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
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations 58629

‘‘* * * recognized by the Cooperative

State Research, Education, and

Extension Service as compatible * * *’’

since there may be accepted practices

not so recognized. The commenters

suggested revising the language to state

‘‘generally recognized * * *’’ and

changing the term ‘‘county’’ to ‘‘area.’’

Response: The Cooperative State

Research, Education, and Extension

Service (CSREES) recognizes farming

practices that are considered acceptable

for producing prunes. 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 recognized’’ will only make

the policy more difficult to administer.

Although the cultural practices

recognized by CSREES may only pertain

to specific areas within a county,

actuarial documents are on a county

basis. Therefore, no change has been

made.

Comment: A reinsured company

recommended that in the definition of

‘‘irrigated practice,’’ the words ‘‘and

quality’’ should be added after the

words ‘‘* * * providing the quantity.’’

Response: There are no established

criteria regarding the quality of water

necessary to produce a crop. The highly

variable factors involved would make

such criteria difficult to develop and

administer. The provisions regarding

good farming practices can be applied in

situations in which the insured person

failed to exercise due care and

diligence. Therefore, no change has

been made to the definition.

Comment: An insurance service

organization and a reinsured company

questioned whether the references in

section 2(e)(2) to ‘‘measurement of

stored production’’ is applicable to

prunes. The commenter stated it was

not a common practice to store prunes.

Response: FCIC agrees measurement

of stored production does not apply to

prunes. The provisions have been

amended accordingly.

Comment: An insurance service

organization expressed concern in

discrepancies regarding the provisions

contained in section 2(e)(3). The

commenter indicated that the proposed

rule summary of changes stated section

2(e) contained changes in the provisions

to allow optional units on noncontiguous land and for land located in

separate sections. The commenter stated

2(e)(3) refers to ‘‘one or more of the

following criteria,’’ but 2(e)(3)(ii) states

that optional units by non-contiguous

land are in lieu of establishing optional

units by section, section equivalent or

FSA Farm Serial Number. The

commenter also stated policyholders

will need to understand they must

qualify for separate optional units and

could lose optional units if production

was commingled.

Response: FCIC agrees that the

provisions in section 2(e)(3) were

confusing and that the proposed rule

summary of changes did not accurately

describe the changes in section 2(e)(3).

FCIC has amended the wording

contained in section 2(e)(3) to clarify

that each optional unit ‘‘must also meet

one of the following criteria as

applicable * * *’’ In addition, section

2(e)(3)(ii) has been amended to remove

language which stated ‘‘In lieu of

establishing optional units by section,

section equivalent or FSA Farm Serial

Number.’’ These changes will clarify

that optional unit may be established if

each optional unit meets one of the

following criteria: (1) by section, FSA

Farm Serial Number, or their equivalent;

or (2) by non-contiguous land.

Comment: An insurance service

organization stated that the language in

section 10(c) does not address timely

notice if damage is discovered less than

15 days prior to harvest.

Response: Section 10(c) provides the

notice requirements in the event the

insured intends to file a claim for

indemnity. Section 10(c) states that

notice must be given 15 days prior to

the beginning of harvest or immediately

if damage is discovered during harvest.

In addition, Section 10 states that the

requirements contained in section 14 of

the Basic Provisions, which requires

notice of loss within 72 hours of initial

discovery of damage, are applicable.

Therefore, no change has been made.

Comment: An insurance service

organization stated that it seems

unnecessary to refer to previous items

by number in section 11. All references

make it difficult to follow the

calculation sequence.

Response: This section has been

explicitly worded to eliminate any

misunderstanding or confusion.

However, to provide clarification in the

calculations, an example of the

indemnity calculation has been

included.

Comment: An insurance service

organization stated that section

11(c)(1)(iv) should not allow the insured

to defer settlement and wait for a later,

generally lower, appraisal.

Response: A later appraisal will only

be necessary 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: An insurance service

organization and two reinsured

companies recommended removal of the

requirement that written agreements be

renewed each year if there are no

significant changes to the farming

operation. One reinsured company

suggested that the written agreement

should contain the effective period for

each specific agreement because

limiting the effective period to one year

only increases administrative cost,

complexity and the opportunity for

misunderstanding.

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 will be made.

In addition to the changes described

above, FCIC has made minor editorial

changes and has amended the following

provisions:

1. Amended the paragraph preceding

section 1 to include the Catastrophic

Risk Protection Endorsement for the

purpose of clarification.

