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khammond on DSKJM1Z7X2PROD with PROPOSALS

Federal Register / Vol. 86, No. 239 / Thursday, December 16, 2021 / Proposed Rules without the intervention of an intermediary such as a wholesaler, retailer, packer, processor, shipper, buyer, or broker. Production records are controlled exclusively by the policyholder. Examples of direct marketing include selling through an on-farm or roadside stand, a farmers market, or permitting the general public to enter the field for the purpose of picking all or a portion of the crop. Only the portion of the crop sold directly to consumers will be considered direct marketed.
Fresh apple production. Apples:
1 That are sold, or could be sold, for human consumption without undergoing any change in the basic form, such as peeling, juicing, crushing, dicing, etc.;
2 That are not sold for the processing market e.g., slicer or hard cider market except for apples sold with a grade of U.S. Fancy or better unless another grade is specified in the Special Provisions; and 3 That follow the recommended cultural practices generally in use for fresh apple acreage in the area in a manner generally recognized by agricultural experts and any other practices specified in the Special Provisions.
Fresh fruit factor. A factor contained in the actuarial documents that is used to account for the salvage value of sold apples for production insured under the Optional Coverage for Fresh Fruit Quality Adjustment contained in section 14.

Graft. To unite a shoot or bud with a rootstock in accordance with recommended practices to form a living union.

High density. The number of trees per acre and any other characteristics specified in the Special Provisions.

Maximum additional value price. A
price established by type by FCIC and published in the actuarial documents when authorized by the Special Provisions. It is used to compute the premium price election.

Premium price election. A price calculated using your sales history reported on the Apple Supplemental Report and the maximum additional value price. The premium price election will be no less than the published price election for type Fresh Combined or type Processing, as applicable, and no greater than the maximum additional value price.

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Processing apple production. Apples from insurable acreage that are sold, or could be sold for the purpose of undergoing a change to the basic structure such as peeling, juicing, crushing, dicing, etc.

2. Unit Division a In addition to, or instead of, establishing optional units as provided in section 34c of the Basic Provisions, optional units may be established if each optional unit is:
1 Located on non-contiguous land;
or 2 By type, unless otherwise provided in the Special Provisions.
b The requirements of section 34 of the Basic Provisions that require the crop to be planted in a manner that results in a clear and discernable break in the planting pattern at the boundaries of each optional unit are not applicable for optional units by type.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities In addition to the requirements of section 3 of the Basic Provisions:
a You may select only one coverage level for each type. For example, if you choose the 55 percent coverage level for one type, you may choose the 75
percent coverage level for another type.
However, if you elect the Catastrophic Risk Protection CAT level of coverage for any of your apple acreage, the CAT
level of coverage will be applicable to all insured apple acreage in the county.
If you only have fresh apple acreage designated on your acreage report and processing apple acreage is added after the sales closing date, we will assign a coverage level equal to the lowest coverage level you selected for your fresh apple acreage. If you only have processing apple acreage designated on your acreage report and fresh apple acreage is added after the sales closing date, we will assign a coverage level equal to the coverage level you selected for your processing apple acreage.
b You may select only one price election for all the apples in the county insured under this policy unless the actuarial documents provide different price elections by type, in which case you may select one price election for each apple type designated in the actuarial documents. The price elections you choose for each type are not required to have the same percentage relationship to the maximum price election offered by us for each type.
However, the percentage of the maximum price election must be in accordance with FCIC approved
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procedures. For example, if you choose 100 percent of the maximum price election for one type, you may choose a different percentage of the maximum price election for all other types. If you only have fresh apple acreage designated on your acreage report and processing apple acreage is added after the sales closing date, we will assign a price election percentage equal to the lowest price election percentage you selected for your fresh apple acreage. If you only have processing apple acreage designated on your acreage report and fresh apple acreage is added after the sales closing date, we will assign a price election percentage equal to the price election percentage you selected for your processing apple acreage.
c If you elect an additional level of coverage, you may insure your type Fresh Combined, type Processing, or both, at the premium price election if:
1 Authorized in the Special Provisions;
2 You submit an Apple Supplemental Report, by policy by the production reporting date, containing your total sales including production and revenue, differentiated by the following, as applicable:
i Fresh and direct marketing; and ii Processing;
3 Upon initial election of the premium price election, you provide three years of production and revenue as indicated in section 3c2; and 4 You meet any additional requirements specified in the Special Provisions.
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 sections 3c1 through 4. If the situation 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. If you fail to notify us of any circumstance that may reduce your yields from previous levels, we will reduce the yield used to establish 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 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
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