[Federal Register Volume 65, Number 118 (Monday, June 19, 2000)]
[Proposed Rules]
[Pages 37919-37922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15322]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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. 118 / Monday, June 19, 2000 / 
Proposed Rules  

[[Page 37919]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB79


Common Crop Insurance Regulations; Millet Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule with requests for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to add 
to its regulations a new section that provides for the insurance of 
millet. The provisions will be used in conjunction with the Common Crop 
Insurance Policy Basic Provisions, which contain standard terms and 
conditions common to most crops. The intended effect of this action is 
to convert the millet pilot crop insurance program to a permanent 
insurance program administered by FCIC for the 2002 and succeeding crop 
years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business August 18, 2000 and will be considered 
when the rule is to be made final. The comment period for information 
collections under the Paperwork Reduction of 1995 continues through 
August 18, 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 titled ``Millet Crop Insurance 
Provisions'' may be sent via the Internet to (PDD.Director 
@RM.FCIC.USDA.GOV). A copy of each response will be available for 
public inspection and copying from 7 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 not-significant 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 or recordkeeping 
requirements included in the proposed rule have been submitted for 
approval to the Office of Management and Budget (OMB). Please submit 
your written comments to the Clearance Officer, OCIO, USDA, room 404-W, 
14th Street and Independence Avenue S.W., Washington D.C. 20250. 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. We need this output 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 on April 30, 2001.
    Title: Multiple Peril Crop Insurance (Millet).
    Abstract: This provision will replace and supersede the current 
millet pilot crop insurance program with a permanent millet crop 
insurance program that is codified in the Code of Federal Regulations. 
The proposed rule adds prevented planting coverage. The proposed rule 
will allow for expansion of the program to more producers of millet.
    Purpose: The purpose of this proposed rule is to replace and 
supersede the current millet pilot crop insurance program with a 
permanent millet crop insurance program that is codified in the Code of 
Federal Regulations.
    Burden statement: The information that FCIC collects on the 
specified forms will be used in offering crop insurance coverage, 
determining program eligibility, establishing a production guarantee, 
calculating losses qualifying for payment, etc.
    Estimate of Burden: We estimate that it will take insured 
producers, a loss adjuster, and an insurance agent an average of .8 of 
an hour to provide the information required by the Millet Crop 
Insurance Provisions.
    Respondents: Insureds, insurance agents, and loss adjusters.
    Estimated annual number of respondents: 1,136
    Estimated annual number of responses per respondent: 2.4
    Estimated total annual burden on respondents: 879
    Recordingkeeping requirements: FCIC requires records to be kept for 
three years, and all records required by FCIC are retained as part of 
the normal business practice. Therefore, FCIC is not estimating 
additional burden related to recordkeeping.

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.

[[Page 37920]]

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 the consultation with the states. The provisions contained in 
this rule will not have a substantial direct effect on 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. The availability of insurance for 
the current population of millet entities is limited to the two pilot 
states that have the majority of the millet production. New provisions 
included in this rule will not impact small entities to a greater 
extent than large entities. The amount of work required of insurance 
companies should not increase because the information used to determine 
eligibility is already maintained at their office. 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 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 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 offered a pilot crop insurance program for the millet in 1996. 
The pilot program was successfully completed and had a loss ratio of 
0.62. The pilot millet program insured more than 2,000 producers and 
approximately 250,000 acres for the 1996 through 2001 crop years.
    FCIC has decided to make the millet crop insurance program a 
permanent crop insurance program. To effectuate this, FCIC proposes to 
add to the Common Crop Insurance regulations (7 CFR part 457) a new 
section 7 CFR 457.165, Millet Crop Insurance Provisions. The millet 
crop insurance provisions are similar to other actual production 
history based crop insurance programs, including small grains. However, 
the millet crop insurance programs offers a different percent reduction 
for late planted acreage to more accurately reflect the increased risk. 
Further, although not available under the millet pilot program, the 
proposed rule will include prevented planting coverage.
    The proposed provisions will be effective for the 2002 and 
succeeding crop years. These provisions will replace and supersede the 
current unpublished provisions that insure millet under pilot program 
status.

List of Subjects in 7 CFR Part 457

    Crop insurance, Millet, 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(l), 1506(p).

    2. Section 457.165 is added to read as follows:


Sec. 457.165  Millet crop insurance provisions.

    The Millet Crop Insurance Provisions for the 2001 and succeeding 
crop years are as follows:

    FCIC policies:

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

    Reinsured policies:
(Appropriate title for insurance provider)
    Both FCIC and reinsured policies:
    Millet crop insurance provisions
    If a conflict exists among the policy provisions, the order of 
priority is as follows: (1) The Catastrophic Risk Protection 
Endorsement, if applicable; (2) the Special Provisions; (3) these 
Crop Provisions; and (4) the Basic Provisions with (1) controlling 
(2), etc.

