Area Risk Protection Insurance Regulations and Common Crop Insurance Policy Basic Provisions
| Published date | 30 June 2021 |
| Citation | 86 FR 34606 |
| Record Number | 2021-13939 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
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percent for any 24-month period no
earlier than the same period the ETA
uses to designate LSAs for the current
fiscal year.
(4) Effective date of certain waivers. In
areas for which the State certifies that
data from the BLS or the BLS
cooperating agency show a most recent
12 month average unemployment rate
over 10 percent; or the area has been
designated as a Labor Surplus Area by
the Department of Labor’s Employment
and Training Administration for the
current fiscal year, the State may begin
to operate the waiver at the time the
waiver request is submitted. FNS will
contact the State if the waiver must be
modified.
(5) Duration of waiver. In general,
waivers will be approved for one year.
The duration of a waiver should bear
some relationship to the documentation
provided in support of the waiver
request. FNS will consider approving
waivers for up to one year based on
documentation covering a shorter
period, but the State agency must show
that the basis for the waiver is not a
seasonal or short term aberration. We
reserve the right to approve waivers for
a shorter period at the State agency’s
request or if the data is insufficient. We
reserve the right to approve a waiver for
a longer period if the reasons are
compelling.
(6) Areas covered by waivers. States
may define areas to be covered by
waivers. We encourage State agencies to
submit data and analyses that
correspond to the defined area. If
corresponding data does not exist, State
agencies should submit data that
corresponds as closely to the area as
possible.
* * * * *
(h) Adjustments. FNS will make
adjustments as follows:
(1) Caseload adjustments. FNS will
adjust the number of exemptions
estimated for a State agency under
paragraph (g)(2) of this section during a
fiscal year if the number of SNAP
recipients in the State varies from the
State’s caseload by more than 10
percent, as estimated by FNS.
(2) Exemption adjustments. During
each fiscal year, FNS will adjust the
number of exemptions allocated to a
State agency based on the number of
exemptions in effect in the State for the
preceding fiscal year.
(i) If the State agency does not use all
of its exemptions by the end of the fiscal
year, FNS will increase the estimated
number of exemptions allocated to the
State agency for the subsequent fiscal
year by the remaining balance.
(ii) If the State agency exceeds its
exemptions by the end of the fiscal year,
FNS will reduce the estimated number
of exemptions allocated to the State
agency for the subsequent fiscal year by
the corresponding number.
* * * * *
Cynthia Long,
Acting Administrator, Food and Nutrition
Service.
[FR Doc. 2021–14045 Filed 6–29–21; 8:45 am]
BILLING CODE 3410–30–P
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 407 and 457
[Docket ID FCIC–21–0005]
RIN 0563–AC74
Area Risk Protection Insurance
Regulations and Common Crop
Insurance Policy Basic Provisions
AGENCY
: Federal Crop Insurance
Corporation, U.S. Department of
Agriculture (USDA).
ACTION
: Final rule with request for
comments.
SUMMARY
: The Federal Crop Insurance
Corporation (FCIC) amends the Area
Risk Protection Insurance (ARPI)
Regulations and Common Crop
Insurance Policy (CCIP), Basic
Provisions. The intended effect of this
action is to improve unit provisions and
organic farming practice provisions,
revise the definition of veteran farmer or
rancher, and clarify provisions. The
changes to the policy made in this rule
are applicable for the 2022 and
succeeding crop years for crops with a
contract change date on or after June 30,
2021. For all other crops, the changes to
the policy made in this rule are
applicable for the 2023 and succeeding
crop years.
DATES
:
Effective date: This final rule is
effective June 30, 2021.
Comment date: We will consider
comments that we receive by the close
of business August 30, 2021. FCIC may
consider the comments received and
may conduct additional rulemaking
based on the comments.
ADDRESSES
: We invite you to submit
comments on this rule. You may submit
comments by either of the following
methods, although FCIC prefers that you
submit comments electronically through
the Federal eRulemaking Portal:
•Federal eRulemaking Portal: Go to
http://www.regulations.gov and search
for Docket ID FCIC–21–0005. Follow the
instructions for submitting comments.
•Mail: Director, Product
Administration and Standards Division,
Risk Management Agency (RMA), US
Department of Agriculture, P.O. Box
419205, Kansas City, MO 64133–6205.
In your comment, specify docket ID
FCIC–21–0005.
Comments will be available for
viewing online at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT
:
Francie Tolle; telephone (816) 926–
7829; or email francie.tolle@usda.gov.
