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

17103

Vol. 62, No. 68

Wednesday, April 9, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 447 and 457

Popcorn Crop Insurance Regulations;

and Common Crop Insurance

Regulations, Popcorn 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

popcorn. 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 Popcorn Crop Insurance

Regulations with the Common Crop

Insurance Policy for ease of use and

consistency of terms, and to restrict the

effect of the current Popcorn Crop

Insurance Regulations to the 1997 and

prior crop years.

DATES: Written comments on this

proposed rule will be accepted until

close of business May 9, 1997 and will

be considered when the rule is to be

made final.

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.

FOR FURTHER INFORMATION CONTACT:

Linda Williams, 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

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order 12866, and therefore, this rule has

not been reviewed by OMB.

Paperwork Reduction Act of 1995

The amendments set forth in this

proposed rule contains information

collection that requires clearance by the

Office of Management and Budget

(OMB) under the provisions of 44 U.S.C.

chapter 35.

The title of this information collection

is ‘‘Catastrophic Risk Protection Plan

and Related Requirements including,

Common Crop Insurance Regulations;

Popcorn 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 popcorn 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 2,669,970

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 12612

It has been determined under section

6(a) of Executive Order 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 larger entities. Under the current

regulations, a producer is required to

complete an application and an 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
17104 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

claim for indemnity. The insured also

must annually certify to the previous

years production if adequate records are

available to support the certification.

The producer must maintain the

production records to support the

certified information for at least three

years. This regulation does not alter

those requirements. The amount of work

required of the insurance companies

delivering and servicing these policies

will not increase significantly from the

amount of work currently required. This

rule does not have any greater or lesser

impact on the producer. Therefore, this

action is determined to be exempt from

the provisions of the Regulatory

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

Regulatory Flexibility Analysis was

prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order 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

3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12988

The provisions of this rule will not

have 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

FCIC proposes to add to the Common

Crop Insurance Regulations (7 CFR part

457), a new section, 7 CFR 457.126,

Popcorn 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

popcorn found at 7 CFR part 447

(Popcorn Crop Insurance Regulations).

FCIC also proposes to amend 7 CFR part

447 to limit its effect to the 1997 and

prior crop years. FCIC will later publish

a regulation to remove and reserve 7

CFR part 447.

This rule makes minor editorial and

format changes to improve the Popcorn

Crop Insurance Regulations’

compatibility with the Common Crop

Insurance Policy. In addition, FCIC is

proposing substantive changes in the

provisions for insuring popcorn as

follows:

1. Section 1—Add definitions for the

terms ‘‘base contract price,’’ ‘‘days,’’

‘‘FSA,’’ ‘‘final planting date,’’ ‘‘good

farming practices,’’ ‘‘interplanted,’’

‘‘irrigated practice,’’ ‘‘merchantable

popcorn,’’ ‘‘planted acreage,’’ ‘‘pound,’’

‘‘practical to replant,’’ ‘‘processor,’’

‘‘processor contract,’’ ‘‘production

guarantee,’’ ‘‘timely planted’’ and

‘‘written agreement’’ for clarification.

2. Section 3—Clarify that an insured

may select only one price election for all

the popcorn in the county insured

under the policy, unless the Special

Provisions provide different price

elections by type, in which case the

insured may select one price election for

each popcorn type designated in the

Special Provisions.

3. Section 4—Change the contract

change date to November 30 for all

counties that currently have April 15

cancellation and termination dates. This

change is made to maintain an adequate

time period between this date and the

cancellation dates revised to correspond

to the changes in the sales closing date

to comply with the Federal Crop

Insurance Reform Act of 1994, for

producers to make informed risk

management decisions.

4. Section 5—Change the cancellation

and termination dates from April 15 to

January 15 for certain Texas counties.

The cancellation and termination dates

for all other Texas counties and all other

states are changed from April 15 to

March 15. These changes are made to

standardize the cancellation and

termination dates with the sales closing

dates.