2. Section 2(e)(3)(i)—Revised the

language for clarification.

3. Section 9(a)(3)—Clarified wildlife

as a cause of loss by deleting the

language ‘‘unless proper measures to

control wildlife have not been taken.’’

4. Section 9(a)(6)—To be consistent

with causes of loss in other Crop

Provisions, clarified that failure of the

irrigation water supply must be ‘‘due to

a cause specified in section 9(a)(1)

through (5).’’

5. Section 11(d)—Clarify any prune

production harvested for fresh fruit will

be converted to a dried prune weight

basis by dividing the total amount (in

tons) of fresh fruit production by 3.0.

Evidence compiled by FCIC after

publication of the proposed rule

indicated that 3.0 is a more accurate

conversion factor than the value 3.1

contained in the proposed rule.

Good cause is shown to make this rule

effective upon publication in the

Federal Register. This rule improves the

prune crop insurance coverage and

brings it under the Common Crop

Insurance Policy Basic Provisions for

consistency among policies. The earliest

contract change date that can be met for

the 1998 crop year is October 31, 1997,

and the final rule must be published as

soon as possible. It is therefore,

imperative that these provisions be
58630 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

made final so that the reinsured

companies may have sufficient time to

implement these changes. Therefore,

public interest requires the agency to

make the rules effective upon

publication.

List of Subjects in 7 CFR Parts 450 and

457

Crop insurance, Prunes.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation, hereby amends 7

CFR parts 450 and 457, as follows:

PART 450—PRUNE CROP INSURANCE

REGULATIONS FOR THE 1996 AND

SUCCEEDING CROP YEARS

1. The authority citation for 7 CFR

part 450 is revised to read as follows:

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

2. The part heading is revised to read

as set forth above.

3. The Subpart Heading ‘‘SubpartRegulations for the 1986 and

Succeeding Crop Years’’ is removed.

4. Section 450.7 is amended by

revising the introductory text of

paragraph (d) to read as follows:

§ 450.7 The application and policy.

* * * * *

(d) The application for the 1986 and

succeeding crop years is found at

subpart D of part 400, General

Administrative Regulations (7 CFR

400.37, 400.38). The provisions of the

Prune Insurance Policy for the 1986

through 1997 crop years are as follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

5. The authority citation for 7 CFR

part 457 continues to read as follows:

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

6. Section 457.133 is added to read as

follows:

§ 457.133 Prune crop insurance

provisions.

The Prune 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:

Prune 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

Days. Calendar days.

Direct marketing. Sale of the insured crop

directly to consumers without the

intervention of an intermediary such as a

wholesaler, retailer, packer, processor,

shipper or buyer. Examples of direct

marketing include: selling through an onfarm or roadside stand, farmer’s market, and

permitting the general public to enter the

field for the purpose of picking all or a

portion of the crop.

FSA. The Farm Service Agency, an agency

of the United States Department of

Agriculture, or a successor agency.

Good farming practices. The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Harvest. Picking of mature prunes from the

trees or ground either by hand or machine.

Interplanted. Acreage on which two or

more crops are planted in any form of

alternating or mixed pattern.

Irrigated practice. A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Market price for standard prunes. The

price per ton shown on the processor’s

settlement sheet for each size count of

standard prunes.

Natural condition prunes. The condition of

prunes in which they are normally delivered

from a dehydrator or dry yard.

Non-contiguous land. Any two or more

tracts of land whose boundaries do not touch

at any point, except that land separated only

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

or an irrigation canal will be considered as

contiguous.

Production guarantee (per acre). The

number of tons determined by multiplying

the approved APH yield per acre by the

coverage level percentage you elect.

Prunes. Any type or variety of plums that

is grown in the area for the production of

prunes and that meets the requirements

defined in the applicable Federal Marketing

Agreement Dried Prune Order.

Standard prunes. Any natural condition

prunes:

(a) That grade ‘‘C’’ or better in accordance

with the United States Standards for Grades

of Fresh Plums and Prunes; or

(b) That meet or exceed the grading

standards in effect for the crop year if a

Federal Marketing Agreement Dried Prune

Order has been established for the area in

which the insured crop is grown.

Substandard prunes. Any natural

condition prunes failing to meet the

applicable grading specifications for standard

prunes.

