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.

Rules and Regulations Federal Register

38883 

Vol. 87, No. 125 

Thursday, June 30, 2022 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Parts 407 and 457 

[Docket ID FCIC–22–0004] 

RIN 0563–AC79 

Crop Insurance Reporting and Other 

Changes (CIROC) 

AGENCY: Federal Crop Insurance 

Corporation, U.S. Department of 

Agriculture (USDA). 

ACTION: Final rule with request for 

comments. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) is amending its 

regulations to enhance production 

reporting terminology and assist 

producers with production reporting 

requirements. The amendments will 

provide alternative production reporting 

options to producers who are unable to 

provide disinterested third-party 

verifiable records to support their 

production report because the producer 

or a related person generates the 

supporting records (acceptable 

production records). FCIC is also 

clarifying the good farming practice 

appeal deadline (appeals and 

arbitration) and clarifying and 

correcting portions of the policy 

(clarifications and corrections). The 

changes to the crop insurance policies 

resulting from the amendments in this 

rule are applicable for the 2023 and 

succeeding crop years for crops with a 

contract change date on or after June 30, 

2022. For all other crops, the changes to 

the policies made in this rule are 

applicable for the 2024 and succeeding 

crop years. 

DATES:

Effective date: This final rule is 

effective June 30, 2022. 

Comment date: We will consider 

comments that we receive by the close 

of business August 29, 2022. FCIC may 

consider the comments received and 

may conduct additional rulemaking 

based on the comments. 

ADDRESSES: We invite you to submit 

comments on this rule. You may submit 

comments by going through the Federal 

eRulemaking Portal as follows: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and search 

for Docket ID FCIC–22–0004. Follow the 

instructions for submitting comments. 

All comments will be posted without 

change and will be publicly available on 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Francie Tolle; telephone (816) 926– 

7829; or email francie.tolle@usda.gov. 

Persons with disabilities who require 

alternative means for communication 

should contact the USDA Target Center 

at (202) 720–2600 (voice) or (844) 433– 

2774 (toll-free nationwide). 

SUPPLEMENTARY INFORMATION: 

Background 

FCIC serves America’s agricultural 

producers through effective, marketbased risk management tools to 

strengthen the economic stability of 

agricultural producers and rural 

communities. FCIC is committed to 

increasing the availability and 

effectiveness of Federal crop insurance 

as a risk management tool. Approved 

Insurance Providers (AIPs) sell and 

service Federal crop insurance policies 

in every state through a public-private 

partnership. FCIC reinsures the AIPs 

who share the risks associated with 

catastrophic losses due to major weather 

events. FCIC’s vision is to secure the 

future of agriculture by providing world 

class risk management tools to rural 

America. 

Federal crop insurance policies 

typically consist of the Basic Provisions, 

the Crop Provisions, the Special 

Provisions, the Commodity Exchange 

Price Provisions, if applicable, other 

applicable endorsements or options, the 

actuarial documents for the insured 

agricultural commodity, the 

Catastrophic Risk Protection 

Endorsement, if applicable, and the 

applicable regulations published in 7 

CFR chapter IV. Throughout this rule, 

the terms ‘‘Crop Provisions,’’ ‘‘Special 

Provisions,’’ and ‘‘policy’’ are used as 

defined in the Common Crop Insurance 

Policy (CCIP) Basic Provisions in 7 CFR 

457.8. Additional information and 

definitions related to Federal crop 

insurance policies are in 7 CFR 457.8. 

Through this rule, FCIC amends the 

Area Risk Protection Insurance (ARPI) 

Basic Provisions (7 CFR part 407), CCIP 

Basic Provisions (7 CFR 457.8), in 

addition to specific crop insurance 

policies that are in the regulations. 

Throughout this rule, as the changes are 

explained and the specific crop 

insurance policies are mentioned for the 

specific changes, they are listed in 

alphabetical order by crop insurance 

policy name, which is also the section 

title in the regulations. Typically, in a 

rule, the sections of the regulations 

would be addressed in numerical order; 

however, due to the extensive range of 

crop insurance policies that this rule 

includes, for readers to find the 

information of relevance, the 

alphabetical order will be helpful. The 

range of crop insurance policies and the 

order in which they are listed is as 

follows: 

• Arizona-California Citrus Fruit Crop 

Insurance Provisions (7 CFR 457.121); 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Fresh Market Tomato Dollar Plan 

Crop Insurance Provisions (7 CFR 

457.139); 

• Guaranteed Production Plan of 

Fresh Market Tomato (7 CFR 457.128); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149); and 


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38884 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119). 

The changes to the crop insurance 

policies resulting from the amendments 

in this rule are applicable for the 2023 

and succeeding crop years for crops 

with a contract change date on or after 

June 30, 2022. For all other crops, the 

changes to the crop insurance policies 

resulting from the amendments in this 

rule are applicable for the 2024 and 

succeeding crop years. 

Acceptable Production Records 

FCIC is increasing flexibility for 

acceptable production records to make 

it easier for producers whose production 

records are not available from a 

disinterested third party to provide the 

supporting records needed to obtain 

insurance, report their annual 

production, and file a claim. FCIC is 

amending the Area Risk Protection 

Regulations (7 CFR 407.9), Common 

Crop Insurance Regulations (7 CFR 

457.8), and 20 Crop Provisions to 

implement these changes. 

Prior to this rule, FCIC generally 

required records from disinterested 

third parties (for example, sales record 

to an unrelated entity), or AIPs 

conducted preharvest appraisals as a 

supporting production record. However, 

some producers do not have 

disinterested third-party records which 

includes producers who sell their 

production directly to consumers (direct 

marketing) and producers who do not 

have disinterested third-party records 

because they, or a person related to 

them, generate the supporting records 

(for example, vertically integrated). In 

response to these issues, FCIC is 

amending production reporting 

terminology to simplify recordkeeping 

requirements and procedures for those 

producers who do not have 

disinterested third-party records 

available to them. These changes will 

also make the terminology and 

procedures consistent across policies. 

The producer will self-identify that 

they will not have disinterested thirdparty records available, which will 

encourage a discussion with the AIP as 

to what records the producer does have 

that will meet production reporting 

requirements. The producer may be 

permitted to use their own records, or, 

in limited situations, request a preharvest appraisal. Generally, producers 

are required to use their actual 

production records. However, if their 

records are not at an acceptable level of 

detail needed for production reporting 

(for example, traceable back to the unit), 

RMA procedures outline criteria that 

would allow the producer to request an 

appraisal to supplement the producers’ 

records. For example, producers who 

direct market their crop may request a 

pre-harvest appraisal, to use in 

conjunction with their acceptable 

production records, to allocate 

production to the applicable APH 

database or when the AIP determines 

the producer’s final disposition records 

do not contain all information required 

for production reporting by APH 

database. 

In certain situations, appraisals may 

be used, in lieu of harvested production, 

to adjust a claim, as outlined in the 

CCIP Basic Provisions, paragraph 

15(b)(3). If the producer’s harvested 

production is less than the appraised 

production, and they harvest the crop 

after the end of the insurance period, 

their appraised production will be used 

unless they can prove that no additional 

causes of loss or deterioration of the 

crop occurred after the end of the 

insurance period. 

However, if they harvest the crop 

before the end of the insurance period, 

their harvested production will be used 

(1) unless the applicable Crop 

Provisions require an appraisal prior to 

harvest and they are unable to prove 

that additional insured causes of loss 

occurred after the appraisal or 

deterioration of the crop can be 

attributed to an insurable cause of loss 

after the appraisal was completed; then 

the producer’s appraised production 

will be used; or (2) if the producer 

intends to direct market their crop or 

their production records will not be 

from a disinterested third party and the 

AIP determines an appraisal prior to 

harvest was necessary and they are 

unable to prove that additional insured 

causes of loss occurred after the 

appraisal or deterioration of the crop 

can be attributed to an insurable cause 

of loss after the appraisal was 

completed; then their appraised 

production will be used. 

The changes in this rule are intended 

to assist producers with production 

reporting requirements when producers 

do not have disinterested third-party 

records available and to reduce the need 

for AIPs to conduct pre-harvest 

appraisals, which were previously used 

in lieu of disinterested third-party 

records. Several terms that were defined 

in various Crop Provisions, procedures, 

or administrative regulations, will now 

be defined in the ARPI Basic Provisions 

and CCIP Basic Provisions. 

The changes to the Crop Provisions 

are as follows: 

FCIC is removing the definition of 

‘‘direct marketing’’ from individual 

Crop Provisions. As a result of this 

change, there will be only one definition 

of ‘‘direct marketing’’ in the Basic 

Provisions. This will reduce 

redundancy and eliminate potential 

conflicts between the CCIP Basic 

Provisions and the individual Crop 

Provisions. This change occurs in the 

following Crop Provisions: 

• Arizona-California Citrus Fruit Crop 

Insurance Provisions (7 CFR 457.121); 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149); and 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119). 

Two Crop Provisions will retain the 

definition of ‘‘direct marketing’’ with 

the clarifying statement ‘‘In addition to 

the definition contained in section 1 of 

the Basic Provisions,’’ added. This 

change clarifies that the definition in 

the Crop Provisions does not override 

the definition in the Basic Provisions, 

but rather is intended to be used 

together. The change appears in: 

• Fresh Market Tomato Dollar Plan 

Crop Insurance Provisions (7 CFR 

457.139); and 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167). 

FCIC is correcting the producer’s 

notification requirement for any 

production intended for direct 

marketing to apply 15 days prior to 

harvest, rather than 15 days prior to the 

sale. Currently, the deadline for 

notification attaches to the date of sale, 

which may not allow an AIP an 

opportunity to conduct an in-field (preharvest) appraisal. This change will 

require the producer to notify the AIP at 

least 15 calendar days before the crop is 

harvested, which allows for the AIPs to 


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Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 38885 

conduct pre-harvest appraisals. This 

change is being made in the following 

Crop Provisions: 

• Arizona-California Citrus Fruit Crop 

Insurance Provisions (7 CFR 457.121); 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); 

• Table Frape Crop Insurance 

Provisions (7 CFR 457.149); and 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119). 

Appeals and Arbitration 

FCIC is adding the good farming 

practice appeal deadline to paragraph 

23(b) of the ARPI Basic Provisions (7 

CFR part 407) and paragraph 20(d) of 

the CCIP Basic Provisions (457.8). This 

change will ensure that producers are 

aware of the deadline to file an appeal 

of a good farming practice 

determination from the AIP. Currently, 

the deadline (30 days) is only contained 

in the administrative regulation, 

Subpart J, and procedural handbooks 

that are not provided to the producer 

because they are not part of the contract 

between the insured producer and the 

AIP. This is not a procedural change, 

but a change to provide a clear deadline 

within the policy. FCIC has had 

producers request an appeal to a good 

farming practice determination outside 

the timeframe for which they can 

request an appeal. The change reduces 

confusion with other types of appeal 

rights within the policy. 

Clarifications and Corrections 

FCIC is deleting obsolete language in 

paragraphs (c) through (f) from the 

preamble of the CCIP Basic Provisions 

(§ 457.8). In a rule published on March 

30, 2010 at 75 FR 15777, FCIC added 

paragraphs (c) through (f) to the CCIP 

Basic Provisions (§ 457.8) to explain 

how the producer’s active policy 

transitioned to the new plans of 

insurance when FCIC transitioned from 

Crop Revenue Coverage, Revenue 

Assurance, Income Protection, and 

Indexed Income Protection to Revenue 

Protection and Yield Protection plans of 

insurance. That language is no longer 

needed because all policies have 

transitioned to the new plans of 

insurance. 

