Catastrophic Risk Protection Endorsement; Area Risk Protection Insurance Regulations; and Common Crop Insurance Policy Basic Provisions
| Published date | 28 June 2019 |
| Record Number | 2019-13686 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
Federal Register, Volume 84 Issue 125 (Friday, June 28, 2019)
[Federal Register Volume 84, Number 125 (Friday, June 28, 2019)]
[Rules and Regulations]
[Pages 30857-30862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13686]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Rules
and Regulations
[[Page 30857]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 402, 407, and 457
[Docket No. FCIC-19-0002]
RIN 0563-AC61
Catastrophic Risk Protection Endorsement; Area Risk Protection
Insurance Regulations; and Common Crop Insurance Policy Basic
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the
Catastrophic Risk Protection Endorsement, the Area Risk Protection
Insurance (ARPI) Basic Provisions, and the Common Crop Insurance Policy
(CCIP) Basic Provisions to implement the changes mandated by the
Agriculture Improvement Act of 2018 (commonly referred to as the 2018
Farm Bill). This rule revises the provisions regarding the catastrophic
administrative fee, actual production history (APH) yield, crop
production on native sod, and the definition of veteran farmer or
rancher. In addition to the 2018 Farm Bill required changes, FCIC is
changing provisions for premium offsets, electronic delivery of policy
changes, and assigned yields. The changes to the policy made in this
rule are applicable for the 2020 crop year for crops with a contract
change date on or after June 30, 2019. For all crops the changes to the
policy made in this rule are applicable for the 2021 and succeeding
crop years.
DATES:
Effective: This final rule is effective June 30, 2019.
Comment Date: We will consider comments that we receive on this
rule by the close of business August 27, 2019. FCIC will consider these
comments and make changes to the rule if warranted in a subsequent
rulemaking.
ADDRESSES: We invite you to submit comments on this rule. In your
comments, include the date, volume, and page number of this issue of
the Federal Register, and the title of rule. You may submit comments by
any 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-19-0002. Follow the
online instructions for submitting comments.
Mail: Director, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
All comments received, including those received by mail, will be
posted without change and publicly available on http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7730; email [email protected]. Persons with disabilities who
require alternative means of communication should contact the USDA
Target Center at (202) 720-2600 (voice).
SUPPLEMENTARY INFORMATION:
Background
The Risk Management Agency (RMA) and FCIC (terms used
interchangeably) serve America's agricultural producers through
effective, market-based risk management tools to strengthen the
economic stability of agricultural producers and rural communities. RMA
is committed to increasing the availability and effectiveness of
Federal crop insurance as a risk management tool. Approved Insurance
Providers (AIP) sell and service Federal crop insurance policies in
every state and in Puerto Rico through a public-private partnership
with RMA. RMA reinsures the AIPs who share the risks associated with
catastrophic losses due to major weather events. RMA'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 Catastrophic Risk Protection Endorsement, the Area
Risk Protection Insurance (ARPI) Basic Provisions, and the Common Crop
Insurance Policy (CCIP) Basic Provisions to implement the changes
mandated by the 2018 Farm Bill (Pub. L. 115-334). The changes to the
policy made in this rule are applicable for the 2020 crop year for
crops with a contract change date on or after June 30, 2019. For all
crops the changes to the policy made in this rule are applicable for
the 2021 and succeeding crop years.
Listening Session
On February 14, 2019, the Farm Service Agency (FSA), Natural
Resources Conservation Service (NRCS), and RMA published a notice in
the Federal Register (84 FR 4041-4044) announcing a listening session
for initial public input on the changes to existing programs
implemented by the agencies. The purpose of the listening session was
for each agency to take into account stakeholder input when making
discretionary decisions on program implementation. The agencies also
announced an opportunity for the public to make written statements
through March 1, 2019. The listening session was held on February 26,
2019. The Commodity, Credit, and Crop Insurance titles, and parts of
the Conservation, Energy, and Miscellaneous titles were covered during
the listening session.
