Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14781

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: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes 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.

EFFECTIVE DATE: March 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, United

States Department of Agriculture, 9435

Holmes Road, Kansas City, MO 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order No. 12866, and, therefore, this

rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments on

information collection requirements

previously approved by OMB under

OMB control number 0563–0003

through September 30, 1998. No public

comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform 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

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. 12988

The provisions of this rule will not

have a retroactive effect prior to the

effective date. The provisions of this

rule will preempt state and local laws to

the extent such state and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR part 11 must be

exhausted before any action for judicial

review may be brought.

Environmental Evaluation

This action is not expected to have a

significant impact on the quality of the

human environment, health, and safety.

Therefore, neither an Environmental

Assessment nor an Environmental

Impact Statement is needed.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicative regulations

and improve those that remain in force.

Background

On Friday, January 3, 1997, FCIC

published a proposed rule making, in

the Federal Register at 62 FR 333–338

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). This rule also

amends § 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.

Following publication of the proposed

rule, the public was afforded 30 days to

submit written comments, data and

opinions. A total of 21 comments were

received from the crop insurance

industry and FCIC Regional Service

Offices (RSO). The comments received,

and FCIC’s responses, are as follows:

Comment: A representative of FCIC

recommended adding carton to the

definition of crate. To expand fresh

market sweet corn insurance, the

method of measuring production to

count must be applicable to other areas.

The commenter stated cartons

containing 48 to 52 ears were used in

the midwest.

Response: FCIC agrees that revising

the unit of measure would allow

expansion of fresh market sweet corn

crop insurance into areas that utilize

units of measure other than the standard

crate. The provisions have been

amended to replace the term ‘‘crate’’

with the term ‘‘container’’. The

definition of ‘‘container’’ specifies the

unit of measure and the number of

pounds or number of ears of the insured

crop will be specified in the Special

Provisions.

Comment: A representative of FCIC

recommended adding to the definition
14782 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

of excess wind, ‘‘or an occurrence at a

time that prevents adequate

pollination’’.

Response: FCIC agrees with the

comment and has amended the

provision contained in section 1

accordingly.

Comment: One comment from the

crop insurance industry recommended

clarifying the language in section 2(a) by

stating ‘‘Basic units, as defined in

section 1 (Definitions) of the Basic

Provisions, will be established by

planting period.’’

Response: FCIC agrees with the

comment and has amended section 2(a)

to indicate a basic unit will be

established by planting period.

However, the definition of ‘‘unit’’ is

contained in the Basic Provision and no

change will be made in that portion of

the provision.

Comment: One comment received

from the crop insurance industry stated

that the references to land

measurements such as leagues and

labors was unnecessary. These type of

land measurement were not applicable

to the Southeast and crop insurance for

fresh market sweet corn is only

available in the Southeast.

Response: Fresh market sweet corn

insurance may be expanded into other

areas where such measurements are

applicable. Therefore, no change will be

made.

Comment: The crop insurance

industry questioned if it was necessary

to specify in section 3(c) that the CAT

amount of insurance will be in the

Actuarial Table when all available

amounts of insurance are specified in

section 3(a).

Response: FCIC agrees section 3(a)

states the coverage levels and amounts

of insurance are contained in the

Actuarial Table. As section 3(c)

provides no additional statements or

requirements, FCIC has deleted this

provision and renumbered the

remaining provisions.

Comment: One comment from the

crop insurance industry stated section 3

contained a heading in the stage chart

and a statement within the chart was

misleading. The chart heading suggested

the percentages represented coverage

levels that the insured would select

rather than the amount of insurance that

is selected by the insured and that the

chart statement ‘‘until the acreage is

harvested’’ suggests there is a stage after

the final stage for after harvest. The

commenter suggested the chart heading

should state. ‘‘Percent in effect of your

amount of insurance.’’

Response: FCIC believes the wording

in the stage chart is clearly stated.

Therefore, no change will be made.

Comment: A representative of FCIC

recommended the final stage contained

in Section 3(d) should be the harvested

stage. The commenter indicated they

did not understand why the final stage

would begin at tasseling.

