United StatesDepartment ofAgricultureCLARY SAGELOSSADJUSTMENTSTANDARDSHANDBOOKFederal CropInsuranceCorporationFCIC-20250L2016 and Succeeding CropYears

UNITED STATES DEPARTMENT OF AGRICULTUREKANSAS CITY, MO 64133TITLE: CLARY SAGE CROPINSURANCE LOSS ADJUSTMENTSTANDARDS HANDBOOKEFFECTIVE DATE: 2016 and succeedingcrop yearsSUBJECT:NUMBER: 20250LProvides the loss adjustment instructions foradministering the Clary Sage crop insuranceprogram.APPROVED:ISSUE DATE: June 01, 2015OPI: Actuarial and Product Design Division/s/ Tim B WittDeputy Administrator for ProductManagementREASON FOR ISSUANCEThis handbook is being issued to provide approved loss adjustment standards for administering theClary Sage Crop Insurance Program for the 2016 and subsequent crop years.May 2015FCIC-20250LTP-1

CLARY SAGE LOSS ADJUSTMENT STANDARDS HANDBOOKCONTROL CHARTInsertCurrent IndexClary Sage Loss Adjustment Standards e(s) Page(s) Page(s)Entire IC-20250LFCIC-20250LFILING INSTRUCTIONSThis handbook s being issued to provide loss adjustment procedures and instructions for administeringthe Clary Sage Crop Insurance Program beginning with the 2016 crop year.May 2015FCIC-20250LTP-2

CLARY SAGE LOSS ADJUSTMENT STANDARDS HANDBOOKTABLE OF CONTENTSPAGE NO.PART 1GENERAL INFORMATION AND RESPONSIBILITIES1General Information. 12AIP Responsibilities . 13-10 (Reserved)PART 211POLICY INFORMATIONInsurability .212-20 (Reserved)PART 3APPRAISALS21Clary Sage Appraisals.822Appraisal Methods .1323Appraisal Deviations and Modifications .1824Appraisal Worksheet Completion.1825-30 (Reserved)PART 431CLAIMSClaim Form .1932-40 (Reserved)May 2015FCIC-20250LTC-1

CLARY SAGE LOSS ADJUSTMENT STANDARDS HANDBOOKTABLE OF CONTENTSPAGE NO.EXHIBITS1Acronyms.212Definitions.223Form Standards.234Minimum Representative Sample Requirements.445Row Length Requirements in Relation to Row Width.456Conversion Factors to Convert Sample Measures and Weights to Pounds/AcreEquivalents.467Clary Sage Growth Phases and Stages.478Clary Sage Plant Examples.499Appraisal Worksheet Replant Example.5110Appraisal Worksheet Stand Count Example.5211Appraisal Worksheet Hand Harvest Example.5312Production Worksheet Claim Example.5413Production Worksheet Replant Example.5514Notes.56May 2015FCIC-20250LTC-2

PART 1 GENERAL INFORMATION AND RESPONSIBILITIES1General InformationA.Purpose(1)(2)B.This handbook:(a)provides Clary Sage loss adjustment standards, including crop appraisalmethods, claims completion instructions, and form standards;(b)will be used in conjunction with the LAM;(c)may be amended through slipsheets or bulletins; and(d)will remain in effect until superseded by re-issuance of the entire handbook.This handbook provides the official standards for adjusting losses in a timely anduniform manner and the handbook is available on the internet at and DefinitionsAcronyms and definitions:C.(1)not specific to Clary Sage loss adjustment, are identified in the LAM; and(2)specific to Clary Sage loss adjustment, are in exhibits 1 and 2, herein.CAT CoverageRefer to the CIH and LAM for provisions and procedures not applicable to CAT.2AIP ResponsibilitiesAIPs will:(1)utilize the standards in this handbook for loss adjustment and loss training for theapplicable crop year;(2)maintain original insurance documents relative to policyholder servicing asdesignated in their approved plan of operations;(3)ensure, at a minimum, a legible copy of loss adjustment inspection forms completedby an adjuster and signed by the insured, or insured’s authorized representative, isprovided to the insured, and all other copies distributed as instructed by the AIP.3-10 (Reserved)May 2015FCIC-20250L1

