Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Rules and Regulations 22467 

shipment will be suspended from the 

export program until appropriate 

measures, agreed upon by the NPPO of 

the exporting country and APHIS, have 

been taken. 

(g) Commercial consignments. The 

pitaya fruit may be imported in 

commercial consignments only. 

(h) Phytosanitary certificate. Each 

consignment of pitaya fruit must be 

accompanied by a phytosanitary 

certificate issued by the NPPO of the 

exporting country, containing an 

additional declaration stating that the 

fruit in the consignment was produced 

in accordance with requirements in 7 

CFR 319.56–55. 

(Approved by the Office of Management and 

Budget under control number 0579–0378) 

Done in Washington, DC, this 9th day of 

April 2012. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2012–9066 Filed 4–13–12; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 457 

[Docket No. FCIC–11–0006] 

RIN 0563–AC32 

Common Crop Insurance Regulations; 

Fresh Market Tomato (Dollar Plan) 

Crop Provisions 

AGENCY: Federal Crop Insurance 

Corporation, USDA. 

ACTION: Final rule. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) finalizes the 

Common Crop Insurance Regulations, 

Fresh Market Tomato (Dollar Plan) Crop 

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 16, 

2012. 

FOR FURTHER INFORMATION CONTACT: Tim 

Hoffmann, 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 the informal 

administrative review process of good 

farming practices as applicable, must be 

exhausted before any action against 

FCIC for judicial review may be brought. 


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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), Fresh Market Tomato 

(Dollar Plan) Crop Provisions that were 

published by FCIC on November 17, 

2011, as a notice of proposed 

rulemaking in the Federal Register at 76 

FR 71271–71276. The public was 

afforded 30 days to submit comments 

after the regulation was published in the 

Federal Register. 

A total of 136 comments were 

received from 14 commenters. The 

commenters were farmers, trade 

associations, an insurance agent, an 

insurance company, and other 

interested parties. 

The public comments received 

regarding the proposed rule and FCIC’s 

responses to the comments are as 

follows: 

Section 1—Definitions 

Comment: In regard to the definition 

of ‘‘acre’’ commenters asked for 

additional information regarding how 

unplanted acreage (e.g., field irrigation 

canals and furrows, or field roads for 

spraying and handling harvested 

tomatoes) should be deducted when 

reporting planted acres. 

Response: It would not be possible to 

include this information in this rule 

because of the complexities involved. 

However, FCIC provides several sources 

of information and examples to be used 

by the insurance providers, agents and 

their producers for determining planted 

acreage for fresh market tomatoes. The 

Risk Management Agency (RMA) 

published Manager’s Bulletin MGR–09– 

010 on November 18, 2009, which 

provided appropriate methods for 

determining ‘‘planted acreage.’’ The 

clarifying information and additional 

examples in this bulletin were 

incorporated into the 2010 Loss 

Adjustment and Standards Handbook 

(LASH) and is available for the 

insurance providers, their agents and 

producers to use in calculating and 

reporting their planted acreage. 

Comment: In regard to the new ‘‘fresh 

market tomatoes’’ definition, a few 

commenters recommended that other 

types or varieties of tomatoes should be 

insured under this policy (greenhouse, 

hydroponic, heirlooms, etc.). 

Response: FCIC disagrees with these 

recommendations to insure these other 

types of tomatoes. FCIC added the new 

definition of ‘‘fresh market tomatoes’’ to 

clarify the Fresh Market Tomato (Dollar 

Plan) Crop Provisions is primarily 

designed to insure ‘‘field grown mature 

green or ripe fresh market tomatoes.’’ 

These are the traditional large ‘‘round’’ 

or ‘‘globe’’ field grown tomatoes that 

account for approximately 90 percent of 

the fresh market tomato production. In 

addition, there must be standards for 

determining the fresh market tomatoes 

and the U.S. Standards for Grades of 

Fresh Tomatoes, and the AMS Federal 

Marketing Order (FMO #966) are the 

primary federal regulations that govern 

these traditional ‘‘round or globe’’ field 

grown fresh market tomatoes. These 

other tomatoes are not field grown and 

there are no such established standards 

for these other types or varieties of 

tomatoes. No change has been made. 

