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

58621

Vol. 62, No. 210

Thursday, October 30, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

General Crop Insurance Regulations,

Canning and Processing Bean

Endorsement; and Common Crop

Insurance Regulations, Processing

Bean 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

processing beans. 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 canning and processing bean

crop insurance endorsement with the

Common Crop Insurance Policy for ease

of use and consistency of terms, and to

restrict the effect of the current canning

and processing bean crop insurance

endorsement to the 1997 and prior crop

years.

EFFECTIVE DATE: December 1, 1997.

FOR FURTHER INFORMATION CONTACT: Ron

Nesheim, Insurance Management

Specialist, 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

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, the public was afforded 60 days to

submit written comments and opinions

on information collection requirements

currently being reviewed by OMB

pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35)

under OMB control number 0563–0053.

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) 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.

The amount of work required of

insurance companies will not increase

because the information used to

determine eligibility is already

maintained at their office and the other

information required is already being

gathered as a result of the present

policy. No additional actions are

required as a result of this action on the

part of either the producer or the

reinsured company. Additionally, the

regulation does not require any action

on the part of the small entities than is

required on the part of the large entities.

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 Reforms. 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, May 1, 1997, FCIC

published a proposed rule in the

Federal Register at 62 FR 23675 to add

to the Common Crop Insurance

Regulations (7 CFR part 457), a new

section, 7 CFR 457.155, Processing Bean

Crop Insurance Provisions. The new

provisions will be effective for the 1998

and succeeding crop years. These

provisions will replace and supersede

the current provisions for insuring

processing beans found at 7 CFR

401.118 (Canning and Processing Bean

Endorsement). FCIC also amends 7 CFR
58622 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

401.118 to limit its effect to the 1997

and prior crop years.

Following publication of the proposed

rule, the public was afforded 30 days to

submit written comments and opinions.

A total of 27 comments were received

from a reinsured company and an

insurance service organization. The

comments received, and FCIC’s

responses, are as follows:

Comment: An insurance service

organization recommended that several

definitions common to most crops be

put into the Basic Provisions.

Response: The Basic Provisions,

which are currently in the regulatory

review process, will include definitions

of commonly used terms, and this rule

will be revised to delete these

definitions when the Basic Provisions

are published as a final rule.

Comment: An insurance service

organization recommended that the

sentence in the definition of ‘‘bypassed

acreage’’ that states ‘‘Bypassed acreage

upon which an indemnity is payable

will be considered to have a zero yield

for Actual Production History (APH)

purposes’’ be deleted since it is

addressed elsewhere and does not

belong in the definition.

Response: FCIC has deleted the

second sentence from, and revised, the

definition of bypassed acreage.

Provisions have been added in section

3 to explain bypassed acreage when

determining approved yield.

Comment: An insurance service

organization and a reinsured company

expressed concern with the definition of

‘‘good farming practices’’ which makes

reference to ‘‘cultural practices

generally in use in the county * * *

recognized by the Cooperative State

Research, Education, and Extension

Service as compatible with agronomic

and weather conditions in the county.’’

The commenters questioned whether

cultural practices that are not explicitly

recognized (or possibly known) by the

Cooperative State Research, Education,

and Extension Service might exist. The

commenters indicated that the term

‘‘county’’ in the definition of ‘‘good

farming practice’’ should be changed to

‘‘area.’’ The insurance service

organization also recommended adding

the word ‘‘generally’’ before ‘‘recognized

by the Cooperative State Research,

Education, and Extension

Service * * *.’’

Response: The Cooperative State

Research, Education, and Extension

Service (CSREES) recognizes farming

practices that are considered acceptable

for producing processing beans. If a

producer is following practices

currently not recognized as acceptable

by the CSREES, such recognition can be

sought by interested parties. Use of the

term ‘‘generally’’ will only create an

ambiguity and make the definition more

difficult to administer. Although the

cultural practices recognized by the

CSREES may only pertain to specific

areas within a county, the actuarial

documents are on a county basis.

Therefore, no change has been made.

Comment: An insurance service

organization recommended that the

definition of ‘‘replanting’’ be clarified by

inserting ‘‘processing beans’’ between

the last two words (‘‘successful’’ and

‘‘crop’’) of the sentence.

Response: To be consistent with

language contained in the proposed rule

of the Basic Provisions, FCIC has

revised the definition to clarify that

‘‘replanting’’ is performing the cultural

practices necessary to prepare the land

to replace the seed of the damaged or

destroyed crop and then replacing the

seed in the insured acreage.

