[Federal Register Volume 64, Number 120 (Wednesday, June 23, 1999)]
[Notices]
[Pages 33456-33457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15922]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 64, No. 120 / Wednesday, June 23, 1999 /
Notices
[[Page 33456]]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Crop Revenue Coverage
ACTION: Notice of availability.
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SUMMARY: In accordance with section 508(h) of the Federal Crop
Insurance Act (Act), the Federal Crop Insurance Corporation (FCIC)
Board of Directors (Board) approved for reinsurance and subsidy the
insurance of wheat in select states and counties under the Crop Revenue
Coverage (CRC) plan of insurance submitted by American Agrisurance
(AmAg). This notice is intended to inform eligible producers and the
private insurance industry of the coverage changes for durum wheat
under CRC, for the 2000 crop year.
FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product
Development Division, Federal Crop Insurance Corporation, United States
Department of Agriculture, 9435 Holmes Road, Kansas City, Missouri
64131, telephone (816) 926-7387.
SUPPLEMENTARY INFORMATION: Section 508(h) of the Act allows the
submission of a policy to FCIC's Board and authorizes the Board to
review and, if the Board finds that the interests of producers are
adequately protected and any premiums charged to the producers are
actuarially appropriate, approve the policy for reinsurance and subsidy
in accordance with section 508(e) of the Act.
In accordance with section 508(h) of the Act, the Board approved a
program of insurance known as CRC, originally submitted by AmAg, a
managing general agency for Redland Insurance Company. All terms and
conditions of the policy and all premium rates are determined by AmAg.
FCIC does not have the authority to modify or waive any terms or
conditions. FCIC only has the authority to approve or disapprove the
terms and conditions submitted by AmAg.
The CRC program has been approved for reinsurance and premium
subsidy, including subsidy for administrative and operating expenses.
CRC is designed to protect producers against both price and yield
losses.
Beginning with the 1999 crop year, producers could select 95 or 100
percent of the average daily settlement price and a separate price for
durum wheat.
AmAg has requested the following changes for durum wheat for the
2000 crop year: (1) To only offer producers 100 percent of the average
daily settlement price rather than a choice of 95 or 100 percent; (2)
to cap the durum base price basis premium to $1.00 for Arizona and
California; and (3) to remove the northern durum Base Price and Harvest
Price from the Commodity Exchange Endorsement pending further review
and evaluation by the company.
FCIC herewith gives notice that this Commodity Exchange Endorsement
for wheat replaces the Commodity Exchange Endorsement published in the
Federal Register at 63 FR 37845-37847 for CRC wheat for use by private
insurance companies.
The CRC Commodity Exchange Endorsement and underwriting rules for
wheat will be released electronically to all reinsured companies
through FCIC's Reporting Organization Server.
Notice
The Commodity Exchange Endorsement for the 2000 CRC winter wheat
program of insurance is as follows.
Crop Revenue Coverage
Commodity Exchange Endorsement
CROP REVENUE COVERAGE
Mandatory Actuarial Document Endorsement
COMMODITY EXCHANGE ENDORSEMENT--WHEAT
(This is a Continuous Endorsement)
If a conflict exists among the policy provisions, the order of
priority is as follows: (1) The Special Provisions; (2) this
Commodity Exchange Endorsement; (3) the Crop Provisions; and (4) the
Basic Provisions, with (1) controlling (2), etc.
How this endorsement affects your coverage:
(I) This endorsement is attached to and made a part of your Crop
Revenue Coverage (CRC) Wheat crop policy provisions and actuarial
documents, subject to the terms and conditions described herein.
(II) This endorsement specifies how, where, and when commodity
prices for your CRC Wheat policy are determined.
(III) In lieu of section 4(c) of the Basic Provisions, you may
only select 100 percent of Base Price and Harvest Price.
