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
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14787

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 in the

Federal Register at 61 FR 338–343 to

add to the Common Crop Insurance

Regulations (7 CFR part 457), a new

section, 7 CFR 457.148, Fresh Market

Pepper 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 peppers found at 7 CFR part 445

(Pepper Crop Insurance Regulations).

This rule also amends 7 CFR part 445

to limit its effect to the 1997 and prior

crop years. FCIC will later publish a

regulation to remove and reserve part

445.

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: The crop insurance

industry questioned removing the term

‘‘marketable’’ from the definition of

harvest. The commenter questioned the

affect when the final stage of insurance

on a unit can be triggered by the

beginning of harvest, even if none of the

crop is marketable.

Response: The current regulation

created confusion since it suggested that

if the peppers were not marketable, they

would not be considered as harvested

for the purposes of determining the

insurance period, calculation of any

claim, etc. The picking of peppers on

the unit, whether marketable or not, is

considered harvested. The final stage of

insurance on the unit begins when any

peppers are harvested, whether

marketable or not. Requirements of good

farming practices will prevent harvest of

the peppers before they are ready.

Section 14 contains provisions to

determine the amount of production to

be counted for harvested and

unharvested, including peppers that are

not marketable. Therefore, no change

will be made to the definition.

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 Provisions and

no change will be made in that portion

of the provision.

Comment: One comment from the

crop insurance industry stated that

references to land measurements such

as leagues and labors contained in

section 2, Unit Division, was

unnecessary. These types of land

measurement were not applicable in

Florida and fresh market pepper crop

insurance is only available in Florida.

Response: Fresh market pepper

insurance may be expanded into other

areas where such measurements are

applicable. Therefore, no changes 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

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

of the crop provisions contained a

heading in the stage chart that 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. The

commenter suggested the chart heading

should state, ‘‘Percent in effect of your

amount of insurance.’’

Response: FCIC believes the heading

of the stage chart is clearly stated.

Therefore, no change will be made.

Comment: One comment received

from an FCIC RSO recommended

clarifying the Basic Provisions, by

adding a provision in section 6 to state

that the insured must report the dates

the insured acreage was planted within

each planting period.

Response: FCIC concurs with the

comment and had added a provision

accordingly.

Comment: The crop insurance

industry recommended a grammatical

change in section 7, to add a comma and

hyphen in ‘‘e.g., fall direct-seeded

irrigated.’’

Response: FCIC agrees with the

comment and has amended the

provision in section 7 accordingly.

Comment: The crop insurance

industry questioned if the provision in

section 9(a) that states we will insure
14788 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

newly cleared land or former pasture

land planted to fresh market peppers is

new to the crop provisions and if a

waiting period was applicable before

insuring fresh market peppers on newly

cleared land or former pasture land.

Response: To provide consistency

among the fresh market vegetable crops,

FCIC clarified that former pasture land

planted to the insured crop is also

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: One comment from the

crop insurance industry stated section

9(b)(3) was confusing due to the ‘‘except

as allowed in section 9(b) (1) and (2)’’,

and they could not determine what was

or was not allowed. The commenter

stated that if it was intended to allow

coverage without fumigation on peppers

planted in the next planting period after

peppers were planted but not carried to

harvest the previous period, then the

exception should only refer to section

9(b)(2)(ii). Provisions contained in

section 9(b) (1) and (2) refer to peppers

planted and replanted and it would

seem that fumigation would be

necessary before planting peppers again

the following planting period. If the

exceptions in section 9(b) applied to

peppers following peppers, why

wouldn’t the exceptions also apply to

peppers following tomatoes, eggplants

or tobacco?

Response: Acreage previously planted

to peppers, tomatoes, eggplants or

tobacco may host nematodes that will

damage the insured crop. Chemicals

that are used to fumigate or treat the

acreage will last two to three months.

However, in those situations where the

crop was destroyed shortly after

planting and is replanted, there is little

risk from nematodes and fumigation is

not required. FCIC has amended the

provisions to clarify that fumigation is

required whenever the crop was

previously planted to peppers,

tomatoes, eggplants or tobacco and that

it does not apply to replanted peppers.

Comment: The crop insurance

industry questioned if the phrase

‘‘coverage begins * * * the later of the

date we accept your application, or

when the peppers are 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 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: One comment from the

crop insurance industry questioned if it

was valid to extend the end of the

insurance period for Florida from 150

days to 165 days after the date of direct

seeding.

