[Federal Register: September 26, 2007 (Volume 72, Number 186)]
[Rules and Regulations]
[Page 54519-54525]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se07-1]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
[[Page 54519]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC02
Common Crop Insurance Regulations; Fresh Market Sweet Corn Crop
Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the
Fresh Market Sweet Corn Crop Insurance Provisions to make policy
revisions that would allow expansion of the fresh market sweet corn
coverage into additional areas where the crop is produced, and will
allow coverage for fresh market sweet corn that is sold through direct
marketing. The changes will be effective for the 2008 and succeeding
crop years for all counties with a contract change date on or after the
effective date of this rule and for the 2009 and succeeding crop years
for counties with a contract change date prior to the effective date of
this rule.
DATES: Effective Date: October 26, 2007.
FOR FURTHER INFORMATION CONTACT: Linda Williams, Risk Management
Specialist, Product Management, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, Beacon Facility--Mail Stop 0812, PO Box 419205, Kansas
City, MO 64141-6205, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
rule is non-significant for the purposes of Executive Order 12866 and,
therefore, it has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Pursuant to the provisions of the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35), the collections of information in this rule
have been approved by OMB under control number 0563-0053 through
November 30, 2007.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This rule contains no Federal mandates (under the
regulatory provisions of title II of the UMRA) for State, local, and
tribal governments or the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of UMRA.
Executive Order 13132
It has been determined under section 1(a) of Executive Order 13132,
Federalism, that this rule does not have sufficient implications to
warrant consultation with the States. The provisions contained in this
rule will not have a substantial direct effect on States, or on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation. For
instance, all producers are required to submit an application and
acreage report to establish their insurance guarantees and compute
premium amounts, and all producers are required to submit a notice of
loss and production information to determine the amount of an indemnity
payment in the event of an insured cause of crop loss. Whether a
producer has 10 acres or 1000 acres, there is no difference in the kind
of information collected. To ensure crop insurance is available to
small entities, the Federal Crop Insurance Act authorizes FCIC to waive
collection of administrative fees from limited resource farmers. FCIC
believes this waiver helps to ensure that small entities are given the
same opportunities as large entities to manage their risks through the
use of crop insurance. A Regulatory Flexibility Analysis has not been
prepared since this regulation does not have an impact on small
entities, and, therefore, this regulation is exempt from the provisions
of the Regulatory Flexibility Act (5 U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This final rule has been reviewed in accordance with Executive
Order 12988 on civil justice reform. The provisions of this rule will
not have a retroactive effect. The provisions of this rule will preempt
State and local laws to the extent such State and local laws are
inconsistent herewith. With respect to any direct action taken by FCIC
or to require the insurance provider to take specific action under the
terms of the crop insurance policy, the administrative appeal
provisions published at 7 CFR part 11 must be exhausted before any
action against FCIC for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, or safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
[[Page 54520]]
Background
On Friday, July 28, 2006, FCIC published a notice of proposed
rulemaking in the Federal Register at 71 FR 42770-42775 to amend Sec.
457.129 Fresh Market Sweet Corn Crop Insurance Provisions. The intended
effect of the action is to provide policy changes to allow for the
expansion of fresh market sweet corn coverage into additional areas
where the crop is produced and to allow coverage for fresh market sweet
corn when it is marketed through direct marketing. The changes will be
effective for the 2008 and succeeding crop years for all counties with
a contract change date on or after November 30, 2007. The public was
afforded 60 days to submit written comments and opinions.
A total of 66 comments were received from 3 commenters. The
commenters were an insurance service organization and two approved
insurance providers. The comments received and FCIC's responses are as
follows:
Comment: Two commenters stated the definition of ``allowable cost''
may vary by region as is shown in the Special Provisions. For example,
the Special Provisions in Adams County, Colorado states ``* * *
harvesting, grading, packing containers, hauling and selling'' * * *,
while the Broward County, Florida Special Provisions has ``* * *
picking, grading, packing containers, hauling and selling * * *''. The
commenters indicated the definition could be beneficial in the Crop
Provisions, especially if the intent is to move more of the common
details from the Special Provisions to this definition.
