[Federal Register Volume 69, Number 47 (Wednesday, March 10, 2004)]
[Proposed Rules]
[Pages 11342-11346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5238]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 69, No. 47 / Wednesday, March 10, 2004 / 
Proposed Rules  

[[Page 11342]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB91


Common Crop Insurance Regulations; Pecan Revenue Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to add 
to 7 CFR part 457 a new Sec.  457.167 that provides insurance for 
pecans. 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 convert the pecan revenue pilot crop insurance program to a 
permanent insurance program for the 2005 and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business April 9, 2004, and will be considered 
when the rule is to be made final. The comment period for information 
collections under the Paperwork Reduction of 1995 continues through May 
10, 2004.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Risk Management Agency, 
United States Department of Agriculture, 6501 Beacon Drive, Stop 0812, 
Room 421, Kansas City, MO 64133-4676. Comments titled ``Pecan Revenue 
Crop Insurance Provisions'' may be sent via the Internet to 
[email protected], or the Federal eRulemaking Portal: Go to 
http://www.regulations.gov. Follow the online instructions for 
submitting comments. A copy of each response will be available for 
public inspection and copying from 7 a.m. to 4:30 p.m., c.s.t., Monday 
through Friday, except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: Linda Williams, Risk Management 
Specialist, Research and Development, Product Development Division, 
Risk Management Agency, at the Kansas City, MO, address listed above, 
telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
rule is not significant for the purpose of Executive Order 12866 and, 
therefore, has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501), 
the collections of information in this proposed rule have been approved 
by the Office of Management and Budget (OMB) under control number 0563-
0057 through June 30, 2006.

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 the UMRA.

Executive Order 13132

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

Regulatory Flexibility Act

    Federal Crop Insurance Corporation (FCIC) certifies that this 
regulation will not have a significant economic impact on a substantial 
number of small entities. Program requirements for the Federal crop 
insurance program are the same for all producers regardless of the size 
of their farming operation. For instance, all producers are required to 
submit an application and acreage report to establish their insurance 
guarantees and compute premium amounts, or notice of loss and 
production information to determine 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 small entities are given the same opportunities 
to manage their risks through the use of crop insurance. A Regulatory 
Flexibility Analysis has not been prepared since this regulation does 
not have an impact on small entities and therefore, this regulation is 
exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C. 
605).

Federal Assistance Program

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

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This proposed 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 action taken by FCIC under 
the terms of the crop insurance policy, the administrative appeal 
provisions published at 7 CFR part 11 or 7 CFR part 400, subpart J, as 
applicable, must be exhausted before any action for judicial review of 
any determination or action by FCIC may be brought.

[[Page 11343]]

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.

Background

    FCIC offered a pilot crop insurance program for pecans beginning 
with the 1998 crop year in the states of Georgia, New Mexico, and 
Texas. The pilot program's duration was successfully completed and had 
a loss ratio of .30. In the 2001 crop year, 185 producers with 38,691 
acres were insured under the pilot pecan revenue program.
    FCIC intends to convert the pecan revenue pilot crop insurance 
program to a permanent crop insurance program beginning with the 2005 
crop year. To effectuate this, FCIC proposes to amend the Common Crop 
Insurance regulations (7 CFR part 457), by adding a new section 
457.167, Pecan Revenue Crop Insurance Provisions. These provisions will 
replace and supersede the current unpublished provisions that insure 
pecans under a pilot program status.

List of Subjects in 7 CFR Part 457

    Crop insurance, Pecan, 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, Common Crop 
Insurance Regulations, for the 2005 and succeeding crop years as 
follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

    Authority: 7 U.S.C. 1506(l), 1506(p).
    2. Section 457.167 is added to read as follows:


Sec.  457.167  Pecan revenue crop insurance provisions.

    The Pecan Revenue Crop Insurance Provisions for the 2005 and 
succeeding crop years are as follows:
    FCIC policies: United States Department of Agriculture, Federal 
Crop Insurance Corporation.
    Reinsured policies: (Appropriate title for insurance provider).
    Both FCIC and reinsured policies: Pecan Revenue Crop Insurance 
Provisions.