FCIC is adding language in the policy 

to be more consistent with procedure 

language. The policy now provides 

clarity regarding the impact of different 

production methods on a producer’s 

Actual Production History (APH) yield, 

in section 3(h)(3) of the CCIP Basic 

Provisions (§ 457.8). The previous 

policy language was in a single large 

paragraph that generated confusion on 

which adjustment methods were 

applicable. The change breaks up the 

paragraph into more user-friendly 

paragraphs for clarity. If the approved 

APH yield needs to be adjusted because 

a producer changes the production 

method used on the acreage being 

insured, the adjustment needs to be the 

lower of: (1) the approved APH yield for 

the APH database; (2) the average of 

approved APH yields from other APH 

databases where the production method 

was carried out; or (3) the applicable 

county transitional-yield if the 

production method has not been carried 

out on other APH databases. 

FCIC is replacing the phrase ‘‘growing 

season’’ with ‘‘leaf year.’’ This changes 

the wording to be consistent with how 

the information is shown in the 

actuarial documents. This change is 

being made in the following Crop 

Provisions: 

• Arizona-California Citrus Crop 

Insurance Provisions (7 CFR 457.121); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); and 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149). 

FCIC is clarifying that the minimum 

age or minimum production 

requirement is not waived by a written 

agreement, but rather if ‘‘otherwise 

allowed by the Special Provisions.’’ 

This change clarifies the producer’s 

requirement and provides transparency 

in identifying the location of their 

requirements. This change is being 

made in the following Crop Provisions: 

• Arizona-California Citrus Crop 

Insurance Provisions (7 CFR 457.121); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); and 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149). 

FCIC is clarifying insurability 

requirements in the Pecan Revenue 

Crop Insurance Provisions (7 CFR 

457.167). The minimum production 

requirement (600 pounds of pecans inshell per acre in one of the previous 4 

crop years) in paragraph 8(d) is 

unchanged. The minimum production 

requirement can only be waived by 

written agreement. There are published 

procedures on how written agreements 

can be requested, reviewed, and 

approved. The clarification ensures the 

Crop Provisions is consistent with these 

procedures, specifically that an AIP 

cannot unilaterally approve the written 

agreement. The minimum continuous 

acreage requirement (at least one 

contiguous acre) in paragraph 8(f) 

remains, but exceptions to the 

requirement are now explicitly listed in 

the Special Provisions, rather than 

requiring a request, review, and 

approval of a written agreement. 

FCIC is clarifying that the definition 

for ‘‘interplanted’’ overrides the 

definition in the CCIP Basic Provisions, 

by adding the statement, ‘‘In lieu of the 

definition contained in section 1 of the 

Basic Provisions’’ prior to the 

description. Since the CCIP Basic 

Provisions and the Crop Provisions are 

separate components of the same crop 

insurance policy, adding the explicit 

statement, ‘‘in lieu of,’’ clarifies that the 

Crop Provisions definitions is intended 

to replace and override the definition in 

the CCIP Basic Provisions. It will 

provide clear use of the definition and 

its application to the individual Crop 

Provisions. This change will be made in 

the following Crop Provisions: 

• Arizona-California Citrus Crop 

Insurance Provisions (7 CFR 457.121); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 


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38886 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); and 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149). 

FCIC is clarifying that the definition 

for ‘‘production guarantee’’ in the Onion 

Crop Insurance Provisions (7 CFR 

457.135) overrides the definition in the 

CCIP Basic Provisions, by adding the 

statement ‘‘In lieu of the definition 

contained in section 1 of the Basic 

Provisions’’ prior to the description. It 

will clarify the use of the definition and 

its application to the Onion Crop 

Insurance Provisions. 

FCIC is replacing the term ‘‘FSA farm 

serial number’’ with the term ‘‘FSA farm 

number,’’ because the term ‘‘FSA farm 

serial number’’ is no longer used. A 

similar change was already 

implemented in the CCIP Basic 

Provisions in 2017 when the definition 

was changed to remove the word 

‘‘serial.’’ This change will be made in 

the following Crop Provisions: 

• Arizona-California Citrus Crop 

Insurance Provisions (7 CFR 457.121); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); and 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149). 

FCIC is correcting the location of 

certain information (for example, price 

elections and fresh fruit factors) by 

replacing ‘‘Special Provisions’’ with 

‘‘actuarial documents.’’ This change will 

be made in the following Crop 

Provisions: 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Fresh Market Tomato Dollar Plan 

Crop Insurance Provisions (7 CFR 

457.139); 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); and 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119). 

FCIC is updating prices and yields in 

settlement of claim examples so they are 

more reflective of current values and 

potential indemnities. This change will 

be made in the following Crop 

Provisions: 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); and 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159). 

In addition, FCIC is updating years 

used in examples in the following Crop 

Provisions to be more current: 

• Arizona-California Citrus Fruit Crop 

Insurance Provisions (7 CFR 457.121); 

and 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131). 

FCIC is clarifying how coverage level 

impacts the production guarantee in the 

settlement of a claim examples, by 

showing the calculation of coverage 

level multiplied by the approved yield 

equals the production guarantee in Step 

1 of the example. The remaining steps 

in the settlement of the claim examples 

continue to use the production 

guarantee. This change will be made in 

the following Crop Provisions: 

• Prune Crop Insurance Provisions (7 

CFR 457.133); and 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159). 

FCIC is clarifying where the 

settlement of claim example begins in 

the Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131), by inserting 

‘‘For example’’ after the introductory 

text. 

FCIC is revising the sub-heading for 

section 3 to ‘‘Insurance Guarantees, 

Coverage Levels, and Prices’’ by 

removing the phrase ‘‘for Determining 

Indemnities’’ at the end. Removing this 

phrase will align the sub-heading to 

match the corresponding section in the 

CCIP Basic Provisions. It also helps 

clarify that price is not exclusively used 

to determine indemnities; it is also used 

to establish the guarantee and determine 

the premium due for the producer. This 

change will be made in the following 

Crop Provisions: 

• Arizona-California Citrus Crop 

Insurance Provisions (7 CFR 457.121); 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 

• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149); 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119); 

FCIC is correcting the dates, states, 

and counties associated with the 

contract change dates, the cancellation 

and termination dates, and end of 

insurance period dates, where 

necessary, to match current coverage 

areas and dates in the actuarial 

documents. This change will specify the 

states and counties that currently have 

coverage available for the following 

Crop Provisions: 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128); and 

• Onion Crop Insurance Provisions (7 

CFR 457.135). 

FCIC is updating the effective year to 

show the year that the changes in the 

Crop Provision will apply. This change 

will be made in the introductory 

paragraph of the following Crop 

Provisions: 

• Arizona-California Citrus Fruit Crop 

Insurance Provisions (7 CFR 457.121); 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• California Avocado Crop Insurance 

Provisions (7 CFR 457.175); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Florida Avocado Crop Insurance 

Provisions (7 CFR 457.173); 


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• Forage Production Crop Insurance 

Provisions (7 CFR 457.117); 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

• Fresh Market Tomato (dollar plan) 

Crop Insurance Provisions (7 CFR 

457.139); 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128); 

• Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pear Crop Insurance Provisions (7 

CFR 457.111); 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Prune Crop Insurance Provisions (7 

CFR 457.133); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149); and 

• Texas Citrus Crop Insurance 

Provisions (7 CFR 457.119). 

FCIC is clarifying ‘‘agree in writing’’ 

by replacing with the defined term 

‘‘written agreement’’ in the Onion Crop 

Insurance Provisions (7 CFR 457.135). 

‘‘Written agreement’’ is specifically 

defined in the CCIP Basic Provisions. 

The use of ‘‘agree in writing’’ was 

intended to mean that the producer 

must have a written agreement. 

However, it has generated questions in 

the past because it had a different 

wording than the definition. 

FCIC is removing a duplicate 

paragraph from section 7 in the Peach 

Crop Insurance Provisions (7 CFR 

457.153). 

In the Peach Crop Insurance 

Provisions (7 CFR 457.153), FCIC is 

clarifying that a producer may choose 

optional units for the fresh and 

processing intended uses, but not 

further divide optional units by the 

types of peaches specified in the Special 

Provisions. An optional unit is a type of 

crop insurance unit. Crop insurance 

units are an identifiable, insurable 

segment of land on which an insurable 

crop is grown, and separate production 

records have been kept. Insuring by 

optional units, with fresh peaches and 

processing peaches insured on different 

optional units, is the producer’s choice. 

In the Special Provisions, the fresh and 

processing intended uses are further 

classified by types of peaches, but the 

Special Provisions are silent on whether 

a producer can choose separate optional 

units for different types of peaches, 

which has led to questions from 

producers and AIPs. The further 

classification of types allows for distinct 

pricing, rates, and yields, but were not 

intended to allow separate optional 

units. Removing ‘‘as specified in the 

Special Provisions’’ clarifies the 

availability of optional units to ‘‘fresh 

and processing’’ intended uses only. 

In the Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148) 

and the Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129), 

FCIC is clarifying the definition of 

‘‘planted acreage’’ by adding the section 

reference number in the definition (that 

is, adding ‘‘section 1 of’’). 

In the Prune Crop Insurance 

Provisions (7 CFR 457.133), FCIC is 

clarifying the definition for ‘‘standard 

prunes’’ by specifically referencing the 

U.S. Standards for Grades of Dried 

Prunes. 

In the Macadamia Nut Crop Insurance 

Provisions (7 CFR 457.131), FCIC is 

correcting the order of the definitions by 

redesignating the definition of ‘‘floaters’’ 

in alphabetical order. 

In the Florida Avocado Crop 

Insurance Provisions (7 CFR 457.173), 

FCIC is adding ‘‘mid-season’’ avocados 

to the definition of type to align with 

the avocado industry designations for 

early, mid, and late-season avocados 

more appropriately. This change will 

allow producers to better align the midseason varieties’ insurance coverage 

with growing practices and the harvest 

period. 

In the Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148), 

FCIC is correcting the reference of 

section 7 of the Basic Provisions (that is, 

adding ‘‘and Administrative Fees’’) to 

complete the full name of the section 

title to match how it appears in the CCIP 

Basic Provisions. 

FCIC is amending the Blueberry Crop 

Insurance Provisions (7 CFR 457.166). 

Specifically, changing ‘‘became’’ to 

‘‘become’’ in section 6 paragraph 

(a)(2)(i) and changing the word ‘‘for’’ to 

lowercase in the section title. 

FCIC is changing non-primary words 

to lowercase and removing periods from 

the end of section headings for 

consistency across provisions. This 

change will be made in the following 

Crop Provisions: 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cabbage Crop Insurance Provisions 

(7 CFR 457.171); 

• Fresh Market Tomato (dollar plan) 

Crop Insurance Provisions (7 CFR 

457.139); 

• Onion Crop Insurance Provisions (7 

CFR 457.135); 

• Peach Crop Insurance Provisions (7 

CFR 457.153); 

• Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167); 

• Stonefruit Crop Insurance 

Provisions (7 CFR 457.159); and 

• Table Grape Crop Insurance 

Provisions (7 CFR 457.149). 

In the Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129), 

FCIC is correcting the spelling of 

‘‘totaling’’ in section 14 paragraph (b)(3). 

In the Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167), FCIC is 

correcting the spelling of 

‘‘notwithstanding.’’ 

In the Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128), FCIC is 

correcting the spelling of ‘‘Guarantee’’ to 

‘‘Guaranteed.’’ 

