[Federal Register Volume 63, Number 206 (Monday, October 26, 1998)]
[Rules and Regulations]
[Pages 57046-57047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28541]


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DEPARTMENT OF AGRICULTURE

7 CFR Part 457

RIN 0563-AB65


Common Crop Insurance Regulations, Nursery Crop Insurance 
Provisions; Correction

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule; correction.

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SUMMARY: This document contains corrections to the final rule that was 
published in the Federal Register on Thursday, September 24, 1998 (63 
FR 50965-50979). The rule pertains to the insurance of nursery crops.

EFFECTIVE DATE: October 23, 1998.

FOR FURTHER INFORMATION CONTACT: Vondie O'Conner, Director, Research 
and Evaluation Division, Federal Crop Insurance Corporation, United 
States Department of Agriculture, 9435 Holmes Road, Kansas City, MO 
64131, telephone (816) 926-6343.

SUPPLEMENTARY INFORMATION:

Background

    The final rule that is the subject of this correction was intended 
to provide policy changes to better meet the needs of the insured.

Need For Correction

    As published, the final regulation contains errors which may prove 
misleading.
    Section 6(h) indicates that an insured electing catastrophic 
insurance coverage may obtain a written agreement, but such agreements 
are prohibited by section 11 of the Catastrophic Risk Protection 
Endorsement. Even though the Catastrophic Risk Protection Endorsement 
would govern the crop provisions, FCIC does not want to mislead growers 
into believing such an agreement would be obtainable. Instead, FCIC may 
provide a waiver on a case-by-case basis if the insured presents 
acceptable records to prove actual inventory value if the section 6(h) 
restrictions cause the insured to undervalue inventory.
    Section 7(a) of the Nursery Crop Provisions concerning premium 
calculation states that it is in lieu of section 7(a) of the Basic 
Provisions when the correct citation is section 7(c).
    In section 15, the single unit example had the wrong mathematical 
symbol in two locations. In step one the multiplication symbol should 
have been the symbol for division. In step two, the multiplication 
symbol should have been the symbol for subtraction. In the multiple 
unit multiple loss example, the numbers in the second step one are 
incorrect. $66,400 should be divided by $83,000 to equal .80.
    Section 5(a) of the Nursery Peak Inventory Endorsement contained in 
Sec. 457.163 refers to the ``coverage term.'' This is a clerical error 
that should refer to ``premium rate.'' Section 5(a) also refers to a 
``proration factor'' but should refer to ``a premium adjustment 
factor.''

Correction of Publication

    Accordingly, the publication on September 24, 1998, of the final 
regulation at 63 FR 50965-50979 is corrected as follows:

PART 457--[CORRECTED]


Sec. 457.162  [Corrected]

    On page 50977, in the first column, in Sec. 457.162, section 6(h) 
of the crop provisions is corrected to read as follows:

    For catastrophic insurance coverage only: (1) Your plant 
inventory value report for container grown nursery plants cannot 
exceed the lesser of the actual value from section 6(e) or 150 
percent of your previous year's sales of container grown nursery 
plants; (2) Your plant inventory value report for field grown 
nursery plants cannot exceed the lesser of the actual value from 
section 6(e) or 250 percent of your previous years' sale of field 
grown nursery plants, and if the above restrictions cause you to 
under report the value of your inventory, you must present records 
acceptable to us to prove your actual inventory value to receive a 
waiver of these restrictions.

    On page 50977, in the first column, in Sec. 457.162, section 7(a) 
is corrected to read as follows:


[[Page 57047]]


    In lieu of section 7(c) of the Basic Provisions, we will 
determine your premium by multiplying the amount of insurance by the 
appropriate premium rate and by the premium adjustment factors 
listed on the actuarial documents that may apply.

    On page 50978, in the first and second columns, in Sec. 457.162, 
section 15 of the crop provisions, the single unit example, steps one 
and two, are corrected to read as follows:

``Step (1)  Determine the under report factor
    $100,000  $125,000 =.80;
Step (2)  Field market value A minus field market value B
    $125,000 - $80,000 = $45,000;

    On page 50978, in the third column, in Sec. 457.162, section 15, 
the multiple unit multiple loss example, the second step one, is 
corrected to read as follows:

Step (1)  Determine the under report factor
    $66,400  $83,000 =.80;''


Sec. 457.163  [Corrected]

    On page 50979, in the second column, in Sec. 457.163, section 5(a) 
of the endorsement is corrected to read as follows:

    The premium for this endorsement is determined by multiplying 
the peak amount of insurance by the appropriate premium rate and by 
any premium adjustment factors listed on the actuarial documents 
that may apply.

    Signed in Washington DC, on October 19, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-28541 Filed 10-23-98; 8:45 am]
BILLING CODE 3410-08-P