Ton. Two thousand (2,000) pounds

avoirdupois.

Written agreement. A written document

that alters designated terms of this policy in

accordance with section 12.

2. Unit Division

(a) 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.

(b) Basic units may not be divided into

optional units on any basis other than as

described in this section.

(c) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined into a

basic unit, that portion of the premium paid

for the purpose of electing optional units will

be refunded to you for the units combined.

(d) All optional units established for a crop

year 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, that can be

independently verified, of acreage and

production for each optional unit for at least

the last crop year used to determine your

production guarantee;

(2) For each crop year, you must have

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;

(3) Each optional unit must also meet one

of the following criteria as applicable, unless

otherwise allowed by a 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

as Spanish grants, as the equivalent of

sections for unit purposes. In areas that have

not been surveyed using sections or their

equivalent, 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; or

(ii) Optional Units on Acreage Located on

Non-Contiguous Land: Optional units may be

established if each optional unit is located on

non-contiguous land.
Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations 58631

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 prunes in the county insured

under this policy unless the Special

Provisions provide different price elections

by varietal group, in which case you may

select one price election for each prune

varietal group designated in the Special

Provisions. The price elections you choose

for each varietal group must have the same

percentage relationship to the maximum

price offered by us for each varietal group.

For example, if you choose 100 percent of the

maximum price election for one varietal

group, you must also choose 100 percent of

the maximum price election for all other

varietal groups.

(b) You must report, by the production

reporting date designated in section 3 of the

Basic Provisions, by varietal group if

applicable:

(1) Any damage, removal of trees, change

in practices, or any other circumstance that

may reduce the expected yields below the

yield upon which the insurance guarantee is

based, and the number of affected acres;

(2) The number of bearing trees on

insurable and uninsurable acreage;

(3) The age of the trees and the planting

pattern; and

(4) For the first year of insurance for

acreage interplanted with another perennial

crop, and any time the planting pattern of

such acreage is changed:

(i) The age of the interplanted crop, and

varietal group if applicable;

(ii) The planting pattern; and

(iii) Any other information that we request

in order to establish your approved yield.

We will reduce the yield used to establish

your production guarantee as necessary,

based on our estimate of the effect of

interplanting the perennial crop; removal of

trees; damage; a change in practices, and any

other circumstance that may affect the yield

potential of the insured crop. If you fail to

notify us of any circumstance that may

reduce your yields from previous levels, we

will reduce your production guarantee at any

time we become aware of the circumstance.

4. Contract Changes

In accordance with section 4 of the Basic

Provisions, the contract change date is

October 31 preceding the cancellation date.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic

Provisions, the cancellation and termination

dates are January 31.

6. Insured Crop

In accordance with section 8 of the Basic

Provisions, the crop insured will be all the

prunes in the county for which a premium

rate is provided by the actuarial table:

(a) In which you have a share;

(b) That are grown for the production of

natural condition prunes;

(c) That are grown on tree varieties that:

(1) Were commercially available when the

trees were set out;

(2) Are adapted to the area;

(3) Are grown on rootstock that is adapted

to the area; and

(4) Are irrigated (except where otherwise

provided in the Special Provisions);

(d) That are grown in an orchard that, if

inspected, is considered acceptable by us;

and

(e) That are grown on trees that have

reached at least the seventh growing season

after being set out.

7. Insurable Acreage

In lieu of the provisions in section 9 of the

Basic Provisions that prohibit insurance

attaching to a crop planted with another

crop, prunes interplanted with another

perennial crop are insurable unless we

inspect the acreage and determine that it

does not meet the insurability requirements

contained in your policy.

8. Insurance Period

(a) In accordance with the provisions of

section 11 of the Basic Provisions:

(1) Coverage begins for each crop year on

March 1.

(2) The calendar date for the end of the

insurance period for each crop year is:

(i) October 1 for California; or

(ii) October 15 for Oregon.

(b) In addition to the provisions of section

11 of the Basic Provisions:

(1) If you acquire an insurable share in any

insurable acreage after coverage begins but on

or before the acreage reporting date for the

crop year, and after an inspection we

consider the acreage acceptable, insurance

will be considered to have attached to such

acreage on the calendar date for the

beginning of the insurance period.

