[Federal Register Volume 68, Number 104 (Friday, May 30, 2003)]
[Rules and Regulations]
[Pages 32336-32337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13246]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1405

RIN 0560-AG94


Crop Insurance Linkage

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) is removing obsolete 
references from its regulations requiring producers to obtain at least 
a catastrophic level of crop insurance for each crop of economic 
significance in order to be eligible for payment under certain 
programs, which are no longer in operation.

EFFECTIVE DATES: May 30, 2003.

FOR FURTHER INFORMATION CONTACT: Sharon Biastock (202) 720-6336.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been determined to be not significant and therefore has not 
been reviewed by the Office of Management and Budget.

Regulatory Flexibility Act

    It has been determined that Regulatory Flexibility Act is not 
applicable to this final rule because FSA is not required by 5 U.S.C. 
553 or any other provisions of law to publish a notice of final rule 
making regarding the subject matter of this rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an Environmental Assessment nor an 
Environmental Impact Statement is needed.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. The provisions of this final rule preempt State laws to the 
extent such laws are inconsistent with the provisions of this rule.

Executive Order 12372

    This activity 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).

Unfunded Mandates Reform Act of 1995

    This rule contains no Federal mandates under the provisions of 
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) for State, 
local, and tribal governments or the private sector. Thus, this rule is 
not subject to the requirements of sections 202 and 205 of UMRA.

Paperwork Reduction Act

    This rule does not contain any new information collection 
requirements.

Executive Order 12612

    It has been determined that this rule does not have sufficient 
Federalism implications 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.

Discussion of the Final Rule

    The Commodity Credit Corporation is amending its regulations at 7 
CFR part 1405 to remove obsolete requirements that crop insurance be 
obtained in order to be eligible for USDA benefits under some programs. 
Section 508(b)(7) of the Federal Crop Insurance Act (FCIA) (7 U.S.C. 
1508(b)(7)) provided that in order to be eligible for payments under 
the Agricultural Market Transition Act (7 U.S.C. 7201 note) (AMTA) the 
producer must obtain at least the catastrophic level of insurance for 
each crop of economic significance in which the producer has an 
interest or provide a written waiver to the Secretary that waives any 
eligibility for emergency crop loss assistance in connection with the 
crop, if insurance is available in the county for the crop. The AMTA 
programs, which included production flexibility contracts for wheat, 
feed grains, and upland cotton, 1996- through 2002-crop loans and loan 
deficiency payments for grains and similarly handled commodities and 
cotton, and the Sugar and Peanut Programs, ended September 30, 2002. 
The regulations for those programs were contained at 7 CFR parts 1412, 
1421, 1427, 1435, 1443 and 1446 and were replaced by regulations for 
new programs under the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 7901 note) (the 2002 Act). The 2002 Act did not include the 
requirement that producers obtain crop insurance in order to receive 
payments under the new programs and the Agency is therefore removing 
references to those parts from 7 CFR part 1405. Also, an unnecessary 
reference to 7 CFR part 1464, dealing with tobacco, is removed. Tobacco 
payments under 7 CFR part 1464 were at one time covered by a statutory 
tie to crop insurance, which has since been repealed. The crop 
insurance requirements for the Conservation Reserve Program and the 
Tobacco Program contained in 7 CFR part 1405 will remain as provided 
for in section 508(b)(7) of the FCIA. Some non-CCC loans and payments 
are also covered in section 508(b)(7) and are governed by other 
regulations. They are not impacted by this rule. This rule also does 
not impact crop-insurance ties to eligibility for CCC benefits that 
arise from provisions other than section 508(b)(7).

List of Subjects in 7 CFR Part 1405

    Loan programs--agriculture

0
For the reasons set forth in the preamble, 7 CFR part 1405 is revised 
as set forth below.

[[Page 32337]]

PART 1405--LOANS, PURCHASES, AND OTHER OPERATIONS

0
1. The authority citation for Part 1405 is revised to read as follows:

    Authority: 7 U.S.C. 1508; 15 U.S.C. 714b and 714c.


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2. Amend Sec.  1405.6(a) by revising the first sentence of the 
introductory text to read as follows:


Sec.  1405.6  Crop insurance requirement.

    (a) To be eligible for any benefits or payments under 7 CFR part 
1410 the producer must obtain at least the catastrophic level of 
insurance for each crop of economic significance in which the producer 
has an interest or provide a written waiver to the Secretary that 
waives any eligibility for emergency crop loss assistance in connection 
with the crop, if insurance is available in the county for the crop. * 
* *

    Signed at Washington, DC on May 20, 2003.
James R. Little,
Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 03-13246 Filed 5-29-03; 8:45 am]
BILLING CODE 3410-05-P