Common Crop Insurance Regulations; Dry Pea Crop Provisions, 51573-51585 [E8-20128]
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51573
Rules and Regulations
Federal Register
Vol. 73, No. 172
Thursday, September 4, 2008
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563–AC14
Common Crop Insurance Regulations;
Dry Pea Crop Provisions
Federal Crop Insurance
Corporation, USDA.
ACTION: Final rule.
AGENCY:
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SUMMARY: The Federal Crop Insurance
Corporation (FCIC) finalizes the
Common Crop Insurance Regulations;
Dry Pea Crop Insurance Provisions by
including the insurability of additional
types of dry peas, by offering winter
coverage, by allowing replanting
payments, and by making chickpeas
insurable under the Dry Pea Crop
Provisions. The changes will apply for
the 2009 and succeeding crop years for
all Dry Pea counties with a contract
change date on or after November 30,
2008.
DATES: Effective Date: This rule is
effective October 6, 2008.
FOR FURTHER INFORMATION CONTACT:
Claire White, Economist, Product
Management, Product Administration
and Standards Division, Risk
Management Agency, United States
Department of Agriculture, Beacon
Facility, Stop 0812, Room 421, PO Box
419205, Kansas City, MO 64141–6205,
telephone (816) 926–7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this rule is
non-significant for the purpose of
Executive Order 12866 and, therefore, it
has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Pursuant to the provisions of the
Paperwork Reduction Act of 1995 (44
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U.S.C. chapter 35), the collections of
information in this rule have been
approved by OMB under control
number 0563–0053.
E-Government Act Compliance
FCIC is committed to complying with
the E-Government Act of 2002, to
promote the use of the Internet and
other information technologies to
provide increased opportunities for
citizen access to Government
information and services, and for other
purposes.
Unfunded Mandates Reform Act of
1995
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) establishes
requirements for Federal agencies to
assess the effects of their regulatory
actions on State, local, and tribal
governments and the private sector.
This rule contains no Federal mandates
(under the regulatory provisions of title
II of the UMRA) for State, local, and
tribal governments or the private sector.
Therefore, this rule is not subject to the
requirements of sections 202 and 205 of
UMRA.
Executive Order 13132
It has been determined under section
1(a) of Executive Order 13132,
Federalism, that this rule does not have
sufficient implications to warrant
consultation with the States. The
provisions contained in this rule will
not have a substantial direct effect on
States, or on the relationship between
the national government and the States,
or on the distribution of power and
responsibilities among the various
levels of government.
Regulatory Flexibility Act
FCIC certifies that this regulation will
not have a significant economic impact
on a substantial number of small
entities. Program requirements for the
Federal crop insurance program are the
same for all producers regardless of the
size of their farming operation. For
instance, all producers are required to
submit an application and acreage
report to establish their insurance
guarantees and compute premium
amounts, and all producers are required
to submit a notice of loss and
production information to determine the
amount of an indemnity payment in the
event of an insured cause of crop loss.
Whether a producer has 10 acres or
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1000 acres, there is no difference in the
kind of information collected. To ensure
crop insurance is available to small
entities, the Federal Crop Insurance Act
authorizes FCIC to waive collection of
administrative fees from limited
resource farmers. FCIC believes this
waiver helps to ensure that small
entities are given the same opportunities
as large entities to manage their risks
through the use of crop insurance. A
Regulatory Flexibility Analysis has not
been prepared since this regulation does
not have an impact on small entities,
and therefore, this regulation is exempt
from the provisions of the Regulatory
Flexibility Act (5 U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog
of Federal Domestic Assistance under
No. 10.450.
Executive Order 12372
This program is not subject to the
provisions of Executive Order 12372,
which require intergovernmental
consultation with State and local
officials. See the Notice related to 7 CFR
part 3015, subpart V, published at 48 FR
29115, June 24, 1983.
Executive Order 12988
This rule has been reviewed in
accordance with Executive Order 12988
on civil justice reform. The provisions
of this rule will not have a retroactive
effect. The provisions of this rule will
preempt State and local laws to the
extent such State and local laws are
inconsistent herewith. With respect to
any direct action taken by FCIC or to
requiring 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
This rule finalizes changes to 7 CFR
part 457.140 (Dry Pea Crop Insurance
Provisions) that were published by FCIC
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on January 18, 2008, as a notice of
proposed rulemaking in the Federal
Register at 73 FR 3411–3417. The public
was afforded 60 days to submit
comments after the regulation was
published in the Federal Register.
A total of 119 comments were
received from five commenters. The
commenters were one insurance
services organization, one grower
association, and three insurance
providers.
The public comments received
regarding the proposed rule and FCIC’s
responses to the comments are listed
below (under applicable subject
headings) identifying issues and
concerns, and the changes made, if any,
to address the comments.
General
Comment: One commenter stated
contract seed peas and contract seed
beans have their own unique method for
properly calculating the actual
production history (APH) as outlined in
Exhibit 27 of the Crop Insurance
Handbook (CIH). The commenter claims
it has to track back and forth between
dollars and pounds and receive 10 years
of new Reference (Base) Year
Adjustment Factors (RYAF) each year.
All 10 numbers change every year. The
commenter states that the intent of the
procedure is good as it tries to provide
coverage for contract seed peas that do
not pass germination testing and,
therefore, receive a reduced price.
However, the commenter thought this
could also be accomplished by using the
same methodology as is used for green
peas. This would simplify the
administration of this program and
remove the need for having Exhibit 27
of the CIH as the APH would be based
on ‘Dividing the dollar amount received
by the contract price per pound for the
base contract price.’ Using the green pea
methodology would allow the guarantee
to be expressed in pounds rather than
dollars and eliminate the need for
RYAFs. The approved APH yield would
no longer have to be converted from
dollars per acre to pounds per acre for
entry on the acreage report. The
commenter states that this APH
procedure has been in place only for
contract seed pea types of dry peas and
contract seed bean types of dry beans.
The commenter recommended these
procedures be reevaluated to see if they
are still necessary and if this procedure
could be revised to be consistent with
what is being done for green peas. This
would simplify the administration of
this program.
Response: Since the recommended
change involves APH procedure and not
the Dry Pea Crop Provisions, no change
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has been made in the final rule. FCIC
will evaluate this recommendation to
determine if APH procedures for
contract seed dry peas can be made
consistent with seed green peas.
Comment: Two commenters
applauded FCIC for including chickpeas
(a.k.a. garbanzo beans) in the Dry Pea
Crop Provisions. Chickpeas are
produced in dry pea and lentil growing
regions and producers should have the
option to purchase coverage for these
crops under one policy.
Response: FCIC has retained the
provisions in the final rule that allow
chickpeas to be covered under the Dry
Pea Crop Provisions in applicable States
and counties as determined by FCIC.
Comment: Two commenters stated the
words ‘‘fall planted’’ and ‘‘spring
planted’’ are most often used without
hyphens throughout the Crop
Provisions, though hyphens are used in
the section 13(b) example. It would be
helpful to be consistent, and preferably
use the hyphens to make it easier to
read.
Response: FCIC has revised the
provisions as suggested.
Section 1—Definitions
Comment: One commenter
recommended the definition of ‘‘base
price’’ be revised to include both ‘‘seed
company’’ and ‘‘processor’’ contracts
because dry pea producers often have
the choice to purchase seed from seed
companies and processors.
Response: FCIC has revised the
definition of ‘‘base contract price’’ to
include processor contracts and now
refers to ‘‘processor/seed company
contract.’’ FCIC has also removed the
definitions of ‘‘seed company’’ and
‘‘seed company contract’’ and replaced
the definitions with ‘‘processor/seed
company’’ and ‘‘processor/seed
company contract,’’ respectively.
Therefore, the phrases ‘‘seed company’’
and ‘‘seed company contract’’ have been
replaced with the phrases ‘‘processor/
seed company’’ and ‘‘processor/seed
company contract,’’ respectively,
throughout the policy to be consistent
with the definition of ‘‘base contract
price.’’
Comment: Two commenters
recommended replacing the word
‘‘place’’ with ‘‘places’’ in the definition
of ‘‘combining.’’
Response: FCIC has revised the
definition as suggested.
Comment: One commenter supported
the revision to the definition of ‘‘dry
peas’’ to allow insurability of additional
types of dry peas in accordance with the
Special Provisions. Three commenters
also stated the word ‘‘and’’ before the
word ‘‘Chickpeas’’ in the definition of
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‘‘dry peas’’ should be removed and
replaced with a comma. Two
commenters suggested rewording the
phrase ‘‘and those types’’ to state ‘‘and
any other types.’’
Response: FCIC has retained the
provisions in the final rule, which
allows insurability of additional types of
dry peas via the Special Provisions.
FCIC has removed the word ‘‘and’’ and
replaced it with a comma. FCIC has
reworded the phrase ‘‘and those types’’
as ‘‘and other types.’’
Comment: One commenter supported
adding the sentence, ‘‘dry peas that are
swathed prior to combining are not
considered harvested,’’ in the definition
of ‘‘harvest.’’
Response: FCIC proposed this change
in the proposed rule and will retain it
in the final rule.
Comment: One commenter supported
revising the definition of ‘‘local market
price’’ to specify that factors not
associated with grading factors under
the United States Standards for Whole
Dry Peas, Split Peas and Lentils will not
be considered, unless specified in the
Special Provisions.
Response: FCIC has retained the
proposed definition in the final rule.
Comment: Two commenters asked, in
the definition of ‘‘practical to replant,’’
if the added statement that it will not be
considered practical to replant fallplanted dry peas more than 25 days
after the final planting date for the
corresponding spring-planted type of
dry pea conflicts with the last sentence
of 8(b), which states ‘‘We will not
require you to replant if it is not
practical to replant the type of dry peas
originally planted.’’ The commenters
also asked if fall-planted and springplanted dry peas are different types or
the same type planted at different times.
Response: The commenter is correct
that the statement that fall-planted dry
peas will not be considered practical to
replant more than 25 days after the final
planting date for the corresponding
spring-planted type of dry pea conflicts
with the last sentence of 8(b). FCIC has
removed the referenced provisions of
section 8(b). Fall-planted and springplanted dry peas are different types
planted at different times.
Comment: Two commenters suggested
reformatting the definition of ‘‘practical
to replant’’ so it is easier to read.
Response: FCIC has reformatted the
definition of ‘‘practical to replant’’ to
make it easier to read.
Comment: Three commenters
suggested revising the definition of
‘‘price election’’ to change the term
‘‘base price’’ to ‘‘base contract price’’ to
match the revised definition of ‘‘base
contract price.’’
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Response: FCIC has revised the
definition as suggested.
Comment: One commenter suggested
adding a definition of ‘‘sales closing
date’’ to address the additional sales
closing date that will be established for
acreage insured under the Winter
Coverage Option.
Response: A definition of ‘‘sales
closing date’’ does not need to be added.
Throughout the Dry Pea Crop
Provisions, when reference is made to
insurance attaching under the Winter
Coverage Option, the Crop Provisions
state the Winter Coverage Option must
be elected by the sales closing date.
Further, the Special Provisions will
contain the sales closing date for
counties with the Winter Coverage
Option in effect. No change will be
made.
Comment: One commenter stated the
word ‘‘variety’’ in the definition of
‘‘seed company contract’’ has been
changed to ‘‘type.’’ The commenter
stated the contracts they have received
in years past make specific reference to
a variety of seed and not a specific type.
The commenter asked if it will be
considered an invalid contract if the
seed company contracts do not state the
specific type or if the contract states the
specific variety whether the insurance
provider can determine the type.
The commenter also asked the
following questions: (1) With the
proposed change to have the contract
state a specific type, will separate units
by each type of dry pea seed under
contract be allowed; (2) will the Special
Provisions be changed to identify each
specific type that is insurable by type
for contract seed or will the Special
Provisions remain the same and all
varieties of dry peas under contract for
seed will be insured as the contract seed
pea type.
Response: The commenter is correct
that processor contracts and seed
company contracts make specific
reference to varieties, rather than types.
Therefore, FCIC has not retained the
proposed changes. This means that
contract seed peas may be insured as a
separate optional unit only if contract
seed peas are listed on the Special
Provisions as an insurable type. The
distinct varieties listed on the contract
will not be eligible for separate optional
units.
Comment: Two commenters suggested
revising the definition of ‘‘swathed’’ in
order to align it with the wording of
‘‘swathed’’ in other Crop Provisions. In
the proposed context, one may conclude
and argue that placing the crop into
more than one windrow would not be
considered swathed.
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Response: FCIC has revised the
definition for clarification.
Section 2—Unit Division
Comment: Two commenters stated
this section may need to be clarified as
they are not sure how contract seed peas
fit into the unit structure as defined in
this section of the policy. The
commenters asked if Austrian peas
grown under a seed company contract
and other Austrian peas not grown
under a seed company contract in the
same section would qualify for separate
optional units.
Response: Section 2 has been revised
to clarify that separate optional units
can be established for contract seed peas
and dry peas not grown under a
processor/seed company contract even
if each type shares a common variety,
provided each type is grown on separate
acreage and the production is kept
separate. This means that Austrian peas
grown under a processor/seed company
contract and other Austrian peas not
grown under a processor/seed company
contract in the same section qualify for
separate optional units, provided the
Austrian peas grown under a processor/
seed company contract meet all policy
requirements for insurability as contract
seed peas, and the producer has elected
optional units. Austrian peas grown for
harvest as mature dry peas would be
insurable as either a: (1) Fall Austrian
pea type; or (2) spring Austrian pea
type, whichever is applicable, if
provided on the Special Provisions, and
all qualifying acreage of seed peas
(regardless of type, e.g. fall Austrian
peas, spring smooth green and yellow
peas, etc.) would be insurable as a
separate optional unit when insured as
a contract seed pea type. If the acreage
of Austrian peas grown under contract
for seed did not meet the policy
requirements to be insured under the
contract seed pea type, then this acreage
and acreage of Austrian peas not grown
under contract would be included in the
same unit.
Comment: Two commenters said the
proposed rule appears to delete section
2(b), which currently allows optional
units for contract seed peas if the seed
contract specifies the number of acres
contracted. The commenter asked if this
means contract seed peas will no longer
qualify for separate optional units
(unless there are separate contracts for
the different dry pea types that qualify),
or will contract seed peas be listed as a
separate dry pea type on the Special
Provisions. Since the Special Provisions
are not included in the proposed rule,
it is difficult to know what kind of
change might be intended.
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Response: Section 2 has been revised
to clarify that contract seed peas will
qualify for optional units if contract
seed peas are listed as a separate type
on the Special Provisions.
Section 3—Insurance Guarantees,
Coverage Levels and Prices for
Determining Indemnities
Comment: One commenter stated they
believe the intent of this section is to
limit the producer to the same single
level of coverage for all types of dry
peas that are planted in the county. It
also does not change the requirement to
report all acreage of dry peas planted in
the county that are planted to insurable
types as listed in the Special Provisions.
This would make this policy consistent
with the Dry Bean Crop Provisions in
that it would require all acreage of dry
peas to be insured and all types would
be insured at the same coverage level. If
this is not the intent, the commenters
recommended that it be changed to
match what is done for dry beans.
Otherwise, if the insured is allowed to
have separate coverage levels by type,
each type should be treated as a
different crop with a separate
administrative fee, etc. (i.e., California
grapes). If the intent is to limit
producers to the same single level of
coverage for all types, the language
could be further clarified as follows: ‘‘In
lieu of the requirements of section 3 of
the Basic Provisions, you must select
the same coverage level for all types
listed on the Special Provisions.’’ The
current language indicates only a single
level can be selected for each type but
does not stipulate that it must be the
same. The above language clarifies that
only one level can be selected and it
must be the same for all types.