Comment: An insurance service

organization recommended that section

2(c) clarify whether optional units are

available if the processor contract

stipulates the number of contracted

acres, or only if the contract does not

specify an amount of production.

Response: FCIC agrees and has

amended section 2(a) to clarify that for

processor contracts that stipulate a

specific amount of production to be

delivered, the basic unit will consist of

all acreage planted to the insured crop

in the county that will be used to fulfill

the processor contract, and optional

units will not be established. The

language in section 2 has also been

revised and reformatted to clearly state

the requirements for both the acreage

based and production based processor

contracts.

Comment: A reinsured company and

an insurance service organization asked

if, in section 2(f)(3) of the proposed rule,

measurement of stored production is

applicable to processing beans.

Response: Processing beans are not

put into storage before processing.

Therefore, FCIC has removed this

provision.

Comment: An insurance service

organization recommended removal of

the opening phrase in section 2(f)(4)(ii)

of the proposed rule that states ‘‘In

addition to, or instead of, establishing

optional units by section, section

equivalent, or FSA Farm Serial Number,

* * *’’ since section 2(f)(4) of the

proposed rule specifies that ‘‘Each

optional unit must meet one or more of

the following criteria, * * *.’’

Response: FCIC agrees and has

revised section 2(b)(5) of the final rule

accordingly.

Comment: An insurance service

organization suggested that section 3

should be part of the Basic Provisions

since it appears to be standard language

in most crop provisions.

Response: The requirement that the

price election (for each type, varietal

group, etc.) have the same percentage

relationship to the maximum price does

not apply to all crop policies. FCIC

considered this suggestion when it

revised the Basic Provisions. Section

3(a) is revised to clarify that the

percentage of the maximum price

election the insured chooses for one

type will be applicable to all other types

insured under this policy.

Comment: An insurance service

organization stated that section 6, which

requires the insured to provide a copy

of the processor contract no later than

the acreage reporting date, could

provide a loophole by allowing

producers to wait until acreage

reporting time to decide if they want to

have coverage.

Response: There is no evidence that

allowing the producer to provide a copy

of the processor contract as late as the

acreage reporting date has resulted in

producers waiting to decide until the

acreage reporting date if they want

coverage. Processing bean producers

usually have a processor contract inforce by the final planting date. The

requirement to provide a copy of the

processor contract with the acreage

report is convenient for the producer.

Therefore, no change has been made.

Comment: An insurance service

organization questioned whether any

processor contract would allow

interplanted processing beans or

processing beans planted into an

established grass or legume. The

commenter further indicated that

consideration should be given to

inserting the language in section 7(a)(4)

of the proposed rule into the Basic

Provisions.

Response: FCIC agrees that processing

beans have seldom, if ever, been

interplanted with another crop or

planted into an established grass or

legume. However, production practices

are constantly evolving. FCIC chooses to

retain the provisions of section 7(a)(3) of

the final rule to accommodate such

developments if they should occur. In

addition, the interplanted language is

not consistent among the crop policies

and, therefore, will be retained in the

crop provisions.

Comment: An insurance service

organization indicated that language in

section 7(b) that states ‘‘You will be

considered to have a share in the

insured crop if, under the processor

contract, you retain possession of the
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations 58623

acreage on which the processing beans

are grown, * * *’’ suggests that only a

landlord would have a share in the

insured crop. The commenter

questioned whether the provision in

section 7(b) is already covered in

sections 7(a)(1) and (3).

Response: The language in section

7(b) was intended to cover producers

who have a crop share agreement, rent,

or own acreage. The word ‘‘possession’’

has been changed to ‘‘control’’ for

clarification. Section 7(a) specifies

requirements for insurance, while

section 7(b) specifies requirements for a

share in the crop. Therefore, both

provisions are necessary.

Comment: A reinsured company and

an insurance service organization

questioned whether section 9(b), which

states that the insurance period ceases

on the date you harvested sufficient

production to fulfill your processor

contract, conflicts with section 12(a)

that states, ‘‘We will determine your

loss on a unit basis.’’ The commenters

questioned whether production to count

from an appraisal prior to harvest would

be included when determining

fulfillment of the processor contract.

The insurance service organization also

questioned if the insured would know

when enough production is harvested to

fulfill the processor contract. This

commenter asked if production in

excess of the contracted amount is

considered production to count for APH

or loss adjustment or whether the

processor settlement sheet is an

acceptable record. The insurance service

organization noted that the provisions

in section 9(b) state ‘‘* * * the

insurance period ends when the

production delivered to the processor

equals the amount of production stated

in the processor contract.’’ However, the

commenter questioned whether

‘‘delivered to’’ is the same as ‘‘accepted

by’’ the processor.

