[Federal Register Volume 64, Number 120 (Wednesday, June 23, 1999)]
[Notices]
[Pages 33456-33457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15922]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
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  Federal Register / Vol. 64, No. 120 / Wednesday, June 23, 1999 / 
Notices  

[[Page 33456]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation


Crop Revenue Coverage

ACTION: Notice of availability.

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SUMMARY: In accordance with section 508(h) of the Federal Crop 
Insurance Act (Act), the Federal Crop Insurance Corporation (FCIC) 
Board of Directors (Board) approved for reinsurance and subsidy the 
insurance of wheat in select states and counties under the Crop Revenue 
Coverage (CRC) plan of insurance submitted by American Agrisurance 
(AmAg). This notice is intended to inform eligible producers and the 
private insurance industry of the coverage changes for durum wheat 
under CRC, for the 2000 crop year.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Development Division, Federal Crop Insurance Corporation, United States 
Department of Agriculture, 9435 Holmes Road, Kansas City, Missouri 
64131, telephone (816) 926-7387.

SUPPLEMENTARY INFORMATION: Section 508(h) of the Act allows the 
submission of a policy to FCIC's Board and authorizes the Board to 
review and, if the Board finds that the interests of producers are 
adequately protected and any premiums charged to the producers are 
actuarially appropriate, approve the policy for reinsurance and subsidy 
in accordance with section 508(e) of the Act.
    In accordance with section 508(h) of the Act, the Board approved a 
program of insurance known as CRC, originally submitted by AmAg, a 
managing general agency for Redland Insurance Company. All terms and 
conditions of the policy and all premium rates are determined by AmAg. 
FCIC does not have the authority to modify or waive any terms or 
conditions. FCIC only has the authority to approve or disapprove the 
terms and conditions submitted by AmAg.
    The CRC program has been approved for reinsurance and premium 
subsidy, including subsidy for administrative and operating expenses. 
CRC is designed to protect producers against both price and yield 
losses.
    Beginning with the 1999 crop year, producers could select 95 or 100 
percent of the average daily settlement price and a separate price for 
durum wheat.
    AmAg has requested the following changes for durum wheat for the 
2000 crop year: (1) To only offer producers 100 percent of the average 
daily settlement price rather than a choice of 95 or 100 percent; (2) 
to cap the durum base price basis premium to $1.00 for Arizona and 
California; and (3) to remove the northern durum Base Price and Harvest 
Price from the Commodity Exchange Endorsement pending further review 
and evaluation by the company.
    FCIC herewith gives notice that this Commodity Exchange Endorsement 
for wheat replaces the Commodity Exchange Endorsement published in the 
Federal Register at 63 FR 37845-37847 for CRC wheat for use by private 
insurance companies.
    The CRC Commodity Exchange Endorsement and underwriting rules for 
wheat will be released electronically to all reinsured companies 
through FCIC's Reporting Organization Server.

Notice

    The Commodity Exchange Endorsement for the 2000 CRC winter wheat 
program of insurance is as follows.

Crop Revenue Coverage
Commodity Exchange Endorsement

CROP REVENUE COVERAGE

Mandatory Actuarial Document Endorsement

COMMODITY EXCHANGE ENDORSEMENT--WHEAT

(This is a Continuous Endorsement)

    If a conflict exists among the policy provisions, the order of 
priority is as follows: (1) The Special Provisions; (2) this 
Commodity Exchange Endorsement; (3) the Crop Provisions; and (4) the 
Basic Provisions, with (1) controlling (2), etc.
    How this endorsement affects your coverage:
    (I) This endorsement is attached to and made a part of your Crop 
Revenue Coverage (CRC) Wheat crop policy provisions and actuarial 
documents, subject to the terms and conditions described herein.
    (II) This endorsement specifies how, where, and when commodity 
prices for your CRC Wheat policy are determined.
    (III) In lieu of section 4(c) of the Basic Provisions, you may 
only select 100 percent of Base Price and Harvest Price.
    (IV) This endorsement defines the Average Daily Settlement 
Price, as used in the Base Price and Harvest Price, as--The average 
calculated by totaling all the daily settlement prices for the 
contract specified in the applicable Base Price or Harvest Price 
definition (established on full active trading days), during the 
month specified in the applicable Base Price or Harvest Price 
definition, and dividing that sum by the total number of days 
included in the total. The average must include at least fifteen 
(15) days and each day included in the average must be a full active 
trading day for the contract specified in the applicable Base Price 
or Harvest Price definition. A full active trading day is any day on 
which there are fifty (50) or more open interest contracts of the 
contract specified in the Base Price or Harvest Price definition. If 
there are less than fifteen (15) full active trading days for the 
contract specified in the applicable Base Price or Harvest Price 
definition, during the month specified in the applicable Base Price 
or Harvest Price definition, then additional daily settlement 
prices, established on full active trading days, for the contract 
immediately prior to the contract specified in the applicable Base 
Price or Harvest Price definition, during the month specified in the 
applicable Base Price or Harvest Price definition, will be used 
until there are fifteen (15) prices from fifteen (15) full active 
trading days included in the average.
    (V) This endorsement defines the Base Price and Harvest Price as 
shown in Section 1 of the Crop Revenue Coverage Basic Provisions by 
wheat type and state as follows:

