Common Crop Insurance Regulations; Forage Production Crop Insurance Provisions and Forage Seeding Crop Insurance Provisions
| Published date | 30 April 2020 |
| Record Number | 2020-08708 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
Federal Register, Volume 85 Issue 84 (Thursday, April 30, 2020)
[Federal Register Volume 85, Number 84 (Thursday, April 30, 2020)]
[Rules and Regulations]
[Pages 23893-23902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08708]
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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. 85, No. 84 / Thursday, April 30, 2020 / Rules
and Regulations
[[Page 23893]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket ID FCIC-20-0003]
RIN 0563-AC67
Common Crop Insurance Regulations; Forage Production Crop
Insurance Provisions and Forage Seeding Crop Insurance 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
Common Crop Insurance Regulations, Forage Production Crop Insurance
Provisions and Forage Seeding Crop Insurance Provisions. The intended
effect of this action is to update existing policy provisions and
definitions to better reflect current agricultural practices and allow
for variations in insurance provisions based on regionally-specific
agronomic conditions and potential future expansions. The changes are
to be effective for the 2021 and succeeding crop years.
DATES: Effective date: The Forage Seeding amendments to 7 CFR 457.151
are effective April 30, 2020, and the Forage Production amendments to 7
CFR 457.117 are effective June 30, 2020. Comment date: We will consider
comments that we receive on this rule until the close of business June
29, 2020. 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-20-0003. 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.
Privacy Act: Anyone is able to search the electronic form of all
comments received for any dockets by the name of the person submitting
the comment (or signing the comment, if submitted on behalf of an
association, business, labor union, etc.). Interested persons may
review the complete User Notice and Privacy Notice for Regulations.gov
at http://www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; Product Administration
and Standards Division, Risk Management Agency, United States
Department of Agriculture, Beacon Facility, Stop 0812, Room 7829, P.O.
Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730; email
[email protected].
SUPPLEMENTARY INFORMATION:
Forage Production Background
FCIC amends the Common Crop Insurance Regulations (7 CFR part 457)
by revising 7 CFR 457.117 Forage Production Crop Insurance Provisions,
to be effective for the 2021 and succeeding crop years. The intended
effect of this action is to ensure cohesiveness and continual coverage
between the Forage Seeding and Forage Production Crop Insurance
Provisions.
The changes are as follows:
1. FCIC is removing the paragraph immediately preceding section 1,
which refers to the order of priority if a conflict exists among the
policy provisions. This same provision is contained in the Common Crop
Insurance Policy, Basic Provisions (``Basic Provisions''). Therefore,
the appearance here is duplicative and should be removed from the Crop
Provisions.
2. Section 1--FCIC is revising the definition of ``adequate
stand.'' The new definition will rely upon the number of live alfalfa
stems for making loss determinations for forage containing more than 60
percent alfalfa. Loss determinations for forage types that contain less
than 60 percent alfalfa or no alfalfa at all, such as red clover, will
be based upon the normal planting density because there is no
demonstrable correlation between future yield and the number of live
alfalfa stems when the forage type does not contain at least 60 percent
alfalfa.
FCIC is revising the definition of ``fall planted'' by adding the
phrase, ``except when specified in the Special Provisions,'' following
the phrase, ``A forage crop seeded after June 30,'' to allow FCIC to
provide area-specific dates that have distinctions outside of this
range. For example, Maine is currently recognized as having a single
growing season with planting dates that begin before June 30 but that
can extend beyond June 30, which is inconsistent with existing
definitions for ``spring planted'' and ``fall planted.'' This change
also allows FCIC to be responsive to new or evolving regional
conditions as needed in the future.
FCIC is adding the definition of ``normal planting density.'' The
new definition will utilize the former definition of adequate stand to
be ``the minimum number of live plants per square foot as shown in the
Special Provisions.'' The normal planting density is more appropriate
for measuring successful establishment of forage with less than 60
percent alfalfa ground cover.
FCIC is revising the definition of ``spring planted'' to include a
reference to the Special Provisions. The revised definition adds the
phrase ``except when specified in the Special Provisions,'' following
the phrase ``A forage crop seeded before July 1,'' to allow FCIC to
provide area specific dates that have distinctions outside of this
range. This change allows FCIC to be responsive to new or evolving
regional conditions as needed in the future.
FCIC is revising the definition of ``Year of establishment'' by
moving the sentences ``Insurance under this policy does not attach
until after the year of establishment'' and ``Insurance during the year
of establishment may be
[[Page 23894]]
available under the forage seeding policy'' to the end of the
definition. FCIC is reordering this definition to reduce confusion and
clear up potential misunderstandings by reorganizing the definition in
a more logical order.
3. Section 2--FCIC is revising the section heading to state
``Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities.'' FCIC is revising this section heading to correct a typo
and simplify the heading.
FCIC is removing the phrase, ``(Insurance Guarantees, Coverage
Levels, and Prices for Determining Indemnities)'' when referring to
section 3 of the Basic Provisions because the parenthetical section
name is unnecessary and removing these titles will prevent FCIC from
having to revise the Crop Provisions if section titles change in the
Basic Provisions. FCIC is also removing the parenthetical reference to
the Basic Provisions' section number, ``(Sec. 457.8)'' to be
consistent throughout the policy.
FCIC is revising section 2(a) by stating the price elections are
found in the ``actuarial documents,'' not the ``special provisions.''
FCIC is replacing this term as price elections are referenced in
actuarial documents, not the special provisions.
4. Section 3--FCIC is removing the phrase, ``(Contract Changes)''
when referring to section 4 of the Basic Provisions because the
parenthetical section name is unnecessary and removing these titles
will prevent FCIC from having to revise the Crop Provisions if section
titles change in the Basic Provisions. FCIC is also removing the
parenthetical reference to the Basic Provisions' section number,
``(Sec. 457.8)'' to be consistent throughout the policy.
5. Section 4--FCIC is revising the cancellation and termination
dates for Arizona from September 30 to October 31, to align the dates
with those for California because Arizona is agronomically similar to
California. FCIC is also revising the cancellation and termination
dates for Nevada and Utah from October 31 to September 30 because
insurance attaches October 16 and having a September sales closing date
accommodates the insurance attachment date.
