Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance Regulations; Common Crop Insurance Regulations, Guaranteed Production Plan of Fresh Market Tomato Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 454 and 457

Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance

Regulations; Common Crop Insurance Regulations, Guaranteed Production

Plan of Fresh Market Tomato Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes

specific crop provisions for the insurance of fresh market tomatoes.

The provisions will be used in conjunction with the Common Crop

Insurance Policy Basic Provisions, which contain standard terms and

conditions common to most crops. The intended effect of this action is

to provide policy changes to better meet the needs of the insured,

include the current Fresh Market Tomato (Guaranteed Production Plan)

Crop Insurance Regulations with the Common Crop Insurance Policy for

ease of use and consistency of terms, and to restrict the effect of the

current Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance

Regulations to the 1997 and prior crop years.

EFFECTIVE DATE: June 2, 1997.

FOR FURTHER INFORMATION CONTACT: Louise Narber, Insurance Management

Specialist, Research and Development, Product Development Division,

Federal Crop Insurance Corporation, United States Department of

Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816)

926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office of Management and Budget (OMB) has determined this rule

to be exempt for the purposes of Executive Order No. 12866 and,

therefore, this rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed rule, the public was afforded

60 days to submit comments, data, and opinions on information

collection requirements previously approved by OMB under OMB control

number 0563-0003 through September 30, 1998. No public comments were

received.

Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public

[[Page 23629]]

Law 104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on State, local, and tribal

governments and the private sector. This rule contains no Federal

mandates (under the regulatory provisions of title II of the UMRA) of

State, local, and tribal governments or the private sector. Thus, this

rule is not subject to the requirements of sections 202 and 205 of the

UMRA.

Executive Order No. 12612

It has been determined under section 6(a) of Executive Order No.

12612, Federalism, that this rule does not have sufficient federalism

implications to warrant the preparation of a Federalism Assessment. The

provisions contained in this rule will not have a substantial direct

effect on States or their political subdivisions, or on the

distribution of power and responsibilities among the various levels of

government.

Regulatory Flexibility Act

This regulation will not have a significant impact on a substantial

number of small entities. New provisions included in this rule will not

impact small entities to a greater extent than large entities. Under

the current regulations, a producer is required to complete an

application and acreage report. If the crop is damaged or destroyed,

the insured is required to give notice of loss and provide the

necessary information to complete a claim for indemnity. The insured

must also annually certify to the previous years production, if

adequate records are available to support the certification or receive

a transitional yield. The producer must maintain the production records

to support the certified information for at least three years. This

regulation does not alter those requirements. The amount of work

required of the insurance companies delivering and servicing these

policies will not increase significantly from the amount of work

currently required. This rule does not have any greater or lesser

impact on the producer. Therefore, this action is determined to be

exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C.

605), and no Regulatory Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.450.

Executive Order No. 12372

This program is not subject to the provisions of Executive Order

No. 12372, which require intergovernmental consultation with State and

local officials. See the Notice related to 7 CFR part 3015, subpart V,

published at 48 FR 29115, June 24, 1983.

Executive Order No. 12988

This final rule has been reviewed in accordance with Executive

Order No. 12988. The provisions of this rule will not have a

retroactive effect prior to the effective date. The provisions of this

rule will preempt State and local laws to the extent such State and

local laws are inconsistent herewith. The administrative appeal

provisions published at 7 CFR part 11 must be exhausted before any

action for judicial review may be brought.

Environmental Evaluation

This action is not expected to have a significant impact on the

quality of the human environment, health, and safety. Therefore,

neither an Environmental Assessment nor an Environmental Impact

Statement is needed.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review Initiative to eliminate unnecessary or duplicative

regulations and improve those that remain in force.

Background

On Friday, September 13, 1996, FCIC published a proposed rule in

the Federal Register at 61 FR 48423-48428 to add to the Common Crop

Insurance Regulations (7 CFR part 457), a new section, 7 CFR

Sec. 457.128 Guaranteed Production Plan of Fresh Market Tomato Crop

Insurance Provisions. The new provisions will be effective for the 1998

and succeeding crop years. These provisions will replace and supersede

the current provisions for insuring fresh market tomatoes found at 7

CFR part 454 (Fresh Market Tomato (Guaranteed Production Plan) Crop

Insurance Regulations). FCIC also amends 7 CFR part 454 to limit its

effect to the 1997 and prior crop years.

