Common Crop Insurance Regulations; Small Grains Crop Insurance Provisions
| Published date | 25 June 2021 |
| Citation | 86 FR 33485 |
| Record Number | 2021-13113 |
| Section | Rules and Regulations |
| Court | Federal Crop Insurance Corporation |
Federal Register, Volume 86 Issue 120 (Friday, June 25, 2021)
[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Rules and Regulations]
[Pages 33485-33491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13113]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket ID FCIC-21-0002]
RIN 0563-AC73
Common Crop Insurance Regulations; Small Grains Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, U.S. Department of
Agriculture (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, Small Grains Crop Insurance
Provisions and Malting Barley Price and Quality Endorsement. For the
Small Grains Crop Insurance Provisions, the intended effect of this
action is to allow enterprise units by type for wheat, to clarify
policy provisions for consistency with other crop provisions that offer
coverage on both winter and spring-planted acreage of the crop. For the
Malting Barley Price and Quality Endorsement, the intended effect is to
remove and reserve this section. The changes will be effective for the
2022 and succeeding crop years.
DATES:
Effective date: June 25, 2021.
Comment date: We will consider comments that we receive by the
close of business August 24, 2021. FCIC may consider the comments
received and may conduct additional rulemaking based on the comments.
ADDRESSES: We invite you to submit comments on this rule. You may
submit comments by either of the following methods, although FCIC
prefers that you submit comments electronically through the Federal
eRulemaking Portal:
Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID FCIC-21-0002. Follow the
instructions for submitting comments.
Mail: Director, Product Administration and Standards
Division, Risk Management Agency (RMA), U.S. Department of Agriculture,
P.O. Box 419205, Kansas City, MO 64133-6205. In your comment, specify
docket ID FCIC-21-0002.
Comments will be available for viewing online at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email [email protected]. Persons with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 or 844-433-2774 (toll-free nationwide).
SUPPLEMENTARY INFORMATION:
Background
The FCIC serves America's agricultural producers through effective,
market-based risk management tools to strengthen the economic stability
of agricultural producers and rural communities. FCIC is committed to
increasing the availability and effectiveness of Federal crop insurance
as a risk management tool. Approved Insurance Providers (AIP) sell and
service Federal crop insurance policies in every state through a
public-private partnership. FCIC reinsures the AIPs who share the risks
associated with catastrophic losses due to major weather events. FCIC's
vision is to secure the future of agriculture by providing world class
risk management tools to rural America.
FCIC amends the Common Crop Insurance Regulations by revising 7 CFR
457.101, Small Grains Crop Insurance Provisions, and by removing and
reserving 7 CFR 457.118, Malting Barley Price and Quality Endorsement,
to be effective for the 2022 and succeeding crop years.
The changes to 7 CFR 457.101, Small Grains Crop Insurance
Provisions, are as follows:
1. Throughout the Crop Provisions, FCIC is replacing all references
of the ``fall'' type with ``winter'' type. Fall and spring-planted
acreage are insured under the ``winter'' commodity type and ``spring''
commodity type, respectively, in the actuarial documents. This change
is necessary for consistency between the Crop Provisions and actuarial
documents.
2. Throughout the Crop Provisions, FCIC is replacing the phrase
``initially planted'' with the phrase ``initially-planted,'' where
appropriate.
3. Throughout the Crop Provisions, FCIC is replacing all references
of ``growers'' with ``producers'' to be consistent with the terminology
used in the Common Crop Insurance Policy Basic Provisions.
4. Section 1--FCIC is revising the definition of ``Khorasan'' by
replacing the phrase ``is considered to be'' with ``is considered.''
The phrase ``to be'' is not necessary.
FCIC is revising the definition of ``latest final planting date''
to replace all references to fall and spring-planted acreage to winter
and spring types. This change will eliminate any confusion of whether a
winter final planting date exists in the actuarial documents if the
Winter Coverage Endorsement is not selected. For example, Asotin
County, Washington lists a winter final planting date for barley that
is only applicable if the Winter Coverage Endorsement is elected.
Otherwise, there is no applicable date in the fall and only spring
final planting dates exist for the spring types. The intent of these
provisions is to address when a county has both winter and spring types
designated in the Special Provisions, regardless if the Winter Coverage
Endorsement is elected.
FCIC is revising the definition of ``small grains'' to allow the
flexibility to insure additional small grains varieties that are not
currently listed in the actuarial documents. This allows for insurance
coverage to be offered via actuarial documents for varieties currently
not insured when data become available, and it is appropriate to do so.
