[Federal Register Volume 84, Number 229 (Wednesday, November 27, 2019)]
[Rules and Regulations]
[Pages 65259-65262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25862]



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 Rules and Regulations
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 This section of the FEDERAL REGISTER contains regulatory documents 
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  Federal Register / Vol. 84, No. 229 / Wednesday, November 27, 2019 / 
Rules and Regulations  

[[Page 65259]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC65
[Docket ID FCIC-19-0008]


Common Crop Insurance Regulations; Coarse Grains 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, Coarse Grains Crop Insurance 
Provisions (Crop Provisions). The intended effect of this action is to 
allow separate enterprise and optional units by the cropping practices 
Following Another Crop (FAC) and Not Following Another Crop (NFAC). 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 27, 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-19-0008. 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 457.113 Coarse Grains Crop Insurance Provisions to be 
effective for the 2020 and succeeding crop years.
    The changes to 7 CFR 457.113 Coarse Grains Crop Insurance 
Provisions are as follows:
    1. Section 1--FCIC is adding the terms ``Following another crop 
(FAC)'' and ``Not following another crop (NFAC)'' to accommodate the 
changes in section 2. These terms are currently defined in the Special 
Provisions and vary depending on the county. FCIC is adding these terms 
to the Crop Provisions because the terms are now referenced in a newly-
added section 2.
    2. Section 2--FCIC is redesignating sections 2 through 12 as 
section 3 through 13, respectively, and adding a new section 2. FCIC is 
adding a section 2 to allow enterprise units and optional units by the 
cropping practices Following Another Crop (FAC) and Not Following 
Another Crop (NFAC). The new language allows separate enterprise units 
and optional units for FAC acreage of the crop or NFAC acreage of the 
crop.
    The cropping practices FAC and NFAC have different risks of loss. 
For example, soil conditions for crops following another crop on the 
same acreage in the same crop year are likely to have different 
moisture and nutrient availability than crops not following another 
crop which could impact crop yields and losses. Producers have raised 
concerns that when the two cropping practices are combined in a single 
unit, the losses from one of these cropping practices may be offset by 
gains on the other. By contrast, this offset would likely not occur if 
all insurable acreage was insured as a single practice, or if the 
acreage is insurable by separate practice at the enterprise or optional 
unit level, which is the change this rule seeks to make effective. This 
change allows producers to better manage the unique risks of each 
practice by separating FAC and NFAC units.
    If the insured elects enterprise or optional units for these 
cropping practices, additional enterprise or optional units by 
irrigation practices are not allowed. The insured may elect one 
enterprise unit for all FAC cropping practices, all NFAC cropping 
practices, or separate enterprise units for both. Additionally, both 
the FAC and NFAC acreage must each separately qualify for enterprise 
units and will be subject to the current requirements in the Basic 
Provisions. The insured is only eligible if both FAC and NFAC cropping 
practices are allowed by the actuarial documents for each irrigation 
practice the insured uses. For example, if the non-irrigated practice 
for the insured's

[[Page 65260]]

county allows both FAC and NFAC cropping practices in the actuarial 
documents, but the irrigated practice does not specify either FAC or 
NFAC, enterprise units are available as follows:
     If the insured uses the irrigated practice, separate 
enterprise units for FAC and NFAC cropping practices are not available 
because they are not specified as separate cropping practices in the 
actuarial documents for the irrigated practice;
     If the insured uses only the non-irrigated practice, with 
FAC and NFAC cropping practices, separate enterprise units for non-
irrigated FAC and NFAC cropping practices are available, because they 
are specified as separate cropping practices in the actuarial documents 
for the non-irrigated practice.
    If an insured does not qualify for separate FAC and NFAC enterprise 
units, there are two options based on the timing of the discovery: (1) 
If the AIP discovers the insured does not qualify on or before the 
acreage reporting date, the insured may have one enterprise unit 
comprised of all FAC and NFAC acreage in the county of the crop, or 
basic or optional units depending on which unit structure the insured 
reported on the acreage report; or (2) if the AIP discovers the insured 
does not qualify after acreage reporting date, the insured may have one 
enterprise unit comprised of all FAC and NFAC acreage combined in the 
county of the crop, or the AIP will assign a basic unit structure.
    If an insured does not qualify for a separate enterprise unit on 
one cropping practice when a different unit structure is on the other 
cropping practice, there are two options based on the timing of the 
discovery:
    (1) If the AIP discovers the insured does not qualify on or before 
the acreage reporting date, the insured may have basic or optional 
units depending on which unit structure the insured reported on the 
acreage report; or
    (2) If the AIP discovers the insured does not qualify after the 
acreage reporting date, the AIP will assign a basic unit structure.