Response: Section 9(b) does not

conflict with section 12(a). For

processor contracts based on a stated

amount of production, FCIC is only

insuring the contract amount and the

producer can only obtain basic units by

processor contract. Therefore, once the

contract is fulfilled, insurance ceases on

the unit and there is no payable loss. If

the contract is not fulfilled and there is

still unharvested production, any

insurable cause of loss is covered. With

respect to the issue of production from

appraised acreage, such production will

not count toward fulfillment of the

processor contract, although it may be

used to determine production to count

for the unit or the producer’s approved

yield if the acreage is not bypassed due

to an insurable cause of loss that renders

such production unacceptable to the

processor. With respect to when the

producer would know when the

processor contract was fulfilled, records

are kept as production is delivered to

the processor. Therefore, the producer

can determine when the contract was

fulfilled. All production from the unit,

including any excess of the amount

stated in the contract, will be

considered as production to count when

determining the producer’s approved

yield. For the purposes of loss

adjustment, the amount shown on the

settlement sheet, plus any appraised

production that was not bypassed due to

an insurable cause that rendered the

production unacceptable to the

processor, will be included as

production to count. FCIC has revised

section 9(b) to clarify that insurance

ceases when the contract is fulfilled if

the processor contract stipulates a

specific amount of production.

Comment: An insurance service

organization questioned the provision in

section 10(a)(4), which states that

insurance is provided against ‘‘Plant

disease on acreage not planted to the

processing beans the previous crop year,

* * * ’’ The commenter assumed this

would apply even if a rotation

requirement was not specified in the

Special Provisions.

Response: This provision has been

revised to specify that insurance

coverage will be provided against plant

disease on acreage not planted to

processing beans the previous crop year,

unless provided for in the Special

Provisions or by written agreement, but

not damage due to insufficient or

improper application of disease control

measures.

Comment: An insurance service

organization suggested changing the

wording in section 10(a)(8) to eliminate

reference to 10(a)(1) through (7) because

the causes of loss have been identified.

Response: Referencing 10(a)(1)

through (7) makes it clear that failure of

the irrigation water supply must be due

to these specific causes of loss.

Therefore, no change has been made.

Comment: An insurance service

organization questioned how to

determine or enforce the provision in

section 10(b) which states that

insurance coverage is not provided if

acreage is bypassed based on ‘‘* * * the

availability of a crop insurance

payment.’’

Response: The adjuster should be able

to make this determination based on

factors such as a harvest pattern exists

that clearly indicates the processor is

bypassing producers with crop

insurance coverage in favor of producers

without crop insurance, even though the

quality of the crop is similar. Language

has been added to state that an

indemnity will be denied or have to be

repaid if it is determined that the

bypassed acreage was due to the

availability of a crop insurance

payment.

Comment: An insurance service

organization questioned a need for

section 9(b) of the proposed rule, which

states that the insurance period ends on

‘‘The date you harvested sufficient

production to fulfill your processor

contract,’’ because section 10(b)(5) of

the proposed rule states that loss of

production will not be insured if it is

‘‘Due to damage that occurs to

unharvested production after you

deliver the production required by the

processor contract.’’ The commenter

indicated that this provision is not

necessary since any damage occurring

after delivery would be outside the

insurance period, as indicated in section

9(b).

Response: FCIC agrees and section

10(b)(5) has been deleted.

Comment: An insurance service

organization stated that the language in

section 11(c) does not address timely

notice if damage is discovered less than

15 days prior to harvest.

Response: FCIC agrees and has

revised section 11(c) to clarify that an

immediate notice of loss is required if

damage is discovered within 15 days

prior to harvest or during harvest.

Comment: An insurance service

organization stated that section 12(b),

which explains how a claim is settled,

is too wordy and difficult to follow.

Response: This section has been

revised to clarify the settlement of

claims calculation, including the

addition of an example.

Comment: An insurance service

organization suggested that bypassed

acreage payments by the processor be

considered to have some value to count

as with salvage grains.

Response: There is nothing in this

policy which precludes a producer from

obtaining any other form of insurance

against losses as long as such insurance

is not under the Federal Crop Insurance

Act. Since the producer contributes to

the unharvested acreage pool, such

payment will not be considered when

determining production to count.

Comment: An insurance service

organization asked if section

12(c)(1)(i)(E) of the proposed rule

permits bypassed acreage to be

appraised as production to count.

