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

14775

Vol. 62, No. 60

Friday, March 28, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

General Crop Insurance Regulations,

Fresh Market Tomato Minimum Value

Option, and Fresh Market Tomato

(Dollar Plan) Endorsement; and

Common Crop Insurance Regulations,

Fresh Market Tomato (Dollar Plan)

Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes specific

crop provisions for the insurance of

fresh market (dollar plan) tomatoes. The

provisions will be used in conjunction

with the Common Crop Insurance

Policy Basic Provisions, which contain

standard terms and conditions common

to most crops. The intended effect of

this action is to provide policy changes

to better meet the needs of the insured,

include the current Fresh Market

Tomato (Dollar Plan) Endorsement and

the Fresh Market Tomato Minimum

Value Option with the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current Fresh Market

Minimum Value Option and the Fresh

Market Tomato (Dollar Plan)

Endorsement to the 1997 and prior crop

years.

EFFECTIVE DATE: March 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, United

States Department of Agriculture, 9435

Holmes Road, Kansas City, MO 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office and Management Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order No. 12866, and, therefore, this

rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments on

information collection requirements

previously approved by OMB under

OMB control number 0563–0003

through September 30, 1998. No public

comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, 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. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on states or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant impact on a substantial

number of small entities. New

provisions included in this rule will not

impact small entities to a greater extent

than large entities. Under the current

regulations, a producer is required to

complete an application and acreage

report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity. This regulation

does not alter those requirements.

The amount of work required of the

insurance companies delivering and

servicing these policies will not increase

significantly from the amount of work

currently required. This rule does not

have any greater or lesser impact on the

producer. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 605), and no Regulatory

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order No. 12372

This program is not subject to the

provisions of Executive Order No.

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 No. 12988

The provisions of this rule will not

have a retroactive effect prior to the

effective date. The provisions of this

rule will preempt state and local laws to

the extent such State and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR part 11 must be

exhausted before any action for judicial

review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

On Monday, December 30, 1996, FCIC

published a proposed rule in the

Federal Register at 61 FR 68682–68688

to add to the Common Crop Insurance

Regulations (7 CFR part 457) a new

section, 7 CFR 457.139, Fresh Market

Tomato (Dollar Plan) Crop Insurance

Provisions. The new provisions will be

effective for the 1998 and succeeding
14776 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

crop years. These provisions will

replace and supersede the current

provisions for insuring fresh market

tomatoes (dollar plan) found at 7 CFR

401.137 (Fresh Market Tomato

Minimum Value Option) and 7 CFR

401.139 (Fresh Market Tomato (Dollar

Plan) Endorsement). This rule also

amends 401.137 and 401.139 to limit

their effect to the 1997 and prior crop

years. FCIC will later publish a

regulation to remove and reserve

401.137 and 401.139.

Following publication of the proposed

rule, the public was afforded 30 days to

submit written comments, data and

opinions. A total of 14 comments were

received from the crop insurance

industry and FCIC Regional Service

Offices (RSO). The comments received,

and FCIC’s responses, are as follows:

Comment: The crop insurance

industry questioned removing the term

‘‘marketable’’ from the definition of

harvest. The commenter questioned if it

was intended that the final stage of

insurance on a unit would begin at such

time that unmarketable tomatoes were

harvested.

Response: The current regulation

created confusion since it suggested that

if the tomatoes were not marketable,

they would not be considered as

harvested for the purposes of

determining the insurance period,

calculation of any claims, etc. The

picking of tomatoes on the unit, whether

marketable or not, is considered

harvested. The final stage of insurance

on the unit begins when any tomatoes

are harvested, whether marketable or

not. Requirements of good farming

practices will prevent the harvest of

tomatoes before they are ready. Section

14 contains provisions to determine the

amount of production to be counted for

harvested and unharvested, including

tomatoes that are not marketable.

Therefore, no changes were made to the

definition.

Comment: One comment from the

crop insurance industry recommended

clarifying the language in section 2(a) by

stating ‘‘Basic units, as defined in

section 1 (Definitions) of the Basic

Provisions, will be established by

planting period.’’

Response: FCIC agrees with the

comment and has amended section 2(a)

to indicate a basic unit will be

established by planting period.