Response: The definition will be beneficial to allow producers to
see the types of costs that are considered allowable costs. However,
the specifics must still be contained in the Special Provisions because
the costs associated with harvesting fresh market sweet corn vary by
region and because terminology also varies by region. The definition
has been retained in the final rule.
Comment: Two commenters stated in the definition of ``allowable
cost'' it is allowed to deduct ``any additional charges specified in
the Special Provisions.'' They questioned how the average net value is
determined when only some of the containers incurred additional charges
such as cooling charges.
Response: The commenter is correct that not all harvested sweet
corn production incurs additional charges such as cooling charges.
However, although the average net value per container is used, the net
value is established for each container. Therefore, some containers
will have the additional costs subtracted and others will not. Once the
net values are all totaled and divided by the total number of
containers sold, the result should be approximately the same.
Comment: Three commenters stated the definition of ``crop year'' is
confusing for a county that has only a spring planted practice. They
questioned when the crop year begins for such a practice.
Response: The commenter is correct that the definition of ``crop
year'' fails to address those counties where there may only be a spring
planting practice. While no change was proposed for the definition of
``crop year,'' FCIC has revised the definition to clarify the crop year
for counties where there is only a spring planting practice.
Comment: Three commenters found the definition of ``minimum value''
to be useful in the Crop Provisions but questioned if each reference of
``minimum value'' should be followed by the term ``contained in the
actuarial documents'' as the term is contained in the definition.
Response: The commenter is correct that the term ``contained in the
actuarial documents'' is not needed when referencing the ``minimum
value'' since the definition of ``minimum value'' specifies where it
can be found, and FCIC has removed the term accordingly. FCIC has also
revised the definition to state the amount can be found in the Special
Provisions since this is the specific document where the information
will be contained.
Comment: All of the commenters stated it would be more appropriate
to revise the term ``net value per container'' to ``average net value
per container'' as that is how the term is used in the Crop Provisions.
The commenters also questioned why the proposed rule stated a net value
for each container would never be calculated as it would be a complex
and time consuming process. The commenters suggested if the definition
is not applicable to direct marketing, it should be clearly noted as
such.
Response: The commenter is correct that the term used is ``average
net value per container.'' However, since the term ``net value'' is
used in the term ``average net value per container,'' it is appropriate
to also define this term and FCIC has revised the definition
accordingly. FCIC has also added a definition of ``average net value
per container'' to specify it is a dollar amount obtained by totaling
the net value of all containers sold and dividing this total by the
number of containers of all sweet corn production sold. It would be
cumbersome, time consuming, and create vulnerabilities to list and
itemize on the worksheet each and every individual container of sweet
corn and subtract from each the allowable cost. Further, the difference
in the results from using the average versus the individual net values
is not significant.
Comment: Two commenters suggested while revising the definition of
``practical to replant'' was not in the proposed rule, it may be a good
time to revise the provisions so that it is consistent with other Crop
Provisions. The comments suggested removing the phrase `` In lieu of
the definition of `Practical to Replant' contained in section 1 of the
Basic Provisions, practical to replant is defined as * * *'' and
replacing it with ``In lieu of the definition contained in section 1 of
the Basic Provisions, our determination * * *
Response: While no changes were proposed to the definition of
``practical to replant,'' the recommended changes are not substantive
in nature and will make the provision more readable. Therefore, FCIC
has revised the definition accordingly.
Comment: Two commenters suggested removing the comma after ``Basic
Provisions'' contained in section 3(c).
Response: While no changes were proposed to the definition of
``practical to replant,'' the recommended changes are not substantive
in nature and will make the provision more readable. Therefore, FCIC
has revised the definition accordingly.
Comment: Two commenters suggested section 3(d) be revised from ``*
* * one of the most recent three crop years'' to ``* * * one of the
three most recent crop years.''
Response: FCIC has made the change accordingly.
Comment: Three commenters expressed concern with the text in
section 3(f) ``will be deemed to have been destroyed.'' They each
stated the language is contained in several other Crop Provisions and
have been advised the term means that no production will be counted
against such acreage and would hold true if such acreage was later
harvested. They believed this is a conflict with section 14(c)(3) of
these Crop Provisions which states ``The value of all harvested
production of sweet corn from the insurable acreage'' is included as
the total value of production to count for the unit. This would also
apply to the amount of appraised production determined during an
appraisal for unharvested acreage. The commenters recommended the text
be revised and clarified so that all parties understand the provision
[[Page 54521]]
with the same meaning. Two of the commenters suggested in section 3(f)
to add a comma in front of ``to the extent * * *'' and revise the
phrase ``even though'' to ``even if.''
