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

47745

Vol. 62, No. 176

Thursday, September 11, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 441 and 457

General Crop Insurance Regulations;

Table Grape Crop Insurance

Regulations and Common Crop

Insurance Regulations; Table Grape

Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes specific

crop provisions for the insurance of

table grapes. 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 table grape crop insurance

regulations under the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current table grape crop

insurance regulations to the 1997 and

prior crop years.

EFFECTIVE DATE: October 14, 1997.

FOR FURTHER INFORMATION CONTACT: John

Meyer, Insurance Management

Specialist, Product Development

Division, Policy Development and

Standards Branch, 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

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order No. 12866, and, therefore, this

rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, 62 FR 2059, the public was

afforded 60 days to submit written

comments on information collection

requirements currently being reviewed

by OMB under OMB control number

0563–0003. No public comments were

received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Pub. L.

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) 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.

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 the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant economic 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 crop is

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. 12988

This final 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 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 Wednesday, January 15, 1997,

FCIC published a proposed rule in the

Federal Register at 62 FR 2059 to add

to the Common Crop Insurance

Regulations (7 CFR part 457), a new

section, 7 CFR 457.149, (Table Grape

Crop Insurance Provisions). The new

provisions will replace and supersede

the current provisions for insuring table

grapes found at 7 CFR part 441 and will
47746 Federal Register / Vol. 62, No. 176 / Thursday, September 11, 1997 / Rules and Regulations

be effective for the 1998 and succeeding

crop years.

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments. A total of 14

comments were received from reinsured

companies and an insurance service

organization. The comments received,

and FCIC’s responses, follow:

Comment: A reinsured company

questioned the need to define ‘‘FSA’’

and recommended it be deleted.

Response: FCIC agrees with the

comment and has deleted the definition.

Comment: A reinsured company

suggested that in the definition of

‘‘Good farming practices,’’ the phrase

‘‘* * * by the Cooperative State

Research, Education, and Extension

Service’’ be deleted since some

producers carry out practices that are

compatible but not ‘‘generally’’

recognized by the Extension Service.

Response: FCIC has removed the word

‘‘generally’’ from this part of the

definition. However, FCIC believes that

the Cooperative State Research,

Education, and Extension Service

(CSREES) recognizes farming practices

that are considered acceptable for

producing table grapes. If a producer is

following practices currently recognized

as acceptable by the CSREES, there is no

reason why such recognition cannot be

sought by interested parties. CSREES

pertains only to specific areas within a

county. Such limitations would be

considered by FCIC.

Comment: A reinsured company

suggested that in the definition of

‘‘Irrigated practice,’’ the words ‘‘and

quality’’ be added after the words

‘‘* * * providing the quantity.’’

Response: FCIC agrees that water

quality is an important issue. However,

since no standards or procedures have

been developed to measure water

quality for insurance purposes, quality

cannot be included in the definition.

Therefore, no change will be made.

Comment: An insurance service

organization questioned whether the

change in the number of pounds of table

grapes in a lug will require a

recalculation of previously certified

production history to bring it up-to-date,

or does the change only apply to future

production history.

Response: For 1996 and prior years,

the certified actual production history

must be adjusted by use of a factor to

conform with the new weight standard

for lugs. For all California districts and

Arizona, the adjustment factor is 1.1000.

Comment: An insurance service

organization stated that the language in

section 2(a) ‘‘A unit * * * will be

divided into basic units * * *’’ may be

confusing since unit division usually

deals with optional units (as in section

2.(b)). It was suggested this be rewritten

to read, ‘‘Basic units as defined in

section 1 * * * will be established for

each table grape variety you insure.’’

Response: FCIC agrees the provisions

may be confusing and has clarified this

section.

Comment: An insurance service

organization indicated that section

2(f)(3) states that non-contiguous land

qualifies for separate optional units and

that basic units by non-contiguous land

are allowed by current provisions. It

was suggested that this policy change be

identified in the Summary of Changes

so agents and policyholders are made

aware of the change and can make

necessary adjustments.

Response: FCIC agrees that the change

from basic to optional unit status should

have been identified in the Summary of

Changes. FCIC will describe this change

to insurance providers when the policy

is released for use.

Comment: A reinsured company

suggested including the acreage

reporting date in section 6 of the crop

provisions.

Response: FCIC believes the acreage

reporting date should remain in the

Special Provisions because it could vary

by region. Therefore, no changes have

been made to these provisions.

Comment: A reinsured company

recommended a new paragraph (7(b)(3))

be added to the policy to read as

follows: ‘‘That, after grafting over, have

reached the third growing season or

produced at least 150 lugs per acre,

whichever occurs first.’’

