[Federal Register Volume 84, Number 226 (Friday, November 22, 2019)]
[Rules and Regulations]
[Pages 64411-64413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25386]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 84, No. 226 / Friday, November 22, 2019 / 
Rules and Regulations  

[[Page 64411]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket ID FCIC-19-0006]
RIN 0563-AC62


Common Crop Insurance Regulations; Rice 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, Rice Crop Insurance Provisions (Crop 
Provisions). The intended effect of this action is to allow for new 
irrigation methods and change the cancellation and termination dates in 
certain states to align with other row crops to implement the changes 
contained in the Agriculture Improvement Act of 2018 (commonly referred 
to as the 2018 Farm Bill). The changes will be effective for the 2020 
and succeeding crop years.

DATES: 
    Effective Date: This final rule is effective November 30, 2019.
    Comment Date: We will consider comments that we receive on this 
rule by the close of business January 21, 2020. FCIC will consider 
these comments and make changes to the rule if warranted in a 
subsequent rulemaking.

ADDRESSES: We invite you to submit comments on this rule. In your 
comments, include the date, volume, and page number of this issue of 
the Federal Register, and the title of rule. You may submit comments by 
any 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-19-0006. Follow the 
online 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 and publicly available on http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; email [email protected]. Persons with disabilities who 
require alternative means of communication should contact the USDA 
Target Center at (202) 720-2600 (voice).

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 and in Puerto 
Rico 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.
    Federal crop insurance policies typically consist of the Basic 
Provisions, the Crop Provisions, the Special Provisions, the Commodity 
Exchange Price Provisions, if applicable, other applicable endorsements 
or options, the actuarial documents for the insured agricultural 
commodity, the Catastrophic Risk Protection Endorsement, if applicable, 
and the applicable regulations published in 7 CFR chapter IV.
    FCIC amends the Common Crop Insurance Regulations (7 CFR part 457) 
by revising 7 CFR 457.141 Rice Crop Insurance Provisions to implement 
the changes contained in the 2018 Farm Bill (Pub. L. 115-334) to be 
effective for the 2020 and succeeding crop years. The 2018 Farm Bill 
requires that FCIC research and develop an insurance product that 
provides coverage to alternative irrigation practices for rice; 
specifically, intermittent flooding and furrow irrigation practices.
    The changes to 7 CFR 457.141 Rice Crop Insurance Provisions are as 
follows:
    1. Section 5--FCIC is adding an additional cancellation and 
termination date of March 15 for Illinois and Missouri. This change is 
needed to make the dates consistent with other row crops in these 
states.
    2. Section 6--FCIC is revising section 6(c) to allow additional 
irrigation methods to be specified in the Special Provisions. In the 
past, rice has traditionally been grown under flood irrigation, whereby 
an entire field is continuously flooded during the entire growing 
season and not drained until preparations for harvest. Currently, only 
continuously-flooded rice is covered under the Rice Crop Provisions.
    The intermittent flood irrigation and furrow irrigation methods are 
desirable alternatives to continuous flood irrigation because they 
produce a similar yield to continuously flooded fields while using less 
water and lowering greenhouse gas emissions.
    Intermittent flood irrigation is a method of crop irrigation, also 
known as alternate wetting and drying (AWD), that allows flood 
irrigation water within a field to subside naturally (dry down) during 
rice growth and development before the rice field is reflooded.
    Furrow irrigation is a method of crop irrigation in which furrows 
are created to convey water down the field; capacity and equipment must 
be able to apply water uniformly across the crown of the field to 
assure water delivery to all rice plants in the field.
    These alternative irrigation methods will offer existing rice 
growers flexibility to choose the most appropriate irrigation method 
for their farming operation, while maintaining crop insurance 
eligibility. Crop insurance is an important component of many farming 
operations to manage financial risks and is often required by lending 
institutions to receive an operating loan.

Effective Date and Notice and Comment

    In general, the Administrative Procedure Act (APA, 5 U.S.C. 553) 
requires that a notice of proposed rulemaking be published in the 
Federal Register for interested persons to be

[[Page 64412]]

given an opportunity to participate in the rulemaking through 
submission of written data, views, or arguments with or without 
opportunity for oral presentation and requires a 30-day delay in the 
effective date of rules, except when the rule involves a matter 
relating to public property, loans, grants, benefits, or contracts. 
This rule involves matters relating to contracts and therefore the 
requirements in section 553 do not apply. Although not required by APA, 
FCIC has chosen to request comments on this rule.
    The Office of Management and Budget (OMB) designated this rule as 
not major under the Congressional Review Act, as defined by 5 U.S.C. 
804(2). Therefore, FCIC is not required to delay the effective date for 
60 days from the date of publication to allow for Congressional review. 
Accordingly, this rule is effective November 30, 2019.