Response: The purpose of proposed section 3(f) is to limit the
liability for any acreage of sweet corn that is damaged in the first
stage. If the producer's sweet corn, as well as other sweet corn
acreage in the area, is damaged in the first stage to the extent most
producers would not provide further care for their sweet corn, the
indemnity payable for the insured producer's sweet corn acreage will be
based on the amount of insurance for the first stage. This will make
the provision consistent with section 14(c) of the Crop Provisions, and
allow the damaged sweet corn to be appraised to determine the value of
production to count for such acreage. At that time the insured must
either agree or not agree with the appraised potential production. If
such an agreement is not reached, in accordance with section 14(c)(2),
insurance will continue until the crop is harvested; however, any
indemnity will be paid based on an amount of insurance for the first
stage. FCIC has revised section 3(f) to clarify the provisions and
remove reference to ``deemed to be destroyed''. FCIC will clarify all
other Crop Provisions containing this language when proposed revisions
are made.
Comment: One commenter stated section 4 should be revised to move
the contract change date for all counties in Georgia to November 30.
Response: FCIC did not include any revisions to section 4 in the
proposed rule, the recommended change is substantive in nature, and the
public was not provided an opportunity to comment. Therefore, no change
will be made.
Comment: One commenter requested the cancellation and termination
dates contained in section 5 for all counties in Georgia be moved to
February 15. If the change is made, the sales closing date for all
Georgia counties must also be changed to February 15 and the fall
planting period for Georgia should be moved to the end of the crop year
rather than have the crop year begin with the fall planting period.
Response: The impact of moving the fall planting period to the end
of the crop year would be a major change and would affect multiple
processes including actuarial, data and financial accounting systems.
Since no changes to section 5 were proposed, the recommended change is
substantive in nature, and the public was not provided an opportunity
to comment on the recommended changes, the recommendations cannot be
incorporated in the final rule. No change has been made.
Comment: Two commenters stated they agreed with the provisions
contained in section 8(c) that will allow coverage for direct marketed
sweet corn as long as the necessary procedures are in place for
determining and documenting the amount of production to count.
Response: When direct marketing is allowed by the Special
Provisions or by written agreement, producers will be required to
provide a 15-day notice before harvest begins so insurance providers
may conduct an appraisal of the sweet corn in accordance with section
13. If notice is not provided, section 13(c) specifically states such
failure ``* * * will result in an appraised amount of production to
count of not less than the dollar amount of insurance (per acre) * *
*'' An appraisal of the sweet corn and/or any acceptable records of
harvest will be used to compute the value of production to count. As
with other crops that allow insurance for direct marketing, FCIC
approved loss adjustment procedures will provide the requirements for
documenting production that is sold by direct market.
Comment: Two commenters suggested deleting the ``If'' at the
beginning of section 9(a)(3) because the redesignated (a) now ends with
the word ``if:'' They also thought it might read better if the two
phrases in section 9(a)(3) were reversed to ``The final day of the
planting period has not passed at the time the crop was damaged.''
Response: FCIC agrees with the commenters and has revised section
9(a)(3).
Comment: Two commenters suggested section 9(b) should contain
language to specify the crop is damaged in order to lead in to
provisions 9(b)(1) and (2). The commenters asked what would happen if
the crop is damaged towards the end of the planting period and moisture
that came with the storm would not allow the acreage to dry out to be
replanted until after the final planting date for the planting period.
They asked if this situation would require the crop be replanted per
the provisions contained in section 9(a) assuming it is still
practical, or would the insured have the option as indicated in
provisions 9(b).
Response: It is unnecessary for section 9(b) to specify damage to
the crop has occurred. The definition of ``practical to replant''
contained in these Crop Provisions specifically states there must be
``loss or damage to the insured crop * * *'' With respect to the
commenters' question as to which of the provisions would be applicable
when excess moisture occurs at the end of one planting period and the
acreage cannot be replanted until after the final planting date,
section 9(b) would apply provided that the acreage is located in a
county that has fall or winter planting periods. If only spring planted
sweet corn is insured in the county, the three criteria contained in
section 9(a) must be applicable to determine if the acreage should be
replanted.