Response: FCIC has removed section

12(c)(1)(i)(E) of the proposed rule and

added section 12(c)(1)(iii) of the final

rule to clarify that production to count

includes appraised production on
58624 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

acreage that is bypassed unless the

acreage was bypassed due to a cause of

loss which would not be acceptable

under the terms of the processor

contract.

Comment: An insurance service

organization stated that section

12(c)(1)(iii) of the proposed rule should

not allow the insured to defer settlement

and wait for a later, generally lower,

appraisal, especially on crops that have

a short ‘‘shelf life.’’

Response: A later appraisal will be

necessary only if the insurance provider

agrees that such an appraisal would

result in a more accurate determination

and if the producer continues to care for

the crop. If the producer does not

continue to care for the crop, the

original appraisal will be used.

Therefore, no change has been made.

Comment: A reinsured company and

an insurance service organization asked

if there will be any provisions for late

or prevented planting.

Response: FCIC agrees that a late

planting period for processing beans

may be appropriate for some growing

areas. Therefore, section 13 is revised to

provide a late planting period if allowed

by the Special Provisions and the

insured provides written approval from

the processor by the acreage reporting

date that it will accept the production

from the late planted acreage. Prevented

planting provision has also been added

if available in the Basic Provisions.

Comment: A reinsured company and

an insurance service organization

suggested that written agreements

should not be limited to one year. If no

substantive changes occur from one year

to the next, allow the written agreement

to be continuous.

Response: Written agreements are

intended to supplement policy terms or

permit insurance in unusual situations

that require modification of the

otherwise standard insurance

provisions. If such practices continue

year to year, they should be

incorporated into the policy or Special

Provisions. It is important to minimize

written agreement exceptions to assure

that the insured is well aware of the

specific terms of the policy. Therefore,

no change has been made to the

requirement that written agreements be

renewed each year. FCIC has proposed

that the Written Agreement provisions

be included in the Basic Provisions.

In addition to the changes described

above, FCIC has made the following

minor editorial changes and has

amended the following Processing Bean

Crop Insurance Provisions:

1. Amended and clarified the

paragraph preceding section 1 to

include the Catastrophic Risk Protection

Endorsement.

2. Amended the definitions of ‘‘base

contract price,’’ ‘‘bypassed acreage,’’

‘‘processor,’’ and ‘‘processor contract’’

for clarification. The definition of

‘‘practical to replant’’ is amended to

clarify that it will not be considered

practical to replant unless the acreage

can produce at least 75 percent of the

approved yield and the processor agrees

in writing that it will accept the

production from the replanted acreage.

The definition of ‘‘processor contract’’ is

amended to clarify that multiple

contracts with the same processor that

specify amounts of production will be

considered as a single processor

contract unless the contracts are for

different types of processing beans.

Added the definitions of ‘‘approved

yield,’’ ‘‘processing beans,’’ and ‘‘type.’’

A definition of ‘‘broker’’ is added and

pertinent sections of the policy have

been revised to accommodate those

producers who have a broker as an

intermediary with a processor.

3. Section 2—Removed the provision

in section 2(a) of the proposed rule that

allowed for establishment of a basic unit

by snap type beans or lima type beans,

if provided for in the Special Provisions.

Section 2(b)(5)(C) of the final rule is

added to provide optional units by

processing bean type. This change

makes the provision consistent with

other crop provisions offering optional

units by type. In addition, the reference

to ‘‘written agreement’’ was removed

from section 2(b) of the proposed rule

and was added to section 2(b)(5) of the

final rule to clarify which provision may

be revised by written agreement.

4. Section 7—Removed section 7(a)(2)

of the proposed rule. This provision is

not necessary since section 7(a)(3) of the

proposed rule stated that the processing

beans must be grown under, and in

accordance with, the requirements of a

processor contract. If grown under a

processor contract, the processing beans

will be canned or frozen. Section 7(c) is

amended for clarity.

5. Section 9—Changed the end of

insurance to October 5 for all processing

beans in the states of Idaho, Oregon, and

Washington. Section 9(a)(2) is amended

to clarify that the insurance period ends

when the crop should have been

harvested but was not harvested. Also,

the word ‘‘fresh’’ has been removed

from sections 9(d)(3), (4) and (5) because

these Crop Provisions are not applicable

to fresh market crops.

6. Section 10—Amended section 10(a)

for clarity. Section 10(b) is reformatted

and amended for clarity. Also, removed

section 10(b)(3) of the proposed rule

which stated ‘‘Due to processing beans

not being timely harvested unless such

delay in harvesting is solely and directly

due to an insured cause of loss;’’

because it is unnecessary.

