Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 8705 

Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) establishes 

requirements for Federal agencies to 

assess the effects of their regulatory 

actions on State, local, and tribal 

governments and the private sector. 

This rule contains no Federal mandates 

(under the regulatory provisions of title 

II of the UMRA) for State, local, and 

tribal governments or the private sector. 

Therefore, this rule is not subject to the 

requirements of sections 202 and 205 of 

UMRA. 

Executive Order 13132 

It has been determined under section 

1(a) of Executive Order 13132, 

Federalism, that this rule does not have 

sufficient implications to warrant 

consultation with the States. The 

provisions contained in this rule will 

not have a substantial direct effect on 

States, or on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

Regulatory Flexibility Act 

A Regulatory Flexibility Analysis has 

not been prepared since this regulation 

does not have an impact on small 

entities and, therefore, this regulation is 

exempt from the provisions of the 

Regulatory Flexibility Act (5 U.S.C. 

605). 

Federal Assistance Program 

This program is listed in the Catalog 

of Federal Domestic Assistance under 

No. 10.450. 

Executive Order 12372 

This program is not subject to the 

provisions of Executive Order 12372, 

which require intergovernmental 

consultation with State and local 

officials. See the Notice related to 7 CFR 

part 3015, subpart V, published at 48 FR 

29115, June 24, 1983. 

Executive Order 12988 

This rule has been reviewed in 

accordance with Executive Order 12988 

on civil justice reform. The provisions 

of this rule will not have a retroactive 

effect. The provisions of this rule will 

preempt State and local laws to the 

extent such State and local laws are 

inconsistent herewith. With respect to 

any direct action taken by FCIC or to 

require the insurance provider to take 

specific action under the terms of the 

crop insurance policy, the 

administrative appeal provisions 

published at 7 CFR part 11 must be 

exhausted before any action against 

FCIC for judicial review may be brought. 

Environmental Evaluation 

This action is not expected to have a 

significant economic impact on the 

quality of the human environment, 

health, or safety. Therefore, neither an 

Environmental Assessment nor an 

Environmental Impact Statement is 

needed. 

Background 

On May 22, 2008, the 2008 Farm Bill 

was enacted. Section 12010 of the 2008 

Farm Bill amended section 508(e) of the 

Federal Crop Insurance Act (Act) by 

removing paragraph (3), which has 

authorized AIPs to provide a premium 

discount to their insureds if they were 

able to deliver the crop insurance 

program for less money than they were 

paid in an administrative and operating 

expense reimbursement under section 

508(k) of the (Act) and the Standard 

Reinsurance Agreement. The provisions 

of the 2008 Farm Bill are very specific 

and do not allow FCIC any discretion 

regarding interpretation of the 

provisions or their implementation. 

Therefore, elimination of the provisions 

authorizing the payment of the premium 

discount necessitates the removal of the 

relevant provisions in 7 CFR part 400, 

subpart V related to the premium 

reduction plan. 

Good cause is shown to make this rule 

effective upon filing for public 

inspection at the Office of the Federal 

Register. Good cause exists when notice 

and comment and the 30-day delay in 

the effective date is impracticable, 

unnecessary, or contrary to the public 

interest. FCIC is merely making 

ministerial changes to the regulation 

that are mandated by the 2008 Farm 

Bill. There is no discretion given to 

FCIC in the terms contained in this rule 

or their implementation. Therefore, 

good cause exists to make this change 

effective upon filing for public 

inspection at the Office of the Federal 

Register. 

List of Subjects in 7 CFR Part 400 

Administrative practice and 

procedure, Crop insurance. 

Final Rule 

■ Accordingly, as set forth in the 

preamble, the Federal Crop Insurance 

Corporation amends 7 CFR Part 400 as 

follows: 

PART 400—GENERAL 

ADMINISTRATIVE REGULATIONS 

■ 1. The authority citation for 7 CFR 

part 400 continues to read as follows: 

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

Subpart V—Submission of Policies, 

Provisions of Policies and Rates of 

Premium 

■ 2. Revise the heading for subpart V to 

read as set forth above. 

■ 3. Revise section § 400.700 to read as 

follows: 

§ 400.700 Basis, purpose, and 

applicability. 

This subpart establishes guidelines for 

the submission of policies, plans of 

insurance, and rates of premium to the 

Board as authorized under section 

508(h) of the Act and for nonreinsured 

supplemental policies in accordance 

with the SRA, and the roles and 

responsibilities of FCIC and the 

applicant. It also specifies the 

procedures for requesting 

reimbursement for research and 

development costs, and maintenance 

costs for products and the approval 

process. 

§ 400.701 [Amended] 

■ 4. Revise section § 400.701 by 

removing the definitions for 

‘‘Administrative and operating (A&O) 

costs,’’ ‘‘Agent,’’ ‘‘Approved 

procedures,’’ ‘‘Compensation,’’ 

‘‘Efficiency,’’ ‘‘Eligible crop insurance 

contract,’’ ‘‘Eligible producer,’’ 

‘‘Managing General Agent (MGA),’’ 

‘‘Plan of Operations,’’ ‘‘Premium 

discount,’’ ‘‘Profit sharing 

arrangement,’’ ‘‘Reduction in service,’’ 

‘‘Standard Reinsurance Agreement 

(SRA),’’ ‘‘Third Party Administrator 

(TPA),’’ ‘‘Underwriting gain,’’ and 

‘‘Unfair discrimination’’. 

§§ 400.714–400.722 [Removed] 

■ 5. Remove sections §§ 400.714 

through 400.722. 

Signed in Washington, DC, on February 19, 

2009. 

William J. Murphy, 

Acting Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E9–4116 Filed 2–25–09; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 457 

RIN 0563–AB99 

Common Crop Insurance Regulations; 

Cabbage Crop Insurance Provisions 

AGENCY: Federal Crop Insurance 

Corporation, USDA. 

8706 Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 

ACTION: Final rule. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) finalizes the 

Common Crop Insurance Regulations; 

Cabbage Crop Insurance Provisions to 

convert the cabbage pilot crop insurance 

program to a permanent insurance 

program for the 2010 and succeeding 

crop years. 

DATES: Effective Date: March 30, 2009. 

FOR FURTHER INFORMATION CONTACT: Erin 

Albright, Risk Management Specialist, 

Product Management, Product 

Administration and Standards Division, 

Risk Management Agency, United States 

Department of Agriculture, Beacon 

Facility—Mail Stop 0812, PO Box 

419205, Kansas City, MO 64141–6205, 

telephone (816) 926–7730. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this rule is 

non-significant for the purposes of 

Executive Order 12866 and, therefore, it 

has not been reviewed by OMB. 

Paperwork Reduction Act of 1995 

Pursuant to the provisions of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. chapter 35), the collections of 

information in this rule have been 

approved by OMB under control 

number 0563–0053. 

E-Government Act Compliance 

FCIC is committed to complying with 

the E-Government Act of 2002, to 

promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. 

Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) establishes 

requirements for Federal agencies to 

assess the effects of their regulatory 

actions on State, local, and tribal 

governments and the private sector. 

This rule contains no Federal mandates 

(under the regulatory provisions of title 

II of the UMRA) for State, local, and 

tribal governments or the private sector. 

Therefore, this rule is not subject to the 

requirements of sections 202 and 205 of 

UMRA. 

Executive Order 13132 

It has been determined under section 

1(a) of Executive Order 13132, 

Federalism, that this rule does not have 

sufficient implications to warrant 

consultation with the States. The 

provisions contained in this rule will 

not have a substantial direct effect on 

States, or on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

Regulatory Flexibility Act 

FCIC certifies that this regulation will 

not have a significant economic impact 

on a substantial number of small 

entities. Program requirements for the 

Federal crop insurance program are the 

same for all producers regardless of the 

size of their farming operation. For 

instance, all producers are required to 

submit an application and acreage 

report to establish their insurance 

guarantees and compute premium 

amounts, and all producers are required 

to submit a notice of loss and 

production information to determine the 

amount of an indemnity payment in the 

event of an insured cause of crop loss. 

Whether a producer has 10 acres or 

1000 acres, there is no difference in the 

kind of information collected. To ensure 

crop insurance is available to small 

entities, the Federal Crop Insurance Act 

authorizes FCIC to waive collection of 

administrative fees from limited 

resource farmers. FCIC believes this 

waiver helps to ensure that small 

entities are given the same opportunities 

as large entities to manage their risks 

through the use of crop insurance. A 

Regulatory Flexibility Analysis has not 

been prepared since this regulation does 

not have an impact on small entities, 

and, therefore, this regulation is exempt 

from the provisions of the Regulatory 

Flexibility Act (5 U.S.C. 605). 

Federal Assistance Program 

This program is listed in the Catalog 

of Federal Domestic Assistance under 

No. 10.450. 

Executive Order 12372 

This program is not subject to the 

provisions of Executive Order 12372, 

which require intergovernmental 

consultation with State and local 

officials. See the Notice related to 7 CFR 

part 3015, subpart V, published at 48 FR 

29115, June 24, 1983. 

Executive Order 12988 

This 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 to 

require the insurance provider to take 

specific action under the terms of the 

crop insurance policy, the 

administrative appeal provisions 

published at 7 CFR part 11 must be 

exhausted before any action against 

FCIC for judicial review may be brought. 

Environmental Evaluation 

This action is not expected to have a 

significant economic impact on the 

quality of the human environment, 

health, or safety. Therefore, neither an 

Environmental Assessment nor an 

Environmental Impact Statement is 

needed. 

Background 

On Thursday, November 16, 2006, 

FCIC published a notice of proposed 

rulemaking in the Federal Register at 71 

FR 66694–66698 to add 7 CFR 457.171 

Cabbage crop insurance provisions, 

effective for the 2009 and succeeding 

crop years. As a result of delays in the 

rulemaking process, the 2009 effective 

date became impossible and FCIC will 

have this rule effective for the 2010 crop 

year. 

The public was afforded 60 days to 

submit written comments and opinions. 

A total of 30 comments were received 

from 3 commenters. The commenters 

were an insurance services organization, 

an insurance provider, and a grower 

association. The comments received and 

FCIC’s responses are as follows: 

Comment: One commenter suggested 

in the definition of ‘‘damaged cabbage 

production’’ to delete the word ‘‘For’’ at 

the beginning of the two phrases so it 

reads ‘‘Fresh market cabbage that fails to 

grade U.S. Commercial or better,’’ and 

‘‘or processing cabbage that fails to 

grade U.S. No. 2 or better.’’ 

Response: FCIC has revised the 

definition accordingly. 

Comment: One commenter 

recommended rearranging the definition 

of ‘‘marketable cabbage’’ to avoid 

duplication of the phrase ‘‘Grades at 

least’’ at the beginning of subsections (a) 

and (b). The commenter recommended 

the definition read as, ‘‘Cabbage that is 

sold or grades at least: (a) U.S. 

Commercial for fresh market cabbage; or 

(b) U.S. No. 2 for processing cabbage.’’ 

Response: FCIC has revised the 

definition accordingly. 

Comment: One commenter 

recommended adding the missing 

period at the end of the sentence in the 

definition of ‘‘planted acreage.’’ 

Response: FCIC has revised the 

definition accordingly. 

Comment: One commenter 

recommended the definition of ‘‘price 

election’’ be moved to follow the 

definition of ‘‘planted acreage’’ to be in 

alphabetical order. 

Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 8707 

Response: FCIC has removed the 

definition of ‘‘price election’’ in 

response to other comments. Therefore, 

the requested change is no longer 

applicable. 

Comment: One commenter questioned 

that if a processor contract specifies the 

number of acres rather than the amount 

of production contracted, how that 

contract would be affected by the 

requirement in the definition of 

‘‘processor contract’’ that the processor 

must agree to ‘‘* * * purchase all the 

production stated in the contract * * *’’ 

The commenter also questioned what 

the ‘‘specified conditions’’ under which 

delivery must be accepted. 

Response: If the processor contract 

specifies the number of acres rather than 

the amount of production and the 

processor agrees to purchase all the 

production from the acreage stated in 

the contract, all such production would 

be considered to be under contract. 

Therefore, there is no difference if the 

processor contract refers to acreage or 

production. Both contracts are insurable 

under the terms of the policy as long as 

the processor agrees to accept all 

production from the acreage. The term 

‘‘specified conditions’’ is vague so FCIC 

has removed the phrase ‘‘and to accept 

delivery subject only to specified 

conditions’’ from the definition of 

‘‘processor contract.’’ 

Comment: One commenter stated the 

definition of ‘‘type’’ has changed from 

specifying ‘‘Green or red cabbage’’ to a 

more generic definition. The commenter 

questioned if there are other categories 

being considered, or is this just leaving 

the option of other categories available. 

Response: A more generic definition 

will allow for changes or additional 

types in the future. For this reason, the 

definition refers to the categories of 

cabbage designated as a type in the 

Special Provisions. 

Comment: One commenter supported 

basic units by planting period as 

proposed in section 2. In the past, 

growers in areas where the pilot has 

been operating have primarily bought 

CAT coverage because unit division has 

not been available. The commenter 

stated that without unit division the 

policy is of limited value, particularly 

because of the staggered planting dates 

for cabbage over a long period of time. 

Response: FCIC has retained the 

proposed provisions in the final rule 

allowing basic units by planting period, 

if applicable, and optional units by type, 

if applicable. 

Comment: One commenter stated 

since it might be possible to have both 

fresh and processing cabbage in the 

same unit, section 3 might need to be 

reviewed and possibly rearranged to 

address that possibility. The procedure 

for determining the price, acres, 

premium, liability, and indemnity for 

cabbage could be extremely complicated 

with the potential for multiple price 

elections for fresh and processing in the 

same unit. 

