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

6703

Vol. 62, No. 30

Thursday, February 13, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563–AB53

Common Crop Insurance Regulations;

ELS Cotton 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

extra long staple (ELS) cotton. The

intended effect of this action is to

provide policy changes to better meet

the needs of the insured.

DATES: Effective: March 17, 1997.

FOR FURTHER INFORMATION CONTACT:

Stephen Hoy, Program Analyst,

Research and Development Division,

Product Development Branch, Federal

Crop Insurance Corporation, at 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

not significant for the purposes of

Executive Order No. 12866 and,

therefore, this rule has not been

reviewed by the Office of Management

and Budget (OMB).

Paperwork Reduction Act of 1995

The information collection

requirements contained in these

regulations were previously approved

by OMB pursuant to the Paperwork

Reduction Act of 1995 (44 U.S.C.

chapter 35) under OMB control number

0563–0003 at the proposed final rule

stage.

The amendments set forth in this final

rule contains information collections

that have been cleared by OMB under

the provisions of 44 U.S.C. chapter 35.

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments, data, and

opinions on information collection

requirements previously approved by

OMB under OMB control number 0563–

0003 through September 30, 1998. No

public comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform of 1995 (UMRA), Pub. L. 104–

4, establishes requirements for Federal

agencies to assess the effects of their

regulatory actions on State, local, and

tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of Title II of the UMRA) for

State, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of section

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 impact on a substantial

number of small entities. New

provisions included in this rule will not

impact small entities to a greater extent

than large entities. Under the current

regulations, a producer is required to

complete an application and acreage

report. If the crop is damaged or

destroyed, the insured is required to

give notice of loss and provide the

necessary information to complete a

claim for indemnity.

The insured must also annually

certify to the previous years production

or receive an assigned yield. The

producer must maintain the production

records to support the certified

information for at least three years. This

regulation does not alter those

requirements. The amount of work

required of the insurance companies

delivering and servicing these policies

will not increase significantly from the

amount of work currently required. This

rule does not have any greater or lesser

impact on the producer. Therefore, this

action is determined to be exempt from

the provisions of the Regulatory

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

Regulatory Flexibility Analysis was

prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order No. 12372

This program is not subject to the

provisions of Executive Order No.

12372, which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order No. 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

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

Order No. 12778. The provisions of this

rule will not have a retroactive effect

prior to the effective date. The

provisions of this rule will preempt

State and local laws to the extent such

State and local laws are inconsistent

herewith. The administrative appeal

provisions published at 7 CFR part 11

must be exhausted before 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 Tuesday, August 27, 1996, FCIC

published a proposed rule in the

Federal Register at FR 43999–44001 to

amend the Common Crop Insurance

Regulations (7 CFR part 457) by revising
6704 Federal Register / Vol. 62, No. 30 / Thursday, February 13, 1997 / Rules and Regulations

7 CFR 457.105 effective for the 1997 and

succeeding crop years.

Following publication of that

proposed rule, the public was afforded

30 days to submit written comments,

data, and opinions. A total of three

comments were received from the crop

insurance industry. The comments

received and FCIC’s responses are as

follows:

Comment: Three comments received

recommended that the written

agreement should be continuous. One

commenter recommended that written

agreements be continuous if no

substantive changes occur from one year

to the next. Two commenters

recommended that the valid period be

stated in the agreement.

Response: Written agreements are, by

design, temporary and intended to

address unusual circumstances. If the

condition for which a written agreement

is needed exists each crop year, the

policy or Special Provisions should be

amended to reflect this condition. No

change has been made to these

provisions.

The contract change date for the 1997

crop year was November 30, 1996.

These provisions are, therefore, not

applicable until the 1998 crop year.

List of Subjects in 7 CFR Part 457

Crop insurance, ELS cotton.

Final Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation hereby amends 7 CFR part

457, effective for the 1998 and

succeeding crop years, to read as

follows:

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 457 continues to read as follows:

Authority: 7 U.S.C. 1506(1), 1506(p).

2. Section 457.105, in paragraph 1.

Definitions, paragraphs (j), (o)(2), and (q)

are revised to read as follows:

§ 457.105 Extra long staple cotton crop

insurance provisions.

