[Federal Register Volume 65, Number 26 (Tuesday, February 8, 2000)]
[Proposed Rules]
[Pages 6033-6040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2620]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / 
Proposed Rules  

[[Page 6033]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Fig, Pear, Walnut, Almond, 
Prune, Table Grape, Peach, Plum, Apple and Stonefruit Crop Insurance 
Provisions

AGENCY:  Federal Crop Insurance Corporation, USDA.

ACTION:  Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY:  The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Fig Crop Insurance Provisions, Pear Crop Insurance 
Provisions, Walnut Crop Insurance Provisions, Almond Crop Insurance 
Provisions, Prune Crop Insurance Provisions, Table Grape Crop Insurance 
Provisions, Peach Crop Insurance Provisions, Plum Crop Insurance 
Provisions, Apple Crop Insurance Provisions and Stonefruit Crop 
Insurance Provisions. The intended effect of this action is to provide 
policy changes to better meet the needs of the insureds.

DATES:  Written comments and opinions on this proposed rule will be 
accepted until close of business March 9, 2000 and will be considered 
when the rule is to be made final. The comment period for information 
collection under the Paperwork Reduction Act of 1995 continues through 
April 7, 2000.

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 relating to the Fig, Pear, Walnut, 
Almond, Prune, Table Grape, Peach, Plum, Apple and Stonefruit Crop 
Insurance Provisions may also be sent via the Internet to 
([email protected]). A copy of each response will be 
available for public inspection and copying from 7:00 a.m. to 4:30 
p.m., CDT, Monday through Friday except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT:  Gary Johnson, 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

    This rule has been determined to be exempt for the purpose of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

    In accordance with section 3507(j) of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501), the information collection and recordkeeping 
requirements included in the proposed rule have been submitted for 
approval to OMB. Please submit your written comments to the Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
RMA, Washington, D.C. 20503. A comment to OMB is best assured of having 
its full effect if OMB receives it within 30 days of publication of 
this proposed rule.
    We are soliciting comments from the public concerning our proposed 
information collection and recordkeeping requirements. We need this 
outside input to help us:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility;
    (2) Evaluate the accuracy of our estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond (such as through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission responses.)
    The collections of information for this rule revise the Multiple 
Peril Crop Insurance Collections of Information 0563-0053 which expires 
April 30, 2001.
    Title: Multiple Peril Crop Insurance (Fig, Pear, Walnut, Almond, 
Prune, Table Grape, Peach, Plum, Apple and Stonefruit).
    Abstract: This rule improves the existing Fig, Pear, Walnut, 
Almond, Prune, Table Grape, Peach, Plum, Apple and Stonefruit Crop 
Insurance Provisions. The Apple Crop Insurance Provisions are revised 
by allowing optional units and price elections by varietal group. The 
Fig, Pear, Walnut, Almond, Prune, Table Grape, Peach, Plum, Apple and 
Stonefruit Crop Insurance Provisions are revised by adding provisions 
to specify that the insured's elected or assigned coverage level or the 
ratio of the insured's price election to the maximum price election 
offered may not be increased and that each subsequent crop year 
coverage begins on the day immediately following the end of the 
insurance period for the prior crop year. The Almond and Walnut crop 
insurance provisions are revised by allowing insurance coverage for 
trees that have been grafted. The Almond crop insurance provisions are 
revised by deleting the word ``rejects'' from the definition of ``meat 
pounds.''
    Purpose: The purpose of this proposed rule is to clarify existing 
crop provisions, clarify the methodology for calculating losses, and 
provide additional coverage benefits to improve these risk management 
tools so they better meet the needs of producers in all regions of the 
country.
    Burden statement: The information FCIC collects on the specified 
forms will be used in offering crop insurance coverage, determining 
program eligibility, establishing a production guarantee or amount of 
insurance, calculating losses qualifying for a payment, etc. The burden 
hours may increase the information collection because of the 
possibility the number of claims may increase as a result of these 
changes.
    Estimate of Burden: We estimate it will take insured producers, a 
loss adjuster, and an insurance agent an average of .9 of an hour to 
provide the information required by the Fig, Pear, Walnut, Almond, 
Prune, Table Grape, Peach, Plum, Apple and Stonefruit Crop Insurance 
Provisions.

