Source: https://www.federalregister.gov/documents/2006/11/16/E6-19320/common-crop-insurance-regulations-mustard-crop-insurance-provisions
Timestamp: 2018-04-24 13:07:01
Document Index: 588425415

Matched Legal Cases: ['art 457', '§\u2009457', 'art 11', 'art 400', 'art 457', '§\u2009457', 'art 400']

Federal Register :: Common Crop Insurance Regulations; Mustard Crop Insurance Provisions
Common Crop Insurance Regulations; Mustard Crop Insurance Provisions
66698-66702 (5 pages)
https://www.federalregister.gov/d/E6-19320 https://www.federalregister.gov/d/E6-19320
The Federal Crop Insurance Corporation (FCIC) proposes to add to 7 CFR part 457 a new § 457.168 that provides insurance for mustard. 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 convert the mustard pilot crop insurance program to a permanent insurance program effective for the 2008 and succeeding crop years.
Interested persons are invited to submit written comments, titled “Mustard Crop Provisions”, by any of the following methods:
A copy of each response will be available for public inspection and copying from 7:00 a.m. to 4:30 p.m., c.s.t., Monday through Friday, except holidays, at the above address.
John McDonald, Risk Management Specialist, Deputy Administrator for Product Start Printed Page 66699Management, Product Administration and Standards Division, Risk Management Agency, at the Kansas City, MO, address listed above, telephone (816) 926-7730.
Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the collections of information in this proposed rule have been approved by OMB under control number 0563-0057 through June 30, 2006.
FCIC is committed to complying with the E-Government Act to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other puposes.
FCIC certifies this regulation will not have a significant economical impact on a substantial number of small entities. Program requirements for the Federal crop insurance program are the same for all producers regardless of the size of their farming operation. For instance, all producers are required to submit an application and acreage report to establish their insurance guarantees and compute premium amounts, and all producers are required to submit a notice of loss and production information to determine an indemnity payment in the event of an insured cause of crop loss. Whether a producer has 10 acres or 1000 acres, there is no difference in the kind of information collected. To ensure crop insurance is available to small entities, the Federal Crop Insurance Act authorizes FCIC to waive collection of administrative fees from limited resource farmers. FCIC believes this waiver helps to ensure small entities are given the same opportunities as large entities to manage their risks through the use of crop insurance. A Regulatory Flexibility Analysis has not been prepared since this regulation does not have an impact on small entities and therefore, this regulation is exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605).
This proposed rule has been reviewed in accordance with Executive Order No. 12988 on civil justice reform. The provisions of this rule will not have a retroactive effect. The provisions of this rule will preempt State and local laws to the extent such State and local laws are inconsistent herewith. With respect to any action taken by FCIC or to require the insurance provider to take specific action under the terms of the crop insurance policy, the administrative appeal provisions published at 7 CFR part 11 or 7 CFR part 400, subpart J, for the informal administrative review process of good farming practices, must be exhausted before any action against FCIC for judicial review may be brought.
FCIC offered the pilot crop insurance program for mustard beginning with the 1999 crop year in selected counties in the state of North Dakota. For the 2005 crop year, the mustard program was expanded to selected counties in the states of Montana, Idaho, Oregon and Washington. For the 2005 crop year, 2,149 policies were sold with 29,674 acres insured under the pilot mustard program.
FCIC intends to convert the mustard pilot crop insurance program to a permanent crop insurance program beginning with the 2008 crop year. To effectuate this, FCIC proposes to amend the Common Crop Insurance regulations (7 CFR part 457) by adding a new section § 457.168, Mustard Crop Insurance Provisions. These provisions will replace and supersede the current unpublished pilot mustard crop provisions.
2. Section 457.168 is added to read as follows:
The Mustard Crop Insurance Provisions for the 2008 and succeeding crop years are as follows:
Both FCIC and reinsured policies: Mustard Crop Insurance Provisions
Harvest. Combining or threshing for seed. A crop that is swathed prior to combining is not considered harvested. Start Printed Page 66700
Mustard. A crop of the family Cruciferae, genus and species Sinapis alba (also called Brassica hirta or Brassica alba) or Brassica juncea.
Salvage price. The cash price per pound (U.S. dollars) for mustard that qualifies for quality adjustment in accordance with section 13 of these Crop Provisions.
In addition to the requirements of section 34 of the Basic Provisions, optional units may also be established by type, if designated on the Special Provisions.
(a) In addition to the requirements of section 3 of the Basic Provisions, you may select only one price election percentage for all the mustard in the county insured under this policy unless the Special Provisions allow different price elections by type.
(b) If price elections are allowed by type, you can select one price election for each type designated in the Special Provisions. The price elections you choose must have the same percentage relationship to the base contract price (maximum price) offered for each type. For example, if you choose 100 percent of the maximum price for a specific type, you must also choose 100 percent of the maximum price for all other types.
(c) If there are multiple base contract prices within the same unit, each will be considered a separate price election which will be multiplied by the number of acres under applicable processor contract (For processor contracts that stipulates the amount of production to be delivered, the number of acres is determined by dividing the amount of production to be delivered by the approved yield). These amounts will be totaled to determine the premium, liability, and indemnity for the unit.