Comment: Two commenters recommend section 11(a)(2) be revised to
clarify fire as a cause of loss must be due to natural causes.
Response: In addition to the Fresh Market Sweet Corn Crop
Provisions, the Common Crop Insurance Policy, Basic Provisions are
applicable for sweet corn. Section 12 of the Basic Provisions states
all specified causes of loss must be due to a naturally occurring
event. Adding the suggested language could be redundant and could cause
confusion by suggesting that the other listed causes of loss do not
have to be due to natural causes. Therefore, no change has been made.
Comment: Two commenters suggested removing from section 11(b)(2),
the phrase ``that occurs during the insurance period'' as it is already
contained in section 11(a).
Response: FCIC has made the change accordingly.
Comment: Two commenters suggested the replant provisions contained
in section 12 should be revised to align with proposed changes in the
Basic Provisions.
Response: Since the final rule has not been published for the Basic
Provisions and FCIC is still reviewing all comments, it would be
premature to make any changes to the replant provisions. Once the Basic
Provisions final rule is published, FCIC will determine whether
conforming changes need to be made in the Fresh Market Sweet Corn Crop
Provisions. No change has been made.
Comment: According to three commenters, section 13(a)(3) references
the calendar date for the end of the insurance period; however, the
closest thing to a calendar date is section 10(f) which states ``100
days after the date of planting or replanting * * * ''
Response: Growing conditions are not the same in all areas where
sweet corn is grown. Therefore, it is not possible to provide a single
calendar date to end the insurance period. Instead, FCIC revised
section 10 to allow the end of the insurance period to be either 100
days after planting or replanting, or a specified date contained in the
Special
[[Page 54522]]
Provisions. If a specific calendar date is not provided in the Special
Provisions, insurance providers can still determine the calendar date
by calculating the date that is 100 days after the producer reports the
crop was planted or replanted. No change has been made.
Comment: Two commenters stated it would be costly for insurance
providers to conduct a pre-harvest appraisal as required in section
13(b) for all direct marketed policies that are in a loss situation.
They asked if there was a better way to handle these situations.
Another commenter questioned why the proposed rule contained language
requiring production records from producers as the sweet corn crop
insurance program is not based on producer's actual production history
(APH). The commenter indicated insurance providers cannot assume the
list of record types and requirements contained in the Crop Insurance
Handbook are acceptable since the list is for APH based crops.
Response: Without appraising the sweet corn crop before it is sold
by direct market there is no way to adequately determine if the value
or amount of production was accurately reported because there are no
independent sources to verify production associated with direct market
sales. If the commenter knows of another way to accurately determine
the production, FCIC is willing to consider it for any future
rulemaking. FCIC approved loss adjustment procedures will be updated to
provide guidelines in what types production records can be used to
verify harvested production that is sold by direct marketing. No
changes have been made.
Comment: Two commenters suggested section 14(b)(3) should be
consistent with other steps in the claim for indemnity calculation and
should be changed from ``total the results * * *'' to ``Totaling the
results * * *''
Response: Although no changes were proposed, the recommended change
is not significant and would make the provisions read more
consistently.
Comment: Three commenters indicated in the example of a claim for
indemnity contained in section 14(b)(5), there is no production to
count for the 15.0 acres of Stage 1 acreage. They stated it gives the
reader the impression no production will ever be assessed for acreage
damaged in Stage 1. If this is the case, then why are there appraisal
procedures for sweet corn acreage in Stage 1, and why under section
14(c) must insurance providers account for potential production when
agreement is established on the appraised amount of production? They
asked whether the agreed amount will always be zero.
Response: FCIC did not intend for the example of a claim for
indemnity to imply sweet corn acreage damaged in Stage 1 will always be
zero production to count. As provided in section 14(c), the value of
all potential production and harvested production will be used to
determine the amount of the indemnity. FCIC has revised the example
contained in section 14(b) to clarify the 15.0 acre field was destroyed
by flood and the appraisals determined that there was no potential
production to count.
Comment: One commenter stated the language in section 14(c)(2) was
confusing. While it appeared the intent or meaning of the sentence did
not change, the sentence does not read well as altered.