In the Peach Crop Insurance 

Provisions (7 CFR 457.153), FCIC is 

changing ‘‘allow’’ to ‘‘provide’’ for 

consistency with the actuarial 

documents. In addition, FCIC is adding 

the word ‘‘the’’ preceding ‘‘trees’’ for 

grammatical sufficiency and readability. 

The reference is specific to ‘‘the’’ trees 

bearing insured peaches under the 

policy. 

FCIC is correcting punctuation in 

bulleted lists by adding a semi colon or 

adding ‘‘and’’ after the semi-colon. This 

change will be made in the following 

Crop Provisions: 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

• Fresh Market Sweet Corn Crop 

Insurance Provisions (7 CFR 457.129); 

and 

• Fresh Market Tomato (dollar plan) 

Crop Insurance Provisions (7 CFR 

457.139). 

In the Pecan Revenue Crop Insurance 

Provisions (7 CFR 457.167), FCIC is 

changing ‘‘reject’’ to ‘‘not accept’’ in two 

places, referring to how the AIP 

processes a producer’s submitted 

application. The Pecan Revenue Crop 

Insurance Provisions refer to section 2 

of the CCIP Basic Provisions, which 

provide the grounds for an application 

to not be accepted, but the word ‘‘reject’’ 

does not appear in the CCIP Basic 

Provisions. In the same paragraph of the 

Pecan Revenue Crop Insurance 

Provisions, FCIC is removing the phrase 

‘‘of the application,’’ because it was 

incorrectly listed as appearing in section 

2 of the CCIP Basic Provisions. 

FCIC is removing the definition of 

‘‘adapted’’ from the Table Grape Crop 

Insurance Provisions (7 CFR 457.149). 

The definition referred to a list of grape 

varieties by county recognized by 

National Institute of Food and 

Agriculture as compatible with 

agronomic and weather conditions in 

the county. However, the National 

Institute of Food and Agriculture does 


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not maintain a list of adapted grape 

varieties. Other federally reinsured Crop 

Provisions do not define ‘‘adapted.’’ The 

plain meaning of the word has been 

sufficient in other Crop Provisions 

without generating questions. Therefore, 

the definition is removed in the Table 

Grape Crop Insurance Provisions. 

FCIC is removing repetitive 

parenthetical titles that reference the 

CCIP Basic Provisions for consistency. 

For example, this change deletes the 

parenthetical title (Insurance 

Guarantees, Coverage Levels, and Prices 

for Determining Indemnities) in the 

sentence ‘‘In addition to the 

requirements of section 3 (Insurance 

Guarantees, Coverage Levels, and Prices 

for Determining Indemnities) of the 

Basic Provisions.’’ In other Crop 

Provisions, the parenthetical title does 

not appear. This change will make Crop 

Provisions more consistent. This change 

will remove parenthetical titles in the 

following Crop Provisions: 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); and 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128). 

The CCIP Basic Provisions includes 

the priority order of policy provisions. 

Therefore, in the following Crop 

Provisions, FCIC is removing the 

introductory sentence explaining the 

order of priority of policy provisions 

because it is duplicative of the same 

order of priority included in the CCIP 

Basic Provisions: 

• Blueberry Crop Insurance 

Provisions (7 CFR 457.166); 

• Cranberry Crop Insurance 

Provisions (7 CFR 457.132); 

• Fresh Market Pepper Crop 

Insurance Provisions (7 CFR 457.148); 

and 

• Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions (7 CFR 457.128). 

In the Stonefruit Crop Insurance 

Provisions (7 CFR 457.159), in section 3, 

FCIC is adding paragraph (d). The new 

paragraph clarifies that a producer may 

not increase their elected or assigned 

coverage level or the ratio of their price 

election to the maximum price election 

if a cause of loss that could or would 

reduce the yield of the insured crop is 

evident prior to the time that the 

producer requests the increase. These 

changes to section 3 were proposed in 

the Common Crop Insurance Policy 

Basic Provisions; Stonefruit Crop 

Provisions proposed rule, published in 

the Federal Register on November 24, 

2009 (74 FR 61286–61289). The change 

in the Common Crop Insurance 

Regulations; Stonefruit Crop Insurance 

Provisions final rule, published in the 

Federal Register on July 29, 2010 (75 FR 

44709–44718), was not completed in the 

Code of Federal Regulations. Further, a 

technical correction for the change to 

the Stonefruit Crop Insurance 

Provisions was published in the Federal 

Register on September 27, 2010 (75 FR 

59057–59058). The intended change 

was not completed correctly. This rule 

is making the required technical 

corrections to make that change now. 

Effective Date, Notice and Comment, 

and Exemptions 

The Administrative Procedure Act 

(APA, 5 U.S.C. 553) provides that the 

notice and comment and 30-day delay 

in the effective date provisions do not 

apply when the rule involves specified 

actions, including matters relating to 

contracts. This rule governs contracts 

for crop insurance policies and therefore 

falls within that exemption. 

This rule is exempt from the 

regulatory analysis requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

601–612), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. The requirements 

for the regulatory flexibility analysis in 

5 U.S.C. 603 and 604 are specifically 

tied to the requirement for a proposed 

rule under 5 U.S.C. 553 or any other 

law; in addition, the definition of rule 

in 5 U.S.C. 601 is tied to the publication 

of a proposed rule. 

For major rules, the Congressional 

Review Act requires a delay of the 

effective date of 60 days after 

publication to allow for Congressional 

review. This rule is not a major rule 

under the Congressional Review Act, as 

defined by 5 U.S.C. 804(2). Therefore, 

this final rule is effective on the date of 

publication in the Federal Register. 

Although not required by APA or any 

other law, FCIC has chosen to request 

comments on this rule. 

Executive Orders 12866 and 13563 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. The 

requirements in Executive Orders 12866 

and 13563 for the analysis of costs and 

benefits apply to rules that are 

determined to be significant or 

economically significant. 

The Office of Management and Budget 

(OMB) has designated this rule as not 

significant under Executive Order 

12866, ‘‘Regulatory Planning and 

Review,’’ and therefore, OMB has not 

reviewed this rule and analysis of the 

costs and benefits is not required under 

either Executive Order 12866 or 13563. 

Clarity of the Regulation 

Executive Order 12866, as 

supplemented by Executive Order 

13563, requires each agency to write all 

rules in plain language. In addition to 

your substantive comments on this rule, 

we invite your comments on how to 

make the rule easier to understand. For 

example: 

• Are the requirements in the rule 

clearly stated? Are the scope and intent 

of the rule clear? 

• Does the rule contain technical 

language or jargon that is not clear? 

• Is the material logically organized? 

• Would changing the grouping or 

order of sections or adding headings 

make the rule easier to understand? 

• Could we improve clarity by adding 

tables, lists, or diagrams? 

• Would more, but shorter, sections 

be better? Are there specific sections 

that are too long or confusing? 

• What else could we do to make the 

rule easier to understand? 

Environmental Review 

The environmental impacts of this 

final rule have been considered in a 

manner consistent with the provisions 

of the National Environmental Policy 

Act (NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and because USDA will be 

making the payments to producers, the 

USDA regulation for compliance with 

NEPA (7 CFR part 1b). As specified in 

7 CFR 1b.4(b)(4), FCIC is categorically 

excluded from the preparation of an 

Environmental Analysis or 

Environmental Impact Statement unless 

the FCIC Manager (agency head) 

determines that an action may have a 

significant environmental effect. The 

FCIC Manager has determined this rule 

will not have a significant 

environmental effect. Therefore, FCIC 

will not prepare an environmental 

assessment or environmental impact 

statement for this action and this rule 

serves as documentation of the 

programmatic environmental 

compliance decision. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 


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Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 38889 

1See https://sam.gov/content/assistance-listings. 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. 

Before any judicial actions may be 

brought regarding the provisions of this 

rule, the administrative appeal 

provisions of 7 CFR part 11 are to be 

exhausted. 

Executive Order 13175 

This rule has been reviewed in 

accordance with the requirements of 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments.’’ Executive Order 13175 

requires Federal agencies to consult and 

coordinate with Tribes on a 

government-to-government basis on 

policies that have Tribal implications, 

including regulations, legislative 

comments or proposed legislation, and 

other policy statements or actions that 

have substantial direct effects on one or 

more Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

RMA has assessed the impact of this 

rule on Indian Tribes and determined 

that this rule does not, to our 

knowledge, have Tribal implications 

that require Tribal consultation under 

E.O. 13175. The regulation changes do 

not have Tribal implications that 

preempt Tribal law and are not expected 

have a substantial direct effect on one or 

more Indian Tribes. If a Tribe requests 

consultation, RMA will work with the 

USDA Office of Tribal Relations to 

ensure meaningful consultation is 

provided where changes, additions and 

modifications identified in this rule are 

not expressly mandated by Congress. 

The Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 

actions of State, local, and Tribal 

governments, or the private sector. 

Agencies generally must prepare a 

written statement, including cost 

benefits analysis, for proposed and final 

rules with Federal mandates that may 

result in expenditures of $100 million or 

more in any 1 year for State, local or 

Tribal governments, in the aggregate, or 

to the private sector. UMRA generally 

requires agencies to consider 

alternatives and adopt the more cost 

effective or least burdensome alternative 

that achieves the objectives of the rule. 

This rule contains no Federal mandates, 

as defined in Title II of 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. 

Federal Assistance Program 

The title and number of the 

Assistance Listing,1 to which this rule 

applies is No. 10.450—Crop Insurance. 

Paperwork Reduction Act of 1995 

In accordance with the provisions of 

the Paperwork Reduction Act of 1995 

(44 U.S.C. chapter 35, subchapter I), the 

rule does not change the information 

collection approved by OMB under 

control numbers 0563–0053. 

USDA Non-Discrimination Policy 

In accordance with Federal civil 

rights law and USDA civil rights 

regulations and policies, USDA, its 

Agencies, offices, and employees, and 

institutions participating in or 

administering USDA programs are 

prohibited from discriminating based on 

race, color, national origin, religion, sex, 

gender identity (including gender 

expression), sexual orientation, 

disability, age, marital status, family or 

parental status, income derived from a 

public assistance program, political 

beliefs, or reprisal or retaliation for prior 

civil rights activity, in any program or 

activity conducted or funded by USDA 

(not all bases apply to all programs). 

Remedies and complaint filing 

deadlines vary by program or incident. 

Persons with disabilities who require 

alternative means of communication for 

program information (for example, 

braille, large print, audiotape, American 

Sign Language, etc.) should contact the 

responsible Agency or USDA TARGET 

Center at (202) 720–2600 or 844–433– 

2774 (toll-free nationwide). 

Additionally, program information may 

be made available in languages other 

than English. To file a program 

discrimination complaint, complete the 

USDA Program Discrimination 

Complaint Form, AD–3027, found 

online at https://www.usda.gov/oascr/ 

how-to-file-a-program-discriminationcomplaint and at any USDA office or 

write a letter addressed to USDA and 

provide in the letter all the information 

requested in the form. To request a copy 

of the complaint form, call (866) 632– 

9992. Submit your completed form or 

letter to USDA by mail to: U.S. 

Department of Agriculture, Office of the 

Assistant Secretary for Civil Rights, 

1400 Independence Avenue SW, 

Washington, DC 20250–9410 or email: 

OAC@usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

List of Subjects 

7 CFR Part 407 

Acreage allotments, Administrative 

practice and procedure, Barley, Corn, 

Cotton, Crop insurance, Peanuts, 

Reporting and recordkeeping 

requirements, Sorghum, Soybeans, 

Wheat. 

7 CFR Part 457 

Acreage allotments, Crop insurance, 

Reporting and recordkeeping 

requirements. 

