Section 3.608 - Calculation of Indemnity or Compensation(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.4 Tex. Admin. Code § 3.608
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 by Texas Register, Volume 48, Number 25, June 23, 2023, TexReg 3409, eff. 6/26/2023