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.

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REGISTER issue of each week.

Rules and Regulations Federal Register

24523 

Vol. 72, No. 85 

Thursday, May 3, 2007 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 457 

RIN 0563–AC03 

Common Crop Insurance Regulations; 

Mint 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; 

Mint Crop Insurance Provisions to 

convert the mint pilot crop insurance 

program to a permanent insurance 

program for the 2008 and succeeding 

crop years. 

EFFECTIVE DATE: June 4, 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, 6501 Beacon Drive, Stop 

0812, Room 421, Kansas City, MO, 

64133–4676, 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 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. 

Background 

On Monday, February 6, 2006, FCIC 

published a notice of proposed 

rulemaking in the Federal Register at 71 

FR 6016–6021 to add 7 CFR 457.169 

Mint crop insurance provisions effective 

for the 2008 and succeeding crop years. 

The public was afforded 60 days to 

submit written comments and opinions. 

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24524 Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 

The e-mail address listed on the 

proposed rule and the Federal 

eRulemaking Portal address were not 

operational during that time period, 

therefore, FCIC published a notice in the 

Federal Register at 71 FR 14828 on 

March 24, 2006, extending the comment 

period for an additional 30 days, until 

April 24, 2006. 

A total of 20 comments were received 

from 3 commenters. The commenters 

were an insurance services organization 

and 2 approved insurance providers. 

The comments received and FCIC’s 

responses are as follows: 

Comment: Two commenters 

recommended adding a definition for 

‘‘sales closing date’’ to these provisions 

which would define the rules when a 

county has two sales closing dates 

similar to what has been done in the 

Small Grains Crop Provisions. The 

definition in the Basic Provisions 

assumes a single sales closing date for 

the crop. 

Response: Neither the Small Grains 

Crop Provisions or the Mint Crop 

Provisions assume a single sales closing 

date. With respect to the actual sales 

closing date, both state that it is the 

dates contained in the Special 

Provisions. Therefore, the Special 

Provisions can have separate sales 

closing dates for the Winter Coverage 

Option and the spring insurance period. 

FCIC agrees that there is some confusion 

regarding when application must be 

made and is adding a definition of 

‘‘sales closing date’’ to make it clear that 

if the Winter Coverage Option is 

selected, applications for both the 

Winter Coverage Option and the spring 

insurance period must be submitted by 

the sales closing date for the Winter 

Coverage Option and coverage may not 

be changed between the winter and the 

spring coverage periods. If the producer 

only wants coverage for the spring 

insurance period, application must be 

made by the spring sales closing date 

and changes to the policy can be made 

for the following crop year by the next 

spring sales closing date. 

Comment: Two commenters 

recommended the definition of ‘‘type’’ 

should be retained in the provisions 

because the term ‘‘type’’ is used 

frequently in the policy. Both 

commenters recommended revising the 

definition to include all insurable mint 

types. One commenter questioned if a 

definition of ‘‘type’’ would also have an 

effect on the definition of ‘‘mint,’’ which 

refers to spearmint or peppermint. 

Response: FCIC agrees with the 

recommendation to include the 

definition of ‘‘type.’’ Section 1 of the 

Crop Provisions has been revised 

accordingly. It is not appropriate to 

include all the insurable mint types in 

the definition because certain types may 

only be insurable in certain counties. 

For this reason the definition refers to 

the categories of mint designated as a 

type in the Special Provisions. The 

definition of ‘‘type’’ does not have any 

effect on the definition of ‘‘mint.’’ The 

definition of ‘‘type’’ refers to the 

categories of mint designated as types. 

Since mint is defined as spearmint or 

peppermint, type would refer to the 

designation of different types of 

peppermint and spearmint. No change 

to the definition of ‘‘mint’’ has been 

made. 

Comment: Two commenters stated in 

regards to section 2, producers use 

‘‘still’’ records to separate types (basic 

units) and optional units. They asked 

whether pre-authorization is required 

for commingled production as with 

other crops such as corn and soybeans. 

Response: Section 2 of the Mint Crop 

Provisions states basic units will be 

established for each mint type listed in 

the Special Provisions. As provided in 

the Basic Provisions, producer’s 

verifiable ‘‘still’’ records may be used to 

establish basic units. However, oil 

derived from peppermint and spearmint 

types would not be commingled 

together. Oil from each mint type, for 

example, two different types of 

spearmint, are not supposed to be 

commingled because each is a separate 

unit. According to section 11(a)(2) of the 

Mint Crop Provisions, if production is 

commingled between basic units, any 

commingled production will be 

allocated to such units in proportion to 

the liability on the harvested acreage for 

the units. 

Comment: One commenter questioned 

whether the term ‘‘stand age’’ belongs in 

section 3(b)(2) which lists various things 

that ‘‘* * * may reduce the expected 

yield below the yield upon which the 

insurance guarantee is based * * *’’ The 

commenter recommended the term 

‘‘stand age’’ could be combined with the 

reporting of the planting dates for new 

and existing mint acreage currently 

listed in sections 3(b)(3) and (4). 

Response: FCIC agrees that the stand 

age is not something that would 

necessarily reduce the yield below the 

yield upon which the guarantee is 

based. Therefore, FCIC has removed the 

term ‘‘stand age’’ from section 3(b)(2). 

The stand age reporting requirement is 

now contained in section 3(b)(3). 

Comment: One commenter 

recommended changing ‘‘* * * deemed 

to not have attached * * *’’ in section 

5 to ‘‘* * * deemed not to have attached 

* * *.’’ 