Comment: In regard to the definitions 

of ‘‘harvest’’ and ‘‘penhookers’’, some 

commenters recommended tomatoes 

that are field packed as ‘‘ripe’’ tomatoes, 

and tomatoes salvaged by penhookers 

should be considered a harvest. 

Response: Field packed ‘‘ripe’’ 

tomatoes meet the definition of ‘‘fresh 

market tomatoes’’ so they qualify as 

harvested. FCIC considers all 

‘‘penhooked’’ tomatoes as salvage value, 

since the penhookers pay the producer 

directly and should be treated 

separately from harvested fresh market 

tomatoes because they usually have less 

value. However, the revenue received 

from the penhookers must still be 

reported in their total dollar value of 

production to count. No change has 

been made. 

Section 8—Insured Crop 

Comment: Commenters recommended 

that field grown cherry, grape, plum or 

roma types of fresh market tomatoes be 

insured under this policy by including 

these types in the Special Provisions. 

Response: FCIC agrees and proposed 

to include the cherry, grape, plum or 

roma types of tomatoes via the Special 

Provisions. This provision was left 

unchanged in this final rule. 

Section 10—Insurance Period 

Comment: Commenters recommended 

the calendar date for the end of the 

insurance period be increased to 140 

days after transplanting. Under the 

current policy the end of the insurance 

period is 125 days after transplanting. 

Response: No changes were proposed 

to section 10(f) regarding the end of the 

insurance period for transplanted or 

replanted tomatoes. FCIC only proposed 

to remove the provisions regarding 

direct seeded tomatoes. Since the public 

was not provided an opportunity to 

comment on the extension of the end of 

the insurance period to 145 days and 

the recommendation does not address a 

conflict or vulnerability in the crop 

provisions, FCIC cannot consider the 

recommended change. No change has 

been made to the final rule. 

Section 12—Replanting Payments 

Comment: Commenters recommended 

raising the current replanting payments 

from $600 to $900 per acre. 

Response: No changes were proposed 

to sections 12(a), 12(b), and 12(c). Since 

the public was not provided an 

opportunity to comment on an increase 

of replanting payments and the 

recommendation does not address a 

conflict or vulnerability in the 

provisions, FCIC cannot consider the 

recommended change. No change has 

been made. 

Section 14—Settlement of Claim 

Comment: Commenters recommended 

under ‘‘Section 14(c)(2)(i) that appraised 

potential production, as currently in the 

policy, allows up to 30 cartons that do 

not count against the grower if tomatoes 

have been picked 3 times.’’ 

Response: FCIC disagrees with this 

recommendation. There is no language 

in the current policy that indicates there 

should be a 30 carton reduction in the 

grower’s production to count if tomatoes 

are harvested more than three times. 

FCIC is revising the language in section 

14(c)(2)(i) to clarify and state potential 

production on any fresh market tomato 

acreage that has not been harvested the 

required number of times as specified in 

the Special Provisions will be included 

in the total appraised production. This 

will allow flexibility for future harvest 

requirements for specialty tomatoes 

such as cherry, grape, plum or roma 

tomatoes. 

Comment: Commenters asked for 

clarification on new policy wording in 

section 14(c)(3). 

Response: FCIC is not sure what 

needs clarifying. Section 14(c)(3) 

provides the method for valuing sold 

harvested production and is the same 

type of calculation used for the 

Summary of Harvested Production 

Worksheet in the current LASH to 

determine the total dollar value per 

load. Therefore, this calculation should 

already be familiar to producers, agents 

and insurance providers. 

Comment: Under Section 14(c)(4) 

commenters recommended unsold 

harvested production should not be 

counted as production to count if these 

tomatoes are ‘‘inspected and dumped’’ 

due to quality defects. 