Following publication of the proposed rule, the public was afforded

30 days to submit written comments and opinions. A total of 34 comments

were received from congressional offices, the crop insurance industry

and FCIC. The comments received, and FCIC's responses are as follows:

Comment: One representative of FCIC indicated that the definition

of ``Acre'' was confusing and recommended it be defined similar to the

procedure contained in the loss handbook which states ``Divide 43,560

(the number of square feet in one acre) by the row width for any row

width below 6 feet. If the row width is 6 feet or more, divide by 6

feet. (You now have the lineal feet of beds (rows) in one acre. The

lineal feet of rows per acre cannot be less than 7,260 feet regardless

of the row width.)'' Another representative of FCIC stated that acreage

in California is based solely on land area, not on row spacing. All

acreage in California is planted to 60 inch (5 foot) beds and 43,560

should not be divided by 5 foot beds.

Response: The definition will not be changed because it will work

for all areas of the country as it is now stated.

Comment: A representative of FCIC recommended a definition for

``first fruit set'' be added since it is referenced in the stage

guarantee.

Response: FCIC agrees and has added a definition for ``first fruit

set.''

Comment: The crop insurance industry recommended that the

definition of ``irrigated practice'' should also address the quality of

the water being applied.

Response: FCIC disagrees. There are no clear criteria regarding the

quality of water necessary to produce a crop. Such criteria would be

difficult to develop and administer due to the complex interactions of

various factors. No change has been made to the definition.

Comment: The crop insurance industry recommended that the

definition of ``replanting'' be revised because the phrase ``replace

the tomato plants and then replacing the tomato plants'' was confusing

and awkward. They suggested ``plant the tomato plants and then

replacing the tomato plants.''

Response: FCIC agrees that the wording is awkward and has amended

the definition for clarification.

Comment: The crop insurance industry stated that: (1) The

definition of ``ripe tomato'' is not clear because it does not specify

how much red color is allowable in determining production to count. The

packer dictates to the producer what can be packed in terms of color.

Packers will not allow any red tomatoes to be shipped. (2) The

definition of ``potential production'' suggests that the insurance

provider will count green and red tomatoes to determine the amount of

production. Without a clear definition loss adjusters will not know

which tomatoes to count when appraising tomatoes. (3) They have a legal

interpretation that mature green and ripe tomatoes are one and the

same. Based on the policy language in the proposed rule it is difficult

to determine which tomatoes are production to count.

Response: The definition of ``ripe tomato'' has been revised. It

now states ``A tomato that meets the definition of a mature green

tomato, except the

[[Page 23630]]

tomato shows some red color and can still be packed for fresh market

under the agreement or contract with the packer.'' This permits the

loss adjuster to know that only tomatoes that could be packed will be

considered production to count.

Comment: The crop insurance industry questioned whether the phrase

``all optional units established for a crop year must be identified on

the acreage report for that crop year'' could cause problems if the

production reporting date and acreage reporting date do not coincide.

They stated that policyholders may read this to mean that they can

change their units at acreage reporting time, even if not supported by

the production reports submitted by the earlier production reporting

date.

Response: Production reports must be filed by the producer the

earlier of the acreage reporting date or 45 calendar days after the

cancellation date for the crop and any optional units that the producer

will select and enter on the acreage report must be determined at that

time. The provision has been clarified by stating ``all optional units

you selected for the crop year must be identified on the acreage report

for that crop year.''

Comment: Representatives of FCIC recommended that optional unit

division by irrigated and non-irrigated acreage be deleted. In most of

the counties it is a requirement that the acreage be irrigated to be

insurable.

Response: This provision has been deleted.

Comment: The crop insurance industry suggested that section 3(a)

begin with the phase `` You may select only one price percentage ***.''

It would not then be necessary to include complex provisions regarding

different varieties with different maximum prices.

Response: Methods used to select price elections vary among

insurance providers. While some require selection of a percentage,

others require selection of a specific dollar amount. The suggested

change will not work in all circumstances. No change has been made to

the provisions.

Comment: Representatives of FCIC stated that the stage guarantees

should be revised for California because the input costs do not follow

the existing guidelines. A major expense of growing fresh tomatoes in

California is harvesting and packing the crop. Tomatoes in California

are not tied and staked so the stage guarantees should be similar to

those of canning and processing tomatoes.

Response: FCIC agrees and has made the recommended change.

Comment: The crop insurance industry and FCIC requested that

cherry, roma and plum type tomatoes be insurable.

