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

18293

Vol. 61, No. 81

Thursday, April 25, 1996

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563–AB03

Common Crop Insurance Regulations;

Pear Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation.

ACTION: Proposed rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) proposes specific

crop provisions for the insurance of

Pears. The provisions will be used in

conjunction with the Common Crop

Insurance Policy Basic Provisions which

contains 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 and to include the current pear

endorsement with the Common Crop

Insurance Policy for ease of use and

consistency of policy terms.

DATES: Written comments, data, and

opinions on this proposed rule will be

accepted until close of business May 28,

1996 and will be considered when the

rule is to be made final. The comment

period for information collection under

the Paperwork Reduction Act of 1995

continues through June 24, 1996.

ADDRESSES: Interested persons are

invited to submit written comments to

the Chief, Program Development

Branch, Federal Crop Insurance

Corporation (FCIC), Farm Service

Agency (FSA), United States

Department of Agriculture (USDA),

9435 Holmes Road, Kansas City, MO

64131. Written comments will be

available for public inspection and

copying in room 0324, South Building,

USDA, 14th and Independence Avenue

SW., Washington, D.C., 8:15 a.m.–4:45

p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Program Analyst,

Research and Development Division,

Product Development Branch, FCIC,

FSA, USDA, 9435 Holmes Road, Kansas

City, MO 64131, telephone (816) 926–

7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and

Departmental Regulation 1512–1

This action has been reviewed under

United States Department of Agriculture

(USDA) procedures established by

Executive Order 12866 and

Departmental Regulation 1512–1. This

action constitutes a review as to the

need, currency, clarity, and

effectiveness of these regulations under

those procedures. The sunset review

date established for these regulations is

February 1, 2001.

This rule has been determined to be

exempt for the purposes of Executive

Order 12866 and therefore has not been

reviewed by the Office of Management

and Budget (OMB).

Paperwork Reduction Act of 1995

The information collection

requirements contained in these

regulations were previously approved

by OMB pursuant to the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35) under OMB control number

0563–0003 through September 30, 1998.

The amendments set forth in this

proposed rule do not contain additional

information collections that require

clearance by the Office of Management

and Budget 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;

Pear Crop Insurance Provisions.’’ The

information to be collected includes: a

crop insurance acreage report, an

insurance application and a continuous

contract. Information collected from the

acreage report and application is

electronically submitted to FCIC by the

reinsured companies. Potential

respondents to this information

collection are growers of pears that are

eligible for Federal crop insurance.

The information requested is

necessary for the insurance company

and FCIC to provide insurance, provide

reinsurance, determine eligibility,

determine and collect premiums or

other monetary amounts, and pay

benefits.

All information is reported annually.

The reporting burden for this collection

of information is estimated to average

16.9 minutes per response for each of

the 3.6 responses from approximately

1,755,015 respondents. The total annual

burden on the public for this

information collection is 2,676,932

hours.

The comment period for information

collections under the Paperwork

Reduction Act of 1995 continues

through June 24, 1996, for 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 technology.

Comments should be submitted to the

Desk Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget

(OMB), Washington, D.C. 20503 and to

Bonnie Hart, Advisory and Corporate

Operations Staff, Regulatory Review

Group, Farm Service Agency, P.O. Box

2415, Ag Box 0572, U.S. Department of

Agriculture, Washington, D.C. 20013–

2415, telephone (202) 690–2857. Copies

of the information collection may be

obtained from Bonnie Hart at the above

address.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandate

Reform Act of 1995 (UMRA), Pub. L.

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. Under section 202 of the UMRA,

FCIC generally must prepare a written

statement, including a cost-benefit

analysis, for proposed and final rules

with ‘‘Federal mandates’’ that may

result in expenditures to State, local, or

tribal governments, in the aggregate, or

to the private sector, of $100 million or

more in any 1 year. When such a

statement is needed for a rule, section

205 of the UMRA generally requires

FCIC to identify and consider a

reasonable number of regulatory
18294 Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules

alternatives and adopt the least costly,

more cost-effective or least burdensome

alternative that achieves the objectives

of the rule.

