[Federal Register Volume 59, Number 34 (Friday, February 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3684]


[[Page Unknown]]

[Federal Register: February 18, 1994]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

 

Announcement of the Federal Crop Insurance Corporation's Pending 
Evaluation of County Cotton Insurance Programs

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Notice of intent.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is announcing 
intent to evaluate its cotton and extra long staple (ELS) cotton 
programs. The intent of this announcement is to solicit public comment 
and suggestion for improvement and increased participation in FCIC's 
cotton programs.

DATES: Written comment, data, and suggestions should be submitted no 
later than April 19, 1994 to be sure of consideration.

ADDRESSES: Evaluation Division, Federal Crop Insurance Corporation, 
P.O. Box 419293, Kansas City, MO 64141.

FOR FURTHER INFORMATION CONTACT:
Vondie O'Conner, Jr., Acting Director, telephone (816) 926-6343. 
(Address is listed above.)

SUPPLEMENTARY INFORMATION: It is FCIC's intent to evaluate each of its 
crop programs periodically. Crop evaluations provide valuable insight 
into how well programs are operating, the extent to which they are 
serving the customer, their strengths and weaknesses, and their cost 
effectiveness. Crop programs experiencing high loss ratios and net 
losses are priority programs for FCIC to evaluate.
    The Omnibus Budget Reconciliation Act of 1993 directed that FCIC 
take necessary actions to improve the actuarial soundness of multiple 
peril crop insurance and to achieve, on and after October 1, 1995, a 
projected loss ratio not to exceed 1.10. For crop years 1988-1992, 
FCIC's cotton program experienced a loss ratio of 2.05 and a net loss 
(premium less indemnity) of $378 million. Additionally, for the same 
crop years, the ELS cotton program experienced a 3.05 loss ratio and 
suffered a net loss of $8 million.
    The evaluation will include a review of insurance areas for 
actuarial and underwriting performance; the establishment of accurate 
program dates (sales closing, final planting, acreage reporting, and 
contract cancellation); the effect of unit division and related rate 
impacts; the determination of insurance coverages; an analysis on cause 
of loss, frequency and severity of losses and other pertinent program 
factors. In addition, prescribed loss adjustment procedure and training 
will also be evaluated.

    Done in Washington, DC on February 10, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-3684 Filed 2-17-94; 8:45 am]
BILLING CODE 3410-08-M