6. Section 6--FCIC is revising Section 6(a), by replacing paragraph
(2) to clarify that the crop must not be intended to be grazed and
cannot be grazed at any time during the insurance period to be
insurable. This clarification ensures that insureds will not graze the
stand in lieu of harvesting it and claim an indemnity for the harvested
shortfall. FCIC is also adding paragraph (3) to indicate that the
insured crop will include all forage that follows a year of
establishment that results in an adequate stand as shown in the Special
Provisions. This clarification is provided as Forage Production is an
Actual Production History (APH) plan of insurance that is based on
actual harvest of the forage acreage following the year of
establishment.
FCIC is revising Section 6(b) by removing the phrase, ``(Insured
Crop)'' when referring to section 8 of the Basic Provisions because the
parenthetical section name is unnecessary and removing these titles
will prevent FCIC from having to revise the Crop Provisions if section
titles change in the Basic Provisions. FCIC is also removing the
parenthetical reference to the Basic Provisions' section number,
``(Sec. 457.8)'' to be consistent throughout the policy.
7. Section 7--FCIC is removing the phrase, ``(Insurance Period)''
when referring to section 11 of the Basic Provisions because the
parenthetical section name is unnecessary and removing these titles
will prevent FCIC from having to revise the Crop Provisions if section
titles change in the Basic Provisions. FCIC is also removing the
parenthetical reference to the Basic Provisions' section number,
``(Sec. 457.8)'' to be consistent throughout the policy.
FCIC is also removing all state and county references in Section
7(a) and 7(b)(6), Insurance Period, and instead refer to the attachment
date and end of insurance period date shown in the actuarial documents
to simplify the provision and allow FCIC to provide area specific
dates, allow for future program expansion, and allow FCIC to continue
to be responsive to new or evolving regional conditions as needed in
the future.
FCIC is changing section 7(b) to state ``forage production
insurance'' instead of ``insurance'' to provide clarity and to clear up
potential misunderstandings.
FCIC is removing section 7(c) as the Forage Production Winter
Coverage Endorsement is currently not an insurable coverage option.
8. Section 8--FCIC is revising Section 8, Causes of Loss by
removing the phrase, ``(Causes of Loss)'' when referring to section 12
of the Basic Provisions because the parenthetical section name is
unnecessary and removing these titles will prevent FCIC from having to
revise the Crop Provisions if section titles change in the Basic
Provisions. FCIC is also removing the parenthetical reference to the
Basic Provisions' section number, ``(Sec. 457.8)'' to be consistent
throughout the policy.
FCIC is also revising section 8(b) to state that we will not insure
against damage of loss of production that occurs after ``harvest''
instead of after ``removal from the windrow''. The two phrases are
interchangeable but using the word ``harvest'' will apply consistent
use of the definition of harvest throughout the policy.
9. Section 9--FCIC is revising Section 9(a) to replace ``harvest''
with ``cutting''. The section will state that the producer must notify
the approved insurance provider within 3 days of the date cutting
should have started if the insured crop will not be harvested. The
definition of cutting is more appropriate than harvest in this instance
as harvest requires removal of the forage from the windrow or field,
and cutting is the severance of the forage plant from its roots.
10. Section 10--FCIC is correcting references throughout Section
10(b) to reference Section 10 instead of Section 11. FCIC is also
providing grammatical edits to example 1 and example 2 of Section 10.
FCIC is revising section 10(f) by removing the phrase,
``(Production Included in Determining Indemnities)'' when referring to
section 15 of the Basic Provisions because the parenthetical section
name is unnecessary and removing these titles will prevent FCIC from
having to revise the Crop Provisions if section titles change in the
Basic Provisions. FCIC is also removing the parenthetical reference to
the Basic Provisions' section number, ``(Sec. 457.8)'' to be
consistent throughout the policy.
Forage Seeding Background
FCIC amends the Common Crop Insurance Regulations (7 CFR part 457)
by revising 7 CFR 457.151 Forage Seeding Crop Insurance Provisions, to
be effective for the 2021 and succeeding crop years. The intended
effect of this action is to update existing policy provisions and
definitions to better reflect current agricultural practices and allow
for variations in insurance provisions based on regional agronomic
conditions and potential future expansions.
The changes are as follows:
1. FCIC is removing the paragraph immediately preceding section 1,
which refers to the order of priority if a conflict exists among the
policy provisions. This same provision is contained in the Common Crop
Insurance Policy, Basic Provisions (``Basic Provisions''). Therefore,
the appearance here is duplicative and should be removed from the Crop
Provisions.
2. Section 1--FCIC is adding the definition of ``adequate stand.''
The new definition will allow RMA to revise loss adjustment procedures
to rely upon the number of live alfalfa stems rather than
[[Page 23895]]
the number of live plants (normal stand) for making loss determinations
for forage containing more than 60 percent alfalfa. Plants can have
more than one stem. Extension research across major forage growing
areas has demonstrated that the number of live alfalfa stems is more
closely correlated with future yield than the number of live plants
when alfalfa is the dominant component of the forage mixture. Loss
determinations for forage types that contain less than 60 percent
alfalfa or no alfalfa at all, such as red clover, will have no change
to existing loss adjustment procedures and, as stated below, will be
based upon the normal planting density because there is no demonstrable
correlation between future yield and the number of live alfalfa stems
when the forage type does not contain at least 60 percent alfalfa.
FCIC is adding the definition of ``amount of insurance.'' The term
``amount of insurance'' refers to the dollar amount of insurance per
acre obtained by multiplying the reference maximum dollar amount shown
in the actuarial documents by the coverage level percentage elected by
the insured. FCIC adds this definition to provide clarity because the
term is used multiple times in the Crop Provisions but is not defined.
FCIC is removing the definition of ``nurse crop (companion crop)''
and adding the definition of ``companion crop''. FCIC also replaces the
definition ``nurse crop (companion crop)'' with the term ``companion
crop'' throughout the Crop Provisions. FCIC replaces this definition to
reduce ambiguity and increase clarity by using one term instead of
referring to ``nurse crop'' and ``companion crop'' interchangeably.
