[Federal Register Volume 83, Number 236 (Monday, December 10, 2018)]
[Rules and Regulations]
[Pages 63383-63389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26559]
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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. 83, No. 236 / Monday, December 10, 2018 /
Rules and Regulations
[[Page 63383]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket No. FCIC-18-0002]
RIN 0563-AC57
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 (Crop Provisions). The intended effect of this action is to
update existing policy provisions and definitions to better reflect
current agricultural practices and allow for variations in insurance
provisions based on regionally-specific agronomic conditions and
potential future expansions. The changes are to be effective for the
2020 and succeeding crop years.
DATES: This final rule is effective April 30, 2019. However, FCIC will
accept written comments on this final rule until close of business
January 9, 2019. FCIC will consider these comments and make changes to
the rule if warranted.
ADDRESSES: FCIC prefers that interested persons submit comments
electronically through the Federal eRulemaking Portal. Interested
persons may submit comments, identified by Docket ID No. FCIC-18-0002,
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the 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 to http://www.regulations.gov, including any
personal information provided. Once these comments are posted to this
website, the public can access all comments at its convenience from
this website. All comments must include the agency name and docket
number or Regulatory Information Number (RIN) for this rule. For
detailed instructions on submitting comments and additional
information, see http://www.regulations.gov. If interested persons are
submitting comments electronically through the Federal eRulemaking
Portal and want to attach a document, FCIC requests use of a text-based
format. If interested persons wish to attach a document that is a
scanned Adobe PDF file, it must be scanned as text and not as an image,
thus allowing FCIC to search and copy certain portions of the
submissions. For questions regarding attaching a document that is a
scanned Adobe PDF file, please contact the Risk Management Agency (RMA)
Web Content Team at (816) 823-4694 or by email at
[email protected].
Privacy Act: Anyone is able to search the electronic form of all
comments received for any dockets by the name of the person submitting
the comment (or signing the comment, if submitted on behalf of an
association, business, labor union, etc.). Interested persons may
review the complete User Notice and Privacy Notice for Regulations.gov
at http://www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT: Francie Tolle, Director, Product
Administration and Standards Division, Risk Management Agency, United
States Department of Agriculture, Beacon Facility, Stop 0812, Room 421,
P.O. Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730.
SUPPLEMENTARY INFORMATION:
Background
FCIC amends the Common Crop Insurance Regulations (7 CFR part 457)
by revising 7 CFR 457.151 Forage Seeding Crop Insurance Provisions
(``Crop Provisions''), to be effective for the 2020 and succeeding crop
years. The intended effect of this action is to update existing policy
provisions and definitions to better reflect current agricultural
practices and allow for variations in insurance provisions based on
regional agronomic conditions and potential future expansions.
The changes are as follows:
1. FCIC is removing the paragraph immediately preceding section 1,
which refers to the order of priority if a conflict exists among the
policy provisions. This same provision is contained in the Common Crop
Insurance Policy, Basic Provisions (``Basic Provisions''). Therefore,
the appearance here is duplicative and should be removed from the Crop
Provisions.
2. Section 1--FCIC is adding the definition of ``adequate stand.''
The new definition will allow RMA to revise loss adjustment procedures
to rely upon the number of live alfalfa stems rather than the number of
live plants (normal stand) for making loss determinations for forage
containing more than 60 percent alfalfa. Plants can have more than one
stem. Extension research across major forage growing areas has
demonstrated that the number of live alfalfa stems is more closely
correlated with future yield than the number of live plants when
alfalfa is the dominant component of the forage mixture. Loss
determinations for forage types that contain less than 60 percent
alfalfa or no alfalfa at all, such as red clover, will have no change
to existing loss adjustment procedures and, as stated below, will be
based upon the normal planting density because there is no demonstrable
correlation between future yield and the number of live alfalfa stems
when the forage type does not contain at least 60 percent alfalfa.
FCIC is adding the definition of ``amount of insurance.'' The term
``amount of insurance'' refers to the dollar amount of insurance per
acre obtained by multiplying the reference maximum dollar amount shown
in the actuarial documents by the coverage level percentage elected by
the insured. FCIC adds this definition to provide clarity because the
term is used multiple times in the Crop Provisions but is not defined.
