81_FR_1344 81 FR 1337 - Common Crop Insurance Regulations; Texas Citrus Fruit Crop Insurance Provisions

81 FR 1337 - Common Crop Insurance Regulations; Texas Citrus Fruit Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 81, Issue 7 (January 12, 2016)

Page Range1337-1345
FR Document2015-32951

The Federal Crop Insurance Corporation (FCIC) proposes to amend the Common Crop Insurance Regulations, Texas Citrus Fruit Crop Insurance Provisions. The intended effect of this action is to provide policy changes to better meet the needs of policyholders, to clarify existing policy provisions, and to reduce vulnerability to program fraud, waste, and abuse. Specifically, this proposed rule intends to modify or clarify certain definitions, clarify unit establishment, clarify substantive provisions for consistency with terminology changes, modify the insured causes of loss, clarify required timing for loss notices, modify portions of loss calculation formulas, and address potential misinterpretations or ambiguity related to these issues. The proposed changes will be effective for the 2018 and succeeding crop years.

Federal Register, Volume 81 Issue 7 (Tuesday, January 12, 2016)
[Federal Register Volume 81, Number 7 (Tuesday, January 12, 2016)]
[Proposed Rules]
[Pages 1337-1345]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32951]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR part 457

[Docket No. FCIC-15-0002]
RIN 0563-AC48


Common Crop Insurance Regulations; Texas Citrus Fruit Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations, Texas Citrus Fruit Crop 
Insurance Provisions. The intended effect of this action is to provide 
policy changes to better meet the needs of policyholders, to clarify 
existing policy provisions, and to reduce vulnerability to program 
fraud, waste, and abuse. Specifically, this proposed rule intends to 
modify or clarify certain definitions, clarify unit establishment, 
clarify substantive provisions for consistency with terminology 
changes, modify the insured causes of loss, clarify required timing for 
loss notices, modify portions of loss calculation formulas, and address 
potential misinterpretations or ambiguity related to these issues. The 
proposed changes will be effective for the 2018 and succeeding crop 
years.

DATES: FCIC will accept written comments on this proposed rule until 
close of business March 14, 2016. FCIC will consider these comments 
when FCIC finalizes this rule.

ADDRESSES: FCIC prefers that interested persons submit comments 
electronically through the Federal eRulemaking Portal. Interested 
persons may submit comments, identified by Docket ID No. FCIC-15-0002, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
    All comments received, including those received by mail, will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. Once these comments are posted to this 
Web site, the public can access all comments at its convenience from 
this Web site. All comments must include the agency name and docket 
number or Regulatory Information Number (RIN) for this rule. For 
detailed instructions on submitting comments and additional 
information, see http://www.regulations.gov. If interested persons are 
submitting comments electronically through the Federal eRulemaking 
Portal and want to attach a document, FCIC requests use of a text-based 
format. If interested persons wish to attach a document that is a 
scanned Adobe PDF file, it must be scanned as text and not as an image, 
thus allowing FCIC to search and copy certain portions of the 
submissions. For questions regarding attaching a document that is a 
scanned Adobe PDF file, please contact the RMA Web Content Team at 
(816) 823-4694 or by email at [email protected].
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person submitting 
the comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). Interested persons may 
review the complete User Notice and Privacy Notice for Regulations.gov 
at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Administration and Standards Division, Risk Management Agency, United 
States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, 
P.O. Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not-significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the OMB.

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35, subchapter I), the collections of information in 
this rule have been approved by OMB under control number 0563-0053.

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act of 2002, 
to promote the use of the Internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the UMRA) for State, local, and 
tribal governments or the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this regulation will not have 
substantial and direct effects on Tribal governments and will not have 
significant Tribal implications.

Regulatory Flexibility Act

    FCIC certifies that this regulation will not have a significant 
economic impact

[[Page 1338]]

on a substantial number of small entities. Program requirements for the 
Federal crop insurance program are the same for all producers 
regardless of the size of their farming operation. For instance, all 
producers are required to submit an application and acreage report to 
establish their insurance guarantees and compute premium amounts, and 
all producers are required to submit a notice of loss and production 
information to determine the amount of an indemnity payment in the 
event of an insured cause of crop loss. Whether a producer has 10 acres 
or 1000 acres, there is no difference in the kind of information 
collected. To ensure crop insurance is available to small entities, the 
Federal Crop Insurance Act authorizes FCIC to waive collection of 
administrative fees from limited resource farmers. FCIC believes this 
waiver helps to ensure that small entities are given the same 
opportunities as large entities to manage their risks through the use 
of crop insurance. A Regulatory Flexibility Analysis has not been 
prepared since this regulation does not have a significant impact on a 
substantial number of small entities, and, therefore, this regulation 
is exempt from the provisions of the Regulatory Flexibility Act (5 
U.S.C. Sec.  605).

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See 2 CFR part 415, subpart C.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. With respect to any direct action taken by FCIC 
or action by FCIC directing the insurance provider to take specific 
action under the terms of the crop insurance policy, the administrative 
appeal provisions published at 7 CFR part 11 must be exhausted before 
any action against FCIC for judicial review may be brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by revising 7 CFR 457.119 Texas Citrus Fruit Crop Insurance 
Provisions, to be effective for the 2018 and succeeding crop years. 
Changes are intended to improve the insurance coverage offered, address 
program integrity issues, simplify program administration, and improve 
clarity of the policy provisions. Specifically, this proposed rule 
intends to modify or clarify certain definitions, clarify unit 
establishment, clarify substantive provisions for consistency with 
terminology changes, modify the insured causes of loss, clarify 
required timing for loss notices, modify portions of loss calculation 
formulas, and address potential misinterpretations or ambiguity related 
to these issues.
    Some of the proposed changes result from the United States 
Department of Agriculture (USDA) Acreage Crop Reporting Streamlining 
Initiative (ACRSI), which has an objective of using common standardized 
data and terminology to consolidate and simplify reporting requirements 
for producers. Specifically, ACRSI is an initiative to reengineer the 
procedures, processes, and standards to simplify commodity, acreage, 
and production reporting by producers, eliminate or minimize 
duplication of information collection by multiple agencies, and reduce 
the burden on producers, allowing the producers to report this 
information through FSA county office service centers, insurance agents 
or through precision agriculture technology capabilities. USDA has made 
a concerted effort to standardize terms across USDA agencies as much as 
possible to allow the sharing of data, thereby reducing the burden on 
producers in reporting their information. Many of the changes proposed 
in this rule are a part of that effort. For example, as part of ACRSI, 
FCIC is proposing to change the term ``crop'' to ``citrus fruit 
commodity'' and to rename the ``citrus fruit commodities'' to be 
consistent with the crop names used by other USDA agencies. FCIC has 
been working with other USDA agencies to agree on appropriate 
terminology for crop reporting. These terms are part of a Commodity 
Validation Table that is updated as these terms are agreed upon. This 
change will help facilitate information sharing among agencies, a step 
that is necessary to achieve an ACRSI goal of relieving producers of 
the burden of reporting the same information multiple times to 
different USDA agencies. The addition of the term ``citrus fruit 
group'' is intended to negate the impact of changes to ``citrus fruit 
commodity'' names on coverage levels, unit structure, and 
administrative fees. The ``citrus fruit groups'' for each ``citrus 
fruit commodity'' will be listed in the Special Provisions. The 
``citrus fruit groups'' will be the basis for determining coverage 
levels and identifying the insured crop. These proposed changes are not 
expected to change the current basis by which coverage levels are 
selected, basic units are established, and administrative fees are 
assessed.
    For consistency with ACRSI objectives, FCIC proposes to expand the 
category of ``type'' in the actuarial documents to include four 
subcategories named ``commodity type,'' ``class,'' ``subclass,'' and 
``intended use.'' FCIC is also planning to expand the category of 
``practice'' in the actuarial documents to include four subcategories 
named ``cropping practice,'' ``organic practice,'' ``irrigation 
practice,'' and ``interval.'' Proposed changes to the Texas Citrus 
Fruit Crop Insurance Provisions, such as replacing references to the 
term ``type'' with the term ``commodity type'' will provide a method 
for this transition.
    The proposed changes are as follows:
    1. FCIC proposes to remove the paragraph immediately preceding 
section 1, which refers to the order of priority if a conflict exists 
among the policy provisions. This same provision is contained in the 
Basic Provisions. Therefore, the appearance here is duplicative and 
should be removed from the Texas Citrus Fruit Crop Insurance 
Provisions.
    FCIC proposes to remove all references to section titles of the 
Basic Provisions used in the Texas Citrus Fruit Crop Insurance 
Provisions, while retaining the section numbers. The section titles are 
not necessary to reference the section and removing these titles will 
prevent FCIC from having to revise the Crop Provisions should these 
section titles change in the Basic Provisions. This information 
proposed to be removed is currently contained in parenthesis following 
references to section numbers of the Basic Provisions throughout the 
Texas Citrus Fruit Crop Insurance Provisions.
    2. Section 1 (``Definitions'')--FCIC proposes to remove the 
definition of ``crop'' and replace it with a definition of ``citrus 
fruit commodity'' because the actuarial documents refer to commodities 
rather than crops. FCIC proposes to replace the term ``crop''

[[Page 1339]]

with the term ``insured crop'' where appropriate throughout the Crop 
Provisions. The insured crop will be based on the ``citrus fruit 
group'' in accordance with the proposed revisions to section 7. FCIC 
proposes to include the ``citrus fruit commodity'' names in the 
definition to enable the insured to more easily determine the citrus 
fruit commodities that are insurable under the Texas Citrus Fruit Crop 
Insurance Provisions. The new ``citrus fruit commodity'' names will 
combine several current ``crops'' into a single ``citrus fruit 
commodity.'' For example, the current crops ``Early & Midseason 
Oranges'' and ``Late Oranges'' will become insurable types under the 
new ``citrus fruit commodity'' of ``oranges.'' FCIC proposes this 
change because of ACRSI. FCIC has been working with other USDA agencies 
to agree on appropriate terminology for crop reporting. These terms are 
part of a Commodity Validation Table that is updated as these terms are 
agreed upon. This proposed change in terminology does not change the 
varieties of citrus that are insurable.
    FCIC proposes to add the definition of ``citrus fruit group.'' The 
term ``citrus fruit group'' refers to a method of grouping combinations 
of commodity types and intended uses within the citrus fruit commodity 
through the Special Provisions for the purposes of electing coverage 
levels and determining the insured crop, which is the basis for 
establishing basic units, guarantees, and assessing administrative 
fees. FCIC proposes this change because of ACRSI. Because producers 
will be reporting using the terminology contained in the Commodity 
Validation Table, FCIC has changed the commodity names to match this 
agreed upon terminology. However, the citrus fruit group concept is 
being implemented to prevent changes to how the crop can be insured. 
For example, this change will allow producers who report Valencia 
oranges with an intended use of juice and Navel oranges with an 
intended use of fresh to continue to insure these as separate crops 
even though they will both be categorized for reporting under the 
commodity of oranges.
    FCIC proposes to add the definition of ``commodity type'' because 
this is a new category that will be added to the actuarial documents 
for citrus fruit commodities for the 2018 crop year. Commodity type 
will initially be displayed in the actuarial documents as a subcategory 
of type. The expected combinations of commodity types and intended uses 
will be grouped into citrus fruit groups as shown in the table below.

----------------------------------------------------------------------------------------------------------------
        Citrus fruit commodity              Commodity type            Intended use          Citrus fruit group
----------------------------------------------------------------------------------------------------------------
Grapefruit...........................  Rio Red & Star Ruby....  Fresh..................  A.
Grapefruit...........................  Rio Red & Star Ruby....  Juice..................  A.
Grapefruit...........................  Ruby Red...............  Fresh..................  B.
Grapefruit...........................  Ruby Red...............  Juice..................  B.
Grapefruit...........................  All Other..............  Fresh..................  C.
Grapefruit...........................  All Other..............  Juice..................  C.
Oranges..............................  Early & Midseason......  Fresh..................  D.
Oranges..............................  Early & Midseason......  Juice..................  D.
Oranges..............................  Late...................  Fresh..................  E.
Oranges..............................  Late...................  Juice..................  E.
----------------------------------------------------------------------------------------------------------------

    FCIC proposes to revise the definition of ``excess wind'' by: 
Specifying the equivalent wind speed in knots; clarifying wind speed 
reporting at U.S. National Weather Service (NWS) reporting stations; 
and adding a clause to allow additional acceptable wind reporting 
stations to be identified in the Special Provisions. FCIC proposes 
these changes to provide clarity and add flexibility to use other 
weather reporting stations if additional data points are needed in the 
future.
    FCIC proposes to add a definition of ``intended use.'' Currently, 
insureds can select between the two types of fresh and juice. For the 
2018 crop year, the type category in the actuarial documents will be 
expanded to include subcategories for ``commodity type,'' ``class,'' 
``subclass,'' and ``intended use.'' Insureds will continue to be able 
to select types for fresh and juice, but the intended use will be 
specified in both the type category and the new intended use category. 
This change only affects how they types are presented in the actuarial 
documents and will not affect available coverage or reporting 
requirements. The proposed definition is consistent with the definition 
contained in the Florida Citrus Fruit Crop Insurance Provisions.
    FCIC proposes to revise the definition of ``interplanted'' to 
specify that the Crop Provisions definition is used in lieu of the 
Basic Provisions definition. In the revised definition, FCIC proposes 
to change the term ``crop'' to ``agricultural commodity.'' Agricultural 
commodity is currently defined in the Basic Provisions as any crop or 
other commodity produced, regardless of whether or not it is insurable. 
As stated previously, FCIC is changing the term ``crop'' to ``insured 
crop'' as appropriate throughout the Crop Provisions. However, for the 
definition of interplanted acreage, changing ``crop'' to ``insured 
crop'' would change the meaning of the provision by preventing 
interplanted from applying to insurable crops interplanted with 
agricultural commodities not insured under the Texas Citrus Fruit Crop 
Provisions. Therefore, FCIC proposes to change the term ``crop'' to 
``agricultural commodity'' in the definition of interplanted acreage. 
This proposed change will allow ``interplanted'' to apply to acreage in 
which an insured crop is interplanted with another insured crop or 
uninsured agricultural commodity, regardless of whether or not the 
additional insured crop or uninsured agricultural commodity is 
insurable under the Texas Citrus Fruit Crop Insurance Provisions or any 
other Crop Provisions.
    FCIC proposes to remove the definition of ``local market price.'' 
FCIC proposes to remove this definition because FCIC proposes to remove 
the only reference to local market price in the Texas Citrus Fruit Crop 
Provisions, contained in paragraph 12(e).
    FCIC proposes to revise the definition of ``production guarantee 
(per acre)'' to clarify that the Crop Provisions definition is used in 
lieu of the Basic Provisions definition. The Basic Provisions contains 
a different definition of ``production guarantee (per acre)'' and the 
Crop Provisions definition has already replaced that definition, but 
this additional language confirms that interpretation. FCIC also 
proposes to clarify this ``production guarantee (per acre)'' definition 
in the Crop Provisions by specifying that requirements of section 3(e) 
determine the yield used for calculating the production guarantee.