Response: The intent of the proposed
provisions in section 3(a) and 3(b) is to
allow separate coverage levels and price
election percentages by type listed on
the Special Provisions. According to
section 7 of the Dry Pea Crop
Provisions, all dry pea types in the
county for which there is a premium
rate must be insured. Therefore, the
requirement to report all acreage of dry
peas planted to insurable types in the
county remains the same. Offering a
separate coverage level by type does not
automatically imply each type be
treated as a separate crop. No change
has been made.
Comment: Two commenters also
stated the language in proposed section
3(a) allows separate coverage levels by
type and proposed section 3(b) allows
separate price percentages by type. As is
currently proposed, this would allow
different coverage levels for different
types even within the same unit. The
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commenter does not know of any other
crop that allows different coverage
levels within the crop and objects to
allowing separate coverage levels by
type.
Response: The proposed provisions
would allow different coverage levels
for different types even within the same
basic unit. However, since optional
units are available by type, it is likely
that most producers will opt for
optional units for each of their insurable
types of dry peas. Offering separate
coverage levels by type provides the dry
pea producers another method to
manage their risk.
Comment: One commenter stated
there seems to be missing information in
proposed section 3(a) that surrounds the
ability for the insured to select different
coverage levels by type. For example,
two different types of dry peas are listed
on the application as being insured at a
70 percent and 65 percent coverage
level, respectively. At acreage reporting
time, the producer identifies a third
type of dry pea planted that was not
listed on the application. The
commenter questions at what coverage
level would the insurance provider
insure that type. One suggestion is to
allow the producer to select a coverage
level for the crop and if the producer
wants to insure a specific type of dry
peas at a different coverage level, he
must identify that separate coverage
level on the application for that specific
type. If the producer does not specify a
separate coverage level for a specific
type, the type will be insured under the
coverage level selected at the crop level.
Response: The commenter is correct
that there is missing information. FCIC
has revised section 3 to include
provisions stating if a dry pea type is
added after the sales closing date, the
dry pea type will be assigned a coverage
level equal to the lowest coverage level
selected for any other dry pea types; and
a price election percentage equal to 100
percent if additional coverage is elected
and 55 percent if catastrophic level of
coverage is elected.
Comment: One commenter
recommended that the last portion of
the lead-in paragraph in proposed
section 3(b) be revised as follows:
‘‘* * * in which case you may select a
different price election percentage for
each such dry pea type so designated in
the Special Provisions * * *’’ This
clarifies that if a different price election
is offered by type that a different price
election percentage could be elected for
each such type and would be consistent
with the Dry Bean Crop Provisions.
Response: FCIC has broken section
3(b) into separate paragraphs for clarity.
FCIC has revised the newly designated
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section 3(b)(2) to clarify if the Special
Provisions designate a separate price
election by type, the producer may
select one price election for each type
listed in the Special Provisions. The
price election the producer chooses for
one type is not required to have the
same percentage relationship to the
maximum price offered for another type.
Comment: Two commenters stated
proposed section 3(b) says the producer
may select only one price election for all
dry peas in the county insured under
this policy unless the Special Provisions
provide different price elections for a
particular type, in which case the
producer may select one price election
for each dry pea type so designated in
the Special Provisions. The commenters
asked whether this means that if the
Special Provisions lists three dry pea
types, with one type having a different
price election from the other two types
(which show the same price because of
the market), those two types would have
to have the same price percentage. In
the alternative, the commenter asks
whether it means that as long as the
three types are listed on separate lines,
each with its own price election, those
are considered different price elections
and producers can choose different
price percentages as well as different
coverage levels under proposed section
3(a). If it is the former, the commenter
asks FCIC to consider revising to ‘‘* * *
unless the Special Provisions provide a
different price election for a particular
type * * *’’ If the latter is correct, the
commenter asks that FCIC consider
going back to the current wording,
‘‘* * * by type’’ [as in (b)(1) & (3)].
Depending on the response to these
questions, the references in (b)(1) & (3)
to ‘‘different price elections by type’’
may need to be reviewed as well.
Response: FCIC has revised the
provisions in section 3(b) to clarify that
if there is more than one type of dry pea
listed on the Special Provisions, then
each type may have a separate price
election percentage, regardless if the
price for one type is the same as the
price for another type. For example,
type A and type B are listed on the
Special Provisions. The price for type A
is $0.12. The price for type B is also
$0.12. The price election percentage for
type A and type B do not have to be the
same even though the price election for
type A is the same as the price election
for type B.
Comment: Two commenters stated
proposed section 3(b) states that if there
are different price elections, then the
producer ‘‘may select one price election
for each dry pea type,’’ while proposed
section 3(b)(1) states ‘‘the price elections
you choose for each type are not
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required to have the same percentage
relationship to the maximum price
offered by us for each type.’’ The
commenter suggested the last phrase of
(b) should be deleted from (b) and
combined with (b)(1), which would then
provide the additional options when
separate price elections are designated.
Response: The commenter is correct
that the last phrase of section 3(b)
should be deleted from (b) and added to
the provisions that state what options
the producers have when separate price
elections are designated on the Special
Provisions. As stated above, FCIC has
also reformatted section 3(b) to make it
easier to read.
Comment: Two commenters stated
proposed section 3(b)(2) should either
be moved to the end of section 3(a)
because it refers to the coverage level for
catastrophic (CAT) level of coverage,
instead of the percentage of price
election, or it should be reworded to
address the percentage of price election
for CAT level of coverage. If it remains
in section 3(b), the commenter
suggested it should be the first or last of
the three paragraphs under section 3(b)
instead of between paragraphs (1) and
(3).
Response: FCIC has moved the
provisions related to CAT coverage
proposed in section 3(b)(2) to section
3(a).
Comment: Two commenters suggested
revising proposed section 3(b)(3)
because the current wording suggests
the producer has a choice of price
elections even if price elections by type
are not listed on the Special Provisions.
The commenters suggested revising it to
say ‘‘* * * the same price election
percentage applies for each dry pea
type.’’
Response: The commenter is correct
that a producer does not have a choice
of multiple price elections when the
Special Provisions do not designate
separate price elections by type. FCIC
has revised section 3(b) to state if the
Special Provisions do not designate
separate price elections by type, the
producer may select only one price
election for all dry peas in the county.
Comment: One commenter supported
the right of a producer to select his/her
own separate coverage level on dry
peas, lentils and chickpeas.
Response: FCIC has retained the
provisions in the final rule. The
producer is allowed to select a separate
coverage level for each type of dry peas.
Section 7—Insured Crop
Comment: Two commenters suggested
deleting the word ‘‘to’’ before the phrase
‘‘otherwise not harvest’’ in proposed
section 7(a)(3)(iv).
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Response: FCIC has revised the
provisions as suggested.
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Section 8—Insurable Acreage
Comment: Three commenters stated
the last sentence of proposed section
8(b), which states, ‘‘We will not require
you to replant if it is not practical to
replant the type of dry peas originally
planted,’’ indicates it is not required
that the producer replant if it is not
practical to replant to the same type of
dry peas originally planted. The
commenter questioned if this conflicts
with the new language in proposed
section 9(d).
Response: The commenters are correct
that the provisions in section 8(b)
conflict with the new language in
section 9(d). FCIC has removed the
current provisions in section 8(b) and
moved the provisions proposed in
section 9(c), 9(d), and 9(e) to section 8
as some of the language is duplicative
and is more appropriate in section 8
regarding insurable acreage than in
section 9 regarding the insurance
period.
Section 9—Insurance Period
Comment: Two commenters suggested
adding a comma after the middle phrase
‘‘section 11 of the Basic Provisions’’ and
adding the word ‘‘the’’ before the word
‘‘provisions’’ in the introductory text of
section 9.
Response: FCIC has revised the
provisions as suggested.
Comment: Three commenters stated
the provision proposed in section 9(c)
states the following: ‘‘Any acreage of the
insured crop damaged before the final
planting date, to the extent that
producers in the surrounding area
would not further care for the crop,
must be replanted unless we agree that
it is not practical to replant.’’ This has
the current language regarding
replanting, but otherwise essentially
duplicates provisions currently
contained in proposed section 8(b). Two
commenters also stated the last sentence
in the provisions currently contained in
section 8(b) states, ‘‘* * * We will not
require you to replant if it is not
practical to replant the type of dry peas
originally planted.’’ The commenter
asked if this sentence, and proposed
section 9(d), belong in section 9 or in
section 8. The commenters also stated
similar replanting language also has
been added in proposed section 9(d),
particularly (d)(1), and in section
9(e)(3). The commenter asked that FCIC
consider if this language must be
repeated in four different subsections.
Response: As stated above, the
commenters are correct that section 9(c)
duplicates provisions currently
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contained in section 8(b). FCIC has
removed the provisions currently
contained in section 8(b) and the
language proposed in section 9(c) has
been moved to section 8(b). As stated
above, the commenter is also correct
that the entire proposed section 9(d)
belongs in section 8 because it related
to insurable acreage. The entire
proposed section 9(e) has also been
moved to section 8 because it is more
appropriate in section 8.
Comment: One commenter supported
the proposal to offer the Winter
Coverage Option for dry peas and using
the language from the Small Grains Crop
Provisions as a starting point for
developing similar language for dry
peas. However, the commenter believed
some of the language in the Small
Grains Crop Provisions that deals with
counties containing both fall and spring
final planting dates is not appropriate
for dry peas and should be clarified as
indicated below to be more applicable
for dry peas. The commenter stated the
second part of proposed section 9(d)(1)
indicates that if it is not practical to
replant to a fall-planted type of dry peas
that the insured must replant to a spring
type in order to maintain coverage based
on the fall-planted type. The commenter
is concerned with the various different
types of dry peas that could be insured
in some areas and the different level of
yields and prices that can exist between
the different types of dry peas
(particularly fall types versus spring
types). The commenter recommended
that in this situation, coverage would
revert to the respective spring type that
is planted rather than remain based on
the fall-planted type, which may not be
reflective of the yield or price potential
of the spring-planted type. In addition,
the current language would allow
producers the ability to adversely select
against the insurance provider by
planting a lower yielding or priced
spring type in these types of situations.
The commenter also stated the above
comments would impact proposed
section 9(e) as well. The commenter
references Austrian winter peas as an
example of a fall-planted type and they
are not aware of a spring-planted
version of this same type of pea. The
commenter stated that under this
provision, if they received a request to
insure Austrian winter peas in a county
with only a spring final planting date,
they would not be able to establish a
yield etc., for a spring seeded type as it
does not exist. The commenter
recommended that coverage be based on
the fall-planted dry pea type in these
types of situations. In addition, if
damage occurs after such acreage has
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been accepted for coverage, and must be
replanted to a spring-planted type, the
commenter recommended the coverage
revert to the spring-planted type in
these situations.
Response: FCIC has retained the
Winter Coverage Option provisions in
the final rule. Coverage for the spring
peas planted on failed fall acreage
should not revert to the respective
spring-planted type rather than remain
based on the fall-planted type. Allowing
spring-planted dry peas to be insured as
fall-planted dry peas when it has been
replanted on failed fall dry pea acreage
is permitted because insurance has
already attached to the fall dry pea crop
and replanting to the spring crop is a
means to mitigate the damages
associated with the failed fall crop.
FCIC is aware of Austrian pea
varieties that are spring-planted.
Austrian peas (a.k.a black peas; dry peas
with a dark and mottled seed coat) are
a variety of peas typically characterized
as having moderate to good winter
survivability. Their cold temperature
tolerance and subsequent reproductive
phase do not have a vernalization
requirement similar to winter wheat.
Therefore, it can successfully be
produced when sown in the fall or
spring.
Section 10—Causes of Loss
Comment: One commenter suggested
clarifying section 10(b) to state ‘‘Fire,
due to natural causes.’’
Response: No changes to this section
were proposed. Further, the current
introductory text of section 10 states the
specified causes of loss are in
accordance with the Basic Provisions.
The Basic Provisions contain the
requirement that all causes of loss must
be due to a naturally occurring event.
There is no reason to be repetitive. In
addition, to explicitly state that fire
must be due to natural causes while not
including this language with the other
listed causes losses could create the
mistaken impression that such other
causes do not have to be from natural
causes. No change has been made.
Section 11—Replanting Payments
Comment: Two commenters stated the
wording of the last phrase regarding
compliance with all replanting payment
requirements in the Basic Provisions
‘‘* * * and in the Winter Coverage
Option for which you are eligible and
which you have elected’’ sounds as
though every dry pea producer will be
eligible and will elect the Winter
Coverage Option. While the commenters
realize this language was taken from the
current Small Grains Crop Provisions,
they suggested FCIC consider rephrasing
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it something like ‘‘* * * and in the
Winter Coverage Option, if applicable.’’
Response: FCIC has revised the
provisions accordingly.
Comment: Two commenters suggested
deleting the period at the end of section
11(a)(3) and replacing it with a
semicolon to be consistent with the
other subsections.
Response: FCIC has revised the
provisions as suggested.
Comment: Two commenters suggested
deleting ‘‘* * * (see section 15) * * *’’
in proposed section 11(a)(5) since the
Winter Coverage Option has already
been referenced in (a)(2). The
commenter also suggested placing the
parenthetical reference in proposed
section 11(a)(2).
Response: FCIC has revised the
provisions as suggested.
Comment: One commenter asked if
the producer does not select the Winter
Coverage Option, but does have insured
fall-planted acreage in a county with a
fall planting date, and damage occurs
prior to insurance attaching, are those
acres still eligible for a replanting
payment.
Response: If a producer has insured
fall-planted acreage in a county with a
fall and spring final planting date, but
does not elect the Winter Coverage
Option, the producer is not eligible for
a replanting payment. FCIC has revised
the provisions in section 11 to clarify
fall-planted acreage not covered under
the Winter Coverage Option that is
damaged after it is accepted for
insurance but before the spring sales
closing date must be replanted but no
replanting payment will be made.
FCIC has also added provisions to
section 11(a)(5) to clarify if the Winter
Coverage Option is in effect, damage
must occur after the fall final planting
date for the acreage to be eligible for a
replanting payment. This revision
clarifies the Winter Coverage Option
must be in effect in order for the fall
acreage to be eligible for a replanting
payment.
Comment: Two commenters stated
proposed section 11(b) provides a
maximum of ‘‘* * * the lesser of 20.0
percent of the production guarantee or
200 pounds * * *’’ The commenter
asks whether the different dry pea types
will have similar yields so that 200
pounds will be appropriate for all. For
example, if chickpeas are shifted from
the Dry Bean policy to the Dry Pea
policy, they will have a much higher
maximum than before.
Response: The data shows that all dry
pea types will have similar yields and,
therefore, the 200 pounds will be
appropriate for all types. FCIC
recognizes chickpeas will have a higher
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maximum than they previously did
under the Dry Bean Crop Provisions but
it should not be excessive.
Comment: Two commenters stated the
lead-in to proposed sections 11(d)(1)
and (2) will read more smoothly with
the word ‘‘for’’ added at the end of
proposed section 11(d).
Response: The addition of ‘‘for’’
would make the sentence grammatically
incorrect. No change has been made.
Comment: One commenter stated the
last sentence of the lead-in paragraph of
section 11(d) could be removed in
addition to items (1) and (2). Damaged
fall-planted acreage that is replanted to
a spring-planted type should have the
coverage revert to the applicable spring
type that is planted. The commenter
does not believe that item (d)(2) will
occur and could be removed as well.
Response: As stated above, coverage
on the acreage replanted to a spring type
on failed fall-planted acreage should not
revert to the spring type, instead of the
fall-planted type that was originally
planted. Allowing spring-planted dry
peas to be insured as fall-planted dry
peas when it has been replanted after a
failed fall dry pea crop is permitted
because insurance has already attached
to the fall dry pea crop and replanting
to the spring crop is a means to mitigate
the damages associated with the failed
fall crop. It is not considered a new
crop. No change has been made in
response to this comment.
