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.

Proposed Rules Federal Register

48956

Vol. 62, No. 181

Thursday, September 18, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

General Crop Insurance Regulations,

Canola and Rapeseed Endorsement;

and Common Crop Insurance

Regulations, Canola and Rapeseed

Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of

canola and rapeseed. 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 canola and rapeseed

pilot insurance program to a permanent

insurance program for the 1998 and

succeeding crop years.

DATES: Written comments and opinions

on this proposed rule will be accepted

until close of business October 20, 1997

and will be considered when the rule is

to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131.

FOR FURTHER INFORMATION CONTACT: Gary

Johnson, Insurance Management

Specialist, Product Development

Division, Research and Development,

Federal Crop Insurance Corporation, at

the Kansas City, MO, address listed

above, telephone (816) 926–3826.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget

(OMB) has determined this rule to be

not significant for the purposes of

Executive Order 12866, and, therefore,

this rule has not been reviewed by

OMB.

Paperwork Reduction Act of 1995

The information collection

requirements contained in these

regulations are being reviewed by OMB

pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. chapter 35) under

OMB control number 0563–0053. The

canola and rapeseed crop insurance

provisions are described in the

‘‘Background’’ section of this document.

The title of this information collection

is ‘‘Multiple Peril Crop Insurance.’’

The burden associated with the

canola and rapeseed crop insurance

provisions is estimated at 18 minutes

per response from approximately 8,060

respondents each year for a total

number of 2,574 hours. The information

to be collected includes a crop

insurance application and an acreage

report. Information collected from the

application and acreage report is

electronically submitted to FCIC by the

reinsured companies. Potential

respondents to this information

collection are producers of canola and

rapeseed that are eligible for Federal

crop insurance.

The information requested is

necessary for the reinsured companies

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

FCIC is requesting comments on the

following: (a) whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after submission to OMB.

Therefore, a comment to OMB is best

assured of having full effect if OMB

receives it within 30 days of

publication. This does not affect the

deadline for the public to comment on

the proposed regulation.

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) 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 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.

The availability of insurance for the

current population of canola and

rapeseed entities is limited to the six

pilot states that have the majority of the

canola and rapeseed production. Under

the current pilot program a producer is

required to complete an application and

acreage report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity. The insured must

also annually certify to the previous

years production if adequate records are

available to support the certification.

The producer must maintain the

production records to support the

certified information for at least three
Federal Register / Vol. 62, No. 181 / Thursday, September 18, 1997 / Proposed Rules 48957

years. This regulation does not alter

those requirements but extends it to the

national population of canola and

rapeseed producers. New provisions

included in this rule will not impact

small entities to a greater extent than

large entities. 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

because the information used to

determine eligibility is already

maintained in their office. 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 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 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.

Background

FCIC proposes to add to the Common

Crop Insurance Regulations (7 CFR part

457), a new section, 7 CFR 457.141,

Canola and Rapeseed Crop Insurance

Provisions. The canola and rapeseed

pilot program is an Actual Production

History (APH) plan of multiple peril

crop insurance. The Canola and

Rapeseed Crop Provisions are very

similar to other small grain crop

provisions. They allow for a variable

late planting period by region, however

which is different from other crop

provisions.

The pilot program for canola and

rapeseed has generally worked well.

Over 2,000 producers and

approximately a quarter million acres

from the selected pilot counties in

Idaho, Minnesota, Montana, North

Dakota, and Washington were covered

by the pilot program for both the 1995

and 1996 crop years. Prevented planting

losses, however, were high primarily

due to poor planting conditions. To

address this concern, this proposed rule

provides that the late planting period

and associated production guarantee

reduction may be varied in the Special

Provisions. Variance will be on a

county-by-county basis, and producers

will be notified by copy of the Special

Provisions. Also, final planting dates

were changed in some counties to

reduce prevented planting losses.

Prevented planting provisions will be

included in the Basic Provisions

(§ 457.8) which are in the proposed rule

process. Those provisions also have

been adopted in this proposed rule.

When the Basic Provisions (§ 457.8)

become final, however, the provisions

will be removed from the crop

provisions as necessary. Prevented

planting coverage will be provided for

canola and rapeseed if the actuarial

table contains levels of prevented

planted coverage for canola and

rapeseed.

