[Federal Register Volume 77, Number 46 (Thursday, March 8, 2012)]
[Rules and Regulations]
[Pages 13961-13967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5652]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 77, No. 46 / Thursday, March 8, 2012 / Rules
and Regulations
[[Page 13961]]
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the
Common Crop Insurance Regulations, Onion Crop Insurance Provisions. The
intended effect of this action is to provide policy changes and clarify
existing policy provisions to better meet the needs of insured
producers, and to reduce vulnerability to program fraud, waste, and
abuse. The changes will apply for the 2013 and succeeding crop years.
DATES: This rule is effective April 9, 2012.
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 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 action by FCIC directing 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 determinations of good farming practices, as applicable,
must be exhausted before any action against FCIC for judicial review
may be brought.
[[Page 13962]]
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
This rule finalizes changes to the Common Crop Insurance
Regulations (7 CFR part 457), Onion Crop Insurance Provisions that were
published by FCIC on July 21, 2011, as a notice of proposed rulemaking
in the Federal Register at 76 FR 43606-43610. The public was afforded
60 days to submit comments after the regulation was published in the
Federal Register.
A total of 35 comments were received from 6 commenters. The
commenters were insurance providers, an insurance service organization,
and other interested parties.
The public comments received regarding the proposed rule and FCIC's
responses to the comments are as follows:
General
Comment: A commenter stated many of the proposed changes in the
Onion Crop Provisions Proposed Rule, as explained in the ``Background''
section, appear to be reasonable.
Response: FCIC thanks the commenter for their review of the
proposed rule and their support.
Section 1--Definitions
Comment: A few commenters recommended beginning the definition of
``non-storage onions'' with the phrase ``Onions of a Bermuda, Granex,
or Grano variety * * *'' consistent with the definition of ``storage
onions.''
Response: FCIC agrees with the commenters and has revised the
provision accordingly.
Comment: A few comments were received regarding the definition of
``onion production.'' The commenters stated FCIC proposed removing the
phrase ``of recoverable size and condition'' because as stated in the
Background of the proposed rule ``these terms are vague and
ambiguous.'' However, if that phrase is deleted, the commenters
questioned whether it will mean that onions that are too small to
recover could be considered ``onion production.'' The definition of
``damaged onion production'' includes onions that do not meet certain
grade standards. The commenters questioned whether it is supposed to be
implied that (undamaged) ``onion production'' will always meet those
standards. The commenters questioned whether this definition should
also include some reference to those standards. While damaged onions
are considered storage type onions that do not grade U.S. No. 1 or do
not satisfy any other standards that may be contained in the Special
Provisions, or non-storage type onions that do not satisfy any
applicable marketing order (i.e., U.S. commercial), there are many
times the insurance provider has had to deal with unharvested onions
that obviously made grade, but there is a crop production loss, and
they are able to determine the production to count based on weighing
what the harvest equipment could pick up without having to have the
crop graded by state/federal graders. The insurance provider was able
to get the producer to harvest a representative strip and did not have
to manually dig the onions with shovels, or deal with grading. The
commenters felt the deleted phrase either needs to be retained, or if
it is considered to be too vague, it can be further defined by
indicating something about the size and condition that can be picked up
by normal harvesting equipment. It would be very inefficient for
adjusters to hand dig, bag and haul the really small onions that would
not have been picked up by the harvesting equipment to have them graded
because of the multitude of different marketing orders for size
requirements that may be in effect. Additionally, if there is no
language that production has to be of recoverable size and condition,
would this mean insurance providers have to appraise every single
harvested field to prove that any onions left in the field after
harvest did not make grade? Would the insurance providers have to go to
the Loss Adjustment Manual and prove the small onions were not able to
be mechanically harvested?
Response: FCIC agrees and has retained the deleted phrase ``of
recoverable size and condition'' and has retained the current
definition in the final rule.
