11-17-11 fcic common crop insurance regulations;fresh market tomato (dollar plan) crop provisions

8/3/2019 11-17-11 FCIC Common Crop Insurance Regulations;Fresh Market Tomato (Dollar Plan) Crop Provisions

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This section of the FEDERAL REGISTERcontains notices to the public of the proposedissuance of rules and regulations. The

purpose of these notices is to give interestedpersons an opportunity to participate in therule making prior to the adoption of the finalrules.

Proposed Rules Federal Register

71271

Vol. 76, No. 222

Thursday, November 17, 2011

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC110006]

RIN 0563AC32

Common Crop Insurance Regulations;

Fresh Market Tomato (Dollar Plan)Crop Provisions

AGENCY: Federal Crop InsuranceCorporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop InsuranceCorporation (FCIC) proposes to amendthe Common Crop InsuranceRegulations, Fresh Market Tomato(Dollar Plan) Crop Provisions. Theintended effect of this action is toprovide policy changes, to clarifyexisting policy provisions to better meetthe needs of insured producers, and to

reduce vulnerability to program fraud,waste, and abuse. The proposed changeswill be effective for the 2013 andsucceeding crop years.

DATES: Written comments and opinionson this proposed rule will be accepteduntil close of business December 19,2011 and will be considered when therule is to be made final.

ADDRESSES: FCIC prefers that commentsbe submitted electronically through theFederal eRulemaking Portal. You maysubmit comments, identified by DocketID No. FCIC110006, by any of thefollowing methods: Federal eRulemaking Portal: http://

www.regulations.gov. Follow theinstructions for submitting comments. Mail: Director, Product

Administration and Standards Division,Risk Management Agency, United StatesDepartment of Agriculture, P.O. Box419205, Kansas City, MO 641336205.

All comments received, including thosereceived by mail, will be posted withoutchange to http://www.regulations.gov,including any personal informationprovided, and can be accessed by the

public. All comments must include theagency name and docket number orRegulatory Information Number (RIN)for this rule. For detailed instructionson submitting comments and additionalinformation, see http://www.regulations.gov.If you aresubmitting comments electronicallythrough the Federal eRulemaking Portaland want to attach a document, we askthat it be in a text-based format. If youwant to attach a document that is ascanned Adobe PDF file, it must bescanned as text and not as an image,thus allowing FCIC to search and copycertain portions of your submissions.For questions regarding attaching adocument that is a scanned Adobe PDF

file, please contact the RMA WebContent Team at (816) 8234694 or byemail at [email protected].

Privacy Act: Anyone is able to searchthe electronic form of all commentsreceived for any dockets by the name ofthe individual submitting the comment(or signing the comment, if submittedon behalf of an association, business,labor union, etc.). You may review thecomplete User Notice and PrivacyNotice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT:Director, Product Administration and

Standards Division, Risk ManagementAgency, United States Department ofAgriculture, Beacon Facility, Stop 0812,Room 421, P.O. Box 419205, KansasCity, MO 641416205, telephone (816)9267730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to benon-significant for the purposes ofExecutive Order 12866 and, therefore, ithas not been reviewed by the Office ofManagement and Budget (OMB).

Paperwork Reduction Act of 1995

Pursuant to the provisions of thePaperwork Reduction Act of 1995 (44U.S.C. chapter 35), the collections ofinformation in this rule have beenapproved by OMB under controlnumber 05630053.

E-Government Act Compliance

FCIC is committed to complying withthe E-Government Act, to promote theuse of the Internet and otherinformation technologies to provideincreased opportunities for citizen

access to Government information andservices, and for other purposes.

Unfunded Mandates Reform Act of1995

Title II of the Unfunded MandatesReform Act of 1995 (UMRA), PublicLaw 1044, establishes requirements forFederal agencies to assess the effects oftheir regulatory actions on State, local,and Tribal governments and the privatesector. This rule contains no Federalmandates (under the regulatoryprovisions of title II of the UMRA) forState, local, and Tribal governments orthe private sector. Therefore, this rule isnot subject to the requirements ofsections 202 and 205 of UMRA.


It has been determined under section1(a) of Executive Order 13132,Federalism, that this rule does not havesufficient implications to warrantconsultation with the States. Theprovisions contained in this rule willnot have a substantial direct effect onStates, or on the relationship betweenthe national government and the States,or on the distribution of power andresponsibilities among the variouslevels of government.


