[Federal Register: September 7, 2006 (Volume 71, Number 173)]
[Rules and Regulations]
[Page 52738-52740]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07se06-2]
-----------------------------------------------------------------------
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule changes how the Commodity Credit Corporation (CCC)
handles certain claims under the Noninsured Crop Disaster Assistance
Program (NAP) for ``tropical'' regions, including Hawaii, Puerto Rico
and other specified areas. The changes will reduce the burden on the
affected program participants and ease program administration in the
affected areas.
EFFECTIVE DATE: January 1, 2006.
FOR FURTHER INFORMATION CONTACT: Frances Williams, Program Specialist,
Noninsured Crop Disaster Assistance Program, Farm Service Agency,
United States Department of Agriculture (USDA), STOP 0517, Room 3648-S,
1400 Independence Avenue, SW., Washington, DC 20250-0517. Telephone:
202-690-0700. Electronic Mail: Frances.Williams@wdc.usda.gov. 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
A proposed rule published on October 3, 2005 proposed changes for
handling certain but not all claims for assistance in certain defined
``tropical regions'' (including Hawaii and Puerto Rico) under the
Noninsured Crop Disaster Assistance Program (NAP) program administered
by CCC under rules found at 7 CFR Part 1437. The comment period for the
rule ended on November 2, 2005, and no comments were received. The
background and need for the rule were described in the preamble to the
proposed rule. The new regulations, as proposed, are adopted by final
rule with minor clarifying changes. This final rule is made effective
as of January 1, 2006, since, as contemplated in the proposed rule, the
rule was to be effective with all covered crops planted as of that
date. Provision is made in the rule itself for adjustments as may be
needed between the old and new rules. It is understood, however, that
the changes in 7 CFR 1437 are, in all cases, advantageous to producers.
If not, any producer with a claim arising from a policy issued before
the date of publication of this final rule who would have profited from
the old policy may apply for relief.
In the preamble to the proposed rule it was indicated that the
source of authority for extending the rule to certain tropical regions
was 48 U.S.C. 1469d. However, the NAP program has been since inception
extended to those regions. NAP was first provided for in crop insurance
legislation that allowed for crop insurance in such regions and allowed
NAP as an alternative to catastrophic crop insurance coverage where
such coverage is not available. It remains the case, even though the
statutory authority for NAP has changed, that NAP is to be available
where conventional federal crop insurance catastrophic insurance is not
available and the authority for federal crop insurance continues to
include an allowance for federal crop insurance in the areas covered by
this NAP rule. That noted, on review, the provisions of the rule which
provide for different treatment in certain tropical areas as opposed to
others have been found to be justified because of differing
agricultural conditions and no change has been made in the rule in this
regard.
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 FSA regulations
for compliance with NEPA, 7 CFR 799. FSA has concluded that this rule
is categorically excluded from further environmental review and
documentation. No extraordinary circumstances or other unforeseeable
factors exist which would require preparation of an environmental
assessment or environmental impact statement.
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
The information collection burden for NAP is by OMB under 5 CFR
1320 and
[[Page 52739]]
assigned OMB Control Number 0560-0175. In the proposed rule (70 FR
57520, 57521) the Agency provided an estimate of the effect this rule
would have on the information collection requirements of the NAP
program and requested public comment on whether the collection of
information is necessary for the proper performance of the functions of
the agency, whether the information will have practical utility, the
accuracy of the agency's burden estimate, ways to enhance the quality,
utility, and clarity of the information collected, and ways to minimize
the burden. No comments were received.
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
are Noninsured Assistance, 10-451.
List of Subjects in 7 CFR Part 1437
Agricultural commodities, Disaster assistance, Reporting and
recordkeeping requirements.
0
Accordingly, for the reasons set forth in the preamble, 7 CFR part 1437
is amended as follows:
PART 1437--NONINSURED CROP DISASTER ASSISTANCE PROGRAM
0
1. The authority citation for part 1437 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.
0
2. Add Subpart F to read as follows:
Subpart F--Coverage in the Tropical Region
Sec.
1437.501 Applicability; definition of ``tropical region'' and
additional definitions
1437.502 Coverage periods and fees for covered tropical crops.
1437.503 Covered losses and recordkeeping requirements for covered
tropical crops.
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. 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 and payment 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. The rules that otherwise apply include, but are not
limited to, limitations on payments that appear elsewhere in this part.
(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 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) 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 covered tropical crops.
(a) The crop year for all covered tropical crops is the calendar
year (January 1 through December 31 beginning in 2006 through
subsequent years).
(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 county per crop year, a maximum
service fee of $100.00 is required of the producer for coverage of:
(1) With respect to annual and biennial crops, all plantings of the
same crop planted during the crop year, as determined by CCC.
(2) With respect to 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 on 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. In this regard:
(1) Producers may be selected on a random or targeted basis for
compliance review 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 CCC as grounds of
ineligibility for benefits under this part.
[[Page 52740]]
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 maintained
according to Sec. 1437.503(c) 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. In this regard:
(i) Except as otherwise determined by FSA, 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 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 calendar days from 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, an appropriate 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 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 harvest for the specific crop
acreage that existed at the time of loss for which the notice of loss
was filed.
Signed in Washington, DC, August 23, 2006.
Thomas B. Hofeller,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. E6-14736 Filed 9-6-06; 8:45 am]
BILLING CODE 3410-05-P