Response: Under the proposed rule it 

was possible to have processing cabbage 

under different processor contracts 

containing different prices in the same 

unit. Calculating the price, premium, 

liability and indemnity for the unit 

could be very complicated if there are 

multiple price elections for fresh and 

processing in the same unit. Therefore, 

the provisions in sections 3(c), 6 and 

13(c)(1) regarding insuring processing 

cabbage under the price per 

hundredweight contained in a processor 

contract have not been retained in the 

final rule. FCIC will issue the price 

election for fresh and processing 

cabbage. As a result, the definition of 

‘‘price election’’ has been removed 

because it is no longer needed because 

the definition in the Common Crop 

Insurance Policy Basic Provisions will 

be applicable. 

Comment: Two commenters stated the 

proposed addition of section 3(c), 

addressing the possibility of different 

price elections for multiple processor 

contracts for processing cabbage, raises 

questions as to whether (a) and (b) apply 

only to fresh cabbage. The commenters 

recommended section 3(a) should be 

identified as ‘‘For fresh cabbage, * * *’’ 

and section 3(c) be identified as ‘‘For 

processing cabbage, * * *’’. 

Clarification is also needed as to 

whether section 3(b), requiring the same 

price percentage relationship when 

there are separate price elections by 

type, applies only to fresh cabbage or 

also applies to the contract price 

elections for processing cabbage grown 

under contract. 

Response: As stated above, FCIC has 

removed section 3(c), which would have 

insured processing cabbage using the 

contracted price in the processing 

contract. FCIC issues price elections for 

both fresh and processing cabbage. A 

cabbage producer must have a processor 

contract to obtain insurance on 

processing cabbage and must select one 

price election for each cabbage type 

designated in the Special Provisions. 

Therefore, sections 3(a) and (b) apply to 

both fresh and processing cabbage. 

Comment: One commenter 

recommended changing the phrase 

‘‘different price per hundredweights’’ in 

section 3(c) to the phrase ‘‘different 

prices per hundredweight.’’ The 

commenter also recommended changing 

the word ‘‘stipulates’’ to ‘‘stipulate’’ in 

the parenthetical. If the parenthetical 

phrase is not revised based on other 

comments, the first word should not be 

capitalized (or else, it needs to be 

treated as a separate sentence from the 

sentence that precedes it and each 

sentence needs its own period). 

Response: As stated above, FCIC has 

removed section 3(c) in response to 

other comments. 

Comment: One commenter stated the 

two different types of contracts (based 

on specific acreage or based on 

production to be delivered) in section 

3(c) should be separated. The 

commenter recommended section 3(c) 

be revised and a new subsection (d) be 

added to read: ‘‘For processing cabbage: 

‘‘(1) If there are multiple contracts 

stipulating specific acreage within the 

same unit with different price per 

hundredweights, each contract price 

will be considered a separate price 

election which will be multiplied by the 

number of acres specified under 

applicable processor contract. ‘‘(2) If 

there are multiple contracts stipulating 

production within the same unit with 

different price per hundredweights, 

each contract price will be considered a 

separate price election. ‘‘(3) Acres for 

contracts stipulating production will be 

determined by dividing the amount of 

production to the delivered by the 

approved yield. ‘‘(d) These price 

amounts will be totaled to determine the 

premium, liability and indemnity for 

the unit.’’ 

Response: As stated above, FCIC has 

removed the proposed provisions that 

would insure processing cabbage using 

the contracted prices. 

Comment: Two commenters stated 

there are some concerns with the new 

language in section 3(c) with regard to 

determining the number of acres used 

when a production contract is in effect. 

The calculation may result in an 

artificial number of acres that do not 

match what can or will be planted to 

cabbage (and should not exceed the 

number of acres actually planted to 

cabbage). One commenter recommended 

adding a definition of insured acres 

since insured acres may not be planted 

acres and instead of determining the 

acres (when a contract stipulates the 

amount of production) by dividing, 

using a cup and cap on the result would 

be more accurate. 

Response: FCIC has removed section 

3(c), which would have insured 

processing cabbage using the contracted 

price. However, the commenter is 

correct that there must be a means to 

calculate insurable acreage. FCIC has 

revised section 8(c) to clarify how to 

determine insurable acreage. As revised 

in section 8(c), insurable acreage for 

acreage and production based processor 

8708 Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 

contracts is based on the lesser of the 

planted acres or the maximum acres 

stated in the processor contact. 

Insurable acreage for production based 

processor contracts will be based on the 

lesser of the planted acres or the number 

of acres determined by dividing the 

production stated in the processor 

contract by the approved yield. In 

addition, FCIC has changed the 

reference to ‘‘insurable acreage’’ in 

section 13(c)(1) to be consistent with 

section 8(c). These revisions will 

prevent over-insurance. 

Comment: One commenter stated the 

price used to determine liability is the 

only aspect of determining liability 

covered in section 3 of the proposed 

rule. Additional information must be 

added in order for insurance providers 

to understand the necessary 

calculations. For example, the 

commenter asked how liability is 

determined for processing cabbage 

when the insured has one basic unit, 

two separate basic units or two optional 

units and: (1) A single contract 

stipulating total production to be 

delivered; (2) a single contract 

stipulating different prices for 

production to be delivered; or (3) 

multiple contracts stipulating total 

production to be delivered. The 

commenter stated the last sentence of 

section 3(c) in the proposed rule states 

‘‘These amounts will be totaled to 

determine the premium, liability and 

indemnity for the unit.’’ The use of the 

‘‘These amounts’’ is vague. The 

placement of this sentence within 

section 3(c) is also questionable. The 

commenter questioned whether the 

intent of this sentence is to convey that 

though different prices may apply to 

different acres (based on different 

contract prices and/or prices from the 

actuarial documents), the liability for 

the unit is the total of the liabilities 

determined in accordance with section 

3. 

Response: As stated above, FCIC has 

removed section 3(c) in response to 

other comments. 

Comment: One commenter questioned 

if the deletion of the July 31 date for 

California in section 5 means that 

California will have whatever date is 

‘‘designated in the Special Provisions,’’ 

or will cabbage no longer be insurable 

in this state. 

Response: California is not 

participating in the cabbage program at 

this time; if they do participate at a later 

date they will be eligible under the 

category ‘‘All other states and counties’’ 

and the date will be designated in the 

Special Provisions. 

Comment: One commenter 

recommended adding a comma in 

section 6 following the phrase ‘‘in your 

processor contract’’ for clarity. 

Response: FCIC has removed the 

phrase ‘‘under the price per 

hundredweight contained in your 

processor contract’’ in section 6 in 

response to other comments. FCIC has 

added a comma following the word 

‘‘cabbage.’’ 

Comment: One commenter stated in 

section 7(a)(1) through (6) the change of 

‘‘and’’ to ‘‘or’’ following section 7(a)(5) 

seems to indicate that not all six of these 

provisions will apply in all cases. 