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. 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. If the insured

elects to use actual records of acreage

and production as the basis for the

production guarantee, the insured may

elect to report this information on a

yearly basis. This regulation does not

alter those requirements. Therefore, the

amount of work required of the

insurance companies and FSA offices

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 insured. 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 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 12778

The Office of the General Counsel has

determined that these regulations meet

the applicable standards provided in

subsections 2(a) and 2(b)(2) of Executive

Order 12778. The provisions of this rule

will not have a retroactive effect prior to

the effective date. The provisions of this

rule will preempt State and local laws

to the extent such State and local laws

are inconsistent herewith. The

administrative appeal provisions of the

National Appeals Division published in

7 CFR part 11 must be exhausted before

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 part 457.111,

Pear Crop Insurance Provisions. The

provisions will be effective for the 1997

and succeeding crop years. The

proposed Pear Crop Insurance

provisions will replace the provisions

found at 7 CFR part 401.140 (Pear

Endorsement). Upon publication of 7

CFR part 457.111 as a final rule, the

provisions for insuring pears contained

herein will supersede the current

provisions contained in 7 CFR part

401.140. By separate rule, FCIC will

revise 7 CFR part 401.140 to limit its

effect to the 1996 crop year and later

remove that section.

This rule makes minor editorial and

format changes to improve the Pear

Crop Insurance Endorsement’s

compatibility with the Common Crop

Insurance Policy. In addition, FCIC is

proposing substantive changes in the

provisions for insuring pears as follows:

1. The Pacific Northwest grows

several varieties of pears in addition to

Green Bartletts; however, other areas

primarily grow Green Bartletts.

Therefore, varietal groups will be

identified in the Special Provisions and

all references to type I and type II have

been deleted.

2. Section 1—Add definitions for

‘‘culls,’’ ‘‘days,’’ ‘‘direct marketing,’’

‘‘good farming practices,’’

‘‘interplanted,’’ ‘‘irrigated practice,’’

‘‘marketable,’’ ‘‘production guarantee

(per acre),’’ ‘‘varietal group,’’ and

‘‘written agreement’’ for clarification

purposes.

3. Section 2—Specify that optional

units may be established by section,

section equivalent, or FSA Farm Serial

Number; or by acreage located on noncontiguous land, but not by both. This

policy is consistent with some other

perennial crop provisions. Optional

units also may be established by varietal

group when authorized by the Special

Provisions. The provision in section 7 of

the Pear Endorsement that prevented

interplanted acreage of type I and type

II from being divided into separate units

has been deleted because two or more

varieties which are interplanted may

now be separate units. Production

records from each variety are kept

separate and many varieties do not

mature at the same time. It is not

realistic or necessary to allow units by

blocks of different varieties but not

allow units when different varieties are

interplanted within a block.

4. Section 3(a)—Clarify that an

insured may select only one price

election for all the pears in the county

insured under this policy, unless the

Special Provisions provide different

price elections by varietal group in

which case the insured may select one

price election for each varietal group

designated in the Special Provisions.

Each price election chosen for each

varietal group must have the same

percentage relationship to the maximum

price offered by the insurer.

5. Section 3(b)—Add provisions for

reporting the age and type, if applicable,

of any interplanted perennial crop, its

planting pattern, and any other

information needed to establish the

yield upon which the production

guarantee is based. If the insured fails to

notify the insurer of factors that may

reduce yields from previous levels, the

insurer will reduce the production

guarantee at any time the insurer

becomes aware of damage, removal of

trees, or changes in practices.

Interplanting is not allowed under the

current Pear Endorsement.

6. Section 4—Change the contract

change date in California from August

31 to October 31 to be consistent with

other perennial crops in California.

7. Section 5—Change the cancellation

and termination dates in California from

November 20 to January 31 to be

consistent with other perennial crops in

California.

8. Section 6—Specify that to be

insurable, the pears must be grown on

trees that have produced an average of

at least 5 tons per acre, in at least 1 of
Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules 18295

the 4 previous crop years unless the

Special Provisions or a written

agreement set a lower threshold.