7. Section 11—Clarified that the

insured must give notice of loss within

3 days after the date harvest should

have started if the acreage will not be

harvested. The insured must also

provide documentation stating why the

acreage is bypassed.

8. Section 12—A new section 12(c)(3)

of the final rule is added to clarify that

appraised production will include all

harvested production from any other

insurable units that have been used to

fill the processor contract for a unit.

Section 12(d) of the proposed rule is

deleted because of duplication with

section 12(c)(2).

9. Section 14—Clarified that only

terms of this policy that are specifically

designated for the use of written

agreements may be altered by written

agreement if the listed conditions are

met.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Canning and

processing beans, Canning and

processing bean endorsement.

Final Rule

Accordingly, for 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 § 401.118

is revised to read as follows:

§ 401.118 Canning and processing bean

endorsement.

The provisions of the Canning and

Processing Bean Endorsement for the

1988 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. Section 457.155 is added to read as

follows:
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations 58625

§ 457.155 Processing bean crop insurance

provisions.

The Processing Bean 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:

Processing Bean Crop Provisions

If a conflict exists among the policy

provisions the order of priority is as follows:

(1) the Catastrophic Risk Endorsement, if

applicable; (2) the Special Provisions; (3)

these Crop Provisions; and (4) the Basic

Provisions (§ 457.8) with (1) controlling (2),

etc.

1. Definitions

Approved yield. Your yield determined in

accordance with 7 CFR part 400 subpart G.

Base contract price. The price stipulated in

the processor contract for the grade factor or

sieve size that is designated in the Special

Provisions, if applicable, without regard to

discounts or incentives that may apply.

Broker. A business enterprise that has all

the licenses and permits required by the state

in which it operates, and has a long term

agreement in writing with a processor to

purchase and deliver processing beans.

Bypassed acreage. Land on which

production is ready for harvest but the

processor elects not to accept such

production so it is not harvested.

Days. Calendar days.

FSA. The Farm Service Agency, an agency

of the United States Department of

Agriculture, or a successor agency.

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.

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 required by the bean processor

contract with the processing company, and

recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Harvest. The mechanical picking of bean

pods from the vines.

Interplanted. Acreage on which two or

more crops 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.

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 that has been

properly prepared for the planting method

and production practice. Processing beans

must initially be placed in rows far enough

apart to permit mechanical cultivation.

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, 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,

time to crop maturity, and marketing

window, that replanting 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 unless the replanted

acreage can produce at least 75 percent of the

approved yield, and the processor agrees in

writing that it will accept the production

from the replanted acreage.

Processing beans. Lima, snap, or other

bean types identified in the Special

Provisions that are grown under a processor

contract to be canned or frozen and sold for

human consumption.

Processor. Any business enterprise

regularly engaged in canning or freezing

processing beans for human consumption,

that possesses all licenses and permits for

processing beans required by the state in

which it operates, and that possesses

facilities, or has contractual access to such

facilities, with enough equipment to accept

and process the contracted beans within a

reasonable amount of time after harvest.

Processor contract. A written agreement

between the producer and a processor, or

between the producer and a broker,

containing at a minimum:

(a) The producer’s commitment to plant

and grow processing beans, and to deliver the

bean production to the processor or broker;

(b) The processor’s, or broker’s,

commitment to purchase all the production

stated in the processor contract; and

(c) A base contract price.

Multiple contracts with the same processor

that specify amounts of production will be

considered as a single processor contract

unless the contracts are for different types of

processing beans.

Production guarantee (per acre). The

number of tons determined by multiplying

the approved actual production history yield

per acre by the coverage level percentage you

elect.

Replanting. Performing the cultural

practices necessary to prepare the land to

replace the seed of the damaged or destroyed

crop and then replacing the seed in the

insured acreage.

Timely planted. Planted on or before the

final planting date designated in the Special

Provisions for the insured crop in the county.

Ton. Two thousand (2,000) pounds

avoirdupois.

Type. A category of processing beans

identified as a type in the Special Provisions.

Written agreement. A written document

that alters designated terms of this policy in

accordance with section 14.

2. Unit Division

For processor contracts that stipulate:

(a) The amount of production to be

delivered:

(1) In lieu of the definition of unit in

section 1 of the Basic Provisions, a basic unit

will consist of all acreage planted to the

insured crop in the county that will be used

to fulfill the processor contract;

(2) There will be no more than one basic

unit for each processor contract;

(3) In accordance with section 12, all

production from any basic unit in excess of

the amount under contract will be included

as production to count if such production is

applied to any other basic unit for which the

contracted amount has not been fulfilled; and

(4) Optional units will not be established.

