[Federal Register Volume 78, Number 56 (Friday, March 22, 2013)]
[Proposed Rules]
[Pages 17606-17611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06106]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 78, No. 56 / Friday, March 22, 2013 / 
Proposed Rules  

[[Page 17606]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC- 12-0008]
RIN 0563-AC38


Common Crop Insurance Regulations; Arizona-California Citrus 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, Arizona-California Citrus 
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 policyholder, and to reduce vulnerability to program 
fraud, waste, and abuse. The proposed changes will be effective for the 
2015 and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business April 22, 2013 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-12-0008, 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 64133-6205.
    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 submissions. For questions regarding attaching a 
document that is a scanned Adobe PDF file, please contact the RMA Web 
Content Team at (816) 823-4694 or by email at 
[email protected].
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person submitting 
the comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). You may review the complete 
User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

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

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

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

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), 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 17607]]

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 rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. With respect to any direct action taken by FCIC 
or action by FCIC directing the insurance provider to take specific 
action under the terms of the crop insurance policy, the administrative 
appeal provisions published at 7 CFR part 11, or 7 CFR part 400, 
subpart J for determinations 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.  457.121 Arizona-California Citrus Crop 
Insurance Provisions, to be effective for the 2015 and succeeding crop 
years. Several requests have been made for changes to improve the 
insurance coverage offered, address program integrity issues, simplify 
program administration, and improve clarity of the policy provisions.
    Some of the proposed changes are a result of the United States 
Department of Agriculture (USDA) Acreage Crop Reporting Streamlining 
Initiative, which has an objective of using common standardized data 
and terminology to consolidate and simplify reporting requirements for 
farmers. USDA has made a concerted effort to standardize terms between 
agencies as much as possible to allow the sharing of data, thereby 
reducing the burden on producers in reporting their information. Many 
of the changes proposed in this rule are a part of that effort. As part 
of this initiative FCIC is proposing to change the term ``crop'' to 
``citrus fruit commodity'' and to rename the ``citrus fruit 
commodities'' to be consistent with the crop names used by other USDA 
agencies. This change will allow information to be shared among 
agencies, thereby relieving producers of the burden of reporting the 
same information multiple times. The addition of the term ``citrus 
fruit group'' is intended to negate the impact of changes to ``citrus 
fruit commodity'' names on coverage levels, unit structure, and 
administrative fees. The ``citrus fruit groups'' for each ``citrus 
fruit commodity'' will be listed in the Special Provisions. The 
``citrus fruit groups'' will be the basis for determining coverage 
levels and identifying the insured crop. These proposed changes are 
expected to result in no change from the current basis by which 
coverage levels are selected, basic units are established, and 
administrative fees are assessed.
    To be consistent with the objectives of the Acreage Crop Reporting 
Streamlining Initiative, FCIC is planning to replace the category of 
``type'' in the actuarial documents with four categories named 
``commodity type,'' ``class,'' ``subclass,'' and ``intended use.'' FCIC 
is also planning to replace the category of ``practice'' in the 
actuarial documents with four categories named ``cropping practice,'' 
``organic practice,'' ``irrigation practice,'' and ``interval.'' 
Proposed changes to the Arizona-California Citrus Crop Provisions, such 
as replacing references to the term ``type'' with the term ``commodity 
type'' will provide an avenue for this transition.
    The proposed changes are as follows:
    1. FCIC proposes to remove the paragraph immediately preceding 
section 1 which refers to the order of priority 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 Arizona-
California Citrus Crop Insurance Provisions.
    FCIC proposes to remove all section titles of the Basic Provisions. 
This information is currently contained in parenthesis following 
references to section numbers of the Basic Provisions throughout the 
Arizona-California Citrus Crop Insurance Provisions.
    2. Section 1--FCIC proposes to revise the definition of ``carton'' 
to allow the container size and weight to be changed by the Special 
Provisions. This will provide flexibility to update these figures as 
industry standards change. This will also allow standards to be added 
through the Special Provisions for any other citrus fruit commodities 
designated as insurable in the actuarial documents. FCIC proposes to 
revise the list of ``citrus fruit commodities'' to align with the 
proposed ``citrus fruit commodity'' names.
    FCIC proposes to remove the definition of ``crop'' and replace it 
with a definition of ``citrus fruit commodity'' since insurable 
commodities are identified in the actuarial documents. FCIC proposes to 
replace the term ``crop'' with the term ``citrus fruit commodity'' 
where appropriate throughout the Crop Provisions. However, in some 
places the term ``crop'' will be changed to ``insured crop'' or 
``agricultural commodity'' which are defined in the Basic Provisions or 
the term ``crop'' may be retained if using the common meaning. The 
current definition of ``citrus fruit crop'' states that the crops are 
listed in the Special Provisions. Adding the ``citrus fruit commodity'' 
names to the Arizona-California Crop Insurance Provisions will make it 
easier to determine the crops that are insurable under the Arizona-
California Citrus Crop Insurance Provisions. In some cases, the new 
``citrus fruit commodities'' will result in several of the current 
``crops'' being combined into a single ``citrus fruit commodity.'' For 
example, the current crops ``Navel,'' ``Valencia,'' and ``Sweet'' will 
all fall under the new ``citrus fruit commodity'' of ``oranges.'' This 
change is being proposed because of the Acreage Crop Reporting 
Streamlining Initiative. This proposed change in terminology does not 
change the varieties of citrus that are insurable.
    FCIC proposes to add the definition of ``citrus fruit group.'' The 
term ``citrus fruit group'' refers to a method of grouping commodity 
types within the ``citrus fruit commodity'' through the Special 
Provisions for the purposes of electing coverage levels, establishing