1. Definitions

    AMS. The Agricultural Marketing Service of the United States 
Department of Agriculture.
    Amount of insurance per acre. The amount determined by multiplying 
your approved average revenue per acre by the coverage level percentage 
you elect.
    Average gross sales per acre. Total value of in-shell pecans grown 
divided by your total acres of pecans during a crop year.
    Approved average revenue per acre. The total of your average gross 
sales per acre (in-shell basis) based on at least the most recent 
consecutive four years of sales records building to ten years and 
dividing that result by the number of years of average gross sales per 
acre will be used to determine your total average gross sales per acre. 
If you provide more than four years of sales records, they must be 
either the most recent consecutive 6, 8, or 10 years of sales records. 
If you do not have at least four years of gross sales records, your 
approved average revenue will be the lowest available dollar span 
amount provided in the actuarial documents.
    Crop year. The period beginning February 1 of the calendar year in 
which the pecan trees bloom and extending through January 31 of the 
year following such bloom, and will be designated by the calendar year 
in which the pecan trees bloom.
    Direct marketing. Sale of the insured crop directly to consumers 
without the intervention of an intermediary such as wholesaler, 
retailer, packer, processor, sheller, shipper, buyer or broker. 
Examples of direct marketing include selling through an on-farm or 
roadside stand, or a farmer's market, or permitting the general public 
to enter the field for the purpose of harvesting all or a portion of 
the crop, or shelling and packing your own pecans.
    Gross sales. Total value of in-shell pecans grown during a crop 
year that is used to establish the average gross sales per acre.
    Harvest. Collecting pecans from the orchard.
    Hedge. The removal of vegetative growth from the tree to prevent 
overcrowding of pecan trees.
    Improved pecan varieties. Pecan trees that have been grafted, are 
grown in a distinguishable planting pattern, and are maintained under a 
good farming practice.
    In-shell pecans. Pecans as they are removed from the orchard with 
the nut-meats in the shell.
    Interplanted. Acreage on which two or more crops are planted in any 
form of alternating or mixed pattern.
    Market price. The average price per pound for in-shell pecans of 
the same variety or varieties insured offered by buyers in the area in 
which you normally market the pecans, but in any case, not less than 
the actual price received for any sold production or, if the price you 
received or the average price per pound is inconsistent with the 
published AMS prices for similar quality pecans on the day you sold 
your pecans, the average of the AMS prices published during that week. 
If buyers are not available in your immediate area, we will use the 
average in-shell price per pound offered by the buyers nearest to your 
area.
    Net acres. The insured acreage of pecans multiplied by your share.
    Pound. A unit of weight equal to sixteen ounces avoirdupois.
    Scion. Twig or portion of one plant that is grafted onto a stock of 
another.
    Sequentially thinned. A method of systematically removing pecan 
trees for the purpose of improving sunlight penetration and maintaining 
the proper spacing necessary for continuous production.
    Set Out. The transplanting of pecan trees into the orchard.
    Unimproved pecan varieties (Native and Seedlings). All pecan trees 
that do not meet the definition of improved pecan varieties.
    Top work. To graft scions of one pecan variety onto the tree or 
branch of another pecan variety.
    Two-year coverage module. A two-crop-year subset of a continuous 
policy in which you agree to insure the crop for both years of the 
module and we agree to offer the same premium rate, amount of insurance 
per acre, coverage level, as long as all policy terms and conditions 
are met for each year of the coverage module, including the timely 
payment of premium, you have not done anything that would result in a 
revision to these terms, as specified in this policy, and there have 
not been any legislative changes that would affect the terms of this 
policy.

2. Unit Division

    In lieu of the definition of basic unit in section 1 of the Basic 
Provisions and section 34 of the Basic Provisions, a unit will be all 
insurable acreage of pecans in the county in which you have a share on 
the date coverage begins for the crop year.

3. Insurance Guarantees and Coverage Levels for Determining Indemnities

    In lieu of section 3 of the Basic Provisions the following applies:
    (a) You may select only one coverage level for both years of the 
two-year coverage module for all pecans in the county. By giving us 
written notice, you may change the coverage level for the succeeding 
two-year coverage module

