[Federal Register Volume 78, Number 228 (Tuesday, November 26, 2013)]
[Rules and Regulations]
[Pages 70485-70487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28319]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 78, No. 228 / Tuesday, November 26, 2013 /
Rules and Regulations
[[Page 70485]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket No. FCIC-13-0002]
RIN 0563-AC41
Common Crop Insurance Regulations; Extra Long Staple Cotton Crop
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes
amendments made to the Common Crop Insurance Regulations, Extra Long
Staple Cotton Crop Insurance Provisions to make the Extra Long Staple
(ELS) Cotton Crop Insurance Provisions consistent with the Upland
Cotton Crop Insurance Provisions and to allow a late planting period.
The intended effect of this action is to provide policy changes to
better meet the needs of the producers. The changes will be effective
for the 2014 and succeeding crop years.
DATES: This rule is effective November 26, 2013.
FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, 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:
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
rule is not-significant for the purpose of Executive Order 12866 and,
therefore, it has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Pursuant to the provisions of the Paperwork Reduction Act of 1995
(44 U.S.C. chapter 35), 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. The review reveals that this regulation will not have
substantial and direct effects on Tribal governments and will not have
significant Tribal implications.
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 amount of an indemnity
payment in the event of 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 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 an impact on 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 require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115, June 24, 1983.
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 to require 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.
[[Page 70486]]
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.
Background
This rule finalizes changes to the Common Crop Insurance
Regulations (7 CFR part 457), Extra Long Staple Cotton Crop Insurance
Provisions (7 CFR 457.105) that were published by FCIC on July 05,
2013, as a notice of proposed rulemaking in the Federal Register 78 FR
47214. The public was afforded 30 days to submit comments after the
regulation was published in the Federal Register.
A total of 18 comments were received from 4 commenters. The
commenters were two insurance providers, an insurance service
organization, and a producer organization.
The public comments received regarding the proposed rule and FCIC's
responses to the comments are as follows:
General
Comment: A commenter stated they support the proposed regulation.
Response: FCIC thanks the commenter for their review of the
proposed rule and their support.
Section 9--Duties in the Event of Loss or Damage
Comment: Several commenters asked if it was intentional to reverse
the heading from ``. . . Damage or Loss'', to ``. . . Loss or Damage'',
and if so, why, since section 9(a) retains the phrase ``damage or
loss''.
Response: The change was unintentional. FCIC agrees and has changed
the heading to ``Duties in the Event of Damage or Loss''.
Comment: Several commenters questioned the need for the provision
which requires stalks to be left to allow for a visual inspection.
Commenters realized that the proposed language in this section is
identical to the language in the Cotton Crop Provisions with regard to
leaving the stalks so a stalk inspection can be made. However,
commenters requested whether consideration should be given that with
modern harvesting equipment, the requirement to visually inspect the
crop to make sure the stalk was cleanly harvested is not much of an
issue anymore. Commenters stated that various university extension
agencies recommend cotton stalks be destroyed as soon as possible after
the crop has been harvested. Commenters believe the provision is
unnecessary and difficult to administer. If the ELS Cotton Crop
Provisions does change, they request the Cotton Crop Provisions make
the same change.
Response: FCIC believes the ability to do a stalk inspection is
important for purposes of program integrity. During large claim
reviews, FCIC found multiple units with no discernible break between
the irrigated and non-irrigated units, and sometimes found planting and
harvesting continuing across unit lines, which results the acreage not
qualifying for optional units. Without a stalk inspection, it may not
have been possible to identify these discrepancies. Also, if a stalk
inspection shows the insured did not completely harvest the field, then
the production left in the field is considered production from an
uninsurable cause of loss. FCIC has reviewed the stock inspection
procedure and found stalk inspections are still an important part of
the cotton crop insurance program to reduce possible abuse in the
program. Loss adjusters are given flexibility to give written consent
to the insured to destroy stalks without a stalk inspection on a case-
by-case basis. No change has been made in the final rule.
Comment: Several commenters suggested deleting the phrase ``. . .
and required samples must not be harvested, . . .'' in section 9(a)(2)
because that is covered in the Basic Provisions. One commenter agreed
with the phrase.