Previous provisions required that the

type must produce an average of 4 tons

of pears per acre of first grade canning

or U.S. Number 1 in at least 1 of the 4

previous crop years to be insurable. The

change to 5 tons per acre is being

proposed as more characteristic of an

orchard reaching a level of production

which should continue on an up trend.

Four tons per acre is not an adequate

indicator that the orchard has passed

problems typical of a new orchard. The

‘‘of first grade canning or U.S. Number

1’’ requirement will be eliminated

because it does not include U.S. No. 2

grade pears that are included in the

production to count. The provision that

required acceptable production records

for insurance to attach also will be

eliminated because if the insured does

not provide acceptable records of

production the guarantee may be based

on a transitional yield in accordance

with Actual Production History

regulations published at 7 CFR part 400,

subpart G.

9. Section 7—Add a provision to

make interplanted pears insurable if

planted with another perennial crop

unless the insurance provider inspects

the acreage and determines it does not

qualify to be accepted for insurance

coverage. This provision was added to

provide insurance coverage to the

maximum extent to all pear producers,

and to reduce the number of acres that

would require coverage under the Noninsured Assistance Program (NAP).

10. Section 8—Modify the insurance

period in California so coverage will

begin the later of the date the

application is accepted or February 1,

instead of November 21, since the

cancellation and termination dates were

changed to January 31 and the contract

change date was changed to October 31.

Provisions also were added for insuring

acreage when an insurable share is

acquired or relinquished on or before

the acreage reporting date. Under the

current Pear Endorsement for acreage

acquired (for which an application is in

place) on or before the acreage reporting

date, coverage would attach at the time

the insurer considers the crop

inspection as being acceptable provided

it was on or after November 21. In the

same situation under these new

provisions (in all States except

California), coverage will have started

on November 21 even if the insurer

considers the inspection as being

acceptable on January 14. Under the

current Pear Endorsement for acreage

relinquished on or before the acreage

reporting date but after coverage had

attached, the premium would still be

due from the insured even if the insured

no longer had an insurable interest. In

the same situation under these new

provisions, insurance will not be

considered to have attached so the

premium will not be due unless a

transfer of right to an indemnity was

completed.

11. Section 9(a)—Add adverse

weather conditions as a cause of loss

and delete drought, excess wind, freeze,

frost, fruit-set failure and hail because

they are included by the term adverse

weather. Also add a clause to the

insurable cause of loss ‘‘failure of the

irrigation water supply’’ to limit it to a

cause of loss covered by this policy.

12. Section 9(b)—Add disease and

insect infestation to the excluded causes

of loss unless adverse weather prevents

the proper application of control

measures, causes control measures to be

ineffective when properly applied, or no

effective control mechanism is available

for such disease or insect infestation.

These exclusions need to be added for

clarification so that insurance coverage

is not provided for causes of loss that

could be prevented.

13. Section 10—Require the producer

to give notice within 3 days of the date

harvest should have started if the crop

will not be harvested. It also requires

the producer to give notice at least 15

days prior to harvest so a preharvest

inspection can be made if the insured

intends to sell fruit directly to retail

customers in any manner. This

appraisal may be used to determine the

amount of production to count in a loss

situation.

14. Section 11—Add a provision

explaining when potential production

on abandoned acreage will be included

in total production to count. If the

insured and the insurer agree on

potential production on acreage the

insured wishes to abandon or no longer

care for, the insurance period for that

acreage will end. If agreement is not

reached, the claim may be deferred if

the insured agrees to continue to care

for the crop. The insurance provider

will make another appraisal when the

insured notifies them of further damage

or that harvest is generally occurring in

the area unless the crop is harvested in

which case the harvested production

will be used to determine the

production to count. If the insured does

not continue to care for the crop, the

appraisal made prior to deferring the

claim will be used to determine the

production to count. Also for purposes

of settling a claim in all States except

California, the production to count is all

the harvested and appraised marketable

production. There is no adjustment for

quality unless the ‘‘Quality Adjustment

Endorsement’’ is elected. For California,

references to the California Tree Fruit

Agreement Standards, which is

obsolete, have been changed to the

California Pear Advisory Board.

