[Federal Register Volume 62, Number 84 (Thursday, May 1, 1997)]
[Rules and Regulations]
[Pages 23628-23634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11351]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 454 and 457


Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance 
Regulations; Common Crop Insurance Regulations, Guaranteed Production 
Plan of Fresh Market Tomato Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes 
specific crop provisions for the insurance of fresh market tomatoes. 
The provisions will be used in conjunction with the Common Crop 
Insurance Policy Basic Provisions, which contain standard terms and 
conditions common to most crops. The intended effect of this action is 
to provide policy changes to better meet the needs of the insured, 
include the current Fresh Market Tomato (Guaranteed Production Plan) 
Crop Insurance Regulations with the Common Crop Insurance Policy for 
ease of use and consistency of terms, and to restrict the effect of the 
current Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance 
Regulations to the 1997 and prior crop years.

EFFECTIVE DATE: June 2, 1997.

FOR FURTHER INFORMATION CONTACT: Louise Narber, Insurance Management 
Specialist, Research and Development, Product Development Division, 
Federal Crop Insurance Corporation, United States Department of 
Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816) 
926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

    The Office of Management and Budget (OMB) has determined this rule 
to be exempt for the purposes of Executive Order No. 12866 and, 
therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    Following publication of the proposed rule, the public was afforded 
60 days to submit comments, data, and opinions on information 
collection requirements previously approved by OMB under OMB control 
number 0563-0003 through September 30, 1998. No public comments were 
received.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public

[[Page 23629]]

Law 104-4, 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) of 
State, local, and tribal governments or the private sector. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of the 
UMRA.

Executive Order No. 12612

    It has been determined under section 6(a) of Executive Order No. 
12612, Federalism, that this rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment. The 
provisions contained in this rule will not have a substantial direct 
effect on States or their political subdivisions, or on the 
distribution of power and responsibilities among the various levels of 
government.

Regulatory Flexibility Act

    This regulation will not have a significant impact on a substantial 
number of small entities. New provisions included in this rule will not 
impact small entities to a greater extent than large entities. Under 
the current regulations, a producer is required to complete an 
application and acreage report. If the crop is damaged or destroyed, 
the insured is required to give notice of loss and provide the 
necessary information to complete a claim for indemnity. The insured 
must also annually certify to the previous years production, if 
adequate records are available to support the certification or receive 
a transitional yield. The producer must maintain the production records 
to support the certified information for at least three years. This 
regulation does not alter those requirements. The amount of work 
required of the insurance companies delivering and servicing these 
policies will not increase significantly from the amount of work 
currently required. This rule does not have any greater or lesser 
impact on the producer. Therefore, this action is determined to be 
exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C. 
605), and no Regulatory Flexibility Analysis was prepared.

Federal Assistance Program

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

Executive Order No. 12372

    This program is not subject to the provisions of Executive Order 
No. 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 No. 12988

    This final rule has been reviewed in accordance with Executive 
Order No. 12988. The provisions of this rule will not have a 
retroactive effect prior to the effective date. The provisions of this 
rule will preempt State and local laws to the extent such State and 
local laws are inconsistent herewith. The administrative appeal 
provisions published at 7 CFR part 11 must be exhausted before any 
action for judicial review may be brought.

Environmental Evaluation

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

National Performance Review

    This regulatory action is being taken as part of the National 
Performance Review Initiative to eliminate unnecessary or duplicative 
regulations and improve those that remain in force.

