[Federal Register Volume 60, Number 133 (Wednesday, July 12, 1995)]
[Rules and Regulations]
[Pages 35832-35834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16583]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AB27
Common Crop Insurance Regulations; Various Crop Provisions
AGENCY: Federal Crop Insurance Corporation.
ACTION: Interim rule.
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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby
amends the Common Crop Insurance Regulations, applicable for the 1995
crop year only, by revising the prevented planting coverage for the
Small Grains, Coarse Grains, Cotton, and Extra Long Staple Cotton Crop
Provisions. The intended effect of this regulation is to allow an
insured to collect both a guaranteed deficiency payment under the so-
called 50/92 and 0/92 provisions of the wheat, feed grains, cotton and
rice programs administered by the United States
[[Page 35833]]
Department of Agriculture (``USDA'') under the authority of the
Agricultural Act of 1949, as amended, and a prevented planting
indemnity under the crop insurance program.
DATES: This rule is effective January 1, 1995. Written comments, data,
and opinions on this rule will be accepted until close of business
September 11, 1995, and will be considered when the rule is to be made
final.
ADDRESSES: Written comments, data, and opinion on this interim rule
should be sent to Diana Moslak, Regulatory and Procedural Development
Staff, Federal Crop Insurance Corporation, USDA, Washington, DC 20250.
Hand or messenger delivery may be made to 2101 L Street NW., Suite 500,
Washington, DC. Written comments will be available for public
inspection and copying in the Office of the Manager, 2101 L Street NW.,
5th Floor, Washington, DC, during regular business hours, Monday
through Friday.
FOR FURTHER INFORMATION CONTACT:
For further information and a copy of the Cost-Benefit Analysis to the
Common Crop Insurance prevented planting provision, contact Diana
Moslak, Regulatory and Procedural Development Staff, 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 small grains is July 1, 1998 and for coarse
grains, cotton and Extra Long Staple cotton is March 1, 1999.
This rule has been determined to be ``significant'' for purposes of
Executive Order 12866, and therefore, has been reviewed by the Office
of Management and Budget (``OMB'').
A Cost-Benefit Analysis has been completed and is available to
interested persons at the address listed above. In summary, the
analysis finds that this action will alleviate an inequity of the crop
insurance rules that affect farmers who are unable to plant compared to
farmers who are able to plant. The prevented planting rules promulgated
in 1993 did not authorize a prevented planting guarantee on any acreage
``considered to have been left unplanted'' under other programs of the
U.S. Department of Agriculture. The intent was to avoid double payments
for the same loss so that the programs were less intrusive on economic
incentives to plant. However, it has been determined that these
payments are not for a loss of production, but rather are an income
supplement. Producers who plant a crop that subsequently fails are
entitled to a full indemnity from crop insurance in addition to the
supplemental payments under the deficiency payment programs. Thus,
removing the restriction on land ``considered to have been left
unplanted'' places these producers on the same basis as those who
plant.
The change in rules is not expected to have significant costs in
most crop years since relatively small acreages normally cannot be
planted. The cost will be greater in 1995, primarily to pay prevented
planting payments to producers insured at the catastrophic level of
protection who could have been expected to take the 0/92 payment in
lieu of a prevented planting guarantee. These relatively small payments
per acre are estimated to be made on 1.2 million acres and total $31.5
million. It has been determined that this will not have an adverse
actuarial affect on the Federal Crop Insurance Program.
The information collection requirements contained in these
regulations (7 CFR part 457) were previously approved by OMB pursuant
to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.), under
OMB control numbers 0563-0001, 0563-0003, 0563-0014, 0563-0023, 0563-
0025, 0563-0029, 0563-0032, and 0563-0036. The amendments set forth in
this rule do not revise the content or alter the frequency of reporting
for any of the forms cleared under the above-referenced dockets. Public
reporting burden for the collection of information is estimated to
range from 15 to 90 minutes per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
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
provisions 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. The amount of work required of the insurance
companies delivering the policies and the procedures therein will not
increase from the amount of work currently required to deliver previous
policies to which this regulation applies. This rule does not have any
greater or lesser impact on the insured farmer. 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 provisions of this rule are retroactive
to January 1, 1995, so as to make the benefits hereunder available to
all insureds for the applicable 1995 crop year. The implementation of
the provision is not adverse to any insured. The administrative appeal
provisions located at 7 CFR part 400, subpart J, or promulgated by the
National Appeals Division, whichever is applicable, 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.