5. Section 6—Require the insured to

provide a copy of the processor contract

to the insurance provider on or before

on the acreage reporting date to

establish liability and insurability before

a loss is likely to occur.

6. Section 7(a)(4)—Permit

consideration for requests for a written

agreement to insure popcorn that is

interplanted with another crop or

planted into an established grass or

legume.

7. Section 7(c)—Specify the

requirements under which a popcorn

producer who is also a processor may

establish an insurable interest in the

insured crop.

8. Section 8—Clarify that any acreage

damaged prior to the final planting date

to the extent that the majority of growers

in the area would normally not further

care for the crop must be replanted

unless the insurance provider agrees

that it is not practical to replant.

9. Section 9(a)—Add provisions for

the insurance period to end when the

popcorn should have been harvested or

when enough popcorn is delivered to

fulfill the producer’s processor contract.

This requirement is consistent with

other crops produced under a processor

contract.

10. Section 12—Require that

representative samples of the

unharvested crop must be 10 feet wide

and extend the entire length of each

field in the unit and cannot be harvested

or destroyed until the earlier of our

inspection or 15 days after harvest is

completed.

11. Section 13(c)(1)(iv)—Require the

insured to leave intact, and provide

sufficient care for, representative

samples 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.

12. Section 14—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 provides for

individual written agreements

consistent with FCIC’s usual policy.

List of Subjects in 7 CFR Parts 447 and

457

Crop insurance, Popcorn, Popcorn

crop insurance regulations.

Proposed Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby proposes

to amend 7 CFR parts 447 and 457, as

follows:

PART 447—POPCORN CROP

INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 447 is revised to read as follows:

Authority: 7 U.S.C. 1506(l), 1506(p).
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17105

2. The subpart heading preceding

Section 447.1 is revised to read as

follows:

Subpart—Regulations for the 1987

Through the 1997 Crop Years

3. Section 447.7 is amended by

revising the introductory text of

paragraph (d) to read as follows:

§ 447.7 The application and policy.

* * * * *

(d) The application for the 1987 and

succeeding crop years is found at

subpart D of part 400–General

Administrative Regulations (7 CFR

400.37, 400.38). The provisions of the

Popcorn Insurance Policy for the 1987

through 1997 crop years are as follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

4. The authority citation for 7 CFR

part 457 continues to read as follows:

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

5. Section 457.126 is added to read as

follows:

§ 457.126 Popcorn crop insurance

provisions.

The Popcorn 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:

Popcorn Crop Insurance 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.

Base contract price—The price stipulated

on the contract executed between you and

the processor before any adjustments for

quality.

Days—Calendar days.

FSA—The Farm Service Agency, an agency

of the United States Department of

Agriculture or a successor agency.

Final planting date—The date contained in

the Special Provisions for the insured crop by

which the crop must initially be planted in

order to be insured for the full production

guarantee.

Good farming practices—The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee, and

are those required by the popcorn processor

contract and recognized by the Cooperative

State Research, Education and Extension

Service as compatible with agronomic and

weather conditions in the county.

Harvest—Removing the grain or ear from

the stalk either by hand or by machine.

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 to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Merchantable popcorn—Popcorn that

meets the provisions of the processor

contract.

Planted acreage—Land in which seed has

been placed by a machine appropriate for the

insured crop and planting method, at the

correct depth, into a seedbed that has been

properly prepared for the planting method

and production practice. Popcorn must

initially be placed 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.

Pound—Sixteen (16) ounces avoirdupois.

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,

marketing windows, condition of the field,

and time to crop maturity, that replanting the

insured crop will allow the crop to attain

maturity prior to the calendar date for the

end of the insurance period. It will not be

considered practical to replant unless

production from the replanted acreage can be

delivered under the terms of the processor

contract.

Processor—Any business enterprise

regularly engaged in processing popcorn for

human consumption, that possesses all

licenses, permits or approved inspections for

processing popcorn required by the state in

which it operates, and that possesses

facilities, or has contractual access to such

facilities, with enough equipment to accept

and process contracted popcorn within a

reasonable amount of time after harvest.

