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

333

Vol. 62, No. 2

Friday, January 3, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

General Crop Insurance Regulations,

Fresh Market Sweet Corn

Endorsement; and Common Crop

Insurance Regulations, Fresh Market

Sweet Corn Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of

fresh market sweet corn. 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 Fresh Market Sweet Corn

Endorsement under the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current Fresh Market Sweet

Corn Endorsement to the 1997 and prior

crop years.

DATES: Written comments, data and

opinions on this proposed rule will be

accepted until close of business

February 3, 1997 and will be considered

when the rule is to be made final. The

comment period for information

collections under the Paperwork

Reduction Act of 1995 continues

through March 3, 1997.

ADDRESSES: Interested persons are

invited to submit written comments to

the Chief, Product Development Branch,

Federal Crop Insurance Corporation,

United States Department of

Agriculture, 9435 Holmes Road, Kansas

City, MO 64131. Written comments will

be available for public inspection and

copying in room 0324, South Building,

United States Department of

Agriculture, 14th and Independence

Avenue, S.W., Washington, D.C., 8:15

a.m. to 4:45 p.m., est, Monday through

Friday, except holidays.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Program Analyst,

Research and Development Division,

Product Development Branch, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

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

The title of this information collection

is ‘‘Catastrophic Risk Protection Plan

and Related Requirements including,

Common Crop Insurance Regulations;

Fresh Market Sweet Corn Crop

Insurance Provisions.’’ The information

to be collected includes a crop

insurance application and an acreage

report. Information collected from the

application and acreage report is

electronically submitted to FCIC by the

reinsured companies.

Potential respondents to this

information collection are producers of

fresh market sweet corn that are eligible

for Federal crop insurance.

The information requested is

necessary for the reinsured companies

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

All information is reported annually.

The reporting burden for this collection

of information is estimated to average

16.9 minutes per response for each of

the 3.6 responses from approximately

1,755,015 respondents. The total annual

burden on the public for this

information collection is 2,676,932

hours.

FCIC is requesting comments on the

following: (a) Whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after submission to OMB.

Therefore, a comment to OMB is best

assured of having full effect if OMB

receives it within 30 days of

publication. This does not affect the

deadline for the public to comment on

the proposed regulation.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on state, local,

and tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) for

state, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order 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
334 Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Proposed Rules

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. 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

subsections 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 parts 11

and 780 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

FCIC proposes to add to the Common

Crop Insurance Regulations (7 CFR part

457), a new section, 7 CFR 457.129,

Fresh Market Sweet Corn 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 fresh

market sweet corn found at 7 CFR

401.138 (Fresh Market Sweet Corn

Endorsement). FCIC also proposes to

amend § 401.138 to limit its effect to the

1997 and prior crop years. FCIC will

later publish a regulation to remove and

reserve § 401.138.

This rule makes minor editorial and

format changes to improve the Fresh

Market Sweet Corn Crop Insurance

Endorsement’s compatibility with the

Common Crop Insurance Policy. In

addition, FCIC is proposing substantive

changes in the provisions for insuring

fresh market sweet corn as follows:

1. Section 1—Add definitions for the

terms ‘‘crate,’’ ‘‘days,’’ ‘‘excess rain,’’

‘‘excess wind,’’ ‘‘FSA,’’ ‘‘good farming

practices,’’ ‘‘interplanted,’’ ‘‘irrigated

practice,’’ ‘‘planted acreage,’’ ‘‘practical

to replant,’’ ‘‘replanting,’’ and ‘‘written

agreement’’ for clarification.

Clarify the definition of crop year to

specify that the crop year begins on the

first day of the earliest planting period

for fall-planted sweet corn and

continues through the end of the

insurance period for spring-planted

sweet corn.

Change the definition of freeze to

specify that freeze occurs when low air

temperatures cause ice to form in the

cells of the plant or its fruit to

encompass conditions found in both

frost and freeze.

Change the definition of harvest to

clarify and remove the term marketable.

Sweet corn picked from the stalk is

considered harvested whether

marketable or not.