Response: FCIC agrees with the 

commenter and has made the revision 

accordingly. 

Comment: Two commenters 

expressed concerns regarding the added 

language in sections 6(a)(4)(i) and (ii) 

that indicates an inspection is required 

not only the initial year insured but also 

any ‘‘subsequent crop year following an 

indemnified loss’’ or when ‘‘an 

indemnity was paid the previous crop 

year.’’ The commenters questioned if 

mint is the second crop on the acreage, 

and a loss is incurred but the producer 

elects not to accept the loss payment on 

the mint whether an inspection is 

necessary the subsequent crop year. 

They also stated if a claim was filed the 

preceding crop year and it was 

determined there was an adequate stand 

as a result, another inspection should 

not be necessary because there was not 

a payable loss. One commenter 

indicated with this additional 

requirement, approved insurance 

providers would have to do what they 

could to complete claims and 

inspections for acreage insured under 

the Winter Coverage Option before the 

mint was plowed down for the winter. 

Response: The provisions contained 

in section 6(a)(4)(i) and (ii) were added 

to the crop provisions as a result of the 

FCIC Board of Directors’ (Board) 

approval to convert the mint pilot crop 

insurance program to a permanent 

program. The Board’s decision was 

based on an independent contractor’s 

recommendation to modify the selfcertification program to reduce the 

program integrity problem caused by 

insuring acreage that did not have an 

adequate stand at the time insurance 

attached. The Board’s Final Resolution 

specified that when an indemnity was 

paid the previous year’s approved 

insurance providers must conduct a 

crop inspection to determine if the crop 

has an adequate stand. 

However, in response to the 

commenters, FCIC has revised the 

provisions in sections 6(a)(4) and 13(e) 

to not require an inspection for the 

following year in situations where a 

notice of loss has been filed, but it is 

determined that there is an adequate 

stand on the mint acreage. If there has 

been an indemnity paid or a notice of 

loss filed and the approved insurance 

provider determined there was not an 

adequate stand, the acreage must be 

inspected before insurance will attach 

for the next insurance period. For 

example, in those cases where a 

producer receives an indemnity 

payment for spring mint, or claims a 

loss and the approved insurance 

provider determines there is not an 

adequate stand, an inspection of the 

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Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 24525 

acreage insured under the Winter 

Coverage Option must be conducted 

before coverage begins in October or 

November. 

Comment: One commenter 

recommended rewording the phrase in 

section 6(c) ‘‘* * * which provides 

coverage for mint that is damaged after 

the date coverage ends in the fall and 

before the date coverage begins in the 

spring * * *’’ The phrase could be 

misleading to new producers since they 

had no previous coverage that ended in 

the fall. 

Response: The provision in section 

6(c) merely notifies producers that 

winter coverage for mint is available. 

However, the provision referred to is 

duplicative of the provisions in section 

13. Therefore, to avoid any potential 

conflicts or ambiguity between sections 

6(c) and section 13, FCIC is revising 

section 6(c) to state that winter coverage 

is available in accordance with section 

13. Section 13 states when coverage is 

provided under the Winter Coverage 

Option. 

Comment: Two commenters 

recommended the reference to actuarial 

documents in sections 7(b)(1) and (2) be 

changed back to refer to the Special 

Provisions as this is where the rotation 

and age limitation statements are 

located. One commenter suggested since 

mint will no longer be a pilot program, 

exceptions to the provisions should be 

made to allow coverage by written 

agreement. 

Response: FCIC agrees section 7(b)(1) 

and (2) should reference the Special 

Provisions. FCIC also agrees with the 

comment and has revised the provisions 

to allow rotation requirements and age 

limitations to be modified by written 

agreement. 

Comment: Two commenters 

questioned whether a two-week period 

is sufficient to complete inspections on 

all new mint policies as required in 

section 8(b). Both commenters 

recommended changing it to a 30-day 

period to provide adequate time to do 

the inspection. This would be consistent 

with the 30-day period for many other 

crops (i.e. Nursery). One commenter 

questioned whether the inspection time 

period in section 8(b) also applies to the 

subsequent crop year following an 

indemnified loss and should it be 

referenced in this provision as well. One 

commenter also expressed concerns that 

the second sentence in section 8(b) 

could be confusing and lead to the 

impression that coverage starts after the 

application is received in the local 

office. 

Response: Mint is similar to other 

perennial crops and must be inspected 

to determine if the mint stand is capable 

of producing the yield used to establish 

the production guarantee. 

Unfortunately, it is not possible to 

change the period for a crop inspection 

for the spring insurance period because 

the mint plants will not be out of 

dormancy 30 days before the start of the 

insurance period. Therefore, it cannot 

be determined if there is an adequate 

stand earlier than two weeks before the 

start of the insurance period. 

FCIC agrees the provisions should 

include the requirement that an 

inspection must be made before the next 

insurance period following a notice of 

loss for which an indemnity was paid or 

the approved insurance provider 

determined there was not an adequate 

stand to determine if the mint acreage 

has an adequate stand for the next 

insurance period. FCIC also agrees the 

second sentence in section 8(b) could be 

confusing. Therefore, section 8(b) has 

been revised to specify that for the year 

of application and for the crop year 

following a loss, insurance will attach 

on the date coverage begins unless 

insurability requirements are not met. 

Comment: Three commenters stated 

section 8(c)(3) references that coverage 

ends at the harvest for each cutting. The 

reference should be revised since mint 

has multiple cuttings each crop year, 

and coverage does not end until the 

final cutting of the crop year, as was 

done in the pilot program. 