FSA, NRCS, and RMA received 183 written comments from individuals,
trade groups, other organizations, and State entities. All written
comments are available to the public for review at: https://www.regulations.gov/document?D=USDA-2019-0001-0001. In addition to
program-specific comments, there were recurring overarching comments
about placing a priority on information sharing between agencies for
data collection regarding soil health and conservation practices. The
issue raised in comments about native sod are discussed below in the
section on the
[[Page 30858]]
native sod changes. Comments included suggestions for the
commercialization of industrial hemp, further research of industrial
hemp, and the need to implement the 2018 Farm Bill quickly for the
industrial hemp industry to thrive.
Statements regarding RMA issues outside the scope of this rule that
are not addressed include those about Whole Farm Revenue Protection,
yield data for Agriculture Risk Coverage (ARC) and Price Loss Coverage
(PLC) programs, Dairy Margin Coverage and Livestock Gross Margin-Dairy
programs, specialty crop insurance, and the USDA interagency workgroup
for cover crops. While not related to this rule, the comments will be
considered by RMA when implementing 2018 Farm Bill sections that do not
require regulatory changes.
In general, RMA related listening session comments focused on the
timing of when the 2018 Farm Bill requirements would go into effect.
RMA was urged to issue rules and information as quickly as possible.
Mandatory Farm Bill Provisions
Provisions in the 2018 Farm Bill that require revisions in the FCIC
regulations are discussed below.
Administrative Fee Changes
Section 11110 of the 2018 Farm Bill increased the Catastrophic Risk
Protection Endorsement Administrative Fee from $300 to $655. The
Federal Crop Insurance Act mandates that FCIC offer a catastrophic risk
protection plan to indemnify producers for crop loss due to loss of
yield or prevented planting when the producer is unable to plant other
crops for harvest on the acreage for the crop year due to drought,
flood, or other natural disaster. Catastrophic risk protection offers a
producer coverage for a 50 percent loss in yield, on an individual
yield or area yield basis, indemnified at 55 percent of the expected
market price. FCIC will pay a premium subsidy equal to the premium
established for the coverage provided under this endorsement. However,
producers will pay an administrative fee of $655 for each crop in the
county unless otherwise specified in the Special Provisions. The
administrative fee will be updated in the regulation in 7 CFR 402.4, in
section 6(b).
APH Cup Option
Section 11112 of the 2018 Farm Bill added the regulatory authority
to provide producers with an election to limit the decrease in APH to
not more than 10 percent of the prior crop year's APH (cup), provided
that the production decline was the result of drought, flood, natural
disaster, or other insurable loss; and that FCIC establish actuarially
sound premiums to cover the additional risk. The cup option was
implemented procedurally in FCIC--18010 Crop Insurance Handbook on
December 2017 for 2018 crops with a Contract Change Date of November
30, 2017, or later.
FCIC is adding the cup option in 7 CFR 457.8 section 36(c) in the
CCIP Basic Provisions.
Crop Production on Native Sod
Section 11114 of the 2018 Farm Bill revised the crop production on
native sod provisions related to crop insurance. Most provisions (such
as the penalties, de minimis acreage, applicable States) for native sod
from the Agricultural Act of 2014 (Pub. L. 113-79, 2014 Farm Bill)
remain the same. The 2014 Farm Bill provisions were in effect for
native sod acreage tilled from February 8, 2014, until December 20,
2018, which was the duration of the 2014 Farm Bill. For native sod
acreage tilled after the date of enactment of the 2018 Farm Bill, the
native sod reduction in benefits will apply to any insurable crop
instead of only to annual crops. The reductions will apply for 4
cumulative crop years on the acreage when a crop is insured, with a
limitation of the first 10 years after initial tillage of the acreage.
This means that if the acreage has not met the 4 cumulative crop years
of an insured crop on the acreage within 10 crop years after initially
tilling the native sod acreage, after the 10th crop year the acreage is
no longer subject to the native sod reduction in benefits.
