98-26201. Common Crop Insurance Regulations; Basic Provisions  

  • [Federal Register Volume 63, Number 189 (Wednesday, September 30, 1998)]
    [Proposed Rules]
    [Pages 52194-52198]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-26201]
    
    
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    Proposed Rules
                                                    Federal Register
    ________________________________________________________________________
    
    This section of the FEDERAL REGISTER contains notices to the public of 
    the proposed issuance of rules and regulations. The purpose of these 
    notices is to give interested persons an opportunity to participate in 
    the rule making prior to the adoption of the final rules.
    
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    Federal Register / Vol. 63, No. 189 / Wednesday, September 30, 1998 / 
    Proposed Rules
    
    [[Page 52194]]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Federal Crop Insurance Corporation
    
    7 CFR Part 457
    
    RIN 0563-AB69
    
    
    Common Crop Insurance Regulations; Basic Provisions
    
    AGENCY: Federal Crop Insurance Corporation, USDA.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
    amend the Common Crop Insurance Policy; Basic Provisions, to clarify 
    certain provisions, add definitions and provisions to allow enterprise 
    and whole farm units, allow the use of a written agreement to insure 
    acreage that has not been planted and harvested in one of the three 
    previous crop years, and amend the prevented planting provision that 
    requires that at least one contiguous block of prevented planting 
    acreage must constitute at least 20 acres or 20 percent of the 
    insurable crop acreage in the unit before a prevented planting payment 
    may be made. The intended effect of this action is to create a policy 
    that best meets the needs of the insured.
    
    DATES: Written comments and opinions on this proposed rule will be 
    accepted until close of business October 13, 1998, 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. A copy of each response will be available for 
    public inspection and copying from 7:00 a.m. to 4:30 p.m., CDT, Monday 
    through Friday, except holidays, at the above address.
    
    FOR FURTHER INFORMATION CONTACT: For further information and a copy of 
    the Cost-Benefit Analysis to the Common Crop Insurance Regulations; 
    Basic Provisions, contact Louise Narber, 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 significant and, therefore, it has been reviewed by OMB.
    
    Cost-Benefit Analysis
    
        A Cost-Benefit Analysis has been completed and is available to 
    interested persons at the Kansas City address listed above. In summary, 
    the analysis finds that of the provisions in the proposed rule, that 
    elimination of the contiguous acreage requirement for the purpose of 
    determining eligible acreage prevented planting acres will have the 
    most impact. Removal of this requirement is expected to have the 
    greatest impact in certain regions of the Northern Plains, but the 
    effect on overall crop insurance payments is expected to be small. It 
    is estimated that additional indemnities resulting from this change 
    will average $500,000.00 per year. Higher premium rates should cover 
    the additional indemnities. Additional costs to the Government will be 
    about $250,000.00 for premium subsidies, $110,000.00 in administrative 
    subsidies, and $38,000.00 in underwriting losses. Other provisions of 
    the rule serve to clarify provisions or allow changes that may cause 
    slight changes in expected indemnities and premiums. Other than removal 
    of the contiguous land requirement indicated above, little impact is 
    foreseen.
    
    Paperwork Reduction Act of 1995
    
        The provisions contained in this rule contain information 
    collections that require clearance by the Office of Management and 
    Budget (OMB).
        This rule proposes to amend the information collection requirements 
    previously approved by OMB under OMB control number 0563-0053 through 
    October 31, 2000. This rule provides a prevented planting payment if at 
    least 20 acres or 20 percent of the acreage in the unit is prevented 
    from being timely planted, regardless of whether or not the acreage is 
    contiguous, if all other criteria are met. Information will need to be 
    collected with respect to the number of acres prevented from being 
    planted in order to calculate a prevented planting payment. All of the 
    forms cleared under OMB control number 0563-0053 represent the minimum 
    information necessary to determine eligibility and losses qualifying 
    for a payment due to prevented planting or loss of production.
        Due to the necessity of implementing the rule beginning with the 
    1999 crop year, the Agency has requested emergency clearance of the 
    information collections associated with this rule from OMB by September 
    11, 1998. A Federal Register notice soliciting public comment in 
    conjunction with a regular information collection approval package was 
    published in the Federal Register on September 25, 1998.
    
