Common Crop Insurance Regulations; Canola and Rapeseed Crop Insurance Provisions
| Published date | 28 May 2020 |
| Record Number | 2020-10240 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
Federal Register, Volume 85 Issue 103 (Thursday, May 28, 2020)
[Federal Register Volume 85, Number 103 (Thursday, May 28, 2020)]
[Rules and Regulations]
[Pages 31939-31943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10240]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
RIN 0563-AC66
[Docket ID FCIC-19-0007]
Common Crop Insurance Regulations; Canola and Rapeseed 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, Canola and Rapeseed Crop Insurance
Provisions. The intended effect of this action is to clarify policy
provisions and for consistency with other crop provisions that offer
coverage on both fall and spring-planted acreage of the crop. The
changes will be effective for the 2021 and succeeding crop years.
DATES:
Effective: May 28, 2020.
Comments date: FCIC will accept written comments on this final rule
until close of business July 27, 2020. FCIC may consider the comments
received and may conduct additional rulemaking based on the comments.
ADDRESSES: We invite you to submit comments on this rule. 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-19-0007. 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].
SUPPLEMENTARY INFORMATION:
Background
FCIC amends the Common Crop Insurance Regulations by revising 7 CFR
457.161 Canola and Rapeseed Crop Insurance Provisions to be effective
for the 2021 and succeeding crop years.
The changes to 7 CFR 457.161 Canola and Rapeseed Crop Insurance
Provisions are as follows:
1. Section 1--FCIC is revising the definition of ``harvest'' to
incorporate a new term, ``pushed'', that is being added to section 1.
The definition specifies that canola that is swathed prior to combining
is not considered harvested. The revised definition says that canola
that is swathed or pushed prior to combining is not considered
harvested.
FCIC is adding the definition of ``latest final planting date'' to
specify the final planting date for those counties that have only
spring-planted acreage, only fall-planted acreage, or both spring-
planted and fall-planted acreage.
FCIC is adding a definition of ``prevented planting'' to specify it
is the same definition found in the Basic Provisions except that the
references to ``final planting date'' contained in the definition in
the Basic Provisions are replaced with the ``latest final planting
date.'' This is consistent with other crop provisions that have both
fall and spring planted acreage.
FCIC is adding a definition of ``pushed.'' Pushed is a method by
which
[[Page 31940]]
the stems of the canola are mechanically bent prior to maturity. When
the stems are pushed, the stems and pods remain intact to ripen
naturally while being protected from weather events. This process is
not harmful to the canola and is completed prior to harvest.
2. Section 3--FCIC is revising paragraphs (b)(1) and (b)(2) to
replace the phrase ``insured fall planted acreage'' with the phrase
``insurable fall planted acreage.'' This subsection provides guidance
regarding the date by which producers can make changes to their
insurance coverage depending on whether they have insured fall planted
acreage. The previous provisions stated that if producers have insured
fall planted acreage, no changes can be made after the fall sales
closing date. If producers do not have insured fall planted acreage,
then they can make changes up until the spring sales closing. According
to section 6 of the Crop Provisions, all the producer's acreage of the
crop in the county must be insured. Therefore, if the producer plants
fall planted acreage and it is insurable, then it must be insured. FCIC
received input from insurance companies that the phrase ``insured fall
planted acreage'' indicates that if producers planted fall planted
acreage but did not insure it, then they have until the spring sales
closing date to make changes to the insurance coverage on the spring-
planted acreage. That is not the intent of the provisions. Therefore,
FCIC is revising the language to indicate that if there is insurable
fall planted acreage, then no changes may be made after the fall sales
closing date.
3. Section 5--FCIC is revising the table to make two changes: (1)
To specify what the cancellation and termination dates are for each
state and county where canola insurance is available; and (2) to
specify the cancellation and termination dates in two separate columns.
The wording does not list specific states, but rather identifies
the cancellation and termination dates based on whether a county has or
does not have fall planted types listed in the actuarial documents (or
all counties for Alabama and Georgia):
a. Counties without fall-planted types on the actuarial documents
have a cancellation and termination date of March 15; and
b. Counties with fall-planted types on the actuarial documents have
a cancellation and termination date of August 31.