Section 12—Duties in the Event of
Damage or Loss
Comment: One commenter stated
since there is no change being made to
section 14 of the Basic Provisions, there
does not appear to be a need to retain
this provision and it could be removed.
Response: Section 14 of the Basic
Provisions states representative samples
must be left intact if the Crop Provisions
require them. If the provisions in
section 12 were removed, producers
would not be required to maintain
representative samples. Therefore,
section 12 must remain in the Dry Pea
Crop Provisions in order to require
representative samples. FCIC is only
removing provisions in section 12 of the
Dry Pea Crop Provisions that duplicate
the provisions in the Basic Provisions.
No change has been made.
Comment: Two commenters
supported changing the language in
proposed section 12 to delete the details
and simply refer to section 14 of the
Basic Provisions regarding
representative samples.
Response: FCIC has retained the
provision in the final rule.
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Section 13—Settlement of Claim
Comment: Two commenters
recommended changing the word
‘‘variety’’ to ‘‘type’’ in proposed section
13(b)(4) to be consistent with provisions
throughout the policy.
Response: The word ‘‘variety’’ should
not be changed to ‘‘type’’ in section
13(b)(4). In the definition of ‘‘seed
company contract,’’ which has been
renamed as ‘‘processor/seed company
contract,’’ the word ‘‘variety’’ has been
retained because varieties, rather than
types, are stated in the processor/seed
company contracts. No change has been
made.
Comment: Two commenters suggested
adding the word ‘‘contract’’ between the
words ‘‘base’’ and ‘‘price’’ in proposed
section 13(b)(5) to be consistent with the
revised definition of ‘‘base contract
price.’’
Response: FCIC has revised the
provision as suggested.
Comment: Two commenters suggested
changing ‘‘400,000 pounds guarantee’’
to ‘‘400,000-pound guarantee’’ in step
(1) of both examples in proposed section
13(b), and step (2) of the second
example in proposed section 13(b). The
commenter also suggested making a
similar change to ‘‘500,000-pound
guarantee’’ in steps (4) and (5) of the
second example in proposed section
13(b).
Response: FCIC has revised the
provisions as suggested.
Comment: Two commenters suggested
changing the word ‘‘variety’’ to ‘‘type’’
in subsection (c) to be consistent with
provisions throughout the policy;
changing ‘‘base price’’ to ‘‘base contract
price’’ in proposed section 13(c)(1) to
match the revised definition of ‘‘base
contract price;’’ and changing ‘‘seed pea
processor contract’’ to ‘‘seed company
contract’’ in section 13(c)(2) to match
the term used in the revised ‘‘base
contract price’’ definition.
Response: As stated above, the word
‘‘variety’’ should not be changed to
‘‘type.’’ In the definition of ‘‘seed
company contract,’’ which has been
renamed as ‘‘processor/seed company
contract,’’ the word ‘‘variety’’ has been
retained because varieties, rather than
types, are stated in the processor or seed
company contracts. FCIC agrees ‘‘base
price’’ should be changed to ‘‘base
contract price’’ and ‘‘seed pea processor
contract’’ should be changed to ‘‘seed
company contract.’’ Based on a previous
comment, FCIC has also revised the
phrase ‘‘seed company contract’’ to
‘‘processor/seed company contract.’’
This phrase has also been added to
section 13(c)(1).
Comment: One commenter
recommended adding a reference to
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‘‘objective, measurable minimum
quality requirements’’ for mature dry
pea production in proposed section
13(c)(2) to be consistent with the same
language that was added in proposed
section 13(c)(1).
Response: FCIC has revised the
provision as suggested. FCIC has also
revised proposed section 13(c)(1) by
adding the word ‘‘mature’’ between the
words ‘‘for’’ and ‘‘production’’ to be
consistent with the same language in
proposed section 13(c)(2).
Comment: Two commenters suggested
the reference in proposed section
13(d)(1)(iii) should be ‘‘section 13(c) or
(3)’’ instead of ‘‘section 13I or (e).’’
Response: FCIC has revised the
provision as suggested.
Comment: Two commenters question
if chickpeas are moved from the Dry
Bean policy to the Dry Pea policy
whether the reference to the United
States Standards for Whole Dry Peas,
Split Peas, and Lentils in proposed
section 13(e)(1)(i) also need to refer to
the United States Standards for Beans as
in the Dry Beans policy.
Response: FCIC does not believe the
reference to the United States Standards
for Whole Dry Peas, Split Peas, and
Lentils also needs to refer to the United
States Standards for Beans. FCIC has
provided for additional grade standards
to be specified in the Special Provisions.
Therefore, the United States Standards
for Beans can be referenced in the
Special Provisions, if needed. The
flexibility of the Special Provisions also
allows for different grade standards if
other types, which require a different
grade standard, are added on the Special
Provisions in the future. No change has
been made.
Section 14—Prevented Planting
Comment: One commenter
recommended eliminating the option to
increase prevented planting coverage
levels (in the second sentence), as well
as reviewing the amount that is being
paid for prevented planting purposes.
Response: Since no changes to this
section were proposed, the
recommended changes are substantive
in nature, and the public was not
provided an opportunity to comment on
the recommended changes, the
recommendations cannot be
incorporated in the final rule. No
change has been made.
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Section 15—Winter Coverage Option
Comment: One commenter supported
the change to allow insurance on fall
planted dry peas with a Winter
Coverage Option. The commenter
assumes the Winter Coverage Option
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will be available for qualified lentil
varieties planted in the fall.
Response: FCIC has retained the
Winter Coverage Option in the final
rule. Coverage for fall-planted lentils
will be available under the Winter
Coverage Option if they are designated
as a type on the Special Provisions and
the Winter Coverage Option is available
in the county.
Comment: One commenter stated they
are supportive of the proposal to offer
the Winter Coverage Option for dry peas
and using the language from the Small
Grains Crop Provisions Wheat or Barley
Winter Coverage Endorsement as a
starting point for developing similar
language for dry peas. However, the
commenter believes some of the
language in the Winter Coverage
Endorsement is not appropriate for dry
peas and should be clarified.
Response: As stated above, FCIC has
retained the Winter Coverage Option in
the final rule. Based on other comments
FCIC has received regarding the Winter
Coverage Option, FCIC has made
revisions to section 15 to ensure the
language is appropriate for dry peas.
Comment: One commenter asked if
there would be any rules regarding
acreage that is insured under the Winter
Coverage Option and is planted after the
fall final planting date. The commenter
also asked if the acreage is still
insurable under the Winter Coverage
Option or does the Winter Coverage
Option not apply to that acreage.
Response: Acreage planted after the
fall final planting date is not covered
under the Winter Coverage Option.
However, that acreage is potentially
insurable in the spring provided there is
an adequate stand in the spring. The late
planting provisions in the Dry Pea Crop
Provisions are similar to the late
planting provisions in the Wheat or
Barley Winter Coverage Endorsement.
Comment: Two commenters stated the
opening statement in the Winter
Coverage Option that reads ‘‘(This is a
continuous endorsement)’’ could be
deleted since this a section of the
proposed Dry Pea Crop Provisions, not
a separate endorsement. The
commenters also stated if the phrase,
‘‘(This is a continuous endorsement),’’ is
not removed, then ‘‘endorsement’’
should be changed to ‘‘option.’’
Two commenters also stated the
Winter Coverage Option is referred to as
an ‘‘endorsement’’ in the opening
phrase ‘‘(This is a continuous
endorsement)’’ but the more appropriate
reference would be an ‘‘option.’’
One commenter also stated, since this
is a continuous option, there should be
some reference to the possibility of
canceling the Winter Coverage Option
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51579
without also having to cancel the dry
pea coverage altogether.
Response: The commenters are correct
that the phrase, ‘‘(This is a continuous
endorsement),’’ is not necessary and has
revised the provisions accordingly.
Since the opening phrase has been
removed, there is no need to change the
word ‘‘endorsement’’ to ‘‘option.’’
The commenters are also correct that
there should be some reference to
canceling the Winter Coverage Option
without also having to cancel the dry
pea coverage altogether. FCIC has added
language in section 15(e) to state the
option will continue in effect until
canceled or coverage under the Dry Pea
Crop Provisions is canceled or
terminated.
Comment: Two commenters suggested
removing proposed section 15(a). The
commenters asked that since some of
the subsections of section 15 state they
are ‘‘in lieu of’’ other sections of the Dry
Pea Crop Provisions whether there are
any remaining that might conflict.
Response: Section 15(a) should not be
removed to ensure that the terms of the
Winter Coverage Option control in case
FCIC has failed to catch any other
conflicts. Under the priority in the Basic
Provisions, since these provisions are all
in the Crop Provisions, they would be
given the same priority without the
inclusion of section 15(a). However,
language in redesignated sections 15(g)
and 15(h) have been revised to remove
the ‘‘in lieu of’’ language as it is no
longer necessary because of the
language in section 15(a). Redesignated
sections 15(g) and 15(h) have been
revised to be consistent with provisions
in the Wheat or Barley Winter Coverage
Endorsement.
Comment: Two commenters asked if
it was necessary to state in proposed
section 15(b) CAT level of coverage is
not available under this option when
the CAT Endorsement already states no
options or endorsements can apply at
the CAT level of coverage.
One commenter stated proposed
section 15(b) should be reworded to
state ‘‘This option is not available under
Catastrophic Risk Protection (CAT).’’
Response: Section 15(b) is necessary
to make it clear because this is an
endorsement offered under the Crop
Provisions, not a stand alone
endorsement. However, FCIC has
reworded it to specify the insured must
have purchased additional coverage
under the Dry Pea Crop Provisions.
Comment: Two commenters stated the
statement in proposed section 15(d) that
‘‘You must have a Dry Pea Crop
Insurance Policy in effect and elect to
insure the dry pea type under such
policy’’ is unnecessary since the
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proposed Winter Coverage Option will
be part of the Dry Pea Crop Provisions,
not a separate endorsement like the one
for Wheat and Barley. Also, the
reference to insuring ‘‘the dry pea type’’
is confusing, suggesting that producers
would be able to insure one type but not
have to insure all dry peas in the
county.
One commenter suggested proposed
sections 15(d) and (j) seem to be
somewhat repetitive and could either be
removed or combined into a single
provision. Since this option is built into
the Dry Pea Crop Provisions, it is
obvious that the policy would have to
be in effect and it appears that the intent
of earlier sections is that, once the crop
is insured, all insurable acreage of the
various dry pea types planted in the
county must be insured.
Response: Proposed section 15(d) is
not necessary so FCIC has not retained
that provision in the final rule.
Comment: Two commenters stated it
is unclear if the different references in
proposed sections 15(d), (e), (h), (j), (l)
and (l)(3)(iii) to ‘‘dry pea type’’ and ‘‘dry
pea crop’’ are intended or not. The
commenters asked if some or all of these
references could be revised to ‘‘dry
peas’’ instead.
Response: FCIC has revised the
phrases ‘‘dry pea type’’ and ‘‘dry pea
crop’’ as ‘‘dry peas’’ in all cases in
section 15, except for redesignated
section 15(k)(3)(iii). ‘‘Dry pea type’’ in
redesignated section 15(k)(3)(iii) has
been retained because the provisions in
that section pertain to individual dry
pea types, rather than all dry peas.
Comment: Two commenters suggested
changing the word ‘‘coverage’’ to
‘‘option’’ in proposed section 15(e).
Response: FCIC has revised the
provision as suggested.
Comment: Two commenters stated
proposed section 15(e) states ‘‘You must
select this coverage on your application
for insurance on or before the sales
closing date * * *’’ While 15(h) would
change the contract change date to June
30, the cancellation date to September
30, and the termination date to
November 30, there is no change of the
sales closing date indicated for when
the Winter Coverage Option is elected.
The commenters asked if it is intended
that Winter Coverage on dry peas can be
applied for on March 15. The
commenters stated according to
proposed section 15(f), ‘‘Coverage * * *
begins on the later of the date we accept
your application for coverage or on the
fall final planting date * * *’’ so an
application signed on the March 15
sales closing date would not actually
provide winter coverage that first year.
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Response: The producer will be
required to elect the Winter Coverage
Option by the fall sales closing date,
which will be listed on the Special
Provisions. Coverage under the Winter
Coverage Option will attach on the later
of the date the application is accepted
or on the fall final planting date. Section
15 has also been revised by adding a
new paragraph (d) to clarify the Winter
Coverage Option is only available in
counties for which the Special
Provisions designate both a fall final
planting date and a spring final planting
date.
Comment: One commenter expressed
a concern about allowing the producer
the ability to change the coverage level
or price election percentage once this
option is in effect, since it is a
continuous option. For example, assume
a producer elects this option and plants
and insures fall-planted dry peas. The
next year the same producer decides not
to plant fall-planted dry peas but the
option remains in effect since it is
continuous (assume the producer does
not remove it from the policy). The
commenter asked if a producer in this
situation could change the coverage
level or percentage of price election up
to the spring sales closing date since no
acreage was planted in the fall. The
commenter recommended that
producers in this situation be allowed to
make such changes up to the spring
sales closing date (especially since there
is a much larger amount of acreage that
is planted to spring types as compared
to fall types). The commenter stated this
is allowed in the Small Grains Crop
Provisions via the definition of ‘Sales
Closing Date’. The commenter
recommended this be done by either
adding a definition for ‘Sales Closing
Date’ or by adding some language to this
effect directly to section 15 to allow
these types of changes to be made in the
event that no fall-planted acreage is
planted while this option is still in
effect.
Response: The producer should be
allowed to make policy changes until
the spring sales closing date if the
producer does not have any insured fallplanted dry pea acreage. Provisions
have been added to section 15(e) to state
producers may change their coverage
level or percentage of price election for
dry pea types until the spring sales
closing date if the Winter Coverage
Option is selected, but they do not have
any insured fall-planted acreage or the
fall-planted acreage is not eligible for
this option. Provisions have also been
added to section 15(e) to allow the
producer to cancel coverage for any
succeeding crop year by giving written
notice on or before the cancellation date
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preceding the crop year for which the
cancellation of the option is to be
effective. Without this additional
language, the Winter Coverage Option
would continue in effect as long as the
Dry Pea Crop Provisions are in effect
since the Winter Coverage Option is a
continuous option. This language allows
the producer to cancel the Winter
Coverage Option if he desires.
Comment: One commenter stated
proposed section 15(g) is establishing
separate optional units for dry peas
initially planted in the fall versus dry
peas initially planted in the spring. The
commenter stated they are not aware of
any dual types of dry peas and question
whether this provision is even necessary
when separate units by type are
currently allowed.
Response: As stated above, there are
dual types of dry peas. An example is
Austrian peas (a.k.a. black peas; dry
peas with a dark and mottled seed coat),
which are a variety of peas typically
characterized as having moderate to
good winter survivability. Their cold
temperature tolerance and subsequent
reproductive phase do not have a
vernalization requirement similar to
winter wheat. Therefore, they can
successfully be produced when sown in
the fall or spring.
Section 15(g) is not needed as the
provisions in section 2 already allow
separate units by type and it has been
removed. Proposed sections 15(h)
through 15(l) have been redesignated as
15(g) through 15(k), respectively.
Comment: One commenter stated
proposed section 15(g) states ‘‘In
addition to the provisions of section
34(b) of the Basic Provisions and section
2 of the Dry Pea Crop Provisions,
optional units may be established for
dry peas if each optional unit contains
only dry peas initially planted in the fall
or only dry peas initially planted in the
spring.’’ The commenter asked if the
fall-planted acreage in a unit is Austrian
Winter peas, and within that same unit,
Lentils are planted in the spring, would
these two separate types not be allowed
to have separate optional units since
one is fall-planted and one is springplanted.