Background

    On Friday, September 13, 1996, FCIC published a proposed rule in 
the Federal Register at 61 FR 48423-48428 to add to the Common Crop 
Insurance Regulations (7 CFR part 457), a new section, 7 CFR 
Sec. 457.128 Guaranteed Production Plan of Fresh Market Tomato Crop 
Insurance Provisions. The new provisions will be effective for the 1998 
and succeeding crop years. These provisions will replace and supersede 
the current provisions for insuring fresh market tomatoes found at 7 
CFR part 454 (Fresh Market Tomato (Guaranteed Production Plan) Crop 
Insurance Regulations). FCIC also amends 7 CFR part 454 to limit its 
effect to the 1997 and prior crop years.
    Following publication of the proposed rule, the public was afforded 
30 days to submit written comments and opinions. A total of 34 comments 
were received from congressional offices, the crop insurance industry 
and FCIC. The comments received, and FCIC's responses are as follows:
    Comment: One representative of FCIC indicated that the definition 
of ``Acre'' was confusing and recommended it be defined similar to the 
procedure contained in the loss handbook which states ``Divide 43,560 
(the number of square feet in one acre) by the row width for any row 
width below 6 feet. If the row width is 6 feet or more, divide by 6 
feet. (You now have the lineal feet of beds (rows) in one acre. The 
lineal feet of rows per acre cannot be less than 7,260 feet regardless 
of the row width.)'' Another representative of FCIC stated that acreage 
in California is based solely on land area, not on row spacing. All 
acreage in California is planted to 60 inch (5 foot) beds and 43,560 
should not be divided by 5 foot beds.
    Response: The definition will not be changed because it will work 
for all areas of the country as it is now stated.
    Comment: A representative of FCIC recommended a definition for 
``first fruit set'' be added since it is referenced in the stage 
guarantee.
    Response: FCIC agrees and has added a definition for ``first fruit 
set.''
    Comment: The crop insurance industry recommended that the 
definition of ``irrigated practice'' should also address the quality of 
the water being applied.
    Response: FCIC disagrees. There are no clear criteria regarding the 
quality of water necessary to produce a crop. Such criteria would be 
difficult to develop and administer due to the complex interactions of 
various factors. No change has been made to the definition.
    Comment: The crop insurance industry recommended that the 
definition of ``replanting'' be revised because the phrase ``replace 
the tomato plants and then replacing the tomato plants'' was confusing 
and awkward. They suggested ``plant the tomato plants and then 
replacing the tomato plants.''
    Response: FCIC agrees that the wording is awkward and has amended 
the definition for clarification.
    Comment: The crop insurance industry stated that: (1) The 
definition of ``ripe tomato'' is not clear because it does not specify 
how much red color is allowable in determining production to count. The 
packer dictates to the producer what can be packed in terms of color. 
Packers will not allow any red tomatoes to be shipped. (2) The 
definition of ``potential production'' suggests that the insurance 
provider will count green and red tomatoes to determine the amount of 
production. Without a clear definition loss adjusters will not know 
which tomatoes to count when appraising tomatoes. (3) They have a legal 
interpretation that mature green and ripe tomatoes are one and the 
same. Based on the policy language in the proposed rule it is difficult 
to determine which tomatoes are production to count.
    Response: The definition of ``ripe tomato'' has been revised. It 
now states ``A tomato that meets the definition of a mature green 
tomato, except the

[[Page 23630]]