FCIC is revising the definition of ``tilled'' in the regulation in
7 CFR 407.9 in section 1 and in 7 CFR 457.8 in section 1 to remove the
reference to ``annual crops'' as the native sod provisions are now
applicable to any insurable crop rather than just annual crops. FCIC is
revising 7 CFR 407.9 section 5(d) and adding a new section 5(f) and 7
CFR 457.8 section 9(e) and adding a new section 9(g) to specify the
section applies to native sod acreage that has been tilled and planted
during the timeframe of the 2014 Farm Bill until that native sod
acreage has reached 4 crop years of planting. The changes also specify
the section applies to native sod acreage that has been tilled and
planted to an insured crop during 4 cumulative crop years within the
first 10 crop years after initial tillage on native sod acreage
beginning after December 20, 2018 (the date of enactment of the 2018
Farm Bill).
Veteran Farmers or Ranchers
Section 12306 of the 2018 Farm Bill added a definition of ``veteran
farmers or ranchers'' to the Federal Crop Insurance Act and provided
for veteran farmers or ranchers to receive the same benefits as
beginning farmers or ranchers. The definition of ``veteran farmers or
ranchers'' is being added in the regulation in 7 CFR 407.9 in section 1
and in 7 CFR 457.8 in section 1. The benefits for a veteran farmer or
rancher include:
Waiving all CAT and additional coverage policy's
administrative fees as added in the regulation in 7 CFR 402.4 section
6(c), 7 CFR 407.9 section 7(a)(6)(i), and 7 CFR 457.8 section
7(e)(4)(i);
Providing additional premium subsidy 10 percentage points
greater than the premium subsidy identified in the actuarial documents
as added in the regulation in 7 CFR 407.9 section 7(h) and 7 CFR 457.8
section 7(g);
Allowing use of another person's production history of the
specific acreage transferred to the veteran farmer or rancher where the
veteran farmer or rancher was previously involved in the decision
making or physical activities of a farm or ranch operation insured
under CCIP Basic Provisions policies, specifically, FCIC is revising 7
CFR 457.8 section 3(l) to add that notwithstanding any other provision
in section 3, if the insured is a veteran farmer or rancher who was
previously involved in a farming or ranching operation, including
involvement in the decision-making or physical involvement in the
production of the crop or livestock on the farm, for any acreage
obtained by the veteran farmer or rancher, the veteran farmer or
rancher will receive a yield that is the higher of:
[cir] The actual production history of the previous producer of the
crop or livestock on the acreage in which the veteran farmer or rancher
was involved; or
[cir] The applicable transitional yield (T-yield) of the veteran
farmer or rancher; and
Increasing, from 60 to 80 percent of the applicable T-
yield, in the substituted yield for yield adjustment when replacing a
low actual yield due to an insured cause of loss under CCIP Basic
Provisions policies as specified in 7 CFR 457.8 section 36(a)(2).
Additional Changes
In addition to changes statutorily mandated by the 2018 Farm Bill
mentioned above, FCIC is making discretionary changes to the ARPI Basic
Provisions and CCIP Basic Provisions. These changes are described
below.
[[Page 30859]]
The changes to the policy made in this rule are applicable for the
2020 crop year for crops with a contract change date on or after June
30, 2019. For all crops the changes to the policy made in this rule are
applicable for the 2021 and succeeding crop years.
The additional changes to the ARPI Basic Provisions (7 CFR part
407) and the CCIP Basic Provisions (7 CFR part 457) are as follows:
FCIC is revising 7 CFR 407.9 section 2(j) of the ARPI Basic
Provisions and 7 CFR 457.8 section 2(e) of the CCIP Basic Provisions to
clarify the provision is only applicable to another crop policy with
unbilled administrative fees and premium and that loss credits must
first be applied to the policy and crop with the associated claim.
FCIC published a final rule on November 24, 2017, (82 FR 55723-
55734) that revised section 2(j) of the ARPI Basic Provisions and
section 2(e) of the CCIP Basic Provisions to clarify that with the
policyholder's consent the premium and administrative fees can be
offset from any prevented planting or indemnity due the policyholder
even if the offset occurs before the fees are billed. That allowed
insurance providers the latitude to contact the policyholder and
inquire as to whether the policyholder would agree to have the
``unbilled'' administrative fees and premium offset from the remaining
amount of the loss. In response to the 2017 final rule, FCIC received
input from the industry.