[[Page 6034]]

    Respondents: Insureds, insurance agents, and loss adjusters.
    Estimated annual number of respondents: 14,137.
    Estimated annual number of responses per respondents: 2.8.
    Estimated annual number of responses: 39,255.
    Estimated total annual burden of respondents: The total public 
burden for this proposed rule is estimated at 13,314 hours.
    Record keeping requirements: FCIC requires records to be kept for 
three years, but all records required by FCIC are retained as part of 
the normal business practice. However, these records are retained as 
part of the normal business practice and FCIC's requirement does not 
place additional burden on insured producers. Therefore, FCIC is not 
estimating additional burden related to record keeping requirement.
    Copies of this information collection can be obtained from 
Information Collection Clearance Office, OCIO, USDA, Room 404-W, 1400 
Independence Ave., S.W., Washington, D.C. 20250.

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

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the states. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Regulatory Flexibility Act

    This regulation will not have a significant economic 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. Under the current regulations, every producer is required to 
complete an application and acreage report. If the crop is damaged or 
destroyed, the insured is required to give notice of loss and provide 
the necessary information to complete a claim for indemnity. This 
regulation does not alter those requirements. 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 require 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 proposed 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 economic 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 amending the following Crop Insurance Provisions:
    1. 7 CFR 457.110 Fig Crop Insurance Provisions effective for the 
2001 and succeeding crop years. The changes to the provisions for 
insuring fig are as follows:
    a. Section 3--This section has been redesignated as section 3(a) 
and (b) to specify that the insured's elected or assigned coverage 
level or the ratio of the insured's price election to the maximum price 
election offered may not be increased after coverage begins if a cause 
of loss that could or would reduce the yield of the insured crop is 
evident prior to the time that change in coverage is requested. This 
change was made to preclude insureds with continuous coverage from 
increasing the liability on insured acreage following a cause of loss 
that could or would reduce the yield of the crop.
    b. Section 8(b)--Specify that for each subsequent crop year that 
the policy remains continuously in force, coverage begins on the day 
immediately following the end of the insurance period for the prior 
crop year. This provision provides for fig year round coverage. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage. This rule proposes to eliminate any lapse 
in insurance coverage between crop years.
    c. Section 8(c)--Clarify that if the insured's policy is canceled 
or terminated for any crop year after insurance attached for that crop 
year, insurance will not be considered to have attached for that crop 
year and no premium, administrative fee, or indemnity will be due for 
such crop year. This change is needed to avoid premium and 
administrative fees for canceled or terminated coverage because 
insurance will have attached before the last day a policy can be 
canceled or terminated.
    2. FCIC proposes to amend the Common Crop Insurance Regulations (7 
CFR part 457) by amending 457.111 Pear, 457.133 Prune, 457.149 Table 
Grape, 457.153 Peach, 457.157 Plum and 457.159 Stonefruit Crop 
Insurance Provisions, effective for the 2001 and succeeding crop years. 
The changes are as follows:
    a. Section 1--Peach--Add definition for ``marketable'' for 
clarification.
    b. Section 2--Peach and section 3--Table Grape, Pear, Plum, Prune 
and Stonefruit--Specify that the insured's elected or assigned coverage 
level or the ratio of the insured's price election to the maximum price 
election offered may not be increased after coverage begins if a cause 
of loss that could or would reduce the yield of the insured crop is 
evident prior to the time that change in coverage is requested. This 
change was made to preclude insureds with continuous coverage from 
increasing the liability on insured acreage following a cause of loss 
that could or will reduce the yield of the crop.

[[Page 6035]]

