80 FR 48003 - Common Crop Insurance Regulations; Macadamia Tree Crop Insurance Provisions Correcting Amendment

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 80, Issue 154 (August 11, 2015)

This document contains necessary amendments for addressing potential ambiguities in the final regulation for Macadamia Tree Crop Insurance Provisions, which was published on April 16, 2015 (80 FR 20407-20413).

[Federal Register Volume 80, Number 154 (Tuesday, August 11, 2015)]
[Rules and Regulations]
[Pages 48003-48004]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19465]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC-14-0004]
RIN 0563-AC44


Common Crop Insurance Regulations; Macadamia Tree Crop Insurance 
Provisions Correcting Amendment

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule; correcting amendment.

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SUMMARY: This document contains necessary amendments for addressing 
potential ambiguities in the final regulation for Macadamia Tree Crop 
Insurance Provisions, which was published on April 16, 2015 (80 FR 
20407-20413).

DATES: This rule is effective August 11, 2015.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Administration and Standards Division,

[[Page 48004]]

Risk Management Agency, United States Department of Agriculture, Beacon 
Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141-
6205, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION: 

Background

    The final regulation subject to this amendment revised the Common 
Crop Insurance Regulations, Macadamia Tree Crop Insurance Provisions. 
The final regulation was published April 16, 2015 (80 FR 20407-20413).

Need for Amendment

    As published, language in the final regulation for Macadamia Tree 
Crop Insurance Provisions may require clarification to ensure proper 
application of the policy provisions. Sections 11(b)(3)(ii)(A) and (B) 
of the Macadamia Tree Crop Insurance Provisions may lack information or 
explanation needed to properly calculate an indemnity. Section 
11(b)(3)(ii)(A) has been clarified to note that the result in this 
provision must also be multiplied by 100 to clearly represent the 
percentage of destroyed trees. Section 11(b)(3)(ii)(B) states the loss 
adjuster must take the number of damaged trees and divide by the total 
number of trees to calculate the percent of damage. However, the loss 
adjuster must also determine the percent of damage for each damaged 
tree within the overall loss calculation formula, when at least some 
damage (rather than solely complete destruction) is at issue. As a 
result, a description of specific additional steps is necessary under 
section 11(b)(3)(ii)(B) to clarify this issue.
    In addition, section 11(c)(1) of the Macadamia Tree Crop Insurance 
Provisions was revised to change the provision from '' . . . over 80 
percent actual damage due to an insured cause of loss will be 
considered to be 100 percent damaged'' to '' . . . over 80 percent of 
the actual trees damaged or destroyed due to an insured cause of loss 
will be considered to be 100 percent damaged . . . '' This change may 
have appeared to require the loss adjuster to determine whether the 
orchard was damaged more than 80 percent solely by counting the number 
of trees damaged or destroyed, without calculating the actual damage to 
individual trees. That application was not FCIC's intent. It is FCIC's 
intent that actual damage to each individual tree, in addition to the 
total number and percentage of actual damaged trees, are both used 
among other factors (such as destroyed trees when applicable) to 
determine whether the orchard is damaged more than 80 percent.

List of Subjects in 7 CFR Part 457

    Crop insurance, Macadamia tree, Reporting and recordkeeping 
requirements, Amendment of publication.
    Accordingly, 7 CFR part 457 is amended by making the following 
correcting amendments:

PART 457--COMMON CROP INSURANCE REGULATIONS

0
1. The authority citation for 7 CFR part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(1) and 1506(o).


0
2. In Sec.  457.130, under the heading 11. Settlement of Claim, revise 
paragraphs (b)(3)(ii)(A) and (B) paragraph (c) to read as follows:


Sec.  457.130  Macadamia tree crop insurance provisions.

* * * * *
11. Settlement of Claim
* * * * *
    (b) * * *
    (3) * * *
    (ii) * * *
    (A) For destroyed trees, divide the number of trees destroyed by 
the total number of trees and multiply by 100 to calculate the percent 
of loss;
    (B) For damaged trees:
    (1) Divide the number of trees damaged by the total number of trees 
(both damaged and undamaged) to calculate the amount of damage;
    (2) Divide the number of damaged scaffold limbs by the total number 
of scaffold limbs on each damaged tree to calculate the amount of 
damage for each damaged tree;
    (3) Total the results in (b)(3)(ii)(B)(2);
    (4) Divide the result of (b)(3)(ii)(B)(3) by the number of damaged 
trees;
    (5) Multiply the result of (b)(3)(ii)(B)(1) by the result of 
(b)(3)(ii)(B)(4), then multiply that result by 100 to calculate the 
percent of loss; and
* * * * *
    (c) * * *
    (1) Any orchard with damage, destruction, or combined damage and 
destruction, that results in a total percent of loss greater than 80 
percent due to an insured cause of loss will be considered to be 100 
percent damaged and/or destroyed; and
* * * * *

    Signed in Washington, DC, on July 31, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-19465 Filed 8-10-15; 8:45 am]
 BILLING CODE 3410-08-P