This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

6033

Vol. 65, No. 26

Tuesday, February 8, 2000

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

Common Crop Insurance Regulations;

Fig, Pear, Walnut, Almond, Prune,

Table Grape, Peach, Plum, Apple and

Stonefruit Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule with request for

comments.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes to amend

the Fig Crop Insurance Provisions, Pear

Crop Insurance Provisions, Walnut Crop

Insurance Provisions, Almond Crop

Insurance Provisions, Prune Crop

Insurance Provisions, Table Grape Crop

Insurance Provisions, Peach Crop

Insurance Provisions, Plum Crop

Insurance Provisions, Apple Crop

Insurance Provisions and Stonefruit

Crop Insurance Provisions. The

intended effect of this action is to

provide policy changes to better meet

the needs of the insureds.

DATES: Written comments and opinions

on this proposed rule will be accepted

until close of business March 9, 2000

and will be considered when the rule is

to be made final. The comment period

for information collection under the

Paperwork Reduction Act of 1995

continues through April 7, 2000.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131. Comments

relating to the Fig, Pear, Walnut,

Almond, Prune, Table Grape, Peach,

Plum, Apple and Stonefruit Crop

Insurance Provisions may also be sent

via the Internet to

(pddirector@rm.fcic.usda.gov). A copy

of each response will be available for

public inspection and copying from 7:00

a.m. to 4:30 p.m., CDT, Monday through

Friday except holidays, at the above

address.

FOR FURTHER INFORMATION CONTACT: Gary

Johnson, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

exempt for the purpose of Executive

Order 12866 and, therefore, has not

been reviewed by the Office of

Management and Budget (OMB).

Paperwork Reduction Act of 1995

In accordance with section 3507(j) of

the Paperwork Reduction Act of 1995

(44 U.S.C. 3501), the information

collection and recordkeeping

requirements included in the proposed

rule have been submitted for approval to

OMB. Please submit your written

comments to the Office of Information

and Regulatory Affairs, OMB, Attention:

Desk Officer for RMA, Washington, D.C.

20503. A comment to OMB is best

assured of having its full effect if OMB

receives it within 30 days of publication

of this proposed rule.

We are soliciting comments from the

public concerning our proposed

information collection and

recordkeeping requirements. We need

this outside input to help us:

(1) Evaluate whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information has practical

utility;

(2) Evaluate the accuracy of our

estimate of the burden of the proposed

collection of information, including the

validity of the methodology and

assumptions used;

(3) Enhance the quality, utility, and

clarity of the information to be

collected; and

(4) Minimize the burden of the

collection of information on those who

are to respond (such as through the use

of appropriate automated, electronic,

mechanical, or other technological

collection techniques or other forms of

information technology, e.g., permitting

electronic submission responses.)

The collections of information for this

rule revise the Multiple Peril Crop

Insurance Collections of Information

0563–0053 which expires April 30,

2001.

Title: Multiple Peril Crop Insurance

(Fig, Pear, Walnut, Almond, Prune,

Table Grape, Peach, Plum, Apple and

Stonefruit).

Abstract: This rule improves the

existing Fig, Pear, Walnut, Almond,

Prune, Table Grape, Peach, Plum, Apple

and Stonefruit Crop Insurance

Provisions. The Apple Crop Insurance

Provisions are revised by allowing

optional units and price elections by

varietal group. The Fig, Pear, Walnut,

Almond, Prune, Table Grape, Peach,

Plum, Apple and Stonefruit Crop

Insurance Provisions are revised by

adding provisions to specify that the

insured’s elected or assigned coverage

level or the ratio of the insured’s price

election to the maximum price election

offered may not be increased and that

each subsequent crop year coverage

begins on the day immediately

following the end of the insurance

period for the prior crop year. The

Almond and Walnut crop insurance

provisions are revised by allowing

insurance coverage for trees that have

been grafted. The Almond crop

insurance provisions are revised by

deleting the word ‘‘rejects’’ from the

definition of ‘‘meat pounds.’’

Purpose: The purpose of this

proposed rule is to clarify existing crop

provisions, clarify the methodology for

calculating losses, and provide

additional coverage benefits to improve

these risk management tools so they

better meet the needs of producers in all

regions of the country.

Burden statement: The information

FCIC collects on the specified forms will

be used in offering crop insurance

coverage, determining program

eligibility, establishing a production

guarantee or amount of insurance,

calculating losses qualifying for a

payment, etc. The burden hours may

increase the information collection

because of the possibility the number of

claims may increase as a result of these

changes.