PART 2 POLICY INFORMATION11InsurabilityA.B.General Information(1)This section provides most of the requirements to insure Clary Sage. Refer to the BP,CP, and SP for all insurability requirements.(2)The AIP is responsible for determining if the insured has complied with all of thenotice and policy provisions of the insurance contract.(3)The producer must provide a copy of all processor contracts to the AIP on or beforethe acreage reporting date.(4)Acreage planted after the late panting period is not insurable, regardless of the reasonacreage was not previously planted.(5)The written agreement and prevented planting provisions in the BP are not applicable.Insured Crop(1)The crop insured will be all the Clary Sage in the county for which a premium rate isprovided by the actuarial documents:(a)in which the insured has a share;(b)that is:(i)planted for harvest and extraction of sclareol; and(ii)grown in accordance with the requirements of a processor contractexecuted on or before the acreage reporting date, and(iii) planted in adherence to the rotation requirements, if applicable, containedin the SP, and(iv) not planted using the broadcast seeding method.(2)May 2015The producer will be considered to have a share in the insured crop if, under theprocessor contract, the producer retains control of the acres on which the Clary Sageis grown, the producer’s income from the insured crop is dependent on the amount ofsclareol that is extracted from the delivered production, and the processor contractprovides for delivery of the Clary Sage under specified conditions and at a stipulatedbase contract price.FCIC-20250L2

11Insurability (Continued)B.Insured Crop (continued)(3)C.(a)The producer must comply with all policy provisions;(b)Prior to the sales closing date, the Board of Directors or officers of the processormust execute and adopt a resolution that contains the same terms as anacceptable production contract. Such resolution will be considered a processorcontract under the policy; and(c)The AIP’s inspection reveals the processing facilities comply with the definitionof “processor” contained in the CP.(4)If the number of insurable acres exceeds the maximum allowable acres, necessaryadjustments must be made. See LAM, Section 7 Insurable Acreage, para. 91.(5)For acreage only based processor contracts, and acreage and production basedprocessor contracts, which specify a maximum number of acres, the number ofpounds considered to be under contract is the maximum number of acres specified inthe processor contract multiplied by the production guarantee.(6)The insured’s price election will be the base contract price multiplied by thepercentage of price elected by the insured but will not exceed the amount specified inthe SP.Replanting Requirements and Payment(1)May 2015A commercial Clary Sage producer who is also a processor may establish an insurableinterest if the following requirements are met:A replanting payment is allowed if:(a)the AIP has given consent;(b)the Clary Sage is damaged by an insurable cause of loss to the extent that theremaining number of live plants is less than the minimum number of plantsshown in the SP;(c)it is practical to replant or the AIP requires the producer to replant;(d)the acreage replanted is at least the lesser of 20 acres or 20 percent of theinsured planted acreage for the unit. (Any acreage planted after the end of thelate planting period will not be included when determining if the 20 acres or 20percent qualifications is met. (Refer to the LAM); and(e)the processor agrees in writing to accept all production from the replantedacreage.FCIC-20250L3

11Insurability (Continued)C.Replanting Requirements and Payment (continued)Use the following table to determine the replant payment trigger. Acreages with standcounts below the replant trigger value shown are eligible for a replant payment.ROW WIDTH:REPLANT TRIGGER:Rows 20” or more:2.0 Plants / linear foot of rowRows less than 20”:6.0 Plants / sq yd**See Exhibit 5 for row length requirements in relation to row width that corresponds to onesquare yard.In the narrative of the Production Worksheet or on a Special Report, for each field orsubfield, document that qualification for a replant payment has been met.May 2015(2)The producer must replant any acreage of Clary Sage damaged before the finalplanting date to the extent that a majority of producers in the area would not normallyfurther care for the crop, unless the AIP agrees it is not practical to replant.(3)The replanted crop must be seeded at a rate sufficient to achieve a total (undamagedand new seeding) plant population that will produce at least the yield used todetermine the production guarantee.(4)When Clary Sage is replanted using a practice that is uninsurable as an originalplanting, the liability for the unit will be reduced by the amount of the replantingpayment that is attributable to the producer’s share. The premium will not bereduced.(5)No replanting payment will be made on acreage on which one replanting payment hasalready been allowed for the crop year.(6)In the Narrative of the production worksheet or on a Special Report, show the standcount appraisal for each field or subfield and the calculations to document thatqualifications for a replanting payment have been met.(7)The maximum amount of the replanting payment per acre will be the lesser of 20percent of the production guarantee (per acre) or 1.0 pound, multiplied by the priceelection, multiplied by the insured’s share.FCIC-20250L4