Response: FCIC agrees and has 

revised section 8(c)(3) to specify 

coverage ends at final cutting of the crop 

for the crop year. 

Comment: Two commenters suggested 

revising section 9(a)(2) to state ‘‘Fire, 

due to natural causes’’ would clarify 

when fire is an insured cause of loss 

consistent with the Federal Crop 

Insurance Act and the Crop Insurance 

Handbook. 

Response: In addition to the Mint 

Crop Provisions, the Common Crop 

Insurance Policy, Basic Provisions are 

applicable for mint. Section 12 of the 

Basic Provisions states all specified 

causes of loss must be due to a naturally 

occurring event. Adding the suggested 

language would 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: One commenter suggested 

‘‘marketable’’ should be added to 

section 11(d)(2). For example, a sample 

was distilled on a 7 acre unit that was 

cut but not distilled because of rain over 

a 3–4 day period. The sample distilled 

was a bronze color when it should have 

been clear. It was determined the oil 

from the sample was not a marketable 

product and thus had no value. Mint oil 

is either marketable or not, there is no 

middle ground. 

Response: Adding ‘‘marketable’’ to 

section 11(d)(2) would effectively add 

quality adjustment to the policy. Quality 

adjustment can only be added to the 

policy if there is an objective grading 

standard upon which to base the 

quality. There are no objective grading 

standards for mint oil. In many 

instances different qualities of mint oil 

(such as smell and taste) are blended by 

buyers for varying uses such as gum, 

toothpaste, etc. This means it would be 

up to the buyer to determine what is 

‘‘marketable,’’ which would add a 

significant vulnerability to the policy 

because the buyer could elect not to 

purchase the mint for reasons other than 

the quality and shift the loss to the 

government. Further, without a 

consistent standard, it would be 

possible for some producers to be 

indemnified under the policy while 

others are not based on the subjective 

decision of the buyer. No change has 

been made. 

Comment: One commenter suggested 

for section 13(a), deleting the comma 

before ‘‘* * * if’’. 

Response: FCIC agrees with the 

suggestion and has revised section 13(a). 

Comment: Two commenters asked if 

any new mint acreage planted after the 

applicable acreage reporting date as 

stated in section 13(d) is to be reported 

as insurable or uninsurable. A final 

planting date for mint covered under the 

Winter Coverage Option cannot be 

found in the actuarial documents. The 

commenters questioned whether there is 

any time between the fall acreage 

reporting date and the spring final 

planting date that mint should not be 

planted for insurance. The commenter 

also questioned if they should be 

providing the Winter Coverage Option 

for mint planted past a certain date. 

Response: Mint is a perennial crop 

and producers will plant it, depending 

upon the region and weather conditions, 

during late fall, winter, or early spring. 

Therefore, there is no final planting date 

because FCIC does not want to dictate 

to the producer when the crop must be 

planted. However, all acreage of mint in 

the county must be reported on the 

acreage report. Therefore, mint planted 

after the acreage reporting date must be 

reported within two weeks of planting. 

FCIC recognizes that, depending on 

when it is planted, newly planted mint 

may not have attained an adequate 

stand by the date coverage begins. FCIC 

is revising the provisions to clarify that 

all mint must have attained an adequate 

stand by the date coverage begins before 

it can be reported as insurable. Mint that 

does not have an adequate stand on the 

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24526 Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 

date coverage began, or that was planted 

after coverage began, must be reported 

as uninsured. 

Comment: Two commenters stated 

section 13(e)(4) of the proposed rule 

referenced new mint acreage that is 

planted during the Winter Coverage 

Option insurance period but a final 

planting date could not be found for the 

Winter Coverage Option. 

Response: It is not practical to specify 

a final planting date under the Winter 

Coverage Option for new mint acreage 

because mint is usually planted at any 

time throughout the Winter Coverage 

Option insurance period, depending on 

conditions. However, as stated above, 

FCIC has revised the provisions to make 

it clear that before it is insured, the new 

mint acreage must have attained an 

adequate stand. Therefore, mint acreage 

planted during the Winter Coverage 

Option insurance period must be 

reported as uninsured. 

Comment: Two comments were 

received regarding the provisions 

contained in section 13(e)(4)(i), which 

requires that new mint acreage planted 

during the Winter Coverage Option be 

inspected and accepted for the first crop 

year. Insurance providers must notify 

the producer of acceptance or rejection 

of the application no later than 

November 15 adding that failure to 

notify by then will indicate acceptance. 

They questioned how the November 15 

deadline fits with the December 15 

acreage reporting date for acreage 

insured under the Winter Coverage 

Option. They also questioned how it 

works for new mint acreage planted 

after the Winter Coverage Option 

acreage reporting date. They asked 

whether it is covered by section 

13(e)(4)(iv), allowing certification by the 

producer in place of the insurance 

provider’s inspection for any mint 

acreage planted after the initial 

inspection. They asked what happens if 

additional acreage is planted after the 

inspection as there does not seem to be 

a final plant date for mint under the 

option. 

Response: There were no subparagraphs (i) and (iv) in section 

13(e)(4) of the proposed rule as 

indicated by the commenters. FCIC 

believes the commenters 

unintentionally combined proposed 

section 13(e)(4) with sub-paragraphs (i) 

and (iv) from proposed section 13(e)(5). 