Winter Wheat--(Insured as Winter Wheat), Chicago Board of Trade 
(CBOT)

Illinois, Indiana, Michigan, Ohio, and Wisconsin

    Base Price (CBOT)--The August 15 to September 14 pre-harvest 
year's average daily settlement price for the harvest year's CBOT 
July soft red winter wheat futures contract rounded to the nearest 
whole cent. The Base Price will be released as an actuarial document 
addendum by September 20 of the pre-harvest year.
    Harvest Price (CBOT)--The July 15 to August 14 harvest year's 
average daily settlement price for the harvest year's CBOT September 
soft red winter wheat futures contract rounded to the nearest whole 
cent. The Harvest Price cannot be less than the Base Price minus two 
dollars ($2.00), or greater than the Base Price plus two dollars 
($2.00). The Harvest Price will be released as an actuarial document 
addendum by August 20 of the harvest year.

[[Page 33457]]

Winter Wheat--(Insured as Winter Wheat), (CBOT)

Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, 
South Carolina, Tennessee, and Virginia

    Base Price (CBOT)--The August 15 to September 14 pre-harvest 
year's average daily settlement price for the harvest year's CBOT 
July soft red winter wheat futures contract rounded to the nearest 
whole cent. The Base Price will be released as an actuarial document 
addendum by September 20 of the pre-harvest year.
    Harvest Price (CBOT)--The June harvest year's average daily 
settlement price for the harvest year's CBOT July soft red winter 
wheat futures contract rounded to the nearest whole cent. The 
Harvest Price cannot be less than the Base Price minus two dollars 
($2.00), or greater than the Base Price plus two dollars ($2.00). 
The Harvest Price will be released as an actuarial document addendum 
by July 10 of the harvest year.

Winter Wheat--(Insured as Winter Wheat), Kansas City Board of Trade 
(KCBOT)

Iowa, Montana, Nebraska, South Dakota, and Wyoming

    Base Price (KCBOT)--The August 15 to September 14 pre-harvest 
year's average daily settlement price for the harvest year's KCBOT 
July hard red winter wheat futures contract rounded to the nearest 
whole cent. The Base Price will be released as an actuarial document 
addendum by September 20 of the pre-harvest year.
    Harvest Price (KCBOT)--The July 15 to August 14 harvest year's 
average daily settlement price for the harvest year's KCBOT 
September hard red winter wheat futures contract rounded to the 
nearest whole cent. The Harvest Price cannot be less than the Base 
Price minus two dollars ($2.00), or greater than the Base Price plus 
two dollars ($2.00). The Harvest Price will be released as an 
actuarial document addendum by August 20 of the harvest year.

Winter Wheat--(Insured as Winter Wheat), (KCBOT)

Arizona, Arkansas, Colorado, Kansas, Missouri, New Mexico, Oklahoma, 
and Texas

    Base Price (KCBOT)--The August 15 to September 14 pre-harvest 
year's average daily settlement price for the harvest year's KCBOT 
July hard red winter wheat futures contract rounded to the nearest 
whole cent. The Base Price will be released as an actuarial document 
addendum by September 20 of the pre-harvest year.
    Harvest Price (KCBOT)--The June harvest year's average daily 
settlement price for the harvest year's KCBOT July hard red winter 
wheat futures contract rounded to the nearest whole cent. The 
Harvest Price cannot be less than the Base Price minus two dollars 
($2.00), or greater than the Base Price plus two dollars ($2.00). 
The Harvest Price will be released as an actuarial document addendum 
by July 10 of the harvest year.