Response: FCIC generally does not offer insurance for cherry, roma,

or plum type tomatoes because there are no uniform standards for

marketability. However, in areas where such standards exist, insurance

may be offered. No acreage of cherry, roma, or plum type tomatoes

should be included in the guarantee or the production to count, unless

coverage is provided in the Special Provisions for that type.

Comment: The crop insurance industry questioned whether the

provision excluding tomatoes grown for direct marketing from being

insurable should be under the section for ``Insured Crop'' rather than

the section for ``Insurable Acreage.''

Response: FCIC agrees and has changed the location of this

provision to ``Insured Crop.''

Comment: Representatives of FCIC recommended deleting the phrase

``or by written agreement'' from section 8(d), so that only the Special

Provisions would permit insurance to attach to tomatoes grown for

direct marketing, interplanted with another crop, or planted into an

established grass or legume.

Response: FCIC agrees. This section has been revised and now

includes the provision to exclude cherry, roma, and plum type tomatoes

unless allowed by the Special Provisions, to ensure that proper

standards exist.

Comment: Representatives of FCIC recommended that a provision be

added to allow tomatoes to be insured when grown on acreage that has

not been in annual production for several years. It is a recommended

practice to grow tomatoes on acreage that has been newly cleared,

formerly served as pasture land, etc., to eliminate some of the risk of

disease and insect damage.

Response: A new section 9(b) has been added to incorporate this

suggestion.

Comment: The crop insurance industry stated that section 9(b)(4) in

the proposed rule (redesignated as section 9(a)(2)(iii)) was difficult

to understand and opposed the change that would not require the

application of a fumigant or nematicide if the tomatoes were destroyed

prior to reaching the second stage. They also stated that nematodes are

such a problem in some areas that fumigation prior to replanting

possibly should be required.

Response: FCIC agrees that these provisions were confusing and that

a fumigant or nematicide may be needed even if the tomatoes are

destroyed prior to reaching the second stage. These provisions have

been modified accordingly, clarified and re-designated.

Comment: The crop insurance industry questioned whether section

9(b)(5) of the proposed rule should be moved under the section for

``Insured Crop'' rather than remaining in the section for ``Insurable

Acreage.'' Some representatives of FCIC stated that producer and packer

agreements are not needed because a majority of the growers own the

packing facilities in their region. They recommended that this section

be deleted. Other representatives stated that without this provision

growers might plant acreage after normal dates with the hopes of

filling a market void.

Response: This section has been moved under ``Insured Crop'' but

has not been deleted in order to ensure that those producers who do not

have their own packing facilities have a market for the crop and to

prevent producers from planting after normal dates. FCIC cannot offer

insurance when there is only speculation that a market may exist.

Comment: Representatives of FCIC and congressional offices

requested that disease and insect infestation be insurable causes of

loss according to the provisions for annual crops. They did not agree

with the limitations that cover these perils only if adverse weather

prevents the proper application of control measures, causes properly

applied control measures to be ineffective, or causes disease or insect

infestation for which no effective control mechanism is available. They

stated that changing the provision would simplify the rule by

dispensing with the requirement for a weather determination and more

closely matches coverage for other crops under the program.

Response: FCIC agrees and section 11 has been revised accordingly.

Comment: The crop insurance industry stated that language should be

added to indicate that quality deductions are not allowed for

unharvested production.

Response: The provisions have been amended to specify that

unharvested production of mature green and ripe tomatoes remaining

after harvest has ended with a classification size of 6 x 7 (2\8/32\

inch minimum diameter) or larger; or that grade in accordance with the

requirements specified in the Special Provisions for cherry, roma, or

plum types will be production to count. If the tomato would not have

met classification size or grade requirements whether harvested or not,

such tomatoes should not be included as production to count.

[[Page 23631]]

Comment: Representatives of FCIC recommended that a provision be

added specifying that only that amount of appraised production in

excess of the difference between the final stage guarantee and the

stage guarantee applicable to acreage that does not qualify for the

final stage guarantee will be considered production to count.

Response: FCIC agrees and has amended the provisions accordingly.

Comment: The crop insurance industry stated that they believe the

written agreement should be continuous if no substantive changes occur

from one year to the next.

Response: Written agreements are, by design, temporary and intended

to address unusual circumstances. If the condition for which a written

agreement is needed exists each crop year, the Special Provisions

should be amended to reflect this condition. No change has been made to

these provisions.

