[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Rules and Regulations]
[Pages 81159-81162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32308]



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 Rules and Regulations
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  Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / 
Rules and Regulations  

[[Page 81159]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR part 457

[Docket No. FCIC-15-0001]
RIN 0563-AC47


Common Crop Insurance Regulations; Cotton Crop Insurance 
Provisions, Extra Long Staple Cotton Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations, Cotton Crop Insurance Provisions and 
Extra Long Staple (ELS) Cotton Crop Insurance Provisions. The intended 
effect of this action is to provide policy changes and to clarify 
existing policy provisions to better meet the needs of policyholders. 
As discussed further within this rule, FCIC received requests to 
simplify program administration consistent with evolving farming 
practices in cotton crop production. The changes will be effective for 
the 2017 and succeeding crop years.

DATES: This final rule is effective December 29, 2015. However, FCIC 
will accept written comments on this final rule until close of business 
February 29, 2016. FCIC may consider the comments received and may 
conduct additional rulemaking based on the comments.

ADDRESSES: FCIC prefers interested persons submit their comments 
electronically through the Federal eRulemaking Portal. Interested 
persons may submit comments, identified by Docket ID No. FCIC-15-0001, 
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.
    FCIC will post all comments received, including those received by 
mail, without change to http://www.regulations.gov, including any 
personal information provided. Once these comments are posted to this 
Web site, the public can access all comments at its convenience from 
this Web site. 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 that the document 
attachment be in a text-based format. If interested persons want 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 
entity, such as 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: Tim Hoffmann, Product Management, 
Product Administration and Standards Division, Risk Management Agency, 
United States Department of Agriculture, Beacon Facility, Stop 0812, 
Room 421, PO Box 419205, Kansas City, MO 64141-6205, telephone (816) 
926-7730.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the OMB.

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. This regulation will not have substantial and direct 
effects on Tribal governments and will not have significant Tribal 
implications.

[[Page 81160]]

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 require 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.

Background

    FCIC amends the Common Crop Insurance Regulations (7 CFR part 457) 
by revising 7 CFR 457.104 Cotton Crop Insurance Provisions and 7 CFR 
457.105 Extra Long Staple Cotton Crop Insurance Provisions to be 
effective for the 2017 and succeeding crop years. FCIC received 
requests to simplify program administration consistent with evolving 
farming practices in cotton crop production.
    FCIC is issuing this final rule without opportunity for prior 
notice and comment. The Administrative Procedure Act 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)). However, FCIC is providing a 60-day comment period and 
invites interested persons to participate in this rulemaking by 
submitting written comments. FCIC may consider the comments received 
and may conduct additional rulemaking based on the comments.
    1. The changes to 7 CFR 457.104 Cotton Crop Insurance Provisions 
are as follows:
    (a) Section 9 (``Duties in the Event of Damage or Loss'')--FCIC is 
revising paragraph (a). The provisions require, in the event of damage 
or loss, the insured must leave cotton stalks intact for the insurance 
provider's inspection. FCIC has received requests to remove these 
provisions. The primary reasons provided to FCIC for removing the 
provisions include the following reasons:
     University extension in some regions recommends destroying 
the stalks as soon as possible after harvest to mitigate the 
possibility of insect infestation (specifically boll weevil);
     The provision requires cotton to be treated differently 
than other row crops, which do not require the insured to leave stalks 
intact for inspection;
     The provision was originally written to address multiple 
harvests on the same acreage, but today producers manage their cotton 
crops to result in harvest occurring once a year. Years ago, producers 
planted more late-maturing varieties and the bolls would open at 
different times during the harvest season causing a producer to pick 
the same acreage twice.
     Cotton farming practices have changed in some regions over 
the years and producers have grown accustomed to mowing the stalks 
immediately following the cotton picker; and
     Producers mow or shred cotton stalks so they can plant 
their winter grazing or cover crops. Since cotton stalks are woody, the 
sooner they can mow or shred the stalks, the sooner the stalks will 
begin to break down. When a cotton stalk inspection is required, a 
producer may have to wait up to two weeks before the field can be 
mowed. Depending on weather and individual circumstances, the stalk 
inspection is an inconvenience to producers and may interfere with 
timely completion of their normal operations and preparation for the 
winter/cover crop.
    FCIC recognizes the potential existence of these issues, but also 
recognizes there may be situations in which a cotton stalk inspection 
has merit or necessity. Therefore, FCIC is revising the provision to 
allow insurance companies discretion to require, in certain 
circumstances, that insureds leave the cotton stalks intact for company 
inspection. FCIC is also revising the provision to allow FCIC to 
include specific circumstances in the Special Provisions for which FCIC 
will require insureds to leave cotton stalks intact, and FCIC will 
require the company to conduct a cotton stalk inspection, making 
discretion inapplicable when any Special Provisions circumstance 
required by FCIC occurs.
    (b) Section 10 (``Settlement of Claim'')--FCIC is revising 
paragraph (c)(1)(i)(E). The current provision states production to 
count will include, among other things, all appraised production for 
acreage on which cotton stalks were destroyed in violation of section 
9. As discussed above, FCIC is revising section 9, which is applicable 
only if the AIP exercises its discretion under appropriate 
circumstances to require that insureds leave cotton stalks intact. FCIC 
is revising paragraph (c)(1)(i)(E) to state this provision applies only 
if section 9(a) applies.
    2. The changes to 7 CFR 457.105 Extra Long Staple Cotton Crop 
Insurance Provisions are as follows:
    (a) Section 6 (``Insurable Acreage'')--FCIC is revising paragraph 
(b) to correct a prior Federal Register official publication error that 
inadvertently resulted in missing language from this provision. The 
words ``. . . normally further care for the crop, must . . .'' were not 
properly published within