[[Page 17608]]

basic units, guarantees, and assessing administrative fees. This change 
is being proposed because of the Acreage Crop Reporting Streamlining 
Initiative.
    FCIC proposes to add the definition of ``commodity type'' because 
this is the category that will replace type in the actuarial documents 
that is applicable to the Arizona-California Citrus Crop Provisions. 
The expected ``commodity types'' and ``citrus fruit groups'' are as 
follows:

------------------------------------------------------------------------
                                                          Citrus fruit
   Citrus fruit commodity          Commodity type             group
------------------------------------------------------------------------
Grapefruit..................  No Commodity Type         A
                               Specified.
Lemons......................  No Commodity Type         B
                               Specified.
Oranges.....................  Navel...................  C
Oranges.....................  Valencia................  D
Oranges.....................  Sweet...................  E
Mandarins/Tangerines........  Clementine..............  F
Mandarins/Tangerines........  W. Murcott..............  F
Mandarins/Tangerines........  All Other...............  F
Tangelos....................  Minneola................  G
Tangelos....................  Orlando.................  H
------------------------------------------------------------------------

    FCIC proposes to remove the definition of ``dehorning'' because 
this term is no longer used with the revision of section 3.
    FCIC proposes to add the definitions of ``graft,'' ``interstock,'' 
``scion,'' and ``topwork.'' The term ``topwork'' is proposed to be 
added because it is used in a provision proposed to be added to section 
6 that will require the insured trees to have reached a designated 
growing season after ``topwork'' to be insurable. The terms ``graft,'' 
``interstock,'' and ``scion'' are proposed to be added because they are 
used in the proposed definition of ``topwork.''
    FCIC proposes to remove the definition of ``variety'' because all 
references to the term ``variety'' have been removed from the Crop 
Provisions and replaced with the term ``commodity type.''
    3. Section 2--FCIC proposes to revise section 2(a) to state that 
basic units will be established in accordance with section 1 of the 
Basic Provisions. The definition of basic unit in section 1 of the 
Basic Provisions states that basic units include all insurable acreage 
of the insured crop in the county on the day coverage begins for the 
crop year in which you have 100 percent crop share or which is owned by 
one person and operated by another person on a share basis. Because 
each ``citrus fruit group'' will be considered a separate insured crop, 
separate basic units will be established for each ``citrus fruit 
group.'' For example, under the new ``citrus fruit commodity'' of 
``oranges'' all Navel oranges could be one ``citrus fruit group'' and 
all Valencia oranges could be another ``citrus fruit group.'' This 
means that all of the policyholder's Navel orange acreage can be 
insured as one basic unit and all of the policyholder's Valencia orange 
acreage can be insured as a separate basic unit. This proposed change 
in terminology will allow policyholders to keep their current unit 
structure under the new classification system.
    FCIC proposes to revise section 2(b) by adding language to allow 
optional units by commodity type if allowed by the Special Provisions. 
Adding this language will give FCIC the flexibility to allow optional 
units by commodity type for some citrus fruit commodities or citrus 
fruit groups where it may be appropriate, but not for others.
    4. Section 3--FCIC proposes to revise section 3(a) by adding 
language to allow the policyholder to select separate coverage levels 
and price elections by ``citrus fruit group.'' For example, under the 
new citrus fruit commodity of ``oranges'' all Navel oranges will be 
grouped together as one ``citrus fruit group'' so that the policyholder 
must select the same coverage level and price election for all fruit 
insured under this ``citrus fruit group.'' These revisions to 
terminology will allow policyholders to continue to elect coverage 
levels and price elections on the same basis they currently elect 
coverage levels and price elections. FCIC also proposes to update the 
example in this section to be consistent with the proposed changes to 
this section.
    FCIC proposes to revise section 3(b) by removing the years in the 
example. This will prevent the provision from appearing out of date in 
the future.
    FCIC proposes to designate the undesignated paragraph following 
section 3(c) as section 3(d). FCIC proposes to revise newly designated 
section 3(d) to add provisions to specify the adjustment to be made, if 
an event or action occurs that may reduce the yield potential, based on 
when the situation occurred. The current provision states that FCIC 
will reduce the yield used to establish the production guarantee, but 
does not provide additional details. The proposed section 3(d)(1) 
states that if a situation that may reduce the yield occurred before 
the beginning of the insurance period, the yield used to establish the 
production guarantee will be reduced for the current crop year 
regardless of whether the situation was due to an insured or uninsured 
cause of loss. The proposed section 3(d)(2) states that if a situation 
that may reduce the yield occurred after the beginning of the insurance 
period and the policyholder notifies the insurance provider by the 
production reporting date, the yield used to establish the production 
guarantee will be reduced for the current crop year only if the 
potential reduction in the yield used to establish your production 
guarantee is due to an uninsured cause of loss. The proposed section 
3(d)(3) states that if a situation that may reduce the yield occurred 
after the beginning of the insurance period and the policyholder fails 
to notify the insurance provider by the production reporting date, an 
amount equal to the reduction in the yield will be added to the 
production count calculated in section 11(c) due to uninsured causes 
and the insurance provider may reduce the yield used to establish the 
production guarantee for the subsequent crop year. Adding these 
provisions removes any ambiguity regarding the consequences when 
situations occur that will reduce the yield potential of insured 
acreage.
    FCIC also proposes to revise newly designated section 3(d) to 
remove the list of possible situations that affect yield and instead 
refer back to section 3(c), which contains the same information. This 
eliminates redundancy and is consistent with other perennial Crop 
Provisions, such as apples, grapes, and stonefruit.
    5. Section 6--FCIC proposes to revise the introductory paragraph of 
section 6 by adding language to allow the insured crop to be all 
acreage of each ``citrus fruit group.'' Because the ``citrus fruit 
groups'' will be considered separate

[[Page 17609]]