    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 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 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 
    implications 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 economic 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
    
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    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 economic 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 Policy; Basic 
    Provisions (Basic Provisions) (7 CFR part 457) effective for the 1999 
    and succeeding crop years for all crops with contract change dates 
    after the effective date of the final rule, and for the 2000 or 2001 
    and succeeding crop years for all crops with contract change dates 
    prior to the effective date of the final rule. The principal changes to 
    the Basic Provisions are as follows:
        1. Section 1--Add definitions for ``enterprise unit'' and ``whole 
    farm unit.'' This unit arrangement is not currently available. The 
    provisions are being amended to provide for them whenever the Special 
    Provisions allow the use of such unit structure.
        In the definition of ``prevented planting,'' clarify that once the 
    producer has been prevented from planting the insured crop by the final 
    planting date, the producer is eligible for prevented planting 
    coverage. The producer is not required to plant during the late 
    planting period to be eligible for prevented planting coverage. Also 
    specify that the insured must have been prevented from planting the 
    insured crop due to an insured cause of loss that is general in the 
    area and that prevents other producers from planting acreage with 
    similar characteristics. Current provisions require that most (more 
    than 50 percent) producers be prevented from planting on acreage with 
    similar characteristics. This change allows prevented planting to be 
    made on an individual case basis once it is verified that an insured 
    peril prevented planting.
        2. Section 2(e)--Clarify that if any amount due, including premium, 
    is not paid by the termination date, the insurance provider will take 
    such action as authorized under 7 CFR part 400, subpart U, including 
    determining the producer to be ineligible for crop insurance under the 
    Act.
        3. Section 3(c)(4)--Add provisions requiring that if enterprise or 
    whole farm units are selected, the insured must report the acreage and 
    production for each basic unit that comprises the enterprise or whole 
    farm unit for the previous crop year. If the producer fails to provide 
    the required information, the enterprise or whole farm units will be 
    divided into their respective basic units and all premiums and 
    indemnities will be based on the basic units.
        4. Sections 6(a) (1) and (2)--Clarify that only if the producer 
    insures multiple crops with the same insurance company can the producer 
    submit an acreage report on or before the latest applicable acreage 
    reporting date for all crops with an acreage reporting date within the 
    specific time frame.
        5. Section 6(e)--Clarify that any determination under the 
    subsection will be subject to the provisions contained in section 6(g).
        6. Section 9(a)(1)(i)(D)--Clarify that acreage not planted and 
    harvested within one of the three previous crop years will be insurable 
    if the reason the acreage was not planted was because a perennial tree, 
    vine, or bush crop was grown on the acreage. The current regulations do 
    not limit the perennial crop to a tree, vine, or bush crop. This 
    clarification will prevent acreage that has been in perennial grasses 
    from being insurable the first year it is brought back into crop 
    production, unless the perennial grasses were used in a normal rotation 
    practice as allowed by section 9(a)(1)(i)(B).
        7. Section 9(a)(1)(iii)--Allow a written agreement to provide 
    insurance coverage for acreage that has not been planted and harvested 
    within one of the three previous crop years.
        8. Section 15--Add a new subsection that requires a crop to be 
    destroyed or the acreage put to another use before any indemnity can be 
    paid. This change will prevent overpayments that may occur when actual 
    harvested production is higher than appraised production.
        9. Section 16--Reformat the section to move the provision currently 
    contained in section 16(b)(3) to a new section 16(d).
        10. Section 17(a)--Add a new paragraph that specifies that 
    prevented planting coverage is not available if the producer planted 
    the insured crop during or after the late planting period.
        11. Section 17(d)--Clarify that if a late planting period is 
    applicable, that period will also be considered when determining if 
    drought or failure of the irrigation water supply is an insurable cause 
    of loss for the purposes of prevented planting.
        12. Section 17(e)(1)--In the chart headings, clarify that eligible 
    acres are determined based on the 4 most recent crop years when the 
    producer has planted any crop in the county for which prevented 
    planting insurance was available or received a prevented planting 
    guarantee within those 4 years.
        13. Section 17(f)(1)--Delete the provision that requires at least 
    one contiguous block of acreage, consisting of at least 20 acres or 20 
    percent of the insurable crop acreage in the unit, to be prevented from 
    being planted in order to qualify for a prevented planting payment. The 
    requirement that the prevented planting acreage must be contiguous was 
    intended to reduce the instances in which prevented planting payments 
    were made for potholes and other small portions of fields that are wet 
    in most years, although planting occasionally may be possible. FCIC has 
    received numerous complaints that a large number of acres could be 
    prevented from being planted within a unit, but because the minimum 
    contiguous acreage requirement is not met, no prevented planting 
    payment can be made. For example, if a producer has a 100-acre unit, 
    consisting of ten 10-acre fields that are not contiguous, even if all 
    100 acres in the unit were prevented from being planted, a prevented 
    planting payment could not be made because the minimum contiguous 
    acreage requirement was not met. Removing the minimum contiguous 
    acreage requirement, while still retaining the 20 acres or 20 percent 
    of the insurable acreage requirement, will achieve the intended goal of 
    not paying prevented planting claims when only a
    