This rule has been reviewed inaccordance with the requirements ofExecutive Order 13175, Consultationand Coordination with Indian TribalGovernments. The review reveals thatthis regulation will not have substantialand direct effects on Tribal governmentsand will not have significant Tribalimplications.

Regulatory Flexibility Act

FCIC certifies that this regulation willnot have a significant economic impacton a substantial number of smallentities. Program requirements for the

Federal crop insurance program are thesame for all producers regardless of thesize of their farming operation. Forinstance, all producers are required tosubmit an application and acreagereport to establish their insuranceguarantees and compute premiumamounts, and all producers are requiredto submit a notice of loss andproduction information to determine theamount of an indemnity payment in theevent of an insured cause of crop loss.Whether a producer has 10 acres or1000 acres, there is no difference in the

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71272 Federal Register / Vol. 76, No. 222/ Thursday, November 17, 2011 / Proposed Rules

kind of information collected. To ensurecrop insurance is available to smallentities, the Federal Crop Insurance Actauthorizes FCIC to waive collection ofadministrative fees from limitedresource farmers. FCIC believes thiswaiver helps to ensure that smallentities are given the same opportunitiesas large entities to manage their risks

through the use of crop insurance. ARegulatory Flexibility Analysis has not

been prepared since this regulation doesnot have an impact on small entities,and, therefore, this regulation is exemptfrom the provisions of the RegulatoryFlexibility Act (5 U.S.C. 605).

Federal Assistance Program

This program is listed in the Catalogof Federal Domestic Assistance underNo. 10.450.


This program is not subject to the

provisions of Executive Order 12372,which requires intergovernmentalconsultation with State and localofficials. See the Notice related to 7 CFRpart 3015, subpart V, published at 48 FR29115, June 24, 1983.


This proposed rule has been reviewedin accordance with Executive Order12988 on civil justice reform. Theprovisions of this rule will not have aretroactive effect. The provisions of thisrule will preempt State and local lawsto the extent such State and local laws

are inconsistent herewith. With respectto any direct action taken by FCIC or torequire the insurance provider to takespecific action under the terms of thecrop insurance policy, theadministrative appeal provisionspublished at 7 CFR part 11 must beexhausted before any action againstFCIC for judicial review may be brought.

Environmental Evaluation

This action is not expected to have asignificant economic impact on thequality of the human environment,health, or safety. Therefore, neither anEnvironmental Assessment nor anEnvironmental Impact Statement isneeded.

Background

FCIC proposes to amend the CommonCrop Insurance Regulations (7 CFR part457) by revising 457.139 Fresh MarketTomato (Dollar Plan) Crop Provisions, to

be effective for the 2013 and succeedingcrop years. Several requests have beenmade for changes to improve thecoverage offered, address programintegrity issues, simplify program

administration, and improve clarity ofthe policy provisions.

The proposed changes are as follows:1. FCIC proposes to remove the

paragraph immediately precedingsection 1 which refers to the order ofpriority in the event of a conflict. Thissame information is contained in theCommon Crop Insurance Policy Basic

Provisions (Basic Provisions). Therefore,it is duplicative and no longer necessaryin the Crop Provisions. Also FCICproposes to remove all references tosection titles of the Basic Provisions.This information is currently containedin parenthesis following references tosection numbers of the Basic Provisionsthroughout the Crop Provisions. Thesection numbers should providesufficient guidance to locate theapplicable provision.

2. Section 1FCIC proposes to add anew definition of allowable cost tospecify the dollar amount per carton forharvesting, packing and handling costs(as shown in the Special Provisions) forthe purpose of computing the total valueof production to be counted. Theallowable cost per carton contained inthe Special Provisions will besubtracted from the price received foreach carton of sold harvestedproduction to obtain the value ofproduction to count.

FCIC proposes to add a new definitionof amount of insurance per acre

because the term is currently used in theCrop Provisions but was not previouslydefined. The definition specifies thedollar amount of coverage per acre is

obtained by multiplying the referencemaximum dollar amount shown in theactuarial documents by the coveragelevel percentage you elect. In thesettlement of claim section, the amountof insurance per acre minus the totaldollar value of production to count peracre determines if an indemnity ispayable to the insured.