5. Section 2--FCIC is designating the undesignated paragraph in
section 2 as paragraph (b) and adding a new paragraph (a) to allow
enterprise units by type for wheat. For example, if insured has winter
and spring types, they may elect one enterprise unit for the spring
type or one enterprise unit for the winter type, or separate enterprise
units for both types.
For the wheat types, allowing separate enterprise units allows
producers to be indemnified separately by type. The benefit for
producers is that a loss on one type will not be offset by the gain on
another type.
If an insured elects enterprise units by type, these enterprise
units are not allowed to be further divided by practice and the insured
may not elect enterprise or optional units by irrigation practices for
the policy.
Additionally, the insured must separately meet the requirements in
section 34(a)(4) of the Basic Provision for each enterprise unit they
elect to have.
[[Page 33486]]
If the insured elects enterprise units by type and does not qualify
for separate enterprise units, there are options based upon whether
enterprise units are elected for one or multiple types and the timing
of the discovery:
If the insured elects separate enterprise units for
multiple types and the AIP discovers the enterprise unit qualifications
are not separately met for all types:
(1) On or before the acreage reporting date the insured may elect
to insure:
(a) All types in which they elected an enterprise unit for meeting
the requirements in section 34(a)(4) of the Basic Provisions as
separate enterprise units, and basic or optional units for any acreage
that is not reported and insured as an enterprise unit, whichever the
insured reports on the acreage report and for which the insured
qualifies; or
(b) One enterprise unit for all acreage of the crop in the county
provided the insured meets the requirements in section 34(a)(4) of the
Basic Provisions; or
(c) Basic or optional units for all acreage of the crop in the
county, whichever the insured reports on the acreage report and for
which the insured qualifies.
(2) After acreage reporting date, the insured will have one
enterprise unit for all acreage of the crop in the county provided they
meet the requirements in section 34(a)(4) of the Basic Provisions. If
they don't meet the requirements in section 34(a)(4), the AIP will
assign a basic unit structure for all acreage of the crop in the
county.
If an insured elects an enterprise unit for only one type
and the AIP discovers the enterprise unit qualifications are not met
for that type:
(1) On or before the acreage reporting date, the insured's unit
division for all acreage of the crop in the county will be based on
basic or optional units, whichever the insured reports on the acreage
report and for which the insured qualifies; or
(2) After the acreage reporting date, the AIP will assign the basic
unit structure for all acreage of the crop in the county.
FCIC is also revising the first sentence in redesignated paragraph
(b) to rephrase the language to eliminate the need to list all optional
unit choices from the Basic Provisions. This allows the Small Grains
Crop Provisions to follow the Basic Provisions optional unit division
language when and if those provisions in the Basic Provisions are
updated, without a new regulation.
In newly redesignated paragraph (b), FCIC is revising the reference
to section 34(b) of the Common Crop Insurance Policy Basic Provisions
to 34(c). Section 34(c) is the appropriate reference.
In newly redesignated paragraph (b), FCIC is simplifying the
paragraph by removing the list of insurable types that may be insured
as separate optional units and replacing with a statement that separate
optional units may be established by any insured wheat type as long as
each optional unit contains only initially-planted acreage of the type.
The insured type can be listed in the actuarial documents or insured by
written agreement to qualify. This change is needed in the event the
insured elects enterprise units by type but does not qualify for
enterprise units.
6. Section 3--FCIC is revising the lead-in to paragraph (b)(2).
This paragraph addresses counties that have both winter and spring
sales closing dates. In some counties, the winter sales closing date
only applies if the Winter Coverage Endorsement is elected. While these
specific counties have a winter and a spring sales closing date listed
in the actuarial documents, paragraph (b)(2) is not referring to these
counties. Paragraph (b)(2) is only intended to apply to those counties
where both winter and spring sales closing dates are applicable
regardless of the Winter Coverage Endorsement election. Therefore, the
lead-in is revised to include, in parenthesis, a statement that
excludes dates specific to the Winter Coverage Endorsement.