Response: FCIC agrees that mature

grapes ‘‘grafted over’’ to produce a

variety other than originally grown tend

to produce faster than normal rootstock

that is set out; however, occasionally

grafts do not ‘‘take’’ and the vines may

never produce 150 lugs per acre. Table

grapes must have produced 150 lugs per

acre before they are insurable.

Therefore, no change has been made.

Comment: A reinsured company

suggested that the first sentence in

section 9(a)(1) be shortened to read,

‘‘Coverage begins on February 1 of each

crop year.’’ The industry believes the

additional wordage only adds confusion

and suggests a poor producer could

avoid an inspection by sending an

application in early. Also, they

questioned whether 10 days was

sufficient time for insurance providers

to send adjusters out to inspect every

table grape vineyard, and stated that

section 7(a)(4) already specifies that the

vineyard must be acceptable to the

insurance provider.

Response: The provisions were

revised to clarify that late-filed

applications are not allowed. The ten

day waiting period is necessary to

prevent insurance against an immediate

cause of loss and avoid unnecessary

exposure to uninsured causes of loss.

The insurance provider must expedite

its review of the application and any

supporting documentation filed by the

producer, determine if a visual

inspection is necessary, and perform

any necessary inspections within the

10-day period. The period of 10 days is

believed appropriate to meet the needs

of both the producer and the insurance

provider. Section 7(a)(4) does not

require an inspection, it just states, that

if there is an inspection, the orchard

must be acceptable. This is unrelated to

the requirement for an inspection

during the 10 day period to determine

whether the producer is attempting to

insure an existing or probable loss.

Therefore, no change has been made.

Comment: A reinsured company

suggested that section 9(a)(2) be

changed to read, ‘‘This policy is

continuous after the first year of

application, except the calendar date for

the end of the insurance period (as

specified in the Special Provisions) for

each crop year, is the date during the

calendar year in which the grapes are

normally harvested.’’

Response: Section 2(a) of the Basic

Provisions states that the policy is

continuous. Therefore, it is not

necessary to repeat this provision in the

Crop Provisions.

Comment: A reinsured company

recommended removing the ‘‘end of

insurance period dates’’ from the policy

since they are currently listed in the

Special Provisions. This would allow

the addition of dates for new varieties

or revisions of existing dates to be

accomplished more quickly.

Response: FCIC agrees with this

recommendation and has amended the

provisions accordingly.

Comment: A reinsured company

stated that phylloxera should not be

excluded as a cause of loss, but should

be included under ‘‘Disease or insect

infestation’’ referenced in section

10(b)(1). The comment also stated that

it is impossible to determine the amount

of loss or damage attributable

specifically to phylloxera and that

implementation would be a loss

adjusting nightmare and impossible to

audit.

Response: It is widely accepted that

Type B phylloxera will ultimately

destroy nearly all vineyards that were

planted on non-resistant root stock. The

wine industry has done extensive

research and worked with producers to

develop plans to destroy and replace

non-resistant vineyards and some
Federal Register / Vol. 62, No. 176 / Thursday, September 11, 1997 / Rules and Regulations 47747

vineyards have been destroyed

immediately after finding infestations.

Providing coverage for phylloxera

related losses may inhibit the efforts

being made to stop the spread of this

pest and may be considered to promote

poor pest management practices.

Attributing losses to phylloxera should

be no more difficult than attributing

losses to any other uninsurable cause of

loss. Therefore, no changes have been

made.

Comment: An insurance service

organization suggested combining the

provisions contained in section 13(e)

with the provisions in section 13(a).

Response: The requirement that

requests for written agreement be

executed by the sales closing date is

intended to be the rule and the

application submitted after the sales

closing date will only be an exception

to this rule in limited circumstances.

Therefore, no change will be made.

Comment: Two reinsured companies

and an insurance service organization

suggested the provision in section 13(d)

stating ‘‘Each written agreement will

only be valid for one year’’ be deleted.

The valid period should be stated in the

wording of the agreement. In most cases,

written agreements should be

continuous, like policies. Limiting

written agreements to one year only

increases administrative cost,

complexity and opportunity for

misunderstanding and error.

Response: Written agreements are

intended to change policy terms or

permit insurance in unusual or

previously unknown situations. If such

practices continue year to year, they

should be incorporated into the policy

or Special Provisions. It is important to

keep non-uniform exceptions to the

minimum and to insure that the insured

is well aware of the specific terms of the

policy. Therefore, no change will be

made.