Processor contract—A written agreement

between the producer and a processor,

containing at a minimum:

(a) The producer’s commitment to plant

and grow popcorn, and to deliver the

popcorn production to the processor;

(b) The processor’s commitment to

purchase all the production stated in the

contract;

(c) A date, if specified on the processor’s

contract, by which the crop must be

harvested to be accepted; and

(d) A base contract price.

Production guarantee (per acre)—The

number of pounds determined by

multiplying the approved APH yield per acre

by the coverage level percentage you elect.

Replanting—Performing the cultural

practices necessary to replace the popcorn

seed and then replacing the popcorn seed in

the insured acreage with the expectation of

growing a successful crop.

Timely planted—Planted on or before the

final planting date designated in the Special

Provisions for the insured crop in the county.

Written agreement—A written document

that alters designated terms of a policy in

accordance with section 15.

2. Unit Division.

(a) Unless limited by the Special

Provisions, a unit as defined in section 1

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

(basic unit) may be divided into optional

units, if for each optional unit you meet all

the conditions of this section or if a written

agreement to such division exists.

(b) Basic units may not be divided into

optional units on any basis including, but not

limited to, production practice, type, variety,

and planting period, other than as described

in this section.

(c) Optional units will be available only if

the processor contract stipulates the number

of acres that are under contract and not a

specific amount of production.

(d) 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.

(e) All optional units must be identified on

the acreage report for each crop year.

(f) 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 used to determine

your production guarantee;

(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) For each crop year, records of marketed

production or measurement of stored

production from each optional unit must be

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 meet one or

more of the following criteria, as applicable:

(i) Optional Units by Section, Section

Equivalent, or FSA Farm Serial Number:

Optional units may be established if each

optional unit is located in a separate legally

identified section. In the absence of sections,

we may consider parcels of land legally

identified by other methods of measure

including, but not limited to Spanish grants,

railroad surveys, leagues, labors, or Virginia

Military Lands, as the equivalent of sections
17106 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

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.

(ii) Optional Units on Acreage Including

Both Irrigated and Non-irrigated Practices: In

addition to, or instead of, establishing

optional units by section, section equivalent,

or FSA Farm Serial Number, optional units

may be based on irrigated acreage and nonirrigated acreage if both are located in the

same section, section equivalent, or FSA

Farm Serial Number. To qualify as separate

irrigated and non-irrigated optional units, the

non-irrigated acreage may not continue into

the irrigated acreage in the same rows or

planting pattern. The irrigated acreage may

not extend beyond the point at which the

irrigation system can deliver the quantity of

water needed to produce the yield on which

the guarantee is based, except the corners of

a field in which a center-pivot irrigation

system is used will be considered as irrigated

acreage if separate acceptable records of

production from the corners are not

provided. If the corners of a field in which

a center-pivot irrigation system is used do

not qualify as a separate non-irrigated

optional unit, they will be a part of the unit

containing the irrigated acreage. Nonirrigated acreage that is not a part of a field

in which a center-pivot irrigation system is

used may qualify as a separate optional unit

provided that all requirements of this section

are met.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities.

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 price election for all the popcorn in

the county insured under this policy unless

the Special Provisions provide different price

elections by type, in which case you may

select one price election for each popcorn

type designated in the Special Provisions.

The price elections you choose for each type

must have the same percentage relationship

to the maximum price offered by us for each

type. For example, if you choose 100 percent

(100%) of the maximum price election for

one type, you must also choose 100 percent

(100%) of the maximum price election for all

other types.

4. Contract Changes.

In accordance with section 4 (Contract

Changes) of the Basic Provisions (§ 457.8),

the contract change date is November 30

preceding the cancellation date.

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

Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, Karnes,

Goliad, Victoria, and Jackson

Counties Texas, and all Texas

counties lying south thereof.

Jan. 15.

All other Texas counties and all

other states.

Mar. 15.

6. Report of Acreage.

In addition to the provisions of section 6

(Report of Acreage) of the Basic Provisions

(§ 457.8), you must provide a copy of the

processor contract to us on or before the

acreage reporting date.