Response: FCIC has rephrased the language in section 14(c)(2).
Comment: A commenter indicated the final sentence in section
14(c)(3)(ii) which states ``Harvest production that is damaged [* * *]
will not be counted as production to count unless such production is
sold'' needs further clarification. The commenter stated some insured
producers who cannot market the corn as fresh market sweet corn will
sell it as chopped/silage, and in this case, the crop was sold but was
not sold as fresh market sweet corn.
Response: The language in section 14(c)(3)(ii) pertains to
harvested marketable sweet corn production that is not sold and
unmarketable production that is later sold. Section 1 of these Crop
Provisions defines ``marketable sweet corn'' as ``Sweet corn that is
sold or grades U.S. No. 1 or better in accordance with the requirements
of the United States Standards for Grades of Sweet Corn.'' There is
nothing in the definition that requires the sweet corn to be sold as
fresh market sweet corn before being considered marketable. This means
that production that was previously unmarketable due to damage is
considered marketable if it is sold and, even though it was sold for
use other than fresh market sweet corn, it counts as production to
count in accordance with section 14(c)(3)(ii). No change has been made.
Comment: Three commenters stated section 14(c)(4) is the only
reference in the Settlement of Claim to direct marketed production, it
gives the impression it is the only method by which direct marketed
production will be accounted for and valued. The provision does not
give any regard to the requirement that if any acreage will be direct
marketed, such acreage will be appraised and such appraised production
and any acceptable records will be used to value the amount of
production. The commenters questioned why this is a change from current
Special Provision statements which specifies the value of production to
count that is sold by direct marketing will be the greater of the
actual value or the provisions contained in section 14(c)(2). The
commenters asked why the Crop Provisions do not allow for the deduction
of allowable costs for production that is sold by direct marketing when
the Strawberry Crop Provisions do allow the deduction.
Response: Regarding the omission in section 14(c)(4) of provisions
concerning appraised potential production for direct marketed
production, FCIC has revised the provisions to specify the total value
of production sold by direct marketing will be the greater of the
actual value received, or dollar amount obtained by multiplying the
total number of containers of appraised sweet corn that is sold by
direct marketing by the minimum value. The strawberry crop insurance
program is a pilot program administered by FCIC. Strawberries are
unique from other crops since strawberries that are sold by direct
marketing or through brokers must be packed in containers. Fresh market
sweet corn sold by direct marketing does not have a packing standard
like strawberries and in most cases, direct marketed sweet corn
production does not incur many of the costs of harvesting, such as
grading and packing containers.
Comment: Two commenters did not agree with the proposed language
contained in section 16(b)(1) to average the net value of all
containers sold and then apply the minimum value. The commenter did not
agree with the approach and recommended the minimum value be applied to
the net value of each container sold individually.
Response: While the commenters suggested a change to the proposed
language contained in section 16, no information was provided to
support why such change should be made in calculating the value of
harvested production. As stated above, it would be time consuming and
burdensome to calculate the net value for each container separately.
FCIC has determined that using the average net values will still
provide the appropriate value for the containers. No change has been
made.
List of Subjects in 7 CFR Part 457
Crop insurance, Fresh market sweet corn, Reporting and
recordkeeping requirements.
[[Page 54523]]
Final Rule
0
Accordingly, as set forth in the preamble, the Federal Crop Insurance
Corporation amends 7 CFR part 457 for the 2008 and succeeding crop
years as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
0
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
0
2. Amend 457.129 as follows:
0
A. Revise the introductory text.
0
B. Remove the paragraph regarding priority preceding section 1.
0
C. Remove the reference of ``(Sec. 457.8)'' from the definitions of
``Crop year,'' and ``Practical to replant'' in section 1; and from
sections 3(a), 3(c), 4, 5, 6, 7, 8, 9(a), 9(b), 10, 11(a), 11(b),
12(a), 12(c), and 13.
0
D. Remove the reference to ``fresh market'' where it appears in the
definition of ``planting period'' in section 1, and section 16(a)(1).