15. Section 12—Add provisions for

providing insurance coverage by written

agreement. FCIC has a long-standing

policy of permitting modification of

insurance contracts by written

agreement. This provision is not

documented in the current Pear

Endorsement. Section 12 will discuss

application for, and duration of, written

agreements.

16. Section 13—Provide for a quality

adjustment endorsement for all States,

except California, if the insured meets

the following: has limited or additional

coverage, pays the additional premium,

the pears are damaged by volcano

eruption, frost, freeze, wind or hail, and

the endorsement is timely elected. The

current pear provisions, without a

quality adjustment endorsement, are

appropriate in California because the

primary marketing intent for pears

grown in California is for fresh pack and

then to market the pears that do not

make U.S. No. 1 as processing or as

juice. Also the California pear growers

generally have records available for the

most recent crop year in the base period.

In the Pacific Northwest records for the

most recent crop year in the base period

are not available as winter pears go into

controlled atmospheric storage and may

not sell or be graded until well into the

next calendar year. Also, the Pacific

Northwest has widespread fire blight

problems, and the quality adjustment

endorsement will allow a more

reflective yield of the orchards.

List of Subjects in 7 CFR Part 457

Crop insurance, Pears.

Proposed Rule

Pursuant to the authority contained in

the Federal Crop Insurance Act, as

amended (7 U.S.C. 1501 et seq.), the

Federal Crop Insurance Corporation

hereby proposes to amend the Common

Crop Insurance Regulations (7 CFR 457),

effective for the 1997 and succeeding

crop years, as follows:

PART 457—[AMENDED]

1. The authority citation for 7 CFR

457 continues to read as follows:

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

2. 7 CFR 457 is amended by adding

a new § 457.111 to read as follows:
18296 Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules

§ 457.111 Pear Crop Insurance Provisions.

The Pear Crop Insurance Provisions

for the 1997 and succeeding crop years

are as follows:

United States Department of

Agriculture

Federal Crop Insurance Corporation

Pear 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

Culls—Pears that do not meet the

requirements of U.S. No. 2 grade or

better.

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 or a farmer’s

market, and permitting the general

public to enter the field(s) for the

purpose of picking all or a portion of the

crop.

FSA—Farm Service Agency of the

United States Department of

Agriculture.

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

generally recognized by the Cooperative

Extension Service as compatible with

agronomic and weather conditions in

the county.

Harvest—The picking of mature pears

from the trees or the collecting of

marketable pears from the ground.

Interplanted—Acreage on which two

or more crops are planted in any form

of alternating or mixed pattern.

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.

Marketable—Pear production

acceptable for processing or other

human consumptive use even if it does

not meet any U.S. or applicable state

grading standard.

Non-contiguous land—Any land

owned by you or rented by you for any

consideration other than a share in the

insured crop, whose boundaries do not

touch at any point. Land that is

separated only by a public or private

right-of-way, waterway or irrigation

canal will be considered to be touching.

Production guarantee (per acre)—The

quantity of pears (in tons) determined

by multiplying the approved yield per

acre by the coverage level percentage

you elect, and multiplying the result by

any applicable adjustment factor

provided for in section 6(b)(f) of the

Basic Provisions (§ 457.8).

Ton—Two thousand (2,000) pounds

avoirdupois.

Varietal Group—Types of pears with

similar characteristics that are grouped

for insurance purposes as specified in

the Special Provisions.

Written agreement—A written

document that alters designated terms of

a policy.

2. Unit Division

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. Basic units may not be

divided into optional units on any basis

including, but not limited to,

production practice, type, and variety,

other than as described in this section.

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, that

portion of the premium paid for the

purpose of electing optional units will

be refunded to you pro rata for the units

combined. All optional units must be

identified on the acreage report for each

crop year.