Industry input: Comments FCIC received suggested the rule reversed
the longstanding position of allowing pre-billing date claim offsets
without consent for the same crop. AIPs stated the industry has
consistently taken the view that a policyholder's consent is not
required in order to perform a claim offset prior to the billing date
for the same crop. Additionally, AIPs raised concerns that if consent
is required for the same (or any) crop to offset premium, the insured
could push to have the claim paid prior to the billing date and file
for bankruptcy after the claim is paid, which could prevent AIPs from
collecting the premium for the same crop on which it had just paid out
a claim.
Response: The provision as currently written could have unintended
consequences that could negatively impact producers if we interpret
this provision as consent is required for the same (or any) crop to
offset premium. This is because the producers have an expectation that
their premium will be automatically offset from indemnities for the
same crop and may not anticipate paying premium when it is due. If
premium is not received timely, producers are placed on the Ineligible
Tracking System, which is an electronic system to identify persons who
are ineligible to participate in any program as specified in 7 CFR part
400, subpart U.
Therefore, FCIC is revising the provisions as only applicable to
another crop policy with unbilled administrative fees or premium and
that loss credits must first be applied to the policy or crop with the
associated claim.
The specific changes to the Common Crop Insurance Regulations,
Basic Provisions (7 CFR part 457) are as follows:
FCIC is revising the provisions in sections 3(f) and (g) regarding
assigned yields. The industry has expressed concern regarding assigned
yields applying to all units of the crop policy. The assigned yield is
a policy-level penalty that occurs when an insured's supporting
production records do not match their production certification even
when the error only applies to one, or an isolated number of actual
production history databases.
Currently, an assigned yield reduces an insured's annual yields for
the entire crop year, for all units on the policy, to an assigned yield
when any annual yield certified by the insured is incorrect. The
assigned yield will not exceed 75 percent of the insured's prior year's
approved yield. FCIC is revising the language to limit the assigned
yield penalty to only those basic unit(s) effected by the incorrect
certification.
FCIC is revising section 3(g)(2) to allow an insured to correct,
without penalty, inadvertent errors when certifying production.
Inadvertent errors include clear numerical transpositions and similar
errors made by an insured when certifying their production reports.
There are existing regulatory exceptions for inadvertent errors made by
an insured for the application, as well as, exceptions for errors made
by USDA or AIPs for production reporting. This change also allows an
exception for inadvertent producer errors that occur when a producer
certifies their production reports.
FCIC is adding a new section 4(d) and revising section 33 to allow
that when changes are made to the policy provisions, AIPs will send the
changes electronically to the policyholder rather than as a hard copy.
Currently a policyholder may individually elect to receive these
documents electronically. FCIC is revising the provisions to state all
policy provisions, notices, and communications required to be sent by
the AIP to the policyholder will be provided by electronic means,
unless the AIP does not have the ability to transmit such information
to the policyholder by electronic means or the policyholder elects to
receive a paper copy of such information. Therefore, FCIC is adding a
new section 4(d) to specify that not later than 30 days prior to the
cancellation date for the insured crop that the policyholder will be
provided, in accordance with section 33, a copy of the changes to the
Basic Provisions, Crop Provisions, Commodity Exchange Price Provisions,
if applicable, and Special Provisions. In addition, FCIC is adding a
new section 4(e) to specify that acceptance of the changes will be
conclusively presumed in the absence of notice from the policyholder to
change or cancel insurance coverage. FCIC will also make changes
accordingly to the notices required in section 33. These changes will
reduce the burden of excess distribution of paper policy materials
while still allowing policyholders the option to elect to receive a
paper copy.
FCIC is removing the provisions in section 5 regarding exclusion of
yields and moving the provisions to section 36 of the revised CCIP
Basic Provisions.
Because of the various changes to section 36, FCIC is changing the
section heading to ``Changes to Yields'' as this section will now
contain provisions regarding substitution of yields, exclusion of
yields, and yield cups. FCIC is moving the provisions regarding
exclusion of yields that were previously contained in section 5 to
section 36(b).