However, the ‘‘or’’ could be understood 

to mean that as long as one of the other 

provisions applies, it is not necessary 

for the cabbage to be planted within the 

applicable plating periods. Therefore, 

the commenter recommended 

combining subsections (4) and (5) into 

one subsection for cabbage that is either 

fresh or processing cabbage, then the 

word ‘‘or’’ at the end of subsection (5) 

can be changed to the word ‘‘and’’. 

Response: FCIC has revised the 

provision accordingly. 

Comment: Two commenters stated the 

reference to ‘‘mustard’’ in section 7(b) 

needs to be corrected to ‘‘cabbage’’. 

Response: FCIC has revised the 

provision accordingly. 

Comment: One commenter stated 

since the proposed provisions in 

sections 7(b) and (c) address the insured 

share rather than the insured crop, the 

commenter recommended putting them 

under a separate ‘‘Share Insured’’ 

section corresponding to section 10 of 

the Basic Provisions. 

Response: The provisions of sections 

7(b) and (c) are consistent with other 

Crop Provisions. Therefore, no change 

has been made. 

Comment: One commenter stated in 

section 9(b) it states, ‘‘In accordance 

with the provisions of section 11 of the 

Basic Provisions, the end of the 

insurance period will be the earlier of: 

‘‘(1) The date the crop should have been 

harvested; ‘‘(2) For processing cabbage, 

the date you harvested sufficient 

production to fulfill your processor 

contract * * *; or ‘‘(3) The following 

applicable calendar date after 

planting:* * *’’ This seems to exclude 

any consideration of the other 

conditions of the Basic Provisions (i.e., 

abandonment, harvest, final adjustment 

of the loss, etc.). The commenter stated 

if section 9(b) were to be revised to read 

‘‘In addition to the provisions of section 

11(b) of the Basic Provisions * * *’’ it 

would be clear that these other 

conditions still apply. 

Response: FCIC has changed the 

phrase ‘‘In accordance with’’ to ‘‘In 

addition to’’. 

Comment: One commenter 

recommended section 10(a)(2) be 

clarified to read ‘‘Fire, due to natural 

causes’’ or ‘‘Fire, if caused by lightning’’ 

as is in the proposed revision to the 

Tobacco Crop Provisions. 

Response: Section 12 of the Basic 

Provisions states all specified causes of 

loss must be due to a naturally 

occurring event. Further, if the 

requirement for natural causes was only 

included with regard to fire, it may 

create the mistaken impression that fire 

is the only cause of action that must be 

from natural causes. Therefore, no 

change has been made. 

Comment: One commenter stated the 

word ‘‘a’’ needs to be added before the 

phrase ‘‘cause of loss’’ in section 

10(a)(7). 

Response: FCIC has revised the 

provision accordingly. 

Comment: One commenter stated in 

sections 11(c)(1) and (2) that, without 

some indication in the proposed rule as 

to what range of hundredweight might 

be given in the Special Provisions to 

replace the previous policy language or 

why the specified figures are being 

removed, it is difficult to comment since 

there is no way of knowing the 

significance of the proposed policy 

change. The commenter also 

recommended changing the semicolon 

to a comma preceding the phrase 

‘‘multiplied by your insured share’’ at 

the end of the first sentence in section 

11(c). 

Response: FCIC revised sections 

11(c)(1) and (2) to specify that the 

amount of replanting payment per acre 

will be contained in the Special 

Provisions because the replant costs 

vary considerably by region. The 

amount in hundredweight will be the 

amount to cover the cost of replanting 

the crop in that region. The semicolon 

in the first sentence of section 11(c) 

should be changed to a comma and the 

provision has been revised accordingly. 

Comment: One commenter questioned 

if the phrase ‘‘In addition to section 14 

of the Basic Provisions,’’ in section 

12(b)(1) means the allowance for notice 

of damage not later than 15 days after 

the end of the insurance period from the 

Basic Provisions is still afforded. 

Response: FCIC did not intend for the 

15 days after the end of insurance 

period notice of damage from section 

14(a)(2)(Your Duties) of the Basic 

Provisions to be applicable to cabbage. 

FCIC has revised section 12(b) to clarify 

proposed section 12(b)(1) was in lieu of 

section 14(a)(2)(Your Duties) of the 

Basic Provisions. FCIC added a new 

section 12(c) and redesignated sections 

12(b)(2), (3), and (4) as sections 12(c)(1), 

(2), and (3), respectively, to clarify these 

Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 8709 

provisions were intended to be in 

addition to section 14 of the Basic 

Provisions. The proposed sections 12(c) 

and (d) have been redesignated as 

sections 12(d) and (e), respectively, and 

the reference to section 12(b) in 

redesignated section 12(d) has been 

revised to reference the new sections 

12(b) and (c). 

Comment: One commenter 

recommended either adding a comma 

before the phrase ‘‘except for stored 

cabbage’’ or putting this phrase in 

parentheses in section 12(c). 

Response: FCIC has added a comma 

before the phrase ‘‘except for stored 

cabbage’’ in redesignated section 12(d). 

Comment: One commenter stated 

unless the provision in section 12(d) 

affects more than just what is in section 

14(a)(3) of the Basic Provisions, the 

commenter recommended keeping the 

more specific reference to section 

14(a)(3) in the first sentence so people 

do not have to read through all of 

section 14 of the Basic Provisions. 

Response: FCIC has revised the 

provision accordingly. 

Comment: Two commenters stated in 

section 13(a)(1) the sentence following 

section 13(a)(1)(ii) ‘‘For any processor 

contract that stipulates * * *’’ should 

be identified as subsection (a)(2) 

otherwise, (a)(1) includes two sets of (i) 

and (ii), though perhaps it would be 

better if this subsection were moved to 

section 13(d) [production to count]. One 

commenter also stated the spelling of 

‘‘nothwithstanding’’ needs to be 

corrected to ‘‘notwithstanding’’. 

Response: FCIC has identified the 

paragraph following section 13(a)(1)(ii) 

as subsection (a)(2) and has corrected 

the spelling to ‘‘notwithstanding’’. FCIC 

has also removed sections 13(a)(2)(ii) 

and (iii) and combined section 13(a)(2) 

with section 13(a)(2)(i) to be consistent 

with the changes in the Mustard Crop 

Insurance Provisions, which were 

recently converted to a permanent crop 

insurance program and contain 

provisions regarding a processing crop. 

Comment: Two commenters stated 

section 13(a)(2)(ii) [if the subsection 

(a)(2) is added as recommended above] 

references section 13(b)(4), but there is 

no section 13(b)(4). 

Response: As stated above, FCIC has 

removed section 13(a)(2)(ii) to be 

consistent with the changes in the 

Mustard Crop Insurance Provisions, 

which were recently converted to a 

permanent crop insurance program and 

contain provisions regarding a 

processing crop. 

