1437.9—Causes of loss.

(a) To be eligible for benefits under this part, an eligible cause of loss must result in:
(1) A loss of production greater than 50 percent of the approved yield in accordance with subpart B of this part;
(2) Prevented planting of greater than 35 percent of the intended crop acreage according to subpart C of this part;
(3) A value loss of greater than 50 percent of the pre-disaster value according to subpart D of this part, or
(4) An AUD loss of greater than 50 percent of the expected AUD according to subpart E of this part.
(b) The quantity of the crop or commodity will not be reduced for any quality consideration unless a zero value is established.
(c) Eligible causes of loss include:
(1) Damaging weather occurring before or during harvest, including but not limited to drought, hail, excessive moisture, freeze, tornado, hurricane, excessive wind, or any combination thereof;
(2) Adverse natural occurrence before or during harvest, such as earthquake, flood, or volcanic eruption; and
(3) A related condition, including but not limited to heat, insect infestation, or disease, which occurs as a result of an adverse natural occurrence or damaging weather occurring before or during harvest that directly causes, accelerates, or exacerbates the destruction or deterioration of an eligible crop, as determined by CCC.
(d) Due to the unique requirements, such as controlled environments, necessary for successful production of some crops and commodities; not all eligible causes of loss will apply to all crops and commodities.
(e) Ineligible causes of loss include but are not limited to:
(1) Negligence or malfeasance of the producer;
(2) Failure of the producer to reseed to the same crop during the same planting period in those areas and under such circumstances where it is customary;
(3) Failure of the producer to follow good farming practices, as determined by CCC;
(4) Water contained or released by any governmental, public, or private dam or reservoir project, if an easement exists on the acreage affected for the containment or release of the water;
(5) Failure or breakdown of irrigation equipment or facilities;
(6) Except for tree crops and perennials and as provided for in § 1437.201, inadequate irrigation resources at the beginning of the crop year;
(7) A loss of inventory or yield of aquaculture (including ornamental fish), floriculture or ornamental nursery stemming from drought or any failure to provide water, soil, or growing media to such crop for any reason; or
(8) Any failure to provide a controlled environment or exercise good nursery practices when such controlled environment or practices are a condition of eligibility under this part.

Code of Federal Regulations

[71 FR 13743, Mar. 17, 2006]