FCIC is removing the definition of ``nurse crop (companion crop)''
and adding the definition of ``companion crop''. FCIC also replaces the
definition ``nurse crop (companion crop)'' with the term ``companion
crop'' throughout the
[[Page 63384]]
Crop Provisions. FCIC replaces this definition to reduce ambiguity and
increase clarity by using one term instead of referring to ``nurse
crop'' and ``companion crop'' interchangeably.
FCIC is revising the definition of ``fall planted'' by adding the
phrase ``except when specified in the Special Provisions,'' following
the phrase ``A forage crop seeded after June 30'' to allow FCIC to
provide area-specific dates that have distinctions outside of this
range. For example, Maine is currently recognized as having a single
growing season with planting dates that begin before June 30 but extend
beyond June 30, which is inconsistent with existing definitions for
``spring planted'' and ``fall planted.'' This change also allows FCIC
to be responsive to new or evolving regional conditions as needed in
the future.
FCIC is revising the definition of ``good farming practices.'' The
revised definition adds the phrase ``in lieu of the definition in the
Basic Provisions'' to clarify that the ``good farming practices''
definition in the Crop Provisions will replace the definition contained
in the Basic Provisions. The definition in the Basic Provisions is not
appropriate for forage seeding because it includes references to the
insured's approved yield, but these Crop Provisions provide coverage
for a failed forage seeding, not for yield losses below an insured's
approved yield. The revised definition also replaces the phrase
``normal stand'' with ``adequate stand,'' because the adequate stand
will be used to determine if the forage seeding was successful. The
revised definition also replaces the phrase ``and are those recognized
by the Cooperative State Research, Education, and Extension Service as
compatible with agronomic and weather conditions in the county'' with
``which are those generally recognized by agricultural experts or
organic agricultural experts, as compatible with agronomic and weather
conditions for the area'' to be more consistent with the definition of
``good farming practices'' contained in the Basic Provisions because,
even though the definition in the Basic Provisions is no longer
applicable, some of the same principles apply. These changes are
intended to ensure that the definition is consistent with the practices
applicable to forage seeding crops.
FCIC is revising the definition of ``harvest'' to remove the word
``only'' before ``grazed'' to clarify that the acreage does not have to
be exclusively grazed to not be considered harvested. If the acreage is
grazed at any time regardless of whether the crop is removed from the
field, it is not considered harvested.
FCIC is removing the definition of ``normal stand'' and replacing
it with the definition of ``normal planting density.'' The new
definition of ``normal planting density'' simplifies the previous
definition of ``normal stand'' by replacing the phrase ``a population
of live plants per square foot that meets the minimum required number
of plants'' with the more concise phrase ``the minimum number of live
plants per square foot.'' The normal planting density will be used to
determine if the stand qualifies for replanting payments. The normal
planting density will result in more accurate replanting payments than
basing replant determinations on an adequate stand because not all
stems may have emerged when replanting determinations are made.
FCIC is revising the definition of ``planted acreage'' by removing
the reference to ``provisions in section 1'' and replacing it with the
more specific phrase ``definition in''. This is not a substantive
change but it makes it consistent with other definitions that refer to
the definitions in the Basic Provisions.
FCIC is revising the definition of ``replanting'' by removing the
duplicative language that is already contained in the Basic Provisions.
FCIC is revising the remaining sentence of the current definition by
adding the phrase ``in addition to the definition in the Basic
Provisions'' to clarify that the ``replanting'' definition in the Crop
Provisions will add to the definition contained in the Basic
Provisions, replacing the phrase ``replacing'' with the word
``placing'' as it is a more accurate term for seeding an existing
stand, and replacing the phrase ``which results in'' with the word
``using'' to convey that using a reduced seeding rate to replace seed
into an existing damaged stand will not be considered replanting.
FCIC is revising the definition of ``sales closing date.'' The
revised definition replaces the term ``fall seeded'' with ``fall
planted.'' The terms ``fall seeded'' and ``fall planted'' had been used
interchangeably. This change will add clarity and reduce confusion
because ``fall planted'' is defined within the policy, but ``fall
seeded'' is not.