[[Page 1340]]

    FCIC proposes to remove the definition of ``varieties'' because all 
references to the term are proposed for removal and replacement with 
the term ``commodity type'' in the Crop Provisions.
    3. Section 2 (``Unit Division'')--FCIC proposes to revise paragraph 
2(a) to state that basic units will be established for each insured 
crop in accordance with section 1 of the Basic Provisions. The 
definition of basic unit in section 1 of the Basic Provisions states 
that basic units include all insurable acreage of the insured crop in 
the county on the date coverage begins for the crop year: (1) In which 
you have 100 percent crop share; or (2) which is owned by one person 
and operated by another person on a share basis. Separate basic units 
will be established for each citrus fruit group because FCIC proposes 
to treat each citrus fruit group as a separate insured crop. For 
example, under the new citrus fruit commodity of oranges, all early and 
midseason oranges will be further classified under one citrus fruit 
group and all late oranges will be further classified under another 
citrus fruit group. These designations mean all of the insured's early 
and midseason orange acreage can be insured as one basic unit and all 
of the insured late orange acreage can be insured as a separate basic 
unit. This proposed change in terminology will allow insureds to keep 
their current unit structure under the new classification system.
    FCIC proposes to revise paragraph 2(c) to state that optional units 
may be established by either of the following options, but not both 
options: (1) In accordance with Section 34(c) of the Basic Provisions, 
except as provided in section 2(b) of these Crop Provisions; or (2) 
non-contiguous land. FCIC proposes this revision to clarify that the 
insured has a choice of optional units as allowed by the Basic 
Provisions (except irrigated or non-irrigated practices) or by non-
contiguous land. As currently worded, the provision could be 
misinterpreted to mean that optional units as allowed in the Basic 
Provisions are not allowed under the Texas Citrus Fruit Crop Insurance 
Provisions. In addition, the official Code of Federal Regulations 
publication appears to have inadvertently omitted the following 
language from the existing version that appeared in the applicable 
Federal Register Notice establishing this language: The words ``. . . 
optional units may be established if each . . .'' should have 
previously appeared immediately following the word ``number,'' and 
immediately before the provision ending phrase, ``. . . optional unit 
is located on non-contiguous land.'' See 62 FR 65,130, 65,169 (Dec. 10, 
1997). This omission by the official Code of Federal Regulations could 
contribute to this potential misinterpretation that FCIC proposes to 
correct.
    4. Section 3 (``Insurance Guarantees, Coverage Levels, and Prices 
for Determining Indemnities'')--FCIC proposes to revise paragraph 3(a) 
by adding language to allow the insured to continue selecting separate 
coverage levels and price elections by insured crop (i.e., citrus fruit 
group) under the new definitions. For example, under the new 
designation of citrus fruit commodity oranges, all early and midseason 
oranges will be further classified together as one citrus fruit group 
which requires the insured to select the same coverage level and 
percent of price election for all fruit insured under this citrus fruit 
group. Under the new designation of citrus fruit commodity oranges, 
late oranges will be further classified under a separate citrus fruit 
group, which will allow the insured to continue selection of a 
different coverage level and percent of price election than selected 
for its early and midseason orange acreage. These terminology revisions 
will allow the insured to continue electing coverage levels and price 
elections on the same basis as they currently elect coverage levels and 
price elections, while continuing to further ACRSI goals. FCIC also 
proposes to update the example in paragraph 3(a) for consistency with 
these proposed changes.
    FCIC proposes to revise paragraph 3(b) by removing the instructions 
for calculating the production guarantee per acre from paragraphs 
3(b)(1) and 3(b)(2). FCIC proposes this change because the same 
information is already contained in the definition of ``production 
guarantee (per acre).'' Removing these instructions from 3(b)(1) and 
3(b)(2) will prevent perceived conflict between these provisions and 
that definition because the information contained in paragraphs 3(b)(1) 
and 3(b)(2) for calculating the production guarantee was intended as 
duplicative, yet is stated differently than the information contained 
in the definition of ``production guarantee (per acre).'' FCIC also 
proposes to revise paragraph 3(b) to state that the production 
guarantee is progressive and increases from the first stage to the 
second stage guarantee. FCIC also proposes to remove the term 
``final,'' and leave only the term ``second,'' in paragraph 3(b)(2). 
Both final stage and second stage have the same meaning in the Texas 
Citrus Fruit Crop Insurance Provisions because there are only two 
stages and the terms are used interchangeably. Therefore, FCIC proposes 
to remove the term ``final'' to prevent potential confusion if the 
terms ``second'' and ``final'' are erroneously perceived to have 
different meanings.
    FCIC proposes to revise paragraph 3(d) by removing the term 
``type'' and replacing the term ``type'' with the phrase ``commodity 
type and intended use.'' This change will provide consistency with the 
terminology revisions implemented to further ACRSI goals. FCIC proposes 
to revise paragraphs 3(d)(4) and 3(d)(4)(i) by removing references to 
``perennial crop'' and ``crop'' and replacing these terms with the term 
``agricultural commodity.'' This change will provide consistency with 
the proposed changes to the definition of ``interplanted.'' The 
proposed change will allow the term ``interplanted'' to apply to 
acreage in which an insured crop under these Crop Provisions (e.g., 
citrus fruit group) is interplanted with another insured crop or 
uninsured agricultural commodity, regardless of whether or not the 
other agricultural commodity is insurable under the Texas Citrus Fruit 
Crop Insurance Provisions or any other Crop Provisions.
    FCIC proposes to designate the undesignated paragraph following 
paragraph 3(d)(4)(iii) as paragraph 3(e) and redesignate paragraphs 
3(e) and 3(f) as paragraphs 3(f) and 3(g). FCIC proposes to revise 
newly designated paragraph 3(e) to specify the yield adjustment timing 
and method used, if circumstances occur that may reduce the yield 
potential, based on when the circumstance occurred. The current 
provision states that the Approved Insurance Provider will reduce the 
yield used to establish the production guarantee, but does not 
explicitly provide additional explanation for timing and method of 
certain specific circumstances. The proposed paragraph 3(e)(1) 
addresses circumstances that occurred before the beginning of the 
insurance period and requires reduction of the yield used to establish 
the production guarantee for the current crop year regardless of 
whether the circumstance was due to an insured or uninsured cause of 
loss and requires the Insured to report these circumstances that 
occurred prior to the insurance period no later than the production 
reporting date. The proposed paragraph 3(e)(2) addresses circumstances 
that occurred after the beginning of the insurance period and the 
insured notifies the Approved Insurance Provider of these circumstances 
by the production reporting date. The

[[Page 1341]]

proposed paragraph 3(e)(2) will require the yield used to establish the 
production guarantee to be reduced for the current crop year only if 
the potential reduction in the yield used to establish the production 
guarantee is due to an uninsured cause of loss. The proposed paragraph 
3(e)(3) addresses circumstances that may reduce the yield that occurred 
after the beginning of the insurance period and the insured fails to 
notify the Approved Insurance Provider of these circumstances by the 
production reporting date. The proposed paragraph 3(e)(3) requires an 
amount equal to the reduction in the yield to be added to the 
production to count calculated in paragraph 12(c) of these Crop 
Provisions due to uninsured causes. Additionally, the proposed 
paragraph 3(e)(3) requires reduction of the yield used to establish the 
production guarantee for the subsequent crop year to reflect any 
reduction in the productive capacity of the trees or the yield 
potential of the insured acreage. These provisions are similar to 
provisions that FCIC has recently added to other perennial crop 
policies, such as the Arizona-California Citrus Crop Insurance 
Provisions. Adding these provisions is intended to remove potential 
ambiguity regarding the consequences when circumstances occur that will 
reduce the yield potential and to promote consistency with 
administration of similar policies such as the Arizona-California 
Citrus Crop Insurance Provisions.
    FCIC proposes to revise newly designated paragraph 3(g) by removing 
the reference to ``one-year lag period.'' The phrase is not necessary 
to describe when production must be reported. Therefore, FCIC proposes 
to delete this reference to prevent confusion regarding production 
reporting. FCIC also proposes to update the example in this paragraph 
with contemporary dates. This proposed change is intended to prevent 
the policy from appearing outdated. FCIC also proposes to revise the 
sentence structure of this provision to provide clarity and consistency 
with similar provisions in these Crop Provisions that are used in lieu 
of the Basic Provisions.
    5. Section 7 (``Insured Crop'')--FCIC proposes to redesignate the 
introductory paragraph of section 7 as paragraph (a) and redesignate 
paragraphs 7(a) through 7(f) as 7(a)(1) through 7(a)(6). FCIC proposes 
to revise the newly designated paragraph (a) by revising language to 
designate the insured crop as each ``citrus fruit group'' the insured 
elects to insure. This change in section 7 is necessary to prevent 
changes to assessment of administrative fees because of revisions to 
commodity names. This change will also allow the insured to continue to 
elect to insure some citrus acreage and not insure other citrus acreage 
on the same basis as is currently allowed.
    FCIC proposes to revise the newly designated paragraph 7(a)(2) to 
clarify that the insured crop must be grown on trees adapted to the 
area. The current provision states the acreage must be adapted to the 
area. However, the trees on which the insured crop is grown must be 
adapted to the area.
    FCIC proposes to revise the newly designated paragraph 7(a)(3) by 
removing the term ``are'' and adding the term ``is'' in its place. FCIC 
proposes this change to maintain verb usage consistent with the 
language in newly redesignated paragraph 7(a).
    FCIC proposes to add a new paragraph 7(b) to clarify assessment of 
administrative fees. FCIC has received requests to clarify how 
administrative fees are assessed in the Crop Provisions. Because each 
citrus fruit group will be designated as a separate insured crop, each 
citrus fruit group will be assessed a separate administrative fee in 
accordance with section 7 of the Basic Provisions and section 6 of the 
Catastrophic Risk Protection Endorsement.
    6. Section 8 (``Insurable Acreage'')--FCIC proposes to revise 
section 8 by adding the words ``fruit group'' immediately following the 
word ``citrus'' and removing references to the term ``crop'' and 
replacing them with the term ``agricultural commodity,'' except FCIC 
will replace the first instance of ``crop'' appearing in section 8 with 
``insured crop.'' These changes will provide consistency with the 
proposed changes to the definition of ``interplanted.'' FCIC also 
proposes to add language to clarify interplanted acreage is not 
insurable unless a citrus fruit group is interplanted with another 
perennial agricultural commodity.
    7. Section 10 (``Causes of Loss'')--FCIC proposes to add provisions 
in paragraph 10(a) that allow insects and disease as insurable causes 
of loss unless excluded or otherwise restricted through the Special 
Provisions, provided production losses are not due to damage resulting 
from insufficient or improper application of control measures 
recommended by agricultural experts. FCIC proposes to remove the 
provisions in paragraph 10(b)(1) that only provide coverage against 
damage or loss of production due to insects and disease if an insurable 
cause of loss prevents the proper application of control measures, 
causes properly applied control measures to be ineffective, or causes 
disease or insect infestation for which no effective control mechanism 
is available. For Texas citrus fruit, the language contained in 
paragraph 10(b)(1) requires a determination that can be difficult to 
make with regard to whether an underlying cause of loss prevented the 
proper application of control measures, caused properly applied control 
measures to be ineffective, or caused a disease or insect infestation 
for which no effective control mechanism is available. The proposed 
change removes this language and provides more comprehensive coverage 
for citrus growers. This proposed change is similar to changes FCIC has 
made to other perennial APH policies, such as the Arizona-California 
Citrus Crop Insurance Provisions, as they have been revised.
    The proposed language provides FCIC with greater flexibility to 
exclude or restrict coverage through the Special Provisions. This 
greater flexibility is intended to protect program integrity and 
insured interests by allowing FCIC to exclude or restrict coverage for 
certain diseases for which limited controls or mitigation practices are 
available. For example, FCIC plans to exclude citrus greening 
(Huanglongbing) from coverage through the Special Provisions. However, 
FCIC seeks input from interested persons regarding exclusion of 
coverage for this disease through the Special Provisions.
    Citrus greening is a deadly bacterial disease that can infect 
nearly all citrus species (Chung, K-R., and R. H. Brlansky. ``Citrus 
diseases exotic to Florida: Huanglongbing (citrus greening).'' 
(2009).). The bacteria disrupts the vascular system of the trees and 
eventually leads to tree death (Jagoueix, Sandrine, Joseph Marie 
Bov[eacute], and Monique Garnier. ``PCR detection of the two 
<> liberobacter species associated with greening disease of 
citrus.'' Molecular and cellular probes 10.1 (1996): 43-50.). 
Currently, no known adequate cure exists for citrus greening (Kobori, 
Youichi, et al. ``Dispersal of adult Asian citrus psyllid, Diaphorina 
citri Kuwayama (Homoptera: Psyllidae), the vector of citrus greening 
disease, in artificial release experiments.'' Applied entomology and 
zoology 46.1 (2011): 27-30.). Trees infected with citrus greening 
exhibit symptoms that include blotchy yellow leaves and misshapen, 
poorly developed green fruit with aborted seeds and bitter taste 
(Graca, JV da. ``Citrus greening disease.'' Annual Review of 
Phytopathology 29.1 (1991): 109-136.). However, identification of the 
disease can be difficult because