Persons with disabilities who require
alternative means for communication
should contact the USDA Target Center
at (202) 720–2600 or 844–433–2774
(toll-free nationwide).
SUPPLEMENTARY INFORMATION
:
Background
FCIC serves America’s agricultural
producers through effective, market-
based risk management tools to
strengthen the economic stability of
agricultural producers and rural
communities. The Risk Management
Agency (RMA) administers the FCIC
regulations. FCIC is committed to
increasing the availability and
effectiveness of Federal crop insurance
as a risk management tool. Approved
Insurance Providers (AIPs) sell and
service Federal crop insurance policies
in every state through a public-private
partnership. FCIC reinsures the AIPs
who share the risks associated with
catastrophic losses due to major weather
events. FCIC’s vision is to secure the
future of agriculture by providing world
class risk management tools to rural
America.
Federal crop insurance policies
typically consist of the Basic Provisions,
the Crop Provisions, the Special
Provisions, the Commodity Exchange
Price Provisions, if applicable, other
applicable endorsements or options, the
actuarial documents for the insured
agricultural commodity, the
Catastrophic Risk Protection
Endorsement, if applicable, and the
applicable regulations published in 7
CFR chapter IV.
FCIC amends the ARPI Basic
Provisions (7 CFR 407) and the CCIP
Basic Provisions (7 CFR 457.8). The
changes to the policy made in this rule
are applicable for the 2022 and
succeeding crop years for crops with a
contract change date on or after June 30,
2021. For all other crops, the changes to
the policy made in this rule are
applicable for the 2023 and succeeding
crop years. These changes resulted from
public comments received on two final
rules with request for comment.
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Comments Related to 85 FR 38749–
38760 Published June 29, 2020
The first final rule with request for
comment was published in the Federal
Register on June 29, 2020, (85 FR
38749–38760) amending the ARPI
Regulations; CCIP Basic Provisions; and
the Common Crop Insurance
Regulations, Coarse Grains Crop
Insurance Provisions (Coarse Grains
Crop Provisions). Comments were
received from five commenters. Three
comments were from individuals,
whose comments were unrelated to the
rule. One comment was from an
insurance company. The last comment
was from a trade association. FCIC
addressed editorial comments in the
final rule with request for comment
published in the Federal Register on
November 30, 2020, (85 FR 76420–
76428). The public comments and FCIC
responses regarding the Coarse Grains
Crop Provisions will be addressed in a
future final rule. The non-editorial
public comments received regarding the
June 29, 2020, final rule with request for
comment related to the ARPI Basic
Provisions and CCIP Basic Provisions
and FCIC’s responses to the comments
are as follows:
Comment: In the definition of
‘‘second crop’’ a commenter questioned
whether the 60 percent actual
production history (APH) penalty to the
first insured crop described in section
3(i) would be applicable when a cover
crop or volunteer crop is hayed, grazed,
silaged, etc.
Response: No changes were made to
the APH penalty within the June 29,
2020 rule; therefore, no additional
changes will be made.
Comment: A commenter asked for the
term ‘‘otherwise harvested’’ to be
defined as it is a key term used in first
and second crop provisions and
determinations in prevented planting
situations. Currently, the term is defined
in the Prevented Planting Standards
Handbook (PPSH), but this definition
has changed in the past and is subject
to change again unless codified in the
Rule.
Response: FCIC does not agree and
will not add the definition to the CCIP
Basic Provisions. The PPSH defines
‘‘otherwise harvested’’ as ‘‘harvested for
reasons other than for haying, grazing,
or cutting for silage, haylage, or baleage.
This could be for grain, seed, etc.’’ No
change will be made.
Comment: A commenter suggested
clarifying the double cropping
provisions and the example in section
15(h)(7) as it is unclear as to whether
there is a precedence based on which of
the two crops under different plans of
insurance is the first insured crop.
Response: FCIC understands the
confusion when considering two crops
under different plans of insurance and
needing to determine which crop is the
first insured crop. As explained in the
June 29, 2020, final rule, the change to
section 15(h)(7) was intended to address
the provisions that each insured crop is
required to follow to determine if the
double cropping requirements have
been met. Given the nature of the issues
that can come up if the two crops are
under different plans, FCIC is working
with stakeholders to determine what
change is appropriate. Any related
change to the regulation will be in a
future rulemaking.
Comment: A commenter had concerns
regarding the phrase ‘‘than determined
in 15(i)’’ in section 15(i)(3). As item
15(i)(3) is situated within 15(i), it would
be clearer if the specific item(s) of this
subsection was referenced.
