[Federal Register Volume 77, Number 15 (Tuesday, January 24, 2012)]
[Proposed Rules]
[Pages 3400-3404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1219]


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 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. 77, No. 15 / Tuesday, January 24, 2012 / 
Proposed Rules  

[[Page 3400]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC-11-0011]
RIN 0563-AC34


Common Crop Insurance Regulations; Peach Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations, Peach Crop Insurance 
Provisions. The intended effect of this action is to provide policy 
changes, to clarify existing policy provisions to better meet the needs 
of insured producers, and to reduce vulnerability to program fraud, 
waste, and abuse. The proposed changes will be effective for the 2013 
and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business March 26, 2012 and will be considered 
when the rule is to be made final.

ADDRESSES: FCIC prefers that comments be submitted electronically 
through the Federal eRulemaking Portal. You may submit comments, 
identified by Docket ID No. FCIC-11-0011, by any of the following 
methods:
     Federal eRulemaking Portal: http://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 64141-6205.
    All comments received, including those received by mail, will be 
posted without change to http://www.regulations.gov, including any 
personal information provided, and can be accessed by the public. 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 http://www.regulations.gov. If you are submitting comments electronically 
through the Federal eRulemaking Portal and want to attach a document, 
we ask that it be in a text-based format. If you want 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 your submission. 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: 
[email protected].
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the 
complete User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT: 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 non-significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

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

E-Government Act Compliance

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

Unfunded Mandates Reform Act of 1995

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

Executive Order 13132

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

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 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

[[Page 3401]]

kind of information collected. To ensure crop insurance is available to 
small entities, the Federal Crop Insurance Act authorizes FCIC to waive 
collection of administrative fees from limited resource farmers. FCIC 
believes this waiver helps to ensure that small entities are given the 
same opportunities as large entities to manage their risks through the 
use of crop insurance. A Regulatory Flexibility Analysis has not been 
prepared since this regulation does not have an impact on small 
entities, and, therefore, this regulation is exempt from the provisions 
of the Regulatory Flexibility Act (5 U.S.C. 605).