FCIC is revising the definition of ``fall planted'' by adding the
phrase ``except when specified in the Special Provisions,'' following
the phrase ``A forage crop seeded after June 30'' to allow FCIC to
provide area-specific dates that have distinctions outside of this
range. For example, Maine is currently recognized as having a single
growing season with planting dates that begin before June 30 but that
can extend beyond June 30, which is inconsistent with existing
definitions for ``spring planted'' and ``fall planted.'' This change
also allows FCIC to be responsive to new or evolving regional
conditions as needed in the future.
FCIC is revising the definition of ``good farming practices.'' The
revised definition adds the phrase ``in lieu of the definition in the
Basic Provisions'' to clarify that the ``good farming practices''
definition in the Crop Provisions will replace the definition contained
in the Basic Provisions. The definition in the Basic Provisions is not
appropriate for forage seeding because it includes references to the
insured's approved yield, but these Crop Provisions provide coverage
for a failed forage seeding, not for yield losses below an insured's
approved yield. The revised definition also replaces the phrase
``normal stand'' with ``adequate stand,'' because the adequate stand
will be used to determine if the forage seeding was successful. The
revised definition also replaces the phrase ``and are those recognized
by the National Institute of Food and Agriculture as compatible with
agronomic and weather conditions in the county'' with ``which are those
generally recognized by agricultural experts or organic agricultural
experts, as compatible with agronomic and weather conditions for the
area'' to be more consistent with the definition of ``good farming
practices'' contained in the Basic Provisions (even though the
definition in the Basic Provisions is no longer applicable, some of the
same principles apply). These changes are intended to ensure that the
definition is consistent with the practices applicable to forage
seeding crops.
FCIC is revising the definition of ``harvest'' to remove the word
``only'' before ``grazed'' to clarify that the acreage does not have to
be exclusively grazed to not be considered harvested. If the acreage is
grazed at any time regardless of whether the crop is removed from the
field, it is not considered harvested.
FCIC is removing the definition of ``normal stand'' and replacing
it with the definition of ``normal planting density.'' The new
definition of ``normal planting density'' simplifies the previous
definition of ``normal stand'' by replacing the phrase ``a population
of live plants per square foot that meets the minimum required number
of plants'' with the more concise phrase ``the minimum number of live
plants per square foot.'' The normal planting density will be used to
determine if the stand qualifies for replanting payments. The normal
planting density will result in more accurate replanting payments than
basing replant determinations on an adequate stand because not all
stems may have emerged when replanting determinations are made.
FCIC is revising the definition of ``planted acreage'' by removing
the reference to ``provisions in section 1'' and replacing it with the
more specific phrase ``definition in''. This is not a substantive
change, but it makes it consistent with other definitions that refer to
the definitions in the Basic Provisions.
FCIC is revising the definition of ``replanting'' by removing the
duplicative language that is already contained in the Basic Provisions.
FCIC is revising the remaining sentence of the current definition by
adding the phrase ``in addition to the definition in the Basic
Provisions'' to clarify that the ``replanting'' definition in the Crop
Provisions will add to the definition contained in the Basic
Provisions, substituting the word ``replacing'' with the word
``placing'' as it is a more accurate term for seeding an existing
stand, and replacing the phrase ``which results in'' with the word
``using'' to convey that using a reduced seeding rate to replace seed
into an existing damaged stand will not be considered replanting.
FCIC is revising the definition of ``sales closing date.'' The
revised definition replaces the term ``fall seeded'' with ``fall
planted'' and ``spring seeded'' with ``spring planted.'' These terms
are used interchangeably, and this change will add clarity and reduce
confusion because ``fall planted'' and ``spring planted'' are defined
within the policy, but ``fall seeded'' and ``spring seeded'' are not.
FCIC is revising the definition of ``spring planted.'' The revised
definition adds the phrase ``except when specified in the Special
Provisions,'' following the phrase ``A forage crop seeded before July
1,'' to allow FCIC to provide area specific dates that have
distinctions outside of this range. For example, Maine is currently
recognized as having a single growing season with planting dates that
begin before June 30 but that can extend beyond June 30, which is
inconsistent with existing definitions for ``spring planted'' and
``fall planted''. This change also allows FCIC to be responsive to new
or evolving regional conditions as needed in the future. FCIC proposes
this change to reduce ambiguity and increase clarity because the
definition of ``crop year'' references the calendar year of the planted
acreage.
3. Section 3--FCIC is revising section 3(a) and 3(b) by removing
the phrase, ``(Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities)'' when referring to section 3 of the Basic
Provisions because the parenthetical section name is unnecessary and
removing these titles will prevent FCIC from having to revise the Crop
Provisions if section titles change in the Basic Provisions. FCIC is
also removing the parenthetical reference to the Basic Provisions'
section number, ``(Sec. 457.8)'' to be consistent throughout the
policy.
[[Page 23896]]
FCIC is also revising section 3 to clarify the circumstances under
which a producer can make changes to their insurance in counties that
have both fall and spring sales closing dates (often referred to as
``dual counties''). Producers who do not plant any fall planted acreage
may purchase or revise their insurance coverage until the spring
(later) sales closing date. Producers who plant fall planted acreage
may not revise their coverage at the spring sales closing date and may
not purchase insurance on the spring planted acreage if no coverage was
purchased on the fall planted acreage. These conditions mirror those of
other insurance programs that provide coverage for both fall planted
and spring planted acreage in the same county, but the conditions are
new to the Forage Seeding insurance policy.
4. Section 5--FCIC is replacing the cancellation and termination
date table with a new date table. The new dates allow for expansion of
the fall planted practice and align forage seeding cancellation and
termination dates with the dates for other fall planted crops in each
state. Maine's cancellation and termination dates will remain unchanged
at March 15 to allow time after premium billing for a termination
decision to be made. In all other states, the cancellation date will be
July 31 and termination date will be September 30 to allow time after
premium billing for a termination decision to be made.