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Response: The Proposed Rule makes 

it clear that harvested production that is 

damaged due to insurable causes such 

that it is unmarketable or unsold is not 

counted as production to count. This 

would include tomatoes that are 

dumped due to quality defects resulting 

from insured causes that render the 

tomato unmarketable. It is only unsold 

harvested production that is not 

damaged by an insured cause of loss is 

considered as production to count. No 

change has been made. 

Comment: Under Section 14(c)(5) 

commenters recommended field 

packed/penhooked tomatoes or salvage 

value count as value received, for there 

is no picking cost involved. 

Response: FCIC considers field 

packed tomatoes as production to count 

under sections 14(c)(3) and 14(c)(4) 

because producers do incur harvesting 

costs. Section 14(c)(5) clarifies 

penhooked tomatoes are a salvage 

operation and any salvage value paid to 

the producer by penhookers will be 

added to the total dollar value of 

production to count. Since no harvest 

costs are incurred for penhooked 

tomatoes, they do not reduce their value 

for the purposes of establishing the total 

dollar value of the production to count. 

No change has been made. 

Section 16—Minimum Value Option 

Comment: Commenters recommended 

that both Minimum Value Options 

(MVO I) and (MVO II) remain in the 

policy. 

Response: As stated in the Proposed 

Rule, FCIC is removing the Minimum 

Value Option II (MVO II) provision 

because allowing the MVO II price to go 

down to zero has resulted in 

unfavorable loss experience and 

program abuse. Under the current policy 

there are two Minimum Value Option 

choices (MVO I) and (MVO II). The 

producer can purchase either Minimum 

Value Option and pay additional 

premium. The current 2012 MVO I 

reduces the Minimum Value price to 

$4.75 per carton while the current 2012 

MVO II reduces the Minimum Value 

price to $1.00 per carton, from the 

current Minimum Value price of $6.95. 

Historically, producers chose MVO II 

and it has resulted in excessive losses 

because tomatoes slightly damaged due 

to rain are valued at the MVO II price 

of $1.00 per carton for claims 

settlement; however, producers are 

often able to salvage or market such 

production in excess of $1.00 per 

carton. These excess loss payments 

unnecessarily increase premium rates 

for all producers leading to overall 

increased program costs. Additionally, 

having two options adds unnecessary 

complexity to the program. 

Therefore, this final rule eliminates 

the current MVO II and will offer one 

MVO price as specified in the Special 

Provisions. The Risk Management 

Agency will be diligent in establishing 

and maintaining a fair and equitable 

MVO price in future crop years. No 

change has been made. 

In addition to the changes described 

above, FCIC has made minor editorial 

changes. 

Good cause is shown to make this rule 

effective less than 30 days after 

publication in the Federal Register. 

Good cause to make a rule effective less 

than 30 days after publication in the 

Federal Register exists when the 30 day 

delay in the effective date is impractical, 

unnecessary, or contrary to the public 

interest. 

With respect to the provisions of this 

final rule, it would be contrary to public 

interest to delay implementation 

because public interest is served by 

improving the insurance product as 

follows: (1) Increasing insurance 

flexibility by providing coverage for 

specific types of tomatoes via the 

Special Provisions instead of by written 

agreement; (2) providing simplification 

and clarity to the Fresh Market Tomato 

(Dollar Plan) crop insurance program so 

it is easier for producers and agents to 

understand; and (3) only offering one 

Minimum Value Option that more 

accurately reflects the salvage value of 

slightly damaged tomatoes for claim 

purposes which addressed concerns 

raised about the Fresh Market Tomato 

claims process. 

If FCIC is required to delay 

implementation of this rule after the 

date it is published, the provisions of 

this rule could not be implemented 

until the 2014 crop year. This would 

mean the affected producers would be 

without the benefits described above for 

an additional year. 

For reasons stated above, good cause 

exists to make these policy changes 

effective less than 30 days after 

publication in the Federal Register. 