For the reasons discussed in the 

supplementary information, FCIC 

amends 7 CFR parts 407 and 457, 

effective for the 2023 and succeeding 

crop years for crops with a contract 

change date on or after June 30, 2022, 

and for the 2024 and succeeding crop 

years for all other crops, as follows: 

PART 407—AREA RISK PROTECTION 

INSURANCE REGULATIONS 

■ 1. The authority citation for part 407 

continues to read as follows: 

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

■ 2. Amend § 407.9 by: 

■ a. In section 1: 

■ i. Add in alphabetical order 

definitions for ‘‘Farm management 

record’’ and ‘‘Production record’’; 

■ ii. Revise the definition for 

‘‘Production report’’; and 

■ iii. Remove the definition for 

‘‘Verifiable records’’ and add the 

definition for ‘‘Verifiable record’’ in 

alphabetical order; 

■ b. In section 8, paragraph (o), remove 

the phrase ‘‘records to support the 

information on’’ and add ‘‘acceptable 

production records to support the 

information you certified on’’ in its 

place; 

■ c. In section 23: 

■ i. Add paragraph (b)(1)(i) and (ii); 

■ ii. Remove paragraph (b)(2); and 

■ iii. Redesignate paragraph (b)(3) as 

paragraph (b)(2). 

The revisions and additions read as 

follows: 

§ 407.9 Area Risk Protection Insurance 

Regulations. 

* * * * * 

1. Definitions 

* * * * * 

Farm management record. A 

contemporaneous record provided by 

you that documents your actual 

production recorded at the time of 

harvest, storing of the crop, or use of the 

crop for feed, and can be used to 

substantiate your actual production 

reported on the production report. 

* * * * * 


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Production record. A written record 

that documents your actual production 

reported on the production report. The 

record must be an acceptable verifiable 

record or an acceptable farm 

management record as authorized by 

FCIC procedures. 

Production report. A written report 

provided by you showing your annual 

production in accordance with section 

8. The report contains yield information 

for the current year, including planted 

acreage and production. This report 

must be supported by acceptable 

production records. 

* * * * * 

Verifiable record. A contemporaneous 

record from a disinterested third party 

that substantiates your actual 

production reported on the production 

report. The record must be a document 

or evidence from a disinterested third 

party that is accurate and can be 

validated or verified by us. 

* * * * * 

23. Mediation, Arbitration, Appeal, 

Reconsideration, and Administrative 

and Judicial Review 

* * * * * 

(b) * * * 

(1) * * * 

(i) If you disagree with our decision 

of what constitutes a good farming 

practice you may request through us 

that FCIC review our decision. Requests 

for FCIC review must be made within 30 

days of the postmark date on the written 

notice of the determination regarding 

good farming practices. 

(ii) You may not sue us for our 

decisions regarding whether good 

farming practices were used by you. 

You must request a determination from 

FCIC of what constitutes a good farming 

practice before filing any suit against 

FCIC. 

* * * * * 

PART 457—COMMON CROP 

INSURANCE REGULATIONS 

■ 3. The authority citation for part 457 

continues to read as follows: 

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

■ 4. Amend § 457.8 by: 

■ a. In the introductory section, remove 

paragraphs (c) through (f); 

■ b. In section 1: 

■ i. Add in alphabetical order 

definitions for ‘‘Direct marketing’’, 

‘‘Farm management record’’, and 

‘‘Production record’’; 

■ ii. Revise the definition for 

‘‘Production report’’; and 

■ iii. Remove the definition for 

‘‘Verifiable records’’ and add the 

definition for ‘‘Verifiable record’’ in 

alphabetical order; 

■ c. In section 3: 

■ i. Revise paragraph (g)(3); and 

■ ii. Revise paragraph (h)(3); 

■ d. In section 6: 

■ i. In paragraph (c)(4), remove the word 

‘‘and’’; 

■ ii. In paragraph (c)(5), remove the 

period at the end of the sentence and 

add ‘‘; and’’ in its place; and 

■ iii. Add paragraph (c)(6); 

■ e. In section 15: 

■ i. Revise the section heading; 

■ ii. In paragraph (b)(1), remove the 

words ‘‘verifiable records’’ and add 

‘‘acceptable verifiable records or 

acceptable farm management records’’ 

in their place; and 

■ iii. Revise paragraph (b)(3)(ii); 

■ f. In section 20, revise paragraph 

(d)(1); and 

■ g. Add new section 38. 

The revisions and additions read as 

follows: 

§ 457.8 The application and policy. 

* * * * * 

Common Crop Insurance Policy 

* * * * * 

1. Definitions 

* * * * * 

Direct Marketing. The sale of the 

insured crop directly to consumers 

without the intervention of an 

intermediary such as a wholesaler, 

retailer, packer, processor, shipper, 

buyer, or broker. Production records are 

controlled exclusively by the 

policyholder. Examples of direct 

marketing include selling through an 

on-farm or roadside stand, a farmer’s 

market, or permitting the general public 

to enter the acreage for the purpose of 

harvesting or picking all or a portion of 

the crop. Only the portion of the crop 

sold directly to consumers will be 

considered direct marketed. 

* * * * * 

Farm management record. A 

contemporaneous record provided by 

you that documents your actual 

production recorded at the time of 

harvest, storing of the crop, or use of the 

crop for feed, and can be used to 

substantiate your actual production 

reported on the production report. 

* * * * * 

Production record. A written record 

that documents your actual production 

reported on the production report. The 

record must be an acceptable verifiable 

record or an acceptable farm 

management record as authorized by 

FCIC procedures. 

* * * * * 

Production report. A written report 

provided by you showing your annual 

production that will be used by us to 

determine your yield for insurance 

purposes in accordance with section 3. 

The report contains yield information 

for the previous year(s), including 

planted acreage and production. This 

report must be supported by acceptable 

production records. 

* * * * * 

Verifiable record. A contemporaneous 

record from a disinterested third party 

that substantiates your actual 

production reported on the production 

report. The record must be a document 

or evidence from a disinterested third 

party that is accurate and can be 

validated or verified by us. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

(g) * * * 

(3) If you do not have acceptable 

production records to support the 

information you certified on your 

production report you will receive an 

assigned yield in accordance with 

section 3(f)(1) and 7 CFR part 400, 

subpart G, for the applicable units, 

determined by us, for crop years that do 

not have such production records in 

accordance with FCIC procedures. If the 

conditions of section 34(b)(3) are not 

met, you will receive an assigned yield 

for the applicable basic unit. 

* * * * * 

(h) * * * 

(3) To an amount consistent with the 

production method actually carried out 

for the crop year if you use a different 

production method than was previously 

used and the production method 

actually carried out is likely to result in 

a yield lower than the average of your 

previous actual yields. 

(i) The yield will be adjusted to the 

lower of the: 

(A) Approved APH yield for the APH 

database; 

(B) Average of approved APH yields 

based on your other APH databases 

where the production method was 

carried out; or 

(C) Applicable county transitional 

yield for the production method if other 

such APH databases do not exist. 

(ii) You must notify us of changes in 

your production method by the acreage 

reporting date. If you fail to notify us, 

in addition to the reduction of your 

approved yield described herein, you 

will be considered to have misreported 

information and you will be subject to 

the consequences in section 6(g). For 

example, for a non-irrigated APH 

database, your yield is based upon 

acreage of the crop that is watered once 


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prior to planting, and the crop is not 

watered prior to planting for the current 

crop year. Your approved APH yield 

will be reduced to an amount consistent 

with the actual production history of 

your other non-irrigated APH database 

where the crop has not been watered 

prior to planting or limited to the nonirrigated transitional yield for the APH 

database if other such APH databases do 

not exist. 

* * * * * 

6. Report of Acreage 

* * * * * 

(c) * * * 

(6) Acknowledgement of your duty to 

notify us if you intend to direct market 

your crop or if acceptable verifiable 

records are required and will not be 

available. This acknowledgement must 

also include a signed marketing 

certification if required in section 38. 

* * * * * 

15. Production Included in Determining 

an Indemnity and Payment Reductions 

* * * * * 

(b) * * * 

(3) * * * 

(ii) You harvest before the end of the 

insurance period, your harvested 

production will be used to adjust the 

loss, unless: 

(A) The applicable crop provisions 

require an appraisal prior to harvest and 

you are unable to prove that additional 

insured causes of loss occurred after the 

appraisal or deterioration of the crop 

can be attributed to insurable causes 

after the appraisal was completed; then 

your appraised production will be used 

to adjust the loss; or 

(B) You intend to direct market your 

crop or your production records will not 

be from a disinterested third party and 

we determine an appraisal prior to 

harvest was necessary and you are 

unable to prove that additional insured 

causes of loss occurred after the 

appraisal or deterioration of the crop 

can be attributed to insurable causes 

after the appraisal was completed; then 

your appraised production will be used 

to adjust the loss. 

* * * * * 

20. Mediation, Arbitration, Appeal, 

Reconsideration, and Administrative 

and Judicial Review 

* * * * * 

(d) * * * 

(1) * * * 

(i) If you disagree with our 

determination of the amount of assigned 

production, you must use the arbitration 

or mediation process contained in this 

section. 

(ii) If you disagree with our decision 

of what constitutes a good farming 

practice you may request through us 

that FCIC review our decision. Requests 

for FCIC review must be made within 30 

days of the postmark date on the written 

notice of the determination regarding 

good farming practices. 

(iii) You may not sue us for our 

decisions regarding whether good 

farming practices were used by you. 

You must request a determination from 

FCIC of what constitutes a good farming 

practice before filing any suit against 

FCIC. 

* * * * * 

38. Direct Marketing and Verifiable 

Records 

(a) You must notify us and complete 

the marketing certification if you intend 

to direct market any portion of the crop, 

or if acceptable verifiable records are 

required and will not be available. It is 

your responsibility to assure you meet 

all the notification and completion 

requirements to be properly identified 

as in compliance with the provisions 

specified in this section. 

(b) Notice and certification 

provisions: 

(1) Provide us notice and complete a 

marketing certification by the acreage 

reporting date when any portion of the 

crop will be direct marketed, or if 

acceptable verifiable records are 

required and will not be available. If 

your marketing plans change after the 

acreage reporting date, then you must 

provide notice no later than 15 days 

prior to harvest of the crop. The notice 

may be made by telephone or in person. 

If a marketing certification is required, 

it must be completed in writing within 

15 days of the initial notice. 

(2) If you fail to notify us timely and 

complete the marketing certification in 

accordance with these provisions and if 

you do not have acceptable verifiable 

production records to support the 

information you certified on your 

production report, you will receive an 

assigned yield in accordance with 3(g). 

(3) We may determine that the 

marketing certification is not required 

for your crop based on FCIC procedures. 

(4) Appraisals prior to harvest may be 

conducted for production reporting 

purposes to be used in conjunction with 

your acceptable production records. 

(i) If we determine an appraisal is 

necessary, we must notify you. 

(ii) If you request an appraisal, you 

must notify us at least 15 days prior to 

harvest. 

(5) Appraisals conducted for 

production reporting purposes may not 

be applicable for establishing total 

production to count under section 15 

when the appraisal was conducted prior 

to our receipt of a notice of loss. 

■ 5. Amend § 457.111 by: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2015’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. Revise the section 3 heading; 

■ d. In section 6, revise paragraph (c); 

and 

■ e. In section 10, revise paragraph 

(b)(2). 

The revisions read as follows: 

§ 457.111 Pear Crop Insurance Provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

6. Insured Crop 

* * * * * 

(c) That are grown on trees that have 

produced an average of at least five (5) 

tons of pears per acre in at least one of 

the four previous crop years, unless 

otherwise allowed by the Special 

Provisions; and 

* * * * * 

10. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) * * * 

(2) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing 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. 