However, the definition of ‘‘unit’’ is

contained in the Basic Provision and no

change will be made in that portion of

the provision.

Comment: One comment received

from the crop insurance industry stated

that the references to land

measurements such as leagues and

labors was unnecessary. These types of

land measurement were not applicable

in Florida and crop insurance for fresh

market tomatoes (dollar plan) is only

available in Florida.

Response: Fresh market tomato (dollar

plan) insurance may be expanded into

other areas where such measurements

are applicable. Therefore, no change

will be made.

Comment: One comment from the

crop insurance industry stated that

section 3 of the crop provisions

contained a heading in the stage chart

that was misleading. The chart heading

suggested that the percentages

represented coverage levels that the

insured would select rather than the

amount of insurance that is selected by

the insured. The commenter suggested

that the chart heading should state,

‘‘Percent in effect of your amount of

insurance.’’

Response: FCIC believes the heading

of the stage chart is clearly stated.

Therefore, no change has been made.

Comment: One comment received

from an FCIC RSO recommended

adding a provision to section 6 that

requires the insured to report all of the

dates the insured acreage was planted

within each planting period.

Response: FCIC concurs with the

comment and has added a provision

accordingly.

Comment: The crop insurance

industry questioned if the provision in

section 9(a) that states we will insure

newly cleared land or former pasture

land planted to fresh market tomatoes

was new to the fresh market tomato

(dollar plan) crop insurance policy. The

commenter asked if a waiting period

was applicable before insurance

attached to land which had been newly

cleared and, if the provision is new to

the crop insurance policy, questioned

why it was added.

Response: The provision for insurance

on newly cleared land is not new to the

fresh market tomato (dollar plan) crop

insurance policy. However, FCIC has

clarified the provision so that former

pasture land planted to the insured crop

is also insurable. It is a recommended

practice for the fresh market vegetable

crops to be planted on newly cleared

and former pasture land so no waiting

period is required prior to planting the

insured crop.

Comment: One comment received

from the crop insurance industry

questioned if FCIC intended to liberalize

the current fresh market tomato (dollar

plan) crop provisions by stating in

section 9(b)(3) that we will not insure

any acreage which, in the preceding

planting period, was planted to

tomatoes, peppers, eggplants, or tobacco

unless the soil has been fumigated or

properly treated.

Response: FCIC did not intend to

liberalize the requirements. Tomatoes

that have been replanted do not have to

be fumigated or treated because

nematodes will not have developed yet.

However, crops previously planted on

the same acreage may host nematodes

that will damage the insured crop.

Chemicals that are used to fumigate or

treat the acreage last only two to three

months. As a result, any acreage

previously planted to tomatoes,

peppers, eggplants and tobacco must be

fumigated or treated prior to planting

the insured crop. Therefore, FCIC has

amended the provision.

Comment: The crop insurance

industry questioned if the phrase

‘‘coverage begins * * * the later of the

date we accept your application, or

when the tomatoes are planted in each

planting period’’ means that an

application could be accepted after the

sales closing to have coverage for

subsequent planting periods in the crop

year. The industry questioned the

purpose of having one sales closing date

for the crop.

Response: Section 10 of these

provisions does not alter the

requirement contained in the Basic

Provisions, which states the application

must be submitted by the sales closing

date. The sales closing date corresponds

with the earliest planting period so only

one application is filed for the crop year

and covers all subsequent planting

periods. Since there are multiple

planting periods in each crop year, the

date insurance attaches in each planting

period must be established. Provisions

in section 10 simply clarify when

insurance will attach. Therefore, no

change will be made.

Comment: The crop insurance

industry recommended the cause of loss

due to tropical depression be changed to

‘‘excessive winds sufficient to damage

the crop.’’ The change would provide

coverage for damage due to winds

associated with stalled fronts, severe

thunderstorms, storms or gales. The

commenter indicated a stalled high and

low pressure system with winds in

excess of 60 mph caused damage in

November, 1996, that was not covered

by the current crop insurance policy.

Response: The current endorsement

provides coverage against wind or

excess precipitation occurring in

conjunction with a cyclone. FCIC agrees

that damage to the insured crop may

occur from systems other than a

cyclone. FCIC clarified the provision to

state that a tropical depression which

occurs within the insurance period is an

insured cause of loss. Tropical
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14777

depression is defined as a system

identified by the U.S. Weather Service,

and includes tropical depressions,

hurricanes, tropical storms and gales.