Comment: One commenter stated it is 

unclear whether the reference to section 

13(b) in section 13(a)(2)(iii) [if the 

subsection (a)(2) is added as 

recommended above] is correct. The 

commenter stated perhaps it should 

reference section 13(c). 

Response: As stated above, FCIC has 

removed section 13(a)(2)(iii) to be 

consistent with the changes in the 

Mustard Crop Insurance Provisions, 

which were recently converted to a 

permanent crop insurance program and 

contain provisions regarding a 

processing crop. 

Comment: One commenter stated 

section 13(c)(1) references the term 

‘‘insured acreage’’. The commenter 

recommended adding a definition of 

insured acreage. 

Response: FCIC has added language in 

section 8(c) explaining how insurable 

acreage is determined for processing 

cabbage. In addition, FCIC has changed 

the reference from ‘‘insured acreage’’ to 

‘‘insurable acreage’’ in section 13(c)(1) 

to be consistent with section 8(c). 

Comment: Two commenters stated the 

background of this proposed rule states 

quality adjustments have been added. 

There is no specific reference to quality 

adjustments; however, section 13(e) 

notes an adjustment for damaged 

production that is sold. The commenters 

recommended that, in order to maintain 

consistency with other Crop Provisions 

and to provide clarity, section 13(e) 

should contain language regarding the 

conditions under which quality 

adjustments will be used. 

Response: FCIC erroneously stated in 

the proposed rule that quality 

adjustments have been added to the 

provisions. Quality adjustment 

provisions were already contained in 

the Pilot Cabbage Crop Provisions. FCIC 

has revised the language in section 

13(e)(1) to be more consistent with other 

Crop Provisions and to reference a 

quality adjustment. Further, the 

definition of ‘‘local market price’’ has 

been removed because it is no longer 

required. The provision now refers to 

the amount received. For cabbage to be 

adjusted for damage, the damage must 

have been caused by an insured cause 

of loss, but the damaged cabbage must 

be marketable. The definition of 

‘‘marketable cabbage’’ in section 1 

establishes that cabbage production that 

is sold or grades at least U.S. 

Commercial for fresh market cabbage or 

grades at least U.S. No. 2 for processing 

cabbage is marketable. 

In addition to the changes described 

above, FCIC has made minor editorial 

changes and added a definition for 

‘‘crop year.’’ FCIC has also removed any 

reference to South Carolina because 

they will no longer be participating in 

the program. 

List of Subjects in 7 CFR Part 457 

Crop insurance, Cabbage, Reporting 

and recordkeeping requirements. 

Final Rule 

■ Accordingly, as set forth in the 

preamble, the Federal Crop Insurance 

Corporation amends 7 CFR part 457 for 

the 2010 and succeeding crop years as 

follows: 

PART 457—COMMON CROP 

INSURANCE REGULATIONS 

■ 1. The authority citation for 7 CFR 

part 457 continues to read as follows: 

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

■ 2. Section 457.171 is added to read as 

follows: 

§ 457.171 Cabbage crop insurance 

provisions. 

The Cabbage Crop Insurance 

Provisions for the 2010 and succeeding 

crop years are as follows: 

FCIC policies: United States 

Department of Agriculture, Federal Crop 

Insurance Corporation. 

Reinsured policies: (Appropriate title 

for insurance provider). 

Both FCIC and reinsured policies: 

Cabbage Crop Insurance Provisions. 

1. Definitions 

Cabbage. Plants of the family 

Brassicaceae and the genus Brassica, 

grown for their compact heads and used 

for human consumption. 

Crop Year. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, a period of time that begins 

on the first day of the earliest planting 

period and continues through the last 

day of the insurance period for the latest 

planting period. The crop year is 

designated by the calendar year in 

which the cabbage planted in the latest 

planting period is normally harvested. 

Damaged cabbage production. Fresh 

market cabbage that fails to grade U.S. 

Commercial or better in accordance 

with the United States Standards for 

Grades of Cabbage, or processing 

cabbage that fails to grade U.S. No. 2 or 

better in accordance with the United 

States Standards for Grades of Cabbage 

for Processing due to an insurable cause 

of loss. 

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. 

Harvest. Cutting of the cabbage plant 

to sever the head from the stalk. 

8710 Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 

Hundredweight. One hundred pounds 

avoirdupois. 

Inspected transplants. Cabbage plants 

that have been found to meet the 

standards of the public agency 

responsible for the inspection process 

within the State in which they are 

grown. 

Marketable cabbage. Cabbage that is 

sold or grades at least: 

(a) U.S. Commercial for fresh market 

cabbage; or 

(b) U.S. No. 2 for processing cabbage. 

Planted acreage. In addition to the 

definition contained in section 1 of the 

Basic Provisions, cabbage plants and 

seeds must initially be planted in rows 

wide enough to permit mechanical 

cultivation. Cabbage planted or seeds 

planted in any other manner will not be 

insurable unless otherwise provided by 

the Special Provisions, actuarial 

documents, or by written agreement. 

Processor. Any business enterprise 

regularly engaged in processing cabbage 

for human consumption, that possesses 

all licenses and permits for processing 

cabbage 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 the contracted 

cabbage within a reasonable amount of 

time after harvest. 

Processor contract. A written contract 

between the producer and the processor, 

containing at a minimum: 

(a) The producer’s commitment to 

plant and grow cabbage, and to sell and 

deliver the cabbage production to the 

processor; 

(b) The processor’s commitment to 

purchase all the production stated in the 

processor contract; and 

(c) A price per hundredweight that 

will be paid for the production. 

Timely planted. In lieu of the 

definition contained in section 1 of the 

Basic Provisions, cabbage planted 

during a planting period designated in 

the Special Provisions. 

Type. A category of cabbage as 

designated in the Special Provisions. 

2. Unit Division 

(a) A basic unit, as defined in section 

1 of the Basic Provisions, will also be 

divided into additional basic units by 

planting period if separate planting 

periods are designated in the Special 

Provisions. 

(b) In addition to the requirements of 

section 34 of the Basic Provisions, 

optional units may also be established 

by type if separate types are designated 

in the Special Provisions. 

3. Insurance Guarantees, Coverage 

Levels, and Prices for Determining 

Indemnities 

In addition to the requirements of 

section 3 of the Basic Provisions: 

(a) You may select only one price 

election for all the cabbage in the county 

insured under this policy unless the 

Special Provisions provide different 

price elections by type, in which case 

you may select one price election for 

each cabbage type designated in the 

Special Provisions. 

(b) The price elections you choose for 

each type must bear the same 

percentage relationship to the maximum 

price election offered by us for each 

type. For example, if you selected 100 

percent of the maximum price election 

for one type, you must also select 100 

percent of the maximum price election 

for all other types. 