FCIC is also revising paragraphs (b)(2)(i) and (ii) to replace the
phrase ``insured fall planted acreage'' with the phrase ``insurable
winter planted acreage.'' This paragraph 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 provisions state 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. All acreage of the crop in
the county must be insured. Therefore, if the producer plants fall-
planted acreage and it meets the insurability requirements in section
6, then it must be insured. FCIC received input from AIPs that the
phrase ``insured fall planted acreage'' indicates that if producers
planted fall-planted acreage but do 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 if
producers planted insurable fall-planted acreage, then no changes may
be made after the fall sales closing date. As explained above, ``fall''
is also being replaced with ``winter,'' as appropriate.
7. Section 5--FCIC is removing the phrase ``Special Provisions''
and replacing it with the phrase ``actuarial documents.'' The
cancellation and termination dates identified in this section are also
found in the actuarial documents, rather than the Special Provisions.
If FCIC determines that the cancellation or termination dates need to
differ than what is provided in the Crop Provisions, then the modified
date would be identified in the actuarial documents.
8. Section 6--FCIC is removing paragraph (e). This paragraph refers
to the Malting Barley Price and Quality Endorsement (MBPQE) published
at 7 CFR 457.118. The MBPQE is no longer available to barley producers.
Another endorsement, Malting Barley Endorsement was approved by the
FCIC Board of Directors under Section 508(h) of the Federal Crop
Insurance Act. The Malting Barley Endorsement replaced the MBPQE in
2016 and is not codified. Therefore, there's no need to include a
reference to the MBPQE within the Small Grains Crop Provisions.
9. Section 7--FCIC is revising the lead-in sentence to paragraph
(a)(1) to remove the reference to oats. FCIC is adding oats to
paragraph (a)(2). Paragraph (a)(1) is for the crops for which there is
only one planting season (either winter or spring); whereas paragraph
(a)(2) is for the crops that have more than one planting season (winter
and spring). In all counties where oats are insured, FCIC insures
winter-planted oats, spring-planted oats or both. Therefore, oats are
more appropriately placed in paragraph (a)(2) and are added within
paragraph (a)(2) in every place there is a reference to barley and
wheat.
FCIC is also revising paragraphs (a)(2)(ii) and (iii) to change the
phrase ``fall final planting date'' and ``fall and spring final
planting dates'' to ``winter type'' and ``winter and spring types,''
respectively.
FCIC is revising paragraph (a)(2)(iii)(A) to add the word
``acreage'' at the end of the following phrase: ``Any winter barley,
oat or wheat.'' By adding ``acreage'' to this phrase, this lead-in
phrase is consistent with the lead-in phrase in paragraph
(a)(2)(iii)(B). FCIC is also revising the phrase ``Any winter barley,
oat or wheat'' to add a comma after ``oat.''
FCIC is also adding paragraph (a)(2)(iii)(D). This paragraph
addresses situations, in counties with both winter and spring types
listed in the actuarial
[[Page 33487]]
documents, when acreage of the winter type is planted after the end of
the late planting period. The Basic Provisions says that any acreage
planted after the end of the late planting period may be insured if the
producer chooses to insure it. If insured, then the acreage will be
insured with a reduced guarantee equal to the production guarantee
times the prevented planting coverage level percentage specified in the
actuarial documents. In counties with both winter and spring types
listed in the actuarial documents, winter types are not eligible for
prevented planting so there is no prevented planting coverage level
percentage listed in the actuarial documents to assign to it. Without a
prevented planting coverage level, section 8(b)(2) of the Basic
Provisions applies and the winter types are not insurable (e.g., the
appropriate rates are not available to insure the crop). This new
provision allows the acreage to be insured in the spring as the spring
type, if the producer chooses to insure it and the AIP determines there
is an adequate stand. This change treats all producers similarly to
producers who plant winter types in counties with only a spring type
listed in the actuarial documents.
FCIC is revising paragraph (a)(2)(iv) by revising the phrase ``. .
.any acreage of spring barley, oat or wheat. . .'' to read ``. . .any
spring barley, oat or wheat acreage. . .'' Similarly, FCIC is revising
paragraph (a)(2)(v) by revising the phrase ``. . .any acreage of winter
barley, oat or wheat. . .'' to read ``. . .any winter barley, oat or
wheat acreage. . .'' These revisions are consistent with revisions made
in paragraph (a)(2)(iii).
In paragraphs (a)(2)(iv) and (v), FCIC is replacing the phrase
``spring final planting date'' with ``spring type'' in both places to
be consistent with changes elsewhere in the Crop Provisions.
Also in paragraph (a)(2)(v), FCIC is revising the phrase ``is not
insured'' to ``will not be insured.'' This is consistent with the
language that was added in paragraph (a)(2)(iii)(D).
