[Federal Register: October 3, 2005 (Volume 70, Number 190)]
[Proposed Rules]
[Page 57520-57523]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03oc05-18]
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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.
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[[Page 57520]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1437
RIN 0560 AH19
Noninsured Crop Disaster Assistance Program--Tropical Regions
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would change the handling of claims for
specified ``tropical'' regions for the Noninsured Crop Disaster
Assistance Program (NAP). The specified area includes Hawaii, Puerto
Rico and specified additional areas. The proposed changes are intended
to reduce the burden on program participants and ease program
administration in the affected areas.
DATES: Comments on the proposed rule, or alternatives to this proposal,
must be received on or before November 2, 2005 to be assured of
consideration. Comments received after this date may be considered to
the extent practicable. Comments on the information collections in this
rule must be received on or before December 2, 2005 to be assured of
consideration. Comments received after this date will be considered to
the extent practicable.
Electronic Mail: Send comments to John.Newcomer@usda.gov.
Fax: Submit comments by facsimile transmission to (202)
690-3646.
Mail: Send comments to John Newcomer, Program Specialist,
Noninsured Crop Disaster Assistance Program, Farm Service Agency,
United States Department of Agriculture (USDA), STOP 0517, Room 3638-S,
1400 Independence Avenue, SW., Washington, DC 20250-0517.
Hand Delivery or Courier: Deliver comments to the above
address.
Federal eRulemaking Portal: Go to http://www.regulations.gov.
Follow the online instructions for submitting
comments.
Comments may be inspected in the Office of the Branch Chief,
Noninsured Assistance Program Branch, Room 3638-S, 1400 Independence
Avenue, SW., Washington, DC 20250-0517. All comments will become a
matter of public record, including the name, mailing address, and e-
mail address of the commenting party.
FOR FURTHER INFORMATION CONTACT: John Newcomer, phone: (202) 720-6157.
Persons with disabilities who require alternative means for
communication (Braille, large print, audiotape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
Current NAP regulation requires that when annual crops are planted
multiple times in a crop year, individual planting periods must be used
to determine planted acres, production and requisite loss. When
multiple planting periods are used, producers pay multiple NAP service
fees for that crop year. Because of the unique climate in tropical
regions, planting periods there tend to be continuous. This proposed
rule would make changes to reflect that difference and to provide
special loss compensation provisions to address the special conditions
in those areas. Also for tropical regions, as defined in the rule, the
proposed rule provides for covered crops that ``prevented planting''
credit will not be allowed except in exceptional cases. Usually,
plantings can still be made after the disaster condition has passed.
Further, the rule provides that payable losses on covered crops will
generally be limited to tropical storms and related types of events.
This is because of general conditions in the region and the lack of
resources in some tropical areas to assess other kinds of losses.
The tropical region is identified in the rule to include Hawaii and
Puerto Rico, Guam, the former Trust Territory of the Pacific Islands,
the U.S. Virgin Islands, and American Samoa. Outside of Hawaii and
Puerto Rico, the extension of NAP to these areas is discretionary under
the authority of Title 48 of the United States Code, Chapter 10,
Section 1469d(c). The extension of the program to those areas is, under
the statute, subject to such additional limits on eligibility as are
determined to be appropriate.
The proposed rules would apply beginning with 2006 crops in the
tropical region, as that region as defined in the rule, except for
``value-loss'' crops as they are otherwise defined in subpart D of the
existing program regulations. The ``value-loss'' crops are crops which
do not lend themselves to calculations based on loss yields and
include, as defined in subpart D, among others, crops like ornamental
nursery crops and mushrooms. Essentially, under the proposed rule, for
perennial crops all of the production for the crops in the ground at
the time of the disaster event would be counted against the loss for
that production so long as the production, whether before or after the
disaster, takes place in the same calendar year. For other covered
crops, all production for the plants which were in the ground at the
time of the disaster, damaged or not, would be counted, whether that
production was before or after the disaster, and irrespective of
whether it was in the same crop year. That is, such production for
those crops covers the full life of the plants that are in place when
the disaster occurs (even if that production carries over into the next
calendar year). For all covered crops, perennial and non-perennial,
producers would be required to harvest all such countable production,
report it accurately, and have it count in the calculation of whether
there was, or was not, sufficient damage to allow for a payment.
