[Federal Register Volume 60, Number 133 (Wednesday, July 12, 1995)]
[Rules and Regulations]
[Pages 35832-35834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16583]



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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB27


Common Crop Insurance Regulations; Various Crop Provisions

AGENCY: Federal Crop Insurance Corporation.

ACTION: Interim rule.

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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby 
amends the Common Crop Insurance Regulations, applicable for the 1995 
crop year only, by revising the prevented planting coverage for the 
Small Grains, Coarse Grains, Cotton, and Extra Long Staple Cotton Crop 
Provisions. The intended effect of this regulation is to allow an 
insured to collect both a guaranteed deficiency payment under the so-
called 50/92 and 0/92 provisions of the wheat, feed grains, cotton and 
rice programs administered by the United States 

[[Page 35833]]
Department of Agriculture (``USDA'') under the authority of the 
Agricultural Act of 1949, as amended, and a prevented planting 
indemnity under the crop insurance program.

DATES: This rule is effective January 1, 1995. Written comments, data, 
and opinions on this rule will be accepted until close of business 
September 11, 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, USDA, Washington, DC 20250. 
Hand or messenger delivery may be made to 2101 L Street NW., Suite 500, 
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:
For further information and a copy of the Cost-Benefit Analysis to the 
Common Crop Insurance prevented planting provision, contact Diana 
Moslak, Regulatory and Procedural Development Staff, Federal Crop 
Insurance Corporation, U.S. 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 small grains is July 1, 1998 and for coarse 
grains, cotton and Extra Long Staple cotton is March 1, 1999.
    This rule has been determined to be ``significant'' for purposes of 
Executive Order 12866, and therefore, has been reviewed by the Office 
of Management and Budget (``OMB'').
    A Cost-Benefit Analysis has been completed and is available to 
interested persons at the address listed above. In summary, the 
analysis finds that this action will alleviate an inequity of the crop 
insurance rules that affect farmers who are unable to plant compared to 
farmers who are able to plant. The prevented planting rules promulgated 
in 1993 did not authorize a prevented planting guarantee on any acreage 
``considered to have been left unplanted'' under other programs of the 
U.S. Department of Agriculture. The intent was to avoid double payments 
for the same loss so that the programs were less intrusive on economic 
incentives to plant. However, it has been determined that these 
payments are not for a loss of production, but rather are an income 
supplement. Producers who plant a crop that subsequently fails are 
entitled to a full indemnity from crop insurance in addition to the 
supplemental payments under the deficiency payment programs. Thus, 
removing the restriction on land ``considered to have been left 
unplanted'' places these producers on the same basis as those who 
plant.
    The change in rules is not expected to have significant costs in 
most crop years since relatively small acreages normally cannot be 
planted. The cost will be greater in 1995, primarily to pay prevented 
planting payments to producers insured at the catastrophic level of 
protection who could have been expected to take the 0/92 payment in 
lieu of a prevented planting guarantee. These relatively small payments 
per acre are estimated to be made on 1.2 million acres and total $31.5 
million. It has been determined that this will not have an adverse 
actuarial affect on the Federal Crop Insurance Program.
    The information collection requirements contained in these 
regulations (7 CFR part 457) were previously approved by OMB pursuant 
to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.), under 
OMB control numbers 0563-0001, 0563-0003, 0563-0014, 0563-0023, 0563-
0025, 0563-0029, 0563-0032, 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 
implications to warrant the preparation of a Federalism Assessment. The 
provisions and procedures 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. The amount of work required of the insurance 
companies delivering the policies and the procedures therein will not 
increase from the amount of work currently required to deliver previous 
policies to which this regulation applies. This rule does not have any 
greater or lesser impact on the insured farmer. 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.
    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 subsections 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 provisions of this rule are retroactive 
to January 1, 1995, so as to make the benefits hereunder available to 
all insureds for the applicable 1995 crop year. The implementation of 
the provision is not adverse to any insured. The administrative appeal 
provisions located at 7 CFR part 400, subpart J, or promulgated by the 
National Appeals Division, whichever is applicable, must be exhausted 
before judicial action may be brought.
    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