Response: FCIC agrees and has
clarified this section is referencing the
introductory paragraph of section 15(i).
Comment: Two commenters
recommended removing the
requirement of a notice of loss to be
filed in the quality loss provisions
contained in section 36(a)(3).
Response: FCIC does not agree with
the recommended change to remove the
notice of loss provisions. The Quality
Loss Option allows insureds to replace
post-quality adjustment production
amounts with pre-quality adjustment
production amounts in their APH
database for a given crop year. Pre-
quality adjustment and post-quality
adjustment production amounts are
entry items on the production
worksheet that is completed by the AIP
during the loss adjustment process. To
maintain program integrity and actuarial
soundness, it is pertinent to capture
consistent production amounts across
various crops and diverse farming
operations. If there is not a notice of loss
filed when there is a quality loss, the
AIP will not be able to capture the
appropriate production amounts on the
production worksheet that are required
to elect the quality loss option. Without
a notice of loss provision in place, AIPs
will be inconsistent when determining
acceptable production records that may
qualify for the quality loss option,
resulting in varying AIP determinations
and disparate treatment amongst
insureds.
When there is a payable loss, AIPs
will submit the production report
entries to FCIC using the Policy
Acceptance Storage System (PASS). In a
situation where there is a quality loss,
but not a payable loss, AIPs will have
the completed production worksheet in
their internal loss files to get the proper
production amounts required to elect
the quality loss option. No change will
be made.
Comment: A commenter stated the
requirement to give the AIP notice of
loss to allow replacement of post-quality
actual yields for the previous crop year
is currently only stated within section
36. Section 14 contains the
requirements regarding notices a
producer must provide to their AIP in
the event of a loss. As this is implied to
be a function of the loss process, the
provisions should be in section 14 as
well, so the producer is provided proper
communication of this requirement.
Response: FCIC agrees and is adding
a new section 14(b)(6) to state the
producer must give the AIP a notice of
loss due to an insurable cause in the
year of the crop loss to replace post-
quality actual yields with actual yields
prior to quality loss adjustment.
Comments Related to 85 FR 76420–
76428 Published November 30, 2020
The second final rule with request for
comment was published in the Federal
Register on November 30, 2020, (85 FR
76420–76428) amending the Area Risk
Protection Insurance (ARPI)
Regulations; Common Crop Insurance
Policy (CCIP), Basic Provisions;
Common Crop Insurance Regulations,
Sunflower Seed Crop Insurance
Provisions (Sunflower Seed Crop
Provisions); and Common Crop
Insurance Regulations, Dry Pea Crop
Insurance Provisions (Dry Pea Crop
Provisions). Comments were received
from three commenters. One from an
individual who simply stated they
agreed with the rule, one from a trade
association, and one from an individual.
The public comments received
regarding the November 30, 2020, final
rule with request for comment and
FCIC’s responses to the comments are as
follows:
Comment: A commenter noted section
15(h)(7) deals with situations where a
‘‘planted’’ second crop follows a first
insured crop. As such, it would not be
applicable to the provisions of section
17(f)(4) in situations where both the 1st
insured and 2nd crops were prevented
from planting nor where a 1st insured
crop was planted and a 2nd crop was
prevented. It would therefore appear
appropriate to add the text of section
15(h)(7) to section 17(f)(4).
Response: As stated above, FCIC is
working with stakeholders to determine
what change is appropriate in section
15(h)(7) and plans to make
corresponding changes in section
17(f)(4). Any related change to the
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regulation will be in a future
rulemaking.
Comment: A commenter noted in
section 17(e)(2) that an ‘‘uninsured
second crop’’ would include: (1) A
second crop planted after the Late
Planting Period (LPP) or the Final Plant
Date (if a LPP was not applicable); and
(2) A second crop which an insured
elected not to insure under the first and
second crop provisions in order to
preserve a 100% indemnity for the 1st
insured crop. The commenter had
program vulnerability concerns and
suggested a clarification or that the
provision be removed. The situation is
rare, and the proposed remedy is
unnecessary and has added significant
complexity to the provision, along with
increasing the likelihood the provisions
will apply to situations other than those
intended. This is due to the provision
applying to every ‘‘uninsured 2nd crop’’
following a failed first insured crop.
Response: This change was made to
address the concern that in this
situation the same physical acres are
subtracted twice from the overall
prevented planting eligible acres. This
occurrence is extremely rare, but in
years where widespread prevented
planting is prevalent, such as in 2019,
the provision provides important
coverage for producers. No change will
be made.