Estimate of Burden: We estimate it

will take insured producers, a loss

adjuster, and an insurance agent an

average of .9 of an hour to provide the

information required by the Fig, Pear,

Walnut, Almond, Prune, Table Grape,

Peach, Plum, Apple and Stonefruit Crop

Insurance Provisions.

6034 Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules

Respondents: Insureds, insurance

agents, and loss adjusters.

Estimated annual number of

respondents: 14,137.

Estimated annual number of

responses per respondents: 2.8.

Estimated annual number of

responses: 39,255.

Estimated total annual burden of

respondents: The total public burden for

this proposed rule is estimated at 13,314

hours.

Record keeping requirements: FCIC

requires records to be kept for three

years, but all records required by FCIC

are retained as part of the normal

business practice. However, these

records are retained as part of the

normal business practice and FCIC’s

requirement does not place additional

burden on insured producers. Therefore,

FCIC is not estimating additional

burden related to record keeping

requirement.

Copies of this information collection

can be obtained from Information

Collection Clearance Office, OCIO,

USDA, Room 404–W, 1400

Independence Ave., S.W., Washington,

D.C. 20250.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA) 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 13132

It has been determined under section

1(a) of Executive Order 13132,

Federalism, that this rule does not have

sufficient implications to warrant

consultation with the states. The

provisions contained in this rule will

not have a substantial direct effect on

States, or on the relationship between

the national government and the States,

or on the distribution of power and

responsibilities among the various

levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant economic impact on a

substantial number of small entities.

New provisions included in this rule

will not impact small entities to a

greater extent than large entities. Under

the current regulations, every 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. 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.

Therefore, this action is determined to

be exempt from the provisions of the

Regulatory Flexibility Act (5 U.S.C.

605), and no Regulatory Flexibility

Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12988

This proposed rule has been reviewed

in accordance with Executive Order

12988 on civil justice reform. The

provisions of this rule will not have a

retroactive effect. 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 against

FCIC for judicial review may be brought.

Environmental Evaluation

This action is not expected to have a

significant economic impact on the

quality of the human environment,

health, and safety. Therefore, neither an

Environmental Assessment nor an

Environmental Impact Statement is

needed.

Background

FCIC proposes to amend the Common

Crop Insurance Regulations (7 CFR part

457) by amending the following Crop

Insurance Provisions:

1. 7 CFR 457.110 Fig Crop Insurance

Provisions effective for the 2001 and

succeeding crop years. The changes to

the provisions for insuring fig are as

follows:

a. Section 3—This section has been

redesignated as section 3(a) and (b) to

specify that the insured’s elected or

assigned coverage level or the ratio of

the insured’s price election to the

maximum price election offered may

not be increased after coverage begins if

a cause of loss that could or would

reduce the yield of the insured crop is

evident prior to the time that change in

coverage is requested. This change was

made to preclude insureds with

continuous coverage from increasing the

liability on insured acreage following a

cause of loss that could or would reduce

the yield of the crop.

b. Section 8(b)—Specify that for each

subsequent crop year that the policy

remains continuously in force, coverage

begins on the day immediately

following the end of the insurance

period for the prior crop year. This

provision provides for fig year round

coverage. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage. This rule proposes to

eliminate any lapse in insurance

coverage between crop years.

c. Section 8(c)—Clarify that if the

insured’s policy is canceled or

terminated for any crop year after

insurance attached for that crop year,

insurance will not be considered to have

attached for that crop year and no

premium, administrative fee, or

indemnity will be due for such crop

year. This change is needed to avoid

premium and administrative fees for

canceled or terminated coverage

because insurance will have attached

before the last day a policy can be

canceled or terminated.

2. FCIC proposes to amend the

Common Crop Insurance Regulations (7

CFR part 457) by amending 457.111

Pear, 457.133 Prune, 457.149 Table

Grape, 457.153 Peach, 457.157 Plum

and 457.159 Stonefruit Crop Insurance

Provisions, effective for the 2001 and

succeeding crop years. The changes are

as follows:

a. Section 1—Peach—Add definition

for ‘‘marketable’’ for clarification.

b. Section 2—Peach and section 3—

Table Grape, Pear, Plum, Prune and

Stonefruit—Specify that the insured’s

elected or assigned coverage level or the

ratio of the insured’s price election to

the maximum price election offered may

not be increased after coverage begins if

a cause of loss that could or would

reduce the yield of the insured crop is

evident prior to the time that change in

coverage is requested. This change was

made to preclude insureds with

continuous coverage from increasing the

liability on insured acreage following a

cause of loss that could or will reduce

the yield of the crop.

Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules 6035

c. Section 7 for Peach, section 8 for

Pear, Plum, Prune and Stonefruit, and

section 9 for Table Grape—Specify that

for each subsequent crop year that the

policy remains continuously in force,

coverage begins on the day immediately

following the end of the insurance

period for the prior crop year. These

provisions provide for year round

coverage. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage. The current provisions specify

calendar dates for the beginning and

end of the insurance period, thereby

establishing a minimum time period

during which no insurance coverage

exists between crop years. This rule

proposes to eliminate any lapse in

insurance coverage between crop years.

Also, specify that if the insured’s policy

is canceled or terminated for any crop

year after insurance attached for that

crop year, insurance will not be

considered to have attached for that

crop year and no premium,

administrative fee, or indemnity will be

due for such crop year. This change is

needed to avoid premium and

administrative fees for canceled or

terminated coverage because insurance

will have attached before the last day a

policy can be canceled or terminated.

3. 7 CFR 457.122 Walnut Crop

Insurance Provisions effective for the

2001 and succeeding crop years. The

changes to the provisions for insuring

walnuts as well as other minor editorial

changes are as follow:

a. Section 3(c)—Specify that the

insured’s elected or assigned coverage

level or the ratio of the insured’s price

election to the maximum price election

offered may not be increased after

coverage begins if a cause of loss that

could or would reduce the yield of the

insured crop is evident prior to the time

that change in coverage is requested.

This change was made to preclude

insureds with continuous coverage from

increasing the liability on insured

acreage following a cause of loss that

could or would reduce the yield of the

crop.

b. Section 8(a)(3)—Specify that for

each subsequent crop year that the

policy remains continuously in force,

coverage begins on the day immediately

following the end of the insurance

period for the prior crop year. This

provision provides year round coverage

for walnuts. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage. The current Walnut Crop

Insurance Provisions specify calendar

dates for the beginning and end of the

insurance period, thereby, establishing a

time period during which no insurance

coverage exists between crop years. This

rule proposes to eliminate any lapse in

insurance coverage between crop years.

c. Section 8(a)(4)—Specify that if the

insured’s policy is canceled or

terminated for any crop year after

insurance attached for that crop year,

insurance will not be considered to have

attached for that crop year and no

premium, administrative fee, or

indemnity will be due for such crop

year. This change is needed to avoid

premium and administrative fees for

canceled or terminated coverage

because insurance will have attached

before the last day a policy can be

canceled or terminated.

d. Section 10—Modify the format of

this section and require that notice be

given 15 days prior to harvest if there

is mold damage to the walnuts so that

an inspection may be performed.

e. Section 11(b)—Add an example of

claim for indemnity for clarity.

f. Section 11(d)—Add that whenever

mold damage exceeds 30 percent and

such production will not be sold, the

production to count will be zero.

4. 7 CFR 457.123 Almond Crop

Insurance Provisions effective for the

2001 and succeeding crop years. The

changes to the provisions for insuring

almonds are as follows:

a. Section 1—Delete the words ‘‘and

rejects’’ in the definition of ‘‘meat

pounds.’’ These changes were made to

better fit the current almond industry

practice and to be consistent with the

changes to section 11(c)(2).

b. Section 3(c)—Specify that the

insured’s elected or assigned coverage

level or the ratio of the insured’s price

election to the maximum price election

offered may not be increased after

coverage begins if a cause of loss that

could or would reduce the yield of the

insured crop is evident prior to the time

that change in coverage is requested.

This change will preclude insureds with

continuous coverage from increasing the

liability on insured acreage following a

cause of loss that could or would reduce

the yield of the crop.

c. Section 8(a)(3)—Specify that for

each subsequent crop year that the

policy remains continuously in force,

coverage begins on the day immediately

following the end of the insurance

period for the prior crop year. This

provision provides year round coverage

for almonds. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage. The current Almond Crop

Insurance Provisions specify calendar

dates for the beginning and end of the

insurance period, thereby, establishing a

time period during which no insurance

coverage exists between crop years. This

rule proposes to eliminate any lapse in

insurance coverage between crop years.

d. Section 8(a)(4)—Specify that if the

insured’s policy is canceled or

terminated for any crop year after

insurance attached for that crop year,

insurance will not be considered to have

attached for that crop year and no

premium, administrative fee, or

indemnity will be due for such crop

year. This change is needed to avoid

premium and administrative fees for

canceled or terminated coverage

because insurance will have attached

before the last day a policy can be

canceled or terminated.

e. Section 11(b)—Add an example of

claim for indemnity for clarity.

f. Section 11(c)(2)—Revise language to

count all harvested meat pounds

towards the production to count that is

accepted by a buyer. Also removed

exception for harvested meat pounds

rejected due to an insured cause of loss.