FCIC is also revising paragraph (a)(2)(v) to remove the phrase
``agree in writing'' as this could be misinterpreted to mean a written
agreement, which is not the intent of the language, and could result in
providing insurance via written agreement when it was not intended or
appropriate. FCIC is replacing that phrase with language to clarify the
AIP must inspect and give written confirmation that the acreage has an
adequate stand in the spring to produce the yield used to determine
your production guarantee. These clarifications will reduce the
likelihood of fraud, waste, and abuse.
FCIC is revising paragraph (a)(2)(v)(D) by revising the phrase ``.
. . any acreage of such winter barley, oat or wheat. . .'' to read ``.
. .any such winter barley, oat, or wheat acreage . . .'' These
revisions are consistent with revisions made in paragraphs (a)(2)(iii)-
(v).
FCIC is also revising paragraphs (a)(2)(v) introductory text and
(a)(2)(v)(A), (B), and (D) to change all references of ``fall planted''
to ``winter'' for consistency with changes elsewhere.
FCIC is revising paragraph (a)(2)(v)(E) to change the reference of
``fall planted acreage'' to ``winter planted acreage'' for consistency
with changes elsewhere.
10. Section 9--FCIC is replacing the phrase ``winter coverage
endorsement'' with ``Winter Coverage Endorsement'' because it is the
title of an endorsement.
FCIC is replacing the phrase ``spring final planting date'' with
the phrase ``spring type'' in paragraph (a)(4) to accurately refer to
the Special Provisions where insurable types and practices are listed.
FCIC is revising paragraph (b). The phrase ``fall final planting
date (including final planting dates in December, January and
February)'' is replaced with ``winter type'' to accurately refer to the
Special Provisions where insurable types and practices are listed.
FCIC is revising paragraph (e) to replace the phrase ``crop type''
with ``type'' in the five places it appears. This is the only paragraph
in the Crop Provisions where ``crop type'' is used. For consistency
throughout the Crop Provisions, the word ``crop'' is removed.
11. Section 11--FCIC is adding paragraph (d)(1)(v) to provide
flexibility in the Special Provisions to update the moisture levels for
each crop if it is determined that a level should be different than
what is provided in the Crop Provisions.
FCIC is revising paragraph (d)(4) by replacing the phrase
``contained in'' with the phrase ``calculated in accordance with.'' The
current provisions state that the quality adjustment factor is
contained in the Special Provisions. However, there is no such factor
stated in the Special Provisions. Instead, the quality adjustment
factor is calculated using several different steps that are contained
in the Special Provisions.
12. Section 13--FCIC is removing the phrase ``spring final planting
date'' and replacing it with the phrase ``spring type.'' FCIC is also
revising the paragraph to move the first sentence to the end of the
paragraph for ease of reading.
Comments Requested on Whether To Retain Section 9(a)(5)
Section 9(a)(5) states that damage must occur after the winter
final planting date for the producer to be eligible for a replant
payment, in counties with both winter and spring final planting dates.
Provisions in section 7(a)(2)(iii) provide guidance on whether a crop
should be replanted if damage occurs any time before the spring final
planting date, which would also encompass any time before the winter
final planting date since the winter final planting date comes before
the spring final planting date in the crop year. As such, a producer is
required to replant if damage occurs prior to the winter final planting
date; however, no replanting payment is made in that timeframe. FCIC
has received requests to remove this provision, thereby allowing
replanting payments to be made in situations where damage occurs prior
to the winter final planting date in counties with both winter and
spring final planting dates. FCIC has also received opposing feedback
requesting the provision remain intact because it is difficult or
impossible to make a determination prior to the winter final planting
date that acreage needs to be replanted or that it is practical to
replant, except in cases of widespread weather events.
In addition to consideration of the future of section 9(a)(5),
there are other provisions that may be affected by its removal. Section
9(b) states that no replanting payment is available in any circumstance
for damage in counties with only a winter final planting date.
Producers in these counties, like producers in counties with both
winter and spring final planting dates, are required to replant if
damage occurs prior to the winter final planting date, but no
replanting payment is available. FCIC has received opposition to remove
this provision, which, if removed, would allow replanting payments
prior to the winter final planting date. In addition to the same
opposing feedback FCIC received regarding removal of section 9(a)(5),
FCIC also received feedback that in counties where only a winter type
is insurable, there is a short window to replant a damaged crop.