Comment: The crop insurance industry suggested combining the

provisions contained in section 14(e) with the provisions in section

14(a).

Response: Section 14(e) is intended to be a limited exception, not

the rule, in those cases where conditions are discovered after the

sales closing date, which make written agreements necessary. The

provisions are clearly stated and have not been combined.

Comment: The crop insurance industry recommended that the tomato

program be added to several areas to cover fall planted tomato acreage

in northern Florida, southern Georgia, and Virginia. Specifically, they

suggested that insurance be available beginning with the 1998 crop year

in Cook, Colquitt, Tift, Lowndes, and Echols Counties, Georgia, and

Hamilton County, Florida. They also suggested coverage in North Hampton

and Accomack Counties, Virginia.

Response: Recommendations for program expansion must be made to the

appropriate Regional Service Office within FCIC. Adding coverage in the

requested areas will not require changes to these provisions.

Comment: Congressional offices stated that it is crucial that this

new policy be available for the 1997 crop year in Arkansas.

Response: To be effective for the 1997 crop year, this rule had to

be published as a final rule by November 30, 1996. Since that date has

passed the rule cannot be effective until the 1998 crop year.

In addition to the changes described above, FCIC has made the

following changes to the Guaranteed Production Plan of Fresh Market

Tomato Crop Insurance Provisions:

1. Section 1--Changed the definition of ``carton,'' ``good farming

practices,'' ``planting period,'' ``practical to replant,'' ``potential

production,'' ``production guarantee (per acre),'' and ``row width''

for clarification. Deleted the definition of ``prevented planting''

because prevented planting coverage is not provided for this crop.

2. Section 3--Added section 3(d) to specify that production

guarantees will be contained in the Special Provisions for cherry,

roma, or plum type tomatoes if these types are insurable.

3. Section 10--Clarified when coverage begins. Added the provision

from the current policy that specifies the end of the insurance period

is ``November 20 of the crop year in California and September 20 in all

other states.'' This will prevent the provision of ``120 days after the

date of transplanting or replanting'' from extending the insurance

period past November 20 in California or September 20 in all other

states.

4. Section 12--Added a provision to specify that the maximum amount

of replanting payment per acre for cherry, pear, or plum types will be

contained in the Special Provisions.

5. Section 13--Added provisions regarding production to count for

cherry, roma and plum type tomatoes if authorized by the Special

Provisions.

List of Subjects in 7 CFR Parts 454 and 457

Crop insurance, Fresh market tomato (guaranteed production plan)

crop insurance regulations, guaranteed production plan of fresh market

tomato.

Final Rule

Accordingly, for the reasons set forth in the preamble, the Federal

Crop Insurance Corporation hereby amends 7 CFR parts 454 and 457 as

follows:

PART 454--FRESH MARKET TOMATO (GUARANTEED PRODUCTION PLAN) CROP

INSURANCE REGULATIONS FOR THE 1987 THROUGH 1997 CROP YEARS

1. The authority citation for 7 CFR part 454 continues to read as

follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

2. The part heading is revised to read as set forth above.

3. Subpart heading ``Subpart--Regulations for the 1987 and

Succeeding Crop Years'' is removed.

4. Section 454.7 is amended by revising the introductory text of

paragraph (d) to read as follows:

Sec. 454.7 The application and policy.

* * * * *

(d) The application is found at subpart D of part 400, General

Administrative Regulations (7 CFR 400.37, 400.38). The provisions of

the Fresh Market Tomato (Guaranteed Production Plan) Crop Insurance

Regulations for the 1987 through 1997 crop years are as follows:

* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE

1994 AND SUBSEQUENT CONTRACT YEARS

4. The authority citation for 7 CFR part 457 continues to read as

follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

5. Section 457.128 is added to read as follows:

Sec. 457.128 Guaranteed Production Plan of Fresh Market Tomato Crop

Insurance Provisions.

The Guaranteed Production Plan of Fresh Market Tomato Crop

Insurance Provisions for the 1998 and succeeding crop years are as

follows:

FCIC policies:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Guarantee Production Plan of Fresh Market Tomato Crop Provisions

If a conflict exists among the Basic Provisions (Sec. 457.8),

these Crop Provisions, and the Special Provisions; the Special

Provisions will control these Crop Provisions and the Basic

Provisions; and these Crop Provisions will control the Basic

Provisions.