FCIC proposes to revise the definition of ``spring planted.'' The
revised definition adds the phrase ``except when specified in the
Special Provisions,'' following the phrase ``A forage crop seeded
before July 1,'' to allow FCIC to provide area specific dates that have
distinctions outside of this range. For example, Maine is currently
recognized as having a single growing season with planting dates that
begin before June 30 but extend beyond June 30, which is inconsistent
with existing definitions for ``spring planted'' and ``fall planted''.
This change also allows FCIC to be responsive to new or evolving
regional conditions as needed in the future. FCIC proposes this change
to reduce ambiguity and increase clarity because the definition of
``crop year'' references the calendar year of the planted acreage.
3. Section 5--FCIC is replacing the cancellation and termination
date table with a new date table. The new dates allow for expansion of
the fall-planted practice and align forage seeding cancellation and
termination dates with the dates for other fall-planted crops in each
state. Maine's cancellation and termination dates will remain unchanged
at March 15th to allow time after premium billing for a termination
decision to be made. In all other states, the cancellation date will be
July 31st and termination date will be September 30th to allow time
after premium billing for a termination decision to be made.
4. Section 6--FCIC is replacing the term ``acreage report date''
with the term ``acreage reporting date.'' FCIC is making this change
because the term ``acreage reporting date'' is defined in the Basic
Provisions and also appears in the Special Provisions.
5. Section 7--FCIC is replacing ``a normal stand'' with ``an
adequate stand'' and ``nurse crops'' with ``companion crops'' to
incorporate the references to the new terms stated above.
6. Section 8--FCIC is revising section 8(a) to simplify this
section by removing references to states and counties and applying the
same replanting requirements to all insurable areas. FCIC is removing
section 8(b) which requires some California counties to replant if
damage occurred anytime within the crop year, compared to all other
areas, where replanting is only required for damage that occurred
before the final planting date. This change was done concurrently with
revisions to section 11, which outlines when replanting payments are
allowed based on region and spring or fall planting. FCIC is also
replacing the phrase ``a normal stand'' with ``the normal planting
density,'' consistent with the changes above regarding the definition
change.
7. Section 9--FCIC is revising section 9(c) to make it be
grammatically correct.
FCIC also is removing all state and county specific end of
insurance dates and instead referring to the end of insurance period
date shown in the actuarial documents. This change will simplify the
provision and allow FCIC to provide area specific dates, allow for
[[Page 63385]]
future program expansion, and allow FCIC to continue to be responsive
to new or evolving regional conditions as needed in the future.
8. Section 10--FCIC is replacing the phrase ``a stand of forage
that occur'' with the phrase ``an adequate stand that occurs.'' This
change reduces ambiguity and clarifies the provisions because
``adequate stand'' is a defined term but ``stand of forage'' is not,
which could lead to different results when determining losses.
9. Section 11--In section 11(a), FCIC is moving the phrase ``unless
specified otherwise in the Special Provisions,'' from subparagraph
(a)(1) (addressing California only) to the main paragraph (addressing
all areas) to allow FCIC greater flexibility in determining regional
specific distinctions for replanting payments and to protect program
integrity and insured interests by allowing FCIC, with assistance from
forage subject matter experts and regional offices, to address regional
specific production practices.
FCIC is moving the phrase ``It is practical to replant;'' from
subparagraph (a)(2)(iii) (addressing Lassen, Modoc, Mono, Shasta,
Siskiyou Counties, California and all other states) to the subparagraph
11(a)(1) (addressing all areas). FCIC is moving this phrase to
consistently apply the requirement that it be practical to replant in
order to receive a replanting payment across all counties and states.
In section 11(a)(2), FCIC is moving the phrase ``We give written
consent to replant;'' from subparagraph (a)(2)(iv) (addressing Lassen,
Modoc, Mono, Shasta, Siskiyou Counties, California and all other
states) to the subparagraph 11(a)(2) (addressing all areas). FCIC is
moving this phrase to require written consent by approved insurance
providers as a requirement of replanting payments across all counties
and states. FCIC is renumbering subsequent paragraphs.
In the newly designated section 11(a)(3) FCIC is replacing the
phrase ``within the insurance period'' with the phrase ``before the
spring final planting date in the actuarial documents.'' FCIC is
replacing this phrase so that allowable replanting payments correlate
with replanting requirements. Specifically, this change corresponds
with the removal of section 8(b), which removed the replanting
requirement in California counties for damage occurring after the
spring final planting date. Therefore, the spring final planting date
is a more appropriate timeframe for defining when replanting payments
are available. FCIC is replacing ``a normal stand'' with ``the normal
planting density'' consistent with the changes made above.