    c. Section 7 for Peach, section 8 for Pear, Plum, Prune and 
Stonefruit, and section 9 for Table Grape--Specify that for each 
subsequent crop year that the policy remains continuously in force, 
coverage begins on the day immediately following the end of the 
insurance period for the prior crop year. These provisions provide for 
year round coverage. Policy cancellation that results solely from 
transferring to a different insurance provider for a subsequent crop 
year will not be considered a break in continuous coverage. The current 
provisions specify calendar dates for the beginning and end of the 
insurance period, thereby establishing a minimum time period during 
which no insurance coverage exists between crop years. This rule 
proposes to eliminate any lapse in insurance coverage between crop 
years. Also, specify that if the insured's policy is canceled or 
terminated for any crop year after insurance attached for that crop 
year, insurance will not be considered to have attached for that crop 
year and no premium, administrative fee, or indemnity will be due for 
such crop year. This change is needed to avoid premium and 
administrative fees for canceled or terminated coverage because 
insurance will have attached before the last day a policy can be 
canceled or terminated.
    3. 7 CFR 457.122 Walnut Crop Insurance Provisions effective for the 
2001 and succeeding crop years. The changes to the provisions for 
insuring walnuts as well as other minor editorial changes are as 
follow:
    a. Section 3(c)--Specify that the insured's elected or assigned 
coverage level or the ratio of the insured's price election to the 
maximum price election offered may not be increased after coverage 
begins if a cause of loss that could or would reduce the yield of the 
insured crop is evident prior to the time that change in coverage is 
requested. This change was made to preclude insureds with continuous 
coverage from increasing the liability on insured acreage following a 
cause of loss that could or would reduce the yield of the crop.
    b. Section 8(a)(3)--Specify that for each subsequent crop year that 
the policy remains continuously in force, coverage begins on the day 
immediately following the end of the insurance period for the prior 
crop year. This provision provides year round coverage for walnuts. 
Policy cancellation that results solely from transferring to a 
different insurance provider for a subsequent crop year will not be 
considered a break in continuous coverage. The current Walnut Crop 
Insurance Provisions specify calendar dates for the beginning and end 
of the insurance period, thereby, establishing a time period during 
which no insurance coverage exists between crop years. This rule 
proposes to eliminate any lapse in insurance coverage between crop 
years.
    c. Section 8(a)(4)--Specify that if the insured's policy is 
canceled or terminated for any crop year after insurance attached for 
that crop year, insurance will not be considered to have attached for 
that crop year and no premium, administrative fee, or indemnity will be 
due for such crop year. This change is needed to avoid premium and 
administrative fees for canceled or terminated coverage because 
insurance will have attached before the last day a policy can be 
canceled or terminated.
    d. Section 10--Modify the format of this section and require that 
notice be given 15 days prior to harvest if there is mold damage to the 
walnuts so that an inspection may be performed.
    e. Section 11(b)--Add an example of claim for indemnity for 
clarity.
    f. Section 11(d)--Add that whenever mold damage exceeds 30 percent 
and such production will not be sold, the production to count will be 
zero.
    4. 7 CFR 457.123 Almond Crop Insurance Provisions effective for the 
2001 and succeeding crop years. The changes to the provisions for 
insuring almonds are as follows:
    a. Section 1--Delete the words ``and rejects'' in the definition of 
``meat pounds.'' These changes were made to better fit the current 
almond industry practice and to be consistent with the changes to 
section 11(c)(2).
    b. Section 3(c)--Specify that the insured's elected or assigned 
coverage level or the ratio of the insured's price election to the 
maximum price election offered may not be increased after coverage 
begins if a cause of loss that could or would reduce the yield of the 
insured crop is evident prior to the time that change in coverage is 
requested. This change will preclude insureds with continuous coverage 
from increasing the liability on insured acreage following a cause of 
loss that could or would reduce the yield of the crop.
    c. Section 8(a)(3)--Specify that for each subsequent crop year that 
the policy remains continuously in force, coverage begins on the day 
immediately following the end of the insurance period for the prior 
crop year. This provision provides year round coverage for almonds. 
Policy cancellation that results solely from transferring to a 
different insurance provider for a subsequent crop year will not be 
considered a break in continuous coverage. The current Almond Crop 
Insurance Provisions specify calendar dates for the beginning and end 
of the insurance period, thereby, establishing a time period during 
which no insurance coverage exists between crop years. This rule 
proposes to eliminate any lapse in insurance coverage between crop 
years.
    d. Section 8(a)(4)--Specify that if the insured's policy is 
canceled or terminated for any crop year after insurance attached for 
that crop year, insurance will not be considered to have attached for 
that crop year and no premium, administrative fee, or indemnity will be 
due for such crop year. This change is needed to avoid premium and 
administrative fees for canceled or terminated coverage because 
insurance will have attached before the last day a policy can be 
canceled or terminated.
    e. Section 11(b)--Add an example of claim for indemnity for 
clarity.
    f. Section 11(c)(2)--Revise language to count all harvested meat 
pounds towards the production to count that is accepted by a buyer. 
Also removed exception for harvested meat pounds rejected due to an 
insured cause of loss. Under the current exception it is difficult to 
accurately determine whether the rejects are due to an insurable cause 
of loss, so the term, ``rejects'' will be removed.
    1. 7 CFR 457.158 Apple Crop Insurance Provisions effective for the 
2001 and succeeding crop years. The changes to the provisions for 
insuring apples are as follows:
    a. Section 1--For clarity, define ``varietal group'' as apple 
varieties with similar characteristics that are grouped for insurance 
purposes as specified in the Special Provisions.
    b. Section 2--In addition to section 34(b) of the Basic Provisions, 
allow optional units by varietal group and if on non-contiguous land. 
This will allow apple producers to produce new apple varieties in 
response to public demand while having adequate risk management 
protection through crop insurance.
    c. Section 3(a) and (b)--Add references to price election and 
reporting by type or ``varietal group.'' This change was made to 
clarify that insureds may select one price election for each apple type 
or varietal group and must report all varietal groups of apples for 
insurance.
    d. Section 3(c)--Specify that the insured's elected or assigned 
coverage level or the ratio of the insured's price election to the 
maximum price election offered may not be increased after coverage 
begins if a cause of loss that could or would reduce the yield of the 
insured crop is evident prior to the time