(2) If you relinquish your insurable share

on any insurable acreage of prunes on or

before the acreage reporting date for the crop

year and if the acreage was insured by you

the previous crop year, insurance will not be

considered to have attached to, and no

premium or indemnity will be due for such

acreage for that crop year unless:

(i) A transfer of coverage and right to an

indemnity, or a similar form approved by us,

is completed by all affected parties;

(ii) We are notified by you or the transferee

in writing of such transfer on or before the

acreage reporting date; and

(iii) The transferee is eligible for crop

insurance.

9. Causes of Loss

(a) In accordance with the provisions of

section 12 of the Basic Provisions, insurance

is provided only against the following causes

of loss that occur during the insurance

period:

(1) Adverse weather conditions;

(2) Fire, unless weeds and undergrowth

have not been controlled or pruning debris

has not been removed from the orchard;

(3) Wildlife;

(4) Earthquake;

(5) Volcanic eruption; or

(6) Failure of the irrigation water supply,

if due to a cause specified in section 9(a)(1)

through (5) 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 against

damage or loss of production due to:

(1) Disease or insect infestation, unless

adverse weather:

(i) Prevents the proper application of

control measures or causes properly applied

control measures to be ineffective; or

(ii) Causes disease or insect infestation for

which no effective control mechanism is

available; or

(2) Inability to market the prunes for any

reason other than actual physical damage

from an insurable cause specified in this

section. For example, we will not pay you an

indemnity if you are unable to market due to

quarantine, boycott, or refusal of any person

to accept production.

10. Duties in the Event of Damage or Loss

In addition to the requirements of section

14 of the Basic Provisions, the following will

apply:

(a) You must notify us within 3 days of the

date harvest should have started if the crop

will not be harvested.

(b) You must notify us at least 15 days

before any production from any unit will be

sold by direct marketing or sold as fresh fruit.

We will conduct an appraisal that will be

used to determine your production to count

for production that is sold by direct

marketing or is sold as fresh fruit production.

If damage occurs after this appraisal, we will

conduct an additional appraisal. These

appraisals, and any acceptable records

provided by you, will be used to determine

your production to count. Failure to give

timely notice that production will be sold by

direct marketing or sold as fresh fruit will

result in an appraised amount of production

to count of not less than the production

guarantee per acre if such failure results in

our inability to make the required appraisal.

(c) If you intend to claim an indemnity on

any unit, you must notify us at least 15 days

prior to the beginning of harvest, or

immediately if damage is discovered during

harvest, so that we may inspect the damaged

production.

(d) You must not destroy the damaged crop

until after we have given you written consent

to do so. If you fail to meet the requirements

of this section and such failure results in our

inability to inspect the damaged production,

all such production will be considered

undamaged and included as production to

count.

11. 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 each unit.

(b) In the event of loss or damage covered

by this policy, we will settle your claim by:

(1) Multiplying the insured acreage for

each varietal group, if applicable, by its

respective production guarantee;

(2) Multiplying the result of 11(b)(1) by the

respective price election for each varietal

group, if applicable;
58632 Federal Register / Vol. 62, No. 210 / Thursday, October 30, 1997 / Rules and Regulations

(3) Totaling the results of section 11(b)(2)

if there is more than one varietal group;

(4) Multiplying the total production to

count (see section 11(c)), of each varietal

group if applicable, by its respective price

election;

(5) Totaling the results of section 11(b)(4)

if there is more than one varietal group;

(6) Subtracting the result of section 11(b)(4)

from the result of section 11(b)(2) if there is

only one varietal group or subtracting the

result of section 11(b)(5) from the result of

section 11(b)(3) if there is more than one

varietal group; and

(7) Multiplying the result of section

11(b)(6) by your share.

For Example

You have a 100 percent share in 50 acres

of varietal group A prunes in the unit, with

a guarantee of 2.5 tons per acre and a price

election of $630.00 per ton. You are only able

to harvest 10.0 tons. Your indemnity would

be calculated as follows:

(1) 50 acres × 2.5 tons = 125.0 ton guarantee;

(2) 125.0 tons × $ 630.00 price election =

$78,750.00 value of guarantee;

(4) 10.0 tons × $630.00 price election =

$6,300.00 value of production to count;

(6) $78,750.00¥$6,300.00 = $72,450.00 loss;

and

(7) $72,450.00 × 100 percent = $72,450

indemnity payment.