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    small number of acres are prevented from being planted.
        Clarify that for a producer to claim that acreage that was 
    prevented from being planted would have been planted to a different 
    crop than the crop that was planted in the field, in addition to the 
    requirement that the prevented planting acreage must constitute at 
    least 20 acres or 20 percent of the insurable acreage in the field, the 
    producer must have produced both crops in the same field in any one of 
    the 4 most recent crop years. A 4 year period is consistent with the 
    period used to determine eligible prevented planting acreage.
        14. Section 17(f)(5)--Add provisions to specify that if one of the 
    crops being double-cropped is not insurable, other verifiable records 
    of it being planted may be used since records of uninsured crops would 
    not be included in the insured's actual production history (APH) 
    database.
        15. Section 17(f)(11)--Add provisions to specify that prevented 
    planting acreage insured under an irrigated practice will be limited to 
    the number of acres allowed for that crop practice in sections 17 (e) 
    and (f).
        16. Section 17(f)(12)--Allow prevented planting coverage for a crop 
    type that was not planted in at least one of the 4 most recent years, 
    if the producer received a prevented planting insurance guarantee for 
    that type in at least one of the 4 most recent years. This change will 
    enable a producer who insured and received a prevented planting 
    insurance guarantee based on a specific type, although the producer did 
    not plant that type within one of the 4 most recent years because he or 
    she was prevented from doing so, to qualify for prevented planting 
    coverage for that type for a subsequent crop year.
        17. Section 17(g)--Add a new section 17(g) that specifies that when 
    a producer insures acreage of a crop under a limited or additional 
    coverage policy and separately insures acreage of that crop, which has 
    been designated as ``high risk'' under a catastrophic risk protection 
    coverage policy, the maximum acreage eligible for a prevented planting 
    payment will be limited for each policy as specified in sections 17 (e) 
    and (f).
        18. Section 17(h)--Add a new section 17(h) to allow prevented 
    planting coverage for a crop that a producer was prevented from 
    planting, when that crop does not have eligible prevented planting 
    acres established, by basing the coverage on a crop that has eligible 
    prevented planting acreage established under the terms of the policy. 
    The production guarantee or amount of insurance, premium and prevented 
    planting payment would be calculated using the qualifying crop data. 
    This provides prevented planting coverage on the basis of insurance 
    history (i.e., what the insured has demonstrated in the past) rather 
    than on intent to plant a specific crop.
        19. Section 24(e) For reinsured policies--Add language specifying 
    that amounts the insured owes to the insurance provider may be 
    collected through administrative offset from payments the insured 
    receives from United States government agencies in accordance with 31 
    U.S.C. chapter 37.
        20. Section 34--Add a new section 34(a) that allows a producer to 
    elect an enterprise unit or a whole farm unit if provided for in the 
    Special Provisions and the producer elects such unit structure on or 
    before the earliest sales closing date for the insured crops.
    
    List of Subjects in 7 CFR Part 457
    
        Crop insurance, Common crop insurance policy.
    
    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(1), 1506(p).
    