Response: In addition to allowing

expansion of fresh market pepper

insurance coverage into other areas,

FCIC’s RSO obtained data from the

University of Florida Research Center

that indicated direct seeded peppers

required an additional 15 days more

than transplanted peppers to reach

maturity. This change provides

assurance that all mature production

will be included as production to count.

Comment: Two comments from the

crop insurance industry recommended

the cause of loss due to tropical

depression be changed to ‘‘excessive

winds sufficient to damage the crop.’’

The change would provide coverage for

damage due to winds associated with

stalled fronts, severe thunderstorms,

storms or gales. One of the commenters

indicated a stalled high and low

pressure system with winds in excess of

60 mph caused damage in November,

1996, which was not covered by the

current insurance policy.

Response: The current regulation

defined a tropical depression as a largescale, atmospheric wind-and-pressure

system characterized by low pressure at

its center and counterclockwise circular

wind motion. FCIC agrees that damage

to the insured crop may occur from

systems other than a tropical

depression. FCIC clarified the definition

of tropical depression to state that it is

a system identified by the U.S. Weather

Service, and includes tropical

depressions, hurricanes, tropical storms

and gales. Therefore, no change will be

made.

Comment: Two comments from the

crop insurance industry 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 recommend

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

$300.00 per acre as provided in the

current regulation. Therefore, provisions

contained in section 12(b) have been

revised to state that 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 maximum amount of

the replanting payment contained in the

applicable Special Provisions by your

insured share.

Comment: Two comments from the

crop insurance industry questioned if

the dollar amount of the allowable cost

contained in the Special Provisions has

been reviewed to determine if the cost

is sufficient. One of the commenters

recommended raising the allowable cost

by $.50.

Response: The amount of allowable

costs are provided in the Special

Provisions to allow the flexibility to set

the amount at appropriate levels.

Therefore, no changes will be made.

Comment: The crop insurance

industry suggested combining the

provisions contained in section 15(e)

with the provisions in section 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
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14789

important to minimize exceptions to

assure that the insured is well aware of

the specific terms of the policy.

Therefore, no changes will be made.

In addition to the changes described

above, FCIC has made the following

change to the Fresh Market Pepper Crop

Provisions:

1. Section 16(b)(1)(i)—Delete $2.75 as

the specified lowest dollar amount

obtained when computing the minimum

value per box of peppers sold. The

minimum value option price will now

be contained in the Special Provisions

to allow FCIC to ensure that the price is

correct for the county.

Good cause is shown to make this rule

effective upon publication in the

Federal Register. This rule improves the

fresh market pepper 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 rule effective upon

publication.

List of Subjects in 7 CFR Parts 445 and

457

Crop insurance, Pepper crop

insurance regulations, Fresh market

peppers.

Final Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation hereby amends 7 CFR parts

445 and 457 effective for the 1998 and

succeeding crops, to read as follows:

PART 445—PEPPER CROP

INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 445 is revised to read as follows:

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

2. The subpart headings preceding

§ 445.1 is revised to read as follows:

Subpart—Regulations for the 1987

Through the 1997 Crop Years

3. Section 445.7 is amended by

revising the introductory text of

paragraph (d) to read as follows:

§ 445.7 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

Pepper Crop 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 457.148 is added to read as

follows:

§ 457.148 Fresh Market Pepper Crop

Insurance Provisions.

The Fresh Market Pepper 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 Pepper 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

Acre—43,560 square feet of land when row

widths do not exceed six feet, or if row

widths exceed six feet, the land area on

which at least 7,260 linear feet of rows are

planted.

Bell pepper—An annual pepper (of the

capsicum annum species, grossum group),

widely cultivated for its large, crisp, edible

fruit.

Box—One and one-ninth (11⁄9) bushels 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 peppers and continues through

the last day of the insurance period for spring

planted peppers. The crop year is designated

by the calendar year in which spring planted

peppers are 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.

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 peppers 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.

Mature bell pepper—A pepper that has

reached the stage of development that will

withstand normal handling and shipping.

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, transplants or seed have

been placed manually or by a machine

appropriate for the insured crop and planting

method, at the correct depth, into soil that

has been properly prepared for the planting

method and production practice. For each

planting period, peppers must initially be

planted in rows. 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

the peppers must be planted to be considered

fall, winter or spring-planted peppers.