* * * * * 


jspears on DSK121TN23PROD with RULES1
38892 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 

■ 6. Amend § 457.117 by: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2021’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1, remove the definition 

of ‘‘Direct marketing’’; 

■ c. In section 2, revise the section 

heading; 

■ d. In section 9, revise paragraph (b); 

■ e. In section 10, in paragraph (b), 

revise Example 1 and Example 2; 

The revisions read as follows: 

§ 457.117 Forage Production Crop 

Insurance Provisions. 

* * * * * 

2. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

9. Duties in the Event of Damage or Loss 

* * * * * 

(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. Failure to 

give timely notice that production will 

be harvested for direct marketing 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; 

* * * * * 

10. Settlement of Claim 

* * * * * 

(b) * * * 

Example 1 

Assume you have a 100 percent share 

in 100 acres of type A forage in the unit, 

with a guarantee of 3.0 tons per acre and 

a price election of $100 per ton. Due to 

adverse weather you were only able to 

harvest 50.0 tons. Your indemnity 

would be calculated as follows: 

1. 100 acres type A × 3 tons = 300- 

ton guarantee; 

2 & 3. 300 tons × $100 price election 

= $30,000 total value guarantee; 

4 & 5. 50 tons production to count × 

$100 price election = $5,000 total value 

of production to count; 

6. $30,000 value guarantee ¥ $5,000 

= $25,000 loss; and 

7. $25,000 × 100 percent share = 

$25,000 indemnity payment. 

Example 2 

Assume you also have a 100 percent 

share in 100 acres of type B forage in the 

same unit, with a guarantee of 1.0 ton 

per acre and a price election of $90 per 

ton. Due to adverse weather you were 

only able to harvest 5.0 tons. Your total 

indemnity for forage production for both 

types A and B in the same unit would 

be calculated as follows: 

1. 100 acres × 3 tons = 300-ton 

guarantee for type A and 100 acres × 1 

ton = 100-ton guarantee for type B; 

2. 300-ton guarantee × $100 price 

election = $30,000 total value of the 

guarantee for type A and 100-ton 

guarantee × $90 price election = $9,000 

total value of the guarantee for type B; 

3. $30,000 + $9,000 = $39,000 total 

value of the guarantee; 

4. 50 tons × $100 price election = 

$5,000 total value of production to 

count for type A; and 5 tons × $90 price 

election = $450 total value of 

production to count for type B; 

5. $5,000 + $450 = $5,450 total value 

of production to count for types A and 

B; 

6. $39,000 ¥ $5,450 = $33,550 loss; 

and 

7. $33,550 loss × 100 percent share = 

$33,550 indemnity payment. 

* * * * * 

■ 7. Amend § 457.119 by: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2018’’ and 

add ‘‘2024’’ in its place; 

■ b. In section 1, remove the definition 

of ‘‘Direct marketing’’; 

■ c. In section 3, revise the section 

heading; 

■ d. In section 11, paragraph (b)(1) 

remove the words ‘‘will be sold by’’ 

wherever they appear and add ‘‘will be 

harvested for’’ in their place; and 

■ e. In section 12, paragraph (e), remove 

the words ‘‘Special Provisions’’ and add 

in their place ‘‘actuarial documents’’. 

The revisions read as follows: 

§ 457.119 Texas Citrus Crop Insurance 

Provisions. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

■ 8. Amend § 457.121 as follows: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2015’’ and 

add ‘‘2024’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. In section 2 paragraph (b), remove 

the word ‘‘serial’’; 

■ d. In section 3: 

■ i. Revise the section heading; 

■ ii. In paragraph (b): 

■ A. Remove the year ‘‘2015’’ and add 

‘‘2024’’ in its place; and 

■ B. Remove the year ‘‘2013’’ and add 

‘‘2022’’ in its place; 

■ e. In section 6, revise paragraph (f); 

and 

■ f. In section 10, in paragraph (b)(1), 

remove the words ‘‘will be sold by’’ 

wherever they appear and add ‘‘will be 

harvested for’’ in their place each. 

The revisions read as follows: 

§ 457.121 Arizona-California citrus crop 

insurance provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more agricultural commodities are 

planted in any form of alternating or 

mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

6. Insured Crop 

* * * * * 

(f) That, unless otherwise allowed by 

the Special Provisions, is grown on trees 

that have reached at least: 

(1) The sixth leaf year; or 

(2) The fifth leaf year after topwork or 

grafting, if topwork or grafting occurs 

after set out. 

* * * * * 

■ 9. Amend § 457.128 by: 

■ a. Revise the heading immediately 

following the section heading; 

■ b. In the introductory text between 

‘‘(Appropriate title for insurance 

provider)’’ and Section 1: 

■ i. Remove the words ‘‘Guarantee 

Production Plan’’ and add ‘‘Guaranteed 

Production Plan’’ in their place; and 

■ ii. Remove the sentence ‘‘If a conflict 

exists among the policy provisions, the 

order of priority is as follows: (1) The 

Catastrophic Risk Protection 

Endorsement, if applicable; (2) the 

Special Provisions; (3) these Crop 

Provisions; and (4) the Basic Provisions 

with (1) controlling (2), etc.’’; 

■ c. In section 1, remove the definition 

of ‘‘Direct marketing’’; 

■ d. In section 3: 

■ i. Revise the section heading; 

■ ii. In the introductory text, remove the 

words ‘‘for Determining Indemnities’’; 

and 

■ iii. In paragraph (a), remove the words 

‘‘Special Provisions’’ wherever they 

appear and add ‘‘actuarial documents’’ 

in their place each time; 

■ e. In section 4, remove the number 

‘‘15’’ and add ‘‘31’’ in its place; 

■ f. In section 5, in the table, remove 

‘‘January 15’’ and add ‘‘January 31’’ in 

their place; 

The revisions read as follows: 


jspears on DSK121TN23PROD with RULES1
Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 38893 

§ 457.128 Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions. 

The Guaranteed Production Plan of 

Fresh Market Tomato Crop Insurance 

Provisions for the 2023 and succeeding 

crop years are as follows: 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

■ 10. Amend § 457.129 by: 

■ a. Revise the undesignated 

introductory text; 

■ b. In section 1: 

■ i. In the definition of ‘‘Allowable 

costs’’, remove the words ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place; and 

■ ii. Remove the definition of ‘‘Direct 

marketing’’; and 

■ iii. In the definition of ‘‘Minimum 

value’’, remove the words’’ ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place; and 

■ iv. In the definition of ‘‘Planted 

acreage’’, remove the words ‘‘the Basic 

Provisions’’ and add ‘‘section 1 of the 

Basic Provisions’’ in their place; 

■ c. In section 4, revise the table. 

■ d. In section 5: 

■ i. Revise the section heading; 

■ ii. Revise the undesignated paragraph; 

and 

■ iii. Revise the table; 

■ e. In section 8, in paragraph (b)(3), add 

the word ‘‘and’’ at the end; 

■ f. In section 13: 

■ i. Revise paragraph (b); and 

■ ii. In paragraph (c) remove the words 

‘‘sold by’’; and add ‘‘harvested for’’ in 

their place; 

■ g. In section 14: 

■ i. In paragraph (b)(3) remove the word 

‘‘Totalling’’ and add ‘‘Totaling’’ in its 

place; 

■ ii. In paragraph (b)(5), revise the 

example; and 

■ h. In section 16 paragraph (b)(1), 

remove the words ‘‘Special Provisions’’ 

and add ‘‘actuarial documents’’ in their 

place. 

The revisions read as follows: 

§ 457.129 Fresh Market Sweet Corn Crop 

Insurance Provisions. 

The fresh market sweet corn crop 

insurance provisions for the 2023 and 

succeeding crop years in counties with 

a contract change date of November 30, 

and for the 2024 and succeeding crop 

years in counties with a contract change 

date of April 30, are as follows: 

* * * * * 

4. Contract Changes 

* * * * * 

State and county Date 

All Florida counties; and all Georgia counties for which the Special Provisions designate a fall planting period .......................... April 30. 

Toombs County, Georgia; and all other states ................................................................................................................................ November 30. 

* * * * * 5. Cancellation and Termination Dates 

In accordance with section 2 of the 

Basic Provisions, the cancellation and 

termination dates are: 

State and county 

Cancellation and 

termination 

dates 

Florida; and all Georgia counties for which the Special Provisions designate a fall planting period .............................................. July 31. 

Alabama; and Toombs County, Georgia .......................................................................................................................................... February 15. 

All other states .................................................................................................................................................................................. March 15. 

* * * * * 

13. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine the value of your 

production to count for production that 

is sold by direct marketing. If damage 

occurs after this appraisal, we will 

conduct an additional appraisal if you 

notify us that additional damage has 

occurred. These appraisals, and/or any 

acceptable production records provided 

by you, will be used to determine the 

value of your production to count. 

* * * * * 

14. Settlement of a Claim 

* * * * * 

(b) * * * 

(5) * * * 

For example: 

You have a 100 percent share in 65.3 

acres of fresh market sweet corn in the 

unit (15.0 acres in stage 1 and 50.3 acres 

in the final stage), with a dollar amount 

of insurance of $1,000 per acre. The 15.0 

acre field was damaged by flood and 

appraisals of the crop determined there 

was no potential production to be 

counted. From the 50.3 acre field, you 

are only able to harvest 5,627 containers 

of sweet corn. The net value of all sweet 

corn production sold ($3.50 per 

container) is greater than the Minimum 

Value per container ($3.30). The 5,627 

containers sold × $3.50 average net 

value per container = $19,694.50 value 

of your production to count. Your 

indemnity would be calculated as 

follows: 

(1) 15.0 acres × $1,000 amount of 

insurance = $15,000 and 50.3 acres × 

$1,000 amount of insurance = $50,300; 

(2) $15,000 × .65 (percent for stage 1) 

= $9,750 and $50,300 × 1.00 (percent for 

final stage) = $50,300; 

(3) $9,750 + $50,300 = $60,050 

amount of insurance for the unit; 

(4) $60,050¥$19,694.50 value of 

production to count = $40,355.50 loss; 

(5) $40,355.50 × 100 percent share = 

$40,355.50 indemnity payment. 

* * * * * 

■ 11. Amend § 457.131 by: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2017’’ and 

add ‘‘2024’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; 

■ ii. Redesignate the definition of 

‘‘Floaters’’ in alphabetical order; and 

■ iii. Revise the definition of 

‘‘Interplanted’’; 


jspears on DSK121TN23PROD with RULES1
38894 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 

■ c. In section 2, remove the word 

‘‘serial’’; 

■ d. In section 3: 

■ i. Revise the section heading; 

■ ii. In paragraph (a), remove of the 

words ‘‘Special Provisions’’ and add 

‘‘actuarial documents’’ in their place 

each time they occur; and 

■ iii. In paragraph (d), remove the year 

‘‘2016’’ and add ‘‘2024’’ in its place and 

remove the year ‘‘2014’’ and add the 

year ‘‘2022’’ in its place; 

■ e. In section 6, revise paragraph (d); 

■ f. In section 10, revise paragraph (b); 

and 

■ g. In section 11, in paragraph (b)(7), 

add an introductory sentence to the 

undesignated example. 

The revisions read as follows: 

§ 457.131 Macadamia nut crop insurance 

provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more agricultural commodities are 

planted in any form of alternating or 

mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

6. Insured Crop 

* * * * * 

(d) That are grown on trees that have 

reached at least the fifth leaf year, 

including the fifth leaf year after grafting 

if grafting occurs after set out, unless 

otherwise allowed by the Special 

Provisions; and 

* * * * * 

10. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing 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. 