tomato shows some red color and can still be packed for fresh market 
under the agreement or contract with the packer.'' This permits the 
loss adjuster to know that only tomatoes that could be packed will be 
considered production to count.
    Comment: The crop insurance industry questioned whether the phrase 
``all optional units established for a crop year must be identified on 
the acreage report for that crop year'' could cause problems if the 
production reporting date and acreage reporting date do not coincide. 
They stated that policyholders may read this to mean that they can 
change their units at acreage reporting time, even if not supported by 
the production reports submitted by the earlier production reporting 
date.
    Response: Production reports must be filed by the producer the 
earlier of the acreage reporting date or 45 calendar days after the 
cancellation date for the crop and any optional units that the producer 
will select and enter on the acreage report must be determined at that 
time. The provision has been clarified by stating ``all optional units 
you selected for the crop year must be identified on the acreage report 
for that crop year.''
    Comment: Representatives of FCIC recommended that optional unit 
division by irrigated and non-irrigated acreage be deleted. In most of 
the counties it is a requirement that the acreage be irrigated to be 
insurable.
    Response: This provision has been deleted.
    Comment: The crop insurance industry suggested that section 3(a) 
begin with the phase `` You may select only one price percentage ***.'' 
It would not then be necessary to include complex provisions regarding 
different varieties with different maximum prices.
    Response: Methods used to select price elections vary among 
insurance providers. While some require selection of a percentage, 
others require selection of a specific dollar amount. The suggested 
change will not work in all circumstances. No change has been made to 
the provisions.
    Comment: Representatives of FCIC stated that the stage guarantees 
should be revised for California because the input costs do not follow 
the existing guidelines. A major expense of growing fresh tomatoes in 
California is harvesting and packing the crop. Tomatoes in California 
are not tied and staked so the stage guarantees should be similar to 
those of canning and processing tomatoes.
    Response: FCIC agrees and has made the recommended change.
    Comment: The crop insurance industry and FCIC requested that 
cherry, roma and plum type tomatoes be insurable.
    Response: FCIC generally does not offer insurance for cherry, roma, 
or plum type tomatoes because there are no uniform standards for 
marketability. However, in areas where such standards exist, insurance 
may be offered. No acreage of cherry, roma, or plum type tomatoes 
should be included in the guarantee or the production to count, unless 
coverage is provided in the Special Provisions for that type.
    Comment: The crop insurance industry questioned whether the 
provision excluding tomatoes grown for direct marketing from being 
insurable should be under the section for ``Insured Crop'' rather than 
the section for ``Insurable Acreage.''
    Response: FCIC agrees and has changed the location of this 
provision to ``Insured Crop.''
    Comment: Representatives of FCIC recommended deleting the phrase 
``or by written agreement'' from section 8(d), so that only the Special 
Provisions would permit insurance to attach to tomatoes grown for 
direct marketing, interplanted with another crop, or planted into an 
established grass or legume.
    Response: FCIC agrees. This section has been revised and now 
includes the provision to exclude cherry, roma, and plum type tomatoes 
unless allowed by the Special Provisions, to ensure that proper 
standards exist.
    Comment: Representatives of FCIC recommended that a provision be 
added to allow tomatoes to be insured when grown on acreage that has 
not been in annual production for several years. It is a recommended 
practice to grow tomatoes on acreage that has been newly cleared, 
formerly served as pasture land, etc., to eliminate some of the risk of 
disease and insect damage.
    Response: A new section 9(b) has been added to incorporate this 
suggestion.
    Comment: The crop insurance industry stated that section 9(b)(4) in 
the proposed rule (redesignated as section 9(a)(2)(iii)) was difficult 
to understand and opposed the change that would not require the 
application of a fumigant or nematicide if the tomatoes were destroyed 
prior to reaching the second stage. They also stated that nematodes are 
such a problem in some areas that fumigation prior to replanting 
possibly should be required.
    Response: FCIC agrees that these provisions were confusing and that 
a fumigant or nematicide may be needed even if the tomatoes are 
destroyed prior to reaching the second stage. These provisions have 
been modified accordingly, clarified and re-designated.
    Comment: The crop insurance industry questioned whether section 
9(b)(5) of the proposed rule should be moved under the section for 
``Insured Crop'' rather than remaining in the section for ``Insurable 
Acreage.'' Some representatives of FCIC stated that producer and packer 
agreements are not needed because a majority of the growers own the 
packing facilities in their region. They recommended that this section 
be deleted. Other representatives stated that without this provision 
growers might plant acreage after normal dates with the hopes of 
filling a market void.
    Response: This section has been moved under ``Insured Crop'' but 
has not been deleted in order to ensure that those producers who do not 
have their own packing facilities have a market for the crop and to 
prevent producers from planting after normal dates. FCIC cannot offer 
insurance when there is only speculation that a market may exist.
    Comment: Representatives of FCIC and congressional offices 
requested that disease and insect infestation be insurable causes of 
loss according to the provisions for annual crops. They did not agree 
with the limitations that cover these perils only if adverse weather 
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. They 
stated that changing the provision would simplify the rule by 
dispensing with the requirement for a weather determination and more 
closely matches coverage for other crops under the program.
    Response: FCIC agrees and section 11 has been revised accordingly.
    Comment: The crop insurance industry stated that language should be 
added to indicate that quality deductions are not allowed for 
unharvested production.
    Response: The provisions have been amended to specify that 
unharvested production of mature green and ripe tomatoes remaining 
after harvest has ended with a classification size of 6 x 7 (2\8/32\ 
inch minimum diameter) or larger; or that grade in accordance with the 
requirements specified in the Special Provisions for cherry, roma, or 
plum types will be production to count. If the tomato would not have 
met classification size or grade requirements whether harvested or not, 
such tomatoes should not be included as production to count.

