Proposed Rule for Modifying Apple Crop Provisions Published in Federal Register

PROPOSED RULE FOR MODIFYING APPLE CROP PROVISIONS PUBLISHED IN FEDERAL REGISTER

Contact: James Callan (202) 720-8812
Raegan Weber (202) 720-6200

WASHINGTON, Mar 29, 2004 - USDA's Risk Management Agency (RMA) today announced a proposed rule published in the Federal Register, seeking public comment on proposed modifications to the current Apple Crop Provisions. The proposed rule is subject to a 30-day public comment period, ending April 29, 2004.

"RMA recognized changes in the apple industry and worked closely with the U.S. Apple representatives to propose changes that will provide better coverage for apple producers," said RMA Administrator Ross J. Davidson, Jr. "These modifications will simplify and add further certainty to the apple crop insurance program. RMA appreciated the assistance of apple producers and their representatives in developing the proposed changes and looks forward to public comments."

Highlights in the proposed rule include:

Raising the floor of the insurable grade from U.S. Cider grade to U.S. No. 1 Processing in the basic apple policy. This eliminates the need for the producer to purchase the current Fresh Fruit option A that provides coverage for U.S. No 1 Processing Apples.
Revising Fresh Fruit Option B that provides quality for fresh apples that do not U.S. Fancy or better. The new Optional Coverage for Fresh Fruit Quality Adjustment provides coverage against all perils that could cause apples not to grade U.S. Fancy or better. The current Fresh Fruit Option B only provides coverage against the perils of hail, freeze and wind.
Incorporating "sunburn" as a cause of loss in the Basic Apple Crop Provisions and the new Optional Coverage for Fresh Fruit Quality Adjustment. Apple producers will now be covered in their basic apple insurance policy for sunburn rather than purchasing an option. In addition, sunburn will be an insurable cause of loss under the new Optional Fresh Fruit Quality Adjustment Option.
Requiring producers to designate acreage grown for fresh and processing apples on the acreage report. This modification helps protect against program abuse since the Fresh Fruit Quality Adjustment is only available for Fresh Apples. Apples designated as processing are not covered by this quality adjustment option. By preventing program abuse, RMA can assure that producers who work within the system receive the actuarially sound risk protection they deserve.

Last Modified: 01/22/2007