[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Rules and Regulations]
[Pages 7133-7135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3847]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 /
Rules and Regulations
[[Page 7133]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AB53
Common Crop Insurance Regulations; Cotton 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 cotton. The intended
effect of this action is to provide policy changes to better meet the
needs of the insured.
EFFECTIVE DATES: March 20, 1997.
FOR FURTHER INFORMATION CONTACT: Stephen Hoy, Program Analyst, Research
and Development Division, Product Development Branch, Federal Crop
Insurance Corporation, at 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
The information collection requirements contained in these
regulations were previously approved by OMB pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number
0563-0003 at the proposed final rule stage.
The amendments set forth in this final rule contains information
collections that have been cleared by OMB under the provisions of 44
U.S.C. chapter 35.
Following publication of the proposed rule, the public was afforded
60 days to submit written comments 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 of 1995 (UMRA), Public 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) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of section 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 or receive an assigned yield. The producer must maintain the
production records to support the certified information for at least 3
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. 12778
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in sections 2(a) and
2(b)(2) of Executive Order No. 12778. 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
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 Tuesday, September 3, 1996, FCIC published a proposed rule in
the Federal Register at FR 46401-46403 to amend the Common Crop
Insurance Regulations (7 CFR part 457) by revising 7 CFR 457.104
effective for the 1997 and succeeding crop years.
[[Page 7134]]
Following publication of that proposed rule, the public was
afforded 30 days to submit written comments, data, and opinions. One
comment was received from the crop insurance industry. The comment
received and FCIC's response are as follows:
Comment: One comment recommended that written agreements should be
continuous and the valid period be stated in the wording of the
agreement.
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 policy or Special
Provisions should be amended to reflect this condition. No change has
been made to these provisions.
FCIC has made the following changes to the Cotton Provisions:
Section 2(d)(2)--Corrected the provisions regarding center pivot
irrigation systems. Language in the proposed rule stated ``* * * that
the corners of a field in which a center-pivot irrigation system is
used will be considered as irrigated acreage unless separate acceptable
records of production from the corners are provided indicating
otherwise.'' This provision should have read ``* * * that the corners
of a field in which a center-pivot irrigation system is used will be
considered as irrigated acreage if separate acceptable records of
production from the corners are not provided.'' This clarification
makes the wording consistent with other crop provisions.
The contract change date for the 1997 crop year was November 30,
1996. It is, therefore, too late to make this rule effective for the
1997 crop year. The rule will be effective for the 1998 crop year.
List of Subjects in 7 CFR Part 457
Crop insurance, Cotton.
Final Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation hereby amends 7 CFR part 457, effective for the
1998 and succeeding crop years, as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1994 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(p).
2. Section 457.104, paragraph 1. Definitions (l), (q)(2) and (s)
are revised to read as follows:
Sec. 457.104 Cotton crop insurance provisions.
* * * * *
1. Definitions.
* * * * *
(l) Planted acreage--Land in which seed has been placed by a
machine appropriate for the insured crop and planting method, at the
correct depth, into a seedbed which has been properly prepared for
the planting method and production practice. Cotton must be planted
in rows to be considered planted. Planting in any other manner will
be considered as a failure to follow recognized good farming
practices and any loss of production will not be insured unless
otherwise provided by the Special Provisions or by written agreement
to insure such crop. The yield conversion factor normally applied to
non-irrigated skip-row cotton acreage will not be used if the land
between the rows of cotton is planted to any other spring planted
crop.
* * * * *
(q) * * *
(l) * * *
(2) Qualifies as a skip-row planting pattern as defined by the
Farm Service Agency (FSA) or a successor agency.
* * * * *
(s) Written agreement--A written document that alters designated
terms of a policy in accordance with section 13.
* * * * *
2. Section 457.104 in paragraph 2. Unit Division (d)(1) and the
first paragraph in (d)(2) are revised to read as follows:
2. Unit Division.
* * * * *
(d) * * *
(1) Optional Units by Section, Section Equivalent, or FSA Farm
Serial Number:
Optional units may be established 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 an equivalent of Sections for unit purposes. In areas which
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.
(2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices:
In addition to, or instead of, establishing optional units by
section, section equivalent, or FSA Farm Serial Number, optional
units may be based on irrigated acreage or non-irrigated acreage if
both are located in the same section, section equivalent, or FSA
Farm Serial Number. To qualify as separate irrigated and non-
irrigated optional units, the non-irrigated acreage may not continue
into the irrigated acreage in the same rows or planting pattern. The
irrigated acreage may not extend beyond the point at which the
irrigation system can deliver the quantity of water needed to
produce the yield on which the guarantee is based, except that the
corners of a field in which a center-pivot irrigation system is used
will be considered as irrigated acreage if separate acceptable
records of production from the corners are not provided. If the
corners of a field in which a center-pivot irrigation system is used
do not qualify as a separate non-irrigated optional unit, they will
be considered part of the unit containing the irrigated acreage.
However, non-irrigated acreage that is not a part of a field in
which a center-pivot irrigation system is used may qualify as a
separate optional unit provided that all other requirements of this
section are met.
* * * * *
3. Section 457.104 paragraph 5. Cancellation and Terminations
Dates, is revised to read as follows:
5. Cancellation and Termination Dates.
In accordance with section 2 (Life of Policy, Cancellation, and
Termination) of the Common Crop Insurance Policy (Sec. 457.8), the
cancellation and termination dates are:
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Cancellation and
State and county termination dates
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Val Verde, Edwards, Kerr, Kendall, Bexar, January 15.
Wilson, Karnes, Goliad, Victoria, and Jackson
Counties, Texas, and all Texas counties lying
south thereof.
Alabama; Arizona; Arkansas; California; February 28.
Florida; Georgia; Louisiana; Mississippi;
Nevada; North Carolina; South Carolina; El
Paso, Hudspeth, Culberson, Reeves, Loving,
Winkler, Ector, Upton, Reagon, Sterling,
Coke, Tom Green, Concho, McCulloch, San Saba,
Mills, Hamilton, Bosque, Johnson, Tarrant,
Wise, and Cooke Counties, Texas, and all
Texas counties lying south and east thereof
to and including Terrell, Crocket, Sutton,
Kimble, Gillespie, Blanco, Comal, Guadalupe,
Gonzales, De Witt, Lavaca, Colorado, Wharton,
Matagorda Counties, Texas..
All other Texas counties and all other States. March 15.
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[[Page 7135]]
* * * * *
4. Section 457.104 is amended by adding a new paragraph 13. to
read as follows:
13. Written Agreement.
Designated terms of this policy may be altered by written
agreement. The following conditions will apply:
(a) You must apply in writing for each written agreement no
later than the sales closing date, except as provided in section
13(e).
(b) The application for written agreement must contain all terms
of the contract between the insurance provider and the insured that
will be in effect if the written agreement is not approved.
(c) If approved, the written agreement must 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.
(e) An application for 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 DC, on February 6, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-3847 Filed 2-14-97; 8:45 am]
BILLING CODE 3410-FA-P
