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Proposed Rules
Federal Register Vol. 86, No. 239
Thursday, December 16, 2021

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.

DEPARTMENT OF AGRICULTURE

7 CFR Part 457
Docket ID FCIC210007
RIN 0563AC75

Common Crop Insurance Regulations;
Apple Crop Insurance Provisions Federal Crop Insurance Corporation, U.S. Department of Agriculture USDA.
ACTION: Proposed rule.
AGENCY:

The Federal Crop Insurance Corporation FCIC proposes to amend the Common Crop Insurance Regulations, Apple Crop Insurance Provisions. The intended effect of this action is to provide policy changes to better meet the needs of the apple producers, to address program vulnerabilities that have caused increased loss ratios and rising premium costs, and to provide safeguards against fraud, waste, and abuse. The proposed changes will be effective for the 2023
and succeeding crop years.
DATES: Written comments and opinions on this proposed rule will be accepted until close of business February 14, 2022 and will be considered when the rule is to be made final.
ADDRESSES: We invite you to submit comments on this rule. You may submit comments by either of the following methods, although FCIC prefers that you submit comments electronically through the Federal eRulemaking Portal:
Federal eRulemaking Portal: Go to https www.regulations.gov and search for Docket ID FCIC210007. Follow the instructions for submitting comments.
Mail: Director, Product Administration and Standards Division, Risk Management Agency RMA, U.S.
Department of Agriculture, P.O. Box 419205, Kansas City, MO 641336205.
In your comment, specify docket ID
FCIC210007.
Comments will be available for viewing online at www.regulations.gov.

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Francie Tolle; telephone 816 926
7829; or email francie.tolle@usda.gov.
Persons with disabilities who require alternative means for communication should contact the USDA Target Center at 202 7202600 voice.
SUPPLEMENTARY INFORMATION:
Background
Federal Crop Insurance Corporation
SUMMARY:

FOR FURTHER INFORMATION CONTACT:

The FCIC serves Americas agricultural producers through effective, market-based risk management tools to strengthen the economic stability of agricultural producers and rural communities. FCIC is committed to increasing the availability and effectiveness of Federal crop insurance as a risk management tool. Approved Insurance Providers AIP sell and service Federal crop insurance policies in every state through a public-private partnership. FCIC reinsures the AIPs who share the risks associated with catastrophic losses due to major weather events. FCICs vision is to secure the future of agriculture by providing world class risk management tools to rural America.
FCIC proposes to amend the Common Crop Insurance Regulations by revising 7 CFR 457.158 Apple Crop Insurance Provisions to be effective for the 2023
and succeeding crop years.
The proposed changes to 7 CFR
457.158 Apple Crop Insurance Provisions are as follows:
1. Throughout the Crop Provisions, FCIC proposes to include a reference to a type listed in the actuarial documents.
The type name proposed is Fresh Combined, which is synonymous with type Fresh 111 that policyholders are likely familiar with.
FCIC proposes no changes to what is insurable under the type; the only proposed change is to the type name.
2. Section 1FCIC proposes to add a definition of Apple Supplemental Report. This term and its definition are added because of proposed changes in section 3 and section 6.
FCIC proposes to add a definition of block. This term is used in the Crop Provisions but had not been defined.
FCIC proposes to revise the definition of damaged apple production. The current definition defines damaged apple production in two parts: 1 With respect to production insured under the base policy, damaged apple production is fresh or processing apple production
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that fails to grade U.S. No. 1 Processing or better; and 2 with respect to production insured under the Fresh Fruit Quality Adjustment Quality Option, damaged apple production is fresh apple production that fails to grade U.S. Fancy or better. FCIC is proposing changes in the Quality Option that require production that grades U.S. 1 Processing or better but less than U.S. Fancy to be included in production to count at a reduced value;
therefore, the proposed revisions to the definition of damaged apple production had to be the same for apples insured under the base policy and apples insured under the Quality Option. Due to these proposed changes, the second part of the definition of damaged apple production, which refers to the Quality Option, is proposed to be removed.
FCIC proposes to revise the definition of direct marketing. Direct marketing is the sale of the insured crop directly to consumers without the intervention of an intermediary such as a wholesaler, retailer, packer, processor, shipper, buyer, or broker. The definition is being revised to provide two clarifications.
The first is to state that production records are controlled exclusively by the policyholder. The second is to add a sentence clarifying that only the portion of the crop sold directly to consumers will be considered direct marketed.
FCIC proposes to revise the definition of fresh apple production. FCIC
proposes to move paragraphs 1ii, 1iv and 2 to Section 7, Insured Crop, because these paragraphs contain provisions that are more appropriately placed in that section. FCIC proposes to redesignate paragraph 1i as 1, paragraph 1iii as 3, revise redesignated paragraphs 1 and 3, and add a new paragraph 2. In redesignated paragraph 1, the definition contains a list of actions that the apples undergo to change them from their basic form. Even though dicing was not included in the list of actions, one could maintain that it was included in the catch-all etc. at the end of the list. However, FCIC received questions regarding whether dicing would be considered in this list of actions. To provide clarification, FCIC proposes to add the word dicing to the list of actions that would constitute changing apples from their basic form.

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