[[Page 1342]]

symptoms resemble nutrient deficiencies (Li, Wenbin, John S. Hartung, 
and Laurene Levy. ``Quantitative real-time PCR for detection and 
identification of Candidatus Liberibacter species associated with 
citrus huanglongbing.'' Journal of microbiological methods 66.1 (2006): 
104-115.).
    Citrus greening is vectored by the Asian citrus psyllid (Diaphorina 
citri) (French, J. V., C. J. Kahlke, and J. V. Da Gra[ccedil]a. ``First 
record of the Asian citrus psylla, Diaphorina citri Kuwayama 
(Homoptera: Psyllidae) in Texas.'' Subtropical Plant Science 53 (2001): 
14-15.). There are pesticides available that, if applied correctly, can 
help minimize the spread of the disease by controlling the psyllid 
(Grafton-Cardwell, Elizabeth E., Lukasz L. Stelinski, and Philip A. 
Stansly. ``Biology and management of Asian citrus psyllid, vector of 
the huanglongbing pathogens.'' Annual review of entomology 58 (2013): 
413-432.). Properly applied pesticides may be the best current option 
growers have to help minimize the spread of the disease. However, even 
if pesticides are applied properly and infected trees are removed from 
commercial orchards, there are other factors that make control and 
eradication of the disease problematic. Disease control is complicated 
by delay of disease symptom appearance in infected trees (Stokstad, 
Erik. ``Dread citrus disease turns up in California, Texas.'' Science 
336.6079 (2012): 283-284.). Therefore, a tree may be infected and the 
disease may spread to other trees before disease presence is 
identified. Disease eradication can be challenging due to adjacent or 
nearby abandoned or improperly managed groves, and yard trees in 
residential areas (Tiwari, Siddharth, et al. ``Incidence of Candidatus 
Liberibacter asiaticus infection in abandoned citrus occurring in 
proximity to commercially managed groves.'' Journal of economic 
entomology 103.6 (2010): 1972-1978.). Trees in these areas can serve as 
reservoirs for the disease inoculum. Although the Asian citrus psyllid 
can only fly relatively short distances, it can be carried greater 
distances by wind (Hall, D. G., and M. G. Hentz. ``Seasonal flight 
activity by the Asian citrus psyllid in east central Florida.'' 
Entomologia experimentalis et applicata 139.1 (2011): 75-85.). 
Therefore, extreme wind events such as hurricanes and tornados may also 
exacerbate the spread of citrus greening.
    Citrus greening was first discovered in Florida in August 2015 and 
since spread to nearly all counties in Florida with citrus (Brlansky, 
R. H., et al. ``2006 Florida citrus pest management guide: 
Huanglongbing (citrus greening).'' UF/IFAS Extension (2012).). The 
Asian citrus psyllid was first detected in Texas in 2001 (French, J. 
V., C. J. Kahlke, and J. V. Da Gra[ccedil]a. ``First record of the 
Asian citrus psylla, Diaphorina citri Kuwayama (Homoptera: Psyllidae) 
in Texas.'' Subtropical Plant Science 53 (2001): 14-15.). The presence 
of the psyllid in Texas has resulted in quarantines restricting 
movement of citrus plant material and citrus nursery stock. Citrus 
greening research is currently occurring, including 2014 Farm Bill 
funding which authorized approximately $125 million of the USDA 
Specialty Crop Research Initiative toward citrus health research over 
the next five years. USDA Farm Service Agency (FSA) does currently 
provide assistance to cover the replacement and establishment of 
infected trees through its Tree Assistance Program.
    The current Texas Citrus Fruit Crop Insurance Provisions may appear 
to provide some level of protection against production loss from citrus 
greening, but the current policy is unlikely to allow loss payment for 
citrus greening. The current policy language requires linkage of 
production loss from insects and disease to another underlying covered 
cause of loss. For example, a hurricane may occur that could prevent or 
otherwise negatively impact control measures by spreading the disease 
to outbreak levels. However, it is unlikely that citrus greening would 
trigger an indemnity under this scenario because citrus greening 
symptom latency is unlikely to satisfy the policy provision in section 
9 of the Crop Provisions allowing an indemnity payment only for losses 
occurring within the insurance period. Therefore, if a hurricane 
spreads the disease into a grove and symptoms do not appear until the 
next crop year, the current policy would not cover production loss 
because the insured cause of loss (i.e., hurricane) that prevented or 
impacted control measures occurred outside the insurance period in 
which production loss occurred.
    Specifically, under circumstances that prevented the proper 
application of control measures or caused properly applied control 
measures to be ineffective, it is unlikely that losses in a given year 
would exceed the deductible under the current policy due to slow 
disease progression. For example, if excess precipitation prevented or 
rendered ineffective proper pesticide application, the production loss 
from trees infected by this event are unlikely to exceed the deductible 
for the current crop year, even if the highest coverage level was 
selected. In addition, even if events happened in successive years, the 
Crop Provisions also authorize underwriting controls that require 
acreage adjustment when trees are removed or the guarantee to be 
reduced for existing damage. These underwriting controls would likely 
prevent or reduce losses due to citrus greening from exceeding the 
deductible in most situations. Although it may be possible, under some 
circumstances, that indemnities due to citrus greening could be 
triggered, the current policy provides subjective or little assurance 
of protection against citrus greening for the reasons stated above.
    When changes to the Texas Citrus Fruit Crop Provisions are 
finalized, FCIC intends to conduct a full rate review to examine the 
impact of all policy changes combined with past loss experience, which 
could increase or decrease premium rates. However, if the proposed 
language covered citrus greening, FCIC would likely have to increase 
premium rates to account for this risk, with additional rate increases 
possible based on loss experience to maintain actuarial soundness under 
section 506(n)(2) (7 U.S.C. 1506(n)(2)) of the Federal Crop Insurance 
Act (FCIA or the Act). The benefit of the coverage may not be perceived 
by growers to be worth the additional premium cost because underwriting 
controls necessary to protect program integrity are unlikely to allow 
citrus greening indemnities in most scenarios. Consequently, allowing 
such coverage may require Approved Insurance Providers to explain 
underwriting controls precluding indemnity payment when the insured 
believed it had coverage against citrus greening. In addition, if 
citrus greening indemnities became widespread and underwriting controls 
were insufficient to limit indemnities, premium rates could increase 
rapidly. Texas citrus producers have expressed concern to FCIC about 
citrus greening coverage contributing to increasing premium rates. FCIC 
plans to exclude citrus greening as an insurable cause of loss through 
the Special Provisions to protect program integrity and prevent adverse 
impacts on the crop insurance delivery system for Texas citrus fruit 
policies.
    7. Section 11 (``Duties in the Event of Damage or Loss'')--FCIC 
proposes to revise section 11 by adding a new paragraph (a), 
designating the introductory paragraph as (b), and redesignating 
paragraphs (a) and (b) as (b)(1) and (b)(2) respectively. FCIC proposes 
the new paragraph (a) to clarify that, in accordance with section 14 of 
the Basic Provisions, the insured

[[Page 1343]]

must leave representative samples for appraisal purposes. The Basic 
Provisions stipulate representative samples must be left if required by 
the Crop Provisions or the Special Provisions. Representative samples 
are necessary to appraise damaged production for indemnity claim 
purposes. FCIC also proposes new paragraph (a) will state that in lieu 
of the requirements of section 14(c)(3) of the Basic Provisions, the 
Approved Insurance Provider will determine which trees must remain 
unharvested so that the Approved Insurance Provider may inspect these 
trees in accordance with FCIC procedures. Section 14(c)(3) of the Basic 
Provisions states that unless otherwise specified in the Crop 
Provisions or Special Provisions, the samples of the crop in each field 
in the unit must be 10 feet wide and extend the entire length of the 
rows, if the crop is planted in rows, or if the crop is not planted in 
rows, the longest dimension of the field. These requirements in the 
Basic Provisions are not appropriate for crops insured under these Crop 
Provisions. Therefore, FCIC intends the proposed revision to allow FCIC 
to issue crop specific guidance for the insurance provider to use to 
instruct the insured on which trees must remain unharvested.
    FCIC proposes to revise the newly designated paragraph 11(b)(2) to 
clarify that if the insured intends to claim an indemnity on any unit, 
the insured must notify the Approved Insurance Provider at least 15 
days prior to the beginning of harvest, or within 24 hours if damage is 
discovered during harvest, so the Approved Insurance Provider may have 
an opportunity to inspect the unit. This change provides a required 
timeframe for reporting damage and is consistent with revisions to 
other perennial crop policies, such as the Arizona-California Citrus 
Crop Insurance Provisions.
    8. Section 12 (``Settlement of Claim'')--FCIC proposes to revise 
paragraph 12(b) by removing the phrase ``crop, or variety if 
applicable'' and inserting the phrase ``combination of commodity type 
and intended use'' in its place. FCIC proposes this change because 
``commodity type'' listed in the actuarial documents will coincide with 
the current crop names and the price elections for each combination of 
commodity type and intended use will determine insurance elections for 
the unit.
    FCIC proposes to revise paragraph 12(d) to clarify the provision 
applies only to citrus fruit insured with an intended use of juice. 
FCIC proposes this change to clarify the applicable citrus fruit type 
subcategory for applying this adjustment. Fresh and juice are currently 
type designations in the actuarial documents. However, for the 2018 
crop year for citrus fruit groups insured under the Texas Citrus Fruit 
Crop Insurance Provisions, FCIC plans to expand the type category in 
the actuarial documents to include additional subcategories such as 
commodity type and intended use. Fresh and juice designations will be 
contained in the intended use category.
    FCIC proposes to revise paragraph 12(e) by removing the fresh fruit 
terminology and replacing it with the intended use of fresh 
terminology. FCIC proposes this change because the fresh fruit option 
will be identified in the actuarial documents under the intended use 
category. The fresh fruit option will be elected by reporting the 
intended use of fresh. Therefore, to provide consistency with terms 
used in actuarial documents, FCIC proposes to remove the fresh fruit 
terminology and replace this terminology with intended use of fresh.
    FCIC also proposes to revise paragraph 12(e) by revising the 
calculation for adjusting production to count for fruit insured as 
fresh that is not marketable as fresh due to insured causes of loss. 
The current provision states to use the local market price for the week 
before damage occurred, but does not specify procedures if a local 
market price is not available. FCIC publishes an annual bulletin that 
provides prices for settling claims because local market prices are not 
available for a portion of the year when processing plants are idle. 
FCIC proposes to revise the calculation to require the number of tons 
of damaged citrus to be multiplied by a Fresh Fruit Factor contained in 
the Special Provisions. The Fresh Fruit Factor will represent the ratio 
of the value of damaged fruit to the value of undamaged fresh fruit. 
The Fresh Fruit Factor will be determined using historical prices and 
other available data as applicable. This proposed change will provide 
consistency in the loss adjustment process, prevent delays in claims, 
and lessen the burden on the Approved Insurance Providers and FCIC.

List of Subjects in 7 CFR Part 457

    Crop insurance, Texas citrus fruit, Reporting and recordkeeping 
requirements.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 effective for 
the 2018 and succeeding crop years as follows:

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(l), 1506(o).

0
2. Amend 7 CFR 457.119 as follows:
0
a. In the introductory text by removing ``2000'' and adding ``2018'' in 
its place;
0
b. By removing the undesignated paragraph immediately preceding section 
1;
0
c. In section 1:
0
i. By adding in alphabetical order the definitions of ``citrus fruit 
commodity,'' ``citrus fruit group,'' ``commodity type,'' and ``intended 
use'';
0
ii. By removing the definitions of ``crop,'' ``local market price,'' 
and ``varieties'';
0
iii. In the definition of ``crop year'' by removing the term ``citrus'' 
and adding the term ``insured'' in its place;
0
iv. In the definition of ``direct marketing'' by adding the term 
``insured'' directly preceding the term ``crop'' in the second 
sentence;
0
v. In the definition of ``excess rain'' by adding the term ``insured'' 
directly preceding the term ``crop'';
0
vi. By revising the definitions of ``excess wind,'' ``interplanted,'' 
and ``production guarantee (per acre)''; and
0
d. In section 2 by revising paragraphs (a) and (c);
0
e. In section 3:
0
i. In the introductory paragraph by removing the phrase ``(Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities)'' 
immediately following the words ``section 3'';
0
ii. By revising paragraphs (a) and (b);
0
iii. In paragraph (d) introductory text by removing the term ``type'' 
and adding the phrase ``commodity type and intended use'' in its place;
0
iv. In paragraph (d)(4) by removing the phrase ``perennial crop, and 
anytime'' and replacing it with the phrase ``agricultural commodity and 
any time'';
0
v. In paragraph (d)(4)(i) by removing the phrase ``crop, and type'' and 
adding the phrase ``agricultural commodity and commodity type,'' in its 
place;
0
vi. By redesignating paragraphs (e) and (f) as (f) and (g) 
respectively;
0
vii. By designating the undesignated paragraph following paragraph 
(d)(4)(iii) as paragraph (e);
0
viii. By revising the newly designated paragraph (e);
0
ix. In the newly designated paragraph (f) add a comma following the 
term ``provisions'' and remove the comma following the term ``trees''; 
and

[[Page 1344]]

0
x. By revising the newly designated paragraph (g);
0
f. In section 4 by removing the phrase ``(Contract Changes)'' 
immediately following the words ``section 4'';
0
g. In section 5 by removing the phrase ``(Life of Policy, Cancellation, 
and Termination)'' immediately following the words ``section 2'';
0
h. In section 6 by removing the phrase ``(Annual Premium)'' immediately 
following the words ``section 7'';
0
i. In section 7 by:
0
i. Designating the undesignated introductory paragraph as paragraph (a) 
and redesignating paragraphs (a) through (f) as (a)(1) through (6) 
respectively;
0
ii. Revising the newly designated paragraph (a);
0
iii. In the newly designated paragraph (a)(2) by removing the term 
``are'' and adding the phrase ``is grown on trees'' in its place;
0
iv. In the newly designated paragraph (a)(3) by removing the term 
``are'' and adding the term ``is'' in its place;
0
v. Adding a new paragraph (b);
0
j. Revise section 8;
0
k. In section 9:
0
i. In paragraph (a) by removing the phrase ``(Insurance Period)'' 
immediately following the words ``section 11'';
0
ii. In paragraph (a)(1) by adding a hyphen between the terms ``10'' and 
``day'' and by adding the term ``insured'' immediately preceding the 
phrase ``crop or to determine the condition of the grove.''; and
0
iii. In paragraph (b) by removing the phrase ``(Insurance Period)'' 
immediately following the words ``section 11'';
0
l. In section 10:
0
i. In paragraph (a) by removing the phrase ``(Causes of Loss)'' 
immediately following the words ``section 12'';
0
ii. In paragraph (a)(7) by removing the word ``or'';
0
iii. In paragraph (a)(8) by removing the period and adding ``; or'' in 
its place;
0
iv. By adding a new paragraph (a)(9); and
0
v. By revising paragraph (b);
0
m. In section 11:
0
i. By redesignating paragraph (a) as (b)(1); and
0
ii. By redesignating paragraph (b) as (b)(2) and revising the newly 
designated paragraph (b)(2);
0
iii. By designating the undesignated introductory paragraph as 
paragraph (b) introductory text;
0
iv. By adding a new paragraph (a);
0
v. In the newly designated paragraph (b) by removing the phrase 
``(Duties in the Event of Damage or Loss)'' immediately following the 
words ``section 14'';
0
n. In section 12:
0
i. By revising paragraph (b)(1);
0
ii. In paragraph (b)(2) by removing the phrase ``crop, or variety, if 
applicable'' and adding the phrase ``combination of commodity type and 
intended use'' in its place;
0
iii. In paragraph (b)(4) by removing the phrase ``variety, if 
applicable,'' and adding the phrase ``combination of commodity type and 
intended use'' in its place;
0
iv. In paragraph (c)(1)(iv) by removing the term ``crop'' in all three 
places it appears and adding the term ``insured crop'' in its place; 
and
0
v. In paragraph (d) by adding the phrase ``insured with an intended use 
of juice'' after the phrase ``Any citrus fruit'';
0
vi. By revising paragraph (e).
    The revisions and additions read as follows:


Sec.  457.119  Texas citrus fruit crop insurance provisions.