2. Section 3(a)—Clarify that an

insured may select only one coverage

level (and the corresponding amount of

insurance designated in the Actuarial

Table for the applicable planting period

and practice) for all the sweet corn in

the county insured under the policy.

3. Section 3(b)—Clarify that the

amounts of insurance the insured

chooses for each planting period and

practice must have the same percentage

relationship to the maximum amount of

insurance offered by FCIC for each

planting period and practice.

4. Section 5—Change the cancellation

and termination dates to March 15 for

all States that currently have an April 15

date. This change is necessary to

standardize the cancellation and

termination dates with the sales closing

dates that were changed for spring

planted crops to comply with the

requirements of the Federal Crop

Insurance Reform Act of 1994. To allow

sweet corn crop expansion into other

areas, Berrien County, Georgia, has been

added to the Georgia Counties that have

July 31 cancellation and termination

dates. The July 31 cancellation and

termination dates for Berrien County,

Georgia coincide with production

practices of other Georgia counties with

that same date.

5. Section 9(a)—Add a provision that

will provide coverage on newly cleared

land or former pasture land that is

planted to fresh market sweet corn. It is

a recognized practice to plant the

insured crop on tilled acreage that has

been newly cleared or has been pasture

land to eliminate some of the risk of

disease and insect damage. This change

also will standardize current regulations

for the fresh market vegetable crops.

6. Section 9(b)(2)—Allow an insured

to elect not to replant damaged sweet

corn that is initially planted within the

fall or winter planting periods, provided

the final planting date for the planting

period has passed. With this election,

the insured may collect an indemnity

and that particular acreage will be

uninsurable for the next planting

period. The insured may also elect to

replant such sweet corn acreage, collect

a replanting payment under section 12,

and maintain the initial planting period

coverage. This change incorporates and

standardizes procedures utilized in the

fresh market vegetable crops.

7. Section 10(f)—The calendar date

for the end of the insurance period is

now included in the sweet corn crop

provisions and has been established as

100 days after the date of planting or

replanting. This change incorporates the

actual number of days for sweet corn to

reach maturity and for the crop to be

harvested. This change will also

standardize provisions to that of other

crop insurance policies. Currently, the

calendar date for the end of the

insurance period is contained in the

Actuarial Table.

8. Section 11(a)—Add excess rain and

excess wind as insurable causes of loss.

Current regulations allow these causes

to be covered only if they occur in

conjunction with a cyclone. Removal of

the requirement that these causes of loss

must occur in conjunction with a

cyclone will provide coverages for crop

damage that is not associated with a

cyclone.

9. Section 13—Change notice of

damage or loss requirements to require

that if the insured intends to claim an

indemnity on any unit, notice must be

given within 72 hours after the earliest

of: discontinuance of harvest of any

acreage on the unit; the date harvest

would normally start if any acreage on

the unit will not be harvested; or the
Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Proposed Rules 335

calendar date for the end of the

insurance period. This change will

standardize provisions found in all fresh

market vegetable crop policies.

10. Section 14(b)(2)—Modify claim for

indemnity calculations by providing

calculations for catastrophic risk

protection coverage and for coverage

other than catastrophic risk protection.

This provision includes the use of the

catastrophic risk protection price

election equivalent to determine the

total dollar of production to count for

indemnity purposes. This change is

necessary to assure that producers that

are insured based on a dollar amount of

insurance are indemnified comparable

to producers that are insured based on

an actual production history (APH)

yield basis.

11. Section 14(c)(1)—Clarify that the

insured will receive not less than the

amount of insurance per acre for the

applicable stage for acreage that is:

Abandoned; put to another use without

the insurance provider’s consent;

damaged solely by uninsured causes; or

for which the insured fails to provide

production records. Current regulations

require that not less than the final stage

dollar amount of insurance be assessed

for such acreage. This change allows for

either the first stage amount of

insurance or the final stage amount of

insurance to be assessed against such

acreage, depending on the growth stage

of the crop when the event occurred.

This change will standardize the

provisions found in all fresh market

vegetable crops.