11Insurability (Continued)C.Replanting Requirements and Payment (continued)Compute the number of pounds per acre allowed for a replanting payment by dividingthe maximum replanting payment amount by the insured's price election. Show allcalculations in the Narrative of the Production Worksheet or on a Special Report.EXAMPLE 1The insured has a 1.000 share in 40.0 insurable acres of Clary Sage. The insured'sproduction guarantee (per acre) is 30 pounds, and the price election is 21.0000 perpound. Ten (10.0) acres meet all qualifications for a replant payment and arereplanted.(a)Insured’s actual cost to replant 23.00 per acre.(b)1.0 pound maximum allowed by policy x 21.0000 price election x 1.000 share 21.00.(c)Twenty percent of the production guarantee (20% x 30 pounds) 6.0 pounds x 21.0000 price election x 1.000 share 126.00.The number of pounds per acre used to determine the replant payment is the smallestdollar amount determined in (a), (b) or (c) above, divided by the insured's priceelection. In this example, 21.00 21.0000 price election 1.0 pound.Enter the result of multiplying the number of pounds used to determine the replantpayment by the number of insured acres that are replanted in Section I, column 36,“Production Post QA” of the Production Worksheet. In this example, enter 10 (1.0pounds x 10.0 acres 10).EXAMPLE 2The insured has a .500 share in 120.0 insurable acres of Clary Sage. The insured'sproduction guarantee (per acre) is 24 pounds, and the price election is 21.0000 perpound. Thirty (30.0) acres qualify for a replant payment and are replanted.May 2015(a)Insured’s actual cost to replant 18.00 per acre.(b)1.0 pounds maximum allowed by policy x 21.0000 price election x .500 share 10.50.(c)Twenty percent of the production guarantee (20% x 24 pounds) 4.8 pounds x 21.0000 price election x .500 share 50.40.FCIC-20250L5

11Insurability (Continued)C.Replanting Requirements and Payment (continued)The number of pounds per acre used to determine the replant payment is the smallestdollar amount determined in (a), (b) or (c) above, divided by the insured's priceelection. In this example, 4.80 21.0000 0.2 pounds.Enter the result of multiplying the number of pounds used to determine the replantpayment by the number of insured acres that are replanted in Section I, column 36,“Production Post QA” of the Production Worksheet. In this example, enter 6.0 (0.2pounds x 30.0 acres 6.0).(8)D.Prepare replanting payment inspections as final inspections on the ProductionWorksheet only when the acreage qualifies for a replanting payment. Prepare nonqualifying replanting-payment inspections as preliminary inspections unless the claimis withdrawn by the insured. If qualified for a replanting payment, a CertificationForm may be prepared on the initial farm visit. Refer to the LAM.Insurable Causes of LossRefer to the policy for all applicable insured causes of loss.E.F.Uninsurable Causes of Loss(1)Insurance coverage is not provided against damage or loss of production due to failureto follow rotation requirements contained in the SP, if applicable.(2)Unless allowed in the SP, Clary Sage is not insurable if it is:(a)interplanted with another crop; or(b)planted into an established grass or legume.Unit DivisionBasic and optional units are available. Enterprise units available if provided for in the SP.G.Quality AdjustmentThere is no quality adjustment for Clary Sage.H.MycotoxinThere is no mycotoxin consideration for Clary Sage.May 2015FCIC-20250L6

11Insurability (Continued)I.GleaningThere is no gleaning consideration for Clary Sage.J.Farm-stored ProductionThere is no farm-stored production consideration for Clary Sage.12-20May 2015(Reserved)FCIC-20250L7