    The Omnibus Budget Reconciliation Act of 1993 (OBRA) made the 50/92 
and the 0/92 provisions available to producers who were prevented from 
planting or had failed acreage for crop years 1994 through 1997. 
Currently, the prevented planting crop insurance provisions prohibit a 
prevented planting production guarantee for any acreage considered to 
have been left unplanted under any other United States Department of 
Agriculture program. By this rule, an insured may collect both a 
guaranteed deficiency payment under the ``0/85'', ``50/92'' and ``0/
92'' provisions of the various commodity programs administered by 
United States Department of Agriculture under the 

[[Page 35834]]
Agricultural Act of 1949, as amended, and a prevented planting 
indemnity under the crop insurance program. Because the weather 
conditions in various parts of the midwest have not been conducive to 
timely planting of various 1995 program crops, an emergency situation 
exists for many producers which requires that this rule be made 
effective retroactive to January 1, 1995, without prior notice and 
comment. Comments are solicited for 60 days after the date of 
publication in the Federal Register and will be considered by FCIC 
before this rule is made final.

List of Subjects in 7 CFR Part 457

    Crop insurance, Small grains, Coarse grains, Cotton, ELS cotton.

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 Common Crop Insurance Regulations (7 CFR 
Part 457) by amending the Small Grains (Sec. 457.101), Cotton 
(Sec. 457.104), Extra Long Staple Cotton (Sec. 457.105), and Coarse 
Grains (Sec. 457.113) Crop Provisions, applicable for the 1995 crop 
year only, to read as follows:

PART 457--[AMENDED]

    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

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

    2. Section 457.101 is amended by revising paragraph 
12.(d)(3)(iii)(C) to read as follows:


Sec. 457.101  Small Grains Crop Insurance.

* * * * *

12. Late Planting and Prevented Planting

* * * * *
    (d) * * *
    (3) * * *
    (iii) * * *
    (C) Land used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture (Proof that the insured had the seed, 
chemicals and other materials available to plant and produce a crop 
with the expectation of at least producing the production guarantee 
may be required.);
* * * * *
    3. Section 457.104 is amended by revising paragraph 
12.(d)(3)(iv)(C) to read as follows:


Sec. 457.104  Cotton Crop Insurance Provisions.

* * * * *

12. Late Planting and Prevented Planting

* * * * *
    (d) * * *
    (3) * * *
    (iv) * * *
    (C) Land used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture (Proof that the insured had the seed, 
chemicals and other materials available to plant and produce a crop 
with the expectation of at least producing the production guarantee 
may be required.);
* * * * *
    4. Section 457.105 is amended by redesignating paragraphs 12.(e) 
(3) and (4) as paragraphs 12.(e) (4) and (5), by redesignating the 
second paragraph 12.(e)(2) as paragraph 12.(e)(3), and revising 
paragraphs 12.(e) (3) and (4) and 12.(e)(4)(iii) to read as follows:


Sec. 457.105  Extra Long Staple Cotton Crop Insurance Provisions.

* * * * *
12. Prevented Planting

* * * * *
    (e) * * *
    (1) * * *
    (2) * * *
    (3) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres properly prepared to carry 
out an irrigated practice.
    (4) A prevented planting production guarantee will not be 
provided for:
    (i) * * *
    (ii) * * *
    (iii) Land used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture (Proof that the insured had the seed, 
chemicals and other materials available to plant and produce a crop 
with the expectation of at least producing the production guarantee 
may be required.);
* * * * *
    5. Section 457.113 is amended by revising paragraph 
13.(d)(3)(iv)(C) to read as follows:


Sec. 457.113  Coarse Grains Crop Insurance Provisions.

* * * * *

13. Late Planting and Prevented Planting

* * * * *
    (d) * * *
    (3) * * *
    (iv) * * *
    (C) Land used for conservation purposes or intended to be left 
unplanted under any program administered by the United States 
Department of Agriculture (Proof that the insured had the seed, 
chemicals and other materials available to plant and produce a crop 
with the expectation of at least producing the production guarantee 
may be required.);
* * * * *
    Done in Washington, D.C., on June 29, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-16583 Filed 7-10-95; 10:33 am]
BILLING CODE 3410-08-P