Federal Assistance Program

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

Executive Order 12372

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

Executive Order 12988

    This 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 direct action taken by FCIC 
or to require 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 CFR part 400, subpart J, for the 
informal administrative review process of good farming practices as 
applicable, 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 Sec.  457.153, Peach Crop Insurance Provisions, 
to be effective for the 2013 and succeeding crop years. Several 
requests have been made for changes to improve the coverage offered, 
address program integrity issues, simplify program administration, and 
improve clarity of the policy provisions.
    The proposed changes are as follows:
    1. FCIC proposes to remove the paragraph immediately preceding 
section 1 which refers to the order of priority in the event of a 
conflict. This same information is contained in the Basic Provisions. 
Therefore, it is duplicative and should be removed in the Crop 
Provisions.
    2. Section 1--FCIC proposes to remove the definition of ``actual 
price per bushel for'' because the Free on Board (FOB) prices are no 
longer consistently reported by the Agriculture Market News Service. 
Therefore, FCIC's peach price elections for fresh U.S. Extra No. 1 
(applicable size as specified in the Special Provisions) and processing 
peaches will apply to these Crop Provisions.
    FCIC proposes to add a definition of ``fresh'' and ``processing'' 
to be consistent with the other perennial crops. In the definition of 
``fresh,'' FCIC proposes to include provisions to require insureds to 
certify and, if requested by their insurance provider, provide 
verifiable records to prove at least 50 percent of their fresh peach 
acreage from each unit was sold as U.S. Extra No. 1 fresh peach 
production in one or more of the four most recent crop years for the 
unit to be eligible for fresh peach coverage. FCIC also proposes to 
include provisions to require insureds to follow the recommended 
cultural practices for fresh peach acreage in the county as determined 
by agricultural experts. FCIC proposes to include provisions to specify 
acreage not meeting all requirements for ``fresh peach acreage must be 
designated on the acreage report as processing peach acreage. These 
revisions will help ensure that only fresh peach production is insured 
as fresh peach production. In the definition of ``processing,'' FCIC 
proposes to include provisions that qualify peaches as processing if 
they are sold, or could be sold for the purpose of undergoing a change 
in their basic structure, such as juicing or peeling.
    FCIC proposes to add a definition of ``post production costs'' to 
define the costs associated with activities that occur during 
harvesting, packing, transportation, and marketing, as determined by 
FCIC. Insurance is limited to those perils and costs that occur while 
the crop is in the field. Therefore, ``post production costs'' will be 
deducted from the price data of peaches sold in determining an ``on 
tree'' price which is the basis for FCIC's price election.
    3. Section 2--FCIC proposes to add a new section 2 to allow 
optional units by fresh and processing as specified in the Special 
Provisions. Fresh and processing peaches may have significantly 
different management practices, production risks and uses. Therefore, 
allowing optional units by fresh and processing will allow insureds to 
manage their risks more effectively. Also, FCIC proposes to add 
provisions to allow optional units for non-contiguous land. These 
changes are consistent with other perennial crops.
    4. Redesignated section 3--FCIC proposes to add a new paragraph (a) 
to allow the insured to select different coverage levels for all 
insurable fresh peach acreage in the county and processing peach 
acreage in the county. As stated above, since the risks may be 
different for fresh and processing peaches, different coverage levels 
will allow the insured to better tailor their insurance to their risks. 
FCIC also proposes to revise redesignated section 3(b) to allow 
different price elections for fresh and processing peaches. Again, this 
will allow insureds to better manage their risks. These changes are 
also consistent with other perennial crops.
    FCIC proposes to revise redesignated section 3(c)(2) and section 
3(4)(ii) to remove the word ``type'' because it is no longer 
applicable.
    FCIC proposes to designate the undesignated paragraph after 
redesignated paragraph (c) as paragraph (d) and revise it to add 
provisions to specify the effect if the insured fails to notify the 
insurance provider by the start of the insurance period or before the 
production reporting date of any situation that occurs during the crop 
year that may reduce the yield potential. If the insured failed to 
report such a situation by the production reporting date, any loss of 
production from such acreage will result in an appraisal for uninsured 
causes, and the yield used to establish the insured's production 
guarantee will be reduced for the subsequent crop year. FCIC also 
proposes to revise section 3(d) to remove the list of possible effects 
on yield potential and to add language to redesignated section 3(c). 
This will put all the effects in one place and eliminate redundancy. 
These changes are also consistent with other perennial crops.
    5. Section 6--FCIC proposes to add a new section 6 to require the 
insured to report and designate all insurable peach acreage, as fresh 
and processing peaches, by the acreage reporting date. These revisions 
will help ensure that only fresh peach acreage is insured as fresh 
peach acreage. It also allows the

[[Page 3402]]

insured to establish optional units by fresh and processing as 
specified in the Special Provisions.
    6. Redesignated section 7--FCIC proposes to add a new paragraph (f) 
to clarify the insured crop is peaches grown for either fresh peach 
production or processing peach production as defined in section 1. FCIC 
also proposes to revise paragraph (c) to remove the phrase, ``of the 
types or'' and ``(except Processing Peaches excluded in California)'' 
because peaches are now insurable by use that being fresh or 
processing. Peaches are no longer insured by type. Processing peaches 
are no longer excluded in California.
    7. Redesignated section 11--FCIC proposes to add a new paragraph 
(a) to clarify the insured must leave representative samples for 
appraisal purposes if required by the insurance provider in accordance 
with the Basic Provisions.
    8. Redesignated section 12--FCIC proposes to add a new loss example 
to provide clarity.
    FCIC proposes to revise paragraph (c)(1) to remove the redundant 
phrase, ``will be determined''.
    FCIC proposes to revise paragraph (c)(1)(i)(B) to reference 
redesignated section 11.
    FCIC proposes to revise paragraph (c)(1)(iii) to clarify the total 
production to count (in bushels) from all insurable acreage on the unit 
will include all appraised production from unharvested peach acreage 
that would be marketable, if harvested.
    FCIC proposes to revise paragraph (c)(2) to clarify the total 
production to count (in bushels) from all insurable acreage on the unit 
will include all harvested marketable production. These changes are 
consistent with other perennial crops to clarify production to count 
used in determining indemnities will include all production from 
insured acreage for appraised unharvested or harvested production that 
is ``marketable'', as defined in these Crop Provisions.
    FCIC proposes to revise paragraphs (c)(3)(i) and (c)(3)(ii) to 
clarify and provide consistency in how quality loss adjustment will be 
determined by adjusting the price received by peach growers to an on 
tree price, since FCIC's price election is an on tree price. Quality 
loss adjustment will be determined for peaches grown for fresh by 
dividing the value of the damaged fresh peach production minus the post 
production cost specified in the Special Provisions, by the fresh peach 
price election. The result (not to exceed 1.00) will be multiplied the 
number of bushels of the damaged fresh peach production for quality 
adjustment. Quality adjustment will be determined for peaches grown for 
processing by dividing the value of the damaged processing peach 
production minus the post production costs specified in the Special 
Provisions, by the processing peach price election. The result (not to 
exceed 1.00) will be multiplied by the number of bushels of the damaged 
processing peach production for quality adjustment.