12. Section 14(c)(2)(iii)—Require the

insured to continue to care for acreage

when the insured does not agree with

the appraisal on that acreage.

Production to count for such acreage

will be determined using the harvested

production if the crop is harvested, or

our reappraisal if the crop is not

harvested.

13. Section 14(c)(3)—Change the

value to count for harvested production

to the dollar amount obtained by

subtracting the allowable cost from the

price received (this resulting price must

not be less than the minimum value

shown in the Special Provisions), and

multiplying this result by the number of

crates harvested. Current regulations

allow the value of sold production to be

as low as zero. Also, clarify that

harvested mature sweet corn that is

damaged or defective due to insurable

causes and is not marketable will not be

counted as production. These changes

are made to assure that the minimum

value specified in the Special Provisions

will be the lowest value considered for

any marketable harvested production

unless the insured selected the

minimum value option.

14. Section 15—Add provisions for

providing insurance coverage by written

agreement. FCIC has a long standing

policy of permitting certain

modifications of the insurance contract

by written agreement for some policies.

This amendment allows FCIC to tailor

the policy to a specific insured in

certain instances. The new section will

cover the procedures for and duration of

written agreements.

15. Section 16—A minimum value

option is added. The option allows the

value of each harvested crate to be as

low as zero. This option is selected on

the insurance application. This change

will provide consistency in regulations

found in other fresh market vegetable

crops.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Fresh market sweet

corn endorsement, Fresh market sweet

corn.

Proposed Rule

For the reasons set forth in the

preamble, the Federal Crop Insurance

Corporation hereby proposes to amend

7 CFR parts 401 and 457 as follows:

PART 401—GENERAL CROP

INSURANCE REGULATIONS—

REGULATIONS FOR THE 1988 AND

SUBSEQUENT CONTRACT YEARS

1. The authority citation for 7 CFR

part 401 continues to read as follows:

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

2. In § 401.138, the introductory text

is revised to read as follows:

§ 401.138 Fresh market sweet corn

endorsement.

The provisions of the Fresh Market

Sweet Corn Endorsement for the 1991

through the 1997 crop years are as

follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

3. The authority citation for 7 CFR

part 457 continues to read as follows:

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

4. 7 CFR part 457 is amended by

adding a new § 457.129 to read as

follows:

§ 457.129 Fresh Market Sweet Corn Crop

Insurance Provisions.

The Fresh Market Sweet Corn 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:

Fresh Market Sweet Corn Crop Provisions

If a conflict exists among the Basic

Provisions (§ 457.8), these crop provisions,

and the Special Provisions, the Special

Provisions will control these crop provisions

and the Basic Provisions; and these crop

provisions will control the Basic Provisions.

1. Definitions.

Crate—Forty-two (42) pounds of the

insured crop.

Crop year—In lieu of the definition of

‘‘crop year’’ contained in section 1

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

crop year is a period of time that begins on

the first day of the earliest planting period for

fall-planted sweet corn and continues

through the last day of the insurance period

for spring-planted sweet corn. The crop year

is designated by the calendar year in which

spring-planted sweet corn is harvested.

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 on-farm

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.

Excess rain—An amount of precipitation

sufficient to directly damage the crop.

Excess wind—Wind speed strong enough

to cause lodging of stalks and prevent a

normal harvest.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture or a successor agency.

Freeze—The formation of ice in the cells of

the plant or its fruit, caused by low air

temperatures.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity, and are those recognized by the

Cooperative State Research, Education and

Extension Service as compatible with

agronomic and weather conditions in the

county.

Harvest—The picking of sweet corn on the

unit.

Interplanted—Acreage on which two or

more crops are planted in a manner that does

not permit separate agronomic maintenance

or harvest of the insured crop.

Irrigated practice—A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed for the insured crop to make normal

progress toward maturity.

Marketable sweet corn—Sweet corn that

meets the standards for grading U.S. No. 1 or

better and will withstand normal handling

and shipping.
336 Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Proposed Rules

Plant stand—The number of live plants per

acre prior to the occurrence of an insurable

cause of loss.