Effective Date and Notice and Comment
In general, the Administrative Procedure Act (APA, 5 U.S.C. 553)
requires that a notice of proposed rulemaking be published in the
Federal Register for interested persons to be given an opportunity to
participate in the rulemaking through submission of written data,
views, or arguments with or without opportunity for oral presentation
and requires a 30-day delay in the effective date of rules, except when
the rule involves a matter relating to public property, loans, grants,
benefits, or contracts. This rule involves matters relating to
contracts and therefore the requirements in section 553 do not apply.
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) normally requires that an agency delay the effective date of a
major rule for 60 days from the date of publication to allow for
Congressional review. This rule is not a major rule under SBREFA (Pub.
L. 104-121). Therefore, RMA is not required to delay the effective date
for 60 days from the
[[Page 30860]]
date of publication to allow for Congressional review.
This final rule is effective June 30, 2019. Although not required
by APA, RMA has chosen to request comments on this rule.
Executive Orders 12866, 13563, 13771 and 13777
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. Executive Order 13777,
``Enforcing the Regulatory Reform Agenda,'' established a federal
policy to alleviate unnecessary regulatory burdens on the American
people.
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.
Executive Order 13771, ``Reducing Regulation and Controlling
Regulatory Costs,'' requires that in order to manage the private costs
required to comply with Federal regulations that for every new
significant or economically significant regulation issued, the new
costs must be offset by the elimination of at least two prior
regulations. As this rule is designated as not significant, it is not
subject to Executive Order 13771.
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?
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
SBREFA, generally requires an agency to prepare a regulatory analysis
of any rule whenever an agency is required by APA or any other law to
publish a proposed rule, unless the agency certifies that the rule will
not have a significant economic impact on a substantial number of small
entities. This rule is not subject to the Regulatory Flexibility Act
because as noted above, this rule is exempt from APA and no other law
requires that a proposed rule be published for this rulemaking
initiative.
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 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with State and local officials that
would be directly affected by proposed Federal financial assistance.
The objectives of the Executive Order are to foster an
intergovernmental partnership and a strengthened Federalism, by relying
on State and local processes for State and local government
coordination and review of proposed Federal financial assistance and
direct Federal development. For reasons specified in the final rule
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June
24, 1983), the programs and activities in this rule are excluded from
the scope of Executive Order 12372.
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 13132
This rule has been reviewed under Executive Order 13132,
``Federalism.'' The policies contained in this rule do not have any
substantial direct effect on States, on the relationship between the
Federal government and the States, or on the distribution of power and
responsibilities among the various levels of government, except as
required by law. Nor does this rule impose substantial direct
compliance costs on State and local governments. Therefore,
consultation with the States is not required.
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.
FCIC 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, FCIC will work
with the USDA Office of Tribal Relations to ensure meaningful
consultation is provided where changes and additions identified in this
rule are not expressly mandated by the 2018 Farm Bill.
[[Page 30861]]
Unfunded Mandates
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
and 0563-0083.
E-Government Act Compliance
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 purposes.
List of Subjects
7 CFR Part 402
Administrative practice and procedure, Claims, Crop insurance,
Disaster assistance, Fraud, Penalties, Reporting and recordkeeping
requirements.
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 402, 407,
and 457, effective for the 2020 crop year for crops with a contract
change date on or after June 30, 2019, and for the 2021 and succeeding
crop years for all other crops, as follows:
PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT
0
1. The authority citation for 7 CFR part 402 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
2. Amend Sec. 402.4, section 6 as follows:
0
A. In paragraph (b)(1), remove ``$300'' and add ``$655'' in its place;
and
0
B. In paragraph (c), remove the words and punctuation ``rancher'' or
a'' and add the words and punctuation ``rancher,'' ``veteran farmer or
rancher,'' or'' in their place.
