[Federal Register Volume 69, Number 95 (Monday, May 17, 2004)]
[Proposed Rules]
[Pages 27864-27865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11035]


 ========================================================================
 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.
 
 ========================================================================
 

  Federal Register / Vol. 69, No. 95 / Monday, May 17, 2004 / Proposed 
Rules  

[[Page 27864]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB93


Common Crop Insurance Regulations; Peanut 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 Peanut Crop Insurance Provisions. The intended effect of this 
action is to provide policy changes and clarify existing policy 
provisions to better meet the needs of the insureds and to restrict the 
effect of the current Peanut Crop Insurance Regulations to the 2004 and 
prior crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business June 16, 2004, and will be considered 
when the rule is to be made final.

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 ``Peanut Crop 
Provisions'' may be sent via the Internet directly to 
[email protected], or the Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. 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, Risk Management 
Specialist, Research and Development, Product Development Division, 
Risk Management Agency, at the Kansas City, MO, address listed above, 
telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
rule is not significant for the purpose of Executive Order 12866 and, 
therefore, it has not been reviewed by OMB.

Paperwork Reduction Act of 1995

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

Regulatory Flexibility Act

    FCIC certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. Program 
requirements for the Federal crop insurance program are the same for 
all producers regardless of the size of their farming operation. For 
instance, all producers are required to submit an application and 
acreage report to establish their insurance guarantees, and compute 
premium amounts, or a notice of loss and production information to 
determine an indemnity payment in the event of an insured cause of crop 
loss. Whether a producer has 10 acres or 1000 acres, there is no 
difference in the kind of information collected. The amount of 
information collected may be determined by farm size but it is the 
larger farms that would have to report more information because they 
are likely to have more acreage. To ensure crop insurance is available 
to small entities, the Federal Crop Insurance Act authorizes FCIC to 
waive collection of administrative fees from limited resource farmers. 
FCIC believes this waiver helps to ensure small entities are given the 
same opportunities to manage their risks through the use of crop 
insurance. A Regulatory Flexibility Analysis has not been prepared 
since this regulation does not have an impact on small entities, and, 
therefore, this regulation is exempt from the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 605).

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 or 7 CFR 400.169, as applicable, 
must be exhausted before any action for judicial review of any 
determination or action by FCIC 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 the Common Crop Insurance Regulations (7 CFR 
part 457) by amending Sec.  457.134 Peanut Crop Insurance Provisions 
effective for the 2005 and succeeding crop years. This rule will remove 
and reserve section 2 of the Peanut Crop Insurance Provisions, which 
will allow optional units for peanuts to be established in accordance 
with section 34 of the Common Crop Insurance Policy Basic Provisions 
(Basic Provisions). Under the current Peanut Crop Insurance Provisions, 
optional units for peanuts are only allowed by Farm Serial Number 
(FSN). Prior to the Farm Security and Rural Investment Act of 2002 
(2002 Farm Bill), peanut producers were required to report their peanut 
acreage and production to their county Farm Service Agency (FSA) 
office. The FSA

[[Page 27865]]

office used the information to establish peanut quotas and peanut farm 
yields by FSN. This information served as the basis for determining a 
peanut producer's production guarantee for crop insurance purposes. The 
2002 Farm Bill repealed peanut quotas, which caused the peanut crop 
insurance program to default to the provisions specifying that the 
production guarantee would be based on the actual production history 
(APH) of the producer. Due to loss of peanut quotas, peanut producers 
have requested that optional units be allowed consistent with optional 
units requirements contained in section 34 of the Basic Provisions. The 
proposed change will allow peanut producers to have optional units, 
with an appropriate rate surcharge, based on sections, or section 
equivalents.
    The elimination of the peanut quota has resulted in making the 
quota price elections no longer applicable. Producers have expressed a 
desire for a price election for peanuts based on a ``contract price''. 
Producers have requested that FCIC consider allowing producers to 
insure their peanuts on the basis of a ``contract price''. Therefore, 
FCIC is requesting public comment as to the feasibility and possible 
approaches for insuring peanuts at a ``contract price'' when grown 
under a processor contact. Recommended approaches should address issues 
such as the terms of the processor contract (acreage based, production 
based), available contract price information, applicable quality 
standards, the contracting entity, access to information that is free 
from producer or other related bias, and other parameters that would be 
necessary to develop a contract price option that meets producer needs 
and is not subject to waste, fraud, and abuse.

List of Subjects in 7 CFR Part 457

    Crop insurance, Peanuts, 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, Common Crop 
Insurance Regulations, for the 2005 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), 1506(p).

    2. Amend Sec.  457.134 by revising the introductory text and 
removing and reserving section 2., Unit Division.


Sec.  457.134  Peanut crop insurance provisions.

    The peanut crop insurance provision for the 2005 and succeeding 
crop years are as follows:
* * * * *

    Signed in Washington, DC, on May 10, 2004.
Ross J. Davidson, Jr.,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 04-11035 Filed 5-14-04; 8:45 am]
BILLING CODE 3410-08-P