[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Rules and Regulations]
[Pages 7133-7135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3847]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / 
Rules and Regulations  

[[Page 7133]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB53


Common Crop Insurance Regulations; 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 cotton. The intended 
effect of this action is to provide policy changes to better meet the 
needs of the insured.

EFFECTIVE DATES: March 20, 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 exempt for the purposes of Executive Order No. 12866 and, 
therefore, this rule has not been reviewed by 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 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), Public Law 
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 3 
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, September 3, 1996, FCIC published a proposed rule in 
the Federal Register at FR 46401-46403 to amend the Common Crop 
Insurance Regulations (7 CFR part 457) by revising 7 CFR 457.104 
effective for the 1997 and succeeding crop years.

[[Page 7134]]

    Following publication of that proposed rule, the public was 
afforded 30 days to submit written comments, data, and opinions. One 
comment was received from the crop insurance industry. The comment 
received and FCIC's response are as follows:
    Comment: One comment recommended that written agreements should be 
continuous and the valid period be stated in the wording of 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.
    FCIC has made the following changes to the Cotton Provisions:
    Section 2(d)(2)--Corrected the provisions regarding center pivot 
irrigation systems. Language in the proposed rule stated ``* * * that 
the corners of a field in which a center-pivot irrigation system is 
used will be considered as irrigated acreage unless separate acceptable 
records of production from the corners are provided indicating 
otherwise.'' This provision should have read ``* * * 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.'' This clarification 
makes the wording consistent with other crop provisions.
    The contract change date for the 1997 crop year was November 30, 
1996. It is, therefore, too late to make this rule effective for the 
1997 crop year. The rule will be effective for the 1998 crop year.

List of Subjects in 7 CFR Part 457

    Crop insurance, 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, 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 457.104, paragraph 1. Definitions (l), (q)(2) and (s) 
are revised to read as follows:


Sec. 457.104  Cotton crop insurance provisions.

* * * * *
1. Definitions.
* * * * *
    (l) 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.
* * * * *
    (q) * * *
    (l) * * *
    (2) Qualifies as a skip-row planting pattern as defined by the 
Farm Service Agency (FSA) or a successor agency.
* * * * *
    (s) Written agreement--A written document that alters designated 
terms of a policy in accordance with section 13.
* * * * *
    2. Section 457.104 in paragraph 2. Unit Division (d)(1) and the 
first paragraph in (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 457.104 paragraph 5. Cancellation and Terminations 
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    
               State and county                     termination dates   
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,       January 15.             
 Wilson, Karnes, Goliad, Victoria, and Jackson                          
 Counties, Texas, and all Texas counties lying                          
 south thereof.                                                         
Alabama; Arizona; Arkansas; California;         February 28.            
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina; El                             
 Paso, Hudspeth, Culberson, Reeves, Loving,                             
 Winkler, Ector, Upton, Reagon, Sterling,                               
 Coke, Tom Green, Concho, McCulloch, San Saba,                          
 Mills, Hamilton, Bosque, Johnson, Tarrant,                             
 Wise, and Cooke Counties, Texas, and all                               
 Texas counties lying south and east thereof                            
 to and including Terrell, Crocket, Sutton,                             
 Kimble, Gillespie, Blanco, Comal, Guadalupe,                           
 Gonzales, De Witt, Lavaca, Colorado, Wharton,                          
 Matagorda Counties, Texas..                                            
All other Texas counties and all other States.  March 15.               
------------------------------------------------------------------------


[[Page 7135]]

* * * * *
    4. Section 457.104 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 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. 97-3847 Filed 2-14-97; 8:45 am]
BILLING CODE 3410-FA-P