Response: As stated above, FCIC has
removed the provisions in proposed
section 15(g). If Austrian peas are
planted in the fall and Lentils are
planted in the same unit in the spring,
then the Austrian peas and the Lentils
could be separate optional units,
provided the producer elected optional
units, since the Austrian peas and the
Lentils are different types.
Comment: One commenter stated
since the Winter Coverage Option is not
a separate option to the Dry Pea Crop
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Provisions, the phrase ‘‘section 2 of the
Dry Pea Crop Provisions’’ in section
15(g) should be changed to ‘‘section 2 of
these Crop Provisions.’’
Response: As stated above, the
provisions in section 15(g) have been
removed from the Winter Coverage
Option.
Comment: One commenter stated
proposed section 15(h) establishes a
separate contract change date,
cancellation date, and termination date
for coverage under this option. The
commenter assumed the Special
Provisions will also establish a separate
sales closing date and acreage reporting
date as well.
Response: Proposed section 15(h) is
now section 15(g). The Special
Provisions will provide a separate sales
closing date and acreage reporting date
for dry peas covered under the Winter
Coverage Option. Additionally,
provisions have been added to section
15(g) to handle situations that arise
when a policy has amounts due and the
sales closing date for the next crop year
occurs before the termination date for
the previous crop year. For example, dry
peas insured under the Winter Coverage
Option have a fall sales closing date of
September 30, 2009 for the 2010 crop
year and a termination date of
November 30 for the 2009 crop year. If
the insured purchases insurance for dry
peas by September 30, 2009 for the 2010
crop year, and does not pay the
premium by the termination date of
November 30, 2009, the dry pea
coverage would be terminated and no
coverage would be effective for the 2010
crop year.
Comment: Two commenters stated
according to proposed section 15(h),
whenever a producer requests the
Winter Coverage Option, the contract
change date is changed to June 30, the
cancellation date to September 30, and
the termination date to November 30 for
‘‘* * * all your fall planted and spring
planted dry pea crop in the county.’’
The commenter asks whether this
means that all future policy changes to
the Dry Pea Crop Provisions will have
to be published by the June 30 contract
change date or whether different
versions could be in effect for producers
with and without the Winter Coverage
Option. The commenter also asks
whether there will be a different sales
closing date.
Response: Proposed section 15(h) is
now section 15(g). Since the earliest
contract change date is now June 30 for
dry peas, all future policy changes to the
Dry Pea Crop Provisions will have to be
published by the June 30 contract
change date. There will also be a
separate sales closing date listed on the
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Special Provisions for fall-planted
acreage under the Winter Coverage
Option.
Comment: Two commenters stated the
reference to ‘‘Dry Pea Crop Insurance
Provisions’’ in proposed section 15(l)
should be changed to ‘‘these Crop
Provisions’’ or ‘‘Dry Pea Crop
Provisions’’ to be consistent with the
other references in the policy.
Response: FCIC has revised the
provision in redesignated section 15(k)
to read ‘‘these Crop Provisions.’’
Comment: One commenter stated
proposed section 15(l)(2) indicates that
if it is not practical to replant to a fallplanted type of dry peas that the insured
must replant to a spring type in order
to maintain coverage based on the fallplanted type. The commenter is
concerned with the various different
types of dry peas that could be insured
in some areas and the different level of
yields and prices that can exist between
the different types of dry peas
(particularly fall types versus spring
types). The commenter recommended
that in this situation the coverage would
revert to the respective spring type that
is planted rather than remain based on
the fall-planted type, which may not be
reflective of the yield or price potential
of the spring-planted type. In addition,
the current language would allow
producers the ability to adversely select
against the insurance provider by
planting a lower yielding or priced
spring type in these types of situations.
Response: Proposed section 15(l)(2) is
now section 15(k)(2). As stated above,
coverage should not revert to the
respective spring-planted type rather
than remain based on the fall-planted
type. Allowing spring-planted dry peas
to be insured as fall-planted dry peas
when they have been replanted after a
failed fall dry pea crop is permitted
because insurance has already attached
to the fall dry pea crop and replanting
to the spring crop is a means to mitigate
the damages associated with the failed
fall crop. No change has been made.
In addition to the changes described
above, FCIC has made the following
changes:
1. Revised the definition of ‘‘contract
seed peas’’ in section 1 to remove the
phrase ‘‘Dry Peas’’ and replace it with
the phrase ‘‘Peas (Pisum sativum L.).’’
This revision clarifies contract seed peas
are only insurable if they are of the
genera Pisum sativum. The current
phrase ‘‘Dry Peas’’ in the definition
implies contract seed peas can be
categorized as any dry peas type
specified in the definition of ‘‘dry peas.’’
2. Amended proposed section 3 by
revising paragraph (a). The proposed
provision states ‘‘In lieu of the
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requirements of section 3 of the Basic
Provisions’’ but should state ‘‘In
addition to the requirements of section
3 of the Basic Provisions.’’ The phrase
‘‘In addition to’’ implies section 3 of the
Dry Pea Crop Provisions supplements
section 3 of the Basic Provisions; the
phrase ‘‘In lieu of’’ implies section 3 of
the Dry Pea Crop Provisions replaces
section 3 of the Basic Provisions. The
intent of the provision is to be a
supplement to the Basic Provisions.
3. Revised the introductory text in
redesignated section 13(b) by revising
the phrase ‘‘your pea crop’’ to ‘‘your dry
pea crop’’ and in redesignated section
13(d) by revising the phrase ‘‘total pea
production’’ to ‘‘total dry pea
production’’ to be consistent with the
terminology used throughout the policy.
4. Revised the examples in
redesignated section 13(b) to make them
easier to read.
5. Revised the introductory text in
redesignated section 13(d) to add the
word ‘‘dry’’ before the word ‘‘pea.’’ This
change is consistent with the phrase
‘‘dry pea’’ used throughout the policy.
6. Revised the introductory text in
redesignated section 13(e) to be
consistent with the introductory text in
redesignated sections 13(c)(1) and
13(c)(2).
7. Revised redesignated section 14 to
remove the reference to ‘‘limited
coverage,’’ since it is no longer
applicable.
8. Revised section 15(e). The
proposed provisions state, ‘‘You must
select this coverage on your application
for insurance on or before the sales
closing date.’’ This language only
addresses how to select the Winter
Coverage Option if producers are
applying for coverage; it does not
address how to select the Winter
Coverage Option if producers are
renewing their coverage. The revised
provisions state, ‘‘You must select this
option on your application for
insurance, or on a form approved by us,
on or before the sales closing date for
the initial year in which you wish to
insure dry peas under this option.’’ This
language distinguishes how producers
select the Winter Coverage Option if
they are applying for coverage and if
they are renewing their coverage.
List of Subjects in 7 CFR Part 457
Crop insurance, Dry peas, Reporting
and recordkeeping requirements.
Final Rule
Accordingly, as set forth in the
preamble, the Federal Crop Insurance
Corporation amends 7 CFR part 457
effective for the 2009 and succeeding
crop years as follows:
I
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PART 457—COMMON CROP
INSURANCE REGULATIONS
1. The authority citation for 7 CFR
part 457 continues to read as follows:
I
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 457.140 is amended as
follows:
I A. Amend the introductory text by
removing ‘‘2003’’ and adding ‘‘2009’’ in
its place;
I B. Remove the undesignated
paragraph immediately preceding
section 1;
I C. In section 1:
I 1. Remove the definition of ‘‘base
price’’ and add the definition of ‘‘base
contract price’’ in its place;
I 2. Amend the definition of
‘‘combining’’ by removing the word
‘‘place’’ and adding the word ‘‘places’’
in its place;
I 3. Revise the definition of ‘‘contract
seed peas’’;
I 4. Revise the definition of ‘‘dry peas’’;
I 5. Add a new sentence at the end of
the definition for ‘‘harvest’’;
I 6. Amend the definition of ‘‘local
market price’’ by adding the phrase, ‘‘,
unless otherwise specified in the
Special Provisions’’ at the end of the last
sentence;
I 7. Revise the definition of ‘‘nurse crop
(companion crop)’’;
I 8. Revise the definition of ‘‘practical
to replant’’;
I 9. Revise the definition of ‘‘price
election’’;
I 10. Remove the definitions of ‘‘seed
company’’ and ‘‘seed company
contract’’;
I 11. Add definitions for ‘‘processor/
seed company’’, ‘‘processor/seed
company contract’’, ‘‘swathed’’, ‘‘type’’,
and ‘‘windrow’’.
I D. Revise sections 2 and 3;
I E. Amend section 6 removing the
phrase ‘‘seed company’’ and adding the
phrase ‘‘processor/seed company’’ in its
place;
I F. Revise section 7;
I G. In section 8, revise paragraph (b)
and add paragraphs (c) and (d);
I H. Amend section 9 by revising the
introductory text and paragraph (a) and
by removing the phrase ‘‘normally is
harvested’’ from paragraph (b) and
adding the phrase ‘‘is normally
harvested’’ in its place;
I I. Redesignate sections 11 through 13
as sections 12 through 14, respectively;
I J. Add a new section 11;
I K. Revise newly redesignated section
12;
I L. In newly redesignated section 13:
I 1. Throughout the section, remove the
phrases ‘‘section 12’’ and ‘‘sections 12’’
and add the phrases ‘‘section 13’’ and
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I
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‘‘sections 13’’ in their place,
respectively;
I 2. Revise paragraph (a);
I 3. Amend the introductory text of
paragraph (b) by adding the word ‘‘dry’’
before the word ‘‘pea’’;
I 4. Amend paragraph (b)(5) by adding
the word ‘‘contract’’ after the word
‘‘base’’;
I 5. Revise the examples in paragraph
(b);
I 6. Revise paragraph (c)(1) introductory
text;
I 7. Amend paragraph (c)(1)(i) by
adding the word ‘‘contract’’ after the
word ‘‘base’’;
I 8. Revise the introductory text in
paragraph (c)(2);
I 9. Amend the introductory text in
paragraph (d) by adding the word ‘‘dry’’
after the word ‘‘total’’;
I 10. Amend paragraph (d)(1)(iii) by
removing the phrase ‘‘, excluding
Austrian Winter Peas,’’;
I 11. Revise paragraph (e) introductory
text and (e)(1) introductory text.
I M. Amend newly redesignated section
14 of § 457.140 by removing the phrase
‘‘limited or’’; and
I N. Add a new section 15.
The additions and revisions read as
follows:
§ 457.140 Dry pea crop insurance
provisions.
*
*
*
*
*
1. Definitions.
*
*
*
*
*
Base contract price. The price per
pound stipulated in the processor/seed
company contract without regard to
discounts or incentives that may apply,
and that will be paid to the producer for
at least 50 percent of the total
production under contract with the
processor/seed company.
*
*
*
*
*
Contract seed peas. Peas (Pisum
sativum L.) grown under the terms of a
processor/seed company contract for the
purpose of producing seed to be used in
planting a future year’s crop.
Dry peas. Peas (Pisum sativum L.),
Austrian Peas (Pisum sativum spp
arvense), Lentils (Lens culinaris Medik.),
Chickpeas (Cicer arietinum L.), and
other types as listed on the Special
Provisions.
*
*
*
*
*
Harvest. * * * Dry peas that are
swathed prior to combining are not
considered harvested.
*
*
*
*
*
Nurse crop (companion crop). A crop
planted into the same acreage as another
crop to improve the growing conditions
for the crop with which it is grown, and
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that is intended to be harvested
separately.
*
*
*
*
*
Practical to replant. In addition to the
definition contained in the Basic
Provisions, it will not be considered
practical to replant:
(a) Contract seed peas unless the
processor/seed company will accept the
production under the terms of the
processor/seed company contract.
(b) Fall-planted dry peas more than 25
days after the final planting date for the
corresponding spring-planted type of
dry peas.
(c) All other dry peas more than 25
days after the final planting date unless
replanting is generally occurring in the
area.
Price election. In addition to the
provisions of the definition contained in
the Basic Provisions, the price election
for contract seed peas will be the
percentage you elect (not to exceed 100
percent) of the base contract price and
used for the purposes of determining
premium and indemnity for contract
seed peas under this policy.
Processor/seed company. Any
business enterprise regularly engaged in
the processing of contract seed peas,
that possesses all licenses and permits
for marketing contract seed peas
required by the state in which it
operates, and that owns, or has
contracted, sufficient drying, screening,
and bagging or packaging equipment to
accept and process the contract seed
peas within a reasonable amount of time
after harvest.
Processor/seed company contract. A
written agreement between the producer
and the processor/seed company,
executed by the acreage reporting date,
containing at a minimum:
(a) The producer’s promise to plant
and grow one or more specific varieties
of contract seed peas, and deliver the
production from those varieties to the
processor/seed company;
(b) The processor/seed company’s
promise to purchase all the production
stated in the contract; and
(c) A fixed price, or a method to
determine such price based on
published information compiled by a
third party, that will be paid to the
producer for at least 50 percent of the
production stated in the contract.
Swathed. Severance of the stem and
pods from the ground without removal
of the seeds from the pods and placing
them into windrows.
Type. A category of dry peas
identified as a type in the Special
Provisions.
Windrow. Dry peas where the plants
are cut and placed in a row.
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2. Unit Division.
In addition to, or instead of,
establishing optional units by section,
section equivalent, or FSA farm serial
number and by irrigated and nonirrigated acreage as provided in the unit
division provisions contained in the
Basic Provisions, separate optional units
may be established for each dry pea type
as specified on the Special Provisions.
Contract seed peas and dry pea types
not grown under a processor/seed
company contract may qualify for
separate optional units even if they
share a common variety provided each
dry pea type is grown on separate
acreage and the production is kept
separate.
3. Insurance Guarantees, Coverage
Levels, and Prices for Determining
Indemnities.
(a) In accordance with the
requirements of section 3(b)(1) of the
Basic Provisions, you may select only
one coverage level for each type listed
on the Special Provisions. However, if
you elect the Catastrophic Risk
Protection (CAT) level of insurance for
any dry pea type, the CAT level of
coverage will be applicable to all
insured dry pea acreage in the county.
(b) In addition to the requirements of
section 3 of the Basic Provisions:
(1) If the Special Provisions do not
designate separate price elections by
type, you may select only one price
election for all dry peas in the county
insured under this policy.
(2) If the Special Provisions designate
separate price elections by type, you
may select one price election for each
dry pea type so designated in the
Special Provisions even if the prices for
each type are the same. The price
elections you choose for each type are
not required to have the same
percentage relationship to the maximum
price offered by us for each type. For
example, if you choose 100 percent of
the maximum price election for one
type, you may choose 75 percent of the
maximum price election for another
type.
(c) In addition to the requirements of
section 3 of the Basic Provisions, in
counties with both a fall and spring
sales closing date for the insured crop:
(1) If you do not have any insured fallplanted dry pea acreage covered under
the Winter Coverage Option, you may
change your coverage level or
percentage of price election until the
spring sales closing date; or
(2) If you have any insured fallplanted dry pea acreage covered under
the Winter Coverage Option, you may
not change your coverage level or
percentage of price election after the fall
sales closing date.
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(d) If a dry pea type is added after the
sales closing date, we will assign:
(1) A coverage level equal to the
lowest coverage level you selected for
any other dry pea types; and
(2) A price election percentage equal
to:
(i) 100 percent of the price election if
you elected additional coverage; and
(ii) 55 percent of the price election if
you elected catastrophic level of
coverage.