[[Page 11344]]

not later than the sales closing date of the next two-year coverage 
module.
    (b) For coverage in excess of catastrophic risk protection, your 
insurance guarantee will be determined by multiplying your amount of 
insurance per acre by the number of net acres.
    (c) For coverage under the Catastrophic Risk Protection 
Endorsement, your insurance guarantee equals your approved average 
revenue multiplied by the percentage listed in the Special Provisions 
and multiplied by the net acres.
    (d) Your amount of insurance per acre will remain the same as 
stated in the Summary of Coverage for each year of the two-year 
coverage module unless:
    (1) You sequentially thin more than 12.5 percent of your total 
insured acres, which will result in your average gross sales for those 
acres thinned being multiplied by a factor of .70 for the first year 
after thinning, multiplied by a factor of .85 for the second year after 
thinning, and no reduction following the second harvest after 
sequentially thinning.
    (2) You increase the previous year's insured acreage by more than 
12.5 percent, which will result in the recalculation of your approved 
average revenue using the sales records for the added acreage or, if 
such sales records are not available for the added acreage, the lowest 
available dollar span amount provided in the actuarial documents will 
apply to the added acreage.
    (3) You take any other action that may reduce your gross sales 
below your approved average revenue, which will result in an adjustment 
to your approved average revenue to conform to the amount of the 
reduction in gross sales expected from the action.
    (e) If you remove a contiguous block of trees from the unit, your 
insurable acreage will be reduced by the number of acres of trees that 
have been removed.
    (f) You must report your gross sales to us for each year of the 
two-year coverage module on or before the acreage reporting date for 
the first year of the next two-year coverage module. If you do not 
report your gross sales in accordance with this paragraph, we will 
assign a gross sales amount for any year you fail to report. The gross 
sales amount assigned by us will not be more than 75 percent of the 
approved average revenue used to determine your amount of insurance per 
acre for the current coverage module. The sales reports or your 
assigned gross sales amount will be used to compute your sales history 
for the next two-year coverage module. If you filed a claim for any 
year, the value of harvested production and appraised potential 
production used to determine your indemnity payment will be the gross 
sales for that year.
    (g) Hail and fire coverage may be excluded from the covered causes 
of loss for this insurance plan only if additional coverage is 
selected.
    (h) Any person may sign any document relative to pecan crop 
insurance coverage on behalf of any other person covered by this policy 
provided that person has a properly executed power of attorney or such 
other legally sufficient document authorizing such person to sign.

4. Contract Changes

    In lieu of the provisions contained in section 4 of the Basic 
Provisions:
    (a) We may change the terms of your coverage under this policy 
between any two-year coverage module. Any change to your policy within 
a two-year coverage module may only be done in accordance with this 
policy.
    (b) Any changes in policy provisions, amounts of insurance, premium 
rates, and program dates (except as allowed herein or as specified in 
section 3) can be viewed on the RMA Web site at http://www.rma.usda.gov/ or a successor Web site not later than the contract 
change date contained in these Crop Provisions. We may only revise this 
information after the contract change date to correct clear errors.
    (c) The contract change date is October 31 preceding the next two-
year coverage module.
    (d) After the contract change date, all changes specified in 
section 4(b) will also be available upon request from your crop 
insurance agent. You will be provided, in writing, a copy of the 
changes to the Basic Provisions, Crop Provisions, and a copy of the 
Special Provisions not later than 30 days prior to the cancellation 
date. Acceptance of the changes will be conclusively presumed in the 
absence of notice from you to change or cancel your insurance coverage 
by the sales closing date at the end of the two-year coverage module.

5. Life of Policy, Cancellation and Termination Dates

    (a) In lieu of section 2(a) of the Basic Provisions, this is a 
continuous policy with a two-year coverage module and will remain in 
effect for subsequent two-year coverage module, unless canceled in 
accordance with the terms of this policy or terminated by the operation 
of this policy.
    (b) In lieu of section 2(c) of the Basic Provisions, after 
acceptance of your application, you may not cancel this policy during 
the initial two-year coverage module. Thereafter, the policy will 
continue in force for each succeeding two-year coverage module unless 
canceled or terminated in accordance with the terms of this policy.
    (c) In lieu of section 2(d) of the Basic Provisions, this contract 
may be canceled by either you or us for the next two-year coverage 
module by giving written notice on or before the cancellation date.
    (d) Your policy may be terminated before the end of the two-year 
coverage module if you are determined to be ineligible to participate 
in any crop insurance program authorized under the Act in accordance 
with section 2(e) of the Basic Provisions or 7 CFR part 400, subpart U.
    (e) The cancellation date is January 31 of the second crop year of 
each two-year coverage module.
    (f) The termination date is January 31 of each crop year.