* * * * *

1. Definitions.

* * * * *

(j) Planted acreage—Land in which

seed has been placed by a machine

appropriate for the insured crop and

planting method, at the correct depth,

into a seedbed which has been properly

prepared for the planting method and

production practice. Cotton must be

planted in rows to be considered

planted. Planting in any other manner

will be considered as a failure to follow

recognized good farming practices and

any loss of production will not be

insured unless otherwise provided by

the Special Provisions or by written

agreement to insure such crop. The

yield conversion factor normally

applied to non-irrigated skip-row cotton

acreage will not be used if the land

between the rows of cotton is planted to

any other spring planted crop.

* * * * *

(o) * * *

(1) * * *

(2) Qualifies as a skip-row planting

pattern as defined by the Farm Service

Agency (FSA) or a successor agency.

* * * * *

(q) Written agreement—A written

document that alters designated terms of

a policy in accordance with section 13.

* * * * *

2. Section 457.105 in paragraph 2.

Unit Division, paragraph (d)(1) and the

first paragraph of (d)(2) are revised to

read as follows:

2. Unit Division.

* * * * *

(d) * * *

(1) Optional Units by Section, Section

Equivalent, or FSA Farm Serial Number:

Optional units may be established if

each optional unit is located in a

separate legally identified Section. In

the absence of Sections, we may

consider parcels of land legally

identified by other methods of measure

including, but not limited to: Spanish

grants, railroad surveys, leagues, labors,

or Virginia Military Lands an equivalent

of Sections for unit purposes. In areas

which have not been surveyed using the

systems identified above, or another

system approved by us, or in areas

where such systems exist but

boundaries are not readily discernable,

each optional unit must be located in a

separate farm identified by a single FSA

Farm Serial Number.

(2) Optional Units on Acreage

Including Both Irrigated and NonIrrigated Practices: In addition to, or

instead of, establishing optional units by

section, section equivalent, or FSA Farm

Serial Number, optional units may be

based on irrigated acreage or nonirrigated acreage if both are located in

the same section, section equivalent, or

FSA Farm Serial Number. To qualify as

separate irrigated and non-irrigated

optional units, the non-irrigated acreage

may not continue into the irrigated

acreage in the same rows or planting

pattern. The irrigated acreage may not

extend beyond the point at which the

irrigation system can deliver the

quantity of water needed to produce the

yield on which the guarantee is based,

except that 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 nonirrigated optional unit, they will be

considered part of the unit containing

the irrigated acreage. However, 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.

* * * * *

3. Section 457.105 paragraph 5.

Cancellation and Termination Dates is

revised to read as follows:

5. Cancellation and Termination

Dates.

In accordance with section 2 (Life of

Policy, Cancellation, and Termination)

of the Common Crop Insurance Policy

(§ 457.8), the cancellation and

termination dates are:

States Cancellation and termination dates

New Mexico .............. March 15.

All other States ......... Feb. 28.

* * * * *

8. Section 457.105 is amended by

adding a new paragraph 13 to read as

follows:

13. Written Agreement.

Designated terms of this policy may

be altered by written agreement. The

following conditions will apply:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in

section 13(e).

(b) The application for written

agreement must contain all terms of the

contract between the insurance provider

and the insured that will be in effect if

the written agreement is not approved.

(c) If approved, the written agreement

must 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.

(e) An application for written

agreement submitted after the sales

closing date may be approved if, after a

physical inspection of the acreage, it is

determined that no loss has occurred

and the crop is insurable in accordance
Federal Register / Vol. 62, No. 30 / Thursday, February 13, 1997 / Rules and Regulations 6705

with the policy and written agreement

provisions.

Signed in Washington DC, on February 6,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–3329 Filed 2–12–97; 8:45 am]

BILLING CODE 3410–FA–P

Grain Inspection, Packers and

Stockyards Administration

7 CFR Part 868

Removal of U.S. Grade Standards;

Procedures for Development and

Maintenance of Voluntary Grade

Standards

AGENCY: Grain Inspection, Packers and

Stockyards Administration, USDA.

ACTION: Final rule.

SUMMARY: The Grain Inspection, Packers

and Stockyards Administration (GIPSA)

is adopting as a final rule, without

change, its interim final rule removing

the voluntary U.S. grade standards for

Beans, Whole Dry Peas, Split Peas, and

Lentils from the Code of Federal

Regulations (CFR). The voluntary

standards and all subsequent revisions

or new standards will be made available

in a separate publication, and will

appear as notices in the Federal

Register for the public to comment on.

This action is part of the National

Performance Review program to

eliminate unnecessary regulations.

In addition, this rule specifies in the

CFR the procedures, which were set out

in the February 29, 1996, interim rule,

that GIPSA will follow in developing,

issuing, revising, suspending or

terminating voluntary U.S. grade

standards for Beans, Whole Dry Peas,

Split Peas, and Lentils.