[[Page 23631]]

    Comment: Representatives of FCIC recommended that a provision be 
added specifying that only that amount of appraised production in 
excess of the difference between the final stage guarantee and the 
stage guarantee applicable to acreage that does not qualify for the 
final stage guarantee will be considered production to count.
    Response: FCIC agrees and has amended the provisions accordingly.
    Comment: The crop insurance industry stated that they believe the 
written agreement should be continuous if no substantive changes occur 
from one year to the next.
    Response: Written agreements are, by design, temporary and intended 
to address unusual circumstances. If the condition for which a written 
agreement is needed exists each crop year, the Special Provisions 
should be amended to reflect this condition. No change has been made to 
these provisions.
    Comment: The crop insurance industry suggested combining the 
provisions contained in section 14(e) with the provisions in section 
14(a).
    Response: Section 14(e) is intended to be a limited exception, not 
the rule, in those cases where conditions are discovered after the 
sales closing date, which make written agreements necessary. The 
provisions are clearly stated and have not been combined.
    Comment: The crop insurance industry recommended that the tomato 
program be added to several areas to cover fall planted tomato acreage 
in northern Florida, southern Georgia, and Virginia. Specifically, they 
suggested that insurance be available beginning with the 1998 crop year 
in Cook, Colquitt, Tift, Lowndes, and Echols Counties, Georgia, and 
Hamilton County, Florida. They also suggested coverage in North Hampton 
and Accomack Counties, Virginia.
    Response: Recommendations for program expansion must be made to the 
appropriate Regional Service Office within FCIC. Adding coverage in the 
requested areas will not require changes to these provisions.
    Comment: Congressional offices stated that it is crucial that this 
new policy be available for the 1997 crop year in Arkansas.
    Response: To be effective for the 1997 crop year, this rule had to 
be published as a final rule by November 30, 1996. Since that date has 
passed the rule cannot be effective until the 1998 crop year.
    In addition to the changes described above, FCIC has made the 
following changes to the Guaranteed Production Plan of Fresh Market 
Tomato Crop Insurance Provisions:
    1. Section 1--Changed the definition of ``carton,'' ``good farming 
practices,'' ``planting period,'' ``practical to replant,'' ``potential 
production,'' ``production guarantee (per acre),'' and ``row width'' 
for clarification. Deleted the definition of ``prevented planting'' 
because prevented planting coverage is not provided for this crop.
    2. Section 3--Added section 3(d) to specify that production 
guarantees will be contained in the Special Provisions for cherry, 
roma, or plum type tomatoes if these types are insurable.
    3. Section 10--Clarified when coverage begins. Added the provision 
from the current policy that specifies the end of the insurance period 
is ``November 20 of the crop year in California and September 20 in all 
other states.'' This will prevent the provision of ``120 days after the 
date of transplanting or replanting'' from extending the insurance 
period past November 20 in California or September 20 in all other 
states.
    4. Section 12--Added a provision to specify that the maximum amount 
of replanting payment per acre for cherry, pear, or plum types will be 
contained in the Special Provisions.
    5. Section 13--Added provisions regarding production to count for 
cherry, roma and plum type tomatoes if authorized by the Special 
Provisions.

List of Subjects in 7 CFR Parts 454 and 457

    Crop insurance, Fresh market tomato (guaranteed production plan) 
crop insurance regulations, guaranteed production plan of fresh market 
tomato.

Final Rule

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation hereby amends 7 CFR parts 454 and 457 as 
follows:

PART 454--FRESH MARKET TOMATO (GUARANTEED PRODUCTION PLAN) CROP 
INSURANCE REGULATIONS FOR THE 1987 THROUGH 1997 CROP YEARS

    1. The authority citation for 7 CFR part 454 continues to read as 
follows:

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

    2. The part heading is revised to read as set forth above.
    3. Subpart heading ``Subpart--Regulations for the 1987 and 
Succeeding Crop Years'' is removed.
    4. Section 454.7 is amended by revising the introductory text of 
paragraph (d) to read as follows:


Sec. 454.7  The application and policy.

* * * * *
    (d) The application is found at subpart D of part 400, General 
Administrative Regulations (7 CFR 400.37, 400.38). The provisions of 
the Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance 
Regulations for the 1987 through 1997 crop years are as follows:
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1994 AND SUBSEQUENT CONTRACT YEARS

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

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

    5. Section 457.128 is added to read as follows:


Sec. 457.128  Guaranteed Production Plan of Fresh Market Tomato Crop 
Insurance Provisions.