*
*
*
*
*
7. Insured Crop.
(a) In accordance with section 8 of the
Basic Provisions, the crop insured will
be all the dry pea types in the county
for which a premium rate is provided by
the actuarial documents:
(1) In which you have a share;
(2) That are planted for harvesting
once maturity is reached as:
(i) Dry peas; or
(ii) Contract seed peas, if the
processor/seed company contract is
executed on or before the acreage
reporting; and
(3) That are not (unless allowed by the
Special Provisions or by written
agreement):
(i) Interplanted with another crop;
(ii) Planted into an established grass
or legume;
(iii) Planted as a nurse crop; or
(iv) Planted to plow down, graze,
harvest as hay, or otherwise not harvest
as a mature dry pea crop.
(b) You will be considered to have a
share in the insured crop if, under the
processor/seed company contract, you
retain control of the acreage on which
the dry peas are grown, you are at risk
of loss (i.e., if there is a reduction in
quantity or quality of your dry pea
production, you will receive less
income under the contract), and the
processor/seed company contract is in
effect for the entire insurance period.
(c) In counties for which the actuarial
documents provide premium rates for
the Winter Coverage Option (see section
15), coverage is available for dry peas
between the time coverage begins and
the spring final planting date. Coverage
under the option is effective only if you
qualify under the terms of the option
and you elect the option by the sales
closing date.
8. Insurable Acreage.
*
*
*
*
*
(b) Any acreage of the insured crop
damaged before the final planting date,
to the extent that producers in the
surrounding area would normally not
further care for the crop, must be
replanted unless we agree that it is not
practical to replant.
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(c) Whenever the Special Provisions
designate both fall and spring final
planting dates:
(1) Any fall-planted dry peas that is
damaged before the spring final planting
date, to the extent that growers in the
area would normally not further care for
the crop, must be replanted to a fallplanted type of dry peas to maintain
insurance based on the fall-planted type
unless we agree that replanting is not
practical. If it is not practical to replant
to a fall-planted type of dry peas but it
is practical to replant to a springplanted type, you must replant to a
spring-planted type to keep your
insurance coverage based on the fallplanted type in force.
(2) Any fall-planted dry pea acreage
that is replanted to a spring-planted
type when it was practical to replant the
fall-planted type will be insured as the
spring-planted type and the production
guarantee, premium and price election
applicable to the spring-planted type
will be used. In this case, the acreage
will be considered to be initially
planted to the spring-planted type.
(3) Notwithstanding section 8(d)(1)
and (2), if you have elected coverage
under the Winter Coverage Option (if
available in the county), insurance will
be in accordance with the option.
(d) Whenever the Special Provisions
designate only a spring final planting
date, any acreage of a fall-planted dry
pea crop is not insured unless you
request such coverage on or before the
spring sales closing date, and we agree
in writing that the acreage has an
adequate stand in the spring to produce
the yield used to determine your
production guarantee.
(1) The fall-planted dry pea crop will
be insured as a spring-planted type for
the purpose of the production
guarantee, premium and price election.
(2) Insurance will attach to such
acreage on the date we determine an
adequate stand exists or on the spring
final planting date if we do not
determine adequacy of the stand prior to
the spring final planting date.
(3) Any acreage of such fall-planted
dry peas that is damaged after it is
accepted for insurance but before the
spring final planting date, to the extent
that growers in the area would normally
not further care for the crop, must be
replanted to a spring-planted type of dry
pea unless we agree it is not practical to
replant. No replanting payment will be
made.
(4) If fall-planted acreage is not to be
insured it must be recorded on the
acreage report as uninsured fall-planted
acreage.
9. Insurance Period.
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In accordance with the provisions of
section 11 of the Basic Provisions, and
subject to the provisions provided by
the Winter Coverage Option (see section
15) if you elect such option, the
insurance period is as follows:
(a) Coverage for fall-planted dry peas
not covered by the Winter Coverage
Option will begin on the earlier of April
15 or the date we agree to accept the
acreage for insurance, but not before
March 1, unless otherwise specified on
the Special Provisions.
*
*
*
*
*
11. Replanting Payments.
(a) A replanting payment is allowed
as follows:
(1) In lieu of provisions in section 13
of the Basic Provisions that limit the
amount of a replant payment to the
actual cost of replanting, the amount of
any replanting payment will be
determined in accordance with these
Crop Provisions;
(2) You must comply with all
requirements regarding replanting
payments contained in section 13 of the
Basic Provisions (except as allowed in
section 11(a)(1)) and in the Winter
Coverage Option (see section 15), if
applicable;
(3) The insured crop must be damaged
by an insurable cause of loss to the
extent that the remaining stand will not
produce at least 90 percent of the
production guarantee for the acreage;
(4) The acreage must have been
initially planted to a spring type of the
insured crop in those counties with only
a spring final planting date;
(5) When the Winter Coverage Option
is in effect for the acreage, damage must
occur after the fall final planting date in
those counties where both a fall and
spring final planting date are
designated;
(6) Replanting payments are not
available for damaged fall planted dry
pea acreage if you have not elected to
cover such acreage under the Winter
Coverage Option; and
(7) The replanted crop must be seeded
at a rate sufficient to achieve a total
(undamaged and new seeding) plant
population that will produce at least the
yield used to determine your production
guarantee.
(b) The maximum amount of the
replanting payment per acre will be the
lesser of 20.0 percent of the production
guarantee or 200 pounds, multiplied by
your price election, multiplied by your
share, unless otherwise stated in the
Special Provisions.
(c) When the crop is replanted using
a practice that is uninsurable for an
original planting, the liability on the
unit will be reduced by the amount of
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the replanting payment. The premium
amount will not be reduced.
(d) Replanting payments will be
calculated using the price election and
production guarantee for the dry pea
type that is replanted and insured. For
example, if damaged smooth green and
yellow pea acreage is replanted to
lentils, the price election and
production guarantee applicable to
lentils will be used to calculate any
replanting payment that may be due. A
revised acreage report will be required
to reflect the replanted type.
Notwithstanding the previous two
sentences, the following will have a
replanting payment based on the
guarantee and price election for the crop
type initially planted:
(1) Any damaged fall-planted type of
dry peas replanted to a spring-planted
type that retains insurance based on the
production guarantee and price election
for the fall-planted type; and
(2) Any acreage replanted at a reduced
seeding rate into a partially damaged
stand of the insured crop.
12. Duties in the Event of Damage or
Loss.
Representative samples are required
in accordance with section 14 of the
Basic Provisions.
13. Settlement of Claim.
(a) We will determine your loss on a
unit basis. In the event you are unable
to provide records of production that are
acceptable to us for any:
(1) Optional units, we will combine
all optional units for which acceptable
records of production were not
provided; or
(2) Basic units, we will allocate any
commingled production to such units in
proportion to our liability on the
harvested acreage for the units.
(b) * * *
*
*
*
*
*
For example:
In this example, you have not elected
optional units by type. You have a 100
percent share in 100 acres of springplanted smooth green dry edible peas in
the unit, with a 70 percent guarantee of
4,000 pounds per acre and a price
election of $0.09 per pound. Your
selected price election percentage is 100
percent. You are only able to harvest
200,000 pounds. Your indemnity would
be calculated as follows:
(1) 100 acres × 4,000 pounds =
400,000-pound guarantee;
(2) 400,000-pound guarantee × $0.09
price election = $36,000.00 value of
guarantee;
(9) 200,000-pound production to
count × $0.09 price election =
$18,000.00 value of production to count;
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(12) $36,000.00 value of guarantee ¥
$18,000.00 value of production to count
= $18,000.00 loss; and
(13) $18,000.00 × 100 percent share =
$18,000.00 indemnity payment.
You also have a 100 percent share in
100 acres of contract seed peas in the
same unit, with a 65 percent guarantee
of 5,000 pounds per acre and a base
contract price of $0.40 per pound. Your
selected price election percentage is 75
percent. You are only able to harvest
450,000 pounds. Your total indemnity
for both spring-planted smooth green
dry edible peas and contract seed peas
would be calculated as follows:
(1) 100 acres × 4,000 pounds =
400,000-pound guarantee for the springplanted smooth green dry edible pea
type;
(2) 400,000-pound guarantee × $0.09
price election = $36,000.00 value of
guarantee for the spring-planted smooth
green dry edible pea type;
(4) 100 acres × 5,000 pounds =
500,000-pound production to count for
the contract seed pea type;
(5) 500,000-pound guarantee × $0.40
base contract price = $200,000.00 gross
value of guarantee for the contract seed
pea type;
(6) $200,000 × .75 price election
percentage = $150,000 net value of
guarantee for the contract seed pea type;
(8) $36,000.00 + $150,000.00 =
$186,000.00 total value of guarantee;
(9) 200,000-pound production to
count × $0.09 price election =
$18,000.00 value of production to count
for the spring-planted smooth green dry
edible pea type;
(10) 450,000-pound production to
count × $0.30 = $135,000.00 value of
production to count for the contract
seed pea type;
(11) $18,000.00 + $135,000.00 =
$153,000.00 total value of production to
count;
(12) $186,000.00 ¥ $153,000.00 =
$33,000.00 loss; and
(13) $33,000.00 loss × 100 percent
share = $33,000.00 indemnity payment.
(c) * * *
(1) For mature production meeting the
objective, measurable minimum quality
requirements (e.g., size, germination
percentage) contained in the processor/
seed company contract, and for mature
production that does not meet such
requirements due to uninsured causes:
*
*
*
*
*
(2) For mature production not meeting
the objective, measurable minimum
quality requirements (e.g., size,
germination percentage) contained in
the processor/seed company contract,
due to insurable causes, and immature
production that is appraised:
*
*
*
*
*
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ebenthall on PRODPC60 with RULES
Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 / Rules and Regulations
(e) Mature dry pea production that
does not qualify as contract seed peas
under the policy terms or does not meet
the objective, measurable minimum
quality requirements (e.g., size,
germination percentage) contained in
the processor/seed company contract,
may be adjusted for quality deficiencies.
(1) Production will be eligible for
quality adjustment in accordance with
the following, unless otherwise
specified in the Special Provisions:
*
*
*
*
*
15. Winter Coverage Option.
(a) In the event of a conflict between
this section and sections 1 through 14
of these Crop Provisions, this section
will control.
(b) You must have purchased
additional coverage under the Dry Pea
Crop Provisions in order to select this
option.
(c) In return for payment of the
additional premium designated in the
actuarial documents, this option is
available in counties for which the
actuarial documents provide premium
rates for the Winter Coverage Option.
(d) This option is available only in
counties for which the Special
Provisions designate both a fall final
planting date and a spring final planting
date.
(e) You must select this option on
your application for insurance, or on a
form approved by us, on or before the
sales closing date for the initial year in
which you wish to insure dry peas
under this option.
(1) Failure to do so means you have
rejected this coverage for the dry pea
crop planted in the fall and this option
is void.
(2) This option will continue in effect
until canceled or coverage under the
Dry Pea Crop Provisions is canceled or
terminated.
(3) This option may be canceled by
you or us for any succeeding crop year
by giving written notice to the other
party on or before the cancellation date
contained in section 15(g) preceding the
crop year for which the cancellation of
this option is to be effective.
(4) You may change your coverage
level or percentage of price election for
dry pea types until the spring sales
closing date if you have selected this
option, but do not have any insured fall
planted acreage or your fall planted
acreage is not eligible for this option.
(f) Coverage under this option begins
on the later of the date we accept your
application for coverage or on the fall
final planting date designated in the
Special Provisions. Coverage ends on
the spring final planting date designated
in the Special Provisions.
VerDate Aug<31>2005
15:18 Sep 03, 2008
Jkt 214001
(g) If you elect this option for dry peas
initially planted in the fall, the
following dates will be applicable to all
your fall-planted and spring-planted dry
peas in the county:
(1) Contract change date is June 30
preceding the cancellation date;
(2) Cancellation date is September 30;
and
(3) Termination date is November 30.
For a policy with amounts due, when
the sales closing date is prior to the
previous crop year termination date,
such policies will terminate for the
current crop year even if insurance
attached prior to the termination date.
Such termination will be considered
effective as of the sales closing date and
no insurance will be considered to have
attached for the crop year and no
indemnity, prevented planting or
replant payment will be owed.
(h) All notices of damage must be
provided to us not later than 15 days
after the spring final planting date
designated in the Special Provisions.
(i) All insurable acreage of each fall
planted dry pea type covered under this
option must be insured.
(j) The amount of any indemnity paid
under the terms of this option will be
subject to any reduction specified in the
Basic Provisions for multiple crop
benefits in the same crop year.
(k) Whenever any acreage of dry peas
planted in the fall is damaged during
the insurance period and at least 20
acres or 20 percent of the insured
planted acreage in the unit, whichever
is less, does not have an adequate stand
to produce at least 90 percent of the
production guarantee for the acreage,
you may, at your option, take one of the
following actions:
(1) Continue to care for the damaged
dry peas. By doing so, coverage will
continue under the terms of the Basic
Provisions, these Crop Provisions and
this option;
(2) Replant the acreage to an
appropriate type of insured dry peas, if
it is practical, and receive a replanting
payment in accordance with the terms
of section 11. By doing so, coverage will
continue under the terms of the Basic
Provisions, these Crop Provisions and
this option, and the production
guarantee for the dry pea type planted
in the fall will remain in effect; or
(3) Destroy the remaining crop on
such acreage:
(i) By destroying the remaining crop,
you agree to accept an appraised
amount of production determined in
accordance with section 13(d)(1) of
these Crop Provisions to count against
the unit production guarantee. This
amount will be considered production
to count in determining any final
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
51585
indemnity on the unit and will be used
to settle your claim as described in
section 13.
(ii) You may use such acreage for any
purpose, including planting and
separately insuring any other crop if
such insurance is available.
(iii) If you elect to plant and elect to
insure spring-planted dry pea acreage of
the same dry pea type (you must elect
whether or not you want insurance on
the spring-planted acreage of the same
dry pea type at the time we release the
fall-planted acreage), you must pay
additional premium for insurance. Such
acreage will be insured in accordance
with the policy provisions that are
applicable to acreage that is initially
planted in the spring to the same dry
pea type, and you must:
(A) Plant the spring-planted acreage
in a manner which results in a clear and
discernable break in the planting pattern
at the boundary between it and any
remaining acreage of the fall-planted dry
pea acreage; and
(B) Store or market the production in
a manner which permits us to verify the
amount of spring-planted production
separately from any fall-planted
production. In the event you are unable
to provide records of production that are
acceptable to us, the spring-planted
acreage will be considered to be a part
of the original fall-planted unit.
Signed in Washington, DC, on August 26,
2008.
Eldon Gould,
Manager, Federal Crop Insurance
Corporation.
[FR Doc. E8–20128 Filed 9–3–08; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1291
[Docket No. AMS–FV–08–0057; FV–08–379
IFR]
RIN 0581–AC88
Specialty Crop Block Grant Program—
Farm Bill; Notice of Request for
Approval of a New Information
Collection
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: This rule provides regulations
to administer the Specialty Crop Block
Grant Program—Farm Bill (SCBGP–FB)
to enhance the competitiveness of
specialty crops. This rule is intended to
E:\FR\FM\04SER1.SGM
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Agencies
[Federal Register Volume 73, Number 172 (Thursday, September 4, 2008)]
[Rules and Regulations]
[Pages 51573-51585]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20128]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 73, No. 172 / Thursday, September 4, 2008 /
Rules and Regulations
[[Page 51573]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC14
Common Crop Insurance Regulations; Dry Pea Crop Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the
Common Crop Insurance Regulations; Dry Pea Crop Insurance Provisions by
including the insurability of additional types of dry peas, by offering
winter coverage, by allowing replanting payments, and by making
chickpeas insurable under the Dry Pea Crop Provisions. The changes will
apply for the 2009 and succeeding crop years for all Dry Pea counties
with a contract change date on or after November 30, 2008.
DATES: Effective Date: This rule is effective October 6, 2008.