1. Definitions

Acre--Forty-three thousand five hundred sixty (43,560) square

feet of land when row widths do not exceed six feet, or if row

widths exceed six feet, the land area on which at least 7,260 linear

feet of rows are planted.

Carton--A container that contains 25 pounds of fresh tomatoes

unless otherwise provided in the Special Provisions.

Days--Calendar days.

Direct marketing--Sale of the insured crop directly to consumers

without the intervention of an intermediary such as a wholesaler,

retailer, packer, processor, shipper or buyer. Examples of direct

marketing include selling through an on-farm or roadside stand,

farmer's market, and permitting the general public to enter the

field for the purpose of picking all or a portion of the crop.

First fruit set--The date when 30 percent of the plants on the

unit have produced fruit that has reached a minimum size of one inch

in diameter.

FSA--The Farm Service Agency, an agency of the United States

Department of Agriculture, or a successor agency.

[[Page 23632]]

Good farming practices--The cultural practices generally in use

in the county for the crop to make normal progress toward maturity

and produce at least the yield used to determine the production

guarantee, and are those recognized by the Cooperative State

Research, Education, and Extension Service as compatible with

agronomic and weather conditions in the county.

Harvest--Picking of marketable tomatoes.

Irrigated practice--A method of producing a crop by which water

is artificially applied during the growing season by appropriate

systems and at the proper times, with the intention of providing the

quantity of water needed to produce at least the yield used to

establish the irrigated production guarantee on the irrigated

acreage planted to the insured crop.

Mature green tomato--A tomato that:

(a) Has a heightened gloss due to a waxy skin that cannot be

torn by scraping;

(b) Has a well-formed jelly-like substance in the locules;

(c) Has seeds that are sufficiently hard so they are pushed

aside and not cut by a sharp knife in slicing; and

(d) Shows no red color.

Planting--Transplanting the tomato plants into the field.

Planting period--The time period designated in the Special

Provisions during which the tomatoes must be planted to be insured

as either spring-or fall-planted tomatoes.

Plant stand--The number of live plants per acre before any

damage occurs.

Potential production--The number of cartons per acre of mature

green or ripe tomatoes that the tomato plants would have produced by

the end of the insurance period:

(a) With a classification size of 6 x 7 (2-8/32 inch minimum

diameter) or larger for all types except cherry, roma, or plum; or

(b) Meeting the criteria specified in the Special Provisions for

cherry, roma, or plum types.

Practical to replant--In lieu of the definition of ``Practical

to replant'' contained in section 1 of the Basic Provisions

(Sec. 457.8), practical to replant is defined as our determination,

after loss or damage to the insured crop, based on factors,

including but not limited to moisture availability, condition of the

field, time to crop maturity, and marketing windows that replanting

the insured crop will allow the crop to attain maturity prior to the

calendar date for the end of the insurance period. In counties that

do not have both spring and fall planting periods, it will not be

considered practical to replant after the final planting date unless

replanting is generally occurring in the area. In counties that have

spring and fall planting periods, it will not be considered

practical to replant after the final planting date for the planting

period in which the crop was initially planted.

Production guarantee (per acre)--The number of cartons

determined by multiplying the approved APH yield per acre by the

coverage level percentage you elect for the applicable type.

Replanting--Performing the cultural practices necessary to

prepare the land to replace the tomato plants and then replacing the

tomato plants in the insured acreage with the expectation of growing

a successful crop.

Ripe tomato--A tomato that meets the definition of a mature

green tomato, except the tomato shows some red color and can still

be packed for fresh market under the agreement or contract with the

packer.

Row width--The distance in feet from the center of one row of

plants to the center of an adjacent row.

Written agreement--A written document that alters designated

terms of this policy in accordance with section 14.

2. Unit Division

(a) In addition to the requirements for a unit, as defined in

section 1 (Definitions) of the Basic Provisions (Sec. 457.8), (basic

unit) basic units will be provided by planting period if spring and

fall planting periods are provided for in the Special Provisions.

(b) Unless limited by the Special Provisions, basic units may be

divided into optional units only if, for each optional unit you meet

all the conditions of this section or if a written agreement to such

division exists.

(c) Basic units may not be divided into optional units on any

basis including, but not limited to, production practice, type,

variety, and planting period, other than as described in this

section.