5. Section 6--FCIC is replacing the term ``acreage report date''
with the term ``acreage reporting date.'' FCIC is making this change
because the term ``acreage reporting date'' is defined in the Basic
Provisions and also appears in the Special Provisions.
6. Section 7--FCIC is revising section 8 by removing the phrase,
``(Insured Crop)'' when referring to section 8 of the Basic Provisions
because the parenthetical section name is unnecessary and removing
these titles will prevent FCIC from having to revise the Crop
Provisions if section titles change in the Basic Provisions. FCIC is
also removing the parenthetical reference to the Basic Provisions'
section number, ``(Sec. 457.8)'' to be consistent throughout the
policy.
FCIC is also replacing ``a normal stand'' with ``an adequate
stand'' and ``nurse crops'' with ``companion crops'' to incorporate the
references to the newly defined terms stated above, in Section 1.
7. Section 8--FCIC is revising section 8(a) to simplify this
section by removing references to states and counties and applying the
same replanting requirements to all insurable areas. FCIC is removing
section 8(b) which requires some California counties to replant if
damage occurred anytime within the crop year, compared to all other
areas, where replanting is only required for damage that occurred
before the final planting date. This change was done concurrently with
revisions to section 11, which outlines when replanting payments are
allowed based on region and spring or fall planting. While these
changes will simplify the Crop Provisions by streamlining requirements
for all areas, cases may arise that necessitate different requirements
for localized geographic areas. Therefore, FCIC is also allowing these
provisions to be modified at the county-level in the Special Provisions
to allow FCIC greater flexibility in determining regional specific
distinctions for replanting requirements and to protect program
integrity and insured interests by allowing FCIC, with assistance from
forage subject matter experts and regional offices, to address regional
specific production practices. FCIC is also replacing the phrase ``a
normal stand'' with ``the normal planting density,'' consistent with
the changes above regarding the definition change.
8. Section 9--FCIC is revising section 9 by removing the phrase,
``(Insurance Period)'' when referring to section 11 of the Basic
Provisions because the parenthetical section name is unnecessary and
removing these titles will prevent FCIC from having to revise the Crop
Provisions if section titles change in the Basic Provisions. FCIC is
also removing the parenthetical reference to the Basic Provisions'
section number, ``(Sec. 457.8)'' to be consistent throughout the
policy.
FCIC is revising section 9(c) to be grammatically correct.
FCIC is also removing all state and county specific end of
insurance dates in 9(g) and instead referring to the end of insurance
period date shown in the actuarial documents. This change will simplify
the provision and allow FCIC to provide area specific dates, allow for
future program expansion, and allow FCIC to continue to be responsive
to new or evolving regional conditions as needed in the future.
9. Section 10--FCIC is revising section 10 by removing the phrase,
``(Causes of Loss)'' when referring to section 12 of the Basic
Provisions because the parenthetical section name is unnecessary and
removing these titles will prevent FCIC from having to revise the Crop
Provisions if section titles change in the Basic Provisions. FCIC is
also removing the parenthetical reference to the Basic Provisions'
section number, ``(Sec. 457.8)'' to be consistent throughout the
policy.
FCIC is replacing the phrase ``a stand of forage that occur'' with
the phrase ``an adequate stand that occurs.'' This change reduces
ambiguity and clarifies the provisions because ``adequate stand'' is a
defined term but ``stand of forage'' is not, which could lead to
different results when determining losses.
10. Section 11--In section 11(a), FCIC is moving the phrase
``unless specified otherwise in the Special Provisions,'' from
paragraph (a)(1) (addressing California only) to the main paragraph
(addressing all areas) to allow FCIC greater flexibility in determining
regional specific distinctions for replanting payments and to protect
program integrity and insured interests by allowing FCIC, with
assistance from forage subject matter experts and regional offices, to
address regional specific production practices.
FCIC is moving the phrase ``It is practical to replant;'' from
paragraph (a)(2)(iii) (addressing Lassen, Modoc, Mono, Shasta, Siskiyou
Counties, California and all other states) to the paragraph 11(a)(1)
(addressing all areas). FCIC is moving this phrase to consistently
apply the requirement that it be practical to replant in order to
receive a replanting payment across all counties and states.
In section 11(a)(2), FCIC is moving the phrase ``We give written
consent to replant;'' from paragraph (a)(2)(iv) (addressing Lassen,
Modoc, Mono, Shasta, Siskiyou Counties, California and all other
states) to the paragraph 11(a)(2) (addressing all areas). FCIC is
moving this phrase to require written consent by approved insurance
providers as a requirement of replanting payments across all counties
and states. FCIC is renumbering subsequent paragraphs.
In the newly designated section 11(a)(3) FCIC is replacing the
phrase ``within the insurance period'' with the phrase ``before the
spring final planting date in the actuarial documents.'' FCIC is
replacing this phrase so that allowable replanting payments correlate
with replanting requirements. Specifically, this change corresponds
with the removal of section 8(b), which removed the replanting
requirement in California counties for damage occurring after the
spring final planting date. Therefore, the spring final planting date
is a more appropriate timeframe for defining when replanting payments
are available. FCIC is replacing ``a normal stand'' with ``the normal
planting density'' consistent with the changes made above.
[[Page 23897]]
FCIC is revising the newly designated section 11(a)(4) to remove
the list of specific California counties. This list is not needed
because the Special Provisions will include any county differences in
replanting payment provisions.
FCIC is removing section 11(a)(4)(i), renumbering subsequent
paragraphs, and adding the phrase ``spring or'' before ``fall planted''
in the newly designated section 11(a)(4)(i) to extend replanting
payment eligibility to include both fall and spring planted practices,
as opposed to the current provisions that allowed replanting only for a
failed fall seeding in counties that designated both fall and spring
final planting dates. FCIC is adding this language in order to allow
replanting payments for producers engaged in the spring planted
practice. A producer that plants a forage crop in the spring suffers
the same financial consequences as a producer of a fall planted crop,
if that crop fails to emerge or suffers damage and needs to be
replanted. Therefore, FCIC is expanding coverage to allow replanting
payments for spring planted forage as well as fall planted forage. As
the plan requires replanting to maintain the insurance, this will
provide some compensation to cover replanting costs. Additionally, FCIC
is replacing the phrase ``a normal stand'' with the phrase ``the normal
planting density,'' consistent with definition change.