Comment: A commenter
recommended adding the phrase
‘‘practice’’ in section 17(f)(1)(iv) like
section 17(f)(1)(i).
Response: FCIC will revise section
17(f)(1)(iv) for consistency.
Comment: A commenter suggested
clarifying in section 17(f)(1) if proof of
the rotation alone is sufficient or
whether both proof of the rotation and
inputs are required regarding the phrase
‘‘or that acreage was part of a crop
rotation.’’
Response: FCIC believes the wording
is clear regarding the phrase ‘‘or that
acreage was part of a crop rotation.’’ The
word ‘‘or’’ being used at the beginning
of this phrase means that proof of
rotation alone is sufficient. No change
will be made.
Comment: Regarding section 17(f)(8),
a commenter requested a system be in
place to support the increase in seeking
and verifying this information for
policies that have transferred between
agents and AIPs.
Response: FCIC encourages producers
to work with their agent in providing
documentation. AIPs have access to data
that can assist with verifying insurance
history. There are other methods such as
satellite imagery that may be beneficial
when proving if a crop was planted and
harvested.
Comment: A commenter disagreed
with the change in section 17(f)(8) and
stated it negatively impacted farmers in
California by eliminating prevented
planting payments to farmers who
leased land that is fallowed, unless the
fallowed land is farmed the next two
years, regardless of water availability
and other challenges inherent in
production agriculture. The land will be
eligible only if the entire leased acreage
is in production in at least one year out
of four. A commenter suggested to phase
in the new ‘‘1 in 4’’ requirement over 4
years to allow farmers who use
prevented planting coverage sufficient
time to modify existing farming
practices as needed (e.g., install
irrigation systems, acquire water, and
secure related financing).
Response: The ‘‘1 in 4’’ requirement
applies specifically to physical acreage
(land); not the producer, the lease, or
the farming operation. No change will
be made.
In addition to the changes described
above, FCIC has made the following
changes:
ARPI Basic Provisions and CCIP Basic
Provisions
For both ARPI Basic Provisions (7
CFR 407) and CCIP Basic Provisions (7
CFR 457.8), FCIC is revising the
definition of ‘‘veteran farmer or
rancher’’ in section 1 to allow the
spouse’s veteran status not to impact
whether a person is considered a
veteran farmer or rancher. The
provisions define ‘‘person’’ as an
individual, partnership, association,
corporation, estate, trust, or other legal
entity, and wherever applicable, a State
or a political subdivision or agency of a
State. The word ‘‘person’’ does not
include the United States Government
or any agency thereof. The provisions
state all entity substantial beneficial
interest holders must qualify
individually as a veteran. The change to
the definition of ‘‘veteran farmer or
rancher’’ will clarify the exception that
allows a legal entity, comprised only of
the veteran and their spouse, to qualify
as a veteran farmer or rancher when a
qualifying veteran has a non-veteran
spouse. For example, a veteran starts
farming and forms a corporation with
their non-veteran spouse. The veteran
meets the veteran farmer or rancher
requirements, but the spouse is a non-
veteran. With this change, their
corporation would qualify as a veteran
farmer or rancher.
ARPI Basic Provisions
Other changes applicable only to the
ARPI Basic Provisions (7 CFR 407) are:
Section 1—FCIC is revising the
definition of ‘‘acreage reporting date’’ to
replace the term ‘‘actuarial documents’’
with ‘‘Special Provisions.’’ This change
is being made to be consistent with the
CCIP Basic Provisions.
FCIC is removing the definition of
‘‘NASS’’ (National Agricultural
Statistics Service) for greater
transparency regarding the data used to
determine area yield guarantees and
indemnities, because FCIC no longer
uses NASS data but instead RMA data.
In addition to removing the definition,
FCIC is removing any references to
NASS data throughout the provisions.
Therefore, FCIC is removing paragraph
15(e) and redesignating paragraphs (f)
and (g) as (e) and (f).