Section 13(e)(4) pertained to new mint 

planted after the acreage reporting date, 

and section 13(e)(5)(i) and (iv) pertained 

to all mint, including newly planted and 

established, for which a premium rate is 

provided for the Winter Coverage 

Option. As stated above, FCIC has 

revised section 13(e) to require that all 

mint have an adequate stand at the time 

coverage begins to be insured. Mint 

planted during the Winter Coverage 

Option insurance period cannot meet 

this requirement and, therefore, must be 

reported as uninsured. This will 

eliminate any confusion regarding the 

insurability of mint planted after the 

date coverage begins and no additional 

inspection will be required of such 

acreage until the start of the next 

insurance period. However, FCIC has 

added provisions to section 8(b) 

requiring that mint acreage reported as 

being planted during the Winter 

Coverage Option insurance period be 

inspected to determine whether it has 

attained an adequate stand before the 

date coverage begins for the spring 

insurance period. 

Comment: Two commenters stated 

sections 13(e)(4)(ii) and (iii) do not 

appear to apply to ‘‘new mint acreage’’ 

since they address inspection or 

certification in subsequent crop years. 

These should remain separate 

subparagraphs (5) and (6) as in the 

current pilot Crop Provisions. 

Response: Section 13(e)(4) of the 

proposed rule did not contain subparagraphs (ii) and (iii) as indicated by 

the commenters. FCIC believes the 

commenters unintentionally combined 

proposed section 13(e)(4) with subparagraphs (ii) and (iii) from proposed 

section 13(e)(5). The requirement that 

mint acreage must be inspected and 

accepted for the crop year following a 

loss that caused an inadequate stand or 

certified as having an adequate stand 

after the first year of coverage was 

contained in section 13(e)(5), which 

pertains to all mint types in the county. 

As stated above, FCIC has clarified that 

all mint must have an adequate stand to 

be insured and mint planted during the 

Winter Coverage Option insurance 

period must be reported as uninsured. 

Therefore, section 13(e) was correct in 

not making paragraph (5) applicable to 

new mint acreage. No change has been 

made in response to this comment. 

Comment: One commenter questioned 

if the ‘‘after’’ should be deleted from 

section 13(e)(5)(iii) so it would read ‘‘* 

* * on the date coverage begins the first 

crop year * * *’’. 

Response: Section 13(e)(5)(i) of the 

proposed rule required all mint types to 

be inspected and accepted the first crop 

year of insurance. Therefore, there is no 

need for the producer to provide such 

a certification in the first year and the 

provisions have been so revised. In 

addition, as stated above, the provision 

has been revised to require inspection 

the year after a reported loss that has 

caused an inadequate stand. Therefore, 

section 13(e)(4)(iii) will now require 

producers to certify to an adequate 

stand each crop year unless there was a 

reported loss that has caused an 

inadequate stand. 

Comment: One commenter stated 

section 13(e)(5)(iv) seems to indicate the 

producer could plant throughout the 

winter coverage insurance period and 

obtain coverage on new mint acreage 

provided the two week notice of 

planting was met. 

Response: As stated above, because 

mint is a perennial crop, producers will 

plant, depending upon the region and 

weather conditions, during late fall, 

winter, or early spring. However, the 

requirement that mint must have an 

adequate stand at the time coverage 

begins to be insurable applies to mint 

under the Winter Coverage Option. 

Since mint planted during the Winter 

Coverage Option insurance period could 

never have an adequate stand before 

coverage begins, it must be reported as 

uninsurable. Therefore, FCIC has 

removed section 13(e)(5)(iv) because it 

suggests that mint planted during the 

Winter Coverage Option insurance 

period is insurable as long as it is 

certified on the acreage report and this 

is not correct. 

Comment: Regarding section 13(i), 

three commenters asked if since this 

provision is only applicable to the 

Winter Coverage Option, should the 

correct production to count be 60 

percent of the production guarantee as 

indicated in sections 13(b) and (l)(1). 

Response: Section 13(i) was added to 

address those instances when a 

producer wishes to destroy a portion of 

mint acreage during the Winter 

Coverage Option insurance period and 

before it can be determined if there is an 

adequate stand on the acreage. The 

producer must agree in writing that no 

indemnity will be paid for the acreage 

destroyed with consent. The total 

production to be counted for those acres 

destroyed with consent will not be less 

than the approved yield. Section 13(b) 

states the guarantee under the Winter 

Coverage Option is ‘‘equal to 60 percent 

of the guarantee determined under 

section 3 of the Crop Provisions.’’ 

In addition to the changes described 

above, FCIC has modified section 11(c) 

to clarify the claim for indemnity 

calculation when more than one mint 

type is insured. 

List of Subjects in 7 CFR Part 457 

Crop insurance, Mint, Reporting and 

recordkeeping requirements. 

Final Rule 

■ Accordingly, as set forth in the 

preamble, the Federal Crop Insurance 

Corporation amends 7 CFR part 457 for 

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Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 24527 

the 2008 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(p). 

■ 2. Section 457.169 is added to read as 

follows: 

§ 457.169 Mint crop insurance provisions. 

The Mint Crop Insurance Provisions 

for the 2008 and succeeding crop years 

are as follows: 

FCIC policies: 

United States Department of Agriculture 

Federal Crop Insurance Corporation 

Reinsured policies: 

(Appropriate title for insurance 

provider) 

Both FCIC and reinsured policies: 

Mint Crop Insurance Provisions 

1. Definitions 

Adequate Stand. A population of live 

mint plants that equals or exceeds the 

minimum required number of plants or 

percentage of ground cover, as specified 

in the Special Provisions. 

Appraisal. A method of determining 

potential production by harvesting and 

distilling a representative sample of the 

mint crop. 