Response: FCIC disagrees with removing the phrase. The provision
applies to both stalk inspections and samples, which are two separate
issues because the stalk inspection is post-harvest and the samples
left for quality adjustment are pre-harvest. Removing the language
pertaining to samples will likely increase confusion because it will be
unclear if the policy provisions pertain to stalk inspections or
samples. This cotton provision applies to stalks and samples, where the
section in the Basic Provisions only applies to samples. Leaving the
language for both stalk inspections and samples in the same provision
as proposed makes loss procedures easier to understand. No change has
been made in the final rule.
Section 11--Late Planting
Comment: Several commenters are concerned with placing the late
planting period in the Special Provisions. Commenters are unsure where
this provision will apply, what the reduction will be and how long the
late planting period will be. They requested FCIC publish this type of
information in the proposed and final rule.
Response: The determination of where and how late planting will be
applied is meant to be tailored regionally, as it may not be
appropriate to include a late planting period in all areas where ELS
cotton crop insurance is available. Placing the late planting period
availability in the Special Provisions provides FCIC the flexibility to
add a late planting period in areas where it may be deemed appropriate.
FCIC will use the Cooperative Extension System or other industry
experts to determine if a late planting period may be deemed
appropriate and actuarially sound. No change has been made in the final
rule.
Comment: Several commenters asked how they will know if the late
planting period is different than shown in the table for crops in the
Crop Insurance Handbook (CIH).
Response: The option for providing a late planting period will be
specified in the Special Provisions, which are a part of the insurance
contract and provided to insureds annually. The CIH also includes a
footnote saying ``Crop Provisions may indicate a different percentage
coverage reduction and/or the Crop Provisions or Special Provisions may
modify the number of days contained in the late planting period.''
Other crops already alter late planting periods and coverage through
the Special Provisions. No change has been made in the final rule.
Section 12--Prevented Planting
Comment: Several commenters requested changes to the prevented
planting language, but understood it could not be changed until another
proposed rule.
Response: FCIC agrees this was not proposed and a change cannot be
made at this time.
Good cause is shown to make this rule effective less than 30 days
after publication in the Federal Register. Good cause to make a rule
effective less than 30 days after publication in the Federal Register
exists when the 30-day delay in the effective date is impracticable,
unnecessary, or contrary to the public interest.
With respect to the provisions of this final rule, it would be
contrary to the public interest to delay its implementation because
public interest is served by implementing the ELS Cotton Provisions
because it enhances coverage and increases program integrity because
it: (1) Adds a late planting period, for areas determined to be
applicable, for ELS cotton by Special Provision; and (2) clarifies
stalk inspection and claims to make it the same as Cotton Crop
Provisions.
[[Page 70487]]
Delaying the implementation of these provisions, which make a sounder,
more stable program, would be contrary to the public interest.
If FCIC is required to delay the implementation of this rule until
30 days after the date of publication, the provisions of this rule
could not be implemented until the 2015 crop year for those crops
having a contract change date prior to the effective date of this
publication.
For the reasons stated above, good cause exists to make these
policy changes effective upon publication in the Federal Register.
List of Subjects in 7 CFR Part 457
Crop insurance, Extra long staple cotton, 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 2014 and
succeeding crop years as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS
0
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(o).
0
2. Amend Sec. 457.105 as follows:
0
a. Amend the introductory text by removing ``2012'' and adding ``2014''
in its place;
0
b. Revise section 9; and
0
c. Revise section 11.
The revisions read as follows:
Sec. 457.105 Extra long staple cotton crop insurance provisions.
* * * * *
9. Duties in the Event of Damage or Loss.
(a) In addition to your duties under section 14 of the Basic
Provisions, in the event of damage or loss:
(1) You must give us notice if you intend to replant any acreage
originally planted to ELS cotton to AUP cotton.
(2) The cotton stalks must remain intact for our inspection. The
stalks must not be destroyed, and required samples must not be
harvested, until the earlier of our inspection or 15 days after harvest
of the balance of the unit is completed and written notice of probable
loss is given to us.
(b) Representative samples are required in accordance with section
14 of the Basic Provisions.
* * * * *
11. Late Planting.
(a) A late planting period is applicable to ELS cotton, if allowed
by the Special Provisions.
(b) If the Special Provisions do not provide for a late planting
period, any ELS cotton that is planted after the final planting date
will not be insured unless you were prevented from planting it by the
final planting date. Such acreage will be insurable, and the production
guarantee and premium for the acreage will be determined in accordance
with section 16 of the Basic Provisions.
* * * * *
Signed in Washington, DC, on November 21, 2013.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2013-28319 Filed 11-25-13; 8:45 am]
BILLING CODE 3410-08-P