(a) The following requirements must

be met for each optional unit:

(1) You must have records, which can

be independently verified, of acreage

and production for each optional unit

for at least the last crop year used to

determine your production guarantee;

and

(2) 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.

(b) Each optional unit must meet one

or more of the following criteria as

applicable:

(1) Optional Units by Section, Section

Equivalent, or Farm Service Agency

(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 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; or

(2) Optional Units on Acreage Located

on Non-Contiguous Land: Instead of

establishing optional units by section,

section equivalent or FSA Farm Serial

Number, optional units may be

established if each optional unit is

located on non-contiguous land.

(3) Optional Units on Acreage by

Varietal Group: In addition to, or

instead of, establishing optional units by

section, section equivalent, FSA Farm

Serial Number, or on non-contiguous

land, optional units may be established

by varietal Group when provided for in

the Special Provisions.

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):

(a) You may select only one price

election for all the pears in the county

insured under this policy unless the

Special Provisions provide different

price elections by varietal group, in

which case you may select one price

election for each varietal group

designated in the Special Provisions.

The price election you choose for each

varietal group must have the same

percentage relationship to the maximum

price offered by us for each varietal

group. For example, if you choose one

hundred percent (100%) of the

maximum price election for a specific

varietal group, you must also choose

one hundred percent (100%) of the
Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules 18297

maximum price election for all other

varietal groups.

(b) You must report, by the

production reporting date designated in

section 3 (Insurance Guarantees,

Coverage Levels, and Prices for

Determining Indemnities) of the Basic

Provisions (§ 457.8), by varietal group:

(1) Any damage, removal of trees, or

change in practices that may reduce

yields from previous levels, and the

number of affected acres;

(2) The number of trees on insurable

and uninsurable acreage;

(3) The age of the trees and the

planting pattern; and

(4) For the first year of insurance for

acreage interplanted with another

perennial crop and anytime the planting

pattern of such acreage is changed:

(i) The age of the interplanted crop,

and type if applicable;

(ii) The planting pattern; and

(iii) Any other information that we

request in order to establish your

approved yield.

We will reduce the yield used to

establish your production guarantee as

necessary, based on the effect of the

interplanted perennial crop, removal of

trees, damage, or change in practices on

the yield potential of the insured crop.

If you fail to notify us of factors that

may reduce yields from previous levels,

we will reduce your production

guarantee as necessary at any time we

become aware of the interplanted crop,

removal of trees, damage, or change in

practices.

4. Contract Changes

The contract change date is October

31 preceding the cancellation date for

states with a January 31 cancellation

date and August 31 preceding the

cancellation date for all other states (see

the provisions of section 4 (Contract

Changes) of the Basic Provisions

(§ 457.8)).

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:

States Cancellation and termination dates

California ................... January 31.

All other states .......... November 20.

6. Insured Crop

In accordance with section 8 (Insured

Crop) of the Basic Provisions (§ 457.8),

the crop insured will be all the pears in

the county for which a premium rate is

provided by the actuarial table:

(a) In which you have a share;

(b) That are of varieties adapted to the

area;

(c) That are grown on trees that have

produced an average of at least five (5)

tons of pears per acre in at least one of

the four previous crop years unless the

Special Provisions or a written

agreement authorizes lesser production;

and

(d) That are grown in an orchard that,

if inspected, is considered acceptable by

us.

7. Insurable Acreage

In lieu of the provisions in section 9

(Insurable Acreage) of the Basic

Provisions (§ 457.8), that prohibit

insurance attaching to a crop planted

with another crop, pears interplanted

with another perennial crop are

insurable unless we inspect the acreage

and determine it does not meet

insurability requirements.

8. Insurance Period

(a) In accordance with the provisions

of section 11 (Insurance Period) of the

Basic Provisions (§ 457.8):

(1) Coverage begins for each crop year

on the later of the date we accept your

application or:

(i) In California, on February 1; or

(ii) In all other states, on November

21.

(2) The calendar date for the end of

the insurance period for each crop year

is:

(i) September 15 for Bartlett (green

and red) and Star Crimson (Crimson

Red) varietal groups; or

(ii) October 15 for all other varietal

groups.