Therefore, no change will be made.

Comment: One comment from the

crop insurance industry recommended

removing disease and insect infestation

as uninsured causes of loss. The

commenter suggested that disease and

insects should be an insured cause of

loss if a producer exhausts all

reasonable means to protect the crop.

This would provide coverage for new

diseases and insects that cannot

presently be controlled by the chemicals

that are available.

Response: FCIC agrees that coverage

should be available for damage due to

disease and insect infestation for which

no effective control measure exists.

Therefore, FCIC has amended the

provisions contained in section 11(b)(1)

accordingly.

Comment: One comment from the

crop insurance industry recommended

raising the maximum amount of the

replanting payment per acre to

approximately $265.00. The $175.00

maximum amount provided in the

current crop policy is not sufficient to

cover actual costs.

Response: FCIC agrees there may be

instances when replanting costs exceed

$175.00 per acre. Therefore, provisions

contained in section 12(b) have been

revised to state that the maximum

amount of the replanting payment per

acre will be the lesser of your actual cost

of replanting, or the result obtained by

multiplying the maximum amount of

the replanting payment contained in the

applicable Special Provisions by your

insured share.

Comment: One comment from the

crop insurance industry recommended

that the allowable cost contained in

section 14 be raised by $.50.

Response: The amount of allowable

costs are provided in the Special

Provisions to allow the flexibility to

adjust the amount at appropriate levels.

Therefore, no change will be made.

Comment: The crop insurance

industry suggested combining the

provisions contained in section 15(e)

with the provisions in section 15(a).

Response: Approval of written

agreements requested after the sales

closing date is the exception, not the

rule. Therefore, these provisions should

be kept separate and no changes have

been made.

Comment: The crop insurance

industry recommended that the

requirement for a written agreement to

be renewed each year be removed.

Terms of the agreement should be stated

in the agreement to fit the particular

situation for the policy, or if no

substantive changes occur from one year

to the next, allow the written agreement

to be continuous.

Response: Written agreements are

intended to change policy terms or

permit insurance in unusual situations

where such changes will not increase

risk. If such practices continue year to

year, they should be incorporated into

the policy or Special Provisions. It is

important to minimize exceptions to

assure that the insured is well aware of

the specific terms of the policy.

Therefore, no changes will be made.

In addition to the changes described

above, FCIC has made the following

changes to the Fresh Market Pepper

Crop Provisions:

1. Section 1—Definition of ‘‘potential

production’’ was amended to state the

classification size for cherry or plum

tomatoes will be contained in the

written agreement. Cherry and plum

tomatoes are currently insured by

written agreement.

2. Section 3(c)—Delete this provision

and renumber the remaining provisions.

This change is to provide consistency

with other fresh market vegetable crops.

3. Section 16(b)(1)(i)—Delete $2.00 as

the specified lowest dollar amount

obtained when computing the minimum

value per carton of tomatoes sold. The

minimum value option price will now

be contained in the Special Provisions

to allow FCIC to ensure that the price is

correct for the county.

Good cause is shown to make this rule

effective upon publication in the

Federal Register. This rule improves the

fresh market tomato (dollar plan)

insurance coverage and brings it under

the Common Crop Insurance Policy

Basic Provisions for consistency among

policies. The earliest contract change

date that can be met for the 1998 crop

year is April 30, 1997. It is therefore,

imperative that these provisions be

made final before that date so that the

reinsured companies and insureds may

have sufficient time to implement these

changes. Therefore, public interest

requires the agency to make the rule

effective upon publication.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Fresh market (dollar

plan) tomato crop insurance regulations,

Fresh market (dollar plan) tomatoes.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 401 and 457 effective for the

1998 and succeeding crop years to read

as follows:

PART 401—GENERAL CROP

INSURANCE REGULATIONS—

REGULATIONS FOR THE 1988 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 401 continues to read as follows:

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

2. Section 401.137 introductory text is

revised to read as follows:

§ 401.137 Fresh market tomato minimum

value option.