(IV) This endorsement defines the Average Daily Settlement
Price, as used in the Base Price and Harvest Price, as--The average
calculated by totaling all the daily settlement prices for the
contract specified in the applicable Base Price or Harvest Price
definition (established on full active trading days), during the
month specified in the applicable Base Price or Harvest Price
definition, and dividing that sum by the total number of days
included in the total. The average must include at least fifteen
(15) days and each day included in the average must be a full active
trading day for the contract specified in the applicable Base Price
or Harvest Price definition. A full active trading day is any day on
which there are fifty (50) or more open interest contracts of the
contract specified in the Base Price or Harvest Price definition. If
there are less than fifteen (15) full active trading days for the
contract specified in the applicable Base Price or Harvest Price
definition, during the month specified in the applicable Base Price
or Harvest Price definition, then additional daily settlement
prices, established on full active trading days, for the contract
immediately prior to the contract specified in the applicable Base
Price or Harvest Price definition, during the month specified in the
applicable Base Price or Harvest Price definition, will be used
until there are fifteen (15) prices from fifteen (15) full active
trading days included in the average.
(V) This endorsement defines the Base Price and Harvest Price as
shown in Section 1 of the Crop Revenue Coverage Basic Provisions by
wheat type and state as follows:
Winter Wheat--(Insured as Winter Wheat), Chicago Board of Trade
(CBOT)
Illinois, Indiana, Michigan, Ohio, and Wisconsin
Base Price (CBOT)--The August 15 to September 14 pre-harvest
year's average daily settlement price for the harvest year's CBOT
July soft red winter wheat futures contract rounded to the nearest
whole cent. The Base Price will be released as an actuarial document
addendum by September 20 of the pre-harvest year.
Harvest Price (CBOT)--The July 15 to August 14 harvest year's
average daily settlement price for the harvest year's CBOT September
soft red winter wheat futures contract rounded to the nearest whole
cent. The Harvest Price cannot be less than the Base Price minus two
dollars ($2.00), or greater than the Base Price plus two dollars
($2.00). The Harvest Price will be released as an actuarial document
addendum by August 20 of the harvest year.
[[Page 33457]]
Winter Wheat--(Insured as Winter Wheat), (CBOT)
Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina,
South Carolina, Tennessee, and Virginia
Base Price (CBOT)--The August 15 to September 14 pre-harvest
year's average daily settlement price for the harvest year's CBOT
July soft red winter wheat futures contract rounded to the nearest
whole cent. The Base Price will be released as an actuarial document
addendum by September 20 of the pre-harvest year.
Harvest Price (CBOT)--The June harvest year's average daily
settlement price for the harvest year's CBOT July soft red winter
wheat futures contract rounded to the nearest whole cent. The
Harvest Price cannot be less than the Base Price minus two dollars
($2.00), or greater than the Base Price plus two dollars ($2.00).
The Harvest Price will be released as an actuarial document addendum
by July 10 of the harvest year.
Winter Wheat--(Insured as Winter Wheat), Kansas City Board of Trade
(KCBOT)
Iowa, Montana, Nebraska, South Dakota, and Wyoming
Base Price (KCBOT)--The August 15 to September 14 pre-harvest
year's average daily settlement price for the harvest year's KCBOT
July hard red winter wheat futures contract rounded to the nearest
whole cent. The Base Price will be released as an actuarial document
addendum by September 20 of the pre-harvest year.
Harvest Price (KCBOT)--The July 15 to August 14 harvest year's
average daily settlement price for the harvest year's KCBOT
September hard red winter wheat futures contract rounded to the
nearest whole cent. The Harvest Price cannot be less than the Base
Price minus two dollars ($2.00), or greater than the Base Price plus
two dollars ($2.00). The Harvest Price will be released as an
actuarial document addendum by August 20 of the harvest year.
Winter Wheat--(Insured as Winter Wheat), (KCBOT)
Arizona, Arkansas, Colorado, Kansas, Missouri, New Mexico, Oklahoma,
and Texas
Base Price (KCBOT)--The August 15 to September 14 pre-harvest
year's average daily settlement price for the harvest year's KCBOT
July hard red winter wheat futures contract rounded to the nearest
whole cent. The Base Price will be released as an actuarial document
addendum by September 20 of the pre-harvest year.
Harvest Price (KCBOT)--The June harvest year's average daily
settlement price for the harvest year's KCBOT July hard red winter
wheat futures contract rounded to the nearest whole cent. The
Harvest Price cannot be less than the Base Price minus two dollars
($2.00), or greater than the Base Price plus two dollars ($2.00).
The Harvest Price will be released as an actuarial document addendum
by July 10 of the harvest year.
