95-15508. Crop Insurance Requirement  

  • [Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
    [Rules and Regulations]
    [Pages 32899-32900]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-15508]
    
    
    
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    Federal Register / Vol. 60, No. 122 / Monday, June 26, 1995 / Rules 
    and Regulations
    
    [[Page 32899]]
    
    DEPARTMENT OF AGRICULTURE
    
    Commodity Credit Corporation
    
    7 CFR Part 1405
    
    RIN 0560-AD97
    
    
    Crop Insurance Requirement
    
    AGENCY: Commodity Credit Corporation (CCC), USDA.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This rule implements the requirement of the Federal Crop 
    Insurance Reform Act of 1994 that producers obtain at least the 
    catastrophic level of crop insurance for each crop of economic 
    significance in order to be eligible for any price support, production 
    adjustment benefit or payment for CRP acreage under contracts entered 
    into after October 12, 1994.
    
    EFFECTIVE DATE: October 13, 1994.
    
    FOR FURTHER INFORMATION CONTACT: David M. Nix, CFSA, USDA, P.O. Box 
    2415, Washington, DC 20013-2415, (202) 720-9883.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This final rule is issued in conformance with Executive Order 12866 
    and has been determined to be a ``significant regulatory action'' and 
    has been reviewed by the Office of Management and Budget.
    
    Federal Assistance Programs
    
        The titles and numbers of the Federal Assistance Programs, as found 
    in the Catalog of Federal Domestic Assistance, to which this final rule 
    applies are: Commodity Loans and Purchases-10.051; Cotton Production 
    Stabilization-10.052; Feed Grain Production Stabilization-10.055; Wheat 
    Production Stabilization-10.058; Rice Production Program-10.065; Grain 
    Reserve Program-10.067; and Conservation Reserve Program-10.069.
    
    Regulatory Flexibility Act
    
        It has been determined that this rule will not have a significant 
    impact on a substantial number of small entities. In any event the rule 
    simply codifies the eligibility requirement of the Federal Crop 
    Insurance Reform Act of 1994. Therefore, the Regulatory Flexibility Act 
    is not applicable to this final rule.
    
    Environmental Evaluation
    
        It has been determined by an environmental evaluation that this 
    action will have no significant impact on the quality of the human 
    environment. Therefore, neither an environmental assessment nor an 
    Environmental Impact Statement is needed.
    
    Executive Order 12778
    
        This final rule has been reviewed in accordance with Executive 
    Order 12778. To the extent State and local laws are in conflict with 
    this rule, this rule will prevail. The provisions of this rule are 
    retroactive to conform to the Federal Crop Insurance Reform Act of 
    1994. Before any judicial action may be brought concerning the 
    provisions of this rule, administrative review under 7 CFR Part 780 or 
    regulations of the Department of Agriculture National Appeals Division 
    must be exhausted.
    
    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 Part 3015, subpart V, 
    published at 48 FR 29115 (June 24, 1983).
    
    Paperwork Reduction Act
    
        The information collection requirements contained in this rule have 
    been approved by OMB under the Paperwork Reduction Act of 1980 (44 
    U.S.C. 3501-3520) and assigned OMB control numbers 0563-0001, 0563-0003 
    and 0563-0029.
    
    Discussion
    
        The Federal Crop Insurance Reform Act of 1994 amended the Federal 
    Crop Insurance Act to require that producers obtain at least the 
    catastrophic level of crop insurance in order to be eligible for any 
    price support or production adjustment program or the Conservation 
    Reserve Program.
        It has been determined that publication of this rule for notice and 
    comment is impractical, unnecessary and contrary to legislative intent. 
    This rule simply implements the specific mandate of the Federal Crop 
    Insurance Reform Act of 1994 and the agency does not have discretion 
    with respect to its implementation.
    
    List of Subjects in 7 CFR Part 1405
    
        Crop insurance.
        Accordingly, 7 CFR Part 1405 is amended as follows:
    
    PART 1405--LOANS, PURCHASES AND OTHER OPERATIONS
    
        1. The authority citation for part 1405 is revised to read as 
    follows:
    
        Authority: 7 U.S.C. 1506(l), 15 U.S.C. 714b and 714c.
    
        2. Section 1405.6 is added to read as follows:
    
    
    Sec. 1405.6  Crop insurance requirement.
    
        (a) To be eligible for any benefits or payments under 7 CFR parts 
    723, 729, 1413, 1421, 1427, 1435, 1443, 1446, 1464 and payments under 7 
    CFR parts 704 and 1410 for CRP acreage under contracts entered into 
    after October 12, 1994, the producer must obtain at least the 
    catastrophic level of insurance for each crop of economic significance 
    grown on each farm in the county in which the producer has an interest, 
    if insurance is available in the county for the crop.
        (b) Crop of economic significance. The term ``crop of economic 
    significance'' means a crop that has contributed in the previous year, 
    or is expected to contribute in the current crop year, 10 percent or 
    more of the total expected value of all crops grown by the producer. 
    However, notwithstanding the preceding sentence, if the total expected 
    liability under the catastrophic risk protection endorsement is equal 
    to or less than the administrative fee required for the crop, such crop 
    will not be considered a crop of economic significance.
        (c) In addition to the terms defined in this subsection, terms 
    defined in part 719 of this title shall be applicable to this section.
    
        [[Page 32900]] Signed at Washington, DC, on June 19, 1995.
    Bruce R. Weber,
    Acting Executive Vice President, Commodity Credit Corporation.
    [FR Doc. 95-15508 Filed 6-23-95; 8:45 am]
    BILLING CODE 3410-05-P
    
    

Document Information

Effective Date:
10/13/1994
Published:
06/26/1995
Department:
Commodity Credit Corporation
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-15508
Dates:
October 13, 1994.
Pages:
32899-32900 (2 pages)
RINs:
0560-AD97
PDF File:
95-15508.pdf
CFR: (1)
7 CFR 1405.6