Irrespective of whether there is not a loss, producers with coverage
would be required to keep records at all times of their acreage and
production and file yearly reports. The rule provides that person
failing to file proper reports may be ineligible for benefits and may
be treated as having lower yields for future calculations of
eligibility. For covered crops, the crop year would be the calendar
year and coverage would be for all plants existing during the calendar
year. Accordingly, since the rule proposes that the new provisions
would begin with the ``2006 crops,'' the coverage of the rule would
begin with those covered crops in the ground on or after January 1,
2006. The rule would allow the agency to modify rules, to the extent
otherwise permitted by law, if needed to provide for a reasonable
transition to the new requirements.
[[Page 57521]]
Public Comments
A 30 day comment period is allowed. Because this rule is expected
to reduce paperwork for farmers, it has been determined to delay the
effective date of the rule to allow for a longer comment period is
unnecessary and contrary to the public interest. At the end of the
comment period it will be determined whether the provisions should be
made final.
Executive Order 12866
This rule is issued in conformance with Executive Order 12866, was
determined to be not significant, and was not reviewed by the Office of
Management and Budget (OMB).
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this rule because CCC is not required to publish a notice
of proposed rulemaking for the subject matter of this rule.
Environmental Assessment
The environmental impacts of this rule have been considered
consistent with the provisions of the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508), and the FSA
regulations for compliance with NEPA, 7 CFR part 799. FSA has initiated
the completion of an environmental assessment (EA) to determine the
potential impacts of this action upon the human and natural
environments. A copy of the draft EA will be made available to the
public upon its completion.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988. This rule preempts State and other local laws that are
inconsistent with it. Before any legal action may be brought regarding
a determination under this rule, the administrative appeal provisions
set forth at 7 CFR parts 11 and 780 must be exhausted.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. ``States'' for this purpose included the 50 States and
other areas addressed in the rule. See the notice related to 7 CFR part
3014, subpart V, published at 48 FR 29115 (June 24, 1983).
Unfunded Mandates Reform Act of 1995
The rule contains no Federal mandates under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995
(UMRA) for State, local, and tribal governments or the private sector.
Thus, this rule is not subject to the requirements of sections 202 and
205 of the UMRA.
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995, FSA intends
to request approval by OMB of a revision to the information collection
made by this proposed rule. Copies of the information collection may be
obtained from Linda Turner, the Agency Information Collection
Coordinator, by calling (202) 690-1855.
Title: Noninsured Crop Disaster Assistance Program.
OMB Control Number: 0560-0175.
Type of Request: Revision of a Currently Approved Information
Collection.
Abstract: 7 U.S.C. 7333 specifies that the Secretary (of
Agriculture) shall operate a noninsured crop disaster assistance
program to provide coverage equivalent to the catastrophic risk
protection otherwise available under 7 U.S.C. 1508(b). Producers must
submit an application, pay a service fee, and provide annual records of
crop acreage, yields, and production for each crop by the designated
acreage reporting date for the crop and location, to be eligible for
assistance.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 55 minutes per response.
Respondents: Producers of crops and agricultural commodities
(except livestock).
Estimated Number of Respondents: 291,500.
Estimated Number of Responses per Respondent: 6.
Estimated Total Annual Burden on Respondents: 2,140,000.
Proposed topics for comment include: (a) Whether the collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of burden including
the validity of the methodology and assumptions used; (c) ways to
enhance the quality, utility, and clarity of the information collected;
or (d) ways to minimize the burden of the collection of the information
on those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology. Comments should be
sent to John Newcomer, Farm Service Agency, United States Department of
Agriculture (USDA), STOP 0517, Room 3638-S, 1400 Independence Avenue,
SW., Washington, DC 20250-0517.
Executive Order 12612
This rule does not have sufficient Federalism implications to
warrant the preparation of a Federalism Assessment. This rule will not
have a substantial direct effect on States or their political
subdivisions or on the distribution of power and responsibilities among
the various levels of government. ``States'' for this purpose included
the 50 States and other areas addressed in the rule.
Government Paperwork Elimination Act
FSA is committed to compliance with the Government Paperwork
Elimination Act (GPEA) and the Freedom To E-File Act, which require
Government agencies in general and FSA in particular to provide the
public the option of submitting information or transacting business
electronically to the maximum extent possible. The forms and other
information collection activities required for participation in the
program are available electronically for downloading or electronic
submission through the USDA eForms Web site at http://forms.sc.egov.usda.gov/eforms
.
Federal Assistance Programs
The title and number of the Federal assistance program found in the
Catalog of Federal Domestic Assistance to which this final rule applies
is Noninsured Assistance, 10-451.
List of Subjects in 7 CFR Part 1437
Agricultural commodities, Disaster assistance, Reporting and
recordkeeping requirements.