[[Page 6036]]

that change in coverage is requested. This change will preclude 
insureds with continuous coverage from increasing the liability on 
insured acreage following a cause of loss that could or would reduce 
the yield of the crop.
    e. Section 8(c)--Specify that for each subsequent crop year that 
the policy remains continuously in force, coverage begins on the day 
immediately following the end of the insurance period for the prior 
crop year. This provision provides year round coverage for apples. 
Policy cancellation that results solely from transferring to a 
different insurance provider for a subsequent crop year will not be 
considered a break in continuous coverage. The current Apple Crop 
Insurance Provisions specify calendar dates for the beginning and end 
of the insurance period, thereby, establishing a time period during 
which no insurance coverage exists. This rule proposes to eliminate any 
lapse in insurance coverage between crop years.
    f. Section 8(d)--Specify that if the insured's policy is canceled 
or terminated for any crop year after insurance attached for that crop 
year, insurance will not be considered to have attached for that crop 
year and no premium, administrative fee or indemnity will be due for 
such crop year. This change is needed to avoid premium and 
administrative fees for canceled or terminated coverage because 
insurance will have attached before the last day a policy can be 
canceled or terminated.
    g. Section 14 Option C--Prices and Units by Varietal Group--Allow 
optional units and price elections by varietal group for an additional 
premium designated in the actuarial documents. Allow optional units and 
price elections based on varietal groups and non-contiguous land. This 
will allow apple producers to produce new apple varieties in response 
to public demand while having adequate risk management protection 
through crop insurance. The option is not available to producers 
insured under the Catastrophic Risk Protection (CAT) level of coverage. 
This limitation is consistent with options contained in other crop 
policies and the CAT Endorsement. Option C is targeted toward producers 
of apples intended for fresh market; therefore, Option C is unavailable 
to insureds who select Fresh Fruit Option A for all insurable acreage. 
Fresh Fruit Option A primarily covers apples intended for processing.

List of Subjects in 7 CFR Part 457

    Almond, Apple, Crop insurance, Fig, Peach, Pear, Plum, Prune, 
Stonefruit, Table Grape, Walnut, and Reporting and recordkeeping 
requirements.

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(1), 1506(p).

    2. Amend Sec. 457.110 to:
    a. Revise the first sentence of the introductory text;
    b. Revise section 3 of the crop provisions; and
    c. Revise section 8 of the crop provisions all to read as follows:


Sec. 457.110  Fig crop insurance provisions.