1. Definitions

    Bushel. Fifty pounds of millet, or any other quantity which is 
designated in the Special Provisions for that purpose.
    Harvest. Combining or threshing the millet for grain. A crop 
that is swathed prior to combining is not considered harvested.
    Late planting period. In lieu of the definition of ``late 
planting period'' contained in section 1 of the Basic Provisions, 
late planting period is defined as the period that begins the day 
after the final planting date for the insured crop and ends 20 days 
after the final planting date.
    Local market price. The cash price for millet with a 50-pound 
test weight adjusted to zero percent foreign material content basis 
offered by buyers in the area in which you normally market the 
millet. Factors not associated with grading, including but not 
limited to moisture content, will not be considered.
    Millet. Proso millet produced for grain to be used primarily as 
bird and livestock feed.
    Nurse crop (companion crop). A crop planted into the same 
acreage as another crop, that is intended to be harvested 
separately, and that is planted to improve growing conditions for 
the crop with which it is grown.
    Planted acreage. In addition to the definition of ``Planted 
acreage'' contained in section 1 of the Basic Provisions, planted 
acreage is also defined as land on which seed is initially spread 
onto the soil surface by any method and is subsequently mechanically 
incorporated into the soil in a timely manner and at the proper 
depth. Acreage planted in any manner not contained in the definition 
of ``planted acreage'' will not be insurable unless otherwise 
provided by the Special Provisions or actuarial documents.
    Swathed. Severance of the stem and grain head from the ground 
without removal of the seed from the head and placing into a 
windrow.
    Windrow. Millet that is cut and placed in a row.

2. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities

    In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election for all the 
millet in the county insured under this policy.

3. Contract Changes

    In accordance with section 4 of the Basic Provisions, the 
contract change date is November 30 preceding the cancellation date.

4. Cancellation and Termination Dates

    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are March 15.

5. Insured Crop

    In accordance with section 8 of the Basic Provisions, the crop 
insured will be all the

[[Page 37921]]

millet in the county for which a premium rate is provided by the 
actuarial documents:
    (a) In which you have a share;
    (b) That is planted for harvest as grain; and
    (c) That is not (unless allowed by Special Provisions or by 
written agreement):
    (1) Interplanted with another crop;
    (2) Planted into an established grass or legume; or
    (3) Planted as a nurse crop, unless the millet is harvested as 
grain.

6. Insurable Acreage

    In addition to the provisions of section 9 of the Basic 
Provisions, any acreage of the insured crop damaged before the final 
planting date, to the extent that a majority of producers in the 
area would not normally further care for the crop, must be replanted 
unless we agree that it is not practical to replant.

7. Insurance Period

    In accordance with the provisions of section 11 of the Basic 
Provisions, the calendar date for the end of the insurance period is 
the date immediately following planting as follows:
    (a) North Dakota and South Dakota:
    (1) September 15 for acreage not swathed and windrowed; or
    (2) October 10 for acreage swathed and windrowed by September 
15;
    (b) All other states:
    (1) September 30 for acreage not swathed and windrowed by 
September 30; or (2) October 15 for acreage swathed and windrowed by 
September 30.

8. Causes of Loss

    In accordance with the provisions of section 12 of the Basic 
Provisions, insurance is provided only against the following causes 
of loss that occur within the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if caused by an 
insured cause of loss that occurs during the insurance period.

9. Duties In the Event of Damage or Loss

    In accordance with the requirements of section 14 of the Basic 
Provisions, the representative samples of the unharvested crop must 
be at least 10 feet wide and extend the entire length of each field 
in the unit. The samples must not be harvested or destroyed until 
the earlier of our inspection or 15 days after harvest of the 
balance of the unit is completed.

10. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event 
you are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units 
for which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled 
production to such units in proportion to our liability on the 
harvested acreage for each unit.
    (b) In the event of loss or damage covered by this policy, we 
will settle your claim on any unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting result the total production to count (See 
section 10(c)) from the result of section 10(b)(1);
    (3) Multiplying the result of section 10(b)(2) by your price 
election; and
    (4) Multiplying the result of section 10(b)(3) by your share and 
any adjustment from section 10(f).
    For example:
    You have a 100 percent share in 100 acres of millet in the unit, 
with a guarantee of 15 bushels per acre and a price election of 
$4.00 per bushel. You are only able to harvest 800 bushels. Your 
indemnity would be calculated as follows:
    (1) 100 acres  x  15 bushel=1,500 bushel guarantee;
    (2) 1,500 bushel guarantee-800 bushel production to count=700 
bushel loss;
    (3) 700 bushel  x  $4.00 price election=$2,800 loss; and;
    (4) $2,800  x  100 percent share=$2,800 indemnity payment.
    (c) The total production (bushels) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Your appraised production will not be less than the 
production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may 
be adjusted for quality deficiencies and excess moisture in 
accordance with section 10(d));
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon, if you and we agree on the 
appraised amount of production. Upon such agreement, the insurance 
period for that acreage will end if you put the acreage to another 
use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to 
leave intact, and provide sufficient care for, representative 
samples of the crop in locations acceptable to us. (The amount of 
production to count for such acreage will be based on the harvested 
production or appraisals from the samples at the time harvest should 
have occurred. If you do not leave the required samples intact, or 
you fail to provide sufficient care for the samples, our appraisal 
made prior to giving you consent to put the acreage to another use 
will be used to determine the amount of production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested 
production, or our reappraisal if additional damage occurs and the 
crop is not harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Mature millet may be adjusted for excess moisture and 
quality deficiencies. If moisture adjustment is applicable, it will 
be made prior to any adjustment for quality.
    (1) Production will be reduced by .12 percent for each 0.1 
percent point of moisture in excess of .12 percent. We may obtain 
samples of the production to determine the moisture content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality result in the millet weighing less 
than 50 pounds per bushel; or
    (ii) Substances or conditions are present that are identified by 
the Food and Drug Administration or other public health 
organizations of the United States as being injurious to human or 
animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions and within the insurance period;
    (ii) The deficiencies, substances, or conditions result in a net 
price for the damaged production that is less than the local market 
price;
    (iii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us 
or by a disinterested third party approved by us; and
    (iv) The samples are analyzed by a grader or by a laboratory 
approved by us with regard to substances or conditions injurious to 
human or animal health (test weight for quality adjustment purposes 
may be determined by our loss adjuster).
    (4) Millet production that is eligible for quality adjustment, 
as specified in sections 10(d)(2) and (3), will be reduced by the 
quality adjustment factor contained in the Special Provisions if 
quality adjustment factors are not available in the county, the 
eligible millet production will be reduced as follows:
    (i) The market price of the qualifying damaged production and 
the local market price will be determined on the earlier of the date 
such quality adjusted production is sold or the date of final 
inspection for the unit.
    (ii) The price for the qualifying damaged production will be the 
market price for the local area to the extent feasible. Discounts 
used to establish the net price of the damaged production will be 
limited to those that are usual, customary, and reasonable. The 
price will not be reduced for:
    (A) Moisture content;
    (B) Damage due to uninsured causes; or
    (C) Drying, handling, processing, or any other costs associated 
with normal harvesting, handling, and marketing of the millet; 
except, if the value of the damaged

[[Page 37922]]

production can be increased by conditioning, we may reduce the value 
of the production after it has been conditioned by the cost of 
conditioning but not lower than the value of the production before 
conditioning. We may obtain prices from any buyer of our choice. If 
we obtain prices from one or more buyers located outside your local 
market area, we will reduce such prices by the additional costs 
required to deliver the millet to those buyers.
    (iii) The value of the damaged or conditioned production 
determined in section 10(d)(4)ii) will be divided by the local 
market price to determine the quality adjustment factor;
    (iv) The number of bushels remaining after any reduction due to 
excessive moisture (the moisture-adjusted gross bushel, if 
appropriate) of the damaged or conditioned production under section 
10(d)(i) will then be multiplied by the quality adjustment factor 
from section 10(d)(4)(iii) to determine the production to count.
    (e) Any production harvested from plants growing in the insured 
crop may be counted as production of the insured crop on a weight 
basis.
    (f) If the insured crop is not swathed, the amount of indemnity 
payable under section 10(b) will be reduced by 30 percent to reflect 
those costs not incurred by you. If the insured crop is swathed by 
not harvested, the amount of indemnity payable under section 10(b) 
will be reduced by 15 percent to reflect those costs incurred by 
you.

11. Late Planting

    In lieu of the provisions contained in section 16(a) of the 
Basic Provisions, the production guarantee for each acre planted to 
the insured crop during the late planting period, unless otherwise 
specified in the Special Provisions, will be reduced by:
    (a) One percent for the first through the tenth day; and
    (b) Three percent for the eleventh through the twentieth day.

12. Prevented Planting

    Your prevented planting coverage will be 60 percent of your 
production guarantee for timely planted acreage. If you have limited 
or additional levels of coverage, as specified in 7 CFR part 400, 
subpart T, and pay an additional premium, you may increase your 
prevented planting coverage to a level specified in the actuarial 
documents.

    Signed in Washington, D.C., on June 5, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-15322 Filed 6-16-00; 8:45 am]
BILLING CODE 3410-08-P