[Federal Register Volume 64, Number 32 (Thursday, February 18, 1999)]
[Proposed Rules]
[Pages 8015-8018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3890]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Onion Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Onion Crop Insurance Provisions to: Modify stage guarantee
percentages, to have a separate guarantee for transplanted and direct
seeded onions, and to provide for modification of stage guarantee
percentages in the Special Provisions; allow optional units by section
or section equivalent or FSA farm serial number, unless otherwise
provided in the Special Provisions; clarify the replant payment
provisions; clarify the amount of production to count when damaged
production is sold after a previous determination that the crop was 100
percent damaged; limit prevented planting coverage to 45 percent of the
production guarantee for timely planted acreage; and change the
termination date for one county in Oregon and one county in Washington.
The intended effect of this action is to modify the existing policy so
that it is actuarially sound and better meets the needs of insureds.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business April 5, 1999, and will be considered
when the rule is to be made final. Comments on the information
collection requirements must be received on or before April 19, 1999.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131. A copy of each response will be available for
public inspection and copying from 8 a.m. to 4:30 p.m., CDT, Monday
through Friday, except holidays, at the above address.
FOR FURTHER INFORMATION CONTACT: William Klein, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, at the Kansas City, MO, address
listed above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be exempt for the purposes of
Executive Order 12866, and, therefore, has not been reviewed by the
Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
In accordance with section 3507(j) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501), the information collection or recordkeeping
requirements included in the proposed rule have been submitted for
approval to the Office of Management and Budget (OMB). Please send your
written comments to Clearance Officer, OCIO, USDA, room 404-W, 14th
Street and Independence Avenue SW., Washington, DC 20250. A comment to
OMB is best assured of having its full effect if OMB receives it within
30 days of publication of this proposed rule.
We are soliciting comments from the public comment concerning our
proposed information collection and recordkeeping requirements. We need
this outside input to help us:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information has practical utility;
(2) Evaluate the accuracy of our estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond (such as through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of
[[Page 8016]]
information technology, e.g. permitting electronic submission
responses).
The collections of information for this rule revises the Multiple
Peril Crop Insurance Collections of Information 0563-0053 which expires
April 30, 2001.
Title: Multiple Peril Crop Insurance.
Abstract: This rule improves the existing onion policy by;
modifying stage guarantee percentages, providing a separate guarantee
for transplanted and direct seeded onions, allowing modification of
stage guarantee percentages in the Special Provisions, allowing
optional units by section or section equivalent unless otherwise
provided in the Special Provisions, clarifying the provisions on
replant payments and the amount of production to count for damaged
onion production that is sold after a previous determination that the
crop was 100 percent damaged, limiting prevented planting coverage to
45 percent of the production guarantee for timely planted acreage, and
changing the termination date for one county in Oregon and one county
in Washington. The revisions are effective for the 2000 and succeeding
crop years. It is anticipated that there will be more claims filed by
insureds because of the revised unit division option.
Purpose: The purpose of this proposed rule is to modify the
existing crop provisions for clarification, improve the method of
calculating losses, provide additional coverage benefits for insureds,
and make the policy more flexible through Special Provision statements,
so that it better meets the needs of all regions of the country, and to
provide an improved risk management tool for onion producers.
Burden Statement: The information that FCIC collects on the
specified forms will be used in offering crop insurance coverage,
determining program eligibility, establishing a production guarantee or
amount of insurance, calculating losses qualifying for a payment, etc.
FCIC assumes that by allowing optional units to be determined by
section as well as irrigated and non-irrigated and type, the number of
claims submitted by producers may increase the burden hours.
Estimate of Burden: We estimate that it will take insured
producers, a loss adjuster, and an insurance agent an average of .79 of
an hour to provide the information required by the Onion Crop Insurance
Provisions.
Respondents: Insureds, insurance agents, and loss adjusters.
Estimated annual number of respondents: 569.
Estimated annual number of responses per respondent: 2.4.
Estimated annual number of responses: 1,369.
