[Federal Register: June 6, 2007 (Volume 72, Number 108)]
[Proposed Rules]
[Page 31196-31199]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jn07-13]
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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 31196]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC00
Common Crop Insurance Regulations; Cultivated Wild Rice Crop
Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to add
to 7 CFR part 457 a new 457.170 that provides insurance for cultivated
wild rice. The provisions will be used in conjunction with the Common
Crop Insurance Policy Basic Provisions, which contain standard terms
and conditions common to most crops. The intended effect of this action
is to convert the cultivated wild rice pilot crop insurance program to
a permanent insurance program for the 2009 and succeeding crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business August 6, 2007, and will be considered
when the rule is to be made final.
ADDRESSES: Interested persons are invited to submit comments titled
``Cultivated Wild Rice Crop Insurance Provisions'', by any of the
following methods:
By Mail to Director, Product Administration & Standards
Division, Risk Management Agency, United States Department of
Agriculture, 6501 Beacon Drive, Stop 0812, Room 421, Kansas City, MO
64133-4676.
E-Mail: DirectorPDD@rma.usda.gov.
Federal e-Rulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
A copy of each response will be available for public inspection and
copying from 7 a.m. to 4:30 p.m., CDT, Monday through Friday, except
holidays, at the above address.
FOR FURTHER INFORMATION CONTACT: Linda Williams, Risk Management
Specialist, Product Management, Product Administration & 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 purpose of Executive Order 12866 and,
therefore, it has not been reviewed by 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 proposed rule have been
approved by OMB under control number 0563-0053 through November 30,
2007.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
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 the UMRA.
Executive Order 13132
It has been determined under section 1(a) of Executive Order No.
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
economical 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, and all producers are required to submit a notice of
loss and production information to determine the amount of 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 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 No. 12988 on civil justice reform. The provisions of this rule
will not have a retroactive effect. The provisions of this rule 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
[[Page 31197]]
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 impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
FCIC offered a pilot crop insurance program for cultivated wild
rice beginning with the 1999 crop year in the states of Minnesota and
California. In the 2006 crop year, approximately 20,500 acres were
insured under the pilot program. FCIC contracted with an independent
firm to conduct an evaluation of the cultivated wild rice pilot
program. The evaluation found the pilot crop insurance program to be a
valuable tool for wild rice producers. The evaluation could not
identify any instances where the pilot program adversely affected the
wild rice market. The contractor's report did recommend updating the
premium rates by utilizing the pilot program's experience, remove two
definitions, and correct the termination date contained in the Crop
Provisions. FCIC's Board of Directors concurred with the evaluation
results and approved the conversion of the pilot status to that of a
permanent crop insurance program.
FCIC intends to convert the cultivated wild rice pilot crop
insurance program to a permanent crop insurance program beginning with
the 2009 crop year. To effectuate this, FCIC proposes to amend the
Common Crop Insurance regulations (7 CFR part 457) by adding a new
section Sec. 457.170, Cultivated Wild Rice Crop Insurance Provisions.
These provisions will replace and supersede the current unpublished
provisions that insure cultivated wild rice under pilot program status.
Cultivated wild rice crop insurance is an actual production history
(APH) plan of insurance that protects against a loss in yield. If the
number of pounds produced by the crop is less than the production
guarantee, the producer will receive an indemnity if the producer is in
compliance with all other policy provisions. The production guarantee
is determined the same as other APH crops. The producer certifies the
number of pounds of wild rice produced per acre for at least the
previous four crop years building to a base period of ten crop years
and these amounts are averaged to determine the approved yield. The
approved yield times the coverage level determines the production
guarantee. The covered causes of loss are the same as for other APH
crops and include such causes as adverse weather, fire, wildlife, plant
disease, etc. The production to count is also determined the same as
other crops with all appraised and harvested pounds counting against
the guarantee when determining whether there was an indemnifiable loss.
In this proposed rule, FCIC has revised certain provisions of the
pilot program to be consistent with other Crop Provisions and to
improve the policy. In section 1, FCIC has removed the definitions of
``latest final planting date'' and ``processing.'' A definition of
``latest final planting date'' is not needed because separate fall and
spring final planting dates are not provided for wild rice. Since the
term ``processing'' is not used in the Crop Provisions it has been
removed and replaced with the definition of ``processor,'' a term which
is referenced in other definitions. FCIC also revised the definition of
``finished weight'' to add a provision that would provide the finish
weight for appraised production. Currently, the policy only has
provisions for delivered production and stored for seed, both which
presume the crop has been harvested. However, the finish weight must
also be determined in situations where the crop has not been harvested.
