| (a) To be eligible for indemnification if a crop must
be destroyed under §3.606 of this chapter (relating to Crop Destruction;
Extensions), a grower must report the United States Department of
Agriculture (USDA) Farm Service Agency farm numbers, physical locations,
and row acreage on each farm that the grower will use as the base
acreage calculated in §3.607 of this chapter (relating to Eligibility
for Indemnification) to the foundation before planting each year on
a form provided by the foundation.
(b) If certified organic or transitional cotton on
the grower's base acreage is destroyed through the requirements of
this subchapter, any indemnification will be made within 30 days of
verification of actual destruction.
(c) If the commissioner determines that the foundation
is delinquent in a payment owed to a grower, the foundation will be
responsible for an additional payment to the grower of 1.5% of the
amount owed per month of delinquency.
(d) The following factors will be considered when calculating
indemnity payments for organic cotton growers whose cotton is required
to be destroyed in accordance with §3.605 of this chapter (relating
to Trigger Levels) and §3.606 of this chapter (relating to Crop
Destruction; Extensions):
(1) eligible acreage - the base acreage, in row acres
planted to certified organic or transitional cotton, determined as
provided in §3.607 of this chapter (relating to Eligibility for
Indemnification), and identified for that field as described in this
section. Organic or transitional cotton must be planted on this acreage
by the final planting date set by the USDA Risk Management Agency
in the county in which the crop is planted.
(2) yield - the yield per acre will be determined by
using the Actual Production History (APH) per row acre planted to
cotton for that farm, as determined by the USDA Risk Management Agency;
and
(3) conventional cotton price - the conventional cotton
price will be determined by the upland cotton price election for an
APH policy in the county in which the organic or transitional cotton
in question lies for the current crop year. This price for the coming
crop year is published by the USDA Risk Management Agency before December
31 of each year.
(e) When a grower is entitled to indemnification as
a result of crop destruction, the foundation will indemnify the grower
in accordance with the following formulas:
(1) If the notice is received by the grower less than
30 days after the final planting date in that county that destruction
of a crop is required, the indemnity will be: eligible acreage x yield
x (conventional cotton price + $0.39) x 50%, with no mitigation required;
or
(2) If the notice is received by the grower 30 days
or more after the final planting date in that county that destruction
of a crop is required, the indemnity will be: eligible acreage x yield
x (conventional cotton price + $0.39) x 65%, with no mitigation required.
(3) For purposes of this subsection, notice is deemed
received by the grower:
(A) upon hand-delivery of the notice to the grower
or an authorized representative by a department employee;
(B) if mailed by certified mail, return receipt requested,
upon the date of delivery as shown on the receipt; if no delivery
date is shown, three days after the date the department deposits the
notice in the mail as shown by department records or other competent
evidence; or
(C) if mailed by regular mail, and upon showing of
proof by the department that the notice was deposited in the mail
and sent to grower's last known mailing address, three days after
date of mailing.
(f) After a zone has been declared eradicated by the
commissioner:
(1) any grower who plants certified organic or transitional
cotton will be eligible for indemnification on an acre per acre basis
only, if all or part of a crop is required to be destroyed;
(2) indemnification will only be available for certified
organic and/or transitional cotton acreage that is required to be
destroyed; and
(3) indemnification will be acreage x yield x (conventional
cotton price + $0.39) x 75%, with no mitigation required.
(g) The commissioner will resolve any dispute between
the grower and the foundation regarding the amount of indemnification.
|
| Source Note: The provisions of this §3.608 adopted to be effective June 14, 2000, 25 TexReg 5621; amended to be effective May 1, 2001, 26 TexReg 3209; amended to be effective August 6, 2001, 26 TexReg 5785; amended to be effective June 26, 2023, 48 TexReg 3405 |