    The Guaranteed Production Plan of Fresh Market Tomato Crop 
Insurance Provisions for the 1998 and succeeding crop years are as 
follows:

    FCIC policies:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

    Reinsured policies:

(Appropriate title for insurance provider)

    Both FCIC and reinsured policies:
    Guarantee Production Plan of Fresh Market Tomato Crop Provisions
    If a conflict exists among the Basic Provisions (Sec. 457.8), 
these Crop Provisions, and the Special Provisions; the Special 
Provisions will control these Crop Provisions and the Basic 
Provisions; and these Crop Provisions will control the Basic 
Provisions.

1. Definitions

    Acre--Forty-three thousand five hundred sixty (43,560) square 
feet of land when row widths do not exceed six feet, or if row 
widths exceed six feet, the land area on which at least 7,260 linear 
feet of rows are planted.
    Carton--A container that contains 25 pounds of fresh tomatoes 
unless otherwise provided in the Special Provisions.
    Days--Calendar days.
    Direct marketing--Sale of the insured crop directly to consumers 
without the intervention of an intermediary such as a wholesaler, 
retailer, packer, processor, shipper or buyer. Examples of direct 
marketing include selling through an on-farm or roadside stand, 
farmer's market, and permitting the general public to enter the 
field for the purpose of picking all or a portion of the crop.
    First fruit set--The date when 30 percent of the plants on the 
unit have produced fruit that has reached a minimum size of one inch 
in diameter.
    FSA--The Farm Service Agency, an agency of the United States 
Department of Agriculture, or a successor agency.

[[Page 23632]]

    Good farming practices--The cultural practices generally in use 
in the county for the crop to make normal progress toward maturity 
and produce at least the yield used to determine the production 
guarantee, and are those recognized by the Cooperative State 
Research, Education, and Extension Service as compatible with 
agronomic and weather conditions in the county.
    Harvest--Picking of marketable tomatoes.
    Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to 
establish the irrigated production guarantee on the irrigated 
acreage planted to the insured crop.
    Mature green tomato--A tomato that:
    (a) Has a heightened gloss due to a waxy skin that cannot be 
torn by scraping;
    (b) Has a well-formed jelly-like substance in the locules;
    (c) Has seeds that are sufficiently hard so they are pushed 
aside and not cut by a sharp knife in slicing; and
    (d) Shows no red color.
    Planting--Transplanting the tomato plants into the field.
    Planting period--The time period designated in the Special 
Provisions during which the tomatoes must be planted to be insured 
as either spring-or fall-planted tomatoes.
    Plant stand--The number of live plants per acre before any 
damage occurs.
    Potential production--The number of cartons per acre of mature 
green or ripe tomatoes that the tomato plants would have produced by 
the end of the insurance period:
    (a) With a classification size of 6 x 7 (2-8/32 inch minimum 
diameter) or larger for all types except cherry, roma, or plum; or
    (b) Meeting the criteria specified in the Special Provisions for 
cherry, roma, or plum types.
    Practical to replant--In lieu of the definition of ``Practical 
to replant'' contained in section 1 of the Basic Provisions 
(Sec. 457.8), practical to replant is defined as our determination, 
after loss or damage to the insured crop, based on factors, 
including but not limited to moisture availability, condition of the 
field, time to crop maturity, and marketing windows that replanting 
the insured crop will allow the crop to attain maturity prior to the 
calendar date for the end of the insurance period. In counties that 
do not have both spring and fall planting periods, it will not be 
considered practical to replant after the final planting date unless 
replanting is generally occurring in the area. In counties that have 
spring and fall planting periods, it will not be considered 
practical to replant after the final planting date for the planting 
period in which the crop was initially planted.
    Production guarantee (per acre)--The number of cartons 
determined by multiplying the approved APH yield per acre by the 
coverage level percentage you elect for the applicable type.
    Replanting--Performing the cultural practices necessary to 
prepare the land to replace the tomato plants and then replacing the 
tomato plants in the insured acreage with the expectation of growing 
a successful crop.
    Ripe tomato--A tomato that meets the definition of a mature 
green tomato, except the tomato shows some red color and can still 
be packed for fresh market under the agreement or contract with the 
packer.
    Row width--The distance in feet from the center of one row of 
plants to the center of an adjacent row.
    Written agreement--A written document that alters designated 
terms of this policy in accordance with section 14.