FCIC proposes to add a new definitionof fresh market tomatoes because theterm is currently used in the CropProvisions but was not previouslydefined. The definition specifies theyare field grown mature green or ripe

fresh market tomatoes that meet theAgricultural Marketing Service UnitedStates Standards for Grades of FreshTomatoes; and the applicable FloridaFederal Marketing Order and FloridaTomato Committee Regulations, or theirsuccessors. The above Florida FederalMarketing Order and Florida TomatoCommittee rules and regulations thatcurrently apply to these field grownfresh market tomato types and varietiesdo not include greenhouse,hydroponic, heirloom and othervarieties of tomatoes that are not field

grown and do not comply with theserules and regulations.

FCIC proposes to add a new definitionof minimum value because theminimum value amount shown in theSpecial Provisions and used in theSettlement of Claim provisions was notpreviously defined. Minimum value isused to value appraised and unsold

harvested production to count. Incalculating the total value of all soldharvested production to count, the pricereceived for each carton of fresh markettomatoes minus the allowable costs percarton cannot be less than the minimumvalue, unless the Minimum ValueOption is elected.

FCIC proposes to add a new definitionof penhookers because these areindividuals who purchase the right tosalvage fresh market tomatoes remainingin the field after the insureds completetheir harvests on the unit. Any salvagevalue paid to the insured will be added

to the final dollar value of theproduction to count.

FCIC proposes to add a new definitionof price received to clarify that it isthe gross dollar amount per cartonreceived by the producer beforedeductions for allowable costs.

FCIC proposes to add a new definitionof registered handler to identify thoseindividuals who are specificallycertified by the Florida TomatoCommittee or successor entity to inspectand enforce all the handling regulationsfor shipment of fresh market tomatoes.

FCIC proposes to revise and clarify

the definition of acre by removing thephrase 43,560 square feet of land andreplacing it with the phrase 43,560square feet of planted acreage. Thischange helps clarify that substantialsquare footage being used for otherpurposes such as roadways or irrigationcanals should not be included in thecalculation of planted acreage.

FCIC proposes to revise the definitionof direct marketing to includeregistered handler in the list ofexamples of an intermediary.

FCIC proposes to revise the definitionof harvest by replacing the phrase onthe unit with the phrase from theplants and clarifying that any freshmarket tomatoes salvaged bypenhookers is not considered a harvestsince the grower does not incur anypicking or harvesting costs. However,any salvage value paid to the producer

by the penhooker will be included inthe total dollar value of production tocount.

FCIC proposes to revise and clarifythe definition of plant stand byreplacing the word insurable with theword insured.



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71273Federal Register / Vol. 76, No. 222/ Thursday, November 17, 2011 / Proposed Rules

FCIC proposes to revise and clarifythe definition of potential production

by removing paragraphs (a) and (b) inthe current policy definition. Thecurrent crop provisions use theterminology classification size and 6x 7 (28/32 inch minimum diameter) orlarger which excludes all other sizeclassifications under the Agricultural

Marketing Service United StatesStandards for Grades of Fresh Tomatoes,the Florida Federal Marketing Order,and the Florida Tomato CommitteeRegulations. FCIC also proposes toreplace the phrase mature green or ripetomatoes with the phrase field grownmature green or ripe fresh markettomatoes to clarify this is the primarygrowing practice recognized andgoverned by the Florida TomatoCommittee Regulations, or successorentity. FCIC proposes to revise section8 to limit insurability to field growntomatoes.

FCIC proposes to remove thedefinition of planted acreage becausethis definition is contained in the BasicProvisions. Therefore, this definition isduplicative and no longer necessary inthe Crop Provisions.

FCIC proposes to remove thedefinition of practical to replant

because this definition is contained inthe Basic Provisions. Therefore, thisdefinition is duplicative and no longernecessary in the Crop Provisions.

3. Section 3FCIC proposes to revisethe table under section (3)(d) byremoving the column Length of time if

Direct Seeded because the use oftransplanted tomatoes is now theprimary planting method being used inthe Florida Tomato Committee regulatedarea. FCIC historical data indicates onlyone direct seeded policy was insuredin the regulated area in the last decade.However, a new provision is beingproposed in section 8(c)(4) for directseeded tomatoes to be insured bywritten agreement only. FCIC proposesto remove all other references to directseeded from the policy.