In the newly designated section 11(a)(2)(ii), FCIC is revising the
paragraph to clarify the provision only pertains to the fall planted
practice, because a separate provision is added below to address the
spring planted practice. FCIC is also adding the word ``final'' before
``planting date'' to eliminate ambiguity between planting dates. FCIC
is also correcting the grammar.
FCIC is revising the newly designated section 11(a)(2)(iii) to
provide that if spring planted, the original planting took place after
the earliest planting date shown in the Special Provisions, and the
acreage is replanted by the spring final planting date shown in the
Special Provisions. FCIC is adding this language in order to allow
replanting payments for producers engaged in the spring planted
practice. A producer that plants a forage crop in the spring suffers
the same financial consequences as a producer of a fall planted crop,
if that crop fails to emerge or suffers damage and needs to be
replanted. Therefore, FCIC is expanding coverage to allow replanting
payments for spring planted forage as well as fall planted forage.
Additionally, as the plan requires replanting to maintain the
insurance, this will provide some compensation to cover replanting
costs.
In section 11(b), FCIC is adding ``(a)'' directly after ``section
13'' to more specifically reference section 13(a). This addition
clarifies which specific part of section 13 this provision is
referencing.
11. Section 12--In section 12(a) and 12(b), FCIC is removing the
phrase, ``(Duties in the Event of Damage or Loss)'' when referring to
section 14 of the Basic Provisions because the parenthetical section
name is unnecessary and removing these titles will prevent FCIC from
having to revise the Crop Provisions if section titles change in the
Basic Provisions. FCIC is also removing the parenthetical reference to
the Basic Provisions' section number, ``(Sec. 457.8)'' to be
consistent throughout the policy.
In section 12(b), FCIC is also adding the adjective ``damaged''
before ``fall planted acreage'' and removing the phrase ``that is
damaged'' after the phrase ``fall planted acreage'' to simplify the
language and clarify the provisions.
12. Section 13--FCIC is removing the sub-section designation of
``(a)'' as it is not needed in the introductory paragraph. FCIC is also
adding paragraph designation ``(a)'' and the statement ``Each type and
practice:'' directly following the introductory paragraph in order to
clarify and simplify the section, because the steps for settling a
claim should be followed for each type and practice, and then summed to
any applicable unit.
FCIC is revising section 13(a)(1) to change the phrase,
``Multiplying the insured acreage of each type and practice by the
amount of insurance for the applicable type and practice;'' to,
``Determining the value of all insured acreage by multiplying the
number of insured acres by the dollar amount of insurance;''. This
change is intended to clarify that this is the outcome of the
calculation in this step and to remove reference to type and practices
because type and practice instructions are already stated in 13(a).
FCIC is removing 13(a)(2), because the step for totaling results by
type and practice from 13(a) is moved to the newly designated 13(b).
FCIC is revising section 13(a)(3) to change the phrase,
``multiplying the total acres with an established stand for the insured
acreage of each type and practice in the unit by the amount of
insurance for the applicable type and practice'' to, ``determining the
value of the acreage with no insurable losses, by multiplying the
dollar amount of insurance by the insured acreage that''. This change
is intended to simplify the policy language by removing the term
``established stand,'' which was referenced within the settlement steps
of section 13(b); clarifying the outcome of the calculation in this
step by adding the phrase, ``value of the acreage with no insurable
losses''; and removing the phrase ``for each type and practice''
because this instruction is already stated in 13(a). In addition, FCIC
designates 13(a)(3) as 13(a)(2).
FCIC is moving the settlement steps in section 13(b), previously
referred to as an ``established stand'' to section 13(a)(2)(i)-(iv). In
moving these settlement steps, FCIC is also revising section
13(a)(2)(i)-(iv) to each start with a verb to provide more cohesive
language and reduce redundancy between the introductory text and
subordinate paragraphs.
FCIC is adding a new section 13(a)(3) to provide that determining
the value of the acreage with partial insurable losses, by multiplying
the dollar amount of insurance by the number of insured acres that have
a stand less than 75 percent but more than 55 percent of an adequate
stand, by 50 percent (0.5). This step was previously captured in
section 13(c), which provided that the amount of indemnity on any
spring planted acreage determined in accordance with section 13(a) will
be reduced 50 percent if the stand is less than 75 percent but more
than 55 percent of a normal stand. FCIC is moving this step to section
13(a)(3) so that all steps for settling a claim throughout section 13
are presented in sequential order. FCIC is updating the language of
this step to clarify that the outcome of the calculation in this step
is determining the value of acreage with partial insurable losses by
adding the phrase, ``determining the value of the acreage with partial
insurable losses''. FCIC is also removing reference to spring planted
acreage because the steps for settling a claim are first done by any
applicable unit, which is already defined to allow basic units by
spring planted and fall planted acreage. FCIC is replacing the term ``a
normal stand'' with the term ``an adequate stand,'' consistent with the
new definition. FCIC is removing section 13(c) because it is
incorporated into section 13(a)(3), and it is no longer needed.
FCIC is revising section 13(a)(4), to state ``Adding the results in
section 13(a)(2) and section 13(a)(3);''. This revision calculates the
total value of the acreage with no insurable loss by adding together
the value of acreage with no insurable loss plus the value of acreage
with partial insurable loss. FCIC removes the previous language because
the step for totaling results by type and
[[Page 23898]]
practice from 13(a) is moved to the newly designated 13(b).
FCIC is updating section 13(a)(5) reference of section 13(a)(2) to
section 13(a)(1) and change the words ``result'' to ``results''. This
step will function as subtracting the total value of the acreage with
no insurable loss from the total value of all insured acreage to
determine the total value of acreage with insurable losses. This
calculation will be for each type and practice. FCIC is also removing
the word ``and'' at the end of the section as it is not needed for this
step.
FCIC is revising 13(a)(6) to update the section reference from
section 13(a)(5) to 13(a)(3). FCIC is also adding the word ``and'' at
the end of the section 13(a)(6) to provide a cohesive transition to the
final step for settlement of a claim in 13(b).
