[Federal Register Volume 87, Number 29 (Friday, February 11, 2022)]
[Rules and Regulations]
[Pages 7927-7930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02965]



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 Rules and Regulations
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  Federal Register / Vol. 87, No. 29 / Friday, February 11, 2022 / 
Rules and Regulations  

[[Page 7927]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 460

[Docket ID FCIC-22-0001]
RIN 0563-AC77


Pandemic Cover Crop Program

AGENCY: Federal Crop Insurance Corporation, U.S. Department of 
Agriculture (USDA).

ACTION: Final rule.

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

SUMMARY: This rule announces the Pandemic Cover Crop Program (PCCP) to 
provide support for agricultural producers impacted by the COVID-19 
pandemic for the 2022 crop year. USDA is dedicating funding to reach a 
broader set of producers than in previous COVID-19 assistance programs, 
with a specific focus on strengthening outreach to underserved 
producers and communities and small and medium agricultural operations. 
As a part of that initiative, this rule establishes PCCP for 2022.

DATES: Effective April 12, 2022.

FOR FURTHER INFORMATION CONTACT: David Zanoni; telephone: (816) 926-
6142; email: [email protected]. Persons with disabilities who 
require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 (voice).

SUPPLEMENTARY INFORMATION:

Background

    The Consolidated Appropriations Act, 2021 (CAA; Pub. L. 116-260) 
provided funding to prevent, prepare for, and respond to the COVID-19 
pandemic by providing support for agricultural producers who were 
impacted. Secretary Tom Vilsack announced the USDA Pandemic Assistance 
for Producers initiative on March 24, 2021. USDA is dedicating $6.5 
billion in funding to reach a broader set of producers than in previous 
COVID-19 assistance programs, with a specific focus on strengthening 
outreach to underserved producers and communities and small and medium 
agricultural operations. As a part of that initiative, this rule 
establishes PCCP for 2022.

PCCP

    The Federal Crop Insurance Corporation (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 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.
    For the 2021 crop year, FCIC implemented PCCP through a Notice of 
Funding Availability to help agricultural producers impacted by the 
effects of the COVID-19 outbreak. The economic challenges due to the 
pandemic made maintaining cover cropping systems financially 
challenging for many producers. For the 2021 crop year, PCCP premium 
support was provided to eligible producers for eligible insured acres 
on a spring crop insurance policy on which the producer planted a 
qualifying cover crop during the 2021 crop year.
    FCIC amends 7 CFR part 460 to add a new subpart B to establish PCCP 
regulations for the 2022 crop year. For the 2022 crop year, PCCP 
premium support will be available to eligible producers for eligible 
insured acres on a crop insurance policy for a first insured crop on 
which the producer planted a qualifying cover crop after June 15, 2021, 
of the 2021 crop year, or during the 2022 crop year. In addition, for 
the 2022 crop year, additional PCCP premium support will be available 
to eligible producers for eligible Whole Farm Revenue Protection (WFRP) 
acres on which the producer planted a qualifying cover crop after June 
15, 2021, of the 2021 crop year, or during the 2022 crop year. PCCP 
premium support will be available for both eligible insured acres and 
eligible WFRP acres associated with the same planted acreage of 
qualifying cover crops. Supplemental Coverage Option, Enhanced Coverage 
Option, Post-Application Coverage Endorsement, and Hurricane Insurance 
Protection--Wind Index policies or endorsements will not be eligible 
for PCCP. Stacked Income Protection Plan (STAX) and Margin Protection 
(MP) policies will only be eligible for PCCP when insured as a 
standalone policy. STAX and MP endorsements to underlying policies will 
not be eligible for PCCP.
    For the 2022 crop year, in States administering a cover crop 
program providing premium subsidy under an active Memorandum of 
Understanding (MOU) with RMA, as authorized by Section 508(c)(8) of the 
Federal Crop Insurance Act, insured acres qualifying for a State 
premium subsidy amount are eligible for a matching amount under PCCP, 
calculated on an FSA Common Land Unit (CLU) basis. The matching amount 
under PCCP per insured acre will be equal to the State contribution per 
insured acre on a CLU basis and is in addition to the base amount of 
PCCP. The matching amount under PCCP per insured acre will be limited 
by the amount of premium owed by the insured on a CLU basis. If 
limited, the State contribution amount and matching PCCP amount will be 
reduced proportionately on a CLU basis.
    Some insureds will not owe enough premium to receive the full State 
premium subsidy support amount. Accordingly, any money contributed by a 
State that is not paid out via PCCP will be returned to the state 
within 90 days of the end of PCCP.

Notice and Comment and Effective Date

    The Administrative Procedure Act (APA, 5 U.S.C. 553(a)(2)) 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 benefits or contracts. This rule governs 
premium support for eligible producers for eligible insured acres on a 
crop insurance policy and therefore falls under the benefits or 
contracts exemption of the APA.
    This rule is exempt from the regulatory analysis requirements of 
the Regulatory Flexibility Act (5 U.S.C.

