[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Proposed Rules]
[Pages 41336-41338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19562]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Potato Crop Insurance
Certified Seed Endorsement
AGENCY: Federal Crop Insurance Corporation.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes
to amend the Potato Crop Insurance Certified Seed Endorsement. The
intended effect of this action is to improve the insurance coverage to
better meet the needs of the insured.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business September 28, 1999 and will be
considered when the rule is to be made final.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Federal Crop Insurance
Corporation, United States Department of Agriculture, 9435 Holmes Road,
Kansas City, MO 64131. Comments may also be sent via the Internet to
[email protected] A copy of each response will be
[[Page 41337]]
available for public inspection and copying from 7:00 a.m. to 4:30
p.m., CST, Monday through Friday, except holidays, at the above
address.
FOR FURTHER INFORMATION CONTACT: For further information, contact Rob
Coultis, Insurance Management Specialist, Research and Development,
Product Development Division, Federal Crop Insurance Corporation, at
the Kansas City, MO address listed above, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined this rule
to be exempt for the purposes of Executive Order No. 12866 and,
therefore, has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35), the collections of information for this rule have
been previously approved by the Office of Management and Budget (OMB)
under control number 0563-0053 through April 30, 2001. The amendments
set forth in this rule do not revise the content or alter the frequency
of reporting for any of the forms or information collections cleared
under the above-referenced docket.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA),
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This rule contains no Federal mandates (under the
regulatory provisions of title II of the UMRA) for State, local, and
tribal governments or the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 12612
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implication to warrant the preparation of a Federalism Assessment. The
provisions 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.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions included in this rule will not
impact small entities to a greater extent than large entities. The
amount of work required of the insurance companies delivering and
servicing these policies will not increase significantly from the
amount of work currently required. 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.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
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.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988 on civil justice reform. The provisions of this rule will not
have a retroactive effect. 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 published
at 7 CFR part 11 must be exhausted before any action against FCIC for
judicial review may be brought.
Environmental Evaluation
This action is not expected to have a 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
FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR
part 457) by revising 7 CFR 457.145, Potato Crop Insurance Certified
Seed Endorsement, effective for the 2000 and succeeding crop years. The
principal changes to the provisions for insuring seed potatoes are as
follows:
1. Paragraph 5--Clarify to indicate that the certified seed
production guarantee per acre is the same as the per acre production
guarantee used under the terms of the Northern Potato Crop Provisions.
(Reductions for acreage increases above certain levels remain in
place.)
2. Paragraph 8--Revise the claim computation so that an indemnity
can be paid when seed production meets the standards of the state in
which it is grown, but the actual amount of production is lower than
the production guarantee. Current provisions provide a payment only
when production fails to meet applicable state standards for certified
seed potatoes and do not take into account the actual amount of
production from the insured acreage.
3. Paragraph 9--Revise to include the notice requirements when
production fails certification.
4. A new paragraph 10 is added to specify that acreage covered
under the revised endorsement will be insured using the same unit
structure as is in place for the coverage provided under the Basic
Provisions and the Northern Potato Crop Provisions. In the event
certified seed acreage is not grown in the same optional or basic units
as acreage covered under the Basic Provisions and the Northern Potato
Crop Provisions, certified seed units will be established in accordance
with the unit division provisions contained in the Basic Provisions and
the Northern Potato Crop Provisions. Examples are provided for clarity.
5. A new paragraph 11 is added and includes provisions regarding
uninsured causes of loss that are currently contained in section 8.
List of Subjects in 7 CFR Part 457
Crop insurance, Certified seed potatoes.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 457 as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(p).
2. Amend Sec. 457.145 as follows:
a. Revise the introductory text and paragraph 5.
b. Revise paragraph 8.
c. Revise paragraph 9.
d. Add a new paragraph 10.
e. Add a new paragraph 11.
g. The revisions and additions to Sec. 457.145 read as follows:
Sec. 457.145 Potato crop insurance Certified Seed Endorsement.
The potato Certified Seed Endorsement provisions for the 2000 and
succeeding crop years are as follows:
* * * * *
5. Your certified seed production guarantee per-acre will be the
per-acre
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production guarantee used to cover the same acreage under the terms of
the Northern Potato Crop Provisions. However, unless a written
agreement provides otherwise, if the total amount of insurable
certified seed acreage you have for the current crop year is greater
than 125 percent of your average number of acres entered into and
passing certification in the potato certified seed program in the three
previous calendar years, your certified seed production guarantee for
each unit will be reduced as follows:
* * * * *
8. If, due to insurable causes occurring within the insurance
period, the amount of certified seed you produce is less than your
certified seed production guarantee, we will settle your claim by:
(a) Multiplying the insured acreage by its respective certified
seed production guarantee;
(b) Multiplying each result in section 9(a) by the dollar amount
per hundredweight contained in the Special Provisions for production
covered under this endorsement;
(c) Totaling the results of section 9(b);
(d) Multiplying the number of hundredweight of production that
qualify as certified seed and any amount of production lost due to
uninsured causes, or that does not qualify as certified seed due to
uninsured causes, by the dollar amount per hundredweight contained in
the Special Provisions for production covered under this endorsement;
(e) Subtracting the result of section 9(d) from the result of
section 9(c); and
(f) Multiplying the result of section 9(e) by your share.
9. You must notify us of any loss under this endorsement not later
than 14 days after you receive notice from the state certification
agency that any acreage or production has failed certification.
10. Acreage covered under the terms of this endorsement will have
the same unit structure as provided under the Basic Provisions and the
Northern Potato Crop Provisions. For example, if you have two optional
units (00101 and 00102) for Northern Potato Crop coverage and you elect
this endorsement, you will also have two optional units (00201 and
00202) for certified seed coverage provided that certified seed is
grown in both units 00101 and 00102. Or, if you have two basic units
(0100 and 0200) for Northern Potato Crop coverage and you elect this
endorsement, you will also have two basic units (00300 and 00400) for
certified seed coverage provided that certified seed is grown in both
units 00100 and 00200. In the event certified seed acreage is not grown
in the same optional or basic units as acreage covered under the Basic
Provisions and the Northern Potato Crop Provisions, certified seed
units will be established in accordance with the unit division
provisions contained in the Basic Provisions and the Northern Potato
Crop Provisions. For example, if a basic unit is divided into two
optional units for potato acreage covered under the Basic Provisions
and the Northern Potato Crop Provisions, but certified seed is grown in
only one of those optional units, the certified seed acreage will be
insured as one basic unit.
11. Any production that does not qualify as certified seed because
of varietal mixing or your failure to follow the standard practices and
procedures required for certification will be considered as lost due to
uninsured causes.
Signed in Washington, DC, on July 26, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-19562 Filed 7-29-99; 8:45 am]
BILLING CODE 3410-08-P
