[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Rules and Regulations]
[Pages 29749-29750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13747]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 108 / Tuesday, June 6, 1995 / Rules 
and Regulations  

[[Page 29749]]

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 401

RIN 0563-AB29


General Crop Insurance Regulations; Florida Citrus Endorsement

AGENCY: Federal Crop Insurance Corporation, Agriculture.

ACTION: Interim rule.

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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby 
amends the Florida Citrus Endorsement that supplements the General Crop 
Insurance Policy. The intended effect of this interim rule is to 
require that the insured crop unit suffer at least a fifty percent 
(50%) average percent of damage before an indemnity would be due for 
any catastrophic risk protection policy.

DATES: This rule is effective on June 6, 1995. Written comments, data, 
and opinions on this rule will be accepted until close of business 
August 7, 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, United States Department of 
Agriculture (USDA), Washington, DC 20250. Hand or messenger delivery 
may be made to Suite 500, 2101 L Street, NW., 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: Diana Moslak, Federal Crop Insurance 
Corporation, United States 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 these regulations is May 1, 2000.
    This rule has been determined to be ``not significant'' for the 
purposes of Executive Order 12866, and therefore, has not been reviewed 
by the Office of Management and Budget (``OMB'').
    The information collection requirements contained in these 
regulations (7 CFR part 401) were previously approved by OMB pursuant 
to the Paperwork Reduction Act of 1980 (44 U.S.C. Secs. 3501, et seq.), 
under OMB control numbers 0563-0001, 0563-0003, 0563-0009, 0563-0014, 
0563-0029 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 
implication to warrant the preparation of a Federalism Assessment. The 
policy and procedure 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. This action neither increases nor decreases 
the paperwork burden on the insured farmer and the reinsured company. 
Therefore, this action is determined to be exempt from the provisions 
of the Regulatory Flexibility Act (5 U.S.C. Sec. 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 subsection 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 administrative appeal provisions located 
at 7 CFR part 400, subpart J or as promulgated by the National Appeals 
Division, whichever is applicable, must be exhausted before any 
judicial action may be brought regarding the provisions of this 
regulation.
    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

    This interim rule implements the catastrophic risk protection plan 
of insurance mandated by amendments to the Federal Crop Insurance Act 
by the Federal Crop Insurance Reform Act of 1994 into the Florida 
Citrus endorsement.

List of Subjects in 7 CFR Part 401

    Crop insurance, Florida Citrus Endorsement.

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 General Crop Insurance Regulations (7 CFR 
part 401), effective for the 1996 and succeeding crop years, to read as 
follows:

PART 401--[AMENDED]

    1. The authority citation for 7 CFR part 401 is revised to read as 
follows:

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

    2. Section 401.143 is amended by revising subsection 9.a., 
paragraphs (2) [[Page 29750]] and (3) and adding paragraph (4) to read 
as follows:


Sec. 401.143  Florida citrus endorsement.

* * * * *

9. Claim for Indemnity

    a. * * *
    (1) * * *
    (2) For limited and additional coverages, by multiplying the result 
in excess of 10 percent (e.g., 45%-10%=35% payable), times the amount 
of insurance for the unit (the amount of insurance for the unit is 
determined by multiplying the insured acreage on the unit times the 
applicable amount of insurance per acre); or
    (3) For catastrophic risk protection coverage, the result in excess 
of 50 percent divided by 50 percent (e.g. if the insured's average 
percent of damage is 75%; the percentage of the guarantee payable is 50 
percent, (75%-50%)50%); if the insured's average percent of 
damage is 60 percent, the percentage of the guarantee payable is 20 
percent, (60%-50%)50%) times the amount of insurance for the 
unit. The amount of insurance for the unit is determined by multiplying 
the insured acreage on the unit times the applicable amount of 
insurance per acre. For any average percentage of damage less than 50%, 
the insured is not eligible for an indemnity payment; and
    (4) Multiplying the product obtained in (2) above for limited and 
additional coverage, or the product obtained in (3) above for 
catastrophic risk protection, by your share.
* * * * *
    Done in Washington DC, on May 24, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-13747 Filed 6-5-95; 8:45 am]
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