Response: Fresh market sweet corn

insurance is structured to cover most of

the producer’s pre-harvest costs in case

of a crop failure. To assure indemnities

are paid based on the costs incurred at

the time of loss, the crop maturity stages

and corresponding maximum dollar

amount of insurance represent the levels

at which a producer has incurred the

pre-harvest cost. FCIC has determined

that a producer has reached 100 percent

of the pre-harvest costs when the sweet

corn crop reaches tasseling and,

therefore, receives 100 percent of the

per acre dollar amount of insurance.

FCIC believes the stage levels are

representative of the program objectives

and no changes will be made.

Comment: A representative of FCIC

recommended deleting from the list of

states with a contract change date of

November 30, the specific state names

of Alabama and South Carolina. The

provision already specifies ‘‘all other

states’’.

Response: FCIC agrees with the

comment and has amended section 4

accordingly.

Comment: The crop insurance

industry recommended a grammatical

change in section 7, to add a comma and

hyphen in ‘‘e.g., fall-planted irrigated.’’

Response: FCIC agrees with the

comment and has amended the

provision in section 7 accordingly.

Comment: An FCIC representative

recommended changing section 8(b)(3)

to allow insurance on non-irrigated

acreage. Production of fresh market

sweet corn on non-irrigated acreage is a

recommended farming practice in Iowa,

Minnesota and Wisconsin.

Response: FCIC has amended the

provision contained in section 8(b)(3) to

state that the insured crop will be

‘‘grown under an irrigated practice,

unless otherwise provided in the

Special Provisions’’ to allow expansion

into other areas as appropriate.

Comment: The crop insurance

industry stated the provision in section

9(a) that states we will insure newly

cleared land or former pasture land

planted to fresh market sweet corn is

new to the crop provisions. The

commenter questioned if a waiting

period was required before planting the

insured crop on newly cleared or former

pasture land.

Response: To provide consistency

among the fresh market vegetable crops,

FCIC incorporated provisions contained

in other fresh market crop endorsements

and also clarified that former pasture

land planted to the insured crop is

insurable. It is a recommended practice

for the fresh market vegetable crops to

be planted on newly cleared and former

pasture land so no waiting period is

required prior to planting the insured

crop.

Comment: The crop insurance

industry questioned if the phrase

‘‘coverage begins . . . the later of the

date we accept your application, or

when the sweet corn is planted in each

planting period’’ means that an

application could be accepted after the

sales closing to have coverage for

subsequent planting periods in the crop

year. If so, what is the purpose of having

one sales closing date for the crop?

Response: Section 10 of these

provisions do not alter the requirement

contained in section 11 of the Basic

Provisions, which states the application

must be submitted by the sales closing

date. The sales closing date corresponds

to the earliest planting period so only

one application is filed for the crop year

and covers all subsequent planting

periods. Since there are multiple

planting periods in each crop year, the

date insurance attaches in each planting

period must be established. Provisions

in section 10 simply clarify when

insurance will attach. Therefore, no

change will be made.

Comment: Two comments from the

crop insurance industry and two

comments from FCIC representatives

recommended removing disease and

insect infestation as uninsured causes of

loss. The commenters suggested that

disease and insects should be an

insured cause of loss if a producer

exhausts all reasonable means to protect

the crop. This would provide coverage

for new diseases and insects that cannot

presently be controlled by the chemicals

that are available.

Response: FCIC agrees that coverage

should be available for damage due to

disease and insect infestation for which

no effective control measure exists.

Therefore, FCIC has amended the

provisions contained in section 11(b)(1)

accordingly.

Comment: Two comments from the

crop insurance industry recommended

raising the maximum amount of the

replanting payment per acre. Both

commenters stated the maximum

amount provided in the current policy

is not sufficient to cover actual costs.

Response: FCIC agrees there may be

instances when replanting costs exceed

$65.00 per acre as provided in the

current endorsement. Therefore,

provisions contained in section 12(b)

have been revised to state that the

maximum amount of the replanting
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14783

payment per acre will be the lesser of

your actual cost of replanting, or the

result obtained by multiplying the

maximum amount of the replanting

payment contained in the applicable

Special Provisions by your insured

share.

Comment: The crop insurance

industry suggested combining the

provisions in section 15(e) with the

provisions in 15(a).

Response: Approval of written

agreements requested after the sales

closing date is the exception, not the

rule. Therefore, these provisions should

be kept separate and no changes have

been made.

