[Federal Register Volume 68, Number 220 (Friday, November 14, 2003)]
[Proposed Rules]
[Pages 64570-64571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28219]


 ========================================================================
 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. 68, No. 220 / Friday, November 14, 2003 / 
Proposed Rules  

[[Page 64570]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB90


Common Crop Insurance Regulations; Processing Tomato Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations, Processing Tomato Crop 
Insurance Provisions (7 CFR 457.160). The intended effect of this 
action is to: Clarify that producers who have production contracts with 
tomato brokers are eligible for insurance; allow the Special Provisions 
statements to provide a replant payment amount that more adequately 
reflects the regional cost of replanting tomatoes, and restrict the 
effect of the current processing tomato crop provisions to the 2004 and 
prior crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business on January 13, 2004, 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 January 13, 2004.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Risk Management Agency, 
United States Department of Agriculture, 6501 Beacon Drive, Stop 0812, 
Room 421, Kansas City, MO. 64133-4676. Comments titled Processing 
Tomatoes 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 a.m. to 4:30 p.m., CST Monday 
through Friday, except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: Pam Culver, Risk Management 
Specialist, Research and Development, Product Development Division, 
Risk Management Agency, at the Kansas City, MO address listed above, 
telephone (816) 926-7176.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Paperwork Reduction Act of 1995

    Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35), the collections of information for this rule have been previously 
approved by OMB under control number 0563-0053 through February 28, 
2005.

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 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 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 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 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. With respect to any action taken by FCIC under 
the terms of the crop insurance policy, 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 Sec.  457.160 Processing Tomato Crop 
Insurance Provisions of the Common Crop Insurance Regulations by adding 
a definition of ``broker'' and adding provisions to clarify producers 
who have production contracts with tomato brokers are eligible for 
insurance. Current provisions specify that producers who have 
production contracts with tomato processors, and tomato producers who 
also process tomatoes, can be eligible for insurance. The proposed rule 
requires the tomato

[[Page 64571]]

broker to have all licenses and permits required by the state in which 
it operates, and to have a written contract with a processor to 
purchase processing tomatoes on behalf of the processor and to deliver 
such tomatoes to the processor. Additionally, the proposed rule allows 
Special Provision statements to provide a replant payment amount that 
more adequately reflects the regional cost of replanting tomatoes. The 
replant payment amount remains limited to the producer's actual costs 
as provided in the Basic Provisions.

List of Subjects in 7 CFR Part 457

    Crop insurance, processing tomatoes, reporting and record keeping 
requirements.

Proposed Rule

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation proposes to amend 7 CFR part 457 Common Crop 
Insurance Regulations effective for the 2005 and succeeding crops 
years, to read 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), and 1506(p).

    2. Amend 457.160 as follows:
    a. Revise the heading and the introductory text.
    b. Amend section 1 by adding a definition for ``broker''.
    c. Amend section 1 by revising the definition of ``processor 
contract''.
    d. Revise section 8(c).
    e. Revise section 12(b).
    The revisions read as follows:


Sec.  457.160  Processing tomato crop insurance provisions.

    The Processing Tomato Crop Insurance Provisions for the 2005 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions
* * * * *
    Broker. An enterprise in the business of selling and buying 
tomatoes possessing all the licenses and permits required by the state 
in which it operates, and that has a written contract with a processor 
to purchase processing tomatoes on behalf of the processor and to 
deliver such tomatoes to the processor.
* * * * *
    Processor contract. A written agreement between the producer and a 
processor, or between the producer and a broker, containing at a 
minimum:
    (a) The producer's commitment to plant and grow processing 
tomatoes, and to deliver the tomato production to the processor or 
broker;
    (b) The processor's, or broker's, commitment to purchase all the 
production stated in the processor contract; and
    (c) A price per ton that will be paid for the production.
* * * * *
    8. Insured Crop
* * * * *
    (c) A tomato producer who is also a processor or broker may 
establish an insurable interest if the following requirements are met:
    (1) The processor or broker, as applicable, must comply with these 
Crop Provisions;
    (2) Prior to the sales closing date, the Board of Directors or 
officers of the processor or the broker must execute and adopt a 
resolution that contains the same terms as an acceptable processor 
contract. (Such resolution will be considered a processor contract 
under this policy); and
    (3) As applicable, our inspection reveals that the processing 
facilities comply with the definition of a processor contained in these 
Crop Provisions.
* * * * *
    12. Replanting Payment
* * * * *
    (b) The maximum amount of the replanting payment per acre will be 
determined as follows:
    (1) the amount if shown on the Special Provisions; or
    (2) if an amount is not contained in the Special Provisions, the 
lesser of 20 percent of the production guarantee or three tons, 
multiplied by your third stage (final) price election, multiplied by 
your share; and
    (3) in no event will the replanting payment per acre exceed your 
actual cost of replanting.
* * * * *

    Signed in Washington, DC, on November 4, 2003.
Ross J. Davidson,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 03-28219 Filed 11-13-03; 8:45 am]
BILLING CODE 3410-08-P