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 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). This rule is 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.
    This final 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

[[Page 65261]]

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.
    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, additions and modifications 
identified in this rule are not expressly mandated by Congress.

The Unfunded Mandates Reform Act of 1995

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

Federal Assistance Program

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

Paperwork Reduction Act of 1995

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

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.

    For the reasons discussed above, FCIC 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) and 1506(o).


0
2. Amend Sec.  457.113 as follows:
0
a. Revise the first sentence of the introductory text;
0
b. In section 1, add in alphabetical order definitions for ``Following 
another crop (FAC)'' and ``Not following another crop (NFAC)'';
0
c. Redesignate sections 2 through 12 as sections 3 through 13, 
respectively;
0
d. Add a new section 2;
0
e. Amend newly redesignated section 6 as follows:
0
i. In paragraph (a)(3)(i), remove the phrase ``5(b)(1)'' and add 
``6(b)(1)'' in its place;
0
ii. In paragraph (b) introductory text, remove the phrase ``5(a),'' and 
add ``6(a),'' in its place;
0
iii. In paragraph (b)(1), remove the phrase ``5(c)'' and add ``6(c)'' 
in its place;
0
iv. In paragraph (b)(2)(i), remove the phrase ``5(b)(2)'' and add 
``6(b)(2)'' in its place;
0
v. In paragraph (d) introductory text, remove the phrase ``5(a)'' and 
add ``6(a)'' in its place;
0
vi. In paragraph (e), remove the phrase ``5(a)'' and add ``6(a)'' in 
its place;
0
f. In newly redesignated section 9(h), remove the phrase ``sections 
8(a) through (g)'' and add ``sections 9(a) through (g)'' in its place;
0
g. In newly redesignated section 10(a)(2), remove the phrase 
``9(a)(1)'' and add ``10(a)(1)'' in its place;
0
h. In newly redesignated section 11(c), remove the phrase 
``11(c)(1)(i)(E)'' and add ``12(c)(1)(i)(E)'' in its place;
0
i. Amend newly redesignated section 12 as follows:
0
i. In paragraph (b)(2), remove the phrase ``section 11(b)(1)(i) or 
11(b)(1)(ii)'' and add ``section 12(b)(1)(i) or 12(b)(1)(ii)'' in its 
place;
0
ii. In paragraph (b)(4), remove the phrase ``section 11(b)(3)(i) or 
11(b)(3)(ii)'' and add ``section 12(b)(3)(i) or 12(b)(3)(ii)'' in its 
place;
0
iii. In paragraph (b)(5), remove the phrase ``section 11(b)(4) from the 
result of section 11(b)(2)'' and add ``section 12(b)(4) from the result 
of section 12(b)(2)'' in its place;
0
iv. In paragraph (b)(6) introductory text, remove the phrase 
``11(b)(5)'' and add ``12(b)(5)'' in its place;

[[Page 65262]]

0
v. In paragraph (c)(1)(iii), remove the phrase ``section 11(d)'' and 
add ``section 12(d)'' in its place;
0
vi. In paragraph (d) introductory text, remove the phrase ``11(e).'' 
and add ``12(e).'' in its place;
0
vii. In paragraph (d)(4), remove the phrase ``sections 11(d)(2) and 
(3)'' and add ``sections 12(d)(2) and (3)'' in its place;
0
viii. In paragraph (e)(2), remove the phrase ``7(b)'' and add ``8(b)'' 
in its place.
    The revision and additions read as follows:


Sec.  457.113  Coarse grains crop insurance provisions.