7. Insured Crop.

(a) In accordance with section 8 (Insured

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

crop insured will be all the popcorn in the

county for which a premium rate is provided

by the actuarial table:

(1) In which you have a share;

(2) That is planted for harvest as popcorn;

(3) That is grown under, and in accordance

with the requirements of, a processor

contract executed before the acreage

reporting date and is not excluded from the

processor contract at anytime during the crop

year; and

(4) That is not (unless allowed by the

Special Provisions or by written agreement):

(i) Interplanted with another crop; or

(ii) Planted into an established grass or

legume.

(b) You will be considered to have a share

in the insured crop if, under the processor

contract, you retain possession of the acreage

on which the popcorn is grown, and the

processor contract provides for delivery of

popcorn under specified conditions and at a

stipulated base contract price, and you retain

an insurable interest in the crop.

(c) A popcorn producer who is also a

processor may be able to establish an

insurable interest if the following

requirements are met:

(1) The processor must meet the

requirements as defined in these crop

provisions and have an insurable interest in

the popcorn crop;

(2) The Board of Directors or officers of the

processor must have instituted a resolution

that sets forth essentially the same terms as

a processor contract. Such resolution will be

considered a contract under the terms of the

popcorn crop insurance policy; and

(3) Our inspection of the processing

facilities determines that they satisfy the

definition of a processor contained in these

crop provisions.

8. Insurable Acreage.

In addition to the provisions of section 9

(Insurable Acreage) of the Basic Provisions

(§ 457.8), any acreage of the insured crop

damaged before the final planting date, to the

extent that the majority of growers in the area

would normally not further care for the crop,

must be replanted unless we agree that it is

not practical to replant.

9. Insurance Period.

In lieu of the provisions contained in

section 11 (Insurance Period) of the Basic

Provisions (§ 457.8), regarding the end of the

insurance period, insurance ceases on each

unit or part of a unit at the earliest of:

(a) The date the popcorn:

(1) Was destroyed;

(2) Should have been harvested;

(3) Was abandoned; or

(4) Was harvested;

(b) The date you have harvested sufficient

production to fulfill your processor contract;

(c) Final adjustment of a loss; or

(d) December 10 immediately following

planting.

10. 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) Adverse weather conditions;

(2) Fire;

(3) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(4) Plant disease, but not damage due to

insufficient or improper application of

disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) 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 do not insure

against any loss of production due to:

(1) Damage resulting from frost or freeze

after the date designated by the Special

Provisions;

(2) Failure to follow the requirements

contained in the processor contract; or

(3) Damage that occurs to unharvested

production after you deliver the production

required by the processor contract.

11. Replanting Payment.

(a) In accordance with section 13

(Replanting Payment) of the Basic Provisions

(§ 457.8), a replanting payment is allowed if

the crop is damaged by an insurable cause of

loss to the extent that the remaining stand

will not produce at least 90 percent (90%) of

the production guarantee for the acreage and

it is practical to replant.

(b) The maximum amount of the replanting

payment per acre will be the lesser of 20

percent (20%) of the production guarantee or

150 pounds, multiplied by your price

election, multiplied by your insured share.

(c) When popcorn is replanted using a

practice that is uninsurable as an original

planting, the liability for the unit will be

reduced by the amount of the replanting

payment. The premium amount will not be

reduced.

12. Duties In The Event of Damage or Loss.

In accordance with the requirements of

section 14 (Duties in the Event of Damage or

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

representative samples of the unharvested

crop must be at least 10 feet wide and extend

the entire length of each field in the unit. The

samples must not be destroyed until the

earlier of our inspection or 15 days after

harvest of the balance of the unit is

completed.
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17107

13. Settlement of Claim.

(a) We will determine your loss on a unit

basis. In the event you are unable to provide

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 by its

respective production guarantee, by type if

applicable;

(2) Multiplying each result of section

13(b)(1) by the respective price election, by

type if applicable;

(3) Totaling the results of section 13(b)(2);

(4) Multiplying the total production to be

counted of each type, if applicable, (see

subsection 13(c)) by the respective price

election;

(5) Totaling the results of section 13(b)(4);

(6) Subtracting the result of section 13(b)(5)

from the result in section 13(b)(3); and

(7) Multiplying the result of section

13(b)(6) by your share.