You also have a 100 percent share in 50

acres of varietal group B prunes in the same

unit, with a guarantee of 2.0 ton per acre and

a price election of $550.00 per ton. You are

only able to harvest 5.0 tons. Your total

indemnity for both varietal groups A and B

would be calculated as follows:

(1) 50 acres × 2.5 tons = 125.0 ton guarantee

for varietal group A and 50.0 acres × 2.0

tons = 100.0 ton guarantee for varietal

group B;

(2) 125.0 ton guarantee × $630.00 price

election = $78,750.00 value of guarantee

for varietal group A and 100.0 ton

guarantee × $550.00 price election =

$55,000.00 value guarantee for varietal

group B;

(3) $78,750.00 + $55,000.00 = $133,750.00

total value guarantee;

(4) 10.0 tons × $630.00 price election =

$6,300.00 value of production to count

for varietal group A and 5.0 tons ×

$550.00 price election = $2,750.00 value

of production to count for varietal group

B;

(5) $6,300.00 + $2,750.00 = $9,050.00 total

value of production to count;

(6) $133,750.00¥$9,050.00 = $124,700.00

loss; and

(7) $124,700.00 loss × 100 percent = $124,700

indemnity payment.

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

from all insurable acreage on the unit will

include all harvested and appraised

production of natural condition prunes that

grade substandard or better and any

production that is harvested and intended for

use as fresh fruit. The total production to

count will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

per acre for acreage:

(A) That is abandoned;

(B) That is sold by direct marketing or sold

as fresh fruit if you fail to meet the

requirements contained in section 10;

(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; and

(iv) Potential production on insured

acreage you intend to abandon or no longer

care for, if you and we agree on the appraised

amount of production. Upon such agreement,

the insurance period for that acreage will

end. If you do not agree with our appraisal,

we may defer the claim only if you agree to

continue to care for the crop. We will then

make another appraisal when you notify us

of further damage or that harvest is general

in the area unless you harvested the crop, in

which case we will use the harvested

production. If you do not continue to care for

the crop, our appraisal made prior to

deferring the claim will be used to determine

the production to count; and

(2) All harvested production from the

insurable acreage.

(d) Any prune production harvested for

fresh fruit will be converted to a dried prune

weight basis by dividing the total amount (in

tons) of fresh fruit production by 3.0.

(e) Any production of substandard prunes

resulting from damage by insurable causes

will be adjusted based on the average size

count as indicated on the applicable Dried

Fruit Association (DFA) Inspection Report

and Certification Form. Any insurable

damage will be adjusted by:

(1) Dividing the value per ton of such

substandard prunes by the market price per

ton for standard prunes (of the same size

count); and

(2) Multiplying the result by the number of

tons of such prunes.

12. 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

12(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

varietal group, the guarantee, premium rate,

and price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

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

1997.

Suzette M. Dittrich,

Deputy Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–28772 Filed 10–29–97; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Agricultural Research Service

7 CFR Part 500

National Arboretum

AGENCY: Agricultural Research Service;

USDA.

ACTION: Final rule; announcement of

effective date.

SUMMARY: The Department of

Agriculture (USDA) established a

schedule of fees to be charged for

certain uses of the facilities, grounds,

and services at the United States

National Arboretum (USNA).

DATES: Sections 500.22 and 500.23 are

effective October 30, 1997.

FOR FURTHER INFORMATION CONTACT:

Director, National Arboretum, Beltsville

Area, ARS, 3501 New York Avenue,

NE., Washington, D.C. 20002; (202) 245–

4539.

SUPPLEMENTARY INFORMATION: On

September 3, 1997, the USNA published

a final rule adopting a schedule of fees

to be charged for certain uses of the

facilities, grounds and services of the

USNA. See 62 FR 46431, September 3,

1997. The final rulemaking document

specified that sections 500.22 and

500.23 of that rule would not become

effective until approval by the Office of

Management and Budget (OMB) of new

information collection requirements

contained in those sections. The new

information collection requirements

were approved by OMB on October 6,

1997. See OMB No. 0518–0024. This

publication satisfies the statement in the

final rule that the USDA would publish

a document notifying the public of the

effective date of sections 500.22 and

500.23.

Done at Washington, D.C., this 24th day of

October, 1997.

Edward B. Knipling,

Acting Administrator, Agricultural Research

Service.

[FR Doc. 97–28776 Filed 10–29–97; 8:45 am]

BILLING CODE 3410–03–M