[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Notices]
[Pages 19015-19016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9196]



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DEPARTMENT OF AGRICULTURE

Data Collection Guidelines To Be Used in Formulating New Crop 
Insurance Policies

AGENCY: Federal Crop Insurance Corporation, Office of Risk Management, 
Consolidated Farm Service Agency.

ACTION: Notice of issuance of guidelines for data collection to assist 
the Federal Crop Insurance Corporation in researching the feasibility 
of formulating crop insurance policies for new crops.

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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') publishes 
this notice to advise all interested parties of FCIC's guidelines for 
data collection to assist the Corporation in researching the 
feasibility of formulating crop insurance policies for new crops.

EFFECTIVE DATE: April 14, 1995.

ADDRESSES: Research and Evaluation Branch, FCIC, P.O. Box 419293, 
Kansas City, Missouri 64141.

FOR FURTHER INFORMATION CONTACT: Vondie W. O'Conner, Jr., Acting Chief, 
or Floyd Niernberger, Specialty Crop Coordinator, Research and 
Evaluation Branch, FCIC, P.O. Box 419293, Kansas City, Missouri 64141. 
Telephone (816) 926-6343.

SUPPLEMENTARY INFORMATION: The purpose of this notice is to outline the 
data required by FCIC to develop new crop insurance programs. Proposals 
for new insured crops, along with any of the following supporting data, 
can be forwarded to FCIC at the address listed above. The person or 
organization initiating the new crop program request can facilitate the 
request by submitting as much of the supporting data as possible. For 
data not readily available, or for questions or assistance, please 
contact FCIC at the respective Consolidated Farm Service Agency (CFSA) 
office or the FCIC Research and Evaluation Branch at the address listed 
above. Submissions in electronic formats such as ASCII, WordPerfect, or 
Lotus are encouraged but not required.
    This is a summary of the content of the New Crop Program 
Development Handbook (FCIC 23010). A copy of the Handbook is available 
by request from the address listed above. This summary of data 
requirements is organized into five areas and describes the typical 
information evaluated by FCIC.

I. New Crop Program Request Criteria

    A. All new crop program requests should include:
    (1) A petition or similar request, or recommendation by an FCIC 
Regional Service Office requesting coverage of a new crop and 
indicating how a minimum 10% level of participation by growers of the 
crop in the area of the request will be achieved.
    (2) An estimate of the number of acres of the crop grown in the 
area, and the percentage that crop comprises of all crop acres in the 
area.
    (3) An estimate of the value of the crop grown in the area, and the 
percentage that crop value comprises of the total crop value of all 
crops grown in the area.
    (4) An estimate of the average percent contribution to individual 
farm income of the crop for those producers growing the crop in the 
area.
    (5) An estimate of the economic significance of the crop to the 
area for the next five years, and the reasons for any significant 
expected changes.
    B. In addition, priority will be given to requests that meet at 
least one of the following criteria:
    (1) The annual value of the crop produced exceeds $3,000,000 in the 
National Agricultural Statistics Service defined crop reporting 
district for which coverage is requested.
    (2) The annual value of the crop produced exceeds $9,000,000 within 
the state for which coverage is requested.
    (3) The annual value of the crop produced exceeds $15,000,000 in 
all states covered by the affected FCIC Regional Service Office.
    (4) At the national level, the annual value of the crop produced 
exceeds $30,000,000.

II. Risk Profile and Analysis

    These data should provide historical information for the crop.
    A. Perils affecting the crop:
    (1) Natural perils (e.g. fire, drought, hail, etc.);
    (2) Economic perils--such as market perils, changes in consumer 
taste, or marketing orders; and
    (3) Human perils--such as risk associated with failure to follow 
good farming practices, theft, etc.
    B. Loss valuation:
    (1) How is damage to the crop evaluated?
    C. Market requirements and characteristics:
    (1) Where is the crop marketed?
    (2) How is the crop marketed?
    D. Available loss control techniques:
    (1) Production risks--For example, can losses be prevented or 
mitigated by use of irrigation, avoiding varieties susceptible to loss, 
preventative pest and disease control measures; by use of frost 
protection methods, site selection, cultivar selection, cultural 
practices, or pest, weed, and disease control measures; by 
reconditioning or salvage.
    (2) Market risk--Identify forward contracting tools available, or 
futures or options market tools available.
    (3) Problems associated with storage of the crop--Are there 
geographic price differences?

III. Actuarial Sufficiency and Data Availability

    Provide data indicating:
    A. What producer production records are available to identify 
yields;
    B. As much historical yield data as possible;
    C. What production records are available to identify production 
costs;
    D. Farm budgets or other production cost analysis;
    E. Marketing data; and
    F. Extension farm evaluation information.

IV. Agronomic and Horticultural Suitability

    These data include written recommendations and supporting 
documentation from the Extension Service, independent field research 
facilities, or other experts on acceptable plant varieties for the 
area. This documentation should cover the following areas:
    A. Acceptable plant varieties for the area;
    B. Cultural conditions;
    C. Grower and industry association records and recommendations;
    D. Soil Conservation Service land use capabilities and 
recommendations; and [[Page 19016]] 
    E. Other test results or studies.

V. Marketing Dynamics

    Describe where and how the market operates for the proposed crop. 
Specifically, provide the following:
    A. Market characteristics:
    (1) Use--fresh or processed;
    (2) If processed, how;
    (3) Market size;
    (4) Market location; and
    (5) Market age;
    B. Marketing services:
    (1) Pricing--contract or open market;
    (2) Grading;
    (3) Marketing Orders;
    (4) Storage facilities;
    (5) Processing facilities; and
    (6) Fresh market packing facilities.
    B. Market competition:
    (1) Domestic market; and
    (2) International market.

Notice

    Accordingly, pursuant to the authority contained in the Federal 
Crop Insurance Act, as amended (7 U.S.C. 1501, et seq.), the FCIC 
herewith gives notice of the availability of the ``New Crop Program 
Development Handbook'' containing the data collection guidelines for 
use in developing new crop insurance programs.

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

    Done in Washington, D.C. on April 4, 1995.
Suzy Dittrich,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-9196 Filed 4-13-95; 8:45 am]
BILLING CODE 3410-08-P