[Federal Register: July 27, 2004 (Volume 69, Number 143)]
[Rules and Regulations]
[Page 44575-44576]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy04-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
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[[Page 44575]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AB90
Common Crop Insurance Regulations; Processing Tomato Crop
Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
amendments to the Processing Tomato Crop Insurance Provisions. The
intended effects of this action are to clarify that producers who have
production contracts with tomato brokers are eligible for insurance,
allow the Special Provisions statements to provide a replant payment
amount that more adequately reflects the regional cost of tomatoes, and
restrict the effect of the current Processing Tomato Crop Provisions to
the 2004 and prior crop years.
DATES: This rule is effective August 26, 2004.
FOR FURTHER INFORMATION CONTACT: John McDonald, Risk Management
Specialist, Research and Development, Product Development Division,
Risk Management Agency, United States Department of Agriculture, 6501
Beacon Drive, Stop 0812, Room 426 Kansas City, MO, 64133-4676,
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 the Office of Management and Budget (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 February 28, 2005.
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, 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 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
under the terms of the crop insurance policy, the administrative appeal
provisions published at 7 CFR part ll and 7 CFR part 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. 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 impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
On November 14, 2003, FCIC published a notice of proposed
rulemaking in the Federal Register at 68 FR 64570-64571 to revise 7 CFR
457.160, Processing Tomato Crop Insurance. Following publication of the
[[Page 44576]]
proposed rule the public was afforded 60 days to submit written
comments and opinions. A total of fifteen comments were received from
an insurance service organization. Twelve of the comments received were
minor editorial changes and were not considered a part of the proposed
rule. However, FCIC will consider the comments when the rule is re-
opened. The remaining three comments received and responses are as
follows:
Comment. An insurance service organization stated that the phrase
``selling and buying'' in the new ``broker'' definition should be
changed to ``buying and selling'' to reflect the usual sequence of
events and the normal use of the phrase.
Response. FCIC agrees with the insurance service organization and
has revised the provisions accordingly.
Comment. An insurance service organization stated that FCIC should
consider deleting the ``good farming practices'' definition from the
processing tomato crop provisions so it would not supersede the
definition in the Basic Provisions.
Response. FCIC does not agree with the insurance servicing
organization that the definition for ``good farming practice'' should
be deleted from the processing tomato crop provisions. The current
definition states that good farming practices also include the cultural
practices contained in the tomato processing contract. However, FCIC
revised the definition to eliminate any conflict with the Basic
Provisions.
Comment. An insurance service organization questioned whether it's
FCIC's intent that paragraph 12(b)(1) allow a regional maximum
replanting payment to be the amount shown in the Special Provisions. As
written, the regional maximum amount would not be limited by the
insured share unless such a limit is included in the Special Provisions
statement.
Response. It is FCIC's intent to allow a regional maximum amount of
replanting payment and it will be limited by the insured share. FCIC
agrees with the commenter and will revise section 12(b)(1) accordingly
to add insured share.
List of Subjects in 7 CFR Part 457
Crop insurance, Tomato reporting and recordkeeping requirements.
Final Rule
0
Accordingly, as set forth in the preamble, the Federal Crop Insurance
Corporation amends 7 CFR part 457 for the 2005 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) and 1506(p).
0
2. Amend the crop insurance provisions in Sec. 457.160 as follows:
0
a. Revise the introductory text;
0
b. Amend section 1 of the crop provisions by adding a definition for
``Broker'' in alphabetical order and revising the definitions of ``good
farming practices'' and ``processor contract'';
0
c. Revise section 8(c); and
0
d. Revise section 12(b).
Sec. 457.160 Processing tomato crop insurance provisions.
The Processing Tomato Crop Insurance Provisions for the 2005 and
succeeding crop years are as follows:
* * * * *
1. Definitions
* * * * *
Broker. An enterprise in the business of buying and selling
tomatoes possessing all the licenses and permits required by the state
in which it operates, and that has a written contract with a processor
to purchase processing tomatoes on behalf of the processor and to
deliver such tomatoes to the processor.
* * * * *
Good Farming Practices. In addition to the definition of ``good
farming practices'' contained in section 1 of the Basic Provisions,
good farming practices include the cultural practices required under
the processor contract.
* * * * *
Processor Contract. A written agreement between the producer and a
processor, or between the producer and a broker, containing at a
minimum:
(a) The producer's commitment to plant and grow processing
tomatoes, and to deliver the tomato production to the processor or
broker;
(b) The processor's, or broker's, commitment to purchase all the
production stated in the processor contract; and
(c) A price per ton that will be paid for the production.
* * * * *
8. Insured Crop
* * * * *
(c) A tomato producer who is also a processor or broker may
establish an insurable interest if the following requirements are met:
(1) The processor or broker, as applicable, must comply with these
Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor or the broker must execute and adopt a
resolution that contains the same terms as an acceptable processor
contract. (Such resolution will be considered a processor contract
under this policy); and
(3) As applicable, our inspection reveals that the processing
facilities comply with the definition of a processor contained in these
Crop Provisions.
* * * * *
12. Replanting Payment
* * * * *
(b) The maximum amount of the replanting payment per acre will be
determined as follows:
(1) The amount shown on the Special Provisions multiplied by your
share; or
(2) If an amount is not contained in the Special Provisions, the
lesser of 20 percent of the production guarantee or three tons,
multiplied by your third stage (final) price election, multiplied by
your share; and
(3) In no event will the replanting payment per acre exceed your
actual cost of replanting.
* * * * *
Signed in Washington, DC, on July 22, 2004.
Ross J. Davidson, Jr.,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 04-17042 Filed 7-26-04; 8:45 am]
BILLING CODE 3410-08-P