[Federal Register Volume 60, Number 92 (Friday, May 12, 1995)]
[Rules and Regulations]
[Pages 25601-25604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11780]
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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. 60, No. 92 / Friday, May 12, 1995 / Rules and
Regulations
[[Page 25601]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AA79
Common Crop Insurance Regulations; Sugarcane Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby
adopts regulations for specific crop provisions to insure sugarcane.
These provisions will supplement the Common Crop Insurance Policy
(Sec. 457.8), which contains standard terms and conditions common to
most crops. The intended effect of this rule is to move specific crop
provisions for insuring sugarcane from the Sugarcane Crop Insurance
Regulations (7 CFR 401.133) to the Common Crop Insurance Policy
(Sec. 457.8) for ease of use by the public and conformance among policy
terms.
EFFECTIVE DATE: May 12, 1995.
FOR FURTHER INFORMATION CONTACT: Diana Moslak, Federal Crop Insurance
Corporation, U.S. Department of Agriculture, Washington, DC 20250.
Telephone (202) 254-8314.
SUPPLEMENTARY INFORMATION: This action has been reviewed under United
States Department of Agriculture (``USDA'') procedures established by
Executive Order 12866 and Departmental Regulation 1512-1. This action
constitutes a review as to the need, currency, clarity, and
effectiveness of these regulations under those procedures. The sunset
review date established for these regulations is February 1, 2000.
This rule has been determined to be ``not significant'' for the
purposes of Executive Order 12866, and therefore, has not been reviewed
by the Office of Management and Budget (``OMB'').
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501, et seq.), the information collection or record keeping
requirements contained in these regulations (7 CFR part 457) have been
previously approved by OMB and assigned OMB No. 0563-0016.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
policies and procedures 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.
This regulation will not have a significant impact on a substantial
number of small entities. This action does not require any additional
reporting burden on the insured farmer and the reinsured company.
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.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
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.
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in subsections
(2)(a) and 2(b)(2) of Executive Order 12778. 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 located at 7 CFR part 400, subpart J or promulgated by the
National Appeals Division must be exhausted before judicial action may
be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
By separate rule, FCIC will amend 7 CFR 401.133 to restrict the
crop years of application to those prior to the crop year for which
this rule will be effective and later remove that section.
On Tuesday, February 21, 1995, FCIC published a proposed rule in
the Federal Register at 60 FR 9629 proposing to revise the Common Crop
Insurance Regulations by adding new provisions for sugarcane crop
insurance.
Following publication of the proposed rule, the public was afforded
30 days to submit written comments, data, and opinions. The comments
received and FCIC responses are as follows:
Comment: One comment received from an insurance association
recommended deleting subsection 3.(b) so that sugarcane production
reporting would include the most recent crop year, the same as other
crops. The ``lag year'' procedure now followed for sugarcane occurs
because production records are not available by the production
reporting date. The comment noted that procedure permits updating the
Actual Production History (APH) records with a ``temporary yield'' when
an insured is unable to complete harvesting the crop or production
records are unavailable from the processor. Using the ``temporary
yield'' for the most recent crop year for sugarcane would eliminate the
need for the ``lag year'' and special procedure for sugarcane in the
1995 Crop Insurance Handbook.
Response: Subsection 3.(b) allows producers to delay reporting
production for one year because the actual production amount for
sugarcane normally is not known until after the production reporting
date for all other crops. The ``Temporary Yield'' procedure is intended
to be a measure used in extreme circumstances, not as a routine event.
Using ``temporary yields'' for reporting sugarcane production would
result in additional paperwork to revise the APH once actual records
are available. Therefore, FCIC finds that the recommendation would
increase rather than reduce paperwork, and is not adopting the comment.
Comment: One comment received from an insurance association
questioned the language and intent of subparagraph 8.(a)(3)(ii). Was it
the intent of the new language to change the date on which insurance
attaches on second year stubble cane in Louisiana? [[Page 25602]] The
current provision states that coverage begins on the later of April 15
or 30 days after harvest after the second crop year of stubble cane.
The proposed policy stated that coverage would begin on the later of
April 15 or 30 days after harvest for the second crop year. If there is
no intent to change this provision, it is recommended that the words
``of stubble cane'' be added to subparagraph 8.(a)(3)(ii).
Response: FCIC agrees with the comment and has amended paragraph
8.(a)(3)(ii) accordingly.
Comment: One comment received from an insurance association
recommended that paragraph 11.(c)(1) be revised to count the appraisal
of sugarcane cut for seed.
Response: FCIC agrees with the comment and has amended paragraph
11.(c)(1) accordingly.
In addition to the changes indicated in the responses to comments,
FCIC has made the following changes:
1. The definition of ``crop year'' has been amended by deleting
references made to the length of the insurance period. This language
duplicated a portion of the provisions contained in section 8
(Insurance Period).
2. Paragraph 10.(a)(2) of the proposed crop provisions indicated
that if notice to cut sugarcane for seed was not given, that an
appraisal equal to the production guarantee would be made. Acreage cut
for seed normally produces the highest yield of any acreage in the
unit. Therefore, FCIC has changed the appraisal amount for such acreage
to the APH yield.