Replanting in these counties may contribute to later planting dates
when soil temperatures may be too low for germination. Unlike in
counties where both winter and spring types are insurable, there is not
an opportunity for producers to replant a damaged winter crop in the
spring to retain coverage using the winter guarantee.
[[Page 33488]]
Further, the Winter Coverage Endorsement (WCE) provides optional
coverage for barley and wheat producers from the winter final planting
date until the spring final planting date in counties with both winter
and spring final planting dates. If damage occurs during the WCE
coverage period, the producer has three options: (1) Continue to care
for the damaged crop and coverage will continue under the terms of the
Basic Provisions, the Small Grains Crop Insurance Provisions and the
WCE; (2) replant the damaged acreage and receive a replanting payment;
or (3) destroy all remaining acreage and accept an appraised amount of
production determined in accordance with section 11(c)(1) of the Small
Grains Crop Insurance Provisions to count against the unit production
guarantee. The Common Crop Insurance Policy Basic Provisions says that
no replanting payment will be made on acreage on which one replanting
payment has already been allowed for the crop year. Assume section
9(a)(5) is removed, damage occurs prior to the winter final planting
date, and a replanting payment is made. If the same acreage that
received a replanting payment is damaged during the WCE coverage
period, then the producer's options under the WCE have been narrowed
down to two as he likely will not choose to replant knowing he will not
receive a replanting payment. When the producer elected the WCE at
sales closing time, he would have expected three options in the event
of damage.
Finally, in general, a replanting payment will not be made if
acreage is damaged and that acreage was planted before the earliest
planting date if an earliest planting date is listed in the actuarial
documents. There are counties with both winter and spring final
planting dates that currently do not have an earliest planting date
listed for the winter type. If section 9(a)(5) is removed, it is
unclear if producers will plant earlier than they have historically
planted knowing that there is a potential for a replanting payment if
the crop fails before the winter final planting date.
Specifically, FCIC requests comments on the following questions;
please provide any data and information that supports your comments:
1. Should FCIC provide a replanting payment for the winter type
prior to the winter final planting date (i.e., by removing section
9(a)(5))?
2. If section 9(a)(5) is removed, while section 9(b) is left
intact, what concerns do you have that producers who plant a winter
type in both counties would be treated differently regarding replanting
payments: Where producers in counties with both winter and spring final
planting dates would receive a replanting payment prior to the winter
final planting date and producers in counties with only a winter final
planting date would not receive a replanting payment prior to the
winter final planting date?
3. If section 9(a)(5) is removed, what concerns do you have that
the producer may not be eligible for a replanting payment under the WCE
if he has already received a replanting payment on the same acreage?
4. If section 9(a)(5) is removed, will FCIC need to create an
earliest planting date for the winter types in counties where no
earliest planting date exists to require that producers plant no
earlier than a specific date in order to be eligible for a replanting
payment?
Effective Date, Notice and Comment, and Exemptions
The Administrative Procedure Act (APA, 5 U.S.C. 553) provides that
the notice and comment and 30-day delay in the effective date
provisions do not apply when the rule involves specified actions,
including matters relating to contracts. This rule governs contracts
for crop insurance policies and therefore falls within that exemption.
This rule is exempt from the regulatory analysis requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996.
For major rules, the Congressional Review Act requires a delay 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 on the date of publication in the Federal Register. Although
not required by APA or any other law, FCIC has chosen to request
comments on this rule.
Executive Orders 12866 and 13563
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. The requirements in
Executive Orders 12866 and 13563 for the analysis of costs and benefits
apply to rules that are determined to be significant.
The Office of Management and Budget (OMB) designated this rule as
not significant under Executive Order 12866, ``Regulatory Planning and
Review,'' and therefore, OMB has not reviewed this rule and analysis of
the costs and benefits is not required under either Executive Order
12866 or 13563.
Clarity of the Regulation
Executive Order 12866, as supplemented by Executive Order 13563,
requires each agency to write all rules in plain language. In addition
to your substantive comments on this rule, we invite your comments on
how to make the rule easier to understand. For example:
Are the requirements in the rule clearly stated? Are the
scope and intent of the rule clear?
Does the rule contain technical language or jargon that is
not clear?
Is the material logically organized?
Would changing the grouping or order of sections or adding
headings make the rule easier to understand?
Could we improve clarity by adding tables, lists, or
diagrams?
Would more, but shorter, sections be better? Are there
specific sections that are too long or confusing?
