[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Rules and Regulations]
[Pages 6703-6705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3329]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 30 / Thursday, February 13, 1997 / 
Rules and Regulations  

[[Page 6703]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB53


Common Crop Insurance Regulations; ELS Cotton Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes 
specific crop provisions for the insurance of extra long staple (ELS) 
cotton. The intended effect of this action is to provide policy changes 
to better meet the needs of the insured.

DATES: Effective: March 17, 1997.

FOR FURTHER INFORMATION CONTACT: Stephen Hoy, Program Analyst, Research 
and Development Division, Product Development Branch, Federal Crop 
Insurance Corporation, at 9435 Holmes Road, Kansas City, MO 64131, 
telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

    The Office of Management and Budget (OMB) has determined this rule 
to be not significant for the purposes of Executive Order No. 12866 
and, therefore, this rule has not been reviewed by the Office of 
Management and Budget (OMB).

Paperwork Reduction Act of 1995

    The information collection requirements contained in these 
regulations were previously approved by OMB pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35) under OMB control number 
0563-0003 at the proposed final rule stage.
    The amendments set forth in this final rule contains information 
collections that have been cleared by OMB under the provisions of 44 
U.S.C. chapter 35.
    Following publication of the proposed rule, the public was afforded 
60 days to submit written comments, data, and opinions on information 
collection requirements previously approved by OMB under OMB control 
number 0563-0003 through September 30, 1998. No public comments were 
received.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform of 1995 (UMRA), Pub. L. 
104-4, 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 the UMRA) for 
State, local, and tribal governments or the private sector. Thus, this 
rule is not subject to the requirements of section 202 and 205 of the 
UMRA.

Executive Order No. 12612

    It has been determined under section 6(a) of Executive Order No. 
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 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. Under 
the current regulations, a producer is required to complete an 
application and acreage report. If the crop is damaged or destroyed, 
the insured is required to give notice of loss and provide the 
necessary information to complete a claim for indemnity.
    The insured must also annually certify to the previous years 
production or receive an assigned yield. The producer must maintain the 
production records to support the certified information for at least 
three years. This regulation does not alter those requirements. The 
amount of work required of the insurance companies delivering and 
servicing these policies will not increase significantly from the 
amount of work currently required. This rule does not have any greater 
or lesser impact on the producer. 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 No. 12372

    This program is not subject to the provisions of Executive Order 
No. 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.

Executive Order No. 12778

    The Office of the General Counsel has determined that these 
regulations meet the applicable standards provided in sections 2(a) and 
2(b)(2) of Executive Order No. 12778. The provisions of this rule will 
not have a retroactive effect prior to the effective date. 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 
action for judicial review may be brought.

Environmental Evaluation

    This action is not expected to have a significant impact on the 
quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

National Performance Review

    This regulatory action is being taken as part of the National 
Performance Review Initiative to eliminate unnecessary or duplicative 
regulations and improve those that remain in force.

Background

    On Tuesday, August 27, 1996, FCIC published a proposed rule in the 
Federal Register at FR 43999-44001 to amend the Common Crop Insurance 
Regulations (7 CFR part 457) by revising

[[Page 6704]]

7 CFR 457.105 effective for the 1997 and succeeding crop years.
    Following publication of that proposed rule, the public was 
afforded 30 days to submit written comments, data, and opinions. A 
total of three comments were received from the crop insurance industry. 
The comments received and FCIC's responses are as follows:
    Comment: Three comments received recommended that the written 
agreement should be continuous. One commenter recommended that written 
agreements be continuous if no substantive changes occur from one year 
to the next. Two commenters recommended that the valid period be stated 
in the agreement.
    Response: Written agreements are, by design, temporary and intended 
to address unusual circumstances. If the condition for which a written 
agreement is needed exists each crop year, the policy or Special 
Provisions should be amended to reflect this condition. No change has 
been made to these provisions.
    The contract change date for the 1997 crop year was November 30, 
1996. These provisions are, therefore, not applicable until the 1998 
crop year.