Under the current exception it is

difficult to accurately determine

whether the rejects are due to an

insurable cause of loss, so the term,

‘‘rejects’’ will be removed.

1. 7 CFR 457.158 Apple Crop

Insurance Provisions effective for the

2001 and succeeding crop years. The

changes to the provisions for insuring

apples are as follows:

a. Section 1—For clarity, define

‘‘varietal group’’ as apple varieties with

similar characteristics that are grouped

for insurance purposes as specified in

the Special Provisions.

b. Section 2—In addition to section

34(b) of the Basic Provisions, allow

optional units by varietal group and if

on non-contiguous land. This will allow

apple producers to produce new apple

varieties in response to public demand

while having adequate risk management

protection through crop insurance.

c. Section 3(a) and (b)—Add

references to price election and

reporting by type or ‘‘varietal group.’’

This change was made to clarify that

insureds may select one price election

for each apple type or varietal group and

must report all varietal groups of apples

for insurance.

d. Section 3(c)—Specify that the

insured’s elected or assigned coverage

level or the ratio of the insured’s price

election to the maximum price election

offered may not be increased after

coverage begins if a cause of loss that

could or would reduce the yield of the

insured crop is evident prior to the time

6036 Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules

that change in coverage is requested.

This change will preclude insureds with

continuous coverage from increasing the

liability on insured acreage following a

cause of loss that could or would reduce

the yield of the crop.

e. Section 8(c)—Specify that for each

subsequent crop year that the policy

remains continuously in force, coverage

begins on the day immediately

following the end of the insurance

period for the prior crop year. This

provision provides year round coverage

for apples. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage. The current Apple Crop

Insurance Provisions specify calendar

dates for the beginning and end of the

insurance period, thereby, establishing a

time period during which no insurance

coverage exists. This rule proposes to

eliminate any lapse in insurance

coverage between crop years.

f. Section 8(d)—Specify that if the

insured’s policy is canceled or

terminated for any crop year after

insurance attached for that crop year,

insurance will not be considered to have

attached for that crop year and no

premium, administrative fee or

indemnity will be due for such crop

year. This change is needed to avoid

premium and administrative fees for

canceled or terminated coverage

because insurance will have attached

before the last day a policy can be

canceled or terminated.

g. Section 14 Option C—Prices and

Units by Varietal Group—Allow

optional units and price elections by

varietal group for an additional

premium designated in the actuarial

documents. Allow optional units and

price elections based on varietal groups

and non-contiguous land. This will

allow apple producers to produce new

apple varieties in response to public

demand while having adequate risk

management protection through crop

insurance. The option is not available to

producers insured under the

Catastrophic Risk Protection (CAT) level

of coverage. This limitation is consistent

with options contained in other crop

policies and the CAT Endorsement.

Option C is targeted toward producers

of apples intended for fresh market;

therefore, Option C is unavailable to

insureds who select Fresh Fruit Option

A for all insurable acreage. Fresh Fruit

Option A primarily covers apples

intended for processing.

List of Subjects in 7 CFR Part 457

Almond, Apple, Crop insurance, Fig,

Peach, Pear, Plum, Prune, Stonefruit,

Table Grape, Walnut, and Reporting and

recordkeeping requirements.

Proposed Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation proposes to amend 7 CFR

part 457 as follows:

PART 457—COMMON CROP

INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 457 continues to read as follows:

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

2. Amend § 457.110 to:

a. Revise the first sentence of the

introductory text;

b. Revise section 3 of the crop

provisions; and

c. Revise section 8 of the crop

provisions all to read as follows:

§ 457.110 Fig crop insurance provisions.

The Fig Crop Insurance Provisions for

the 2001 and succeeding crop years are

as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

(a) In addition to the requirements

under section 3 of the Basic Provisions,

you may select only one price election

for each fig type designated in the

Special Provisions and insured in the

county under this policy.

(b) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time you request the increase.

* * * * *

8. Insurance Period.

(a) In lieu of the provisions of section

11 of the Basic Provisions, insurance

attaches on each unit the later of the

date you submit your application or

March 1 of the crop year and ends the

earliest of:

(1) Total destruction of the fig crop;

(2) The date harvest of the figs (by

type) should have started on any acreage

that will not be harvested;

(3) Harvest of the figs;

(4) Final adjustment of a loss;

(5) Abandonment of the crop; or

(6) October 31 of the crop year.

