[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Rules and Regulations]
[Pages 32899-32900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15508]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 122 / Monday, June 26, 1995 / Rules 
and Regulations  

[[Page 32899]]

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1405

RIN 0560-AD97


Crop Insurance Requirement

AGENCY: Commodity Credit Corporation (CCC), USDA.

ACTION: Final rule.

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SUMMARY: This rule implements the requirement of the Federal Crop 
Insurance Reform Act of 1994 that producers obtain at least the 
catastrophic level of crop insurance for each crop of economic 
significance in order to be eligible for any price support, production 
adjustment benefit or payment for CRP acreage under contracts entered 
into after October 12, 1994.

EFFECTIVE DATE: October 13, 1994.

FOR FURTHER INFORMATION CONTACT: David M. Nix, CFSA, USDA, P.O. Box 
2415, Washington, DC 20013-2415, (202) 720-9883.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been determined to be a ``significant regulatory action'' and 
has been reviewed by the Office of Management and Budget.

Federal Assistance Programs

    The titles and numbers of the Federal Assistance Programs, as found 
in the Catalog of Federal Domestic Assistance, to which this final rule 
applies are: Commodity Loans and Purchases-10.051; Cotton Production 
Stabilization-10.052; Feed Grain Production Stabilization-10.055; Wheat 
Production Stabilization-10.058; Rice Production Program-10.065; Grain 
Reserve Program-10.067; and Conservation Reserve Program-10.069.

Regulatory Flexibility Act

    It has been determined that this rule will not have a significant 
impact on a substantial number of small entities. In any event the rule 
simply codifies the eligibility requirement of the Federal Crop 
Insurance Reform Act of 1994. Therefore, the Regulatory Flexibility Act 
is not applicable to this final rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an environmental assessment nor an 
Environmental Impact Statement is needed.

Executive Order 12778

    This final rule has been reviewed in accordance with Executive 
Order 12778. To the extent State and local laws are in conflict with 
this rule, this rule will prevail. The provisions of this rule are 
retroactive to conform to the Federal Crop Insurance Reform Act of 
1994. Before any judicial action may be brought concerning the 
provisions of this rule, administrative review under 7 CFR Part 780 or 
regulations of the Department of Agriculture National Appeals Division 
must be exhausted.

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).

Paperwork Reduction Act

    The information collection requirements contained in this rule have 
been approved by OMB under the Paperwork Reduction Act of 1980 (44 
U.S.C. 3501-3520) and assigned OMB control numbers 0563-0001, 0563-0003 
and 0563-0029.

Discussion

    The Federal Crop Insurance Reform Act of 1994 amended the Federal 
Crop Insurance Act to require that producers obtain at least the 
catastrophic level of crop insurance in order to be eligible for any 
price support or production adjustment program or the Conservation 
Reserve Program.
    It has been determined that publication of this rule for notice and 
comment is impractical, unnecessary and contrary to legislative intent. 
This rule simply implements the specific mandate of the Federal Crop 
Insurance Reform Act of 1994 and the agency does not have discretion 
with respect to its implementation.

List of Subjects in 7 CFR Part 1405

    Crop insurance.
    Accordingly, 7 CFR Part 1405 is amended as follows:

PART 1405--LOANS, PURCHASES AND OTHER OPERATIONS

    1. The authority citation for part 1405 is revised to read as 
follows:

    Authority: 7 U.S.C. 1506(l), 15 U.S.C. 714b and 714c.

    2. Section 1405.6 is added to read as follows:


Sec. 1405.6  Crop insurance requirement.

    (a) To be eligible for any benefits or payments under 7 CFR parts 
723, 729, 1413, 1421, 1427, 1435, 1443, 1446, 1464 and payments under 7 
CFR parts 704 and 1410 for CRP acreage under contracts entered into 
after October 12, 1994, the producer must obtain at least the 
catastrophic level of insurance for each crop of economic significance 
grown on each farm in the county in which the producer has an interest, 
if insurance is available in the county for the crop.
    (b) Crop of economic significance. The term ``crop of economic 
significance'' means a crop that has contributed in the previous year, 
or is expected to contribute in the current crop year, 10 percent or 
more of the total expected value of all crops grown by the producer. 
However, notwithstanding the preceding sentence, if the total expected 
liability under the catastrophic risk protection endorsement is equal 
to or less than the administrative fee required for the crop, such crop 
will not be considered a crop of economic significance.
    (c) In addition to the terms defined in this subsection, terms 
defined in part 719 of this title shall be applicable to this section.

    [[Page 32900]] Signed at Washington, DC, on June 19, 1995.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 95-15508 Filed 6-23-95; 8:45 am]
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