Accordingly, for the reasons set forth in the preamble, it is
proposed that 7 CFR part 1437 be amended to read as follows:
PART 1437--NONINSURED CROP DISASTER ASSISTANCE PROGRAM
1. The authority citation is revised to read as follows:
Authority: 7 U.S.C. 7333; 15 U.S.C. 714 et seq.; and 48 U.S.C.
1469.
2. Add Subpart F to read as follows:
Subpart F--Determining Coverage in the Tropical Region
Sec.
[[Page 57522]]
1437.501 Applicability; definition of ``tropical region'' and other
additional definitions.
1437.502 Coverage periods and fees for the tropical region.
1437.503 Covered losses and recordkeeping requirements for the
tropical region.
1437.504 Notice of loss for covered tropical crops.
1437.505 Application for payment for the tropical region.
Subpart F--Determining Coverage in the Tropical Region
Sec. 1437.501 Applicability; definition of ``tropical region'' and
additional definitions.
(a) This subpart shall only apply to covered tropical crops in the
tropical region for the 2006 and subsequent crops years, as those terms
are defined in this subpart, and benefits under this part may be
extended to those crops only to the extent that they are otherwise
eligible for assistance under this part. Covered crops shall not apply
to ``value loss'' crops, as defined elsewhere in this part. For those
crops that are covered by this subpart, loss determinations for the
program covered in this part shall be determined by the rules that
otherwise apply to the program subject to the modifications provided by
this subpart.
(b) For purposes of this subpart:
(1) Tropical region includes, as may be further limited by the
Deputy Administrator: Hawaii, American Samoa, Guam, the U.S. Virgin
Islands, Puerto Rico, and the former Trust Territory of the Pacific
Islands (the Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau).
(2) 2006 and subsequent crops means those crops in the ground on or
after January 1, 2006.
(3) Covered tropical crops means those crops and commodities in the
tropical region that are governed by this subpart those being all crops
and commodities in the tropical region that are otherwise eligible for
generating a benefit claim under this part, except for value-loss crops
as defined elsewhere in this part.
(c) To the extent determined necessary by the Deputy Administrator,
the Deputy Administrator may adjust requirements for assistance so as
to provide a fair transition from previous rules for crop covered by
this subpart to those provisions which are provided for in this
subpart.
Sec. 1437.502 Coverage periods and fees for the covered tropical
crops.
(a) The crop year for all covered tropical crops is the calendar
year (January 1 through December 31).
(b) The application closing date for all covered tropical crops is
December 1 of the calendar year before the applicable crop year.
(c) For covered tropical crops, per crop year, a maximum service
fee of $100.00 is required for coverage of:
(1) For annual and biennial crops, all plantings of the same crop
planted during the crop year, as determined by CCC.
(2) For perennial crops, all acreage of the crop existing during
the crop year, as determined by CCC.
(d)(1) Multiple planting periods and final planting dates are not
applicable for covered tropical crops. However, nothing in this section
shall prohibit assigning different production expectations to different
fields.
(2) The coverage period for perennial and other crops covered by
this subpart begins on January 1 of the relevant crop year and ends on
December 31 of that year.
Sec. 1437.503 Covered losses and recordkeeping requirements for
covered tropical crops.
(a) Prevented planting coverage is not available for covered
tropical crops, other than in Hawaii and Puerto Rico, except as
approved by the Deputy Administrator in special cases.
(b) Except in Hawaii and Puerto Rico, or as otherwise approved by
the Deputy Administrator in individual cases, eligible causes of loss
for covered tropical crops will only include hurricanes, typhoons, and
named tropical storms.
(c) Producers who have applied for coverage for covered tropical
crops must maintain for the full coverage period contemporaneous
records. Contemporaneous records are those created at the time of
planting and harvesting of the crop for which the application for
coverage is filed and for such period of time as may follow the
coverage period to the extent production during that additional period
would count against a loss in the event that there was or could have
been such a loss.
(1) Producers may be selected on a random or targeted basis to
check for compliance with this requirement and any other requirements
that may apply to this program.
(2) A failure to maintain acceptable contemporaneous records
throughout the crop year may be treated by the Commodity Credit
Corporation as grounds for ineligibility for benefits under this part.
Sec. 1437.504 Notice of loss for covered tropical crops.
(a) The provisions of Sec. 1437.10(c) regarding late filed notice
of loss do not apply to covered tropical crops.
