This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

4115

Vol. 62, No. 19

Wednesday, January 29, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

RIN 0563–AB50

Common Crop Insurance Regulations,

Texas Citrus Tree Crop Insurance

Provisions; and Texas Citrus Tree

Endorsement

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes specific

crop provisions for the insurance of

Texas citrus trees. 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 provide policy changes to better

meet the needs of the insured, include

the current Texas citrus tree

endorsement with the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current Texas citrus tree

endorsement to the 1997 and prior crop

years.

EFFECTIVE DATE: January 29, 1997.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Program Analyst,

Research and Development, Product

Development Division, Federal Crop

Insurance Corporation, United States

Department of Agriculture, 9435 Holmes

Road, Kansas City, MO 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

This action has been reviewed under

United States Department of Agriculture

(USDA) procedures established by

Executive Order No. 12866. This action

constitutes a review as to the need,

currency, clarity, and effectiveness of

these regulations under those

procedures. The sunset review date

established for these regulations is

August 3, 2002.

This rule has been determined to be

exempt for the purposes of Executive

Order No. 12866 and, therefore, has not

been reviewed by the Office of

Management and Budget (OMB).

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit comments, data, and opinions

on information collection requirements

previously approved by OMB under

OMB control number 056–0003 through

September 30, 1998. No public

comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, 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) of

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.

Executive Order No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on States or their political

subdivisions, or on the distribution of

power and responsibilities among

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant impact on a substantial

number of small entities. New

provisions included in this rule will not

impact small entities to a greater extent

than large entities. Under the current

regulations, all producers are required

to complete an application and acreage

report. If the trees are damaged or

destroyed, insureds are required to give

notice of loss and provide the necessary

information to complete a claim for

indemnity. This regulation does not

alter those requirements. The amount of

work required of the insurance

companies delivering and servicing

these policies will not increase

significantly from the amount of work

currently required. This rule does not

have any greater or lesser impact on the

producer. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 605), and no Regulatory

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order No. 12372

This program is not subject to the

provisions of Executive Order No.

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 No. 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

sections 2(a) and 2(b)(2) of Executive

Order No. 12778. The provisions of this

rule will not have a retroactive effect

prior to the effective date. The

provisions of this rule will preempt

State and local laws to the extent such

State and local laws are inconsistent

herewith. The administrative appeal

provisions published at 7 CFR part 11

must be exhausted before any action 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.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

On Thursday, August 29, 1996, FCIC

published a proposed rule in the
4116 Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Rules and Regulations

Federal Register at 61 FR 45369–45373

to add to the Common Crop Insurance

Regulations (7 CFR part 457), a new

section, 7 CFR § 457.106 Texas Citrus

Tree Crop Insurance Provisions. The

new provisions will be effective for the

1998 and succeeding crop years. These

provisions will replace and supercede

the current provisions for insuring

Texas citrus trees found at 7 CFR

§ 401.134 (Texas Citrus Tree

Endorsement). FCIC also amends 7 CFR

401.134 to limit its effect to the 1997

and prior crop years. FCIC will later

publish a regulation to remove and

reserve § 401.134.

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments, data, and

opinions. A total of 20 comments were

received from the crop insurance

industry and FCIC. The comments

received and FCIC’s responses are as

follows:

Comment: A representative of FCIC

suggested that the word ‘‘type’’ be

changed to ‘‘crop’’ throughout the

provisions where appropriate since the

citrus type designations used in the past

will be replaced with individual crop

codes beginning with the 1998 crop

year.

Response: FCIC agrees and has made

this change and has also deleted the

definition of type.

Comment: The crop insurance

industry suggested that the definition of

‘‘deductible’’ be defined in the Basic

Provisions rather than the crop

provisions.

Response: ‘‘Deductible’’ must be

defined in the crop provisions until the

Basic Provisions are revised. No change

has been made to the provisions.

Comment: The crop insurance

industry questioned the definition of

‘‘dehorning.’’ They stated that the

definition previously was ‘‘The cutting

back of each scaffold limb * * *’’; the

proposed rule stated ‘‘* * * one or

more scaffold limbs * * *.’’ This affects

the amount of insurance per acre. The

commenters questioned if the intent was

to limit the amount of insurance per

acre to 33 percent for any tree with only

one scaffold limb dehorned.

Response: FCIC agrees that the

definition of ‘‘dehorning’’ as published

in the proposed rule is confusing. The

definition has been revised to read

‘‘Cutting all scaffold limbs to a length

not longer than 1⁄4 the height of the tree

before such cutting.’’