(d) If you do not comply fully with these provisions, we will

combine all optional units that are not in compliance with these

provisions into the basic unit from which they were formed. We will

combine the optional units at any time we discover that you have

failed to comply with these provisions. If failure to comply with

these provisions is determined to be inadvertent, and the optional

units are combined into a basic unit, that portion of the additional

premium paid for the optional units that have been combined will be

refunded to you.

(e) All optional units you selected for the crop year must be

identified on the acreage report for that crop year.

(f) The following requirements must be met for each optional

unit:

(1) You must have records, which can be independently verified,

of planted acreage and production for each optional unit for at

least the last crop year used to determine your production

guarantee;

(2) You must plant the crop in a manner that results in a clear

and discernable break in the planting pattern at the boundaries of

each optional unit;

(3) Records of current year's marketed production or measurement

of stored production from each optional unit must be maintained in

such a manner that permits us to verify the production from each

optional unit, or the production from each unit must be kept

separate until loss adjustment is completed by us; and

(4) Optional units may be established by section, section

equivalent, or FSA Farm Serial Number if each optional unit is

located in a separate legally identified section. In the absence of

sections, we may consider parcels of land legally identified by

other methods of measure including, but not limited to Spanish

grants, railroad surveys, leagues, labors, or Virginia Military

Lands, as the equivalent of sections for unit purposes. In areas

that have not been surveyed using the systems identified above, or

another system approved by us, or in areas where such systems exist

but boundaries are not readily discernable, each optional unit must

be located in a separate farm identified by a single FSA Farm Serial

Number.

3. Insurance Guarantees, Coverage Levels, and Prices for Determining

Indemnities

In addition to the requirements of section 3 (Insurance

Guarantees, Coverage Levels, and Prices for Determining Indemnities)

of the Basic Provisions (Sec. 457.8):

(a) You may select only one price election for all the tomatoes

in the county insured under this policy unless the Special

Provisions provide different price elections by type, in which case

you may select one price election for each tomato type designated in

the Special Provisions. The price election you choose for each type

must have the same percentage relationship to the maximum price

offered by us for each type. For example, if you choose 100 percent

of the maximum price election for one type, you must also choose 100

percent of the maximum price election for all other types.

(b) The production guarantees per acre are progressive by stages

and increase at specified intervals to the final stage production

guarantee. The stages and production guarantees are as follows:

(1) For California:

------------------------------------------------------------------------

Percent of

stage 3

(final

Stage stage) Length of time

production

guarantee

------------------------------------------------------------------------

1......................... 50 From planting until first fruit

set.

2......................... 70 From first fruit set until

harvested.

3......................... 100 Harvested acreage.

------------------------------------------------------------------------

(2) For all other states, except California:

------------------------------------------------------------------------

Percent of

stage 4

(final

Stage stage) Length of time

production

guarantee

------------------------------------------------------------------------

1....... 50 From planting until qualifying

for stage 2.

2......................... 75 From the earlier of stakes

driven, one tie and pruning, or

30 days after planting until

qualifying for stage 3.

3......................... 90 From the earlier of the end of

stage 2 or 60 days after

planting until qualifying for

stage 4.

4......................... 100 From the earlier of 75 days

after planting or the beginning

of harvest.

------------------------------------------------------------------------

[[Page 23633]]

(c) Any acreage of tomatoes damaged to the extent that producers

in the area generally would not further care for the tomatoes will

be deemed to have been destroyed even though you continue to care

for the tomatoes. The production guarantee for such acreage will be

the guarantee for the stage in which such damage occurs.

(d) Any production guarantees for cherry, roma, or plum type

tomatoes will be specified in the Special Provisions.

4. Contract Changes

In accordance with section 4 (Contract Changes) of the Basic

Provisions (Sec. 457.8), the contract change date is September 30

preceding the cancellation date for counties with a January 15

cancellation date and December 31 preceding the cancellation date

for all other counties.

5. Cancellation and Termination Dates

In accordance with section 2 (Life of Policy, Cancellation, and

Termination) of the Basic Provisions (Sec. 457.8), the cancellation

and termination dates are:

Cancellation and Termination

------------------------------------------------------------------------

State Dates

------------------------------------------------------------------------

California, Florida, Georgia, and South January 15.

Carolina.

All other states....................... March 15.

------------------------------------------------------------------------

6. Report of Acreage

(a) In addition to the provisions of section 6 (Report of

Acreage) of the Basic Provisions (Sec. 457.8), you must report the

row width.