Comment: A commenter stated the definition of ``planted acreage''
states, ``in addition to the definition contained in the Basic
Provisions, onions must be planted in rows.'' The commenter noted in
the Basic Provisions, planted acreage is ``land in which seeds, plants,
or trees have been placed * * *'' The commenter asks if an onion set
(bulb) may not be considered a seed (otherwise a conflict between
direct seeded and transplanted will result). The commenter asked FCIC
to consider revising the definition of ``planted acreage'' in the Onion
Crop Provisions to ``* * * land in which seeds, sets, or plants have
been placed * * *''
Response: Although no changes were proposed to this provision, the
commenter has identified a potential conflict within the policy because
sets, which are bulbs, are not considered seeds, plants or trees, which
are used in the definition of planted acreage in the Basic Provisions.
Therefore, sets must be added to the definition in these Crop
Provisions. FCIC has revised the definition of ``planted acreage''
include a reference to sets.
Comment: A few commenters supported the change to the definition of
``production guarantee (per acre)'' that increased the first stage
production guarantee for direct seeded onions from 35 percent to 45
percent of the final stage production guarantee, and also supported the
corresponding change of the prevented planting coverage from 45 percent
to 35 percent in section 15. The commenters wanted FCIC to adequately
account for any increased coverage in the rating methodology for areas
where this first stage guarantee was not previously increased in the
Special Provisions.
Response: FCIC agrees with the commenters and will evaluate and
adjust premium rates as necessary.
Comment: A commenter stated the term ``sets'' is added as a
definition, but is not used in the current Onion Crop Provisions or the
proposed rule. The definition of ``transplanted'' continues to refer to
``* * * placing of the onion plant or bulb * * *'' The commenter asked
FCIC to consider revising the definition of ``transplanted'' to read
``* * * placing of the plant or sets * * *'' and replace the term
``bulb'' with ``sets'' where it appears in the Onion Crop Provisions
and is used in the context of planting the crop. The commenter stated
this change provides consistency with usage of the term ``sets'' in
proposed section 3(b)(2)(ii).
Response: FCIC agrees with the commenter and has revised the
definition of ``transplanted'' by replacing the word ``bulb'' with
``sets.'' FCIC also agrees that transplanted and sets are used in the
context of planting the acreage and has revised the definition of
``planted acreage'' to include direct seeded and transplanting to
clarify the methods of planting the crops. These changes will provide
consistency within the Crop Provisions.
Comment: A few commenters stated the definition of ``storage
onions'' begins with the phrase ``Onions other than a Bermuda, Granex,
or Grano variety'' and ends with the added sentence ``Includes
varieties grown for a processor under the requirements of a processor
[[Page 13963]]
contract.'' The commenters questioned if Bermuda, Granex or Grano
onions could ever be grown for processing resulting in a contradiction
between these two sentences. The commenters stated perhaps this
potential conflict could be resolved by moving the added language to
the first sentence to state ``Onions other than a Bermuda, Granex, or
Grano variety, or hybrids developed from these varieties, and including
onions grown under a processor contract.'' The commenters stated
another alternative is if the added last sentence is left where it is,
it could begin with ``Storage onions include varieties * * *'' and
consider if it would be sufficient to say ``grown under a processor
contract'' or ``grown for processing'' instead of ``grown for a
processor under the requirements of a processor contract.''
Response: FCIC agrees with the commenters and has revised the
provisions by removing the last sentence. It is the type of onion that
determines whether it is a storage onion, not whether it is grown under
a contract. Therefore, this provision is not needed. Any onions meeting
the definition are considered storage onions, and this would include
onions grown under a processing contract if they meet the requirements.
Comment: A few commenters recommended in the definition of
``storage onions'' to add a comma in the first sentence after the
phrase ``or hybrids developed from these varieties'' similar to the
definition of ``non-storage onions.''
Response: FCIC agrees with the commenters and has revised the
definition accordingly.
Section 3--Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities
Comment: A commenter recommended revising section 3(b) from ``* * *
same stage to qualify for the applicable stage guarantee * * *'' to ``*
* * same stage to qualify for the first and second stages * * *'' The
commenter stated the current provision incorrectly suggests that
eligibility for the final stage requires a determination that at least
75 percent of the plants have reached the final stage when in fact the
final stage is based on the completion of topping and lifting or
digging the onion acreage.
