[Federal Register Volume 86, Number 81 (Thursday, April 29, 2021)]
[Rules and Regulations]
[Pages 22581-22583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08953]



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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. 86, No. 81 / Thursday, April 29, 2021 / Rules 
and Regulations  

[[Page 22581]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket ID FCIC-20-0003]
RIN 0563-AC67


Common Crop Insurance Regulations; Forage Seeding 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, Forage Seeding Crop Insurance 
Provisions. The intended effect of this action is to clarify that 
producers are able to purchase or change insurance coverage on spring 
seeded forage until the spring sales closing date if they did not plant 
any insurable fall seeded forage in the same crop year. The changes are 
to be effective for the 2022 and succeeding crop years.

DATES: 
    Effective date: This rule is effective April 29, 2021.
    Comment date: We will consider comments that we receive on this 
rule until the close of business June 28, 2021. 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. You may 
submit comments by either 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-20-0003. Follow the 
instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, US Department of Agriculture, P.O. 
Box 419205, Kansas City, MO 64133-6205. In your comment, specify docket 
ID FCIC-20-0003.
    Comments will be available for viewing online at 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829, email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    FCIC serves America's agricultural producers through effective, 
market-based risk management tools to strengthen the economic stability 
of agricultural producers and rural communities. The Risk Management 
Agency (RMA) administers the FCIC regulations. FCIC is committed to 
increasing the availability and effectiveness of Federal crop insurance 
as a risk management tool. Approved Insurance Providers (AIPs) sell and 
service Federal crop insurance policies in every state through a 
public-private partnership. FCIC reinsures the AIPs who share the risk 
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 457.151 Forage Seeding Crop Insurance Provisions, to 
be effective for the 2022 and succeeding crop years. This change 
resulted from public comments received on the final rule with request 
for comment, published in the Federal Register on April 30, 2020 at 83 
FR 23893-23902.
    Comments were received from 10 commenters. The commenters included 
persons or entities from the following categories: Farmer, trade 
association, insurance companies, and others. The public comments 
received regarding the final rule with request for comment and FCIC's 
responses to the comments are as follows:
    Comment: Commenter suggested increased coverage in Arizona, 
California, Nevada, and Utah. They also suggested creating an insurance 
product that would allow producers to insure against forage quality 
losses and an insurance product that would allow producers to insure 
forage revenue losses.
    Response: These issues were considered and researched by an 
independent contractor prior to the 2020 Final Rule. FCIC followed the 
recommendations of the contracted research to not implement these 
changes. FCIC will continue to work with industry groups concerning 
these items and others that may arise. FCIC will continue to analyze 
and consider recommendations from expert reviewers and Regional Office 
Subject Matter Experts when considering future changes.
    Comment: Commenter expressed a concern about the cancellation date 
for spring seeded forage being nearly nine months prior to the sales 
closing date.
    Response: The 9-month gap between the cancellation and sales 
closing dates is due to offering both fall seeded, and spring seeded 
coverage in a single county. FCIC will continue to encourage AIPs and 
agents to educate insureds on the different deadlines for making 
changes versus cancelling a policy.
    Comment: Commenter provided some suggestions on the wording of the 
spring planted definition. They also noted spring and fall planted 
forage types were listed in the Special Provisions with final planting 
dates. They asked if these override the Crop Provision definition.
    Response: The definition in the Crop Provisions refers to the 
Special Provisions. Therefore, the final planting dates listed in the 
Special Provisions work in conjunction with the Crop Provisions. The 
wording suggestions will be considered with any future changes to the 
Special Provisions.
    Comment: Commenter asked for the term ``late harvest date'' to be 
defined since it is used in section 9 of the Crop Provisions.
    Response: The term ``late harvest date'' refers to a date shown in 
the Special Provisions. The term will be clarified in the Special 
Provisions for the 2022 crop year.

