[Federal Register Volume 64, Number 146 (Friday, July 30, 1999)]
[Proposed Rules]
[Pages 41336-41338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19562]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Potato Crop Insurance 
Certified Seed Endorsement

AGENCY: Federal Crop Insurance Corporation.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby proposes 
to amend the Potato Crop Insurance Certified Seed Endorsement. The 
intended effect of this action is to improve the insurance coverage to 
better meet the needs of the insured.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business September 28, 1999 and will be 
considered when the rule is to be made final.

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. Comments may also be sent via the Internet to 
[email protected]. A copy of each response will be

[[Page 41337]]

available for public inspection and copying from 7:00 a.m. to 4:30 
p.m., CST, Monday through Friday, except holidays, at the above 
address.

FOR FURTHER INFORMATION CONTACT: For further information, contact Rob 
Coultis, Insurance Management Specialist, Research and Development, 
Product Development Division, Federal Crop Insurance Corporation, at 
the Kansas City, MO address listed above, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 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, has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    Under the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. chapter 35), the collections of information for this rule have 
been previously approved by the Office of Management and Budget (OMB) 
under control number 0563-0053 through April 30, 2001. The amendments 
set forth in this rule do not revise the content or alter the frequency 
of reporting for any of the forms or information collections cleared 
under the above-referenced docket.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 
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. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

Executive Order 12612

    It has been determined under section 6(a) of Executive Order 12612, 
Federalism, that this rule does not have sufficient federalism 
implication 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. 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. 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 12372

    This program is not subject to the provisions of Executive Order 
12372 which requires 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 12988

    This rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. 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 any action against FCIC 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.

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by revising 7 CFR 457.145, Potato Crop Insurance Certified 
Seed Endorsement, effective for the 2000 and succeeding crop years. The 
principal changes to the provisions for insuring seed potatoes are as 
follows:
    1. Paragraph 5--Clarify to indicate that the certified seed 
production guarantee per acre is the same as the per acre production 
guarantee used under the terms of the Northern Potato Crop Provisions. 
(Reductions for acreage increases above certain levels remain in 
place.)
    2. Paragraph 8--Revise the claim computation so that an indemnity 
can be paid when seed production meets the standards of the state in 
which it is grown, but the actual amount of production is lower than 
the production guarantee. Current provisions provide a payment only 
when production fails to meet applicable state standards for certified 
seed potatoes and do not take into account the actual amount of 
production from the insured acreage.
    3. Paragraph 9--Revise to include the notice requirements when 
production fails certification.
    4. A new paragraph 10 is added to specify that acreage covered 
under the revised endorsement will be insured using the same unit 
structure as is in place for the coverage provided under the Basic 
Provisions and the Northern Potato Crop Provisions. In the event 
certified seed acreage is not grown in the same optional or basic units 
as acreage covered under the Basic Provisions and the Northern Potato 
Crop Provisions, certified seed units will be established in accordance 
with the unit division provisions contained in the Basic Provisions and 
the Northern Potato Crop Provisions. Examples are provided for clarity.
    5. A new paragraph 11 is added and includes provisions regarding 
uninsured causes of loss that are currently contained in section 8.

List of Subjects in 7 CFR Part 457

    Crop insurance, Certified seed potatoes.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    2. Amend Sec. 457.145 as follows:
    a. Revise the introductory text and paragraph 5.
    b. Revise paragraph 8.
    c. Revise paragraph 9.
    d. Add a new paragraph 10.
    e. Add a new paragraph 11.
    g. The revisions and additions to Sec. 457.145 read as follows:


Sec. 457.145  Potato crop insurance Certified Seed Endorsement.

    The potato Certified Seed Endorsement provisions for the 2000 and 
succeeding crop years are as follows:
* * * * *
    5. Your certified seed production guarantee per-acre will be the 
per-acre

[[Page 41338]]

production guarantee used to cover the same acreage under the terms of 
the Northern Potato Crop Provisions. However, unless a written 
agreement provides otherwise, if the total amount of insurable 
certified seed acreage you have for the current crop year is greater 
than 125 percent of your average number of acres entered into and 
passing certification in the potato certified seed program in the three 
previous calendar years, your certified seed production guarantee for 
each unit will be reduced as follows:
* * * * *
    8. If, due to insurable causes occurring within the insurance 
period, the amount of certified seed you produce is less than your 
certified seed production guarantee, we will settle your claim by:
    (a) Multiplying the insured acreage by its respective certified 
seed production guarantee;
    (b) Multiplying each result in section 9(a) by the dollar amount 
per hundredweight contained in the Special Provisions for production 
covered under this endorsement;
    (c) Totaling the results of section 9(b);
    (d) Multiplying the number of hundredweight of production that 
qualify as certified seed and any amount of production lost due to 
uninsured causes, or that does not qualify as certified seed due to 
uninsured causes, by the dollar amount per hundredweight contained in 
the Special Provisions for production covered under this endorsement;
    (e) Subtracting the result of section 9(d) from the result of 
section 9(c); and
    (f) Multiplying the result of section 9(e) by your share.
    9. You must notify us of any loss under this endorsement not later 
than 14 days after you receive notice from the state certification 
agency that any acreage or production has failed certification.
    10. Acreage covered under the terms of this endorsement will have 
the same unit structure as provided under the Basic Provisions and the 
Northern Potato Crop Provisions. For example, if you have two optional 
units (00101 and 00102) for Northern Potato Crop coverage and you elect 
this endorsement, you will also have two optional units (00201 and 
00202) for certified seed coverage provided that certified seed is 
grown in both units 00101 and 00102. Or, if you have two basic units 
(0100 and 0200) for Northern Potato Crop coverage and you elect this 
endorsement, you will also have two basic units (00300 and 00400) for 
certified seed coverage provided that certified seed is grown in both 
units 00100 and 00200. In the event certified seed acreage is not grown 
in the same optional or basic units as acreage covered under the Basic 
Provisions and the Northern Potato Crop Provisions, certified seed 
units will be established in accordance with the unit division 
provisions contained in the Basic Provisions and the Northern Potato 
Crop Provisions. For example, if a basic unit is divided into two 
optional units for potato acreage covered under the Basic Provisions 
and the Northern Potato Crop Provisions, but certified seed is grown in 
only one of those optional units, the certified seed acreage will be 
insured as one basic unit.
    11. Any production that does not qualify as certified seed because 
of varietal mixing or your failure to follow the standard practices and 
procedures required for certification will be considered as lost due to 
uninsured causes.

    Signed in Washington, DC, on July 26, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-19562 Filed 7-29-99; 8:45 am]
BILLING CODE 3410-08-P