List of Subjects in 7 CFR Part 457 

Crop insurance, Fresh market tomato 

(dollar plan), 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 § 457.139 as follows: 

■ a. Revise the introductory text; 

■ b. Remove the paragraph immediately 

preceding section 1; 

■ c. Amend section 1 by: 

■ i. Adding definitions for ‘‘allowable 

cost’’, ‘‘amount of insurance per acre’’, 

‘‘fresh market tomatoes’’, ‘‘minimum 

value’’, ‘‘penhookers’’, ‘‘price received’’, 

and ‘‘registered handler’’; 

■ ii. Removing the definitions of 

‘‘planted acreage’’ and ‘‘practical to 

replant’’; 

■ iii. Revising the definitions of ‘‘acre’’, 

‘‘direct marketing’’, ‘‘harvest’’, ‘‘plant 

stand’’, and ‘‘potential production’’; and 

■ iv. Amending the definition of ‘‘crop 

year’’ by removing the phrase ‘‘of ‘crop 

year’ contained in section 1 

(Definitions) of the Basic Provisions 

(§ 457.8)’’ and adding the phrase 

‘‘contained in the Basic Provisions 

(§ 457.8)’’ in its place. 

■ d. Amend section 3 by: 

■ i. Removing the phrases ‘‘(Insurance 

Guarantees, Coverage Levels, and Prices 

for Determining Indemnities)’’ and 

‘‘(§ 457.8)’’ in paragraphs (a) and (c); 

■ ii. Remove the comma following 

‘‘Basic Provisions’’ in paragraphs (a) and 

(c); 

■ iii. Revising the table in paragraph (d); 

and 

■ iv. Revising paragraph (e). 

■ e. Amend section 4 by removing the 

phrases ‘‘(Contract Changes)’’ and 

‘‘(§ 457.8)’’. 

■ f. Amend section 5 by removing the 

phrases ‘‘(Life of Policy, Cancellation, 

and Termination)’’ and ‘‘(§ 457.8)’’. 

■ g. Amend section 6 introductory text 

by removing the phrases ‘‘(Report of 

Acreage)’’ and ‘‘(§ 457.8)’’. 

■ h. Amend section 7 by: 

■ i. Removing the phrases ‘‘(Annual 

Premium)’’ and ‘‘(§ 457.8)’’; and 

■ ii. Removing the phrase ‘‘(e.g., fall 

direct-seeded irrigated)’’ and adding the 

phrase ‘‘(e.g., fall transplanted 

irrigated)’’ in its place. 

■ i. Amend section 8 by: 

■ i. Revising the introductory text; and 

■ ii. Revising paragraph (c)(4). 

■ j. Amend section 9 by: 

■ i. Removing the phrases ‘‘(Insurable 

Acreage)’’ and ‘‘(§ 457.8)’’ in paragraphs 

(a) and (b); 

■ ii. Removing the phrase ‘‘or 60 days of 

direct seeding’’ in paragraph (b)(1)(iii); 

■ iii. Removing the word ‘‘satisfied’’ 

and adding the word ‘‘met’’ in its place 

in paragraph (b)(2) introductory text; 

and 


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22470 Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Rules and Regulations 

■ iv. Revising paragraph (b)(3). 

■ k. Amend section 10 by: 

■ i. Revising the introductory text; 

■ ii. Revising paragraph (e); and 

■ iii. Revising paragraph (f). 

■ l. Amend section 11 by: 

■ i. Removing the phrases ‘‘(Causes of 

Loss)’’ and ‘‘(§ 457.8)’’ in paragraphs (a) 

introductory text and (b); and 

■ ii. Revising paragraph (b)(2). 

■ m. Amend section 12(a) and 12(c) by 

removing the phrases ‘‘(Replanting 

Payment)’’ and ‘‘(§ 457.8)’’. 

■ n. Amend section 13 introductory text 

by removing the phrases ‘‘(Duties in the 

Event of Damage or Loss)’’ and 

‘‘(§ 457.8)’’. 

■ o. Amend section 14 by: 

■ i. Revising paragraph (b)(4)(ii); 

■ ii. Adding an example following 

paragraph (b)(5); 

■ iii. Revising paragraph (c)(2)(i); 

■ iv. Revising paragraph (c)(3); 

■ v. Adding a new paragraph (c)(4); and 

■ vi. Adding a new paragraph (c)(5). 

■ p. Revise section 16. 