FOR FURTHER INFORMATION CONTACT: Claire White, Economist, Product
Management, Product Administration and Standards Division, Risk
Management Agency, United States Department of Agriculture, Beacon
Facility, Stop 0812, Room 421, PO Box 419205, Kansas City, MO 64141-
6205, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
rule is non-significant for the purpose of Executive Order 12866 and,
therefore, it has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Pursuant to the provisions of the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35), the collections of information in this rule
have been approved by OMB under control number 0563-0053.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act of 2002,
to promote the use of the Internet and other information technologies
to provide increased opportunities for citizen access to Government
information and services, and for other purposes.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This rule contains no Federal mandates (under the
regulatory provisions of title II of the UMRA) for State, local, and
tribal governments or the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of UMRA.
Executive Order 13132
It has been determined under section 1(a) of Executive Order 13132,
Federalism, that this rule does not have sufficient implications to
warrant consultation with the States. The provisions contained in this
rule will not have a substantial direct effect on States, or on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation. For
instance, all producers are required to submit an application and
acreage report to establish their insurance guarantees and compute
premium amounts, and all producers are required to submit a notice of
loss and production information to determine the amount of an indemnity
payment in the event of an insured cause of crop loss. Whether a
producer has 10 acres or 1000 acres, there is no difference in the kind
of information collected. To ensure crop insurance is available to
small entities, the Federal Crop Insurance Act authorizes FCIC to waive
collection of administrative fees from limited resource farmers. FCIC
believes this waiver helps to ensure that small entities are given the
same opportunities as large entities to manage their risks through the
use of crop insurance. A Regulatory Flexibility Analysis has not been
prepared since this regulation does not have an impact on small
entities, and therefore, this regulation is exempt from the provisions
of the Regulatory Flexibility Act (5 U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988 on civil justice reform. The provisions of this rule will not
have a retroactive effect. The provisions of this rule will preempt
State and local laws to the extent such State and local laws are
inconsistent herewith. With respect to any direct action taken by FCIC
or to requiring 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
This rule finalizes changes to 7 CFR part 457.140 (Dry Pea Crop
Insurance Provisions) that were published by FCIC
[[Page 51574]]
on January 18, 2008, as a notice of proposed rulemaking in the Federal
Register at 73 FR 3411-3417. The public was afforded 60 days to submit
comments after the regulation was published in the Federal Register.
A total of 119 comments were received from five commenters. The
commenters were one insurance services organization, one grower
association, and three insurance providers.
The public comments received regarding the proposed rule and FCIC's
responses to the comments are listed below (under applicable subject
headings) identifying issues and concerns, and the changes made, if
any, to address the comments.
General
Comment: One commenter stated contract seed peas and contract seed
beans have their own unique method for properly calculating the actual
production history (APH) as outlined in Exhibit 27 of the Crop
Insurance Handbook (CIH). The commenter claims it has to track back and
forth between dollars and pounds and receive 10 years of new Reference
(Base) Year Adjustment Factors (RYAF) each year. All 10 numbers change
every year. The commenter states that the intent of the procedure is
good as it tries to provide coverage for contract seed peas that do not
pass germination testing and, therefore, receive a reduced price.
However, the commenter thought this could also be accomplished by using
the same methodology as is used for green peas. This would simplify the
administration of this program and remove the need for having Exhibit
27 of the CIH as the APH would be based on `Dividing the dollar amount
received by the contract price per pound for the base contract price.'
Using the green pea methodology would allow the guarantee to be
expressed in pounds rather than dollars and eliminate the need for
RYAFs. The approved APH yield would no longer have to be converted from
dollars per acre to pounds per acre for entry on the acreage report.
The commenter states that this APH procedure has been in place only for
contract seed pea types of dry peas and contract seed bean types of dry
beans. The commenter recommended these procedures be reevaluated to see
if they are still necessary and if this procedure could be revised to
be consistent with what is being done for green peas. This would
simplify the administration of this program.
Response: Since the recommended change involves APH procedure and
not the Dry Pea Crop Provisions, no change has been made in the final
rule. FCIC will evaluate this recommendation to determine if APH
procedures for contract seed dry peas can be made consistent with seed
green peas.
Comment: Two commenters applauded FCIC for including chickpeas
(a.k.a. garbanzo beans) in the Dry Pea Crop Provisions. Chickpeas are
produced in dry pea and lentil growing regions and producers should
have the option to purchase coverage for these crops under one policy.
Response: FCIC has retained the provisions in the final rule that
allow chickpeas to be covered under the Dry Pea Crop Provisions in
applicable States and counties as determined by FCIC.
Comment: Two commenters stated the words ``fall planted'' and
``spring planted'' are most often used without hyphens throughout the
Crop Provisions, though hyphens are used in the section 13(b) example.
It would be helpful to be consistent, and preferably use the hyphens to
make it easier to read.
Response: FCIC has revised the provisions as suggested.
Section 1--Definitions
Comment: One commenter recommended the definition of ``base price''
be revised to include both ``seed company'' and ``processor'' contracts
because dry pea producers often have the choice to purchase seed from
seed companies and processors.
Response: FCIC has revised the definition of ``base contract
price'' to include processor contracts and now refers to ``processor/
seed company contract.'' FCIC has also removed the definitions of
``seed company'' and ``seed company contract'' and replaced the
definitions with ``processor/seed company'' and ``processor/seed
company contract,'' respectively. Therefore, the phrases ``seed
company'' and ``seed company contract'' have been replaced with the
phrases ``processor/seed company'' and ``processor/seed company
contract,'' respectively, throughout the policy to be consistent with
the definition of ``base contract price.''
Comment: Two commenters recommended replacing the word ``place''
with ``places'' in the definition of ``combining.''
Response: FCIC has revised the definition as suggested.
Comment: One commenter supported the revision to the definition of
``dry peas'' to allow insurability of additional types of dry peas in
accordance with the Special Provisions. Three commenters also stated
the word ``and'' before the word ``Chickpeas'' in the definition of
``dry peas'' should be removed and replaced with a comma. Two
commenters suggested rewording the phrase ``and those types'' to state
``and any other types.''
Response: FCIC has retained the provisions in the final rule, which
allows insurability of additional types of dry peas via the Special
Provisions. FCIC has removed the word ``and'' and replaced it with a
comma. FCIC has reworded the phrase ``and those types'' as ``and other
types.''
Comment: One commenter supported adding the sentence, ``dry peas
that are swathed prior to combining are not considered harvested,'' in
the definition of ``harvest.''
Response: FCIC proposed this change in the proposed rule and will
retain it in the final rule.
Comment: One commenter supported revising the definition of ``local
market price'' to specify that factors not associated with grading
factors under the United States Standards for Whole Dry Peas, Split
Peas and Lentils will not be considered, unless specified in the
Special Provisions.
Response: FCIC has retained the proposed definition in the final
rule.
Comment: Two commenters asked, in the definition of ``practical to
replant,'' if the added statement that it will not be considered
practical to replant fall-planted dry peas more than 25 days after the
final planting date for the corresponding spring-planted type of dry
pea conflicts with the last sentence of 8(b), which states ``We will
not require you to replant if it is not practical to replant the type
of dry peas originally planted.'' The commenters also asked if fall-
planted and spring-planted dry peas are different types or the same
type planted at different times.
Response: The commenter is correct that the statement that fall-
planted dry peas will not be considered practical to replant more than
25 days after the final planting date for the corresponding spring-
planted type of dry pea conflicts with the last sentence of 8(b). FCIC
has removed the referenced provisions of section 8(b). Fall-planted and
spring-planted dry peas are different types planted at different times.
Comment: Two commenters suggested reformatting the definition of
``practical to replant'' so it is easier to read.
Response: FCIC has reformatted the definition of ``practical to
replant'' to make it easier to read.
Comment: Three commenters suggested revising the definition of
``price election'' to change the term ``base price'' to ``base contract
price'' to match the revised definition of ``base contract price.''
[[Page 51575]]
Response: FCIC has revised the definition as suggested.
Comment: One commenter suggested adding a definition of ``sales
closing date'' to address the additional sales closing date that will
be established for acreage insured under the Winter Coverage Option.
Response: A definition of ``sales closing date'' does not need to
be added. Throughout the Dry Pea Crop Provisions, when reference is
made to insurance attaching under the Winter Coverage Option, the Crop
Provisions state the Winter Coverage Option must be elected by the
sales closing date. Further, the Special Provisions will contain the
sales closing date for counties with the Winter Coverage Option in
effect. No change will be made.
Comment: One commenter stated the word ``variety'' in the
definition of ``seed company contract'' has been changed to ``type.''
The commenter stated the contracts they have received in years past
make specific reference to a variety of seed and not a specific type.
The commenter asked if it will be considered an invalid contract if the
seed company contracts do not state the specific type or if the
contract states the specific variety whether the insurance provider can
determine the type.
The commenter also asked the following questions: (1) With the
proposed change to have the contract state a specific type, will
separate units by each type of dry pea seed under contract be allowed;
(2) will the Special Provisions be changed to identify each specific
type that is insurable by type for contract seed or will the Special
Provisions remain the same and all varieties of dry peas under contract
for seed will be insured as the contract seed pea type.
Response: The commenter is correct that processor contracts and
seed company contracts make specific reference to varieties, rather
than types. Therefore, FCIC has not retained the proposed changes. This
means that contract seed peas may be insured as a separate optional
unit only if contract seed peas are listed on the Special Provisions as
an insurable type. The distinct varieties listed on the contract will
not be eligible for separate optional units.
Comment: Two commenters suggested revising the definition of
``swathed'' in order to align it with the wording of ``swathed'' in
other Crop Provisions. In the proposed context, one may conclude and
argue that placing the crop into more than one windrow would not be
considered swathed.
Response: FCIC has revised the definition for clarification.
Section 2--Unit Division
Comment: Two commenters stated this section may need to be
clarified as they are not sure how contract seed peas fit into the unit
structure as defined in this section of the policy. The commenters
asked if Austrian peas grown under a seed company contract and other
Austrian peas not grown under a seed company contract in the same
section would qualify for separate optional units.
Response: Section 2 has been revised to clarify that separate
optional units can be established for contract seed peas and dry peas
not grown under a processor/seed company contract even if each type
shares a common variety, provided each type is grown on separate
acreage and the production is kept separate. This means that Austrian
peas grown under a processor/seed company contract and other Austrian
peas not grown under a processor/seed company contract in the same
section qualify for separate optional units, provided the Austrian peas
grown under a processor/seed company contract meet all policy
requirements for insurability as contract seed peas, and the producer
has elected optional units. Austrian peas grown for harvest as mature
dry peas would be insurable as either a: (1) Fall Austrian pea type; or
(2) spring Austrian pea type, whichever is applicable, if provided on
the Special Provisions, and all qualifying acreage of seed peas
(regardless of type, e.g. fall Austrian peas, spring smooth green and
yellow peas, etc.) would be insurable as a separate optional unit when
insured as a contract seed pea type. If the acreage of Austrian peas
grown under contract for seed did not meet the policy requirements to
be insured under the contract seed pea type, then this acreage and
acreage of Austrian peas not grown under contract would be included in
the same unit.
Comment: Two commenters said the proposed rule appears to delete
section 2(b), which currently allows optional units for contract seed
peas if the seed contract specifies the number of acres contracted. The
commenter asked if this means contract seed peas will no longer qualify
for separate optional units (unless there are separate contracts for
the different dry pea types that qualify), or will contract seed peas
be listed as a separate dry pea type on the Special Provisions. Since
the Special Provisions are not included in the proposed rule, it is
difficult to know what kind of change might be intended.
Response: Section 2 has been revised to clarify that contract seed
peas will qualify for optional units if contract seed peas are listed
as a separate type on the Special Provisions.
Section 3--Insurance Guarantees, Coverage Levels and Prices for
Determining Indemnities
Comment: One commenter stated they believe the intent of this
section is to limit the producer to the same single level of coverage
for all types of dry peas that are planted in the county. It also does
not change the requirement to report all acreage of dry peas planted in
the county that are planted to insurable types as listed in the Special
Provisions. This would make this policy consistent with the Dry Bean
Crop Provisions in that it would require all acreage of dry peas to be
insured and all types would be insured at the same coverage level. If
this is not the intent, the commenters recommended that it be changed
to match what is done for dry beans. Otherwise, if the insured is
allowed to have separate coverage levels by type, each type should be
treated as a different crop with a separate administrative fee, etc.
(i.e., California grapes). If the intent is to limit producers to the
same single level of coverage for all types, the language could be
further clarified as follows: ``In lieu of the requirements of section
3 of the Basic Provisions, you must select the same coverage level for
all types listed on the Special Provisions.'' The current language
indicates only a single level can be selected for each type but does
not stipulate that it must be the same. The above language clarifies
that only one level can be selected and it must be the same for all
types.
Response: The intent of the proposed provisions in section 3(a) and
3(b) is to allow separate coverage levels and price election
percentages by type listed on the Special Provisions. According to
section 7 of the Dry Pea Crop Provisions, all dry pea types in the
county for which there is a premium rate must be insured. Therefore,
the requirement to report all acreage of dry peas planted to insurable
types in the county remains the same. Offering a separate coverage
level by type does not automatically imply each type be treated as a
separate crop. No change has been made.
Comment: Two commenters also stated the language in proposed
section 3(a) allows separate coverage levels by type and proposed
section 3(b) allows separate price percentages by type. As is currently
proposed, this would allow different coverage levels for different
types even within the same unit. The
[[Page 51576]]
commenter does not know of any other crop that allows different
coverage levels within the crop and objects to allowing separate
coverage levels by type.
Response: The proposed provisions would allow different coverage
levels for different types even within the same basic unit. However,
since optional units are available by type, it is likely that most
producers will opt for optional units for each of their insurable types
of dry peas. Offering separate coverage levels by type provides the dry
pea producers another method to manage their risk.
Comment: One commenter stated there seems to be missing information
in proposed section 3(a) that surrounds the ability for the insured to
select different coverage levels by type. For example, two different
types of dry peas are listed on the application as being insured at a
70 percent and 65 percent coverage level, respectively. At acreage
reporting time, the producer identifies a third type of dry pea planted
that was not listed on the application. The commenter questions at what
coverage level would the insurance provider insure that type. One
suggestion is to allow the producer to select a coverage level for the
crop and if the producer wants to insure a specific type of dry peas at
a different coverage level, he must identify that separate coverage
level on the application for that specific type. If the producer does
not specify a separate coverage level for a specific type, the type
will be insured under the coverage level selected at the crop level.
Response: The commenter is correct that there is missing
information. FCIC has revised section 3 to include provisions stating
if a dry pea type is added after the sales closing date, the dry pea
type will be assigned a coverage level equal to the lowest coverage
level selected for any other dry pea types; and a price election
percentage equal to 100 percent if additional coverage is elected and
55 percent if catastrophic level of coverage is elected.
Comment: One commenter recommended that the last portion of the
lead-in paragraph in proposed section 3(b) be revised as follows: ``* *
* in which case you may select a different price election percentage
for each such dry pea type so designated in the Special Provisions * *
*'' This clarifies that if a different price election is offered by
type that a different price election percentage could be elected for
each such type and would be consistent with the Dry Bean Crop
Provisions.
Response: FCIC has broken section 3(b) into separate paragraphs for
clarity. FCIC has revised the newly designated section 3(b)(2) to
clarify if the Special Provisions designate a separate price election
by type, the producer may select one price election for each type
listed in the Special Provisions. The price election the producer
chooses for one type is not required to have the same percentage
relationship to the maximum price offered for another type.