    The Fig Crop Insurance Provisions for the 2001 and succeeding crop 
years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
    (a) In addition to the requirements under section 3 of the Basic 
Provisions, you may select only one price election for each fig type 
designated in the Special Provisions and insured in the county under 
this policy.
    (b) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time you request the increase.
* * * * *
    8. Insurance Period.
    (a) In lieu of the provisions of section 11 of the Basic 
Provisions, insurance attaches on each unit the later of the date you 
submit your application or March 1 of the crop year and ends the 
earliest of:
    (1) Total destruction of the fig crop;
    (2) The date harvest of the figs (by type) should have started on 
any acreage that will not be harvested;
    (3) Harvest of the figs;
    (4) Final adjustment of a loss;
    (5) Abandonment of the crop; or
    (6) October 31 of the crop year.
    (b) Notwithstanding paragraph (a) of this section, for each 
subsequent crop year that the policy remains continuously in force, 
coverage begins on the day immediately following the end of the 
insurance period for the prior crop year. Policy cancellation that 
results solely from transferring to a different insurance provider for 
a subsequent crop year will not be considered a break in continuous 
coverage.
    (c) If your fig policy is canceled or terminated for any crop year, 
in accordance with the terms of the policy, after insurance attached 
for that crop year, insurance will not be considered to have attached 
for that crop year and no premium, administrative fee, or indemnity 
will be due for such crop year.
* * * * *
    3. Amend 457.111 to revise the first sentence of the introductory 
text, and add sections 3(c), 8(c) and 8(d) of the crop provisions to 
read as follows:


Sec. 457.111  Pear crop insurance provisions.

    The Pear Crop Insurance Provisions for the 2001 and succeeding crop 
years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop occurs prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your pear policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    4. Amend 457.122 to:
    a. Revise the first sentence of the introductory text;
    b. Revise the introductory text and paragraph (b) of section 3 of 
the crop provisions by removing the parenthetical phrase, ``(Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities),'' 
and add a new paragraph (c);

[[Page 6037]]

    c. Add a new section 3(c) to the crop provisions.
    d. Revise section 4 of the crop provisions by removing the 
parenthetical phrase, ``(Contract Changes);''
    e. Revise section 5 of the crop provisions by removing the 
parenthetical phrase, ``(Life of Policy, Cancellation, and 
Termination);''
    f. Revise section 6 of the crop provisions introductory text, by 
removing the parenthetical phrase, ``(Insured Crop);''
    g. Revise section 7 of the crop provisions introductory text, by 
removing the parenthetical phrase, ``(Insurable Acreage);''
    h. Revise section 8, paragraph (a) of the crop provisions, 
introductory text, by removing the parenthetical phrase, ``(Insurance 
Period);''
    i. Add section 8(a)(3) and 8(a)(4) to the crop provisions.
    j. Revise section 9, paragraph (a) of the crop provisions, 
introductory text, by removing the parenthetical phrase ``(Causes of 
Loss);''
    k. Revise section 10 of the crop provisions; and
    l. In the crop provisions add an example of settlement of claim in 
section 11 after paragraph (b)(7) and revise paragraph (d);
    The additions and revisions read as follows:


Sec. 457.122  Walnut crop insurance provisions.