The provisions of the Fresh Market

Tomato Minimum Value Option for the

1991 through the 1997 crop years are as

follows:

* * * * *

3. Section 401.139 introductory text is

revised to read as follows:

§ 401.139 Fresh market tomato (dollar

plan) endorsement.

The provisions of the Fresh Market

Tomato Crop Insurance Endorsement for

the 1991 through the 1997 crop years

are as follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

4. The authority citation for 7 CFR

part 457 continues to read as follows:

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

5. Section 457.139 is added to read as

follows:

§ 457.139 Fresh Market Tomato (Dollar

Plan) Crop Insurance Provisions.

The Fresh Market Tomato (Dollar

Plan) Crop Insurance Provisions for the

1998 and succeeding crop years are as

follows:

FCIC policies:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Fresh market tomato (dollar plan) crop

provisions

If a conflict exists among the Basic

Provisions (§ 457.8), these Crop Provisions,

and the Special Provisions; the Special

Provisions will control these Crop Provisions

and the Basic Provisions; and these Crop

Provisions will control the Basic Provisions.

1. Definitions

Acre—43,560 square feet of land when row

widths do not exceed six feet, or if row

widths exceed six feet, the land area on

which at least 7,260 linear feet of rows are

planted.

Carton—Twenty-five (25) pounds of the

insured crop.
14778 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

Crop year—In lieu of the definition of

‘‘crop year’’ contained in section 1

(Definitions) of the Basic Provisions (§ 457.8),

crop year is a period of time that begins on

the first day of the earliest planting period for

fall planted tomatoes and continues through

the last day of the insurance period for spring

planted tomatoes. The crop year is

designated by the calendar year in which

spring planted tomatoes are harvested.

Days—Calendar days.

Direct marketing—Sale of the insured crop

directly to consumers without the

intervention of an intermediary such as a

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.

Excess rain—An amount of precipitation

sufficient to directly damage the crop.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture, or a successor agency.

Freeze—The formation of ice in the cells of

the plant or its fruit, caused by low air

temperatures.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and are those recognized by the

Cooperative State Research, Education, and

Extension Service as compatible with

agronomic and weather conditions in the

county.

Harvest—The picking of tomatoes on the

unit.

Interplanted—Acreage on which two or

more crops are planted in a manner that does

not permit separate agronomic maintenance

or harvest of the insured crop.

Irrigated practice—A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed for the insured crop to make normal

progress toward maturity.

Mature green tomato—A tomato that:

(1) Has a glossy waxy skin that cannot be

torn by scraping;

(2) Has well-formed, jelly-like substance in

the locules;

(3) Has seeds that are sufficiently hard so

as to be pushed aside and not cut by a sharp

knife in slicing; and

(4) Shows no red color.

Plant stand—The number of live plants per

acre prior to the occurrence of an insurable

cause of loss.

Planted acreage—Land in which, for each

planting period, transplants or seed have

been placed manually or by a machine

appropriate for the insured crop and planting

method, at the correct depth, into soil that

has been properly prepared for the planting

method and production practice. For each

planting period, tomatoes must initially be

planted in rows. Acreage planted in any

other manner will not be insurable unless

otherwise provided by the Special Provisions

or by written agreement.

Planting period—The period of time

designated in the Actuarial Table in which

the tomatoes must be planted to be

considered fall, winter or spring-planted

tomatoes.

Potential production—The number of

cartons of mature green or ripe 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:

(a) With a classification size of 6×7 (28⁄32

inch minimum diameter) or larger for all

types except cherry or plum tomatoes; or

(b) With a classification size as allowed by

written agreement for cherry or plum

tomatoes.

Practical to replant—In lieu of the

definition of ‘‘Practical to replant’’ contained

in section 1 of the Basic Provisions (§ 457.8),

practical to replant is defined as our

determination, after loss or damage to the

insured crop, based on factors, including but

not limited to moisture availability,

condition of the field, marketing windows,

and time to crop maturity, that replanting to

the insured crop will allow the crop to attain

maturity prior to the calendar date for the

end of the insurance period (inability to

obtain plants or seed will not be considered

when determining if it is practical to replant).

Replanting—Performing the cultural

practices necessary to replace the tomato

seed or transplants and then replacing the

tomato seed or transplants in the insured

acreage with the expectation of growing a

successful crop.