In addition to the changes indicated

above, FCIC has made the following

changes:

1. Preamble—Include the Catastrophic

Risk Protection Endorsement for

clarification.

2. Section 1—Add a definition for

‘‘adapted’’ to clarify the provisions that

identify the insured crop (section 7(a)),

and change the lug (box) weight in

Arizona from 22 pounds to 20 pounds

to be consistent with comparable

marketing areas in Riverside and

Imperial Counties, California (Coachella

Valley).

3. Section 2—Clarify that written

agreements may only be used to obtain

optional units on other than noncontiguous land.

4. Section 11(c)—Clarify that the

damaged crop must not be destroyed

until the earlier of 15 days from the date

notice of loss was given or after the

insurance provider gives written

consent to do so. Failure to meet this

requirement will result in all such

production to be considered undamaged

and included as production to count.

List of Subjects in 7 CFR Parts 441 and

457

Crop insurance, Table grape, Table

grape crop insurance regulations.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 441 and 457, as follows:

PART 441—TABLE GRAPE CROP

INSURANCE REGULATIONS FOR THE

1987 THROUGH 1997 CROP YEARS

1. The authority citation for 7 CFR

part 441 is amended to read as follows:

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

2. The part heading is revised to read

as set forth above.

3. Subpart heading ‘‘Subpart—

Regulations for the 1987 and

Succeeding Crop Years’’ is removed.

4. Section 441.7 is amended by

revising the introductory text of

paragraph (d) to read as follows:

§ 441.7 The application and policy.

* * * * *

(d) The application for the 1987 and

succeeding crop years is found at

subpart D of part 400, General

Administrative Regulations (7 CFR

400.37, 400.38). The provisions of the

Table Grape Insurance Policy for the

1987 through 1997 crop years are as

follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

4. The authority citation for 7 CFR

part 457 continues to read as follows:

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

5. Section 457.149 is added to read as

follows:

§ 457.149 Table grape crop insurance

provisions.

The Table Grape Crop Insurance

Provisions for the 1998 and succeeding

crop years are as follows:

For FCIC policies:

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

For reinsured policies:

(Insurance provider’s name or other

appropriate heading)

For both FCIC and reinsured policies:

TABLE GRAPE CROP PROVISIONS

If a conflict exists among the Basic

Provisions (§ 457.8), these Crop Provisions,

the Special Provisions, and the Catastrophic

Risk Protection Endorsement, if applicable,

the Special Provisions will control these

Crop Provisions and the Basic Provisions;

and these Crop Provisions will control the

Basic Provisions. The Catastrophic Risk

Protection Endorsement, if applicable, will

control all other provisions.

1. Definitions

Adapted. Varieties that are recognized by

the Cooperative State Research, Education,

and Extension Service as compatible with

agronomic and weather conditions in the

county.

Cluster thinning and removal. Removing

parts of an immature cluster or the entire

cluster of grapes.

Days. Calendar days.

Direct marketing. Sale of the insured crop

directly to consumers without the

intervention of an intermediary such as a

wholesaler, retailer, packer, processor,

shipper or buyer. Examples of direct

marketing include selling through an on-farm

or roadside stand, farmer’s market, and

permitting the general public to enter the

field for the purpose of picking all or a

portion of the crop.

Good farming practices. The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the area.

Graft. To unite a shoot or bud (scion) with

a rootstock or an existing vine in accordance

with recommended practices to form a living

union.

Harvest. Severing the clusters of mature

grapes from the vine.

Interplanted. Acreage on which two or

more crops are planted in any form of

alternating or mixed pattern.

Irrigated practice. A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Lug. Twenty pounds of table grapes in the

Coachella Valley, California district; 21

pounds in all other California districts; and

20 pounds in Arizona.

Non-contiguous. 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.
47748 Federal Register / Vol. 62, No. 176 / Thursday, September 11, 1997 / Rules and Regulations

Production guarantee (per acre). The

number of lugs of grapes determined by

multiplying the approved APH yield per acre

by the coverage level percentage you elect.

Set out. Physically planting the grape plant

in the vineyard.

Table grapes. Grapes that are grown for

commercial sale for human consumption as

fresh fruit on acreage where the cultural

practices to produce fresh marketable grapes

are carried out.

Written agreement. A written document

that alters designated terms of this policy in

accordance with section 13.

2. Unit Division

(a) In addition to the provisions of crop

definition of unit contained in section 1

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

a basic unit will also be established for each

table grape variety you insure.

(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.

(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 premium paid

for the purpose of electing optional units will

be refunded to you for the units combined.

(e) All optional units that you elect must

be identified on the acreage report for that

crop year.