Comment: The crop insurance

industry recommended the requirement

for a written agreement to be renewed

each year be removed. Terms of the

agreement should be stated in the

agreement to fit the particular situation

for the policy, or if no substantive

changes occur from one year to the next,

allow written agreements to be

continuous.

Response: Written agreements are

intended to change policy terms or

permit insurance in unusual situations

where such changes will not increase

risk. If such practices continue year to

year, they should be incorporated into

the policy or Special Provisions. It is

important to minimize exceptions to

assure that the insured is well aware of

the specific terms of the policy.

Therefore, no change will be made.

Comment: One comment from the

crop insurance industry expressed

concerns regarding payment of

additional premium under the

provisions of the minimum value

option. In prior years, producers

received an allowable cost of $2.50 per

crate for no additional premium charge.

Response: FCIC believes the

commenter misunderstood the

provisions contained in the minimum

value option. To provide consistency

among the fresh market vegetable crops,

FCIC incorporated the minimum value

option into the sweet corn provisions.

The minimum value option will, for an

additional premium, allow the total

value of production to count on a unit

to be as low as zero. The additional

premium charge will be for those

producers who elect the minimum value

option. For those producers who do not

elect the minimum value option, section

14 provides that the total value of

production to count will be the greater

of: (1) the price received for each

container minus the allowable cost; or

(2) the minimum value per container.

No changes will be made.

Good cause is shown to make this rule

effective upon publication in the

Federal Register. This rule improves the

fresh market sweet corn insurance

coverage and brings it under the

Common Crop Insurance Policy Basic

Provisions for consistency among

policies. The earliest contract change

date that can be met for the 1998 crop

year is April 30, 1997. It is therefore,

imperative that these provisions be

made final before that date so that the

reinsured companies and insureds may

have sufficient time to implement these

changes. Therefore, public interest

requires the agency to make the rules

effective upon publication.

List of Subjects in 7 CFR Parts 401 and

457

Crop insurance, Fresh market sweet

corn crop insurance regulations, Fresh

market sweet corn.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 401 and 457 effective for the

1998 and succeeding crop years to read

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(1), 1506(p).

2. In § 401.138 the introductory

paragraph 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. Section 457.129 is added 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:

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

Container—The unit for measurement of

the insured crop as specified in the Special

Provisions.

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 prevent adequate pollination or 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.
14784 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

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

containers 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) In addition to the requirements

contained in section 1 (Definitions) of the

Basic Provisions (§ 457.8), (basic unit), a

basic unit will also be established 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 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.

(d) The amounts of insurance are

progressive by stages as follows:

Stage

Percent of

the 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.

(e) 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.

April 30.

All Georgia counties for which

the Special Provisions do

not designate a fall planting

period; and all other States.

November

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:
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14785

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.

February 15.

All other States ..................... March 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

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,

unless otherwise provided in the Special

Provisions;

(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 or insect infestation, unless no

effective control measure exists for such

disease or insect infestation; or

(2) 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 lesser of your

actual cost of replanting or the result

obtained by multiplying the per acre

replanting payment amount contained in the

Special Provisions 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:
14786 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

(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 containers of appraised sweet corn times

the minimum value per container 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

the dollar amount obtained by subtracting the

allowable cost contained in the Special

Provisions from the price received for each

container of sweet corn (this result may not

be less than the minimum value shown in the

Special Provisions for any container of sweet

corn), and multiplying this result by the

number of containers 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 container of sweet

corn (this result may not be less than zero for

any container of sweet corn), and multiplying

this result by the number of containers of

sweet corn sold; and

(2) For marketable production that is not

sold, the dollar amount obtained by

multiplying the number of containers 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, DC, on March 24,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–7943 Filed 3–27–97; 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: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes 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.

EFFECTIVE DATE: March 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, United

States Department of Agriculture, 9435

Holmes Road, Kansas City, MO 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order No. 12866, and, therefore, this

rule has not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments on

information collection requirements

previously approved by OMB under

OMB control number 563–0003 through

September 30, 1998. No public

comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of title II of the UMRA) for

State, local, and tribal governments or

the private sector. Thus, this rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

Executive Order No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on states or their political