[Federal Register Volume 64, Number 244 (Tuesday, December 21, 1999)]
[Rules and Regulations]
[Pages 71270-71271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32955]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Potato Crop Insurance
Certified Seed Endorsement
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
specific provisions that amend the Potato Crop Insurance Certified Seed
Endorsement. The intended effect of this action is to improve the
insurance coverage to better meet the needs of the insured. The changes
will be effective for the 2001 and subsequent crop years.
EFFECTIVE DATE: This rule is effective January 20, 2000.
FOR FURTHER INFORMATION CONTACT: Rob Coultis, 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 12866
This rule has been determined to be exempt for the purposes of
Executive Order No. 12866 and, therefore, has not been reviewed by the
Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
Under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35), the collections of information for this rule have
been previously approved by the OMB under control number 0563-0053
through April 30, 2001. The amendments set forth in this rule do not
revise the content or alter the frequency of reporting for any of the
forms or information collections cleared under the above-referenced
docket.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA),
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) for State, local, and
tribal governments or the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
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. 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. 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 12372
This program is not subject to the provisions of Executive Order
12372 which requires intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR
[[Page 71271]]
part 3015, subpart V, published at 48 FR 29115, June 24, 1983.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988 on civil justice reform. The provisions of this rule will not
have a retroactive effect. 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 against FCIC 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 duplicate
regulations and improve those that remain in force.
Background
On Friday, July 30, 1999, FCIC published a notice of proposed
rulemaking in the Federal Register at 64 FR 41336-41338 to amend the
Common Crop Insurance Regulations (7 CFR part 457) by revising 7 CFR
457.145, Potato Crop Insurance Certified Seed Endorsement, effective
for the 2000 and succeeding crop years.
Following publication of the proposed rule on July 30, 1999, the
public was afforded 60 days to submit written comments and opinions. No
comments were submitted.
FCIC has made the following changes to the provisions contained in
the proposed rule:
1. Section 8--Corrected section reference numbers in loss
calculation steps. References should have been to section 8 rather than
section 9.
2. Section 9--Clarified that provisions did not extend the period
for which insurance was available.
The notice of proposed rulemaking indicated the amendments would be
effective for the 2000 crop year. However, after publication of the
proposed rule, FCIC determined there was an insufficient amount of time
to implement the changes for the 2000 crop year. Therefore, the
amendments will be effective for the 2001 and subsequent crop years.
List of Subjects in 7 CFR Part 457
Crop insurance, certified seed potatoes.
Final Rule
For the reasons stated in the preamble, the Federal Crop Insurance
Corporation amends 7 CFR part 457, effective for the 2001 and
succeeding crop years, as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(p)
2. Amend Sec. 457.145 as follows:
a. Revise the introductory text;
b. Revise sections 5, 8 and 9 of the endorsement; and
c. Add new sections 10 and 11 to the endorsement to read as
follows:
Sec. 457.145 Potato crop insurance--certified seed endorsement.
The potato Certified Seed Endorsement provisions for the 2001 and
succeeding crop years are as follows:
* * * * *
5. Your certified seed production guarantee per-acre will be the
per-acre production guarantee used to cover the same acreage under the
terms of the Northern Potato Crop Provisions. However, unless a written
agreement provides otherwise, if the total amount of insurable
certified seed acreage you have for the current crop year is greater
than 125 percent of your average number of acres entered into and
passing certification in the potato certified seed program in the three
previous calendar years, your certified seed production guarantee for
each unit will be reduced as follows:
* * * * *
8. If, due to insurable causes occurring within the insurance
period, the amount of certified seed you produce is less than your
certified seed production guarantee, we will settle your claim by:
(a) Multiplying the insured acreage by its respective certified
seed production guarantee;
(b) Multiplying each result in section 8(a) by the dollar amount
per hundredweight contained in the Special Provisions for production
covered under this endorsement;
(c) Totaling the results of section 8(b);
(d) Multiplying the number of hundredweight of production that
qualify as certified seed and any amount of production lost due to
uninsured causes, or that does not qualify as certified seed due to
uninsured causes, by the dollar amount per hundredweight contained in
the Special Provisions for production covered under this endorsement;
(e) Subtracting the result of section 8(d) from the result of
section 8(c); and
(f) Multiplying the result of section 8(e) by your share.
9. You must notify us of any loss under this endorsement not later
than 14 days after you receive notice from the state certification
agency that any acreage or production has failed certification. Nothing
herein extends the insurance period beyond the time period specified in
section 8 of the Northern Potato Crop Provisions and section 11 of the
Basic Provisions.
10. Acreage covered under the terms of this endorsement will have
the same unit structure as provided under the Basic Provisions and the
Northern Potato Crop Provisions. For example, if you have two optional
units (00101 and 00102) under your Northern Potato Crop Insurance
Policy and you elect this endorsement, you will also have two optional
units (00201 and 00202) for certified seed coverage, provided that
certified seed is grown in both units 00101 and 00102. Or, if you have
two basic units (00100 and 00200) under your Northern Potato Crop
Insurance Policy and you elect this endorsement, you will also have two
basic units (00300 and 00400) for certified seed coverage, provided
that certified seed is grown in both units 00100 and 00200. In the
event certified seed acreage is not grown in the same optional or basic
units as acreage covered under the Basic Provisions and the Northern
Potato Crop Provisions, certified seed units will be established in
accordance with the unit division provisions contained in the Basic
Provisions and the Northern Potato Crop Provisions. For example, if a
basic unit is divided into two optional units for potato acreage
covered under the Basic Provisions and the Northern Potato Crop
Provisions, but certified seed is grown in only one of those optional
units, the certified seed acreage will be insured as one basic unit.
11. Any production that does not qualify as certified seed because
of varietal mixing or your failure to follow the standard practices and
procedures required for certification will be considered as lost due to
uninsured causes.
Signed in Washington, D.C., on December 15, 1999.
Robert J. Prchal
Deputy Administrator, Insurance Services, Federal Crop Insurance
Corporation.
[FR Doc. 99-32955 Filed 12-20-99; 8:45 am]
BILLING CODE 3410-08-P
