[Federal Register: March 12, 2007 (Volume 72, Number 47)]
[Rules and Regulations]
[Page 10908-10909]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12mr07-3]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC08
Common Crop Insurance Regulations; Walnut Crop Insurance
Provisions; Almond 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; Walnut Crop Insurance Provisions and
Almond Crop Insurance Provisions. The intended effect of this action is
to change the insurable age requirements for almonds and walnuts.
EFFECTIVE DATE: April 11, 2007.
FOR FURTHER INFORMATION CONTACT: John McDonald, Risk Management
Specialist, Deputy Administrator for Product Management, Product
Administrator and Standards Division, Risk Management Agency, at the
Kansas City, MO, address listed above; 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 actual yields for at least the most recent three crop years in
which the crop was planted during the base period. Any producer who did
not produce the crop for at least three years, for which the written
agreement is requested, must submit actual yields for a similar crop,
or a combination of actual yields for the crop and a similar crop in
the county for which the written agreement is being requested. 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 proposed 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 Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
On Tuesday, March 21, 2006, FCIC published a notice of proposed
rulemaking in the Federal Register at 71 FR 6016-6021 to amend 7 CFR
457.122 Walnut crop insurance provisions and 7 CFR 457.123 Almond crop
insurance provisions effective for the 2008 and succeeding crop years.
The public was afforded 60 days to submit written comments and
opinions. The commenters were an insurance services organization and an
insurance provider. The comments received and FCIC's response is as
follows:
Comment: Two commenters recommended changing the language in
section 6(d) of the Walnut Crop Provisions and section 6(e) of the
Almond Crop Provisions from ``unless otherwise provided in the Special
Provisions or by written agreement'' to read; ``unless otherwise
provided in the Special Provisions or we agree in writing''.
The commenters concerns with issuing written agreements to insure
production from underage trees would require approved insurance
providers to submit all policies to the Regional Office for written
agreement consideration. Currently, insureds have the ability to insure
production from
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underage almond and walnut trees at all coverage levels by ``we agree
in writing'' under the current Crop Provisions.
The commenters state that approved insurance providers would be
faced with a difficult and costly task to abide by all documentation
requirements for written agreement submissions within the standard 15
business days after the sales closing date and thus result in the
insured potentially not getting insurance coverage timely. As a result,
the use of the written agreements as a means to provide coverage for
production from underage almond and walnut trees would be burdensome to
the producer.
The commenters also state that producers now have the ability to
insure production from underage almond and walnut trees at the
catastrophic risk protection (CAT) level. They claim the current
proposal would make CAT policies ineligible for this insurance coverage
under the written agreement criteria, since written agreements are not
available under CAT coverage.
The commenters state that the use of ``we agree in writing''
language allows the approved insurance providers and RO's to
efficiently process the request to insure production from underage
almond and walnut trees. Any deviation from this process would be
resisted by the AIPs, Regional Office, agents and insureds.
Response: FCIC realized that the proposed language would have
needlessly imposed a heavy burden on producers, agents, AIPs and ROs.
However, the preamble of the policy only allows deviation from the
policy terms if allowed by written agreement. Therefore, use of the
term ``agree in writing'' is not a viable solution. Instead, FCIC has
amended the language to state coverage on production from under-aged
trees is allowed if provided for in the Special Provisions. This change
will provide insurance coverage for production from under-aged trees
without the need to have a written agreement. This will also allow
coverage to be available at all buy-up coverage levels and at the CAT
level of coverage.
List of Subjects in 7 CFR Part 457
Crop insurance, Walnut and Almond, Reporting and record keeping
requirements.
0
Accordingly, as set forth in the preamble, the Federal Crop Insurance
Corporation amends 7 CFR part 457, 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. Amend Sec. 457.122 as follows:
0
A. Revise the first sentence of the introductory text.
0
B. Revise paragraph 6(d).
The revisions to Sec. 457.122 read as follows:
Sec. 457.122 Walnut crop insurance provisions.
The Walnut Crop Insurance Provisions for the 2008 and succeeding
crop years are as follows:
* * * * *
6. Insured Crop
* * * * *
(d) On acreage where at least 90 percent of the trees have reached
at least the seventh growing season after being set out, unless
otherwise provided in the Special Provisions.
* * * * *
0
3. Amend Sec. 457.123 as follows:
0
A. Revise the first sentence of the introductory text.
0
B. Revise paragraph 6(e).
The revisions to Sec. 457.123 read as follows:
Sec. 457.123 Almond crop insurance provisions.
The Almond Crop Insurance Provisions for the 2008 and succeeding
crop years are as follows:
* * * * *
6. Insured Crop
* * * * *
(e) On acreage where at least 90 percent of the trees have reached
at least the sixth growing season after being set out, unless otherwise
provided in the Special Provisions.
* * * * *
Signed in Washington, DC, on March 6, 2007.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E7-4333 Filed 3-9-07; 8:45 am]
BILLING CODE 3410-08-P