[Federal Register Volume 72, Number 163 (Thursday, August 23, 2007)]
[Rules and Regulations]
[Pages 48227-48229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-15954]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC12


Common Crop Insurance Regulations; Millet 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; Millet Crop Insurance Provisions to 
remove the reduction in indemnity for any unharvested millet acreage to 
better meet the needs of insured producers.

DATES: Effective Date: September 24, 2007.

FOR FURTHER INFORMATION CONTACT: Erin Albright, Risk Management 
Specialist, Product Management, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, Beacon Facility--Mail Stop 0812, PO Box 419205, Kansas 
City, MO 64141-6205, 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 production history for at least the most recent three crop years 
in which the crop was planted during the base period, if they produced 
the crop for three years. If any producer has not produced the crop for 
three years, he or she may submit evidence of production history for a 
similar crop, or for a combination of production history for the crop 
and a similar crop, provided a total of three years of production 
history is provided. 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 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

[[Page 48228]]

Environmental Assessment nor an Environmental Impact Statement is 
needed.

Background

    This rule finalizes proposed changes made to 7 CFR 457.165 (Millet 
Crop Insurance Provisions) that were published by FCIC on December 27, 
2006, as a notice of proposed rulemaking in the Federal Register at 71 
FR 77628-77629.
    The public was afforded 60 days to submit written comments and 
opinions. A total of 27 comments were received from three commenters. 
The commenters were an insurance service organization and two approved 
insurance providers. The comments received and FCIC's responses are as 
follows:
    Comment: A commenter stated they were in agreement with the 
Proposed Rule published by the Federal Crop Insurance Corporation that 
amends the Millet Crop Provisions.
    Response: FCIC thanks the commenter for their assistance in 
reviewing the Millet Proposed Rule.
    Comment: A few commenters agreed with the statement in the 
Background portion of the Proposed Rule that the proposed change will 
require a corresponding premium rate increase. One commenter stated the 
amount of this increase should correspond to the amount of the 
additional loss payments that will result.
    Response: As stated in the Background of the proposed rule, premium 
rates will be increased because the amount of indemnity paid may 
increase and the premium will be determined based on the anticipated 
losses for the revised policy and a reasonable reserve in accordance 
with section 508(d) of the Federal Crop Insurance Act.
    Comment: A few commenters stated the preamble of the current Crop 
Provisions indicates which policy provisions take preference if a 
conflict exists among policy provisions. This has been removed from the 
Crop Provisions that have recently been published in the Federal 
Register as this is covered in the Basic Provisions. There was no 
indication in the proposed rule if this will remain unchanged or will 
be removed. The commenters recommended that it be removed.
    Response: FCIC has removed the provisions regarding document 
priority because these provisions are now contained in the Basic 
Provisions.
    Comment: A few commenters recommended FCIC consider deleting the 
repetitive phrases in the definition of ``late planting period.'' The 
commenters recommended deleting the phrases ``of `Late planting period' 
contained'' and ``late planting period is defined as'' from the 
definition.
    Response: FCIC has modified the definition accordingly.
    Comment: A few commenters recommended FCIC consider either deleting 
the comma after ``including'' or adding a matching comma after the 
subsequent phrase [''including, but not limited to * * *''] in the 
definition of ``local market price.''
    Response: FCIC has modified the definition accordingly.
    Comment: A few commenters recommended FCIC consider deleting the 
repetitive phrases in the definition of ``planted acreage.'' The 
commenters recommended deleting the phrases ``of `Planted acreage' 
contained'' and ``not contained in the definition of `planted acreage' 
'' from the definition.
    Response: FCIC has modified the definition accordingly.
    Comment: A few commenters stated references to ``windrow[ing]'' 
have been removed in this Proposed Rule in section 7(a) & (b) except 
for in the definitions of ``swathed'' and ``windrow.'' The commenters 
asked FCIC to consider deleting the definition of ``windrow'' and 
revising the definition of ``swathed'' to refer to ``* * * and placing 
into a row.''
    Response: FCIC has removed the definition of windrow and revised 
the definition of ``swathed'' accordingly.
    Comment: A few commenters stated in section 7 it is unclear if the 
deletion of ``the'' in ``* * * end of insurance period * * *'' is 
intentional (it is kept in the references in the Background portion of 
the Proposed Rule).
    Response: FCIC did not intentionally delete the word ``the'' in the 
phrase ``* * * end of insurance period * * *'' FCIC has revised the 
provision in section 7 to state ``* * * end of the insurance period * * 
*''
    Comment: A few commenters stated the explanation in the Background 
portion of the Proposed Rule indicates the date changes for the end of 
the insurance period in sections 7(a) and (b) are due to the 
elimination of separate dates depending on whether or not the acreage 
was swathed and windrowed but does not provide any reason why the 
proposed dates are often two weeks to a month later than the earlier of 
the current dates. The commenters asked if they can assume the loss 
history supports these later dates. One commenter asked why the 
proposed dates were changed for Wyoming (``WY'') and ``all other 
states.''