The proposed provisions will be

effective for the 1998 and succeeding

crop years. These provisions will

replace the current unpublished

provisions that insure canola and

rapeseed under pilot program status.

List of Subjects in 7 CFR Part 457

Crop insurance, Canola and rapeseed

crop provisions.

Proposed Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation proposes to amend 7 CFR

part 457 as follows:

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

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 457.161 is added to read as

follows:

§ 457.161 Canola and rapeseed crop

insurance provisions.

The Canola and Rapeseed Crop

Insurance Provisions for the 1998 and

succeeding crop years are as follows:

FCIC policies:

Department of Agriculture

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured policies:

Canola and Rapeseed 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 and the Catastrophic Risk

Protection Endorsement, if applicable, will

control all provisions.

1. Definitions.

Canola. A crop of the genus Brassica as

defined in accordance with the Official

United States Standards for Grain—Subpart

C—U.S. Standards for Canola.

Days. Calendar days.

Final planting date. The date contained in

the Special Provisions for the insured crop by

which the crop must initially be planted in

order to be insured for the full production

guarantee.

FSA. The Farm Service Agency an agency

of the United States Department of

Agriculture, or any successor agency.

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

are those generally recognized by the

Cooperative State Research, Education, and

Extension Service as compatible with

agronomic and weather conditions in the

county.

Harvest. Combining or threshing for seed.

A crop that is swathed prior to combining is

not considered harvested.

Interplanted. Acreage on which two or

more crops or types are planted in a manner

that does not permit separate agronomic

maintenance or harvest of the insured crop.

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.

Late planted. Acreage planted to the

insured crop during the late planting period.

Late planting period. The period that

begins the day after the final planting date for

the insured crop type and ends 25 days after

the final planting date, unless otherwise

provided by the Special Provisions.

Local market price (Canola). The cash

price per pound for U.S. No. 2 grade canola

that reflects the maximum limits of quality
48958 Federal Register / Vol. 62, No. 181 / Thursday, September 18, 1997 / Proposed Rules

deficiencies allowable for the U.S. No. 2

grade canola.

Planted acreage. Land in which seed has

been placed by a machine appropriate for the

insured crop and planting method, at the

correct depth, into a seedbed which has been

properly prepared for the planting method

and production practice. Land on which seed

is initially spread onto the soil surface by any

method and subsequently is mechanically

incorporated into the soil in a timely manner

and at the proper depth will be considered

planted. Acreage planted in any other

manner will not be insurable unless

otherwise provided by the Special Provisions

or by written agreement.

Practical to replant. In lieu of the

definition of ‘‘Practical to replant’’ contained

in section 1 of the Basic Provisions (§ 457.8),

‘‘practical to replant’’ is defined as our

determination, after loss or damage to the

insured crop, based on factors, including but

not limited to, moisture availability,

condition of the field, marketing window,

and time to crop maturity, that replanting to

the insured crop will allow the crop to attain

maturity prior to the calendar date for the

end of the insurance period. It will not be

considered practical to replant after the end

of the late planting period unless replanting

is generally occurring in the area.

Price of damaged production. The cash

price per pound for canola that qualifies for

quality adjustment in accordance with

section 12 of these crop provisions.

Production guarantee (per acre). The

number of pounds determined by

multiplying the approved Actual Production

History (APH) yield per acre by the coverage

level percentage you elect.

Rapeseed. A crop of the genus Brassica

that contains at least 30 percent of an

industrial type of oil as shown on the Special

Provisions and that is measured on a basis

free from foreign material.

Replanting. Performing the cultural

practices necessary to replace the insured

crop and then replacing the insured crop in

the insured acreage with the expectation of

growing a successful crop.

Swathed. Severance of the stem and seed

pods from the ground and placing into

windrows without removal of the seed from

the pod.

Timely planted. Planted on or before the

final planting date designated in the Special

Provisions for the insured crop type in the

county.

Written Agreement. A written document

that alters designated terms of a policy in

accordance with section 15.