FCIC proposes to revise section 3(e) toclarify any acreage of fresh market

tomatoes damaged in the first, second,or third stage to the extent that themajority of producers in the area wouldnot normally further care for the crop,the indemnity payable for such acreagewill be based on the stage guarantee theplants achieved when the insured causeof loss occurred, even if the producercontinues to care for the damagedtomatoes. This is consistent with theprovisions of other similar cropspolicies. If the producer continues tocare for the damaged tomato acreage,any appraised or harvested production

will be included in the dollar value ofproduction to count.

4. Section 8FCIC proposes to revisethe introductory paragraph to clarifyonly field grown mature green or ripefresh market tomato types and varietieswill be insurable as specified in theSpecial Provisions for which a premiumrate is provided in the actuarial

documents, and allowed by the FloridaTomato Committee.

Also, FCIC proposes to remove thecurrent language in section 8(c)(4)

because cherry, grape and plum fieldgrown fresh market tomatoes will now

be insurable if allowed by SpecialProvisions and premium rates are listedin the actuarial documents.

FCIC also proposes adding newlanguage in section 8(c)(4) allowingdirect seeded field grown fresh markettomatoes to be insured by writtenagreement.

5. Section 9FCIC proposes to revisesection 9(b)(1)(iii) by removing thedirect seeded reference or 60 days ofdirect seeding because such tomatoesare only insurable by written agreement,which will contain the terms andconditions of insurance.

FCIC also proposes to addstrawberries in section 9(b)(3) to thelist of crops that require soil fumigation

before planting fresh market tomatoes.Strawberries are susceptible tonematode damage and pose the samerisk of nematodes to new fresh markettomato planted acreage as these othercrops.

6. Section 10FCIC proposes to

clarify section 10(e) by stating Finalharvest on the unit since this policyallows additional basic units byplanting period and some counties havemultiple planting periods.

FCIC also proposes to revise section10(f) to remove the reference to directseeding since the practice is proposed to

be only insurable by written agreement.7. Section 11FCIC proposes to

revise and clarify section 11(b)(2) byrevising the current language to clarifythat insurance will not be providedagainst any loss of production due to thefailure to harvest in a timely manner or

failure to market the tomatoes, unlesssuch failure is due to an insured causeof loss that occurs during the insuranceperiod. For example, the policy does notcover the inability to market the insuredcrop due to quarantine, boycott, orrefusal of any person to acceptproduction.

8. Section 14(b)(4)(ii)FCIC proposesto remove the provisions pertaining tothe 1998 and 1999 crop years becausethey are obsolete. This change allowsthe catastrophic risk percentage ofcoverage to be changed if necessary.

FCIC proposes to add an example ofa claim for indemnity after section14(b)(5).

FCIC proposes to revise the languagein section 14(c)(2)(i) to explainappraised potential production will bedetermined for claim purposes on anyfresh market tomato acreage that has not

been harvested the required number oftimes as specified in the SpecialProvisions. FCIC also proposesremoving the reference to ground-culture tomato planting since thisplanting practice is no longer used.

FCIC proposes to revise section14(c)(3) by adding a new section 14(c)(4)to separate and clarify the settlement ofclaims procedures for sold harvestedand unsold harvested production.Section 14(c)(3) describes the total valueof all sold harvested production and theuse of allowable costs in determiningthe total dollar value of production tocount. The last sentence currently insection (14)(c)(3) is now the lastsentence in section (14)(c)(4). Section14(c)(4) as proposed will describe thetotal value of all unsold harvestedproduction and using the minimumvalue shown in the Special Provisionsin determining the total dollar value ofproduction to count.

FCIC proposes adding a new section14(c)(5) to clarify any salvage value paidto the insured by penhookers will beadded to the total dollar value ofproduction to count.

9. Section 16FCIC proposes revising

section 16(a)(1) and 16(b)(2) of thecurrent policy Minimum Value Optionby removing the Minimum ValueOption II. Allowing the Minimum ValueOption II price to go down to zero hasresulted in unfavorable loss experienceand program abuse. This change willimprove the integrity of the MinimumValue Option benefit.