(b) The number of acres to be planted:

(1) Unless limited by the Special

Provisions, a unit as defined in section 1 of

the Basic Provisions (basic unit) may be

divided into optional units if, for each

optional unit, you meet all the conditions of

this section. Basic units may not be divided

into optional units on any basis other than

as described in this section;

(2) 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 the optional units that

have been combined will be refunded to you;

(3) All optional units you selected for the

crop year must be identified on the acreage

report for that crop year;

(4) The following requirements must be

met for each optional unit:

(i) You must have records, 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;

(ii) 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; and

(iii) You must maintain records of

marketed 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

(5) 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, such
58626 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

as Spanish grants, as the equivalent of

sections for unit purposes. In areas that have

not been surveyed using sections or their

equivalent systems 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:

Optional units may be based on irrigated

acreage and non-irrigated 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 the 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

records 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 other requirements of this

section are met.

(iii) Optional Units by Types: Optional

units may be established by type. To qualify

as separate optional units, the acreage of one

type may not continue into the acreage of

another type in the same rows or planting

pattern.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

In addition to the requirements of section

3 of the Basic Provisions:

(a) You may select only one price election

for all the processing beans in the county

insured under this policy unless the Special

Provisions provide different price elections

by type. The percentage of the maximum

price elections you choose for one type will

be applicable to all other types insured under

this policy.

(b) The appraised production from

bypassed acreage that could have been

accepted by the processor will be included

when determining your approved yield.

(c) Acreage that is bypassed because it was

damaged by an insurable cause of loss will

be considered to have a zero yield when

determining your approved yield.

4. Contract Changes

In accordance with section 4 of the Basic

Provisions, the contract change date is

November 30 preceding the cancellation

date.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic

Provisions, the cancellation and termination

dates are March 15.

6. Report of Acreage

In addition to the provisions of section 6

of the Basic Provisions, you must provide a

copy of all processor contracts to us on or

before the acreage reporting date.

7. Insured Crop

(a) In accordance with section 8 of the

Basic Provisions, the crop insured will be all

the processing beans in the county for which

a premium rate is provided by the actuarial

table:

(1) In which you have a share;

(2) That are grown under, and in

accordance with, the requirements of a

processor contract executed on or before the

acreage reporting date and are not excluded

from the processor contract at any time

during the crop year; and

(3) That are not (unless allowed by the

Special Provisions or by written agreement):

(i) Interplanted with another crop; or

(ii) Planted into an established grass or

legume.

(b) You will be considered to have a share

in the insured crop if, under the processor

contract, you retain control of the acreage on

which the processing beans are grown, you

are at risk of loss, and the processor contract

provides for delivery of the processing beans

under specified conditions and at a

stipulated base contract price.

(c) A commercial processing bean producer

who is also a processor or broker may

establish an insurable interest if the

following requirements are met:

(1) The producer must comply with these

Crop Provisions;

(2) Prior to the sales closing date, the Board

of Directors or officers of the processor or the

broker must execute and adopt a resolution

that contains the same terms as an acceptable

processor contract. Such resolution will be

considered a processor contract under this

policy; and

(3) Our inspection reveals that the

processing facilities comply with the

definition of a processor contained in these

Crop Provisions.

8. Insurable Acreage

In addition to the provisions of section 9

of the Basic Provisions:

(a) Any acreage of the insured crop that is

damaged before the final planting date, to the

extent that the majority of producers 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 acreage that does not

meet any rotation requirements, if applicable,

contained in the Special Provisions.

9. Insurance Period

In lieu of the provisions contained in

section 11 of the Basic Provisions, regarding

the end of the insurance period, insurance

ceases at the earlier of:

(a) The date the processing beans:

(1) Were destroyed;

(2) Should have been harvested but were

not harvested;

(3) Were abandoned; or

(4) Were harvested;

(b) The date you harvest sufficient

production to fulfill your processor contract

if the processor contract stipulates a specific

amount of production to be delivered;

(c) Final adjustment of a loss; or

(d) The date shown below for the end of

the insurance period in the calendar year in

which the processing beans would normally

be harvested, unless otherwise agreed to in

writing, as follows:

(1) October 30 for all processing beans in

the state of Arkansas;

(2) October 15 for all processing beans in

the states of Delaware, Maryland, and New

Jersey;

(3) October 5 for all processing beans in the

states of Idaho, Oregon, and Washington;

(4) September 30 for snap beans in the state

of New York;

(5) September 20 for snap beans in all other

states; or

(6) October 5 for lima beans in all other

states.

