[Federal Register Volume 64, Number 244 (Tuesday, December 21, 1999)]
[Rules and Regulations]
[Pages 71270-71271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32955]


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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, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes 
specific provisions that 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. The changes 
will be effective for the 2001 and subsequent crop years.

EFFECTIVE DATE: This rule is effective January 20, 2000.

FOR FURTHER INFORMATION CONTACT: Rob Coultis, Insurance Management 
Specialist, Research and Development, Product Development Division, 
Federal Crop Insurance Corporation, United States Department of 
Agriculture, 9435 Holmes Road, Kansas City, MO, 64131, telephone (816) 
926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be exempt for the purposes of 
Executive Order No. 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (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 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 13132

    The policies contained in this rule do not have any substantial 
direct effect on states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with the states is not required.

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

[[Page 71271]]

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.

National Performance Review

    This regulatory action is being taken as part of the National 
Performance Review Initiative to eliminate unnecessary or duplicate 
regulations and improve those that remain in force.

Background

    On Friday, July 30, 1999, FCIC published a notice of proposed 
rulemaking in the Federal Register at 64 FR 41336-41338 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.
    Following publication of the proposed rule on July 30, 1999, the 
public was afforded 60 days to submit written comments and opinions. No 
comments were submitted.
    FCIC has made the following changes to the provisions contained in 
the proposed rule:
    1. Section 8--Corrected section reference numbers in loss 
calculation steps. References should have been to section 8 rather than 
section 9.
    2. Section 9--Clarified that provisions did not extend the period 
for which insurance was available.
    The notice of proposed rulemaking indicated the amendments would be 
effective for the 2000 crop year. However, after publication of the 
proposed rule, FCIC determined there was an insufficient amount of time 
to implement the changes for the 2000 crop year. Therefore, the 
amendments will be effective for the 2001 and subsequent crop years.

List of Subjects in 7 CFR Part 457

    Crop insurance, certified seed potatoes.

Final Rule

    For the reasons stated in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR part 457, effective for the 2001 and 
succeeding crop years, 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;
    b. Revise sections 5, 8 and 9 of the endorsement; and
    c. Add new sections 10 and 11 to the endorsement to read as 
follows:


Sec. 457.145  Potato crop insurance--certified seed endorsement.

    The potato Certified Seed Endorsement provisions for the 2001 and 
succeeding crop years are as follows:
* * * * *
    5. Your certified seed production guarantee per-acre will be the 
per-acre 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 8(a) by the dollar amount 
per hundredweight contained in the Special Provisions for production 
covered under this endorsement;
    (c) Totaling the results of section 8(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 8(d) from the result of 
section 8(c); and
    (f) Multiplying the result of section 8(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. Nothing 
herein extends the insurance period beyond the time period specified in 
section 8 of the Northern Potato Crop Provisions and section 11 of the 
Basic Provisions.
    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) under your Northern Potato Crop Insurance 
Policy 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 (00100 and 00200) under your Northern Potato Crop 
Insurance Policy 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, D.C., on December 15, 1999.
Robert J. Prchal
Deputy Administrator, Insurance Services, Federal Crop Insurance 
Corporation.
[FR Doc. 99-32955 Filed 12-20-99; 8:45 am]
BILLING CODE 3410-08-P