Macadamia Nut Crop Insurance Regulations

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 455

Macadamia Nut Crop Insurance Regulations

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Interim final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby amends

the Macadamia Nut Crop Insurance Regulations by extending the insurance

period for the 1997 crop year only. The intended effect of this interim

final rule is to realign the macadamia nut crop insurance period to

conform with the macadamia nut production period.

DATES: This rule is effective July 2, 1997.

ADDRESSES: Interested persons are invited to submit written comments to

the Director, Product Development Division, Federal Crop Insurance

Corporation, United States Department of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131.

FOR FURTHER INFORMATION CONTACT: Stephen Hoy, Insurance Management

Specialist, Research and Development, Product Development Division,

Federal Crop Insurance Corporation, at the Kansas City, MO, address

listed above, 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

Under the current Macadamia Nut Crop Insurance Regulations, a

producer must submit a new application each year for which insurance is

requested. No application will be required to extend the 1997 crop year

insurance coverage. Therefore, the amendments set forth in this rule do

not contain additional information collections that require clearance

by OMB under the provisions of 44 U.S.C. chapter 35.

Comments regarding paperwork reduction should be submitted to the

Desk Officer for Agriculture, Office of Information and Regulatory

Affairs, Office of Management and Budget, Washington, DC 20503.

OMB is required to make a decision concerning the collections of

information contained in these regulations between 30 and 60 days after

submission to OMB. Therefore, a comment to OMB is best assured of

having full effect if OMB receives it within 30 days of publication.

This does not affect the deadline for the public to comment on the

interim final rule.

Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pubic

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 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.

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

This interim final rule amends the Macadamia Nut Crop Insurance

Regulations (7 CFR part 455) to extend insurance coverage for the 1997

crop year. The extended insurance coverage period for the 1997 crop

year will begin on January 1, 1998, and the calendar date for the end

of the insurance period will be June 30, 1998.

The current Macadamia Nut Crop Insurance Regulations provide crop

insurance coverage from January 1, 1997, through December 31, 1997, for

the 1997 crop year. The 1998 macadamia nut industry production year

extends from July 1, 1997, to June 30, 1998. The difference between the

crop insurance period and production

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year is not conducive to maintaining actual production history (APH)

records or establishing effective loss adjustment procedures.

FCIC has published new macadamia nut crop insurance provisions that

will attach to the Common Crop Insurance Policy Basic Provisions for

the 1999 and succeeding crop years. These changes will result in the

1998 crop year being incorporated into the 1997 and 1999 policies.

Insurance coverage under the new macadamia nut crop provisions will

attach on January 1, 1998, and the end of the insurance period will be

June 30, 1999, for the 1999 crop year.

Coverage against insured causes of loss will be provided on all

macadamia nut blooms and nuts normally produced during the production

year that extends from July 1 to June 30 of the next calendar year.

From January 1 to June 30 of the first calendar year of each insurance

period, coverage against insured causes of loss will only be provided

on the macadamia nut blooms and immature macadamia nuts that normally

produce mature nuts during the production year that will start July 1.

Therefore, an extension of the 1997 crop year is necessary to provide

macadamia nut coverage for the latter six months of the production year

that began July 1, 1997. Thereafter, each crop insurance period will

include a complete production year.

No additional premium or administrative fee will be due for

catastrophic risk protection, limited coverage, or additional coverage

insurance that is extended for the crop year. A premium and

administrative fee has been paid for the 1997 crop year, and there will

be no 1998 crop year. Therefore, good cause exists to make this rule

effective upon publication without prior notice and the opportunity to

comment before the rule is effective.

List of Subjects in 7 CFR Part 455

Crop insurance, Macadamia nuts.

Interim Final Rule

Accordingly, as set forth in the preamble, the Federal Crop

Insurance Corporation hereby amends 7 CFR part 455, as follows:

PART 455--MACADAMIA NUT CROP INSURANCE REGULATIONS

1. The authority citation for 7 CFR part 455 is revised to read as

follows:

Authority: 7 U.S.C. 1506(1), 1506(p).

2. In Sec. 455.7(d), in the Macadamia Nut Crop Insurance Policy,

revise 7.(e), 8.(b)(4), and 9.(2)(3) to read as follows:

Sec. 455.7 The application and policy.

* * * * *

Macadamia Nut--Crop Insurance Policy

7. Insurance Period

* * * * *

(e) June 30, 1998, for the 1997 crop year only.

* * * * *

8. Notice of Damage or Loss

* * * * *

(b) * * *

(1) * * *

(2) * * *

(3) * * *

(4) June 30, 1998, for the 1997 crop year only.

* * * * *

9. Claim for Indemnity

(a) * * *

(1) * * *

(2) * * *

(3) June 30, 1998, for the 1997 crop year only.

* * * * *

Signed in Washington, D.C., on June 26, 1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance Corporation.

[FR Doc. 97-17353 Filed 7-1-97; 8:45 am]

BILLING CODE 3410-08-P