The termination date contained in section 5 has been revised to
November 30th for Minnesota and some California counties. The current
termination date does not allow producers sufficient time to pay their
premiums. In addition, the cancellation and termination dates for some
California counties have been revised to accommodate the different
growing seasons and will allow expansion of the cultivated wild rice
crop insurance program.
FCIC has revised section 10 to specify representative samples are
required in accordance with section 14 of the Basic Provisions. This is
consistent with other Crop Provisions and allows FCIC to only have to
revise the Basic Provisions if changes are required, instead of many
Crop Provisions.
Additionally, section 11(a) has been reformatted to be consistent
with the changes made in other Crop Provisions and the Basic
Provisions.
List of Subjects in 7 CFR Part 457
Crop insurance, Cultivated wild rice, Reporting and recordkeeping
requirements.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 457, Common Crop
Insurance Regulations, for the 2008 and succeeding crop years as
follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 457.170 is added to read as follows:
Sec. 457.170 Cultivated Wild Rice crop insurance provisions.
The Cultivated Wild Rice Crop Insurance Provisions for the 2009 and
succeeding crop years are as follows:
FCIC policies:
United States Department of Agriculture
Federal Crop Insurance Corporation
Reinsured policies:
(Appropriate Title for Insurance Provider)
Both FCIC and reinsured policies:
Cultivated Wild Rice Crop Insurance Provisions
1. Definitions
Approved laboratory. A testing facility approved by us to determine
the recovery percentage from samples of cultivated wild rice.
Cultivated wild rice. A member of the grass family Zizania
Palustris L., adapted for growing in man-made irrigated fields known as
paddies.
Determined recovery percentage. The recovery percentage for a
sample, as determined by an approved laboratory.
Finished weight.
(a) The green weight delivered to a processor multiplied by the
determined recovery percentage;
(b) The green weight stored for seed multiplied by either the
determined recovery percentage or the standard recovery percentage in
accordance with section 11(d); and
(c) Appraised green weight multiplied by either the determined
recovery percentage or the standard recovery percentage in accordance
with section 11(d).
Flood irrigation. Intentionally covering the planted acreage with
water and maintaining it at a proper depth throughout the growing
season.
Green weight. The total weight in pounds of the green cultivated
wild rice production that was appraised, delivered to a processor, or
stored for seed.
[[Page 31198]]
Harvest. Combining or threshing the cultivated wild rice for grain
or seed.
Initially planted. The first occurrence of planting the insured
crop on insurable acreage for the crop year.
Planted acreage. In addition to the definition contained in the
Basic Provisions, land on which an adequate amount of seed is initially
spread onto the soil surface by any appropriate method, including
shattering for the second and succeeding years, and subsequently is
mechanically incorporated into the soil at the proper depth, will be
considered planted, unless otherwise provided by the Special Provisions
or actuarial documents.
Processor. A business that converts green weight to finished weight
using appropriate equipment and methods such as separating immature
kernels, fermenting or curing, parching, de-hulling, and scarifying.
Recovery percentage. The ratio of finished weight to green weight
of the cultivated wild rice. This is also known as percent recovery.
Shatter. Mature seeds that naturally fall to the ground from a
cultivated wild rice plant.
Standard recovery percentage. The recovery percentage contained in
the Special Provisions.
2. Unit Division
Provisions in the Basic Provisions that allow optional units by
irrigated and non-irrigated practices are not applicable.
3. Insurance Guarantee, Coverage Levels, and Prices for Determining
Indemnities
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may select only one percentage of the maximum price
election for all the cultivated wild rice insured under this policy in
the county.
(b) The insurance guarantee per acre is expressed as pounds of
finished weight.
4. Contract Changes
In accordance with section 4 of the Basic Provisions the contract
change date is November 30 preceding the cancellation date for counties
with a February 28 cancellation date and June 30 preceding the
cancellation date for counties with a September 30 cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
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State Cancellation date Termination date
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Mendocino, Glenn, Butte, and February 28......... February 28.
Sierra Counties,
California; and all
California Counties south
thereof.
Minnesota, All Other September 30........ November 30.
California Counties, and
All Other States.
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6. Insured Crop
(a) In accordance with section 8 of the Basic Provisions, the crop
insured will be all the cultivated wild rice in the county grown on
insurable acreage for which premium rates are provided by the actuarial
documents:
(1) In which you have a share;
(2) That is planted for harvest as grain; and
(3) That is grown in man-made flood irrigated fields.
(b) Section 8(b)(3) of the Basic Provisions is not applicable to
the cultivated wild rice seed that naturally shatters and is
subsequently mechanically incorporated into the soil.
7. Insurance Period
In accordance with section 11 of the Basic Provisions, the calendar
date for the end of the insurance period is September 30 of the
calendar year the crop is normally harvested for Minnesota, October 15
of the calendar year the crop is normally harvested for California, and
for all other states, the date as provided in the Special Provisions.