[[Page 7928]]

601-612), as amended by the Small Business Regulatory Enforcement 
Fairness Act of 1996 (SBREFA). The requirements for the regulatory 
flexibility analysis in 5 U.S.C. 603 and 604 are specifically tied to 
the requirement for a proposed rule under 5 U.S.C. 553 or any other 
law; in addition, the definition of rule in 5 U.S.C. 601 is tied to the 
publication of a proposed rule.
    The Office of Information and Regulatory Affairs (OIRA) in the 
Office of Management and Budget (OMB) designated this rule as major 
under the Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996, also known as the Congressional Review Act (CRA, 
5 U.S.C. 804(2)). Therefore, the date for making the regulatory changes 
in this rule effective in the Code of Federal Regulation (CFR) will be 
delayed for 60 days from the date of publication in the Federal 
Register to allow for Congressional review.

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.
    OIRA designated this rule as economically significant under 
Executive Order 12866 and therefore, OIRA has reviewed this rule. The 
costs and benefits of this rule are summarized below. The full cost 
benefit analysis is available on regulations.gov.

Cost Benefit Analysis Summary

    The 2022 PCCP provides premium support of up to $5 per acre to 
eligible producers who plant and report to FSA (via the annual FSA-578 
reporting) a qualifying cover crop on acreage insured under a Federal 
crop insurance policy (such as corn or soybeans) after June 15 of the 
2021 crop year or during the 2022 crop year. The PCCP amount will not 
be paid directly to participants but will be accounted for in 
calculating total producer premium due from producers for the crop (for 
example, the corn or soybeans). Approximately 12.2 million net acres 
have received a premium reduction for the crop year 2021 PCCP. Note, 
however, that eligible acreage has expanded for the 2022 PCCP and in 
this analysis is projected at 23 million acres. The associated cost is 
estimated at $116.2 million for the crop year 2022 PCCP.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
because USDA will be making the payments to producers, the USDA 
regulation for compliance with NEPA (7 CFR part 1b). 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.
    Although OIRA has designated this rule as ``economically 
significant'' under Executive Order 12866, ``. . . economic or social 
effects are not intended by themselves to require preparation of an 
environmental impact statement'' when not interrelated to natural or 
physical environmental effects (see 40 CFR 1502.16(b)). PCCP was 
designed to avoid skewing planting decisions. Producers continue to 
make their planting and production decisions with the market signals in 
mind, rather than any expectation of what a new USDA program might look 
like.

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 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.
    USDA has assessed the impact of this rule on Indian Tribes and 
determined that this rule does not, to our knowledge, have Tribal 
implications that required Tribal consultation under Executive Order 
13175 at this time. If a Tribe requests consultation, the USDA Risk 
Management Agency and Federal Crop Insurance Corporation will work with 
the USDA Office of Tribal Relations to ensure meaningful consultation 
is provided where changes, additions, and modifications are not 
expressly mandated by law. Outside of Tribal consultation, the Risk 
Management Agency and Federal Crop Insurance Corporation is working 
with Tribes to provide information about PCCP.

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

    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

[[Page 7929]]

control numbers 0563-0053 and 0563-0084.

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible Agency or USDA TARGET Center at (202) 720-2600 or (844) 
433-2774 (toll-free nationwide). Additionally, program information may 
be made available in languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR Part 460

    Crop insurance, Disaster assistance.

    For the reasons discussed above, FCIC amends 7 CFR part 460 as 
follows:

PART 460--ADDITIONAL DISASTER PAYMENTS

0
1. Revise the authority citation for part 460 to read as follows:

    Authority: 7 U.S.C. 1506(i) and 1506(o); and Division N of the 
Consolidated Appropriations Act, 2021 (Pub. L. 116-260).


0
2. Add subpart B, consisting of Sec. Sec.  460.8 through 460.13, to 
read as follows:
Subpart B--Pandemic Cover Crop Program
Sec.
460.8 Applicability.
460.9 Definitions.
460.10 Eligibility.
460.11 Calculating PCCP amounts for first insured crops.
460.12 Calculating PCCP amounts for WFRP.
460.13 Accounting for PCCP amounts.

Subpart B--Pandemic Cover Crop Program


Sec.  460.8   Applicability.