Comment: The crop insurance

industry recommended that the

definition of ‘‘irrigated practice’’ should

also address the quality of the water

being applied.

Response: FCIC disagrees. There are

no established criteria regarding the

quality of water necessary to produce a

crop. Such criteria would be difficult to

develop and administer due to the

complexity of the factors involved. No

change has been made in the definition.

Comment: The crop insurance

industry suggested defining ‘‘root

stock.’’

Response: FCIC agrees and has added

a definition of ‘‘root stock.’’

Comment: The crop insurance

industry stated that section 2(f) needs to

be revised to say ‘‘Each optional unit

must meet one of the following criteria,

as applicable * * *’’ instead of ‘‘* * *

one or more of the following * * *’’ so

that the policyholder may choose to

have optional units either by noncontiguous land or by legal description

but not by both.

Response: FCIC agrees and has made

the recommended change. Also, the

phrase ‘‘In lieu of establishing optional

units by section, section equivalent or

FSA Farm Serial Number,’’ has been

deleted from section 2(f)(2) for

clarification.

Comment: The crop insurance

industry questioned if there should be

some reference to type in section 3(b) in

regard to amount of insurance for each

population density.

Response: FCIC agrees that the per

acre amount of insurance for each

variety or population density within a

crop must bear the same relationship to

the maximum amount of insurance

available for each variety and

population density of the crop as

specified in the Actuarial Table. This

change has been made.

Comment: The crop insurance

industry suggested clarifying section

3(b)(4) by adding the phrase ‘‘the

premium and’’ before the phrase ‘‘any

indemnity will be based is $1,700

($2,000 multiplied by 0.85).’’

Response: FCIC agrees and has made

the recommended change.

Comment: The crop insurance

industry suggested changing ‘‘and’’ to

‘‘or’’ in section 7(b)(1) because items 1

and 2 are two separate conditions.

Response: FCIC agrees and has made

the change.

Comment: The crop insurance

industry questioned whether there were

any guidelines to exclude or limit

coverage on any acreage that was not

insured the previous year.

Response: The M8-Texas Citrus Tree

Handbook contains provisions for

excluding or limiting the amount of

insurance on Texas citrus trees.

Comment: The crop insurance

industry stated that since the term

‘‘excess moisture’’ is not defined in the

provisions whereas the term ‘‘excess

precipitation’’ was defined in the

existing regulation, they assumed that

excess moisture would be determined

on a case by case basis.

Response: ‘‘Excess moisture’’ was an

insurable cause of loss in the Texas

Citrus Tree Endorsement published in 7

CFR § 401.134 for the 1989 and

subsequent crop years and in the

proposed rule for these crop provisions.

However, the term was not defined. The

term is changed to ‘‘excess

precipitation’’ and is defined as ‘‘An

amount of precipitation sufficient to

directly damage the tree.’’

Comment: The crop insurance

industry stated that the covered peril of

‘‘failure of the irrigation water supply’’

basically has been eliminated and they

questioned if this was the intent and, if

so, if the premium would be adjusted

accordingly.

Response: It was not the intent to

eliminate the covered peril of ‘‘failure of

the irrigation water supply’’ due to

drought. This provision has been

revised consistent with the Texas Citrus

Fruit Crop Insurance Provisions. It now

reads ‘‘Failure of the irrigation water

supply if caused by an insured peril or

drought that occurs during the

insurance period.’’

Comment: The crop insurance

industry suggested deleting the word

‘‘actual’’ in section 12(a)(1) because

sections 12(b)(2) and 12(c) may adjust

the actual percentages.

Response: FCIC believes that the

provisions are clearly stated. No

changes have been made.

Comment: The crop insurance

industry stated that the existing

provisions established the condition

that any grove sustaining more than 80

percent actual damage would be

considered 100 percent damaged, but

the proposed rule establishes this

condition on an individual tree basis. If

this is an intended change it must be

identified as such.

Response: When appraising damage, a

sample of trees is selected. Damage to

individual scaffold limbs on each tree is

assessed to establish the percent of

damage for the unit. FCIC has not

changed the procedure. These crop

provisions have been revised to more

accurately identify the process with the

addition of the following sentence: ‘‘If

this percent of damage is more that 80

percent, the unit will be considered 100

percent damaged.’’

Comment: The crop insurance

industry questioned whether a tree that

has 85 percent actual damage is

considered to be 100 percent damaged.

They wondered which figure is used
Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Rules and Regulations 4117

when calculating the average percentage

of damage for the unit.