Background
The Omnibus Budget Reconciliation Act of 1993 (OBRA) made the 50/92
and the 0/92 provisions available to producers who were prevented from
planting or had failed acreage for crop years 1994 through 1997.
Currently, the prevented planting crop insurance provisions prohibit a
prevented planting production guarantee for any acreage considered to
have been left unplanted under any other United States Department of
Agriculture program. By this rule, an insured may collect both a
guaranteed deficiency payment under the ``0/85'', ``50/92'' and ``0/
92'' provisions of the various commodity programs administered by
United States Department of Agriculture under the
[[Page 35834]]
Agricultural Act of 1949, as amended, and a prevented planting
indemnity under the crop insurance program. Because the weather
conditions in various parts of the midwest have not been conducive to
timely planting of various 1995 program crops, an emergency situation
exists for many producers which requires that this rule be made
effective retroactive to January 1, 1995, without prior notice and
comment. Comments are solicited for 60 days after the date of
publication in the Federal Register and will be considered by FCIC
before this rule is made final.
List of Subjects in 7 CFR Part 457
Crop insurance, Small grains, Coarse grains, Cotton, ELS cotton.
Interim Rule
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) by amending the Small Grains (Sec. 457.101), Cotton
(Sec. 457.104), Extra Long Staple Cotton (Sec. 457.105), and Coarse
Grains (Sec. 457.113) Crop Provisions, applicable for the 1995 crop
year only, to read 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(1).
2. Section 457.101 is amended by revising paragraph
12.(d)(3)(iii)(C) to read as follows:
Sec. 457.101 Small Grains Crop Insurance.
* * * * *
12. Late Planting and Prevented Planting
* * * * *
(d) * * *
(3) * * *
(iii) * * *
(C) Land used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture (Proof that the insured had the seed,
chemicals and other materials available to plant and produce a crop
with the expectation of at least producing the production guarantee
may be required.);
* * * * *
3. Section 457.104 is amended by revising paragraph
12.(d)(3)(iv)(C) to read as follows:
Sec. 457.104 Cotton Crop Insurance Provisions.
* * * * *
12. Late Planting and Prevented Planting
* * * * *
(d) * * *
(3) * * *
(iv) * * *
(C) Land used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture (Proof that the insured had the seed,
chemicals and other materials available to plant and produce a crop
with the expectation of at least producing the production guarantee
may be required.);
* * * * *
4. Section 457.105 is amended by redesignating paragraphs 12.(e)
(3) and (4) as paragraphs 12.(e) (4) and (5), by redesignating the
second paragraph 12.(e)(2) as paragraph 12.(e)(3), and revising
paragraphs 12.(e) (3) and (4) and 12.(e)(4)(iii) to read as follows:
Sec. 457.105 Extra Long Staple Cotton Crop Insurance Provisions.
* * * * *
12. Prevented Planting
* * * * *
(e) * * *
(1) * * *
(2) * * *
(3) Acreage intended to be planted under an irrigated practice
will be limited to the number of acres properly prepared to carry
out an irrigated practice.
(4) A prevented planting production guarantee will not be
provided for:
(i) * * *
(ii) * * *
(iii) Land used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture (Proof that the insured had the seed,
chemicals and other materials available to plant and produce a crop
with the expectation of at least producing the production guarantee
may be required.);
* * * * *
5. Section 457.113 is amended by revising paragraph
13.(d)(3)(iv)(C) to read as follows:
Sec. 457.113 Coarse Grains Crop Insurance Provisions.
* * * * *
13. Late Planting and Prevented Planting
* * * * *
(d) * * *
(3) * * *
(iv) * * *
(C) Land used for conservation purposes or intended to be left
unplanted under any program administered by the United States
Department of Agriculture (Proof that the insured had the seed,
chemicals and other materials available to plant and produce a crop
with the expectation of at least producing the production guarantee
may be required.);
* * * * *
Done in Washington, D.C., on June 29, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-16583 Filed 7-10-95; 10:33 am]
BILLING CODE 3410-08-P
