Common Crop Insurance Regulations; Forage Seeding Crop Insurance Provisions
| Published date | 29 April 2021 |
| Citation | 86 FR 22581 |
| Record Number | 2021-08953 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
Federal Register, Volume 86 Issue 81 (Thursday, April 29, 2021)
[Federal Register Volume 86, Number 81 (Thursday, April 29, 2021)]
[Rules and Regulations]
[Pages 22581-22583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08953]
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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. 86, No. 81 / Thursday, April 29, 2021 / Rules
and Regulations
[[Page 22581]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket ID FCIC-20-0003]
RIN 0563-AC67
Common Crop Insurance Regulations; 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 Seeding Crop Insurance
Provisions. The intended effect of this action is to clarify that
producers are able to purchase or change insurance coverage on spring
seeded forage until the spring sales closing date if they did not plant
any insurable fall seeded forage in the same crop year. The changes are
to be effective for the 2022 and succeeding crop years.
DATES:
Effective date: This rule is effective April 29, 2021.
Comment date: We will consider comments that we receive on this
rule until the close of business June 28, 2021. 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. You may
submit comments by either of the following methods, although FCIC
prefers that you submit comments electronically through the Federal
eRulemaking Portal:
Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID FCIC-20-0003. Follow the
instructions for submitting comments.
Mail: Director, Product Administration and Standards
Division, Risk Management Agency, US Department of Agriculture, P.O.
Box 419205, Kansas City, MO 64133-6205. In your comment, specify docket
ID FCIC-20-0003.
Comments will be available for viewing online at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829, email [email protected].
SUPPLEMENTARY INFORMATION:
Background
FCIC serves America's agricultural producers through effective,
market-based risk management tools to strengthen the economic stability
of agricultural producers and rural communities. The Risk Management
Agency (RMA) administers the FCIC regulations. FCIC is committed to
increasing the availability and effectiveness of Federal crop insurance
as a risk management tool. Approved Insurance Providers (AIPs) sell and
service Federal crop insurance policies in every state through a
public-private partnership. FCIC reinsures the AIPs who share the risk
associated with catastrophic losses due to major weather events. FCIC's
vision is to secure the future of agriculture by providing world class
risk management tools to rural America.
Federal crop insurance policies typically consist of the Basic
Provisions, the Crop Provisions, the Special Provisions, the Commodity
Exchange Price Provisions, if applicable, other applicable endorsements
or options, the actuarial documents for the insured agricultural
commodity, the Catastrophic Risk Protection Endorsement, if applicable,
and the applicable regulations published in 7 CFR chapter IV.
FCIC amends the Common Crop Insurance Regulations (7 CFR part 457)
by revising 7 CFR 457.151 Forage Seeding Crop Insurance Provisions, to
be effective for the 2022 and succeeding crop years. This change
resulted from public comments received on the final rule with request
for comment, published in the Federal Register on April 30, 2020 at 83
FR 23893-23902.
Comments were received from 10 commenters. The commenters included
persons or entities from the following categories: Farmer, trade
association, insurance companies, and others. The public comments
received regarding the final rule with request for comment and FCIC's
responses to the comments are as follows:
Comment: Commenter suggested increased coverage in Arizona,
California, Nevada, and Utah. They also suggested creating an insurance
product that would allow producers to insure against forage quality
losses and an insurance product that would allow producers to insure
forage revenue losses.
Response: These issues were considered and researched by an
independent contractor prior to the 2020 Final Rule. FCIC followed the
recommendations of the contracted research to not implement these
changes. FCIC will continue to work with industry groups concerning
these items and others that may arise. FCIC will continue to analyze
and consider recommendations from expert reviewers and Regional Office
Subject Matter Experts when considering future changes.
Comment: Commenter expressed a concern about the cancellation date
for spring seeded forage being nearly nine months prior to the sales
closing date.
Response: The 9-month gap between the cancellation and sales
closing dates is due to offering both fall seeded, and spring seeded
coverage in a single county. FCIC will continue to encourage AIPs and
agents to educate insureds on the different deadlines for making
changes versus cancelling a policy.
Comment: Commenter provided some suggestions on the wording of the
spring planted definition. They also noted spring and fall planted
forage types were listed in the Special Provisions with final planting
dates. They asked if these override the Crop Provision definition.
Response: The definition in the Crop Provisions refers to the
Special Provisions. Therefore, the final planting dates listed in the
Special Provisions work in conjunction with the Crop Provisions. The
wording suggestions will be considered with any future changes to the
Special Provisions.
Comment: Commenter asked for the term ``late harvest date'' to be
defined since it is used in section 9 of the Crop Provisions.
Response: The term ``late harvest date'' refers to a date shown in
the Special Provisions. The term will be clarified in the Special
Provisions for the 2022 crop year.
[[Page 22582]]
Comment: Commenter stated the definition of replanting is
contradictory of the ``good farming practices'' definition. They note
seeding at a reduced seeding rate into a partially damaged forage stand
is considered prudent and a ``good farming practice.'' The current
definition negates that choice if a producer would like reimbursement
for his cost of replanting the damaged acreage.