0
E. Add definitions in section 1 for ``allowable cost,'' ``amount of
insurance (per acre),'' ``average net value per container,'' ``minimum
value,'' and ``net value;'' remove the definitions of ``excess rain,''
``excess wind,'' and ``freeze;'' and revise the definitions of
``container,'' ``crop year,'' ``harvest,'' ``marketable sweet corn,''
and ``practical to replant.''
0
F. Revise section 2.
0
G. Amend section 3(a) by removing the phrase ``(Insurance Guarantees,
Coverage Levels, and Prices for Determining Indemnities)''.
0
H. Revise section 3(c).
0
I. Redesignate section 3 paragraphs (d) and (e) as paragraphs (e) and
(f), add a new paragraph (d), and revise newly redesignated paragraph
(f).
0
J. Amend section 4 by removing the phrase ``(Contract Changes)''.
0
K. Amend section 5 by removing the phrase ``(Life of Policy,
Cancellation, and Termination)''.
0
L. Amend section 6 by removing the phrase ``(Report of Acreage)''.
0
M. Amend section 7 by removing the phrase ``(Annual Premium)''.
0
N. Amend the introductory text of section 8 by removing the phrase
``(Insured Crop)''.
0
O. Revise section 8(c)(3).
0
P. Revise section 9.
0
Q. Amend the introductory text in section 10 by removing the phrase
``(Insurance Period)''.
0
R. Revise section 10(f).
0
S. Revise section 11.
0
T. Amend sections 12(a) and (c) by removing the phrase ``(Replanting
Payment)''.
0
U. Revise section 13.
0
V. Amend section 14(b)(2) by removing the phrase ``(see section
3(d))'', and adding in its place ``(see section 3(e))''.
0
W. Amend section 14(b)(3) by removing the words ``Total the'' and
adding in its place ``Totaling the'';
0
X. In section 14, revise paragraphs (b)(4)(ii), (b)(5), (c)(1)(iii),
(c)(1)(iv), (c)(2) introductory text, (c)(2)(i), and (c)(3). Add new
paragraphs (c)(1)(v), (c)(4), and add an example immediately following
paragraph (b)(5).
0
Y. In section 16, revise paragraph (b); redesignate current paragraph
(c) as (d), and add a new paragraph (c).
The revisions and additions to Sec. 457.129 read as follows:
Sec. 457.129 Fresh market sweet corn crop insurance provisions.
The fresh market sweet corn crop insurance provisions for the 2008
and succeeding crop years for all counties with a contract change date
on or after the effective date of this rule and for the 2009 and
succeeding crop years for all counties with a contract change date
prior to the effective date of this rule, as follows:
* * * * *
1. Definitions
Allowable cost. The dollar amount per container for harvesting,
packing, and handling as shown in the Special Provisions.
Amount of insurance (per acre). The dollar amount of coverage per
acre obtained by multiplying the reference maximum dollar amount shown
on the actuarial documents by the coverage level percentage you elect.
Average net value per container. The dollar amount obtained by
totaling the net values of all containers of sweet corn sold and
dividing the result by the total number of containers of all sweet corn
sold.
Container. The unit of measurement for the insured crop as
specified in the Special Provisions.
Crop year. In lieu of the definition of ``crop year'' contained in
section 1 of the Basic Provisions, for counties with fall, winter, and
spring planting periods or counties with fall and spring planting
periods, the period of time that begins on the first day of the
earliest planting period for fall planted sweet corn and continues
through the last day of the insurance period for spring planted sweet
corn. For counties with only spring planting periods, the period of
time that begins on the earliest planting period for spring planted
sweet corn and continues through the last day of the insurance period
for spring planted sweet corn. The crop year is designated by the
calendar year in which spring planted sweet corn is harvested.
* * * * *
Harvest. Separation of ears of sweet corn from the plant by hand or
machine.
Marketable sweet corn. Sweet corn that is sold for any purpose or
grades U.S. No. 1 or better in accordance with the requirements of the
United States Standards for Grades of Sweet Corn.
Minimum value. The dollar amount per container shown in the Special
Provisions we will use to value marketable production to count.
Net value. The dollar value of packed and sold sweet corn obtained
by subtracting the allowable cost and any additional charges specified
in the Special Provisions from the gross value per container of sweet
corn sold. This result may not be less than zero.