Response: Any tree that sustains more

than 80 percent damage following the

year of set out will be considered 100

percent damaged. The percent of

damage on the unit will be determined

by computing the average of the

determinations made for the individual

trees within each sample, thus any tree

with over 80 percent of damage will be

regarded as having 100 percent of

damage. If the total samples have an

average of more than 80 percent

damage, the damage will be determined

to be 100 percent for the unit.

Comment: The crop insurance

industry stated that they believe the

written agreement should be continuous

if no substantive changes occur from

one year to the next.

Response: Written agreements are, by

design, temporary and intended to

address unusual circumstances. If the

conditions for which a written

agreement is needed exists each crop

year, the policy or Special Provisions

should be amended to reflect this

condition. Therefore, no change will be

made to the provisions.

Comment: The crop insurance

industry suggested combining the

provisions contained in section 13(e)

with the provisions in section 13(a).

Response: FCIC believes that the

current provisions are clearly stated and

has not opted to combine them.

Comment: The crop insurance

industry suggested addressing the

extended insurance period for the 1998

crop year in the 1998 Special Provisions

or an amendatory endorsement, instead

of 3 references in these crop provisions.

Response: The policy itself is the best

place to notify the insured of the

insurance period to avoid any

confusion. FCIC believes that these

provisions are clearly stated and the

provisions have not been changed.

In addition to the changes described

above, FCIC has made the following

minor editorial changes to the Texas

Citrus Tree Provisions:

1. Section 1—Added a definition for

‘‘crop’’ and amended the definitions of

‘‘crop year,’’ ‘‘deductible,’’ ‘‘destroyed,’’

‘‘excess wind,’’ ‘‘FSA,’’ ‘‘good farming

practices,’’ ‘‘interplanted,’’ and ‘‘written

agreement’’ for clarification.

2. Section 9—Revised the provisions

to allow all insureds to obtain coverage

for the extended 1998 crop year.

Previously new insureds would not

have had an opportunity to insure their

crop from June 1 through November 20,

which may have resulted in some losses

paid under the crop insurance policy

and others under the noninsured crop

disaster assistance program.

3. Section 12—Clarified how an

indemnity is computed by adding a

statement to specify that the result of

subtracting the insured’s deductible

from the percent of damage for the unit

must be greater than zero to receive an

indemnity. Deleted the provision

specifying that any percent of damage

paid previously in the same crop year be

subtracted. These provisions do not

allow an initial payment prior to the

final indemnity.

Good cause is shown to make this rule

effective upon publication in the

Federal Register and without the 30-day

period required by the Administrative

Procedure Act. This rule improves the

Texas citrus tree insurance coverage and

brings it under the Common Crop

Insurance Policy Basic Provisions for

consistency among policies. This rule

will allow optional unit division by

section, section equivalent, or FSA Farm

Serial Number; or by non-contiguous

land, but not by both. The unit structure

will now be the same for both the Texas

Citrus Tree Provisions and the Texas

Citrus Fruit Provisions.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Texas citrus tree,

Texas citrus tree endorsement.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 401 and 457 as follows:

PART 401—GENERAL CROP

INSURANCE REGULATIONS—

REGULATIONS FOR THE 1988 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 401 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

2. The introductory text of § 401.134

is revised to read as follows:

§ 401.134 Texas Citrus Tree Endorsement.

The provisions of the Texas Citrus

Tree Endorsement for the 1989 through

1997 crop years are as follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

3. The authority citation for 7 CFR

part 457 continues to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).

4. 7 CFR part 457 is amended by

adding a new § 457.106 to read as

follows:

§ 457.106 Texas Citrus Tree Crop

Insurance Provisions.

The Texas Citrus Tree Crop Insurance

Provisions for the 1998 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:

Texas Citrus Tree Crop Provisions

If a conflict exists among the Basic

Provisions (§ 457.8), these crop provisions,

and the Special Provisions; the Special

Provisions will control these crop provisions

and the Basic Provisions; and these crop

provisions will control the Basic Provisions.

1. Definitions

Bud union—The location on the tree trunk

where a bud from one tree variety is grafted

onto root stock of another variety.

Crop—Specific groups of citrus fruit trees

as listed in the Special Provisions.

Crop year—For the 1998 crop year only, a

period of time that begins on June 1, 1997,

and ends on November 20, 1998. For all other

crop years, a period of time that begins on

November 21 of the calendar year prior to the

year the trees normally bloom, and ends on

November 20 of the following calendar year.

