[Federal Register Volume 85, Number 103 (Thursday, May 28, 2020)]
[Rules and Regulations]
[Pages 31939-31943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10240]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC66
[Docket ID FCIC-19-0007]


Common Crop Insurance Regulations; Canola and Rapeseed 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, Canola and Rapeseed Crop Insurance 
Provisions. The intended effect of this action is to clarify policy 
provisions and for consistency with other crop provisions that offer 
coverage on both fall and spring-planted acreage of the crop. The 
changes will be effective for the 2021 and succeeding crop years.

DATES: 
    Effective: May 28, 2020.
    Comments date: FCIC will accept written comments on this final rule 
until close of business July 27, 2020. FCIC may consider the comments 
received and may conduct additional rulemaking based on the comments.

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-19-0007. 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-
7730, email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    FCIC amends the Common Crop Insurance Regulations by revising 7 CFR 
457.161 Canola and Rapeseed Crop Insurance Provisions to be effective 
for the 2021 and succeeding crop years.
    The changes to 7 CFR 457.161 Canola and Rapeseed Crop Insurance 
Provisions are as follows:
    1. Section 1--FCIC is revising the definition of ``harvest'' to 
incorporate a new term, ``pushed'', that is being added to section 1. 
The definition specifies that canola that is swathed prior to combining 
is not considered harvested. The revised definition says that canola 
that is swathed or pushed prior to combining is not considered 
harvested.
    FCIC is adding the definition of ``latest final planting date'' to 
specify the final planting date for those counties that have only 
spring-planted acreage, only fall-planted acreage, or both spring-
planted and fall-planted acreage.
    FCIC is adding a definition of ``prevented planting'' to specify it 
is the same definition found in the Basic Provisions except that the 
references to ``final planting date'' contained in the definition in 
the Basic Provisions are replaced with the ``latest final planting 
date.'' This is consistent with other crop provisions that have both 
fall and spring planted acreage.
    FCIC is adding a definition of ``pushed.'' Pushed is a method by 
which

[[Page 31940]]

