Voglio sapere a riguardo di…

khammond on DSKJM1Z7X2PROD with PROPOSALS

71398

Federal Register / Vol. 86, No. 239 / Thursday, December 16, 2021 / Proposed Rules
different characteristics with different risks. By allowing producers to select a different percentage of the price election by type, this change allows producers to manage premium costs based on their risks.
FCIC also proposes to add a sentence in paragraph b clarifying that the percentage of the price election producers elect must be in accordance with FCIC approved procedures based on the level of coverage elected. For example, if a producer elected 75
percent coverage level, FCIC approved procedures allow producers to choose a percentage of price election between 67
and 100 percent. FCIC also proposes to add similar to language in paragraph a regarding assigning coverage levels to acreage that is added after the acreage reporting date. The language added in paragraph b is added for guidance on assigning price election percentages to acreage added after the acreage reporting date.
FCIC proposes to redesignate paragraphs c and d as d and e, respectively, and add a new paragraph c to provide producers an opportunity to insure at a price, called the premium price election, greater than the published price election for apples that are sold predominantly to a direct market or a premium processing market.
Direct markets are often niche markets that demand higher prices than wholesale markets. FCICs processing price is historically based upon standard juice processing prices and market prices for premium processing is not generally available to establish prices. The premium processing prices generally demand higher prices and include items such as baby food, which demands high-quality apples; or hard ciders, which have similar quality expectations as wineries. Additionally, slicers, which are apples often sold for school lunches, are a premium processing-priced apple and demand a price, on average, about 20 percent higher than the standard processing prices. This change addresses producers concerns regarding the higher prices they receive for apples sold via direct marketing and premium processing apples such as slicers. The premium price election will be based on the producers history reported on the Apple Supplemental Report and the maximum additional value price published in the actuarial documents and only offered in specific areas, via Special Provision statements, where premium processors or direct markets are prevalent. The premium price election will be greater than the published price election for type Fresh Combined or type Processing, as
VerDate Sep<11>2014

16:30 Dec 15, 2021

Jkt 256001

applicable, and less than or equal to the maximum additional value price. In order to obtain the premium price election, producers must submit an Apple Supplemental Report to capture producers production by fresh sales including direct marketing sales and processing sales. For data-gathering purposes, FCIC is also requiring producers to submit their revenue by fresh sales and processing sales to allow FCIC to maintain the program e.g., transitional yields and price elections in light of data collected and reported by third-party organizations becoming scarce.
FCIC proposes to revise redesignated paragraph e to revise for clarity. The current provisions point back to specific situations that occur as outlined in redesignated paragraph e. However, other situations, not addressed in redesignated paragraph e, could occur that affect the yield used to establish the production guarantee. The current language limits the situations to those in redesignated paragraph e. FCIC
proposes to revise the language to refer to situations not necessarily specific to redesignated paragraph e.
FCIC proposes to revise redesignated paragraph e1. This paragraph addresses situations where any circumstance that may reduce the producers yields from previous levels occurs before the insurance period. It is silent on the timeframe in which the producer notifies the AIP. However, in redesignated paragraph e2, the producer notifies the AIP by the production reporting date. For consistency between the two paragraphs, FCIC proposes to add the same language in redesignated paragraph e2 to e1 regarding notification by the production reporting date.
FCIC also proposes to revise redesignated paragraph e1 to remove the last sentence. This information is proposed to be incorporated into redesignated paragraph e3.
FCIC proposes to revise redesignated paragraphs e2 and e3. The first sentence in each paragraph requires the producer to notify the AIP if a situation occurred or may occur after the beginning of the insurance period.
While redesignated paragraph e2
refers to situations when the producer notifies the AIP by the production reporting date and redesignated paragraph e3 refers to situations when the producer fails to notify the AIP by the production reporting date, both paragraphs expect the producer to be aware of circumstances that have not occurred yet. Therefore, FCIC proposes
PO 00000

Frm 00003

Fmt 4702

Sfmt 4702

to remove the phrase or may occur in both paragraphs.
FCIC also proposes to revise redesignated paragraph e3 to add clarifying language in the last sentence.
The last sentence says, We will reduce the yield used to establish your production guarantee for the subsequent crop year. To further clarify the purpose of the yield reduction in the subsequent crop year, FCIC proposes to add language that says the yield reduction will reflect any reduction in the productive capacity of the trees or the yield potential of the insured acreage. The proposed provisions in redesignated paragraph e consistent with provisions that FCIC recently added to other perennial crop policies, such as the Texas Citrus Fruit Crop Insurance Provisions. Adding these provisions is intended to remove potential ambiguity regarding the consequences when circumstances occur that will reduce the yield potential and to promote consistency with administration of similar policies.
FCIC proposes to add a new paragraph f to inform producers that they can insure fresh acreage in aggregate under type Fresh Combined or by other fresh types identified in the actuarial documents e.g., fresh varietal group types, not both. The type Fresh Combined includes all fresh varieties insured under the apple policy and the price offered for type Fresh Combined is an average price of all insurable varieties. Fresh varieties can also be insured under other types, either in groupings of specific varietals identified in the Special Provisions or individual varieties, if available in the countys actuarial documents. The fresh varieties insured in groupings of specific varietals identified in the Special Provisions or as individual varieties are insured at prices that are reflective of those smaller groupings. Under this proposed change, producers may insure all of their fresh acreage together under an umbrella of Fresh for an average price or they can insure groupings of fresh varieties and receive better prices by those groupings, if they have records to substantiate the separate varieties.
5. Section 6FCIC proposes to designate the undesignated paragraph as paragraph a. FCIC proposes to revise newly designated paragraph a to divide the paragraph into subparagraphs for ease of reading.
In paragraph a1, FCIC proposes to make two changes. First, the word option is removed following Optional Coverage for Fresh Fruit Quality Adjustment because the word is redundant. Second, the reference to
E:FRFM16DEP1.SGM

16DEP1