8. Causes of Loss
(a) In accordance with section 12 of the Basic Provisions,
insurance is provided only against the following causes of loss that
occur during the insurance period:
(1) Adverse weather conditions;
(2) Fire;
(3) Insects, but not damage due to insufficient or improper
application of pest control measures;
(4) Plant disease, but not damage due to insufficient or improper
application of disease control measures;
(5) Wildlife;
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of the irrigation water supply, if caused by a cause of
loss specified in sections 8(a)(1) through (7) that occurs during the
insurance period.
(b) In addition to the causes not insured against in section 12 of
the Basic Provisions, we will not insure against any loss of production
due to the crop not being timely harvested unless such delay in
harvesting is solely and directly due to adverse weather conditions
which preclude harvesting equipment from entering and moving about the
field.
9. Replanting Payments
The provisions of section 13 of the Basic Provisions are not
applicable.
10. Duties in the Event of Damage or Loss
Representative samples are required in accordance with section 14
of the Basic Provisions.
11. Settlement of Claim
(a) We will determine your loss on a unit basis. In the event you
are unable to provide records of production that are acceptable to us
for any:
(1) Optional unit, we will combine all optional units for which
such production records were not provided; or
(2) Basic unit, we will allocate any commingled production to such
units in proportion to our liability on the harvested acreage for each
unit.
(b) In the event of loss or damage covered by this policy, we will
settle your claim by:
(1) Multiplying the insured acreage by its respective production
guarantee;
(2) Multiplying the result in 11(b)(1) by the respective price
election;
(3) Totaling the results of section 11(b)(2);
(4) Multiplying the total production to be counted, (see section
11(c) through (d)) by the respective price election;
(5) Totaling the results of section 11(b)(4);
(6) Subtracting the result of section 11(b)(5) from the result of
section 11(b)(3); and
(7) Multiplying the result of section 11(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of cultivated wild rice
in the unit, with a guarantee of 400 pounds per acre and a price
election of $1.00 per pound. You are only able to harvest 20,000
pounds. Your indemnity would be calculated as follows:
[[Page 31199]]
(1) 100 acres x 400 pounds = 40,000 pound guarantee;
(2) 40,000 pounds x $1.00/pound price election = $40,000 value of
guarantee;
(3) 20,000 pounds x $1.00/pound price election = $20,000 value of
production to count;
(4) $40,000-$20,000 = $20,000 loss; and
(5) $20,000 x 100 percent share = $20,000 indemnity payment.
(c) The total production (finished weight) to count from all
insurable acreage on the unit will include:
(1) All appraised production as follows:
(i) Not less than the production guarantee for acreage:
(A) That is abandoned;
(B) Put to another use without our consent;
(C) Damaged solely by uninsured causes; or
(D) For which you fail to provide records of production that are
acceptable to us;
(ii) Production lost due to uninsured causes;
(iii) Unharvested production (mature unharvested green weight
production must be adjusted in accordance with section 11(d)); and
(iv) Potential production on insured acreage that you intend to put
to another use or abandon, if you and we agree on the appraised amount
of production. Upon such agreement, the insurance period for that
acreage will end when you put the acreage to another use or abandon the
crop. If agreement on the appraised amount of production is not
reached:
(A) If you do not elect to continue to care for the crop, we may
give you consent to put the acreage to another use if you agree to
leave intact, and provide sufficient care for, representative samples
of the crop in locations acceptable to us (The amount of production to
count for such acreage will be based on the harvested production or
appraisals from the samples at the time harvest should have occurred.
If you do not leave the required samples intact, or fail to provide
sufficient care for the samples, our appraisal made prior to giving you
consent to put the acreage to another use will be used to determine the
amount of production to count); or
(B) If you elect to continue to care for the crop, the amount of
production to count for the acreage will be the harvested production,
or our reappraisal if additional damage occurs and the crop is not
harvested; and
(2) All harvested production from the insurable acreage.
(d) Mature green weight for appraised or harvested production will
be multiplied by the recovery percentage subject to the following:
(1) We may obtain samples of the production to determine the
recovery percentage.
(2) The determined recovery percentage will be used to calculate
your loss only if:
(i) All determined recovery percentages are established using
samples of green weight production obtained by us or by the processor
for sold or processed production; and
(ii) The samples are analyzed by an approved laboratory.
(3) If the conditions of section 11(d)(2) are not met, the standard
recovery percentage will be used.
12. Late Planting
The provisions of section 16 of the Basic Provisions are not
applicable.
13. Prevented Planting
The provisions of section 17 of the Basic Provisions are not
applicable.
Signed in Washington, DC, on May 30, 2007.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E7-10824 Filed 6-5-07; 8:45 am]
BILLING CODE 3410-08-P