the stems of the canola are mechanically bent prior to maturity. When 
the stems are pushed, the stems and pods remain intact to ripen 
naturally while being protected from weather events. This process is 
not harmful to the canola and is completed prior to harvest.
    2. Section 3--FCIC is revising paragraphs (b)(1) and (b)(2) to 
replace the phrase ``insured fall planted acreage'' with the phrase 
``insurable fall planted acreage.'' This subsection provides guidance 
regarding the date by which producers can make changes to their 
insurance coverage depending on whether they have insured fall planted 
acreage. The previous provisions stated that if producers have insured 
fall planted acreage, no changes can be made after the fall sales 
closing date. If producers do not have insured fall planted acreage, 
then they can make changes up until the spring sales closing. According 
to section 6 of the Crop Provisions, all the producer's acreage of the 
crop in the county must be insured. Therefore, if the producer plants 
fall planted acreage and it is insurable, then it must be insured. FCIC 
received input from insurance companies that the phrase ``insured fall 
planted acreage'' indicates that if producers planted fall planted 
acreage but did not insure it, then they have until the spring sales 
closing date to make changes to the insurance coverage on the spring-
planted acreage. That is not the intent of the provisions. Therefore, 
FCIC is revising the language to indicate that if there is insurable 
fall planted acreage, then no changes may be made after the fall sales 
closing date.
    3. Section 5--FCIC is revising the table to make two changes: (1) 
To specify what the cancellation and termination dates are for each 
state and county where canola insurance is available; and (2) to 
specify the cancellation and termination dates in two separate columns.
    The wording does not list specific states, but rather identifies 
the cancellation and termination dates based on whether a county has or 
does not have fall planted types listed in the actuarial documents (or 
all counties for Alabama and Georgia):
    a. Counties without fall-planted types on the actuarial documents 
have a cancellation and termination date of March 15; and
    b. Counties with fall-planted types on the actuarial documents have 
a cancellation and termination date of August 31.
    The wording of this table caused confusion when insured producers 
and their insurance providers were seeking written agreements in 
counties where canola and rapeseed crop insurance is not available 
(because the county does not appear in the actuarial documents). A 
written agreement provides insurance for insurable crops when coverage 
or rates are currently unavailable in the county, or is used to modify 
existing terms and conditions in the crop insurance policy when 
specifically permitted by the policy. Section 18(e)(2)(ii) of the 
Common Crop Insurance Policy, Basic Provisions (Basic Provisions) had 
specified that written agreements must be provided on or before the 
cancellation date to insure a crop in a county that does not have 
actuarial documents for the crop (If the Crop Provisions do not provide 
a cancellation date for the county, the cancellation date for other 
insurable crops in the same State that have similar final planting and 
harvesting dates will be applicable). According to the Canola and 
Rapeseed Crop Provisions and section 18 of the Basic Provisions, the 
written agreement must be submitted by March 15 for counties without 
fall-planted types on the actuarial documents and August 31 for 
counties with fall-planted types on the actuarial documents.
    In an example that was brought to our attention, an insured 
producer planted fall canola in a county for which there is no canola 
and rapeseed crop insurance coverage. This county falls within the 
category of not having fall-planted types listed on the actuarial 
documents; therefore, the deadline to submit the written agreement 
would be the March 15th cancellation date. However, the insured 
producer planted the crop months prior to the deadline and may be able 
to adversely select against insurance due to information the insured 
has about their crop prior to the attachment of insurance. With the 
revised changes to the table, the deadline for the written agreement in 
this county would default to the provisions in section 18(e)(2)(ii) of 
the Basic Provisions: (If the Crop Provisions do not provide a 
cancellation date for the county, the cancellation date for other 
insurable crops in the same State that have similar final planting and 
harvesting dates will be applicable). In this example, according to 
section 18 of the Basic Provisions, the cancellation date would have 
been more-appropriately aligned with the counties in the states with an 
August 31st cancellation date.
    In Idaho, there are six counties that have only spring-planted 
types of canola. In the remaining counties in Idaho, and in all 
counties in Oregon and Washington, there are fall and spring-planted 
types. The six counties in Idaho are now specifically named in the 
table and fall within the cancellation and termination dates of March 
15th. The remaining counties in Idaho and all counties in Oregon and 
Washington have a Special Provisions statement that changes the 
termination date from August 31 to October 31. By adding a separate 
column for the termination dates in the table, FCIC can incorporate the 
termination date addressed in the Special Provisions statement. The 
Special Provisions statement will no longer be needed.
    4. Section 10--FCIC is revising paragraph (d) for consistency with 
other crops that have both fall and spring planted acreage. The 
provisions state that the production guarantee, premium, projected and 
harvest prices and replant payments will be based on the crop type that 
is replanted and insured. The provisions do not address situations when 
a damaged winter crop type is replanted to a spring crop type, but 
retains insurance based on the winter crop type; and when the replanted 
acreage is planted at a reduced seeding rate into a partially-damaged 
stand of the insured crop. These situations are addressed in other crop 
provisions that have both fall and spring planted acreage; therefore, 
these situations are added to these crop provisions for consistency.
    5. Section 14--FCIC is adding a sentence at the beginning to 
clarify in counties for which the Special Provisions designate a spring 
final planting date, the prevented planting production guarantee will 
be based on the approved yield for spring-planted acreage of the 
insured crop. This change is consistent with other crop provisions that 
have both fall and spring planted acreage.

Effective Date and Notice and Comment

    The Administrative Procedure Act (APA, 5 U.S.C. 553) provides that 
the notice and comment and 30-day delay in the effective date 
provisions do not apply when the rule involves specified actions, 
including matters relating to contracts. This rule governs contracts 
for crop insurance policies and therefore falls within that exemption.
    For major rules, the Congressional Review Act requires a delay the 
effective date of 60 days after publication to allow for Congressional 
review. This rule is not a major rule under the Congressional Review 
Act, as defined by 5 U.S.C. 804(2). Therefore, this final rule is 
effective May 28, 2020. Although not required by APA or any other law, 
FCIC has chosen to request comments on this rule.

[[Page 31941]]

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. The requirements in 
Executive Orders 12866 and 13563 for the analysis of costs and benefits 
apply to rules that are determined to be significant. 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 and analysis of 
the costs and benefits is not required under either Executive Order 
12866 or 13563.
    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. In a general response to the 
requirements of Executive Order 13777, USDA created a Regulatory Reform 
Task Force, and USDA agencies were directed to remove barriers, reduce 
burdens, and provide better customer service both as part of the 
regulatory reform of existing regulations and as an ongoing approach. 
FCIC reviewed this regulation and made changes to improve any provision 
that was determined to be outdated, unnecessary, or ineffective.