insured crops, they will be assessed separate administrative fees in 
accordance with section 7 of the Basic Provisions. This proposed change 
also allows the policyholder to elect to insure one ``citrus fruit 
group'' and not another ``citrus fruit group'' within the same ``citrus 
fruit commodity.'' However, since the current ``citrus fruit crops'' 
will become ``citrus fruit groups,'' this proposed change should not 
result in any changes to the administrative fees the policyholder pays 
or the crops the policyholder is able to elect to insure.
    FCIC proposes to revise section 6(b) to clarify that the insured 
crop must be grown on rootstock and trees adapted to the area. The 
current provision states that the insured crop must be adapted to the 
area, but it is actually the rootstock and trees the insured crop is 
grown on that need to be adapted to the area.
    FCIC proposes to revise section 6(e) by adding a provision to 
require trees to have reached the fifth growing season after topwork, 
unless otherwise provided in the Special Provisions or if acreage is 
inspected and insurance is allowed by written agreement. This provision 
is being proposed to address situations where established trees are 
``top-worked.'' Since trees that have been topworked will produce 
little or no fruit for several years after grafting, it is not 
appropriate to insure the fruit these trees produce until the trees 
have reached the designated age.
    6. Section 8--FCIC proposes to revise section 8(a)(2)(i) by adding 
the names of the counties in Southern California that have an end of 
insurance date of August 31. The current provision indicates Southern 
California has an end of insurance date of August 31, but does not 
specify what areas are considered Southern California.
    7. Section 9--FCIC proposes to add provisions in section 9(a) that 
allow insects and disease to be insurable causes of loss unless damage 
is due to insufficient or improper application of control measures. 
FCIC proposes to remove the provisions in section 9(b)(1) that exclude 
insects and disease from insurability unless adverse weather prevents 
the proper application of control measures or causes properly applied 
control measures to be ineffective or causes disease or insect 
infestation for which no effective control mechanism is available. 
These changes will provide more comprehensive coverage and are 
consistent with revisions to other crop policies.
    8. Section 10--FCIC proposes to revise section 10 by adding a new 
section 10(a) to clarify the policyholder must leave representative 
samples for appraisal purposes in accordance with the Basic Provisions. 
The Basic Provisions stipulate representative samples must be left if 
required by the Crop Provisions. Representative samples are necessary 
in order to appraise damaged production for claims purposes. The rest 
of the provisions in section 10 are proposed to be redesignated.
    FCIC proposes to revise the newly redesignated section 10(b)(2) to 
clarify if the policyholder intends to claim an indemnity on any unit, 
the policyholder must notify the insurance provider at least 15 days 
prior to the beginning of harvest or immediately if damage is 
discovered during harvest so that the insurance provider may have an 
opportunity to inspect it. This change provides a timeframe for 
reporting damage and is consistent with revisions to other perennial 