Cover crop. A small grain crop seeded 

into mint acreage to reduce soil erosion 

and wind damage. 

Cutting. Severance of the upper part 

of the mint plant from its stalk and 

roots. 

Distillation. A process of extracting 

mint oil from harvested mint plants by 

heating and condensing. 

Existing mint. Mint planted for 

harvest during a previous crop year. 

Ground cover. Mint plants, including 

mint foliage and stolons, grown on 

insured acreage. 

Harvest. Removal of mint from the 

windrow. 

Mint. A perennial spearmint or 

peppermint plant of the family Labiatae 

and the genus Mentha grown for 

distillation of mint oil. 

Mint oil. Oil produced by the 

distillation of harvested mint plants. 

New mint. Mint planted for harvest 

for the first time. 

Planted acreage. In addition to the 

definition in the Basic Provisions, land 

in which mint stolons have been placed 

in a manner appropriate for the planting 

method and at the correct depth into a 

seedbed that has been properly 

prepared. 

Pound. 16 ounces avoirdupois. 

Sales closing date. In lieu of the 

definition contained in the Basic 

Provisions, if you select the Winter 

Coverage Option, application for the 

Winter Coverage Option will include 

application for the spring insurance 

period and must be submitted by the 

sales closing date for the Winter 

Coverage Option contained in the 

Special Provisions. Coverage may not be 

changed between the end of the Winter 

Coverage Option insurance period and 

the beginning of the spring insurance 

period. If you do not elect the Winter 

Coverage Option, application must be 

made by the spring sales closing date 

contained in the Special Provisions and 

all policy changes must be made by that 

date. If you later elect the Winter 

Coverage Option, you may select your 

coverage under the Winter Coverage 

Option. 

Stolon. A stem at or just below the 

surface of the ground that produces new 

mint plants at its tips or nodes. 

Type. A category of mint identified as 

a type in the Special Provisions. 

Windrow. Mint that is cut and placed 

in a row. 

2. Unit Division 

A basic unit, as defined in section 1 

of the Basic Provisions, will be divided 

into additional basic units by each mint 

type designated in the Special 

Provisions. 

3. Insurance Guarantees, Coverage 

Levels, and Prices for Determining 

Indemnities 

(a) In addition to the requirements of 

section 3 of the Basic Provisions, you 

may only select one price election for all 

the mint in the county insured under 

this policy unless the actuarial 

documents provide different price 

elections by type, in which case you 

may only select one price election for 

each type designated in the actuarial 

documents. The price elections you 

choose for each type must have the 

same percentage relationship to the 

maximum price election offered by us 

for each type. For example, if you 

choose 100 percent of the maximum 

price election for one specific type, you 

must also choose 100 percent of the 

maximum price election for other types. 

(b) In addition to the provisions in 

section 3 of the Basic Provisions, you 

must report: 

(1) The total amount of mint oil 

produced from insurable acreage for all 

cuttings for each unit; 

(2) Any damage to or removal of mint 

plants or stolons; any change in 

practices; or any other circumstance that 

may reduce the expected yield below 

the yield upon which the production 

guarantee is based, and the number of 

affected acres; 

(3) The stand age; 

(4) The date existing mint acreage was 

planted; 

(5) The date new mint acreage was 

initially planted; and 

(6) The type of mint. 

(c) If you fail to notify us of any 

circumstance that may reduce your 

yields or insurable acres from previous 

levels, we will reduce your production 

guarantee and insurable acres at any 

time we become aware of the 

circumstance based on our estimate of 

the effect of damage to or removal of 

mint plants or stolons; stand age; change 

in practices; and any other circumstance 

that may affect the yield potential or 

insurable acres of the insured crop. 

4. Contract Changes 

In accordance with section 4 of the 

Basic Provisions, the contract change 

date is June 30 preceding the 

cancellation date. 

5. Cancellation and Termination Dates 

In accordance with section 2 of the 

Basic Provisions, the cancellation date 

is September 30 and the termination 

date is November 30. If your policy is 

terminated after insurance has attached 

for the subsequent crop year, coverage 

will be deemed not to have attached to 

the acreage for the subsequent crop year. 

6. Insured Crop 

(a) In accordance with the provisions 

of section 8 of the Basic Provisions, the 

crop insured will be all mint types in 

the county for which a premium rate is 

provided by the actuarial documents: 

(1) In which you have a share; 

(2) That are planted for harvest and 

distillation for mint oil; 

(3) That have an adequate stand by 

the date coverage begins; and 

(4) That have been: 

(i) Inspected and accepted by us for 

the first crop year you are insured; or 

(ii) Certified by you as having an 

adequate stand on the date coverage 

begins after the first crop year you are 

insured unless an inspection is required 

under section 8(b). 

(b) In lieu of the provisions of section 

8 of the Basic Provisions that prohibit 

insurance of a second crop harvested 

following the same crop in the same 

crop year, multiple harvests of mint on 

the same acreage will be considered as 

one mint crop. 

(c) In addition to the coverages 

provided in these Crop Provisions, you 

may also elect the Winter Coverage 

Option in accordance with section 13. 

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24528 Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 

7. Insurable Acreage 

(a) Mint interplanted with a cover 

crop will not be considered interplanted 

for the purposes of section 9 of the Basic 

Provisions if the cover crop is destroyed 

prior to its maturity and is not harvested 

as grain. 

(b) In addition to the provisions of 

section 9 of the Basic Provisions, unless 

allowed by written agreement, we will 

not insure any acreage that: 

(1) Does not meet rotation 

requirements contained in the Special 

Provisions; or 

(2) Exceeds existing mint age 

limitations contained in the Special 

Provisions. 