10. Causes of Loss

In accordance with the provisions of

section 12 of the Basic Provisions:

(a) Insurance is provided only against the

following causes of loss that occur during the

insurance period:

(1) Adverse weather conditions, including:

(i) Excessive moisture that prevents the

harvesting equipment from entering the field

or that prevents the timely operation of

harvesting equipment; and

(ii) Abnormally hot or cold temperatures

that cause an unexpected number of acres

over a large producing area to be ready for

harvest at the same time, affecting the timely

harvest of a large number of such acres or the

processing of such production is beyond the

capacity of the processor, either of which

causes the acreage to be bypassed.

(2) Fire;

(3) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(4) Plant disease on acreage not planted to

processing beans the previous crop year. (In

certain instances, contained in the Special

Provisions or in a written agreement, acreage

planted to processing beans the previous year

may be covered. Damage due to insufficient

or improper application of disease control

measures is not covered);

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of the irrigation water supply,

if due to a cause of loss contained in section

10 (a)(1) through (7) that occurs during the

insurance period.

(b) In addition to the causes of loss

excluded in section 12 of the Basic

Provisions, we will not insure any loss of

production due to:

(1) Bypassed acreage because of:

(i) The breakdown or non-operation of

equipment or facilities; or

(ii) The availability of a crop insurance

payment. We may deny any indemnity

immediately in such circumstance or, if an

indemnity has been paid, require you to

repay it to us with interest at any time

acreage was bypassed due to the availability

of a crop insurance payment; or

(2) Your failure to follow the requirements

contained in the processor contract.
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations 58627

11. Duties In The Event of Damage or Loss

In addition to the notice required by

section 14 of the Basic Provisions, you must

give us notice:

(a) Not later than 48 hours after:

(1) Total destruction of the processing

beans on the unit; or

(2) Discontinuance of harvest on a unit on

which unharvested production remains.

(b) Within 3 days after the date harvest

should have started on any acreage that will

not be harvested unless we have previously

released the acreage. You must also provide

acceptable documentation of the reason the

acreage was bypassed. Failure to provide

such documentation will result in our

determination that the acreage was bypassed

due to an uninsured cause of loss. If the crop

will not be harvested and you wish to destroy

the crop, you must leave representative

samples of the unharvested crop for our

inspection. The samples must be at least 10

feet wide and extend the entire length of each

field in each unit. The samples must not be

destroyed until the earlier of our inspection

or 15 days after notice is given to us; and

(c) At least 15 days prior to the beginning

of harvest if you intend to claim an

indemnity on any unit, or immediately if

damage is discovered during the 15 day

period or during harvest. If you fail to notify

us and such failure results in our inability to

inspect the damaged production, we will

consider all such production to be

undamaged and include it as production to

count. You are not required to delay harvest.

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 such 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, by type if

applicable;

(2) Multiplying each result of section

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

type if applicable;

(3) Totaling the results of section 12(b)(2)

if there are more than one type;

(4) Multiplying the total production to

count (see section 12(c)), for each type if

applicable, by its respective price election;

(5) Totaling the results of section 12(b)(4)

if there are more than one type;

(6) Subtracting the results of section

12(b)(4) from the results of section 12(b)(2) if

there is only one type or subtracting the

results of section 12(b)(5) from the result of

section 12(b)(3) if there are more than one

type; and

(7) Multiplying the result of section

12(b)(6) by your share.

For example:

You have a 100 percent share in 100 acres

of snap type processing beans in the unit,

with a guarantee of 3.0 tons per acre and a

price election of $110.00 per ton. You are

only able to harvest 200 tons. Your

indemnity would be calculated as follows:

(1) 100 acres × 3.0 tons = 300 tons guarantee;

(2) 300 tons × $110.00 price election =

$33,000.00 value of guarantee;

(3) 200 tons × $110.00 price election =

$22,000.00 value of production to count;

(4) $33,000.00 ¥ $22,000.00 = $11,000.00

loss; and

(5) $11,000.00 × 100 percent = $11,000.00

indemnity payment.

You also have a 100 percent share in 100

acres of lima type processing beans in the

same unit, with a guarantee of 1.0 ton per

acre and a price election of $225.00 per ton.

