[Federal Register Volume 76, Number 140 (Thursday, July 21, 2011)]
[Proposed Rules]
[Pages 43606-43610]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18053]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 76, No. 140 / Thursday, July 21, 2011 / 
Proposed Rules

[[Page 43606]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC-11-0004]
RIN 0563-AC29


Common Crop Insurance Regulations; Onion Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations, Onion Crop Insurance 
Provisions. The intended effect of this action is to provide policy 
changes, to clarify existing policy provisions to better meet the needs 
of insured producers, and to reduce vulnerability to program fraud, 
waste, and abuse. The proposed changes will be effective for the 2013 
and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business September 19, 2011 and will be 
considered when the rule is to be made final.

ADDRESSES: FCIC prefers that comments be submitted electronically 
through the Federal eRulemaking Portal. You may submit comments, 
identified by Docket ID No. FCIC-11-0004, by any of the following 
methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
    All comments received, including those received by mail, will be 
posted without change to http://www.regulations.gov, including any 
personal information provided, and can be accessed by the public. All 
comments must include the agency name and docket number or Regulatory 
Information Number (RIN) for this rule. For detailed instructions on 
submitting comments and additional information, see http://www.regulations.gov. If you are submitting comments electronically 
through the Federal eRulemaking Portal and want to attach a document, 
we ask that it be in a text-based format. If you want to attach a 
document that is a scanned Adobe PDF file, it must be scanned as text 
and not as an image, thus allowing FCIC to search and copy certain 
portions of your submission. For questions regarding attaching a 
document that is a scanned Adobe PDF file, please contact the RMA Web 
Content Team at (816) 823-4694 or by e-mail at 
rmaweb.content@rma.usda.gov.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the 
complete User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT: Director, Product Administration and 
Standards Division, Risk Management Agency, United States Department of 
Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205, 
Kansas City, MO 64141-6205, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be non-significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the Office of Management and Budget.

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.

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.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this regulation will not have 
substantial and direct effects on Tribal governments and will not have 
significant Tribal implications.

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

[[Page 43607]]

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 proposed 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 or 7 CFR part 400, subpart J for 
the informal administrative review process of good farming practices as 
applicable, 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.

