Common Crop Insurance Regulations; Texas Citrus Fruit Crop Insurance Provisions, 1337-1345 [2015-32951]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 81, Number 7 (Tuesday, January 12, 2016)]
[Proposed Rules]
[Pages 1337-1345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32951]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR part 457

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


Common Crop Insurance Regulations; Texas Citrus Fruit Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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

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

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

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

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

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

Paperwork Reduction Act of 1995

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

E-Government Act Compliance

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

Unfunded Mandates Reform Act of 1995

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

Executive Order 13132

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

Executive Order 13175

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

Regulatory Flexibility Act

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

[[Page 1338]]

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

Federal Assistance Program

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

Executive Order 12372

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

Executive Order 12988

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

Environmental Evaluation

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

Background

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

[[Page 1339]]

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

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

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

[[Page 1340]]

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

[[Page 1341]]

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

[[Page 1342]]

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

[[Page 1343]]

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

List of Subjects in 7 CFR Part 457

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

Proposed Rule

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

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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

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

[[Page 1344]]

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


Sec.  457.119  Texas citrus fruit crop insurance provisions.

* * * * *

1. Definitions

    Citrus fruit commodity. Includes the following:
    (a) Oranges;
    (b) Grapefruit; and
    (c) Any other citrus fruit designated as a ``citrus fruit 
commodity'' in the actuarial documents.
    Citrus fruit group. A designation in the Special Provisions used to 
identify combinations of citrus fruit commodity types and intended uses 
within a citrus fruit commodity that may be grouped together for the 
purposes of electing coverage levels and identifying the insured crop.
    Commodity type. A specific subcategory of a citrus fruit commodity 
having a characteristic or set of characteristics distinguishable from 
other subcategories of the same citrus fruit commodity.
* * * * *
    Excess wind. A natural movement of air that has sustained speeds 
exceeding 58 miles per hour (50 knots) recorded at the U.S. National 
Weather Service reporting station or any other weather reporting 
station identified in the Special Provisions operating nearest to the 
insured acreage at the time of damage.
* * * * *
    Intended use. The insured's expected end use or disposition of the 
commodity at the time the commodity is reported. Insurable intended 
uses will be specified in the Special Provisions.
    Interplanted. In lieu of the definition contained in section 1 of 
the Basic Provisions, acreage on which two or more agricultural 
commodities are planted in any form of alternating or mixed pattern and 
at least one of these agricultural commodities constitutes an insured 
crop under these Crop Provisions.
    Production guarantee (per acre). In lieu of the definition 
contained in section 1 of the Basic Provisions, the production 
guarantee will be determined by stage as follows:
    * * *
    (b) Second stage production guarantee. The quantity of citrus (in 
tons) determined by multiplying the yield determined in accordance with 
section 3(e) of these Crop Provisions by the coverage level percentage 
you elect.
* * * * *

2. Unit Division

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

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

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

[[Page 1345]]

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

7. Insured Crop

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

8. Insurable Acreage

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

10. Causes of Loss

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

11. Duties in the Event of Damage or Loss

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

12. Settlement of Claim

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

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