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.
    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

[[Page 31942]]

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 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), 1506(o).


0
2. In Sec.  457.161:
0
a. Revise the introductory text;
0
b. Amend section 1 by:
0
i. Revising the definition of ``Harvest''; and
0
ii. Adding in alphabetical order the definitions of ``Latest final 
planting date'', ``Prevented planting'', and ``Pushed'';
0
c. Revise section 3(b);
0
d. Revise section 5;
0
e. Revise section 10(d); and
0
f. Revise section 14.
    The revisions and additions read as follows:


Sec.  457.161   Canola and Rapeseed crop insurance provisions.

    The Canola and Rapeseed Crop Insurance Provisions for the 2021 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Harvest. Combining or threshing for seed. A crop that is swathed or 
pushed prior to combining is not considered harvested.
    Latest final planting date. (a) The final planting date for spring-
planted acreage in all counties for which the Special Provisions 
designate a final planting date for spring-planted acreage only;
    (b) The final planting date for fall-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for fall-planted acreage only; or
    (c) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate final planting 
dates for both spring-planted and fall-planted acreage.
* * * * *
    Prevented planting. As defined in the Basic Provisions, except that 
the references to ``final planting date'' contained in the definition 
in the Basic Provisions are replaced with the ``latest final planting 
date.''
* * * * *
    Pushed. Mechanical bending of the stem prior to maturity that 
leaves the stems and pods intact to ripen naturally while being 
protected from weather events.
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (b) * * *
    (1) If you do not have any insurable fall planted acreage of the 
insured crop, you may change your coverage level, or your percentage of 
projected price (if you have yield protection), or elect revenue 
protection or yield protection, until the spring sales closing date; or
    (2) If you have any insurable fall planted acreage of the insured 
crop, you may not change your coverage level, or your percentage of 
projected price (if you have yield protection), or elect revenue 
protection or yield protection, after the fall sales closing date.
* * * * *
    5. Cancellation and Termination Dates.
    The cancellation and termination dates are as follows, unless 
otherwise specified in the actuarial documents:

----------------------------------------------------------------------------------------------------------------
           State and county                      Cancellation date                     Termination date
----------------------------------------------------------------------------------------------------------------
All counties in Alabama and Georgia...  September 30.......................  September 30.
Blaine, Bonneville, Fremont,            March 15...........................  March 15.
 Jefferson, Madison, and Teton
 counties Idaho; and all counties in
 Minnesota, Montana, and North Dakota.
All counties in Illinois, Indiana,      August 31..........................  August 31.
 Kansas, Kentucky, North Carolina,
 Oklahoma, South Carolina, Tennessee,
 Texas, and Virginia.
All other Idaho counties, Oregon, and   August 31..........................  October 31.
 Washington.
----------------------------------------------------------------------------------------------------------------

* * * * *
    10. Replanting Payment.
* * * * *
    (d) Replanting payments will be calculated using your projected 
price and your production guarantee for the crop type that is replanted 
and insured.
    (1) For example, if damaged Spring Oleic Canola is replanted to 
Spring High Erucic Rapeseed, your projected price applicable to Spring 
High Erucic

[[Page 31943]]

Rapeseed will be used to calculate any replanting payment that may be 
due. A revised acreage report will be required to reflect the replanted 
type.
    (2) Notwithstanding section 10(d)(1), the following will have a 
replanting payment based on your production guarantee and your 
projected price for the crop type initially planted:
    (i) Any damaged winter crop type that is replanted to a spring crop 
type, but that retains insurance based on the winter crop type; and
    (ii) Any acreage replanted at a reduced seeding rate into a 
partially damaged stand of the insured crop.
* * * * *
    14. Prevented Planting.
    In counties for which the Special Provisions designate a spring 
final planting date, your prevented planting production guarantee will 
be based on your approved yield for spring-planted acreage of the 
insured crop. Your prevented planting coverage will be a percentage 
specified in the actuarial documents of your production guarantee for 
timely planted acreage. If you have additional coverage and pay an 
additional premium, you may increase your prevented planting coverage 
if such additional coverage is specified in the actuarial documents.

Martin Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2020-10240 Filed 5-27-20; 8:45 am]
BILLING CODE 3410-08-P