FCIC is revising the newly designated section 11(a)(4) to remove
the list of specific California counties. This list is not needed
because the Special Provisions will include any county differences in
replanting payment provisions.
FCIC is removing section 11(a)(4)(i), renumbering subsequent
paragraphs, and adding the phrase ``spring or '' before ``fall
planted'' in the newly designated section 11(a)(4)(i) to extend
replanting payment eligibility to include both fall and spring planted
practices, as opposed to the current provisions that allowed replanting
only for a failed fall seeding in counties that designated both fall
and spring final planting dates. FCIC is adding this language in order
to allow replanting payments for producers engaged in the spring
planted practice. A producer that plants a forage crop in the spring
suffers the same financial consequences as a producer of a fall planted
crop, if that crop fails to emerge or suffers damage and needs to be
replanted. Therefore, FCIC is expanding coverage to allow replanting
payments for spring planted forage as well as fall planted forage.
Additionally, as the plan requires replanting to maintain the
insurance, this will provide some compensation to cover replanting
costs. Additionally, FCIC is replacing the phrase ``a normal stand''
with the phrase ``the normal planting density,'' consistent with
definition change.
In the newly designated section 11(a)(2)(ii), FCIC is revising the
paragraph to clarify the provision only pertains to the fall planted
practice, because a separate provision is added below to address the
spring planted practice. FCIC is also adding the word ``final'' before
``planting date'' to eliminate ambiguity between spring planting dates.
FCIC is also correcting the grammar.
FCIC is revising the newly designated section 11(a)(2)(iii) to
state ``If spring planted, the original planting took place after the
earliest planting date shown in the Special Provisions, and the acreage
is replanted by the spring final planting date shown in the Special
Provisions.'' FCIC is adding this language in order to allow replanting
payments for producers engaged in the spring planted practice. A
producer that plants a forage crop in the spring suffers the same
financial consequences as a producer of a fall planted crop, if that
crop fails to emerge or suffers damage and needs to be replanted.
Therefore, FCIC is expanding coverage to allow replanting payments for
spring planted forage as well as fall planted forage. Additionally, as
the plan requires replanting to maintain the insurance, this will
provide some compensation to cover replanting costs.
In section 11(b), FCIC is adding ``(a)'' directly after ``section
13'' to more specifically reference section 13(a). This addition
clarifies which specific part of section 13 this provision is
referencing.
10. Section 12--In section 12(b), FCIC removes the phrase,
``(Duties in the Event of Damage or Loss)'' as the parenthetical
section name is unnecessary and removing these titles will prevent FCIC
from having to revise the Crop Provisions should these section titles
change in the Basic Provisions.
In section 12(b), FCIC is also adding the adjective ``damaged''
before ``fall planted acreage'' and removing the phrase ``that is
damaged'' after the phrase ``fall planted acreage'' to simplify the
language and clarify the provisions.
11. Section 13--FCIC is removing the sub-section designation of
``(a)'' as it is not needed in the introductory paragraph. FCIC is also
adding paragraph designation ``(a)'' and the statement ``Each type and
practice:'' directly following the introductory paragraph in order to
clarify and simplify the section, because the steps for settling a
claim should be followed first for each type and practice and then
summed to any applicable unit.
FCIC is revising section 13(a)(1) to change the phrase
``Multiplying the insured acreage of each type and practice by the
amount of insurance for the applicable type and practice;'' to
``Determining the value of all insured acreage by multiplying the
number of insured acres by the dollar amount of insurance;''. This
change is intended to clarify that this is the outcome of the
calculation in this step and to remove reference to type and practices
because type and practice instructions are already stated in 13(a).
FCIC is removing 13(a)(2), because the step for totaling results by
type and practice from 13(a) is moved to the newly designated 13(b).