FCIC also proposes revising section(16)(b)(1)(ii) by changing the phraseFor marketable production that is notsold, to For unsold harvestedproduction,. The new wording isconsistent with the wording in section

(14)(c)(4).FCIC proposes to add an example of

a claim for indemnity after paragraph16(c).

Other minor changes have been madeto make the provisions more effectiveand consistent with other similar CropProvisions.

List of Subjects in 7 CFR Part 457

Crop insurance, Fresh market tomato(dollar plan), Reporting andrecordkeeping requirements.



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Proposed Rule

Accordingly, as set forth in thepreamble, the Federal Crop InsuranceCorporation proposes to amend 7 CFRpart 457 effective for the 2013 andsucceeding crop years as follows:

PART 457COMMON CROPINSURANCE REGULATIONS

1. The authority citation for 7 CFRpart 457 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(o).

2. Amend 457.139 as follows:a. Revise the introductory text;

b. Remove the paragraph immediatelypreceding section 1;

c. Amend section 1 by:i. Adding definitions for allowable

cost, amount of insurance per acre,fresh market tomatoes, minimumvalue, penhookers, price received,and registered handler;

ii. Removing the definitions of

planted acreage and practical toreplant;

iii. Revising the definitions of acre,direct marketing, harvest, plantstand, and potential production; and

iv. Amending the definition of cropyear by removing the phrase of cropyear contained in section 1(Definitions) of the Basic Provisions( 457.8) and adding the phrasecontained in the Basic Provisions inits place.

d. Amend section 3 by:i. Removing the phrases (Insurance

Guarantees, Coverage Levels, and Prices

for Determining Indemnities) and( 457.8) in paragraphs (a) and (c);ii. Revising the table in paragraph (d);

andiii. Revising paragraph (e).e. Amend section 4 by removing the

phrases (Contract Changes) and(457.8).

f. Amend section 5 by removing thephrases (Life of Policy, Cancellation,and Termination) and ( 457.8).

g. Amend section 6 introductory textby removing the phrases (Report ofAcreage) and ( 457.8).

h. Amend section 7 by:i. Removing the phrases (Annual

Premium) and ( 457.8); andii. Removing the phrase (e.g., fall

direct-seeded irrigated)) and addingthe phrase (e.g., fall transplantedirrigated) in its place.

i. Amend section 8 by:i. Revising the introductory text; andii. Revising paragraph (c)(4).j. Amend section 9 by:

i. Removing the phrases (InsurableAcreage) and (457.8) in paragraphs(a) and (b);

ii. Removing the phrase or 60 daysof direct seeding in paragraph(b)(1)(iii);

iii. Removing the word satisfiedand adding the word met in its placein paragraph (b)(2); and

iv. Revising paragraph (b)(3).k. Amend section 10 by:i. Revising the introductory

paragraph;ii. Revising paragraph (e); andiii. Revising paragraph (f).l. Amend section 11 by:i. Removing the phrases (Causes of

Loss) and (457.8) in paragraphs (a)and (b);

ii. Revising paragraph (b)(2).m. Amend section 12(a) and 12(c) by

removing the phrases (ReplantingPayment) and ( 457.8).

n. Amend section 13 by removing thephrases (Duties in the Event of Damageor Loss) and (457.8).

o. Amend section 14 by:i. Revising paragraph (b)(4)(ii);ii. Adding an example following

paragraph (b)(5);iii. Revising paragraph (c)(2)(i);iv. Revising paragraph (c)(3);v. Adding a new paragraph (c)(4); andvi. Adding a new paragraph (c)(5).p. Revise section 16.q. Adding an example following

paragraph 16(c).The revised and added text reads as

follows:

457.139 Fresh market tomato (dollarplan) crop insurance provisions.

The fresh market tomato (dollar plan)crop insurance provisions for the 2013and succeeding crop years are asfollows:

* * * * *

1. Definitions

Acre. 43,560 square feet of plantedacreage when row widths do not exceedsix feet. If row widths exceed six feet,the land area on which at least 7,260linear feet of rows are planted.

Allowable cost. The dollar amount percarton for harvesting, packing, and

handling as stated in the SpecialProvisions.

