98-17637. Dry Pea; Correction

[Federal Register Volume 63, Number 127 (Thursday, July 2, 1998)]
[Rules and Regulations]
[Page 36157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17637]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Dry Pea; Correction

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to the final regulation 
which was published in the Federal Register on Tuesday, December 16, 
1997 (62 FR 65741-65747). The regulation pertains to the Dry Pea Crop 
Insurance Provisions.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT: Arden Routh, Insurance Management 
Specialist, Research and Development, Product Development Division, 
Federal Crop Insurance Corporation, United States Department of 
Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816) 
926-7730.

SUPPLEMENTARY INFORMATION:

Background

    The final regulation that is the subject of this correction was 
intended to provide policy changes to better meet the needs of the 
insured and include the pea crop insurance regulations with the Common 
Crop Insurance Policy for ease of use and consistency of terms.

Need for Correction

    As published, the final regulation contained an error which may 
prove misleading. The local market price definition was based on the 
cash price per pound for U.S. No. 2 grade of dry peas and is being 
corrected to be based on the cash price per pound for U.S. No. 1 grade 
of dry peas. Dry Pea production that is eligible for quality adjustment 
is based on production grading U.S. No. 2 or worse; therefore, any 
production not grading U.S. No. 1 is eligible for quality adjustment. 
The local market price must be based on the U.S. No. 1 grade rather 
than U.S. No. 2. The value of the damaged or conditioned production is 
divided by the local market price (based on U.S. No. 1 grade) to 
calculate the quality adjustment factor under section 12(e) of the crop 
provisions.

List of Subjects in 7 CFR Part 457

    Crop insurance, Dry pea.

    Accordingly, 7 CFR part 457 is corrected by making the following 
correcting amendment:

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1998 AND SUBSEQUENT CONTRACT YEARS

    1. The authority citation for part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(1), 1506(p).


Sec. 457.140  [Corrected]

    2. In Sec. 457.140, section 1 of the policy pertaining to the 
definition of ``Local market price'' is corrected by removing the 
phrase ``U.S. No. 2'', in the first and second sentences, and replacing 
it with ``U.S. No. 1''.

    Signed in Washington D.C., on June 26, 1998.
Joy Harwood,
Acting Manager, Federalf Crop Insurance Corporation.
[FR Doc. 98-17637 Filed 7-1-98; 8:45 am]
BILLING CODE 3410-08-P