2. Unit Division

    (a) In addition to the requirements for a unit, as defined in 
section 1 (Definitions) of the Basic Provisions (Sec. 457.8), (basic 
unit) basic units will be provided by planting period if spring and 
fall planting periods are provided for in the Special Provisions.
    (b) Unless limited by the Special Provisions, basic units may be 
divided into optional units only if, for each optional unit you meet 
all the conditions of this section or if a written agreement to such 
division exists.
    (c) Basic units may not be divided into optional units on any 
basis including, but not limited to, production practice, type, 
variety, and planting period, other than as described in this 
section.
    (d) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have 
failed to comply with these provisions. If failure to comply with 
these provisions is determined to be inadvertent, and the optional 
units are combined into a basic unit, that portion of the additional 
premium paid for the optional units that have been combined will be 
refunded to you.
    (e) All optional units you selected for the crop year must be 
identified on the acreage report for that crop year.
    (f) The following requirements must be met for each optional 
unit:
    (1) You must have records, which can be independently verified, 
of planted acreage and production for each optional unit for at 
least the last crop year used to determine your production 
guarantee;
    (2) You must plant the crop in a manner that results in a clear 
and discernable break in the planting pattern at the boundaries of 
each optional unit;
    (3) Records of current year's marketed production or measurement 
of stored production from each optional unit must be maintained in 
such a manner that permits us to verify the production from each 
optional unit, or the production from each unit must be kept 
separate until loss adjustment is completed by us; and
    (4) Optional units may be established by section, section 
equivalent, or FSA Farm Serial Number if each optional unit is 
located in a separate legally identified section. In the absence of 
sections, we may consider parcels of land legally identified by 
other methods of measure including, but not limited to Spanish 
grants, railroad surveys, leagues, labors, or Virginia Military 
Lands, as the equivalent of sections for unit purposes. In areas 
that have not been surveyed using the systems identified above, or 
another system approved by us, or in areas where such systems exist 
but boundaries are not readily discernable, each optional unit must 
be located in a separate farm identified by a single FSA Farm Serial 
Number.

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

    In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) 
of the Basic Provisions (Sec. 457.8):
    (a) You may select only one price election for all the tomatoes 
in the county insured under this policy unless the Special 
Provisions provide different price elections by type, in which case 
you may select one price election for each tomato type designated in 
the Special Provisions. The price election you choose for each type 
must 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 must also choose 100 
percent of the maximum price election for all other types.
    (b) The production guarantees per acre are progressive by stages 
and increase at specified intervals to the final stage production 
guarantee. The stages and production guarantees are as follows:
    (1) For California:

------------------------------------------------------------------------
                            Percent of                                  
                              stage 3                                   
                              (final                                    
           Stage              stage)             Length of time         
                            production                                  
                             guarantee                                  
------------------------------------------------------------------------
1.........................         50   From planting until first fruit 
                                         set.                           
2.........................         70   From first fruit set until      
                                         harvested.                     
3.........................        100   Harvested acreage.              
------------------------------------------------------------------------

    (2) For all other states, except California:

------------------------------------------------------------------------
                            Percent of                                  
                              stage 4                                   
                              (final                                    
           Stage              stage)             Length of time         
                            production                                  
                             guarantee                                  
------------------------------------------------------------------------
                  1.......         50   From planting until qualifying  
                                         for stage 2.                   
2.........................         75   From the earlier of stakes      
                                         driven, one tie and pruning, or
                                         30 days after planting until   
                                         qualifying for stage 3.        
3.........................         90   From the earlier of the end of  
                                         stage 2 or 60 days after       
                                         planting until qualifying for  
                                         stage 4.                       
4.........................        100   From the earlier of 75 days     
                                         after planting or the beginning
                                         of harvest.                    
------------------------------------------------------------------------


[[Page 23633]]

    (c) Any acreage of tomatoes damaged to the extent that producers 
in the area generally would not further care for the tomatoes will 
be deemed to have been destroyed even though you continue to care 
for the tomatoes. The production guarantee for such acreage will be 
the guarantee for the stage in which such damage occurs.
    (d) Any production guarantees for cherry, roma, or plum type 
tomatoes will be specified in the Special Provisions.