    
    Sec. 457.2  [Amended]
    
        2. Amend Sec. 457.2(e) to remove the words ``paragraph 21'' and 
    replace with the words ``paragraph 24''.
    
    
    Sec. 457.8  [Amended]
    
        3. Amend Sec. 457.8 as follows:
        a. Amend section 1 of the Basic Provisions by adding definitions 
    for ``enterprise unit'' and ``whole farm unit'' and revising the 
    definition of ``prevented planting'' to read as follows:
    
    1. Definitions
    
    * * * * *
        Enterprise unit. All insurable acreage of the insured crop in 
    the county in which you have a share on the date coverage begins for 
    the crop year. An enterprise unit must consist of at least two basic 
    units and at least 50 insurable acres.
    * * * * *
        Prevented planting. Failure to plant the insured crop with 
    proper equipment by the final planting date designated in the 
    Special Provisions for the insured crop in the county or, if you 
    elect to plant the insured crop during the late planting period, 
    failure to plant the insured crop within the late planting period. 
    You must have been prevented from planting the insured crop due to 
    an insured cause of loss that is general in the surrounding area and 
    that prevents other producers from planting acreage with similar 
    characteristics.
    * * * * *
        Whole farm unit. All insurable acreage of the insurable crops in 
    the county in which you have a share on the date coverage begins for 
    each crop for the crop year. A whole farm unit must consist of at 
    least two crops and at least 50 insurable acres.
    * * * * *
        b. Revise section 2(e) of the Basic Provisions to read as follows:
    
    2. Life of Policy, Cancellation, and Termination
    
    * * * * *
        (e) If any amount due, including premium, is not paid on or 
    before the termination date for the crop on which the amount is due, 
    you may be determined to be ineligible to participate in any crop 
    insurance program authorized under the Act in accordance with 7 CFR 
    part 400, subpart U.
    * * * * *
        c. Amend section 3 of the Basic Provisions by adding a new 
    paragraph (c)(4) to read as follows:
    
    3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
    Indemnities
    
    * * * * *
        (c) * * *
        (4) If you elect to obtain an enterprise or whole farm unit, you 
    must report the acreage and production for each basic unit that 
    comprises the enterprise or whole farm unit for the previous crop 
    year. If you do not provide the information required herein, the 
    enterprise or whole farm unit will be divided into its respective 
    basic units and all premiums and indemnities will be based on the 
    basic unit structure.
    * * * * *
        d. Revise sections 6(a)(1) and (2) and 6(e) of the Basic Provisions 
    to read as follows:
    
    6. Report of Acreage
    
        (a) * * *
        (1) If you insure multiple crops with us that have final 
    planting dates on or after August 15 but before December 31, you 
    must submit an acreage report for all such crops on or before the 
    latest applicable acreage reporting date for such crops; and
        (2) If you insure multiple crops with us that have final 
    planting dates on or after December 31 but before August 15, you 
    must submit an acreage report for all such crops on or before the 
    latest applicable acreage reporting date for such crops.
    * * * * *
        (e) We may elect to determine all premiums and indemnities based 
    on the information you submit on the acreage report or upon the 
    factual circumstances we determine to have existed, subject to the 
    provisions contained in section 6(g).
    * * * * *
        e. Revise sections 9(a)(1)(i)(D) and 9(a)(1)(iii) of the Basic 
    Provisions to read as follows:
    
    [[Page 52197]]
    
    9. Insurable Acreage
    
        (a) * * *
        (1) * * *
        (i) * * *
        (D) Because a perennial tree, vine, or bush crop was grown on 
    the acreage;
    * * * * *
        (iii) The Crop Provisions or a written agreement specifically 
    allow insurance for such acreage;
    * * * * *
        f. Amend section 15 of the Basic Provisions to add a new paragraph 
    (d) to read as follows:
    
    15. Production Included in Determining Indemnities
    
    * * * * *
        (d) If you elect to put the acreage to another use or abandon 
    the crop and obtain an indemnity for a unit based on appraised 
    production, the crop on the acreage must be destroyed or you must 
    put the acreage to another use before any indemnity will be paid.
    * * * * *
        g. Amend section 16(b)(2) of the Basic Provisions to add the word 
    ``and'' immediately following the semicolon.
        h. Remove section 16(b)(3) of the Basic Provisions and redesignate 
    section 16(b)(4) as section 16(b)(3).
        i. Add a new section 16(d) of the Basic Provisions to read as 
    follows:
    
    16. Late Planting
    
    * * * * *
        (d) Any acreage on which an insured cause of loss materially 
    prevents completion of planting, as specified in the definition of 
    ``planted acreage'' (e.g., seed is broadcast on the soil surface but 
    cannot be incorporated) will be considered as acreage planted after 
    the final planting date and the production guarantee will be 
    calculated in accordance with section 16(b)(1).
        j. Revise section 17(a) of the Basic Provisions to delete the word 
    ``and'' at the end of section 17(a)(1)(ii), add ``; and'' at the end of 
    section 17(a)(2), and add a new section 17(a)(3) to read as follows:
    