(b) In addition to the provisions of

section 11 (Insurance Period) of the

Basic Provisions (§ 457.8):

(1) If you acquire an insurable share

in any insurable acreage on or before the

acreage reporting date of any crop year

and if we inspect, and consider the

acreage acceptable, insurance will be

considered to have attached to such

acreage on the calendar date for the

beginning of the insurance period.

(2) If you relinquish your insurable

interest on any acreage of pears on or

before the acreage reporting date of any

crop year insurance will not be

considered to have attached to such

acreage for that crop year unless:

(i) A transfer of right to an indemnity

or a similar form approved by us is

completed by all affected parties; and

(ii) The insurance provider is notified

by you or the transferee in writing of

such transfer on or before the acreage

reporting date.

9. 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 within the

insurance period:

(1) Adverse weather conditions;

(2) Fire, unless weeds and other forms

of undergrowth have not been

controlled or pruning debris has not

been removed from the orchard;

(3) Earthquake;

(4) Volcanic eruption; or

(5) Failure of the irrigation water

supply, if caused by an insured peril

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 damage or loss of

production due to:

(1) Disease or insect infestation,

unless adverse weather:

(i) Prevents the proper application of

control measures or causes properly

applied control measures to be

ineffective; or

(ii) Causes disease or insect

infestation for which no effective

control mechanism is available.

(2) Failure of the fruit to color

properly; or

(3) Inability to market the pears for

any reason other than actual physical

damage from an insurable cause

specified in this section. For example,

we will not pay you an indemnity if you

are unable to market due to quarantine,

boycott, or refusal of any person to

accept production.

10. Duties in the Event of Damage or

Loss

In addition to the requirements of

section 14 (Duties in the Event of

Damage or Loss) of the Basic Provisions

(§ 457.8), the following will apply:

(a) You must notify us within 3 days

of the date harvest should have started

if the crop will not be harvested.

(b) You must notify us at least 15 days

before harvest begins if any production

from any unit will be marketed directly

to consumers. We will conduct a

preharvest appraisal that will be used to

determine your production. If damage

occurs after the preharvest appraisal,

and you can provide acceptable records

to us that account for all production

removed from the unit after our

appraisal, we will conduct an additional

appraisal that will be used to determine

your production. Failure to give timely

notice that production will be marketed

directly to consumers will result in an

appraised amount of production to

count of not less than the production

guarantee per acre.

(c) If you intend to claim an

indemnity on any unit, you must notify

us prior to the beginning of harvest so
18298 Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules

that we may inspect the damaged

production. You must not sell or

dispose of the damaged crop until after

we have given you written consent to do

so. If you fail to meet the requirements

of this subsection, all such production

will be considered undamaged and

included as production to count.

11. Settlement of Claim

(a) We will determine your loss on a

unit basis. In the event you are unable

to provide production records:

(1) For any optional unit, we will

combine all optional units for which

acceptable records of production 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;

(2) Multiplying each product by the

respective price election;

(3) Summing all such products;

(4) Multiplying the total production to

be counted of each varietal group (see

subsection 11(c)) by the respective price

election;

(5) Summing all such products;

(6) Subtracting this total from the total

in (3); and

(7) Multiplying the result by your

share.

(c) The total production to count (in

tons) from all insurable acreage on the

unit will include:

(1) All appraised production as

follows:

(i) Not less than the production

guarantee per acre for acreage:

(A) That is abandoned;

(B) Damaged solely by uninsured

causes; or

(C) For which you fail to provide

production records that are acceptable

to us;

(ii) Production lost due to uninsured

causes;

(iii) Unharvested production; and

(iv) Potential production on acreage

that you intend to abandon or no longer

care for, if you and we agree on the

appraised amount of production. Upon

such agreement, the insurance period

for that acreage will end. If you do not

agree with our appraisal, we may defer

the claim only if you agree to continue

to care for the crop. We will then make

another appraisal when you notify us of

further damage or that harvest is

generally occurring in the area unless

you harvested the crop, in which case

we will use the harvested production. If

you do not continue to care for the crop,

our appraisal made prior to deferring

the claim will be used to determine the

production to count; and

(2) For all states except California, all

harvested and appraised marketable

pear production from the insurable

acreage.