    The Walnut Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (a) * * *
    (3) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (4) If your walnut policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    10. Duties in the Event of Damage or Loss.
    (a) In addition to the requirements of section 14 of the Basic 
Provisions, if you intend to claim an indemnity on any unit:
    (1) You must notify us prior to the beginning of harvest so that we 
may inspect the damaged production;
    (2) You must notify us of any mold damage 15 days before harvest so 
that we may inspect the mold damaged production; and
    (3) You must not sell or dispose of the damaged crop until we have 
given you written consent to do so.
    (b) If you fail to meet the requirements of this section, all such 
production will be considered undamaged and included as production to 
count.
    11. Settlement of Claim.
* * * * *
    (b) * * *
    (7) * * *
    For example:
    You have a 100 percent share in 100 acres of walnuts in the unit, 
with a guarantee of 2,500 pounds per acre and a price election of $0.61 
per pound. You are only able to harvest 200,000 pounds. Your indemnity 
would be calculated as follows:
    (1) 100 acres  x  2,500 pounds = 250,000 pound insurance guarantee;
    (2 & 3) 250,000 pounds  x  $0.61 price election = $152,500 total 
value of insurance guarantee;
    (4 & 5) 200,000 pounds production to count  x  $0.61 price election 
= $122,000 total value of production to count;
    (6) $152,500 total value guarantee-$122,000 total value of 
production to count = $30,500 loss; and
    (7) $30,500  x  100 percent share = $30,500 indemnity payment.
* * * * *
    (d) Mature walnut production damaged due to an insurable cause of 
loss which occurs within the insurance period may be adjusted for 
quality based on an inspection by the Dried Fruit Association. Walnut 
production that has mold damage greater than 8 percent, based on the 
net delivered weight, will be reduced by the quality adjustment factors 
contained in the Special Provisions. Walnut production that exceeds 30 
percent mold damage and such production will not be sold, the 
production to count will be zero.
* * * * *
    5. Amend 457.123 to read as follows:
    a. Revise the first sentence of the introductory text;
    b. In the crop provisions in section 1 revise the definition of 
``meat pounds;''
    c. In the crop provisions revise section 3, the introductory text 
and paragraph (b), the introductory text, by removing the parenthetical 
phrase, ``(Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities),'' and adding paragraph (c);
    d. In the crop provisions add section 3(c);
    e. In the crop provisions revise section 4 by removing the 
parenthetical phrase, ``(Contract Changes);''
    f. In the crop provisions revise section 5 by removing the 
parenthetical phrase, ``(Life of Policy, Cancellation and 
Termination);''
    g. In the crop provisions revise section 6 by removing the 
parenthetical phrase, ``(Insured Crop);''
    h. In the crop provisions revise section 7 by removing the 
parenthetical phrase, ``(Insurable Acreage);''
    i. In the crop provisions revise section 8(a), introductory text, 
by removing the parenthetical phrase, ``(Insurance Period);''
    j. In the crop provisions add section 8(a)(3) and (4);
    k. In the crop provisions revise section 9(a), introductory text, 
by removing the parenthetical phrase, ``(Causes of Loss);''
    l. In the crop provisions amend section 10 by removing the 
parenthetical phrase, ``(Duties In the Event of Damage or Loss);''
    m. In the crop provisions add an example of settlement of claim 
after section 11 (b)(7) and revise paragraph (c)(2);
    The additions and revisions read as follows:


Sec. 457.123  Almond crop insurance provisions.

    The Almond Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Meat pounds. The total pounds of almond meats (whole, chipped and 
broken, and in-shell meats). Unshelled almonds will be converted to 
meat pounds in accordance with FCIC approved procedures.
* * * * *

[[Page 6038]]

    3. Insurance Guaranteed, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (a) * * *
    (3) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (4) If your almond policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    11. Settlement of Claim.
* * * * *
    (b) * * *
    (7) * * *
    For example:
    You have a 100 percent share in 100 acres of almonds in the unit, 
with a guarantee of 1,200 pounds per acre and a price election of $1.70 
per pound. You are only able to harvest 100,000 pounds. Your indemnity 
would be calculated as follows:
    (1) 100 acres  x  1,200 pounds = 120,000 pound insurance guarantee;
    (2 & 3) 120,000 pounds  x  $1.70 price election = $204,000 total 
value of insurance guarantee;
    (4 & 5) 100,000 pounds production to count  x  $1.70 price election 
= $170,000 total value of production to count;
    (6) $204,000 total of value guarantee-$170,000 total value of 
production to count = $34,000 loss; and
    (7) $34,000  x  100 percent share = $34,000 indemnity payment.
    (c) * * *
    (2) All harvested meat pounds accepted by a buyer.
* * * * *
    6. Amend 457.133 to:
    a. Revise the first sentence of the introductory text;
    b. In the crop provisions add section 3(c); and
    c. In the crop provisions add section 8(c) and (d) all to read as 
follows:


Sec. 457.133  Prune crop insurance provisions.

    The Prune Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your prune policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    7. Amend 457.149 to:
    a. Revise the first sentence of the introductory text;
    b. In the crop provisions add section 3(c); and
    c. In the crop provisions add section 9(c) and (d) all to read as 
follows:


Sec. 457.149  Table grape crop insurance provisions.

    The Table Grape Crop Insurance Provisions for the 2001 and 
succeeding crop years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    9. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your table grape policy is canceled or terminated for any 
crop year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    8. Amend 457.153 to:
    a. Revise the first sentence of the introductory text;
    b. In the crop provisions add a definition for ``marketable'' in 
section 1;
    c. In the crop provisions add section 2(c); and
    d. In the crop provisions add section 7(c) and (d) all to read as 
follows:


Sec. 457.153  Peach crop insurance provisions.