The crop year is designated by the year in

which the insurance period ends.

Days—Calendar days.

Deductible—The amount determined by

subtracting the coverage level percentage you

choose from 100 percent. For example, if you

elected a 65 percent coverage level, your

deductible would be 35 percent (100%¥65%

= 35%).

Dehorning—Cutting all scaffold limbs to a

length not longer than 1⁄4 the height of the

tree before such cutting.

Destroyed—Trees damaged to the extent

that removal is necessary.

Excess precipitation—An amount of

precipitation sufficient to directly damage

the tree.

Excess wind—A natural movement of air

that has sustained speeds in excess of 58

miles per hour recorded at the U.S. Weather

Service reporting station nearest to the crop

at the time of crop damage.

Freeze—The formation of ice in the cells of

the trees caused by low air temperatures.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture or a successor agency.

Good farming practices—The cultural

practices generally in use in the county for

the trees to have normal growth and vigor

and recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Interplanted—Acreage on which two or

more crops are planted in any form of

alternating or mixed pattern.

Irrigated practice—A method by which the

normal growth and vigor of the insured trees

is maintained by artificially applying

adequate quantities of water during the
4118 Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Rules and Regulations

growing season using the appropriate

irrigation systems at the proper times.

Non-contiguous land—Any two or more

tracts of land whose boundaries do not touch

at any point, except that land separated only

by a public or private right-of-way, waterway,

or an irrigation canal will be considered as

contiguous.

Root stock—A root or a piece of a root of

one tree variety onto which a bud from

another tree variety is grafted.

Scaffold limbs—Major limbs attached

directly to the trunk.

Set out—Transplanting the tree into the

grove.

Written agreement—A written document

that alters designated terms of this policy in

accordance with section 13.

2. Unit Division

(a) A unit as defined in section 1

(Definitions) of the Basic Provisions (§ 457.8),

will be divided into additional basic units by

each citrus crop designated in the Special

Provisions.

(b) Unless limited by the Special

Provisions, these basic units may be divided

into optional units if, for each optional unit,

you meet all the conditions of this section or

if a written agreement to such division exists.

(c) Basic units may not be divided into

optional units on any basis including, but not

limited to, production practice, type, and

variety, other than as described in this

section.

(d) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined into a

basic unit, that portion of the additional

premium paid for optional units that have

been combined will be refunded to you for

the units combined.

(e) All optional units you selected for the

crop year must be identified on the acreage

report for that crop year.

(f) Each optional unit must meet one of the

following criteria, as applicable:

(1) Optional Units by Section, Section

Equivalent, or FSA Farm Serial Number:

Optional units may be established if each

optional unit is located in a separate legally

identified section. In the absence of sections,

we may consider parcels of land legally

identified by other methods of measure

including, but not limited to Spanish grants,

railroad surveys, leagues, labors, or Virginia

Military Lands, as the equivalent of sections

for unit purposes. In areas that have not been

surveyed using the systems identified above,

or another system approved by us, or in areas

where such systems exist but boundaries are

not readily discernible, each optional unit

must be located in a separate farm identified

by a single FSA Farm Serial Number; or

(2) Optional Units on Acreage Located on

Non-Contiguous Land: Optional units may be

established if each optional unit is located on

non-contiguous land.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

(a) In lieu of the requirement of section 3

(Insurance Guarantees, Coverage Levels, and

Prices for Determining Indemnities) of the

Basic Provisions (§ 457.8), that prohibits you

from selecting more than one coverage level

for each insured crop, you may select a

different coverage level for each crop

designated in the Special Provisions that you

elect to insure.

(b) In addition to the requirements of

section 3 (Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8):

(1) If you insure trees within a crop which

are either of a different variety or are planted

at a different population density, the per acre

amount of insurance for each variety or

population density for the crop must bear the

same relationship to the maximum amount of

insurance available for each variety and

population density of the crop as specified in

the Actuarial Table. For example, if you elect

100 percent of the maximum amount of

insurance for a variety within a population

density for the crop, you must select 100

percent of the maximum amount of insurance

for that variety for all population densities

for the crop. The amount of insurance for

each variety and population density must be

multiplied by any applicable factor contained

in section 3(b)(2).

(2) The amount of insurance per acre will

be the product obtained by multiplying the

reference maximum dollar amount of

insurance that is shown in the Actuarial

Table for the applicable population density

by the percentage for the level of coverage

you select and by:

(i) Thirty-three percent (0.33) for the year

of set out, the year following dehorning, or

the year following grafting of a set out tree.

