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khammond on DSKJM1Z7X2PROD with PROPOSALS

Federal Register / Vol. 86, No. 239 / Thursday, December 16, 2021 / Proposed Rules these Crop Provisions is struck for consistency, whereby only references to external documents are named by title.
FCIC proposes to revise newly designated paragraph a2i. The current provisions state if producers designate fresh acreage on their acreage report then they are certifying that at least 50 percent of the production from fresh apple acreage in each unit was sold as fresh apples in one or more of the four most recent crop years in accordance with the definition of fresh apple production.
FCIC also proposes to revise newlydesignated paragraph a2i to replace the reference to the definition of fresh apple production with the reference to section 7d. FCIC is proposing to move some provisions in the definition of fresh apple production to section 7d. Therefore, the reference in newlydesignated paragraph a2i needs to be updated to reflect the new location of the provisions in section 7d.
FCIC proposes to add a new paragraph a2ii to require producers who wish to insure as fresh to submit an Apple Supplemental Report that captures their total production by all fresh types aggregated and the processing type. This supports the existing FCIC rule to insure as fresh, which is that at least one of the prior four years must have produced at least 50 percent of the fresh guarantee. This change also allows FCIC to collect data to assist in determining whether fresh production requirements under the policy should be adjusted in the future.
Adjustments could include using the producers historical percent sold as fresh, replace the one-in-four fresh requirement with the producers historical percent of fresh sales, etc.
FCIC also proposes to revise newlydesignated paragraph a to add a new paragraph a2iii to complement the proposed language in new paragraph a2ii regarding the Apple Supplemental Report. The language proposed to be added in new paragraph a2iii notifies the producer that failure to submit the Apple Supplemental Report will result in no coverage under any fresh types. The producer will be able to have coverage under the processing type.
FCIC also proposes to revise newlydesignated paragraph a to add a new paragraph a2iv to an exception to the fresh apple production requirement mentioned in the above paragraph for high density acreage in the first year of insurability or in other circumstances as authorized by FCIC. First, high density acreage is established with the intent of producing fresh apples and FCIC
recognizes that producers that invest in
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high density systems are intending to grow for fresh, but may not have the sales records in the first year of insurability to substantiate sales of fresh production. Therefore, it is not necessary to require high density acreage to meet the fresh apple production requirement for that first year of insurability. Second, allowing exceptions to the fresh apple production requirement in other circumstances as authorized by FCIC will provide FCIC to waive the fresh apple production requirement on a case-by-case basis if producers suffer exceptionally bad years such as a year in which a natural disaster or other extreme weather occurs which affected the end use of their apples that they intended to sell as fresh.
FCIC proposes to add a new paragraph b to require producers to notify the AIP 15 days prior to harvest if they intend to sell production via direct marketing so AIPs can perform the necessary preharvest inspections.
Producers who sell production via direct marketing are required to notify AIPs prior to harvest if there is a loss.
Currently, there is no provision that requires those producers to notify AIPs prior to harvest if there is no loss. By adding this provision, it provides AIPs an opportunity to conduct a preharvest appraisal when there is no loss.
6. Section 7FCIC proposes to revise paragraph d to add language that was previously contained in the definition of fresh apple production. That language is better suited in this section than in the definition. Additionally, FCIC is proposing to revise the language that is moved to paragraph d. The first proposed change is to replace a reference of unit with policy or unit, as applicable. Over the years, FCIC
received comments that producers find it difficult and inappropriate to maintain separate records by unit after the apple production has left the field.
Producers pointed out that while they can and do maintain records of production by unit, once the apples are delivered to a warehouse, which is often a third party, for later sales and distribution it is virtually impossible and/or impractical to expect all the apples to be tracked by unit. In 2011, FCIC issued a Managers Bulletin MGR11015 that allowed producers who do not have separate records by unit of fresh apple production in one of the last four years but do have records of total fresh apple production may still be able to qualify for the fresh apple production requirement at least 50
percent of the production from fresh apple acreage was sold as fresh apples in one or more of the four most recent
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crop years. MGR11015 authorized AIPs to consider records of total production e.g., by policy rather than by unit, if the producer could not provide records by unit from one of the four most recent crop years that reflect fresh apple sales. FCIC is proposing to incorporate the guidance in MGR11
015 by adding replacing unit with policy or unit, as applicable in paragraph d.
The second proposed change in paragraph d is to add after the phrase one or more of the four most recent crop years the phrase preceding the previous crop year, unless authorized by FCIC. The proposed phrase aligns the one-in-four fresh requirement with the years proposed to be reported on the Apple Supplemental Report. Under the current provisions, the one-in-four fresh requirement is based on the four most recent crop years. For example, if the producer is purchasing crop insurance for the 2023 crop year, then the AIP
would consider records from crop years 2019 through 2022. Under the proposed provisions, the Apple Supplemental Report is requesting information for the crop year prior to the previous crop year. Therefore, if the producer is purchasing crop insurance for the 2023
crop year, then producer would report information based on the 2021 crop year. The proposed changes in this paragraph are meant to align the information the producer reports on the Apple Supplemental Report with the last year in the one or more of the four most recent crop years.
FCIC also proposes to move language in paragraph d regarding processing apple production to a new paragraph e and add language that was previously contained in the definition of processing apple production. That language is better suited in this section than in the definitions.
FCIC also proposes to add a new paragraph f to allow for a reduced premium in certain circumstances.
Currently, producers must report their acreage by the January 15th acreage reporting date, which is before they typically conduct routine orchard maintenance. Producers typically graft or remove apple trees after the acreage reporting date and into March. Those trees that are grafted or removed will not produce apples that crop year. This provision allows producers to either report the acreage as uninsurable as of the acreage reporting date; or receive a reduced premium rate to better reflect the condition of their orchards if they submit a revised acreage report by March 31st that trees were grafted or removed.

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