(b) Notwithstanding paragraph (a) of

this section, for each subsequent crop

year that the policy remains

continuously in force, coverage begins

on the day immediately following the

end of the insurance period for the prior

crop year. Policy cancellation that

results solely from transferring to a

different insurance provider for a

subsequent crop year will not be

considered a break in continuous

coverage.

(c) If your fig policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

3. Amend 457.111 to revise the first

sentence of the introductory text, and

add sections 3(c), 8(c) and 8(d) of the

crop provisions to read as follows:

§ 457.111 Pear crop insurance provisions.

The Pear Crop Insurance Provisions

for the 2001 and succeeding crop years

are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop occurs prior to the time

that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your pear policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

4. Amend 457.122 to:

a. Revise the first sentence of the

introductory text;

b. Revise the introductory text and

paragraph (b) of section 3 of the crop

provisions by removing the

parenthetical phrase, ‘‘(Insurance

Guarantees, Coverage Levels, and Prices

for Determining Indemnities),’’ and add

a new paragraph (c);

Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules 6037

c. Add a new section 3(c) to the crop

provisions.

d. Revise section 4 of the crop

provisions by removing the

parenthetical phrase, ‘‘(Contract

Changes);’’

e. Revise section 5 of the crop

provisions by removing the

parenthetical phrase, ‘‘(Life of Policy,

Cancellation, and Termination);’’

f. Revise section 6 of the crop

provisions introductory text, by

removing the parenthetical phrase,

‘‘(Insured Crop);’’

g. Revise section 7 of the crop

provisions introductory text, by

removing the parenthetical phrase,

‘‘(Insurable Acreage);’’

h. Revise section 8, paragraph (a) of

the crop provisions, introductory text,

by removing the parenthetical phrase,

‘‘(Insurance Period);’’

i. Add section 8(a)(3) and 8(a)(4) to

the crop provisions.

j. Revise section 9, paragraph (a) of

the crop provisions, introductory text,

by removing the parenthetical phrase

‘‘(Causes of Loss);’’

k. Revise section 10 of the crop

provisions; and

l. In the crop provisions add an

example of settlement of claim in

section 11 after paragraph (b)(7) and

revise paragraph (d);

The additions and revisions read as

follows:

§ 457.122 Walnut crop insurance

provisions.

The Walnut Crop Insurance

Provisions for the 2001 and succeeding

crop years are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(a) * * *

(3) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(4) If your walnut policy is canceled

or terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

10. Duties in the Event of Damage or

Loss.

(a) In addition to the requirements of

section 14 of the Basic Provisions, if you

intend to claim an indemnity on any

unit:

(1) You must notify us prior to the

beginning of harvest so that we may

inspect the damaged production;

(2) You must notify us of any mold

damage 15 days before harvest so that

we may inspect the mold damaged

production; and

(3) You must not sell or dispose of the

damaged crop until we have given you

written consent to do so.

(b) If you fail to meet the requirements

of this section, all such production will

be considered undamaged and included

as production to count.

11. Settlement of Claim.

* * * * *

(b) * * *

(7) * * *

For example:

You have a 100 percent share in 100

acres of walnuts in the unit, with a

guarantee of 2,500 pounds per acre and

a price election of $0.61 per pound. You

are only able to harvest 200,000 pounds.

Your indemnity would be calculated as

follows:

(1) 100 acres × 2,500 pounds =

250,000 pound insurance guarantee;

(2 & 3) 250,000 pounds × $0.61 price

election = $152,500 total value of

insurance guarantee;

(4 & 5) 200,000 pounds production to

count × $0.61 price election = $122,000

total value of production to count;

(6) $152,500 total value

guarantee¥$122,000 total value of

production to count = $30,500 loss; and

(7) $30,500 × 100 percent share =

$30,500 indemnity payment.

* * * * *

(d) Mature walnut production

damaged due to an insurable cause of

loss which occurs within the insurance

period may be adjusted for quality based

on an inspection by the Dried Fruit

Association. Walnut production that has

mold damage greater than 8 percent,

based on the net delivered weight, will

be reduced by the quality adjustment

factors contained in the Special

Provisions. Walnut production that

exceeds 30 percent mold damage and

such production will not be sold, the

production to count will be zero.