(Insurance will be limited to this amount

until trees that are set out are one year of age

or older on the first day of the crop year);

(ii) Sixty percent (0.60) for the first growing

season after being set out, the second year

following dehorning, or the second year

following grafting of a set out tree;

(iii) Eighty percent (0.80) for the second

growing season after being set out, the third

year following dehorning, or the third year

following grafting of a set out tree; or

(iv) Ninety percent (0.90) for the third

growing season after being set out, the fourth

year following dehorning, or the fourth year

following grafting of a set out tree.

(3) The amount of insurance per acre for

each population density, or factor as

appropriate, will be multiplied by the

applicable number of insured acres. These

results will then be added together to

determine the amount of insurance for the

unit.

(4) The amount of insurance will be

reduced proportionately for any unit on

which the stand is less than 90 percent,

based on the original planting pattern. For

example, if the amount of insurance you

selected is $2,000 and the remaining stand is

85 percent of the original stand, the amount

of insurance on which the premium and any

indemnity will be based is $1,700 ($2,000

multiplied by 0.85).

(5) If any insurable acreage of trees is set

out after the first day of the crop year, and

you elect to insure such acreage during that

crop year, you must report the acreage,

practice, crop, number of trees, date set out

is completed, and your share to us within 72

hours after set out is completed for the unit.

(6) Production reporting requirements

contained in section 3 (Insurance Guarantees,

Coverage Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8),

are not applicable.

(7) You must report, by the sales closing

date contained in the Special Provisions, by

type if applicable:

(i) Any damage, removal of trees, change in

practices, or any other circumstance that may

reduce the amount of insurance, and the

number of affected acres;

(ii) The number of trees on insurable and

uninsurable acreage;

(iii) The date of original set out and the

planting pattern;

(iv) The date of replacement or dehorning,

if more than 10 percent of the trees on any

unit have been replaced or dehorned in the

previous 5 years; and

(v) For the first year of insurance for

acreage interplanted with another perennial

crop, and anytime the planting pattern of

such acreage is changed:

(A) The age of the interplanted crop, and

type if applicable;

(B) The planting pattern; and

(C) Any other information that we request

in order to establish your amount of

insurance.

We will reduce the amount of insurance as

necessary, based on our estimate of the effect

of interplanting a perennial crop; removal of

trees; damage; change in practices and any

other circumstance on the potential of the

insured crop. If you fail to notify us of any

circumstance that may reduce the potential

for the insured crop, we will reduce your

amount of insurance as necessary at any time

we become aware of the circumstance.

4. Contract Changes

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is August 31

preceding the cancellation date.

5. Cancellation and Termination Dates

In accordance with section 2 (Life of

Policy, Cancellation, and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are November 20.

6. Annual Premium

In addition to the provisions of section 5

(Annual Premium) of the Basic Provisions

(§ 457.8), for the 1998 crop year, the premium

amount otherwise payable for the 1998 crop

year will be increased by 46 percent as a

result of the additional six months of

coverage for that crop year.

7. Insured Crop

(a) In accordance with section 8 (Insured

Crop) of the Basic Provisions (§ 457.8), the

crop insured will be all of each citrus tree

crop designated in the Special Provisions in

the county for which a premium rate is

provided by the actuarial table that you elect

to insure:

(1) In which you have an ownership share;

(2) That is adapted to the area;
Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / Rules and Regulations 4119

(3) That is set out for the purpose of

growing fruit to be harvested for the

commercial production of fresh fruit or for

juice;

(4) That is irrigated; and

(5) That have the potential to produce at

least 70 percent of the county average yield

for the crop and age, unless a written

agreement is approved to insure the trees

with lesser potential.

(b) In addition to section 8 (Insured Crop)

of the Basic Provisions (§ 457.8), we do not

insure any citrus trees:

(1) During the crop year the application for

insurance is filed, unless we inspect the

acreage and consider it acceptable; or

(2) That have been grafted onto existing

root stock or nursery stock within the oneyear period prior to the date insurance

attaches.

(c) We may exclude from insurance or limit

the amount of insurance on any acreage that

was not insured the previous year.

8. Insurable Acreage

In lieu of the provisions in section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), that prohibit insurance attaching to

a crop planted with another crop, citrus trees

interplanted with another perennial crop are

insurable, unless we inspect the acreage and

determine that it does not meet the

requirements contained in your policy.

9. Insurance Period

In lieu of the provisions of section 11

(Insurance Period) of the Basic Provisions

(§ 457.8):

(a) The insurance period is as follows:

(1) For the 1998 crop year only, coverage

will begin on June 1, 1997, and will end on

November 20, 1998.