What else could we do to make the rule easier to
understand?
Environmental Review
In general, the environmental impacts of rules are to be considered
in a manner consistent with the provisions of the National
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347) and the
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508). FCIC conducts programs and activities that have been determined
to have no individual or cumulative effect on the human environment. As
specified in 7 CFR 1b.4, FCIC is categorically excluded from the
preparation of an Environmental Analysis or Environmental Impact
Statement unless the FCIC Manager (agency head) determines that an
action may have a significant environmental effect. The FCIC Manager
has determined this rule will not have a significant environmental
effect. Therefore, FCIC will not prepare an environmental assessment or
environmental impact statement for this action and this rule serves as
documentation of the programmatic environmental compliance decision.
[[Page 33489]]
Executive Order 12988
This rule has been reviewed under Executive Order 12988, ``Civil
Justice Reform.'' This rule will not preempt State or local laws,
regulations, or policies unless they represent an irreconcilable
conflict with this rule. Before any judicial actions may be brought
regarding the provisions of this rule, the administrative appeal
provisions of 7 CFR part 11 are to be exhausted.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with Tribes on a government-to-government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian Tribes, on the relationship between the Federal Government
and Indian Tribes or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
RMA has assessed the impact of this rule on Indian Tribes and
determined that this rule does not, to our knowledge, have Tribal
implications that require Tribal consultation under E.O. 13175. The
regulation changes do not have Tribal implications that preempt Tribal
law and are not expected have a substantial direct effect on one or
more Indian Tribes. If a Tribe requests consultation, RMA will work
with the USDA Office of Tribal Relations to ensure meaningful
consultation is provided where changes, additions and modifications
identified in this rule are not expressly mandated by Congress.
The Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions of State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including cost benefits analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule. This
rule contains no Federal mandates, as defined in Title II of UMRA, for
State, local, and Tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
UMRA.
Federal Assistance Program
The title and number of the Federal Domestic Assistance Program
listed in the Catalog of Federal Domestic Assistance to which this rule
applies is No. 10.450--Crop Insurance.
Paperwork Reduction Act of 1995
In accordance with the provisions of the Paperwork Reduction Act of
1995 (44 U.S.C. chapter 35, subchapter I), the rule does not change the
information collection approved by OMB under control numbers 0563-0053.
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and USDA civil rights
regulations and policies, USDA, its Agencies, offices, and employees,
and institutions participating in or administering USDA programs are
prohibited from discriminating based on race, color, national origin,
religion, sex, gender identity (including gender expression), sexual
orientation, disability, age, marital status, family or parental
status, income derived from a public assistance program, political
beliefs, or reprisal or retaliation for prior civil rights activity, in
any program or activity conducted or funded by USDA (not all bases
apply to all programs). Remedies and complaint filing deadlines vary by
program or incident.
Persons with disabilities who require alternative means of
communication for program information (for example, braille, large
print, audiotape, American Sign Language, etc.) should contact the
responsible Agency or USDA TARGET Center at (202) 720-2600 or 844-433-
2774 (toll-free nationwide). Additionally, program information may be
made available in languages other than English.To file a program
discrimination complaint, complete the USDA Program Discrimination
Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and at any USDA office
or write a letter addressed to USDA and provide in the letter all the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by mail to: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410 or email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
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 as
follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
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1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
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2. Amend Sec. 457.101 as follows:
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a. Revise the introductory text;
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b. In section 1:
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i. In the definition of ``Khorasan'', remove the phrase ``to be'';
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ii. Revise the definition of ``Latest final planting date''; and
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iii. In the definition of ``Small grains'', add the phrase ``or as
otherwise specified in the actuarial documents'' at the end;
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c. Revise section 2;
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d. In section 3:
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i. In paragraph (a), remove the semicolon at the end and add a period
in its place; and
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ii. Revise paragraph (b)(2);
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e. In section 5, in the introductory text, remove the phrase ``Special
Provisions'' and add in its place the phrase ``actuarial documents'';
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f. In section 6, remove paragraph (e);
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g. In section 7:
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i. In paragraph (a)(1) introductory text, remove the word ``oats,'' and
add a comma after ``flax''; and
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ii. Revise paragraphs (a)(2) introductory text, (a)(2)(ii) thorough
(iv), (c)(2)(v) introductory text, and (c)(2)(v)(A), (B), (D), and (E);
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h. In section 9:
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i. In paragraph (a)(2), remove the phrase ``winter coverage
endorsement'' and add in its place the phrase ``Winter Coverage
Endorsement'';
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ii. In paragraph (a)(4), remove the phrase ``final planting date'' and
add in its place the word ``type'';
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iii. In paragraph (a)(5), remove the word ``fall'' and add the word
``winter'' in all places where it appears;
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iv. Revise paragraph (b);
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v. In paragraph (c)(2)(i), add a comma after ``flax''; and
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vi. In paragraph, (e) remove the phrase ``crop type'' and add the word
``type'' in all places where it appears;
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i. In section 11:
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i. Revise paragraphs (d)(1)(iii) and (iv);
[[Page 33490]]
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ii. Add paragraph (d)(1)(v); and
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iii. In paragraph (d)(4), remove the phrase ``contained in'' and add in
its place the phrase ``calculated in accordance with'';
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j. In section 12, remove the word ``fall'' and add the word ``winter''
in all places where it appears; and
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k. Revise section 13.