Spring Wheat--(Insured as Spring Wheat in counties with a 3/15 
Cancellation Date), Minneapolis Grain Exchange (MGE)

Colorado, Iowa, Minnesota, Montana, North Dakota, South Dakota, 
Wisconsin, and Wyoming

    Base Price (MGE)--The February harvest year's average daily 
settlement price for the harvest year's MGE September hard red 
spring wheat futures contract rounded to the nearest whole cent. The 
Base Price will be released as an actuarial document addendum by 
March 10 of the harvest year.
    Harvest Price (MGE)--The August harvest year's average daily 
settlement price for the harvest year's MGE September hard red 
spring wheat futures contract rounded to the nearest whole cent. The 
Harvest Price cannot be less than the Base Price minus two dollars 
($2.00), or greater than the Base Price plus two dollars ($2.00). 
The Harvest Price will be released as an actuarial document addendum 
by September 10 of the harvest year.

Spring Wheat--(Insured as spring wheat in counties with a 9/30 
cancellation date), (KCBOT/MGE)

Colorado, Iowa, Montana, South Dakota and Wyoming

    Base Price (KCBOT)--The August 15 to September 14 pre-harvest 
year's average daily settlement price for the harvest year's KCBOT 
July hard red winter wheat futures contract rounded to the nearest 
whole cent. The Base Price will be released as an actuarial document 
addendum by September 20 of the pre-harvest year.
    Harvest Price (MGE)--The August harvest year's average daily 
settlement price for the harvest year's MGE September hard red 
spring wheat futures contract rounded to the nearest whole cent. The 
Harvest Price cannot be less than the Base Price minus two dollars 
($2.00), or greater than the Base Price plus two dollars ($2.00). 
The Harvest Price will be released as an actuarial document addendum 
by September 10 of the harvest year.

Wheat--Portland Grain Exchange (PGE)

California, Idaho, Oregon, Utah, and Washington

    Base Price (PGE)--The Portland Price equals the August 15 to 
September 14 pre-harvest year's average daily settlement price for 
the harvest year's CBOT September soft red winter wheat futures 
contract (rounded to the nearest whole cent) plus an adjustment 
equal to the current five-year average difference between the August 
average daily settlement price for the nearby CBOT September soft 
red winter wheat futures contract (rounded to the nearest whole 
cent) and the August average daily settlement price for the PGE soft 
white wheat contract (rounded to the nearest whole cent). The Base 
Price will be released as an actuarial document addendum by 
September 20 of the pre-harvest year.
    Harvest Price (PGE)--The August harvest year's average daily 
settlement price for the PGE soft white wheat contract rounded to 
the nearest whole cent. The Harvest Price cannot be less than the 
Base Price minus two dollars ($2.00), or greater than the Base Price 
plus two dollars ($2.00). The Harvest Price will be released as an 
actuarial document addendum by September 10 of the harvest year.

Durum Wheat--(Insured as durum wheat in counties with a 10/31 
cancellation date), (MGE)

Arizona and California

    Base Price (MGE)--The Southern Durum Price equals the September 
15 to October 14 pre-harvest year's average daily settlement price 
for the harvest year's CBOT September soft red winter wheat futures 
contract (rounded to the nearest whole cent) plus an adjustment 
equal to the average of the current year nearby basis, determined 
during the months of May, June, July and August of the current crop 
year, and the current five-year average difference between the 
August average daily settlement price for top milling durum wheat as 
reported by the MGE (rounded to the nearest whole cent) and the 
August average daily settlement price for the nearby CBOT September 
soft red winter wheat futures contract (rounded to the nearest whole 
cent) not to exceed $1.00. During the months of May and June the 
nearby futures contract used to determine the current year nearby 
basis for top milling durum wheat will be the July contract. During 
the months of July and August the nearby futures contract used to 
determine the current year nearby basis for top milling durum wheat 
will be the September contract. The Base Price will be released as 
an actuarial document addendum by October 20 of the pre-harvest 
year.
    Harvest Price (MGE)--The August harvest year's average daily 
settlement price for top milling durum wheat as reported by the MGE 
rounded to the nearest whole cent. The Harvest Price cannot be less 
than the Base Price minus two dollars ($2.00), or greater than the 
Base Price plus two dollars ($2.00). The Harvest Price will be 
released as an actuarial document addendum by September 10 of the 
harvest year.
    All other terms and conditions of the Policy remain unchanged.

    Signed in Washington, DC, on June 16, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-15922 Filed 6-22-99; 8:45 am]
BILLING CODE 3410-08-P