crop policies.
    9. Section 11--FCIC proposes to revise section 11(b) by removing 
the phrase ``crop, or variety if applicable'' and inserting the term 
``commodity type'' in its place. This change is being proposed because 
``commodity type'' is the category in the actuarial documents that is 
applicable to determining the amount of insurance for the unit. This is 
a proposed change in terminology and does not change how claims are 
settled.
    FCIC proposes to revise section 11(c)(1)(iv) by removing the term 
``crop'' and adding the term ``insured crop'' in its place. This change 
is being made to clarify that the provision is referencing the 
``insured crop'' as defined in the Basic Provisions and section 6 of 
the Crop Provisions.
    FCIC proposes to revise section 11(f) to clarify that this 
provision only applies if the policyholder elects the frost protection 
option. FCIC also proposes to revise this section to clarify that frost 
protection equipment requirements will be specified in the Special 
Provisions.

List of Subjects in 7 CFR Part 457

    Crop insurance, Arizona-California citrus, 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 2015 and succeeding crop years as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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

0
2. Amend Sec.  457.121 as follows:
0
a. In the introductory text by removing ``2000'' and adding ``2015'' in 
its place;
0
b. By removing the undesignated paragraph immediately preceding section 
1;
0
c. In section 1:
0
i. By revising the definition of ``carton'';
0
ii. By removing the definitions of ``crop,'' ``dehorning,'' and 
``variety'';
0
iii. By adding the definitions of ``citrus fruit commodity,'' ``citrus 
fruit group,'' ``commodity type,'' ``graft,'' ``interstock,'' 
``scion,'' and ``topwork'';
0
iv. In the definition of ``crop year'' by removing the term ``citrus'' 
and adding the term ``insured'' in its place;
0
v. In the definition of ``direct marketing'' by adding the term 
``insured'' directly preceding the term ``crop'' in the second 
sentence; and
0
vi. In the definition of ``interplanted'' by removing the term 
``crops'' and adding the term ``agricultural commodities'' in its 
place;
0
d. In section 2:
0
i. By revising paragraph (a); and
0
ii. In paragraph (b) by removing the term ``only'' and adding the 
phrase ``by commodity type if allowed by the Special Provisions or'' in 
its place;
0
e. In section 3:
0
i. By revising paragraph (a);
0
ii. In paragraph (b) by removing the term ``1998'' and adding the term 
``current'' in its place and by removing the phrase ``1996 crop year 
production'' and adding the phrase ``production from two crop years 
ago'' in its place;
0
iii. In paragraph (c) introductory text by removing the phrase 
``(Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities)'' and adding the term ``commodity'' directly preceding the 
term ``type'' in the introductory paragraph;
0
iv. In paragraph (c)(4) introductory text by removing the phrase 
``crop, and anytime'' and adding the phrase ``agricultural commodity 
and any time'' in its place;
0
v. In paragraph (c)(4)(i) by removing the phrase ``crop, and type'' and 
adding the phrase ``agricultural commodity and commodity type'' in its 
place;
0
vi. By designating the undesignated paragraph following paragraph 
(c)(4)(iii) as paragraph (d); and
0
vii. By revising the newly designated paragraph (d);

[[Page 17610]]