FCIC is revising section 13(a)(3) to change the phrase
``multiplying the total acres with an established stand for the insured
acreage of each type and practice in the unit by the amount of
insurance for the applicable type and practice;'' to ``determining the
value of the acreage with no insurable losses, by multiplying the
dollar amount of insurance by the insured acreage that: [.]'' This
change is intended to simplify the policy language by removing the term
``established stand,'' which was referenced within the settlement steps
of section 13(b); clarifying the outcome
[[Page 63386]]
of the calculation in this step by adding the phrase ``value of the
acreage with no insurable losses''; and removing the phrase ``for each
type and practice'' because this instruction is already stated in
13(a). In addition, FCIC designates 13(a)(3) as 13(a)(2).
FCIC is moving the settlement steps in section 13(b), previously
referred to as an ``established stand'' to section 13(a)(2)(i)-(iv). In
moving these settlement steps, FCIC is also revising the sub-sections
13(a)(2)(i)-(iv) to each start with a verb to provide more cohesive
language and reduce redundancy between the leading text and sub-
paragraphs.
FCIC is adding a new section 13(a)(3) to state, ``Determining the
value of the acreage with partial insurable losses, by multiplying the
dollar amount of insurance by the number of insured acres that have a
stand less than 75 percent but more than 55 percent of an adequate
stand, by 50 percent (0.5);''. This step was previously captured in
section 13(c), which stated, ``The amount of indemnity on any spring
planted acreage determined in accordance with section 13(a) will be
reduced 50 percent if the stand is less than 75 percent but more than
55 percent of a normal stand.'' FCIC is moving this step to section
13(a)(3) so that all steps for settling a claim throughout section 13
are presented in sequential order. FCIC is updating the language of
this step to clarify that the outcome of the calculation in this step
is determining the value of acreage with partial insurable losses by
adding the phrase ``determining the value of the acreage with partial
insurable losses''. FCIC is also removing reference to spring planted
acreage because the steps for settling a claim are first done by any
applicable unit, which is already defined to allow basic units by
spring planted and fall planted acreage. FCIC is replacing the term ``a
normal stand'' with the term ``an adequate stand,'' consistent with the
new definition. FCIC is removing section 13(c) because it is
incorporated into section 13(a)(3), and it is no longer needed.
FCIC is revising section 13(a)(4), to state ``Adding the results in
section 13(a)(2) and section 13(a)(3);''. This revision calculates the
total value of the acreage with no insurable loss by adding together
the value of acreage with no insurable loss plus the value of acreage
with partial insurable loss. FCIC removes the previous language because
the step for totaling results by type and practice from 13(a) is moved
to the newly designated 13(b).
FCIC is updating section 13(a)(5) reference of section 13(a)(2) to
section 13(a)(1) and change the words ``result'' to ``results''. This
step will function as subtracting the total value of the acreage with
no insurable loss from the total value of all insured acreage to
determine the total value of acreage with insurable losses. This
calculation will be for each type and practice. FCIC is also removing
the word ``and'' at the end of the section as it is not needed for this
step.
FCIC is revising 13(a)(6) to update the section reference from
section 13(a)(5) to 13(a)(3). FCIC is also adding the word ``and'' at
the end of the section 13(a)(6) to provide a cohesive transition to the
final step for settlement of a claim in 13(b).
FCIC is adding section 13(b) to state ``totaling the results in
section 13(a).'' Totaling results for each type and practice to any
applicable unit was previously included twice in the steps for settling
a claim. With this revision, totaling results for each type and
practice is only performed once.
FCIC is revising the indemnity calculation example to portray the
revised steps for settlement of a claim in section 13. The revised
example demonstrates the difference in calculations when a portion of
the acreage has a stand between 55 and 75 percent of an adequate stand
versus a stand with less than 55 percent of an adequate stand.
Additional revisions to the indemnity calculation example include
replacing each instance of ``remaining stand of 75 percent or greater''
with ``remaining stand of 75 percent of an adequate stand or greater''
and to replace ``75% stand or greater'' with ``75% of an adequate stand
or greater'' to reduce ambiguity and clarify that loss determinations
are to be determined relative to adequate stand. In the indemnity
calculation, FCIC also is replacing ``$100.00'' with ``$100'' and
``$90.00'' with ``90.'' This change simplifies the example
calculations.