■ q. Add an example following 

paragraph 16(c). 

The revised and added text reads as 

follows: 

§ 457.139 Fresh market tomato (dollar 

plan) crop insurance provisions. 

The fresh market tomato (dollar plan) 

crop insurance provisions for the 2013 

and succeeding crop years are as 

follows: 

* * * * * 

1. Definitions. 

Acre. 43,560 square feet of planted 

acreage when row widths do not exceed 

six feet. If row widths exceed six feet, 

the land area on which at least 7,260 

linear feet of rows are planted. 

Allowable cost. The dollar amount per 

carton for harvesting, packing, and 

handling as stated in the Special 

Provisions. 

Amount of insurance per acre. The 

dollar amount of insurance per acre 

obtained by multiplying the reference 

maximum dollar amount shown in the 

actuarial documents by the coverage 

level percentage you elect. 

* * * * * 

Direct marketing. The sale of the 

insured crop directly to consumers 

without the intervention of an 

intermediary such as a registered 

handler, wholesaler, retailer, packer, 

processor, shipper or buyer. Examples 

of direct marketing include selling 

through an on-farm or roadside stand, 

farmer’s market, and permitting the 

general public to enter the field for the 

purpose of picking all or a portion of the 

crop. 

* * * * * 

Fresh market tomatoes. Field grown 

mature green or ripe fresh market 

tomatoes that meet the Agricultural 

Marketing Service United States 

Standards for Grades of Fresh Tomatoes; 

and the applicable Federal Marketing 

Order and Florida Tomato Committee 

Regulations, or their successors. 

Harvest. The picking of fresh market 

tomatoes from the plants, excluding 

tomatoes salvaged by penhookers. 

* * * * * 

Minimum value. The dollar amount 

per carton shown in the Special 

Provisions we will use to value 

appraised and unsold harvested 

production to count. 

Penhookers. Individuals who 

purchase the right to salvage tomatoes 

remaining in the field after commercial 

harvests are completed. 

Plant stand. The number of live 

plants per acre prior to the occurrence 

of an insured cause of loss. 

* * * * * 

Potential production. The number of 

cartons of field grown mature green or 

ripe fresh market tomatoes that the 

tomato plants will or would have 

produced per acre assuming normal 

growing conditions and practices by the 

end of the insurance period. 

Price received. The gross dollar 

amount per carton received by the 

producer before deductions of allowable 

costs. 

Registered handler. A person or entity 

officially certified by the Florida 

Tomato Committee, or successor entity, 

to inspect and enforce all the handling 

regulations for fresh market tomatoes, 

and report the required packout data to 

the Florida Tomato Committee. 

* * * * * 

3. Amounts of Insurance and 

Production Stages. 

* * * * * 

(d) * * * 

Stage 

Percent of the 

amount of insurance per acre that 

you selected 

Length of time if transplanted 

1 .......................................... 50 From planting through the 29th day after planting. 

2 .......................................... 75 From the 30th day after planting until the beginning of stage 3. 

3 .......................................... 90 From the 60th day after planting until the beginning of the final stage. 

Final .................................... 100 Begins the earlier of 75 days after planting, or the beginning of harvest. 

(e) Any acreage of fresh market 

tomatoes damaged in the first, second, 

or third stage to the extent that the 

majority of producers in the area would 

not normally further care for the crop, 

the indemnity payable for such acreage 

will be based on the stage the plants had 

achieved when the insured damage 

occurred, even if the producer continues 

to care for the damaged tomatoes. 

* * * * * 

8. Insured Crop. 

In accordance with section 8 of the 

Basic Provisions, the crop insured will 

be all the field grown mature green or 

ripe fresh market tomato types in the 

county as specified in the Special 

Provisions for which a premium rate is 

provided in the actuarial documents: 

* * * * * 

(c) * * * 

(4) Direct seeded fresh market 

tomatoes, unless insured by written 

agreement. 