* * * * * 

11. Settlement of Claim 

* * * * * 

(b) * * * 

(7) * * * 

For example: 

* * * * * 

■ 12. Amend § 457.132 by: 

■ a. In the introductory paragraph 

before section 1, remove the year 

‘‘1999’’ and add ‘‘2023’’ in its place and 

remove the sentence ‘‘If a conflict exists 

among the policy provisions, the order 

of priority is as follows: (1) The 

Catastrophic Risk Protection 

Endorsement, if applicable; (2) the 

Special Provisions; (3) these Crop 

Provisions; and (4) the Basic Provisions 

with (1) controlling (2), etc.’’; 

■ b. In section 2, remove the word 

‘‘serial’’; 

■ c. In section 3: 

■ i. Revise the section heading; and 

■ ii. In the undesignated introductory 

paragraph and paragraph (b), remove the 

parenthetical phrase ‘‘(Insurance 

Guarantees, Coverage Levels, and Prices 

for Determining Indemnities)’’; 

■ d. In section 4, remove the 

parenthetical phrase ‘‘(Contract 

Changes)’’; 

■ e. In section 5, remove the 

parenthetical phrase ‘‘(Life of Policy, 

Cancellation, and Termination)’’; 

■ f. In section 6: 

■ i. In the undesignated paragraph, 

remove the parenthetical phrase 

‘‘(Insured Crop)’’; and 

■ ii. Revise paragraph (d). 

■ g. In section 7, paragraphs (a) and (b), 

remove the parenthetical phrase 

‘‘(Insurance Period)’’; 

■ h. In section 8: 

■ i. In paragraph (a) remove the 

parenthetical phrase ‘‘(Causes of Loss)’’; 

and 

■ ii. In paragraph (b) remove the 

parenthetical phrase ‘‘(Cause of Loss)’’; 

and 

■ i. In the section 9 undesignated 

paragraph, remove the parenthetical 

phrase ‘‘(Duties in the Event of Damage 

or Loss)’’. 

The revisions read as follows: 

§ 457.132 Cranberry crop insurance 

provisions. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

6. Insured Crop 

* * * * * 

(d) That are grown on vines that have 

reached at least the fourth leaf year 

unless otherwise provided by the 

Special Provisions. 

* * * * * 

■ 13. Amend § 457.133 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2013’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; 

■ ii. Revise the definition of 

‘‘Interplanted’’; and 

■ iii. In the definition of ‘‘Standard 

prunes’’, revise paragraph (a); 

■ c. In section 2, remove the word 

‘‘serial’’; 

■ d. In section 3: 

■ i. Revise the section heading; and 

■ ii. In paragraph (a), remove the words 

‘‘Special Provisions’’ and add ‘‘actuarial 

documents’’ in their place; 

■ e. In section 6, remove the words 

‘‘growing season after being set out’’ and 

add ‘‘leaf year’’ in their place; 

■ f. In section 10, revise paragraph 

(b)(2); and 

■ g. In section 11, in paragraph (b), 

revise Example 1 and Example 2. 

The revisions and additions read as 

follows: 

§ 457.133 Prune Crop Insurance 

Provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

Standard prunes. * * * 

(a) That grade ‘‘C,’’ ‘‘U.S. Standard,’’ 

or better in accordance with the United 

States Standards for Grades of Dried 

Prunes; or 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

10. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) * * * 

(2) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing or is sold as fresh fruit 

production. If damage occurs after this 


jspears on DSK121TN23PROD with RULES1
Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 38895 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing or sold as 

fresh fruit 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. 

* * * * * 

11. Settlement of Claim 

* * * * * 

(b) * * * 

Example 1: 

You select 75 percent coverage level, 

100 percent of the price election, and 

have a 100 percent share in 50.0 acres 

of type A prunes in the unit. The 

approved yield is 2.5 tons per acre and 

your price election is $1,000 per ton. 

You harvest 10.0 tons. Your indemnity 

would be calculated as follows: 

(1) 50.0 acres × 2.5 tons × 0.75 = 

93.75-ton production guarantee; 

(2) 93.75-ton guarantee × $1,000 price 

election = $93,750 value of production 

guarantee; 

(4) 10.0 tons × $1,000 price election 

= $10,000 value of production to count; 

(6) $93,750 ¥ $10,000 = $83,750 loss; 

and 

(7) $83,750 × 1.000 share = $83,750 

indemnity payment. 

Example 2: 

In addition to the information in the 

first example, you have an additional 

50.0 acres of type B prunes with 100 

percent share in the same unit. The 

approved yield is 2.0 tons per acre and 

the price election is $900 per ton. You 

harvest 5.0 tons. Your total indemnity 

for both types A and B would be 

calculated as follows: 

(1) 50.0 acres × 2.5 tons × 0.75 = 

93.75-ton production guarantee for type 

A and 50.0 acres × 2.0 × 0.75 tons = 

75.0-ton production guarantee for type 

B; 

(2) 93.75-ton guarantee × $1,000 price 

election = $93,750 value of production 

guarantee for type A and 75.0-ton 

guarantee × $900 price election = 

$67,500 value production guarantee for 

type B; 

(3) $93,750 + $67,500 = $ 161,250 

total value of production guarantee; 

(4) 10.0 tons × $1,000 price election 

= $10,000 value of production to count 

for type A and 5.0 tons × $900 price 

election = $4,500 value of production to 

count for type B; 

(5) $10,000 + $4,500 = $14,500 total 

value of production to count; 

(6) $161,250 ¥ $14,500 = $146,750 

loss; and 

(7) $146,750 loss × 1.000 share = 

$146,750 indemnity payment. 

* * * * * 

■ 14. Amend § 457.135 by: 

■ a. Revise the undesignated 

introductory paragraph following the 

section heading; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. In the definition of ‘‘Production 

guarantee (per acre)’’, add introductory 

text; 

■ c. In section 2, revise the section 

heading; 

■ d. In section 3: 

■ i. Revise the section heading; and 

■ ii. In paragraph (a), remove the words 

‘‘Special Provisions provide’’ and add 

‘‘actuarial documents provide’’ in their 

place; 

■ e. In section 4, revise the section 

heading; 

■ f. In section 5: 

■ i. Revise the section heading; and 

■ ii. Revise the table; 

■ g. In section 6, revise the section 

heading; 

■ h. In section 9, in paragraph (a), 

remove the words ‘‘we agree in writing 

to insure’’ and add ‘‘a written agreement 

insures’’ in their place; 

■ i. In section 13, revise paragraph (b); 

and 

■ j. In section 14, in paragraph (b), 

revise the example. 

The revisions read as follows: 

§ 457.135 Onion crop insurance 

provisions. 

The Onion Crop Insurance Provisions 

for the 2023 and succeeding crop years 

are as follows: 

* * * * * 

1. Definitions 

* * * * * 

Production guarantee (per acre). In 

lieu of the definition contained in 

section 1 of the Basic Provisions, the 

production guarantee will be 

determined by stage as follows: 

* * * * * 

2. Unit Division 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

4. Contract Changes 

* * * * * 

5. Cancellation and Termination Dates 

* * * * * 

State & county Cancellation 

date 

Termination 

date 

Arizona; Georgia; Uvalde County, Texas, and all Texas Counties lying south thereof ................................... August 31 ......... August 31. 

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

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

All other states and counties ............................................................................................................................. February 1 ........ February 1. 

* * * * * 

6. Report of Acreage 

* * * * * 

13. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing will 

result in an appraised amount of 

production to count that is not less than 

the production guarantee per acre if 

such failure results in our inability to 

make the required appraisal. 

* * * * * 

14. Settlement of Claim 

* * * * * 

(b) * * * 

For Example: 

You have a 100 percent share in 100 

acres of a unit of transplanted storage 

onions with a production guarantee of 

200 hundredweight per acre, and you 

select 100 percent of the price election 


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of $20.00 per hundredweight. Your crop 

suffers a covered cause of loss on 25 

acres during the second stage which has 

a second stage production guarantee of 

60 percent of the final stage production 

guarantee which equals 120 

hundredweight per acre. The appraised 

production on the 25 acres was 2,500 

hundredweight of onion production. 

Your harvested onion production on the 

remaining 75 acres is 16,000 

hundredweight of harvested production 

to count. Your indemnity will be 

calculated as follows: 

(1) 25 acres × 120 hundredweight (200 

× .60) second stage production 

guarantee = 3,000 hundredweight, and 

75 acres × 200 hundredweight final 

stage production guarantee = 15,000 

hundredweight; 

(2) 3,000 hundredweight second stage 

production guarantee × $20.00 price 

election = $60,000 value of second stage 

production guarantee, and 15,000 

hundredweight final stage production 

guarantee × $20.00 price election = 

$300,000 value of final stage production 

guarantee; 

(3) $60,000 value of second stage 

production guarantee + $300,000 value 

of final stage production guarantee = 

$360,000 total value of production 

guarantee; 

(4) 500 hundredweight second stage 

production to count (from step 4 of the 

section 14(c)(1)(iv) example) × $20.00 

price election = $10,000 value of second 

stage production to count, and 16,000 

hundredweight final stage production to 

count × $20.00 price election = $320,000 

value of final stage production to count; 

(5) $10,000 value of second stage 

production to count + $320,000 value of 

final stage production to count = 

$330,000 total value of production to 

count; 

(6) $360,000 total value of production 

guarantee ¥ $330,000 total value of 

production to count = $30,000 value of 

loss; and 

(7) $30,000 × 100 percent share = 

$30,000 indemnity payment. 

* * * * * 

■ 15. Amend § 457.139 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2013’’ and 

add ‘‘2024’’ in its place; 

■ b. In section 1: 

■ i. In the definition of ‘‘Allowable 

cost’’, remove the words’’ ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place; and 

■ ii. Revise the definition of ‘‘Direct 

marketing’’; and 

■ iii. In the definition of ‘‘Minimum 

value’’, remove the words ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place; 

■ c. In section 7, remove the words 

‘‘Actuarial Table’’ and add ‘‘actuarial 

documents’’ in their place; 

■ d. In section 9, paragraph (b)(1), 

remove the colon behind the word 

‘‘remains’’; 

■ e. In section 14: 

■ i. In paragraph (c)(2)(i), remove the 

period after the word ‘‘Provisions’’ and 

add a semi-colon in its place; 

■ ii. In paragraphs (c)(3) and (4), remove 

the words ‘‘Special Provisions’’ and add 

‘‘actuarial documents’’ in their place 

each time they occur; and 

■ f. In section 16: 

■ i. Revise the section 16 header; and 

■ ii. In paragraphs (b)(1) and (2), remove 

the words ‘‘Special Provisions’’ and add 

‘‘actuarial documents’’ in their place 

each time they occur. 

The revisions read as follows: 

§ 457.139 Fresh Market Tomato Dollar Plan 

Crop Insurance Provisions. 

* * * * * 

1. Definitions 

* * * * * 

Direct marketing. In addition to the 

definition contained in section 1 of the 

Basic Provisions, the sale of the insured 

crop directly to consumers without the 

intervention of an intermediary 

including a registered handler. 