2. Unit Division.

(a) Unless limited by the Special

Provisions, a unit as defined in section 1 of

the Basic Provisions (§ 457.8) (basic unit)

may be divided into optional units if, for

each optional unit you meet all the

conditions of this section.

(b) Basic units may not be divided into

optional units on any basis other than as

described under this section.

(c) If you do not comply fully with these

provisions, we will combine all optional

units which 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 on the optional units that have

been combined will be refunded to you.

(d) All optional units you selected for the

crop must be identified on the acreage report

for that crop year.

(e) The following requirements must be

met for each optional unit:

(1) You must have provided records by the

production reporting date, which can be

independently verified, of planted acreage

and production for each optional unit for at

least the last crop year used to determine

your production guarantee;

(2) You must plant the crop in a manner

that results in a clear and discernable break

in the planting pattern at the boundaries of

each optional unit;

(3) For each crop year, 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 after loss adjustment

under the policy is completed; and

(4) Each optional unit must meet one or

more of the following criteria, as applicable,

unless otherwise specified by written

agreement:

(i) 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 which 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 discernable, each

optional unit must be located in a separate

farm identified by a single FSA Farm Serial

Number.

(ii) Optional Units on Acreage Including

Both Irrigated and Non-irrigated Practices: In

addition to, or instead of, establishing

optional units by section, section equivalent

or FSA Farm Serial Number, optional units

may be based on irrigated acreage or nonirrigated acreage if both are located in the

same section, section equivalent or FSA Farm

Serial Number. To qualify as separate

irrigated and non-irrigated optional units, the

non-irrigated acreage may not continue into

the irrigated acreage in the same rows or

planting pattern. The irrigated acreage may

not extend beyond the point at which your

irrigation system can deliver the quantity of

water needed to produce the yield on which

the guarantee is based, except the corners of

a field in which a center-pivot irrigation

system is used will be considered as irrigated

acreage if separate acceptable record of

production from the corners are not

provided. If the corners of a field in which

a center-pivot irrigation system is used do

not qualify as a separate non-irrigated

optional unit, they will be a part of the unit

containing the irrigated acreage. Nonirrigated acreage that is not a part of a field

in which a center-pivot irrigation system is

used may qualify as a separate optional unit

provided that all requirements of this section

are met.

(iii) Optional units by type as designated

by the Special Provisions: In addition to or

instead of establishing optional units by

section, section equivalent, FSA Farm Serial

Number, or non-irrigated and irrigated

acreage, optional units may be established by

type where authorized by the Special

Provisions.

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), you may select

only one price election for all the canola and

rapeseed in the county insured under this

policy unless the Special Provisions provide

different price elections by type, in which

case you may select one price election for

each canola and rapeseed type designated in

the Special Provisions. The price elections

you choose for each type must have the same

percentage relationship to the maximum

price offered by us for each type. For

example, if you choose 100 percent of the

maximum price election for a specific type,

you must also choose 100 percent of the

maximum price election for all other types.

4. Contract Changes.

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is November 30

preceding the cancellation date for counties

with a March 15 cancellation date, and June

30 preceding the cancellation date for all

other counties.

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:

State and county

Cancellation and

termination

dates

All counties in Georgia. ..... September 30.

All other counties without

fall planted types specified on the actuarial

table..

March 15.

All other counties with fall

planted types specified

on the actuarial table..

August 31.

6. Insured Crop.

In accordance with section 8 (Insured

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

crop insured will be all canola and rapeseed

in the county for which a premium rate is

provided by the actuarial table:

(a) In which you have a share;

(b) That is planted for harvest as seed; and

(c) That is not, unless allowed by Special

Provisions or by written agreement:

(1) Interplanted with another crop; or
Federal Register / Vol. 62, No. 181 / Thursday, September 18, 1997 / Proposed Rules 48959

(2) Planted into an established grass or

legume.

7. Insurable Acreage.

In addition to the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8):

(a) Any acreage of the insured crop that is

damaged before the final planting date, to the

extent that the majority of growers in the area

would normally not further care for the crop,

must be replanted unless we agree that it is

not practical to replant; and;

(b) We will not insure any acreage that

does not meet the rotation requirements

contained in the Special Provisions.