Amount of insurance per acre. Thedollar amount of insurance per acreobtained by multiplying the referencemaximum dollar amount shown in theactuarial documents by the coveragelevel percentage you elect.

* * * * *

Direct marketing. The sale of theinsured crop directly to consumerswithout the intervention of anintermediary such as a registeredhandler, wholesaler, retailer, packer,processor, shipper or buyer. Examplesof direct marketing include sellingthrough an on-farm or roadside stand,farmers market, and permitting the

general public to enter the field for thepurpose of picking all or a portion of thecrop.

* * * * *

Fresh Market Tomatoes. Field grownmature green or ripe fresh markettomatoes that meet the AgriculturalMarketing Service United StatesStandards for Grades of Fresh Tomatoes;and the applicable Federal MarketingOrder and Florida Tomato CommitteeRegulations, or their successors.

Harvest. The picking of tomatoes fromthe plants, excluding fresh markettomatoes salvaged by penhookers.

* * * * *Minimum value. The dollar amount

per carton shown in the SpecialProvisions we will use to valueappraised and marketable production tocount.

Penhookers. Individuals whopurchase the right to salvage tomatoesremaining in the field after commercialharvests are completed.

Plant stand. The number of liveplants per acre prior to the occurrenceof an insured cause of loss.

* * * * *

Potential production. The number ofcartons of mature green or ripe fieldgrown fresh market tomatoes that thetomato plants will or would haveproduced per acre assuming normalgrowing conditions and practices by theend of the insurance period.

Price received. The gross dollaramount per carton received by theproducer before deductions of allowablecosts.

Registered handler. A person or entityofficially certified by the FloridaTomato Committee, or successor entity,to inspect and enforce all the handling

regulations for fresh market tomatoes,and report the required packout data tothe Florida Tomato Committee.

* * * * *

3. Amounts of Insurance and ProductionStages

* * * * *

(d) * * *



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71275Federal Register / Vol. 76, No. 222/ Thursday, November 17, 2011 / Proposed Rules

Stage Percent of the amount of insurance per acrethat you selected

Length of time if transplanted

1 ........................... 50 .................................................................... From planting through the 29th day after planting.2 ........................... 75 .................................................................... From the 30th day after planting until the beginning of stage 3.3 ........................... 90 .................................................................... From the 60th day after planting until the beginning of the final stage.Final ..................... 100 .................................................................. Begins the earlier of 75 days after planting, or the beginning of harvest.

(e) Any acreage of fresh markettomatoes damaged in the first, second,or third stage to the extent that themajority of producers in the area wouldnot normally further care for the crop,the indemnity payable for such acreagewill be based on the stage the plants hadachieved when the insured damageoccurred, even if the producer continuesto care for the damaged tomatoes.

* * * * *

8. Insured Crop

In accordance with section 8 of theBasic Provisions, the crop insured will

be all the field grown fresh markettomato types and varieties in the countyas specified in the Special Provisions forwhich a premium rate is provided in theactuarial documents:

* * * * *(c) * * *(4) Direct seeded fresh market

tomatoes, unless insured by writtenagreement.

* * * * *

9. Insurable Acreage* * * * *

(3) We will not insure any acreage onwhich tomatoes (except for replantedtomatoes in accordance with sections9(b)(1) and (2)), peppers, eggplants,strawberries or tobacco have been grownand the soil was not fumigated orotherwise properly treated beforeplanting the insured tomatoes.

10. Insurance Period

In lieu of section 11 of the BasicProvisions, coverage begins on each unitor part of a unit the later of the date weaccept your application, or when thetomatoes are planted in each plantingperiod. Coverage ends on each unit atthe earliest of:

* * * * *

(e) Final harvest on the unit; or

(f) The calendar date for the end ofinsurance period that is 125 days afterthe date of transplanting or replantingwith transplants.

11. Causes of Loss* * * * *

(b) * * *(2) Failure to harvest in a timely

manner or failure to market thetomatoes, unless such failure is due toactual physical damage caused by aninsured cause of loss that occurs duringthe insurance period. For example, wewill not pay an indemnity if you areunable to market the insured crop dueto quarantine, boycott, or refusal of anyperson to accept production.

* * * * *

14. Settlement of Claim* * * * *

(b) * * *(4) * * *(ii) For catastrophic risk protection

coverage, the result of multiplying thetotal value of production to countdetermined in accordance with section14(c) by the percentage contained in theSpecial Provisions.