PART 3 APPRAISALS21Clary Sage AppraisalsA.General Information(1)Appraise potential production for all types of inspections in accordance withprocedures contained in this handbook and in the LAM.(2)Separate appraisal worksheets are required for each field or subfield including fieldsor subfields with a differing base (APH) yield or farming practice (applicable toreplant, preliminary, and final claims).(3)Appraisals before maturity.(a)Irrespective of the Clary Sage stage of growth, evaluate the degree of uniformityof the Clary Sage over the entire field.(b)If the crop is in either the vegetative or reproductive stage, complete thepreliminary inspection with attention to the type of damage and severity by:(i)inspecting all fields thoroughly;(ii)documenting any acreage that is not damaged;(iii) documenting the condition of the stand on the basis of stand count;(iv) documenting the condition of the plants on the basis of plant damage.Leaf area must remain for regrowth potential after plant damage. A ClarySage plant can be considered dead if, early in the growing season, the mainplant is severed from its roots below the growing point; and(v)(c)B.explaining to the insured that the amount of loss cannot be determinedaccurately, at this time.Do not estimate the amount of damage for the insured.Duties in the Event of Damage or Loss(1)When there is damage or loss of production, the insured must give notice for each unitwithin 72 hours of the insured’s initial discovery of damage or loss of production butnot later than 15 days after the end of the insurance period, even if the crop is notharvested.(2) Representative samples are required in accordance with section 14 of the BP.(3)May 2015In case of damage or loss of production, the insured must protect the crop from furtherdamage by providing sufficient care.FCIC-20250L8

21Clary Sage Appraisals (Continued)C.D.Selecting Representative Samples for Appraisals(1)Select representative field samples that will be used to determine appraised productionfor Clary Sage fields. See LAM section on appraisals and related instructions.(2)Split the field into subfields when:variable damage causes the crop potential to appear to be significantly differentwithin the same field; or(b)the insured wishes to destroy a portion of a field.(3)Each field or subfield must be appraised separately.(4)Take not less than the minimum number of representative samples shown in exhibit 4for each field or subfield.Determining Sample Size(1)(2)May 2015(a)One sample is:(a)40 linear feet of row for row widths 20 inches or more.(b)one-square-yard for row widths less than 20 inches.for stand count and hand harvested samples,(a)use a measuring tape marked in inches or convert a tape marked in tenths, toinches, to measure row width (refer to the LAM for conversion table);(b)measure across three or more row spaces, from the center of the first row to thecenter of the fourth row (or as many rows as needed), and divide the result bythe number of row spaces measured across, to determine an average row widthto the nearest inch;FCIC-20250L9

21Clary Sage Appraisals (Continued)D.Determining Sample Size (continued)EXAMPLE:Row 1Row SpaceRow 2Row SpaceRow 3Row 4Row Space30 inches30 inches 3 row spaces 10 inches average row width(3)E.(c)where rows are skipped for tractor or planter tires, refer to the LAM; and(d)use the average row width shown in Exhibit 5 Row Length Requirements inRelation to Row Width to determine the length of sample row required for rowspacing of less than 20 inches.For machine harvest samples, one sample is the number of square yards harvested bymachine in a representative area.Sampling Procedure(1)Select areas of each field/subfield for samples that will provide appraisalsrepresentative of the crop's potential.(2)Determine average stage of growth for Clary Sage in the selected representativesamples.(3)In certain situations, it may be necessary to allow the insured to defer Clary Sageappraisals until maturity when machine harvesting is used. When this is the case, theadjuster should mark a representative area(s) of the field or subfield to be machineharvested at a time when the crop would normally be harvested.(4)Clary Sage should be sampled when growing or standing by either hand harvest ormachine harvest. Clary Sage should be appraised after being swathed only whennecessary.(5)The basis for determining the appraised amount of sclareol/acre may be determinedusing:(a)May 2015for biomass material: weight of harvested Clary Sage delivered to the processoror the adjuster’s field determined weight of harvestable Clary Sage,FCIC-20250L10

