[Federal Register Volume 63, Number 188 (Tuesday, September 29, 1998)]
[Notices]
[Pages 51890-51891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26023]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation


Crop Insurance Pilot Program

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Notice; Request for Comments.

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SUMMARY: This notice announces a public comment period on developing a 
new pilot program that would indemnify crop losses that result due to 
scab problems in the Northern Plains area of the United States in 
conjunction with the Federal crop insurance program. This action is 
necessary to address the scab problems in the Northern Plains. It is 
intended to ensure that producers have an adequate risk management tool 
for handling this disease.

DATES: Submit comments on or before October 29, 1998.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Federal Crop Insurance 
Corporation, United States Department of Agriculture, 9435 Holmes Road, 
Kansas City, Mo 64131. A copy of each response will be available for 
public inspection and copying from 7 a.m. to 4:30 p.m., CDT, Monday 
through Friday, except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Development Division, Federal Crop Insurance Corporation, at the Kansas 
City, Mo., address listed above, telephone (816) 926-7387.

SUPPLEMENTARY INFORMATION: Section 193(b) of the Federal Agriculture 
Improvement and Reform Act of 1996 (1996 Act) authorizes the Secretary 
of Agriculture to develop and administer a pilot program for crop 
insurance coverage that indemnifies crop losses due to a natural 
disaster such as insect infestation or disease. This section also 
requires the pilot program to be actuarially sound, as determined by 
the Secretary of Agriculture and administered at no net cost. The pilot 
can last no more than two years.
    Some interested parties, including producer groups, have indicated 
that the scab problems in the Northern Plains may require a unique 
approach to ensure that producers have an adequate risk management tool 
for handling this disease. The scab problems have lowered small grains 
grade qualities for wheat and barley in this region. The current small 
grains crop insurance provisions, 7 CFR 457. 101, section 11(b) allow 
for quality adjustment of barley and wheat only when barley or wheat 
production grades U.S. No. 5 or worse. In some instances, barley and 
wheat damaged by scab do not meet this threshold, yet some price 
reduction is incurred by the producer in the marketing of such grain.
    FCIC is soliciting comments concerning development of a pilot 
program for addressing scab problems in the Northern Plains. FCIC 
encourages and welcomes any proposals, recommendations, options, 
concerns, or other comments the public may have with respect to the 
development of such a pilot program. Parties affected by any pilot 
program resulting from this notice will include producers, grain 
elevators, insurance companies reinsured by FCIC, and insurance agents.


[[Page 51891]]


    Signed in Washington, DC, on September 23, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-26023 Filed 9-28-98; 8:45 am]
BILLING CODE 3410-08-P