Crop insurance regulations: Correction,

[Federal Register: October 26, 1998 (Volume 63, Number 206)]

[Rules and Regulations]

[Page 57046-57047]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr26oc98-2]

DEPARTMENT OF AGRICULTURE

7 CFR Part 457

RIN 0563-AB65

Common Crop Insurance Regulations, Nursery Crop Insurance Provisions; Correction

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule; correction.

SUMMARY: This document contains corrections to the final rule that was published in the Federal Register on Thursday, September 24, 1998 (63 FR 50965-50979). The rule pertains to the insurance of nursery crops.

EFFECTIVE DATE: October 23, 1998.

FOR FURTHER INFORMATION CONTACT: Vondie O'Conner, Director, Research and Evaluation Division, Federal Crop Insurance Corporation, United States Department of Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816) 926-6343.

SUPPLEMENTARY INFORMATION:

Background

The final rule that is the subject of this correction was intended to provide policy changes to better meet the needs of the insured.

Need For Correction

As published, the final regulation contains errors which may prove misleading.

Section 6(h) indicates that an insured electing catastrophic insurance coverage may obtain a written agreement, but such agreements are prohibited by section 11 of the Catastrophic Risk Protection Endorsement. Even though the Catastrophic Risk Protection Endorsement would govern the crop provisions, FCIC does not want to mislead growers into believing such an agreement would be obtainable. Instead, FCIC may provide a waiver on a case-by-case basis if the insured presents acceptable records to prove actual inventory value if the section 6(h) restrictions cause the insured to undervalue inventory.

Section 7(a) of the Nursery Crop Provisions concerning premium calculation states that it is in lieu of section 7(a) of the Basic Provisions when the correct citation is section 7(c).

In section 15, the single unit example had the wrong mathematical symbol in two locations. In step one the multiplication symbol should have been the symbol for division. In step two, the multiplication symbol should have been the symbol for subtraction. In the multiple unit multiple loss example, the numbers in the second step one are incorrect. $66,400 should be divided by $83,000 to equal .80.

Section 5(a) of the Nursery Peak Inventory Endorsement contained in Sec. 457.163 refers to the ``coverage term.'' This is a clerical error that should refer to ``premium rate.'' Section 5(a) also refers to a ``proration factor'' but should refer to ``a premium adjustment factor.''

Correction of Publication

Accordingly, the publication on September 24, 1998, of the final regulation at 63 FR 50965-50979 is corrected as follows:

PART 457--[CORRECTED]

Sec. 457.162 [Corrected]

On page 50977, in the first column, in Sec. 457.162, section 6(h) of the crop provisions is corrected to read as follows:

For catastrophic insurance coverage only: (1) Your plant inventory value report for container grown nursery plants cannot exceed the lesser of the actual value from section 6(e) or 150 percent of your previous year's sales of container grown nursery plants; (2) Your plant inventory value report for field grown nursery plants cannot exceed the lesser of the actual value from section 6(e) or 250 percent of your previous years' sale of field grown nursery plants, and if the above restrictions cause you to under report the value of your inventory, you must present records acceptable to us to prove your actual inventory value to receive a waiver of these restrictions.

On page 50977, in the first column, in Sec. 457.162, section 7(a) is corrected to read as follows:

[[Page 57047]]

In lieu of section 7(c) of the Basic Provisions, we will determine your premium by multiplying the amount of insurance by the appropriate premium rate and by the premium adjustment factors listed on the actuarial documents that may apply.

On page 50978, in the first and second columns, in Sec. 457.162, section 15 of the crop provisions, the single unit example, steps one and two, are corrected to read as follows:

``Step (1) Determine the under report factor

$100,000 ‹divide› $125,000 =.80; Step (2) Field market value A minus field market value B

$125,000 - $80,000 = $45,000;

On page 50978, in the third column, in Sec. 457.162, section 15, the multiple unit multiple loss example, the second step one, is corrected to read as follows:

Step (1) Determine the under report factor

$66,400 ‹divide› $83,000 =.80;''

Sec. 457.163 [Corrected]

On page 50979, in the second column, in Sec. 457.163, section 5(a) of the endorsement is corrected to read as follows:

The premium for this endorsement is determined by multiplying the peak amount of insurance by the appropriate premium rate and by any premium adjustment factors listed on the actuarial documents that may apply.

Signed in Washington DC, on October 19, 1998. Kenneth D. Ackerman, Manager, Federal Crop Insurance Corporation.

[FR Doc. 98-28541Filed10-23-98; 8:45 am]

BILLING CODE 3410-08-P