The revisions and additions read as follows:
Sec. 457.101 Small grains crop insurance provisions.
The Small Grains Crop Insurance Provisions for the 2022 and
succeeding crop years are as follows:
* * * * *
1. Definitions.
* * * * *
Latest final planting date. (a) The final planting date for the
spring type in all counties for which the Special Provisions designate
a spring type only;
(b) The final planting date for the winter type in all counties for
which the Special Provisions designate a winter type only; or
(c) The final planting date for the spring type in all counties for
which the Special Provisions designate both spring and winter types.
* * * * *
2. Unit Division.
(a) In addition to enterprise units provided in section 34(a) of
the Basic Provisions, for wheat only, you may elect separate enterprise
units by type, as provided in this section, if allowed by the actuarial
documents. If you elect enterprise units by type, you may not elect
enterprise or optional units by irrigation practices.
(1) You may elect separate enterprise units by type unless
otherwise specified in the Special Provisions. For example, if you have
winter and spring types, you may elect one enterprise unit for the
spring type or one enterprise unit for the winter type, or separate
enterprise units for both types. Any acreage which is not reported and
insured as an enterprise unit will be insured as basic or optional
units, if requirements are met. For example, if you only have winter
and spring types, you may have an enterprise unit for the winter type
acreage and basic or optional units for the spring type acreage.
(2) You must separately meet the requirements in section 34(a)(4)
of the Basic Provisions for each enterprise unit.
(3) If you elected separate enterprise units for multiple types and
we discover enterprise unit qualifications are not separately met for
all types in which you elected enterprise unit and such discovery is
made:
(i) On or before the acreage reporting date, you may elect to
insure:
(A) All types in which you elected an enterprise unit for meeting
the requirements in section 34(a)(4) as separate enterprise units, and
basic or optional units for any acreage that is not reported and
insured as an enterprise unit, whichever you report on your acreage
report and for which you qualify;
(B) One enterprise unit for all acreage of the crop in the county
provided you meet the requirements in section 34(a)(4); or
(C) Basic or optional units for all acreage of the crop in the
county, whichever you report on your acreage report and for which you
qualify; or
(ii) At any time after the acreage reporting date, your unit
structure will be one enterprise unit for all acreage of the crop in
the county provided you meet the requirements in section 34(a)(4).
Otherwise, we will assign the basic unit structure for all acreage of
the crop in the county.
(4) If you elected an enterprise unit for only one type and we
discover you do not qualify for an enterprise unit for that type and
such discovery is made:
(i) On or before the acreage reporting date, your unit division for
all acreage of the crop in the county will be based on basic or
optional units, whichever you report on your acreage report and for
which you qualify; or
(ii) At any time after the acreage reporting date, we will assign
the basic unit structure for all acreage of the crop in the county.
(b) In addition to, or instead of, establishing optional units as
provided in section 34(c) of the Basic Provisions, for wheat only,
separate optional units may be established for each wheat type
(designated in actuarial documents and including any type insured by
written agreement) if each optional unit contains only initially-
planted acreage of the type.
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
* * * * *
(b) * * *
(2) In counties with both winter and spring sales closing dates for
the insured crop (excluding counties that have a spring sales closing
date and a winter sales closing date only applicable to the Winter
Coverage Endorsement):
(i) If you do not have any insurable winter-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
(ii) If you have any insurable winter-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 winter sales closing
date. Winter-planted acreage of the insured crop must be reported and
insured if it meets the requirements in section 6.