* * * * *
Practical to replant--In lieu of the definition in section 1 of the
Basic Provisions, our determination, after loss or damage to the
insured crop, based on factors, including but not limited to moisture
availability, condition of the field, marketing windows, and time to
crop maturity, that replanting to the insured crop will allow the crop
to attain maturity prior to the calendar date for the end of the
insurance period (inability to obtain seed will not be considered when
determining if it is practical to replant).
* * * * *
2. Unit Division
A basic unit, as defined in section 1 of the Basic Provisions, will
also be established for each planting period.
3. Amounts of Insurance and Production Stages
* * * * *
(c) The production reporting requirements contained in section 3 of
the Basic Provisions do not apply to sweet corn.
(d) If specified in the Special Provisions, we will limit your
amount of insurance per acre if you have not produced the minimum
amount of production of sweet corn contained in the Special Provisions
in at least one of the three most recent crop years.
* * * * *
(f) The indemnity payable for any acreage of sweet corn will be
based on the stage the plants had achieved when damage occurred. Any
acreage of sweet corn damaged in the first stage to the extent that the
majority of producers in the area would not normally further care for
it will have an amount of insurance based on the first stage for the
purposes
[[Page 54524]]
of establishing an indemnity even if you continue to care for the
damaged sweet corn.
* * * * *
8. Insured Crop
* * * * *
(c) * * *
(3) Grown for direct marketing, unless otherwise provided in the
Special Provisions or by written agreement.
9. Insurable Acreage
In addition to the provisions of section 9 of the Basic Provisions
any acreage of sweet corn damaged during the planting period in which
initial planting took place:
(a) Must be replanted if:
(1) Less than 75 percent of the plant stand remains;
(2) It is practical to replant; and
(3) The final day of the planting period has not passed at the time
the crop was damaged.
(b) Whenever sweet corn is initially planted during the fall or
winter planting periods and the final planting date for the planting
period has passed, but it is considered practical to replant, you may
elect:
(1) To replant such acreage and collect any replant payment due as
specified in section 12. The initial planting period coverage will
continue for such replanted acreage; or
(2) Not to replant such acreage and receive an indemnity based on
the stage of growth the plants had attained at the time of damage.
However, such an election will result in the acreage being uninsurable
in the subsequent planting period.
10. Insurance Period
* * * * *
(f) 100 days after the date of planting or replanting, unless
otherwise provided in the Special Provisions.
11. Causes of Loss
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Wildlife;
(4) Volcanic eruption;
(5) Earthquake;
(6) Insects, but not damage due to insufficient or improper
application of pest control measures;
(7) Plant disease, but not damage due to insufficient or improper
application of disease control measures; or
(8) Failure of the irrigation water supply, if caused by an insured
cause of loss that occurs during the insurance period.
(b) In addition to the causes of loss excluded in section 12 of the
Basic Provisions, we will not insure against damage or loss due to:
(1) Failure to harvest in a timely manner unless harvest is
prevented by one of the insurable causes of loss specified in section
11(a); or
(2) Failure to market the sweet corn unless such failure is due to
actual physical damage caused by an insured cause of loss as specified
in section 11(a). For example, we will not pay you an indemnity if you
are unable to market due to quarantine, boycott, or refusal of any
person to accept production.
* * * * *
13. Duties in the Event of Damage or Loss
In addition to the requirements contained in section 14 of the
Basic Provisions, if you intend to claim an indemnity on any unit:
(a) You also must give us notice not later than 72 hours after the
earliest of:
(1) The time you discontinue harvest of any acreage on the unit;
(2) The date harvest normally would start if any acreage on the
unit will not be harvested; or
(3) The calendar date for the end of the insurance period.
(b) If insurance is permitted by the Special Provisions or by
written agreement on acreage with production that will be sold by
direct marketing, you must notify us at least 15 days before any
production from any unit will be sold by direct marketing. We will
conduct an appraisal that will be used to determine the value of your
production to count for production that is sold by direct marketing. If
damage occurs after this appraisal, we will conduct an additional
appraisal if you notify us that additional damage has occurred. These
appraisals, and/or any acceptable production records provided by you,
will be used to determine the value of your production to count.
(c) Failure to give timely notice that production will be sold by
direct marketing will result in an appraised amount of production to
count of not less than the dollar amount of insurance (per acre) for
the applicable stage if such failure results in our inability to
accurately determine the value of production.