FCIC is adding section 13(b) to state ``totaling the results in
section 13(a).'' Totaling results for each type and practice to any
applicable unit was previously included twice in the steps for settling
a claim. With this revision, totaling results for each type and
practice is only performed once.
FCIC is revising the indemnity calculation example to portray the
revised steps for settlement of a claim in section 13. The revised
example demonstrates the difference in calculations when a portion of
the acreage has a stand between 55 and 75 percent of an adequate stand
versus a stand with less than 55 percent of an adequate stand.
Additional revisions to the indemnity calculation example include
replacing each instance of, ``remaining stand of 75 percent or
greater'' with, ``remaining stand of 75 percent of an adequate stand or
greater'' and to replace, ``75% stand or greater'' with, ``75% of an
adequate stand or greater'' to reduce ambiguity and clarify that loss
determinations are to be determined relative to adequate stand. In the
indemnity calculation, FCIC also is replacing ``$100.00'' with ``$100''
and ``$90.00'' with ``90.'' This change simplifies the example
calculations.
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, FCIC is not required to delay the effective
date for 60 days from the date of publication to allow for
Congressional review.
This final rule is effective April 30, 2020. Although not required
by APA, FCIC 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
[[Page 23899]]
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, 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.
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 in 7 CFR Part 457
Acreage allotments, Crop insurance, Reporting and recordkeeping
requirements.
Final Rule
For the reasons discussed above, FCIC amends 7 CFR part 457
effective for the 2021 and succeeding crop years as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
0
1. The authority citation for 7 CFR part 457 is revised to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
0
2. Amend Sec. 457.117 as follows:
0
a. Remove ``2001'' and add ``2021'' in its place in the introductory
text;
0
b. Remove the undesignated paragraph immediately preceding section 1;
0
c. In section 1:
0
i. Revise the definitions of ``Adequate stand'' and ``Fall planted'';
0
ii. Add the definition of ``Normal planting density'' in alphabetical
order; and
0
iii. Revise the definitions of ``Spring planted'' and ``Year of
establishment'';
0
d. Revise sections 2, 3, and 4;
0
e. In section 6:
0
i. Revise paragraphs (a)(1) and (2);
0
ii. Add paragraph (a)(3); and
0
iii. Revise paragraph (b) introductory text;
0
f. In section 7:
0
i. Revise the introductory text and paragraphs (a), (b) introductory
text, and (b)(6); and
0
ii. Remove paragraph (c);
0
g. In section (8), revise paragraphs (a) introductory text and (b);
0
h. In section 9, revise paragraph (a); and
0
i. In section 10:
0
i. Revise paragraphs (b)(2) through (7);
0
ii. In example 1, revise the introductory text and paragraph 1;
0
iii. In example 2, revise the introductory text and paragraphs 1 and 2;
and
0
iv. Revise paragraph (f).
The revisions and additions read as follows:
Sec. 457.117 Forage production crop insurance provisions.
* * * * *
1. Definitions.
Adequate stand. The number shown in the Special Provisions,
representing:
(a) For forage containing 60 percent or more alfalfa, the minimum
required number of live alfalfa stems per square foot that are two
inches or greater in height; or
(b) For forage containing less than 60 percent alfalfa, the normal
planting density.
* * * * *
[[Page 23900]]
Fall planted. A forage crop seeded after June 30, except when
specified in the Special Provisions.
* * * * *
Normal planting density. The minimum number of live plants per
square foot as shown in the Special Provisions.
Spring planted. A forage crop seeded before July 1, except when
specified in the Special Provisions.
* * * * *
Year of establishment. The period between seeding and when the
forage crop has developed an adequate stand. The year of establishment
is determined by the date of seeding. The year of establishment for
spring planted forage is designated by the calendar year in which
seeding occurred. The year of establishment for fall planted forage is
designated by the calendar year after the year in which the crop was
planted. Insurance under this policy does not attach until after the
year of establishment. Insurance during the year of establishment may
be available under the forage seeding policy.
2. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may only select one price election for all the forage in
the county insured under this policy unless the actuarial documents
provide different price elections by type, in which case you may select
one price election for each forage type designated in the actuarial
documents. The price elections you choose for each type must have the
same percentage relationship to the maximum price offered by us for
each type. For example, if you choose 100 percent of the maximum price
election for a specific type, you must also choose 100 percent of the
maximum price election for all other types.
(b) You must report the total production harvested from insurable
acreage for all cuttings for each unit by the production reporting
date.
(c) Separate guarantees will be determined by forage type, as
applicable.
3. Contract Changes.
In accordance with section 4 of the Basic Provisions, the contract
change date is June 30 preceding the cancellation date.
4. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
Cancellation/ termination
State date
------------------------------------------------------------------------
Arizona and California.................... October 31.
All other states.......................... September 30.
------------------------------------------------------------------------
* * * * *
6. Insured Crop.
(a) * * *
(1) In which you have a share;
(2) That is not grown with the intent to be grazed, or grazed at
any time during the insurance period; and
(3) That follows a year of establishment that results in an
adequate stand as shown in the Special Provisions.
(b) In addition to the crops listed as not insured in section 8 of
the Basic Provisions, we will not insure any forage that:
* * * * *
7. Insurance Period.
In lieu of the provisions of section 11 of the Basic Provisions:
(a) Insurance attaches on acreage with an adequate stand on the
applicable date shown in the actuarial documents; and
(b) Forage production insurance ends at the earliest of:
* * * * *
(6) The end of the insurance period date shown in the actuarial
documents.
8. Causes of Loss.
(a) In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes of
loss that occur during the insurance period:
* * * * *
(b) In addition to the causes of loss specifically excluded in
section 12 of the Basic Provisions, we will not insure against damage
of loss of production that occurs after harvest.