(2) For all subsequent crop years, coverage

begins on November 21 of the calendar year

prior to the year the insured crop normally

blooms, except that for the year of

application, if your application is received

after November 11 but prior to November 21,

insurance will attach on the 10th day after

your properly completed application is

received in our local office, unless we inspect

the acreage during the 10 day period and

determine that it does not meet the

requirements for insurability contained in

your policy. You must provide any

information that we require for the crop or

to determine the condition of the grove.

(3) The calendar date for the end of the

insurance period for each crop year is

November 20.

(b) If you acquire an insurable share in any

insurable acreage after coverage begins but on

or before the acreage reporting date for the

crop year, and after an inspection we

consider the acreage acceptable, insurance

will be considered to have attached to such

acreage on the calendar date for the

beginning of the insurance period.

(c) If you relinquish your insurable share

on any insurable acreage of citrus trees on or

before the acreage reporting date for the crop

year, insurance will not be considered to

have attached to and no premium or

indemnity will be due for such acreage for

that crop year unless:

(1) A transfer of coverage and right to an

indemnity, or a similar form approved by us,

is completed by all affected parties;

(2) We are notified by you or the transferee

in writing of such transfer on or before the

acreage reporting date; and

(3) The transferee is eligible for crop

insurance.

10. Causes of Loss

In accordance with the provisions of

section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur within the insurance period:

(a) Excess precipitation;

(b) Excess wind;

(c) Fire, unless weeds and other forms of

undergrowth have not been controlled or

pruning debris has not been removed from

the grove;

(d) Freeze;

(e) Hail;

(f) Tornado; or

(g) Failure of the irrigation water supply if

caused by an insured peril or drought that

occurs during the insurance period.

11. Duties In The Event of Damage or Loss

In addition to the requirements of section

14 (Duties in the Event of Damage or Loss)

of the Basic Provisions (§ 457.8), in case of

damage or probable loss, if you intend to

claim an indemnity on any unit, you must

allow us to inspect all insured acreage before

pruning, dehorning, or removal of any

damaged trees.

12. Settlement of Claim

(a) In the event of damage covered by this

policy, we will settle your claim on a unit

basis by:

(1) Determining the actual percent of

damage for the unit in accordance with

sections 12 (b), (c), and (d);

(2) Subtracting your deductible from the

percent of damage for the unit (this result

must be greater than zero to receive an

indemnity);

(3) Dividing the result of section 12(a)(2) by

your coverage level percentage;

(4) Multiplying the result of section

12(a)(3) by the amount of insurance per acre

determined in accordance with section

3(b)(2);

(5) Multiplying the result of section

12(a)(4) by the number of insured acres; and

(6) Multiplying the result of section

12(a)(5) by your share.

(b) The percent of damage for any tree will

be determined as follows:

(1) For damage occurring during the year

of set out (trees that have not been set out for

at least one year at the time insurance

attaches):

(i) One-hundred percent (100%) whenever

there is no live wood above the bud union;

(ii) Ninety percent (90%) whenever there is

less than 12 inches of live wood above the

bud union; or

(iii) The tree will be considered

undamaged whenever there is more than 12

inches of live wood above the bud union; or

(2) For damage occurring in any year

following the year of set out:

(i) The percentage of damage will be

determined by dividing the number of

scaffold limbs damaged in an area from the

trunk to a length equal to one-fourth (1⁄4) the

height of the tree, by the total number of

scaffold limbs before damage occurred.

Whenever this percentage exceeds 80

percent, the tree will be considered as 100

percent damaged.

(ii) The percent of damage for the unit will

be determined by computing the average of

the determinations made for the individual

trees. If this percent of damage exceeds 80

percent, the unit will be considered 100

percent damaged.

(c) The percent of damage on the unit will

be reduced by the percentage of damage due

to uninsured causes.

13. Written Agreement

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

13(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on January 22,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–2040 Filed 1–28–97; 8:45 am]

BILLING CODE 3410–FA–P

Animal and Plant Health Inspection

Service

9 CFR Part 78

[Docket No. 96–043–2]

Brucellosis in Cattle; State and Area

Classifications; Louisiana

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Affirmation of interim rule as

final rule.

SUMMARY: We are adopting as a final

rule, without change, an interim rule

that amended the brucellosis regulations

concerning the interstate movement of

cattle by changing the classification of

Louisiana from Class A to Class Free.