The wording of this table caused confusion when insured producers
and their insurance providers were seeking written agreements in
counties where canola and rapeseed crop insurance is not available
(because the county does not appear in the actuarial documents). A
written agreement provides insurance for insurable crops when coverage
or rates are currently unavailable in the county, or is used to modify
existing terms and conditions in the crop insurance policy when
specifically permitted by the policy. Section 18(e)(2)(ii) of the
Common Crop Insurance Policy, Basic Provisions (Basic Provisions) had
specified that written agreements must be provided on or before the
cancellation date to insure a crop in a county that does not have
actuarial documents for the crop (If the Crop Provisions do not provide
a cancellation date for the county, the cancellation date for other
insurable crops in the same State that have similar final planting and
harvesting dates will be applicable). According to the Canola and
Rapeseed Crop Provisions and section 18 of the Basic Provisions, the
written agreement must be submitted by March 15 for counties without
fall-planted types on the actuarial documents and August 31 for
counties with fall-planted types on the actuarial documents.
In an example that was brought to our attention, an insured
producer planted fall canola in a county for which there is no canola
and rapeseed crop insurance coverage. This county falls within the
category of not having fall-planted types listed on the actuarial
documents; therefore, the deadline to submit the written agreement
would be the March 15th cancellation date. However, the insured
producer planted the crop months prior to the deadline and may be able
to adversely select against insurance due to information the insured
has about their crop prior to the attachment of insurance. With the
revised changes to the table, the deadline for the written agreement in
this county would default to the provisions in section 18(e)(2)(ii) of
the Basic Provisions: (If the Crop Provisions do not provide a
cancellation date for the county, the cancellation date for other
insurable crops in the same State that have similar final planting and
harvesting dates will be applicable). In this example, according to
section 18 of the Basic Provisions, the cancellation date would have
been more-appropriately aligned with the counties in the states with an
August 31st cancellation date.
In Idaho, there are six counties that have only spring-planted
types of canola. In the remaining counties in Idaho, and in all
counties in Oregon and Washington, there are fall and spring-planted
types. The six counties in Idaho are now specifically named in the
table and fall within the cancellation and termination dates of March
15th. The remaining counties in Idaho and all counties in Oregon and
Washington have a Special Provisions statement that changes the
termination date from August 31 to October 31. By adding a separate
column for the termination dates in the table, FCIC can incorporate the
termination date addressed in the Special Provisions statement. The
Special Provisions statement will no longer be needed.
4. Section 10--FCIC is revising paragraph (d) for consistency with
other crops that have both fall and spring planted acreage. The
provisions state that the production guarantee, premium, projected and
harvest prices and replant payments will be based on the crop type that
is replanted and insured. The provisions do not address situations when
a damaged winter crop type is replanted to a spring crop type, but
retains insurance based on the winter crop type; and when the replanted
acreage is planted at a reduced seeding rate into a partially-damaged
stand of the insured crop. These situations are addressed in other crop
provisions that have both fall and spring planted acreage; therefore,
these situations are added to these crop provisions for consistency.
5. Section 14--FCIC is adding a sentence at the beginning to
clarify in counties for which the Special Provisions designate a spring
final planting date, the prevented planting production guarantee will
be based on the approved yield for spring-planted acreage of the
insured crop. This change is consistent with other crop provisions that
have both fall and spring planted acreage.
Effective Date and Notice and Comment
The Administrative Procedure Act (APA, 5 U.S.C. 553) provides that
the notice and comment and 30-day delay in the effective date
provisions do not apply when the rule involves specified actions,
including matters relating to contracts. This rule governs contracts
for crop insurance policies and therefore falls within that exemption.
For major rules, the Congressional Review Act requires a delay the
effective date of 60 days after publication to allow for Congressional
review. This rule is not a major rule under the Congressional Review
Act, as defined by 5 U.S.C. 804(2). Therefore, this final rule is
effective May 28, 2020. Although not required by APA or any other law,
FCIC has chosen to request comments on this rule.
[[Page 31941]]
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. The requirements in
Executive Orders 12866 and 13563 for the analysis of costs and benefits
apply to rules that are determined to be significant. 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 and analysis of
the costs and benefits is not required under either Executive Order
12866 or 13563.
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. In a general response to the
requirements of Executive Order 13777, USDA created a Regulatory Reform
Task Force, and USDA agencies were directed to remove barriers, reduce
burdens, and provide better customer service both as part of the
regulatory reform of existing regulations and as an ongoing approach.