CCIP Basic Provisions
Other changes applicable only to the
CCIP Basic Provisions (7 CFR 457.8) are:
Section 34—FCIC is adding a new
section 34(a)(4)(ix) to allow Crop
Provisions to have enterprise units (EU)
by practice, type, or other insurance
features. In 2018, FCIC developed the
multi-county enterprise unit (MCEU)
endorsement. For the 2020 crop year,
EUs by cropping practice for following
another crop and not following another
crop (FAC/NFAC) were made available
in select grain sorghum and soybean
counties. For the 2021 crop year, when
a producer elects and fails to qualify for
EUs on both irrigation or cropping
practices they have an additional option
to keep EU on practice that meets EU
qualifications and have basic or optional
units on the other practice that does not
meet EU qualifications. For example, a
producer elects EU for both FAC and
NFAC cropping practices, but does not
qualify for EU for both practices. If
discovery for not qualifying is on or
before the acreage reporting date, the
producer has an additional option to
elect an EU on one cropping practice
and basic or optional units on the other
cropping practice. FCIC continues to
receive requests from stakeholders to
add the EU structure for a crop or allow
the EU structure on a different basis
than currently allowed. FCIC continues
to review these requests individually to
determine the feasibility of
implementing the EU request. With this
change, FCIC will have the flexibility to
make these subsequent EU changes in
individual Crop Provisions.
Section 37—FCIC is revising sections
37(c) and (e) to allow a producer to
report acreage as certified organic, or as
acreage in transition to organic, when
the producer certifies that they have
requested, in writing, a written
certification or other written
documentation from a certifying agent
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on or before the acreage reporting date
(ARD). The producer may notify their
insurance agent by phone, email, text, or
other electronic communication
method. Following the notification, the
organic plan or certificate must be in
place prior to coverage ending in
accordance with the policy. The
producer’s acreage will remain insured
under the practice reported on the
acreage reporting date unless they have
a loss. If the producer has a loss and
does not have a certificate or plan in
place at the time the claim is finalized,
then the acreage will be insured under
the practice for which it qualifies.
Currently, policy requires producers
with certified organic or acreage in
transition to organic to have written
certification or written documentation
from a certifying agent by the ARD
which shows an organic plan is in effect
for the acreage. Procedures allow that a
certificate and plan must be in place
each year to qualify for organic or
organic transitional practices. A
previous certificate or plan may be used
to qualify for insurance until a plan can
be updated by a certifying agent.
The organic industry presented
concerns to FCIC, Farm Service Agency,
and Agricultural Marketing Service
regarding producers’ inability to have
organic plans and certificates ‘‘in effect’’
by their crop insurance policy ARD due
to COVID restrictions limiting travel and
face to face interaction. To mitigate
these concerns and provide flexibility,
FCIC provided relief through Manager’s
Bulletins: MGR–20–0013 and MGR–20–
0026 and is incorporating the Manager’s
Bulletins in this rule. With this change,
FCIC recognizes the on-going challenges
that the organic producers face and
provides flexibility, while also ensuring
the Federal crop insurance program
continues to serve as a vital risk
management tool and organic
regulations remain in effect.
Effective Date and Notice and Comment
The Administrative Procedure Act
(APA, 5 U.S.C. 553) provides that the
notice and comment and 30-day delay
in the effective date provisions do not
apply when the rule involves specified
actions, including matters relating to
contracts. This rule governs contracts
for crop insurance policies and therefore
falls within that exemption.
This rule is exempt from the
regulatory analysis requirements of the
Regulatory Flexibility Act (5 U.S.C.
601–612), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996.
For major rules, the Congressional
Review Act requires a delay to the
effective date of 60 days after
publication to allow for Congressional
review. This rule is not a major rule
under the Congressional Review Act, as
defined by 5 U.S.C. 804(2). Therefore,
this final rule is effective June 30, 2021.
Although not required by APA or any
other law, FCIC has chosen to request
comments on this rule.
Executive Orders 12866 and 13563
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review,’’ direct agencies
to assess all costs and benefits of
available regulatory alternatives, and if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasized the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. The
requirements in Executive Orders 12866
and 13563 for the analysis of costs and
benefits apply to rules that are
determined to be significant.
The Office of Management and Budget
(OMB) designated this rule as not
significant under Executive Order
12866, ‘‘Regulatory Planning and
Review,’’ and therefore, OMB has not
reviewed this rule and analysis of the
costs and benefits is not required under
either Executive Order 12866 or 13563.
Clarity of the Regulation
Executive Order 12866, as
supplemented by Executive Order
13563, requires each agency to write all
rules in plain language. In addition to
your substantive comments on this rule,
we invite your comments on how to
make the rule easier to understand. For
example:
•Are the requirements in the rule
clearly stated? Are the scope and intent
of the rule clear?
•Does the rule contain technical
language or jargon that is not clear?
•Is the material logically organized?
•Would changing the grouping or
order of sections or adding headings
make the rule easier to understand?