* * * * * 

9. Insurable Acreage. 

* * * * * 

(3) We will not insure any acreage on 

which tomatoes (except for replanted 

tomatoes in accordance with sections 

9(b)(1) and (2)), peppers, eggplants, 

strawberries or tobacco have been grown 

and the soil was not fumigated or 

otherwise properly treated before 

planting the insured tomatoes. 

10. Insurance Period. 

In lieu of section 11 of the Basic 

Provisions, coverage begins on each unit 

or part of a unit the later of the date we 

accept your application, or when the 

tomatoes are planted in each planting 

period. Coverage ends on each unit at 

the earliest of: 

* * * * * 

(e) Final harvest on the unit; or 

(f) The calendar date for the end of the 

insurance period that is 125 days after 

the date of transplanting or replanting 

with transplants. 

11. Causes of Loss. 

* * * * * 

(b) * * * 


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Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Rules and Regulations 22471 

(2) Failure to harvest in a timely 

manner or failure to sell the tomatoes, 

unless such failure is due to actual 

physical damage caused by an insured 

cause of loss that occurs during the 

insurance period. For example, we will 

not pay an indemnity if you are unable 

to sell the insured crop due to 

quarantine, boycott, or refusal of any 

person to accept production. 

* * * * * 

14. Settlement of Claim. 

* * * * * 

(b) * * * 

(4) * * * 

(ii) For catastrophic risk protection 

coverage, the result of multiplying the 

total value of production to count 

determined in accordance with section 

14(c) by the percentage contained in the 

Special Provisions. 

(5) * * * 

For Example: You have a 100 percent share in 10.0 acres of fresh market tomatoes. You select a 70% coverage level of the reference maximum dollar amount of $7,500 per acre. The average price received is $10.00 per carton of tomatoes. Allowable costs are $4.25 per carton. 

Minimum value is $5.00 per carton. Your total sold production is 5,000 cartons (5,000 ÷ 10.0 = 500 cartons per acre) and you have an additional 1,000 cartons of unsold harvested production (1,000 ÷ 10.0 = 100 cartons per acre). Your loss occurred in the final stage of production. 

Your total indemnity is calculated as follows: 

$7,500 × 70% = dollar amount of insurance per acre ............................................................................ $5,250 

14(c)(3) ............... 500 cartons × $5.75 = value of sold production ($10 selling price minus $4.25 allowable cost) .......... 2,875 

14(c)(4) ............... 100 cartons of unsold harvested production × $5 minimum value per carton ....................................... +500 

Total value of production to count .......................................................................................................... 3,375 

14(b)(5) ............... Indemnity per acre = ($5,250 ¥ $3,375) × 100% share ........................................................................ 1,875 

$1,875 × 10.0 acres = $18,750 total indemnity payment ....................................................................... 18,750 

(c) * * * 

(2) * * * 

(i) Potential production on any fresh 

market tomato acreage that has not been 

harvested the required number of times 

as specified in the Special Provisions. 

* * * * * 

(3) The total value of all sold 

harvested production from the insurable 

acreage will be the dollar amount 

obtained by subtracting the allowable 

cost contained in the Special Provisions 

from the price received for each carton 

of fresh market tomatoes in the load 

(this result may not be less than the 

minimum value shown in the Special 

Provisions for any carton of tomatoes), 

and multiplying this result by the 

number of cartons of fresh market 

tomatoes harvested. 

(4) The total value of all unsold 

harvested production will be the dollar 

amount obtained by multiplying the 

number of cartons of such tomatoes on 

the unit by the minimum value shown 

in the Special Provisions for the 

planting period. Harvested production 

that is damaged or defective due to an 

insured cause of loss and is not sold 

will not be counted as production to 

count. 

(5) Any penhooker salvage value paid 

to you will be added to the total dollar 

value of production to count. 