------------------------------------------------------------------------
                                       2003 crop
                                       provisions        Proposed  rule
------------------------------------------------------------------------
ND, SD..........................  Sept. 15 or Oct. 10  Oct. 10.
WY..............................  Sept. 30 or Oct. 15  Oct. 10.
All other states................  Sept. 30 or Oct. 15  Oct. 31.
------------------------------------------------------------------------

    Response: Only one date, rather than dual dates, is necessary for 
the end of the insurance period for each group of states because of the 
removal of the provision that reduced the indemnity of the acreage that 
was not swathed or harvested. The Risk Management Agency Regional 
Offices reviewed the end of the insurance period dates and recommended 
the proposed changes to the end of insurance period dates to more 
accurately reflect actual harvesting dates for millet.
    Comment: A few commenters recommended the insured cause of loss in 
section 8(b) be clarified as ``Fire, due to natural causes'' (or 
``Fire, if caused by lightning'', as in the proposed revision to the 
Tobacco Crop Provisions).
    Response: This change is not necessary because the Act requires all 
causes of loss to be natural causes, not just fire. Specifically 
referring to natural disasters with respect to fire but not the other 
causes of loss could create the impression that other such causes could 
be something other than from natural causes. Further, section 12 of the 
Basic Provisions specifically refers to ``unavoidable'' causes of loss 
due to ``naturally occurring events''. No change has been made.
    Comment: A few commenters recommended adding hyphens in ``1,500-
bushel guarantee'' and ``800-bushel production to count'' in steps (1) 
& (2) of the Example in section 10.
    Response: The recommended change does not clarify the provision and 
such change would be inconsistent with other applicable Crop Provisions 
where no hyphen is used between the applicable number and the term 
``bushel.'' No change has been made.
    Comment: A few commenters stated in section 10(d)(4)(iv) it appears 
the parenthetical phrase should refer to plural ``* * * (the moisture-
adjusted gross bushels, if appropriate) * * *''
    Response: FCIC has revised section 10(d)(4)(iv) accordingly.
    Comment: A few commenters stated they are in agreement with the 
proposal to eliminate section 10(f) provided the premium rates are 
increased accordingly to account for the increased losses that will 
result.
    Response: As stated above, premium rates will be based on the 
anticipated losses under the revised Millet Crop Provisions.

[[Page 48229]]

    Comment: A few commenters recommended eliminating the option to 
increase prevented planting coverage levels (in the second sentence) of 
section 12, as well as reviewing the amount that is being paid for 
prevented planting purposes.
    Response: FCIC cannot incorporate the commenters' recommendations 
of eliminating the option to increase prevented planting coverage 
levels in the final rule since the recommended change was not proposed, 
the recommended change is substantive in nature, and the public was not 
provided an opportunity to comment on the recommended change.

List of Subjects in 7 CFR Part 457

    Crop insurance, Millet, Reporting and recordkeeping requirements.

Final Rule

0
Accordingly, as set forth in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR part 457 the 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. In Sec.  457.165 make the following amendments:
0
a. Revise the introductory text.
0
b. Remove the paragraph immediately preceding section 1 which refers to 
the order of priority in the event of conflict.
0
c. Amend section 1 of Sec.  457.165 by removing the definition of 
``windrow;'' revising the definitions of ``late planting period'' and 
``planted acreage;'' amending the definition of ``local market price'' 
by adding a comma after the phrase ``but not limited to;'' and amending 
the definition of ``swathed'' by removing the term ``windrow'' and 
adding the term ``row'' in its place.
0
d. Revise section 7 of Sec.  457.165.
0
e. Revise section 8(h) of Sec.  457.165.
0
f. Amend section 10(b)(4) of Sec.  457.165 by removing the phrase ``and 
any adjustment from section 10(f).''
0
g. Amend paragraph (2) of the example in section 10(b) of Sec.  457.165 
by removing the phrases ``1,500 bushels'' and adding the phrase ``1,500 
bushel'' in its place.
0
h. Amend paragraph (3) of the example in section 10(b) of Sec.  457.165 
by removing the phrase ``700 bushel'' and adding the phrase ``700 
bushels'' in its place.
0
i. Amend section 10(d)(4)(iii) of Sec.  457.165 by removing the 
semicolon at the end of the current text and adding a period in its 
place.
0
j. Amend section 10(d)(4)(iv) by removing the phrase ``gross bushel'' 
and adding the phrase ``gross bushels'' in its place.
0
k. Remove section 10(f) of Sec.  457.165.
0
l. Amend section 11(a) of Sec.  457.165 by adding the phrase ``per 
day'' after the phrase ``One percent''.
0
m. Amend section 11(b) of Sec.  457.165 by adding the phrase ``per 
day'' after the phrase ``Three percent''.
0
n. Amend section 12 of Sec.  457.165 by removing the phrase ``an 
additional coverage level'' and adding the phrase ``additional levels 
of coverage'' in its place.
    The revised text reads as follows:


Sec.  457.165  Millet crop insurance provisions.

    The millet crop insurance provisions for the 2008 and succeeding 
crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Late planting period. In lieu of the definition contained in the 
Basic Provisions, the period that begins the day after the final 
planting date for the insured crop and ends 20 days after the final 
planting date.
* * * * *
    Planted acreage. In addition to the definition contained in the 
Basic Provisions, land on which seed is initially spread onto the soil 
surface by any method and is subsequently mechanically incorporated 
into the soil in a timely manner and at the proper depth. Acreage 
planted in any manner not contained in this definition will not be 
insurable unless otherwise provided by the Special Provisions.
* * * * *
    7. Insurance Period.
    In accordance with section 11 of the Basic Provisions, the calendar 
date for the end of the insurance period is the date immediately 
following planting (unless otherwise specified in the Special 
Provisions) as follows:
    (a) October 10 for North Dakota, South Dakota, and Wyoming; and
    (b) October 31 for all other states.
    8. Causes of Loss.
* * * * *
    (h) Failure of the irrigation water supply due to a cause of loss 
specified in sections 8(a) through (g) that also occurs during the 
insurance period.
* * * * *

    Signed in Washington, DC, on August 9, 2007.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E7-15954 Filed 8-22-07; 8:45 am]
BILLING CODE 3410-08-P