(f) The following requirements must be met

for each optional unit:

(1) You must have records, which can be

independently verified, of acreage and

production for each optional unit for at least

the last crop year used to determine your

production guarantee;

(2) You must have records of marketed

production or measurement of stored

production from each optional unit

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and

(3) Unless otherwise allowed by a written

agreement, each optional unit must be

located on non-contiguous land.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

In addition to the requirements of section

3 (Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities) of

the Basic Provisions (§ 457.8):

(a) You may select only one price election

and coverage level for each table grape

variety in the county insured under this

policy.

(b) You must report, by the production

reporting date designated in section 3

(Insurance Guarantees, Coverage Levels, and

Prices for Determining Indemnities) of the

Basic Provisions (§ 457.8), by variety if

applicable:

(1) Any damage, removal of bearing vines,

change in practices, or any other

circumstance that may reduce the expected

yield below the yield upon which the

insurance guarantee is based, and the number

of affected acres;

(2) The number of bearing vines on

insurable and uninsurable acreage;

(3) The age of the vines and the planting

pattern; and

(4) For the first year of insurance for

acreage interplanted with another perennial

crop, and any time the planting pattern of

such acreage is changed:

(i) The age of the interplanted crop, and

type if applicable;

(ii) The planting pattern; and

(iii) Any other information that we request

in order to establish your approved yield.

We will reduce the yield used to establish

your production guarantee as necessary,

based on our estimate of the effect of the

following: Interplanting perennial crop,

removal of vines, damage, change in

practices and any other circumstance that

may affect the yield potential of the insured

crop. If you fail to notify us of any

circumstance that may reduce your yields

from previous levels, we will reduce your

production guarantee 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 October 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 January 31.

6. Report of Acreage

In addition to the requirements of section

6 (Report of Acreage) of the Basic Provisions

(§ 457.8), you must report the acreage of table

grapes in the county by variety.

7. Insured Crop

(a) In accordance with section 8 (Insured

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

crop insured will be any insurable variety of

grapes in the county that you elect and for

which a premium rate is provided by the

actuarial table:

(1) In which you have a share;

(2) That are grown for harvest as table

grapes;

(3) That are adapted to the area; and

(4) That are grown in a vineyard that, if

inspected, is considered acceptable by us.

(b) In addition to table grapes not insurable

under section 8 (Insured Crop) of the Basic

Provisions (§ 457.8), we do not insure any

table grapes grown on vines:

(1) That, after being set out or grafted, have

not reached the number of growing seasons

designated by the Special Provisions; or

(2) That have not produced an average of

at least 150 lugs of table grapes per acre in

at least one of the most recent three crop

years in your actual production history base

period. However, we may inspect and agree

in writing to insure acreage that has not

produced this amount.

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, table

grapes 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

(a) In accordance with the provisions of

section 11 (Insurance Period) of the Basic

Provisions (§ 457.8):

(1) Coverage begins on February 1 of each

crop year, except that for the year of

application, if your application is received

after January 22 but prior to February 1,

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 insurability

requirements. You must provide any

information that we require for the crop or

to determine the condition of the vineyard.

(2) The calendar date for the end of the

insurance period for each crop year is the

date during the calendar year in which the

grapes are normally harvested or contained

in the Special Provisions as provided to you

on or before the contract change date.

(b) In addition to the provisions of section

11 (Insurance Period) of the Basic Provisions

(§ 457.8):

(1) 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.

(2) If you relinquish your insurable share

on any insurable acreage of table grapes on

or before the acreage reporting date for the

crop year, insurance will not be considered

to have attached to, and no premium will be

due or indemnity paid for such acreage for

that crop year unless:

(i) A transfer of coverage and right to an

indemnity, or a similar form approved by us,

is completed by all affected parties;

(ii) We are notified by you or the transferee

in writing of such transfer on or before the

acreage reporting date; and

(iii) The transferee is eligible for crop

insurance.

10. Causes of Loss

(a) 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 during the insurance period:

(1) Adverse weather conditions;

(2) Fire, unless weeds and other forms of

undergrowth have not been controlled or

pruning debris has not been removed from

the vineyard;

(3) Wildlife;

(4) Earthquake;

(5) Volanic eruption; or
Federal Register / Vol. 62, No. 176 / Thursday, September 11, 1997 / Rules and Regulations 47749

(6) Failure of irrigation water supply, if

caused by an insured cause of loss ((a)(1)

through (5) of this section) that occurs during

the insurance period.