0
f. In section 4 by removing the phrase ``(Contract Changes)'';
0
g. In section 5 by removing the phrase ``(Life of Policy, Cancellation, 
and Termination)'';
0
h. In section 6;
0
i. By revising the introductory text;
0
ii. In paragraph (b) by adding the phrase ``grown on rootstock and 
trees'' following the phrase ``That is''; and
0
iii. By revising paragraph (f);
0
i. Revise section 7;
0
j. In section 8:
0
i. In paragraph (a) introductory text by removing the phrase 
``(Insurance Period)'';
0
ii. In paragraph (a)(1) by removing the space between the number ``10'' 
and the term ``day'' and adding a hyphen in its place and by adding the 
term ``insured'' directly preceding the phrase ``crop or to determine 
the condition of the grove'';
0
iii. By revising paragraph (a)(2)(i);
0
iv. In paragraph (a)(2)(iii) by removing the term ``citrus crops'' and 
adding the term ``citrus fruit commodities'' in its place; and
0
v. In paragraph (b) introductory text by removing the phrase 
``(Insurance Period)'';
0
k. In section 9:
0
i. In paragraph (a) introductory text by removing the phrase ``(Cause 
of Loss)'';
0
ii. In paragraph (a)(5) by removing the term ``or'' after the 
semicolon;
0
iii. In paragraph (a)(6) by removing the period at the end of the 
sentence and adding a semicolon in its place;
0
iv. By adding new paragraphs (a)(7) and (8); and
0
v. By revising paragraph (b);
0
l. In section 10:
0
i. By redesignating paragraph (a) as (b)(1);
0
ii. By redesignating paragraph (b) as (b)(2);
0
iii. By adding a new paragraph (a);
0
iv. By designating the introductory text as paragraph (b);
0
v. In the newly designated paragraph (b) by removing the phrase 
``(Duties in the Event of Damage or Loss)'';
0
vi. In the newly designated paragraph (b)(2) by removing the phrase 
``before beginning to harvest any damaged production'' and adding the 
phrase ``at least 15 days prior to the beginning of harvest or 
immediately if damage is discovered during harvest'' in its place; and 
by adding the term ``insured'' directly preceding the phrase ``crop 
until after we have given you written consent to do so'';
0
m. In section 11:
0
i. In paragraph (b)(1) by removing the phrase ``crop, or variety if 
applicable,'' and adding the term ``commodity type'' in its place;
0
ii. In paragraph (b)(2) by removing the phrase ``crop, or variety, if 
applicable'' and adding the phrase ``commodity type'' in its place;
0
iii. In paragraph (b)(4) by removing the phrase ``variety, if 
applicable'' and adding the phrase ``commodity type'' in its place;
0
iv. In paragraph (c)(1)(iv) by removing the term ``crop'' in all three 
places it appears and adding the term ``insured crop'' in its place; 
and
0
v. By revising paragraph (f).
    The revisions and additions read as follows:


Sec.  457.121  Arizona-California citrus crop insurance provisions.

* * * * *
    1. * * *
* * * * *
    Carton. The standard container for marketing the fresh packed 
citrus fruit commodity as shown below unless otherwise provided in the 
Special Provisions. In the absence of marketing records on a carton 
basis, production will be converted to cartons on the basis of the 
following average net pounds of packed fruit in a standard packed 
carton unless otherwise provided in the Special Provisions.

------------------------------------------------------------------------
            Container size              Citrus fruit  commodity   Pounds
------------------------------------------------------------------------
Container 58................  Oranges.................       38
Container 58................  Lemons..................       40
Container 59................  Grapefruit..............       32
Container 63................  Mandarins/Tangerines....       25
Container 63................  Tangelos................       25
------------------------------------------------------------------------