Planted acreage—Land in which, for each

planting period, seed has been placed by a

machine appropriate for the insured crop and

planting method, at the correct depth, into a

seedbed that has been properly prepared for

the planting method and production practice.

For each planting period, fresh market sweet

corn must initially be planted in rows far

enough apart to permit mechanical

cultivation. Acreage planted in any other

manner will not be insurable unless

otherwise provided by the Special Provisions

or by written agreement.

Planting period—The period of time

designated in the Actuarial Table in which

fresh market sweet corn must be planted to

be considered fall, winter, or spring-planted

sweet corn.

Potential production—The number of

crates of sweet corn that the sweet corn

plants will or would have produced per acre

by the end of the insurance period, assuming

normal growing conditions and practices.

Practical to replant—In lieu of the

definition of ‘‘Practical to replant’’ contained

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

practical to replant is defined as our

determination, after loss or damage to the

insured crop, based on factors, including but

not limited to moisture availability,

condition of the field, marketing windows,

and time to crop maturity, that replanting to

the insured crop will allow the crop to attain

maturity prior to the calendar date for the

end of the insurance period (inability to

obtain seed will not be considered when

determining if it is practical to replant).

Replanting—Performing the cultural

practices necessary to replace the sweet corn

seed and then replacing the sweet corn seed

in the insured acreage with the expectation

of growing a successful crop.

Sweet corn—A type of corn with kernels

containing a high percentage of sugar that is

adapted for human consumption as a

vegetable.

Written agreement—A written document

that alters designated terms of a policy in

accordance with section 15.

2. Unit Division.

(a) A unit as defined in section 1

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

(basic unit) will be divided by planting

period.

(b) Unless limited by the Special

Provisions, these basic units may be further

divided into optional units if, for each

optional unit you meet all the conditions of

this section or if a written agreement for such

further division exists.

(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 records, which can be

independently verified, of planted acreage

and production for each optional unit for at

least the last crop year in which the crop was

planted;

(2) You must plant the crop in a manner

that results in a clear and discernable break

in the planting pattern at the boundaries of

each optional unit;

(3) You must have records of marketed

production or measurement of stored

production from each optional unit

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and

(4) Each optional unit must be located in

a separate legally identified section. In the

absence of sections, we may consider parcels

of land legally identified by other methods of

measure including, but not limited to

Spanish grants, railroad surveys, leagues,

labors, or Virginia Military Lands, as the

equivalent of sections for unit purposes. In

areas that 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.

3. Amounts of Insurance and Production

Stages.

(a) In addition to the requirements of

section 3 (Insurance Guarantees, Coverage

Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8),

you may select only one coverage level (and

the corresponding amount of insurance

designated in the Actuarial Table for the

applicable planting period and practice) for

all the sweet corn in the county insured

under this policy.

(b) The amount of insurance you choose for

each planting period and practice must have

the same percentage relationship to the

maximum price offered by us for each

planting period and practice. For example, if

you choose 100 percent of the maximum

amount of insurance for a specific planting

period and practice, you must also choose

100 percent of the maximum amount of

insurance for all other planting periods and

practices.

(c) The amount of insurance available

under the catastrophic risk protection plan of

insurance will be specified in the Actuarial

Table.

(d) The production reporting requirements

contained in section 3 (Insurance Guarantees,

Coverage Levels, and Prices for Determining

Indemnities) of the Basic Provisions (§ 457.8),

do not apply to fresh market sweet corn.

(e) The amounts of insurance are

progressive by stages as follows:

Stage

% of

amount

of insurance

per

acre

that

you selected

Length of time

1 ........... 65 From planting through

the beginning of tasseling (which is when the

tassel becomes visible

above the whorl).

Final ..... 100 From tasseling until the

acreage is harvested.

(f) Any acreage of sweet corn damaged in

the first stage to the extent that the majority

of producers in the area would not normally

further care for it, will be deemed to have

been destroyed. The indemnity payable for

such acreage will be based on the stage the

plants had achieved when the damage

occurred.

4. Contract Changes.

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date shown below is the

date preceding the cancellation date:

State and county Date

All Florida counties; and all

Georgia counties for which

the Special Provisions designate a fall planting period ... Apr. 30.