List of Subjects in 7 CFR Part 457

    Crop insurance, Peach, 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 2013 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(o).

    2. Amend Sec.  457.153 as follows:
    a. Amend the introductory text by removing the ``2001'' and adding 
``2013'' in its place;
    b. Remove the undesignated paragraph immediately preceding section 
1.
    c. Amend section 1 as follows:
    i. Add definitions of ``fresh'', ``post production cost'', 
``processing'' and;
    ii. Remove the definition of ``actual price per bushel for''.
    d. Redesignate sections 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11 as 3, 4, 
5, 7, 8, 9,10,11,12, and 13, respectively.
    e. Add a new section 2.
    f. Amend redesignated section 3 as follows:
    i. Remove the phrase ``(Insurance Guarantees, Coverage Levels, and 
Prices for Determining Indemnities)'' in the introductory text;
    ii. Redesignate paragraphs (a), (b), and (c) as (b), (c), and (e), 
respectively, and adding a new paragraph (a);
    iii. Revise redesignated paragraphs (b) and (c);
    iv. Designate the undesignated paragraph following redesignated 
paragraph (c) as paragraph (d); and
    v. Revise designated paragraph (d).
    g. Amend redesignated section 4 by removing the phrase ``(Contract 
Changes)''.
    h. Amend redesignated section 5 by removing the phrase ``(Life of 
Policy, Cancellation and Termination)''.
    i. Add a new section 6.
    j. Amend redesignated section 7 as follows:
    i. Remove the phrase ``(Insured Crop)'';
    ii. Revise paragraph (b)(3) by removing the period at the end and 
adding a semicolon in its place;
    iii. Revise paragraph (c) by removing phrases ``of the types or'' 
and ``except Processing Peaches excluded in California'';
    iv. Revise paragraph (d) by removing the word ``and'' at the end;
    v. Revise paragraph (e) by removing the period at the end and 
adding the phrase ``; and'' in its place; and
    vi. Add a new paragraph (f).
    k. Amend redesignated section 8 by removing the phrase ``(Insurable 
Acreage)''.
    l. Amend redesignated section 9 as follows:
    i. Remove the phrase ``(Insurance Period)''in paragraphs (a) and 
(b); and
    ii. Revise paragraph (c) by removing the phrase ``(a)(1)'' and 
adding the phrase ``9(a)(1)'' in its place.
    m. Amend redesignated section 10 by removing the phrase ``(Causes 
of Loss)'' in paragraphs (a) and (b).
    n. Amend redesignated section 11 as follows:
    i. Redesignate the introductory text as paragraph (b);
    ii. Redesignate paragraphs (a), (b), (c), and (d) as (1), (2), (3), 
and (4), respectively;
    iii. Add a new paragraph (a); and
    iv. Remove the phrase ``(Duties in the Event of Damage or Loss)'' 
in redesignated paragraph (b).
    o. Amend redesignated section 12 as follows:
    i. Revise paragraph (b);
    ii. Add a loss example after paragraph (b)(7);
    iii. Revise paragraph (c)(1):
    iv. Revise paragraph (c)(1)(i)(B);
    v. Revise paragraph (c)(1)(iii);
    vi. Revise paragraph (c)(2); and
    vii. Revise paragraphs (c)(3)(i) and (c)(3)(ii).
    The revised and added text reads as follows:


Sec.  457.153  Peach crop insurance provisions.