Response: The Final Rule changes did not impact how the policy
treats planting into an existing stand at a reduced seeding rate. FCIC
recognizes planting at a reduced seeding rate may be a good farming
practice, but it is not eligible for a replanting payment.
Comment: Commenter notes the actuarial documents show basic and
optional units are available in some counties. They note the
qualification of optional units found in section 34(b)(3) says a
producer must have acceptable records for at least the previous crop
year for all optional units that are reported in the current year. They
are questioning how a producer may become eligible for optional units
since the Dollar Plan of insurance does not require acceptable records
of production.
Response: The Final Rule did not change records requirements for
electing optional units under the policy. The policy requires
production records; however, the underwriting procedures in the Crop
Insurance Handbook make it possible to have Optional Units without the
need to have production records. Insureds may need production records
for loss purposes.
Comment: Commenter suggests removing the `Insurance Availability'
statement from the Special Provisions since the wording mimics the same
terms and conditions of subsection 7(b) of the Crop Provisions.
Response: The Special Provisions language clarifies the acreage
must be ``intended for harvest''. FCIC will consider incorporating this
phrase in future edits of subsection 7(b) of the Crop Provisions.
Comment: Commenter provided a variety of comments about the
Replanting Payment section 11 of the Crop Provisions, but the
underlying issues or suggestions were not clear.
Response: FCIC will reach out to the commenter to better understand
if any changes are recommended.
Comment: Commenter notes contradicting verbiage between the
definition of sales closing date and section 3(b)(1). The definition
indicates if a producer has any insurable fall planted acreage then
coverage could not be purchased on spring planted acreage prior to the
spring sales closing date or make changes to any coverage. The wording
in section 3(b)(1) indicates if a producer has any fall planted acreage
(whether insurable or not) a producer cannot purchase coverage or make
changes to any spring planted acreage.
Response: FCIC agrees this needs to be clarified and is revising
the language with this Final Rule.
The intended effect of this action is to eliminate contradicting
language between the ``Sales Closing Date'' definition and the
``Amounts of Insurance'' section.
The changes are as follows:
1. Section 3--FCIC is revising section 3, Amounts of Insurance, to
clarify contradicting language between the ``Sales Closing Date''
definition and ``Amounts of Insurance'' sections. The ``Sales Closing
Date'' definition specifies the fall planted acreage must be insurable
but corresponding language in the ``Amounts of Insurance'' section does
not specify whether the fall planted acreage is insurable or not,
resulting in confusion that the fall sales closing date could be
binding regardless of whether their fall planted acreage was insurable
or uninsurable. The change will provide consistent language to indicate
if a producer does not plant any ``insurable'' fall planted acreage,
then they may purchase or revise their coverage on spring planted
forage until the spring sales closing date.
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 April 30, 2021. Although not required by APA or any other
law, FCIC has chosen to request comments on this rule.
Executive Orders 12866 and 13563
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. The requirements in
Executive Orders 12866 and 13563 for the analysis of costs and benefits
apply to rules that are determined to be significant.
The Office of Management and Budget (OMB) designated this rule as
not significant under Executive Order 12866, ``Regulatory Planning and
Review,'' and therefore, OMB has not reviewed this rule and analysis of
the costs and benefits is not required under either Executive Order
12866 or 13563.
Clarity of the Regulation
Executive Order 12866, as supplemented by Executive Order 13563,
requires each agency to write all rules in plain language. In addition
to your substantive comments on this rule, we invite your comments on
how to make the rule easier to understand. For example:
Are the requirements in the rule clearly stated? Are the
scope and intent of the rule clear?
Does the rule contain technical language or jargon that is
not clear?
Is the material logically organized?
Would changing the grouping or order of sections or adding
headings make the rule easier to understand?
Could we improve clarity by adding tables, lists, or
diagrams?
Would more, but shorter, sections be better? Are there
specific sections that are too long or confusing?
What else could we do to make the rule easier to
understand?
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
[[Page 22583]]
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.
RMA has assessed the impact of this rule on Indian Tribes and
determined that this rule does not, to our knowledge, have Tribal
implications that require Tribal consultation under E.O. 13175. The
regulation changes do not have Tribal implications that preempt Tribal
law and are not expected have a substantial direct effect on one or
more Indian Tribes. If a Tribe requests consultation, RMA will work
with the USDA Office of Tribal Relations to 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 in the preamble, FCIC amends 7 CFR part
457 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. 457.151 by:
0
a. In the introductory text removing ``2021'' and adding ``2022'' in
its place;
0
b. In section 3 revising paragraph (b)(1).
The revision reads as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
* * * * *
0
3. Amounts of Insurance.
* * * * *
(b) * * *
(1) If you do not have any insurable fall planted acreage, you may
purchase or revise your coverage for your spring planted acreage until
the spring sales closing date;
* * * * *
Richard H. Flournoy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2021-08953 Filed 4-27-21; 11:15 am]
BILLING CODE 3410-08-P