Response: Although no changes were proposed to this provision, the
commenter has identified a conflict in the provisions that need to be
corrected to eliminate this ambiguity. FCIC has revised section 3(b) to
clarify all stages are determined on an acre basis and only the first
and second stage rely on a percentage of plants reaching a growth stage
to determine eligibility for the applicable stage.
Comment: A commenter questioned if the phrase ``* * * until
eligible for the final stage'' is required in section 3(b)(2), should
it not also be included in section 3(b)(1) as follows ``* * * until
eligible for the second stage.''
Response: No changes were proposed to this provision and the
proposed change does not address a conflict or vulnerability in the
provision. No change has been made to the final rule.
Comment: Several commenters requested FCIC further clarify the
phrase ``* * * the majority of producers in the area would not normally
further care for the onions * * *'' in section 3(c). The commenters
stated the insurance providers need to have the option to stage the
crop according to the date of damage based on their assessment of the
severity of the damage without this being a point of contention with
producers. The commenters stated this language has proved extremely
difficult to administer and poses a real problem in areas where there
are very few producers of a particular crop.
Response: FCIC understands the commenters concern that it can be
difficult to determine a majority in an area that has few producers of
the insured crop. The provision is flexible so that no matter the total
number of producers of the crop in the area, an insurance provider will
base their determination on a simple majority. This provision is
necessary to prevent program abuse of advancing the stages of a heavily
damaged crop in order to receive a higher production guarantee
resulting in a larger indemnity payment. When an insurance provider
determines the crop is damaged to the extent that the majority of
producers would not further care for the damaged crop then the
liability will be limited to the stage production guarantee when the
damage occurred. The proposed first sentence ``The indemnity payable
for any acreage of onions will be based on the stage the plants
achieved when damage occurred'' could be misinterpreted to mean that
any amount of damage to the onion crop would stop the progression of
the production guarantee. FCIC has revised section 3(c) by removing the
proposed first sentence because it conflicts with the rest of the
provision.
Section 5--Cancellation and Termination Dates
Comment: A commenter stated the proposed cancellation and
termination date of November 30 for all California Counties, except
Lassen, Modoc, Shasta and Siskiyou do not align with the distinct
growing period of California. The commenter stated the planting of
onions in California generally begins as early as September and,
therefore, September 30 would be a more appropriate date for
cancellation and termination in this region of the country.
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Section 6--Report of Acreage
Comment: A few commenters stated the Special Provisions for onions
in Georgia designate separate planting periods, but the Onion Crop
Provisions are silent on this issue. The commenters requested the Onion
Crop Provisions or the Special Provisions for Georgia be amended to
include a definition of ``planting period.'' The commenters also
requested adding a provision to section 6 of the Onion Crop Provisions
which would amend section 6(a)(3) of the Basic Provisions, and make it
clear when acreage reports for onions are due in these counties in
situations where producers may also have other crops insured under the
same policy.
Response: FCIC disagrees that the Special Provisions for Georgia
designate separate planting periods. The Special Provisions for Georgia
list planting dates for separate practices of planting such as direct
seeded and transplanted. The onion crop is planted earlier for the
direct seeded practice and later for the transplanted practice. For
either practice of planting the onion crop results in similar
development, maturity, and harvest periods. Since there are not
separate planting periods, section 6(a)(3) of the Basic Provisions is
not applicable. The planted and insured onion crop acres must be
reported by the latest applicable acreage reporting date specified in
the Special Provisions. No change has been made to the final rule.
Section 10--Insurance Period
Comment: A commenter stated the proposed language separating the
end of insurance date for Walla Walla Sweets (July 31st) from other
non-storage onions (August 31st) is incorrect for Oregon and
Washington. The commenter recommended revising the language for Oregon
and Washington to read ``July 31 for fall planted non-storage onions in
Oregon and Washington.''
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Comment: A commenter stated in section 10(b)(2) the words ``Basic
[[Page 13964]]
Provision'' should be corrected to ``Basic Provisions.''