(5) * * *

For Example: You have a 100 percent share in 10.0 acres of fresh market tomatoes. You select a 70% coverage level of the reference max-imum dollar amount of $7,500 per acre. The average price received is $10.00 per carton of tomatoes. Allowable costs are $4.25 per carton.Minimum value is $5.00 per carton. Your total production sold is 5,000 cartons (5,000 10.0 = 500 cartons per acre) and you have an ad-ditional 1,000 cartons of unsold harvested production (1,000 10.0 = 100 cartons per acre). Your loss is in the final stage of production.Your indemnity per acre is calculated as follows:

$7,500 70% = dollar amount of insurance per acre .............................................................................................. $5,25014(c)(3) ......... 500 cartons $5.75 = value of sold production ............... ............... ................ ............... ................ ............... ...........

($10 selling price minus $4.25 allowable cost)2,875

14(c)(4) ......... 100 cartons of unsold harvested production $5 minimum value per carton ......................................................... +500Value of production to count ..................................................................................................................................... 3,375

14(b)(5) ........ Indemnity per acre = ($5,250$3,375) 100% share ............................................................................................ 1,875$1,875 10.0 acres = $18,750 indemnity payment ................................................................................................. 18,750

(c) * * *(2) * * *(i) Potential production on any fresh

market tomato acreage that has not beenharvested the required number of timesas specified in the Special Provisions.

* * * * *(3) The total value of all sold

harvested production from the insurableacreage will be the dollar amountobtained by subtracting the allowablecost contained in the Special Provisionsfrom the price received for each cartonof fresh market tomatoes in the load(this result may not be less than theminimum value shown in the SpecialProvisions for any carton of tomatoes),and multiplying this result by the

number of cartons of fresh markettomatoes harvested.

(4) The total value of all unsoldharvested production will be the dollar

amount obtained by multiplying thenumber of cartons of such tomatoes onthe unit by the minimum value shownin the Special Provisions for theplanting period. Harvested productionthat is damaged or defective due toinsurable causes and is not marketableor sold will not be counted asproduction to count.

(5) Any penhooker salvage value paidto you will be added to the total dollarvalue of production to count.

* * * * *

16. Minimum Value Option

(a) The provisions of this option arecontinuous and will be attached to andmade a part of your insurance policy, if:

(1) You elect the Minimum ValueOption on your application, or on aform approved by us, on or before thesales closing date for the initial cropyear in which you wish to insure freshmarket tomatoes (dollar plan) under thisoption, and pay the additional premiumindicated in the actuarial documents forthis optional coverage; and

(2) You have not elected coverageunder the Catastrophic Risk ProtectionEndorsement.



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(b) In lieu of the provisions containedin section 14(c)(3) of these CropProvisions, the total value of harvestedproduction will be determined asfollows:

(1) For sold harvested production, thedollar amount obtained by subtractingthe allowable cost contained in theSpecial Provisions from the price

received for each carton of fresh markettomatoes in the load (this result may not

be less than the minimum value option

price contained in the SpecialProvisions for any carton of tomatoessold), and multiplying this result by thenumber of cartons of fresh markettomatoes sold; and

(2) For unsold harvested production,the dollar amount obtained bymultiplying the number of cartons ofsuch fresh market tomatoes on the unit

by the minimum value shown in theSpecial Provisions for the plantingperiod (harvested production that is

damaged or defective due to insurablecauses and is not marketable or soldwill not be counted as production tocount).

(c) This option may be canceled byeither you or us for any succeeding cropyear by giving written notice on or

before the cancellation date preceding

the crop year for which the cancellationof this option is to be effective.

Example with Minimum Value Option: You have a 100 percent share in 10.0 acres of fresh market tomatoes. You select a 70% coverage levelof the reference maximum dollar amount of $7,500 per acre. The average price received is $6.00 per carton of tomatoes. Allowable costsare $4.25 per carton. Minimum value is $5.00 per carton. The Minimum Value Option price is $2.00 per carton. Your total production sold is5,000 cartons (5,000 10.0 = 500 cartons per acre) and you have an additional 1,000 cartons of unsold harvested production (1,000 10.0 = 100 cartons per acre of unsold marketable production). Your loss is in the final stage of production. Your indemnity per acre is cal-culated as follows:

7,500 70% = dollar amount of insurance per acre ................................................................................................ $5,25016(b)(1) ........ 500 cartons $2 = value of sold production ($6 price received minus $4.25 allowable costs = $1.75 ............. ....