4. Contract Changes 

In accordance with the provisions of 

section 4 of the Basic Provisions, the 

contract change dates are the following 

calendar dates preceding the 

cancellation dates: 

(a) April 30 in Florida; Brooks, 

Colquitt, Tift, and Toombs Counties, 

Georgia; and Texas; 

(b) November 30 in Alaska; Rabun 

County, Georgia; Illinois; Michigan; 

New York; North Carolina; Ohio; 

Oregon; Pennsylvania; Virginia; 

Washington; and Wisconsin; or 

(c) As designated in the Special 

Provisions for all other states and 

counties. 

5. Cancellation and Termination Dates 

In accordance with the provisions of 

section 2 of the Basic Provisions, the 

cancellation and termination dates are: 

State and counties Cancellation and 

termination dates 

Brooks, Colquitt, Tift, and Toombs Counties, Georgia; Texas ............................................................................................... July 1. 

Florida ...................................................................................................................................................................................... August 15. 

Oregon, Washington ................................................................................................................................................................ February 1. 

Rabun County, Georgia; North Carolina ................................................................................................................................. February 28. 

Alaska, Illinois, Michigan, New York, Ohio, Pennsylvania, Virginia, and Wisconsin .............................................................. March 15. 

All other states and counties ................................................................................................................................................... As designated in the 

Special Provisions. 

6. Report of Acreage 

In addition to the provisions of 

section 6 of the Basic Provisions, to 

insure your processing cabbage, you 

must provide a copy of all your 

processor contracts to us on or before 

the acreage reporting date. 

7. Insured Crop 

(a) In accordance with the provisions 

of section 8 of the Basic Provisions, the 

crop insured will be all the cabbage 

types in the county for which a 

premium rate is provided by the 

actuarial documents, in which you have 

a share, and that are: 

(1) Planted with inspected 

transplants, if such transplants are 

required by the Special Provisions; 

(2) If direct seeded, planted with 

hybrid seed unless otherwise permitted 

by the Special Provisions; 

(3) Planted within the planting 

periods as designated in the Special 

Provisions; 

(4) Planted to be: 

(i) Harvested and sold as fresh 

cabbage; or 

(ii) Grown and sold as processing 

cabbage in accordance with the 

requirements of a processor contract 

executed on or before the acreage 

reporting date and not excluded from 

the processor contract at any time 

during the crop year; and 

(5) Unless allowed by the Special 

Provisions: 

(i) Not interplanted with another crop; 

and 

(ii) Not sold by direct marketing. 

(b) Under the processor contract, you 

will be considered to have a share in the 

insured crop to the extent you retain 

control of the acreage on which the 

cabbage is grown, your income from the 

insured crop is dependent on the 

amount of production delivered, and the 

processor contract provides for delivery 

of the cabbage under specified 

conditions and at a stipulated price. 

(c) A processing cabbage producer 

who is also a processor may establish an 

insurable interest if the following 

additional requirements are met: 

(1) The producer must comply with 

these Crop Provisions; 

(2) Prior to the sales closing date, the 

Board of Directors or officers of the 

processor must execute and adopt a 

Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 8711 

resolution that contains the same terms 

as an acceptable processor contract. 

Such resolution will be considered a 

processor contract under this policy; 

and 

(3) Our inspection reveals that the 

processing facilities comply with the 

definition of ‘‘processor’’ contained in 

these Crop Provisions. 

8. Insurable Acreage 

In addition to the provisions of 

section 9 of the Basic Provisions: 

(a) We will not insure any acreage that 

does not meet the rotation requirements 

contained in the Special Provisions. 

(b) Any acreage of the insured crop 

damaged before the end of the planting 

period, to the extent that a majority of 

producers in the area would normally 

not further care for the crop, must be 

replanted unless we agree that it is not 

practical to replant. 

(c) For processing cabbage, insurable 

acreage will be: 

(1) For acreage only based processor 

contracts, and acreage and production 

based processor contracts which specify 

a maximum number of acres, the lesser 

of: 

(i) The planted acres; or 

(ii) The maximum number of acres 

specified in the contract; 

(2) For production only based 

processor contracts, the lesser of: 

(i) The number of acres determined by 

dividing the production stated in the 

processor contract by the approved 

yield; or 

(ii) The planted acres. 

9. Insurance Period 

(a) In lieu of the provisions of section 

11 of the Basic Provisions, coverage 

begins on each unit or part of a unit the 

later of: 

(1) The date we accept your 

application; or 

(2) When the cabbage is planted in 

each planting period. 

(b) In addition to the provisions of 

section 11 of the Basic Provisions, the 

end of the insurance period will be the 

earlier of: 

(1) The date the crop should have 

been harvested; or 

(2) The following applicable calendar 

date after planting; 

(i) Alaska: October 1; 

(ii) Florida: 

(A) February 15 for the fall planting 

period; 

(B) April 15 for the winter planting 

period; and 

(C) May 31 for the spring planting 

period; 

(iii) Brooks, Colquitt, Tift, and 

Toombs Counties, Georgia: 

(A) January 15 for the fall planting 

period; and 

(B) June 15 for the spring planting 

period; 

(iv) Rabun County, Georgia: 

(A) September 15 for the spring 

planting period; and 

(B) October 31 for the summer 

planting period; 

(v) Illinois, Michigan, New York, 

Ohio, and Pennsylvania: 

(A) September 30 for the spring 

planting period; and 

(B) November 25 for the summer 

planting period; 

(vi) North Carolina: 

(A) July 10 for the spring planting 

period; and 

(B) December 31 for the fall planting 

period; 

(vii) Oregon: December 31; 

(viii) Texas: 

(A) December 31 for the summer 

planting period; 

(B) February 15 for the fall planting 

period; and 

(C) April 30 for the winter planting 

period; 

(ix) Virginia: 

(A) July 31 for the early spring 

planting period; 

(B) September 15 for the spring 

planting period; and 

(C) November 15 for the summer 

planting period; 

(x) Washington: December 31; 

(xi) Wisconsin: November 5; and 

(xii) All other states and counties as 

provided in the Special Provisions. 

10. Causes of Loss 

(a) In accordance with the provisions 

of section 12 of the Basic Provisions, 

insurance is provided only against the 

following causes of loss that occur 

during the insurance period: 

(1) Adverse weather conditions; 

(2) Fire; 

(3) Wildlife; 

(4) Insects or plant disease, but not 

damage due to insufficient or improper 

application of control measures; 

(5) Earthquake; 

(6) Volcanic eruption; or 

(7) Failure of the irrigation water 

supply, if caused by a cause of loss 

specified in sections 10(a)(1) through (6) 

that occurs during the insurance period. 

(b) In addition to the causes of loss 

excluded in section 12 of the Basic 

Provisions, we will not insure against 

damage or loss of production due to: 

(1) Failure to market the cabbage for 

any reason other than actual physical 

damage from an insured cause of loss 

that occurs during the insurance period 

(For example, we will not pay you an 

indemnity if you are unable to market 

due to quarantine, boycott, or refusal of 

any person to accept production, etc.); 

or 

(2) Damage that occurs or becomes 

evident after the end of the insurance 

period, including, but not limited to, 

damage that occurs or becomes evident 

after the cabbage has been placed in 

storage. 