Alabama; South Carolina; all

Georgia counties for which

the Special Provisions do not

designate a fall planting period; and all other States ....... Nov. 30.

5. Cancellation and Termination Dates.

In accordance with section 2 (Life of

Policy, Cancellation, and Termination) of the

Basic Provisions (§ 457.8), the cancellation

and termination dates are:

State and county

Cancellation

and termination dates

Florida; Atkinson, Baker,

Berrien, Brantley, Camden,

Colquitt, Cook, Early, Mitchell, and Ware Counties Georgia and all counties south

thereof for which the Special

Provisions designate a fall

planting period ....................... July 31.

Alabama; South Carolina; and

all Georgia Counties for

which the Special Provisions

do not designate a fall planting period .............................. Feb. 15.

All other States ......................... Mar. 15.

6. Report of Acreage.

In addition to the requirements of section

6 (Report of Acreage) of the Basic Provisions

(§ 457.8), you must report on or before the

acreage reporting date contained in the

Special Provisions for each planting period,

all the acreage of sweet corn in the county
Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Proposed Rules 337

insured under this policy in which you have

a share.

7. Annual Premium.

In lieu of the premium amount

determinations contained in section 7

(Annual Premium) of the Basic Provisions

(§ 457.8), the annual premium amount for

each cultural practice (e.g. fall planted

irrigated) is determined by multiplying the

final stage amount of insurance per acre by

the premium rate for the cultural practice as

established in the Actuarial Table, by the

insured acreage, by your share at the time

coverage begins, and by any applicable

premium adjustment factors contained in the

Actuarial Table.

8. Insured Crop.

In accordance with section 8 (Insured

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

crop insured will be all the sweet corn in the

county for which a premium rate is provided

by the Actuarial Table:

(a) In which you have a share;

(b) That is:

(1) Planted to be harvested and sold as

fresh market sweet corn;

(2) Planted within the planting periods

designated in the Actuarial Table;

(3) Grown under an irrigated practice;

(4) Grown by a person who in at least one

of the three previous crop years:

(i) Grew sweet corn for commercial sale; or

(ii) Participated in managing a sweet corn

farming operation;

(c) That is not:

(1) Interplanted with another crop;

(2) Planted into an established grass or

legume; or

(3) Grown for direct marketing.

9. Insurable Acreage.

(a) In lieu of the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), that prohibit insurance attaching if

a crop has not been planted in at least one

of the three previous crop years, we will

insure newly cleared land or former pasture

land planted to fresh market sweet corn.

(b) In addition to the provisions of section

9 (Insurable Acreage) of the Basic Provisions

(§ 457.8):

(1) You must replant any acreage of sweet

corn damaged during the planting period in

which initial planting took place whenever

less than 75 percent of the plant stand

remains: and

(i) It is practical to replant: and

(ii) If, at the time the crop was damaged,

the final day of the planting period has not

passed.

(2) Whenever sweet corn initially is

planted during the fall or winter planting

periods and the condition specified in

section 9(b)(1)(ii) is not satisfied, you may

elect:

(i) To replant such acreage and collect any

replant payment due as specified in section

12. The initial planting period coverage will

continue for such replanted acreage.

(ii) Not to replant such acreage and receive

an indemnity based on the stage of growth

the plants had attained at the time of damage.

However, such an election will result in the

acreage being uninsurable in the subsequent

planting period.

10. Insurance Period.

In lieu of the provisions of section 11

(Insurance Period) of the Basic Provisions

(§ 457.8), coverage begins on each unit or part

of a unit the later of the date we accept your

application, or when the sweet corn is

planted in each planting period. Coverage

ends at the earliest of:

(a) Total destruction of the sweet corn on

the unit;

(b) Abandonment of the sweet corn on the

unit;

(c) The date harvest should have started on

the unit on any acreage which will not be

harvested;

(d) Final adjustment of a loss on the unit;

(e) Final harvest; or

(f) 100 days after the date of planting or

replanting.