8. Insurance Period 

In lieu of the provisions of section 11 

of the Basic Provisions: 

(a) Coverage begins on each unit or 

part of a unit for acreage with an 

adequate stand on the following 

calendar dates: 

(1) June 16 in Indiana, Montana, and 

Wisconsin; 

(2) May 16 in Washington; and 

(3) For all other states, the date as 

provided in the Special Provisions. 

(b) For the year of application, for 

when you have reported planting mint 

during the Winter Coverage Option 

insurance period, or for any insurance 

period following the payment of an 

indemnity or a reported loss where the 

crop was determined to not have an 

adequate stand, we will inspect all mint 

acreage within the two-week period 

before coverage begins (If you have 

elected the Winter Coverage Option, 

such inspection will occur not later than 

November 15). 

(1) Insurance will attach on the date 

coverage begins, as specified in section 

8(a), unless we inspect the acreage 

during the two-week period and 

determine it does not meet insurability 

requirements as specified in section 2 of 

the Basic Provisions, the application, or 

these Crop Provisions. 

(2) You must provide any information 

we require for the crop or to determine 

the condition of the crop. 

(c) Coverage ends for each unit or part 

of a unit at the earliest of: 

(1) Total destruction of the insured 

crop on the unit; 

(2) Final adjustment of a loss; 

(3) The final cutting for the crop year; 

(4) Abandonment of the crop; or 

(5) The following calendar date: 

(i) September 30 in Indiana and 

Wisconsin; 

(ii) October 15 in Montana; 

(iii) October 31 in Washington; and 

(iv) For all other states, the date as 

provided in the Special Provisions. 

9. 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) Insects or plant disease (except 

Verticillium Wilt disease), but not 

damage due to insufficient or improper 

application of control measures; 

(4) Wildlife; 

(5) Earthquake; 

(6) Volcanic eruption; or 

(7) Failure of the irrigation water 

supply, if caused by an insured cause of 

loss listed in sections 9(a)(1) through (6) 

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 

any loss of production that: 

(1) Occurs after harvest; 

(2) Is due to your failure to distill the 

crop, unless such failure is due to actual 

physical damage to the crop caused by 

an insured cause of loss that occurs 

during the insurance period; or 

(3) Is due to Verticillium Wilt disease. 

10. Duties In The Event of Damage or 

Loss 

In addition to your duties contained 

in section 14 of the Basic Provisions, if 

you discover that any insured mint is 

damaged, or if you intend to claim an 

indemnity on any unit: 

(a) You must give us notice of 

probable loss at least 15 days before the 

beginning of any cutting or immediately 

if probable loss is discovered after 

cutting has begun or when cutting 

should have begun; and 

(b) You must timely harvest and 

completely distill a sample of the crop 

on any acreage you do not intend to 

harvest, as designated by us, to 

determine if an indemnity is due. 

11. Settlement of Claim 

(a) We will determine your loss on a 

unit basis. In the event you are unable 

to provide separate, acceptable 

production records: 

(1) For any optional units, we will 

combine all optional units for which 

such production records were not 

provided; or 

(2) For any basic units, we will 

allocate any commingled production to 

such units in proportion to our liability 

on the harvested acreage for the units. 

(b) We may defer appraisals until the 

crop reaches maturity or the date mint 

harvest is general in the area. 

(c) In the event of loss or damage 

covered by this policy, we will settle 

your claim by: 

(1) Multiplying the insured acreage 

for each type, if applicable, by its 

respective production guarantee; 

(2) Multiplying the result of section 

11(c)(1) by the respective price election 

for each type, if applicable; 

(3) Totaling the results of section 

11(c)(2); 

(4) Multiplying the total production to 

be counted (see section 11(d)) of each 

type, if applicable, by its respective 

price election; 

(5) Totaling the results of section 

11(c)(4); 

(6) Subtracting the result in section 

11(c)(5) from the result of section 

11(c)(3); and 

(7) Multiplying the result in section 

11(c)(6) by your share. 

For example: 

Assume that you have a 100 percent 

share in 100 acres of peppermint in the 

unit, with a production guarantee of 50 

pounds of oil per acre and a price 

election of $12 per pound. Because an 

insured cause of loss has reduced 

production, you only harvest and distill 

2,500 pounds of peppermint oil. Your 

indemnity would be calculated as 

follows: 

(1) 100 acres x 50 pounds = 5,000 

pound production guarantee; 

(2) 5,000 pound production guarantee 

x $12 price election = $60,000 value of 

production guarantee; 

(3) 2,500 pounds production to count 

x $12 price election = $30,000 value of 

production to count; 

(4) $60,000 - $30,000 = $30,000 loss; 

and 

(5) $30,000 x 100 percent share = 

$30,000 indemnity payment. 

(d) The total production to count (in 

pounds of oil) from all insurable acreage 

on the unit will include: 

(1) All appraised production as 

follows: 

(i) Not less than the production 

guarantee per acre for acreage: 

(A) That is abandoned; 

(B) That is put to another use without 

our consent; 

(C) For which you fail to meet the 

requirements contained in section 10 of 

these Crop Provisions; 

(D) That is damaged solely by 

uninsured causes; or 

(E) For which you fail to provide 

production records that are acceptable 

to us; 

(ii) All production lost due to 

uninsured causes; 

(iii) All unharvested production; 

(iv) All potential production on 

insured acreage that you intend to put 

to another use or abandon with our 

consent: 

(A) If you do not elect to continue to 

care for the crop, we may give you our 

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Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 24529 

consent to put the acreage to another 

use if you agree to leave intact and 

provide sufficient care for representative 

samples of the crop in locations 

acceptable to us (The amount of 

production to count for such acreage 

will be based on the harvested 

production or appraisals from the 

samples at the time harvest should have 

occurred. If you do not leave the 

required samples intact, or fail to 

provide sufficient care for the samples, 

the amount of production to count will 

be not less than the production 

guarantee per acre); or 

(B) If you elect to continue to care for 

the crop, the amount of production to 

count for the acreage will be the 

harvested production, or the appraised 

production at the time the crop reaches 

maturity. 