[[Page 22582]]

    Comment: Commenter stated the definition of replanting is 
contradictory of the ``good farming practices'' definition. They note 
seeding at a reduced seeding rate into a partially damaged forage stand 
is considered prudent and a ``good farming practice.'' The current 
definition negates that choice if a producer would like reimbursement 
for his cost of replanting the damaged acreage.
    Response: The Final Rule changes did not impact how the policy 
treats planting into an existing stand at a reduced seeding rate. FCIC 
recognizes planting at a reduced seeding rate may be a good farming 
practice, but it is not eligible for a replanting payment.
    Comment: Commenter notes the actuarial documents show basic and 
optional units are available in some counties. They note the 
qualification of optional units found in section 34(b)(3) says a 
producer must have acceptable records for at least the previous crop 
year for all optional units that are reported in the current year. They 
are questioning how a producer may become eligible for optional units 
since the Dollar Plan of insurance does not require acceptable records 
of production.
    Response: The Final Rule did not change records requirements for 
electing optional units under the policy. The policy requires 
production records; however, the underwriting procedures in the Crop 
Insurance Handbook make it possible to have Optional Units without the 
need to have production records. Insureds may need production records 
for loss purposes.
    Comment: Commenter suggests removing the `Insurance Availability' 
statement from the Special Provisions since the wording mimics the same 
terms and conditions of subsection 7(b) of the Crop Provisions.
    Response: The Special Provisions language clarifies the acreage 
must be ``intended for harvest''. FCIC will consider incorporating this 
phrase in future edits of subsection 7(b) of the Crop Provisions.
    Comment: Commenter provided a variety of comments about the 
Replanting Payment section 11 of the Crop Provisions, but the 
underlying issues or suggestions were not clear.
    Response: FCIC will reach out to the commenter to better understand 
if any changes are recommended.
    Comment: Commenter notes contradicting verbiage between the 
definition of sales closing date and section 3(b)(1). The definition 
indicates if a producer has any insurable fall planted acreage then 
coverage could not be purchased on spring planted acreage prior to the 
spring sales closing date or make changes to any coverage. The wording 
in section 3(b)(1) indicates if a producer has any fall planted acreage 
(whether insurable or not) a producer cannot purchase coverage or make 
changes to any spring planted acreage.
    Response: FCIC agrees this needs to be clarified and is revising 
the language with this Final Rule.
    The intended effect of this action is to eliminate contradicting 
language between the ``Sales Closing Date'' definition and the 
``Amounts of Insurance'' section.
    The changes are as follows:
    1. Section 3--FCIC is revising section 3, Amounts of Insurance, to 
clarify contradicting language between the ``Sales Closing Date'' 
definition and ``Amounts of Insurance'' sections. The ``Sales Closing 
Date'' definition specifies the fall planted acreage must be insurable 
but corresponding language in the ``Amounts of Insurance'' section does 
not specify whether the fall planted acreage is insurable or not, 
resulting in confusion that the fall sales closing date could be 
binding regardless of whether their fall planted acreage was insurable 
or uninsurable. The change will provide consistent language to indicate 
if a producer does not plant any ``insurable'' fall planted acreage, 
then they may purchase or revise their coverage on spring planted 
forage until the spring sales closing date.

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 April 30, 2021. Although not required by APA or any other 
law, FCIC has chosen to request comments on this rule.

Executive Orders 12866 and 13563

    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.
    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.

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

[[Page 22583]]

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.
    RMA 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, RMA 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.

Final Rule

    For the reasons discussed in the preamble, FCIC amends 7 CFR part 
457 as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

0
1. The authority citation for 7 CFR part 457 is revised to read as 
follows:

    Authority: 7 U.S.C. 1506(l), 1506(o).


0
2. Amend Sec.  457.151 by:
0
a. In the introductory text removing ``2021'' and adding ``2022'' in 
its place;
0
b. In section 3 revising paragraph (b)(1).
    The revision reads as follows:


Sec.  457.151  Forage seeding crop insurance provisions.

* * * * *

0
3. Amounts of Insurance.
* * * * *
    (b) * * *
    (1) If you do not have any insurable fall planted acreage, you may 
purchase or revise your coverage for your spring planted acreage until 
the spring sales closing date;
* * * * *

Richard H. Flournoy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2021-08953 Filed 4-27-21; 11:15 am]
BILLING CODE 3410-08-P