[Federal Register: November 14, 2003 (Volume 68, Number 220)]
[Proposed Rules]
[Page 64570-64571]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14no03-29]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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[[Page 64570]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AB90
Common Crop Insurance Regulations; Processing Tomato Crop
Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Common Crop Insurance Regulations, Processing Tomato Crop
Insurance Provisions (7 CFR 457.160). The intended effect of this
action is to: Clarify that producers who have production contracts with
tomato brokers are eligible for insurance; allow the Special Provisions
statements to provide a replant payment amount that more adequately
reflects the regional cost of replanting tomatoes, and restrict the
effect of the current processing tomato crop provisions to the 2004 and
prior crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business on January 13, 2004, and will be
considered when the rule is to be made final. The comment period for
information collections under the Paperwork Reduction of 1995 continues
through January 13, 2004.
ADDRESSES: Interested persons are invited to submit written comments to
the Director, Product Development Division, Risk Management Agency,
United States Department of Agriculture, 6501 Beacon Drive, Stop 0812,
Room 421, Kansas City, MO. 64133-4676. Comments titled Processing
Tomatoes may also be sent via the Internet to DirectorPDD@rm.fcic.usda.gov. A copy of each response will be available
for public inspection and copying from 7 a.m. to 4:30 p.m., CST Monday
through Friday, except holidays, at the above address.
FOR FURTHER INFORMATION CONTACT: Pam Culver, Risk Management
Specialist, Research and Development, Product Development Division,
Risk Management Agency, at the Kansas City, MO address listed above,
telephone (816) 926-7176.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant for the
purposes of Executive Order 12866 and, therefore, it has not been
reviewed by the Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter
35), the collections of information for this rule have been previously
approved by OMB under control number 0563-0053 through February 28,
2005.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
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. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of UMRA.
Executive Order 13132
It has been determined under section 1(a) of Executive Order 13132,
Federalism, that this rule does not have sufficient implications to
warrant consultation with the States. The provisions contained in this
rule will not have a substantial direct effect on States, or on the
relationship between the national government and the States, 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. 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. 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 12988
This rule has been reviewed in accordance with Executive Order
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 under
the terms of the crop insurance policy, the administrative appeal
provisions published at 7 CFR part 11 must be exhausted before any
action against FCIC 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.
Background
FCIC proposes to amend Sec. 457.160 Processing Tomato Crop
Insurance Provisions of the Common Crop Insurance Regulations by adding
a definition of ``broker'' and adding provisions to clarify producers
who have production contracts with tomato brokers are eligible for
insurance. Current provisions specify that producers who have
production contracts with tomato processors, and tomato producers who
also process tomatoes, can be eligible for insurance. The proposed rule
requires the tomato
[[Page 64571]]
broker to have all licenses and permits required by the state in which
it operates, and to have a written contract with a processor to
purchase processing tomatoes on behalf of the processor and to deliver
such tomatoes to the processor. Additionally, the proposed rule allows
Special Provision statements to provide a replant payment amount that
more adequately reflects the regional cost of replanting tomatoes. The
replant payment amount remains limited to the producer's actual costs
as provided in the Basic Provisions.
List of Subjects in 7 CFR Part 457
Crop insurance, processing tomatoes, reporting and record keeping
requirements.
Proposed Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation proposes to amend 7 CFR part 457 Common Crop
Insurance Regulations effective for the 2005 and succeeding crops
years, to read as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), and 1506(p).
2. Amend 457.160 as follows:
a. Revise the heading and the introductory text.
b. Amend section 1 by adding a definition for ``broker''.
c. Amend section 1 by revising the definition of ``processor
contract''.
d. Revise section 8(c).
e. Revise section 12(b).
The revisions read as follows:
Sec. 457.160 Processing tomato crop insurance provisions.
The Processing Tomato Crop Insurance Provisions for the 2005 and
succeeding crop years are as follows:
* * * * *
1. Definitions
* * * * *
Broker. An enterprise in the business of selling and buying
tomatoes possessing all the licenses and permits required by the state
in which it operates, and that has a written contract with a processor
to purchase processing tomatoes on behalf of the processor and to
deliver such tomatoes to the processor.
* * * * *
Processor contract. A written agreement between the producer and a
processor, or between the producer and a broker, containing at a
minimum:
(a) The producer's commitment to plant and grow processing
tomatoes, and to deliver the tomato production to the processor or
broker;
(b) The processor's, or broker's, commitment to purchase all the
production stated in the processor contract; and
(c) A price per ton that will be paid for the production.
* * * * *
8. Insured Crop
* * * * *
(c) A tomato producer who is also a processor or broker may
establish an insurable interest if the following requirements are met:
(1) The processor or broker, as applicable, must comply with these
Crop Provisions;
(2) Prior to the sales closing date, the Board of Directors or
officers of the processor or the broker must execute and adopt a
resolution that contains the same terms as an acceptable processor
contract. (Such resolution will be considered a processor contract
under this policy); and
(3) As applicable, our inspection reveals that the processing
facilities comply with the definition of a processor contained in these
Crop Provisions.
* * * * *
12. Replanting Payment
* * * * *
(b) The maximum amount of the replanting payment per acre will be
determined as follows:
(1) the amount if shown on the Special Provisions; or
(2) if an amount is not contained in the Special Provisions, the
lesser of 20 percent of the production guarantee or three tons,
multiplied by your third stage (final) price election, multiplied by
your share; and
(3) in no event will the replanting payment per acre exceed your
actual cost of replanting.
* * * * *
Signed in Washington, DC, on November 4, 2003.
Ross J. Davidson,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 03-28219 Filed 11-13-03; 8:45 am]
BILLING CODE 3410-08-P