Notice and Comment
The FCIC is issuing this final rule without opportunity for prior
notice and comment. The Administrative Procedure Act (APA) exempts
rules ``relating to agency management or personnel or to public
property, loans, grants, benefits, or contracts'' from the statutory
requirement for prior notice and opportunity for public comment (5
U.S.C. 553(a)(2)). A Federal crop insurance policy is a contract and is
thus exempt from APA notice-and-comment procedures. Previously, changes
made to the Federal crop insurance policies codified in the Code of
Federal Regulations were required to be implemented through the notice-
and-comment rulemaking process. Such action was not required by the
APA, which exempts contracts. Rather, the requirement originated with a
notice USDA published in the Federal Register on July 24, 1971 (36 FR
13804), stating that the Department of Agriculture would, to the
maximum extent practicable, use the notice-and-comment rulemaking
process when making program changes, including those involving
contracts. FCIC complied with this notice over the subsequent years. On
October 28, 2013, USDA published a notice in the Federal Register (78
FR 64194) rescinding the prior notice, thereby making contracts again
exempt from the notice-and-comment rulemaking process. This exemption
applies to the 30-day notice prior to implementation of a rule.
Therefore, the policy changes made by this final rule are effective
April 30, 2019 in the Federal Register.
However, FCIC is providing a 30-day comment period and invites
interested persons to participate in this rulemaking by submitting
written comments. To assist in analyzing the comments, FCIC requests
that commenters include the number and heading corresponding to their
comment, along with any applicable supporting data or references. FCIC
will consider the comments received and may conduct additional
rulemaking based on the comments.
The changes will be effective for the 2020 and succeeding crop
years.
Executive Orders 12866, 13563, 13771 and 13777
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. Executive Order 13777,
``Enforcing the Regulatory Reform Agenda,'' established a federal
policy to alleviate unnecessary regulatory burdens on the American
people. The Office of Management and Budget (OMB) designated this rule
as not significant under Executive Order 12866, ``Regulatory Planning
and Review,'' and therefore, OMB has not reviewed this rule. The rule
is not subject to Executive Order 13771,
[[Page 63387]]
``Reducing Regulation and Controlling Regulatory Costs.''
Paperwork Reduction Act of 1995
Pursuant to the provisions of the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35, subchapter I), the collections of information in
this rule have been approved by OMB under control number 0563-0053.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act of 2002,
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.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA),
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. This rule contains no Federal mandates (under the
regulatory provisions of title II of the 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.
Executive Order 13132
It has been determined under section 1(a) of Executive Order 13132,
Federalism, that this rule does not have sufficient implications to
warrant consultation with the States. The provisions contained in this
rule will not have a substantial direct effect on States, or on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.
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.
The Federal Crop Insurance Corporation 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. If a Tribe requests consultation, the
Federal Crop Insurance Corporation will work with the Office of Tribal
Relations to ensure meaningful consultation is provided where changes,
additions and modifications identified herein are not expressly
mandated by Congress.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation. For
instance, all producers are required to submit an application and
acreage report to establish their insurance guarantees and compute
premium amounts, and all producers are required to submit a notice of
loss and production information to determine the indemnity amount for
an insured cause of crop loss. Whether a producer has 10 acres or 1000
acres, there is no difference in the kind of information collected. To
ensure crop insurance is available to small entities, the Federal Crop
Insurance Act (FCIA) authorizes FCIC to waive collection of
administrative fees from limited resource farmers. FCIC believes this
waiver helps to ensure that small entities are given the same
opportunities as large entities to manage their risks through the use
of crop insurance. A Regulatory Flexibility Analysis has not been
prepared since this regulation does not have a significant impact on a
substantial number of small entities, and, therefore, this regulation
is exempt from the provisions of the Regulatory Flexibility Act (5
U.S.C. 605).
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which requires intergovernmental consultation with State and
local officials. See 2 CFR part 415, subpart C.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988 on civil justice reform. The provisions of this rule will not
have a retroactive effect. The provisions of this rule will preempt
State and local laws to the extent such State and local laws are
inconsistent herewith. With respect to any direct action taken by FCIC
or action by FCIC directing the insurance provider to take specific
action under the terms of the crop insurance policy, the administrative
appeal provisions published at 7 CFR part 11 must be exhausted before
any action against FCIC for judicial review may be brought.