9. Duties in the Event of Damage or Loss.
* * * * *
(a) You must notify us within 3 days of the date cutting should
have started if the insured crop will not be harvested;
* * * * *
10. Settlement of Claim.
* * * * *
(b) * * *
(2) Multiplying each result in section 10(b)(1) by the respective
price election you selected;
(3) Totaling the results of each crop type in section 10(b)(2);
(4) Multiplying the total production to be counted of each type, if
applicable, (see section 10(c)) by the respective price election you
selected;
(5) Totaling the results of each crop type in section 10(b)(4);
(6) Subtracting the result in section 10(b)(5) from the result in
section 10(b)(3); and
(7) Multiplying the result in section 10(b)(6) by your share.
Example 1
Assume you have a 100 percent share in 100 acres of type A forage
in the unit, with a guarantee of 3.0 tons per acre and a price election
of $65 per ton. Due to adverse weather you were only able to harvest
50.0 tons. Your indemnity would be calculated as follows:
1. 100 acres type A x 3 tons = 300-ton guarantee;
* * * * *
Example 2
Assume you also have a 100 percent share in 100 acres of type B
forage in the same unit, with a guarantee of 1.0 ton per acre and a
price election of $50 per ton. Due to adverse weather you were only
able to harvest 5.0 tons. Your total indemnity for forage production
for both types A and B in the same unit would be calculated as follows:
1. 100 acres x 3 tons = 300-ton guarantee for type A and 100 acres
x 1 ton = 100-ton guarantee for type B;
2. 300-ton guarantee x $65 price election = $19,500 total value of
the guarantee for type A and 100-ton guarantee x $50 price election =
$5,000 total value of the guarantee for type B;
* * * * *
(f) In addition to the provisions of section 15 of the Basic
Provisions, we may determine the amount of production of any
unharvested forage on the basis of our field appraisals conducted after
the normal time for each cutting for the area.
* * * * *
0
3. Amend Sec. 457.151 as follows:
0
a. Remove ``2003'' and add ``2021'' in its place in the introductory
text;
0
b. Remove the undesignated paragraph immediately preceding section 1;
0
c. In section 1:
0
i. Add the definitions of ``Adequate stand'', ``Amount of insurance'',
and ``Companion crop'' in alphabetical order;
0
ii. Revise the definitions of ``Fall planted'', ``Good farming
practices'', and ``Harvest'';
0
iii. Add the definition of ``Normal planting density'' in alphabetical
order;
0
iv. Remove the definitions of ``Normal stand'' and ``Nurse Crop
(companion crop)''; and
0
v. Revise the definitions of ``Planted acreage'', ``Replanting'',
``Sales closing date'', and ``Spring planted'';
0
d. Revise sections 3, 5, and 6;
[[Page 23901]]
0
e. In section 7, revise the introductory text and paragraphs (b) and
(d);
0
f. Revise section 8;
0
g. In section 9, revise the introductory text and paragraphs (c) and
(g);
0
h. In section 10, revise the introductory text;
0
i. In section 11, revise paragraphs (a) and (b); and
0
j. Revise sections 12 and 13.
The revisions and additions read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
* * * * *
1. Definitions.
Adequate stand. The number shown in the Special Provisions,
representing:
(a) For forage containing 60 percent or more alfalfa, the minimum
required number of live alfalfa stems per square foot that are two
inches or greater in height; or
(b) For forage containing less than 60 percent alfalfa, the normal
planting density.
Amount of insurance. The dollar amount of insurance per acre
obtained by multiplying the reference maximum dollar amount shown in
the actuarial documents by the coverage level percentage you elect.
Companion crop. A crop seeded into the same acreage as another
crop, that is intended to be harvested separately, and that is planted
to improve growing conditions for the crop with which it is grown.
* * * * *
Fall planted. A forage crop seeded after June 30, except when
specified in the Special Provisions.
* * * * *
Good farming practices. In lieu of the definition in the Basic
Provisions, the cultural practices generally in use in the county for
the crop to make normal progress toward maturity and produce an
adequate stand, and which are those generally recognized by
agricultural experts or organic agricultural experts as compatible with
agronomic and weather conditions for the area.
Harvest. Severance of the forage plant from its roots. Acreage that
is grazed will not be considered harvested.
Normal planting density. The minimum number of live plants per
square foot as shown in the Special Provisions.
Planted acreage. In addition to the definition in the Basic
Provisions, land on which seed is initially spread onto the soil
surface by any method and subsequently is mechanically incorporated
into the soil in a timely manner and at the proper depth will be
considered planted, unless otherwise provided by the Special
Provisions, actuarial documents, or written agreement.
Replanting. In addition to the definition in the Basic Provisions,
placing new seed into an existing damaged stand, using a reduced
seeding rate from the original seeding rate, will not be considered
replanting.
Sales closing date. In lieu of the definition contained in the
Basic Provisions, a date contained in the Special Provisions by which
an application must be filed and by which you may change your crop
insurance coverage for a crop year. If the Special Provisions provide a
sales closing date for both fall planted and spring planted practices
for the insured crop and you plant any insurable fall planted acreage,
you may not change your crop insurance coverage after the sales closing
date for the fall planted practice.
Spring planted. A forage crop seeded before July 1, except when
specified in the Special Provisions.
* * * * *
3. Amounts of Insurance.
In addition to the requirements of section 3 of the Basic
Provisions:
(a) You may only select one coverage level and the corresponding
amount of insurance designated in the actuarial documents for the
applicable type and practice for all the forage seeding in the county
that is insured under this policy. The amount of insurance you choose
for each type and practice must have the same percentage relationship
to the maximum amount of insurance offered by us for each type and
practice. For example, if you choose 100 percent of the maximum amount
of insurance for a specific type and practice, you must also choose 100
percent of the maximum amount of insurance for all other types and
practices.
(b) In counties with both fall and spring sales closing dates for
the insured crop:
(1) If you do not have any fall planted acreage, you may purchase
or revise your coverage for your spring planted acreage until the
spring sales closing date;
(2) In accordance with section 3(a), if you insured your fall
planted acreage, you must insure your spring planted acreage with the
same coverage as the fall planted acreage; and
(3) If you did not insure your fall planted acreage, you are not
eligible to purchase insurance for the spring planted acreage.
(c) The production reporting requirements contained in section 3 of
the Basic Provisions, do not apply to forage seeding.