14. Settlement of Claim
* * * * *
(b) * * *
(4) * * *
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to be counted (see section
14(c)) by fifty-five percent; and
(5) Multiplying the result of section 14(b)(4) by your share.
------------------------------------------------------------------------
-------------------------------------------------------------------------
For example:
You have a 100 percent share in 65.3 acres of fresh market sweet
corn in the unit (15.0 acres in stage 1 and 50.3 acres in the final
stage), with a dollar amount of insurance of $600 per acre. The
15.0 acre field was damaged by flood and appraisals of the crop
determined there was no potential production to be counted. From
the 50.3 acre field, you are only able to harvest 5,627 containers
of sweet corn. The net value of all sweet corn production sold
($3.11 per container) is greater than the Minimum Value per
container ($2.50). The 5,627 containers sold x $3.11 average net
value per container = $17,500 value of your production to count.
Your indemnity would be calculated as follows:
1 15.0 acres x $600 amount of insurance = $9,000 and
50.3 acres x $600 amount of insurance = $30,180;
2 $9,000 x .65 (percent for stage 1) = $5,850 and
$30,180 x 1.00 (percent for final stage) = $30,180;
3 $5,850 + $30,180 = $36,030 amount of insurance for the unit;
4 $36,030-$17,500 value of production to count = $18,530 loss;
5 $18,530 x 100 percent share = $18,530 indemnity payment.
------------------------------------------------------------------------
(c) * * *
(1) * * *
(iii) That is damaged solely by uninsured causes;
(iv) For which you fail to provide acceptable production records;
or
(v) From which insurable production is sold by direct marketing and
you fail
[[Page 54525]]
to meet the requirements contained in section 13(b) of these Crop
Provisions;
(2) The value of the following appraised sweet corn production will
not be less than the dollar amount obtained by multiplying the number
of containers of appraised sweet corn by the minimum value for the
planting period:
(i) Unharvested marketable sweet corn production (unharvested
production that is damaged or defective due to insurable causes and is
not marketable will not be counted as production to count unless such
production is later harvested and sold for any purpose);
* * * * *
(3) The value of all harvested production of sweet corn from the
insurable acreage, except production that is sold by direct marketing
as specified in section (c)(4) below:
(i) For sold production, will be the greater of:
(A) The dollar amount obtained by multiplying the total number of
containers of sweet corn sold by the minimum value; or
(B) The dollar amount obtained by multiplying the average net value
per container from all sweet corn sold by the total number of all
containers of sweet corn sold.
(ii) For marketable sweet corn production that is not sold, will be
the dollar amount obtained by multiplying the number of containers of
such sweet corn by the minimum value for the planting period. Harvested
production that is damaged or defective due to insurable causes and is
not marketable will not be counted as production to count unless such
production is sold.
(4) If all the requirements of insurability are met, the value of
insurable production that is sold by direct marketing will be the
greater of:
(i) The actual value received by you for direct marketed
production; or
(ii) The dollar amount obtained by multiplying the total number of
containers of appraised sweet corn sold by direct marketing by the
minimum value.
* * * * *
16. Minimum Value Option
* * * * *
(b) In lieu of the provisions contained in section 14(c)(3) of
these Crop Provisions, the total value of harvested production that is
not sold by direct marketing will be determined as follows:
(1) The dollar amount obtained by multiplying the average net value
per container from all sweet corn sold by the total number of all
containers of sweet corn sold (this result may not be less than the
minimum value option amount shown in the actuarial documents);
(2) For marketable sweet corn production that is not sold, the
value of such production will be the dollar amount obtained by
multiplying the total number of containers of such sweet corn by the
minimum value for the planting period. Harvested production that is
damaged or defective due to insurable causes and is not marketable will
not be included as production to count.
(c) If all the requirements of insurability are met, the value of
insurable production that is sold by direct marketing will be the
greater of:
(1) The actual value received by you for direct marketed
production; or
(2) The dollar amount obtained by multiplying the total number of
containers of sweet corn sold by direct marketing by the minimum value.
* * * * *
Signed in Washington, DC, on September 12, 2007.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E7-18781 Filed 9-25-07; 8:45 am]
BILLING CODE 3410-08-P