(b) Where a notice of loss for covered tropical crops is provided
according to Sec. 1437.10, producers must provide records, as
maintained according to Sec. 1437.503(c) required by this subpart, of
the:
(1) Number of acres or other basis of measurement, as applicable,
of the crop from which production could be achieved existing on the day
the eligible natural disaster occurred or, for prolonged natural
disasters, such as a drought and similar damage where applicable,
existing on the day the notice of loss is filed.
(2) Amount, including zero, as applicable, of production harvested,
before or after the disaster, from those crop plantings (damaged or
undamaged) which were in existence on the farm at the time of the
disaster including production from the covered plantings (in existence
at the time of the loss event) that may occur after the loss event even
when, to the extent provided for in paragraph (c) of this section, the
harvest occurs after the end of the crop year. Crop acreage of the
covered crop that is in existence at the time of the loss event that
can be harvested after the eligible natural disaster must be harvested,
or continue to be harvested, and the harvested acres and production
reported to FSA according to this subpart, except that for perennial
crops the requirement ends with the end of the crop year. For non-
perennial crops the obligation to harvest ends with the end of the
life-cycle for the plantings that were in existence at the time of the
loss event.
(i) Except as otherwise determined by the Farm Service Agency, such
production, before or after the loss event, will be taken into account
in computing eligibilities.
(ii) Production that must be reported under paragraph (b)(2)(i) of
this section includes, except in the case of perennial plants, all
production irrespective of whether the production occurs in the same
crop year.
(iii) For perennial plants, only production in the same crop year
must be reported.
(iv) All production that must be reported for covered tropical
crops will, except as specified by the Deputy Administrator, be taken
into account in the loss determinations made under this part. The
producer is obligated to maximize that production. That is, harvesting
and other production activities for the plants in the ground at
[[Page 57523]]
the time of the disaster must be undertaken or continue to be
undertaken, to the maximum extent possible, for the full reporting
period, that being the period for which production could count against
a loss as indicated in this subpart.
(3) Failure to keep sufficient records to allow the computations
provided for in this subpart is grounds for denial of the claim.
(c) Producers with coverage of a covered tropical crop for a crop
year must, by the earlier of 90 calendar days after the crop year ends
or the date a notice of loss is filed, file a certified report setting
out the:
(1) Collective acres of the crop acreage planted or in the ground
during the crop year.
(2) Total production harvested from the crop acreage for the full
crop year in the case of a perennial plant and for the full life of the
plants for other crops.
(d) With respect to the report required in paragraph (c) of this
section:
(1) If a report is filed before the end of the crop year, an
updated crop report must be filed within 90 days of the end of the crop
year to supplement the original report;
(2) If the report is for any annual or biennial crops where
production continued or could have continued beyond the period covered
in the reports otherwise filed under this section, an additional report
of production must be filed within 30 days of the end of the last
countable production for the covered crop or 30 days after the last
date on which such production could have been obtained, whichever is
later.
(3) A failure to file an adequate report where a report is required
by this section may result in the producer being treated as having a
zero yield capability for the crop year involved for purposes of
constructing a crop history. Alternatively, the Deputy Administrator
may assign another sanction for that failure. In addition to other
sanctions as may apply, a failure to file such reports may be grounds
for denial of a claim. The Deputy Administrator may adjust crop
histories as determined appropriate to create, to the extent
practicable, a fair crop history for loss computation purposes.
(4) Such reports as are provided for in this subsection must be
filed for every crop year for which there is coverage, irrespective of
whether a claim is filed for that year.
(e) Unless otherwise specified by the Deputy Administrator,
appraisals are not required of crop acreage for covered tropical crops
on Guam, Virgin Islands, American Samoa, and the Commonwealth of the
Northern Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(f) All crop acreage for covered tropical crops for which a notice
of loss is filed must not be replanted or otherwise destroyed until
authorized by CCC.
Sec. 1437.505 Application for payment for the tropical region.
(a) For producers of covered tropical crops in Guam, Virgin
Islands, American Samoa, and the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau, an application for payment must
be filed at the same time as the filing of the notice of loss required
under Sec. Sec. 1437.10 and 1437.504.
(b) For producers in Puerto Rico and Hawaii, an application for
payment for such crops must be filed by the later of:
(1) The date on which the notice of loss is filed in accordance
with Sec. Sec. 1437.10 and 1437.502(i), and
(2) The date of the completion of the countable harvest of the
specific crop acreage that existed at the time of loss for which the
notice of loss was filed.
Signed in Washington, DC, September 14, 2005.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 05-19671 Filed 9-30-05; 8:45 am]
BILLING CODE 3410-05-U