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by revising Sec.  457.135, Onion Crop Insurance Provisions, 
to be effective for the 2013 and succeeding crop years. Several 
requests have been made for changes to improve the insurance coverage 
offered, address program integrity issues, simplify program 
administration, and improve clarity of the policy provisions.
    The proposed changes are as follows:
    1. FCIC proposes to remove all section titles of the Basic 
Provisions. This information is currently contained in parenthesis 
following references to section numbers of the Basic Provisions 
throughout the Crop Provisions.
    2. Section 1--FCIC proposes to revise the definitions of ``direct 
seeded'' and ``transplanted'' by adding the phrase ``onions planted 
by'' to the beginning of both definitions. This revision will further 
clarify that these terms are a planting method.
    FCIC proposes to revise the definition of ``non-storage onions'' by 
removing the term generally in both places it is used, since this term 
is vague and ambiguous. The characteristics listed are those considered 
for non-storage onions.
    FCIC proposes to revise the definition of ``onion production'' by 
removing the language regarding recoverable size and condition, since 
these terms are vague and ambiguous.
    FCIC proposes to add the definitions of ``processor'' and 
``processor contract'' because the terms are used in the definition of 
``storage onions.''
    FCIC proposes to revise paragraph (a) of the definition of 
``production guarantee (per acre)'' by changing the first stage 
production guarantee for direct seeded and transplanted storage and 
non-storage onions from thirty-five percent to forty-five percent of 
the final stage production guarantee. The Special Provisions already 
establish a higher first stage production guarantee for most onion 
producing areas. Also, a contracted onion crop insurance evaluation 
found that a first stage loss incurs more production costs than a 
prevented planting loss and, therefore, should have a higher production 
guarantee compared to prevented planting. This change will coincide 
with the lowering of the prevented planting guarantee in section 15 
from forty-five percent to thirty-five percent of the final stage 
guarantee. FCIC also proposes to revise paragraph (b) by adding ``60%'' 
in parenthesis following the written phrase ``60 percent'' for 
consistency.
    FCIC proposes to add the definition ``sets'' to specify they are 
onion bulbs that are planted by hand or by machine.
    FCIC proposes to revise the definition of ``storage onions'' by 
removing the terms generally and normally, since these terms are vague 
and ambiguous. The characteristics listed are those considered for 
storage onions. The definition is also being revised to include 
varieties grown for a processor under the requirements of a processor 
contract.
    FCIC proposes to revise the definition of ``topping'' by replacing 
the term ``bent over'' with the term ``broken.''
    FCIC proposes to remove the definition of ``type'' as onion types 
will be designated in the Special Provisions.
    3. Section 2--FCIC proposes to revise section 2 by removing the 
language indicating section 2 is to be used in place of the provisions 
regarding establishing optional units in section 34 of the Basic 
Provisions. The provisions in section 2 of the Onion Crop Provisions 
are to be used in addition to the provisions in section 34 of the Basic 
Provisions.
    4. Section 3--FCIC proposes to revise section 3(b)(2) to add 
language consistent with section 3(b)(1) designating the end of the 
second stage production guarantee. The first stage ends at the 
emergence of the fourth leaf for direct seeded or 30 days after 
planting for transplanted, and the second stage ends when the onions 
are eligible for the final stage. This makes the second stage 
consistent with the first and final stage production guarantees.
    FCIC proposes to revise section 3(b)(3) by deleting duplicative 
language that provides the calculation for ``production guarantee (per 
acre)'' that is already contained in paragraph (c) of the definition in 
section 1.
    FCIC proposes to revise section 3(c) to clarify that the production 
guarantee, for indemnity purposes, will be based on the stage in which 
damage occurred for any acreage of onions damaged in the first or 
second stage when a majority of producers in the area would not 
normally continue to care for the crop, even if the producer elects to 
continue such care. FCIC also proposes to delete the phrase ``deemed to 
be destroyed'' to clarify that if the producer continues to care for 
the damaged onion acreage, then any later appraised unharvested 
production or harvested production will be used as production to count.
    5. Section 4--FCIC proposes to revise this section to list the 
contract change dates because it has added coverage to more states, 
which have different contract change dates based on the cancellation 
and termination dates. FCIC also proposes to add language that other 
contract change dates may be designated in the Special Provisions.
    6. Section 5--FCIC proposes to add language to the introductory 
text to allow other or changes to the cancellation and termination 
dates if designated in the Special Provisions.
    FCIC proposes to add Arizona to the states with a cancellation and 
termination date of August 31.

[[Page 43608]]