(b) In addition to the causes of loss

excluded in section 12 (Causes of Loss) of the

Basic Provisions (§ 457.8), we will not insure

against damage or loss of production due to:

(1) Disease or insect infestation, unless

adverse weather:

(i) Prevents the proper application of

control measures or causes properly applied

control measures to be ineffective; or

(ii) Causes disease or insect infestation for

which no effective control mechanism is

available;

(2) Phylloxera, regardless of cause; or

(3) Inability to market the table grapes for

any reason other than actual physical damage

from an insurable cause specified in this

section. For example, we will not pay you an

indemnity if you are unable to market due to

quarantine, boycott, or refusal of any person

to accept production.

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), the

following will apply:

(a) You must notify us within 3 days after

the date harvest should have started if the

crop will not be harvested.

(b) You must notify us at least 15 days

before any production from any unit will be

sold by direct marketing. We will conduct an

appraisal that will be used to determine your

production to count for production that is

sold by direct marketing. If damage occurs

after this appraisal, we will conduct an

additional appraisal. These appraisals, and

any acceptable records provided by you, will

be used to determine your production to

count. Failure to give timely notice that

production will be sold by direct marketing

will result in an appraised amount of

production to count of not less than the

production guarantee per acre if such failure

results in our inability to make the required

appraisal.

(c) If the crop has been damaged during the

growing season, you must provide notice at

least 15 days prior to the beginning of harvest

if you intend to claim an indemnity as a

result of the damage previously reported.

You must not destroy the damaged crop until

the earlier of 15 days from the date you gave

notice of loss, or our written consent to do

so. If you fail to meet the requirements of this

section all such production will be

considered undamaged and included as

production to count.

12. Settlement of Claim

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

separate acceptable production records:

(1) For any optional unit, we will combine

all optional units for which such production

records were not provided; or

(2) For any 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 section

12(b)(1) by the respective price election for

the variety;

(3) Totaling the results in section 12(b)(2);

(4) Multiplying the total production to be

counted of the variety (see section 12(c)) by

the respective price election;

(5) Totaling the results in section 12(b)(4);

(6) Subtracting the result of section 12(b)(5)

from the result in section 12(b)(3); and

(7) Multiplying the result of section

12(b)(6) by your share.

(c) The total production to count (in lugs)

from all insurable acreage on the unit will

include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

per acre for acreage:

(A) That is abandoned;

(B) That is sold by direct marketing if you

fail to meet the requirements in section 11(b);

(C) That is damaged solely by uninsured

causes; or

(D) For which you fail to provide

acceptable production records;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production that meets, or

would meet if properly handled, the

California Department of Food and

Agriculture minimum standards for table

grapes; and

(iv) Potential production on insured

acreage that you intend to abandon or no

longer care for, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end. If you do not agree with our

appraisal, we may defer the claim only if you

agree to continue to care for the crop. We will

then make another appraisal when you notify

us of further damage or that harvest is general

in the area unless you harvested the crop, in

which case we will use the harvested

production. If you do not continue to care for

the crop, our appraisal made prior to

deferring the claim will be used to determine

the production to count; and

(2) All harvested production from

insurable acreage regardless of condition or

disposition. The quantity of production to

count for table grape production damaged by

insurable causes within the insurance period

that is marketed for any use other than table

grapes will be determined by multiplying the

greater of (1) the value of the table grapes per

ton or (2) $50, by the number of tons and

dividing that result by the highest price

election available for the insured unit. This

result will be the number of lugs to count.

13. Written Agreement

Terms of this policy which are specifically

designated as allowing the use of a written

agreement 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, DC, on September

4, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–23906 Filed 9–10–97; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Part 235

[INS No. 1796–96]

RIN 1115–AE53

Canadian Border Boat Landing

Program

AGENCY: Immigration and Naturalization

Service, Justice.

ACTION: Interim rule with request for

comments.

SUMMARY: This rule amends the

Immigration and Naturalization Service

(Service) regulations to clarify and

standardize procedures for the

application, issuance, and use of Form

I–68, Canadian Border Boat Landing

Card. This rule promotes uniformity and

clarity in the application requirements,

decision-making process, and issuance

of entry documents, while enhancing

effective and efficient border

enforcement within the Canadian

Border Boat Landing (I–68) program.

DATES: Effective Date: This rule is

effective September 11, 1997.

Comment Date: Written comments

must be received on or before November

10, 1997.

ADDRESSES: Please submit written

comments, in triplicate, to the Policy

Directives and Instructions Branch,

Immigration and Naturalization Service,

425 I Street, NW., Room 5307,

Washington, DC 20536. To ensure

proper handling, please reference INS

No. 1796–96 on your correspondence.

Comments are available for public

inspection at this location by calling