* * * * *
    1. Definitions.
* * * * *
    Fresh.
    (1) Peach production from insurable acreage that:
    (i) Are sold, or could be sold, for human consumption without 
undergoing any change in its basic form, such as peeling, juicing, 
crushing, etc.;
    (ii) Grade at least U.S. Extra No. 1 or better consisting of the 
minimum diameter as specified in the Special Provisions;

[[Page 3403]]

    (iii) Are from acreage that is designated as fresh peaches on the 
acreage report;
    (iv) Follow the recommended cultural practices generally in use for 
fresh peach in the area in a manner generally recognized by 
agricultural experts; and
    (v) Are from acreage that you certify, and, if requested by us 
provide verifiable records to support, that at least 50 percent of the 
production from acreage reported as fresh peach acreage from each unit, 
was sold as fresh peaches in one or more of the four most recent crop 
years.
    (2) Acreage with production not meeting all the requirements above 
must be designated on the acreage report as processing peach 
production.
* * * * *
    Post production costs. The costs, as specified in the Special 
Provisions associated with activities that occur during harvesting, 
packing, transportation, and marketing, as determined by FCIC.
    Processing. Peach production from insurable acreage failing to meet 
the insurability requirements for fresh peach production that are:
    (1) Sold, or could be sold, for the purpose of undergoing a change 
to its basic structure such as peeling, juicing, crushing, etc.; or
    (2) From acreage designated as processing peaches on the acreage 
report.
* * * * *
    2. Unit Division.
    In addition to the requirements contained in section 34(b) of the 
Basic Provisions, optional units may be established if each optional 
unit is:
    (a) Located on non-contiguous land; or
    (b) By fresh and processing as specified in the Special Provisions.
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (a) You may select a separate coverage level for all fresh peach 
acreage and for all processing peach acreage. For example, if you 
choose the 55 percent coverage level for all fresh peach acreage, you 
may choose the 75 percent coverage level for all processing peach 
acreage.
    (1) Notwithstanding paragraph (a), if you elect the Catastrophic 
Risk Protection (CAT) level of coverage for fresh peach acreage or 
processing peach acreage, the CAT level of coverage will be applicable 
to all insured peach acreage in the county of both fresh and processing 
peaches.
    (2) If you only have fresh peach acreage designated on your acreage 
report and processing peach acreage is added after the sales closing 
date, we will assign a coverage level equal to the coverage level you 
selected for your fresh peach acreage.
    (3) If you only have processing peach acreage designated on your 
acreage report and fresh peach acreage is added after the sales closing 
date, we will assign a coverage level equal to the coverage level you 
selected for your processing peach acreage.
    (b) You may select only one price election for all the peaches in 
the county insured under this policy unless the Special Provisions 
provide different price elections by fresh and processing peaches. If 
the Special Provisions allow different price elections, you may select 
a separate price election for all your fresh peaches and for all your 
processing peaches. If the Special Provisions do not allow for 
different price elections, the price elections you choose for fresh and 
processing must have the same percentage relationship to the maximum 
price offered by us for fresh and processing peaches. For example, if 
you choose 100 percent of the maximum price election for fresh peaches, 
you must choose 100 percent of the maximum price election for all 
processing peaches.
    (c) You must report, not later than the production reporting date 
designated in section 3 of the Basic Provisions, separately by fresh 
and processing acreage, as applicable:
    (1) Any event or action that could impact the yield potential of 
the insured crop including, interplanted of a perennial crop, removal 
of trees, any tree damage, change in practices, or any other 
circumstance that may reduce the expected yield upon which the 
insurance guarantee is based, and the number of affected acres;
    (2) * * *
    (3) The age of trees, variety, and the planting pattern; and
    (4) * * *
    (i) * * *
    (ii) The variety;
    (iii) * * *
    (iv) * * *
    (d) We will reduce the yield used to establish your production 
guarantee, as necessary, based on our estimate of the effect of any 
situation listed in section 3(c). If the situation occurred:
    (1) Before the beginning of the insurance period, we will reduce 
the yield used to establish your production guarantee for the current 
crop year as necessary. If you fail to notify us of any circumstance 
that may reduce your yields from previous levels, we will reduce your 
production guarantee at any time we become aware of the circumstance;
    (2) Or may occur after the beginning of the insurance period and 
you notify us by the production reporting date, the yield used to 
establish your production guarantee is due to an uninsured cause of 
loss; or
    (3) Or may occur after the beginning of the insurance period and 
you fail to notify us by the production reporting date, production lost 
due to uninsured causes equal to the amount of the reduction in yield 
used to establish your production guarantee will be applied in 
determining any indemnity (see section 12(c)(1)(ii). We will reduce the 
yield used to establish your production guarantee for the subsequent 
crop year.
    (e) * * *
* * * * *
    6. Report of Acreage.
    In addition to the requirements contained in section 6 of the Basic 
Provisions, you must report and designate all acreage of peaches as 
fresh or processing peaches by the acreage reporting date.
    7. Insured Crop.
* * * * *
    (c) That the crop insured will be any varieties of peaches that are 
grown for the production of fresh or processing peaches on insured 
acreage and for which a guarantee and premium rate are provided by the 
actuarial documents.
* * * * *
    (f) That are grown for:
    (1) Fresh peach production; or
    (2) Processing peach 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 accordance with 
our procedures.
    (b) * * *
    (1) * * *
    (2) * * *
    (3) * * *
    (4) * * *
    12. Settlement of Claim.
* * * * *
    (b) * * *
    (1) Multiplying the insured acreage for fresh and processing 
peaches, as applicable, by its respective production guarantee;
    (2) Multiplying each result in section 12(b)(1) by the respective 
price election;
    (3) Totaling the results in section 12(b)(2);
    (4) Multiplying the total production to be counted of fresh and 
processing peaches, as applicable (see subsection 12(c)) by the 
respective price election;