(2) All harvested production from the 

insurable acreage. 

(e) Harvested production must be 

distilled to determine production to 

count. 

(f) Any oil distilled from plants 

growing in the mint will be counted as 

mint oil on a weight basis. 

(g) You are responsible for the cost of 

distilling samples for loss adjustment 

purposes. 

12. Late and Prevented Planting. 

The late and prevented planting 

provisions of the Basic Provisions are 

not applicable. 

13. Winter Coverage Option 

(a) The provisions of this option are 

continuous and will be attached to and 

made part of your insurance policy if: 

(1) You elect the Winter Coverage 

Option on your application, or on a 

form approved by us, on or before the 

fall sales closing date for the crop year 

in which you wish to insure mint under 

this option, and pay the additional 

premium indicated in the actuarial 

documents for this optional coverage; 

and 

(2) You have not elected coverage 

under the Catastrophic Risk Protection 

Endorsement. 

(b) This option provides a production 

guarantee equal to 60 percent of the 

production guarantee determined under 

section 3 of these Crop Provisions. 

(c) If you elect this option, all of the 

insurable acreage in the county will be 

insured by this option. 

(d) In addition to the requirements of 

section 6 of the Basic Provisions, any 

acreage of new mint planted after the 

applicable acreage reporting date must 

be certified by you and reported to us 

within two weeks of planting. 

(e) In lieu of section 6(a) of these Crop 

Provisions, the crop insured will be all 

mint types in the county for which a 

premium rate is provided by the 

actuarial documents: 

(1) In which you have a share; 

(2) That are planted for harvest and 

distillation as mint oil; 

(3) That have an adequate stand on 

the date coverage begins (newly planted 

mint types must be reported in 

accordance with section 8(d) but they 

must be reported as uninsured unless 

they have an adequate stand by the date 

coverage begins); and 

(4) That has been: 

(i) Inspected and accepted by us for 

the first crop year you are insured (We 

will inspect all mint acreage and will 

notify you of the acceptance or rejection 

of your application not later than 

November 15. If we fail to notify you by 

that date, your application will be 

accepted unless other grounds exist to 

reject the application, as specified in the 

Basic Provisions, the application, or 

these Crop Provisions); 

(ii) Inspected and accepted by us not 

later than November 15 for the crop year 

following the payment of an indemnity 

or a reported loss unless the crop was 

determined to have an adequate stand 

(If we determined there was an adequate 

stand after the loss was reported, no 

inspection is necessary); or 

(iii) Certified by you as having an 

adequate stand on the date coverage 

begins unless an inspection is required 

under section 13(e)(4)(ii). 

(f) Coverage under this option begins: 

(1) On existing mint acreage with an 

adequate stand at 12:01 a.m. on the 

calendar date listed below: 

(i) October 1 in Indiana and 

Wisconsin; 

(ii) October 16 in Montana; 

(iii) November 1 in Washington; and 

(iv) For all other states, the date as 

provided in the Special Provisions. 

(2) On new mint acreage, that has an 

adequate stand by the date coverage 

begins as specified in section 13(f)(1). 

(g) Coverage under this option ends 

on the unit or part of the unit at 11:59 

p.m. on the calendar date listed below: 

(1) June 15 in Indiana, Montana, and 

Wisconsin; 

(2) May 15 in Washington; and 

(3) For all other states, the date as 

provided in the Special Provisions. 

(h) In lieu of section 10(a) of these 

Crop Provisions, you must give notice of 

probable loss within 72 hours after you 

discover any insured mint is damaged 

and does not have an adequate stand, 

but no later than the date coverage ends 

for this option. 

(i) In addition to the requirements of 

section 10 of these Crop Provisions, you 

must give us notice if you want our 

consent to put any mint acreage to 

another use before a determination can 

be made if there is an adequate stand on 

the acreage. We will inspect the acreage 

and you must agree in writing no 

payment or indemnity will be made for 

the acreage put to another use. The total 

production to be counted for acreage put 

to another use with our consent in 

accordance with this section will not be 

less than the approved yield. 

(j) In addition to section 11(a) of these 

Crop Provisions we will make a Winter 

Coverage Option payment only on 

acreage that had an adequate stand on 

the date that insurance attached if the 

adequate stand was lost due to an 

insured cause of loss occurring within 

the Winter Coverage Option insurance 

period and the acreage consists of at 

least 20 acres or 20 percent of the 

insurable planted acres in the unit. 

(k) In lieu of section 11(b) of these 

Crop Provisions, we may defer 

appraisals until the date coverage ends 

under this option. 

(l) In lieu of section 11(c) of these 

Crop Provisions, in the event of loss or 

damage covered by this policy, we will 

settle your claim by: 

(1) Multiplying 60 percent by your 

production guarantee per acre; 

(2) Multiplying the result in section 

13(l)(1) by the number of acres that do 

not have an adequate stand; 

(3) Multiplying the result in section 

13(l)(2) by the price election; and 

(4) Multiplying the result in section 

13(l)(3) by your share. 