(3) For California, all harvested and

appraised production that:

(i) Meets the standards for first grade

canning as defined by the California

Pear Advisory Board or for U.S. Number

1 as defined by the United States

Standards for Grades of Summer and

Fall Pears, or Pears for Processing, or for

U.S. Extra Number 1 or U.S. Number 1

as defined by the United States

Standards for Grades of Winter Pears; or

(ii) Is accepted by a processor for

canning or packing; or

(iii) Is marketable for any purpose.

(4) For California, notwithstanding

the terms of 11(c)(3), if the cause of loss

was due to an insurable cause, the

quantity of production that otherwise

would be considered as production to

count will be reduced by whichever of

the following methods results in the

least production to count:

(i) By the excess over ten percent

(10%) of the total production from the

unit of varieties other than Forelle,

Seckel or Winter Nelis that is size 180

or smaller as defined in the United

States Standards for Summer and Fall

Pears or for Winter Pears; or

(ii) By dividing the value per ton by

the highest price election available for

the insured varietal group that does not

meet the specifications of section

11(c)(3)(i), subtracting this result from

1.000, multiplying this difference by the

number of tons of such pears and

subtracting this result from the

production to count.

12. Written Agreements

Designated terms of this policy may

be altered by written agreement. The

following conditions will apply:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in

subsection (e) of this section.

(b) The application for written

agreement must contain all 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 1 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.

(e) An application for 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 provisions.

13. Pear Quality Adjustment

Endorsement

(a) The provisions of this

endorsement apply if:

(1) You elect the Pear Quality

Adjustment Endorsement 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 your pears under this

endorsement. By doing so, you agree to

pay the additional premium designated

in the actuarial table for this optional

coverage; and

(2) This endorsement is not excluded

by your policy.

(b) This endorsement is available in

all counties for which the actuarial table

designates pear premium rates, except

for counties in California. This

endorsement does not cover acreage

insured under the Catastrophic Risk

Production Endorsement in any

counties.

(c) Pears damaged by volcano

eruption; frost; freeze; wind; or hail are

eligible for quality adjustment, subject

to the following:

(1) If the harvested and appraised

production does not grade eighty

percent (80%) U. S. No. 2 or better in

accordance with applicable United

States Standards for Grades of Summer

and Fall Pears, United States Standards

for Grades of Winter Pears, or United

States Standards for Grades of Pears for

Processing, as applicable, production

will be reduced as follows:

(i) By two percent (2%) for each full

one percent (1%) in excess of twenty

percent (20%), when twenty-one

percent (21%) through sixty percent

(60%) of the pears fail the grade

standard; and

(ii) By one hundred percent (100%)

when more than sixty percent (60%) of

the pears fail the grade standard. The

difference between the reduced

production and the total production will

be considered cull production.

(2) Pears that are knocked to the

ground by wind or frozen and cannot be

packed or marketed as fresh pears will

be considered one hundred percent

(100%) cull production.

(3) Fifteen percent (15%) of all

production that is considered cull

production will be production to count.
Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules 18299

(4) No reduction in grade will be

recognized for any pears that fail the

grade standard due to uninsurable

causes of loss.

(d) This endorsement 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 endorsement is to be

effective.