Ripe tomato—A tomato that has a definite

break in color from green to tannish-yellow,

pink or red.

Row width—The widest distance from the

center of one row of plants to the center of

an adjacent row of plants.

Tropical depression—A system identified

by the U.S. Weather Service as a tropical

depression, and for the period of time so

designated, including tropical storms, gales,

and hurricanes.

Written agreement—A written document

that alters designated terms of this policy in

accordance with section 15.

2. Unit Division

(a) In addition to the requirements

contained in section 1 (Definitions) of the

Basic Provisions (§ 457.8) (basic unit), a basic

unit will also be established by planting

period.

(b) Unless limited by the Special

Provisions, basic units may be further

divided into optional units if, for each

optional unit you meet all the conditions of

this section or if a written agreement for such

further division exists.

(c) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined into a

basic unit, that portion of the premium paid

for the purpose of electing optional units will

be refunded to you for the units combined.

(d) All optional units established for a crop

year must be identified on the acreage report

for that crop year.

(e) The following requirements must be

met for each optional unit:

(1) You must have records, which can be

independently verified, of planted acreage

and production for each optional unit for at

least the last crop year in which the insured

crop was planted;

(2) You must plant the crop in a manner

that results in a clear and discernable break

in the planting pattern at the boundaries of

each optional unit;

(3) You must have records of marketed

production or measurement of stored

production from each optional unit

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and

(4) Each optional unit must be located in

a separate legally identified section. In the

absence of sections, we may consider parcels

of land legally identified by other methods of

measure including, but not limited to

Spanish grants, railroad surveys, leagues,

labors, or Virginia Military Lands, as the

equivalent of sections for unit purposes. In

areas that have not been surveyed using the

systems identified above, or another system

approved by us, or in areas where such

systems exist but boundaries are not readily

discernable, each optional unit must be

located in a separate farm identified by a

single FSA Farm Serial Number.

3. Amounts of Insurance and Production

Stages

(a) In addition to the requirements of

section 3 (Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8),

you may select only one coverage level (and

the corresponding amount of insurance

designated in the Actuarial Table for the

applicable planting period and practice) for

all the tomatoes in the county insured under

this policy.

(b) The amount of insurance you choose for

each planting period and practice must have

the same percentage relationship to the

maximum price offered by us for each

planting period and practice. For example, if

you choose 100 percent of the maximum

amount of insurance for a specific planting

period and practice, you must also choose

100 percent of the maximum amount of

insurance for all other planting periods and

practices.

(c) The production reporting requirements

contained in section 3 (Insurance Guarantees,

Coverage Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8),

do not apply to fresh market dollar plan

tomatoes.

(d) The amounts of insurance per acre are

progressive by stages as follows:
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14779

Stage

Percent of

amount of

insurance

per acre

that you selected

Length of time if direct seeded Length of time if transplanted

1 ............. 50 From planting through the 59th day after planting ............ From planting through the 29th day after planting.

2 ............. 75 From the 60th day after planting until the beginning of

stage 3.

From the 30th day after planting until the beginning of

stage 3.

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

final stage.

From the 60th day after planting until the beginning of the

final stage.

Final ....... 100 Begins the earlier of 105 days after planting, or the beginning of harvest.Begins the earlier of 75 days after planting, or the beginning of harvest.

(e) Any acreage of 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 it, will be

deemed to have been destroyed. The

indemnity payable for such acreage will be

based on the stage the plants had achieved

when the damage occurred.

4. Contract Changes

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is April 30

preceding the cancellation date.

5. Cancellation and Termination Dates

In accordance with section 2 (Life of

Policy, Cancellation, and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are July 31.

6. Report of Acreage

In addition to the requirements of section

6 (Report of Acreage) of the Basic Provisions

(§ 457.8), you must report on or before the

acreage reporting date contained in the

Special Provisions for each planting period:

(a) All the acreage of tomatoes in the

county insured under this policy in which

you have a share;

(b) The dates the acreage was planted

within each planting period; and

(c) The row width.