•Could we improve clarity by adding
tables, lists, or diagrams?
•Would more, but shorter, sections
be better? Are there specific sections
that are too long or confusing?
•What else could we do to make the
rule easier to understand?
Environmental Review
In general, the environmental impacts
of rules are to be considered in a
manner consistent with the provisions
of the National Environmental Policy
Act (NEPA, 42 U.S.C. 4321–4347) and
the regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508). FCIC conducts programs
and activities that have been determined
to have no individual or cumulative
effect on the human environment. As
specified in 7 CFR 1b.4, FCIC is
categorically excluded from the
preparation of an Environmental
Analysis or Environmental Impact
Statement unless the FCIC Manager
(agency head) determines that an action
may have a significant environmental
effect. The FCIC Manager has
determined this rule will not have a
significant environmental effect.
Therefore, FCIC will not prepare an
environmental assessment or
environmental impact statement for this
action and this rule serves as
documentation of the programmatic
environmental compliance decision.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, ‘‘Civil Justice
Reform.’’ This rule will not preempt
State or local laws, regulations, or
policies unless they represent an
irreconcilable conflict with this rule.
Before any judicial actions may be
brought regarding the provisions of this
rule, the administrative appeal
provisions of 7 CFR part 11 are to be
exhausted.
Executive Order 13175
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, ‘‘Consultation
and Coordination with Indian Tribal
Governments.’’ Executive Order 13175
requires Federal agencies to consult and
coordinate with Tribes on a
government-to-government basis on
policies that have Tribal implications,
including regulations, legislative
comments or proposed legislation, and
other policy statements or actions that
have substantial direct effects on one or
more Indian Tribes, on the relationship
between the Federal Government and
Indian Tribes or on the distribution of
power and responsibilities between the
Federal Government and Indian Tribes.
RMA has assessed the impact of this
rule on Indian Tribes and determined
that this rule does not, to our
knowledge, have Tribal implications
that require Tribal consultation under
E.O. 13175. The regulation changes do
not have Tribal implications that
preempt Tribal law and are not expected
have a substantial direct effect on one or
more Indian Tribes. If a Tribe requests
consultation, RMA will work with the
USDA Office of Tribal Relations to
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ensure meaningful consultation is
provided where changes, additions and
modifications identified in this rule are
not expressly mandated by Congress.
The Unfunded Mandates Reform Act of
1995
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA, Pub. L.
104–4) requires Federal agencies to
assess the effects of their regulatory
actions of State, local, and Tribal
governments or the private sector.
Agencies generally must prepare a
written statement, including cost
benefits analysis, for proposed and final
rules with Federal mandates that may
result in expenditures of $100 million or
more in any 1 year for State, local or
Tribal governments, in the aggregate, or
to the private sector. UMRA generally
requires agencies to consider
alternatives and adopt the more cost
effective or least burdensome alternative
that achieves the objectives of the rule.
This rule contains no Federal mandates,
as defined in Title II of 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.
Federal Assistance Program
The title and number of the Federal
Domestic Assistance Program listed in
the Catalog of Federal Domestic
Assistance to which this rule applies is
No. 10.450—Crop Insurance.
Paperwork Reduction Act of 1995
In accordance with the provisions of
the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35, subchapter I), the
rule does not change the information
collection approved by OMB under
control numbers 0563–0053.
USDA Non-Discrimination Policy
In accordance with Federal civil
rights law and USDA civil rights
regulations and policies, USDA, its
Agencies, offices, and employees, and
institutions participating in or
administering USDA programs are
prohibited from discriminating based on
race, color, national origin, religion, sex,
gender identity (including gender
expression), sexual orientation,
disability, age, marital status, family or
parental status, income derived from a
public assistance program, political
beliefs, or reprisal or retaliation for prior
civil rights activity, in any program or
activity conducted or funded by USDA
(not all bases apply to all programs).
Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require
alternative means of communication for
program information (for example,
braille, large print, audiotape, American
Sign Language, etc.) should contact the
responsible Agency or USDA TARGET
Center at (202) 720–2600 or 844–433–
2774 (toll-free nationwide).
Additionally, program information may
be made available in languages other
than English.
To file a program discrimination
complaint, complete the USDA Program
Discrimination Complaint Form, AD–
3027, found online at https://
www.usda.gov/oascr/how-to-file-a-
program-discrimination-complaint and
at any USDA office or write a letter
addressed to USDA and provide in the
letter all the information requested in
the form. To request a copy of the
complaint form, call (866) 632–9992.