FCIC reviewed this regulation and made changes to improve any provision
that was determined to be outdated, unnecessary, or ineffective.
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
[[Page 31942]]
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.
For the reasons discussed above, FCIC amends 7 CFR part 457 as
follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
0
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
0
2. In Sec. 457.161:
0
a. Revise the introductory text;
0
b. Amend section 1 by:
0
i. Revising the definition of ``Harvest''; and
0
ii. Adding in alphabetical order the definitions of ``Latest final
planting date'', ``Prevented planting'', and ``Pushed'';
0
c. Revise section 3(b);
0
d. Revise section 5;
0
e. Revise section 10(d); and
0
f. Revise section 14.
The revisions and additions read as follows:
Sec. 457.161 Canola and Rapeseed crop insurance provisions.
The Canola and Rapeseed Crop Insurance Provisions for the 2021 and
succeeding crop years are as follows:
* * * * *
1. Definitions.
* * * * *
Harvest. Combining or threshing for seed. A crop that is swathed or
pushed prior to combining is not considered harvested.
Latest final planting date. (a) The final planting date for spring-
planted acreage in all counties for which the Special Provisions
designate a final planting date for spring-planted acreage only;
(b) The final planting date for fall-planted acreage in all
counties for which the Special Provisions designate a final planting
date for fall-planted acreage only; or
(c) The final planting date for spring-planted acreage in all
counties for which the Special Provisions designate final planting
dates for both spring-planted and fall-planted acreage.
* * * * *
Prevented planting. As defined in the Basic Provisions, except that
the references to ``final planting date'' contained in the definition
in the Basic Provisions are replaced with the ``latest final planting
date.''
* * * * *
Pushed. Mechanical bending of the stem prior to maturity that
leaves the stems and pods intact to ripen naturally while being
protected from weather events.
* * * * *
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
* * * * *
(b) * * *
(1) If you do not have any insurable fall planted acreage of the
insured crop, you may change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, until the spring sales closing date; or
(2) If you have any insurable fall planted acreage of the insured
crop, you may not change your coverage level, or your percentage of
projected price (if you have yield protection), or elect revenue
protection or yield protection, after the fall sales closing date.
* * * * *
5. Cancellation and Termination Dates.
The cancellation and termination dates are as follows, unless
otherwise specified in the actuarial documents:
----------------------------------------------------------------------------------------------------------------
State and county Cancellation date Termination date
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All counties in Alabama and Georgia... September 30....................... September 30.
Blaine, Bonneville, Fremont, March 15........................... March 15.
Jefferson, Madison, and Teton
counties Idaho; and all counties in
Minnesota, Montana, and North Dakota.
All counties in Illinois, Indiana, August 31.......................... August 31.
Kansas, Kentucky, North Carolina,
Oklahoma, South Carolina, Tennessee,
Texas, and Virginia.
All other Idaho counties, Oregon, and August 31.......................... October 31.
Washington.
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* * * * *
10. Replanting Payment.
* * * * *
(d) Replanting payments will be calculated using your projected
price and your production guarantee for the crop type that is replanted
and insured.
(1) For example, if damaged Spring Oleic Canola is replanted to
Spring High Erucic Rapeseed, your projected price applicable to Spring
High Erucic
[[Page 31943]]
Rapeseed will be used to calculate any replanting payment that may be
due. A revised acreage report will be required to reflect the replanted
type.
(2) Notwithstanding section 10(d)(1), the following will have a
replanting payment based on your production guarantee and your
projected price for the crop type initially planted:
(i) Any damaged winter crop type that is replanted to a spring crop
type, but that retains insurance based on the winter crop type; and
(ii) Any acreage replanted at a reduced seeding rate into a
partially damaged stand of the insured crop.
* * * * *
14. Prevented Planting.
In counties for which the Special Provisions designate a spring
final planting date, your prevented planting production guarantee will
be based on your approved yield for spring-planted acreage of the
insured crop. Your prevented planting coverage will be a percentage
specified in the actuarial documents of your production guarantee for
timely planted acreage. If you have additional coverage and pay an
additional premium, you may increase your prevented planting coverage
if such additional coverage is specified in the actuarial documents.
Martin Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2020-10240 Filed 5-27-20; 8:45 am]
BILLING CODE 3410-08-P