EFFECTIVE DATE: February 14, 1997.

FOR FURTHER INFORMATION CONTACT:

Sharon Vassiliades, USDA, GIPSA,

Room 0623-S, STOP 3649, 1400

Independence Avenue, S.W.,

Washington, D.C. 20250-3649; FAX

(202) 720–4628.

SUPPLEMENTARY INFORMATION: In the

February 29, 1996, Federal Register (61

FR 7687), GIPSA published an Interim

Final Rule with Request for Comments

announcing removal from the CFR of

voluntary standards dealing with the

U.S. grade standards for Beans, Whole

Dry Peas, Split Peas, and Lentils which

may be used to describe the quality of

these agricultural commodities as

valued in the marketplace. No

comments were received in response to

this Interim Final Rule. GIPSA also will

ensure that the public will have an

opportunity to comment on any future

proposed, new, or revised voluntary

standards by publishing such standards

in the ‘‘Notices’’ section of the Federal

Register.

Executive Order 12866

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule is not intended to

have preemptive effect with respect to

any State or local laws, regulations, or

policies unless they present an

irreconcilable conflict with this rule.

This rule is not intended to have

retroactive effect. There are no

administrative procedures which must

be exhausted prior to any judicial

challenge to this rule or the application

of its provisions.

Effects on Small Entities

GIPSA has determined that this final

rule will not have a significant

economic impact on a substantial

number of small entities as defined

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). Removal of the

voluntary standards from the CFR will

not adversely affect interested persons.

On the contrary, the U.S. pulse industry

(beans, peas, and lentils) is expected to

benefit from this action because it will

provide for more timely improvements

to the bean, pea, and lentil standards.

Furthermore, those persons who apply

the standards and most users of the

inspection services do not meet the

requirements for small entities as

defined in the Regulatory Flexibility

Act.

The primary user of pulse inspection

services is the U.S. government. It is

estimated that between 80 and 90

percent of all inspections are performed

(directly or indirectly) at the request of

either the USDA’s Farm Service Agency

or Foreign Agricultural Service, or the

U.S. Agency for International

Development. Approximately 20

percent of all inspections are performed

at the request of major bean, pea, and

lentil shippers who would not be

considered small entities, as defined by

the Small Business Administration (13

CFR 121.60); and about 3 percent of the

service requests originate from other

interested parties, such as producers.

But regardless of who requests the

service, the standards are applied

equally to all entities. Use of the

standards for Beans, Whole Dry Peas,

Split Peas, and Lentils is voluntary and

small entities may avoid incurring any

economic impact by not employing the

standards. Although this action will

remove standards for Beans, Whole Dry

Peas, Split Peas, and Lentils from the

CFR, small entities should see no

changes as the standards will still be

administered in a manner to ensure

public input to their formulation.

Further, no costs are expected to result

from this action for handlers or

producers and benefits derived from

this action may be passed on to

consumers.

Further, this final rule includes in the

CFR procedures to be used by GIPSA in

developing, issuing, revising,

suspending, or terminating voluntary

U.S. grade standards. These procedures

provide for public input and

participation and will not adversely

affect small or large entities.

Paperwork Reduction Act of 1995

In accordance with the provisions of

the Paperwork Reduction Act, the

information collection requirements

contained in Part 868 have been

previously approved by the Office of

Management and Budget under control

number 0580–0013.

Background

GIPSA is delegated by the Secretary of

Agriculture under the Agricultural

Marketing Act of 1946 (AMA), to

provide programs for Federal grading/

certification services and to develop and

establish efficient marketing methods

and practices for designated agricultural

commodities such as Beans, Whole Dry

Peas, Split Peas, and Lentils. For many

years, these agricultural programs have

facilitated the marketing of agricultural

commodities by developing official U.S.

grade standards which provide uniform

language that may be used to describe

the characteristics of commodities as

valued by the marketplace. The AMA

standards are widely used in private

contracts, government procurement,

marketing communication and, for some

commodities, consumer information.

Through the years, the standards have

been promulgated as regulations and

codified in the CFR.

Rapid changes in consumer

preferences, together with associated

changes in commodity characteristics,

processing technology, and marketing

practices have out paced the revision or

issuance of standards. As a result,

industry and the marketplace could be

burdened with outdated trading

language. The President’s regulatory

review initiative provided an impetus to

develop new approaches to more

effectively meet the needs of U.S.