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.
    Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' requires that in order to manage the private costs 
required to comply with Federal regulations that for every new 
significant or economically significant regulation issued, the new 
costs must be offset by the elimination of at least two prior 
regulations. As this rule is designated as not significant, it is not 
subject to Executive Order 13771.

Clarity of the Regulation

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on this rule, we invite your comments on 
how to make the rule easier to understand. For example:
     Are the requirements in the rule clearly stated? Are the 
scope and intent of the rule clear?
     Does the rule contain technical language or jargon that is 
not clear?
     Is the material logically organized?
     Would changing the grouping or order of sections or adding 
headings make the rule easier to understand?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     Would more, but shorter, sections be better? Are there 
specific sections that are too long or confusing?
     What else could we do to make the rule easier to 
understand?

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
SBREFA, generally requires an agency to prepare a regulatory analysis 
of any rule whenever an agency is required by APA or any other law to 
publish a proposed rule, unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. This rule is not subject to the Regulatory Flexibility Act 
because as noted above, this rule is exempt from APA and no other law 
requires that a proposed rule be published for this rulemaking 
initiative.

Environmental Review

    In general, the environmental impacts of rules are to be considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347) and the 
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508). FCIC conducts programs and activities that have been determined 
to have no individual or cumulative effect on the human environment. As 
specified in 7 CFR 1b.4, FCIC is categorically excluded from the 
preparation of an Environmental Analysis or Environmental Impact 
Statement unless the FCIC Manager (agency head) determines that an 
action may have a significant environmental effect. The FCIC Manager 
has determined this rule will not have a significant environmental 
effect. Therefore, FCIC will not prepare an environmental assessment or 
environmental impact statement for this action and this rule serves as 
documentation of the programmatic environmental compliance decision.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affected by proposed Federal financial assistance. 
The objectives of the Executive Order are to foster an 
intergovernmental partnership and a strengthened Federalism, by relying 
on State and local processes for State and local government 
coordination and review of proposed Federal financial assistance and 
direct Federal development. For reasons specified in the final rule 
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June 
24, 1983), the programs and activities in this rule are excluded from 
the scope of Executive Order 12372.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. Before any judicial actions may be brought 
regarding the provisions of this rule, the administrative appeal 
provisions of 7 CFR part 11 are to be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal Government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with Tribes on a government-to-government 
basis on policies that have Tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian Tribes, on the relationship between the Federal Government 
and Indian Tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes.

[[Page 64413]]

    FCIC 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, FCIC will work 
with the USDA Office of Tribal Relations to ensure meaningful 
consultation is provided where changes and additions identified in this 
rule are not expressly mandated by the 2018 Farm Bill.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions of State, local, and Tribal governments or the 
private sector. Agencies generally must prepare a written statement, 
including cost benefits analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Federal Assistance Program

    The title and number of the Federal Domestic Assistance Program 
listed in the Catalog of Federal Domestic Assistance to which this rule 
applies is No. 10.450--Crop Insurance.

Paperwork Reduction Act of 1995

    In accordance with the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. chapter 35, subchapter I), the rule does not change the 
information collection approved by OMB under control numbers 0563-0053.

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act, to 
promote the use of the internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects in 7 CFR Part 457

    Acreage allotments, Crop insurance, Reporting and recordkeeping 
requirements.

Final Rule

    For the reasons discussed above, FCIC amends 7 CFR part 457, 
effective for the 2021 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) and 1506(o).


0
2. Amend Sec.  457.141 as follows:
0
a. In the introductory text by removing ``2017'' and adding ``2020'' in 
its place;
0
b. Revise the table in section 5; and
0
c. Revise section 6(c).
    The revisions read as follows:


Sec.  457.141   Rice crop insurance provisions.

* * * * *
    5. Cancellation and Termination Dates
* * * * *

------------------------------------------------------------------------
                                                   Cancellation and
              State and county                     termination date
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,    January 31.
 McMullen, La Salle, and Dimmit Counties,
 Texas; and all Texas Counties south
 thereof;
Florida....................................  February 15.
Illinois and Missouri......................  March 15.
All other states...........................  February 28.
------------------------------------------------------------------------

* * * * *
    6. Insured Crop.
* * * * *
    (c) That is flood irrigated unless otherwise specified in the 
Special Provisions; and
* * * * *

Robin Anderson,
Executive Secretary, Federal Crop Insurance Corporation.
[FR Doc. 2019-25386 Filed 11-21-19; 8:45 am]
 BILLING CODE 3410-08-P