* * * * * 

16. Minimum Value Option 

* * * * * 

16. Amend § 457.148 by: 

a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘1999’’ and 

add ‘‘2024’’ in its place and remove the 

sentence ‘‘If a conflict exists among the 

policy provisions, the order of priority 

is as follows: (1) The Catastrophic Risk 

Protection Endorsement, if applicable; 

(2) the Special Provisions; (3) these Crop 

Provisions; and (4) the Basic Provisions 

with (1) controlling (2), etc.’’; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. In the definition of ‘‘Planted 

acreage’’ remove the words ‘‘the Basic 

Provisions’’ and add ‘‘section 1 of the 

Basic Provisions’’ in their place; 

■ c. Revise section 7; 

■ d. In section 14, in paragraphs (c)(2) 

and (3), remove the words ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place each time 

they occur; and 

■ e. In section 16, in paragraphs (b)(1)(i) 

and (ii), remove the words ‘‘Special 

Provisions’’ and add ‘‘actuarial 

documents’’ in their place each time 

they occur. 

The revisions read as follows: 

§ 457.148 Fresh Market Pepper Crop 

Insurance Provisions. 

* * * * * 

7. Annual Premium 

In lieu of the premium amount 

determinations contained in section 7 

(Annual Premium and Administrative 

Fees) of the Basic Provisions (§ 457.8), 

the annual premium amount for each 

cultural practice (for example, fall 

direct-seeded irrigated) is determined by 

multiplying the third stage amount of 

insurance per acre by the premium rate 

for the cultural practice as established 

in the actuarial documents, by the 

insured acreage, by your share at the 

time coverage begins, and by any 

applicable premium adjustment factors 

contained in the actuarial documents. 

* * * * * 

■ 17. Amend § 457.149 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2010’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Remove the definitions of 

‘‘Adapted’’ and ‘‘Direct marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. In section 2 paragraph (a)(2) and (b), 

remove the word ‘‘serial’’; 

■ d. In section 3, revise the section 

heading; 

■ e. In section 7: 

■ i. Revise paragraph (e); 

■ ii. Revise paragraph (f); and 

■ f. In section 11: 

■ i. Revise the section heading; and 

■ ii. Revise paragraph (b). 

The revisions read as follows: 

§ 457.149 Table grape crop insurance 

provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

7. Insured Crop 

* * * * * 

(e) That, after being set out or grafted, 

have reached the number of leaf years 

designated by the Special Provisions; 

and 

(f) That have produced an average of 

at least 150 lugs of table grapes per acre 

in at least one of the three crop years 


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immediately preceding the insured crop 

year, unless otherwise allowed by the 

Special Provisions. 

* * * * * 

11. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing 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. 

* * * * * 

■ 18. Amend § 457.153 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2013’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1, 

■ i. Remove the definition of ‘‘Direct 

marketing’’; 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. In section 2: 

■ i. Revise the section heading; and 

■ ii. In paragraph (b) remove the words 

‘‘as specified in the Special Provisions’’; 

■ d. In section 3: 

■ i. Revise the section heading; 

■ ii. Revise paragraph (b); 

■ iii. In paragraph (c)(3), remove the 

words ‘‘of trees’’ and add ‘‘of the trees’’ 

in their place; and 

■ iv. In paragraph (d)(3) remove 

‘‘12(c)(1)(ii)’’ and add ‘‘12(c)(1)(ii))’’ in 

its place; 

■ e. Revise the section 6 header; 

■ f. In section 7: 

■ i. In paragraph (d), add the word 

‘‘and’’ at the end; 

■ ii. Revise paragraph (e); 

■ iii. Remove paragraph (f); and 

■ g. In section 11, revise paragraph 

(b)(2). 

The revisions read as follows: 

§ 457.153 Peach Crop Insurance 

Provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

2. Unit Division 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

(b) You may select only one price 

election for all the peaches in the 

county insured under this policy unless 

the actuarial documents provide 

different price elections by fresh and 

processing peaches. If the actuarial 

documents provide different price 

elections, you may select a separate 

price election for all your fresh peaches 

and for all your processing peaches. If 

the actuarial documents do not provide 

different price elections, the price 

elections you choose for fresh peaches 

and processing peaches must have the 

same percentage relationship to the 

maximum price offered by us for fresh 

and processing peaches. For example, if 

you choose 100 percent of the maximum 

price election for fresh peaches, you 

must choose 100 percent of the 

maximum price election for processing 

peaches. 

* * * * * 

6. Report of Acreage 

* * * * * 

7. Insured Crop 

* * * * * 

(e) That are grown on trees that have 

reached at least the fourth leaf year, 

unless otherwise allowed by the Special 

Provisions. 

* * * * * 

11. Duties in the Event of Damage or 

Loss 

* * * * * 

(b) * * * 

(2) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested, unless 

you have records verifying that the 

direct market peaches were ‘‘weighed 

and graded’’ through a packing shed. 

Failure to give timely notice that 

production will be harvested for direct 

marketing will result in an appraised 

amount of production to count not less 

than the production guarantee per acre 

if such failure results in our inability to 

make the required appraisal. 

* * * * * 

■ 19. Amend § 457.159 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2011’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. In section 2, remove the word 

‘‘serial’’; 

■ d. In section 3: 

■ i. Revise the section heading; and 

■ ii. Add paragraph (d); 

■ e. Revise the section 5 heading; 

■ f. In section 6, revise paragraphs (b)(5) 

and (6); 

■ g. In section 10, revise paragraph (b); 

and 

■ h. In section 11, revise Scenario 1 and 

Scenario 2. 

The revisions read as follows: 

§ 457.159 Stonefruit crop insurance 

provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

(d) You may not increase your elected 

or assigned coverage level or the ratio of 

your price election to the maximum 

price election we offer if a cause of loss 

that could or would reduce the yield of 

the insured crop is evident prior to the 

time that you request the increase. 

* * * * * 

5. Cancellation and Termination Dates 

* * * * * 

6. Insured Crop 

* * * * * 

(b) * * * 

(5) Have produced at least 200 lugs of 

fresh market production per acre, or at 

least 2.2 tons per acre for processing 

crops, in at least one of the four most 

recent actual production history crop 

years, unless otherwise allowed by the 

Special Provisions; 

(6) Have reached at least the fifth leaf 

year, including the fifth leaf year after 

grafting if grafting occurs after set out, 

unless otherwise allowed by the Special 

Provisions; and 

* * * * * 

10. Duties in the Event of Damage or 

Loss 

* * * * * 


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(b) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. We will 

conduct an appraisal that will be used 

to determine your production to count 

for production that is sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals, and any 

acceptable records provided by you, 

will be used to determine your 

production to count. Failure to give 

timely notice that production will be 

harvested for direct marketing 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. 

* * * * * 

11. Settlement of Claim 

* * * * * 

Scenario 1: 

You select 75 percent coverage level 

and 100 percent of the price election on 

50.0 acres of Type A stonefruit with 100 

percent share in the unit. The approved 

yield is 500.0 lugs per acre and the price 

election is $6.00 per lug. You harvest 

5,000 lugs. Your indemnity would be 

calculated as follows: 

(1) 50.0 acres × 500.0 lugs × 0.75 = 

18,750-lug production guarantee; 

(2) 18,750 lugs × $6.00 price election 

× 100 percent of the price election = 

$112,500 value of production guarantee; 

(4) 5,000 harvested lugs × $6.00 price 

election × 100 percent of the price 

election = $30,000 value of production 

to count; 

(6) $112,500 ¥ $30,000 = $82,500 

loss; and 

(7) $82,500 × 1.000 share = $82,500 

indemnity payment. 

Scenario 2: 

In addition to the above information 

in Scenario 1, you have an additional 

50.0 acres of Type B stonefruit with 100 

percent share in the unit. The approved 

yield is 300.0 lugs per acre and the price 

election is $4.00 per lug. You harvest 

3,000 lugs. Your indemnity would be 

calculated as follows: 

(1) 50.0 acres × 500.0 lugs × 0.75 Type 

A = 18,750-lug guarantee; and 50.0 acres 

× 300.0 lugs × 0.75 Type B = 11,250-lug 

guarantee; 

(2) 18,750 lugs × $6.00 price election 

× 100 percent of the price election = 

$112,500 value of guarantee for Type A; 

and 11,250 lugs × $4.00 price election 

× 100 percent of the price election = 

$45,000 value of guarantee for Type B; 

(3) $112,500 + $45,000 = $157,500 

total value of production guarantee; 

(4) 5,000 harvested lugs Type A × 

$6.00 price election × 100 percent of the 

price election = $30,000 value of 

production to count; and 3,000 

harvested lugs Type B × $4.00 price 

election × 100 percent of the price 

election = $12,000 value of production 

to count; 

(5) $30,000 + $12,000 = $42,000 total 

value of production to count; 

(6) $157,500 ¥ $42,000 = $115,500 

total loss; and 

(7) $115,500 loss × 1.000 share = 

$115,500 indemnity payment. 

* * * * * 

■ 20. Amend § 457.166 by: 

■ a. In the undesignated introductory 

paragraph after the section heading, 

remove the year ‘‘2005’’ and add ‘‘2023’’ 

in its place and remove the sentence ‘‘If 

a conflict exists among the policy 

provisions, the order of priority is as 

follows: (1) The Catastrophic Risk 

Protection Endorsement, if applicable; 

(2) the Special Provisions; (3) these Crop 

Provisions; and (4) the Basic Provisions 

with (1) controlling (2), etc.’’; 

■ b. In section 1, remove the definition 

of ‘‘Direct marketing’’; 

■ c. Revise the section 3 heading; 

■ d. In section 6, in paragraph (a)(2)(i), 

remove the word ‘‘became’’ and add 

‘‘become’’ in its place; 

■ e. In section 9, revise paragraph (a)(3); 

and 

■ f. In section 10, in paragraph (b), 

revise the Example. 

The revisions read as follows: 

§ 457.166 Blueberry crop insurance 

provisions. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

9. Duties in the Event of Damage or Loss 

* * * * * 

(a) * * * 

(3) At least 15 calendar days before 

any production will be harvested if any 

portion of your crop will be direct 

marketed. We will conduct an appraisal 

that will be used to determine your 

production to count sold by direct 

marketing. If damage occurs after this 

appraisal, we will conduct an additional 

appraisal. These appraisals and 

acceptable records provided by you will 

be used to determine your production to 

count. Failure to give timely notice that 

production will be harvested for direct 

marketing will result in an appraised 

amount of production to count that is 

not less than the production guarantee 

per acre if such failure results in our 

inability to make the required appraisal. 

* * * * * 

10. Settlement of Claim 

* * * * * 

(b) * * * 

Example for Section 10(b) 

You have 100 percent share in 25 

acres of highbush blueberries with a 

production guarantee of 4,000 pounds 

per acre and a price election of $.90 per 

pound. You are only able to harvest 

62,500 total pounds because adverse 

weather reduced the yield. Your 

indemnity would be calculated as 

follows: 

A. 25 acres × 4,000 pound production 

guarantee/acre = 100,000 pound total 

production guarantee; 

B. 100,000 pounds × $.90 price 

election = $90,000 guarantee; 

C. One type only, so same as (2) 

above, $90,000; 

D. 62,500 pounds production to count 

× $.90 price election = $56,250 value of 

production to count; 

E. One type only, so same as (4) 

above, $56,250; 

F. $90,000 ¥ $56,250 = $33,750 loss; 

and 

G. $33,750 × 100 percent share = 

$33,750 indemnity payment. 

End of Example. 