7. Annual Premium

In lieu of the premium amount

determinations contained in section 7

(Annual Premium) of the Basic Provisions

(§ 457.8), the annual premium amount for

each cultural practice (e.g., fall direct-seeded

irrigated) is determined by multiplying the

final stage amount of insurance per acre by

the premium rate for the cultural practice as

established in the Actuarial Table, by the

insured acreage, by your share at the time

coverage begins, and by any applicable

premium adjustment factors contained in the

Actuarial Table.

8. Insured Crop

In accordance with section 8 (Insured

Crop) of the Basic Provisions (§ 457.8), the

crop insured will be all the tomatoes in the

county for which a premium rate is provided

by the Actuarial Table:

(a) In which you have a share;

(b) That are:

(1) Planted to be harvested and sold as

fresh market tomatoes;

(2) Planted within the planting periods

designated in the Actuarial Table;

(3) Grown under an irrigated practice;

(4) Grown on acreage covered by plastic

mulch except where the Special Provisions

allows otherwise;

(5) Grown by a person who in at least one

of the three previous crop years:

(i) Grew tomatoes for commercial sale; or

(ii) Participated in managing a fresh market

tomato farming operation;

(c) That are not:

(1) Interplanted with another crop;

(2) Planted into an established grass or

legume;

(3) Grown for direct marketing; or

(4) Plum or cherry type tomatoes, unless

allowed by written agreement.

9. Insurable Acreage

(a) In lieu of the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), that prohibit insurance attaching if

a crop has not been planted in at least one

of the three previous crop years, we will

insure newly cleared land and former pasture

land planted to fresh market tomatoes.

(b) In addition to the provisions of section

9 (Insurable Acreage) of the Basic Provisions

(§ 457.8):

(1) You must replant any acreage of

tomatoes damaged during the planting period

in which initial planting took place

whenever less than 50 percent of the plant

stand remains: and

(i) It is practical to replant;

(ii) If, at the time the crop was damaged,

the final day of the planting period has not

passed; and

(iii) The damage occurs within 30 days of

transplanting or 60 days of direct seeding.

(2) Whenever tomatoes initially are planted

during the fall or winter planting periods and

the conditions specified in sections 9(b)(1)

(ii) and (iii) are not satisfied, you may elect:

(i) To replant such acreage and collect any

replant payment due as specified in section

12. The initial planting period coverage will

continue for such replanted acreage.

(ii) Not to replant such acreage and receive

an indemnity based on the stage of growth

the plants had attained at the time of damage.

However, such an election will result in the

acreage being uninsurable in the subsequent

planting period.

(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, or tobacco have

been grown and the soil was not fumigated

or otherwise properly treated before planting

tomatoes.

10. Insurance Period

In lieu of the provisions of section 11

(Insurance Period) of the Basic Provisions

(§ 457.8), 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 at the earliest of:

(a) Total destruction of the tomatoes on the

unit;

(b) Abandonment of the tomatoes on the

unit;

(c) The date harvest should have started on

the unit on any acreage which will not be

harvested;

(d) Final adjustment of a loss on the unit;

(e) Final harvest; or

(f) The calendar date for the end of the

insurance period as follows:

(1) 140 days after the date of direct seeding

or replanting with seed; and

(2) 125 days after the date of transplanting

or replanting with transplants.

11. Causes of Loss

(a) In accordance with the provisions of

section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur during the insurance period:

(1) Excess rain;

(2) Fire;

(3) Freeze;

(4) Hail;

(5) Tornado;

(6) Tropical depression; or

(7) Failure of the irrigation water supply,

if caused by an insured cause of loss that

occurs during the insurance period.

(b) In addition to the causes of loss

excluded in section 12 (Causes of Loss) of the

Basic Provisions (§ 457.8), we will not insure

against any loss of production due to:

(1) Disease or insect infestation, unless no

effective control measure exists for such

disease or insect infestation; or

(2) Failure to market the tomatoes, unless

such failure is due to actual physical damage

caused by an insured cause of loss that

occurs during the insurance period.

12. Replanting Payments

(a) In accordance with section 13

(Replanting Payment) of the Basic Provisions
14780 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

(§ 457.8), a replanting payment is allowed if,

due to an insured cause of loss, more than

50 percent of the plant stand will not

produce tomatoes and it is practical to

replant.

(b) The maximum amount of the replanting

payment per acre will be the lesser of your

actual cost of replanting or the result

obtained by multiplying the per acre

replanting payment amount contained in the

Special Provisions by your insured share.

