This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

13961 

Vol. 77, No. 46 

Thursday, March 8, 2012 

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. 


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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 


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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 nonstorage 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 


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13964 Federal Register / Vol. 77, No. 46 / Thursday, March 8, 2012 / Rules and Regulations 

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. 


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Federal Register / Vol. 77, No. 46 / Thursday, March 8, 2012 / Rules and Regulations 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 

■ 1. The authority citation for 7 CFR 

part 457 continues to read as follows: 

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

■ 2. Amend § 457.135 as follows: 

■ a. Revise the introductory text; 

■ 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’’; 

■ c. Remove the first section 2 heading 

and revise section 2; 

■ d. Amend section 3(a) by removing 

the phrase ‘‘(Insurance Guarantees, 

Coverage Levels, and Prices for 

Determining Indemnities)’’; 

■ e. Revise section 3(b) introductory 

text; 

■ f. Revise sections 3(b)(2)(i), 3(b)(2)(ii), 

and 3(b)(3); 

■ g. Revise section 3(c); 

■ h. Revise section 4; 

■ i. Revise section 5; 

■ j. Redesignate sections 6 through 14 as 

sections 7 through 15, respectively, and 

add a new section 6; 

■ k. Amend newly redesignated section 

7 by removing the phrase ‘‘(Annual 

Premium)’’; 

■ l. Revise newly redesignated section 8 

introductory text; 

■ m. Amend newly redesignated section 

9 introductory text by removing the 

phrase ‘‘(Insurable Acreage)’’; 

■ n. Amend newly redesignated section 

9(a) by removing the word ‘‘specified’’ 

and adding the word ‘‘designated’’ in its 

place; 

■ 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)’’; 

■ p. Revise newly redesignated section 

10(b); 

■ q. Amend newly redesignated sections 

11(a) introductory text and 11(b) by 

removing the phrase ‘‘(Causes of Loss)’’; 

■ r. Amend newly redesignated section 

12(a) by removing the phrase 

‘‘(Replanting Payment)’’; 

■ s. Revise newly redesignated section 

13(a); 

■ t. Amend newly redesignated section 

14 by removing the phrase ‘‘section 13’’ 

and adding the phrase ‘‘section 14’’ in 

its place everywhere it appears; 

■ 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; 

■ v. Add an example after newly 

redesignated section 14(b)(7); 

■ 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; 

■ x. Revise newly redesignated section 

14(c)(1)(iv); 

■ y. Add an example after newly 

redesignated section 14(c)(1)(iv); and 

■ z. Revise newly redesignated section 

15. 

The revised and added text reads as 

follows: 

§ 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 nonstorage 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. 


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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 nonstorage onions, from the emergence of 

the fourth leaf until eligible for the final 

stage; and 

(ii) For transplanted storage and nonstorage 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, Medina, Bexar, Wilson, Karnes, Bee, and San 

Patricio Counties, Texas, and all Texas Counties lying south thereof.

August 31 ........................... August 31. 

Umatilla County, Oregon; and Walla Walla County, Washington ................................. August 31 ........................... September 30. 

All California Counties, except Lassen, Modoc, Shasta and Siskiyou ......................... September 30 ..................... September 30. 

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 nonstorage 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 × 120 hundredweight (200 

× .60) second stage production 

guarantee = 3,000 hundredweight, and 

75 acres × 200 hundredweight final 

stage production guarantee = 15,000 

hundredweight; 

(2) 3,000 hundredweight second stage 

production guarantee × $8.00 price 

election = $24,000 value of second stage 

production guarantee, and 15,000 

hundredweight final stage production 

guarantee × $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) × $8.00 

price election = $4,000 value of second 

stage production to count, and 16,000 

hundredweight final stage production to 

count × 8.00 price election = $128,000 

value of final stage production to count; 


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Federal Register / Vol. 77, No. 46 / Thursday, March 8, 2012 / Rules and Regulations 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 × 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 × 200 hundredweight 

final stage production guarantee = 5,000 

hundredweight final stage production 

guarantee, 

(2) 5,000 hundredweight final stage 

production guarantee × 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 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 67 