    Citrus fruit commodity. Citrus fruit as follows:
    (1) Oranges;
    (2) Grapefruit;
    (3) Tangelos;
    (4) Mandarins/Tangerines;
    (5) Lemons; and
    (6) Any other citrus fruit commodity designated in the actuarial 
documents.
    Citrus fruit group. A designation in the Special Provisions used to 
identify commodity types within a citrus fruit commodity that may be 
grouped together for the purposes of electing coverage levels and 
identifying the insured crop.
    Commodity type. A specific subgroup of a commodity having a 
characteristic or set of characteristics distinguishable from other 
subgroups of the same commodity.
* * * * *
    Graft. To unite a bud or scion with a rootstock or interstock in 
accordance with recommended practices to form a living union.
* * * * *
    Interstock. The area of the tree that is grafted to the rootstock.
* * * * *
    Scion. A detached living portion of a plant joined to a rootstock 
or interstock in grafting.
* * * * *
    Topwork. Grafting a scion onto a pruned scaffold limb of an 
interstock.
    2. * * *
    (a) Basic units will be established in accordance with section 1 of 
the Basic Provisions.
* * * * *
    3. * * *
    (a) In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election and coverage level 
for each citrus fruit group you elect to insure. The price election you 
choose for each citrus fruit group need not bear the same percentage 
relationship to the maximum price offered by us for each citrus fruit 
group. For example, if you choose one hundred percent (100%) of the 
maximum price election for the citrus fruit group for Valencia oranges, 
you may choose seventy-five percent (75%) of the maximum price election 
for the citrus fruit group for Navel oranges. However, if separate 
price elections are available by commodity type within each citrus 
fruit group, the price elections you choose for each commodity type 
must have the same percentage relationship to the maximum price offered 
by us for each commodity type within the citrus fruit group.
* * * * *
    (d) We will reduce the yield used to establish your production 
guarantee, as necessary, based on our estimate of the effect of any 
such situation listed in section 3(c) that may occur. If you fail to 
notify us of any situation in section 3(c), we will reduce your 
production guarantee as necessary at any time we become aware of the 
circumstance. If the situation in 3(c) occurred:
    (1) Before the beginning of the insurance period, the yield used to 
establish your production guarantee will be reduced for the current 
crop year regardless of whether the situation was due to an insured or 
uninsured cause of loss;
    (2) After the beginning of the insurance period and you notify us 
by the production reporting date, the yield used to establish your 
production guarantee will be reduced for the current crop year only if 
the potential reduction in the yield used to establish your production 
guarantee is due to an uninsured cause of loss; or
    (3) After the beginning of the insurance period and you fail to 
notify

[[Page 17611]]

us by the production reporting date, an amount equal to the reduction 
in the yield will be added to the production to count calculated in 
section 11(c) due to uninsured causes. We may reduce the yield used to 
establish your production guarantee for the subsequent crop year to 
reflect any reduction in the productive capacity of the trees.
* * * * *
    6. * * *
    In accordance with section 8 of the Basic Provisions, the insured 
crop will be all the acreage in the county of each citrus fruit group 
you elect to insure and for which a premium rate is provided by the 
actuarial documents:
* * * * *
    (f) That is grown on trees that have reached at least:
    (1) The sixth growing season after being set out, unless otherwise 
provided in the Special Provisions or if we inspect and approve a 
written agreement to insure such acreage; or
    (2) The fifth growing season after topwork, unless otherwise 
provided in the Special Provisions or if we inspect and approve a 
written agreement to insure such acreage.
    7. Insurable Acreage
    In lieu of the provisions in section 9 of the Basic Provisions that 
prohibit insurance attaching to interplanted acreage, citrus 
interplanted with another perennial agricultural commodity is insurable 
unless we inspect the acreage and determine it does not meet the 
requirements contained in your policy.
    8. * * *
    (a) * * *
    (2) * * *
    (i) August 31 for:
    (A) Navel oranges; and
    (B) Southern California lemons (Imperial, Orange, Riverside, San 
Bernardino, San Diego, and Ventura Counties);
* * * * *
    9. * * *
    (a) * * *
* * * * *
    (7) Insects, but not damage due to insufficient or improper 
application of pest control measures; or
    (8) Plant disease, but not damage due to insufficient or improper 
application of disease control measures.
    (b) In addition to the causes of loss excluded in section 12 of the 
Basic Provisions, we will not insure against damage or loss of 
production due to the inability to market the citrus for any reason 
other than actual physical damage from an insurable cause of loss 
specified in this section. For example, we will not pay you an 
indemnity if you are unable to market due to quarantine, boycott, or 
refusal of any person to accept production.
    10. * * *
    (a) In accordance with the requirements of section 14 of the Basic 
Provisions, you must leave representative samples in accordance with 
our procedures.
* * * * *
    11. * * *
* * * * *
    (f) If you elect the frost protection option and we determine that 
frost protection equipment, as specified in the Special Provisions, was 
not properly utilized or not properly reported, the indemnity for the 
unit will be reduced by the percentage of premium reduction allowed for 
frost protection equipment. You must, at our request, provide us 
records showing the start-stop times by date for each period the frost 
protection equipment was used.
* * * * *

    Signed in Washington, DC, on March 11, 2013.
Brandon Willis,
Administrator, Federal Crop Insurance Corporation.
[FR Doc. 2013-06106 Filed 3-21-13; 8:45 am]
BILLING CODE 3410-08-P