* * * * *

1. Definitions

    Citrus fruit commodity. Includes the following:
    (a) Oranges;
    (b) Grapefruit; and
    (c) Any other citrus fruit designated as a ``citrus fruit 
commodity'' in the actuarial documents.
    Citrus fruit group. A designation in the Special Provisions used to 
identify combinations of citrus fruit commodity types and intended uses 
within a citrus fruit commodity that may be grouped together for the 
purposes of electing coverage levels and identifying the insured crop.
    Commodity type. A specific subcategory of a citrus fruit commodity 
having a characteristic or set of characteristics distinguishable from 
other subcategories of the same citrus fruit commodity.
* * * * *
    Excess wind. A natural movement of air that has sustained speeds 
exceeding 58 miles per hour (50 knots) recorded at the U.S. National 
Weather Service reporting station or any other weather reporting 
station identified in the Special Provisions operating nearest to the 
insured acreage at the time of damage.
* * * * *
    Intended use. The insured's expected end use or disposition of the 
commodity at the time the commodity is reported. Insurable intended 
uses will be specified in the Special Provisions.
    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 and 
at least one of these agricultural commodities constitutes an insured 
crop under these Crop Provisions.
    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:
    * * *
    (b) Second stage production guarantee. The quantity of citrus (in 
tons) determined by multiplying the yield determined in accordance with 
section 3(e) of these Crop Provisions by the coverage level percentage 
you elect.
* * * * *

2. Unit Division

    (a) Basic units will be established for each insured crop in 
accordance with section 1 of the Basic Provisions.
* * * * *
    (c) Optional units may be established by either of the following, 
but not both:
    (1) In accordance with section 34(c) of the Basic Provisions, 
except as provided in section 2(b) of these Crop Provisions; or
    (2) Non-contiguous land.

3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities

    In addition to the requirements of section 3 of the Basic 
Provisions:
    (a) You may select only one price election and coverage level for 
each insured crop.
    (1) The price election you choose for each insured crop need not 
bear the same percentage relationship to the maximum price offered by 
us for each insured crop. For example, if you choose one hundred 
percent (100%) of the maximum price election for one insured crop 
(e.g., the citrus fruit group for early and midseason oranges), you may 
choose seventy-five percent (75%) of the maximum price election for 
another insured crop (e.g., the citrus fruit group for late oranges).
    (2) If separate price elections are available by commodity type or 
intended use within an insured crop, the price elections you choose 
within the insured crop must have the same percentage relationship to 
the maximum price offered by us for each other commodity type or 
intended use within the insured crop. For example, if separate price 
elections are available for commodity type ruby red grapefruit with an 
intended use of fresh, and commodity type ruby red grapefruit with an 
intended use of juice, and you

[[Page 1345]]

choose one hundred percent (100%) of the price election for commodity 
type ruby red grapefruit with an intended use of fresh, you must also 
choose one hundred percent (100%) of the price election for commodity 
type ruby red grapefruit with an intended use of juice.
    (b) The production guarantee per acre is progressive by stage and 
increases from the first stage production guarantee to the second stage 
production guarantee. The stages are as follows:
    (1) The first stage extends from the date insurance attaches 
through April 30 of the calendar year of normal bloom.
    (2) The second stage extends from May 1 of the calendar year of 
normal bloom until the end of the insurance period.
* * * * *
    (e) We will reduce the yield used to establish your production 
guarantee, as necessary, based on our estimate of the effect of any 
circumstance that may reduce your yields from previous levels. Examples 
of these circumstances that may reduce yield may include, but are not 
necessarily limited to, interplanted agricultural commodities; tree 
removal, topping, hedging, or pruning of trees; damage; and change in 
practices. If the circumstance occurred:
    (1) Before the beginning of the insurance period and you notify us 
by the production reporting date, the yield used to establish your 
production guarantee will be reduced for the current crop year 
regardless of whether the circumstance was due to an insured or 
uninsured cause of loss;
    (2) After the beginning of the insurance period and you notify us 
by the production reporting date, the yield used to establish your 
production guarantee will be reduced for the current crop year only if 
the potential reduction in the yield used to establish your production 
guarantee is due to an uninsured cause of loss; or
    (3) Before or after the beginning of the insurance period and you 
fail to notify us by the production reporting date, an amount equal to 
the reduction in the yield will be added to the production to count 
calculated in section 12(c) of these Crop Provisions due to uninsured 
causes. We will reduce the yield used to establish your production 
guarantee for the subsequent crop year to reflect any reduction in the 
productive capacity of the trees or in the yield potential of the 
insured acreage.
* * * * *
    (g) In lieu of the provisions in section 3 of the Basic Provisions 
that require reporting your production for the previous crop year, for 
each crop year you must report your production from two crop years ago 
(e.g., on the 2018 crop year production report, you will provide your 
2016 crop year production).
* * * * *

7. Insured Crop

    (a) In accordance with section 8 of the Basic Provisions, the 
insured crop will be each citrus fruit group you elect to insure and 
for which a premium rate is provided by the actuarial documents:
* * * * *
    (b) For each insured crop, administrative fees will be assessed in 
accordance with section 6 of the Catastrophic Risk Protection 
Endorsement and section 7 of the Basic Provisions.

8. Insurable Acreage

    In lieu of the provisions in section 9 of the Basic Provisions that 
prohibit insurance attaching to an insured crop interplanted with 
another agricultural commodity, interplanted acreage is uninsurable, 
except that a citrus fruit group interplanted with another perennial 
agricultural commodity is insurable unless we inspect the acreage and 
determine it does not meet the requirements contained in your policy.
* * * * *

10. Causes of Loss

* * * * *
    (a) * * *
    (9) Insects and plant disease, unless excluded or otherwise 
restricted through the Special Provisions, provided the loss of 
production is not due to damage resulting from insufficient or improper 
application of control measures as recommended by agricultural experts.
    (b) In addition to the causes of loss excluded in section 12 of the 
Basic Provisions, we will not insure against damage or loss of 
production due to the inability to market the citrus for any reason 
other than actual physical damage from an insurable cause of loss 
specified in this section. For example, we will not pay you an 
indemnity if you are unable to market due to quarantine, boycott, or 
refusal of any person to accept production.

11. Duties in the Event of Damage or Loss

    (a) In accordance with the requirements of section 14 of the Basic 
Provisions, you must leave representative samples. In lieu of the 
requirements of section 14(c)(3) of the Basic Provisions, we will 
determine which trees must remain unharvested so that we may inspect 
them in accordance with FCIC procedures.
    (b) * * *
    (2) If you intend to claim an indemnity on any unit, you must 
notify us at least 15 days prior to the beginning of harvest, or within 
24 hours if damage is discovered during harvest, so we may have an 
opportunity to inspect the unit. You must not sell or dispose of the 
damaged crop until after we have given you written consent to do so. If 
you fail to meet the requirements of this section, all such production 
will be considered undamaged and included as production to count.

12. Settlement of Claim

* * * * *
    (b) * * *
    (1) Multiplying the insured acreage for each combination of 
commodity type and intended use by its respective production guarantee;
* * * * *
    (e) Any citrus fruit insured with an intended use of fresh that is 
not marketable as fresh fruit due to insurable causes will be adjusted 
by multiplying the number of tons of such citrus fruit by the 
applicable Fresh Fruit Factor contained in the Special Provisions.
* * * * *

    Signed in Washington, DC, on December 24, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-32951 Filed 1-11-16; 8:45 am]
 BILLING CODE 3410-08-P



                                                                         Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules                                            1337

                                                   (2) May not be brought later than                    DATES:   FCIC will accept written                      SUPPLEMENTARY INFORMATION:
                                                December 31 of the 3rd year after the                   comments on this proposed rule until
                                                                                                                                                               Executive Order 12866
                                                agency or retirement system final                       close of business March 14, 2016. FCIC
                                                decision to the insured individual.                     will consider these comments when                        This rule has been determined to be
                                                   (3) Exception: This time limit may be                FCIC finalizes this rule.                              not-significant for the purposes of
                                                extended by 31 calendar days after                      ADDRESSES: FCIC prefers that interested                Executive Order 12866 and, therefore, it
                                                December 31 of the 3rd year (60                         persons submit comments electronically                 has not been reviewed by the OMB.
                                                calendar days if overseas) of the date of               through the Federal eRulemaking Portal.                Paperwork Reduction Act of 1995
                                                the final decision to the insured if the                Interested persons may submit
                                                individual shows that he or she was not                                                                          Pursuant to the provisions of the
                                                                                                        comments, identified by Docket ID No.                  Paperwork Reduction Act of 1995 (44
                                                notified of the time limit and was not                  FCIC–15–0002, by any of the following
                                                otherwise aware of it or that he or she                                                                        U.S.C. chapter 35, subchapter I), the
                                                                                                        methods:                                               collections of information in this rule
                                                was unable, due to reasons beyond his                      • Federal eRulemaking Portal: http://
                                                or her control, to make the request                                                                            have been approved by OMB under
                                                                                                        www.regulations.gov. Follow the
                                                within the time limit.                                                                                         control number 0563–0053.
                                                                                                        instructions for submitting comments.
                                                   (d) This section does not change the                    • Mail: Director, Product                           E-Government Act Compliance
                                                rules found in this chapter regarding                   Administration and Standards Division,                    FCIC is committed to complying with
                                                FEGLI coverage or premium payments                      Risk Management Agency, United States                  the E-Government Act of 2002, to
                                                for an employee while in nonpay status.                 Department of Agriculture, P.O. Box                    promote the use of the Internet and
                                                   (e) If a claimant thinks that he or she              419205, Kansas City, MO 64133–6205.                    other information technologies to
                                                is due money from FEGLI benefits and                       All comments received, including                    provide increased opportunities for
                                                that legal action is necessary to get the               those received by mail, will be posted                 citizen access to Government
                                                money, the claimant must take action in                 without change to http://                              information and services, and for other
                                                Federal court against the company that                  www.regulations.gov, including any                     purposes.
                                                OPM contracts with to adjudicate                        personal information provided. Once
                                                claims, not against OPM.                                these comments are posted to this Web                  Unfunded Mandates Reform Act of
                                                [FR Doc. 2016–00453 Filed 1–11–16; 8:45 am]             site, the public can access all comments               1995
                                                BILLING CODE 6325–63–P                                  at its convenience from this Web site.                    Title II of the Unfunded Mandates
                                                                                                        All comments must include the agency                   Reform Act of 1995 (UMRA), establishes
                                                                                                        name and docket number or Regulatory                   requirements for Federal agencies to
                                                DEPARTMENT OF AGRICULTURE                               Information Number (RIN) for this rule.                assess the effects of their regulatory
                                                                                                        For detailed instructions on submitting                actions on State, local, and tribal
                                                Federal Crop Insurance Corporation                      comments and additional information,                   governments and the private sector.
                                                                                                        see http://www.regulations.gov. If                     This rule contains no Federal mandates
                                                7 CFR part 457                                          interested persons are submitting                      (under the regulatory provisions of title
                                                                                                        comments electronically through the                    II of the UMRA) for State, local, and
                                                [Docket No. FCIC–15–0002]                               Federal eRulemaking Portal and want to                 tribal governments or the private sector.
                                                RIN 0563–AC48                                           attach a document, FCIC requests use of                Therefore, this rule is not subject to the
                                                                                                        a text-based format. If interested persons             requirements of sections 202 and 205 of
                                                Common Crop Insurance Regulations;                      wish to attach a document that is a                    UMRA.
                                                Texas Citrus Fruit Crop Insurance                       scanned Adobe PDF file, it must be
                                                Provisions                                                                                                     Executive Order 13132
                                                                                                        scanned as text and not as an image,
                                                                                                        thus allowing FCIC to search and copy                    It has been determined under section
                                                AGENCY:  Federal Crop Insurance                                                                                1(a) of Executive Order 13132,
                                                Corporation, USDA.                                      certain portions of the submissions. For
                                                                                                        questions regarding attaching a                        Federalism, that this rule does not have
                                                ACTION: Proposed rule.                                                                                         sufficient implications to warrant
                                                                                                        document that is a scanned Adobe PDF
                                                                                                        file, please contact the RMA Web                       consultation with the States. The
                                                SUMMARY:    The Federal Crop Insurance
                                                                                                        Content Team at (816) 823–4694 or by                   provisions contained in this rule will
                                                Corporation (FCIC) proposes to amend
                                                                                                        email at rmaweb.content@rma.usda.gov.                  not have a substantial direct effect on
                                                the Common Crop Insurance                                                                                      States, or on the relationship between
                                                Regulations, Texas Citrus Fruit Crop                       Privacy Act: Anyone is able to search
                                                                                                        the electronic form of all comments                    the national government and the States,
                                                Insurance Provisions. The intended                                                                             or on the distribution of power and
                                                effect of this action is to provide policy              received for any dockets by the name of
                                                                                                        the person submitting the comment (or                  responsibilities among the various
                                                changes to better meet the needs of                                                                            levels of government.
                                                policyholders, to clarify existing policy               signing the comment, if submitted on
                                                provisions, and to reduce vulnerability                 behalf of an association, business, labor              Executive Order 13175
                                                to program fraud, waste, and abuse.                     union, etc.). Interested persons may
                                                                                                        review the complete User Notice and                      This rule has been reviewed in
                                                Specifically, this proposed rule intends                                                                       accordance with the requirements of
                                                to modify or clarify certain definitions,               Privacy Notice for Regulations.gov at
                                                                                                                                                               Executive Order 13175, Consultation
                                                clarify unit establishment, clarify                     http://www.regulations.gov/
                                                                                                                                                               and Coordination with Indian Tribal
                                                substantive provisions for consistency                  #!privacyNotice.
                                                                                                                                                               Governments. The review reveals that
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                                                with terminology changes, modify the                    FOR FURTHER INFORMATION CONTACT: Tim                   this regulation will not have substantial
                                                insured causes of loss, clarify required                Hoffmann, Director, Product                            and direct effects on Tribal governments
                                                timing for loss notices, modify portions                Administration and Standards Division,                 and will not have significant Tribal
                                                of loss calculation formulas, and                       Risk Management Agency, United States                  implications.
                                                address potential misinterpretations or                 Department of Agriculture, Beacon
                                                ambiguity related to these issues. The                  Facility, Stop 0812, Room 421, P.O. Box                Regulatory Flexibility Act
                                                proposed changes will be effective for                  419205, Kansas City, MO 64141–6205,                      FCIC certifies that this regulation will
                                                the 2018 and succeeding crop years.                     telephone (816) 926–7730.                              not have a significant economic impact


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                                                1338                    Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules

                                                on a substantial number of small                        Environmental Assessment nor an                        ACRSI goal of relieving producers of the
                                                entities. Program requirements for the                  Environmental Impact Statement is                      burden of reporting the same
                                                Federal crop insurance program are the                  needed.                                                information multiple times to different
                                                same for all producers regardless of the                                                                       USDA agencies. The addition of the
                                                                                                        Background
                                                size of their farming operation. For                                                                           term ‘‘citrus fruit group’’ is intended to
                                                instance, all producers are required to                    FCIC proposes to amend the Common                   negate the impact of changes to ‘‘citrus
                                                submit an application and acreage                       Crop Insurance Regulations (7 CFR part                 fruit commodity’’ names on coverage
                                                report to establish their insurance                     457) by revising 7 CFR 457.119 Texas                   levels, unit structure, and
                                                guarantees and compute premium                          Citrus Fruit Crop Insurance Provisions,                administrative fees. The ‘‘citrus fruit
                                                amounts, and all producers are required                 to be effective for the 2018 and                       groups’’ for each ‘‘citrus fruit
                                                to submit a notice of loss and                          succeeding crop years. Changes are                     commodity’’ will be listed in the Special
                                                production information to determine the                 intended to improve the insurance                      Provisions. The ‘‘citrus fruit groups’’
                                                amount of an indemnity payment in the                   coverage offered, address program                      will be the basis for determining
                                                event of an insured cause of crop loss.                 integrity issues, simplify program                     coverage levels and identifying the
                                                Whether a producer has 10 acres or                      administration, and improve clarity of                 insured crop. These proposed changes
                                                1000 acres, there is no difference in the               the policy provisions. Specifically, this              are not expected to change the current
                                                kind of information collected. To ensure                proposed rule intends to modify or                     basis by which coverage levels are
                                                crop insurance is available to small                    clarify certain definitions, clarify unit              selected, basic units are established, and
                                                entities, the Federal Crop Insurance Act                establishment, clarify substantive                     administrative fees are assessed.
                                                authorizes FCIC to waive collection of                  provisions for consistency with                           For consistency with ACRSI
                                                administrative fees from limited                        terminology changes, modify the                        objectives, FCIC proposes to expand the
                                                resource farmers. FCIC believes this                    insured causes of loss, clarify required               category of ‘‘type’’ in the actuarial
                                                waiver helps to ensure that small                       timing for loss notices, modify portions               documents to include four subcategories
                                                entities are given the same opportunities               of loss calculation formulas, and                      named ‘‘commodity type,’’ ‘‘class,’’
                                                as large entities to manage their risks                 address potential misinterpretations or                ‘‘subclass,’’ and ‘‘intended use.’’ FCIC is
                                                through the use of crop insurance. A                    ambiguity related to these issues.                     also planning to expand the category of
                                                                                                           Some of the proposed changes result                 ‘‘practice’’ in the actuarial documents to
                                                Regulatory Flexibility Analysis has not
                                                                                                        from the United States Department of                   include four subcategories named
                                                been prepared since this regulation does
                                                                                                        Agriculture (USDA) Acreage Crop                        ‘‘cropping practice,’’ ‘‘organic practice,’’
                                                not have a significant impact on a
                                                                                                        Reporting Streamlining Initiative                      ‘‘irrigation practice,’’ and ‘‘interval.’’
                                                substantial number of small entities,
                                                                                                        (ACRSI), which has an objective of                     Proposed changes to the Texas Citrus
                                                and, therefore, this regulation is exempt               using common standardized data and
                                                from the provisions of the Regulatory                                                                          Fruit Crop Insurance Provisions, such as
                                                                                                        terminology to consolidate and simplify                replacing references to the term ‘‘type’’
                                                Flexibility Act (5 U.S.C. § 605).                       reporting requirements for producers.                  with the term ‘‘commodity type’’ will
                                                Federal Assistance Program                              Specifically, ACRSI is an initiative to                provide a method for this transition.
                                                  This program is listed in the Catalog                 reengineer the procedures, processes,                     The proposed changes are as follows:
                                                of Federal Domestic Assistance under                    and standards to simplify commodity,                      1. FCIC proposes to remove the
                                                No. 10.450.                                             acreage, and production reporting by                   paragraph immediately preceding
                                                                                                        producers, eliminate or minimize                       section 1, which refers to the order of
                                                Executive Order 12372                                   duplication of information collection by               priority if a conflict exists among the
                                                  This program is not subject to the                    multiple agencies, and reduce the                      policy provisions. This same provision
                                                provisions of Executive Order 12372,                    burden on producers, allowing the                      is contained in the Basic Provisions.
                                                which requires intergovernmental                        producers to report this information                   Therefore, the appearance here is
                                                consultation with State and local                       through FSA county office service                      duplicative and should be removed
                                                officials. See 2 CFR part 415, subpart C.               centers, insurance agents or through                   from the Texas Citrus Fruit Crop
                                                                                                        precision agriculture technology                       Insurance Provisions.
                                                Executive Order 12988                                   capabilities. USDA has made a                             FCIC proposes to remove all
                                                   This rule has been reviewed in                       concerted effort to standardize terms                  references to section titles of the Basic
                                                accordance with Executive Order 12988                   across USDA agencies as much as                        Provisions used in the Texas Citrus
                                                on civil justice reform. The provisions                 possible to allow the sharing of data,                 Fruit Crop Insurance Provisions, while
                                                of this rule will not have a retroactive                thereby reducing the burden on                         retaining the section numbers. The
                                                effect. The provisions of this rule will                producers in reporting their                           section titles are not necessary to
                                                preempt State and local laws to the                     information. Many of the changes                       reference the section and removing
                                                extent such State and local laws are                    proposed in this rule are a part of that               these titles will prevent FCIC from
                                                inconsistent herewith. With respect to                  effort. For example, as part of ACRSI,                 having to revise the Crop Provisions
                                                any direct action taken by FCIC or                      FCIC is proposing to change the term                   should these section titles change in the
                                                action by FCIC directing the insurance                  ‘‘crop’’ to ‘‘citrus fruit commodity’’ and             Basic Provisions. This information
                                                provider to take specific action under                  to rename the ‘‘citrus fruit                           proposed to be removed is currently
                                                the terms of the crop insurance policy,                 commodities’’ to be consistent with the                contained in parenthesis following
                                                the administrative appeal provisions                    crop names used by other USDA                          references to section numbers of the
                                                published at 7 CFR part 11 must be                      agencies. FCIC has been working with                   Basic Provisions throughout the Texas
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                                                exhausted before any action against                     other USDA agencies to agree on                        Citrus Fruit Crop Insurance Provisions.
                                                FCIC for judicial review may be brought.                appropriate terminology for crop                          2. Section 1 (‘‘Definitions’’)—FCIC
                                                                                                        reporting. These terms are part of a                   proposes to remove the definition of
                                                Environmental Evaluation                                Commodity Validation Table that is                     ‘‘crop’’ and replace it with a definition
                                                  This action is not expected to have a                 updated as these terms are agreed upon.                of ‘‘citrus fruit commodity’’ because the
                                                significant economic impact on the                      This change will help facilitate                       actuarial documents refer to
                                                quality of the human environment,                       information sharing among agencies, a                  commodities rather than crops. FCIC
                                                health, or safety. Therefore, neither an                step that is necessary to achieve an                   proposes to replace the term ‘‘crop’’


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                                                                               Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules                                                                                 1339

                                                with the term ‘‘insured crop’’ where                                  reporting. These terms are part of a                                      terminology. However, the citrus fruit
                                                appropriate throughout the Crop                                       Commodity Validation Table that is                                        group concept is being implemented to
                                                Provisions. The insured crop will be                                  updated as these terms are agreed upon.                                   prevent changes to how the crop can be
                                                based on the ‘‘citrus fruit group’’ in                                This proposed change in terminology                                       insured. For example, this change will
                                                accordance with the proposed revisions                                does not change the varieties of citrus                                   allow producers who report Valencia
                                                to section 7. FCIC proposes to include                                that are insurable.                                                       oranges with an intended use of juice
                                                the ‘‘citrus fruit commodity’’ names in                                  FCIC proposes to add the definition of                                 and Navel oranges with an intended use
                                                the definition to enable the insured to                               ‘‘citrus fruit group.’’ The term ‘‘citrus                                 of fresh to continue to insure these as
                                                more easily determine the citrus fruit                                fruit group’’ refers to a method of                                       separate crops even though they will
                                                commodities that are insurable under                                  grouping combinations of commodity                                        both be categorized for reporting under
                                                the Texas Citrus Fruit Crop Insurance                                 types and intended uses within the                                        the commodity of oranges.
                                                Provisions. The new ‘‘citrus fruit                                    citrus fruit commodity through the                                           FCIC proposes to add the definition of
                                                commodity’’ names will combine                                        Special Provisions for the purposes of                                    ‘‘commodity type’’ because this is a new
                                                several current ‘‘crops’’ into a single                               electing coverage levels and                                              category that will be added to the
                                                ‘‘citrus fruit commodity.’’ For example,                              determining the insured crop, which is                                    actuarial documents for citrus fruit
                                                the current crops ‘‘Early & Midseason                                 the basis for establishing basic units,                                   commodities for the 2018 crop year.
                                                Oranges’’ and ‘‘Late Oranges’’ will                                   guarantees, and assessing administrative                                  Commodity type will initially be
                                                become insurable types under the new                                  fees. FCIC proposes this change because                                   displayed in the actuarial documents as
                                                ‘‘citrus fruit commodity’’ of ‘‘oranges.’’                            of ACRSI. Because producers will be                                       a subcategory of type. The expected
                                                FCIC proposes this change because of                                  reporting using the terminology                                           combinations of commodity types and
                                                ACRSI. FCIC has been working with                                     contained in the Commodity Validation                                     intended uses will be grouped into
                                                other USDA agencies to agree on                                       Table, FCIC has changed the commodity                                     citrus fruit groups as shown in the table
                                                appropriate terminology for crop                                      names to match this agreed upon                                           below.

                                                         Citrus fruit commodity                                   Commodity type                                          Intended use                                   Citrus fruit group

                                                Grapefruit .......................................   Rio Red & Star Ruby ....................               Fresh   .............................................   A.
                                                Grapefruit .......................................   Rio Red & Star Ruby ....................               Juice   .............................................   A.
                                                Grapefruit .......................................   Ruby Red ......................................        Fresh   .............................................   B.
                                                Grapefruit .......................................   Ruby Red ......................................        Juice   .............................................   B.
                                                Grapefruit .......................................   All Other ........................................     Fresh   .............................................   C.
                                                Grapefruit .......................................   All Other ........................................     Juice   .............................................   C.
                                                Oranges .........................................    Early & Midseason .......................              Fresh   .............................................   D.
                                                Oranges .........................................    Early & Midseason .......................              Juice   .............................................   D.
                                                Oranges .........................................    Late ...............................................   Fresh   .............................................   E.
                                                Oranges .........................................    Late ...............................................   Juice   .............................................   E.



                                                   FCIC proposes to revise the definition                             contained in the Florida Citrus Fruit                                     insured crop or uninsured agricultural
                                                of ‘‘excess wind’’ by: Specifying the                                 Crop Insurance Provisions.                                                commodity, regardless of whether or not
                                                equivalent wind speed in knots;                                          FCIC proposes to revise the definition                                 the additional insured crop or
                                                clarifying wind speed reporting at U.S.                               of ‘‘interplanted’’ to specify that the                                   uninsured agricultural commodity is
                                                National Weather Service (NWS)                                        Crop Provisions definition is used in                                     insurable under the Texas Citrus Fruit
                                                reporting stations; and adding a clause                               lieu of the Basic Provisions definition.                                  Crop Insurance Provisions or any other
                                                to allow additional acceptable wind                                   In the revised definition, FCIC proposes                                  Crop Provisions.
                                                reporting stations to be identified in the                            to change the term ‘‘crop’’ to                                              FCIC proposes to remove the
                                                Special Provisions. FCIC proposes these                               ‘‘agricultural commodity.’’ Agricultural                                  definition of ‘‘local market price.’’ FCIC
                                                changes to provide clarity and add                                    commodity is currently defined in the                                     proposes to remove this definition
                                                flexibility to use other weather reporting                            Basic Provisions as any crop or other                                     because FCIC proposes to remove the
                                                stations if additional data points are                                commodity produced, regardless of                                         only reference to local market price in
                                                needed in the future.                                                 whether or not it is insurable. As stated                                 the Texas Citrus Fruit Crop Provisions,
                                                   FCIC proposes to add a definition of                               previously, FCIC is changing the term                                     contained in paragraph 12(e).
                                                ‘‘intended use.’’ Currently, insureds can                             ‘‘crop’’ to ‘‘insured crop’’ as appropriate                                 FCIC proposes to revise the definition
                                                select between the two types of fresh                                 throughout the Crop Provisions.                                           of ‘‘production guarantee (per acre)’’ to
                                                and juice. For the 2018 crop year, the                                However, for the definition of                                            clarify that the Crop Provisions
                                                type category in the actuarial documents                              interplanted acreage, changing ‘‘crop’’ to                                definition is used in lieu of the Basic
                                                will be expanded to include                                           ‘‘insured crop’’ would change the                                         Provisions definition. The Basic
                                                subcategories for ‘‘commodity type,’’                                 meaning of the provision by preventing                                    Provisions contains a different
                                                ‘‘class,’’ ‘‘subclass,’’ and ‘‘intended                               interplanted from applying to insurable                                   definition of ‘‘production guarantee (per
                                                use.’’ Insureds will continue to be able                              crops interplanted with agricultural                                      acre)’’ and the Crop Provisions
                                                to select types for fresh and juice, but                              commodities not insured under the                                         definition has already replaced that
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                                                the intended use will be specified in                                 Texas Citrus Fruit Crop Provisions.                                       definition, but this additional language
                                                both the type category and the new                                    Therefore, FCIC proposes to change the                                    confirms that interpretation. FCIC also
                                                intended use category. This change only                               term ‘‘crop’’ to ‘‘agricultural                                           proposes to clarify this ‘‘production
                                                affects how they types are presented in                               commodity’’ in the definition of                                          guarantee (per acre)’’ definition in the
                                                the actuarial documents and will not                                  interplanted acreage. This proposed                                       Crop Provisions by specifying that
                                                affect available coverage or reporting                                change will allow ‘‘interplanted’’ to                                     requirements of section 3(e) determine
                                                requirements. The proposed definition                                 apply to acreage in which an insured                                      the yield used for calculating the
                                                is consistent with the definition                                     crop is interplanted with another                                         production guarantee.