Spring Wheat--(Insured as Spring Wheat in counties with a 3/15
Cancellation Date), Minneapolis Grain Exchange (MGE)
Colorado, Iowa, Minnesota, Montana, North Dakota, South Dakota,
Wisconsin, and Wyoming
Base Price (MGE)--The February harvest year's average daily
settlement price for the harvest year's MGE September hard red
spring wheat futures contract rounded to the nearest whole cent. The
Base Price will be released as an actuarial document addendum by
March 10 of the harvest year.
Harvest Price (MGE)--The August harvest year's average daily
settlement price for the harvest year's MGE September hard red
spring wheat futures contract rounded to the nearest whole cent. The
Harvest Price cannot be less than the Base Price minus two dollars
($2.00), or greater than the Base Price plus two dollars ($2.00).
The Harvest Price will be released as an actuarial document addendum
by September 10 of the harvest year.
Spring Wheat--(Insured as spring wheat in counties with a 9/30
cancellation date), (KCBOT/MGE)
Colorado, Iowa, Montana, South Dakota and Wyoming
Base Price (KCBOT)--The August 15 to September 14 pre-harvest
year's average daily settlement price for the harvest year's KCBOT
July hard red winter wheat futures contract rounded to the nearest
whole cent. The Base Price will be released as an actuarial document
addendum by September 20 of the pre-harvest year.
Harvest Price (MGE)--The August harvest year's average daily
settlement price for the harvest year's MGE September hard red
spring wheat futures contract rounded to the nearest whole cent. The
Harvest Price cannot be less than the Base Price minus two dollars
($2.00), or greater than the Base Price plus two dollars ($2.00).
The Harvest Price will be released as an actuarial document addendum
by September 10 of the harvest year.
Wheat--Portland Grain Exchange (PGE)
California, Idaho, Oregon, Utah, and Washington
Base Price (PGE)--The Portland Price equals the August 15 to
September 14 pre-harvest year's average daily settlement price for
the harvest year's CBOT September soft red winter wheat futures
contract (rounded to the nearest whole cent) plus an adjustment
equal to the current five-year average difference between the August
average daily settlement price for the nearby CBOT September soft
red winter wheat futures contract (rounded to the nearest whole
cent) and the August average daily settlement price for the PGE soft
white wheat contract (rounded to the nearest whole cent). The Base
Price will be released as an actuarial document addendum by
September 20 of the pre-harvest year.
Harvest Price (PGE)--The August harvest year's average daily
settlement price for the PGE soft white wheat contract rounded to
the nearest whole cent. The Harvest Price cannot be less than the
Base Price minus two dollars ($2.00), or greater than the Base Price
plus two dollars ($2.00). The Harvest Price will be released as an
actuarial document addendum by September 10 of the harvest year.
Durum Wheat--(Insured as durum wheat in counties with a 10/31
cancellation date), (MGE)
Arizona and California
Base Price (MGE)--The Southern Durum Price equals the September
15 to October 14 pre-harvest year's average daily settlement price
for the harvest year's CBOT September soft red winter wheat futures
contract (rounded to the nearest whole cent) plus an adjustment
equal to the average of the current year nearby basis, determined
during the months of May, June, July and August of the current crop
year, and the current five-year average difference between the
August average daily settlement price for top milling durum wheat as
reported by the MGE (rounded to the nearest whole cent) and the
August average daily settlement price for the nearby CBOT September
soft red winter wheat futures contract (rounded to the nearest whole
cent) not to exceed $1.00. During the months of May and June the
nearby futures contract used to determine the current year nearby
basis for top milling durum wheat will be the July contract. During
the months of July and August the nearby futures contract used to
determine the current year nearby basis for top milling durum wheat
will be the September contract. The Base Price will be released as
an actuarial document addendum by October 20 of the pre-harvest
year.
Harvest Price (MGE)--The August harvest year's average daily
settlement price for top milling durum wheat as reported by the MGE
rounded to the nearest whole cent. The Harvest Price cannot be less
than the Base Price minus two dollars ($2.00), or greater than the
Base Price plus two dollars ($2.00). The Harvest Price will be
released as an actuarial document addendum by September 10 of the
harvest year.
All other terms and conditions of the Policy remain unchanged.
Signed in Washington, DC, on June 16, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-15922 Filed 6-22-99; 8:45 am]
BILLING CODE 3410-08-P