    FCIC proposes to add the cancellation date of September 30 and 
termination date of November 30 for Hawaii.
    FCIC proposes to add the cancellation and termination date of 
November 30 for all California counties except Lassen, Modoc, Shasta 
and Siskiyou.
    7. Section 6--FCIC proposes to add a new section 6 to require the 
producer to provide a copy of all processor contracts by the acreage 
reporting date, if the Special Provisions specify a processor contract 
is required to insure processing onions. This is consistent with other 
Crop Provisions in regards to processing crops.
    8. Redesignated section 8--FCIC proposes to revise the introductory 
text in redesignated section 8 to include shallots on the list of 
onions that are excluded as an insured crop, since shallots are not 
insurable under these Crop Provisions.
    9. Redesignated section 10--FCIC proposes to revise redesignated 
section 10(b) by adding language that the provisions in 10(b) are to be 
used in accordance with the provisions in section 11 of the Basic 
Provisions.
    FCIC proposes to revise redesignated section 10(b)(1) by 
redesignating section 10(b)(1)(i) as 10(b)(1)(ii) and adding a new 
section 10(b)(1)(i) for the end of insurance date of May 20 for 1015 
Super Sweets, and any other non-storage onions in Cameron, Hidalgo, 
Starr, and Willacy Counties, Texas; adding a new section 10(b)(1)(iii) 
to specify the end of insurance date in Arizona is June 30 for all 
storage and non-storage onions; adding a new section 10(b)(1)(iv) to 
specify the end of insurance date is July 15 for 1015 Super Sweets, and 
other non-storage onions for all Texas counties except Cameron, 
Hidalgo, Starr, and Willacy; revising new section 10(b)(1)(v) by adding 
the phrase ``fall planted'' and deleting the phrase ``and any other 
non-storage onions'' to specify the end of insurance date is July 31 
for fall planted Walla Walla Sweets, in the states of Oregon and 
Washington; adding a new subsection 10(b)(1)(vi) to specify the end of 
insurance date is August 31 for all non-storage onions not otherwise 
specified; and adding a new section 10(b)(1)(vii) to specify the end of 
insurance date is October 15 for all storage onions not otherwise 
specified. This change will make the end of insurance period more 
consistent with the actual growing season for a specified area.
    FCIC proposes to revise redesignated 10(b)(2)(i) by removing the 
phrase ``removal of the onions from the field'' because the language 
regarding removal is used in the definition of ``harvest'' and harvest 
is already a basis for the end of the insurance period in section 11(b) 
of the Basic Provisions.
    10. Redesignated section 13--FCIC proposes to revise redesignated 
section 13(a) to clarify any required representative samples of the 
unharvested crop cannot be topped, lifted or dug. Since onions placed 
in bags and boxes but not yet removed from the field are considered 
unharvested, the added language clarifies the representative sample 
must be comprised of a crop area undisturbed by the pre-harvest 
processes of topping and lifting or digging.
    11. Redesignated section 14--FCIC proposes to add an example for 
settlement of claim immediately following section 14(b)(7).
    FCIC proposes to revise redesignated section 14(c)(iv) to clarify 
that appraised production for acreage that does not qualify for the 
final stage guarantee is reduced by the difference between the first or 
second stage production guarantee (as applicable) and the final stage 
production guarantee to determine the total production to count for 
production lost on any acreage prior to the final stage. FCIC also 
proposes to add an example regarding the calculation for total 
production to count in a production stage loss immediately following 
section 14(c)(1)(iv).
    12. Redesignated section 15--FCIC proposes to revise redesignated 
section 15 to decrease the prevented planting coverage from 45 percent 
to 35 percent of the final stage production guarantee. Prevented 
planting coverage was reduced to reflect the lower input costs compared 
to the first stage production guarantee, which has input costs for 
planting. This change will coincide with increasing the first stage 
production guarantee for direct seeded storage and non-storage onions 
from 35 percent to 45 percent of the final stage guarantee in the 
definition of ``production guarantee (per acre)'' in section 1.

List of Subjects in 7 CFR Part 457

    Crop insurance, Onion, Reporting and recordkeeping requirements.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 effective for 
the 2013 and succeeding crop years as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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