    17. Prevented Planting
    
        (a) * * *
        (3) You did not plant the insured crop during or after the late 
    planting period.
    * * * * *
        k. Revise sections 17(d) introductory text of the Basic Provisions 
    to read as follows:
    
    17. Prevented Planting
    
    * * * * *
        (d) Drought or failure of the irrigation water supply will be 
    considered to be an insurable cause of loss for the purposes of 
    prevented planting only if either, on the final planting date, or 
    within the late planting period if a late planting period is 
    applicable:
    * * * * *
        l. Revise the middle column heading in the table in section 
    17(e)(1) of the Basic Provisions to read as follows:
    
        ``Eligible acres if, in any of the 4 most recent crop years, you 
    have planted any crop in the county for which prevented planting 
    insurance was available or have received a prevented planting 
    insurance guarantee''
    * * * * *
        m. Revise the last column heading in the table in section 17(e)(1) 
    of the Basic Provisions to read as follows:
    
        ``Eligible acres if, in any of the 4 most recent crop years, you 
    have not planted any crop in the county for which prevented planting 
    insurance was available or have not received a prevented planting 
    insurance guarantee''
    * * * * *
        n. Revise sections 17(f)(1), (f)(11), and (f)(12) of the Basic 
    Provisions to read as follows:
    
    17. Prevented Planting
    
    * * * * *
        (f) * * *
        (1) That does not constitute at least 20 acres or 20 percent of 
    the insurable crop acreage in the unit, whichever is less. Any 
    prevented planting acreage within a field that contains planted 
    acreage will be presumed to have been planted to the same crop that 
    is planted in the field unless the acreage that was prevented from 
    being planted constitutes at least 20 acres or 20 percent of the 
    total insurable acreage in the field and you produced both crops in 
    the same field in the same crop year within any of the 4 most recent 
    crop years;
    * * * * *
        (11) Based on an irrigated practice production guarantee or 
    amount of insurance unless adequate irrigation facilities were in 
    place to carry out an irrigated practice on the acreage prior to the 
    insured cause of loss that prevented you from planting. Acreage with 
    an irrigated practice production guarantee will be limited to the 
    number of acres allowed for that practice under sections 17(e) and 
    (f); or
        (12) Based on a crop type that you did not plant or did not 
    receive a prevented planting insurance guarantee in at least one of 
    the four most recent years. Types for which separate price 
    elections, amounts of insurance, or production guarantees are 
    available must be included in your APH database in at least one of 
    the most recent four years, or crops that do not require yield 
    certification (crops for which the insurance guarantee is not based 
    on APH) must be reported on your acreage report in at least one of 
    the four most recent crop years except as allowed in section 
    17(e)(1)(i)(B). We will limit prevented planting payments based on a 
    specific crop type to the number of acres allowed for that crop type 
    as specified in sections 17(e) and (f).
    * * * * *
        o. Revise section 17(f)(5) of the Basic Provisions to add the 
    following text to the end of the paragraph between the word ``acreage'' 
    and the semicolon: ``(If one of the crops being double-cropped is not 
    insurable, other verifiable records of it being planted may be used)''
        p. Redesignate section 17(g) of the Basic Provisions as 17(i) and 
    add new sections 17(g) and (h) to read as follows:
    