* * * * *

5. Amend 457.123 to read as follows:

a. Revise the first sentence of the

introductory text;

b. In the crop provisions in section 1

revise the definition of ‘‘meat pounds;’’

c. In the crop provisions revise

section 3, the introductory text and

paragraph (b), the introductory text, by

removing the parenthetical phrase,

‘‘(Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities),’’ and adding paragraph

(c);

d. In the crop provisions add section

3(c);

e. In the crop provisions revise

section 4 by removing the parenthetical

phrase, ‘‘(Contract Changes);’’

f. In the crop provisions revise section

5 by removing the parenthetical phrase,

‘‘(Life of Policy, Cancellation and

Termination);’’

g. In the crop provisions revise

section 6 by removing the parenthetical

phrase, ‘‘(Insured Crop);’’

h. In the crop provisions revise

section 7 by removing the parenthetical

phrase, ‘‘(Insurable Acreage);’’

i. In the crop provisions revise section

8(a), introductory text, by removing the

parenthetical phrase, ‘‘(Insurance

Period);’’

j. In the crop provisions add section

8(a)(3) and (4);

k. In the crop provisions revise

section 9(a), introductory text, by

removing the parenthetical phrase,

‘‘(Causes of Loss);’’

l. In the crop provisions amend

section 10 by removing the

parenthetical phrase, ‘‘(Duties In the

Event of Damage or Loss);’’

m. In the crop provisions add an

example of settlement of claim after

section 11 (b)(7) and revise paragraph

(c)(2);

The additions and revisions read as

follows:

§ 457.123 Almond crop insurance

provisions.

The Almond Crop Insurance

Provisions for the 2001 and succeeding

crop years are as follows:

* * * * *

1. Definitions.

* * * * *

Meat pounds. The total pounds of

almond meats (whole, chipped and

broken, and in-shell meats). Unshelled

almonds will be converted to meat

pounds in accordance with FCIC

approved procedures.

* * * * *

6038 Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules

3. Insurance Guaranteed, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(a) * * *

(3) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(4) If your almond policy is canceled

or terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

11. Settlement of Claim.

* * * * *

(b) * * *

(7) * * *

For example:

You have a 100 percent share in 100

acres of almonds in the unit, with a

guarantee of 1,200 pounds per acre and

a price election of $1.70 per pound. You

are only able to harvest 100,000 pounds.

Your indemnity would be calculated as

follows:

(1) 100 acres × 1,200 pounds =

120,000 pound insurance guarantee;

(2 & 3) 120,000 pounds × $1.70 price

election = $204,000 total value of

insurance guarantee;

(4 & 5) 100,000 pounds production to

count × $1.70 price election = $170,000

total value of production to count;

(6) $204,000 total of value

guarantee¥$170,000 total value of

production to count = $34,000 loss; and

(7) $34,000 × 100 percent share =

$34,000 indemnity payment.

(c) * * *

(2) All harvested meat pounds

accepted by a buyer.

* * * * *

6. Amend 457.133 to:

a. Revise the first sentence of the

introductory text;

b. In the crop provisions add section

3(c); and

c. In the crop provisions add section

8(c) and (d) all to read as follows:

§ 457.133 Prune crop insurance

provisions.

The Prune Crop Insurance Provisions

for the 2001 and succeeding crop years

are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your prune policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

7. Amend 457.149 to:

a. Revise the first sentence of the

introductory text;

b. In the crop provisions add section

3(c); and

c. In the crop provisions add section

9(c) and (d) all to read as follows:

§ 457.149 Table grape crop insurance

provisions.

The Table Grape Crop Insurance

Provisions for the 2001 and succeeding

crop years are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

9. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your table grape policy is

canceled or terminated for any crop

year, in accordance with the terms of

the policy, after insurance attached for

that crop year, insurance will not be

considered to have attached for that

crop year and no premium,

administrative fee, or indemnity will be

due for such crop year.

* * * * *

8. Amend 457.153 to:

a. Revise the first sentence of the

introductory text;

b. In the crop provisions add a

definition for ‘‘marketable’’ in section 1;

c. In the crop provisions add section

2(c); and

d. In the crop provisions add section

7(c) and (d) all to read as follows:

§ 457.153 Peach crop insurance

provisions.

The Peach Crop Insurance Provisions

for the 2001 and succeeding crop years

are as follows:

* * * * *

1. Definitions.

* * * * *

Marketable—Peach production

acceptable for processing or other

human consumption even if failing to

meet any U.S. or applicable state

grading standard.