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                                                1340                    Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules

                                                   FCIC proposes to remove the                          unit is located on non-contiguous land.’’              Crop Insurance Provisions because there
                                                definition of ‘‘varieties’’ because all                 See 62 FR 65,130, 65,169 (Dec. 10,                     are only two stages and the terms are
                                                references to the term are proposed for                 1997). This omission by the official                   used interchangeably. Therefore, FCIC
                                                removal and replacement with the term                   Code of Federal Regulations could                      proposes to remove the term ‘‘final’’ to
                                                ‘‘commodity type’’ in the Crop                          contribute to this potential                           prevent potential confusion if the terms
                                                Provisions.                                             misinterpretation that FCIC proposes to                ‘‘second’’ and ‘‘final’’ are erroneously
                                                   3. Section 2 (‘‘Unit Division’’)—FCIC                correct.                                               perceived to have different meanings.
                                                proposes to revise paragraph 2(a) to                       4. Section 3 (‘‘Insurance Guarantees,                  FCIC proposes to revise paragraph
                                                state that basic units will be established              Coverage Levels, and Prices for                        3(d) by removing the term ‘‘type’’ and
                                                for each insured crop in accordance                     Determining Indemnities’’)—FCIC                        replacing the term ‘‘type’’ with the
                                                with section 1 of the Basic Provisions.                 proposes to revise paragraph 3(a) by                   phrase ‘‘commodity type and intended
                                                The definition of basic unit in section 1               adding language to allow the insured to                use.’’ This change will provide
                                                of the Basic Provisions states that basic               continue selecting separate coverage                   consistency with the terminology
                                                units include all insurable acreage of the              levels and price elections by insured                  revisions implemented to further ACRSI
                                                insured crop in the county on the date                  crop (i.e., citrus fruit group) under the              goals. FCIC proposes to revise
                                                coverage begins for the crop year: (1) In               new definitions. For example, under the                paragraphs 3(d)(4) and 3(d)(4)(i) by
                                                which you have 100 percent crop share;                  new designation of citrus fruit                        removing references to ‘‘perennial crop’’
                                                or (2) which is owned by one person                     commodity oranges, all early and                       and ‘‘crop’’ and replacing these terms
                                                and operated by another person on a                     midseason oranges will be further                      with the term ‘‘agricultural
                                                share basis. Separate basic units will be               classified together as one citrus fruit                commodity.’’ This change will provide
                                                established for each citrus fruit group                 group which requires the insured to                    consistency with the proposed changes
                                                because FCIC proposes to treat each                     select the same coverage level and                     to the definition of ‘‘interplanted.’’ The
                                                citrus fruit group as a separate insured                percent of price election for all fruit                proposed change will allow the term
                                                crop. For example, under the new citrus                 insured under this citrus fruit group.                 ‘‘interplanted’’ to apply to acreage in
                                                fruit commodity of oranges, all early                   Under the new designation of citrus                    which an insured crop under these Crop
                                                and midseason oranges will be further                   fruit commodity oranges, late oranges                  Provisions (e.g., citrus fruit group) is
                                                classified under one citrus fruit group                 will be further classified under a                     interplanted with another insured crop
                                                and all late oranges will be further                    separate citrus fruit group, which will                or uninsured agricultural commodity,
                                                classified under another citrus fruit                   allow the insured to continue selection                regardless of whether or not the other
                                                group. These designations mean all of                   of a different coverage level and percent              agricultural commodity is insurable
                                                the insured’s early and midseason                       of price election than selected for its                under the Texas Citrus Fruit Crop
                                                orange acreage can be insured as one                    early and midseason orange acreage.                    Insurance Provisions or any other Crop
                                                basic unit and all of the insured late                  These terminology revisions will allow                 Provisions.
                                                orange acreage can be insured as a                      the insured to continue electing                          FCIC proposes to designate the
                                                separate basic unit. This proposed                      coverage levels and price elections on                 undesignated paragraph following
                                                change in terminology will allow                        the same basis as they currently elect                 paragraph 3(d)(4)(iii) as paragraph 3(e)
                                                insureds to keep their current unit                     coverage levels and price elections,                   and redesignate paragraphs 3(e) and 3(f)
                                                structure under the new classification                  while continuing to further ACRSI                      as paragraphs 3(f) and 3(g). FCIC
                                                system.                                                 goals. FCIC also proposes to update the                proposes to revise newly designated
                                                   FCIC proposes to revise paragraph                    example in paragraph 3(a) for                          paragraph 3(e) to specify the yield
                                                2(c) to state that optional units may be                consistency with these proposed                        adjustment timing and method used, if
                                                established by either of the following                  changes.                                               circumstances occur that may reduce
                                                options, but not both options: (1) In                      FCIC proposes to revise paragraph                   the yield potential, based on when the
                                                accordance with Section 34(c) of the                    3(b) by removing the instructions for                  circumstance occurred. The current
                                                Basic Provisions, except as provided in                 calculating the production guarantee per               provision states that the Approved
                                                section 2(b) of these Crop Provisions; or               acre from paragraphs 3(b)(1) and 3(b)(2).              Insurance Provider will reduce the yield
                                                (2) non-contiguous land. FCIC proposes                  FCIC proposes this change because the                  used to establish the production
                                                this revision to clarify that the insured               same information is already contained                  guarantee, but does not explicitly
                                                has a choice of optional units as allowed               in the definition of ‘‘production                      provide additional explanation for
                                                by the Basic Provisions (except irrigated               guarantee (per acre).’’ Removing these                 timing and method of certain specific
                                                or non-irrigated practices) or by non-                  instructions from 3(b)(1) and 3(b)(2) will             circumstances. The proposed paragraph
                                                contiguous land. As currently worded,                   prevent perceived conflict between                     3(e)(1) addresses circumstances that
                                                the provision could be misinterpreted to                these provisions and that definition                   occurred before the beginning of the
                                                mean that optional units as allowed in                  because the information contained in                   insurance period and requires reduction
                                                the Basic Provisions are not allowed                    paragraphs 3(b)(1) and 3(b)(2) for                     of the yield used to establish the
                                                under the Texas Citrus Fruit Crop                       calculating the production guarantee                   production guarantee for the current
                                                Insurance Provisions. In addition, the                  was intended as duplicative, yet is                    crop year regardless of whether the
                                                official Code of Federal Regulations                    stated differently than the information                circumstance was due to an insured or
                                                publication appears to have                             contained in the definition of                         uninsured cause of loss and requires the
                                                inadvertently omitted the following                     ‘‘production guarantee (per acre).’’ FCIC              Insured to report these circumstances
                                                language from the existing version that                 also proposes to revise paragraph 3(b) to              that occurred prior to the insurance
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                                                appeared in the applicable Federal                      state that the production guarantee is                 period no later than the production
                                                Register Notice establishing this                       progressive and increases from the first               reporting date. The proposed paragraph
                                                language: The words ‘‘. . . optional                    stage to the second stage guarantee.                   3(e)(2) addresses circumstances that
                                                units may be established if each . . .’’                FCIC also proposes to remove the term                  occurred after the beginning of the
                                                should have previously appeared                         ‘‘final,’’ and leave only the term                     insurance period and the insured
                                                immediately following the word                          ‘‘second,’’ in paragraph 3(b)(2). Both                 notifies the Approved Insurance
                                                ‘‘number,’’ and immediately before the                  final stage and second stage have the                  Provider of these circumstances by the
                                                provision ending phrase, ‘‘. . . optional               same meaning in the Texas Citrus Fruit                 production reporting date. The


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                                                                        Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules                                            1341

                                                proposed paragraph 3(e)(2) will require                 because of revisions to commodity                      ineffective, or causes disease or insect
                                                the yield used to establish the                         names. This change will also allow the                 infestation for which no effective
                                                production guarantee to be reduced for                  insured to continue to elect to insure                 control mechanism is available. For
                                                the current crop year only if the                       some citrus acreage and not insure other               Texas citrus fruit, the language
                                                potential reduction in the yield used to                citrus acreage on the same basis as is                 contained in paragraph 10(b)(1) requires
                                                establish the production guarantee is                   currently allowed.                                     a determination that can be difficult to
                                                due to an uninsured cause of loss. The                     FCIC proposes to revise the newly                   make with regard to whether an
                                                proposed paragraph 3(e)(3) addresses                    designated paragraph 7(a)(2) to clarify                underlying cause of loss prevented the
                                                circumstances that may reduce the yield                 that the insured crop must be grown on                 proper application of control measures,
                                                that occurred after the beginning of the                trees adapted to the area. The current                 caused properly applied control
                                                insurance period and the insured fails to               provision states the acreage must be                   measures to be ineffective, or caused a
                                                notify the Approved Insurance Provider                  adapted to the area. However, the trees                disease or insect infestation for which
                                                of these circumstances by the                           on which the insured crop is grown                     no effective control mechanism is
                                                production reporting date. The                          must be adapted to the area.                           available. The proposed change removes
                                                proposed paragraph 3(e)(3) requires an                     FCIC proposes to revise the newly                   this language and provides more
                                                amount equal to the reduction in the                    designated paragraph 7(a)(3) by                        comprehensive coverage for citrus
                                                yield to be added to the production to                  removing the term ‘‘are’’ and adding the               growers. This proposed change is
                                                count calculated in paragraph 12(c) of                  term ‘‘is’’ in its place. FCIC proposes                similar to changes FCIC has made to
                                                these Crop Provisions due to uninsured                  this change to maintain verb usage                     other perennial APH policies, such as
                                                causes. Additionally, the proposed                      consistent with the language in newly                  the Arizona-California Citrus Crop
                                                paragraph 3(e)(3) requires reduction of                 redesignated paragraph 7(a).                           Insurance Provisions, as they have been
                                                the yield used to establish the                            FCIC proposes to add a new                          revised.
                                                production guarantee for the subsequent                 paragraph 7(b) to clarify assessment of                   The proposed language provides FCIC
                                                crop year to reflect any reduction in the               administrative fees. FCIC has received                 with greater flexibility to exclude or
                                                productive capacity of the trees or the                 requests to clarify how administrative                 restrict coverage through the Special
                                                yield potential of the insured acreage.                 fees are assessed in the Crop Provisions.              Provisions. This greater flexibility is
                                                These provisions are similar to                         Because each citrus fruit group will be                intended to protect program integrity
                                                provisions that FCIC has recently added                 designated as a separate insured crop,                 and insured interests by allowing FCIC
                                                to other perennial crop policies, such as               each citrus fruit group will be assessed               to exclude or restrict coverage for
                                                the Arizona-California Citrus Crop                      a separate administrative fee in                       certain diseases for which limited
                                                Insurance Provisions. Adding these                      accordance with section 7 of the Basic                 controls or mitigation practices are
                                                provisions is intended to remove                        Provisions and section 6 of the                        available. For example, FCIC plans to
                                                potential ambiguity regarding the                       Catastrophic Risk Protection                           exclude citrus greening (Huanglongbing)
                                                consequences when circumstances                         Endorsement.                                           from coverage through the Special
                                                occur that will reduce the yield                           6. Section 8 (‘‘Insurable Acreage’’)—               Provisions. However, FCIC seeks input
                                                potential and to promote consistency                    FCIC proposes to revise section 8 by                   from interested persons regarding
                                                with administration of similar policies                 adding the words ‘‘fruit group’’                       exclusion of coverage for this disease
                                                such as the Arizona-California Citrus                   immediately following the word                         through the Special Provisions.
                                                Crop Insurance Provisions.                              ‘‘citrus’’ and removing references to the                 Citrus greening is a deadly bacterial
                                                   FCIC proposes to revise newly                        term ‘‘crop’’ and replacing them with                  disease that can infect nearly all citrus
                                                designated paragraph 3(g) by removing                   the term ‘‘agricultural commodity,’’                   species (Chung, K–R., and R. H.
                                                the reference to ‘‘one-year lag period.’’               except FCIC will replace the first                     Brlansky. ‘‘Citrus diseases exotic to
                                                The phrase is not necessary to describe                 instance of ‘‘crop’’ appearing in section              Florida: Huanglongbing (citrus
                                                when production must be reported.                       8 with ‘‘insured crop.’’ These changes                 greening).’’ (2009).). The bacteria
                                                Therefore, FCIC proposes to delete this                 will provide consistency with the                      disrupts the vascular system of the trees
                                                reference to prevent confusion regarding                proposed changes to the definition of                  and eventually leads to tree death
                                                production reporting. FCIC also                         ‘‘interplanted.’’ FCIC also proposes to                (Jagoueix, Sandrine, Joseph Marie Bové,
                                                proposes to update the example in this                  add language to clarify interplanted                   and Monique Garnier. ‘‘PCR detection of
                                                paragraph with contemporary dates.                      acreage is not insurable unless a citrus               the two <<Candidatus>> liberobacter
                                                This proposed change is intended to                     fruit group is interplanted with another               species associated with greening disease
                                                prevent the policy from appearing                       perennial agricultural commodity.                      of citrus.’’ Molecular and cellular probes
                                                outdated. FCIC also proposes to revise                     7. Section 10 (‘‘Causes of Loss’’)—                 10.1 (1996): 43–50.). Currently, no
                                                the sentence structure of this provision                FCIC proposes to add provisions in                     known adequate cure exists for citrus
                                                to provide clarity and consistency with                 paragraph 10(a) that allow insects and                 greening (Kobori, Youichi, et al.
                                                similar provisions in these Crop                        disease as insurable causes of loss                    ‘‘Dispersal of adult Asian citrus psyllid,
                                                Provisions that are used in lieu of the                 unless excluded or otherwise restricted                Diaphorina citri Kuwayama
                                                Basic Provisions.                                       through the Special Provisions,                        (Homoptera: Psyllidae), the vector of
                                                   5. Section 7 (‘‘Insured Crop’’)—FCIC                 provided production losses are not due                 citrus greening disease, in artificial
                                                proposes to redesignate the introductory                to damage resulting from insufficient or               release experiments.’’ Applied
                                                paragraph of section 7 as paragraph (a)                 improper application of control                        entomology and zoology 46.1 (2011):
                                                and redesignate paragraphs 7(a) through                 measures recommended by agricultural                   27–30.). Trees infected with citrus
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                                                7(f) as 7(a)(1) through 7(a)(6). FCIC                   experts. FCIC proposes to remove the                   greening exhibit symptoms that include
                                                proposes to revise the newly designated                 provisions in paragraph 10(b)(1) that                  blotchy yellow leaves and misshapen,
                                                paragraph (a) by revising language to                   only provide coverage against damage or                poorly developed green fruit with
                                                designate the insured crop as each                      loss of production due to insects and                  aborted seeds and bitter taste (Graca, JV
                                                ‘‘citrus fruit group’’ the insured elects to            disease if an insurable cause of loss                  da. ‘‘Citrus greening disease.’’ Annual
                                                insure. This change in section 7 is                     prevents the proper application of                     Review of Phytopathology 29.1 (1991):
                                                necessary to prevent changes to                         control measures, causes properly                      109–136.). However, identification of
                                                assessment of administrative fees                       applied control measures to be                         the disease can be difficult because


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                                                1342                    Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules

                                                symptoms resemble nutrient                              Florida citrus pest management guide:                  coverage level was selected. In addition,
                                                deficiencies (Li, Wenbin, John S.                       Huanglongbing (citrus greening).’’ UF/                 even if events happened in successive
                                                Hartung, and Laurene Levy.                              IFAS Extension (2012).). The Asian                     years, the Crop Provisions also
                                                ‘‘Quantitative real-time PCR for                        citrus psyllid was first detected in Texas             authorize underwriting controls that
                                                detection and identification of                         in 2001 (French, J. V., C. J. Kahlke, and              require acreage adjustment when trees
                                                Candidatus Liberibacter species                         J. V. Da Graça. ‘‘First record of the Asian           are removed or the guarantee to be
                                                associated with citrus huanglongbing.’’                 citrus psylla, Diaphorina citri                        reduced for existing damage. These
                                                Journal of microbiological methods 66.1                 Kuwayama (Homoptera: Psyllidae) in                     underwriting controls would likely
                                                (2006): 104–115.).                                      Texas.’’ Subtropical Plant Science 53                  prevent or reduce losses due to citrus
                                                   Citrus greening is vectored by the                   (2001): 14–15.). The presence of the                   greening from exceeding the deductible
                                                Asian citrus psyllid (Diaphorina citri)                 psyllid in Texas has resulted in                       in most situations. Although it may be
                                                (French, J. V., C. J. Kahlke, and J. V. Da              quarantines restricting movement of                    possible, under some circumstances,
                                                Graça. ‘‘First record of the Asian citrus              citrus plant material and citrus nursery               that indemnities due to citrus greening
                                                psylla, Diaphorina citri Kuwayama                       stock. Citrus greening research is                     could be triggered, the current policy
                                                (Homoptera: Psyllidae) in Texas.’’                      currently occurring, including 2014                    provides subjective or little assurance of
                                                Subtropical Plant Science 53 (2001): 14–                Farm Bill funding which authorized                     protection against citrus greening for the
                                                15.). There are pesticides available that,              approximately $125 million of the                      reasons stated above.
                                                if applied correctly, can help minimize                 USDA Specialty Crop Research                             When changes to the Texas Citrus
                                                the spread of the disease by controlling                Initiative toward citrus health research               Fruit Crop Provisions are finalized,
                                                the psyllid (Grafton-Cardwell, Elizabeth                over the next five years. USDA Farm                    FCIC intends to conduct a full rate
                                                E., Lukasz L. Stelinski, and Philip A.                  Service Agency (FSA) does currently                    review to examine the impact of all
                                                Stansly. ‘‘Biology and management of                    provide assistance to cover the                        policy changes combined with past loss
                                                Asian citrus psyllid, vector of the                     replacement and establishment of                       experience, which could increase or
                                                huanglongbing pathogens.’’ Annual                       infected trees through its Tree                        decrease premium rates. However, if the
                                                review of entomology 58 (2013): 413–                    Assistance Program.                                    proposed language covered citrus
                                                432.). Properly applied pesticides may                     The current Texas Citrus Fruit Crop                 greening, FCIC would likely have to
                                                be the best current option growers have                 Insurance Provisions may appear to                     increase premium rates to account for
                                                to help minimize the spread of the                      provide some level of protection against               this risk, with additional rate increases
                                                disease. However, even if pesticides are                production loss from citrus greening,                  possible based on loss experience to
                                                applied properly and infected trees are                 but the current policy is unlikely to                  maintain actuarial soundness under
                                                removed from commercial orchards,                       allow loss payment for citrus greening.                section 506(n)(2) (7 U.S.C. 1506(n)(2)) of
                                                there are other factors that make control               The current policy language requires                   the Federal Crop Insurance Act (FCIA or
                                                and eradication of the disease                          linkage of production loss from insects                the Act). The benefit of the coverage
                                                problematic. Disease control is                         and disease to another underlying                      may not be perceived by growers to be
                                                complicated by delay of disease                         covered cause of loss. For example, a                  worth the additional premium cost
                                                symptom appearance in infected trees                    hurricane may occur that could prevent                 because underwriting controls necessary
                                                (Stokstad, Erik. ‘‘Dread citrus disease                 or otherwise negatively impact control                 to protect program integrity are unlikely
                                                turns up in California, Texas.’’ Science                measures by spreading the disease to                   to allow citrus greening indemnities in
                                                336.6079 (2012): 283–284.). Therefore, a                outbreak levels. However, it is unlikely               most scenarios. Consequently, allowing
                                                tree may be infected and the disease                    that citrus greening would trigger an                  such coverage may require Approved
                                                may spread to other trees before disease                indemnity under this scenario because                  Insurance Providers to explain
                                                presence is identified. Disease                         citrus greening symptom latency is                     underwriting controls precluding
                                                eradication can be challenging due to                   unlikely to satisfy the policy provision               indemnity payment when the insured
                                                adjacent or nearby abandoned or                         in section 9 of the Crop Provisions                    believed it had coverage against citrus
                                                improperly managed groves, and yard                     allowing an indemnity payment only for                 greening. In addition, if citrus greening
                                                trees in residential areas (Tiwari,                     losses occurring within the insurance                  indemnities became widespread and
                                                Siddharth, et al. ‘‘Incidence of                        period. Therefore, if a hurricane spreads              underwriting controls were insufficient
                                                Candidatus Liberibacter asiaticus                       the disease into a grove and symptoms                  to limit indemnities, premium rates
                                                infection in abandoned citrus occurring                 do not appear until the next crop year,                could increase rapidly. Texas citrus
                                                in proximity to commercially managed                    the current policy would not cover                     producers have expressed concern to
                                                groves.’’ Journal of economic                           production loss because the insured                    FCIC about citrus greening coverage
                                                entomology 103.6 (2010): 1972–1978.).                   cause of loss (i.e., hurricane) that                   contributing to increasing premium
                                                Trees in these areas can serve as                       prevented or impacted control measures                 rates. FCIC plans to exclude citrus
                                                reservoirs for the disease inoculum.                    occurred outside the insurance period                  greening as an insurable cause of loss
                                                Although the Asian citrus psyllid can                   in which production loss occurred.                     through the Special Provisions to
                                                only fly relatively short distances, it can                Specifically, under circumstances that              protect program integrity and prevent
                                                be carried greater distances by wind                    prevented the proper application of                    adverse impacts on the crop insurance
                                                (Hall, D. G., and M. G. Hentz. ‘‘Seasonal               control measures or caused properly                    delivery system for Texas citrus fruit
                                                flight activity by the Asian citrus psyllid             applied control measures to be                         policies.
                                                in east central Florida.’’ Entomologia                  ineffective, it is unlikely that losses in               7. Section 11 (‘‘Duties in the Event of
                                                experimentalis et applicata 139.1                       a given year would exceed the                          Damage or Loss’’)—FCIC proposes to
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                                                (2011): 75–85.). Therefore, extreme                     deductible under the current policy due                revise section 11 by adding a new
                                                wind events such as hurricanes and                      to slow disease progression. For                       paragraph (a), designating the
                                                tornados may also exacerbate the spread                 example, if excess precipitation                       introductory paragraph as (b), and
                                                of citrus greening.                                     prevented or rendered ineffective proper               redesignating paragraphs (a) and (b) as
                                                   Citrus greening was first discovered in              pesticide application, the production                  (b)(1) and (b)(2) respectively. FCIC
                                                Florida in August 2015 and since spread                 loss from trees infected by this event are             proposes the new paragraph (a) to
                                                to nearly all counties in Florida with                  unlikely to exceed the deductible for the              clarify that, in accordance with section
                                                citrus (Brlansky, R. H., et al. ‘‘2006                  current crop year, even if the highest                 14 of the Basic Provisions, the insured


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                                                                        Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules                                                     1343

                                                must leave representative samples for                   applying this adjustment. Fresh and                    part 457 effective for the 2018 and
                                                appraisal purposes. The Basic                           juice are currently type designations in               succeeding crop years as follows:
                                                Provisions stipulate representative                     the actuarial documents. However, for
                                                samples must be left if required by the                 the 2018 crop year for citrus fruit groups             PART 457—COMMON CROP
                                                Crop Provisions or the Special                          insured under the Texas Citrus Fruit                   INSURANCE REGULATIONS
                                                Provisions. Representative samples are                  Crop Insurance Provisions, FCIC plans
                                                                                                                                                               ■ 1. The authority citation for 7 CFR
                                                necessary to appraise damaged                           to expand the type category in the
                                                                                                                                                               part 457 continues to read as follows:
                                                production for indemnity claim                          actuarial documents to include
                                                purposes. FCIC also proposes new                        additional subcategories such as                           Authority: 7 U.S.C. 1506(l), 1506(o).
                                                paragraph (a) will state that in lieu of                commodity type and intended use.                       ■  2. Amend 7 CFR 457.119 as follows:
                                                the requirements of section 14(c)(3) of                 Fresh and juice designations will be                   ■  a. In the introductory text by
                                                the Basic Provisions, the Approved                      contained in the intended use category.                removing ‘‘2000’’ and adding ‘‘2018’’ in
                                                Insurance Provider will determine                          FCIC proposes to revise paragraph                   its place;
                                                which trees must remain unharvested so                                                                         ■ b. By removing the undesignated
                                                                                                        12(e) by removing the fresh fruit
                                                that the Approved Insurance Provider                    terminology and replacing it with the                  paragraph immediately preceding
                                                may inspect these trees in accordance                   intended use of fresh terminology. FCIC                section 1;
                                                with FCIC procedures. Section 14(c)(3)                                                                         ■ c. In section 1:
                                                                                                        proposes this change because the fresh                 ■ i. By adding in alphabetical order the
                                                of the Basic Provisions states that unless              fruit option will be identified in the
                                                otherwise specified in the Crop                                                                                definitions of ‘‘citrus fruit commodity,’’
                                                                                                        actuarial documents under the intended                 ‘‘citrus fruit group,’’ ‘‘commodity type,’’
                                                Provisions or Special Provisions, the                   use category. The fresh fruit option will
                                                samples of the crop in each field in the                                                                       and ‘‘intended use’’;
                                                                                                        be elected by reporting the intended use               ■ ii. By removing the definitions of
                                                unit must be 10 feet wide and extend                    of fresh. Therefore, to provide
                                                the entire length of the rows, if the crop                                                                     ‘‘crop,’’ ‘‘local market price,’’ and
                                                                                                        consistency with terms used in actuarial               ‘‘varieties’’;
                                                is planted in rows, or if the crop is not               documents, FCIC proposes to remove                     ■ iii. In the definition of ‘‘crop year’’ by
                                                planted in rows, the longest dimension                  the fresh fruit terminology and replace
                                                of the field. These requirements in the                                                                        removing the term ‘‘citrus’’ and adding
                                                                                                        this terminology with intended use of                  the term ‘‘insured’’ in its place;
                                                Basic Provisions are not appropriate for                fresh.                                                 ■ iv. In the definition of ‘‘direct
                                                crops insured under these Crop
                                                                                                           FCIC also proposes to revise                        marketing’’ by adding the term
                                                Provisions. Therefore, FCIC intends the
                                                                                                        paragraph 12(e) by revising the                        ‘‘insured’’ directly preceding the term
                                                proposed revision to allow FCIC to issue
                                                                                                        calculation for adjusting production to                ‘‘crop’’ in the second sentence;
                                                crop specific guidance for the insurance
                                                                                                        count for fruit insured as fresh that is               ■ v. In the definition of ‘‘excess rain’’ by
                                                provider to use to instruct the insured
                                                                                                        not marketable as fresh due to insured                 adding the term ‘‘insured’’ directly
                                                on which trees must remain
                                                                                                        causes of loss. The current provision                  preceding the term ‘‘crop’’;
                                                unharvested.                                                                                                   ■ vi. By revising the definitions of
                                                   FCIC proposes to revise the newly                    states to use the local market price for
                                                                                                        the week before damage occurred, but                   ‘‘excess wind,’’ ‘‘interplanted,’’ and
                                                designated paragraph 11(b)(2) to clarify
                                                                                                        does not specify procedures if a local                 ‘‘production guarantee (per acre)’’; and
                                                that if the insured intends to claim an                                                                        ■ d. In section 2 by revising paragraphs
                                                indemnity on any unit, the insured must                 market price is not available. FCIC
                                                                                                        publishes an annual bulletin that                      (a) and (c);
                                                notify the Approved Insurance Provider                                                                         ■ e. In section 3:
                                                at least 15 days prior to the beginning                 provides prices for settling claims
                                                                                                                                                               ■ i. In the introductory paragraph by
                                                of harvest, or within 24 hours if damage                because local market prices are not
                                                                                                        available for a portion of the year when               removing the phrase ‘‘(Insurance
                                                is discovered during harvest, so the                                                                           Guarantees, Coverage Levels, and Prices
                                                Approved Insurance Provider may have                    processing plants are idle. FCIC
                                                                                                        proposes to revise the calculation to                  for Determining Indemnities)’’
                                                an opportunity to inspect the unit. This                                                                       immediately following the words
                                                change provides a required timeframe                    require the number of tons of damaged
                                                                                                        citrus to be multiplied by a Fresh Fruit               ‘‘section 3’’;
                                                for reporting damage and is consistent                                                                         ■ ii. By revising paragraphs (a) and (b);
                                                with revisions to other perennial crop                  Factor contained in the Special
                                                                                                                                                               ■ iii. In paragraph (d) introductory text
                                                policies, such as the Arizona-California                Provisions. The Fresh Fruit Factor will
                                                                                                                                                               by removing the term ‘‘type’’ and adding
                                                Citrus Crop Insurance Provisions.                       represent the ratio of the value of
                                                                                                                                                               the phrase ‘‘commodity type and
                                                   8. Section 12 (‘‘Settlement of                       damaged fruit to the value of
                                                                                                                                                               intended use’’ in its place;
                                                Claim’’)—FCIC proposes to revise                        undamaged fresh fruit. The Fresh Fruit                 ■ iv. In paragraph (d)(4) by removing the
                                                paragraph 12(b) by removing the phrase                  Factor will be determined using                        phrase ‘‘perennial crop, and anytime’’
                                                ‘‘crop, or variety if applicable’’ and                  historical prices and other available data             and replacing it with the phrase
                                                inserting the phrase ‘‘combination of                   as applicable. This proposed change                    ‘‘agricultural commodity and any time’’;
                                                commodity type and intended use’’ in                    will provide consistency in the loss                   ■ v. In paragraph (d)(4)(i) by removing
                                                its place. FCIC proposes this change                    adjustment process, prevent delays in                  the phrase ‘‘crop, and type’’ and adding
                                                because ‘‘commodity type’’ listed in the                claims, and lessen the burden on the                   the phrase ‘‘agricultural commodity and
                                                actuarial documents will coincide with                  Approved Insurance Providers and                       commodity type,’’ in its place;
                                                the current crop names and the price                    FCIC.                                                  ■ vi. By redesignating paragraphs (e)
                                                elections for each combination of                       List of Subjects in 7 CFR Part 457                     and (f) as (f) and (g) respectively;
                                                commodity type and intended use will                                                                           ■ vii. By designating the undesignated
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                                                determine insurance elections for the                     Crop insurance, Texas citrus fruit,                  paragraph following paragraph (d)(4)(iii)
                                                unit.                                                   Reporting and recordkeeping                            as paragraph (e);
                                                   FCIC proposes to revise paragraph                    requirements.                                          ■ viii. By revising the newly designated
                                                12(d) to clarify the provision applies                                                                         paragraph (e);
                                                                                                        Proposed Rule
                                                only to citrus fruit insured with an                                                                           ■ ix. In the newly designated paragraph
                                                intended use of juice. FCIC proposes                      Accordingly, as set forth in the                     (f) add a comma following the term
                                                this change to clarify the applicable                   preamble, the Federal Crop Insurance                   ‘‘provisions’’ and remove the comma
                                                citrus fruit type subcategory for                       Corporation proposes to amend 7 CFR                    following the term ‘‘trees’’; and