* * * * * 

16. Minimum Value Option. 

(a) The provisions of this option are 

continuous and will be attached to and 

made a part of your insurance policy, if: 

(1) You elect the Minimum Value 

Option on your application, or on a 

form approved by us, on or before the 

sales closing date for the initial crop 

year in which you wish to insure fresh 

market tomatoes (dollar plan) 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) In lieu of the provisions contained 

in section 14(c)(3) and 14(c)(4) of these 

Crop Provisions, the total value of 

harvested production will be 

determined as follows: 

(1) For sold harvested production, the 

dollar amount obtained by subtracting 

the allowable cost contained in the 

Special Provisions from the price 

received for each carton of fresh market 

tomatoes in the load (this result may not 

be less than the minimum value option 

price contained in the Special 

Provisions for any carton of tomatoes 

sold), and multiplying this result by the 

number of cartons of fresh market 

tomatoes sold; and 

(2) For unsold harvested production, 

the dollar amount obtained by 

multiplying the number of cartons of 

such fresh market tomatoes on the unit 

by the minimum value shown in the 

Special Provisions for the planting 

period. Harvested production that is 

damaged or defective due to an insured 

cause of loss and is not sold will not be 

counted as production to count. 

(c) This option may be canceled by 

either you or us for any succeeding crop 

year by giving written notice on or 

before the cancellation date preceding 

the crop year for which the cancellation 

of this option is to be effective. 

Example with Minimum Value Option: You have a 100 percent share in 10.0 acres of fresh market tomatoes. You select a 70% coverage level 

of the reference maximum dollar amount of $7,500 per acre. The average price received is $6.00 per carton of tomatoes. Allowable costs are 

$4.25 per carton. Minimum value is $5.00 per carton. The Minimum Value Option price is $2.00 per carton. Your total sold production is 5,000 

cartons (5,000 ÷ 10.0 = 500 cartons per acre) and you have an additional 1,000 cartons of unsold harvested production (1,000 ÷ 10.0 = 100 

cartons per acre). Your loss occurred in the final stage of production. Your total indemnity is calculated as follows: 

$7,500 × 70% = dollar amount of insurance per acre ............................................................................ $5,250 

16(b)(1) ............... 500 cartons × $2 = value of sold production ($6 price received minus $4.25 allowable costs = $1.75. 

$2.00 minimum value option price is greater than $1.75).

1,000 

16(b)(2) ............... 100 cartons of unsold harvested production × $5 minimum value per carton ....................................... 500 

Total value of production to count .......................................................................................................... 1,500 

16(b) .................... Indemnity per acre = $5,250 ¥ $1,500 = $3,750 × 100% share .......................................................... 3,750 

$3,750 × 10.0 acres = $37,500 total indemnity payment ....................................................................... 37,500 


emcdonald on DSK29S0YB1PROD with RULES
22472 Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Rules and Regulations 

Signed in Washington, DC, on April 5, 

2012. 

William J. Murphy, 

Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. 2012–8902 Filed 4–13–12; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF ENERGY 

10 CFR Part 430 

[Docket No. EERE–2008–BT–STD–0005] 

RIN 1904–AB57 

Energy Conservation Program: Energy 

Conservation Standards for Certain 

External Power Supplies; Correction 

AGENCY: Department of Energy. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: The Department of Energy 

(DOE) is publishing this correction to its 

regulations pertaining to the energy 

conservation standards for certain 

external power supplies to re-insert a 

table that had been inadvertently 

deleted by a technical amendment 

published on September 19, 2011. That 

table contained the statutorilyprescribed energy conservation 

standards for all Class A external power 

supplies to meet. 

DATES: This correction is effective April 

16, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Mr. Victor Petrolati, U.S. Department of 

Energy, Office of Energy Efficiency 

and Renewable Energy, Building 

Technologies Program, EE–2J, 1000 

Independence Avenue SW., 

Washington, DC 20585–0121. 

Telephone: (202) 586–4549. Email: 

Victor.Petrolati@ee.doe.gov. 

Mr. Michael Kido, U.S. Department of 

Energy, Office of the General Counsel, 

GC–71, 1000 Independence Avenue 

SW., Washington, DC 20585–0121. 

Telephone: (202) 586–8145. Email: 

michael.kido@hq.doe.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Energy Independence and 

Security Act of 2007 (Pub. L. 110–140) 

amended section 325(u)(3) of the Energy 

Policy and Conservation Act (EPCA) to 

establish energy conservation standards 

for all Class A external power supplies. 