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Section 11--Causes of Loss
Comment: A commenter recommended section 11(a)(2) be revised to
clarify an insured cause of loss is ``Fire, due to natural causes, * *
*'' or ``Fire, if caused by lightning, * * *'' as in the proposed
revisions to the Tobacco Crop Provisions.
Response: FCIC disagrees with the commenter. Revising the insured
cause of loss to read ``Fire, due to natural causes * * *'' is not
necessary since section 12 of the Basic Provisions states all insured
causes of loss must be due to a naturally occurring event. Further, the
Federal Crop Insurance Act also limits coverage to naturally occurring
events. To include this requirement for a single cause of loss in the
Onion Crop Provisions will only create confusion regarding whether or
not the other listed causes must be naturally occurring. FCIC also
disagrees with revising the insured cause of loss to read ``Fire, if
caused by lightning * * *'' as in the proposed revisions to the Tobacco
Crop Provisions. ``Fire, if caused by lightning * * *'' was proposed in
the Tobacco Proposed Rule but due to public comments, the original
provision, ``Fire,'' was retained because there are naturally occurring
fires caused by something other than lightning, such as wildlife
getting stuck in transformers causing sparks to trigger a fire. No
change has been made to the final rule.
Section 13--Duties in the Event of Damage or Loss
Comment: Several commenters recommended revising section 13(a). A
commenter suggested removing the word ``unharvested'' as representative
samples of the unharvested crop that may be required cannot be topped,
lifted, or dug as the term ``harvest'' by definition applies only after
the acreage has been topped, lifted or dug, thus such acreage that is
topped, lifted, or dug is still unharvested. This commenter further
stated the proposed change does not achieve its objective (leaving the
acreage undisturbed) as in the following sentence, ``The samples must
not be harvested or destroyed until the earlier of our inspection * *
*'' reverts back to the harvest term which describes removal of the
onions from the field after lifting or digging. A few other commenters
suggested moving the proposed phrase ``cannot be topped, lifted, or dug
and'' to the last sentence, which would be revised to read, ``The
samples must not be topped, lifted, dug, harvested or destroyed until
the earlier of our inspection or 15 days after harvest of the balance
of the unit is completed.'' These commenters suggested if the phrase is
left in the first sentence to add a comma after the phrase ``or dug''.
Response: FCIC agrees with the commenters and will remove the word
``unharvested.'' FCIC will also move the added phrase ``cannot be
topped, lifted, or dug and'' to the last sentence and change the
wording accordingly as suggested.
Section 14--Settlement of Claim
Comment: A commenter stated in the section 14(b)(7) example, the
total production to count is determined at the unit level not for part
of the unit. The commenter asked FCIC to consider revising ``total
production to count'' to ``harvested production to count.'' Similar
revisions elsewhere in this example should be made using the words
``appraised'' or ``harvested'' as applicable or by removing the word
``total'' all together.
Response: FCIC has reviewed all references to the word ``total''
throughout the section 14(b)(7) example and revised them as necessary.
Comment: A commenter suggested in the introduction to the section
14(b)(7) example, revising the phrase ``16,000 hundredweight total
production to count'' to ``16,000 hundredweight of harvested production
to count.''
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Comment: A commenter suggested in step (3) of the section 14(b)(7)
example, adding the word ``guarantee'' as in ``$24,000 value of second
stage production guarantee * * *''
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Comment: A commenter suggested in step (4) of the section 14(b)(7)
example, adding the phrase ``step 4'' into the phrase ``* * * (from
section 14(c)(1)(iv) example) * * *''
Response: FCIC agrees with the commenter and has revised the
provision to read ``(from step 4 of the section 14(c)(1)(iv)
example).''
Comment: A commenter suggested in the section 14(c)(1)(iv) example,
revising the phrase ``total production to count'' to ``appraised
production to count'' for each instance the phrase is used. The
commenter states section 14(c)(1) deals with determining appraised
production to count, not total production to count. The commenter also
states total production to count is determined at the unit level not
for part of the unit.