* * * * *
7. Insurance Period.
* * * * *
(a) * * *
(2) For barley, oat, and wheat, the following limitations apply:
* * * * *
(ii) Whenever the Special Provisions designate only a winter type,
any acreage of winter barley, oats, or wheat damaged before such final
planting date, to the extent that producers in the area would normally
not further care for the crop, must be replanted to a winter type of
the insured crop unless we agree that replanting is not practical.
(iii) Whenever the Special Provisions designate both winter and
spring types:
(A) Any winter barley, oat, or wheat acreage that is damaged before
the spring final planting date, to the extent that producers in the
area would normally not further care for the crop, must be replanted to
a winter type of the insured crop to maintain insurance based on the
winter type unless we agree that replanting is not practical. If it is
not practical to replant to the winter type of barley, oats, or wheat,
but is practical to replant to a spring type, you must replant to a
spring type to keep your insurance based on the winter type in force.
(B) Any winter barley, oat, or wheat acreage that is replanted to a
spring type of the same crop when it was practical to replant the
winter type will be insured as the spring type and the production
guarantee, premium, projected price, and harvest price applicable to
the spring type will be used. In this case, the acreage will be
considered to be initially planted to the spring type.
(C) Notwithstanding sections 7(a)(2)(iii)(A) and (B), if you have
elected coverage under a barley or wheat Winter Coverage Endorsement
(if available in the county), insurance will be in accordance with the
endorsement.
(D) Any winter barley, oat, or wheat acreage planted after the end
of the late planting period will not be insured unless you request such
coverage on or before the spring sales closing date, and we inspect and
determine that the
[[Page 33491]]
acreage has an adequate stand in the spring to produce the yield used
to determine your production guarantee. However, if we fail to inspect
the acreage by the spring final planting date, insurance will attach as
specified in section 7(a)(2)(iii)(D)(3).
(1) Your request for coverage must include the location and number
of acres of winter barley, oats, or wheat.
(2) The winter barley, oats, or wheat will be insured as a spring
type for the purpose of the production guarantee, premium, projected
price, and harvest price, if applicable.
(3) Insurance will attach to such acreage on the date we determine
an adequate stand exists or on the spring final planting date if we do
not determine adequacy of the stand by the spring final planting date.
(iv) Whenever the Special Provisions designate a spring type, any
spring barley, oat, or wheat acreage damaged before such final planting
date, to the extent that producers in the area would normally not
further care for the crop, must be replanted to a spring type of the
insured crop unless we agree that replanting is not practical.
(v) Whenever the Special Provisions designate only a spring type,
any winter barley, oat, or wheat acreage will not be insured unless you
request such coverage on or before the spring sales closing date, and
we inspect and give written confirmation that the acreage has an
adequate stand in the spring to produce the yield used to determine
your production guarantee. However, if we fail to inspect the acreage
by the spring final planting date, insurance will attach as specified
in section 7(a)(2)(v)(C).
(A) Your request for coverage must include the location and number
of acres of winter barley, oats, or wheat.
(B) The winter barley, oats, or wheat will be insured as a spring
type for the purpose of the production guarantee, premium, projected
price, and harvest price, if applicable.
* * * * *
(D) Any such winter barley, oats, or wheat acreage that is damaged
after it is accepted for insurance but before the spring final planting
date, to the extent that producers in the area would normally not
further care for the crop, must be replanted to a spring type of the
insured crop unless we agree it is not practical to replant.
(E) If winter-planted acreage is not to be insured it must be
recorded on the acreage report as uninsured winter-planted acreage.
* * * * *
9. Replanting Payments.
* * * * *
(b) No replanting payment will be made for acreage initially
planted to a winter type of the insured crop (including rye) in any
county for which the Special Provisions contain only a winter type.
* * * * *
11. Settlement of Claim.
* * * * *
(d) * * *
(1) * * *
(iii) 14.0 percent for oats;
(iv) 16.0 percent for rye and buckwheat; or
(v) As otherwise provided in the Special Provisions.
* * * * *
13. Prevented Planting.
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. In counties for which
the Special Provisions designate a spring type, your prevented planting
production guarantee will be based on your approved yield for spring-
planted acreage of the insured crop.
Sec. 457.118 [Removed and Reserved]
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3. Remove and reserve Sec. 457.118.
Richard Flournoy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2021-13113 Filed 6-24-21; 8:45 am]
BILLING CODE 3410-08-P
