Common Crop Insurance Regulations; Florida Citrus Fruit Crop Insurance Provisions; Correction, 4305 [2013-01056]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 78, Number 14 (Tuesday, January 22, 2013)]
[Rules and Regulations]
[Page 4305]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01056]



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Federal Register / Vol. 78, No. 14 / Tuesday, January 22, 2013 / 
Rules and Regulations

[[Page 4305]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC-12-0006]
RIN 0563-AC39


Common Crop Insurance Regulations; Florida Citrus Fruit Crop 
Insurance Provisions; Correction

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule; correcting amendment.

-----------------------------------------------------------------------

SUMMARY: This document contains corrections to the final regulation 
that was published Friday, December 21, 2012 (74 FR 75509-75521). The 
regulation pertains to the insurance of Florida Citrus Fruit.

DATES: Effective Date: January 22, 2013.

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

SUPPLEMENTARY INFORMATION: 

Background

    The final regulation that is the subject of these corrections 
revised the Florida Citrus Fruit Crop Insurance Provisions that 
published on Friday, December 21, 2012, (74 FR 75509-75521).

Need for Correction

    As published, the final regulation contained errors that may prove 
to be misleading and need to be clarified.
    First, the example in section 10(b)(6) that was proposed to be 
revised was mistakenly omitted in the revised text. This amendment adds 
the revised example back into section 10(b)(6).
    Second, the newly designated section 10(d) was revised based on 
comments to show the process of ``relating.'' However, since the newly 
designated section 10(d)(6)(i) references a calculation in the form of 
a decimal rather than a percent, an additional revision should have 
been made to the newly designated section 10(d)(6)(i) by changing the 
number ``100'' to the number ``1.''
    Third, in the newly redesignated section 10(e) the proposed phrase 
``a default juice content'' was not retained in the final rule because 
all citrus fruit insured as fresh will have a default juice content 
provided in the Special Provisions. However, the entire proposed phrase 
``that do not have a default juice content or a Fresh Fruit Factor'' 
should have been removed and replaced with the phrase ``unless 
otherwise'' because all fruit insured as fresh will need to have both a 
default juice content and a Fresh Fruit Factor provided in the Special 
Provisions for the calculations to work correctly.

List of Subjects in 7 CFR Part 457

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

Correction of Publication

    Accordingly, 7 CFR part 457 is corrected by making the following 
correcting amendments:

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

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


0
2. Amend Sec.  457.107 as follows:
0
a. By revising section 10(b)(6);
0
b. By revising the added section 10(d)(6)(i); and
0
c. By revising the newly redesignated section 10(e).
    The revisions and additions read as follows:


Sec.  457.107  Florida citrus fruit crop insurance provisions.

* * * * *
    10. * * *
    (b) * * *
    (6) Totaling all such results of section 10(b)(5) for all 
applicable combinations of commodity types, intended uses, and age 
classes of trees in the unit and subtracting any indemnities paid for 
the current crop year to determine the amount payable for the unit. For 
example, assume a 55-acre unit sustains late season damage. No previous 
damage has occurred on the unit during the crop year and no fruit has 
been harvested. The producer elected the 75 percent coverage level and 
has a 100 percent share. The amount of insurance is $1,180 per acre, 
based on the 75 percent coverage level, for the commodity type, 
intended use, and age class of trees. The amount of potential 
production is 24,530 boxes and the amount of damaged production is 
17,171 boxes. The loss would be calculated as follows:
    1. 55 acres x $1,180 = $64,900 amount of insurance for the unit;
    2. 17,171 / 24,530 = 70 percent average percent of damage;
    3. 70 percent damage -25 percent deductible (100 percent -75 
percent) = 45 percent;
    4. 45 percent / 75 percent = 60 percent adjusted damage; and
    5. 60 percent x $64,900 = $38,940 indemnity.
* * * * *
    (d) * * *
    (6) * * *
    (i) Subtracting the result of section 10(d)(5) from 1;
* * * * *
    (e) Notwithstanding section 10(d), for citrus fruit insured as 
fresh, unless otherwise provided in the Special Provisions, any 
individual citrus fruit not meeting the applicable United States 
Standards for packing as fresh fruit due to an insured cause of loss 
will be considered 100 percent damaged, except that the percent of 
damage for any production sold for an alternative use will be adjusted 
in accordance with section 10(d).
* * * * *

    Signed in Washington, DC, on January 15, 2013.
Brandon C. Willis,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2013-01056 Filed 1-18-13; 8:45 am]
BILLING CODE 3410-08-P