Estimated total annual burden on respondents: The total public
burden for this proposed rule is estimated at 448 hours.
Recordkeeping requirements: FCIC requires records to be kept for
three years, but all records required by FCIC are retained as part of
the normal business practice. Therefore, FCIC is not estimating
additional burden related to recordkeeping.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform 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 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 economic 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, every producer is required to
complete an application and an acreage report. If the crop is damaged
or destroyed, every insured is required to give notice of loss and
provide the necessary information to complete a claim for indemnity.
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. 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 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 12988
This proposed 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 economic impact
on the quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR
part 457) by revising 7 CFR 457.135 Onion Crop Insurance Provisions
effective for the 2000 and succeeding crop years. The principal changes
to the provisions for insuring onions are as follows:
1. Section 1--Revise the definition of ``production guarantee (per
acre)'' to include a first stage guarantee for transplanted onions. The
second stage for direct seeded storage onions is increased from 60
percent to 70 percent. These revised stage percentages reflect a more
appropriate relationship of pre-harvest input costs to harvesting costs
for both direct seeded and transplanted onions.
2. Section 2--Allow optional units by section, section equivalent,
or FSA farm serial number, unless otherwise provided in the Special
Provisions. This provides additional units for producers who generally
raise only one type of onion (typically only yellows), irrigate all
their acreage, and have onion acreage spread throughout large areas.
Such
[[Page 8017]]
producers do not qualify for optional units under the existing policy,
which only allows optional units by type and by irrigated or non-
irrigated. Currently, type is defined in the Special Provisions by
color, i.e.--red, yellow, or white.
3. Section 3--Add a separate first stage for transplanted onion
plants or sets to run from transplanting through the 30th day after
transplanting. Revise the first stage for direct seeded onions to
continue until emergence of the fourth leaf instead of the third leaf.
These time frames will allow sufficient time for the onions to become
established before a higher guarantee applies. The language for the
second stage for transplanted onions is revised to have a single
standard for all onions. Based on this standard, the second stage for
transplanted onions extends from the 31st day after transplanting until
the acreage has been subjected to topping and lifting or digging. These
changes were necessary because of the different risks at different
times for direct seeded and transplanted onions.
4. Section 5--Change the termination date for one county in Oregon
and one county in Washington to allow for a 60 day period between the
billing and termination date. Currently these counties have only a 30
day period between billing and termination dates. This is too short a
period of time.
5. Section 11--Add provisions to clarify that the amount of the
replanting payment per acre will be the producer's actual cost of
replanting not to exceed the lesser of 7 percent of the final stage
production guarantee or 18 hundredweight multiplied by the producer's
price election for the type originally planted and by the insured
share. This consolidates all three criteria from the Basic Provisions
and Crop Provisions needed to make a determination on the amount of a
replanting payment in one section in the crop provisions. This will
reduce confusion about the maximum amount of replanting payment.
6. Section 13--Add provisions to clarify that when damage to onion
production exceeds the percentage shown in the Special Provisions but
the production from that unit is sold, the quantity sold will be
included as production to count on a pound-for-pound basis regardless
of the quality.
7. Section 14--Removed the provision that allowed for additional
prevented planting coverage levels. The provision had allowed producers
who selected limited or additional levels of coverage, in accordance
with the Special Provisions, and paid an additional premium, to obtain
prevented planting coverage of 50 or 55 percent.
Prevented planting coverage is designed to reimburse producers for
the costs incurred during the pre-plant period if the intended crop
cannot be planted. This amount is intended to cover the total fixed
cash expenses plus the variable cash costs normally associated with
completing all field operations prior to planting onions. The prevented
planting coverage level for onions is lower than other major crops
because, although pre-planting costs per acre are comparable to other
crops, such as corn, the average insurance guarantee per acre is much
higher. Therefore, FCIC considers a prevented planting coverage level
of 45 percent to be appropriate for onions and proposes that additional
prevented planting coverage levels not be made available.