(c) The total production to count (in

pounds) from all insurable acreage on the

unit will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) Damaged solely by uninsured causes; or

(D) For which you fail to provide

production records;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production (mature

unharvested production may be adjusted for

quality deficiencies and excess moisture in

accordance with section 13(d));

(iv) 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) If you do not elect to continue to care

for the crop, we may give you consent to put

the acreage to another use if you agree to

leave intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us, (The amount of

production to count for such acreage will be

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or fail to

provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) If you elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested; and

(2) All harvested production from the

insurable acreage.

(3) Any production from yellow or white

dent corn will be counted as popcorn on a

weight basis and any production harvested

from plants growing in the insured crop may

be counted as popcorn production on a

weight basis.

(4) Any ear production for which we

cannot determine a shelling factor will be

considered to have an 80 percent (80%)

shelling factor.

(d) Mature popcorn may be adjusted for

excess moisture and quality deficiencies. If

moisture adjustment is applicable, it will be

made prior to any adjustment for quality.

(1) Production will be reduced by 0.12

percent for each 0.1 percentage point for

moisture in excess of 15 percent (15%). We

may obtain samples of the production to

determine the moisture content.

(2) Popcorn production will be eligible for

quality adjustment if, due to an insurable

cause of loss that occurs within the insurance

period, it is not merchantable popcorn and is

rejected by the processor. The production

will be adjusted by:

(i) Dividing the value per pound of the

damaged popcorn by the base contract price

per pound for undamaged popcorn; and

(ii) Multiplying the result by the number of

pounds of such popcorn.

14. 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

14(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, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on April 2,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–9008 Filed 4–8–97; 8:45 am]

BILLING CODE 3410–FA–P

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

7 CFR Parts 4279 and 4287

RIN 0570–AA25

Rural Venture Capital Demonstration

Program

AGENCY: Rural Business-Cooperative

Service (RBS), USDA.

ACTION: Advanced notice of proposed

rulemaking.

SUMMARY: Section 761 of the Federal

Agriculture Improvement and Reform

Act of 1996 (Pub. L. 104–127) adds

section 381O to the Consolidated Farm

and Rural Development Act (7 U.S.C.

1921 et seq.) which authorizes a

demonstration program using Federal

loan guarantees to attract venture capital

funds to rural areas. RBS is preparing to

develop regulations to implement this

program.

In order to afford the public the

maximum opportunity to contribute to

the development of this new program

and to enable the Agency to consider as

many options as possible, RBS is

requesting comments to assist in

drafting the proposed rule.

DATES: The advance notice of proposed

rulemaking is subject to written

comments received on or before May 9,

1997.

The Agency is limiting the comment

period on this advanced notice to 30

days in order to expedite the rulemaking

process. The proposed rule will have a

longer comment period.

ADDRESSES: Submit written comments

in duplicate to the Chief, Regulations

and Paperwork Management Division,

Rural Development, U.S. Department of

Agriculture, Stop Box 0743, 1400

Independence Avenue SW.,

Washington, DC 20250–0743. All

written comments will be available for

public inspection during regular work

hours at the above address. Comments

may be submitted via the internet by

addressing them to

‘‘comments@rus.usda.gov’’ and must

contain ‘‘venture’’ in the subject.

FOR FURTHER INFORMATION CONTACT: Rick

Bonnet, Senior Commercial Loan

Specialist, RBS, U.S. Department of

Agriculture, Stop 3221, 1400

Independence Avenue SW.,

Washington, DC 20250–3221,

Telephone (202) 720–1804.

SUPPLEMENTARY INFORMATION:

Classification

This rule will be determined to be

‘‘significant’’ and will be reviewed by

OMB under Executive Order 12866.