Submit your completed form or letter to
USDA by mail to: U.S. Department of
Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400
Independence Avenue SW, Washington,
DC 20250–9410 or email: OAC@
usda.gov.
USDA is an equal opportunity
provider, employer, and lender.
List of Subjects
7 CFR Part 407
Acreage allotments, Administrative
practice and procedure, Barley, Corn,
Cotton, Crop insurance, Peanuts,
Reporting and recordkeeping
requirements, Sorghum, Soybeans,
Wheat.
7 CFR Part 457
Acreage allotments, Crop insurance,
Reporting and recordkeeping
requirements.
Final Rule
For the reasons discussed above, FCIC
amends 7 CFR parts 407 and 457,
effective for the 2022 and succeeding
crop years for crops with a contract
change date on or after June 30, 2021,
and for the 2023 and succeeding crop
years for all other crops, as follows:
PART 407—AREA RISK PROTECTION
INSURANCE REGULATIONS
■1. The authority citation for 7 CFR
part 407 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
■2. Amend § 407.9 by:
■a. In section 1:
■i. Revise the definition of ‘‘acreage
reporting date’’;
■ii. Remove the definition of ‘‘NASS’’;
and
■iii. Revise the definition of ‘‘veteran
farmer or rancher;’’
■b. In section 15:
■i. Remove paragraph (e);
■ii. Redesignate paragraphs (f) and (g)
as paragraphs (e) and (f); and
■iii. Revise redesignated paragraph (f).
The revisions read as follows:
§ 407.9 Area risk protection insurance
policy.
* * * * *
1. Definitions
* * * * *
Acreage reporting date. The date
contained in the Special Provisions by
which you are required to submit your
acreage report.
* * * * *
Veteran farmer or rancher.
(1) An individual who has served
active duty in the United States Army,
Navy, Marine Corps, Air Force, or Coast
Guard, including the reserve
components; was discharged or released
under conditions other than
dishonorable; and:
(i) Has not operated a farm or ranch;
(ii) Has operated a farm or ranch for
not more than 5 years; or
(iii) First obtained status as a veteran
during the most recent 5-year period.
(2) A person, other than an
individual, may be eligible for veteran
farmer or rancher benefits if all
substantial beneficial interest holders
qualify individually as a veteran farmer
or rancher in accordance with paragraph
(1) of this definition; except in cases in
which there is only a married couple,
then a veteran and non-veteran spouse
are considered a veteran farmer or
rancher.
* * * * *
15. Yields
* * * * *
(f) Yields used under this insurance
program for a crop may be based on
crop insurance data, other USDA data,
or other data sources, if elected by FCIC.
* * * * *
PART 457—COMMON CROP
INSURANCE REGULATIONS
■3. The authority citation for part 457
continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
■4. Amend § 457.8 as follows:
■a. In section 1 of the ‘‘Common Crop
Insurance Policy,’’ revise the definition
of ‘‘veteran farmer or rancher’’;
■b. In section 14 of the ‘‘Common Crop
Insurance Policy,’’ add paragraph (b)(6);
■c. In section 15 of the ‘‘Common Crop
Insurance Policy,’’ in paragraph (i)(3),
add the phrase ‘‘the introductory
paragraph of section’’ after the phrase
‘‘than determined in’’;
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■d. In section 17 of the ‘‘Common Crop
Insurance Policy,’’ revise paragraph
(f)(1)(iv);
■e. In section 34 of the ‘‘Common Crop
Insurance Policy,’’ add paragraph
(a)(4)(ix); and
■f. In section 37 of the ‘‘Common Crop
Insurance Policy,’’ revise paragraphs (c)
and (e).
The additions and revisions read as
follows:
§ 457.8 The application and policy.
* * * * *
Common Crop Insurance Policy
* * * * *
1. Definitions
* * * * *
Veteran farmer or rancher. (1) An
individual who has served active duty
in the United States Army, Navy,
Marine Corps, Air Force, or Coast
Guard, including the reserve
components; was discharged or released
under conditions other than
dishonorable; and:
(i) Has not operated a farm or ranch;
(ii) Has operated a farm or ranch for
not more than 5 years; or
(iii) First obtained status as a veteran
during the most recent 5-year period.
(2) A person, other than an
individual, may be eligible for veteran
farmer or rancher benefits if all
substantial beneficial interest holders
qualify individually as a veteran farmer
or rancher in accordance with paragraph
(1) of this definition; except in cases in
which there is only a married couple,
then a veteran and non-veteran spouse
are considered a veteran farmer or
rancher.