21.Clary Sage Appraisals (Continued)E.F.Sampling Procedure (continued)(b)for % sclareol: the results of normal testing by the processor from samplestaken either by the processor at time of delivery or provided by the adjuster, orthe standard % sclareol shown in this handbook, and(c)for acres: the measured sample area of any hand or machine harvested sample.Plant Description and Growth(1)Clary Sage (Salvia sclarea L.) is an erect herbaceous member of the mint family(Lamiaceae), native to southern Europe and the Mediterranean region. S. sclarea isan annual (rare), biennial (fairly common) or perennial (also fairly common)herbaceous plant that has the typical quadrangular stems and opposite leaves. Thespecies is widely cultivated throughout the temperate regions of the world. It growsto a height of about 100 cm. (approx. 40 inches) although in very long photoperiodsand dry summers it can reach more than 150 cm. (approx. 60 inches) with a width of30 cm (approx. 1 foot).The annual Clary Sage form will flower the first year if seeds are planted when theground is still cold. This vigorous growing form requires a limited cold period whenthe plant has reached the rosette stage to vernalize before it commences vegetativegrowth. Biennial or perennial forms of Clary Sage are planted in the fall. During thewinter, full vernalization occurs in the rosette stage so that once the springcommences the plants begin vegetative growth characterized by leaf building andstem elongation, followed by flower formation, etc. If biennial or perennial forms ofClary Sage are planted when the ground is still cold, the time in the rosette stage is notlong enough for vernalization to occur. As a result, these plants remain in the rosettestate for the whole year.Clary Sage stems are erect, densely haired and much branched. The large leaves growoff a central stalk that bends with the weight of the flowers. During flowering, theplant is characterized by broad-ovate, green, pubescent leaves with the inflorescencegenerally possessing 4-6 flowers with the bracts exceeding the 20-23 carolla whichcan be purple, lilac, or white in color with the upper lip strongly curved. The calyces(floral buds) are 10 mm with spiny pubescent teeth which are glandular punctate. Thenutlets are dark brown 2-3 mm long.(2)May 2015Clary Sage is adapted to a dry climate and produces more oil under low soil fertilityand moisture. Within two months of vegetative growth commencement, the primaryflower head (calyx or spike) begins to form. As the plant is reproduced from seed theinherent need for the main flower spike to reach maturity is the main desire of theplant. If irrigation is applied at this time, vegetative growth is encouraged, thematuration process of the primary flower spike is slowed down, and the tillers thathave formed begin to flower, the indicator of full bloom.FCIC-20250L11

21Clary Sage Appraisals (Continued)F.Plant Description and Growth (continued)(3)Clary Sage will germinate and grow best if it is seeded at a depth of ¼ inch. Thecommonly recommended seeding rate is about 3 pounds per acre, usually planted atabout 10 plants per linear foot in 36 inch rows. Optimum survival is about 8 plantsper linear foot. A good stand of Clary Sage has approximately 3 to 5 seedlings/plantsper linear foot of row with a row spacing of 20 inches or more or 9 to 15 plants/squareyard with a row spacing less than 20 inch inches. Stands thicker than this do notnecessarily contribute to increased yield potential.(4)Most of the oil is in the flowering stalk, so the plant is cut to capture the flower heads,stems and the top few pairs of leaves (biomass). Clary Sage is primarily harvestedduring late bloom when the seeds are at the milky stage. The milk stage generallylasts about two weeks; from about 10-12 days after the secondary flowers emerge toabout 10 days before the plant begins shutting down (senescence). Harvest can beginearlier or later, but generally there is a 2 to 3 week harvest window to obtain thehighest sclareol yield.Clary Sage is typically harvested at about 60% moisture / 40% dry matter with nodifference for wet or dry. However, if over-mature, it will be dry enough to bechopped and bagged without swathing.Clary Sage is either green or dry harvested. Green harvest (also called wet harvest) isdirect chopped biomass similar to cutting for silage and is delivered for directprocessing. Dry harvest involves placing the biomass in windrows and allowing theplant material to dry for a ½ day to 2 days (longer earlier in season, shorter later inseason) before it is chopped, delivered to the processor, stored in silage bags. Thecrop can be processed over time. Biomass is greater for green harvest, but thepoundage of sclareol will be the same with either harvest method.May 2015(5)Refer to exhibit 7 Clary Sage Growth Phases and Stages for a more completedescription of Clary Sage growth phases and stages.(6)Use growth phase and stage information from exhibit 7 Clary Sage Growth Phasesand Stages to determine if the potential Clary Sage production in the field or subfieldcan be appraised.(7)Base the growth stage determination on at least 50 percent of plants having reachedthe stage described after examining 10 consecutive plants in a representative portionof the row.FCIC-20250L12