Comment: Two commenters stated proposed section 3(b) says the
producer may select only one price election for all dry peas in the
county insured under this policy unless the Special Provisions provide
different price elections for a particular type, in which case the
producer may select one price election for each dry pea type so
designated in the Special Provisions. The commenters asked whether this
means that if the Special Provisions lists three dry pea types, with
one type having a different price election from the other two types
(which show the same price because of the market), those two types
would have to have the same price percentage. In the alternative, the
commenter asks whether it means that as long as the three types are
listed on separate lines, each with its own price election, those are
considered different price elections and producers can choose different
price percentages as well as different coverage levels under proposed
section 3(a). If it is the former, the commenter asks FCIC to consider
revising to ``* * * unless the Special Provisions provide a different
price election for a particular type * * *'' If the latter is correct,
the commenter asks that FCIC consider going back to the current
wording, ``* * * by type'' [as in (b)(1) & (3)]. Depending on the
response to these questions, the references in (b)(1) & (3) to
``different price elections by type'' may need to be reviewed as well.
Response: FCIC has revised the provisions in section 3(b) to
clarify that if there is more than one type of dry pea listed on the
Special Provisions, then each type may have a separate price election
percentage, regardless if the price for one type is the same as the
price for another type. For example, type A and type B are listed on
the Special Provisions. The price for type A is $0.12. The price for
type B is also $0.12. The price election percentage for type A and type
B do not have to be the same even though the price election for type A
is the same as the price election for type B.
Comment: Two commenters stated proposed section 3(b) states that if
there are different price elections, then the producer ``may select one
price election for each dry pea type,'' while proposed section 3(b)(1)
states ``the price elections you choose for each type are not required
to have the same percentage relationship to the maximum price offered
by us for each type.'' The commenter suggested the last phrase of (b)
should be deleted from (b) and combined with (b)(1), which would then
provide the additional options when separate price elections are
designated.
Response: The commenter is correct that the last phrase of section
3(b) should be deleted from (b) and added to the provisions that state
what options the producers have when separate price elections are
designated on the Special Provisions. As stated above, FCIC has also
reformatted section 3(b) to make it easier to read.
Comment: Two commenters stated proposed section 3(b)(2) should
either be moved to the end of section 3(a) because it refers to the
coverage level for catastrophic (CAT) level of coverage, instead of the
percentage of price election, or it should be reworded to address the
percentage of price election for CAT level of coverage. If it remains
in section 3(b), the commenter suggested it should be the first or last
of the three paragraphs under section 3(b) instead of between
paragraphs (1) and (3).
Response: FCIC has moved the provisions related to CAT coverage
proposed in section 3(b)(2) to section 3(a).
Comment: Two commenters suggested revising proposed section 3(b)(3)
because the current wording suggests the producer has a choice of price
elections even if price elections by type are not listed on the Special
Provisions. The commenters suggested revising it to say ``* * * the
same price election percentage applies for each dry pea type.''
Response: The commenter is correct that a producer does not have a
choice of multiple price elections when the Special Provisions do not
designate separate price elections by type. FCIC has revised section
3(b) to state if the Special Provisions do not designate separate price
elections by type, the producer may select only one price election for
all dry peas in the county.
Comment: One commenter supported the right of a producer to select
his/her own separate coverage level on dry peas, lentils and chickpeas.
Response: FCIC has retained the provisions in the final rule. The
producer is allowed to select a separate coverage level for each type
of dry peas.
Section 7--Insured Crop
Comment: Two commenters suggested deleting the word ``to'' before
the phrase ``otherwise not harvest'' in proposed section 7(a)(3)(iv).
[[Page 51577]]
Response: FCIC has revised the provisions as suggested.
Section 8--Insurable Acreage
Comment: Three commenters stated the last sentence of proposed
section 8(b), which states, ``We will not require you to replant if it
is not practical to replant the type of dry peas originally planted,''
indicates it is not required that the producer replant if it is not
practical to replant to the same type of dry peas originally planted.
The commenter questioned if this conflicts with the new language in
proposed section 9(d).
Response: The commenters are correct that the provisions in section
8(b) conflict with the new language in section 9(d). FCIC has removed
the current provisions in section 8(b) and moved the provisions
proposed in section 9(c), 9(d), and 9(e) to section 8 as some of the
language is duplicative and is more appropriate in section 8 regarding
insurable acreage than in section 9 regarding the insurance period.
Section 9--Insurance Period
Comment: Two commenters suggested adding a comma after the middle
phrase ``section 11 of the Basic Provisions'' and adding the word
``the'' before the word ``provisions'' in the introductory text of
section 9.
Response: FCIC has revised the provisions as suggested.
Comment: Three commenters stated the provision proposed in section
9(c) states the following: ``Any acreage of the insured crop damaged
before the final planting date, to the extent that producers in the
surrounding area would not further care for the crop, must be replanted
unless we agree that it is not practical to replant.'' This has the
current language regarding replanting, but otherwise essentially
duplicates provisions currently contained in proposed section 8(b). Two
commenters also stated the last sentence in the provisions currently
contained in section 8(b) states, ``* * * We will not require you to
replant if it is not practical to replant the type of dry peas
originally planted.'' The commenter asked if this sentence, and
proposed section 9(d), belong in section 9 or in section 8. The
commenters also stated similar replanting language also has been added
in proposed section 9(d), particularly (d)(1), and in section 9(e)(3).
The commenter asked that FCIC consider if this language must be
repeated in four different subsections.
Response: As stated above, the commenters are correct that section
9(c) duplicates provisions currently contained in section 8(b). FCIC
has removed the provisions currently contained in section 8(b) and the
language proposed in section 9(c) has been moved to section 8(b). As
stated above, the commenter is also correct that the entire proposed
section 9(d) belongs in section 8 because it related to insurable
acreage. The entire proposed section 9(e) has also been moved to
section 8 because it is more appropriate in section 8.
Comment: One commenter supported the proposal to offer the Winter
Coverage Option for dry peas and using the language from the Small
Grains Crop Provisions as a starting point for developing similar
language for dry peas. However, the commenter believed some of the
language in the Small Grains Crop Provisions that deals with counties
containing both fall and spring final planting dates is not appropriate
for dry peas and should be clarified as indicated below to be more
applicable for dry peas. The commenter stated the second part of
proposed section 9(d)(1) indicates that if it is not practical to
replant to a fall-planted type of dry peas that the insured must
replant to a spring type in order to maintain coverage based on the
fall-planted type. The commenter is concerned with the various
different types of dry peas that could be insured in some areas and the
different level of yields and prices that can exist between the
different types of dry peas (particularly fall types versus spring
types). The commenter recommended that in this situation, coverage
would revert to the respective spring type that is planted rather than
remain based on the fall-planted type, which may not be reflective of
the yield or price potential of the spring-planted type. In addition,
the current language would allow producers the ability to adversely
select against the insurance provider by planting a lower yielding or
priced spring type in these types of situations. The commenter also
stated the above comments would impact proposed section 9(e) as well.
The commenter references Austrian winter peas as an example of a fall-
planted type and they are not aware of a spring-planted version of this
same type of pea. The commenter stated that under this provision, if
they received a request to insure Austrian winter peas in a county with
only a spring final planting date, they would not be able to establish
a yield etc., for a spring seeded type as it does not exist. The
commenter recommended that coverage be based on the fall-planted dry
pea type in these types of situations. In addition, if damage occurs
after such acreage has been accepted for coverage, and must be
replanted to a spring-planted type, the commenter recommended the
coverage revert to the spring-planted type in these situations.
Response: FCIC has retained the Winter Coverage Option provisions
in the final rule. Coverage for the spring peas planted on failed fall
acreage should not revert to the respective spring-planted type rather
than remain based on the fall-planted type. Allowing spring-planted dry
peas to be insured as fall-planted dry peas when it has been replanted
on failed fall dry pea acreage is permitted because insurance has
already attached to the fall dry pea crop and replanting to the spring
crop is a means to mitigate the damages associated with the failed fall
crop.
FCIC is aware of Austrian pea varieties that are spring-planted.
Austrian peas (a.k.a black peas; dry peas with a dark and mottled seed
coat) are a variety of peas typically characterized as having moderate
to good winter survivability. Their cold temperature tolerance and
subsequent reproductive phase do not have a vernalization requirement
similar to winter wheat. Therefore, it can successfully be produced
when sown in the fall or spring.
Section 10--Causes of Loss
Comment: One commenter suggested clarifying section 10(b) to state
``Fire, due to natural causes.''
Response: No changes to this section were proposed. Further, the
current introductory text of section 10 states the specified causes of
loss are in accordance with the Basic Provisions. The Basic Provisions
contain the requirement that all causes of loss must be due to a
naturally occurring event. There is no reason to be repetitive. In
addition, to explicitly state that fire must be due to natural causes
while not including this language with the other listed causes losses
could create the mistaken impression that such other causes do not have
to be from natural causes. No change has been made.
Section 11--Replanting Payments
Comment: Two commenters stated the wording of the last phrase
regarding compliance with all replanting payment requirements in the
Basic Provisions ``* * * and in the Winter Coverage Option for which
you are eligible and which you have elected'' sounds as though every
dry pea producer will be eligible and will elect the Winter Coverage
Option. While the commenters realize this language was taken from the
current Small Grains Crop Provisions, they suggested FCIC consider
rephrasing
[[Page 51578]]
it something like ``* * * and in the Winter Coverage Option, if
applicable.''
Response: FCIC has revised the provisions accordingly.
Comment: Two commenters suggested deleting the period at the end of
section 11(a)(3) and replacing it with a semicolon to be consistent
with the other subsections.
Response: FCIC has revised the provisions as suggested.
Comment: Two commenters suggested deleting ``* * * (see section 15)
* * *'' in proposed section 11(a)(5) since the Winter Coverage Option
has already been referenced in (a)(2). The commenter also suggested
placing the parenthetical reference in proposed section 11(a)(2).
Response: FCIC has revised the provisions as suggested.
Comment: One commenter asked if the producer does not select the
Winter Coverage Option, but does have insured fall-planted acreage in a
county with a fall planting date, and damage occurs prior to insurance
attaching, are those acres still eligible for a replanting payment.
Response: If a producer has insured fall-planted acreage in a
county with a fall and spring final planting date, but does not elect
the Winter Coverage Option, the producer is not eligible for a
replanting payment. FCIC has revised the provisions in section 11 to
clarify fall-planted acreage not covered under the Winter Coverage
Option that is damaged after it is accepted for insurance but before
the spring sales closing date must be replanted but no replanting
payment will be made.
FCIC has also added provisions to section 11(a)(5) to clarify if
the Winter Coverage Option is in effect, damage must occur after the
fall final planting date for the acreage to be eligible for a
replanting payment. This revision clarifies the Winter Coverage Option
must be in effect in order for the fall acreage to be eligible for a
replanting payment.
Comment: Two commenters stated proposed section 11(b) provides a
maximum of ``* * * the lesser of 20.0 percent of the production
guarantee or 200 pounds * * *'' The commenter asks whether the
different dry pea types will have similar yields so that 200 pounds
will be appropriate for all. For example, if chickpeas are shifted from
the Dry Bean policy to the Dry Pea policy, they will have a much higher
maximum than before.
Response: The data shows that all dry pea types will have similar
yields and, therefore, the 200 pounds will be appropriate for all
types. FCIC recognizes chickpeas will have a higher maximum than they
previously did under the Dry Bean Crop Provisions but it should not be
excessive.
Comment: Two commenters stated the lead-in to proposed sections
11(d)(1) and (2) will read more smoothly with the word ``for'' added at
the end of proposed section 11(d).
Response: The addition of ``for'' would make the sentence
grammatically incorrect. No change has been made.
Comment: One commenter stated the last sentence of the lead-in
paragraph of section 11(d) could be removed in addition to items (1)
and (2). Damaged fall-planted acreage that is replanted to a spring-
planted type should have the coverage revert to the applicable spring
type that is planted. The commenter does not believe that item (d)(2)
will occur and could be removed as well.
Response: As stated above, coverage on the acreage replanted to a
spring type on failed fall-planted acreage should not revert to the
spring type, instead of the fall-planted type that was originally
planted. Allowing spring-planted dry peas to be insured as fall-planted
dry peas when it has been replanted after a failed fall dry pea crop is
permitted because insurance has already attached to the fall dry pea
crop and replanting to the spring crop is a means to mitigate the
damages associated with the failed fall crop. It is not considered a
new crop. No change has been made in response to this comment.
Section 12--Duties in the Event of Damage or Loss
Comment: One commenter stated since there is no change being made
to section 14 of the Basic Provisions, there does not appear to be a
need to retain this provision and it could be removed.
Response: Section 14 of the Basic Provisions states representative
samples must be left intact if the Crop Provisions require them. If the
provisions in section 12 were removed, producers would not be required
to maintain representative samples. Therefore, section 12 must remain
in the Dry Pea Crop Provisions in order to require representative
samples. FCIC is only removing provisions in section 12 of the Dry Pea
Crop Provisions that duplicate the provisions in the Basic Provisions.
No change has been made.
Comment: Two commenters supported changing the language in proposed
section 12 to delete the details and simply refer to section 14 of the
Basic Provisions regarding representative samples.
Response: FCIC has retained the provision in the final rule.
Section 13--Settlement of Claim
Comment: Two commenters recommended changing the word ``variety''
to ``type'' in proposed section 13(b)(4) to be consistent with
provisions throughout the policy.
Response: The word ``variety'' should not be changed to ``type'' in
section 13(b)(4). In the definition of ``seed company contract,'' which
has been renamed as ``processor/seed company contract,'' the word
``variety'' has been retained because varieties, rather than types, are
stated in the processor/seed company contracts. No change has been
made.
Comment: Two commenters suggested adding the word ``contract''
between the words ``base'' and ``price'' in proposed section 13(b)(5)
to be consistent with the revised definition of ``base contract
price.''
Response: FCIC has revised the provision as suggested.
Comment: Two commenters suggested changing ``400,000 pounds
guarantee'' to ``400,000-pound guarantee'' in step (1) of both examples
in proposed section 13(b), and step (2) of the second example in
proposed section 13(b). The commenter also suggested making a similar
change to ``500,000-pound guarantee'' in steps (4) and (5) of the
second example in proposed section 13(b).
Response: FCIC has revised the provisions as suggested.
Comment: Two commenters suggested changing the word ``variety'' to
``type'' in subsection (c) to be consistent with provisions throughout
the policy; changing ``base price'' to ``base contract price'' in
proposed section 13(c)(1) to match the revised definition of ``base
contract price;'' and changing ``seed pea processor contract'' to
``seed company contract'' in section 13(c)(2) to match the term used in
the revised ``base contract price'' definition.
Response: As stated above, the word ``variety'' should not be
changed to ``type.'' In the definition of ``seed company contract,''
which has been renamed as ``processor/seed company contract,'' the word
``variety'' has been retained because varieties, rather than types, are
stated in the processor or seed company contracts. FCIC agrees ``base
price'' should be changed to ``base contract price'' and ``seed pea
processor contract'' should be changed to ``seed company contract.''
Based on a previous comment, FCIC has also revised the phrase ``seed
company contract'' to ``processor/seed company contract.'' This phrase
has also been added to section 13(c)(1).
Comment: One commenter recommended adding a reference to
[[Page 51579]]
``objective, measurable minimum quality requirements'' for mature dry
pea production in proposed section 13(c)(2) to be consistent with the
same language that was added in proposed section 13(c)(1).
Response: FCIC has revised the provision as suggested. FCIC has
also revised proposed section 13(c)(1) by adding the word ``mature''
between the words ``for'' and ``production'' to be consistent with the
same language in proposed section 13(c)(2).
Comment: Two commenters suggested the reference in proposed section
13(d)(1)(iii) should be ``section 13(c) or (3)'' instead of ``section
13I or (e).''
Response: FCIC has revised the provision as suggested.
Comment: Two commenters question if chickpeas are moved from the
Dry Bean policy to the Dry Pea policy whether the reference to the
United States Standards for Whole Dry Peas, Split Peas, and Lentils in
proposed section 13(e)(1)(i) also need to refer to the United States
Standards for Beans as in the Dry Beans policy.