(42 U.S.C. 6295(u)(3)) Those standards 

consisted of minimum efficiency levels 

that these products must meet during 

active mode (i.e. when an external 

power supply is in actual use) and noload mode (i.e. when an external power 

supply is plugged into AC mains but its 

output is not connected to an electrical 

load). DOE added these standards to its 

regulations as part of a final rule that 

incorporated a series of statutorilyprescribed changes made by the Energy 

Independence and Security Act of 2007 

(Pub. L. 110–140) (Dec. 19, 2007). That 

final rule was published on March 23, 

2009. See 74 FR 12058. 

Subsequently, Congress revisited 

elements of the no-load standards that it 

had prescribed for Class A external 

power supplies. On January 4, 2011, 

Congress enacted Public Law 111–360, 

which amended section 325(u)(3) of 

EPCA (42 U.S.C. 6295(u)(3)) by defining 

a new term—‘‘security or life safety 

alarm or surveillance system’’—and 

excluding those external power supplies 

used in certain security or life safety 

alarms or surveillance system 

components from the no-load mode 

requirements Congress had previously 

set. To address this change, DOE issued 

a technical amendment to codify 

verbatim in regulation these statutory 

changes. See 76 FR 57897 (Sept. 19, 

2011). 

Recently, DOE discovered that the 

amendatory language used in modifying 

the regulatory text to account for the 

January 2011 statutory changes to EPCA 

resulted in the Office of the Federal 

Register removing the statutory Class A 

external power supply standards from 

the regulations. Today’s document 

addresses that error by re-inserting these 

pre-existing statutory standards into the 

regulations at 10 CFR 430.32(w)(1)(i) 

where they were located previously. 

DOE notes that, in spite of this 

inadvertent removal, the standards have 

remained in effect by virtue of their 

continued existence as a statutory 

requirement. See 42 U.S.C. 

6295(u)(3)(A). 

Pursuant to authority at 5 U.S.C. 

553(b)(B), the DOE finds good cause to 

waive the requirement for prior notice 

and an opportunity for public comment 

on this rulemaking because such 

procedures would be unnecessary. As 

DOE is merely re-inserting into the Code 

of Federal Regulations statutory 

standards already applicable to these 

products prior notice and an 

opportunity for public comment would 

serve no useful purpose. For the same 

reason, DOE finds good cause under 5 

U.S.C. 553(d)(3) to waive the 30-day 

delay in effective date and make this 

rule effective immediately. 

List of Subjects in 10 CFR Part 430 

Administrative practice and 

procedure, Confidential business 

information, Energy conservation, 

Household appliances, and Small 

businesses. 

Issued in Washington, DC, on April 9, 

2012. 

Kathleen B. Hogan, 

Deputy Assistant Secretary for Energy 

Efficiency, Energy Efficiency and Renewable 

Energy. 

For the reasons set forth in the 

preamble, DOE corrects 10 CFR part 430 

as set forth below: 

PART 430—ENERGY CONSERVATION 

PROGRAM FOR CONSUMER 

PRODUCTS 

■ 1. The authority citation for part 430 

continues to read as follows: 

Authority: 42 U.S.C. 6291–6309; 28 U.S.C. 

2461 note. 

■ 2. Section 430.32 is amended by 

revising paragraph (w)(1)(i) to read as 

follows: 

§ 430.32 Energy and water conservation 

standards and their effective dates. 

* * * * * 

(w) Class A external power supplies. 

(1)(i) Except as provided in paragraphs 

(w)(1)(ii) and (w)(1)(iii) of this section, 

all Class A external power supplies 

manufactured on or after July 1, 2008, 

shall meet the following standards: 

Nameplate output Required efficiency (decimal equivalent of a percentage) 

Active Mode 

Less than 1 watt ....................................................................................... 0.5 times the Nameplate output. 

From 1 watt to not more than 51 watts .................................................... The sum of 0.09 times the Natural Logarithm of the Nameplate Output 

and 0.5. 

Greater than 51 watts ............................................................................... 0.85. 


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