Response: FCIC agrees with the commenter that section 14(c)(1)
deals with appraised production, but the example for section
14(c)(1)(iv) deals with determining production to count for appraised
production on acreage that does not qualify for the final stage
guarantee. FCIC has revised the provisions by removing the term
``total'' but has not added the term ``appraised.''
Comment: A commenter suggested numbering the steps in the section
14(c)(1)(iv) example similar to how the steps were numbered for the
section 14(b)(7) example.
Response: FCIC agrees with the commenter and has revised the
provision accordingly.
Comment: A commenter suggested in the fourth step of the section
14(c)(1)(iv) example adding the phrase ``step 4'' into the phrase ``* *
* (for section 14(b) example) * * *''
Response: FCIC agrees with the commenter and has revised the
provision to read ``(for step 4 of the section 14(b) example).''
Comment: A few commenters stated the section 14(c)(1)(iv) example
disrupts the flow from (i), (ii), (iii), (iv), and (v). The commenters
suggested three possible solutions for consideration: (1) Move the
example to the end of 14(c); (2) Move both examples from section 14 to
the end of the Crop Provisions with references to the examples in
sections 14(b) and (c); or (3) Move the ``; and'' following section
14(c)(1)(iv) to the end of the example.
Response: FCIC disagrees with the commenters because the cited
example after section 14(c)(1)(iv) specifically addresses the
provisions as stated in section 14(c)(1)(iv). No change has been made.
Section 15--Prevented Planting
Comment: A few commenters expressed their support for the proposed
change to the prevented planting coverage from 45 percent to 35 percent
in section 15 and the corresponding increasing of the first stage
coverage from 35 percent to 45 percent of the final stage production
guarantee in the section 1 ``production guarantee (per acre)''
definition. The commenters stated that this change recognizes there are
more costs incurred by a producer for onions damaged in the first stage
versus a prevented planting situation.
Response: FCIC thanks the commenter for their review of the
proposed rule and their support. The proposed changes have been
retained in this final rule.
[[Page 13965]]
List of Subjects in 7 CFR Part 457
Crop insurance, Onion, Reporting and recordkeeping requirements.
Final Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation amends 7 CFR part 457 effective for the 2013 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(l), 1506(o).
0
2. Amend Sec. 457.135 as follows:
0
a. Revise the introductory text;
0
b. Add definitions in section 1 for ``Processor'', ``Processor
contract'', and ``Sets''; and revise the definitions of ``Direct
seeded'', ``Non-storage onions'', ``Planted acreage'', ``Production
guarantee (per acre)'', ``Storage onions'', ``Topping'',
``Transplanted''; and remove the definition of ``Type'';
0
c. Remove the first section 2 heading and revise section 2;
0
d. Amend section 3(a) by removing the phrase ``(Insurance Guarantees,
Coverage Levels, and Prices for Determining Indemnities)'';
0
e. Revise section 3(b) introductory text;
0
f. Revise sections 3(b)(2)(i), 3(b)(2)(ii), and 3(b)(3);
0
g. Revise section 3(c);
0
h. Revise section 4;
0
i. Revise section 5;
0
j. Redesignate sections 6 through 14 as sections 7 through 15,
respectively, and add a new section 6;
0
k. Amend newly redesignated section 7 by removing the phrase ``(Annual
Premium)'';
0
l. Revise newly redesignated section 8 introductory text;
0
m. Amend newly redesignated section 9 introductory text by removing the
phrase ``(Insurable Acreage)'';
0
n. Amend newly redesignated section 9(a) by removing the word
``specified'' and adding the word ``designated'' in its place;
0
o. Amend newly redesignated section 10(a) by removing the phrase
``addition to'' and adding the phrase ``accordance with'' in its place,
and also removing the phrase ``(Insurance Period)'';
0
p. Revise newly redesignated section 10(b);
0
q. Amend newly redesignated sections 11(a) introductory text and 11(b)
by removing the phrase ``(Causes of Loss)'';
0
r. Amend newly redesignated section 12(a) by removing the phrase
``(Replanting Payment)'';
0
s. Revise newly redesignated section 13(a);
0
t. Amend newly redesignated section 14 by removing the phrase ``section
13'' and adding the phrase ``section 14'' in its place everywhere it
appears;
0
u. Amend newly redesignated section 14(b)(6) by removing the phrase
``13(b)(3)'' and adding the phrase ``14(b)(3)'' in its place;
0
v. Add an example after newly redesignated section 14(b)(7);
0
w. Amend newly redesignated section 14(c)(1)(i)(B) by removing the
phrase ``section 12'' and adding the phrase ``section 13'' in its
place;
0
x. Revise newly redesignated section 14(c)(1)(iv);
0
y. Add an example after newly redesignated section 14(c)(1)(iv); and
0
z. Revise newly redesignated section 15.