11. Causes of Loss.

(a) In accordance with the provisions of

section 12 (Causes of Loss) of the Basic

Provisions (§ 457.8), insurance is provided

only against the following causes of loss that

occur during the insurance period:

(1) Excess rain;

(2) Excess wind;

(3) Fire;

(4) Freeze;

(5) Hail;

(6) Tornado; or

(7) Failure of the irrigation water supply,

if caused by an insured cause of loss that

occurs during the insurance period.

(b) In addition to the causes of loss

excluded in section 12 (Causes of Loss) of the

Basic Provisions (§ 457.8), we will not insure

against any loss of production due to:

(1) Disease;

(2) Insect infestation; or

(3) Failure to market the sweet corn, unless

such failure is due to actual physical damage

caused by an insured cause of loss that

occurs during the insurance period.

12. Replanting Payments.

(a) In accordance with section 13

(Replanting Payment) of the Basic Provisions

(§ 457.8), a replanting payment is allowed if,

due to an insured cause of loss, more than

25 percent of the plant stand will not

produce sweet corn and it is practical to

replant.

(b) The maximum amount of the replanting

payment per acre will be the result obtained

by multiplying $65.00 by your insured share.

(c) In lieu of the provisions contained in

section 13 (Replanting Payment) of the Basic

Provisions (§ 457.8), limiting a replanting

payment to one each crop year, only one

replanting payment will be made for acreage

planted during each planting period within

the crop year.

13. Duties In The Event of Damage or Loss.

In addition to the requirements contained

in section 14 (Duties In The Event of Damage

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

you intend to claim an indemnity on any unit

you also must give us notice not later than

72 hours after the earliest of:

(a) The time you discontinue harvest of any

acreage on the unit;

(b) The date harvest normally would start

if any acreage on the unit will not be

harvested; or

(c) The calendar date for the end of the

insurance period.

14. 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 unit, we will combine

all optional units for which such production

records were not provided; or

(2) For any basic unit, 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 in each

stage by the amount of insurance per acre for

the final stage;

(2) Multiplying each result in section

14(b)(1) by the percentage for the applicable

stage (see section 3(e));

(3) Total the results of section 14(b)(2);

(4) Subtracting either of the following

values from the result of section 14(b)(3): (i)

For other than catastrophic risk protection

coverage, the total value of production to be

counted (see section 14(c)); or

(ii) For catastrophic risk protection

coverage, the result of multiplying the total

value of production to be counted (see

section 14(c)) times:

(A) Sixty percent for the 1998 crop year; or

(B) Fifty-five percent for 1999 and

subsequent crop years; and

(5) Multiplying the result of section

14(b)(4) by your share.

(c) The total value of production to count

from all insurable acreage on the unit will

include:

(1) Not less than the amount of insurance

per acre for the stage for any acreage:

(i) That is abandoned;

(ii) Put to another use without our consent;

(iii) That is damaged solely by uninsured

causes; or

(iv) For which you fail to provide

acceptable production records.

(2) The value of the following appraised

production will not be less than the dollar

amount obtained by multiplying the number

of crates of appraised sweet corn times the

minimum value per crate shown in the

Special Provisions for the planting period:

(i) Unharvested production (unharvested

production that is damaged or defective due

to insurable causes and is not marketable will

not be counted as production to count);

(ii) Production lost due to uninsured

causes; and

(iii) Potential production on insured

acreage that you intend to put to another use

or abandon, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) We may require you to continue to care

for the crop so that a subsequent appraisal

may be made or the crop harvested to

determine actual production (If we require

you to continue to care for the crop and you

do not do so, the original appraisal will be

used); or

(B) You may elect to continue to care for

the crop, in which case the amount of

production to count for the acreage will be

the harvested production, or our reappraisal

if the crop is not harvested.

(3) The total value of all harvested

production from the insurable acreage will be
338 Federal Register / Vol. 62, No. 2 / Friday, January 3, 1997 / Proposed Rules

the dollar amount obtained by subtracting the

allowable cost contained in the Special

Provisions from the price received for each

crate of sweet corn (this result may not be

less than the minimum value shown in the

Special Provisions for any crate of sweet

corn), and multiplying this result by the

number of crates of sweet corn harvested.