22Appraisal MethodsA.General InformationThese instructions provide information on the following appraisal methods.In thisGrowth Phase.(Replant)VegetativeReproductiveB.To Stand CountDetermine whether the acreagequalifies for a ReplantPaymentStand CountAppraise acreage in the FallGrowth Stage and in theSpring Growth Stage.Hand HarvestAppraise acreage in theFlowering Stage, in theRipening Stage and in theSenescence Stage.Machine Harvested RepresentativeSample (an alternative)To defer appraisal(s) duringthe Spring Growth Stage or toappraise in either theFlowering and Ripening Stage.Stand Count Appraisals for Replant Payment(1)May 2015Use this Appraisal Method.The population of live Clary Sage plants to be counted from insurable acreage on theunit will not be less than the population of live Clary Sage plants in an adequate standfor any acreage:(a)that is abandoned;(b)that is put to another use without consent;(c)for which the insured fails to meet the notice of loss requirements contained inthe crop provisions; or(d)that is damaged solely by uninsured causes.FCIC-20250L13

22Appraisal Methods (Continued)B.Stand Count Appraisals For Replant Payment (continued)(2)Select representative samples for stand count determinations:(a)use the required number of live plants established by the SP to determine if areplant payment is payable;(b)select the appropriate number of samples (shown in exhibit 4 MinimumRepresentative Sample Requirement);(c)determine the number of live Clary Sage plants within each representativesample area;(d) to determine plant counts in fields(e)(3)(i)for row widths 20 inches or more, each representative sample must be 40feet long; or(ii)for row widths less than 20 inches, each representative sample must benine square feet (one-square-yard). See exhibit 5.calculate and record the results on the Clary Sage Appraisal Worksheet and or aSpecial Report if needed.To appraise Clary Sage by the “Stand Count Method,”(a)measure representative samples in the row(s) to be evaluated;(b)count the number of live Clary Sage plants in each representative sample;(c)sum the:(d)(i)live plants counted in each sample; and(ii)length of all samples taken (in feet to tenths); anddetermine the number of “live plants per linear foot of row” or “live plants persquare yard”, as applicable.Examples: [total plant count total length of all samples in ft.] “plants per linearfoot of row.”, or[(total plant count) ((total length of all samples in ft.) x (row widthto tenths of a foot)) x 27] “plants per square yard.”May 2015FCIC-20250L14

22Appraisal Methods (Continued)C.Stand Count Appraisals Other Than For Replant(1) Complete this appraisal process following steps B, (1) through B. (3), above and stepC. (2), below.(2)Use the following seeding rates (optimal number of plants for full yield), asapplicable:ROW WIDTHSEEDING RATE:For Rows 20” or more:Use: 8 plants per linear foot of rowFor Rows less than 20”:Use: 24 plants / square yard*Seeding rate based on estimated optimal plant population of 115,000plants/acre (36 inch rows with 8 plants per linear foot of row, 24 plants persquare yard equivalent)(3)May 2015Use the following Stand Count Growth Stage Factor, as applicable:GROWTH STAGE:STAND COUNTGROWTHSTAGE FACTOR:Fall Growth Stage:0.9Spring Growth Stage:0.8FCIC-20250L15

22Appraisal Methods (Continued)D.Hand Harvest Appraisals(1)Conduct hand harvest appraisals when the crop is at or near harvest, generallybetween 20 days and 35 days after the Flowering Growth Stage begins, see Exhibit 7.This timing will provide reasonable appraisals when needed, i.e. to:(a)appraise a damaged portion(s) of a field before harvest is scheduled in order torelease the acreage for another use (e.g. plant to soybeans), and(b)provide timely appraisals for acres that will be left unharvested.(2)When Clary Sage is damaged in the swath, use this appraisal method to determineproduction to count in the field.(3)When Clary Sage is standing and the average row width is 20 inches or more, markoff representative areas of 40 linear feet, or when the average row width is less than20 inches, mark off the appropriate row length for a one square yard sample as shownin Exhibit 5. For each sample area marked off:(a)simulate machine harvest by cutting off the top part of the flowering stems justbelow the first set of true leaves, regardless of size, from each harvestable plantgrowing in the sample area (see Exhibit 8).(b)weigh the hand harvested production from each sa

subfield, document that qualification for a replant payment has been met. (2) The producer must replant any acreage of Clary Sage damaged before the final planting date to the extent that a majority of producers in the area would not normally further care for the crop, unless the AIP agrees it is not practical to replant.