    17. Prevented Planting
    
    * * * * *
        (g) If you purchased a limited or additional coverage policy for 
    a crop, and you executed a High Risk Land Exclusion Option that 
    separately insures acreage which has been designated as ``high 
    risk'' land by FCIC under a Catastrophic Risk Protection Endorsement 
    for that crop, the maximum number of acres eligible for a prevented 
    planting payment will be limited for each policy as specified in 
    sections 17(e) and (f).
        (h) If you are prevented from planting a crop for which you do 
    not have an adequate base of eligible prevented planting acreage, as 
    determined in accordance with section 17(e)(1), your prevented 
    planting production guarantee or amount of insurance, premium, and 
    prevented planting payment will be based on the most recent crops 
    planted on the acreage, not to exceed the base eligible prevented 
    planting acreage for those crops as established in section 17(e)(1). 
    For example: You intended to plant 120 acres of soybeans and you 
    have never planted more than 20 acres of soybeans in the previous 4 
    crop years:
        (1) However, the previous crop year, you planted 60 acres of 
    corn and 60 acres of processing tomatoes. Your prevented planting 
    guarantee premium, and prevented planting payment will be based on 
    20 acres of soybeans, 50 acres of corn (60/120  x  120-20) and 50 
    acres of processing tomatoes (60/120  x  120-20), even though you 
    may not have a processing contract for the current crop year.
        (2) You were only able to plant 30 acres of soybeans. The 
    previous crop year you planted 90 acres of corn and 30 acres of 
    oats. Your prevented planting guarantee, premium, and prevented 
    planting payment will be based on 67.5 acres of corn (90/120  x  
    120-30) and 22.5 acres of oats (30/120  x  120-30).
        (3) The previous crop year you were prevented from planting the 
    acreage or did not attempt to plant a crop. However, just prior to 
    the crop year in which no crop was planted on the acreage, you 
    planted 120 acres of grain sorghum, your prevented planting 
    guarantee, premium, and prevented planting payment will be based on 
    20 acres of soybeans and 100 acres of grain sorghum.
        (4) The previous crop year you planted 120 acres of potatoes and 
    the rotation requirements precluded you from planting potatoes this 
    year. The crop year preceding your planting of potatoes, you planted 
    120 acres of corn. Your prevented planting guarantee, premium, and 
    prevented planting payment will be based on 20 acres of soybeans and 
    100 acres of corn.
    
        q. Amend newly designated section 17(i)(2) of the Basic Provisions 
    by changing the section reference therein from ``17(g)(1)'' to 
    ``17(i)(1).''
        r. Amend newly designated section 17(i)(3) of the Basic Provisions 
    by changing the section reference therein from ``17(g)(2)'' to 
    ``17(i)(2).''
    
    [[Page 52198]]
    
        s. Revise section 24(e) to read as follows:
    * * * * *
        For reinsured policies
    
    24. Amounts Due Us
    
    * * * * *
        (e) Amounts owed to us by you may be collected through 
    administrative offset from payments you receive from United States 
    government agencies in accordance with 31 U.S.C. chapter 37.
    * * * * *
        t. Amend section 34 of the Basic Provisions by redesignating 
    sections 34(a) through 34(d) as sections 34(b) through 34(e) 
    respectively, and adding a new section 34(a) to read as follows:
    * * * * *
    
    34. Unit Division
    
        (a) You may elect an enterprise unit or a whole farm unit if the 
    Special Provisions allow such unit structure, subject to the 
    following:
        (1) You must make such election on or before the earliest sales 
    closing date for the insured crops and report such unit structure to 
    us in writing. Your unit selection will remain in effect from year 
    to year unless you notify us in writing by the applicable sales 
    closing date for the crop year for which you wish to cancel this 
    election;
        (2) For enterprise units, you must report the acreage for each 
    basic unit that comprises the enterprise unit on your acreage 
    report;
        (3) For a whole farm unit, you must report the acreage for each 
    basic unit for each crop produced in the county that comprises the 
    whole farm unit on your acreage report;
        (4) Although you may insure all of your crops under one policy 
    as a whole farm unit, you will be required to pay separate 
    applicable administrative fees for each crop (Since enterprise units 
    are by separate crop, you will have to pay all applicable 
    administrative fees for each crop); and
        (5) These units may not be further divided except as specified 
    herein or in section 3(c)(4).
    * * * * *
        Signed in Washington, D.C., on September 25, 1998.
    John Zirschky,
    Acting Manager, Federal Crop Insurance Corporation.
    [FR Doc. 98-26201 Filed 9-28-98; 9:10 am]
    BILLING CODE 3410-08-P
    
    
    

Document Information

Published:
09/30/1998
Department:
Federal Crop Insurance Corporation
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
98-26201
Dates:
Written comments and opinions on this proposed rule will be accepted until close of business October 13, 1998, and will be considered when the rule is to be made final.
Pages:
52194-52198 (5 pages)
RINs:
0563-AB69: Common Crop Insurance Regulations; Basic Provisions
RIN Links:
https://www.federalregister.gov/regulations/0563-AB69/common-crop-insurance-regulations-basic-provisions
PDF File:
98-26201.pdf
CFR: (2)
7 CFR 457.2
7 CFR 457.8