Signed in Washington, D.C., on April 18,

1996.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 96–10145 Filed 4–24–96; 8:45 am]

BILLING CODE 3410–FA–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–CE–09–AD]

RIN 2120–AA64

Airworthiness Directives; The New

Piper Aircraft, Inc. PA24, PA28R, PA30,

PA32R, PA34, and PA39 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes to

supersede AD 95–20–07, which

currently requires repetitively

inspecting the main gear side brace

studs for cracks on certain The New

Piper Aircraft, Inc. (Piper) PA24,

PA28R, PA30, PA32R, PA34, and PA39

series airplanes, and replacing any

cracked main gear side brace stud. The

proposed action would retain the

repetitive inspection and possible

replacement requirements of AD 95–20–

07, would remove airplanes with a

certain main gear side brace assembly

configuration from the ‘‘Applicability’’

section of the current AD, and would

incorporate additional modification and

replacement options. Additional

information on the design and service

history of the affected airplanes

concerning this subject received by the

Federal Aviation Administration (FAA)

after issuance of AD 95–20–07

prompted the proposed action. The

actions specified by the proposed AD

are intended to prevent a main landing

gear collapse caused by main gear side

brace stud cracks, which, if not detected

and corrected, could result in loss of

control of the airplane during landing

operations.

DATES: Comments must be received on

or before June 25, 1996.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Central Region,

Office of the Assistant Chief Counsel,

Attention: Rules Docket No. 96–CE–09–

AD, Room 1558, 601 E. 12th Street,

Kansas City, Missouri 64106. Comments

may be inspected at this location

between 8 a.m. and 4 p.m., Monday

through Friday, holidays excepted.

Information that applies to the

proposed AD may be examined at the

Rules Docket at the address above.

FOR FURTHER INFORMATION CONTACT:

Christina Marsh, Aerospace Engineer,

FAA, Atlanta Aircraft Certification

Office, Campus Building, 1701

Columbia Avenue, suite 2–160, College

Park, Georgia 30337–2748; telephone

(404) 305–7362; facsimile (404) 305–

7348.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications

should identify the Rules Docket

number and be submitted in triplicate to

the address specified above. All

communications received on or before

the closing date for comments, specified

above, will be considered before taking

action on the proposed rule. The

proposals contained in this notice may

be changed in light of the comments

received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report that

summarizes each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket No. 96–CE–09–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, Central Region, Office of the

Assistant Chief Counsel, Attention:

Rules Docket No. 96–CE–09–AD, Room

1558, 601 E. 12th Street, Kansas City,

Missouri 64106.

Discussion

AD 95–20–07, Amendment 39–9386

(60 FR 52073, October 5, 1995),

currently requires repetitively

inspecting (using liquid penetrant or

magnetic particle methods) the main

gear side brace studs for cracks on

certain Piper PA24, PA28R, PA30,

PA32R, PA34, and PA39 series

airplanes, and replacing any cracked

main gear side brace stud. A minor

correction on this action that specified

who could accomplish the inspection

was published in the Federal Register

on November 15, 1995 (60 FR 57333).

The FAA has re-examined all

available information related to AD 95–

20–07, including additional information

received from The New Piper Aircraft,

Inc., and owners/operators of the

affected airplanes. From this

examination, the FAA has determined

the following:

—That a third main gear side brace

assembly containing the 5⁄8-inch stud,

part number (P/N) 78717–02, with a

two-piece bushing, P/N 67026–09,

was installed (at manufacture) on

Piper Model PA34–200T, serial

numbers 34–7670325 through 34–

7770372. AD 95–20–07 should not

apply to these airplanes with this

main gear side brace assembly

configuration; and

—That Piper PA28R, PA32R, and PA34

series airplane owners/operators

should have the option of

incorporating a modification that

would eliminate the repetitive

inspection requirement of AD 95–20–

07. This modification consists of

reaming the existing two-piece

bushings, P/N 67026–6, to an inside

diameter of .624–inch to .625–inch,

rechamfering the bushings, and

installing the 5⁄8-inch stud, P/N

78717–02. The owner/operator would

have the choice of incorporating this

modification, installing a P/N 95643–

06/–07/–08/–09 main gear side brace

bracket assembly, or continuing to

reinspect the main gear side brace

assembly.

Based upon the information described

above, the FAA has determined that AD

action should be taken to prevent a

main landing gear collapse caused by

main gear side brace stud cracks, which,

if not detected and corrected, could

result in loss of control of the airplane

during landing operations.

Since an unsafe condition has been

identified that is likely to exist or