[Federal Register Volume 72, Number 47 (Monday, March 12, 2007)]
[Rules and Regulations]
[Pages 10908-10909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4333]



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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: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the 
Common Crop Insurance Regulations; Walnut Crop Insurance Provisions and 
Almond Crop Insurance Provisions. The intended effect of this action is 
to change the insurable age requirements for almonds and walnuts.

EFFECTIVE DATE: April 11, 2007.

FOR FURTHER INFORMATION CONTACT: John McDonald, Risk Management 
Specialist, Deputy Administrator for Product Management, Product 
Administrator and Standards 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 non-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 provisions of 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.

Government Paperwork Elimination Act (GPEA) Compliance

    FCIC is committed to compliance with the 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. Written 
agreement requirements for the Federal crop insurance program are the 
same for all producers regardless of the size of their operations. For 
instance, all producers requesting this type of written agreement must 
submit actual yields for at least the most recent three crop years in 
which the crop was planted during the base period. Any producer who did 
not produce the crop for at least three years, for which the written 
agreement is requested, must submit actual yields for a similar crop, 
or a combination of actual yields for the crop and a similar crop in 
the county for which the written agreement is being requested. Whether 
a producer has 10 acres or 100 acres there is no difference in the kind 
of information required for requesting a written agreement. 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 change helps 
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 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 economic impact 
on the quality of the human environment, health, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    On Tuesday, March 21, 2006, FCIC published a notice of proposed 
rulemaking in the Federal Register at 71 FR 6016-6021 to amend 7 CFR 
457.122 Walnut crop insurance provisions and 7 CFR 457.123 Almond crop 
insurance provisions effective for the 2008 and succeeding crop years.
    The public was afforded 60 days to submit written comments and 
opinions. The commenters were an insurance services organization and an 
insurance provider. The comments received and FCIC's response is as 
follows:
    Comment: Two commenters recommended changing the language in 
section 6(d) of the Walnut Crop Provisions and section 6(e) of the 
Almond Crop Provisions from ``unless otherwise provided in the Special 
Provisions or by written agreement'' to read; ``unless otherwise 
provided in the Special Provisions or we agree in writing''.
    The commenters concerns with issuing written agreements to insure 
production from underage trees would require approved insurance 
providers to submit all policies to the Regional Office for written 
agreement consideration. Currently, insureds have the ability to insure 
production from

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underage almond and walnut trees at all coverage levels by ``we agree 
in writing'' under the current Crop Provisions.
    The commenters state that approved insurance providers would be 
faced with a difficult and costly task to abide by all documentation 
requirements for written agreement submissions within the standard 15 
business days after the sales closing date and thus result in the 
insured potentially not getting insurance coverage timely. As a result, 
the use of the written agreements as a means to provide coverage for 
production from underage almond and walnut trees would be burdensome to 
the producer.
    The commenters also state that producers now have the ability to 
insure production from underage almond and walnut trees at the 
catastrophic risk protection (CAT) level. They claim the current 
proposal would make CAT policies ineligible for this insurance coverage 
under the written agreement criteria, since written agreements are not 
available under CAT coverage.
    The commenters state that the use of ``we agree in writing'' 
language allows the approved insurance providers and RO's to 
efficiently process the request to insure production from underage 
almond and walnut trees. Any deviation from this process would be 
resisted by the AIPs, Regional Office, agents and insureds.
    Response: FCIC realized that the proposed language would have 
needlessly imposed a heavy burden on producers, agents, AIPs and ROs. 
However, the preamble of the policy only allows deviation from the 
policy terms if allowed by written agreement. Therefore, use of the 
term ``agree in writing'' is not a viable solution. Instead, FCIC has 
amended the language to state coverage on production from under-aged 
trees is allowed if provided for in the Special Provisions. This change 
will provide insurance coverage for production from under-aged trees 
without the need to have a written agreement. This will also allow 
coverage to be available at all buy-up coverage levels and at the CAT 
level of coverage.

List of Subjects in 7 CFR Part 457

    Crop insurance, Walnut and Almond, Reporting and record keeping 
requirements.


0
Accordingly, as set forth in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR part 457, Common Crop Insurance Regulations, 
for the 2008 and succeeding crop years as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

0
1. The authority citation for 7 CFR part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(l), 1506(p).


0
2. Amend Sec.  457.122 as follows:
0
A. Revise the first sentence of the introductory text.
0
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 2008 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 being set out, unless 
otherwise provided in the Special Provisions.
* * * * *

0
3. Amend Sec.  457.123 as follows:
0
A. Revise the first sentence of the introductory text.
0
B. Revise paragraph 6(e).
    The revisions to Sec.  457.123 read as follows:


Sec.  457.123  Almond crop insurance provisions.

    The Almond Crop Insurance Provisions for the 2008 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 being set out, unless otherwise 
provided in the Special Provisions.
* * * * *

    Signed in Washington, DC, on March 6, 2007.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E7-4333 Filed 3-9-07; 8:45 am]
BILLING CODE 3410-08-P