$2.00 minimum value option is greater than $1.75) ............... ............... ................ ............... ................ ............... .....1,000

16(b)(2) ........ 100 cartons of unsold harvested production $5 minimum value per carton ......................................................... +500Value of production to count ..................................................................................................................................... 1,500

16(b) ............. Indemnity per acre = $5,250$1,500 = $3,750 100% share ............................................................................... 3,750$3,750 10.0 acres = $37,500 indemnity payment ................................................................................................. 37,500

* * * * *

Signed in Washington, DC, on November 7,2011.

William J. Murphy,

Manager, Federal Crop InsuranceCorporation.

[FR Doc. 201129218 Filed 111611; 8:45 am]

BILLING CODE 341008P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC110008]

RIN 0563AC35

Common Crop Insurance Regulations;Pecan Revenue Crop InsuranceProvisions

AGENCY: Federal Crop InsuranceCorporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop InsuranceCorporation (FCIC) proposes to amendthe Common Crop InsuranceRegulations, Pecan Revenue CropInsurance Provisions. The intendedeffect of this action is to provide policychanges, to clarify existing policyprovisions to better meet the needs ofinsured producers, and to reducevulnerability to program fraud, waste,and abuse. The proposed changes will

be effective for the 2013 and succeedingcrop years.

DATES: Written comments and opinionson this proposed rule will be accepteduntil close of business January 17, 2012and will be considered when the rule isto be made final.

ADDRESSES: FCIC prefers that commentsbe submitted electronically through theFederal eRulemaking Portal. You maysubmit comments, identified by DocketID No. FCIC110008, by any of thefollowing methods:

Federal eRulemaking Portal: http://www.regulations.gov.Follow theinstructions for submitting comments. Mail: Director, Product

Administration and Standards Division,Risk Management Agency, United StatesDepartment of Agriculture, P.O. Box419205, Kansas City, MO 641336205.

All comments received, including thosereceived by mail, will be posted withoutchange to http://www.regulations.gov,including any personal informationprovided, and can be accessed by thepublic. All comments must include theagency name and docket number or

Regulatory Information Number (RIN)for this rule. For detailed instructionson submitting comments and additionalinformation, see http://www.regulations.gov.If you aresubmitting comments electronicallythrough the Federal eRulemaking Portaland want to attach a document, we askthat it be in a text-based format. If youwant to attach a document that is ascanned Adobe PDF file, it must bescanned as text and not as an image,thus allowing FCIC to search and copycertain portions of your submissions.

For questions regarding attaching adocument that is a scanned Adobe PDFfile, please contact the RMA WebContent Team at (816) 8234694 or byemail at [email protected].

Privacy Act: Anyone is able to searchthe electronic form of all commentsreceived for any dockets by the name ofthe individual submitting the comment(or signing the comment, if submittedon behalf of an association, business,

labor union, etc.). You may review thecomplete User Notice and PrivacyNotice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT:Chief, Policy Administration Branch,Product Administration and StandardsDivision, Risk Management Agency,United States Department ofAgriculture, Beacon Facility, Stop 0812,Room 421, P.O. Box 419205, KansasCity, MO 641416205, telephone (816)9267730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866This rule has been determined to be

non-significant for the purposes ofExecutive Order 12866 and, therefore, ithas not been reviewed by the OMB.

Paperwork Reduction Act of 1995

Pursuant to the provisions of thePaperwork Reduction Act of 1995 (44U.S.C. chapter 35), the collections ofinformation in this rule have beenapproved by OMB under controlnumber 05630053.

http://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/mailto:[email protected]://www.regulations.gov/#!privacyNoticehttp://www.regulations.gov/#!privacyNoticehttp://www.regulations.gov/mailto:[email protected]://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/http://www.regulations.gov/#!privacyNoticehttp://www.regulations.gov/#!privacyNotice

11-17-11 fcic common crop insurance regulations;fresh market tomato (dollar plan) crop provisions

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