Harvested mature sweet corn that is damaged

or defective due to insurable causes and is

not marketable, will not be counted as

production to count.

15. Written Agreements.

Designated terms of this policy may be

altered by written agreement in accordance

with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

15(e);

(b) The application for a written agreement

must contain all variable terms of the

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, and premium rate;

(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.

16. Minimum Value Option

(a) The provisions of this option are

continuous and will be attached to and made

a part of your insurance policy, if:

(1) You elect the Minimum Value Option

on your application, or on a form approved

by us, on or before the sales closing date for

the initial crop year in which you wish to

insure fresh market sweet corn under this

option, and pay the additional premium

indicated in the Actuarial Table for this

optional coverage; and

(2) You have not elected coverage under

the Catastrophic Risk Protection

Endorsement.

(b) In lieu of the provisions contained in

section 14(c)(3), the total value of harvested

production will be determined as follows:

(1) For sold production, the dollar amount

obtained by subtracting the allowable cost

contained in the Special Provisions from the

price received for each crate of sweet corn

(this result may not be less than zero for any

crate of sweet corn), and multiplying this

result by the number of crates of sweet corn

sold; and

(2) For marketable production that is not

sold, the dollar amount obtained by

multiplying the number of crates of such

sweet corn on the unit by the minimum value

shown in the Special Provisions for the

planting period (harvested production that is

damaged or defective due to insurable causes

and is not marketable will not be counted as

production).

(c) This option may be canceled by either

you or us for any succeeding crop year by

giving written notice on or before the

cancellation date preceding the crop year for

which the cancellation of this option is to be

effective.

Signed in Washington, D.C., on December

24, 1996

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–62 Filed 1–2–97; 8:45 am]

BILLING CODE 3410–FA–P

7 CFR Parts 445 and 457

Pepper Crop Insurance Regulations;

and Common Crop Insurance

Regulations, Fresh Market Pepper

Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of

fresh market peppers. 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 Pepper Crop Insurance

Regulations under the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current Pepper Crop

Insurance Regulations to the 1997 and

prior crop years.

DATES: Written comments, data and

opinions on this proposed rule will be

accepted until close of business

February 3, 1997 and will be considered

when the rule is to be made final. The

comment period for information

collections under the Paperwork

Reduction Act of 1995 continues

through March 3, 1997.

ADDRESSES: Interested persons are

invited to submit written comments to

the Chief, Product Development Branch,

Federal Crop Insurance Corporation,

United States Department of

Agriculture, 9435 Holmes Road, Kansas

City, MO 64131. Written comments will

be available for public inspection and

copying in room 0324, South Building,

United States Department of

Agriculture, 14th and Independence

Avenue, S.W., Washington, D.C., 8:15

a.m. to 4:45 p.m., est, Monday through

Friday, except holidays.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Program Analyst,

Research and Development Division,

Product Development Branch, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

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

The title of this information collection

is ‘‘Catastrophic Risk Protection Plan

and Related Requirements including,

Common Crop Insurance Regulations;

Fresh Market Pepper Crop Insurance

Provisions.’’ The information to be

collected includes a crop insurance

application and an acreage report.

Information collected from the

application and acreage report is

electronically submitted to FCIC by the

reinsured companies. Potential

respondents to this information

collection are producers of fresh market

peppers that are eligible for Federal crop

insurance.

The information requested is

necessary for the reinsured companies

and FCIC to provide insurance and

reinsurance, determine eligibility,

determine the correct parties to the

agreement or contract, determine and

collect premiums or other monetary

amounts, and pay benefits.

All information is reported annually.

The reporting burden for this collection

of information is estimated to average

16.9 minutes per response for each of

the 3.6 responses from approximately

1,755,015 respondents. The total annual

burden on the public for this

information collection is 2,676,932

hours.

FCIC is requesting comments on the

following: (a) Whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information shall have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

or other forms of information gathering

technology.

Comments regarding paperwork

reduction should be submitted to the