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, or safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
List of Subjects in 7 CFR Part 457
Crop insurance, Forage seeding, Reporting and recordkeeping
requirements.
Final Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation amends 7 CFR part 457 effective for the 2020 and
succeeding crop years as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
0
1. The authority citation for part 457 continues to read as follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
0
2. Amend Sec. 457.151 as follows:
0
a. Remove ``2003'' and add ``2020'' in its place in the introductory
text;
0
b. Remove the undesignated paragraph immediately preceding section 1;
0
c. In section 1:
0
i. Add in alphabetical order the definitions of ``adequate stand'',
``amount of insurance'', and ``companion crop'';
0
ii. Revise the definition of ``good farming practices'';
0
iii. In the definition of ``harvest'' remove the word ``only'';
0
iv. Add in alphabetical order the definition of ``normal planting
density'';
0
v. Remove the definitions of ``normal stand'' and ``nurse crop
(companion crop)'';
0
vi. Revise the definitions of ``planted acreage'', ``replanting'', and
``sales closing date'';
0
d. Revise section 5;
0
e. In section 6 remove the phrase ``acreage report date'' and add the
phrase ``acreage reporting date'' in its place;
[[Page 63388]]
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f. In section 7:
0
i. In paragraph (b) remove the phrase ``a normal'' and add the phrase
``an adequate'' in its place;
0
ii. In paragraph (d) remove the word ``nurse'' and add the word
``companion'' in its place;
0
g. Revise section 8;
0
h. In Section 9;
0
i. Revise paragraph (c);
0
ii. Revise paragraph (g);
0
i. In section 10 in the introductory text remove the phrase ``stand of
forage that occur'' and add the phrase ``an adequate stand that
occurs'' in its place;
0
j. In section 11:
0
i. Revise paragraph (a);
0
ii. In paragraph (b) add the term ``(a)'' directly following the number
``13'';
0
k. In paragraph 12(b) remove the phrase ``(Duties in the Event of
Damage or Loss)'', add the word ``damaged'' preceding the term ``fall
planted acreage'', and remove the phrase ``that is damaged''; and
0
l. Revise section 13.
The revisions and additions read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
* * * * *
1. Definitions.
Adequate stand. The number shown in the Special Provisions,
representing:
(a) For forage containing 60 percent or more alfalfa, the minimum
required number of live alfalfa stems per square foot that are two
inches or greater in height; or
(b) For forage containing less than 60 percent alfalfa, the normal
planting density.
Amount of insurance. The dollar amount of insurance per acre
obtained by multiplying the reference maximum dollar amount shown in
the actuarial documents by the coverage level percentage you elect.
Companion crop. A crop seeded into the same acreage as another
crop, that is intended to be harvested separately, and that is planted
to improve growing conditions for the crop with which it is grown.
* * * * *
Good farming practices. In lieu of the definition in the Basic
Provisions, the cultural practices generally in use in the county for
the crop to make normal progress toward maturity and produce an
adequate stand and which are those generally recognized by agricultural
experts or organic agricultural experts, as compatible with agronomic
and weather conditions for the area.
* * * * *
Normal planting density. The number of live plants per square foot
as shown in the Special Provisions.
* * * * *
Planted acreage. In addition to the definition in the Basic
Provisions, land on which seed is initially spread onto the soil
surface by any method and subsequently is mechanically incorporated
into the soil in a timely manner and at the proper depth will be
considered planted, unless otherwise provided by the Special
Provisions, actuarial documents, or written agreement.
Replanting. In addition to the definition in the Basic Provisions,
placing new seed into an existing damaged stand, using a reduced
seeding rate from the original seeding rate, will not be considered
replanting.
Sales closing date. In lieu of the definition contained in the
Basic Provisions, a date contained in the Special Provisions by which
an application must be filed and by which you may change your crop
insurance coverage for a crop year. If the Special Provisions provide a
sales closing date for both fall planted and spring planted practices
for the insured crop and you plant any insurable fall planted acreage,
you may not change your crop insurance coverage after the fall sales
closing date for the fall planted practice.
* * * * *
5. Cancellation and Termination Dates.
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are:
------------------------------------------------------------------------
State Cancellation Termination
------------------------------------------------------------------------
Maine........................... March 15.......... March 15.
All other states................ July 31........... September 30.