8. Insurance Period.

In accordance with the provisions of

section 11 (Insurance Period) of the Basic

Provisions (§ 457.8), the end of the insurance

period is October 31 of the calendar year in

which the crop is normally harvested.

9. 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

which occur during the insurance period:

(a) Adverse weather conditions;

(b) Fire;

(c) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(d) Plant disease, but not damage due to

insufficient or improper application of

disease control measures;

(e) Wildlife, unless proper measures to

control wildlife have not been taken;

(f) Earthquake;

(g) Volcanic eruption; or

(h) Failure of the irrigation water supply,

if applicable, caused by an insured cause of

loss that occurs during the insurance period.

10. Replanting Payment.

(a) In accordance with section 13

(Replanting Payment) of the Basic Provisions

(§ 457.8), a replanting payment is allowed if

the insured crop is damaged by an insurable

cause of loss to the extent that the remaining

stand will not produce at least 90 percent of

the production guarantee for the acreage, and

it is practical to replant or if we require you

to replant in accordance with section 7(a).

(b) The maximum amount of the replanting

payment per acre will be the lesser of 20

percent of the production guarantee or 175

pounds, multiplied by your price election,

multiplied by your insured share.

(c) When the canola and rapeseed is

replanted using a practice or type that is

uninsurable as an original planting, the

liability for the unit will be reduced by the

amount of the replanting payment which is

attributable to your share. The premium

amount will not be reduced.

11. Duties In The Event of Damage or Loss.

In accordance with the requirements of

section 14 (Duties in the Event of Damage or

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

representative samples of the unharvested

crop that we require must be at least 10 feet

wide and extend the entire length of each

field in the unit. The samples must not be

harvested or destroyed until the earlier of our

inspection or 15 days after harvest of the

balance of the unit is completed.

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 units, we will combine

all optional units for which acceptable

production records were not provided; or

(2) For any basic units, we will allocate any

commingled production to such units in

proportion to our liability on the harvested

acreage for the units.

(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 each result in section

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

each type, if applicable;

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

(4) Multiplying the total production to be

counted of each type, if applicable, (see

section 12(c)) by the respective price

election;

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

(6) Subtracting the total in section 12(b)(5)

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

(7) Multiplying the result in section

12(b)(6) by your share.

(c) The total production to count (pounds)

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) That is put to another use without our

consent;

(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 (mature

unharvested production may be adjusted for

quality deficiencies and excess moisture in

accordance with section 12(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 you 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 canola and rapeseed may be

adjusted for excess moisture and quality

deficiencies. If moisture adjustment is

applicable, it will be made prior to any

adjustment for quality.

(1) Canola and rapeseed production will be

reduced by 0.12 percent for each 0.1

percentage point of moisture in excess of 8.5

percent. We must be permitted to obtain

samples of the production to determine the

moisture content.

(2) Canola production will be eligible for

quality adjustment if:

(i) Deficiencies in quality, in accordance

with the Official United States Standards for

Grain, result in the canola not meeting the

grade requirements for U.S. No. 3 or better

(U.S. Sample grade) because of kernel

damage (excluding heat damage), or has a

musty, sour, or commercially objectionable

foreign odor; or

(ii) Substances or conditions are present

that are identified by the Food and Drug

Administration or other public health

organizations of the United States as being

injurious to human or animal health.

(3) Quality will be a factor in determining

your loss in canola production only if:

(i) The deficiencies, substances, or

conditions resulted from a cause of loss

against which insurance is provided under

these crop provisions and which occurs

within the insurance period;

(ii) The deficiencies, substances, or

conditions result in a net price for the

damaged production that is less than the

local market price;

(iii) All determinations of these

deficiencies, substances, or conditions are

made using samples of the production

obtained by us or by a disinterested third

party approved by us; and

(iv) The samples are analyzed by a grader

licensed to grade canola under the authority

of the United States Grain Standards Act or

the United States Warehouse Act with regard

to deficiencies in quality, or by a laboratory

approved by us with regard to substances or

conditions injurious to human or animal

health.