* * * * *

2. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

7. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules 6039

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your peach policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

9. Amend 457.157 to:

a. Revise the first sentence of the

introductory text; and

b. In the crop provisions add sections

3(c) and 8(c) and (d) all to read as

follows:

§ 457.157 Plum crop insurance provisions.

The Plum Crop Insurance Provisions

for the 2001 and succeeding crop years

are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your plum policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

10. Amend 457.158 to:

a. Revise the first sentence of the

introductory text;

b. In the crop provisions add a

definition for ‘‘varietal group’’ in section

1;

c. In the crop provisions revise

section 2;

d. In the crop provisions revise

sections 3(a),(b) introduction, (b)(4) and

add new section 3(c);

e. In the crop provisions add new

sections 8(c) and (d); and

f. In the crop provisions add a new

section 14 all to read as follows:

§ 457.158 Apple crop insurance

provisions.

The Apple Crop Insurance Provisions

for the 2001 and succeeding crop years

are as follows:

* * * * *

1. Definitions.

* * * * *

Varietal group. Apple varieties with

similar characteristics that are grouped

for insurance purposes as specified in

the Special Provisions.

2. Unit Division.

In addition to the requirements of

section 34(b) of the Basic Provisions,

optional units may be established if

each optional unit is located on noncontiguous land. Optional units may

also be established by varietal group in

accordance with section 14 of these

provisions.

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(a) You may select only one price

election for all the apples in the county

insured under this policy unless the

Special Provisions provide different

price elections by type or varietal group

in which case you may select one price

election for each apple type or varietal

group designated in the Special

Provisions. The price elections you

choose for each type or varietal group

must have the same percentage

relationship to the maximum price

offered by us for each type or varietal

group. For example, if you choose 100

percent of the maximum price election

for one type or varietal group, you must

also choose 100 percent of the

maximum price election for all other

types or varietal group.

(b) You must report, by the

production reporting date designated in

section 3 of the Basic Provisions, by

type or varietal group if applicable:

* * * * *

(4) The separate acreage for each

varietal group of apples intended for

fresh-market or processing, for each

varietal group as shown on the actuarial

table; and

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your apple policy is canceled or

terminated for any crop year, in

accordance with the terms of the policy,

after insurance attached for that crop

year, insurance will not be considered

to have attached for that crop year and

no premium, administrative fee, or

indemnity will be due for such crop

year.

* * * * *

14. Option C—Prices and Units by

Varietal Group.

(a) Exclusive of other options,

optional units and price elections by

varietal group apply only if the

following conditions are met:

(1) You have not elected to insure

your apples under the Catastrophic Risk

Protection (CAT) Endorsement; and

(2) You or we did not cancel the

option in writing on or before the

cancellation date. Your election of CAT

coverage for any crop year after this

endorsement is effective will be

considered notice of cancellation of the

option by you.

(b) If you select the Fresh Fruit Option

A for all insurable acreage, Option C is

not available.

11. Amend 457.159 to revise the first

sentence of the introductory text, and

add sections 3(c), 8(c) and 8(d) of the

crop provisions all to read as follows:

§ 457.159 Stonefruit crop insurance

provisions.

The Stonefruit Crop Insurance

Provisions for the 2001 and succeeding

crop years are as follows:

* * * * *

3. Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities.

* * * * *

(c) You may not increase your elected

or assigned coverage level or the ratio of

your price election to the maximum

price election we offer if a cause of loss

that could or would reduce the yield of

6040 Federal Register / Vol. 65, No. 26 / Tuesday, February 8, 2000 / Proposed Rules

the insured crop is evident prior to the

time that you request the increase.

* * * * *

8. Insurance Period.

* * * * *

(c) For each subsequent crop year that

the policy remains continuously in

force, coverage begins on the day

immediately following the end of the

insurance period for the prior crop year.

Policy cancellation that results solely

from transferring to a different

insurance provider for a subsequent

crop year will not be considered a break

in continuous coverage.

(d) If your stonefruit policy is

canceled or terminated for any crop

year, in accordance with the terms of

the policy, after insurance attached for

that crop year, insurance will not be

considered to have attached for that

crop year and no premium,

administrative fee, or indemnity will be

due for such crop year.

* * * * *

Signed in Washington, D.C., on January 28,

2000.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 00–2620 Filed 2–7–00; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 94

[Docket No. 98–094–1]

Poultry Products From Mexico

Transiting the United States

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Proposed rule.