11. Replanting Payments 

(a) In accordance with the provisions 

of section 13 of the Basic Provisions, a 

replanting payment is allowed if the 

crop is damaged by an insurable cause 

of loss to the extent that the remaining 

stand will not produce at least 90 

percent of the production guarantee for 

the acreage and it is practical to replant. 

(b) No replanting payment will be 

made on acreage planted prior to the 

initial planting date or after the end of 

the final planting period as designated 

by the Special Provisions. 

(c) In accordance with the provisions 

of section 13(c) of the Basic Provisions, 

the maximum amount of the replanting 

payment per acre is the number of 

hundredweight specified in the Special 

Provisions multiplied by your price 

election, multiplied by your insured 

share. The fresh market cabbage price 

election will be used to determine 

processing cabbage replanting payments 

in counties where both fresh market and 

processing cabbage are insurable. 

(d) When the insured crop is 

replanted using a practice that is 

uninsurable as an original planting, the 

liability for the unit will be reduced by 

the amount of the replanting payment 

attributable to your share. The premium 

will not be reduced. 

(e) In lieu of the provisions contained 

in section 13 of the Basic Provisions that 

limit a replanting payment to one each 

crop year, only one replanting payment 

will be made for acreage replanted 

during each planting period within the 

crop year, if separate planting periods 

are allowed by the Special Provisions. 

12. Duties In The Event of Damage or 

Loss 

(a) Failure to meet the requirements of 

this section will result in an appraised 

amount of production to count of not 

less than the production guarantee per 

acre if such failure results in our 

inability to make the required appraisal. 

(b) In lieu of the provisions of section 

14(a)(2)(Your Duties) of the Basic 

Provisions, so that we may inspect the 

insured crop, you must give us notice 

within 72 hours of your initial discovery 

of damage if such discovery occurs more 

than 15 days prior to harvest of the 

acreage. 

(c) In addition to the provisions of 

section 14(a)(3) (Your Duties) of the 

Basic Provisions, so that we may inspect 

the insured crop, you must give us 

notice: 

(1) Immediately if damage is 

discovered 15 days or less prior to the 

beginning of harvest or during harvest. 

8712 Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 

(2) At least 15 days prior to the 

beginning of harvest, if direct marketing 

of the insured crop is allowed by the 

Special Provisions, and you intend to 

direct market any of the crop. 

(3) At least 15 days before the earlier 

of: 

(i) The date harvest would normally 

start if any acreage on the unit will not 

be harvested; or 

(ii) The beginning of harvest, if any 

production will be harvested for a use 

other than as indicated on the acreage 

report. 

(d) After you have provided the 

applicable notice required by sections 

12(b) and (c), we will conduct an 

appraisal to determine your production 

to count for the purposes of section 

13(d). 

(1) Except as provided in section 

12(e), you must not dispose of or sell the 

damaged crop, or store the insured crop, 

until after we have appraised it and 

given you written consent to do so. 

(2) If additional damage occurs after 

this appraisal, except for stored cabbage, 

we will conduct another appraisal. 

(3) These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count in accordance with 

section 13(d). 

(e) In accordance with the 

requirements of section 14 of the Basic 

Provisions, if you initially discover 

damage to any insured cabbage within 

15 days of or during harvest, you must 

leave representative samples of the 

unharvested crop for our inspection. 

The samples must be at least 3 rows 

wide and extend the entire length of 

each field in the unit and must not be 

harvested or destroyed until the earlier 

of our inspection or 15 days after 

completion of harvest on the unit. 

13. Settlement of Claim 

(a) We will determine your loss on a 

unit basis. 

(1) In the event you are unable to 

provide separate acceptable production 

records: 

(i) For any optional units, we will 

combine all optional units for which 

such production records were not 

provided; and 

(ii) For any basic units, we will 

allocate any commingled production to 

such units in proportion to our liability 

on the harvested acreage for the units. 

(2) For any processor contract that 

stipulates only the amount of 

production to be delivered, and 

notwithstanding the provisions of this 

section or any unit division provisions 

contained in the Basic Provisions, no 

indemnity will be paid for any loss of 

production on any unit if you produced 

a crop sufficient to fulfill the processor 

contract(s) forming the basis of the 

insurance guarantee; 

(b) The extent of any damaged 

cabbage production must be determined 

not later than the date the cabbage is 

placed in storage if the production is 

stored prior to sale, or the date the 

cabbage is delivered to a buyer, 

wholesaler, packer, processor, or other 

handler if production is not stored. 

(c) In the event of loss or damage 

covered by this policy, we will settle 

your claim by: 

(1) Multiplying the insurable acreage 

by its respective production guarantee 

(per acre), by type if applicable; 

(2) Multiplying each result in section 

13(c)(1) by the respective price election, 

by type if applicable; 

(3) Totaling the results in section 

13(c)(2); 

(4) Multiplying the total production to 

count of each type, if applicable (see 

section 13)(d)), by its respective price 

election; 

(5) Totaling the results in section 

13(c)(4); 

(6) Subtracting the results in section 

13(c)(5) from the results of section 

13(c)(3); and 

(7) Multiplying the result in section 

13(c)(6) by your share. 

For example: 

For a basic unit you have 100 percent 

share in 100 acres of cabbage, 50 acres 

for fresh market and 50 acres for 

processing as sauerkraut, with a 

production guarantee (per acre) of 400 

hundredweight per acre for fresh market 

and 400 hundredweight per acre for 

processing as sauerkraut and a price 

election of $5.00 per hundredweight for 

fresh market and $1.90 per 

hundredweight for processing as 

sauerkraut. You are only able to harvest 

9,000 hundredweight of fresh market 

cabbage and 9,000 hundredweight of 

cabbage for sauerkraut because an 

insured cause of loss has reduced 

production. Your total indemnity would 

be calculated as follows: 

(1) 50 acres × 400 hundredweight = 

20,000 hundredweight guarantee for the 

fresh market acreage. 

50 acres × 400 hundredweight = 

20,000 hundredweight guarantee for the 

processing as sauerkraut acreage. 

(2) 20,000 hundredweight guarantee × 

$5.00 price election = $100,000 value of 

guarantee for the fresh market cabbage. 

20,000 hundredweight guarantee × 

$1.90 price election = $38,000 value of 

guarantee for processing as sauerkraut. 

(3) $100,000 + $38,000 = $138,000 

total value of guarantee. 

(4) 9,000 hundredweight × $5.00 price 

election = $45,000 value of production 

to count for the fresh market acreage. 

9,000 hundredweight × $1.90 price 

election = $17,100 value of production 

to count for the acreage for processing 

as sauerkraut. 

(5) $45,000 + $17,100 = $62,100 total 

value of production to count. 