    The Coarse Grains Crop Insurance Provisions for the 2020 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Following another crop (FAC). A cropping practice, as defined in 
the Special Provisions, in which a crop is planted following another 
crop.
* * * * *
    Not following another crop (NFAC). A cropping practice, as defined 
in the Special Provisions, in which a crop is planted not following a 
crop.
* * * * *
    2. Unit Division.
    (a) In addition to the requirements of section 34(a) of the Basic 
Provisions, you may elect separate enterprise units for FAC or NFAC 
cropping practices if these cropping practices are allowed by the 
actuarial documents. If you elect enterprise units for these cropping 
practices, you may not elect enterprise or optional units by irrigation 
practices.
    (1) You may elect one enterprise unit for all FAC cropping 
practices, all NFAC cropping practices, or separate enterprise units 
for both, unless otherwise specified in the Special Provisions. For 
example: You may choose an enterprise unit for all FAC acreage 
(soybeans irrigated practice and non-irrigated practice) and an 
enterprise unit for all NFAC acreage (soybeans irrigated practice and 
non-irrigated practice).
    (2) You are only eligible if both FAC and NFAC cropping practices 
are allowed by the actuarial documents for each irrigation practice you 
use. If FAC and NFAC cropping practices are only allowed for the non-
irrigated practice, separate enterprise units for FAC and NFAC cropping 
practices are not available if you use the irrigated practice; but if 
you use only non-irrigated FAC and NFAC cropping practices, separate 
enterprise units for non-irrigated FAC and NFAC cropping practices are 
available.
    (3) You must separately meet the requirements in section 34(a)(4) 
for each enterprise unit.
    (4) If you elected separate enterprise units for both cropping 
practices and we discover you do not qualify for an enterprise unit for 
one or the other cropping practice and such discovery is made:
    (i) On or before the acreage reporting date, you may elect to 
insure all acreage of the crop in the county in one enterprise unit 
provided you meet the requirements in section 34(a)(4), or your unit 
division will be based on basic or optional units, whichever you report 
on your acreage report and qualify for; or
    (ii) At any time after the acreage reporting date, your unit 
structure will be one enterprise unit provided you meet the 
requirements in section 34(a)(4). Otherwise, we will assign the basic 
unit structure.
    (5) If you elected an enterprise unit on one cropping practice for 
FAC or NFAC and a different unit structure on the other cropping 
practice and we discover you do not qualify for an enterprise unit for 
the FAC or NFAC cropping practice and such discovery is made:
    (i) On or before the acreage reporting date, your unit division 
will be based on basic or optional units, whichever you report on your 
acreage report and qualify for; or
    (ii) At any time after the acreage reporting date, we will assign 
the basic unit structure.
    (b) Instead of establishing optional units as provided in section 
34(c) of the Basic Provisions, if allowed by the actuarial documents, 
you may have separate optional units for the FAC cropping practice and 
the NFAC cropping practice. These optional units will be by section, 
section equivalent, or FSA FN and by the FAC cropping practice and the 
NFAC cropping practice. These optional units cannot be further divided 
by irrigated and non-irrigated acreage or by acreage insured under an 
organic farming practice.
    (c) If FAC or NFAC cropping practices are only available by written 
agreement, separate enterprise units or optional units for FAC or NFAC 
cropping practices are not available.
* * * * *

Martin Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2019-25862 Filed 11-26-19; 8:45 am]
BILLING CODE 3410-08-P