6. Report of Acreage

    (a) In addition to the requirements of section 6 of the Basic 
Provisions you must report, by the acreage reporting date designated in 
the Special Provisions:
    (1) Any damage to trees, removal of trees, change in practices, 
sequential thinning in excess of 12.5 percent of your insured acreage 
or any other action that may reduce the gross sales below the approved 
average revenue upon which the amount of insurance per acre is based 
and the number of affected acres;
    (2) The number of bearing trees on insurable and uninsurable 
acreage;
    (3) The age of the trees and the planting pattern;
    (4) Any acreage that is excluded under sections 8 or 9; and
    (5) Your gross sales receipts as required under section 3(f);
    (b) If you fail to notify us of any circumstance stated in section 
6(a)(1) that may reduce your gross sales from previous levels, we will 
reduce your insurance guarantee to an amount to reflect the reduction, 
or gross sales, at any time that we become aware of the circumstance.

7. Annual Premium and Administrative Fees

    In addition to the requirements of section 7 of the Basic 
Provisions, the premium and administrative fees are due annually for 
each year of the two-year insurance period, except no premium will be 
due if you elect catastrophic risk protection.

8. Insured Crop

    In accordance with section 8 of the Basic Provisions, the crop 
insured will

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be all the pecans in the county for which a premium rate is provided by 
the actuarial documents:
    (a) In which you have a share;
    (b) That are grown for harvest as pecans;
    (c) That are grown in an orchard that, if inspected, is considered 
acceptable by us;
    (d) That are grown on trees that have reached at least the 12th 
growing season after either being set out or replaced by transplants, 
or that are in at least the 5th growing season after top work and have 
produced at least 600 pounds of pecans in-shell per acre in at least 
one year after having been grafted;
    (e) That are grown in a distinguishable planting pattern except as 
authorized by section 9(a);
    (f) That are not grown on trees that are or have been hedged, 
unless allowed by the Special Provisions or by written agreement; and
    (g) That are in an orchard that consists of a minimum of one (1) 
contiguous acre, unless allowed by written agreement.

9. Insurable Acreage

    (a) In addition to the requirements of section 9 of the Basic 
Provisions, the insurable acreage will consist of all reported acreage 
of improved pecan varieties with less than 10 percent of the acreage 
being unimproved pecan varieties. Unless allowed by the Special 
Provisions, acreage in which more than 10 percent of the total acreage 
is unimproved pecan varieties will be insurable only by written 
agreement.
    (b) In lieu of the provisions in section 9 of the Basic Provisions 
that prohibit insurance attaching to a crop planted with another crop, 
pecans interplanted with another perennial crop are insurable if 
allowed by the Special Provisions or by written agreement.

10. Insurance Period

    (a) In accordance with the provisions of section 11 of the Basic 
Provisions:
    (1) Coverage begins on February 1 of each crop year. However, for 
the year of application, we will inspect all pecan acreage and will 
notify you of the acceptance or rejection of your application not later 
than 30 days after the sales closing date. If we fail to notify you by 
that date, your application will be accepted unless other grounds exist 
to reject the application, as specified in section 2 of the Basic 
Provisions or the application. You must provide any information that we 
require for the crop or to determine the condition of the orchard.
    (2) The calendar date for the end of the insurance period is 
January 31 of the crop year.
    (b) In addition to the provisions of section 11 of the Basic 
Provisions:
    (1) If you acquire an insurable share in any insurable acreage 
after coverage begins but on or before the acreage reporting date for 
the crop year, and after an inspection we consider the acreage 
acceptable, insurance will be considered to have attached to such 
acreage on the calendar date for the beginning of the insurance period. 
Acreage acquired after the acreage reporting date will not be insured.
    (2) If you relinquish your insurable share on any insurable acreage 
of pecans on or before the acreage reporting date for the crop year, 
insurance will not be considered to have attached to, and no premium or 
indemnity will be due for such acreage for that crop year unless:
    (i) A transfer of coverage and right to an indemnity, or a similar 
form approved by us, is completed by all affected parties;
    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

11. Causes of Loss

    (a) In lieu of the first sentence of section 12 of the Basic 
Provisions, insurance is provided against an unavoidable decline in 
revenue due to the following causes of loss that occur within the 
insurance period:
    (1) Adverse weather conditions;
    (2) Fire, unless weeds and other forms of undergrowth have not been 
controlled or pruning debris has not been removed from the orchard;
    (3) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (4) Plant disease, but not due to insufficient or improper 
application of disease control measures;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption;
    (8) Failure of the irrigation water supply, if caused by a cause of 
loss specified in section 11(a)(1) through (7); or
    (9) Decline in market price;
    (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 pecans for any reason 
other than actual physical damage from an insurable cause 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.