(4) Canola production that is eligible for

quality adjustment, as specified in sections

12(d) (2) and (3), will be reduced:

(i) In accordance with the quality

adjustment factors contained in the Special

Provisions; or

(ii) If quality adjustment factors are not

contained in the Special Provisions, quality

adjustment factors will be determined as

follows:

(A) Divide the price of damaged

production by the local market price to

determine the quality adjustment factor.

(B) The price of damaged production and

the local market price will be determined at

the earlier of the date such quality adjusted

production is sold or the date of final

inspection for the unit.

(C) Discounts used to establish the price of

damaged production will be limited to those

that are usual, customary, and reasonable.

(D) The price of damaged production will

not be reduced for:

(1) Moisture content;
48960 Federal Register / Vol. 62, No. 181 / Thursday, September 18, 1997 / Proposed Rules

(2) Damage due to uninsured causes;

(3) Drying, handling, processing, or any

other costs associated with normal

harvesting, handling, and marketing of the

canola; except, if the price of damaged

production can be increased by conditioning,

we may reduce the price of damaged

production after the production has been

conditioned by the cost of conditioning but

not lower than the price of damaged

production before conditioning. We may

obtain prices of damaged production from

any buyer of our choice. If we obtain prices

of damaged production from one or more

buyers located outside your local market

area, we will reduce such price of damaged

production by the additional costs required

to deliver the canola to those buyers; or

(4) Erucic acid or glucosinolates in excess

of the amount allowed under the definition

of canola contained in the Official United

States Standards for Grain.

(E) Factors not associated with grading

under the Official United States Standards

for Grain including, but not limited to

protein and oil, will not be considered; and

(F) The number of pounds remaining after

any reduction due to excessive moisture (the

moisture-adjusted gross pounds) of the

damaged or conditioned production will then

be multiplied by the quality adjustment

factor to determine the net production to

count.

(e) Any production harvested from plants

growing in the insured crop may be counted

as production of the insured crop on an

unadjusted weight basis.

13. Late Planting.

Insurance will be provided for acreage

planted to the insured crop after the final

planting date in accordance with the

following:

(a) The production guarantee or amount of

insurance for each acre planted to the

insured crop during the late planting period

will be reduced by each day planted after the

final planting date by:

(1) One percent (1%) for the 1st through

the 10th day; and

(2) Two percent (2%) for the 11th through

the 25th day; or

(3) Unless otherwise provided by the

Special Provisions.

(b) The production guarantee or amount of

insurance for each acre of the insured crop

that is planted to the insured crop after the

late planting period (or after the final

planting date for crops that do not have a late

planting period) will be the same as the

production guarantee or amount of insurance

that is provided for acreage of the insured

crop that is prevented from being planted

(see section 14). Such acreage must have

been prevented from being planted by an

insurable cause occurring within the

insurance period for prevented planting

coverage.

(c) The premium amount for insurable

acreage planted to the insured crop after the

final planting date will be the same as that

for timely planted acreage. If the amount of

premium you are required to pay (gross

premium less our subsidy) for acreage

planted after the final planting date exceeds

the liability on such acreage, coverage for

those acres will not be provided (no premium

will be due and no indemnity will be paid

for such acreage).

14. Prevented Planting.

(a) A prevented planting payment may be

made to you for eligible acreage you were

prevented from planting if:

(1) You were prevented from planting the

insured crop by an insured cause that occurs:

(i) On or after the sales closing date

contained in the Special Provisions for the

insured crop in the county for the crop year

the application for insurance is accepted; or

(ii) For any subsequent crop year, on or

after the sales closing date for the previous

crop year for the insured crop in the county,

provided insurance has been in force

continuously since that date. Cancellation for

the purpose of transferring the policy to a

different insurance provider for the

subsequent crop year will not be considered

a break in continuity for the purpose of the

preceding sentence; and

(2) You notify us within 72 hours after the

final planting date if you are prevented from

planting by such date, whether or not you

intend to plant any acreage of the insured

crop after the final planting date. In addition

to this notice, you must include any acreage

of the insured crop that was prevented from

being planted on your acreage report.

(b) The Actuarial Table contains the levels

of prevented planting coverage that you may

elect for the crop on or before the sales

closing date. If you do not elect one of the

available coverages by the sales closing date,

you will receive the prevented planting

coverage specified in the Crop Provisions. If

you have a Catastrophic Risk Protection

Endorsement, you will receive the lowest

level of prevented planting coverage

available for the crop.