    (a) This subpart specifies the terms and conditions of the Pandemic 
Cover Crop Program (PCCP).
    (b) For the 2022 crop year, PCCP premium support is available to 
eligible producers for eligible insured acres on a crop insurance 
policy for a first insured crop on which the producer planted a 
qualifying cover crop after June 15, 2021, of the 2021 crop year, or 
during the 2022 crop year.
    (1) For the 2022 crop year, in states administering a cover crop 
program providing premium subsidy under an active Memorandum of 
Understanding (MOU) with RMA, as authorized by section 508(c)(8) of the 
Federal Crop Insurance Act, insured acres qualifying for a state 
premium subsidy amount are eligible for a matching amount under PCCP.
    (2) For the 2022 crop year, additional PCCP premium support is 
available to eligible producers for eligible Whole Farm Revenue 
Protection (WFRP) acres on which the producer planted a qualifying 
cover crop after June 15, 2021, of the 2021 crop year, or during the 
2022 crop year.


Sec.  460.9   Definitions.

    Approved Insurance Provider (AIP) means a legal entity that has 
entered into a reinsurance agreement with the Federal Crop Insurance 
Corporation (FCIC) for the applicable reinsurance year and is 
authorized to sell and service policies or plans of insurance under the 
Federal Crop Insurance Act.
    Crop insurance policy means an insurance policy reinsured by FCIC 
under the provisions of the Federal Crop Insurance Act, as amended. It 
does not include private plans of insurance.
    Crop year means the period within which the insured crop is 
normally grown and is designated by the calendar year in which the 
insured crop is normally harvested.
    Eligible insured acres means insured acres on which the producer 
planted a qualifying cover crop after June 15, 2021, during the 2021 
crop year, or during the 2022 crop year, as reported on the Farm 
Service Agency's (FSA) common land unit(s) (CLU) to FSA via a completed 
and signed Form 578--Report of Acreage on or before March 15, 2022, 
which may be prior to FSA's acreage reporting date, and reported the 
same CLU(s) on their crop insurance acreage report by the applicable 
Federal crop insurance acreage reporting date for a 2022 crop year crop 
insurance policy for a first insured crop.
    Eligible WFRP acres means acres on which a person with a 2022 crop 
year WFRP policy planted a qualifying cover crop after June 15, 2021, 
during the 2021 crop year, or during the 2022 crop year, as reported on 
the CLU(s) to FSA via a completed and signed Form 578-Report of Acreage 
on or before March 15, 2022, which may be prior to FSA's acreage 
reporting date.
    Eligible producer means a producer meeting all of the eligibility 
requirements for PCCP.
    FCIC means the Federal Crop Insurance Corporation, a wholly owned 
Government Corporation of USDA that administers the Federal crop 
insurance program.
    First insured crop means, with respect to a single crop year and 
any specific crop acreage, the first instance that an agricultural 
commodity is planted for harvest or prevented from being planted and is 
insured under the authority of the Federal Crop Insurance Act.
    FSA means the Farm Service Agency, USDA.
    FSA Common Land Unit (CLU) means the smallest unit of land that has 
a permanent, contiguous boundary, common land cover and land 
management, common owner, and common producer association.
    Insured acres means the participant's share of insurable acreage 
that is insured in accordance with a crop insurance policy purchased 
from an AIP.
    Insured crop means a crop for which the participant has purchased a 
crop insurance policy from an AIP.
    MOU means Memorandum of Understanding.
    PCCP means Pandemic Cover Crop Program.
    Person means a person as defined in 7 CFR 457.8(1).
    Qualifying cover crop means any of the four types of cover crops:
    (1) Cereals and other grasses;
    (2) Legumes;
    (3) Brassicas; and
    (4) Other non-legume broadleaves, and mixtures of two or more cover 
crop species planted at the same time. An

[[Page 7930]]

insured crop is not considered a qualifying cover crop.
    RMA means the Risk Management Agency, USDA.
    USDA means United States Department of Agriculture.
    WFRP means Whole Farm Revenue Protection.


Sec.  460.10   Eligibility.

    (a) For the 2022 crop year, to be eligible for premium support 
under PCCP, the participant must be a person who is eligible to receive 
Federal benefits and who has purchased a crop insurance policy for a 
first insured crop from an AIP for insured acres on which the 
participant planted a qualifying cover crop after June 15, 2021, during 
the 2021 crop year, or during the 2022 crop year.
    (1) Cover crops must be specifically reported to FSA via the Form-
578 with the corresponding crop code.
    (2) Potential participants that are uncertain of whether their 
cover crop was reported to the FSA are encouraged to contact their 
local FSA county office (http://farmers.gov/service-locator).
    (3) Only acreage reports that are filed or amended prior to March 
15 will be considered for PCCP.
    (b) Participants who are in violation of Highly Erodible Land or 
Wetlands Conservation (16 U.S.C. 3811, 3812, and 3821) are not eligible 
to receive benefits under PCCP.
    (c) A person is not eligible to receive benefits under PCCP if at 
any time that person is determined to be ineligible for crop insurance.
    (d) Supplemental Coverage Option, Enhanced Coverage Option, Post-
Application Coverage Endorsement, and Hurricane Insurance Protection--
Wind Index policies or endorsements are not eligible for PCCP.
    (e) Stacked Income Protection Plan (STAX) and Margin Protection 
(MP) policies are only eligible for PCCP when insured as a standalone 
policy. STAX and MP endorsements to underlying polices are not eligible 
for PCCP.