SUMMARY: We are proposing to allow

poultry carcasses, parts, and products

(except eggs and egg products) that are

not eligible for entry into the United

States to move through the United

States via land ports from Mexican

States that Mexico considers to be free

of exotic Newcastle disease (END),

under certain conditions, for export to

another country. We believe such intransit movements would present a

negligible risk of introducing END into

the United States. This action would

relieve restrictions on trade while

continuing to provide protection against

the introduction of END into the United

States.

DATES: We invite you to comment on

this docket. We will consider all

comments that we receive by April 10,

2000.

ADDRESSES: Please send your comment

and three copies to: Docket No. 98–094–

1, Regulatory Analysis and

Development, PPD, APHIS, Suite 3C03,

4700 River Road, Unit 118, Riverdale,

MD 20737–1238. Please state that your

comment refers to Docket No. 98–094–

1.

You may read any comments that we

receive on this docket in our reading

room. The reading room is located in

room 1141 of the USDA South Building,

14th Street and Independence Avenue,

SW., Washington DC. Normal reading

room hours are 8 a.m. to 4:30 p.m.,

Monday through Friday, except

holidays. To be sure someone is there to

help you, please call (202) 690–2817

before coming.

APHIS documents published in the

Federal Register, and related

information, including the names of

organizations and individuals who have

commented on APHIS rules, are

available on the Internet at http://

www.aphis.usda.gov/ppd/rad/

webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr.

Michael David, Senior Staff

Veterinarian, Animals Program,

National Center for Import and Export,

VS, APHIS, 4700 River Road Unit 39,

Riverdale, MD 20737; (301) 734–8364.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR part 94

(referred to below as the regulations)

prohibit or restrict the importation of

certain animals and animal products

into the United States to prevent the

introduction of certain animal diseases.

The regulations in § 94.6 govern, among

other things, the importation of poultry

carcasses, parts, products, and eggs

(other than hatching eggs) from regions

where exotic Newcastle disease (END)

or Salmonella enteritidis, phage-type 4,

is considered to exist. Because END

exists in certain parts of Mexico, Mexico

is characterized, under § 94.6(a), as a

region where END is considered to exist.

Further, under the regulations in

§ 94.6(b), Mexico is also characterized as

a region where S. enteritidis, phage-type

4, is considered to exist.

Under the regulations, poultry

carcasses, and parts and products of

poultry carcasses may be imported into

the United States from Mexico only if

they have been cooked or are consigned

directly to an approved establishment in

the United States. Poultry eggs (other

than hatching eggs) from Mexico may be

imported into the United States only if:

(1) They are accompanied by a health

certificate regarding the flock of origin

and meet certain other conditions; (2)

they are consigned directly to an

approved establishment for breaking

and pasteurization; (3) they are

imported under permit for scientific,

educational, or research purposes; or (4)

they are imported under permit and

have been cooked or processed or will

be handled in a manner that prevents

the introduction of END and S.

enteritidis into the United States.

Further, poultry carcasses, parts,

products, and eggs (other than hatching

eggs) that do not qualify for entry into

the United States under one of these

conditions may transit the United States

via air and sea ports under the

conditions contained in § 94.15(d).

Mexico’s Director of Animal Health

has requested that we allow poultry

carcasses, parts, and products from the

Mexican States that Mexico considers

free of END to transit the United States

via land border ports for export to

another country. Currently, Mexico

recognizes the States of Baja California,

Baja California Sur, Campeche,

Chihuahua, Coahuila, Durango, Nuevo

Leon, Quintana Roo, Sinaloa, Sonora,

Tamaulipas, and Yucatan as free of

END.

In response, officials of the Animal

and Plant Health Inspection Service

(APHIS) have met with representatives

from Mexico knowledgeable in disease

prevention, epidemiology, and

diagnostic methods. The APHIS officials

reviewed the information supplied by

these representatives (discussed below)

and found two factors contributing to

the 12 States’ apparent successes in

remaining free of END: The States’

locations and relative isolation from

States or countries where END is

considered to exist, and controls by

Mexico’s Division of Animal Health on

the movement of poultry and eggs into

and through the END-free States. Based

on this review, the APHIS officials

recommended granting Mexico’s

request. However, because the term

‘‘poultry carcasses, parts, and products’’

might be construed to include eggs and

egg products, we wish to make it clear

that because Mexico is characterized as

a region where S. enteritidis, phage-type

4, is considered to exist, eggs (other than

hatching eggs) and egg products are only

allowed to transit the United States via

air and sea ports under the conditions

currently contained in § 94.15(d). We

are not proposing to amend the

regulations concerning the transit of

eggs or egg products from Mexico in this

document.