    The Peach Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Marketable--Peach production acceptable for processing or other 
human consumption even if failing to meet any U.S. or applicable state 
grading standard.
* * * * *
    2. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    7. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the

[[Page 6039]]

insurance period for the prior crop year. Policy cancellation that 
results solely from transferring to a different insurance provider for 
a subsequent crop year will not be considered a break in continuous 
coverage.
    (d) If your peach policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    9. Amend 457.157 to:
    a. Revise the first sentence of the introductory text; and
    b. In the crop provisions add sections 3(c) and 8(c) and (d) all to 
read as follows:


Sec. 457.157  Plum crop insurance provisions.

    The Plum Crop Insurance Provisions for the 2001 and succeeding crop 
years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your plum policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    10. Amend 457.158 to:
    a. Revise the first sentence of the introductory text;
    b. In the crop provisions add a definition for ``varietal group'' 
in section 1;
    c. In the crop provisions revise section 2;
    d. In the crop provisions revise sections 3(a),(b) introduction, 
(b)(4) and add new section 3(c);
    e. In the crop provisions add new sections 8(c) and (d); and
    f. In the crop provisions add a new section 14 all to read as 
follows:


Sec. 457.158  Apple crop insurance provisions.

    The Apple Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Varietal group. Apple varieties with similar characteristics that 
are grouped for insurance purposes as specified in the Special 
Provisions.
    2. Unit Division.
    In addition to the requirements of section 34(b) of the Basic 
Provisions, optional units may be established if each optional unit is 
located on non-contiguous land. Optional units may also be established 
by varietal group in accordance with section 14 of these provisions.
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (a) You may select only one price election for all the apples in 
the county insured under this policy unless the Special Provisions 
provide different price elections by type or varietal group in which 
case you may select one price election for each apple type or varietal 
group designated in the Special Provisions. The price elections you 
choose for each type or varietal group must have the same percentage 
relationship to the maximum price offered by us for each type or 
varietal group. For example, if you choose 100 percent of the maximum 
price election for one type or varietal group, you must also choose 100 
percent of the maximum price election for all other types or varietal 
group.
    (b) You must report, by the production reporting date designated in 
section 3 of the Basic Provisions, by type or varietal group if 
applicable:
* * * * *
    (4) The separate acreage for each varietal group of apples intended 
for fresh-market or processing, for each varietal group as shown on the 
actuarial table; and
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of the insured 
crop is evident prior to the time that you request the increase.
* * * * *
    8. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your apple policy is canceled or terminated for any crop 
year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *
    14. Option C--Prices and Units by Varietal Group.
    (a) Exclusive of other options, optional units and price elections 
by varietal group apply only if the following conditions are met:
    (1) You have not elected to insure your apples under the 
Catastrophic Risk Protection (CAT) Endorsement; and
    (2) You or we did not cancel the option in writing on or before the 
cancellation date. Your election of CAT coverage for any crop year 
after this endorsement is effective will be considered notice of 
cancellation of the option by you.
    (b) If you select the Fresh Fruit Option A for all insurable 
acreage, Option C is not available.
    11. Amend 457.159 to revise the first sentence of the introductory 
text, and add sections 3(c), 8(c) and 8(d) of the crop provisions all 
to read as follows:


Sec. 457.159  Stonefruit crop insurance provisions.

    The Stonefruit Crop Insurance Provisions for the 2001 and 
succeeding crop years are as follows:
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (c) You may not increase your elected or assigned coverage level or 
the ratio of your price election to the maximum price election we offer 
if a cause of loss that could or would reduce the yield of

[[Page 6040]]

the insured crop is evident prior to the time that you request the 
increase.
* * * * *
    8. Insurance Period.
* * * * *
    (c) For each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance period for the prior crop year. Policy 
cancellation that results solely from transferring to a different 
insurance provider for a subsequent crop year will not be considered a 
break in continuous coverage.
    (d) If your stonefruit policy is canceled or terminated for any 
crop year, in accordance with the terms of the policy, after insurance 
attached for that crop year, insurance will not be considered to have 
attached for that crop year and no premium, administrative fee, or 
indemnity will be due for such crop year.
* * * * *

    Signed in Washington, D.C., on January 28, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-2620 Filed 2-7-00; 8:45 am]
BILLING CODE 3410-08-P