4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is September 30 
preceding the cancellation date for counties with a January 15 
cancellation date and December 31 preceding the cancellation date 
for all other counties.

5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation 
and termination dates are:

                      Cancellation and Termination                      
------------------------------------------------------------------------
                 State                                Dates             
------------------------------------------------------------------------
California, Florida, Georgia, and South  January 15.                    
 Carolina.                                                              
All other states.......................  March 15.                      
------------------------------------------------------------------------

6. Report of Acreage

    (a) In addition to the provisions of section 6 (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), you must report the 
row width.
    (b) If spring and fall planting periods are allowed in the 
Special Provisions you must report all the information required by 
section 6 (Report of Acreage) of the Basic Provisions (Sec. 457.8) 
and these Crop Provisions by the acreage reporting date for each 
planting period.

7. Annual Premium

    In lieu of provisions contained in the Basic Provisions 
(Sec. 457.8), for determining premium amounts, the annual premium is 
determined by multiplying the final stage production guarantee by 
the price election, by the premium rate, by the insured acreage, by 
your share at the time coverage begins, and by any applicable 
premium adjustment factor contained in the Special Provisions.

8. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the tomatoes 
in the county for which a premium rate is provided by the actuarial 
table:
    (a) In which you have a share;
    (b) That are transplanted tomatoes that have been planted for 
harvest as fresh market tomatoes;
    (c) That are planted within the spring or fall planting periods, 
as applicable, specified in the Special Provisions;
    (d) That, on or before the acreage reporting date, are subject 
to any agreement in writing (packing contract) executed between you 
and a packer, whereby the packer agrees to accept and pack the 
production specified in the agreement, unless you control a packing 
facility or an exception exists in the Special Provisions; and
    (e) That are not (unless allowed by the Special Provisions):
    (1) Grown for direct marketing;
    (2) Interplanted with another crop;
    (3) Planted into an established grass or legume; or
    (4) Cherry, roma, or plum type tomatoes.

9. Insurable Acreage

    (a) In addition to the provisions of section 9 (Insurable 
Acreage) of the Basic Provisions (Sec. 457.8):
    (1) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the majority of growers in the 
area would normally not further care for the crop, must be replanted 
unless we agree that it is not practical to replant. Unavailability 
of plants will not be considered a valid reason for failure to 
replant.
    (2) We do not insure any acreage of tomatoes:
    (i) Grown by any person if the person had not previously:
    (A) Grown fresh market tomatoes for commercial sales; or
    (B) Participated in the management of a fresh market tomato 
farming operation, in at least one of the three previous years.
    (ii) That does not meet the rotation requirements contained in 
the Special Provisions;
    (iii) On which tomatoes, peppers, eggplants, or tobacco have 
been grown within the previous two years unless the soil was 
fumigated or nematicide was applied before planting the tomatoes, 
except that this limitation does not apply to a first planting in 
Pennsylvania or if otherwise specified in the Special Provisions; or
    (b) In lieu of the provisions of section 9 (Insurable Acreage) 
of the Basic Provisions (Sec. 457.8), that prohibit insurance from 
attaching if a crop has not been planted and harvested in at least 
one of the three previous calendar years, we will insure newly 
cleared land or former pasture land planted to fresh market 
tomatoes.

10. Insurance Period

    In lieu of the provisions of section 11 (Insurance Period) of 
the Basic Provisions (Sec. 457.8):
    (a) Coverage begins on each unit or part of a unit on the later 
of the date you submit your application or when the tomatoes are 
planted.
    (b) Coverage will end on any insured acreage at the earliest of:
    (1) Total destruction of the tomatoes;
    (2) Discontinuance of harvest;
    (3) The date harvest should have started on any acreage that was 
not harvested;
    (4) 120 days after the date of transplanting or replanting;
    (5) Completion of harvest;
    (6) Final adjustment of a loss; or
    (7) November 20 of the crop year in California and September 20 
in all other states.

11. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of 
Loss) of the Basic Provisions (Sec. 457.8), insurance is provided 
only against the following causes of loss that occur during the 
insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (4) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of irrigation water supply, if caused by an insured 
peril that occurs during the insurance period.
    (b) In addition to the causes of loss excluded in section 12 
(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not 
insure against damage or loss of production that occurs or becomes 
evident after the tomatoes have been harvested.