(c) The maximum insurable acreage will be determined by the acreage amount stated in the processor contract(s), if applicable.
(h) Failure of the irrigation water supply, if applicable, caused by a cause Start Printed Page 66701of loss specified in section 10(a) through (g) that occurs during the insurance period.
(b) The maximum amount of the replanting payment per acre will be the lesser of 20 percent of the production guarantee (per acre) or 175 pounds, multiplied by the price election applicable to the acreage to be replanted, multiplied by your insured share.
(ii) For any basic units, we will allocate any commingled production to such units in proportion to our liability on the harvested acreage for the units. For any processor contract that stipulates the amount of production to be delivered, and not withstanding the provisions of this section or any unit division provisions contained in the Basic Provisions or these Crop Provisions:
(2) No indemnity will be paid for any loss of production on any unit if you produce sufficient production to fulfill the processor contracts forming the basis for the guarantee;
(i) Production in excess of the guarantee from a unit will be included as production to count for the purposes of section 13(b)(4) for any unit where the amount of production to count is less than the guarantee for such unit until the production to count equals the guarantee for the unit; and
(ii) Once all production in excess of the guarantee for a unit is allocated to units where the amount of production to count is less than the guarantee for such unit, an indemnity will be determined for those units where the adjusted production to count remains is less than the guarantee in accordance with section 13(b).
(1) Multiplying the insured acreage of each mustard type, if applicable, by its respective production guarantee (per acre);
(2) Multiplying each result in section 13(b)(1) by the respective price election for each type, if applicable;
(4) Multiplying the production to be counted for each type, if applicable (see section 13(c)), by its respective price election (If you have multiple processor contracts with varying base contract prices within the same unit, we will value your production to count by using your highest price election first and will continue in decreasing order to your lowest price election based on the amount of production insured at each price election);
Example # 1 (with one price election for the unit):
You have 100 percent share in 20 acres of mustard in a unit with a 650 pound production guarantee (per acre) and a price election of $0.15 per pound. Due to insurable causes, you are only able to harvest 10,000 pounds and there is no appraised production.
(1) 20 acres × 650 pounds = 13,000 pounds guarantee;
(2) 13,000 pounds × $0.15 price election = $1,950 value of guarantee;
(4) 10,000 pounds × $0.15 price election = $1,500 value of production to count;
(6) $1,950 − $1,500 = $450 loss; and
Example # 2 (with two price elections for the same unit):
You have 100 percent share in 20 acres of mustard in a unit with 650 pound production guarantee (per acre), 10 acres with a price election of $0.15 per pound, and 10 acres with a price election of $0.10 per pound, due to insurable causes you are only able to harvest 8500 pounds and there is no appraised production. Your indemnity would be calculated as follows:
(1) 10 acres × 650 pounds = 6500 pounds guarantee × $0.15 price election = $975 value guarantee;
(2) 10 acres × 650 pounds = 6500 pounds guarantee × $0.10 price election = $650 value guarantee;
(3) $975 + $650 = $1,625 total value guarantee;
(4) 6500 pounds production × $ 0.15 price election (higher price election) = $975 value of production to count;
(5) 2000 pounds production × $0.10 price election (lower price election) = $200 value of production to count;
(6) $975 + $200 = $1,175 total value of production to count;
(7) $1,625 total value guarantee − $1,175 total value of production to count = $450 loss; and
(A) If you do not elect to continue to care for the crop, we may give you consent to put the acreage to another use if you agree to leave intact, and provide sufficient care for, representative samples of the crop in locations acceptable to us (The amount of production to count for such acreage will be based on the harvested production or appraisals from the samples at the time harvest should have occurred. If you do not leave the required samples intact, or you fail to provide sufficient care for the samples, our appraisal made prior to giving you consent to put the acreage to another use will be used Start Printed Page 66702to determine the amount of production to count.); or
(i) The deficiencies, substances, or conditions specified in section 13(d)(2) resulted from a cause of loss specified in section 10 that occurs within the insurance period;
(ii) The deficiencies, substances, or conditions specified in section 13(d)(2) result in a salvage price less than the base contract price;
(iii) All determinations of these deficiencies, substances, or conditions specified in section 13(d)(2) are made using samples of the production obtained by us or by a disinterested third party approved by us; and
(4) Mustard production that is eligible for quality adjustment, as specified in sections 13(d)(2) and (3), will be reduced by multiplying the quality adjustment factors contained in the Special Provisions (or the quality adjustment factors determined by dividing the salvage price by the base contract price (not to exceed 1.000) if the quality adjustment factors are not contained in the Special Provisions) by the number of pounds remaining after any reduction due to excessive moisture (the moisture-adjusted gross pounds) of the damaged or conditioned production.
In addition to the provisions contained in section 17 of the Basic Provisions, your prevented planting coverage will be 60 percent of your production guarantee (per acre) for timely planted acreage. If you have limited or additional levels of coverage, as specified in 7 CFR part 400, subpart T, and pay an additional premium, you may increase your prevented planting coverage to the levels specified in the actuarial documents.
[FR Doc. E6-19320 Filed 11-15-06; 8:45 am]