For example: 

Assume that you have a 100 percent 

share in 100 acres of mint with a 

production guarantee of 50 pounds of 

oil per acre and a price election of $12 

per pound. Also assume that you do not 

have an adequate stand on 50 acres by 

the date coverage ends for this option 

because an insured cause has damaged 

the stand. Your Winter Coverage Option 

payment would be calculated as 

follows: 

(1) 60 percent x 50 pound production 

guarantee = 30 pound production 

guarantee per acre; 

(2) 30 pound production guarantee 

per acre x 50 acres without an adequate 

stand = 1,500 pounds; 

(3) 1,500 pounds x $12 price election 

= $18,000; and 

(4) $18,000 x 100 percent share = 

$18,000 Winter Coverage Option 

payment. 

(m) In lieu of section 11(d) of these 

Crop Provisions, the population of live 

mint plants to be counted from 

insurable acreage on the unit will be not 

less than the population of live mint 

plants in an adequate stand for acreage: 

(1) That is abandoned; 

(2) That is put to another use without 

our consent; 

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24530 Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Rules and Regulations 

(3) For which you fail to meet the 

requirements contained in section 13(h); 

or 

(4) That is damaged solely by 

uninsured causes. 

(n) Acreage for which a Winter 

Coverage Option payment has been 

made is no longer insurable under the 

Crop Provisions for the current crop 

year. Any mint production subsequently 

harvested from uninsured acreage for 

the crop year and not kept separate from 

production from insured acreage will be 

considered production to count. 

(o) Acreage for which a Winter 

Coverage Option payment has been 

made will receive an amount of 

production of zero when computing 

subsequent year’s approved yield. 

(p) Sections 11(e), (f), and (g) of these 

Crop Provisions do not apply to this 

option. 

Signed in Washington, DC, on April 25, 

2007. 

Eldon Gould, 

Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E7–8340 Filed 5–2–07; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Docket No. AMS–FV–06–0208; FV07–966– 

1 FIR] 

Tomatoes Grown in Florida; Change in 

Handling Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting, as a 

final rule, without change, an interim 

final rule changing the handling 

requirements currently prescribed under 

the Florida Tomato marketing order 

(order). The order regulates the handling 

of tomatoes grown in Florida, and is 

administered locally by the Florida 

Tomato Committee (Committee). This 

rule continues in effect the action that 

limited the use of inverted lids on 

tomato containers to the handler whose 

information initially appeared on the 

lid. This rule helps ensure that lids do 

not contain the information for more 

than one active handler and aids in 

maintaining the positive identification 

and traceability of Florida tomatoes. 

EFFECTIVE DATE: June 4, 2007. 

FOR FURTHER INFORMATION CONTACT: 

William Pimental, Marketing Specialist; 

or Christian Nissen, Regional Manager, 

Southeast Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or E-mail: 

William.Pimental@usda.gov or 

Christian.Nissen@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 125 and Order No. 966, both as 

amended (7 CFR part 966), regulating 

the handling of tomatoes grown in 

Florida, hereinafter referred to as the 

‘‘order.’’ The order is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ 

USDA is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This rule continues in effect the 

action that changed the handling 

requirements currently prescribed under 

the order. This rule continues to limit 

the use of inverted lids on tomato 

containers to the handler whose 

information initially appeared on the 

lid. This rule helps ensure that lids do 

not contain the information for more 

than one active handler and aids in 

maintaining the positive identification 

and traceability of Florida tomatoes. 

This action was unanimously 

recommended by the Committee at a 

meeting on October 4, 2006. 

Section 966.52 of the order provides 

the authority to establish pack and 

container requirements for tomatoes 

grown under the order. This includes 

fixing the size, weight, capacity, 

dimensions, markings, or pack of the 

container or containers which may be 

used in the handling of tomatoes. 

Section 966.323 of the order’s 

administrative rules prescribes the 

handling regulations for Florida 

tomatoes. Section 966.323(a)(3) 

delineates the requisite container 

requirements for weight, markings, and 

appearance. The section specifies, in 

part, that each container or lid must 

show the name and address of the 

registered handler. 

The majority of Florida tomatoes are 

packed in containers that have a 

separate lid. Most lids are preprinted 

with the handler’s name and address. In 

addition, most lids can be inverted by 

reversing the lid so the blank side is on 

the outside, and the preprinted 

information is flipped to the underside 

of the lid. This is done so new 

information can be printed on the lid. 

This rule amends § 966.323(a)(3) by 

limiting the use of inverted lids on 

tomato containers to the handler whose 

information first appeared on the lid. 

Inverted lids have been used in 

minimal quantities in past seasons, 

usually when a tomato packing 

operation was purchased by another 

entity. Any containers included in the 

purchase could be used by the 

purchasing handler by inverting the lids 

so the purchaser’s information could be 

affixed on the clean side. Usually there 

were not many containers remaining, so 

the containers requiring inverted lids 

were fairly limited in quantity. 

Recently, container sales companies 

have started offering their container 

overruns at discounted prices to tomato 

handlers. These containers usually have 

preprinted handler and product 

information on the lids. The Committee 

is concerned this could significantly 

increase the number of inverted lids 

being used by the industry and could 

pose problems with the positive 

identification and traceability of 

tomatoes. 

In their discussion of this issue, the 

Committee agreed the ability to 

positively identify product is a necessity 

in today’s marketplace. The Committee 

expressed concern that the practice of 

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