[Docket No. FAA–2012–0245] 

Notice of Intent To Discontinue Use of 

Paper Applications for Airman Medical 

Certification 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of intent 

SUMMARY: The Federal Aviation 

Administration is providing public 

notice regarding its intent to 

discontinue use of the paper version of 

FAA Form 8500–8, the application form 

used to apply for FAA medical 

certification. Maintaining FAA Form 

8500–8 for applicants to complete 

manually is burdensome not only in 

terms of the cost involved, but also in 

terms of the complex logistics and use 

of Agency resources involved. This 

burden becomes all the more 

compounded when the form must be 

revised, reprinted, and redistributed 

(worldwide). The FAA launched an online FAA Form 8500–8 application 

known as ‘‘FAA MedXpress’’ beginning 

in 2007. Since 2007, ‘‘FAA MedXpress’’ 

has evolved considerably, streamlining 

FAA medical certification into a much 

more efficient and seamless process, 

thereby rendering the paper process 

both redundant and obsolete. 

Discontinuing print of FAA Form 8500– 

8 will save considerable resources and 

improve the efficiency of the airman 

medical certification process. 

DATES: This action goes into effect on 

October 1, 2012. It should be noted, 

however, that ‘‘FAA MedExpress’’ 

already is fully operational and ready 

for use. 

ADDRESSES: You can obtain an 

electronic copy of this document by— 

1. Searching the Federal eRulemaking 

Portal at http://www.regulations.gov; 

2. Accessing the Government Printing 

Office’s Web page at http:// 

www.gpo.gov/fdsys/browse/ 

collection.action?collectionCode=FR; or 

3. Contacting the person identified in 

the FOR FURTHER INFORMATION CONTACT

section of this document. 

FOR FURTHER INFORMATION CONTACT: Judi 

Citrenbaum, Office of Aerospace 

Medicine, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–9689; email 

Judi.M.Citrenbaum@faa.gov. 

SUPPLEMENTARY INFORMATION: The FAA 

receives and reviews annually more 

than 400,000 applications for airman 

medical certification. Until 2007, the 

only available means for making 

application was for applicants to 

manually complete an FAA Form 8500– 

8 provided by an FAA-designated 

Aviation Medical Examiner (AME) at 

the time of medical examination and for 

AMEs to record the results of the 

applicant’s medical examination on the 

reverse side of application form 

manually. Since 2007, when the FAA 

launched a digital version of FAA Form 

8500–8, applicants have been able to 

complete the form prior to an 

appointment with an AME for an FAA 

medical examination by accessing it on 

line using a secure, password-protected 

FAA system, known as ‘‘FAA 

MedXpress.’’ At the time of the medical 

examination, therefore, an AME merely 

accesses the applicant’s completed and 

securely stored FAA Form 8500–8 in 

‘‘FAA MedXpress’’ and uses it to 

complete the medical examination and 

record the results. ‘‘FAA MedXpress’’ 

also provides both applicants and AMEs 

the capability to print the form for 

whatever purpose needed. 

FAA Form 8500–8 is considered one 

of the most complex of paper forms still 

in use in the Federal Government. More 

than 5 years of experience with ‘‘FAA 

MedXpress’’ has streamlined the FAA 

medical certification process into a 

more seamless and efficient process. 

Having digitized data, rather than 

handwritten copy, reduces the risk of 

errors being made by applicants, AME 

staff, and AMEs in processing the 

examination. Using ‘‘FAA MedXpress’’ 

exclusively will allow the FAA to make 

and implement any needed or mandated 

changes to the FAA Form 8500–8 in a 

more timely manner, resulting in a more 

dynamic form and eliminating the 

considerable cost and logistical 

challenges involved with printing and 

distributing the form both within and 

outside of the United States. Whenever 

the form must be revised, the initial 

reprinting and redistribution of 

approximately 1.5 million revised forms 

worldwide is very costly and 

considerable waste is incurred 

disposing of superseded forms. 

Many federal forms, including FAA 

forms, (such as applications for pilot 

certificates and ratings) are now fully 


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