------------------------------------------------------------------------
* * * * *
8. Insurable Acreage.
In addition to the provisions of section 9 of the Basic Provisions,
any acreage of the insured crop damaged before the final planting date,
to the extent that such acreage has less than 75 percent of a normal
planting density, must be replanted unless we agree that it is not
practical to replant.
9. Insurance Period.
* * * * *
(c) The first harvest after the late harvest date, if a late
harvest date is specified in the Special Provisions (You may harvest
the crop as often as practical in accordance with good farming
practices on or before the late harvest date);
* * * * *
(g) The end of insurance period date shown in the actuarial
documents.
* * * * *
11. Replanting Payment
(a) Unless otherwise specified in the Special Provisions, a
replanting payment is allowed if:
(1) It is practical to replant;
(2) We give written consent to replant;
(3) In California, acreage planted to the insured crop is damaged
by an insurable cause of loss occurring before the spring final
planting date in the actuarial documents to the extent that less than
75 percent of the normal planting density remains and the crop can
reach maturity before the end of the insurance period;
(4) In all other states:
(i) The insured spring or fall planted acreage is damaged by an
insurable cause of loss to the extent that less than 75 percent of the
normal planting density remains;
(ii) If fall planted, the acreage is replanted the following spring
by the spring final planting date; and
(iii) If spring planted, the original planting took place after the
earliest planting date shown in the Special Provisions; and the acreage
is replanted by the spring final planting date shown in the Special
Provisions.
* * * * *
13. Settlement of Claim
In the event of loss or damage covered by this policy, we will
settle your claim on any unit by:
(a) Each type and practice:
(1) Determining the value of all insured acreage by multiplying the
number of insured acres by the dollar amount of insurance;
(2) Determining the value of the acreage with no insurable losses,
by multiplying the dollar amount of insurance by the insured acreage
that:
(i) Has at least 75 percent of an adequate stand;
(ii) Was abandoned or put to another use without our prior written
consent;
(iii) Was damaged solely by an uninsured cause; or
(iv) Was harvested and not reseeded.
(3) Determining the value of the acreage with partial insurable
losses, by multiplying the dollar amount of insurance by the number of
insured acres that have a stand less than 75 percent but more than 55
percent of an adequate stand, by 50 percent (0.5);
(4) Adding the results in section 13(a)(2) and section 13(a)(3);
(5) Subtracting the results in section 13(a)(4) from the results in
section 13(a)(1);
(6) Multiplying the result in section 13(a)(3) by your share; and
[[Page 63389]]
(b) Totaling the results in section 13(a).
Example: Assume you have a 100 percent share in 30 acres of type
A forage in the unit, with an amount of insurance of $100 per acre.
At the time of loss, the following findings are established: 10
acres had a remaining stand of 75 percent of an adequate stand or
greater. 20 acres had a remaining stand less than 75 percent but
more than 55 percent of an adequate stand.
You also have a 100 percent share in 20 acres of type B forage
in the unit, with an amount of insurance of $90 per acre. 10 acres
had a remaining stand of 75 percent of an adequate stand or greater.
10 acres had a remaining stand less than 55 percent of an adequate
stand.
Your indemnity would be calculated as follows:
1. 30 acres x $100 = $3,000 amount of insurance for type A;
20 acres x $90 = $1,800 amount of insurance for type B;
2. 10 acres with 75% of an adequate stand or greater x $100 =
$1,000 for type A;
10 acres with 75% of an adequate stand or greater x $900 = $900
for type B;
3. 20 acres with less than 75% but greater than 55% of an
adequate stand x $100 x 50 percent = $1,000 for type A;
0 acres with less than 75% but greater than 55% of an adequate
stand x $90 x 50 percent = $0 for type B;
4. $1,000 + $1,000 = $2,000 reduction for type A;
$900 + $0 = $900 reduction for type B;
5. $3,000 - $2,000 = $1,000 for type A
$1,800 - $900 = $900 for type B
6. $1,000 x 100 percent share = $1,000 for type A;
$900 x 100 percent share = $900 for type B;
7. $1,000 + $900 = $1,900 total indemnity
* * * * *
Martin R. Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2018-26559 Filed 12-7-18; 8:45 am]
BILLING CODE 3410-08-P