Response: FCIC does not believe the reference to the United States
Standards for Whole Dry Peas, Split Peas, and Lentils also needs to
refer to the United States Standards for Beans. FCIC has provided for
additional grade standards to be specified in the Special Provisions.
Therefore, the United States Standards for Beans can be referenced in
the Special Provisions, if needed. The flexibility of the Special
Provisions also allows for different grade standards if other types,
which require a different grade standard, are added on the Special
Provisions in the future. No change has been made.
Section 14--Prevented Planting
Comment: One commenter recommended eliminating the option to
increase prevented planting coverage levels (in the second sentence),
as well as reviewing the amount that is being paid for prevented
planting purposes.
Response: Since no changes to this section were proposed, the
recommended changes are substantive in nature, and the public was not
provided an opportunity to comment on the recommended changes, the
recommendations cannot be incorporated in the final rule. No change has
been made.
Section 15--Winter Coverage Option
Comment: One commenter supported the change to allow insurance on
fall planted dry peas with a Winter Coverage Option. The commenter
assumes the Winter Coverage Option will be available for qualified
lentil varieties planted in the fall.
Response: FCIC has retained the Winter Coverage Option in the final
rule. Coverage for fall-planted lentils will be available under the
Winter Coverage Option if they are designated as a type on the Special
Provisions and the Winter Coverage Option is available in the county.
Comment: One commenter stated they are supportive of the proposal
to offer the Winter Coverage Option for dry peas and using the language
from the Small Grains Crop Provisions Wheat or Barley Winter Coverage
Endorsement as a starting point for developing similar language for dry
peas. However, the commenter believes some of the language in the
Winter Coverage Endorsement is not appropriate for dry peas and should
be clarified.
Response: As stated above, FCIC has retained the Winter Coverage
Option in the final rule. Based on other comments FCIC has received
regarding the Winter Coverage Option, FCIC has made revisions to
section 15 to ensure the language is appropriate for dry peas.
Comment: One commenter asked if there would be any rules regarding
acreage that is insured under the Winter Coverage Option and is planted
after the fall final planting date. The commenter also asked if the
acreage is still insurable under the Winter Coverage Option or does the
Winter Coverage Option not apply to that acreage.
Response: Acreage planted after the fall final planting date is not
covered under the Winter Coverage Option. However, that acreage is
potentially insurable in the spring provided there is an adequate stand
in the spring. The late planting provisions in the Dry Pea Crop
Provisions are similar to the late planting provisions in the Wheat or
Barley Winter Coverage Endorsement.
Comment: Two commenters stated the opening statement in the Winter
Coverage Option that reads ``(This is a continuous endorsement)'' could
be deleted since this a section of the proposed Dry Pea Crop
Provisions, not a separate endorsement. The commenters also stated if
the phrase, ``(This is a continuous endorsement),'' is not removed,
then ``endorsement'' should be changed to ``option.''
Two commenters also stated the Winter Coverage Option is referred
to as an ``endorsement'' in the opening phrase ``(This is a continuous
endorsement)'' but the more appropriate reference would be an
``option.''
One commenter also stated, since this is a continuous option, there
should be some reference to the possibility of canceling the Winter
Coverage Option without also having to cancel the dry pea coverage
altogether.
Response: The commenters are correct that the phrase, ``(This is a
continuous endorsement),'' is not necessary and has revised the
provisions accordingly. Since the opening phrase has been removed,
there is no need to change the word ``endorsement'' to ``option.''
The commenters are also correct that there should be some reference
to canceling the Winter Coverage Option without also having to cancel
the dry pea coverage altogether. FCIC has added language in section
15(e) to state the option will continue in effect until canceled or
coverage under the Dry Pea Crop Provisions is canceled or terminated.
Comment: Two commenters suggested removing proposed section 15(a).
The commenters asked that since some of the subsections of section 15
state they are ``in lieu of'' other sections of the Dry Pea Crop
Provisions whether there are any remaining that might conflict.
Response: Section 15(a) should not be removed to ensure that the
terms of the Winter Coverage Option control in case FCIC has failed to
catch any other conflicts. Under the priority in the Basic Provisions,
since these provisions are all in the Crop Provisions, they would be
given the same priority without the inclusion of section 15(a).
However, language in redesignated sections 15(g) and 15(h) have been
revised to remove the ``in lieu of'' language as it is no longer
necessary because of the language in section 15(a). Redesignated
sections 15(g) and 15(h) have been revised to be consistent with
provisions in the Wheat or Barley Winter Coverage Endorsement.
Comment: Two commenters asked if it was necessary to state in
proposed section 15(b) CAT level of coverage is not available under
this option when the CAT Endorsement already states no options or
endorsements can apply at the CAT level of coverage.
One commenter stated proposed section 15(b) should be reworded to
state ``This option is not available under Catastrophic Risk Protection
(CAT).''
Response: Section 15(b) is necessary to make it clear because this
is an endorsement offered under the Crop Provisions, not a stand alone
endorsement. However, FCIC has reworded it to specify the insured must
have purchased additional coverage under the Dry Pea Crop Provisions.
Comment: Two commenters stated the statement in proposed section
15(d) that ``You must have a Dry Pea Crop Insurance Policy in effect
and elect to insure the dry pea type under such policy'' is unnecessary
since the
[[Page 51580]]
proposed Winter Coverage Option will be part of the Dry Pea Crop
Provisions, not a separate endorsement like the one for Wheat and
Barley. Also, the reference to insuring ``the dry pea type'' is
confusing, suggesting that producers would be able to insure one type
but not have to insure all dry peas in the county.
One commenter suggested proposed sections 15(d) and (j) seem to be
somewhat repetitive and could either be removed or combined into a
single provision. Since this option is built into the Dry Pea Crop
Provisions, it is obvious that the policy would have to be in effect
and it appears that the intent of earlier sections is that, once the
crop is insured, all insurable acreage of the various dry pea types
planted in the county must be insured.
Response: Proposed section 15(d) is not necessary so FCIC has not
retained that provision in the final rule.
Comment: Two commenters stated it is unclear if the different
references in proposed sections 15(d), (e), (h), (j), (l) and
(l)(3)(iii) to ``dry pea type'' and ``dry pea crop'' are intended or
not. The commenters asked if some or all of these references could be
revised to ``dry peas'' instead.
Response: FCIC has revised the phrases ``dry pea type'' and ``dry
pea crop'' as ``dry peas'' in all cases in section 15, except for
redesignated section 15(k)(3)(iii). ``Dry pea type'' in redesignated
section 15(k)(3)(iii) has been retained because the provisions in that
section pertain to individual dry pea types, rather than all dry peas.
Comment: Two commenters suggested changing the word ``coverage'' to
``option'' in proposed section 15(e).
Response: FCIC has revised the provision as suggested.
Comment: Two commenters stated proposed section 15(e) states ``You
must select this coverage on your application for insurance on or
before the sales closing date * * *'' While 15(h) would change the
contract change date to June 30, the cancellation date to September 30,
and the termination date to November 30, there is no change of the
sales closing date indicated for when the Winter Coverage Option is
elected. The commenters asked if it is intended that Winter Coverage on
dry peas can be applied for on March 15. The commenters stated
according to proposed section 15(f), ``Coverage * * * begins on the
later of the date we accept your application for coverage or on the
fall final planting date * * *'' so an application signed on the March
15 sales closing date would not actually provide winter coverage that
first year.
Response: The producer will be required to elect the Winter
Coverage Option by the fall sales closing date, which will be listed on
the Special Provisions. Coverage under the Winter Coverage Option will
attach on the later of the date the application is accepted or on the
fall final planting date. Section 15 has also been revised by adding a
new paragraph (d) to clarify the Winter Coverage Option is only
available in counties for which the Special Provisions designate both a
fall final planting date and a spring final planting date.
Comment: One commenter expressed a concern about allowing the
producer the ability to change the coverage level or price election
percentage once this option is in effect, since it is a continuous
option. For example, assume a producer elects this option and plants
and insures fall-planted dry peas. The next year the same producer
decides not to plant fall-planted dry peas but the option remains in
effect since it is continuous (assume the producer does not remove it
from the policy). The commenter asked if a producer in this situation
could change the coverage level or percentage of price election up to
the spring sales closing date since no acreage was planted in the fall.
The commenter recommended that producers in this situation be allowed
to make such changes up to the spring sales closing date (especially
since there is a much larger amount of acreage that is planted to
spring types as compared to fall types). The commenter stated this is
allowed in the Small Grains Crop Provisions via the definition of
`Sales Closing Date'. The commenter recommended this be done by either
adding a definition for `Sales Closing Date' or by adding some language
to this effect directly to section 15 to allow these types of changes
to be made in the event that no fall-planted acreage is planted while
this option is still in effect.
Response: The producer should be allowed to make policy changes
until the spring sales closing date if the producer does not have any
insured fall-planted dry pea acreage. Provisions have been added to
section 15(e) to state producers may change their coverage level or
percentage of price election for dry pea types until the spring sales
closing date if the Winter Coverage Option is selected, but they do not
have any insured fall-planted acreage or the fall-planted acreage is
not eligible for this option. Provisions have also been added to
section 15(e) to allow the producer to cancel coverage for any
succeeding crop year by giving written notice on or before the
cancellation date preceding the crop year for which the cancellation of
the option is to be effective. Without this additional language, the
Winter Coverage Option would continue in effect as long as the Dry Pea
Crop Provisions are in effect since the Winter Coverage Option is a
continuous option. This language allows the producer to cancel the
Winter Coverage Option if he desires.
Comment: One commenter stated proposed section 15(g) is
establishing separate optional units for dry peas initially planted in
the fall versus dry peas initially planted in the spring. The commenter
stated they are not aware of any dual types of dry peas and question
whether this provision is even necessary when separate units by type
are currently allowed.
Response: As stated above, there are dual types of dry peas. An
example is Austrian peas (a.k.a. black peas; dry peas with a dark and
mottled seed coat), which are a variety of peas typically characterized
as having moderate to good winter survivability. Their cold temperature
tolerance and subsequent reproductive phase do not have a vernalization
requirement similar to winter wheat. Therefore, they can successfully
be produced when sown in the fall or spring.
Section 15(g) is not needed as the provisions in section 2 already
allow separate units by type and it has been removed. Proposed sections
15(h) through 15(l) have been redesignated as 15(g) through 15(k),
respectively.
Comment: One commenter stated proposed section 15(g) states ``In
addition to the provisions of section 34(b) of the Basic Provisions and
section 2 of the Dry Pea Crop Provisions, optional units may be
established for dry peas if each optional unit contains only dry peas
initially planted in the fall or only dry peas initially planted in the
spring.'' The commenter asked if the fall-planted acreage in a unit is
Austrian Winter peas, and within that same unit, Lentils are planted in
the spring, would these two separate types not be allowed to have
separate optional units since one is fall-planted and one is spring-
planted.
Response: As stated above, FCIC has removed the provisions in
proposed section 15(g). If Austrian peas are planted in the fall and
Lentils are planted in the same unit in the spring, then the Austrian
peas and the Lentils could be separate optional units, provided the
producer elected optional units, since the Austrian peas and the
Lentils are different types.
Comment: One commenter stated since the Winter Coverage Option is
not a separate option to the Dry Pea Crop
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Provisions, the phrase ``section 2 of the Dry Pea Crop Provisions'' in
section 15(g) should be changed to ``section 2 of these Crop
Provisions.''
Response: As stated above, the provisions in section 15(g) have
been removed from the Winter Coverage Option.
Comment: One commenter stated proposed section 15(h) establishes a
separate contract change date, cancellation date, and termination date
for coverage under this option. The commenter assumed the Special
Provisions will also establish a separate sales closing date and
acreage reporting date as well.
Response: Proposed section 15(h) is now section 15(g). The Special
Provisions will provide a separate sales closing date and acreage
reporting date for dry peas covered under the Winter Coverage Option.
Additionally, provisions have been added to section 15(g) to handle
situations that arise when a policy has amounts due and the sales
closing date for the next crop year occurs before the termination date
for the previous crop year. For example, dry peas insured under the
Winter Coverage Option have a fall sales closing date of September 30,
2009 for the 2010 crop year and a termination date of November 30 for
the 2009 crop year. If the insured purchases insurance for dry peas by
September 30, 2009 for the 2010 crop year, and does not pay the premium
by the termination date of November 30, 2009, the dry pea coverage
would be terminated and no coverage would be effective for the 2010
crop year.
Comment: Two commenters stated according to proposed section 15(h),
whenever a producer requests the Winter Coverage Option, the contract
change date is changed to June 30, the cancellation date to September
30, and the termination date to November 30 for ``* * * all your fall
planted and spring planted dry pea crop in the county.'' The commenter
asks whether this means that all future policy changes to the Dry Pea
Crop Provisions will have to be published by the June 30 contract
change date or whether different versions could be in effect for
producers with and without the Winter Coverage Option. The commenter
also asks whether there will be a different sales closing date.
Response: Proposed section 15(h) is now section 15(g). Since the
earliest contract change date is now June 30 for dry peas, all future
policy changes to the Dry Pea Crop Provisions will have to be published
by the June 30 contract change date. There will also be a separate
sales closing date listed on the Special Provisions for fall-planted
acreage under the Winter Coverage Option.
Comment: Two commenters stated the reference to ``Dry Pea Crop
Insurance Provisions'' in proposed section 15(l) should be changed to
``these Crop Provisions'' or ``Dry Pea Crop Provisions'' to be
consistent with the other references in the policy.
Response: FCIC has revised the provision in redesignated section
15(k) to read ``these Crop Provisions.''
Comment: One commenter stated proposed section 15(l)(2) indicates
that if it is not practical to replant to a fall-planted type of dry
peas that the insured must replant to a spring type in order to
maintain coverage based on the fall-planted type. The commenter is
concerned with the various different types of dry peas that could be
insured in some areas and the different level of yields and prices that
can exist between the different types of dry peas (particularly fall
types versus spring types). The commenter recommended that in this
situation the coverage would revert to the respective spring type that
is planted rather than remain based on the fall-planted type, which may
not be reflective of the yield or price potential of the spring-planted
type. In addition, the current language would allow producers the
ability to adversely select against the insurance provider by planting
a lower yielding or priced spring type in these types of situations.
Response: Proposed section 15(l)(2) is now section 15(k)(2). As
stated above, coverage should not revert to the respective spring-
planted type rather than remain based on the fall-planted type.
Allowing spring-planted dry peas to be insured as fall-planted dry peas
when they have been replanted after a failed fall dry pea crop is
permitted because insurance has already attached to the fall dry pea
crop and replanting to the spring crop is a means to mitigate the
damages associated with the failed fall crop. No change has been made.
In addition to the changes described above, FCIC has made the
following changes:
1. Revised the definition of ``contract seed peas'' in section 1 to
remove the phrase ``Dry Peas'' and replace it with the phrase ``Peas
(Pisum sativum L.).'' This revision clarifies contract seed peas are
only insurable if they are of the genera Pisum sativum. The current
phrase ``Dry Peas'' in the definition implies contract seed peas can be
categorized as any dry peas type specified in the definition of ``dry
peas.''
2. Amended proposed section 3 by revising paragraph (a). The
proposed provision states ``In lieu of the requirements of section 3 of
the Basic Provisions'' but should state ``In addition to the
requirements of section 3 of the Basic Provisions.'' The phrase ``In
addition to'' implies section 3 of the Dry Pea Crop Provisions
supplements section 3 of the Basic Provisions; the phrase ``In lieu
of'' implies section 3 of the Dry Pea Crop Provisions replaces section
3 of the Basic Provisions. The intent of the provision is to be a
supplement to the Basic Provisions.
3. Revise