§ 1508a. — Double insurance and prevented planting.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1508a]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 1508a. Double insurance and prevented planting
(a) Definitions
In this section:
(1) First crop
The term ``first crop'' means the first crop of the first
agricultural commodity planted for harvest, or prevented from being
planted, on specific acreage during a crop year and insured under
this chapter.
(2) Second crop
The term ``second crop'' means a second crop of the same
agricultural commodity as the first crop, or a crop of a different
agricultural commodity following the first crop, planted on the same
acreage as the first crop for harvest in the same crop year, except
the term does not include a replanted crop.
(3) Replanted crop
The term ``replanted crop'' means any agricultural commodity
replanted on the same acreage as the first crop for harvest in the
same crop year if the replanting is required by the terms of the
policy of insurance covering the first crop.
(b) Double insurance
(1) Options on loss to first crop
Except as provided in subsections (d) and (e) of this section,
if a first crop insured under this chapter in a crop year has a
total or partial insurable loss, the producer of the first crop may
elect one of the following options:
(A) No second crop planted
The producer may--
(i) elect to not plant a second crop on the same acreage
for harvest in the same crop year; and
(ii) collect an indemnity payment that is equal to 100
percent of the insurable loss for the first crop.
(B) Second crop planted
The producer may--
(i) plant a second crop on the same acreage for harvest
in the same crop year; and
(ii) collect an indemnity payment established by the
Corporation for the first crop, but not to exceed 35 percent
of the insurable loss for the first crop.
(2) Effect of no loss to second crop
If a producer makes an election under paragraph (1)(B) and the
producer does not suffer an insurable loss to the second crop, the
producer may collect an indemnity payment for the first crop that is
equal to--
(A) 100 percent of the insurable loss for the first crop;
less
(B) the amount previously collected under paragraph
(1)(B)(ii).
(3) Premium for first crop if second crop planted
(A) Initial premium
If a producer makes an election under paragraph (1)(B), the
producer shall be responsible for a premium for the first crop
that is commensurate with the indemnity paid under paragraph
(1)(B)(ii). The Corporation shall adjust the total premium for
the first crop to reflect the reduced indemnity.
(B) Effect of no loss to second crop
If the producer makes an election under paragraph (1)(B) and
the producer does not suffer an insurable loss to the second
crop, the producer shall be responsible for a premium for the
first crop that is equal to--
(i) the full premium owed by the producer for the first
crop; less
(ii) the amount of premium previously paid under
subparagraph (A).
(c) Prevented planting coverage
(1) Options on loss to first crop
Except as provided in subsections (d) and (e) of this section,
if a first crop insured under this chapter in a crop year is
prevented from being planted, the producer of the first crop may
elect one of the following options:
(A) No second crop planted
The producer may--
(i) elect to not plant a second crop on the same acreage
for harvest in the same crop year; and
(ii) subject to paragraph (4), collect an indemnity
payment that is equal to 100 percent of the prevented
planting guarantee for the acreage for the first crop.
(B) Second crop planted
The producer may--
(i) plant a second crop on the same acreage for harvest
in the same crop year; and
(ii) subject to paragraphs (4) and (5), collect an
indemnity payment established by the Corporation for the
first crop, but not to exceed 35 percent of the prevented
planting guarantee for the acreage for the first crop.
(2) Premium for first crop if second planted
If the producer makes an election under paragraph (1)(B), the
producer shall pay a premium for the first crop that is commensurate
with the indemnity paid under paragraph (1)(B)(ii). The Corporation
shall adjust the total premium for the first crop to reflect the
reduced indemnity.
(3) Effect on actual production history
Except in the case of double cropping described in subsection
(d) of this section, if a producer make an election under paragraph
(1)(B) for a crop year, the Corporation shall assign the producer a
recorded yield for that crop year for the first crop equal to 60
percent of the producer's actual production history for the
agricultural commodity involved, for purposes of determining the
producer's actual production history for subsequent crop years.
(4) Area conditions required for payment
The Corporation shall limit prevented planting payments for
producers to those situations in which other producers, in the area
where a first crop is prevented from being planted is located, are
also generally affected by the conditions that prevented the first
crop from being planted.
(5) Planting date
If a producer plants the second crop before the latest planting
date established by the Corporation for the first crop, the
Corporation shall not make a prevented planting payment with regard
to the first crop.
(d) Exception for established double cropping practices
A producer may receive full indemnity payments on two or more crops
planted for harvest in the same crop year and insured under this chapter
if each of the following conditions are met:
(1) There is an established practice of planting two or more
crops for harvest in the same crop year in the area, as determined
by the Corporation.
(2) An additional coverage policy or plan of insurance is
offered with respect to the agricultural commodities planted on the
same acreage for harvest in the same crop year in the area.
(3) The producer has a history of planting two or more crops for
harvest in the same crop year or the applicable acreage has
historically had two or more crops planted for harvest in the same
crop year.
(4) The second or more crops are customarily planted after the
first crop for harvest on the same acreage in the same year in the
area.
(e) Subsequent crops
Except in the case of double cropping described in subsection (d) of
this section, if a producer elects to plant a crop (other than a
replanted crop) subsequent to a second crop on the same acreage as the
first crop and second crop for harvest in the same crop year, the
producer shall not be eligible for insurance under this chapter, or
noninsured crop assistance under section 7333 of this title, for the
subsequent crop.
(Feb. 16, 1938, ch. 30, title V, Sec. 508A, as added Pub. L. 106-224,
title I, Sec. 108, June 20, 2000, 114 Stat. 368.)
Prior Provisions
A prior section 1508a, act Feb. 16, 1938, ch. 30, title V,
Sec. 508A, as added Aug. 14, 1989, Pub. L. 101-82, title VI, Sec. 604,
103 Stat. 587; amended Aug. 10, 1993, Pub. L. 103-66, title XIV,
Sec. 1403(b)(3), 107 Stat. 334, related to crop insurance yield
coverage, prior to repeal by Pub. L. 103-354, title I, Secs. 107, 120,
Oct. 13, 1994, 108 Stat. 3197, 3208, effective Oct. 13, 1994, and
applicable to provision of crop insurance beginning with 1995 crop year.
Effective Date
Section applicable beginning with the 2001 crop of an agricultural
commodity, see section 171(b)(2)(F) of Pub. L. 106-224, set out as an
Effective Date of 2000 Amendment note under section 1501 of this title.