12. Replanting Payment

    (a) In accordance with section 13 (Replanting Payment) of the 
Basic Provisions (Sec. 457.8), a replanting payment is allowed if 
the crop is damaged by an insurable cause of loss and the acreage to 
be replanted has sustained a loss in excess of 50 percent of the 
plant stand.
    (b) The maximum amount of the replanting payment per acre will 
be:
    (1) Seventy (70) cartons multiplied by your price election, 
multiplied by your insured share for all insured tomatoes except 
cherry, roma or plum types; and
    (2) As specified in the Special Provisions for cherry, roma, or 
plum types.
    (c) In lieu of the provisions contained in section 13 
(Replanting Payment) of the Basic Provisions (Sec. 457.8) that 
permit only one replanting payment each crop year, when both spring 
and fall planting periods are contained in the Special Provisions, 
you may be eligible for one replanting payment for acreage planted 
during each planting period within the crop year.

13. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide separate, acceptable production records:
    (1) For any optional units, we will combine all optional units 
for which such production records were not provided; or
    (2) For any basic units, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for the units.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim by:
    (1) Multiplying the insured acreage for each type, if 
applicable, by its respective production guarantee for the stage in 
which the damage occurred;
    (2) Multiplying the results of section 13(b)(1) by the 
respective price election for each type, if applicable;
    (3) Totaling the results of section 13(b)(2);
    (4) Multiplying the total production to be counted of each type, 
if applicable, (see section 13(c)) by the respective price election;
    (5) Totaling the results of section 13(b)(4);
    (6) Subtracting this result of section 13(b)(5) from the results 
in section 13(b)(3); and

[[Page 23634]]

    (7) Multiplying the result of section 13(b)(6) by your share.
    (c) The total production to count (in cartons) from all 
insurable acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) That is damaged solely by uninsured causes; or
    (D) For which you fail to provide production records that are 
acceptable to us;
    (ii) Potential production lost due to uninsured causes;
    (iii) Unharvested production of mature green and ripe tomatoes 
remaining after harvest has ended:
    (A) With a classification size of 6 x 7 (2\8/32\ inch minimum 
diameter) or larger for types other than cherry, roma, or plum; or
    (B) That grade in accordance with the requirements specified in 
the Special Provisions for cherry, roma or plum types.
    (iv) Potential production on unharvested acreage and potential 
production on acreage when final harvest has not been completed;
    (v) Potential production on insured acreage that you intend to 
put to another use or abandon, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for 
that acreage will end when you put the acreage to another use or 
abandon the crop. If agreement on the appraised amount of production 
is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for representative samples 
of the crop in locations acceptable to us (The amount of production 
to count for such acreage will be based on the harvested production 
or appraisals from the samples at the time harvest should have 
occurred. If you do not leave the required samples intact, or you 
fail to provide sufficient care for the samples, our appraisal made 
prior to giving you consent to put the acreage to another use will 
be used to determine the amount of production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested 
production, or our reappraisal if additional damage occurs and the 
crop is not harvested; and
    (2) All harvested production from the insurable acreage:
    (i) That is marketed, regardless of grade; and
    (ii) That is unmarketed and:
    (A) That grades eighty-five percent (85%) or better U.S. No. 1 
with a classification size of 6 x 7 (2-8/32 inch minimum diameter) 
or larger for all types except cherry, roma, or plum; or
    (B) That grade in accordance with the requirements specified in 
the Special Provisions for cherry, roma, or plum types.
    (d) Only that amount of appraised production that exceeds the 
difference between the final stage guarantee and the stage guarantee 
applicable to the acreage will be production to count.
    14. Written Agreements
    Designated terms of this policy may be altered by written 
agreement in accordance with the following:
    (a) You must apply in writing for each written agreement no 
later than the sales closing date, except as provided in section 
14(e);
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in 
effect if the written agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If 
the written agreement is not specifically renewed the following 
year, insurance coverage for subsequent crop years will be in 
accordance with the printed policy); and
    (e) An application for a written agreement submitted after the 
sales closing date may be approved if, after a physical inspection 
of the acreage, it is determined that no loss has occurred and the 
crop is insurable in accordance with the policy and written 
agreement provisions.

    Signed in Washington, D.C., on April 25, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-11351 Filed 4-30-97; 8:45 am]
BILLING CODE 3410-FA-P