(6) $138,000 ¥$62,100 = $75,900 loss. 

(7) $75,900 × 100 percent share = 

$75,900 indemnity payment. 

(d) The total production to count (in 

hundredweight) of marketable cabbage 

from all insurable acreage on the unit 

will include: 

(1) All appraised production as 

follows: 

(i) Not less than the production 

guarantee (per acre) for acreage: 

(A) That is abandoned; 

(B) For which you fail to meet the 

requirements contained in section 12; 

(C) That is put to another use without 

our consent; 

(D) That is damaged solely by 

uninsured causes; or 

(E) For which you fail to provide 

production records that are acceptable 

to us; 

(ii) All production lost due to 

uninsured causes; 

(iii) All unharvested marketable 

production; 

(iv) All 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) If you do not elect to continue to 

care for the crop, we may give you 

consent to put the acreage to another 

use if you agree to leave intact, and 

provide sufficient care for, 

representative samples of the crop in 

locations acceptable to us. (The amount 

of production to count for such acreage 

will be based on the harvested 

production or appraisals from the 

samples at the time harvest should have 

occurred. If you do not leave the 

required samples intact, or fail to 

provide sufficient care for the samples, 

our appraisal made prior to giving you 

consent to put the acreage to another 

use will be used to determine the 

amount of production to count); or 

(B) If you elect to continue to care for 

the crop, the amount of production to 

count for the acreage will be the 

harvested production, or our reappraisal 

if additional damage occurs and the 

crop is not harvested; and 

(2) All harvested production from the 

insurable acreage. 

(e) Mature production that is 

considered damaged cabbage 

production but is sold will be adjusted 

for quality as follows: 

Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 8713 

(1) Dividing the amount received per 

hundredweight of such damaged 

cabbage production by the applicable 

price election; and 

(2) Multiplying the result by the 

number of hundredweight of damaged 

cabbage production. 

14. Late and Prevented Planting 

The late and prevented planting 

provisions of the Basic Provisions are 

not applicable. 

Signed in Washington, DC, on February 19, 

2009. 

William J. Murphy, 

Acting Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E9–4118 Filed 2–25–09; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2007–29255; Directorate 

Identifier 2007–NM–085–AD; Amendment 

39–15821; AD 2009–04–15] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 737–100, –200, –200C, –300, 

–400, and –500 Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Boeing Model 737–100, –200, –200C, 

–300, –400, and –500 series airplanes. 

This AD requires repetitive internal 

eddy current and detailed inspections to 

detect cracked stringer tie clips; 

measuring the fastener spacing and the 

edge margin if applicable, and doing 

applicable corrective and related 

investigative actions. As a temporary 

alternative to doing the actions 

described previously, this AD requires 

repetitive external general visual 

inspections of the skin and lap joints 

and repetitive external eddy current 

sliding probe inspections, as applicable, 

of the lap joints for cracks and evidence 

of overload resulting from cracked 

stringer tie clips, and applicable 

corrective actions if necessary. This AD 

results from a report of several cracked 

stringer tie clips. We are issuing this AD 

to detect and correct multiple adjacent 

cracked stringer tie clips and damaged 

skin and frames, which could lead to 

the skin and frame structure developing 

cracks and consequent decompression 

of the airplane. 

DATES: This AD becomes effective April 

2, 2009. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of April 2, 2009. 

ADDRESSES: For service information 

identified in this AD, contact Boeing 

Commercial Airplanes, Attention: Data 

& Services Management, P.O. Box 3707, 

MC 2H–65, Seattle, Washington 98124– 

2207; telephone 206–544–5000, 

extension 1, fax 206–766–5680; e-mail 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (telephone 800–647–5527) 

is the Document Management Facility, 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Wayne Lockett, Aerospace Engineer, 

Airframe Branch, ANM–120S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 917–6447; fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The FAA issued a supplemental 

notice of proposed rulemaking (NPRM) 

to amend 14 CFR part 39 to include an 

AD that would apply to certain Boeing 

Model 737–100, –200, –200C, –300, 

–400, and –500 series airplanes. That 

supplemental NPRM was published in 

the Federal Register on August 29, 2008 

(73 FR 50899). That supplemental 

NPRM proposed to require repetitive 

internal eddy current and detailed 

inspections to detect cracked stringer tie 

clips; measuring the fastener spacing 

and the edge margin if applicable, and 

doing applicable corrective and related 

investigative actions. That supplemental 

NPRM also proposed to require 

repetitive external eddy current sliding 

probe inspections of the lap joints for 

cracks and evidence of overload 

resulting from cracked stringer tie clips, 

and applicable corrective actions if 

necessary. 

Comments 

We provided the public the 

opportunity to participate in the 

development of this AD. We have 

considered the comments received. 

Request To Clarify Effectivity 

Boeing asks that the affected airplanes 

specified in Note 3 of the supplemental 

NPRM be clarified. Boeing states that 

the original issue of Boeing Service 

Bulletin 737–53–1085, Revision 1, dated 

May 10, 1990 (referred to in Note 3), 

contains an error in the affected 

airplanes shown in the summary 

section. Boeing notes that the error 

shows line numbers 1 through 1000. 

Boeing also states that in the planning 

information section of that service 

bulletin, it shows line number 1000/part 

number 136 is not included in the 

Group 2 airplanes (all affected Model 

737–200 airplanes). In addition, Boeing 

Service Bulletin 737–53–1085, Revision 

1, dated May 10, 1990, includes a 

change to the production line for line 

numbers 1000 and on. Boeing asks that 

Note 3 of the supplemental NPRM be 

changed to replace line number 1000 

with line number 999, and to replace 

line number 1001 with line number 

1000. We agree for the reasons provided 

and have changed Note 3 for 

clarification. 

Request To Clarify Paragraph (g) 

Boeing asks that we clarify the first 

sentence in paragraph (g) of the 

supplemental NPRM (paragraph (f) of 

the final rule) by adding ‘‘as applicable’’ 

after the inspection method. We agree 

because the inspection method depends 

on the type of stringer clip. We have 

changed paragraph (f) of the AD 

accordingly. 

Request To Clarify Paragraph (h) 

Boeing asks that we clarify the first 

sentence in paragraph (h) of the 

supplemental NPRM (paragraph (g) of 

the final rule) by adding ‘‘as applicable’’ 

to that sentence. We agree because the 

inspection types are appropriate only 

for certain airplanes. We have changed 

paragraph (g) of the AD accordingly. 

Request To Move Note 2 

Boeing asks that we move Note 2 of 

the supplemental NPRM from its 

current position below paragraph (h) of 

the supplemental NPRM (paragraph (g) 

of the final rule) to the position below 

paragraph (g) (paragraph (f) of the final 

rule) and Note 1 of the supplemental 

NPRM. Boeing states that Note 2 

pertains to the optional/economic 

inspections, which are relative to those 

inspections specified in paragraph (g), 

not paragraph (h). Boeing notes that