    2. Amend Sec.  457.135 as follows:
    a. Revise the introductory text;
    b. Add definitions in section 1 for ``Processor'', ``Processor 
contract'', and ``Sets''; amend the definition of ``Non-storage 
onions'' by removing the phrase ``generally'' everywhere it appears; 
and revise the definitions of ``Direct seeded'', ``Onion production'', 
``Production guarantee (per acre)'', ``Storage onions'', ``Topping'', 
``Transplanted''; and remove the definition of ``Type'';
    c. Remove the first section 2 heading and revise section 2;
    d. Amend section 3(a) by removing the phrase ``(Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities)'';
    e. Revise sections 3(b)(2)(i) and 3(b)(2)(ii);
    f. Revise section 3(b)(3);
    g. Revise section 3(c);
    h. Revise section 4;
    i. Revise section 5;
    j. Redesignate sections 6 through 14 as sections 7 through 15, 
respectively, and add a new section 6;
    k. Amend newly redesignated section 7 by removing the phrase 
``(Annual Premium)'';
    l. Revise newly redesignated section 8 introductory text;
    m. Amend newly redesignated section 9 introductory text by removing 
the phrase ``(Insurable Acreage)'';
    n. Amend newly redesignated section 10(a) by removing the phrase 
``(Insurance Period)'';
    o. Revise newly redesignated section 10(b);
    p. Amend newly redesignated sections 11(a) and 11(b) by removing 
the phrase ``(Causes of Loss)'';
    q. Amend newly redesignated section 12(a) by removing the phrase 
``(Replanting Payment)'';
    r. Revise newly redesignated section 13(a);
    s. Amend newly redesignated section 14 by removing the phrase 
``section 13'' and adding the phrase ``section 14'' in its place 
everywhere it appears;
    t. Add an example after newly designated section 14(b)(7);
    u. Amend newly redesignated section 14(c)(1)(i)(B) by removing the 
phrase ``section 12'' and adding the phrase ``section 13'' in its 
place;
    v. Revise newly redesignated section 14(c)(1)(iv);
    w. Add an example after newly redesignated section 14(c)(1)(iv); 
and
    x. Revise newly redesignated section 15.
    The revised and added text reads as follows:

[[Page 43609]]

Sec.  457.135  Onion crop insurance provisions.

    The onion crop insurance provisions for the 2013 and succeeding 
crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Direct seeded. Onions planted by placing onion seed by machine or 
by hand at the correct depth, into a seedbed that has been properly 
prepared for the planting method and production practice.
* * * * *
    Onion production. Onions with excess dirt and foliage material 
removed and that are not considered damaged onion production.
* * * * *
    Processor. Any business enterprise regularly engaged in buying and 
processing onions, that possesses all licenses and permits for 
processing onions required by the State in which it operates, and that 
possesses facilities, or has contractual access to such facilities, 
with enough equipment to accept and process contracted onions within a 
reasonable amount of time after harvest.
    Processor contract. A written agreement between the producer and a 
processor, containing at a minimum:
    (a) The producer's commitment to plant and grow onions of the types 
designated in the Special Provisions and to deliver the onion 
production to the processor;
    (b) The processor's commitment to purchase all the production from 
a specified number of acres or the specified quantity of onion 
production stated in the processor contract; and
    (c) The price that will be paid for the production.
    Production guarantee (per acre).
    (a) First stage production guarantee--Forty-five percent (45%) of 
the final stage production guarantee for direct seeded and transplanted 
storage and non-storage onions, unless otherwise specified in the 
Special Provisions.
    (b) Second stage production guarantee--Seventy percent (70%) of the 
final stage production guarantee for direct seeded storage onions and 
60 percent (60%) of the final stage production guarantee for 
transplanted storage onions and all non-storage onions, unless 
otherwise specified in the Special Provisions.
    (c) Final stage production guarantee--The quantity of onions (in 
hundredweight) determined by multiplying the approved yield per acre by 
the coverage level percentage you elect.
    Sets. Onion bulbs that are planted by hand or by machine.
    Storage onions. Onions other than a Bermuda, Granex, or Grano 
variety, or hybrids developed from these varieties that are harvested 
as a bulb and dried to a lower moisture content, are firmer, have more 
outer layers of paper-like skin, and are darker in color than non-
storage onions. They are more pungent, have a lower sugar content, and 
can be stored for several months under proper conditions prior to use 
without deterioration. Includes varieties grown for a processor under 
the requirements of a processor contract.
    Topping. A pre-harvest process to initiate curing, in which onion 
foliage is removed or broken.
    Transplanted. Onions planted by placing of the onion plant or bulb, 
by machine or by hand at the correct depth, into a seedbed that has 
been properly prepared for the planting method and production practice.
    2. Unit Division.
    In addition to the requirements of section 34 of the Basic 
Provisions, optional units may be established by type, if separate 
types are designated in the Special Provisions.
    3. * * *
    (b) * * *
    (2) * * *
    (i) For direct seeded storage and non-storage onions, from the 
emergence of the fourth leaf until eligible for the final stage; and
    (ii) For transplanted storage and non-storage onions, from the 31st 
day after transplanting of onion plants or sets until eligible for the 
final stage.
    (3) Final stage extends from the completion of topping and lifting 
or digging on the acreage until the end of the insurance period.
    (c) The indemnity payable for any acreage of onions will be based 
on the stage the plants had achieved when damage occurred. Any acreage 
of onions damaged in the first or second stage, to the extent that the 
majority of producers in the area would not normally further care for 
the onions, will have a production guarantee, for indemnity purposes, 
based on the stage in which the damage occurred, even if you continue 
to care for the damaged onions.
    4. Contract Changes.
    In accordance with section 4 of the Basic Provisions, the contract 
change date is:
    (a) June 30 preceding the cancellation date for counties with an 
August 31, September 30, or November 30 cancellation date;
    (b) November 30 preceding the cancellation date for counties with a 
February 1 cancellation date; or
    (c) As designated in the Special Provisions.
    5. Cancellation and Termination Dates.
    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are as follows, unless otherwise 
designated in the Special Provisions:

