[Federal Register: August 23, 2007 (Volume 72, Number 163)]
[Rules and Regulations]
[Page 48227-48229]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23au07-3]
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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