(c) In lieu of the provisions contained in

section 13 (Replanting Payment) of the Basic

Provisions (§ 457.8), that limit a replanting

payment to one each crop year, only one

replanting payment will be made for acreage

planted during each planting period within

the crop year.

13. Duties In The Event of Damage or Loss

In addition to the requirements contained

in section 14 (Duties In The Event of Damage

or Loss) of the Basic Provisions (§ 457.8), if

you intend to claim an indemnity on any unit

you must also give us notice not later than

72 hours after the earliest of:

(a) The time you discontinue harvest of any

acreage on the unit;

(b) The date harvest normally would start

if any acreage on the unit will not be

harvested; or

(c) The calendar date for the end of the

insurance period.

14. 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 unit, we will combine

all optional units for which such production

records were not provided; or

(2) For any basic unit, we will allocate any

commingled production to such units in

proportion to our liability on the harvested

acreage for each unit.

(b) In the event of loss or damage covered

by this policy, we will settle your claim by:

(1) Multiplying the insured acreage in each

stage by the amount of insurance per acre for

the final stage;

(2) Multiplying each result in section

14(b)(1) by the percentage for the applicable

stage (see section 3(d));

(3) Total the results of section 14(b)(2);

(4) Subtracting either of the following

values from the result of section 14(b)(3):

(i) For other than catastrophic risk

protection coverage, the total value of

production to be counted (see section 14(c));

or

(ii) For catastrophic risk protection

coverage, the result of multiplying the total

value of production to be counted (see

section 14(c)) by:

(A) Sixty percent for the 1998 crop year; or

(B) Fifty-five percent for 1999 and

subsequent crop years; and

(3) Multiplying the result of section

14(b)(4) by your share.

(c) The total value of production to count

from all insurable acreage on the unit will

include:

(1) Not less than the amount of insurance

per acre for the stage for any acreage:

(i) That is abandoned;

(ii) Put to another use without our consent;

(iii) That is damaged solely by uninsured

causes; or

(iv) For which you fail to provide

acceptable production records;

(2) The value of the following appraised

production will not be less than the dollar

amount obtained by multiplying the number

of cartons of appraised tomatoes by the

minimum value per carton shown in the

Special Provisions for the planting period:

(i) Potential production on any acreage that

has not been harvested the second time for

ground-culture tomatoes (the third time for

staked tomatoes);

(ii) Unharvested mature green tomatoes

(unharvested production that is damaged or

defective due to insurable causes and is not

marketable will not be counted as production

to count);

(iii) Production lost due to uninsured

causes; and

(iv) Potential production on insured

acreage that you intend to put to another use

or abandon, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) We may require you to continue to care

for the crop so that a subsequent appraisal

may be made or the crop harvested to

determine actual production. (If we require

you to continue to care for the crop and you

do not do so, the original appraisal will be

used); or

(B) You may elect to continue to care for

the crop, in which case the amount of

production to count for the acreage will be

the harvested production, or our reappraisal

if the crop is not harvested.

(3) The total value of all 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 tomatoes (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 tomatoes harvested.

Harvested production that is damaged or

defective due to insurable causes and is not

marketable, will not be counted as

production to count.

15. Written Agreements

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

15(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, and premium rate;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

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 either Option I or Option II

of 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 Table 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), the total value of harvested

production will be determined as follows:

(1) If you selected Option I of the

Minimum Value Option, the total value of

harvested production will be as follows:

(i) For sold production, the dollar amount

obtained by subtracting the allowable cost

contained in the Special Provisions from the

price received for each carton of tomatoes

(this result may not be less than the

minimum value option price contained in the

Special Provisions for any cartons of

tomatoes), and multiplying this result by the

number of carton of tomatoes sold; and

(ii) For marketable production that is not

sold, 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 insurable causes

and is not marketable will not be counted as

production).

(2) If you selected Option II of the

Minimum Value Option, the total value of

harvested production will be as provided in

section 16(b)(1), except that the dollar

amount specified in section (16)(b)(1)(i) may

not be less than zero.

(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.

Signed in Washington, DC., on March 24,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–7942 Filed 3–27–97; 8:45 am]

BILLING CODE 3410–FA–P