(c) The premium amount for acreage that

is prevented from being planted will be the

same as that for timely planted acreage. If the

amount of premium you are required to pay

(gross premium less our subsidy) for acreage

that is prevented from being planted exceeds

the liability on such acreage, coverage for

those acres will not be provided (no premium

will be due and no indemnity will be paid

for such acreage).

(d) Drought or failure of the irrigation

water supply will not be considered to be an

insurable cause of loss for the purposes of

prevented planting unless, on the final

planting date:

(1) For non-irrigated acreage, the area that

is prevented from being planted is classified

by the Palmer Drought Severity Index as

being in a severe or extreme drought; or

(2) For irrigated acreage, there is not a

reasonable probability of having adequate

water to carry out an irrigated practice.

(e) The maximum number of acres that

may be eligible for a prevented planting

payment for the crop will be determined as

follows:

(1) The base eligible acres for the insured

crop will be determined in accordance with

the following table.

Type of crop

Base eligible acres (if you have produced the

crop for which insurance was available in any

of the 4 most recent crop years)

Base eligible acres (if you have not produced

the crop for which insurance is available in

any of the 4 most recent crop years)

(i)(A) The crop’s insurance guarantee is based

on APH or the crop does not require yield

certification and the crop is not required to

be contracted with a processor to be insured.

(B) The maximum number of acres certified

for APH purposes or reported for insurance

for the crop in any one of the 4 most recent

crop years (not including reported prevented

planting acreage that was planted to a substitute crop other than an approved cover

crop).

(C) The number of acres approved by written

agreement in accordance with the provisions in this section and section 15.

(ii)(A) The crop must be contracted with a

processor to be insured and the contract

specifies a number of acres contracted for

the crop year..

(B) The number of acres of the crop specified

in the processor contract..

(C) The number of acres of the crop specified

in the processor contract.

(iii)(A) The crop must be contracted with a

processor to be insured and the processor

contract specifies a quantity of production

that will be accepted..

(B) The result of dividing the quantity of production stated in the processor contract by

your approved yield (For the purposes of

establishing the base number of prevented

planting acres, any reductions applied to the

transitional yield for failure to certify acreage

and production for a prior year will not be

used.).

(C) The result of dividing the quantity of production stated in the processor contract by

your approved yield (For the purposes of

establishing the base number of prevented

planting acres, any reductions applied to the

transitional yield for failure to certify acreage

and production for a prior year will not be

used.)
Federal Register / Vol. 62, No. 181 / Thursday, September 18, 1997 / Proposed Rules 48961

(2) All requests for written agreement

under this section must be submitted to us

on or before the sales closing date and

include, by crop, the number of acres of all

crops for which insurance is offered under

the authority of the Act that you intend to

plant in the county.

(3) The total number of acres requested for

all crops cannot exceed the number of acres

of cropland in your farming operation for the

crop year.

(4) The number of acres determined in

section 14(e)(1)(i)(B) may be increased by

multiplying it by the ratio of the total

cropland acres that you are farming this year

(if greater) to the total cropland acres that you

farmed in the previous year, provided that

you submit proof to us on or before the sales

closing date for the insured crop that you

have purchased or leased additional land,

that acreage will be released from any USDA

program which prohibits harvest of a crop, or

that the additional acreage has not been

cropped in any of the four most recent crop

years. Such acreage must have been

purchased, leased, released from the USDA

program, or intended to be brought into

production in time to plant it for the current

crop year.

(5) The result of section 14(e)(1) or 14(e)(4),

whichever is applicable, will be reduced by

subtracting the number of acres of the crop

that are timely and late planted.