(b) If spring and fall planting periods are allowed in the

Special Provisions you must report all the information required by

section 6 (Report of Acreage) of the Basic Provisions (Sec. 457.8)

and these Crop Provisions by the acreage reporting date for each

planting period.

7. Annual Premium

In lieu of provisions contained in the Basic Provisions

(Sec. 457.8), for determining premium amounts, the annual premium is

determined by multiplying the final stage production guarantee by

the price election, by the premium rate, by the insured acreage, by

your share at the time coverage begins, and by any applicable

premium adjustment factor contained in the Special Provisions.

8. Insured Crop

In accordance with section 8 (Insured Crop) of the Basic

Provisions (Sec. 457.8), the crop insured will be all the tomatoes

in the county for which a premium rate is provided by the actuarial

table:

(a) In which you have a share;

(b) That are transplanted tomatoes that have been planted for

harvest as fresh market tomatoes;

(c) That are planted within the spring or fall planting periods,

as applicable, specified in the Special Provisions;

(d) That, on or before the acreage reporting date, are subject

to any agreement in writing (packing contract) executed between you

and a packer, whereby the packer agrees to accept and pack the

production specified in the agreement, unless you control a packing

facility or an exception exists in the Special Provisions; and

(e) That are not (unless allowed by the Special Provisions):

(1) Grown for direct marketing;

(2) Interplanted with another crop;

(3) Planted into an established grass or legume; or

(4) Cherry, roma, or plum type tomatoes.

9. Insurable Acreage

(a) In addition to the provisions of section 9 (Insurable

Acreage) of the Basic Provisions (Sec. 457.8):

(1) Any acreage of the insured crop damaged before the final

planting date, to the extent that the majority of growers in the

area would normally not further care for the crop, must be replanted

unless we agree that it is not practical to replant. Unavailability

of plants will not be considered a valid reason for failure to

replant.

(2) We do not insure any acreage of tomatoes:

(i) Grown by any person if the person had not previously:

(A) Grown fresh market tomatoes for commercial sales; or

(B) Participated in the management of a fresh market tomato

farming operation, in at least one of the three previous years.

(ii) That does not meet the rotation requirements contained in

the Special Provisions;

(iii) On which tomatoes, peppers, eggplants, or tobacco have

been grown within the previous two years unless the soil was

fumigated or nematicide was applied before planting the tomatoes,

except that this limitation does not apply to a first planting in

Pennsylvania or if otherwise specified in the Special Provisions; or

(b) In lieu of the provisions of section 9 (Insurable Acreage)

of the Basic Provisions (Sec. 457.8), that prohibit insurance from

attaching if a crop has not been planted and harvested in at least

one of the three previous calendar years, we will insure newly

cleared land or former pasture land planted to fresh market

tomatoes.

10. Insurance Period

In lieu of the provisions of section 11 (Insurance Period) of

the Basic Provisions (Sec. 457.8):

(a) Coverage begins on each unit or part of a unit on the later

of the date you submit your application or when the tomatoes are

planted.

(b) Coverage will end on any insured acreage at the earliest of:

(1) Total destruction of the tomatoes;

(2) Discontinuance of harvest;

(3) The date harvest should have started on any acreage that was

not harvested;

(4) 120 days after the date of transplanting or replanting;

(5) Completion of harvest;

(6) Final adjustment of a loss; or

(7) November 20 of the crop year in California and September 20

in all other states.

11. Causes of Loss

(a) In accordance with the provisions of section 12 (Causes of

Loss) of the Basic Provisions (Sec. 457.8), insurance is provided

only against the following causes of loss that occur during the

insurance period:

(1) Adverse weather conditions;

(2) Fire;

(3) Insects, but not damage due to insufficient or improper

application of pest control measures;

(4) Plant disease, but not damage due to insufficient or

improper application of disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of irrigation water supply, if caused by an insured

peril that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12

(Causes of Loss) of the Basic Provisions (Sec. 457.8), we will not

insure against damage or loss of production that occurs or becomes

evident after the tomatoes have been harvested.

12. Replanting Payment

(a) In accordance with section 13 (Replanting Payment) of the

Basic Provisions (Sec. 457.8), a replanting payment is allowed if

the crop is damaged by an insurable cause of loss and the acreage to

be replanted has sustained a loss in excess of 50 percent of the

plant stand.

(b) The maximum amount of the replanting payment per acre will

be:

(1) Seventy (70) cartons multiplied by your price election,

multiplied by your insured share for all insured tomatoes except

cherry, roma or plum types; and

(2) As specified in the Special Provisions for cherry, roma, or

plum types.