* * * * *
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State Cancellation Termination
------------------------------------------------------------------------
Maine........................... March 15.......... March 15.
All other states................ July 31........... September 30.
------------------------------------------------------------------------
6. Report of Acreage.
In lieu of the provisions of section 6(a) of the Basic Provisions,
a report of all insured acreage of forage seeding must be submitted on
or before each forage seeding acreage reporting date specified in the
Special Provisions.
7. Insured Crop.
In accordance with section 8 of the Basic Provisions, the crop
insured will be all the forage in the county for which a premium rate
is provided by the actuarial documents:
* * * * *
(b) That is planted during the current crop year, or replanted
during the calendar year following planting, to establish an adequate
stand of forage;
* * * * *
(d) That is not interplanted with another crop, except companion
crops, unless allowed by the Special Provisions or by written
agreement.
8. Insurable Acreage.
In addition to the provisions of section 9 of the Basic Provisions,
unless otherwise specified in the Special Provisions, any acreage of
the insured crop damaged before the spring final planting date, to the
extent that such acreage has less than 75 percent of a normal planting
density, must be replanted unless we agree that it is not practical to
replant.
9. Insurance Period.
In lieu of the provisions of section 11 of the Basic Provisions
regarding when
[[Page 23902]]
insurance ends, forage seeding insurance will end at the earliest of:
* * * * *
(c) The first harvest after the late harvest date, if a late
harvest date is specified in the Special Provisions (You may harvest
the crop as often as practical in accordance with good farming
practices on or before the late harvest date);
* * * * *
(g) The end of insurance period date shown in the actuarial
documents.
10. Causes of Loss.
In accordance with the provisions of section 12 of the Basic
Provisions, insurance is provided only against the following causes
that result in loss of, or failure to establish, an adequate stand that
occurs during the insurance period:
* * * * *
11. Replanting Payment.
* * * * *
(a) Unless otherwise specified in the Special Provisions, a
replanting payment is allowed if:
(1) It is practical to replant;
(2) We give written consent to replant;
(3) In California, acreage planted to the insured crop is damaged
by an insurable cause of loss occurring before the spring final
planting date in the actuarial documents to the extent that less than
75 percent of the normal planting density remains, and the crop can
reach maturity before the end of the insurance period;
(4) In all other states:
(i) The insured spring or fall planted acreage is damaged by an
insurable cause of loss to the extent that less than 75 percent of the
normal planting density remains;
(ii) If fall planted, the acreage is replanted the following spring
by the spring final planting date; and
(iii) If spring planted, the original planting took place after the
earliest planting date shown in the Special Provisions, and the acreage
is replanted by the spring final planting date shown in the Special
Provisions.
(b) The amount of the replanting payment will be equal to 50
percent of the amount of indemnity determined in accordance with
section 13(a) unless otherwise specified in the Special Provisions.
* * * * *
12. Duties in the Event of Damage or Loss.
(a) In accordance with the requirements of section 14 of the Basic
Provisions, the representative samples of the crop must be at least 10
feet wide and extend the entire length of each field in the unit. The
samples must not be harvested or destroyed until the earlier of our
inspection or 15 days after tilling of the balance of the unit is
completed.
(b) In addition to the requirements of section 14 of the Basic
Provisions, you must give us written notice if, during the period
before destroying the crop on any damaged fall planted acreage, you
decide to replant the acreage by the spring final planting date.
13. Settlement of Claim.
In the event of loss or damage covered by this policy, we will
settle your claim on any unit by:
(a) For each type and practice:
(1) Determining the value of all insured acreage by multiplying the
number of insured acres by the dollar amount of insurance;
(2) Determining the value of the acreage with no insurable losses,
by multiplying the dollar amount of insurance by the insured acreage
that:
(i) Has at least 75 percent of an adequate stand;
(ii) Was abandoned or put to another use without our prior written
consent;
(iii) Was damaged solely by an uninsured cause; or
(iv) Was harvested and not reseeded.
(3) Determining the value of the acreage with partial insurable
losses, by multiplying the dollar amount of insurance by the number of
insured acres that have a stand less than 75 percent but more than 55
percent of an adequate stand, by 50 percent (0.5);
(4) Adding the results in section 13(a)(2) and section 13(a)(3);
(5) Subtracting the results in section 13(a)(4) from the results in
section 13(a)(1); and
(6) Multiplying the result in section 13(a)(3) by your share; and
(b) Totaling the results in section 13(a).
Example:
Assume you have a 100 percent share in 30 acres of type A forage in
the unit, with an amount of insurance of $100 per acre. At the time of
loss, the following findings are established: 10 acres had a remaining
stand of 75 percent of an adequate stand or greater. 20 acres had a
remaining stand less than 75 percent but more than 55 percent of an
adequate stand.
You also have a 100 percent share in 20 acres of type B forage in
the unit, with an amount of insurance of $90 per acre. 10 acres had a
remaining stand of 75 percent of an adequate stand or greater. 10 acres
had a remaining stand less than 55 percent of an adequate stand.
Your indemnity would be calculated as follows:
1. 30 acres x $100 = $3,000 amount of insurance for type A; 20
acres x $90 = $1,800 amount of insurance for type B;
2. 10 acres with 75% of an adequate stand or greater x $100 =
$1,000 for type A; 10 acres with 75% of an adequate stand or greater x
$90 = $900 for type B;
3. 20 acres with less than 75% but greater than 55% of an adequate
stand x $100 x 50 percent = $1,000 for type A; 0 acres with less than
75% but greater than 55% of an adequate stand x $90 x 50 percent = $0
for type B;
4. $1,000 + $1,000 = $2,000 reduction for type A; $900 + $0 = $900
reduction for type B;
5. $3,000 - $2,000 = $1,000 for type A; $1,800 - $900 = $900 for
type B
6. $1,000 x 100 percent share = $1,000 for type A; $900 x 100
percent share = $900 for type B;
7. $1,000 + $900 = $1,900 total indemnity
* * * * *
Martin R. Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2020-08708 Filed 4-29-20; 8:45 am]
BILLING CODE 3410-08-P