The revised and added text reads as follows:
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.
* * * * *
Non-storage onions. Onions of a Bermuda, Granex, or Grano variety,
or hybrids developed from these varieties, that are harvested as a bulb
and dried only a short time, and consequently have a higher moisture
content. They are thinner skinned, contain a higher sugar content, and
are milder in flavor than storage onions. Due to a higher moisture and
sugar content, they are subject to deterioration both on the surface
and internally if not used shortly after harvest.
* * * * *
Planted acreage. In addition to the definition contained in the
Basic Provisions, onions, including sets, must be direct seeded in rows
or transplanted in rows.
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.
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 sets,
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.
[[Page 13966]]
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
* * * * *
(b) Your production guarantee progresses, in stages, to the final
stage production guarantee. Stages will be determined on an acre basis.
At least 75 percent (75%) of the plants on such acreage must be at the
same stage to qualify for the first and second stages. The stages are
as follows:
(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) 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:
----------------------------------------------------------------------------------------------------------------
State & County Cancellation date Termination date
----------------------------------------------------------------------------------------------------------------
Arizona; Georgia; Kinney, Uvalde, August 31............................ August 31.
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.
All California Counties, except September 30.......................... September 30.
Lassen, Modoc, Shasta and
Siskiyou.
Hawaii........................... September 30.......................... November 30.
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. Insured Crop.
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. Insurance Period.
* * * * *
(b) In accordance with the provisions of section 11 of the Basic
Provisions, 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 non-storage onions in 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
Provisions, fourteen days after lifting or digging.
* * * * *
13. Duties in the Event of Damage or Loss.
(a) In accordance with the requirements of section 14 of the Basic
Provisions, any representative samples of the crop that may be required
must be at least 10 feet wide and extend the entire length of each
field in the unit. The samples must not be topped, lifted, dug,
harvested or destroyed until the earlier of our inspection or 15 days
after harvest of the balance of the unit is completed.
* * * * *
14. Settlement of Claim.
* * * * *
(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. Your crop suffers 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 of
harvested 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 guarantee + $120,000
value of final stage production guarantee = $144,000 total value of
production guarantee;
(4) 500 hundredweight second stage production to count (from step 4
of the section 14(c)(1)(iv) example) x $8.00 price election = $4,000
value of second stage production to count, and 16,000 hundredweight
final stage production to count x 8.00 price election = $128,000 value
of final stage production to count;
[[Page 13967]]
(5) $4,000 value of second stage production to count + $128,000
value of final stage 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. Your crop suffers 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 production
to count on the 25 acres will be calculated as follows:
(1) 25 acres x 200 hundredweight final stage production guarantee =
5,000 hundredweight final stage production guarantee,
(2) 5,000 hundredweight final stage production guarantee x 60
percent second stage production guarantee = 3,000 hundredweight second
stage production guarantee,
(3) 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
(4) 2,500 hundredweight appraised -2,000 hundredweight difference =
500 hundredweight second stage production to count (for step 4 of the
section 14(b) example).
* * * * *
15. Prevented Planting.
Your prevented planting coverage will be 35 percent (35%) 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 February 29, 2012.
William J. Murphy,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2012-5652 Filed 3-7-12; 8:45 am]
BILLING CODE 3410-08-P