* * * * *
14. Duties in the Event of Damage, Loss,
Abandonment, Destruction, or
Alternative Use of Crop or Acreage
* * * * *
(b) * * *
(6) You must give us notice in
accordance with section 36(a)(3) to
replace post-quality actual yields for
previous crop years.
* * * * *
17. Prevented Planting
* * * * *
(f) * * *
(1) * * *
(iv) The acreage that was prevented
from being planted constitutes at least
20 acres or 20 percent of the total
insurable acreage in the field and you
provide proof that you intended to plant
another crop, crop type, or follow both
practices on the acreage (including, but
not limited to inputs purchased, applied
or available to apply, or that acreage was
part of a crop rotation).
* * * * *
34. Units
(a) * * *
(4) * * *
(ix) You may elect enterprise units as
allowed by the Crop Provisions if
provided in the actuarial documents.
* * * * *
37. Organic Farming Practices
* * * * *
(c) You must provide the following
organic records, as applicable:
(1) By the acreage reporting date,
except as allowed by section 37(c)(2),
you must have:
(i) For certified organic acreage, a
written certification in effect from a
certifying agent indicating the name of
the entity certified, effective date of
certification, certificate number, types of
commodities certified, and name and
address of the certifying agent (A
certificate issued to a tenant may be
used to qualify a landlord or other
similar arrangement).
(ii) For transitional acreage, a
certificate as described in section
37(c)(1)(i), or written documentation
from a certifying agent indicating an
organic plan is in effect for the acreage.
(iii) For certified organic and
transitional acreage, records from the
certifying agent showing the specific
location of each field of certified
organic, transitional, buffer zone, and
acreage not maintained under organic
management.
(2) If you do not meet the
requirements in section 37(c)(1)(i) or
(ii), you must provide documentation
that you have requested, in writing,
your written certification or organic
plan by the acreage reporting date.
(i) Your certificate or plan must be in
effect prior to the earlier of the end of
the insurance period or when coverage
ends as provided in section 11(b).
(ii) Your acreage will remain insured
under the practice you reported on the
acreage reporting date unless you have
a loss. If you have a loss and do not
have a certificate or plan in place at the
time the claim is finalized in accordance
with the applicable policy provisions,
then your acreage will be insured under
the practice for which it qualifies.
* * * * *
(e) If any acreage qualifies as certified
organic or transitional acreage on the
date you report such acreage, and such
certification is subsequently revoked or
suspended by the certifying agent, or the
certifying agent does not consider the
acreage as transitional acreage for the
remainder of the crop year, that acreage
will remain insured under the reported
practice for which it qualified at the
time the acreage was reported. Any loss
due to failure to comply with organic
standards will be considered an
uninsured cause of loss.
* * * * *
Richard H. Flournoy,
Acting Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2021–13939 Filed 6–29–21; 8:45 am]
BILLING CODE 3410–08–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 741
[NCUA 2020–0114]
RIN 3133–AF30
Capitalization of Interest in Connection
With Loan Workouts and Modifications
AGENCY
: National Credit Union
Administration (NCUA).
ACTION
: Final rule.
SUMMARY
: The NCUA Board (Board) is
amending its regulations to remove the
prohibition on the capitalization of
interest in connection with loan
workouts and modifications. The final
rule also establishes documentation
requirements to help ensure that the
addition of unpaid interest to the
principal balance of a mortgage loan
does not hinder the borrower’s ability to
become current on the loan. The Board
has also taken the opportunity afforded
by the rulemaking to make several
technical changes to the regulations to
improve their clarity and update certain
references. The final rule follows
publication of the December 4, 2020,
proposed rule and takes into
consideration the public comments on
the proposed rule. After careful
consideration, the Board has decided to
adopt the proposed rule without change.
DATES
: Effective July 30, 2021.
FOR FURTHER INFORMATION CONTACT
:
Policy: Alison L. Clark, Chief
Accountant, and Timothy C. Segerson,
Deputy Director, Office of Examinations
and Insurance, at (703) 518–6360; Legal:
Ariel Pereira and Gira Bose, Senior Staff
Attorneys, Office of General Counsel, at
(703) 518–6540.
SUPPLEMENTARY INFORMATION
:
I. Background: The Board’s December 4,
2020, Proposed Rule
II. Legal Authority
III. Discussion of Public Comments Received
on the December 4, 2020, Proposed Rule
IV. This Final Rule
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