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                                                1344                    Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules

                                                ■  x. By revising the newly designated                  ■  n. In section 12:                                   more agricultural commodities are
                                                paragraph (g);                                          ■  i. By revising paragraph (b)(1);                    planted in any form of alternating or
                                                ■ f. In section 4 by removing the phrase                ■  ii. In paragraph (b)(2) by removing the             mixed pattern and at least one of these
                                                ‘‘(Contract Changes)’’ immediately                      phrase ‘‘crop, or variety, if applicable’’             agricultural commodities constitutes an
                                                following the words ‘‘section 4’’;                      and adding the phrase ‘‘combination of                 insured crop under these Crop
                                                ■ g. In section 5 by removing the phrase                commodity type and intended use’’ in                   Provisions.
                                                ‘‘(Life of Policy, Cancellation, and                    its place;                                                Production guarantee (per acre). In
                                                Termination)’’ immediately following                    ■ iii. In paragraph (b)(4) by removing                 lieu of the definition contained in
                                                the words ‘‘section 2’’;                                the phrase ‘‘variety, if applicable,’’ and             section 1 of the Basic Provisions, the
                                                ■ h. In section 6 by removing the phrase                adding the phrase ‘‘combination of                     production guarantee will be
                                                ‘‘(Annual Premium)’’ immediately                        commodity type and intended use’’ in                   determined by stage as follows:
                                                following the words ‘‘section 7’’;                      its place;                                                * * *
                                                ■ i. In section 7 by:                                   ■ iv. In paragraph (c)(1)(iv) by removing                 (b) Second stage production
                                                ■ i. Designating the undesignated                       the term ‘‘crop’’ in all three places it               guarantee. The quantity of citrus (in
                                                introductory paragraph as paragraph (a)                 appears and adding the term ‘‘insured                  tons) determined by multiplying the
                                                and redesignating paragraphs (a)                        crop’’ in its place; and                               yield determined in accordance with
                                                through (f) as (a)(1) through (6)                       ■ v. In paragraph (d) by adding the                    section 3(e) of these Crop Provisions by
                                                respectively;                                           phrase ‘‘insured with an intended use of               the coverage level percentage you elect.
                                                ■ ii. Revising the newly designated                     juice’’ after the phrase ‘‘Any citrus
                                                paragraph (a);                                                                                                 *      *    *     *     *
                                                                                                        fruit’’;
                                                ■ iii. In the newly designated paragraph                ■ vi. By revising paragraph (e).                       2. Unit Division
                                                (a)(2) by removing the term ‘‘are’’ and                    The revisions and additions read as
                                                adding the phrase ‘‘is grown on trees’’                                                                           (a) Basic units will be established for
                                                                                                        follows:                                               each insured crop in accordance with
                                                in its place;
                                                ■ iv. In the newly designated paragraph                 § 457.119 Texas citrus fruit crop insurance            section 1 of the Basic Provisions.
                                                (a)(3) by removing the term ‘‘are’’ and                 provisions.                                            *      *     *    *     *
                                                adding the term ‘‘is’’ in its place;                    *      *      *       *      *                            (c) Optional units may be established
                                                ■ v. Adding a new paragraph (b);                                                                               by either of the following, but not both:
                                                ■ j. Revise section 8;
                                                                                                        1. Definitions                                            (1) In accordance with section 34(c) of
                                                ■ k. In section 9:                                         Citrus fruit commodity. Includes the                the Basic Provisions, except as provided
                                                ■ i. In paragraph (a) by removing the                   following:                                             in section 2(b) of these Crop Provisions;
                                                phrase ‘‘(Insurance Period)’’                              (a) Oranges;                                        or
                                                immediately following the words                            (b) Grapefruit; and                                    (2) Non-contiguous land.
                                                ‘‘section 11’’;                                            (c) Any other citrus fruit designated as
                                                ■ ii. In paragraph (a)(1) by adding a                   a ‘‘citrus fruit commodity’’ in the                    3. Insurance Guarantees, Coverage
                                                hyphen between the terms ‘‘10’’ and                     actuarial documents.                                   Levels, and Prices for Determining
                                                ‘‘day’’ and by adding the term ‘‘insured’’                 Citrus fruit group. A designation in                Indemnities
                                                immediately preceding the phrase ‘‘crop                 the Special Provisions used to identify                  In addition to the requirements of
                                                or to determine the condition of the                    combinations of citrus fruit commodity                 section 3 of the Basic Provisions:
                                                grove.’’; and                                           types and intended uses within a citrus                  (a) You may select only one price
                                                ■ iii. In paragraph (b) by removing the                 fruit commodity that may be grouped                    election and coverage level for each
                                                phrase ‘‘(Insurance Period)’’                           together for the purposes of electing                  insured crop.
                                                immediately following the words                         coverage levels and identifying the                      (1) The price election you choose for
                                                ‘‘section 11’’;                                         insured crop.                                          each insured crop need not bear the
                                                ■ l. In section 10:                                        Commodity type. A specific                          same percentage relationship to the
                                                ■ i. In paragraph (a) by removing the                   subcategory of a citrus fruit commodity                maximum price offered by us for each
                                                phrase ‘‘(Causes of Loss)’’ immediately                 having a characteristic or set of                      insured crop. For example, if you
                                                following the words ‘‘section 12’’;                     characteristics distinguishable from                   choose one hundred percent (100%) of
                                                ■ ii. In paragraph (a)(7) by removing the               other subcategories of the same citrus                 the maximum price election for one
                                                word ‘‘or’’;                                            fruit commodity.                                       insured crop (e.g., the citrus fruit group
                                                ■ iii. In paragraph (a)(8) by removing the
                                                                                                        *      *     *     *    *                              for early and midseason oranges), you
                                                period and adding ‘‘; or’’ in its place;                   Excess wind. A natural movement of                  may choose seventy-five percent (75%)
                                                ■ iv. By adding a new paragraph (a)(9);
                                                                                                        air that has sustained speeds exceeding                of the maximum price election for
                                                and                                                     58 miles per hour (50 knots) recorded at
                                                ■ v. By revising paragraph (b);
                                                                                                                                                               another insured crop (e.g., the citrus
                                                ■ m. In section 11:
                                                                                                        the U.S. National Weather Service                      fruit group for late oranges).
                                                ■ i. By redesignating paragraph (a) as
                                                                                                        reporting station or any other weather                   (2) If separate price elections are
                                                (b)(1); and                                             reporting station identified in the                    available by commodity type or
                                                ■ ii. By redesignating paragraph (b) as                 Special Provisions operating nearest to                intended use within an insured crop,
                                                (b)(2) and revising the newly designated                the insured acreage at the time of                     the price elections you choose within
                                                paragraph (b)(2);                                       damage.                                                the insured crop must have the same
                                                ■ iii. By designating the undesignated                  *      *     *     *    *                              percentage relationship to the maximum
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                                                introductory paragraph as paragraph (b)                    Intended use. The insured’s expected                price offered by us for each other
                                                introductory text;                                      end use or disposition of the commodity                commodity type or intended use within
                                                ■ iv. By adding a new paragraph (a);                    at the time the commodity is reported.                 the insured crop. For example, if
                                                ■ v. In the newly designated paragraph                  Insurable intended uses will be                        separate price elections are available for
                                                (b) by removing the phrase ‘‘(Duties in                 specified in the Special Provisions.                   commodity type ruby red grapefruit
                                                the Event of Damage or Loss)’’                             Interplanted. In lieu of the definition             with an intended use of fresh, and
                                                immediately following the words                         contained in section 1 of the Basic                    commodity type ruby red grapefruit
                                                ‘‘section 14’’;                                         Provisions, acreage on which two or                    with an intended use of juice, and you


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                                                                        Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Proposed Rules                                                  1345

                                                choose one hundred percent (100%) of                    two crop years ago (e.g., on the 2018                     (b) * * *
                                                the price election for commodity type                   crop year production report, you will                     (2) If you intend to claim an
                                                ruby red grapefruit with an intended use                provide your 2016 crop year                            indemnity on any unit, you must notify
                                                of fresh, you must also choose one                      production).                                           us at least 15 days prior to the beginning
                                                hundred percent (100%) of the price                     *    *     *    *     *                                of harvest, or within 24 hours if damage
                                                election for commodity type ruby red                                                                           is discovered during harvest, so we may
                                                grapefruit with an intended use of juice.               7. Insured Crop                                        have an opportunity to inspect the unit.
                                                   (b) The production guarantee per acre                   (a) In accordance with section 8 of the             You must not sell or dispose of the
                                                is progressive by stage and increases                   Basic Provisions, the insured crop will                damaged crop until after we have given
                                                from the first stage production guarantee               be each citrus fruit group you elect to                you written consent to do so. If you fail
                                                to the second stage production                          insure and for which a premium rate is                 to meet the requirements of this section,
                                                guarantee. The stages are as follows:                   provided by the actuarial documents:                   all such production will be considered
                                                   (1) The first stage extends from the                 *      *     *    *     *                              undamaged and included as production
                                                date insurance attaches through April                      (b) For each insured crop,                          to count.
                                                30 of the calendar year of normal bloom.                administrative fees will be assessed in
                                                   (2) The second stage extends from                                                                           12. Settlement of Claim
                                                                                                        accordance with section 6 of the
                                                May 1 of the calendar year of normal                    Catastrophic Risk Protection                           *      *     *    *      *
                                                bloom until the end of the insurance                    Endorsement and section 7 of the Basic                    (b) * * *
                                                period.                                                 Provisions.                                               (1) Multiplying the insured acreage
                                                *      *     *      *    *                                                                                     for each combination of commodity type
                                                                                                        8. Insurable Acreage
                                                   (e) We will reduce the yield used to                                                                        and intended use by its respective
                                                establish your production guarantee, as                    In lieu of the provisions in section 9              production guarantee;
                                                necessary, based on our estimate of the                 of the Basic Provisions that prohibit                  *      *     *    *      *
                                                effect of any circumstance that may                     insurance attaching to an insured crop                    (e) Any citrus fruit insured with an
                                                reduce your yields from previous levels.                interplanted with another agricultural                 intended use of fresh that is not
                                                Examples of these circumstances that                    commodity, interplanted acreage is                     marketable as fresh fruit due to
                                                may reduce yield may include, but are                   uninsurable, except that a citrus fruit                insurable causes will be adjusted by
                                                not necessarily limited to, interplanted                group interplanted with another                        multiplying the number of tons of such
                                                agricultural commodities; tree removal,                 perennial agricultural commodity is                    citrus fruit by the applicable Fresh Fruit
                                                topping, hedging, or pruning of trees;                  insurable unless we inspect the acreage                Factor contained in the Special
                                                damage; and change in practices. If the                 and determine it does not meet the                     Provisions.
                                                circumstance occurred:                                  requirements contained in your policy.
                                                                                                                                                               *      *     *    *      *
                                                   (1) Before the beginning of the                      *      *     *     *    *
                                                                                                                                                                 Signed in Washington, DC, on December
                                                insurance period and you notify us by                   10. Causes of Loss                                     24, 2015.
                                                the production reporting date, the yield
                                                                                                        *     *     *     *     *                              Brandon Willis,
                                                used to establish your production
                                                guarantee will be reduced for the                         (a) * * *                                            Manager, Federal Crop Insurance
                                                                                                          (9) Insects and plant disease, unless                Corporation.
                                                current crop year regardless of whether
                                                                                                        excluded or otherwise restricted                       [FR Doc. 2015–32951 Filed 1–11–16; 8:45 am]
                                                the circumstance was due to an insured
                                                                                                        through the Special Provisions,                        BILLING CODE 3410–08–P
                                                or uninsured cause of loss;                             provided the loss of production is not
                                                   (2) After the beginning of the
                                                                                                        due to damage resulting from
                                                insurance period and you notify us by                   insufficient or improper application of
                                                the production reporting date, the yield                control measures as recommended by
                                                                                                                                                               DEPARTMENT OF TRANSPORTATION
                                                used to establish your production                       agricultural experts.
                                                guarantee will be reduced for the                                                                              Federal Aviation Administration
                                                                                                          (b) In addition to the causes of loss
                                                current crop year only if the potential                 excluded in section 12 of the Basic
                                                reduction in the yield used to establish                                                                       14 CFR Part 39
                                                                                                        Provisions, we will not insure against
                                                your production guarantee is due to an                  damage or loss of production due to the                [Docket No. FAA–2015–8131; Directorate
                                                uninsured cause of loss; or                             inability to market the citrus for any                 Identifier 2015–NM–073–AD]
                                                   (3) Before or after the beginning of the             reason other than actual physical
                                                insurance period and you fail to notify                                                                        RIN 2120–AA64
                                                                                                        damage from an insurable cause of loss
                                                us by the production reporting date, an                 specified in this section. For example,
                                                amount equal to the reduction in the                                                                           Airworthiness Directives; The Boeing
                                                                                                        we will not pay you an indemnity if you                Company Airplanes
                                                yield will be added to the production to                are unable to market due to quarantine,
                                                count calculated in section 12(c) of                    boycott, or refusal of any person to                   AGENCY: Federal Aviation
                                                these Crop Provisions due to uninsured                  accept production.                                     Administration (FAA), DOT.
                                                causes. We will reduce the yield used to
                                                                                                                                                               ACTION: Notice of proposed rulemaking
                                                establish your production guarantee for                 11. Duties in the Event of Damage or
                                                                                                        Loss                                                   (NPRM).
                                                the subsequent crop year to reflect any
                                                reduction in the productive capacity of                   (a) In accordance with the                           SUMMARY:   We propose to supersede
                                                the trees or in the yield potential of the
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                                                                                                        requirements of section 14 of the Basic                Airworthiness Directive (AD) 2008–05–
                                                insured acreage.                                        Provisions, you must leave                             06, which applies to certain The Boeing
                                                *      *     *      *    *                              representative samples. In lieu of the                 Company Model 737–100, –200, –300,
                                                   (g) In lieu of the provisions in section             requirements of section 14(c)(3) of the                –400, and –500 series airplanes. AD
                                                3 of the Basic Provisions that require                  Basic Provisions, we will determine                    2008–05–06 currently requires
                                                reporting your production for the                       which trees must remain unharvested so                 repetitive inspections for fatigue
                                                previous crop year, for each crop year                  that we may inspect them in accordance                 cracking in the longitudinal floor beam
                                                you must report your production from                    with FCIC procedures.                                  web, upper chord, and lower chord


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Document Created: 2016-01-12 01:23:02
Document Modified: 2016-01-12 01:23:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesFCIC will accept written comments on this proposed rule until close of business March 14, 2016. FCIC will consider these comments when FCIC finalizes this rule.
ContactTim Hoffmann, Director, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730.
FR Citation81 FR 1337 
RIN Number0563-AC48
CFR AssociatedCrop Insurance; Texas Citrus Fruit and Reporting and Recordkeeping Requirements

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