Accordingly, the rule, ``Common Crop Insurance Regulations;
Sugarcane Crop Insurance Provisions'' published at 60 FR 9629 as
revised and as set out below is hereby adopted as a final rule.
List of Subjects in 7 CFR Part 457
Crop insurance; Sugarcane.
Final Rule
Accordingly, pursuant to the authority contained in the Federal
Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), the Federal
Crop Insurance Corporation hereby amends the Common Crop Insurance
Regulations (7 CFR part 457), effective for the 1996 and succeeding
crop years, as follows:
PART 457--[AMENDED]
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l).
2. 7 CFR part 457 is amended by adding Sec. 457.116 to read as
follows:
Sec. 457.116 Sugarcane crop insurance provisions.
The Sugarcane Crop Insurance Provisions for the 1996 and succeeding
crop years are as follows:
UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Sugarcane 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
(a) Crop year--The period within which the insured sugarcane is
normally grown and designated by the calendar year in which the
harvest of sugarcane normally begins in the county.
(b) CFSA--Consolidated Farm Service Agency (previously the
Agricultural Stabilization and Conservation Service).
(c) Good farming practices--The cultural practices generally in
use in the county for the insured 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
Extension Service as compatible with agronomic and weather
conditions in the area.
(d) Harvest--Cutting and removing the mature sugarcane from the
field.
(e) Interplanted--Acreage on which two or more crops are planted
in a manner that does not permit separate agronomic maintenance or
harvest of the insured crop.
(f) 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.
(g) Local market price--The price per pound for raw sugar
offered by buyers in the area in which you normally market the
sugarcane.
(h) Plant cane--The insured crop which grows from seed planted
for the crop year.
(i) Production guarantee--The number of pounds determined by
multiplying the approved yield per acre by the coverage level
percentage you elect.
(j) Stubble cane--The insured crop which grows from the stubble
of sugarcane that was harvested the previous crop year.
(k) Sugarcane--means either plant cane or stubble cane.
(l) Written agreement--Designated terms of this policy may be
altered by written agreement. Each agreement must be applied for by
the insured in writing no later than the sales closing date and is
valid for one year only. If not specifically renewed the following
year, continuous insurance will be in accordance with the printed
policy. All variable terms including, but not limited to, crop
variety, guarantee, premium rate and price election must be
contained in the written agreement. Notwithstanding the sales
closing date restrictions contained herein, in specific instances a
written agreement may be applied for after the sales closing date,
and approved if, after physical inspection of the acreage, it is
determined that the crop has the expectancy of making at least the
guaranteed yield. All applications for written agreements as
submitted by the insured must contain all variable terms of the
contract between the company and the insured that will be in effect
if the written agreement is disapproved.
2. Unit Division
Unless limited by the Special Provisions, a unit as defined in
subsection 1.(tt) of the Basic Provisions (Sec. 457.8), may be
divided into optional units if, for each optional unit you meet all
the conditions of this section or if a written agreement to such
division exists. 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 under
this section. If you do not comply fully with these provisions, we
will combine all optional units which are not in compliance with
these provisions into the basic unit from which they were formed. We
may 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, that portion of the premium paid for the purpose
of electing optional units will be refunded to you pro rata for the
units combined. All optional units must be reflected on the acreage
report for each crop year.
(a) 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.
(b) You must plant the crop in a manner that results in a clear
and discernible break in the planting pattern at the boundaries of
each optional unit.
(c) You must have records of measurement of stored or marketed
production from each optional unit 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 after loss
adjustment under the policy is completed.
(d) Each optional unit must meet one or more of the following
criteria as applicable:
(1) Optional Units by Section, Section Equivalent, or
Consolidated Farm Service Agency (``CFSA'') 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 as the 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 discernible, each optional unit must
be located in a separate [[Page 25603]] farm identified by a single
CFSA 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 CFSA 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 CFSA Farm Serial Number. The irrigated acreage may not
extend beyond the point at which your irrigation system can deliver
the quantity of water needed to produce the yield on which your
guarantee is based and may not continue into non-irrigated acreage
in the same rows or planting pattern. Non-irrigated corners of a
field in which a center-pivot irrigation system exists that do not
qualify as a separate optional unit will be a part of the irrigated
unit; however, other non-irrigated acreage within the unit being
divided may qualify as a separate optional unit provided all
requirements of this section are met.
3. Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities
(a) In addition to the requirements of section 3 (Insurance
Guarantees, Coverage Levels, and Prices for Determining Indemnities)
of the Basic Provisions (Sec. 457.8), you may select only one price
election for all the sugarcane in the county insured under this
policy.
(b) Instead of reporting your sugarcane production for the
previous crop year as required by subsection 3.(c) of the Basic
Provisions (Sec. 457.8), there is a lag period of one year and you
are required to report production from two crop years previously,
e.g., 1994 crop year production must be reported by the required
date for the 1996 crop year.
4. Contract Changes
The contract change date is June 30 preceding the cancellation
date (see the provisions of section 4 (Contract Changes) of the
Basic Provisions (Sec. 457.8)).