You are only able to harvest 75 tons. Your

total indemnity for both snap and lima types

processing beans would be calculated as

follows:

(1) 100 acres × 3.0 tons = 300 tons guarantee

for the snap type, and 100 acres × 1.0 ton

= 100 tons guarantee for the lima type;

(2) 300 tons × $110.00 price election =

$33,000.00 value of guarantee for the

snap type, and 100 tons × $225.00 price

election = $22,500.00 value of guarantee

for the lima type;

(3) $33,000.00 + $22,500.00 = $55,500.00

total value of guarantee;

(4) 200 tons × $110.00 price election =

$22,000.00 value of production to count

for the snap type, and 75 tons × $225.00

price election = $16,875.00 value of

production to count for the lima type;

(5) $22,000.00 + $16,875.00 = $38,875.00

total value of production to count;

(6) $55,500.00 ¥ $38,875.00 = $16,625.00

loss; and

(7) $16,625.00 loss × 100 percent =

$16,625.00 indemnity payment.

(c) The total production to count, specified

in tons, 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

production records that are acceptable to us.

(ii) Production lost due to uninsured

causes.

(iii) Production on acreage that is bypassed

unless the acreage was bypassed due to an

insured cause of loss which resulted in

production which would not be acceptable

under the terms of the processor contract.

(iv) Potential production on insured

acreage that you intend to put to another use

or abandon, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) If you do not elect to continue to care

for the crop, we may give you consent to put

the acreage to another use if you agree to

leave intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us (The amount of

production to count for such acreage will be

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or fail to

provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) If you elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested.

(2) All harvested processing bean

production from the insurable acreage. The

amount of such production will be:

(i) The usable tons of processing beans

shown on the processor settlement sheet, if

available; or

(ii) Determined by dividing the dollar

amount paid, payable, or which should have

been paid under the terms of the processor

contract for the quality and quantity of beans

to be delivered to the processor by the base

contract price per ton; and

(3) All harvested processing bean

production from any other insurable units

that have been used to fulfill your processor

contract for this unit.

13. Late and Prevented Planting

Late planting provisions are not applicable

to processing beans unless allowed by the

Special Provisions and you provide written

approval from the processor by the acreage

reporting date that it will accept the

production from the late planted acres when

it is expected to be ready for harvest.

Prevented planting insurance will be

available if contained in the Basic Provisions.

14. Written Agreement

Terms of this policy that 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

14(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.
58628 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

Signed in Washington, D.C., on October 27,

1997.

Suzette M. Dittrich,

Deputy Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–28771 Filed 10–29–97; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 450 and 457

Prune Crop Insurance Regulations;

and Common Crop Insurance

Regulations, Prune 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

prunes. 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 prune crop insurance

regulations with the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current prune crop

insurance regulations to the 1997 and

prior crop years.

EFFECTIVE DATE: October 30, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, United

States Department of Agriculture, 9435

Holmes Road, Kansas City, MO 64313,

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, the public was afforded 60 days to

submit written comments and opinions

on information collection requirements

currently being reviewed by OMB

pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35)

under OMB control number 0563–0053.

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. Therefore, 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.

The amount of work required of

insurance companies will not increase

because the information used to

determine eligibility is already

maintained at their office. The other

information required is already being

gathered as a result of the present

policy. No additional requirements are

imposed on the producer or reinsured

company as a result of this regulation.

Additionally, the regulation does not

impose any burden on small entities

than it does on large entities. 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 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 Thursday, July 10, 1997, FCIC

published a proposed rule in the

Federal Register at 62 FR 37000 to add

to the Common Crop Insurance

Regulations (7 CFR part 457) a new

section, 7 CFR 457.133, Prune Crop

Insurance Provisions. The new

provisions will be effective for the 1998

and succeeding crop years. These

provisions will replace and supersede

the current provisions for insuring

prunes found at 7 CFR part 450 (Prune

Crop Insurance Regulations). FCIC also

amends 7 CFR part 450 to limit its effect

to the 1997 and prior crop years.

Following publication of the proposed

rule, the public was afforded 30 days to

submit written comments and opinions.

A total of 13 comments were received

from the reinsured companies and an

insurance service organization. The

comments received and FCIC’s

responses are as follows:

Comment: An insurance service

organization recommended that several

definitions common to most crops be

put into the Basic Provisions.

Response: The Basic Provisions,

which are currently in the regulatory

review process, will include definition

of commonly used terms and this rule

will be revised to delete those

definitions when the Basic Provisions

are published as a final rule.

Comment: A reinsured company and

an insurance service organization

expressed concern with the definition of

‘‘good farming practice,’’ which states