* * * * * 

■ 21. Amend § 457.167 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2014’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Revise the definition of ‘‘Direct 

marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. Revise the section 2 heading; 

■ d. Revise the section 3 heading; 

■ e. In section 8: 

■ i. In paragraph (d), remove the words 

‘‘we inspect and allow insurance’’ and 

add ‘‘otherwise allowed’’ in their place; 

■ ii. In paragraph (f), remove the words 

‘‘allowed by written agreement’’ and 

add ‘‘otherwise allowed by the Special 

Provisions’’ in their place; and 

■ iii. In paragraph (g), add ‘‘otherwise’’ 

after the word ‘‘unless’’; 

■ f. In section 10, revise the paragraph 

(a)(1); 

■ g. In section 12(b), remove the words 

‘‘will be sold by’’ and add ‘‘will be 

harvested for’’ in their place each time 

they occur; and 

■ h. In section 16, remove the words 

‘‘Not withstanding’’ and add 

‘‘Notwithstanding’’ in its place. 

The revisions read as follows: 

§ 457.167 Pecan revenue crop insurance 

provisions. 

* * * * * 

1. Definitions 

* * * * * 


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Direct marketing. In addition to the 

definition contained in section 1 of the 

Basic Provisions, the sale of the insured 

crop directly to consumers without the 

intervention of an intermediary 

including a sheller. An additional 

example of direct marketing includes 

shelling and packing your own pecans. 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage on which two or 

more crops are planted in any form of 

alternating or mixed pattern. 

* * * * * 

2. Unit Division 

* * * * * 

3. Insurance Guarantees and Coverage 

Levels 

* * * * * 

10. Insurance Period 

(a) * * * 

(1) Coverage begins on February 1 of 

each crop year. However, for the year of 

application, we will inspect all pecan 

acreage and will notify you if your 

application was accepted or not 

accepted, no later than 30 days after the 

sales closing date. If we fail to notify 

you by that date, your application will 

be accepted unless other grounds exist 

to not accept the application, as 

specified in section 2 of the Basic 

Provisions. You must provide any 

information that we require for the crop 

or to determine the condition of the 

orchard. 

* * * * * 

■ 22. Amend § 457.171 by: 

■ a. Revise the undesignated 

introductory paragraph following the 

section heading; 

■ b. In section 1, remove the definition 

of ‘‘Direct marketing’’; 

■ c. In section 3: 

■ i. Revise the section heading; and 

■ ii. In paragraph (a), remove the words 

‘‘Special Provisions’’ and add ‘‘actuarial 

documents’’ in their place each time 

they appear; 

■ d. In section 4: 

■ i. Revise paragraph (a); 

■ ii. Revise paragraph (b); and 

■ iii. In paragraph (c), remove the words 

‘‘Special Provisions’’ and add ‘‘actuarial 

documents’’ in their place; 

■ e. In section 5 revise the table; 

■ f. In section 9: 

■ i. In paragraph (b)(2)(iii) remove the 

words ‘‘Brooks, Colquitt, Tift, Toombs 

Counties,’’ 

■ ii. Revise paragraphs (b)(2)(iv) and (v); 

■ iii. Revise paragraph (b)(2)(vii); 

■ iv. Add the word ‘‘and’’ after the semicolon in paragraph (b)(2)(ix)(A); 

■ v. Remove paragraph (b)(2)(ix)(B); 

■ vi. Redesignate paragraph (b)(2)(ix)(C) 

as paragraph (b)(2)(ix)(B); and 

■ g. Revise the section 12 heading. 

The revisions read as follows: 

§ 457.171 Cabbage Crop Insurance 

Provisions. 

The Cabbage Crop Insurance 

Provisions for the 2023 and succeeding 

crop years in counties with a contract 

change date of November 30, and for the 

2024 and succeeding crop years in 

counties with a contract change date of 

April 30, 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. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

4. Contract Changes 

* * * * * 

(a) April 30 in Florida; Georgia; and 

Texas; 

(b) November 30 in Alaska; Michigan; 

New Jersey, New York; North Carolina; 

Ohio; Oregon; Pennsylvania; Virginia; 

Washington; and Wisconsin; or 

* * * * * 

5. Cancellation and Termination Dates 

* * * * * 

State and counties Cancellation and termination dates 

Georgia, Texas ................................................................................................................ July 1. 

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

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

North Carolina .................................................................................................................. February 28. 

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

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

* * * * * 

9. Insurance Period 

* * * * * 

(b) * * * 

(2) * * * 

(iv) Michigan, New Jersey, and Ohio: 

(A) September 30 for the spring 

planting period; and 

(B) November 25 for the summer 

planting period; 

(v) New York and Pennsylvania: 

November 25; 

* * * * * 

(vii) Oregon: 

(A) March 1 for all fall Red (Fresh) 

and Green (Fresh) types; and 

(B) December 31 for all other types 

and planting periods; 

* * * * * 

12. Duties in the Event of Damage or 

Loss 

* * * * * 

■ 23. Amend § 457.173 by: 

■ a. In the undesignated introductory 

paragraph following the section 

heading, remove the year ‘‘2011’’ and 

add ‘‘2023’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. In the definition of ‘‘Type’’, remove 

the words ‘‘Either early varieties or’’ and 

add ‘‘Early varieties, mid varieties, or’’ 

in their place; 

■ c. In section 2, remove the word 

‘‘serial’’; 

■ d. In section 3: 

■ i. Revise the section heading; 

■ ii. In paragraph (a)(3)(i), remove the 

words ‘‘varieties of’’ and add ‘‘varieties 

and mid varieties of’’ in their place; and 

■ iii. In paragraph (b), remove the words 

‘‘Special Provisions’’ and add ‘‘actuarial 

documents’’ in their place each time 

they appear; 

■ e. In section 6, paragraph (b)(1), 

remove the words ‘‘growing season after 

set out’’ and add ‘‘leaf year’’ in their 

place; and 

■ f. In section 10: 

■ i. Revise paragraph (a) introductory 

text; and 

■ ii. In paragraph (a)(2), remove the 

words ‘‘sold by’’ and add ‘‘harvested 

for’’ in their place. 

The revisions read as follows: 


jspears on DSK121TN23PROD with RULES1
38900 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Rules and Regulations 

§ 457.173 Florida Avocado crop insurance 

provisions. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices. 

* * * * * 

10. Duties in the Event of Damage or 

Loss. 

In addition to the requirements of 

section 14 of the Basic Provisions, the 

following will apply: 

(a) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. 

* * * * * 

■ 24. Amend § 457.175 by: 

■ a. In the undesignated introductory 

paragraph, remove the year ‘‘2020’’ and 

add ‘‘2024’’ in its place; 

■ b. In section 1: 

■ i. Remove the definition of ‘‘Direct 

marketing’’; and 

■ ii. Revise the definition of 

‘‘Interplanted’’; 

■ c. Revise the section 3 heading; 

■ d. In section 6, in paragraph (b), 

remove the words ‘‘growing season after 

set out’’ and add ‘‘leaf year’’ in their 

place; 

■ e. In section 10, paragraph (a), revise 

the first sentence; and 

■ f. In section 11, paragraph(b)(3), 

remove ‘‘11(c)’’ and add ‘‘11(c))’’ in its 

place. 

The revisions read as follows: 

§ 457.175 California avocado crop 

insurance provisions. 

* * * * * 

1. Definitions 

* * * * * 

Interplanted. In lieu of the definition 

contained in section 1 of the Basic 

Provisions, acreage in which two or 

more crops are planted in any form of 

an alternating or mixed pattern. 

* * * * * 

3. Insurance Guarantees, Coverage 

Levels, and Prices 

* * * * * 

10. Duties in the Event of Damage or 

Loss 

* * * * * 

(a) If any portion of your crop will be 

direct marketed, you must notify us at 

least 15 calendar days before any 

production will be harvested. * * * 

* * * * * 

Marcia Bunger, 

Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. 2022–13411 Filed 6–29–22; 8:45 am] 

BILLING CODE 3410–08–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 120 and 123 

RIN 3245–AG98 

Regulatory Reform Initiative: 

Streamlining and Modernizing the 7(a), 

Microloan, and 504 Loan Programs To 

Reduce Unnecessary Regulatory 

Burden 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: This final rule removes or 

revises various regulations governing 

the agency’s business loan programs 

that are obsolete, unnecessary, 

ineffective, or burdensome. This final 

rule also makes several technical 

amendments to incorporate recent 

statutory changes and other nonsubstantive changes. In addition, 

because this final rule removes a 

regulation that is cross-referenced in a 

regulation in SBA’s Disaster Loan 

Program, this rule makes one 

conforming change to the regulation in 

the Disaster Loan Program. 

DATES: The effective date of this final 

rule will be August 1, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Linda Reilly, Chief, 504 Loan Program 

Division, Office of Financial Assistance, 

U.S. Small Business Administration, 

409 Third Street SW, Washington, DC 

20416; phone: (202) 604–5032; email 

address: linda.reilly@sba.gov. The 

phone number above may also be 

reached by individuals who are deaf or 

hard of hearing, or who have speech 

disabilities, through the Federal 

Communications Commission’s TTYBased Telecommunications Relay 

Service teletype service at 711. 

SUPPLEMENTARY INFORMATION: 

A. General Information 

As part of its ongoing responsibility to 

ensure that the rules it issues do not 

have an adverse economic impact on 

those affected by those rules, the U.S. 

Small Business Administration (SBA) 

published a proposed rule in the 

Federal Register on December 14, 2020 

(85 FR 80676) to remove or revise 

various regulations in part 120 of title 

13 of the Code of Federal Regulations 

that are obsolete, unnecessary, 

ineffective, or burdensome. The rule 

also proposed to make several technical 

amendments to regulations in part 120 

to incorporate recent statutory changes 

and other non-substantive changes. In 

addition, because the rule proposed to 

remove a regulation that is crossreferenced in a regulation in part 123 on 

SBA’s Disaster Loan Program, the rule 

proposed to make one conforming 

change to that regulation. The comment 

period was open until February 12, 

2021. 

In response to the request for 

comments, SBA received 2,901 

comments of which 234 were 

duplicative. Of the unique 2,667 

comments received, 1 was from a 

national trade association, 4 were from 

government entities, 14 were from 

advocacy groups, 5 were from private 

industries, and 2,643 were from 

individuals. Over 99% of the comments 

received, 2,651, were in response to the 

proposed removal of 120.110(k) from 

the regulations. This provision currently 

provides that businesses principally 

engaged in teaching, instructing, 

counseling or indoctrinating religion or 

religious beliefs are ineligible for SBA 

financial assistance; all but one of the 

comments received expressed 

opposition to its removal. The 

comments received on this issue and the 

other comments received are 

summarized and addressed below in the 

section-by-section analysis. 

F. Section-by-Section Analysis 

Section 120.2. SBA proposed to 

remove paragraphs (a)(1)(i) and (ii) of 

this section because SBA has not 

received funding to make direct or 

immediate participation 7(a) loans for 

over 30 years, explaining that it may be 

confusing to the public to refer to such 

loans when they are not available from 

the agency. No comments were received 

on this proposed change. However, SBA 

has decided not to move forward with 

the removal of these provisions at this 

time in order to retain the option for 

these programs should budget authority 

for direct lending or immediate 

participation programs become 

available. 

Section 120.10. SBA proposed to 

remove the references to non-lending 

technical assistance providers (NTAPs) 

in the definition of ‘‘Risk Rating’’ 

because SBA has not issued grant funds 

to NTAPs for many years. No comments 

were received on this proposed change 

and SBA is adopting the change as 

proposed. 

Section 120.103. SBA proposed to 

remove this section on farm enterprises, 

which refers to an outdated 

Memorandum of Understanding 

between SBA and the United States 

Department of Agriculture (USDA), 

because it is unnecessary. Although 

Federal financial assistance to 

agricultural businesses is generally 

available from USDA, SBA is also 

statutorily authorized to make nondisaster business loans to agricultural 


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