Sec.  460.11   Calculating PCCP amounts for first insured crops.

    (a) For the 2022 crop year, for eligible insured acres covered 
under a crop insurance policy for a first insured crop, the amount of 
premium support under PCCP for each insured acre will be $5, calculated 
on a CLU basis, with a maximum equal to the amount of premium owed by 
the insured.
    (b) For the 2022 crop year, in states administering a cover crop 
program providing premium subsidy under an active MOU with RMA, as 
authorized by Section 508(c)(8) of the Federal Crop Insurance Act, 
insured acres qualifying for a state premium subsidy amount are 
eligible for a matching amount under PCCP, calculated on a CLU basis, 
which may be in addition to the amount in paragraph (a) of this 
section.
    (1) The matching amount under PCCP per insured acre will be equal 
to the state contribution per insured acre on a CLU basis.
    (2) The matching amount under PCCP per insured acre will be limited 
by the amount of premium owed by the insured on a CLU basis. If 
limited, the state contribution amount and matching PCCP amount will be 
reduced proportionately on a CLU basis.
    (c) Amounts under PCCP are limited to the full amount of premium 
owed by the insured for the eligible insured acres on a CLU basis. If 
the full amount under PCCP would result in a negative premium balance 
for the insured on a CLU basis, PCCP amounts will be limited to the 
full amount of premium owed on a CLU basis, with the amount calculated 
in paragraph (b) of this section being applied first and the amount 
calculated in paragraph (a) of this section being applied second.
    (1) In cases where insureds are eligible for both paragraphs (a) 
and (b) of this section, and premium owed on a CLU basis is less than 
the amount in paragraph (b) of this section, the state contribution 
amount and matching PCCP amount in paragraph (b) of this section will 
be reduced proportionally on a CLU basis, and there will be no PCCP 
premium support amount applied in paragraph (a) of this section.
    (2) In cases where insureds are eligible for both paragraphs (a) 
and (b) of this section, and premium owed on a CLU basis is greater 
than the amount in paragraph (b) of this section but less than the sum 
of the amounts in paragraphs (a) and (b) of this section, there will be 
no reduction to the state contribution amount and matching PCCP amount 
in paragraph (b) of this section, and the PCCP premium support amount 
in paragraph (a) of this section will be reduced.
    (d) If the eligible insured acres are adjusted or revised for any 
reason, such as an overreporting of insured acres, the amount under 
PCCP will be based on the eligible insured acres after any such 
amendment.


Sec.  460.12   Calculating PCCP amounts for WFRP.

    (a) For the 2022 crop year, for eligible WFRP acres, the amount of 
premium support under PCCP for each acre will be $5, with a maximum 
equal to the amount of WFRP premium owed by the insured.
    (b) PCCP amounts for WFRP are limited to the full amount of premium 
owed by the insured for the WFRP policy. If the full amount under PCCP 
would result in a negative premium balance for the insured, PCCP 
amounts will be limited to the full amount of premium owed.
    (c) If the eligible WFRP acres are adjusted or revised for any 
reason, such as an overreporting of planted cover crop acres, the 
amount under PCCP will be based on the eligible WFRP acres after any 
such amendment.


Sec.  460.13   Accounting for PCCP amounts.

    (a) The amount under PCCP will not be paid directly to eligible 
producers. FCIC and AIPs will account for the amount when calculating 
total producer premium due. AIPs will adjust participant bills 
accordingly. All bills follow the same terms and conditions specified 
in the crop insurance policy, regardless of PCCP amounts.
    (b) PCCP premium support will be provided via premium billing 
adjustments by the applicable RMA premium billing date for the insured 
crop.
    (c) PCCP premium support is available both for eligible insured 
acres and for eligible WFRP acres associated with the same planted 
acreage of qualifying cover crops.
    (d) The payment limitations in 7 CFR 760.1507 are not applicable to 
PCCP.
    (e) RMA will obtain cover crop records from FSA and determine 
eligibility such that eligible producers do not need to take any 
additional specific action through their crop insurance agent to enroll 
in the PCCP.
    (1) In the event that any PCCP amount is determined to be 
incorrect, the amount will be recalculated until the 2022 reinsurance 
year annual settlement date of October 6, 2023, unless otherwise 
specified by the RMA Administrator.
    (2) After October 6, 2023, the amount will be final except in cases 
of misrepresentation, fraud, scheme, or device.

Marcia Bunger,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2022-02965 Filed 2-10-22; 8:45 am]
BILLING CODE 3410-08-P