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
0
3. The authority citation for 7 CFR part 407 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
4. Amend Sec. 407.9 as follows:
0
A. Amend section 1 as follows:
0
i. In the definition of ``tilled'', remove ``an annual crop'' and add
``a crop'' in their place; and
0
ii. Add the definition of ``veteran farmer or rancher'' in alphabetical
order;
0
B. Amend section 2 as follows:
0
i. In paragraph (j) introductory text, remove ``due'' and add ``owed''
in its place in the first instance where the word occurs in the
paragraph;
0
ii. Remove paragraph (j)(2); and
0
iii. Redesignate paragraph (j)(3) as paragraph (j)(2);
0
C. Amend section 5 as follows:
0
i. Revise paragraph (d), introductory text; and
0
ii. Add paragraph (f);
0
D. Amend section 7 as follows:
0
i. In paragraph (a)(6)(i), add ``, or veteran farmer or rancher'' at
the end of the sentence; and
0
ii. In paragraph (h), remove ``rancher, your'' and add ``rancher, or
veteran farmer or rancher, your'' in their place;
The revisions and additions read in part as follows:
Sec. 407.9 Area risk protection insurance policy.
* * * * *
1. Definitions
* * * * *
Veteran farmer or rancher. An individual who has served on active
duty in the United States Army, Navy, Marine Corps, Air Force, and
Coast Guard, including the reserve components, was discharged or
released under conditions other than dishonorable, and:
(1) Has not operated a farm or ranch;
(2) Has operated a farm or ranch for not more than 5 years; or
(3) First obtained status as a veteran during the most recent 5-
year period.
A person, other than an individual, may be eligible for veteran
farmer or rancher benefits if all substantial beneficial interest
holders qualify as a veteran farmer or rancher. A spouse's veteran
status does not impact whether an individual is considered a veteran
farmer or rancher.
* * * * *
5. Insurable Acreage
* * * * *
(d) Except as provided in section 5(e), and in accordance with
section 5(f), in the states of Iowa, Minnesota, Montana, Nebraska,
North Dakota, or South Dakota, native sod acreage may be insured if the
requirements of section 5(a) have been met but will:
* * * * *
(f) Section 5(d) is applicable during the first 4 crop years of
planting on native sod acreage that has been tilled beginning on
February 8, 2014, and ending on December 20, 2018. Section 5(d) is
applicable during 4 cumulative crop years of insurance within the first
10 crop years after initial tillage on native sod acreage tilled after
December 20, 2018.
PART 457--COMMON CROP INSURANCE REGULATIONS
0
5. The authority citation for part 457 is revised to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
6. Amend Sec. 457.8 as follows:
0
A. Amend section 1 as follows:
0
i. In the definition of ``tilled,'' remove ``an annual crop'' and add
``a crop'' in its place;
0
ii. Add the definition of ``veteran farmer or rancher'' in alphabetical
order;
0
B. Amend section 2 as follows:
0
i. In paragraph (e) introductory text, remove ``due'' and add ``owed''
in its place in the first instance where the word occurs;
0
ii. Remove paragraph (e)(2); and
0
iii. Redesignate paragraph (e)(3) as paragraph (e)(2);
0
C. Amend section 3 as follows:
[[Page 30862]]
0
i. In paragraph (f)(1), remove ``for the previous crop year'' in the
first sentence;
0
ii. In paragraph (g)(2)(i) remove ``or'';
0
iii. Revise paragraph (g)(2)(ii);
0
iv. Add paragraph (g)(2)(iii);
0
v. Revise paragraphs (g)(3) and (g)(4)(i); and
0
vi. In paragraph (l), remove the word ``rancher'' and add ``rancher, or
veteran farmer or rancher'' in its place;
0
D. Amend section 4 as follows:
0
i. Revise paragraph (d); and
0
ii. Add paragraph (e);
0
E. Remove and reserve section 5;
0
F. Amend section 7 as follows:
0
i. In paragraph (e)(4)(i), remove the word ``rancher'' and add
``rancher, or veteran farmer or rancher'' in its place; and
0
ii. In paragraph (g), remove the word ``rancher'' and add ``rancher, or
veteran farmer or rancher,'' in its place;
0
G. Amend section 9 as follows:
0
i. Revise paragraph (e), introductory text; and
0
ii. Add paragraph (g);
0
H. Amend section 33 as follows:
0
i. Revise paragraph (b);
0
I. Amend section 36 as follows:
0
i. Revise the heading;
0
ii. Redesignate paragraphs (b) through (e) as paragraphs (a)(1) through
(4);
0
iii. In newly redesignated paragraph (a)(2), remove ``rancher'' and add
``rancher, or veteran farmer or rancher'' in its place; and
0
iv. Add new paragraphs (b) and (c).
