[Federal Register Volume 71, Number 54 (Tuesday, March 21, 2006)]
[Proposed Rules]
[Pages 14119-14120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2074]


 ========================================================================
 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. 71, No. 54 / Tuesday, March 21, 2006 / 
Proposed Rules  

[[Page 14119]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC08


Common Crop Insurance Regulations; Walnut Crop Insurance 
Provisions; Almond 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, Walnut Crop Insurance 
Provisions and Almond Crop Insurance Provisions. The intended effect of 
this action is to reduce the insurable age requirements for almonds and 
walnuts because of the new varieties available. These changes will be 
applicable for the 2007 and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business on May 22, 2006, 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 ``Almond-Walnut 
Crop Insurance Provisions'' may be sent via the Internet 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., c.s.t., Monday through 
Friday except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: John McDonald, 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 proposed rule have been 
approved by (OMB) under control number 0563-0053 through November 30, 
2007.

Government Paperwork Elimination Act (GPEA) Compliance

    FCIC is committed to compliance with GPEA, which requires 
Government agencies, in general, to provide the public with the option 
of submitting information or transacting business electronically to the 
maximum extent possible. FCIC requires that all reinsured companies be 
in compliance with the Freedom to E-File Act and section 508 of the 
Rehabilitation Act.

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

    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, and all producers are required to submit a notice of 
loss and production information to determine the amount of 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. 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 that small entities are given the 
same opportunities as large entities 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 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. With respect to any direct action taken by FCIC 
or to require the insurance provider to take specific action under the 
terms of the

[[Page 14120]]

crop insurance policy, the administrative appeal provisions published 
at 7 CFR part 11 and 7 CFR 400, subpart J for the informal 
administrative review process of good farming practices, as applicable, 
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 revising Sec.  457.122, Walnut Crop Insurance Provisions, 
and Sec.  457.123, Almond Crop Insurance Provisions effective for the 
2007 and succeeding crop years. Currently, the policy requires that 
almond trees reach the seventh growing season after set out before the 
almonds are eligible for insurance coverage. Walnut trees need to reach 
the ninth growing season after set out before the walnuts are eligible 
for insurance coverage. Set out occurs when the tree is transplanted 
into the orchard. This rule will reduce the age requirement for 
insurability of almond trees from the seventh to the sixth year after 
set out and reduce the age requirement for insurability of walnut trees 
from the ninth to the seventh year after set out.
    This change is being made because newer varieties of almond and 
walnut trees are more vigorous, and produce at an earlier age. The 
newer varieties are planted more densely, achieve full canopy sooner, 
and come into full production earlier. The almond and walnut industries 
research of breeding programs and cultural practices shows that almonds 
and walnuts begin bearing production as early as third and fourth 
growing seasons respectively, and are at full production at the sixth 
and seventh growing season after set out. Therefore, there is no 
increased risk from allowing insurance to attach earlier.

List of Subjects in 7 CFR Part 457

    Crop insurance, Almonds, Walnuts, 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 2007 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), 1506(p).

    2. Amend Sec.  457.122 as follows:
    A. Revise the first sentence of the introductory text.
    B. Revise paragraph 6(d).
    The revisions to Sec.  457.122 read as follows:


Sec.  457.122  Walnut crop insurance provisions.

    The walnut crop insurance provisions for the 2007 and succeeding 
crop years are as follows:
* * * * *
    6. Insured Crop
* * * * *
    (d) On acreage where at least 90 percent of the trees have reached 
at least the seventh growing season after set out, unless otherwise 
provided in the Special Provisions or by a written agreement that 
coverage may be provided for trees not meeting this requirement.
* * * * *
    3. Amend Sec.  457.123 as follows:
    A. Revise the first sentence of the introductory text.
    B. Revise paragraph 6(e).
    The revision to section 457.123 to read as follows:


Sec.  457.123  Almond crop insurance provisions.

    The almond crop insurance provisions for the 2007 and succeeding 
crop years are as follows:
* * * * *
    6. Insured Crop
* * * * *
    (e) On acreage where at least 90 percent of the trees have reached 
at least the sixth growing season after set out, unless otherwise 
provided in the Special Provisions or by a written agreement that 
coverage may be provided for trees not meeting this requirement.
* * * * *

    Signed in Washington, DC, on February 28, 2006.
Byron Anderson,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 06-2074 Filed 3-20-06; 8:45 am]
BILLING CODE 3410-08-P