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Federal Register / Vol. 86, No. 239 / Thursday, December 16, 2021 / Proposed Rules
3 Or may occur after the beginning of the insurance period and you fail to notify us by the production reporting date, production lost due to uninsured causes equal to the amount of the reduction in the yield used to establish your production guarantee will be applied in determining any indemnity see section 12c1ii. We will reduce the yield used to establish your production guarantee for the subsequent crop year.
e We will reduce the yield used to establish your production guarantee, as necessary, based on our estimate of the effect of any circumstance that may reduce your yields from previous levels.
If the circumstance occurred:
1 Before 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 regardless of whether the circumstance 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 Before or after the beginning of the insurance period and you fail to notify 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 12c due to uninsured causes. We will 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 or in the yield potential of the insured acreage.
f If the actuarial documents contain type Fresh Combined, you can elect to insure your fresh acreage in aggregate under type Fresh Combined or by other fresh types identified in the actuarial documents, but not both.

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6. Report of Acreage a In addition to the requirements contained in section 6 of the Basic Provisions, you must report and designate all acreage by type by the acreage reporting date.
1 Any acreage not qualifying for fresh apple production is not eligible for the Optional Coverage for Fresh Fruit Quality Adjustment contained in section 14.
2 If you designate fresh apple acreage on the acreage report:

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i You are certifying that your fresh apple acreage meets the requirements in section 7d, unless otherwise authorized by FCIC.
ii You must submit an Apple Supplemental Report on the same basis you certify your acreage in section 6a2i by the production reporting date, containing the following, as applicable.
A Production sold as fresh;
B Production sold by direct marketing;
C Production sold as processing; and D Production in storage.
iii And you fail to submit an Apple Supplemental Report in accordance with section 6a2ii, you will not have coverage under any fresh type listed in the actuarial documents.
iv And you have high density acreage, the requirement in section 6a2i does not apply to high density acreage in the first year of insurability or as authorized by FCIC procedure.
b If any portion of your crop will be direct marketed, you must notify us at least 15 calendar days before any production will be harvested. We will conduct an appraisal that will be used to verify your production records in accordance with FCIC procedures.
7. Insured Crop

d That are grown for fresh apple production on acreage:
1 That is designated as fresh apples on the acreage report; and 2 That you certify and, if requested by us, provide verifiable records to support, that at least 50 percent of the production from all acreage reported as fresh apple acreage by policy or unit, as applicable, was sold as fresh apples in one or more of the four most recent crop years preceding the previous crop year e.g., for the 2023 crop year, the four most recent crop years preceding the previous crop year end in the 2021 crop year, unless authorized by FCIC
procedures;
e That are grown on acreage designated as processing apple production on the acreage report. Any production from acreage not meeting the requirements in section 7d must be designated on the acreage report as processing apple production; and f If you anticipate performing any action that will reduce the productive capacity of the trees or the yield potential of the insured acreage e.g., removing or grafting trees after the acreage reporting date you:
1 May report all apple acreage when you report your acreage for the crop year and specify any affected acreage as uninsurable acreage By doing so, no
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coverage will be considered to have attached on the specified acreage and no premium will be due for such acreage.
If you do not perform any action that will reduce the productive capacity of the trees or the yield potential of the insured acreage, you will be subject to the under-reporting provisions contained in section 6 of the Basic Provisions; or 2 May report all apple acreage as insurable when you report your acreage for the crop year. Premium will be due on all the acreage except as set forth herein.
i On acreage for which you perform actions that will reduce the productive capacity of the trees or the yield potential of the insured acreage, you may qualify for a reduction in premium only if you notify us in writing on a revised acreage report on or before March 31st or the date designated in the Special Provisions, and do not claim an indemnity on the acreage. No reduction in premium will be allowed if the required notice is not given or if you claim an indemnity for the acreage.
ii Upon receiving timely notice, insurance coverage on such acreage will cease and we will process your revised acreage report to indicate the applicable reduction in premium. If you do not perform the actions to the apple acreage as intended, you will be subject to the under-reporting provisions contained in section 6 of the Basic Provisions.

11. Duties in the Event of Damage or Loss

b

2 If any portion of your crop will be direct marketed, you must notify us at least 15 calendar days before any production will be harvested. We will conduct an appraisal that will be used to verify your production records in accordance with FCIC procedures. If damage occurs after this appraisal, we will conduct an additional appraisal.
These appraisals, and any other acceptable records required to be provided by you, will be used to determine your production to count.
Failure to give timely notice that production will be sold by direct marketing will result in an appraised amount of production to count of not less than the production guarantee per acre if such failure results in our inability to make the required appraisal.

12. Settlement of Claim

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