12. Duties in the Event of Damage or Loss

    In addition to the requirements of section 14 of the Basic 
Provisions, the following will apply:
    (a) You must notify us within 3 days of the date harvest should 
have started if the crop will not be harvested.
    (b) You must notify us at least 15 days before any production will 
be sold by direct marketing. We will conduct an appraisal that will be 
used to determine your production to count for production that is sold 
by direct marketing. If damage occurs after this appraisal, we will 
conduct an additional appraisal. These appraisals, and any acceptable 
records provided by you, will be used to determine the dollar value of 
your production to count. Failure to give timely notice that production 
will be sold by direct marketing will result in an appraised dollar 
value of production to count that is not less than the amount of 
insurance per acre for the direct-marketed acreage if such failure 
results in our inability to make the required appraisal.
    (c) If you intend to claim an indemnity, you must notify us at 
least 15 days prior to the beginning of harvest, or immediately if a 
loss occurs during harvest, so that we may inspect the damaged 
production.
    (d) You must not sell, destroy or dispose of the damaged crop until 
after we have given you written consent to do so.
    (e) If you fail to meet the requirements of this section, and such 
failure results in our inability to inspect the damaged production, all 
such production will be considered undamaged and included as production 
to count.

13. Settlement of Claim

    (a) Indemnities will be calculated for each year in the two year 
coverage module.
    (b) We will determine your loss on a unit basis.
    (c) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the amount of insurance per acre by the net acres 
of the insured pecans;
    (2) Subtracting the dollar value of the total production to count 
as determined in section 13(d) from the result of 13(c)(1):
    (i) For other than catastrophic risk protection coverage, the total 
dollar value of the total production to count determined in accordance 
with section 13(d); or

[[Page 11346]]

    (ii) For catastrophic risk protection coverage, the result of 
multiplying the total dollar value of the total production to count 
determined in accordance with section 13(d) by 55 percent; and
    For example:

                          Pecan Revenue Example
------------------------------------------------------------------------
                                                                Average
                                                    Average      gross
                Year                     Acres      pounds    sales  per
                                                   per acre      acre
------------------------------------------------------------------------
1996................................         100         750      $1,050
1995................................         100         625         625
1994................................         100         200         250
1993................................         100        1250         750
                                     -------------
    Total Average Gross Sales Per     ..........  ..........      $2,675
     Acre...........................
------------------------------------------------------------------------
The approved average revenue equals the total average gross sales per
  acre divided by the number of years ($2,675 / 4 = $669).
The amount of insurance per acre equals the approved average revenue
  multiplied by the coverage level percent ($669 x .65 = $435).
Assume the insured produced 400 pounds of pecans per acre with an
  average price of $0.75 per pound (400 pounds x $0.75 x 100 net acres =
  $30,000 total dollar value of production to count).
The indemnity would be:
The Amount of Insurance per acre multiplied by the net acres minus the
  dollar value of the total production to count equals the dollar amount
  of indemnity ($435 x 100 = $43,500.00 - $30,000.00 = 13,500).

    (d) The dollar value of the total production to count from all 
insurable acreage will include:
    (1) The value of all appraised production as follows:
    (i) Not less than your insurance guarantee for acreage;
    (A) That is abandoned;
    (B) That is sold by direct marketing if you fail to meet the 
requirements contained in section 12;
    (C) That is damaged solely by uninsured causes;
    (D) For which no sales records or unacceptable sales records are 
provided to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production;
    (iv) Potential production on insured acreage that you intend to 
abandon or no longer care for, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for 
that acreage will end. If you do not agree with our appraisal, we may 
defer the claim only if you agree to continue to care for the crop. We 
will then make another appraisal when you notify us of further damage 
or that harvest is general in the area unless you harvested the crop, 
in which case we will use the harvested production. If you do not 
continue to care for the crop, our appraisal made prior to deferring 
the claim will be used to determine the value of production to count; 
and
    (v) The market price, as determined by us, will be used to value 
all appraised production in section 13(d)(1).
    (2) The total dollar value of all harvested production from the 
insurable acreage will be:
    (i) The dollar amount obtained by multiplying the number of pounds 
of pecans sold by the actual price received; and
    (ii) The dollar amount obtained by multiplying the number of pounds 
of harvested, but not sold production, by the market price as 
determined by us.

14. Late and Prevented Planting

    The late and prevented planting provisions of the Basic Provisions 
are not applicable.

    Signed in Washington, DC, on March 1, 2004.
Ross J. Davidson, Jr.,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 04-5238 Filed 3-9-04; 8:45 am]
BILLING CODE 3410-08-P