Potential production—The number of

boxes of mature bell peppers that the pepper

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 plants or seed will not be considered

when determining if it is practical to replant).

Replanting—Performing the cultural

practices necessary to replace the pepper

seed or transplants and then replacing the

pepper seed or transplants in the insured

acreage with the expectation of growing a

successful crop.

Row width—The widest distance from the

center of one row of plants to the center of

an adjacent row of plants.
14790 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

Tropical depression—A system identified

by the U.S. Weather Service as a tropical

depression, and for the period of time so

designated, including tropical storms, gales,

and hurricanes.

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 requirement

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, 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 insured

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 peppers 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 peppers.

(d) The amounts of insurance per acre are

progressive by stages as follows:

Stage

Percent of

the amount

of insurance

per acre

that you selected

Length of time if direct-seeded Length of time if transplanted

1 ............. 65 From planting through the 74th day after planting ............ From planting through the 44th day after planting.

2 ............. 85 From the 75th day after planting until the beginning of

stage 3.

From the 45th day after planting until the beginning of

stage 3.

3 ............. 100 Begins the earlier of 110 days after planting, or the beginning of harvest.Begins the earlier of 80 days after planting, or the beginning of harvest.

(e) Any acreage of peppers damaged in the

first or second 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 is April 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 July 31.

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:

(a) All the acreage of peppers in the county

insured under this policy in which you have

a share;

(b) The dates the acreage was planted

within each planting period; and

(c) The row width.

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 direct-seeded

irrigated) is determined by multiplying the

third 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 bell peppers in

the county for which a premium rate is

provided by the Actuarial Table:

(a) In which you have a share;

(b) That are:

(1) Planted to be harvested and sold as

mature fresh market bell peppers;

(2) Planted within the planting periods

designated in the Actuarial Table;

(3) Grown under an irrigated practice;

(4) Grown on acreage covered by plastic

mulch except where the Special Provisions

allow otherwise;

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

of the three previous crop years:

(i) Grew bell peppers for commercial sale;

or

(ii) Participated in managing a bell pepper

farming operation;

(c) That are not:

(1) Interplanted with another crop;

(2) Planted into an established grass or

legume;

(3) Pimento peppers; or

(4) 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
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14791

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 peppers.

(b) In addition to the provisions of section

9 (Insurable Acreage) of the Basic Provisions

(§ 457.8):

(1) You must replant any acreage of

peppers damaged during the planting period

in which initial planting took place

whenever less than 50 percent of the plant

stand remains: and

(i) It is practical to replant;

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

the final day of the planting period has not

passed; and

(iii) The damage occurs within 30 days of

transplanting or 60 days of direct-seeding.

(2) Whenever peppers initially are planted

during the fall or winter planting periods and

the conditions specified in sections 9(b)(1)

(ii) and (iii) are 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.

(3) We will not insure any acreage on

which peppers (except for replanted peppers

in accordance with sections 9(b)(1) and (2)),

tomatoes, eggplants, or tobacco have been

grown and the soil was not fumigated or

otherwise properly treated before planting

peppers.

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 peppers are planted

in each planting period. Coverage ends at the

earliest of:

(a) Total destruction of the peppers on the

unit;

(b) Abandonment of the peppers 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) The calendar date for the end of the

insurance period as follows:

(1) 165 days after the date of direct-seeding

or replanting with seed; and

(2) 150 days after the date of transplanting

or replanting with transplants.

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) Fire;

(3) Freeze;

(4) Hail;

(5) Tornado;

(6) Tropical depression; 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 peppers, 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

50 percent of the plant stand will not

produce peppers 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), that limit 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(d));

(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)) by:

(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 boxes of appraised peppers by the

minimum value per box shown in the Special

Provisions for the planting period:

(i) Potential production on any acreage that

has not been harvested the third time;

(ii) Unharvested mature bell peppers

(unharvested production that is damaged or

defective due to insurable causes and is not

marketable will not be counted as production

to count);

(iii) Production lost due to uninsured

causes; and

(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) 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

box of peppers (this result may not be less

than the minimum value shown in the

Special Provisions for any box of peppers),

and multiplying this result by the number of

boxes of peppers harvested. Harvested

production 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
14792 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

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 either Option I or Option II

of 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 peppers 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) If you selected Option I of the

Minimum Value Option, the total value of

harvested production will be as follows:

(i) For sold production, the dollar amount

obtained by subtracting the allowable cost

contained in the Special Provisions from the

price received for each box of peppers (this

result may not be less than the minimum

value option price contained in the Special

Provisions for any box of peppers), and

multiplying this result by the number of

boxes of peppers sold; and

(ii) For marketable production that is not

sold, the dollar amount obtained by

multiplying the number of boxes of such

peppers 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).