The revisions and additions read as follows:
Sec. 457.8 The application and policy.
* * * * *
Common Crop Insurance Policy
* * * * *
1. Definitions
* * * * *
Veteran farmer or rancher. An individual who has served active duty
in the United States Army, Navy, Marine Corps, Air Force, and Coast
Guard, including the reserve components, was discharged or released
under conditions other than dishonorable, and:
(1) Has not operated a farm or ranch;
(2) Has operated a farm or ranch for not more than 5 years; or
(3) First obtained status as a veteran during the most recent 5-
year period.
A person, other than an individual, may be eligible for veteran
farmer or rancher benefits if all substantial beneficial interest
holders qualify as a veteran farmer or rancher. A spouse's veteran
status does not impact whether an individual is considered a veteran
farmer or rancher.
* * * * *
3. Insurance Guarantees, Coverage Levels, and Prices
* * * * *
(g) * * *
(2) * * *
(ii) Because the incorrect information was determined to be
inadvertently reported by you (Simply stating the error was inadvertent
is not sufficient to prove the error was inadvertent); or
(iii) Because the incorrect information was the result of our error
or the error of someone from USDA.
(3) If you do not have written verifiable records to support the
information you certified on your production report, you will receive
an assigned yield in accordance with section 3(f)(1) and 7 CFR part
400, subpart G, for the applicable units, determined by us, for those
crop years for which you do not have such records. If the conditions of
section 34(c)(3) are not met, you will receive an assigned yield for
the applicable basic unit.
(4) * * *
(i) We will correct your approved yield, in accordance with FCIC
procedure, by assigning a yield or by using the yield we determine to
be correct, for the crop year such information is not correct, and all
subsequent crop years;
* * * * *
4. Contract Changes
* * * * *
(d) Not later than 30 days prior to the cancellation date for the
insured crop you will be provided, in accordance with section 33, a
copy of the changes to the Basic Provisions, Crop Provisions, Commodity
Exchange Price Provisions, if applicable, and Special Provisions.
(e) Acceptance of the changes will be conclusively presumed in the
absence of notice from you to change or cancel your insurance coverage.
* * * * *
9. Insurable Acreage
* * * * *
(e) Except as provided in section 9(f), and in accordance with
section 9(g), in the states of Iowa, Minnesota, Montana, Nebraska,
North Dakota, or South Dakota, native sod acreage may be insured if the
requirements of section 9(a) have been met but will:
* * * * *
(g) Section 9(e) is applicable during the first 4 crop years of
planting on native sod acreage that has been tilled beginning on
February 8, 2014, and ending on December 20, 2018. Section 9(e) is
applicable during 4 cumulative crop years of insurance within the first
10 crop years after initial tillage on native sod acreage tilled after
December 20, 2018.
* * * * *
33. Notices
* * * * *
(b) All policy provisions, notices, and communications that we send
to you will be:
(1) Provided by electronic means, unless:
(i) We do not have the ability to transmit such information to you
by electronic means; or
(ii) You elect to receive a paper copy of such information;
(2) Sent to the location specified in your records with your crop
insurance agent; and
(3) Will be conclusively presumed to have been received by you.
* * * * *
36. Changes to Yields
* * * * *
(b) If provided in the actuarial documents, you may elect to
exclude any actual yield for any crop year when FCIC determines for a
county, or its contiguous counties, the per planted acre yield was at
least 50 percent below the simple average of the per planted acre yield
for the crop in the county for the previous 10 consecutive crop years.
(c) If provided in the actuarial documents, you may elect to limit
a reduction to the approved APH yield to a maximum decline of 10
percent of the previous crop year's approved APH yield when such
reduction is due to a decline in production resulting from a natural
disaster or other insurable loss, as provided in FCIC procedures.
Martin R. Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2019-13686 Filed 6-27-19; 8:45 am]
BILLING CODE 3410-08-P
