; and have elected the harvest price (3) Buffer zone acreage. exclusion, the applicable projected (c) On the date you report your acreage. you must have: price for the crop will be used); and (1) For certified organic acreage. a written (8) The total value of the aop after the certification in effect from a certifying agent loss is your production to count times indicating the name of the entity certified, the harvest price for the crop. effective date of certification, certificate number, (c) FSA or another USDA agency, as applicable, will types of commodities certified. and name and detennlne and pay the additional amount due you for address of the certifying agent (A ,certificate

(39 of40) issued to a tenant may be used to qualify a landlord or other similar arrangement); (2) For transitional acreage, a certificate as described in section 37(c)(1), or written documentation from a certifying agent indicating an organic plan is in effect for the acreage; and (3) Records from the certifying agent showing the specific location of each field of certified organic, transitional, buffer zone, and acreage not maintained under organic management. (d) If you claim a foss on any acreage Insured under an organic farming practice, you must provide us with copies of the records required In section 37(c). (e) If any acreage qualifies as certified organic or transitional acreage on the date you report such acreage, and such certifteatlon is subsequently revoked by the certifying agent, or the certifying agent no longer considers the acreage as transltfonal acreage for the remainder of the crop year, that acreage. will remain Insured under the reported practice for which it qualified at the time the acreage was reported. Any loss due to failure to comply with organic standards will be considered an uninsured cause of loss. (f) Contamination by application or drift of prohibited substances onto land on which crops are grown using organic fanning practfces will not be an insured peril on any certified organic, transitional or buffer zone acreage (g) In addition to the provisions contained in section 17(f), prevented planting coverage will not be provided for any acreage based on an organic fanning practice in· excess of the number of acres that will be grown under an organic farming practice and shown as such fn the records required in section 37(c). (h) In lieu of the provisions contained in section 17(f)(1) that specify prevented planting acreage within a field that contains planted acreage will be considered to be acreage of the same practice that is planted in the field, prevented planting acreage will be considered as ·organic practice acreage if it is identified as certified organic, transitional, or buffer zone acreage ill the organic plan.

(40of40) . :. EXHIBIT "B" .·· ' ..' . ( ·_. FILED 2014-DCL-03489 2/5/2015 2:35:00 PM Eric Garza Cameron County District Clerk By Brenda Ramirez Deputy Clerk AFFIDAVIT OF BRUCE GAMBLE 4038683

THE STATE OF TEXAS

COUNTY OF CAMERON

BEFORE ME, the undersigned authority, on this day personally appeared

BRUCE GAMBLE, as Partner for BRUCE GAMBLE FARMS, known to me to be the

person whose signature appears below, who, after being duly sworn, deposed and

stated that the following statement is within his personal knowledge, that he is

competent to make this Affidavit, and that all statements herein are true and correct.

"My name is BRUCE GAMBLE, and I reside in La Feria, Cameron County,

Texas.. I am over the age of twenty-one (21) years of age ·and competent to make this

affidavit because I have personal knowledge of all facts set forth in this affidavit. The facts

stated herein are true and correct.

1 purchased crop insurance for my crops for Crop Year 2013 from Hudson Insurance

Company. In purchasing said insurance I had an oral agreement with Casey Clipson with

Crop Guard, Inc., the local agent, that I was to insure my crops from any loss that may I

may sustain within crop year 2013. The terms of my agreement with Casey Clipson were·.· . ·

performable within one year of the inception of the agreement.

FURTHER , Affiant sayeth not."

BRUCE GAMBLE

LUCINDA V ROSIGNOL My Commission Expires December 16.2018 EXHIBIT "C" . . .. : . .. . ;. .... .

AFFIDAVIT OF BRIAN JONES ::·.- :· :·.···. · · ·:.: ·· . FILED 2014-DCL-03489 2/6/2015 10:28:34 AM Eric Garza Cameron County District Clerk AFFIDAVIT OF BRIAN JONES By Brenda Ramirez Deputy Clerk 4049712

BEFORE ME, the undersigned authority, on this day personally appeared

BRIAN JONES, as Owner of BRIAN JONES FARMS, known to me to be the person

whose signature appears below, who, after being duly sworn, deposed and stated

that the following statement is within his personal knowledge, that he is competent to

make this Affidavit, and that all statements herein are true and correct.

"My name is BRIAN JONES, and I reside in Edcouch, Hidalgo County, Texas.

Iam over the age of twenty-one (21) years of age and competent to make this affidavit

because I have personal knowledge of all facts set forth in this affidavit. The facts

I purchased crop insurance for my crops for Crop Year 2013 from Hudson Insurance

Company. In purchasing said insurance I had an oral agreement with Casey ·Clipson with

Crop Guard, lnc., the local agent, that I was to insure my crops -from any loss that may I

may sustain within crop year 2013. The terms of my agreement with Casey Clipson were

performable within one year of the inception of the agreement.

FURTHER, Affiant sayeth not."

tate of Texas ,.,--;-· -. / '.. . LUCINDA V RDSIGNOL ', · -. l My Commission Expires ,- :?:') December 16, 201B . EXHIBIT "D"

AFFIDAVIT OF JIM GAMBLE FILED 2014-DCL-03489 2/5/2015 2:35:00 PM Eric Garza Cameron County District Clerk AFFIDAVIT OF JIM GAMBLE By Brenda Ramirez Deputy Clerk 4038683

BEFORE ME, the undersigned authority, on this day personally appeared JIM

GAMBLE, as Partner for JIM GAMBLE FARMS. known to me to be the person whose

signature· appears below. Who, after being duly sworn, deposed and stated that the

following statement is within his personal knowledge, that he is competent to make this

Affidavit, and that all statements herein are true and correct. ·

"My name is JIM GAMBLE. and I reside in La Feria. Cameron County, Texas. Iam

over the age of twenty-one (21) years of age and competent to make this affidavit because ·

I have personal knowledge of all facts set forth in this affidavit. The facts stated herein .

are true and correct.

I purchased crop insurance for my crops for Crop Year2013 from Hudson Insurance.

Company. In purchasing said insurance I had an oral agreement with Casey Clipson with

Crop Guard, Inc. the local agent. that I was to insure my crops from any loss that may I

may sustain within crop year 2013. The terms of my agreement with Casey Clipson were

performable within one year of the inception of the agreement.