(2) If you selected Option II of the

Minimum Value Option, the total value of

harvested production will be as provided in

section 16(b)(1), except that the dollar

amount specified in section 16(b)(1)(i) may

not be less than zero.

(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.

[FR Doc. 97–7941 Filed 3–27–97; 8:45 am]

BILLING CODE 3410–FA–P

FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R–0968]

Rules Regarding Delegation of

Authority

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board of Governors of the

Federal Reserve System (Board) is

delegating to an individual member the

Board’s authority to approve extensions

of the 180-day period for final Board

action on applications to establish

certain foreign bank offices in the

United States. This delegation of

authority is intended to aid in the

efficient processing of such foreign bank

office applications.

EFFECTIVE DATE: March 22, 1997.

FOR FURTHER INFORMATION CONTACT: Paul

A. Vogel, Senior Attorney (202/452–

3428), Sara M. Craig, Attorney (202/

452–2263), Legal Division, Board of

Governors of the Federal Reserve

System. For the hearing impaired only,

Telecommunications Device for the Deaf

(TDD), contact Dorthea Thompson (202/

452–3544), Board of Governors of the

Federal Reserve System, 20th and C

Streets, NW, Washington, DC 20551.

SUPPLEMENTARY INFORMATION: Section

7(d) of the International Banking Act of

1978 (IBA), as amended by the

Economic Growth and Regulatory

Paperwork Reduction Act of 1996 (Pub.

L. No. 104–208, 110 Stat. 26), permits

the Board to extend the 180-day period

within which the Board must take final

action on an application by a foreign

bank to establish a U.S. branch or

agency or to acquire ownership or

control of a commercial lending

company in the United States. The

Board may extend this period an

additional 180 days after providing

notice of, and the reasons for, the

extension to the applicant foreign bank

and to the State bank supervisor or the

Comptroller of the Currency, as

appropriate (12 U.S.C. 3105(d)(7)(A)).

The Board has delegated to an

individual Board member the authority

to approve such extensions pursuant to

section 7(d) of the IBA. Section 11(k) of

the Federal Reserve Act provides that

the Board is authorized and empowered

to delegate any of its functions, other

than those relating to rulemaking or

pertaining principally to monetary and

credit policies, to one or more

administrative law judges, members or

employees of the Board, or Federal

Reserve banks. 12 U.S.C. 248(k). This

delegation of authority is consistent

with previous Board practices with

respect to extensions of time periods

mandated by Regulation K.

The provisions of the Administrative

Procedure Act (APA)(5 U.S.C. 553)

relating to notice, public participation,

and deferred effective date have not

been followed in connection with the

adoption of this amendment because the

change to be effected is procedural in

nature and does not constitute a

substantive rule subject to the

requirements of that section. The APA

grants a specific exemption from its

requirements relating to notice and

public participation in this instance (12

U.S.C. 553(b)(3)(A)), and good cause

exists to find that the nature of this

amendment makes a notice and public

comment procedure unnecessary.

Regulatory Flexibility Act Analysis

Pursuant to the Regulatory Flexibility

Act (5 U.S.C. 601–612), the Board

hereby certifies that this rule will not

have a significant economic impact on

a substantial number of small entities.

Paperwork Reduction Act of 1995

In accordance with section 3506 of

the Paperwork Reduction Act of 1995

(44 U.S.C. Ch. 35; 5 CFR part 1320

Appendix A.1), the Board reviewed the

rule under the authority delegated to the

Board by the Office of Management and

Budget. No collections of information

pursuant to the Paperwork Reduction

Act are contained in the rule.

List of Subjects in 12 CFR Part 265

Authority delegations (Government

agencies), Banks, banking, Federal

Reserve System.

For the reasons set forth in the

preamble, the Board amends 12 CFR

part 265 as set forth below:

PART 265—RULES REGARDING

DELEGATION OF AUTHORITY

1. The authority citation for Part 265

continues to read as follows:

Authority: 12 U.S.C. 248 (i) and (k).

2. Section 265.4 is amended by

adding paragraph (a)(4) to read as

follows:

§ 265.4 Functions delegated to Board

members.

(a) * * *