------------------------------------------------------------------------
                                 Cancellation
        State & county               date           Termination date
------------------------------------------------------------------------
Arizona; Georgia; Kinney,      August 31......  August 31.
 Uvalde, Medina, Bexar,
 Wilson, Karnes, Bee, and San
 Patricio Counties, Texas,
 and all Texas Counties lying
 south thereof.
Umatilla County, Oregon; and   August 31......  September 30.
 Walla Walla County,
 Washington.
Hawaii.......................  September 30...  November 30.
All California Counties,       November 30....  November 30.
 except Lassen, Modoc, Shasta
 and Siskiyou.
All other states and counties  February 1.....  February 1.
------------------------------------------------------------------------

    6. Report of Acreage.
    In addition to the provisions of section 6 of the Basic Provisions, 
if the Special Provisions require a processor contract to insure your 
onions, you must provide a copy of all your processor contracts to us 
on or before the acreage reporting date.
* * * * *
    8. * * *
    In accordance with section 8 of the Basic Provisions, the crop 
insured will be all the storage and non-storage onions (excluding green 
(bunch) or seed onions, chives, garlic, leeks, shallots, and scallions) 
in the county for which a premium rate is provided by the actuarial 
documents:
* * * * *
    10. * * *
    (b) In accordance with the provisions of section 11 of the Basic 
Provisions,

[[Page 43610]]