(c) In lieu of the provisions contained in section 13

(Replanting Payment) of the Basic Provisions (Sec. 457.8) that

permit only one replanting payment each crop year, when both spring

and fall planting periods are contained in the Special Provisions,

you may be eligible for one replanting payment for acreage planted

during each planting period within the crop year.

13. Settlement of Claim

(a) We will determine your loss on a unit basis. In the event

you are unable to provide separate, acceptable production records:

(1) For any optional units, we will combine all optional units

for which such production records were not provided; or

(2) For any basic units, we will allocate any commingled

production to such units in proportion to our liability on the

harvested acreage for the units.

(b) In the event of loss or damage covered by this policy, we

will settle your claim by:

(1) Multiplying the insured acreage for each type, if

applicable, by its respective production guarantee for the stage in

which the damage occurred;

(2) Multiplying the results of section 13(b)(1) by the

respective price election for each type, if applicable;

(3) Totaling the results of section 13(b)(2);

(4) Multiplying the total production to be counted of each type,

if applicable, (see section 13(c)) by the respective price election;

(5) Totaling the results of section 13(b)(4);

(6) Subtracting this result of section 13(b)(5) from the results

in section 13(b)(3); and

[[Page 23634]]

(7) Multiplying the result of section 13(b)(6) by your share.

(c) The total production to count (in cartons) from all

insurable acreage on the unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) That is damaged solely by uninsured causes; or

(D) For which you fail to provide production records that are

acceptable to us;

(ii) Potential production lost due to uninsured causes;

(iii) Unharvested production of mature green and ripe tomatoes

remaining after harvest has ended:

(A) With a classification size of 6 x 7 (2\8/32\ inch minimum

diameter) or larger for types other than cherry, roma, or plum; or

(B) That grade in accordance with the requirements specified in

the Special Provisions for cherry, roma or plum types.

(iv) Potential production on unharvested acreage and potential

production on acreage when final harvest has not been completed;

(v) Potential production on insured acreage that you intend to

put to another use or abandon, if you and we agree on the appraised

amount of production. Upon such agreement, the insurance period for

that acreage will end when you put the acreage to another use or

abandon the crop. If agreement on the appraised amount of production

is not reached:

(A) If you do not elect to continue to care for the crop, we may

give you consent to put the acreage to another use if you agree to

leave intact, and provide sufficient care for representative samples

of the crop in locations acceptable to us (The amount of production

to count for such acreage will be based on the harvested production

or appraisals from the samples at the time harvest should have

occurred. If you do not leave the required samples intact, or you

fail to provide sufficient care for the samples, our appraisal made

prior to giving you consent to put the acreage to another use will

be used to determine the amount of production to count); or

(B) If you elect to continue to care for the crop, the amount of

production to count for the acreage will be the harvested

production, or our reappraisal if additional damage occurs and the

crop is not harvested; and

(2) All harvested production from the insurable acreage:

(i) That is marketed, regardless of grade; and

(ii) That is unmarketed and:

(A) That grades eighty-five percent (85%) or better U.S. No. 1

with a classification size of 6 x 7 (2-8/32 inch minimum diameter)

or larger for all types except cherry, roma, or plum; or

(B) That grade in accordance with the requirements specified in

the Special Provisions for cherry, roma, or plum types.

(d) Only that amount of appraised production that exceeds the

difference between the final stage guarantee and the stage guarantee

applicable to the acreage will be production to count.

14. Written Agreements

Designated terms of this policy may be altered by written

agreement in accordance with the following:

(a) You must apply in writing for each written agreement no

later than the sales closing date, except as provided in section

14(e);

(b) The application for a written agreement must contain all

variable terms of the contract between you and us that will be in

effect if the written agreement is not approved;

(c) If approved, the written agreement will include all variable

terms of the contract, including, but not limited to, crop type or

variety, the guarantee, premium rate, and price election;

(d) Each written agreement will only be valid for one year (If

the written agreement is not specifically renewed the following

year, insurance coverage for subsequent crop years will be in

accordance with the printed policy); and

(e) An application for a written agreement submitted after the

sales closing date may be approved if, after a physical inspection

of the acreage, it is determined that no loss has occurred and the

crop is insurable in accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on April 25, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-11351 Filed 4-30-97; 8:45 am]

BILLING CODE 3410-FA-P