5. Cancellation and Termination Dates
In accordance with subsection 2.(f) of the Basic Provisions
(Sec. 457.8), the cancellation and termination dates are September
30.
6. Insured Crop
In accordance with section 8 (Insured Crop) of the Basic
Provisions (Sec. 457.8), the crop insured will be all the sugarcane
in the county for which a premium rate is provided by the actuarial
table:
(a) In which you have a share;
(b) That is grown for processing for sugar or for seed; and
(c) That is not interplanted with another crop, unless a written
agreement allows otherwise.
7. Insurable Acreage
Paragraph 9.(a)(3) of the Basic Provisions (Sec. 457.8) is not
applicable to the Sugarcane Crop Provisions.
8. Insurance Period
(a) In addition to the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8), insurance attaches:
(1) At the time of planting for plant cane unless we agree in
writing to a later date;
(2) On the first day following harvest of the previous crop for
stubble cane except as set out in paragraph 8.(a)(3);
(3) On the later of April 15 or 30 days following harvest of the
previous crop for stubble cane:
(i) Damaged during the previous crop year in all states
(includes Louisiana); and
(ii) In Louisiana, after the second harvest from stubble cane.
(b) In accordance with the provisions of section 11 (Insurance
Period) of the Basic Provisions (Sec. 457.8) the calendar date for
the end of the insurance period is:
(1) January 31 in Louisiana; and
(2) April 30 in all other states.
9. Causes of Loss
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 within the insurance
period:
(a) Adverse weather conditions;
(b) Fire;
(c) Insects, but not damage due to insufficient or improper
application of pest control measures;
(d) Plant disease, but not damage due to insufficient or
improper application of disease control measures;
(e) Wildlife;
(f) Earthquake;
(g) Volcanic eruption; or
(h) Failure of the irrigation water supply, if applicable, due
to an unavoidable cause of loss occurring within the insurance
period.
10. Duties in the Event of Damage or Loss or Cutting the Sugarcane for
Seed
(a) In addition to your duties under section 14 (Duties in the
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), in
the event of damage or loss:
(1) All sugarcane stubble must remain intact for our inspection;
and
(2) You must give us notice at least 15 days before you begin
cutting any sugarcane for seed. Your notice must include the unit
number and the number of acres you intend to harvest as seed. After
we receive such notice we will appraise the sugarcane for its sugar
potential. If you do not give us this notice, the production to
count for such acreage will be your approved yield.
(b) In accordance with the requirements of section 14 (Duties in
the Event of Damage or Loss) of the Basic Provisions (Sec. 457.8),
if you initially discover damage to any insured crop within 15 days
of, or during harvest, you must leave representative samples of the
unharvested crop for our inspection. The representative samples of
the unharvested crop must be at least 10 feet wide and extend the
entire length of each field in the unit. The stubble must not be
destroyed and the required samples must not be harvested until the
earlier of our inspection or 15 days after harvest of the balance of
the unit is completed.
11. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event
you are unable to provide records of production:
(1) For any optional unit, we will combine all optional units
for which acceptable records of production were not provided; or
(2) For any basic unit, we will allocate any commingled
production to such units in proportion to our liability on the
harvested acreage for each unit.
(b) In the event of loss or damage covered by this policy, we
will settle your claim on any unit by:
(1) Multiplying the insured acreage by the production guarantee;
(2) Subtracting from this the total production to count;
(3) Multiplying the remainder by your price election; and
(4) Multiplying this result by your share.
(c) The total production (pounds of sugar) to count 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) Damaged solely by uninsured causes;
(D) For which you fail to provide records of production that are
acceptable to us; or
(E) On which the sugarcane stubble is destroyed within 15 days
after harvest is completed without our consent;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production;
(iv) The difference between the production guarantee and the
appraised production for acreage that has an inadequate stand. An
appraisal for an inadequate stand will be made if the product of the
number of stalks per acre multiplied by two and further multiplied
by the percentage of sugar contained in the Special Provisions for
this purpose does not equal the per-acre production guarantee; and
(v) Potential production on insured acreage harvested for seed
(see paragraph 10.(a)(2));
(vi) Potential production on insured acreage you want to put to
another use or you wish to abandon and no longer care for, if you
and we agree on the appraised amount of production. Upon such
agreement, the insurance period for that acreage will end if 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 insurable acreage. Final
records of sugar [[Page 25604]] production will be used to determine
the amount of production to count. Preliminary mill estimates will
not be used.
(d) Harvested sugarcane may be adjusted for low quality if it is
damaged by one or more freezes occurring within the insurance period
to the extent that it cannot be processed for sugar by the boiling
house operation. The amount of production to count for such
sugarcane will be determined by dividing the dollar value of the
damaged production by the local market price per pound for raw
sugar. The prices used for this adjustment will be determined on the
earlier of the date such quality-adjusted production is sold or the
date of final inspection for the unit.
Done in Washington, DC, on May 3, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-11780 Filed 5-11-95; 8:45 am]
BILLING CODE 3410-08-P