(f) Regardless of the number of eligible

acres determined in section 14(e), prevented

planting coverage will not be provided for

any acreage:

(1) That does not constitute at least 20

acres or 20 percent of the insurable crop

acreage in the unit, whichever is less (We

will assume that any prevented planting

acreage within a field that contains planted

acreage would have been planted to the same

crop that is planted in the field, unless the

prevented planting acreage constitutes at

least 20 acres or 20 percent of the insurable

acreage in the field and you can prove that

you intended to plant such acreage to another

crop);

(2) For which the Actuarial Table does not

designate a premium rate unless a written

agreement designates such premium rate;

(3) Used for conservation purposes or

intended to be left unplanted under any

program administered by the USDA;

(4) On which the insured crop is prevented

from being planted, if you or any other

person receives a prevented planting

payment for any crop for the same acreage in

the same crop year, unless you have coverage

greater than that applicable to the

Catastrophic Risk Protection Plan of

Insurance and have records of acreage and

production that are used to determine your

approved yield that show the acreage was

double-cropped in each of the last 4 years in

which the insured crop was grown on the

acreage;

(5) On which the insured crop is prevented

from being planted, if any crop from which

any benefit is derived under any program

administered by the USDA is planted and

fails, or if any crop is planted and harvested,

hayed or grazed on the same acreage in the

same crop year (other than a cover crop

which may be hayed or grazed after the final

planting date for the insured crop), unless

you have coverage greater than that

applicable to the Catastrophic Risk Protection

Plan of Insurance and have records of acreage

and production that are used to determine

your approved yield that show the acreage

was double-cropped in each of the last 4

years in which the insured crop was grown

on the acreage;

(6) Of a crop that is prevented from being

planted if a cash lease payment is also

received for use of the same acreage in the

same crop year (not applicable if acreage is

leased for haying or grazing only);

(7) For which planting history or

conservation plans indicate that the acreage

would have remained fallow for crop rotation

purposes;

(8) That is in excess of the number of acres

eligible for a prevented planting payment or

the number of eligible acres physically

available for planting;

(9) For which you cannot provide proof

that you had the inputs available to plant and

produce a crop with the expectation of at

least producing the yield used to determine

the production guarantee or amount of

insurance;

(10) Based on an irrigated practice

production guarantee or amount of insurance

unless adequate irrigation facilities were in

place to carry out an irrigated practice on the

acreage prior to the insured cause of loss that

prevented you from planting; or

(11) Based on a price election, amount of

insurance or production guarantee for a crop

type that you did not plant in at least one of

the four most recent years. Types for which

separate price elections, amounts of

insurance, or production guarantees are

available must be included in your APH

database in at least one of the most recent

four years, or, crops that do not require yield

certification (crops for which the insurance

guarantee is not based on APH) must be

reported on your acreage report in at least

one of the four most recent crop years.

(g) The prevented planting payment for any

eligible acreage within a unit will be

determined by:

(1) Multiplying the liability per acre for

timely planted acreage of the insured crop

(the amount of insurance per acre or the

production guarantee per acre multiplied by

the price election for the crop, or type if

applicable) by the prevented planting

coverage level percentage you elected, or that

is contained in the Crop Provisions if you did

not elect a prevented planting coverage level

percentage;

(2) Multiplying the result of section

14(g)(1) by the number of eligible prevented

planting acres in the unit; and

(3) Multiplying the result of section

14(g)(2) by your share.

15. Written Agreements.

Terms of this policy which are specifically

designated for the use of written agreements

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

15(e);

(b) The application for written agreement

must contain all 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

crops years will be in accordance with

printed policy); and

(e) An application for 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 September

11, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–24769 Filed 9–17–97; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–SW–29–AD]

RIN 2120–AA64

Airworthiness Directives; Sikorsky

Aircraft Corporation Model S–61A, D,

E, L, N, NM, R, and V Helicopters

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to

Sikorsky Aircraft Corporation (Sikorsky)

Model S–61 A, D, E, L, N, NM, R, and

V helicopters. This proposal would

require a nondestructive inspection

(NDI) for cracks in the main rotor shaft

(shaft), and require removal of any shaft

with a crack and replacement with an

airworthy shaft. This proposal would

also require appropriate marking of

shafts and log book entries by the

operator to determine the shaft

retirement life, and would establish a

new retirement life for the shaft. This

proposal is prompted by four reports of

cracks occurring in helicopters that

were utilized in repetitive external lift

(REL) operations. The actions specified

by the proposed AD are intended to

detect a fatigue crack in the shaft, that

could result in shaft structural failure,

loss of power to the main rotor, and