Premium rates for onions will continue to reflect Multiple Peril
Crop Insurance experience for onions, and FCIC will consider any
additional risk that may result from incorporation of changes to policy
provisions contained in this proposed rule.
List of Subjects in 7 CFR Part 457
Crop insurance, Onion.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend the onion crop insurance
provisions contained in 7 CFR part 457 as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1998 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 457.135 is amended by revising the language in the onion
crop insurance provisions as follows:
Sec. 457.135 Onion Crop Insurance Provisions [Amended]
a. Section 1 is amended to add definitions for ``direct seeded''
and ``transplanted'' and to revise the definition of ``production
guarantee (per acre)'' as follows:
1. Definitions.
* * * * *
Direct seeded--Placing onion seed by machine or by hand at the
correct depth, into a seedbed that has been properly prepared for
the planting method and production practice.
* * * * *
Production Guarantee (per acre):
(a) First stage production guarantee--Thirty-five percent (35%)
of the final stage production guarantee for direct seeded storage
and non-storage onions and 45 percent of the final stage production
guarantee for transplanted storage and non-storage onions, unless
otherwise specified in the Special Provisions.
(b) Second stage production guarantee--Seventy percent (70%) of
the final stage production guarantee for direct seeded storage
onions and 60 percent of the final stage production guarantee for
transplanted storage onions and all non-storage onions, unless
otherwise specified in the Special Provisions.
* * * * *
Transplanted--Placing of the onion plant or bulb by machine or
by hand at the correct depth, into a seedbed that has been properly
prepared for the planting method and production practice.
* * * * *
b. Section 2 is revised to read as follows:
2. Unit Division.
In addition to, or instead of, establishing optional units as
provided in section 34 of the Basic Provisions, optional units may
be established by type, if the type is designated in the Special
Provisions.
* * * * *
c. Sections 3(b) (1) and (2) are revised to read as follows:
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
* * * * *
(b) * * *
(1) First stage extends:
(i) For direct seeded storage and non-storage onions, from
planting until the emergence of the fourth leaf; and
(ii) For transplanted storage and non-storage onions, from
transplanting of onion plants or sets through the 30th day after
transplanting.
(2) The second stage extends, for all onions, from the end of
the first stage until the acreage has been subjected to topping and
lifting or digging.
* * * * *
d. Section 5 is revised to read as follows:
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
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State and county Cancellation date Termination date
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All Georgia Counties; August 31........... August 31.
Kinney, Uvalde, Medina,
Bexar, Wilson, Karnes, Bee,
and San Patrico Counties,
Texas, and all Texas
Counties lying south
thereof.
[[Page 8018]]
Umatilla County, Oregon; and August 31........... September 30.
Walla Walla County,
Washington.
All other states and February 1.......... February 1.
counties.
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* * * * *
e. Section 11(b) is revised to read as follows:
11. Replanting Payment.
* * * * *
(b) The maximum amount of the replanting payment per acre will
be your actual cost for replanting, but will not exceed the lesser
of:
(1) 7 percent of the final stage production guarantee multiplied
by your price election for the type originally planted and by your
insured share; or
(2) 18 hundredweight multiplied by your price election for the
type originally planted and by your insured share.
* * * * *
f. Section 13(d) is revised to read as follows:
13. Settlement of Claim.
* * * * *
(d) If the damage to harvested or unharvested onion production
exceeds the percentage shown in the Special Provisions for the type,
no production will be counted for that unit or portion of a unit
unless such damaged onion production from that acreage is sold. If
sold, the damaged production will be counted on a pound-for-pound
basis regardless of the quality.
* * * * *
g. Section 14 is revised to read as follows:
14. Prevented planting.
Your prevented planting coverage will be 45 percent of your
production guarantee for timely planted acreage. Additional
prevented planting coverage levels are not available for onions.
Signed in Washington, D.C., on February 10, 1999.
Robert Prchal,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-3890 Filed 2-17-99; 8:45 am]
BILLING CODE 3410-08-P