unless otherwise designated in the Special Provisions, the insurance 
period ends at the earliest of:
    (1) The calendar date for the end of the insurance period as 
follows:
    (i) May 20 for 1015 Super Sweets, and any other non-storage onions 
in Cameron, Hidalgo, Starr, and Willacy Counties, Texas;
    (ii) June 1 for Vidalia, and any other non-storage onions planted 
in the state of Georgia;
    (iii) June 30 for all storage and non-storage onions in Arizona;
    (iv) July 15 for 1015 Super Sweets, and any other non-storage 
onions for all Texas counties except Cameron, Hidalgo, Starr, and 
Willacy;
    (v) July 31 for fall planted Walla Walla Sweets, in the states of 
Oregon and Washington;
    (vi) August 31 for all non-storage onions not otherwise specified; 
and
    (vii) October 15 for all storage onions not otherwise specified; or
    (2) In addition to the requirements of section 11(b) of the Basic 
Provision, fourteen days after lifting or digging.
* * * * *
    13. * * *
    (a) In accordance with the requirements of section 14 of the Basic 
Provisions, any representative samples of the unharvested crop that may 
be required cannot be topped, lifted, or dug and must be at least 10 
feet wide and extend the entire length of each field in the unit. The 
samples must not be harvested or destroyed until the earlier of our 
inspection or 15 days after harvest of the balance of the unit is 
completed.
* * * * *
    14. * * *
    (b) * * *
    (7) * * *
    For Example:
    You have a 100 percent share in 100 acres of a unit of transplanted 
storage onions with a production guarantee of 200 hundredweight per 
acre, and you select 100 percent of the price election of $8.00 per 
hundredweight. You suffer a covered cause of loss on 25 acres during 
the second stage which has a second stage production guarantee of 60 
percent of the final stage production guarantee which equals 120 
hundredweight per acre. The appraised production on the 25 acres was 
2,500 hundredweight of onion production. Your harvested onion 
production on the remaining 75 acres is 16,000 hundredweight total 
production to count. Your indemnity will be calculated as follows:
    (1) 25 acres x 120 hundredweight (200 x .60) second stage 
production guarantee = 3,000 hundredweight, and
    75 acres x 200 hundredweight final stage production guarantee = 
15,000 hundredweight;
    (2) 3,000 hundredweight second stage production guarantee x $8.00 
price election = $24,000 value of second stage production guarantee, 
and
    15,000 hundredweight final stage production guarantee x $8.00 price 
election = $120,000 value of final stage production guarantee;
    (3) $24,000 value of second stage production + $120,000 value of 
final stage production guarantee = $144,000 total value of production 
guarantee;
    (4) 500 hundredweight second stage total production to count (from 
section 14(c)(1)(iv) example) x $8.00 price election = $4,000 value of 
second stage total production to count, and
    16,000 hundredweight final stage total production to count x 8.00 
price election = $128,000 value of final stage production to count;
    (5) $4,000 value of second stage total production to count + 
$128,000 value of final stage total production to count = $132,000 
total value of production to count;
    (6) $144,000 total value of production guarantee - $132,000 total 
value of production to count = $12,000 value of loss; and
    (7) $12,000 x 100 percent share = $12,000 indemnity payment.
* * * * *
    (c) * * *
    (1) * * *
    (iv) For acreage that does not qualify for the final stage 
production guarantee, and is not subject to section 14 (c)(1)(i) and 
(ii), the appraised production is reduced by the difference between the 
first or second stage (as applicable) and the final stage production 
guarantee; and
    For Example:
    You have 100 acres of a unit of transplanted storage onions with a 
production guarantee of 200 hundredweight per acre. You suffer a 
covered cause of loss on 25 acres during the second stage which has a 
second stage production guarantee of 60 percent of the final stage 
production guarantee. The appraised production on the 25 acres was 
2,500 hundredweight of onion production. Your second stage total 
production to count on the 25 acres will be calculated as follows:
    25 acres x 200 hundredweight final stage production guarantee = 
5,000 hundredweight final stage production guarantee,
    5,000 hundredweight final stage production guarantee x 60 percent 
second stage production guarantee = 3,000 hundredweight second stage 
production guarantee,
    5,000 hundredweight final stage production guarantee - 3,000 
hundredweight second stage production guarantee = 2,000 hundredweight 
difference between second stage and final stage production guarantee, 
and
    2,500 hundredweight appraised - 2,000 hundredweight difference = 
500 hundredweight second stage total production to count (for section 
14(b) example).
* * * * *
    15. Prevented Planting.
    Your prevented planting coverage will be 35 percent of your final 
stage production guarantee for timely planted acreage. Additional 
prevented planting coverage levels are not available for onions.

    Signed in Washington, DC, on July 12, 2011.
William J. Murphy,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2011-18053 Filed 7-20-11; 8:45 am]
BILLING CODE 3410-08-P