[[Page 81161]]

paragraph (b). This provision was intended to match the Cotton Crop 
Insurance Provisions language found at 7 CFR 457.104, section 6(b).
    (b) Section 9 (``Duties in the Event of Damage of Loss'')--FCIC is 
revising paragraph (a)(2). The provisions require, in the event of 
damage or loss, the insured must leave cotton stalks intact for the 
insurance provider's inspection. FCIC has received requests to remove 
these provisions. The primary reasons provided to FCIC for removing the 
provisions include the following reasons:
     University extension in some regions recommends destroying 
the stalks as soon as possible after harvest to mitigate the 
possibility of insect infestation (specifically boll weevil);
     The provision requires cotton to be treated differently 
than other row crops, which do not require the insured to leave stalks 
intact for inspection;
     The provision was originally written to address multiple 
harvests on the same acreage, but today producers manage their cotton 
crops to result in harvest occurring once a year. Years ago, producers 
planted more late-maturing varieties and the bolls would open at 
different times during the harvest season causing a producer to pick 
the same acreage twice.
     Cotton farming practices have changed in some regions over 
the years and producers have grown accustomed to mowing the stalks 
immediately following the cotton picker; and
     Producers mow or shred cotton stalks so they can plant 
their winter grazing or cover crops. Since cotton stalks are woody, the 
sooner they can mow or shred the stalks, the sooner the stalks will 
begin to break down. When a cotton stalk inspection is required, a 
producer may have to wait up to two weeks before the field can be 
mowed. Depending on weather and individual circumstances, the stalk 
inspection is an inconvenience to producers and may interfere with 
timely completion of their normal operations and preparation for the 
winter/cover crop.
    FCIC recognizes the potential existence of these issues, but also 
recognizes there may be situations in which a cotton stalk inspection 
has merit or necessity. Therefore, FCIC is revising the provision to 
allow insurance companies discretion to require, in certain 
circumstances, that insureds leave the cotton stalks intact for company 
inspection. FCIC is also revising the provision to allow FCIC to 
include specific circumstances in the Special Provisions for which FCIC 
will require insureds to leave cotton stalks intact, and FCIC will 
require the company to conduct a cotton stalk inspection, making 
discretion inapplicable when any Special Provisions circumstance 
required by FCIC occurs.
    (c) Section 10 (``Settlement of Claim'')--FCIC is revising 
paragraph (c)(1)(i)(E). The current provision says the production to 
count will include, among other things, all appraised production for 
acreage on which cotton stalks were destroyed in violation of section 
9. As discussed above, FCIC is revising section 9, which is applicable 
only if the AIP exercises its discretion under appropriate 
circumstances to require that insureds leave cotton stalks intact. FCIC 
is revising paragraph (c)(1)(i)(E) to state this provision applies only 
if section 9(a)(2) applies.
    (e) Section 12 (``Prevented Planting'')--FCIC is removing the 
reference to limited level of coverage in section 12(b) because it is 
no longer applicable.

List of Subjects in 7 CFR Part 457

    Crop insurance, 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 2017 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(l) and 1506(o).


0
2. Amend Sec.  457.104 as follows:
0
a. In the introductory text, by removing ``2011'' and adding ``2017'' 
in its place; and
0
b. By revising sections 9(a) and 10(c)(1)(i)(E).
    The revisions read as follows:


Sec.  457.104  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, at our option or if 
required by FCIC in the Special Provisions, you may be required to 
leave the cotton stalks intact for our inspection. If applicable, 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 given to us.
* * * * *
    10. Settlement of Claim
* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (E) If applicable, on which the cotton stalks are destroyed, in 
violation of section 9.
* * * * *
0
3. Amend Sec.  457.105 as follows:
0
a. In the introductory text, by removing ``2014'' and adding ``2017'' 
in its place;
0
b. By revising sections 6(b), 9(a)(2), 10(c)(1)(i)(E), and the last 
sentence in section 12(b).
    The revisions read as follows:


Sec.  457.105  Extra Long Staple Cotton crop insurance provisions.

* * * * *
    6. Insurable Acreage
* * * * *
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that a majority of producers in the area 
would not normally further care for the crop, must be replanted unless 
we agree that it is not practical to replant.
* * * * *
    9. Duties in the Event of Damage or Loss
    (a) * * *
    (2) At our option or if required by FCIC in the Special Provisions, 
you may be required to leave the cotton stalks intact for our 
inspection. If applicable, 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.
* * * * *
    10. Settlement of Claim
* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (E) If applicable, on which the cotton stalks are destroyed, in 
violation of section 9.
* * * * *
    12. Prevented Planting
* * * * *
    (b) * * * If you have additional coverage and pay an additional 
premium, you may increase your prevented planting coverage to a level 
specified in the actuarial documents.


[[Page 81162]]


    Signed in Washington, DC, on December 17, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-32308 Filed 12-28-15; 8:45 am]
BILLING CODE 3410-08-P