[Federal Register Volume 71, Number 170 (Friday, September 1, 2006)]
[Proposed Rules]
[Pages 52013-52014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14364]


 ========================================================================
 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. 71, No. 170 / Friday, September 1, 2006 / 
Proposed Rules  

[[Page 52013]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC13


Common Crop Insurance Regulations; Nursery Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations, Nursery Crop Insurance 
Provisions by amending the definition of ``liners.'' FCIC also proposes 
to amend the Nursery Peak Inventory Endorsement to clarify that the 
peak amount of insurance is limited to 200% of the amount of insurance 
established under the Nursery Crop Insurance Provisions. The proposed 
changes will be effective for the 2008 and succeeding crop years.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business October 31, 2006 and will be 
considered when the rule is to be made final.

ADDRESSES: Interested persons are invited to submit comments, titled 
``Nursery Crop Insurance Provisions,'' by any of the following methods:
     By Mail to: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, 6501 Beacon Drive, Stop 0812, Room 421, Kansas City, MO 
64133-4676.
     E-mail: [email protected].
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    A copy of each response will be available for public inspection 
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: For further information, contact 
Claire Elsea, Economist, Policy Administration Branch, Product 
Administration and Standards Division, Risk Management Agency, 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 
purposes 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 
OMB under control number 0563-0053 through November 30, 2007.

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, 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 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, 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. 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 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 under the 
terms of the crop insurance policy, the administrative appeal 
provisions published at 7 CFR part 11 and 7 CFR part 400, subpart J for 
the informal administrative review process must be exhausted before any 
action for judicial

[[Page 52014]]

review of any determination made by FCIC 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 7 CFR part 457 (Common Crop Insurance 
Regulations) by revising 7 CFR 457.162 (Nursery Crop Insurance 
Provisions) and 7 CFR 457.163 (Nursery Peak Inventory Endorsement). The 
provisions will be effective for the 2008 and succeeding crop years. 
The changes to the provisions for insuring nursery production are as 
follows:

Section 457.162 Nursery Crop Insurance Provisions

    Section 1--FCIC is proposing to amend the definition of ``liners'' 
to remove language that specifies an established root system for a 
liner plant must reach the sides of the container and to remove 
language regarding the firm root ball. This change is necessary because 
liners are also known as starter plants, which often have not developed 
a root system that reaches the sides of the containers. While no one 
commented on this when the provisions regarding liners were first 
proposed, RMA has since received complaints from the nursery industry 
advising the cited language is agronomically incorrect and could 
adversely affect insurability of liners. By the time most liners have 
reached the point where the root system reaches the side of the 
container, they have already been sold or are ready to be sold. 
Therefore, without this change, most liners would be uninsurable while 
they are in the nursery and during the period of greatest risk of loss.

7 CFR 457.163 Nursery Peak Inventory Endorsement

    Section 7--FCIC is proposing to amend provisions to clarify that 
the maximum increase in the amount of insurance under the Nursery Peak 
Inventory Endorsement is limited to twice the amount of insurance under 
the Nursery Crop Insurance Provisions. As stated, the peak amount of 
insurance is limited to 200 percent of the basic unit value. This means 
that if a basic unit value is $50 and the producer had 50 percent 
coverage, the amount of insurance would be $25. Under the current 
language, the producer could increase the peak amount of insurance to 
$100 (200 percent of $50 basic unit value), which is a four fold 
increase in liability. FCIC never intended to allow more than a two 
fold increase in liability because to allow a larger increase could 
encourage insureds to carry minimum year-round coverage and maximize 
coverage under Peak Inventory Endorsement during high-risk periods. 
This could adversely affect indemnities paid and amount of premium owed 
to maintain an actuarially sound program.

List of Subjects in 7 CFR Part 457

    Crop insurance, Nursery, Reporting and recordkeeping requirements.

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 the Common Crop 
Insurance Regulations effective for the 2008 and succeeding crop 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(l), 1506(p).

    2. Revise the definition of ``liners'' in paragraph 1 of Sec.  
457.162 to read as follows:


Sec.  457.162  Nursery crop insurance provisions.

* * * * *
    1. Definitions.
* * * * *
    Liners. Plants produced in standard nursery containers that are 
equal to or greater than 1 inch in diameter (including trays containing 
200 or fewer individual cells, unless specifically provided by the 
Special Provisions) but less than 3 inches in diameter at the widest 
point of the container or cell interior, have an established root 
system, and meet all other conditions specified in the Special 
Provisions.
* * * * *
    3. Amend paragraph 7 of Sec.  457.163 to read as follows:


Sec.  457.163  Nursery peak inventory endorsement.

* * * * *
    7. Liability Limit.
    The peak amount of insurance is limited to 200 percent of the 
amount of insurance established under the Nursery Crop Insurance 
Provisions.

    Signed in Washington, DC, on August 21, 2006.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E6-14364 Filed 8-31-06; 8:45 am]
BILLING CODE 3410-08-P