[[Page 3404]]

    (5) Totaling the results in section 12(b)(4);
    (6) Subtracting the total in section 12(b)(5) from the total in 
section 12(b)(3); and
    (7) Multiplying the result in section 12(b)(6) by your share.

    Example: You have a 100 percent share in one basic unit with 10 
acres of fresh peaches and 5 acres of processing peaches designated 
on your acreage report, with a 300 bushel per acre production 
guarantee for both fresh and processing peaches, and you select 100 
percent of the price election of $15.50 per bushel for fresh peaches 
and $6.50 per bushel for processing peaches. You harvest 2,500 
bushels of fresh peaches and 500 bushels of processing peaches. Your 
indemnity will be calculated as follows:
    (A) 10 acres x 300 bushels = 3,000 bushel production guarantee 
of fresh peaches;
    5 acres x 300 bushels = 1,500 bushel production guarantee of 
processing peaches;
    (B) 3,000 bushel production guarantee x $15.50 price election = 
$46,500 value of the production guarantee for fresh peaches;
    1,500 bushel production guarantee x $6.50 price election = 
$9,750 value of the production guarantee for processing peaches;
    (C) $46,500 value of the production guarantee for fresh peaches 
+ $9,750 value of the production guarantee for processing peaches = 
$56,250 total value of the production guarantee;
    (D) 2,500 bushels of fresh peach production to count x $15.50 
price election = $38,750 value of the fresh peach production to 
count;
    500 bushels of processing peach production to count x $6.50 
price election = $3,250 value of the processing peach production to 
count;
    (E) $38,750 value of the fresh peach production to count + 
$3,250 value of the processing peach production to count = $42,000 
total value of the production to count;
    (F) $56,250 total value of the production guarantee--$42,000 
total value of the production to count = $ 14,250 value of loss; and
    (G) $14,250 value of loss x 100 percent share = $14,250 
indemnity payment.

    (c) * * *
    (1) All appraised production as follows:
* * * * *
    (i) * * *
    (B) From which production is sold by direct marketing if you fail 
to meet the requirements contained in section 11.
* * * * *
    (iii) Unharvested peach production that would be marketable if 
harvested; and
* * * * *
    2. All harvested marketable peach production from the insurable 
acreage.
    (3) * * *
    (i) For fresh peaches by:
    (A) Dividing the value of the damaged peaches minus the post 
production cost specified in the Special Provisions, by the fresh peach 
price election; and
    (B) Multiplying the result of section 12(c)(3)(i)(A) (not to exceed 
1.00) by the number of bushels of the damaged fresh peaches.
    (ii) For processing peaches by:
    (A) Dividing the value of the damaged peaches minus the post 
production cost specified in the Special Provisions, by the processing 
peach price election; and
    (B) Multiplying the result of section 12(c)(3)(ii)(A) (not to 
exceed 1.00) by the number of bushels of the damaged processing 
peaches.
* * * * *

    Signed in Washington, DC, on January 13, 2012.
William J. Murphy,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2012-1219 Filed 1-23-12; 8:45 am]
BILLING CODE 3410-08-P