List of Subjects in 7 CFR Part 457

    Crop insurance, ELS cotton.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation hereby amends 7 CFR part 457, effective for the 
1998 and succeeding crop years, to read as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1994 AND SUBSEQUENT CONTRACT YEARS

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

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

    2. Section 457.105, in paragraph 1. Definitions,  paragraphs (j), 
(o)(2), and (q) are revised to read as follows:


Sec. 457.105  Extra long staple cotton crop insurance provisions.

* * * * *
    1. Definitions.
* * * * *
    (j) Planted acreage--Land in which seed has been placed by a 
machine appropriate for the insured crop and planting method, at the 
correct depth, into a seedbed which has been properly prepared for the 
planting method and production practice. Cotton must be planted in rows 
to be considered planted. Planting in any other manner will be 
considered as a failure to follow recognized good farming practices and 
any loss of production will not be insured unless otherwise provided by 
the Special Provisions or by written agreement to insure such crop. The 
yield conversion factor normally applied to non-irrigated skip-row 
cotton acreage will not be used if the land between the rows of cotton 
is planted to any other spring planted crop.
* * * * *
    (o) * * *
    (1) * * *
    (2) Qualifies as a skip-row planting pattern as defined by the Farm 
Service Agency (FSA) or a successor agency.
* * * * *
    (q) Written agreement--A written document that alters designated 
terms of a policy in accordance with section 13.
* * * * *
    2. Section 457.105 in paragraph 2. Unit Division, paragraph (d)(1) 
and the first paragraph of (d)(2) are revised to read as follows:
    2. Unit Division.
* * * * *
    (d) * * *
    (1) Optional Units by Section, Section Equivalent, or FSA Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate legally identified Section. In the absence of 
Sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to: Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands an 
equivalent of Sections for unit purposes. In areas which have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single FSA Farm Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to, or instead of, establishing 
optional units by section, section equivalent, or FSA Farm Serial 
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same section, section 
equivalent, or FSA Farm Serial Number. To qualify as separate irrigated 
and non-irrigated optional units, the non-irrigated acreage may not 
continue into the irrigated acreage in the same rows or planting 
pattern. The irrigated acreage may not extend beyond the point at which 
the irrigation system can deliver the quantity of water needed to 
produce the yield on which the guarantee is based, except that the 
corners of a field in which a center-pivot irrigation system is used 
will be considered as irrigated acreage if separate acceptable records 
of production from the corners are not provided. If the corners of a 
field in which a center-pivot irrigation system is used do not qualify 
as a separate non-irrigated optional unit, they will be considered part 
of the unit containing the irrigated acreage. However, non-irrigated 
acreage that is not a part of a field in which a center-pivot 
irrigation system is used may qualify as a separate optional unit 
provided that all other requirements of this section are met.
* * * * *
    3. Section 457.105 paragraph 5. Cancellation and Termination Dates 
is revised to read as follows:
    5. Cancellation and Termination Dates.
    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Common Crop Insurance Policy (Sec. 457.8), the 
cancellation and termination dates are:

------------------------------------------------------------------------
                                            Cancellation and termination
                  States                                dates           
------------------------------------------------------------------------
New Mexico................................  March 15.                   
All other States..........................  Feb. 28.                    
------------------------------------------------------------------------

* * * * *
    8. Section 457.105 is amended by adding a new paragraph 13 to read 
as follows:
    13. Written Agreement.
    Designated terms of this policy may be altered by written 
agreement. The following conditions will apply:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date, except as provided in section 13(e).
    (b) The application for written agreement must contain all terms of 
the contract between the insurance provider and the insured that will 
be in effect if the written agreement is not approved.
    (c) If approved, the written agreement must include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election.
    (d) Each written agreement will only be valid for one year. If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy.
    (e) An application for written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has occurred and the crop is 
insurable in accordance

[[Page 6705]]

with the policy and written agreement provisions.

    Signed in Washington DC, on February 6, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-3329 Filed 2-12-97; 8:45 am]
BILLING CODE 3410-FA-P